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Fearing A Surge In Inflation, China Launches Probe Into Commodity Futures, “Distorted” Prices

One and a half years after the Chinese government violently burst the stock market bubble, leading the massive losses among retail investors, and months after China’s third housing bubble since the financial crisis appeared to have peaked, also China has found itself with yet another hot-money funded bubble: commodities. And perhaps in hopes of intercepting this latest mania before it gets too big, overnight China’s top economic planner, the National Development & Reform Commission – not a market regulator, but the core agency behind China’s goalseeked economic data – announced it is investigating whether speculation has “distorted” commodity futures prices, due to concerns that the recent rally will drive inflation higher, according to Bloomberg.

In recent weeks, the NDRC has questioned futures brokers whether “price distortion” had occurred, which is a polite way of saying the buying mania has gone too far. The agency is worried over the potential impact on producer and consumer prices. China’s worries are understandable: with commodity prices surging, whether due to speculators or simply tight supply and rising demand, China’s producer prices soared in January by 6.9%, the highest level since the inflationary scare of 2011.

This is the second time China has intervened in the commodity market in the past year: Beijing tightened rules and raised fees on commodities trading last spring, as it sought to clamp down on a speculative frenzy that spurred a rapid run-up in prices and unprecedented volumes. As shown below, when it comes to commodities in China, traders periodically swarm any given asset class, sending it through the roof, only to pull back once the price starts to drop or when the government hints at an imminent crackdown on buyer euphoria.

Despite the government’s best efforts however, due to an overabundance of hot money, steel and iron ore futures have continued to rise on government stimulus, capacity cuts and a steadying in the economy of the world’s biggest metals consumer. Despite the occasional wipe out, most recently in December…

… the levitation in China’s commodity sector has continued. Steel reinforcement bar on the Shanghai Futures Exchange rose to its best level since Dec. 2013 on Monday, while iron ore on the Dalian Commodity Exchange was close to its May 2014 peak. However, trading in the contracts remains well below last year’s heady heights.

On Sunday, Fang Xinhai, vice chairman of market regulator, the China Securities Regulatory Commission, said that China doesn’t want inflated trading volumes, according to an online transcript.

Suggesting that yet another government intervention in the commodity market may be imminent, he said last year’s crackdown on speculation was “satisfactory” and that regulators will “stick to last year’s philosophy” when it comes to supervising futures. He added that the government will look at new measures to enhance pricing, such as attracting more industrial users to participate in the market.

The NDRC has also consulted with institutions including equity brokers on the outlook for commodity prices, according to Bloomberg’s sources. That’s about as close as Beijing gets to warning the country’s brokers that the Politburo is displeased with how high prices have risen. All else equal, the near-term price path for Chinese commodities is likely lower.

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Energy Minister Novak: Russia Cuts More Oil Output In February

Russia’s oil production in February will be lower than the January output, with Moscow cutting more than the 117,000 bpd cut it made last month, Russia’s Energy Minister Alexander Novak said on the sidelines of an event in Sochi on Monday. It’s still early to talk of specific figures for February, but the cut would be more than the 117,000 bpd reduction in January, Russian news agency RIA Novosti quoted Novak as saying to reporters, answering a question about how much oil Russia is cutting this month. The Russian minister also…


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Macron Believes ‘Great Migrations’ Are Unstoppable; Le Pen Says French Media Campaigning ‘Hysterically’ for Macron

The French Presidential elections are very reminiscent of this past American one — with an establishment shill running up against an anti-globalist muckraker. In this case, France’s Hillary Clinton is Macron, a former investment banker for Rothschild & Cie Banque,  a man who believes ‘great migrations’ from the middle east into Europe are unstoppable and will continue to get worse — thanks to geopolitical events and GLOBAL WARMING (Jesus Christ).

He told the crowd: “We have entered a world of great migrations and we will have more and more of it.”
 
“In the coming decades we will have migrations from geopolitical conflicts that will continue to play, and we will have climate migrations because the planet is in a state of deep imbalance,” he said.
 
“France will not be able to stem it, and Europe will be affected immediately. We will see a migratory phenomenon far greater than what we have seen [with migrants from] Syria.”

According to recent ‘polls’, if Macron faced off against Le Pen today, he’d win by 21%. In other words, Le Pen is probably up by 5.

She’s taken exception to Macron’s ‘ultra-liberal’ ways and the media sycophantism.

“The media have chosen their candidate. They are campaigning hysterically for their darling.
 
“They take the moral high ground, pretend to only analyse the facts and then shout about the freedom of the press as soon as you criticise them,” she said to cheers.
 
