Samson: Gold at unprecedented levels in years
19th July 2019
Gold hit Friday at $ 1450 an ounce for the first time since May 2013, after comments by a senior Federal Reserve official on interest rates.
New York Federal Reserve Chairman John Williams said policymakers needed to provide incentives to deal with low inflation.
Williams’ comments make it almost certain that the US Federal Reserve will choose to cut interest rates by 25 basis points at its July 30-31 meeting.
Spot gold was trading at $ 1452.60 an ounce in early trade, while gold jumped 1.2% to $ 1444.70 an ounce.
Precious metals have gained almost 2 percent since the beginning of this week and are heading towards their second consecutive weekly gain.
The precious metal also received support from new tensions in the Gulf, which increased its appeal as a safe haven. The United States said on Thursday that a US Navy ship had “destroyed” an Iranian aircraft in the Strait of Hormuz after approaching it for a threat, but Iran said it did not have Any information on this aircraft. LINK
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Samson: China’s debt exceeds 303 percent of its GDP
18th July, 2019
China’s total debt exceeded 303 percent of gross domestic product (GDP) in the first quarter of 2019, the International Finance Institute (IFC) said Thursday .
The total debt of companies, households and the Chinese government registered 297 percent of GDP in the first quarter of 2018, the institute said in a statement . Pointing out that “China ‘s total debt currently accounts for about 15 percent of the world ‘s total debt, without providing figures for the total public debt .”
China’s economic growth slowed in the second quarter of 2019, hitting its lowest level in 27 years, driven by trade tensions with the United States, fears of a global economic slowdown.
The Chinese government is trying to counter the slowdown in economic growth by shifting credit to the private sector and encouraging domestic consumption.
The Chinese government said last month that banks should buy bonds of more than 180 billion yuan ($ 26.2 billion) to finance small businesses in 2019, as well as lending to industry and services.
China’s economy grew 6.6 percent last year, the lowest in a quarter of a century, from 6.8 percent in 2017, according to official data. LINK
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Samson: Five Charts Explain Vietnam’s Economic Outlook
16th July, 2019
Despite rising trade tensions and volatility in emerging economies throughout 2018, Vietnam’s economy saw broad-based growth and low inflation. Government spending and debt remained in check and bank capital rules were strengthened.
Current economic risks relate to geopolitics, trade policy uncertainty, and domestic reform implementation. Looking ahead to the longer term, Vietnam will face risks related to aging, climate change, and digitalization.
Extensive market-oriented and outward-looking economic policies have helped Vietnam achieve sustained and inclusive economic growth. To maintain growth and raise its quality, Vietnam needs to modernize economic institutions, especially in terms of fiscal and monetary management, and continue with market-oriented and outward-looking reforms.
In practice, continued tightening of credit policies, developing capital markets, and building a modern market infrastructure with adequate tools for financial system supervisors and regulators, would help enhance the financial sector’s ability to support sustainable growth.
In recent years, Vietnam has managed to halt the increase in public debt and create some fiscal space. The more favorable fiscal position provides the authorities with the means to step in should downside risks materialize.
Conversely, if growth surprises on the upside, existing debt could be paid down at a faster pace. Recapitalization of Vietnam’s state-owned commercial banks should also be a priority, and the country’s ongoing efforts to tackle corruption provide an opportunity to strengthen the rule of law.
Five charts tell the story: Read here for more: LINK
Samson: Mnuchin : There is no change in the dollar policy so far
18th July, 2019
US Treasury Secretary Stephen Mnuchin said there is no change in the policy of the dollar so far
After many accusations against Europe and China of manipulating the local currency, US President Donald Trump said Washington must also manipulate the currency in order to be fair
“There has been no change in dollar policy, and this is something we can study in the future, but so far there has been no change in that framework,” Mnuchin told a news conference after a meeting of G7 finance ministers on Thursday
The US Treasury Secretary declined to comment on the current levels of the green card
Asked if he thought a strong dollar was in the interest of the state, he said: “I will not make any specific comments on the dollar policy or the euro-dollar policy
A newspaper report said the US president had asked his aides to look for ways to weaken the green card LINK
Samson: Russia: We will respond to US sanctions that target our sovereign debt
19th July, 2019
Russian Deputy Foreign Minister Alexander Pankin said on Friday that his country may respond to sanctions the United States may impose on its sovereign debt, but this is not an end in itself.
In response to a question posed by a journalist about Moscow’s possible actions in the event of the United States imposing sanctions on Russia’s sovereign debt, Pankin said: “This may not be left unanswered, but the task is not to answer as a blow Strike, but adapt to these sanctions and look for other partners, in addition to looking for ways to enable us to circumvent these sanctions. “Since these sanctions are illegal, we consider them non-binding, and we and other countries have the right not to be considered as binding,” he added.
It is noteworthy that the House of Representatives has already approved the US Congress to introduce an amendment to the draft military budget for 2020, prohibiting US citizens from any deal with Russia’s sovereign debt, in the event of interference in the US elections.
However, this amendment was not adopted as a final text in this document, since this amendment must be discussed by the Coordination Committee for approval of this text by the GOP representatives who, in turn, formulate their party’s position on the military budget. LINK
Samson: How did Louisiana benefit from Iraq’s economic doors?
19th July, 2019
The Iraqi Ministry of Trade has bought 60,000 tons of American rice, the latest in a series of rice deals between the two countries, generating great economic benefits for the Louisiana agriculture industry
Over the past two years, Iraq has requested 300,000 tons of rice from the United States, most of them from Louisiana farmers and mills and shipped from the Lake Charles port
The latest sale of rice came after the mid-June meeting between US Attorney Ralph Ibrahim and Iraqi Trade Minister Mohammad Hashim, according to Ibrahim’s office. The congressman has led efforts to develop a stronger business relationship with Iraq in recent years, writing several letters to support the US rice trade
Louisiana is the third largest producer of rice in the country. This crop is one of the most important commodities in the country, resulting in about $ 372 million of economic impact in 2017 of 2.7 billion pounds of rice produced, according to statistics provided by the office of US Attorney Ralph Ibrahim
Iraq is a major rice export market, consuming approximately 1.4 million tons per year, almost all of which are imported. But for years, the United States has been unable to reach its door in terms of trade with Iraq because of strained relations. This began to change thanks to the 2016 memorandum of understanding and the work of Ibrahim and other US leaders who have strengthened Iraqi trade relations
“Iraq is getting used to dealing with us again,” says John Owen, president of Louisiana’s Rice Promotion Board. It is a huge market in Louisiana. We will fill most of these export works. It also helps Arkansas, Texas and Mississippi
“Iraq has moved mainly from a market where we have not sold anything because we are now the world’s second largest market for long-grain rice,” says Scott Franklin, president of the Rice Growers Association in northeast Louisiana
He says the economic impact is important to Louisiana. From rice farmers and mills to port workers across southern Louisiana, the rice trade in Iraq benefits all concerned
“We have a huge amount of milling infrastructure as well as packing facilities, which gives us an advantage because we can meet the demand,” added Franklin
The godfather of this trade was US Rep. Ralph Ibrahim largely able to open the rice trade with Iraq LINK
