Close: London Session | Forex, Metals, Oil, Agriculture August 03, 2020



The coffee chain expects the final quarter global same-store declines in the range of 12-17% and for revenue to decline by 10-15% compared with the previous quarter.


The spread between the US dollar and euro rates collapsed from nearly 3% to only 50 basis points, putting pressure on the dollar. What is most surprising perhaps about the reversal in the dollar is the lack of gold weakness – at least for now – despite the surge in the dollar. With this in mind, continued dollar weakness looks highly likely to lead to a reversal in the multi-year U.S. equity outperformance relative to the rest of the world. While a stronger dollar may undermine U.S. corporate overseas revenues relative to the rest of the world, the direct impact of a stronger currency tends to dominate.
Although the euro has been appreciating sharply against the dollar in recent months, it is still significantly undervalued according to range of ‘fair’ value metrics. Although the euro has been appreciating sharply against the dollar in recent months, it is still significantly undervalued according to a range of ‘fair’ value metrics. An upbeat number may help lift the dollar in the short-term, though investors may favor the Japanese yen as a safer bet in the weeks to come.
The falling dollar and the central bank and government response to the global pandemic create an almost perfect bullish storm for the gold market. The relative performance of U.S. stocks versus the rest of the world tends to in part track the performance of the U.S. dollar. A falling dollar and unprecedented levels of central bank stimulus are highly supportive of gold even at the $2000 per ounce level.


Below is the ranking of gold mines by production, where I will name the gold mine and the owner of the mine, followed by production. Proven and probable reserves are important because you don’t want to invest in a gold mine if it doesn’t believe it has very much gold left to mine. Gold rose by 15.5% since April 17, but the VanEck Vectors Gold Miners ETF product (NYSEARCA:GDX) rose by 43.4%. With gold in a new price zone, we could see lots of price volatility over the coming weeks and months.
This doesn’t necessarily mean that Barrick Gold and Newmont Gold are the best investments, but you can tell that they did have the strongest United States operations in 2019. During bull markets in gold, mining shares often outperform the precious metal’s price action as miners are a leveraged investment compared to the commodity. Nimble traders could turbocharge the price action in the gold market using the NUGT and DUST products. Since April 17, NUGT rose by 94.5%, nearly double the price move in the GDX and over six times the percentage gain in the nearby COMEX gold futures market.
Last week, the gold market moved into a new era as the price rose above the 2011 all-time high at $1920.70. The mining shares turbocharged the price action in the gold market.


This quarter experienced Lower realized oil, gas, and liquefied natural gas prices and weaker achieved refining and chemical margins. While COP will endure a downturn better than peers, low oil prices are still bad for all oil companies. The trend in natural gas follows the same pattern from $4.21 last year to now Below are historical prices for oil and gas. However given the economy is bouncing back and cap-ex cuts will reduce oil supply, I believe COP to be one of the more attractive investments in the oil sector.
Saudi seaborne crude exports for last week were seen at 30.3 million bbl (4.3 million bpd) compared to the revised 53.0 million bbl (7.6 million bpd) the week prior. Lower prices have helped many economies build the necessary infrastructure, and gas consumption is expected to pick up faster than oil. Phillips 66 has just experienced a historic disruption to refined fuels demand that some Big Oil executives expect will become long-term demand destruction.
Curtailed oil production faced a $27 price, so if they can earn $37, that’s nearly $300 million of future incremental cash flow on these barrels.
Now, no one knows where oil prices will be a week, let alone a year. Crude Value Insights offers you an investing service and community focused on oil and natural gas.

United States

Clorox said net sales rose to $1.98 billion from $1.63 billion in the fourth quarter ended June 30, beating Wall Street expectations of $1.87 billion. Further news on the deal will likely come sooner rather than later, as Reuters reported on Sunday that Trump has given ByteDance 45 days to make a deal. Once Trump assented to the deal, CFIUS reportedly gave the two companies 45 days to work out a deal (hence the Sept. 15 deadline shared by Microsoft).
If Congress decides to spend a couple of trillion then the Fed will buy enough to make sure that market interest rates don’t go up as a result. President Trump, though, floated the idea of an outright ban on the app Friday night, citing national security concerns. In the US, India controls 45 per cent of generic pharma market and this is because Indian companies have been able to prove their capabilities over last 15 years. Investment analyst working within one of the Big 4 Wall Street banks covering a wide range of stocks from consumer and retail to healthcare sectors.
The virus is doing whatever it takes to disrupt health and economy and the Fed is doing whatever it takes to throw money at the virus-led disruption. Homebuilder stocks have soared to record highs as the US housing market appears to barely blink at the biggest economic contraction since The Great Depression. Last week, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG) (NASDAQ:GOOGL), and Facebook (NASDAQ:FB) reported surprisingly good results, justifying the market’s ongoing optimism.


Blocking WeChat, crucial to life and business in the People s Republic, would protect overseas Chinese from Beijing s spies, but cut them off from home. For some reason, we suspect Beijing doesn’t see things Graham’s way. Meanwhile, President Xi Jinping is accelerating his push for a China that can stand on its own feet.


Pro-Brexit supporters celebrating in Parliament Square, after the UK left the European Union on 31 January. After the most recent round of talks EU chief negotiator Michael Barnier said a trade deal was looking “unlikely”, but was still possible of the UK shifted its positions. The current spread is primarily a product of the pending EU regulatory clearance requirement and the time required to complete the deal. In light of the collapse in EU sales, the ACEA has revised lower its sales forecasts for 2020, to a 25% decline from a 2% decline previously in January.
Follow the latest in our Virus Update.Europe’s biggest and safest borrowers are set to become relative minnows as the EU starts work on its 750 billion recovery plan. The core components of its systems have been validated by appropriate regulatory authorities in various countries, including the United States, European Union and Japan, among others. The Bundesbank said it will continue to participate in ECB asset purchases after a legal standoff with Germany’s constitutional court was resolved.
These are important aspects to consider taking into account the ongoing Brexit negotiations and the December deadline that is just around the corner. The Brexit noise is likely to stay subdued until new negotiations in September. British fleets are keen to reclaim their seas, and EU counterparts risk losing prime fishing grounds.