Agriculture
Total arrival of soybean in Madhya Pradesh was 80,000 bags including 15,000 bags of new soybean. Soybean (old) was quoted at ₹3,525-₹3,700, while new soybean ruled at ₹3,000-₹3,500 a quintal. Through a global chain of more than 32,000 company-owned and licensed stores, Starbucks sells coffee, espresso, teas, cold blended beverages, food, and accessories. The company has a break from competitors as Luckin Coffee is facing serious problems after fabricating sales.
The coffee maker also counts on its powerful membership (over 19.4M members) to boost comparable sales. The pandemic will affect SBUX sales as many of its customers buy coffee in the morning on their way to work. Plant deliveries of soybean were quoted at ₹3700- ₹3,800 a quintal. Finally, SBUX should grab more market in China as Luckin Coffee (NASDAQ:LK) is stuck with fraud problems. Starbucks will continue to dominate the coffee world as the economy reopens. Will the $5 coffee remain relevant when you lose your job?
The coffee maker also counts on its powerful membership (over 19.4M members) to boost comparable sales. The pandemic will affect SBUX sales as many of its customers buy coffee in the morning on their way to work. Plant deliveries of soybean were quoted at ₹3700- ₹3,800 a quintal. Finally, SBUX should grab more market in China as Luckin Coffee (NASDAQ:LK) is stuck with fraud problems. Starbucks will continue to dominate the coffee world as the economy reopens. Will the $5 coffee remain relevant when you lose your job?
Currencies
less A strong recovery in US stocks, a softer dollar, and higher gold and oil prices may signal the end of the brief, though dramatic correction. Christine Lagarde is watching but isn’t unduly concerned about the euro’s recent gains against the dollar. ET, where we will listen for whether she talks down the recent euro strength against the dollar. If that is the case, then there is a good chance we see the euro weaken, as the dollar strengthens in the days and weeks ahead.
Sterling’s dramatic recovery yesterday from $1.2885 back above $1.30 reflects the US dollar’s setback rather than a bullish pound view. The ongoing recovery from 2020 lows near 91.70, while strong, is still considered as corrective only amidst the broad bearish stance surrounding the dollar. less Dollar (DXY) Stocks are trading lower this morning ahead of the ECB rate announcement. The Australian dollar is consolidating yesterday’s recovery and is in about a quarter-cent range above $0.7260.
“Unprecedented expansion of monetary aggregates has weakened the U.S. dollar and put upward pressure on inflation expectations,” the bank said. Meanwhile, the euro was up against the dollar.
Sterling’s dramatic recovery yesterday from $1.2885 back above $1.30 reflects the US dollar’s setback rather than a bullish pound view. The ongoing recovery from 2020 lows near 91.70, while strong, is still considered as corrective only amidst the broad bearish stance surrounding the dollar. less Dollar (DXY) Stocks are trading lower this morning ahead of the ECB rate announcement. The Australian dollar is consolidating yesterday’s recovery and is in about a quarter-cent range above $0.7260.
“Unprecedented expansion of monetary aggregates has weakened the U.S. dollar and put upward pressure on inflation expectations,” the bank said. Meanwhile, the euro was up against the dollar.
Metals
Hubert is an independent gold and silver analyst who specializes in fractal analysis and the fundamentals of gold and silver . … more Hubert is an independent gold and silver analyst who specializes in fractal analysis and the fundamentals of gold and silver . SILVER HOLDING STEADY AS PRICE CONVERGES WITHIN A BASIC SYMMETRICAL TRIANGLE After August highs, spot silver has somewhat consolidated tracking its precious metal counterpart, gold. Some years after the 1966 Dow/Gold ratio peak, there was an important silver peak (SP) in 1968.
The recent silver bottom in 2020 is comparable to the 1971 silver bottom. Gold and silver could both see much higher prices before the end of 2020 if uncertainty continues to dominate the financial markets. Silver bottomed in November 1971 (SB) and rose to a silver top (SP) in February 1974. This is matched by the 2011 silver peak, which came about 12 years after the 1999 D/G. We don’t know whether the Feb 2020 Dow peak is the top, but it does not matter for the silver medium- to long-term outlook.
The 2020 Dow peak came about 21 years after the 1999 Dow/Gold ratio peak.
The recent silver bottom in 2020 is comparable to the 1971 silver bottom. Gold and silver could both see much higher prices before the end of 2020 if uncertainty continues to dominate the financial markets. Silver bottomed in November 1971 (SB) and rose to a silver top (SP) in February 1974. This is matched by the 2011 silver peak, which came about 12 years after the 1999 D/G. We don’t know whether the Feb 2020 Dow peak is the top, but it does not matter for the silver medium- to long-term outlook.
The 2020 Dow peak came about 21 years after the 1999 Dow/Gold ratio peak.
Oil
In commodities, oil prices dipped as U.S. crude stockpiles rose and the U.S. Energy Information Administration downgraded its oil demand outlook. Groundnut oil (Indore) declined to ₹1,250-70; Groundnut oil (Bombay) was at ₹1,260; whilegroundnut oil (Gujarat) ruled at ₹1,225. less Oil prices start in a risk-off mode as oil inventories rise, but gasoline supply plummets. Crude inventories rose by 3 million barrels in the week to Sept. 4 to about 504.1 million barrels, compared with analysts’ expectations for a draw of 1.4 million barrels.
The EIA has already cut its 2020 world oil demand growth forecast by 210,000 barrels per day (bpd) to 8.32 million bpd.
