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

News Network
July 27, 2020

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.

MORE STIMULUS

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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Agencies
May 31,2020

Minneapolis, May 31: The full Minnesota National Guard was activated for the first time since World War Two after four nights of civil unrest that has spread to other U.S. cities following the death of George Floyd, a black man shown on video gasping for breath as a white Minneapolis policeman knelt on his neck.

Minnesota Governor Tim Walz said the deployment was necessary because outside agitators were using protests over Monday’s death of George Floyd to sow chaos and that he expected Saturday night’s demonstrations to be the fiercest so far.

From Minneapolis to several other major cities including New York, Atlanta and Washington, protesters clashed with police late on Friday in a rising tide of anger over the treatment of minorities by law enforcement.

“We are under assault,” Walz, a first-term governor elected from Minnesota’s Democratic-Farmer-Labor Party, told a briefing on Saturday. “Order needs to be restored. ... We will use our full strength of goodness and righteousness to make sure this ends.”

He said he believed a “tightly controlled” group of outsiders, including white supremacists and drug cartel members, were instigating some of the violence in Minnesota’s largest city, but he did not give specific evidence of this when asked by reporters.

As many as 80% of those arrested were from outside the state, Walz said. But detention records show just eight non-Minnesota residents have been booked into the Hennepin County Jail since Tuesday, and it was unclear whether all of them were arrested in connection with the Minneapolis unrest.

The Republican Trump administration suggested civil disturbances were being orchestrated from the political left.

“In many places, it appears the violence is planned, organized and driven by anarchic and left extremist groups - far-left extremist groups ... many of whom travel from outside the state to promote violence,” U.S. Attorney William Barr said in a statement.

In an extraordinary move, the Pentagon said it put military units on a four-hour alert to be ready if requested by Walz to help keep the peace.

Activists staged another round of protests on Saturday in at least a dozen major U.S. cities coast to coast, including Seattle, Los Angeles, Chicago, Cleveland, Dallas, Atlanta, New York and Atlanta.

In the nation’s capital, hundreds of demonstrators assembled near the Justice Department headquarters, then marched toward the U.S. Capitol, chanting, “Black lives matter,” and “I can’t breathe,” a rallying cry echoing Floyd’s dying words.

Many later ended up near the White House, where they faced off with shield-carrying police, some mounted on horseback.

The streets of Minneapolis were largely quiet during daylight on Saturday, though several National Guard armoured personnel carriers were seen rolling through town.

On Friday, in defiance of a newly imposed curfew, Minneapolis protesters took to the streets for a fourth night - albeit in smaller numbers than before - despite the announcement hours earlier of murder charges filed against Derek Chauvin, the policeman seen in video footage kneeling on Floyd’s neck.

Three other officers fired from the police department with Chauvin on Tuesday are also under criminal investigation in the case, prosecutors said.

The video of Floyd’s arrest - captured by an onlooker’s cellphone as he repeatedly groaned, “please, I can’t breathe” before becoming motionless - triggered an outpouring of rage that civil rights activists said has long simmered in Minneapolis and cities across the country over persistent racial bias in the U.S. criminal justice system.

‘PAINS ME SO MUCH’

The mood was sombre on Saturday in the Minneapolis neighbourhood of Lyndale, where dozens of people surveyed the damage while sweeping up broken glass and debris.

“It pains me so much,” said Luke Kallstrom, 27, a financial analyst, standing in the threshold of a fire-gutted post office. “This does not honour the man who was wrongfully taken away from us.”

Some of Friday’s most chaotic scenes were in the New York City borough of Brooklyn, where police armed with batons and pepper spray made more than 200 arrests in sometimes violent clashes. Several officers were injured, police said.

In Washington, President Donald Trump said on Saturday that if protesters who gathered the night before in Lafayette Square, across from the White House, had breached the fence, “they would have been greeted with the most vicious dogs, and most ominous weapons, I have ever seen.”

CHAOS IN ATLANTA

In Atlanta, Bernice King, the youngest daughter of slain civil rights icon Martin Luther King Jr., urged people to go home on Friday night after more than 1,000 protesters marched to the state capitol and blocked traffic on an interstate highway.

The demonstration turned violent at points. Fires burned near the CNN Center, the network’s headquarters, and windows were smashed at its lobby. Several vehicles were torched, including at least one police car.

Rapper Killer Mike, in an impassioned speech flanked by the city’s mayor and police chief, also implored angry residents to stay indoors and to mobilize to win at the ballot box.

“But it is not time to burn down your own home.”

Floyd, a Houston native who had worked security for nightclubs, was arrested on suspicion of trying to pass counterfeit money at a store to buy cigarettes on Monday evening. Police said he was unarmed. An employee who called for help had told a police dispatcher that the suspect appeared to be intoxicated.

In a striking coincidence, Floyd and Chauvin had both worked security at the same Latin nightclub in Minneapolis, though it was unlikely they ever interacted, former owner Maya Santamaria, who sold the El Nuevo Rodeo club in January, told Reuters.

Santamaria said Floyd worked inside the club on certain nights, supporting other staff with security. She said Chauvin, who worked outside the club as an off-duty cop for 16 years, had a reputation for roughing up customers, but she considered him responsible and a friend.

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News Network
March 9,2020

New Delhi, Mar 9: The Delhi Police Special Cell on Monday arrested a PFI member Danish from UP''s Moradabad for allegedly spreading fake propaganda during anti- CAA protests.

"Danish was the head of the Counter Intelligence Wing of PFI and has been actively participating in the anti-CAA protest across the city," sources in the Delhi Police Special Cell said.

Sources further claimed that his arrest has given clues regarding the Information war by the Popular Front of India (PFI).

The FIR related to the protest was filed by the Crime Branch but since the larger conspiracy regarding the Delhi riots is being probed by the Cell, the matter has been transferred to them.

Delhi Police Special Cell had on Sunday arrested a Kashmiri couple from Okhla for alleged links with Islamic State (IS) Khorasan module.

The couple have been identified as Jahanjeb Sami (husband) and Hinda Bashir Beg (wife). The police have seized some objectionable material from them and were interrogating them.

When asked about the couple, the sources said, "Officers of CERT-In are analysing the Eight Mobile phones and Laptop of the couple to question them further."

The couple being an active member of ISJ&K was operating from the Valley but later shifted their base to Delhi post internet clampdown.

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News Network
May 26,2020

New Delhi. May 26: 6,535 more coronavirus cases have been reported in India in the last 24 hours, taking the total number of COVID-19 cases in the country to 1,45,380, informed Union Ministry of Health and Family Welfare on Tuesday.

Out of the total, at present, there are 80,722 active cases in the country. So far, 60,490 people have been cured/discharged and 4167 have died due to the lethal infection.

According to the data compiled by the Centre, Maharashtra has so far recorded the maximum number of cases of COVID-19 across the country with 52,667 people.

The tally of cases in Tamil Nadu has risen to 17,082. While Gujarat has recorded 14,460 cases of the infection so far.

There are 14,073 cases of coronavirus in the national capital.

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