Tariffs, Italy’s Election, and Future Fed Policy
Marc Chandler joins me today to recap the major news stories of last week and weekend. Tariffs and how they might play out at the WTO is discussed at length with comments on what Trump might be trying to accomplish in the big picture. We also look at where we might see Fed policy shift as we progress through the year and a final comment on the Italian election.
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France will need alternatives to Uranium refined from Russia.
Russia – Uranium One = Russia excuse for Raising $/lb for refined U308.
Tarriffs on Energy to France from Russia as tit for tat.
France gets screwed on $ per Kilowatt for Nuclear as $/LB rises
Elecricity soars in france/europe.
Bitcoin soars on electricity soaring.
France needs to offset energy. Natural gas is used for first time.
France has Gas near Paris.
Guistra backed Petromanas now name change PNO has gas well in Paris.
Trump will cause blowback in Europe. Euro. Tarriffs.
Oil by June will get a major bid not due to supply/demand but because credit to finance new production will dry up in $usd. Markets sniff out rate hikes not possible after June.
energy Assets will soar outside of usa. columbia. egypt. central asia.
summary. nat gas in europe will play big role next decade.
france will need to offset % in europe when russia hits back on tarrifs that affect them. uranium for electric soar by 2020. once electricity soars, bitcoin backed by kilowatts will soar. light oil will crash. heavy oil will soar going into 2022. the spread will be enormous. every etf in usa with treasury bills will have to pay enormous rates in future.. usd will fall 20-30% next 4 years. china will have 6:1 rather than 7:1 exch rate to usd by 2022. but won’t be smooth. china lights the fuse on 3rd monday in march when shanghai sets up 1000bbl futures in yuan4oil4gold trade.
fasten seat belt.
Nuclear Power in France(Updated January 2018)
> France derives about 75% of its electricity from nuclear energy, due to a long-standing policy based on energy security. This share may be reduced to 50% by 2025.
> France is the world’s largest net exporter of electricity due to its very low cost of generation, and gains over €3 billion per year from this.
> The country has been very active in developing nuclear technology. Reactors and especially fuel products and services have been a significant export.
> About 17% of France’s electricity is from recycled nuclear fuel.
> France has 58 nuclear reactors operated by EDF, with a total capacity of 63.1 GWe.
“France’s present electricity generation mix is a result of the French government deciding in 1974, just after the first oil shock, to expand rapidly the country’s nuclear power capacity, using Westinghouse technology. This decision was taken in the context of France having substantial heavy engineering expertise but few known indigenous energy resources.”
“Nuclear energy, with the fuel cost being a relatively small part of the overall cost, made good sense in minimizing imports and achieving greater energy security.”
“As a result of the 1974 decision, France now claims a substantial level of energy independence and almost the lowest cost electricity in Europe. It also has an extremely low level of carbon dioxide emissions per capita from electricity generation, since over 90% of its electricity is nuclear or hydro.”
http://www.world-nuclear.org/information-library/country-profiles/countries-a-f/france.aspx
Germany in mouthing off about their zest to get rid of their nuclear reactors only achieved the expected: Higher energy costs, increase in dirty coal & hydrocarbon energy w/ more emissions, and the irony was they couldn’t meet their baseload energy demands on Solar and Wind [ not a big shock there 🙂 ] so ironically, they have been importing Nuclear energy produced in France.
Nuclear energy isn’t going anywhere, and is still one of the most cost effective means of base load energy generation, and the only 24/7 baseload energy input free of carbon emissions and smog.
@Goldfinger – “Fun fact ~~~> 3 barrels of yellowcake $uranium oxide is the energy equivalent of 200000 barrels of $oil.”
The ex-comedian Beppo Grillo got 32.6% of the vote. (5 Star party),
overtaking the Social democrats who dropped from 40% to 18%
La Leaga got 17.4%, are not fascists, but conservative, right-leaning.
so the 5 Star party has a choice with which party they want to align, and I don’t think it will take months.
The Fed has lost optionality. It cannot afford to go to longer term bonds, despite the logic of locking in low rates for long terms now that interest rates have turned.
(The June re-financing will be critical, as that will be a very large auction.)
WASHINGTON (AP) — The interest rate on three-month Treasury bills rose in Monday’s auction to the highest level in more than nine years. The rate on six-month bills was unchanged at a continued high level.
The Treasury Department auctioned $51 billion in three-month bills at a discount rate of 1.660 percent, up from 1.645 percent last week. Another $45 billion in six-month bills was auctioned at a discount rate of 1.830 percent, steady from last week.
