Sunday, February 25, 2018

Resistance To Growing Chinese Acquisitions Continues

Chinese billionaire sees baguette goldmine in French fields

In the peaceful French village of Thiel-sur-Acolin, retired farmer Marc Bernardet is ambivalent about having a Chinese billionaire for a neighbour. Over the past four years Hu Keqin has quietly snapped up 3,000 hectares of wheat fields in the central Indre and Allier regions, including next door to Bernardet.

Saturday, February 24, 2018

Stopping The Spread of Chinese Cash And Acquisitions (Which Will Be Hard)

Macron eyes action against Chinese farm buyers

President Emmanuel Macron promised measures Thursday to help prevent foreign investors buying French farms amid concern that Chinese businesses are taking advantage of low land prices and distressed rural communities.

It's Helps We Have A Very Short Memory

Volkswagen profit roars back two years after 'dieselgate'

The world's largest carmaker Volkswagen appeared back in racing form Friday, as its 2017 results revved back to levels not seen since before its devastating "dieselgate" emission cheating scandal. VW said in a statement it had booked an 11.4-billion-euro ($14 billion) bottom line last year, more than double the 5.1 billion euros earned in 2016.

Something That Was Probably Note Possible Before 9/11

India-bound gas pipeline breaks ground on Afghan section

Turkmenistan, Afghanistan, Pakistan and India on Friday ceremonially broke ground on the Afghan section of an ambitious, multi-billion dollar gas pipeline expected to help ease energy deficits in South Asia.

Thursday, February 22, 2018

First State Back Crypto Goes On Sale, But Venezuela Remains Under Sanction

Venezuela begins selling oil-backed cryptocurrency

Venezuela formally launched its new oil-backed cryptocurrency on Tuesday in an unconventional bid to haul itself out of a deepening economic crisis. The leftist Caracas government put 38.4 million units of the world's first state-backed digital currency, the Petro, on private pre-sale from the early hours.

Politically Sensitive Victory For China In The Battle Of Bourses

Bangladesh bourse approves China bid, rejects India offer

Bangladesh has agreed to sell a large stake in its stock exchange to a Chinese consortium, an official said Tuesday, rebuffing a rival bid from India that raised political sensitivities. The Dhaka Stock Exchange on February 10 had approved the Chinese offer to buy a quarter of the bourse's 1.8 billion shares, but Bangladesh's financial regulator asked it to "further scrutinise" the decision.

Ever Since The Jetsons I Feel Like I've Been Entitled To This

Flying Car Infrastructure Sees Development in 13 Countries Including Kenya

The community of entrepreneurs and early supporters of the blockchain project have begun to set up an infrastructure for flying cars; in 23 cities covering 13 countries, including in Kenya.

Wednesday, February 21, 2018

Bad News For A Non-Diversified Economy Like Nigeria, I'm Still Bearish On Oil

New Threat As U.S., Others Set to Abandon Nigeria's Oil

There are indications that the United States and other nations will soon abandon Nigeria's oil, which may negatively affect the nation's revenue generation. According to the Energy Information Administration (EIA), the US may drastically reduce its import of crude oil from Nigeria by 2022, going by its projection of becoming a net energy exporter in four years.

Tuesday, February 20, 2018

There's A Lot Of Curves Looking Like This

As the title suggests there's a lot of curves in market that are looking like this after last week's fall. The question now is where is this going from here? Just as an example I have chosen European Equity ETF VGK. Incidentally, Bridgewater has increased its bearish bets on European equity substantially over the last three weeks. I did say make some recommendations that the expected bounce would be worth it however I give stern warning as we approach this resistance area. I urge my readers to exercise a lot of caution over the next few days to just wait and see whether we break through resistance or it falls back again, but if there's money on the table it should probably be taken off.

Britain Dipping It's Toes Into Africa

Economist Lauds Britain's Plan to Add Naira As Trade Currency

An economist, Prof. Okey Onuchuku on Monday, said Britain's export finance agency's plan to add the Naira to its list of pre-approved currencies would boost the value of Nigerian currency. Onuchuku, who is the Director, University of Port Harcourt Business School said this in Port Harcourt while speaking with the News Agency of Nigeria (NAN) on Britain's adding the Naira to its list of accepted trade currencies.

Strong Inter-Regional Business Ties Being Built Around The Mediterranean

Egyptian, Israeli firms sign $15bn natural gas deal

Israeli company Delek Drilling has announced it will supply Egypt with $15bn worth of natural gas in the biggest export deal to date for Israel's natural gas industry. Egyptian company Dolphinus will buy 64 billion cubic metres of natural gas from Delek Drilling and its US partner Noble during a 10-year period, a statement released on Monday said.

