Johnson & Johnson recalls baby powder and arsenic was discovered in baby …









Johnson & Johnson is recalling more than 30,000 bottles of baby powder because of asbestos contamination concerns, but a new report says that’s not the only potential threat parents need to worry about.

A day before Johnson & Johnson announced it was starting a voluntary recall for one lot of its baby powder “out of an abundance of caution,” a study said 95% of lab-tested baby foods contained traces of at least one of four heavy metals.

The Healthy Babies Bright Futures study found that one in four of the 168 lab-tested baby foods — ranging from purees to juice and teething biscuits — contained all four heavy metals, which are arsenic, lead, cadmium and mercury. Researchers tested both niche brands and widely available brands, such as Gerber — which told MarketWatch the report “may have caused unnecessary alarm about the safety of foods for children.”

Past research has linked the four metals with harm to the brain, among other health consequences, according to Healthy Babies Bright Futures. The organization is an alliance of scientists and public health nonprofit organizations that are focused on ending young children’s exposure to chemicals that can impair development.

Other studies have uncovered heavy metals in baby foods, like one in 2017, which found lead in 20% of some 2,000 baby food samples.

Gerber and Beech-Nut defended the safety of their products

A spokeswoman for Gerber’s parent company, Nestle












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told MarketWatch “trace amounts” of elements like arsenic and lead occur naturally.

For that reason, she said “many food safety and agricultural experts suggest that it is not feasible to achieve a “zero” level of these elements — even in homemade foods made from organic ingredients.”

The company prides itself on strict adherence to food safety, said spokeswoman Kelly Schneider. “We want to reassure parents that Gerber never compromises on the safety or quality of our foods. We are committed in partnership with our suppliers, growers, and manufacturing team to minimize heavy metal levels to as low as possible.”

Beech-Nut Nutrition said in a statement that its products “are dependably safe, healthy and nutritious,” noting it tests for 255 contaminants including lead, other heavy metals and pesticides. Some of the Healthy Babies Bright Futures recommendations “support what we’ve been doing at Beech-Nut for years, including being selective in sourcing and conducting rigorous testing.”

‘Sub-trace levels’ of chrysotile asbestos were found in Johnson & Johnson baby powder

The baby powder recall and the Healthy Babies Bright Futures report amount to distressing news for parents, especially if they don’t have the time to make their own baby food or sort through which baby powders to use.

Johnson & Johnson












JNJ, -5.91%










  said it was initiating the voluntary recall of a single lot — about 33,000 bottles — after a Food and Drug Administration (FDA) test showed “sub-trace levels of chrysotile asbestos contamination” from one baby powder bottle purchased online.

Johnson & Johnson said it couldn’t confirm whether the results were a false positive, or whether the sample came from a genuine Johnson & Johnson bottle or a counterfeit.

“Thousands of tests over the past 40 years repeatedly confirm that our consumer talc products do not contain asbestos,”Johnson & Johnson said in a statement. The company is fending off at least 13,000 lawsuits alleging that baby powder and other talc-containing products cause cancer. The company says its products are safe and don’t cause cancer. It is appealing verdicts against the company and has won several lawsuits in state courts, the Wall Street Journal reported.

The FDA said it took the Johnson & Johnson baby powder sample as it continues to search for asbestos in cosmetic products. It tested Johnson & Johnson baby powder from different lot and the results were negative.

Earlier this year, the FDA found asbestos in children’s makeup products.

How parents can take action

There are few federal guidelines about what’s considered a safe amount of heavy metals in baby food, the Healthy Babies Bright Futures report noted. Eighty-eight percent of the tested foods lacked federal rules or guidance on maximum safe levels, according to the report.

The FDA needs to both create new standards for foods with rules on heavy metal amounts and toughen existing standards too, said Healthy Babies Bright Futures. Companies have already reduced arsenic contaminants amounts in rice cereal and juice by following a FDA guidance, it noted.

The organization is calling for action from government officials and baby food companies, but there are steps parents can take too:

• Feed babies rice-free snacks and oatmeal instead of puffs and rice cereal. Rice can absorb arsenic, a naturally-occurring element, as it grows.

