Open: London Session | Forex, Metals, Oil, Agriculture August 27, 2020



They taste horrible, and I urge everyone to follow my own example and go to plucky local independent coffee shops that don t offer pumpkin spice instead. Keurig, the coffee portion of the business, accounts for around 40% of the company’s total sales and 45% of total profit, Mohsenian wrote in the note. (KDP) has strong exposure to the at-home coffee segment that will prove to be a winner even in the post-COVID world, according to Morgan Stanley. But the stock has underperformed its peers on a year-to-date basis as its at-home coffee gains are partially offset by weakness in away-from-home beverages.


There are lots of moving parts, he said; the Fed easing is weakening the dollar, which is strengthening metals and strengthening the Aussie against the dollar and the yen. This week, the dollar stopped going down but we’re seeing huge rallies in the Aussie dollar. The Aussie is like a freight train going higher and putting a lot of wind in commodity sales so that’s one avenue outside the dollar to look, he said. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.15 per cent to 92.87.
He said the weakness in dollar last week is a big part of the commodity bull case. Gene comments on stock, bond, dollar, oil & gold markets, with a particular emphasis on monetary policy, technology issues and S&P intraday action. The offshore yuan traded at around the highest since January amid signs of tight liquidity, while the dollar was steady. As long as the dollar is weak, the rupee bulls are at an advantage.
Nevertheless, the dollar weakness gives, and upper hand for the rupee. The offshore yuan traded at 6.8841 per dollar.


Currently, the Seabee gold mine is the only producing gold mine in the province. With the Seabee gold mine ramping production each year, it has also allowed Saskatchewan to break gold production records each year. Saskatchewan has a strong, producing gold mine in the Seabee gold mine. Source: Comstock Metals presentation The project contains 158,300 indicated gold ounces and 270,800 inferred gold ounces as of September 2016. The project contains the Amisk Gold Deposit with the past-producing Monarch Gold Mine.
During Saskatchewan’s history of gold production, it seems that most gold mines open for a few years only to close a couple of years later. For the mine to be producing near 120,000 ounces of gold per year, suggests that their $90 million investment that they’ve been making since 2017 has paid off. Taiga Gold is the owner of multiple projects in Saskatchewan, which mostly exist in the Seabee Gold Camp. The company also owns shares in White Gold Corp. and E3 Metals from projects that the company divested to these companies in exchange for shares.
With the Seabee mine producing gold with an AISC of around $800 per ounce, this makes Seabee an excellent investment for SSR Mining.


We expect oil production to fall by 2 per cent in FY21 and flattish growth in FY22 due to natural decline. The company reported an exceptional cost of ₹93.3 crore on the account of expense incurred to control the fire of Baghjan oil well. But there’s a huge mitigation in that (crude) stockpile levels are at their highest in decades,” said Vivek Dhar, a commodities analyst at Commonwealth Bank.U.S. Oil still holds at a five-month high. CommoditiesWest Texas Intermediate crude was flat at $43.40 a barrel.

United States

The Fed may hold rates near zero for five years or more under its yet-to-be unveiled new policy strategy, analysts say. Commentators spend a lot of time pointing out that the Fed s actual policy looks nothing like the predictions it publishes each quarter in its dot plot. Investors will be watching Fed Chairman Jerome Powell, who is expected to reinforce the case for aiming for inflation that hits 2% target on average. The Washington Post applauded the use of forced isolation camps in other nations and asks why the US has not yet used them beyond ports for foreign travelers?
Still, the equally clear judgments expressed by the fed funds futures market are no better. That said, I see signs that similar measures will be attempted in the US as well. Trump is weighing executive actions to help airlines avoid employee furloughs if Congress fails to act. It’s time the Fed recognized that fact for the better. Opinion Donald Trump’s confused attempt to reimpose UN sanctions on Iran may end up helping Tehran and Joe Biden, ex-National Security Advisor John Bolton writes for Bloomberg Opinion.
He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post.


But tensions rose as Beijing fired four missiles into the South China Sea and the U.S. took action against firms that helped China set up outposts in the area.


A closely watched monetary policy summit begins, U.S. technology stocks pushed even higher and the European Union s trade chief stepped down. Of those who thought the pandemic was handled badly, 70 per cent blamed the government and 65 per cent blamed Boris Johnson. Five Things You Need to Know Phil Hogan quit as EU trade chief amid a scandal over apparent breaches of Ireland s social-distancing rules. Hogan Out The European Union s trade chief, Phil Hogan, stepped down after growing criticism that he broke virus regulations in his native Ireland.
Turning to Euribor fixings, the 3-month Euribor (an unsecured rate) has failed to drop below the ECB deposit rate (risk-free). “I don’t just want to tell how we ve handled the consequences of Brexit, but also why we need to take time to look into the lessons of Brexit.” Phil Hogan quits as EU trade chief over social-distancing scandal. Brexit talks are far from over, but the EU’s top negotiator is already thinking about a book on the issue.
First, we do not expect the ECB to cut its deposit rate. True, excess liquidity will increase due to the ECB’s asset purchases.