U.S-China rare earth key ! / HK & UST's / U.S CPI tame / Gold over EURO / Israel, Iran, risk ME tensions escalating

Stéphan
Jun 12
3 min read

China puts six-month limit on its ease of rare-earth export licenses, WSJ reports, China-backed militia secures control of new rare earth mines in Myanmar, Beijing is asking for production details & confidential lists of customers as part of its export approval process for critical minerals and magnets, free trade ? trade deal done ?
Markets : Israel/Iran situation escalating (risk), crude higher, tame U.S CPI y'day 0.1% softer than exp (core still 2.8%, but ''significantly increases the likelihood of Fed cuts this year, particularly if there is material slowing in employment''), Trump and Vance had a go at Powell to cut now, Trump deal with China isn't a deal at all but it sounded good (''He says, Xi says...''..U.S not in a strong position to negotiate), all about rare earth. LA immigration riots spreading in man other cities nationwide, not good >>> USD following yields lower + risk-off (#USDJPY #JPY), equity for now not too concerned but IMHO, markets been topping out, SPX made a blood rush higher yesterday on the China deal (cough..not a deal), and it wouldn't take much to move lower from here, DAX/EUstocks50 been topping out too, WATCH #VIX, which ticked up a little last 24hours!..
More TACO action : Bessent floats extending tariff pause for countries in ‘good faith’ trade talks
Bessent on inflation: "Inflation in the U.S. is at its slowest pace since 2021 on decelerating cost increases for shelter, food, and energy. After four years of price increases diminishing the U.S. standard of living, inflation is showing substantial improvement due to the administration’s policies"
The market value of the US bond market has fallen to just 68% of the stock market’s value, the lowest ratio since the 1970s
Gibraltar/UK agree deal to hand control of border to EU. Britons will now have to show passports to Spanish or EU guards when they land on the Rock...
#XAUUSD Gold overtook the Euro as global reserve asset 2024, Silver and platinum prices soared as investors seek ‘gold alternatives’ - Prices climb more than 10% this month amid search for hedges against dollar weakness
Paul Tudor Jones Predicts 10% Dollar Slump During the Next Year - “You know that we are going to cut short-term rates dramatically in the next year,” Jones said Wednesday in an interview with Bloomberg TV. “And you know that the dollar will probably be lower because of it. A lot lower because of it.”
(HK) Reportedly Hong Kong’s pension fund managers have earlier formed a preliminary plan to sell down their US Treasury holdings within as soon as three months if the US loses its last recognized AAA credit rating - press [**Reminder: Moody's joined S&P and Fitch at cutting US rating from 'AAA' to 'AA+' on May 16th]
In May, the US Govt collected $370bn, just one big issue it spent $687bn., that's a $315+bn deficit in one single month