29 August 2019

1) Threat of a ‘no deal’ Brexit has the British pound falling relative to the US dollar and euro. The new British prime minister Boris Johnson announced the annual suspension of Parliament would be extended until 14 October, just two weeks before the UK is set to leave the European Union. This suspension is considered a move to block a no-deal Brexit within the UK parliament.

2) If General Motor exits from China, it will mean billions of dollars of profit lost. President Trump’s threatening order for American business to leave China would leave GM the hardest hit of the big three American automakers. While most of GM’s profits comes from North America, it makes about 43% of it annual auto sales in China. This would also mean the loss of all future growth potential, leaving it almost a North American only company, since GM has sold off its European operations.

3) The international gold market is falling prey to a forgery crisis. Gold bars are being stamped with logos of major refineries which makes them of questionable purity. These fake bars are being used as a means to launder cash money or trafficking illegally mined gold. The fakes became apparent when gold bars were found with identical serial numbers. In 2017 and 2018 there were 655 forged bars reported. Gold Kilobars are the most common form of gold in circulation and are worth about $50,000 each

4) Stock market closings for – 28 AUG 19:

Dow                26,036.10    up    258.20
Nasdaq             7,856.88    up      29.94
S&P 500            2,887.94    up      18.78

10 Year Yield:    down   at    1.47%

Oil:    up   at    $55.90

U.S. ENERGY SEC. COMMENDS MEXICO’S ADMIN IN ENDING FUEL IMPORTS!!!!!

By: Economic & Finance Report

United States Energy Secretary Rick Perry applauded Mexico’s incoming administration for ending gasoline and diesel imports. The imports come directly from the United States and the effects will prove profitable for Mexico, long term. 

 Mr. Lopez Labrador, Mexico’s incoming President, has indicated he was would end foreign imports to Mexico within the next 3 years. Refiners in the U.S. have invested billions of capital in Mexico and it has been prosperous for both countries.

Energy trading between United States and Mexico has been advantageous between both countries. -SB