The three-month rate was the highest since those bills averaged 1.690 percent on Sept. 8, 2008, at the height of the financial crisis. The six-month rate was the highest since those bills averaged 1.900 percent, also on Sept. 8, 2008.
Interest rates generally have increased in recent weeks in response to higher levels of U.S. government debt and expectations of rising inflation.
Ira’s Metals
This is why companies go out of business because they forget who supports them. In this case nobody is talking to the posters. This is the internet, if you can’t have a social interaction your site is doomed. Without interaction between the site and interested parties who cares, because social interaction is all that keeps a business alive. DT
PDAC 2018
https://www.youtube.com/watch?v=TmCo0oDnHdU
Rob McEwen
That was a good interview with Rob. Thanks.
> InvestingNews – Mar 5, 2018 | PDAC 2018 #VIDEO
“Dr Kal Kotecha of Junior Gold Report spoke to INN at PDAC 2018 about his publication and future of #gold stocks.” #Silver market #Lithium
China’s Staggering Demand for Commodities
The Visual Capitalist – Jeff Desjardins – March 2, 2018
http://www.visualcapitalist.com/chinas-staggering-demand-commodities/
PDAC 2018 Davidson
Chris Berry from House Mountain Partners talks to INN at PDAC 2018 regarding investor interest in the battery metal sector.
https://www.youtube.com/watch?v=K5oJ0rMxTPo
InvestingNews – Mar 5, 2018 | PDAC 2018 #VIDEO Interview
$LEM $LEMIF Leading Edge Materials: #Graphite Is Our Primary Focus Right Now
“Leading Edge Materials CEO & President Blair Way talks about important things investors should know about, what makes the company unique, and near-term milestones to watch out for.” also #Cobalt #Lithium and #RareEarths
$LEM $LEMIF Leading Edge Materials
PDAC President Glenn Mullan on Lithium, Cobalt and Rare Earths
InvestorIntel – Feb 28, 2018 #VIDEO
>> Glenn Mullan: “There is always a hot commodity. It is kind of like mocha java versus vanilla. You pick your flavor, sometimes they are very temporal, and they do not last. Sometimes it is the beginning of a cycle that is sustainable. With the clean technology and cleantech and the green aspects to a lot of our initiatives and the minerals industry it is probably looking like this is going to be one of the sustainable periods of time where we look at exploration changing focus, kind of, like the beginning of uranium back in the 1950s and ‘60s. That lasted for decades so there is no reason to think that lithium, cobalt and some of the rare earths will not enjoy that kind of prosperity right now. ”
Rush for Cobalt, Lithium as prices stay on the boil
Frik Els | about 18 hours ago
Mickey Fulp PDAC 2018 | Trump, Gold and the New Economic Paradigm
https://www.youtube.com/watch?v=9eJXGq7bx6s
The Best Buying Opportunities In the Last 30 Years – Adrian Day
Kitco News – Mar 5, 2018
“Gold stocks are inherently volatile, and we are currently at a phase of undervaluations that presents a significant buying opportunity, said Adrian Day of Adrian Day Asset Management.”
“If you’re losing interest in gold, you don’t want to get out at the low point, you want to at least wait until we have a high point and get out,” ay told Kitco News on the sidelines of the PDAC 2018. “I think we’re at a low point now that is equal to some of the best buying opportunities in the last 20 to 30 years.”
https://www.youtube.com/watch?v=hWP8cFU9tSI&feature=youtu.be
Comedy News Network or Communist Nonsense Network?
Maybe Grillo’s popularity has something to do with this?
Where am I going to get my Italian sausage……….. 🙂
Well, I guess there’s a bit of everything in sausage… 😉
Draining the Swamp ? Joke on Cohen , after all he was an aluminum siding salesman in his youth…….. 🙂
https://www.zerohedge.com/news/2018-03-06/gary-cohn-may-resign-if-last-ditch-push-kill-steel-aluminum-tariffs-fails
BIG WIN FOR THE TRUMP……..Bye bye illegals………
https://www.zerohedge.com/news/2018-03-06/federal-judge-says-trump-within-his-authority-end-daca
All illegals will have a chance to become good citizens, …just read the rules.
Employers taking advantage of the system…will now have to rethink the rules of employing illegals.
Employment of American workers, just got a boost ………construction work, will no longer be filled with illegals at cheap wages…
BOOM no.1……?
TRUMP SCORES
Ready for peace? North Korea prepared to give up nukes if provided with security guarantee
https://www.youtube.com/watch?v=Dy6KpW7rap8
But will the Swamp war machine agree?