• Let babies gnaw on frozen bananas and chilled cucumbers instead of teething biscuits.

• Serve tap water instead of fruit juice.

• Feed their child a range of fruits and vegetables.

Other pediatric experts have also said mixing up a baby’s diet is a good way to minimize exposure to contaminants in food.

In reaction to the Healthy Babies Bright Futures report, the FDA also advised parents vary the food in their child’s diet.

A spokesman said the agency’s work “includes actively monitoring the levels of arsenic, lead and other elements in foods and working to identify the most effective and feasible ways to reduce exposure to these elements from food. The recent report by Healthy Babies Bright Futures underscores the importance of our continued work in this area.”

The spokesman continued, “While we have seen progress in this area, more work can be done to further decrease exposures to arsenic and lead from foods.”

He said parents should “continue to feed their babies and children an age appropriate, varied, well balanced diet for nutrition and food safety. The FDA is committed to working with stakeholders in industry and in advocacy, to continue to reduce exposure to these elements.”























Andrew Keshner is a personal finance reporter based in New York.


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Achillion Pharma Shares Open 75% Higher After Alexion Buyout Offer

By The Life Science Report

Source: Streetwise Reports   10/16/2019

Shares of Achillion Pharmaceuticals are trading much higher today after the firm reported that it has agreed to be acquired by Alexion Pharmaceuticals for $930 million, or $6.30 per share in cash, along with the potential for an additional $2 per share if certain other specific clinical trial and regulatory milestones are met.

This morning prior to the market open, Achillion Pharmaceuticals Inc. (ACHN:NASDAQ) and Alexion Pharmaceuticals Inc. (ALXN:NASDAQ) announced that they have entered into a definitive agreement for Alexion to acquire Achillion, a clinical-stage biopharmaceutical company “focused on the development of oral small molecule Factor D inhibitors to treat people with complement alternative pathway-mediated rare diseases, such as paroxysmal nocturnal hemoglobinuria (PNH) and C3 glomerulopathy (C3G).” The release indicates that Achillion currently has two clinical-stage medicines in development, danicopan (ACH-4471) in Phase 2 and (ACH-5228) in Phase 1.

Under the terms of the transaction, Achillion shareholders will initially receive $6.30 cash per share of Achillion common stock, for a total price of approximately $930 million. The report further indicates that the transaction includes the potential for additional consideration in the form of non-tradeable contingent value rights (CVRs), which will be paid to Achillion shareholders if certain clinical and regulatory milestones are achieved within specified periods. These CVRs include $1.00 per share for the FDA approval of danicopan and $1.00 per share for ACH-5228 Phase 3 initiation.



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The report notes that the acquisition is subject to the approval of Achillion shareholders and satisfaction of customary closing conditions and approval from relevant regulatory agencies, including clearance under the Hart-Scott Rodino Antitrust Improvements Act, and is expected to close in the first half of 2020.

For Alexion, the benefit of the deal is that it adds a clinical-stage portfolio of oral small molecule Factor D inhibitors to its pipeline. “Factor D is an essential serine protease and critical control point in the alternative pathway (AP) of the complement system, a part of the innate immune system.” The release further states that deal provides the opportunity to “enhance treatment for Paroxysmal Nocturnal Hemoglobinuria (PNH) patients experiencing extravascular hemolysis (EVH) with a potential first-in-class C3 Glomerulopathy (C3G) therapy and promising development platform for Factor D inhibition in additional alternative pathway complement-mediated rare diseases.” C3G is an ultra-rare kidney disease for which there is no approved treatment.

Achillion ‘s President and CEO Joe Truitt commented, “We have established great momentum—discovering and advancing several small molecules into clinical development that have the potential to treat immune-related diseases associated with the alternative pathway of the complement system. . .Having already demonstrated proof-of-concept and proof-of-mechanism with our lead candidate, danicopan (ACH-4471), in PNH and C3G, respectively, we believe there is significant opportunity for Factor D inhibition in the treatment of other diseases as well. Alexion is an established leader in developing medicines for complement-mediated diseases, and we look forward to working together to accelerate our objective of bringing novel therapies to patients as quickly as possible and ensuring that the broad promise of this approach is fully realized.”

