Left, Right and Centrist
Last week, we asked readers if crypto would get a lift from negative interest rates. Here’s a reader’s prediction:
“Cryptocurrencies will surge in mid-February, 2020. Beginning of next year might start a bit lower but then shoot up.
“I believe this because corporations are getting in and flooding cryptos with money.”
And Friday, we reported Joe Biden’s takeaway from the UK election: Only a centrist can win the Democratic presidential nomination.
A reader responds: “The Democrats have a much better chance with a centrist candidate. I have many friends who lean conservative but despise Trump and will never vote for him. However, they won’t vote for a socialist either.
“Personally, I’ll probably end up voting libertarian again unless the Dems come up with someone really good (not likely).”
Keep the conversation going. Also, do you think Biden’s takeaway from Boris Johnson’s victory is the correct one?
Your Rundown for Monday, Dec. 16, 2019:
Going Through A Phase
Did you know the U.S. and China achieved a trade agreement Friday? Of sorts.
“Rather than tackling a slew of American concerns,” CNBC reports this morning, “which range from the trade deficit in goods to state control in the economy… both sides decided to break the negotiations into phases.”
The first phase? Agriculture.
[For some context: In 2018, China bought $9.2 billion of U.S. agricultural exports, making the U.S. China’s fifth-ranked trade partner for agriculture, down from second place in 2017, according to the U.S. Department of Agriculture Foreign Agricultural Service.]
So phase one of the agreement stipulates “China would buy at least $16 billion more agricultural goods in each of the next two years… that could bring total purchases to near $50 billion in 2020 and 2021.” (emphasis added)
At least, that’s according to U.S. Trade Representative Robert Lighthizer.
Not so, says chief China economist Ting Lu of Nomura Analysts: “That scale of purchases seems implausible and Chinese officials were reluctant to mention any specific target during their press conference.”
CNBC says: “After the U.S. and China announced the ‘phase-one’ trade agreement, a critical point remains in question: agricultural purchases.”
In other words, the trade war continues… despite “phases.”
Market Rundown for Monday, Dec. 16, 2019
S&P 500 futures are up 24 points to 3,192.
Oil’s in the green at $60.15 for a barrel of WTI.
Gold’s added 90 cents to its price — $1,482.10 per ounce.
Bitcoin is down $13.60 to $7,148. 64.
Mondays, right? Have a good one.
For the Rundown,