Saturday, February 17, 2018

Sure, But It's Austerity For The Next 25 Years

Fitch raises Greece's debt rating, citing stability, growth

The Fitch ratings agency on Friday upgraded Greece's sovereign debt grade, citing budget surpluses, greater political stability and the growing economy. The agency raised the debt rating one notch to 'B' from 'B-,' leaving the country in the "highly speculative" category but with a positive outlook.

And It Begins

China vows to protect interests as US eyes trade sanctions

China on Saturday warned it would take necessary measures to protect its interests if the US imposes tough trade sanctions against its steel and aluminium exports. The US Commerce Department on Friday recommended imposing heavy tariffs on China and other countries to counter a global glut in steel and aluminum, laying out an array of possible options in a report to President Donald Trump.

You Go Girl!!!

Canada to seek to join South America trade pact

Canada will open trade talks next month with the four-nation Mercosur trading bloc in South America as part of an ongoing push to diversify its trade partnerships, a senior official said Friday. It comes as its main trading relationship with the United States -- the North American Free Trade Agreement (NAFTA) -- falters, and after Ottawa announced it would sign onto the Trans Pacific Partnership (TPP).

Friday, February 16, 2018

Still Swimming In Oil And Still Bearish

Saudi Arabia seeks to further reduce oil stockpiles

Saudi Arabia said Wednesday it will further trim oil production and exports next month to reduce excess stockpiles that have weighed on crude prices, as concerns mount over US oversupply. Saudi Aramco's crude output in March will be 100,000 barrels per day (bpd) below its February level while exports will be kept below seven million bpd, the energy ministry said.

I Read This While Spitting Out My Tab, Driving A DeLorean In A Bruce Willis Movie

Japan economy grows for 8th straight quarter, longest since 1980s

Japan's economy grew for the eighth straight quarter at the end of 2017, government data showed Wednesday, its longest period of expansion since the "bubble" boom days of the late 1980s. Gross domestic product figures fell short of expectations and represented a slowdown from the previous quarter, but analysts forecast continued growth nonetheless.

Thursday, February 15, 2018

Either He Won't Listen Or Can't Read

China warns Trump trade sanctions threaten global economy

US trade sanctions will hit the world economy, Beijing warned Wednesday, after President Donald Trump threatened to impose fresh tariffs on imports from China. Trump said he was "considering all options," including tariffs and quotas, after he accused China of decimating the American steel and aluminium industries.


Cory Booker just took another step toward a run for president

WASHINGTON -- U.S. Sen. Cory Booker, criticized for campaign contributions from Wall Street and the drug industry, has sworn off corporate political action committee donations as he ponders whether to seek a run for the White House.

Still Pays To Go Green

Europe’s investment in offshore wind is paying off — for the US

For years, a large-scale offshore wind industry in the US seemed like it was always somewhere off over the horizon. But with the price of offshore wind power dropping quickly in Europe and the UK, policymakers in the US are increasingly looking at it as a viable option to meet renewable energy goals.

Tuesday, February 13, 2018

So "Yes," But Really "No"

As promised I was going to post something on the recent events and try and sell you all on the fact that this is merely a small blip in an otherwise downward trajectory. I have tried to illustrate with Emerging Markets ETF EEM and India ETF PIN that there is the beginnings of a downward channel showing. For those of you with an appetite for risk this could definitely be a profitable ascent (albeit volatile), but for others it may be an opportunity to choose our moment to perhaps enter fresh short positions. The resistance is pretty clearcut so "stops" can be triggered if the resistance is breached, but I'll be honest it doesn't feel like it despite the fact "buy" signals have appeared on the RSI(5).

There's No Way Any Of This Can Possibly Go Wrong

White House releases budget, forecasts a decade of mounting debt

WASHINGTON — The Trump administration proposed a spending plan on Monday that projects deficits as far as the eye can see, giving up the longtime Republican goal of a balanced budget to champion a spending plan replete with cash for a host of military programs and some domestic ones the president's supporters might admire.

Monday, February 12, 2018

Africa Is Opening Up

Kenya's Flower Producers Eye US Market

Kenya's cut-flower industry has blossomed since the 1980s, and now holds the biggest market share for exports to Europe. Kenya's flower producers are hoping direct flights set to open between Nairobi and New York City could help them put down roots in a new market — the United States.

Crude Oil (USO) Is Good For A Small Counter-Trend Play

I was looking at Crude Oil ETF USO and a small counter-trend rally seem to be afoot. This isn't just isolated to Crude Oil as a counter-trend rally is appearing across many ETF's (more on this tomorrow). When I mentioned Emerging Markets ETF EEM last week I was pondering whether this this was a three wave or five wave correction. If this is five wave correction we will see some volatility up to a line of resistance and then another fall. Another blogger made a very convincing argument that Crude could rally to $63.50 and I'd have to agree, but beware the approaching resistance lines.