Ludwig Hantson, Ph.D., CEO of Alexion, stated, “Alexion has demonstrated the transformative impact that inhibiting C5 can have on multiple rare and devastating diseases. However, we believe this is just the beginning of what’s possible with complement inhibition…Targeting a different part of the complement system—the alternative pathway—by inhibiting Factor D production addresses uncontrolled complement activation further upstream in the complement cascade, and importantly, leaves the rest of the complement system intact, which is critical in maintaining the body’s ability to fight infection. We believe this approach has the opportunity to help patients with diseases not currently addressed through C5 inhibition. We look forward to applying our nearly three decades of complement and development expertise to unlock the potential of oral Factor D inhibitors and bring these benefits to patients.”

Alexion Pharmaceuticals is headquartered in Boston, Mass., and has offices around the world serving patients in more than 50 countries. It describes itself as a global biopharmaceutical company “focused on serving patients and families affected by rare diseases through the discovery, development and commercialization of life-changing therapies,” and focuses its research efforts on the core therapeutic areas of hematology, nephrology, neurology and metabolic disorders. Alexion trades under the symbol ALXN on the NASDAQ and has a market capitalization of about $23.5 billion.

Achillion Pharmaceuticals is a “clinical-stage biopharmaceutical company focused on advancing its oral small molecule complement inhibitors into late-stage development and commercialization” in the therapeutic areas of nephrology, hematology, ophthalmology and neurology. The firm notes that the potential indications being evaluated for its compounds include paroxysmal nocturnal hemoglobinuria (PNH), C3 glomerulopathy (C3G), and immune complex membranoproliferative glomerulonephritis (IC-MPGN). The company reports that it received Breakthrough Therapy designation for danicopan for treatment in combination with a C5 monoclonal antibody for patients with paroxysmal nocturnal hemoglobinuria (PNH) who are sub-optimal responders to a C5 inhibitor alone.

Achillion Pharmaceuticals began the day with a market capitalization of about $509.9 million and approximately 139.7 million outstanding shares. ACHN shares opened nearly 75% higher on the news today at $6.38 (+$3.65, +74.79%) compared to the prior day’s $2.73 closing price. The stock has traded today on very high volume between $6.10 and $6.44/share and at present is trading at $6.23 (+$2.58, +70.68%).

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( Companies Mentioned: ACHN:NASDAQ,
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Brexit Optimism Rises Despite Parliament Obstacle

The British pound is near 5-month highs ahead of Saturday’s showdown as the UK parliament is being asked to ratify the deal that PM Johnson and his EU counterparts reached to avoid a hard Brexit on October 31. The odds of Boris Johnson rallying lawmakers to support his deal are not good, but anything Brexit related comes with room for a surprise result. Theresa May’s decision to trigger a snap election that took the DUP from the fringes of UK politics to king makers and the Northern Ireland MPs could end up derailing this new deal on the table.

China’s GDP on Thursday night confirmed the slowdown of the Asian economy. The Chinese economy was losing momentum even before a prolonged trade war with the US and posted a 6% quarterly growth, the lowest since March 1992, when records began to be kept. Industrial production beat expectations but was the single upbeat indicator as consumers met expectations excluding car sales that have been on a downward spiral for the last 15 months.

Euro rises as Brexit Hopes Boost Single Currency

Next week ECB President Mario Draghi will deliver his last speech as head of the central bank as he makes way for his successor Christine Lagarde who takes over in November. The central bank has taken interest rates to negative territory and has renewed its QE program to avoid the EU falling into a recession.

The ECB’s arsenal appears depleted and leaves Lagarde few options outside of diplomacy to enact economic change in Europe. Draghi was well known for this “whatever it takes” attitude, but the ECB might have overextended itself as per his critics who are already pressuring Lagarde to reduce stimulus.