Kim pleads for safety………..
BOOM no. 2
TRUMP SCORES
BOOM ON THE STEEL TARIFF……..Rigging the market for 5 yrs….caught ya….. 🙂
https://mobile.reuters.com/article/amp/idUSKBN1GH2SM?__twitter_impression=true
oops……..5 decades……..
(Reuters) – Kobe Steel Ltd admitted on Tuesday its data fraud has been going on nearly five decades and also revealed new cases of cheating, highlighting the challenges facing the 112-year-old company mired in compliance failures and malfeasance.
BOOM no. 3
TRUMP SCORES
RIGHT ON “Q”…….to funny I like this game……… 🙂
CHARTSTER…………..here ya go…….. 🙂
And the reason why Kim Flung Doo wants peace is because Trump is standing on his handlers neck💪👍
KIM IS BOOM NO>>>>2
Q…..called for 4 BOOMS……where is the next BOOM…. 🙂
DACA>>>>>was BOOM NO.1……Court says Trump ok with Daca plan…..read above.
I guess we will have to explain this to OWL, when he gets back from Vacation….. 🙂
Here MIGHT BE BOOM NO> 4………..HILLY AND HAITI child trafficing…….\https://wikileaks.org/clinton-emails/emailid/629
“We have documented around 15 cases of children disappearing from hospitals and not with their own family at the
time,” said UNICEF adviser Jean Luc Legrand.
“UNICEF has been working in Haiti for many years and we knew the problem with the trade of children in Haiti that
existed already beforehand.
The booms / wins are going to keep coming😉
Did you read the above Wiki ….on the Haiti and Clinton ….
here ya go….to the “Q”
https://qanonmap.github.io/
CHILD TRAFFICING staging PORTS………?
However several are fast-tracking adoption procedures already under way, including Belgium, Canada, France, Germany,
the Netherlands, Spain and the United States.
CLINTON FOUNDATION tied to Steel…….. see “Q” notes…….
About to step away. Go checkout Tracy Beanz from yesterday. Interesting breakdown of the Seth Rich deal. Mueller is investigating.
catch ya later….
Release of new DOCs……
Here ya go.
Thanks………..
PAY FOR PLAY CLINTON …..another donation
https://www.zerohedge.com/news/2018-03-06/australian-diplomat-whose-tip-launched-russia-probe-has-25-million-tie-clintons
BOOM NO> 4………Trump signs MILITARY TRIBUNALS Exective Order
https://www.youtube.com/watch?v=51eRu4AXLIU
I hear James Bond is waiting anxiously….
GENEVA (AP) — The Latest on developments at the Geneva International Motor Show
4:35 p.m.
With a cashmere and silk interior inside a futuristic frame, Aston Martin is going electric — in what the legendary British automaker is billing as the first luxury brand with zero-emission powertrain technologies.
The high-end car company has spun out its Lagonda “Vision Concept” that some automotive watchers call the standout item at a Geneva auto show already rife with eye-catching items.
The sleek, slim-line concept has doors open in to each other and a top hatch for easy entry. With the battery under the floor and armchair-like seats that swivel around, one attraction is roomy interior space. The seats have red epaulets, and the inside has details of red Melton fabric — the traditional material used by the queen’s Welsh guard, said Steve Platt, lead interior designer at Aston Martin.
Production is set to start in 2021.
Ira’s Morning:
Brent Cook, Joe Mazumdar at PDAC:
2018-03-06 08:55 ET – In the News
The Globe and Mail reports in its Tuesday edition that Echelon Wealth Partners analyst Gabriel Gonzalez added Maple Gold Mines to his “Watch List,” citing overlooked bulk tonnage potential at its Douay project in Quebec.
GDX at resistance on the 60 min chart:
http://stockcharts.com/h-sc/ui?s=GDX&p=60&yr=0&mn=2&dy=0&id=p69482484782&a=511980075
The miners looks very good relative to gold.
GDXJ:GLD daily:
http://stockcharts.com/h-sc/ui?s=GDXJ%3AGLD&p=D&yr=1&mn=0&dy=9&id=p44079356670&a=580700408
AG is up big today but that should not be a surprise after last week’s action:
http://stockcharts.com/h-sc/ui?s=AG&p=D&yr=1&mn=3&dy=22&id=p34602991240&a=578542926
First there was the BREXIT vote,
Now there is the immense anti-establishment vote in Italy.
The EU will break up from its current form.
I predict it would try to become a free trade zone, but France has to change first.