Two new polls published Sunday showed Le Pen still winning the first round of the election on April 23 with 27 percent, but Macron closing the gap on her with 25 percent.
 
In the run-off vote set for May 7, despite her belief that Trump’s victory and Brexit point to a revival of nationalism and anti-elite movements like hers, Le Pen would lose by 20 points to Macron if it were held today, the polls suggested.
 
“Mr Macron went to Germany recently to express the admiration he had for their decision to welcome 1.5 million migrants,” she said, referring to Chancellor Angela Merkel’s open-door policy for refugees last year.
 
“French people can’t put up with mass immigration any more!” she said, again to cheers from the crowd waving French flags.

 
Content originally generated at iBankCoin.com

 

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Democrat Propaganda Group Shareblue Has Ties To Chinese Government, Host Of Foreign Special Interests

Via Disobedient Media
As the American press has shone a spotlight upon alleged Russian involvement both in the U.S. presidential election and its aftermath, Disobedient Media has identified a number of foreign public and private sector groups using DNC…

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ONGC to proceed on five development projects

India’s Oil & Natural Gas Corp. plans five development projects
with a total estimated cost of $1.1 billion. Four are off the west coast
and one is in the western state of Gujarat.


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Futures Now: Crude oil rallies

The Futures Now team discusses the rise in crude oil, and whether the sentiment is too bullish at his point.

crude oilThe post Futures Now: Crude oil rallies appeared first on crude-oil.news.


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Chair Of House Intel Committee: No Evidence Of Contact Between Trump Campaign, Russia

In what will likely be a setback to the ongoing press campaign to portray the Trump administration and campaign as a Kremlin puppet, on Monday the chairman of the U.S. House of Representatives intelligence committee said he has seen no evidence of contact between Donald Trump’s campaign and the Russian government during the 2016 presidential election, Reuters reported.

Devin Nunes, head of the House Permanent Select Committee on Intelligence, said the panel is expanding an ongoing investigation into Russian activities to include Moscow’s efforts targeting the U.S. election. Nunes said he had been briefed on a transcript of a phone call that former Trump national security adviser Michael Flynn had with a Russian envoy after the election. He said he did not hear anything worrisome about that call.

During a press conference with reporters on Monday, Rep. Nunes downplayed claims that the White House had asked members of the CIA and FBI to squelch reports of contact between Russia and members of Trump’s presidential campaign, saying that there was “nothing wrong” with what he characterized as attempts to have a better working relationship with the press. He also said that the committee wanted evidence of any American citizens who may have talked to Russian officials, implicitly broadening the issue beyond the Trump campaign and administration. He characterized the FBI as being “very upfront” with his committee about what they know about Trump’s potential connections with Russia, although he admitted that he’d like to know more.

When asked if they have any evidence of contacts specifically from the Trump campaign, Nunes replied: “It’s been looked into and there’s no evidence of anything there. Obviously we’d like to know if there is.” He also dismissed concerns that Flynn had violated the Logan Act as “ridiculous” and said that they would not subpoena Trump’s tax returns, which puts him at odds with Senate Intelligence Committee member Susan Collins, R-Maine. Throughout the press conference, Nunes insisted that both he and the White House were simply trying to be “transparent” and claimed to be confused as to why the Trump administration providing his phone number to a reporter would be a news story. He also repeated his earlier statements about wanting to avoid “McCarthyism” and “witch hunts” based on reports that Americans may have connections to the Russian regime.

“This is almost like McCarthyism revisited,” Nunes told reporters at the California Republican Party’s spring convention on Saturday according to Politico. “We’re going to go on a witch hunt against, against innocent Americans?”

Nunes added: “At this point, there’s nothing there. Once we begin to look at all the evidence, and if we find any American that had any contact with Russian agents or anybody affiliated with the Russian government, then we’ll be glad to, at that point, you know, subpoena those people before the House and let the legislative branch do its oversight and then we would recommend it over to, you know, the appropriate people.”

Nunes concluded, saying, “we can’t go on a witch hunt against the American people, any American people who have not had any contact, just because they appeared in a news story.”

Also on Monday, while speaking to a gathering of health insurance executives he was meeting with at the White House, president Trump on Monday dismissed a question about his aides’ alleged ties to Russia by saying he hasn’t spoken to the country in a decade.

Q: Do you support a special prosecutor on Russia?

Trump: “I haven’t called Russia in 10 years.” pic.twitter.com/wJGTUHzBaq

— Bradd Jaffy (@BraddJaffy) February 27, 2017

“I haven’t called Russia in 10 years,” he told a reporter who asked him whether a special prosecutor should carry out an investigation.

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