The economic calendar is light on US indicator releases. The economy is sending mixed signals and the market has been more sensitive to data missing the mark as it expects the U.S. Federal Reserve to cut its benchmark rate on October 30.

The limited agreement struck between the US and China last Friday sparked a wave of optimism but as the days drag on it is starting to wear off.

The US dollar is on the back foot as risk aversion eased and investors looked for higher yields and sold the greenback.

The Brexit deal agreed between the UK PM and European leaders supported the risk on mood, but as the odds of parliament ratifying the deal started to get long the US dollar is likely to find its footing ahead of the weekend and the uncertainty of the outcome.

USD/CAD
The loonie appreciated in the last five trading sessions and looks to close the week on positive territory. Oil prices have defied expectations, but there could be an impact from the election results.

Canadian dollar weekly graph October 14, 2019

Canadians will head to the polls on Monday with a minority government the most likely result. The Liberals will lose their majority and without conservatives closing the gap, the big winners could be the New Democratic Party forming a party with the Liberals.

The USD is on the back foot, and more risk appetite could push the CAD to break under 1.30 against the greenback.

BITCOIN
Bitcoin traders are breathing a sigh of relief after the plummet below $8,000 seems temporary. Thursday’s rise is significant as the past few days saw many investors join the bearish camp. If Bitcoin can finish out the week above the noted $8,000 level we could finally see it consolidate back towards the $8,750 region.

Bitcoin is more stable, but still pressured to the downside with the rise of the USD.

OIL
Oil prices brushed off a large buildup in US crude inventories and keeps moving higher as gasoline and distillates had a larger than expected drawdown. Growth concerns are balanced against US-China trade deal hopes and energy is caught in the middle.

Middle East tensions eased, but potential supply disruptions do not move the current market that is more focused on macro headwinds and less on supply/demand fundamentals. Oil is sensitive to various developments be it inventories, global growth, the trade war, Iranian sanctions or OPEC.

GOLD
Gold fell on the news PM Boris Johnson got a Brexit deal done with the EU, but that price action was short-lived. Gold is seeing buyers emerge and it seems it is only a matter of time before we see another run towards the $1,500 an ounce level.

With earnings starting to come in more mixed, the lack of fresh record high with US equities will likely see flows come back to oil. Trade optimism could evaporate giving gold a leg up.

New positions could be opened in the metal as price becomes more attractive with a high level of uncertainty still in the market.

POLITICS

Turkey’s steady military initiative in Syria is taking a break after VP Pence and President Erdogan reached an agreement for a cease-fire.

Turkey’s economy is in a very fragile state and while they expect 2020 to be a year which sees the economy rebound, if they get hit with fresh sanctions, that could derail a wrath of stimulus that is waiting to help growth enter a more sustainable path.

The lira volatility is likely to remain high as we will probably see a resumption of military attacks from Turkey after the cease-fire ends. Turkey is nowhere near being satisfied with their concerns that the Kurdish control an area so close to its border.

US – Iran
As Saudi Arabia and the US ramp up their defensive measures to protect critical hubs of oil protection, markets remain on edge over what will be the next escalation in tensions in the Middle East.

The US is deploying more troops in Saudi Arabia and helping the Saudis improve their anti-drone technologies. Right now, it feels like a game of chess with each side strategical enhancing their missile systems. We are one tanker attack, drone strike or missile offensive from going to war. It seems all parties do not want war, but we could the risks for accidentally getting to one are growing.

US Elections
It is a long way until the fifth Democratic debate on November 20th and that means we should see the focus shift to fundraising. While the field remains plentiful, markets are starting to expect the final four to become Warren, Biden, Buttigieg, and Sanders.

If Biden secures more funding in the coming weeks, he should be the favorite for the Democratic nomination. Warren and Sanders continue to split the progressive vote and we could see Bernie get a bounce after key endorsements from AOC and a solid performance at the last debate.

BREXIT
Boris Johnson has a tough job ahead of Saturday’s Parliamentary vote. He needs to convince MPs to vote for his Brexit deal or seek an extension of Article of 50. Johnson may choose to try to take UK out of the EU with a hard exit at the end of the month, but that may be less likely as he could lose that battle in the courts, thus giving up a lot of recently won political capital.