Energy Transfer Results – Energy Transfer Investor Presentation Energy Transfer moves 30% of the U.S. natural gas and crude oil. Crude Value Insights offers you an investing service and community focused on oil and natural gas. The closure of some U.S. oil refineries will have a net benefit to the company’s refined products pipeline systems, the company’s chief executive officer said on Wednesday. Nations worldwide, including the United States, have throttled back oil output in response to the coronavirus pandemic, and as fuel demand has dropped sharply.
Still, the build-in crude does not suggest that the overall trend of tightening the U.S. oil supply is over.
The EIA has already cut its 2020 world oil demand growth forecast by 210,000 barrels per day (bpd) to 8.32 million bpd.
Energy Transfer Results – Energy Transfer Investor Presentation Energy Transfer moves 30% of the U.S. natural gas and crude oil. Crude Value Insights offers you an investing service and community focused on oil and natural gas. The closure of some U.S. oil refineries will have a net benefit to the company’s refined products pipeline systems, the company’s chief executive officer said on Wednesday. Nations worldwide, including the United States, have throttled back oil output in response to the coronavirus pandemic, and as fuel demand has dropped sharply.
Still, the build-in crude does not suggest that the overall trend of tightening the U.S. oil supply is over.
United States
He said public pressure on the White House may ultimately cause Trump to make the concessions needed to get a deal over the line in coming weeks. He also did not say what would happen if inflation increases beyond what the Fed would like. Of the growth seen in the latest quarter, a proportionate share (relative to prior quarters) came from international markets vs. the domestic market here in the US. But, as I noted in last week’s blog post on the Federal Reserve (Fed), a move back toward the 1% threshold remains the base case.
It was a technology that had helped Wall Street to exit a coronavirus-induced short bear market and form a new bull market. The rate on the US 10-year government bond lurched from 1.919% at the end of 2019 to 0.711% in late-May 2020, compared with 2.416% one year earlier. From Last Wednesday’s record high of 3588.11 through Tuesday this week, the S&P 500 large cap index dropped 7.2 percent, while the Nasdaq 100 index tumbled 11.1 percent.
With the Fed’s new ‘average inflation targeting’ policy framework, the monthly jobs report will be losing some of its cachet. Powell virtually announced a historic policy shift in the way the US central bank approaches inflation. Besides mirroring Amazon’s (NASDAQ:AMZN) Prime Air program, Walmart also announced its Walmart+ membership program last week that will take on Amazon Prime.
It was a technology that had helped Wall Street to exit a coronavirus-induced short bear market and form a new bull market. The rate on the US 10-year government bond lurched from 1.919% at the end of 2019 to 0.711% in late-May 2020, compared with 2.416% one year earlier. From Last Wednesday’s record high of 3588.11 through Tuesday this week, the S&P 500 large cap index dropped 7.2 percent, while the Nasdaq 100 index tumbled 11.1 percent.
With the Fed’s new ‘average inflation targeting’ policy framework, the monthly jobs report will be losing some of its cachet. Powell virtually announced a historic policy shift in the way the US central bank approaches inflation. Besides mirroring Amazon’s (NASDAQ:AMZN) Prime Air program, Walmart also announced its Walmart+ membership program last week that will take on Amazon Prime.
China
The parties are still racing to present a preliminary deal to the White House before this month’s deadline, though no agreement could be finalized before Beijing’s signoff. It s the latest U.S. business to be embroiled in political controversy involving China amid heightened economic tensions between Beijing and Washington.
Europe
The economic recovery is far from guaranteed, inflation and inflation expectations will rise slowly and the ECB may need to do more to secure easy financial conditions continue. The ECB is expected to hold rates but new updates on growth and inflation will be key to gauging what’s next for policy. The EU and the U.K. are holding emergency talks after the latter published its Internal Market Bill, which would undercut parts of the Withdrawal Agreement agreed to in January.
That was the key takeaway from the ECB president’s press conference, after policy makers kept rates on hold and monetary stimulus unchanged. We expect that after the ECB press conference, attention will swing back to next week’s FOMC meeting, where a more overtly dovish posture is likely. There is also a good chance we see the ECB emphasise that policy rates will remain low for a very long time. Sefcovic also reportedly told Gove the withdrawal agreement was a “legal obligation” and that the EU “expects the letter and spirit of this agreement to be fully respected”.
The recent jump in inflation is unlikely to prevent the Bank of England from easing further monetary policy in case of no-deal Brexit.
As Brexit uncertainty increases, the Brexit risk premium is doomed to increase in the coming weeks, with lower stock market performance from companies most exposed to the UK market. In addition, we expect the ECB to announce new TLTROs and ease their terms, including lower borrowing rates for longer.
0 That was the key takeaway from the ECB president’s press conference, after policy makers kept rates on hold and monetary stimulus unchanged. We expect that after the ECB press conference, attention will swing back to next week’s FOMC meeting, where a more overtly dovish posture is likely. There is also a good chance we see the ECB emphasise that policy rates will remain low for a very long time. Sefcovic also reportedly told Gove the withdrawal agreement was a “legal obligation” and that the EU “expects the letter and spirit of this agreement to be fully respected”.
The recent jump in inflation is unlikely to prevent the Bank of England from easing further monetary policy in case of no-deal Brexit.
As Brexit uncertainty increases, the Brexit risk premium is doomed to increase in the coming weeks, with lower stock market performance from companies most exposed to the UK market. In addition, we expect the ECB to announce new TLTROs and ease their terms, including lower borrowing rates for longer.
