Close: London Session | Forex, Metals, Oil, Agriculture August 31, 2020

The company is the sole franchiser of these two famous brands that provide many around the world with hot/cold coffee, baked goods, and hard served ice cream. The other revenues generally consist of licensing fees for K-Cups, retail packaged coffee, ready to drink coffee, etc. Not one single segment saw a decrease in same store sales which is incredible and speaks to the demand of coffee and ice cream. Either Brazil lifts those tariffs or the U.S. will apply tariffs, to the chagrin of the Brazilian sugar cane farmer.
In the overnight electronic session, the December corn is currently trading at 364 which is 4 ¾ cents lower. Sugar prices at all level ruled flat on Monday. On Bombay Sugar Merchants Association’s spot rates (Rs/Quintal): S-grade ₹3,306–₹3,362 (₹3,306-₹3,362) and M-grade ₹3,402–₹3,512 (₹3,402-₹3,512).

The dollar is mostly higher, though the Norwegian krone and Canadian dollar are resisting the tug. Little noticed even by professional investors, Japan’s earnings-per-share growth has quietly beaten most global markets in dollar terms since Mr. Abe took office. The last earnings report included an improved dollar retention rate update for July after the dip recorded in Q2. Pound/dollar took full advantage of dollar weakness on Friday, soaring to the highest since December 2019 and exceeding the gains of peers such as the euro.
Gold eased as the U.S. dollar recouped some of its losses and investors booked profits after a near-2% surge in the previous session. Well, TLT just dropped -4.6% in the last month as the US dollar entered correction territory. Kinda hard to stop them, no matter how much money you throw at them, and each dollar pumped into the economy becomes less effective. Gold prices reversed course to trade lower as the dollar recouped some losses.
It comes down to how quickly the value of the US dollar happens more than anything else now. That means keeping interest rates lower for longer, dollar negative.

However, recent earnings reports from key mining companies suggest that the VanEck Vectors Junior Gold Miners ETF could still move higher once a corrective trading period is established. (Source: Company Presentation) Ely Gold Royalties released its Q2 results last month and reported quarterly revenue of $1.15 million, which pushed the H12020 revenue to $1.37 million. The Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG) often outperforms the price action in the gold market on the upside.
It has owned the Fosterville mine, which produces gold at an incredibly low AISC of less than $300 per gold ounce. While this is great news as we should see another year of strong double-digit revenue growth in FY2021, the issue with Ely Gold Royalties continues to be the valuation. For example, Maverix Metals (MMX) is currently trading at less than 15x price to sales despite being in the junior royalty space with Ely Gold Royalties. Then, with the acquisition of Detour Gold, the company issued 77,217 shares, but since then, it has repurchased 11 million shares.
I have calculated Ely Gold’s market cap by multiplying its 158 million shares outstanding by its share price of C$1.62. Currently, Ely Gold Royalties (shown in the top pane) is trading at a revenue multiple of 68.65, and this is despite the recent 30% correction. With the Fosterville mine producing 600,000 ounces of gold per year, it creates significant cash flow.

European shares advanced as heavyweight oil and gas players gained after oil prices jumped on a 30% cut in Abu Dhabi crude supplies and encouraging Chinese service sector data. China has imported record volumes of crude oil in recent months, taking advantage of the lowest crude prices in two decades in April stock up on dirt-cheap oil. So basically, oil prices are up, and Crescent Point has substantial torque to higher oil prices. The crude oil futures also currently show oil averaging around mid-$40 a barrel prices in 2021.
The Abraq al-Toloul oil field is reported to be flowing 3,189 bpd of Arab Light crude oil and 3.5 million cfd of gas.
For example, the Romashkinskoye oil deposit, the company’s largest one, produced 16 million tons of oil in 2019, resulting in 50 billion rubles in tax savings. The shuttered US Gulf oil and refinery capacity is offsetting news of two new oil and gas field finds in Saudi Arabia, and October WTI is firm near $43. Besides oil prices, a nasty risk recently appeared as the Ministry of Finance plans to collect more taxes from oil producers.
The record-high monthly imports of oil from America were instead the result of the bargain-hunting for cheap oil during the March-April price rout. Tatneft, as well as other oil companies, collectively asked President Putin to preserve the existing tax benefits, so the oil sector won’t give up easily.

Specifically, this “robust updating” of Fed policy involves “average inflation targeting” in which the Fed allows inflation to be “moderately” above its 2% target. As a result, the Fed plans to push inflation above two percent after periods of below-target inflation, so that the average hits two percent. Given distrust of the inflation forecasting models, the Fed won’t rely on them to tighten monetary policy to prevent inflation. My interpretation is that the Fed will not tighten monetary policy when it predicts inflation is about to accelerate-it will wait until inflation does accelerate.
Combine that change with comments from the Fed’s July Open Market Committee minutes, which said that they wanted to see achievement of target outcomes before changing policy. Last week the Fed announced: 1) It is changing its inflationary target from 2% to an of 2% (meaning inflation could overshoot to the upside). For many market participants, the Fed’s decision to let inflation overshoot its target comes as a reaction to the coronavirus crisis.
Which is to say the Fed will tolerate inflation running higher than its official 2.0% target for sustained periods of time going forward. Cameron, who spoke in support of Trump at the Republican National Convention, said his office doesn’t plan to make an announcement this week as additional analysis is needed. So, the mere fact the Fed is even suggesting that it is OK with higher rates of inflation has systemic implications.

ByteDance needs Beijing’s approval to sell the U.S. operations of its short-video app under new curbs imposed on the export of artificial intelligence technologies, a person familiar said. The change means Beijing has found itself a bargaining chip. Beijing is willing to sacrifice Tik-Tok’s US presence rather than capitulate to Washington’s demand. Cheng lei well known and liked in Australian circles in Beijing.

Macron visited the country two days after the blast and called for a new political pact, a policy-oriented government and early parliamentary elections. The ECB, for instance, began a review into its monetary policy framework when Christine Lagarde took the helm of the central bank. Despite having a large majority in parliament, Prime Minister Boris Johnson depends on support from his backbenchers, especially after a poll showed opposition Labour catching up with his party.
By now, I have built up excellent skills and experience in analyzing macroeconomic and political developments in Europe, the Eurozone and Germany, including ECB watching. The Bank of Japan, for instance, has been fighting lower inflation for decades and the ECB has a hard time sending it to target too. The Brexit transition period expires in exactly four months and if there is no accord, Britain reverts to unfavorable World Trade Organization rules. The ECB said it would publish its findings a year later.
The harmonized index, relevant for ECB policy making, dropped to -0.1% YoY, from 0.0% in July.
, Brexit has returned from the beach and the backburner to center stage and sterling is suffering. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.