The upcoming Brexit vote is too close to call, but even if we see Johnson’s deal pass, this does not include a trade agreement so sterling’s gains would likely be capped around the 1.35 to 1.3750 region.

Market events to watch this week:

Tuesday, Oct 22
• 8:30am CAD Core Retail Sales m/m
• 10:30am CAD BOC Business Outlook Survey
Wednesday, Oct 23
• 10:30am USD Crude Oil Inventories
Thursday, Oct 24
• 3:15am EUR French Flash Services PMI
• 3:30am EUR German Flash Manufacturing PMI
• 3:30am EUR German Flash Services PMI
• 7:45am EUR Main Refinancing Rate
• 7:45am EUR Monetary Policy Statement
• 8:30am EUR ECB Press Conference
• 8:30am USD Core Durable Goods Orders m/m

*All times EDT
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Skyharbour Drilling Deeper in Athabasca Basin

The Energy Report

Source: Maurice Jackson for Streetwise Reports   10/16/2019

Jordan Trimble, CEO of Skyharbour Resources, sits down with Maurice Jackson of Proven and Probable to discuss his company’s exploration plans in Canada’s uranium-rich Athabasca Basin.

Maurice Jackson: Joining us for a conversation is Jordan Trimble, the president, director and CEO of Skyharbour Resources.

Glad to have you on the program to discuss Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQB) is a preeminent uranium explorer in Canada’s Athabasca Basin. Readers should note that we recently conducted a very thorough comprehensive interview regarding the value proposition of Skyharbour Resources. We encourage you to visit that interview to fully appreciate today’s interview. Mr. Trimble, please introduce us to Skyharbour Resources and the opportunity the company presents to the market.



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Jordan Trimble: We are a high-grade uranium exploration and early-stage development company with projects in the Athabasca Basin in northern Saskatchewan, which is known for the highest-grade depository of uranium in the world. We have six projects scattered throughout the Basin on the west side near recent notable discoveries made by NexGen and Fission, as well as projects over on the east side where you have infrastructure and the largest and richest uranium mines in the world being at McArthur River and Cigar Lake. We’ve done a good job over the last five or six years of acquiring projects at attractive valuations in a depressed uranium market.

Our flagship project is a project called Moore Lake. Moore Lake is a project we acquired about three years ago from our largest shareholder and strategic partner, Denison Mines. We’ve been actively exploring and advancing that project, making some recent notable discoveries. We are now preparing for a winter drill program. That’s a big upcoming catalyst for the company, and then in addition to our offering that high-grade discovery potential, really looking to emulate the recent again successes at the Nexgens, Fissions, Hathors of the world. We also act as a prospect generator. We look to bring in partner companies to advance our other projects.

Notably, we’ve done two deals in the last several years, one of which is with France’s largest uranium mining company known as Orano, previously called AREVA, where it can spend upwards of $8 million to earn up to 70% of our Preston Project. We conducted a similar deal with Azincourt a few years back under similar terms where it spent $3.5 million, to earn up to 70% of our East Preston Project. A good complement to what we’re doing at our flagship. These partner companies fund the work. We get some cash payments from them, and we also benefit from news flow.

That’s the company in a nutshell, run by myself, my team here in Vancouver, and my head geologist and a director of the company, Rick Kusmirski, and our geological team in Saskatoon. Some notables on the Board and Advisory Board, David Cates, who is the president and CEO of Denison Mines, which is our strategic partner and our largest shareholder. Another gentleman, Paul Matysek, a strategic advisor to the company. Skyharbour Resources has a good technical team and management team and a strong shareholder base as well.

Maurice Jackson: To gain some better context and appreciation for Skyharbour’s most recent press release, Mr. Trimble, where in the Athabasca is the flagship Moore Lake Project located? How many hectares does it contain?

