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Gold hits record high as US-China ties worsen, Asia stocks helped by technology

Tokyo, Jul 27: Gold hit an all-time high on Monday as tit-for-tat consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets, although sentiment was mixed with tech gains supporting some Asian stocks.
MSCI's ex-Japan Asia-Pacific index rose 1.3 percent as Taiwan's TSMC, Asia's third-largest company by market capitalisation, rose almost 10 percent.
The chipmaker's gains boosted other tech stocks in the region and came after rival Intel signalled it may give up manufacturing its own components due to delays in new 7-nanometer chip technology.
Also soothing sentiment, Chinese shares eked out gains after big falls late last week, with CSI300 index rising 0.5 percent.
S&P500 futures were last up 0.4 percent in choppy trade while Japan's Nikkei fell 0.5 percent, resuming trade after a long weekend and catching up with falls in global shares late last week.
Global shares had lost steam last week after Washington ordered China's consulate in Houston to close, prompting Beijing to react in kind by closing the US consulate in Chengdu.
US Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use "more creative and assertive ways" to press the Chinese Communist Party to change its ways.
"US President (Donald) Trump used to say China's President Xi Jinping is a great leader. But now Pompeo's wording is becoming so aggressive that markets are starting to worry about further escalation," said Norihiro Fujito, chief investment strategist at Mitsubishi Securities.
Gold rose 1.0 percent to a record high of $1,920.9 per ounce, surpassing a peak touched in September 2011, as Sino-US tensions boosted the allure of safe-haven assets, especially those not tied to any specific country.
The yellow metal is also helped by aggressive monetary easing adopted by many central banks around the world since the pandemic plunged the global economy into a recession.
Some investors fret such an unprecedented level of money-printing could eventually lead to inflation.
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Hopes of a quick US economic recovery are fading as coronavirus infections showed few signs of slowing.
That means the economy could capitulate without fresh support from the government, with some of earlier steps such as enhanced jobless benefits due to expire this month.
Investors hope US Congress will agree on a deal before its summer recess but there are some sticking points including the size of the stimulus and enhanced unemployment benefits.
US Treasury Secretary Steve Mnuchin said the package will contain extended unemployment benefits with 70 percent "wage replacement".
Democrats, who control the House of Representatives, want enhanced benefits of $600 per week to be extended and look to much bigger stimulus compared with the Republicans' $1 trillion plan.
Investors are looking to corporate earnings from around the world for hints on the pace of recovery in the global economy.
"It looks like rising coronavirus cases are starting to slow down recovery in many countries," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
Concerns about the US economic outlook started to weigh on the dollar, reversing its inverse correlation with the economic well-being over the past few months.
The dollar index dropped 0.3 percent to its lowest level in nearly two years.
The euro gained 0.3 percent to $1.1693, hitting a 22-month high of $1.16590 as sentiment on the common currency improved after European leaders reached a deal on a recovery fund in a major step towards more fiscal co-operation.
Against the yen, the dollar slipped 0.5 percent to 105.605 yen, a four-month low while the British pound hit a 4 1/2-month high of $1.2832.
Oil prices dipped on worries about the worsening Sino-US relations.
Brent futures fell 0.46 percent to $43.14 per barrel while US crude futures lost 0.44 percent to $41.11.
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Over $200 million fine for major US carriers for selling user location data

