Wednesday 13 January 2021

We Are All Going To Get Seriously Rich

 Baltic Dry Index. 1849 +88 Brent Crude 57.25

Spot Gold 1858

Coronavirus Cases 02/04/20 World 1,000,000

Deaths 53,100

Coronavirus Cases 13/01/21 World 92,014,026

Deaths 1,970,117

If a politician found he had cannibals among his constituents, he would promise them missionaries for dinner.

H. L. Mencken

Just six and a half days left of Trumpism and the start of the Biden regime of free money for all. We re all going to get seriously rich!

To this old dinosaur stock and commodities market follower since 1968, I think I have heard this story line before.

If we’re lucky, it all ends in a giant inflation and the G-7 economies becoming like Italy’s economy.

If we’re unlucky, free money for all ends in monetary collapse and economies closer to those of Venezuela and Zimbabwe.

Dollar, Treasury Yields Retreat; Asia Stocks Climb: Markets Wrap

By Adam Haigh

Updated on January 13, 2021, 4:54 AM GMT 

Treasury yields slip from highest since March after auction

·         Greenback weakens for a second day; gold, oil advance

The dollar extended losses and Treasury yields continued their retreat from a 10-month high as traders weighed the appetite for bonds and the latest comments from Federal Reserve officials on asset purchases. Asian stocks headed toward another record high.

Ten-year Treasury yields fell to just above 1.10% after solid interest in a government auction on Tuesday. Two Fed officials also pushed back against speculation that asset purchases could be tapered soon. The dollar’s decline aided emerging-market currencies.

In Japan, the Nikkei 225 outperformed, reaching a record in dollar terms. Equities also ticked up in South Korea, while Hong Kong was flat. S&P 500 contracts edged higher after the index fluctuated between gains and losses before closing little changed. Oil was on course for its longest winning streak in almost two years.

While the rollout of vaccines and the prospect of more fiscal support in the U.S. is bolstering bets on an economic recovery, there are lingering concerns over possible speculative excess in stock markets near all-time highs in the middle of a pandemic. The Treasury yield curve has been steepening this year as investors bet on additional U.S. spending and more bond issuance.

“What I think investors are most focused on is the digesting of what is shifting fiscal policy,” said David Bianco, chief investment officer of the Americas at DWS Group. “We’re beginning to lose the anchor on some long-term key benchmark interest rates.”

In Washington, the House is moving forward on an expected vote to impeach President Donald Trump for the second time in little more than a year. President elect Joe Biden will seek a deal with Republicans on another round of stimulus, rather than trying to ram a package through without their support, according to people familiar with the matter.

Elsewhere, Bitcoin dropped around 5% to $33,000. Gold extended gains.

Here are some key events coming up:

  • JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co., as well as firms ranging from Taiwan Semiconductor Manufacturing Co. to Infosys Ltd., are among those due to report earnings.
  • EIA crude oil inventory report is due Wednesday.
  • European Central Bank’s Christine Lagarde speaks at an online conference Wednesday.
  • U.S. consumer-price inflation figures are due Wednesday.
  • U.S. President-elect Joe Biden plans to lay out proposals for fiscal support on Thursday.
  • Federal Reserve Chairman Jerome Powell takes part in a webinar on Thursday.
  • U.S. initial jobless claims data are due Thursday.
  • U.S. retail sales, industrial production, business inventories and consumer sentiment figures are due Friday.

More

https://www.bloomberg.com/news/articles/2021-01-12/asia-stocks-head-for-muted-start-dollar-retreats-markets-wrap?srnd=premium-europe

Finally, the free lunch is over for Google and Facebook and their ilk. Australia today, the EU tomorrow, America, Canada and the rest of the world the day after. It’s long past time to seek out the next FANGs.

Australian competition watchdog warns Google, Facebook laws are just the start

January 12, 2021

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