Ottawa, Beijing strike deal on yuan trading hub
Published Tuesday, Nov. 04 2014, 11:00 AM EST
Last updated Tuesday, Nov. 04 2014, 5:44 PM EST
Ottawa and Beijing have struck a deal that will see this country designated as a trading hub for China’s yuan currency, a benefit that will lower the cost of doing business for Canadian companies seeking Chinese markets.
The hub, a financial centre sanctioned by China to clear and settle transactions in the Chinese currency, would likely be based in Toronto, sources say.
Some details remain to be worked out but sources say this is expected to be announced during Prime Minister Stephen Harper’s trip to China that begins this week.
It’s a sign that efforts to repair relations between Canada and China are bearing fruit.
This hub would mean a great deal in particular to small or medium-sized businesses looking for competitive advantages in dealing with China.
It’s been estimated by the Canadian Chamber of Commerce that this hub could generate as much as $32-billion in additional exports over 10 years.
It also gives Canada the first yuan hub in the Americas, which will result in a significant advantage in trade finance – one that could prompt multinationals to move treasury operations to Canada.
Ontario Premier Kathleen Wynne welcomed the news Tuesday morning.
*Breaking Alert: US Mint SOLD OUT of Silver Eagles! 2 Million Coin Surplus Sold in Under 2 Hours!
Posted on November 5, 2014 by The Doc
The US Mint has just issued an alert to Primary Dealers across the US that Silver Eagle inventories, which according to the Mint began today at over 2 million ounces, are now SOLD OUT as of 12:30pm EST.
American Financial Markets Have No Relationship To Reality
Paul Craig Roberts and Dave Kranzler
As we have demonstrated in previous articles, the bullion banks (primarily JP Morgan, HSBC, ScotiaMocatta, Barclays, UBS, and Deutsche Bank), most likely acting as agents for the Federal Reserve, have been systematically forcing down the price of gold since September 2011. Suppression of the gold price protects the US dollar against the extraordinary explosion in the growth of dollars and dollar-denominated debt.
It is possible to suppress the price of gold despite rising demand, because the price is not determined in the physical market in which gold is actually purchased and carried away. Instead, the price of gold is determined in a speculative futures market in which bets are placed on the direction of the gold price. Practically all of the bets made in the futures market are settled in cash, not in gold. Cash settlement of the contracts serves to remove price determination from the physical market.
Cash settlement makes it possible for enormous amounts of uncovered or “naked” futures contracts — paper gold — to be printed and dumped all at once for sale in the futures market at times when trading is thin. By increasing the supply of paper gold, the enormous sales drive down the futures price, and it is the futures price that determines the price at which physical quantities of bullion can be purchased.
The fact that the price of gold is determined in a paper market, in which there is no limit to the supply of paper contracts that can be created, produces the strange result that the demand for physical bullion is at an all time high, outstripping world production, but the price continues to fall! Asian demand is heavy, especially from China, and silver and gold eagles are flying off the shelves of the US Mint in record quantities. Bullion stocks are being depleted; yet the prices of gold and silver fall day after day.
The only way that this makes sense is that the price of bullion is not determined in a real market, but in a rigged paper market in which there is no limit to the ability to print paper gold.
The Chinese, Russians, and Indians are delighted that the corrupt American authorities make it possible for them to purchase ever larger quantities of gold at ever lower prices. The rigged market is perfectly acceptable to purchasers of bullion, just as it is to US authorities who are committed to protecting the dollar from a rising price of gold.
Saudi Stocks, Currency Tumble As Aramco Pipeline Explodes; ISIS Sabotage Concerns
Submitted by Tyler Durden on 11/05/2014 10:33 -0500
It appears Saudi markets are back in play. As Bloomberg’s Richard Breslow noted this morning, Riyal forwards have jerked notably higher (implying weakness expected) and the Tadawul All Share Index has dropped 7% in the last 2 days after the killing of Shi’ites by unknown parties and now news that a pipeline has exploded. As Breslow warns, "if that indeed signifies the spread of Islamic State into Saudi Arabia, it would be the first time they crossed Saudi borders. That would be a big deal and a major escalation of problems over in that part of the world, far beyond what it would do to capital markets."
Yesterday there were attacks on Shi’ites (as Reuters reported)
Saudi security forces on Tuesday shot dead a member of an armed group that killed five people in an overnight attack on Shi’ite Muslims marking an important religious anniversary, al-Arabiya television reported.
The late Monday assault on a Shi’ite gathering in al-Ahsa district is likely to test already strained relations between Sunnis and Shi’ites across the Middle East because it coincided with the annual Ashoura commemoration of Shi’ite Islam.
The Dubai-based al-Arabiya said security forces who had been hunting suspects in the al-Ahsa attack clashed with and killed "a wanted man" at a rest area in the al-Qassim province, north-west of the capital Riyadh.