Washington, Mar 1: The US Federal Communications Commission (FCC) has proposed a fine of over $200 million for all major US mobile carriers for selling the location data of customers to some agencies.
The Federal Communications Commission today proposed fines against the nation's four largest wireless carriers for apparently selling access to their customers' location information without taking reasonable measures to protect against unauthorised access to that information. As a result, T-Mobile faces a proposed fine of more than $91 million, AT&T faces a proposed fine of more than $57 million, Verizon faces a proposed fine of more than $48 million, and Sprint faces a proposed fine of more than $12 million, the FCC said in a statement on Friday.
The Enforcement Bureau of FCC opened this investigation after reports surfaced that a Missouri Sheriff, Cory Hutcheson, used a "location-finding service" operated by Securus, a provider of communications services to correctional facilities, to access the location information of the wireless carriers' customers without their consent between 2014 and 2017.
"American consumers take their wireless phones with them wherever they go. And information about a wireless customer's location is highly personal and sensitive. The FCC has long had clear rules on the books requiring all phone companies to protect their customers' personal information. And since 2007, these companies have been on notice that they must take reasonable precautions to safeguard this data and that the FCC will take strong enforcement action if they don't. Today, we do just that," said FCC Chairman Ajit Pai.
"This FCC will not tolerate phone companies putting Americans' privacy at risk."
The FCC also admonished these carriers for apparently disclosing their customers' location information, without their authorisation, to a third party
The four major US carriers mentioned sold access to their customers' location information to "aggregators," who then resold access to such information to third-party location-based service providers (like Securus).
Although their exact practices varied, each carrier relied heavily on contract-based assurances that the location-based services providers (acting on the carriers' behalf) would obtain consent from the wireless carrier's customer before accessing that customer's location information.
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India, China Will Have More COVID-19 Cases With More Tests, Says Trump

Washington, Jun 6: US President Donald Trump has said that countries like India and China would have much more coronavirus cases than America, the worst-hit country in the world, if they conduct more tests.
Trump, in his remarks at Puritan Medical Products in Maine, said that the US has carried out 20 million tests.
Compared to the US, Germany is at four million and much talked about South Korea is about three million tests, he said on Friday.
According to Johns Hopkins Coronavirus Resource Center, the US has reported nearly 1.9 million cases and over 1,09,000 deaths, making America the worst affected country, while the total number of coronavirus cases in India and China stand at 2,36,184 and 84,177 respectively.
India has so far conducted over 4 million coronavirus tests, according to the health ministry.
Commenting on the COVID-19 tests in the US, Trump said: "We will be well over 20 million tests. Remember this, when you test more, you have more cases.
"I say to my people every time we test; you find cases because we do more testing. If we have more cases, if we wanted to do testing in China or in India or other places, I promise you there would be more cases... you are doing a fantastic job in getting out the swabs".
Puritan is one of the only manufacturers in the world producing the high-quality medical swabs that are crucial for rapid testing.
"And every swab you make at Puritan is proudly stamped with the beautiful phrase made in the USA."
"Thanks to the testing capacity that you are making possible, our country is reopening and our economy is recovering like nobody would've thought possible," he said.
Referring to the latest monthly employment numbers, Trump said that the economy is now back on track.
"We absolutely shattered expectations, and this is the largest monthly jobs increase in American history, think of that; that's a long time.
"I think it's more than double or about double of what our highest was before so this is the largest monthly job increase in American history. And we're going to have a phenomenal next year. We're going to have a tremendous couple of months prior to the election on November 3 very, very important date," the president said.
Seeking re-election for his second consecutive term, Trump is pitted against Democratic presidential nominee Joe Biden in November 3 presidential elections. Most of the opinion polls shows that Biden is several points ahead of Trump.
"It's going to be a very important election because the only thing that can screw it up is if you get the wrong president and they raise your taxes, and they open up your borders so that everybody pours into our country," Trump said.
Reiterating that he has built a strong economy in the last three years, Trump vowed to bring the economy back on track, which has been badly hit by the coronavirus pandemic.
Describing the fight against coronavirus as the greatest national and industrial mobilisation since the World War II, Trump said that his administration has marshaled the full power of the US government and US industry to defeat the invisible enemy.
"It is indeed an enemy. It came from China, should have been stopped in China. They didn't do that," he alleged.
The administration, he said, has delivered over 1.5 billion pieces of personal protective equipment to doctors and nurses on the front lines. "We slashed the red tape to speed up the development of vaccines. And vaccines are coming along incredibly well, wait till you see, and therapeutics. And we partnered at private sector leaders such as Puritan to build the largest and most advanced testing capacity on the face of the earth, like this one," he said.
The Puritan factory in Maine, he said, quickly ramped up the production to produce nearly 20 million foam tipped swabs each month.
"Then in April, my administration invoked the Defence Production Act to help you scale up even more. Under a USD 75 million public-private partnership, Puritan will soon double production to 40 million swabs per month," Trump added.
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