Some Think Several Corrections Are Ahead But We've Really Needed This

Global markets seeing 'necessary corrections': IMF chief

The latest volatility in global financial markets represents "necessary corrections", IMF chief Christine Lagarde said in Dubai on Sunday, in the wake of a Wall Street plunge. "The market trepidations that we have seen in the last few days are not worrying me.

An Alternative To Brent And WTI Crude

China to launch own oil futures

China will launch its own crude oil futures in March, the securities regulator said Friday, as the energy-hungry giant looks to wield greater influence on the international market by offering an alternative to the Brent and WTI benchmarks.

I Don't Think It's Just Arab States And The Middle East That Need To Reign In Expenses

IMF chief urges Arab states to slash spending

IMF chief Christine Lagarde on Saturday urged Arab countries to slash public wages and subsidies in order to rein in spending, achieve sustainable growth and create jobs. Speaking at the one-day Arab Fiscal Forum in Dubai, Lagarde welcomed "promising" reforms adopted by some Arab countries, but insisted much more was needed to overcome daunting economic and social problems.

Sunday, February 11, 2018

This Might Have Something To Do With How Treasuries Are Acting

Stimulus puts US debt on an upward trajectory

As part of a pledge to "Make America Great Again," President Donald Trump and Republican lawmakers are pursuing aggressive economic stimulus while slashing taxes at the same time. The result, budget analysts say, is likely to be swelling debts and deficits for the world's largest borrower. - A ballooning deficit - America's budget deficit was already on an upward trajectory, thanks to an aging population and rising health costs.

Yeah, The Swamp Killed It And Devoured Everything Around It And Then Some

Jim Jordan says 'swamp won' on spending bill

Rep. Jim Jordan says the swamp struck back with the passage of a massive budget deal that increases government spending by $300 billion. "I'm saying the swamp won and the American taxpayer lost," Mr. Jordan, co-founder of the House Freedom Caucus, said on "Fox News Sunday."

Thursday, February 08, 2018

(The Eeek Emoji)

Goldman Sachs Predicts Cryptocurrencies Will Fall To Zero

Just how long with the slide continue for cryptocurrency market? The global head of investment research at Goldman Sachs is warning that Bitcoin and other cryptocurrencies could drop all the way down to zero.

Monday, February 05, 2018

We've Been Waiting Too Long For This

I would have posted this sooner but I have specialist exams I need to be studying for. For this correction I could have literally posted anything, but Emerging Markets ETF EEM looked best (I also find that along with Semiconductors XBI are a good bell-weathers) and other sectors like Energy ETF XLE put in a sell signal a week ago. The markets have a whiff of fear so already people and pundits are predicting an overall decline of about 8 to 10%. I frankly don't know what to believe. I'm a little cynical after the market has risen literally non-stop since the election but after the crossover of the EMA's a decline is upon us. We are miles from the MA(144) so there's plenty of room for this to fall if it wants. The question becomes "is this a five wave fall or just a three wave correction?" I've tried to draw in what the channel and trend might look like but needless to say, profits should have been taken off the table Thursday or Friday (again, sorry for the lateness). Some of my indicators are also turning over so let's just watch this. We're too late for opening short positions but we can revisit the issue after a little while. Our sell signal on the RSI 5 has been revised but it is big, and if some of our newer readers don't know what a blow-off top looks like, now you know.

Working By Example

Men on Norway's Soccer Team Take Wage Cut So Women Players Earn Equal Pay (They Already Win More)

The Norwegian men's national soccer team just took a major pay cut so their female counterparts could be paid the same amount. Up until this year, the male team earned 6.55 million kroner ($818,000) in contrast to the women's annual income of 3.1 million kroner ($387,000).

Friday, February 02, 2018


Looks like China just installed a railgun on a warship, beating the U.S. Navy to the punch

Railguns are another way the PLAN hopes to get an edge in 21st-century naval warfare. Type 055A This fan-made computer-generated image of the Type 055A destroyer shows it with a railgun in place of the 130mm cannon found on the Type 055 (though the Type 055A may use a stealthier railgun turret). baoxiuyuan Pictures surfacing online appear to show a new weapon developed in China.

The Monroe Doctrine Can Suck It If You Look At How The U.S. Has Treated That Hemisphere For The Last Two Centuries

Tillerson Warns Against China, Russia Engagement in Latin America

U.S. Secretary of State Rex Tillerson warned Thursday that China and Russia were assuming "alarming" roles in Latin America, and he urged regional powers to work with the United States instead. "Latin America doesn't need new imperial powers that seek only to benefit their own people," Tillerson said in a speech at his alma mater, the University of Texas in Austin, before embarking on his first multination trip to South America.

Yeah, But He Uses Spray Tan So At Least He Tries To Appear Latino

White House is Racist Billionaires’ Club: North Korea

North Korea has accused the Trump Administration of being a billionaires’ club that harbors a “policy of racism” while exacerbating social inequalities and denying freedom of the press and health coverage to citizens.