Despite "The People’s Vote", ADP Private Payrolls ‘Prove’ Employment Situation Is Great
Submitted by Tyler Durden on 11/05/2014 08:21 -0500
Isn’t it odd that ‘they threw the bums out’ last night and yet, economic confidence is high, stocks are high, and now, according to ADP, private payrolls are great too? Something doesn’t add up. ADP printed 230k against expectations of 220k, modestly up from a revised 225k in September. Small and Medium-sized businesses added jobs while the largest firms (over 1000 people) slashed jobs (which is great for the stock, right?).
Mark Zandi may not have gotten the memo, but his eagerness to please the Obama administration will no longer bear any fruit. Also, the "folks" no longer believe what he says:
Mark Zandi, chief economist of Moody’s Analytics, said, “The job market is steadily picking up pace. Job growth is strong and broad-based across industries and company sizes. At this pace of job growth unemployment and underemployment is quickly declining. The job market will soon be tight enough to support a meaningful acceleration in wage growth.”
Uhm, no. More from the report:
"Employment continues to trend upward as we begin the last quarter of 2014, driven mostly by small to mid-sized companies,” said Carlos Rodriguez, president and chief executive officer of ADP. “October’s job growth is the highest since June and the second highest gain of 2014.”
US midterm elections: wave of defeats leave Democrats reeling
‘This is ugly,’ says Democrat party strategist, as Republicans sweep to control of Senate
Paul Lewis in Denver, Colorado
Wednesday 5 November 2014 11.31 EST
The scale of the Democrats’ defeat in the US midterm elections became apparent on Wednesday, with the party losing control of the US Senate by a wider margin than predicted and their Republican opponents on the verge of securing their largest majority in the House of Representatives since the 1940s.
President Obama’s party awoke on Wednesday to the political equivalent of a pounding hangover; a wave of defeats more numerous and deeper than many Democrats had feared, while Republicans rode a wave of victories that gave them significant momentum going into the 2016 presidential elections.
Republicans gained at least seven Senate seats from Democrats, cementing the GOP’s power base on Capitol Hill.
On a night of few positives for Democrats, Republicans also outperformed them in most of the 36 governors’ races, clinching stunning victories in Democratic strongholds including Massachusetts, Maryland and Illinois.
“This is ugly,” one top Democrat involved in the party’s election strategy told the Guardian in the early hours of Wednesday morning. “It is so much worse than we expected.”
The defeat is a major blow to the president, whose low approval ratings contributed heavily to his party’s electoral drubbing. Obama, an already isolated and unpopular president, must now see out his remaining two years in the White House with his Republican opponents controlling both branches of Congress. The White House said he would speak at a news conference on Wednesday afternoon.
Jim Sinclair’s Commentary
Be careful of what you wish for as you might get it. The US will have to commit troops in time. Today ISIS hit the house of Saud where it really hurts.
Iraq War II: UK to send new batch of troops to fight ISIS
Published time: November 05, 2014 12:47
Edited time: November 05, 2014 14:47
As British troops leave Afghanistan, the UK government has said it will dispatch a number of army officers back to Iraq. The officers will assist in a US-led effort to train Iraqi security forces in their ongoing battle against Islamic State jihadists.
Speaking in Baghdad on Wednesday, UK Defence Secretary Michael Fallon said that the UK would be sending an ‘advisory panel’ to Baghdad as well as provide additional training to Peshmerga fighters.
"The UK, as part of the international coalition, is already taking part in airstrikes across Iraq and carrying out training for Kurdish forces in the north of the country" Fallon said.
"It is right that we do more to help Iraqi forces take the fight to ISILon the ground which is why the UK is offering the further training, support and assistance I have outlined today".
Fallon also said that Britain would increase the number of reaper drones to the region in order to provide intelligence,surveillance and reconnaissance to the Iraqi army.
The decision to send troops to the region to fight Islamic State, also known as ISIS or ISIL, follows statements earlier this year by Prime Minister David Cameron, who said he would not put “boots on the ground”after his decision to assist in US-led airstrikes on Islamic State targets.
Is the CRA creeping your Facebook page?
Fabio Campanella, Special to Financial Post | October 25, 2014 6:30 AM ET
Got a fancy new car? Doing a major renovation to your home? Eating at a lavish new restaurant? Why not let all your friends know what you’re doing by posting this to your social media accounts?
It’s second nature to so many Canadians nowadays to post pics and updates of their daily lives to social media. Generally you’re hoping your friends are following you; secretly you’re hoping they’re envious of the exquisite lifestyle you’re trying to portray. But your friends and followers may not be the only ones peering into your life, the Canada Revenue Agency (CRA) may be checking you out as well.
It’s called: Indirect Verification of Income and it’s an audit technique employed by the CRA. If your lifestyle and reported income don’t match up the CRA may decide to look into your affairs to see what’s actually going on.
So, for example, if you’re driving a luxury car, living in a high-income neighbourhood, sending your kids to private schools, and vacationing in Hawaii’s finest beachfront hotels but only reporting $45,000 of income on your tax return per year then you’re probably a great target for an audit by the CRA.