Moore Uranium Project Claims Map

Jordan Trimble: The Moore Lake Project is a big property. It’s about 36,000 hectares. It’s located on the east side of the Athabasca Basin, south of McArthur River, and approximately 13 kilometers east of Denison’s flagship Wheeler Project. The road that goes up to McArthur River is actually in between Denison’s project and our project. Logistically for us, especially in the winter, it’s very easy to get in and out. The main Maverick corridor where most of the drilling is focused is very easy to work on. The infrastructure allows our drill costs to come down quite a bit as we are ideally located or situated on the east side where the infrastructure is, power, roads, existing mines and mills. That’s an important part of the story here for us at our flagship project.

Maurice Jackson: Jordan, take us to your flagship Moore Lake Project, which is known for its rich, high-grade uranium, and let’s discuss the details of the company’s latest press release regarding airborne geophysical surveying and the exciting plans for the upcoming drill program.

Jordan Trimble: We announced about a week ago results from a UAV drone MAG survey flown by Pioneer Aerial Surveys, and so this is a new technique that we’re using to refine and identify new and existing targets at our flagship project, Moore Lake Project. At the project, there’s a 4-kilometer-long structural mineralized corridor called the Maverick corridor. This is where most of the historical exploration and the drilling we’ve carried out over the last several years has been focused. There’s high-grade uranium mineralization there, upwards of 21% U308. There are several high-grade pods along strike on this 4-kilometer-long corridor, but really only 2 kilometers of it has been systematically drill tested, so there’s room to expand alongside strike, make additional discoveries.

What’s intriguing right now and what’s significant for this upcoming drill program is that we are now looking a little bit deeper in drill testing, a little bit deeper into the basement rocks. Worth noting, these recent discoveries that were referenced with NexGen, Fission, the Gryphon deposit that Denison discovered several years back, these are all basement-hosted deposits below the sandstone sediments and the unconformity being the contact.

Finding these feeder zones in the basement rock, that’s where you can really find your biggest and highest-grade deposits in the Athabasca Basin and what’s exciting about this project right now is that using these new techniques, these MAG surveys flown by drones, we’re able to get a more refined geophysical signature, get a better picture of what is happening beneath, and properly with pinpoint accuracy target these potential feeder zones. We really believe that we’re going after some of our best targets.

It’s worth noting in the last drill program, which was earlier in the year, one of our last drill holes intersected some of the highest-grade mineralization that we found in the basement rock on this project to date. Again, relatively untested. We really think we’ve just scratched the surface and we believe we’re on to finding something much larger in these basement rocks.

The results from the MAG survey identified cross-cutting structures, features that basically come and break up that main structural corridor and allow the fluids, uranium to come up. We’ve identified a couple of top priority targets, one of which is at what’s called the East Maverick Zone. This was a new discovery we made a few years ago where we discovered high-grade mineralization along strike from the main Maverick Zone and we had grades there upwards of 9% over a meter and a half.

In this last drill program, on one of these last holes drilled we successfully hit high-grade in the basement rock, but we haven’t been able to follow up on it yet. Sure enough, we flew the drone survey. We see a target a little bit deeper down and we’re going to be drill testing that in this program coming up. We also have another zone about a kilometer and a half along strike up to the northeast called the Viper Zone.

We’ll be drill testing the Viper Zone, and then from a regional perspective, it’s a big property, we’re going to be going back into an area that’s had limited historical drilling called the Otter Zone, and this was a zone about 9 kilometers away actually from that main Maverick corridor that we drilled a couple of holes earlier this year. It had anomalous uranium mineralization, but definitely warrants follow-up work, so we’ll be doing a little bit of exploratory work and drilling there as well.

Maurice Jackson: Let’s discuss the forthcoming drill program.

Jordan Trimble: It’s going to be winter drill program. We’re waiting for freeze-up, so that’ll be later this year and early in the new year. We have planned and budgeted for 2,500 meters of drilling. We’ll have details out on this drill program over the next month or two here, so look out for additional news flow on that. We’re just going through the final plan right now, and we have those highlighted for readers in our news release. Most of the drilling focused at the Maverick Zone, in particular the Maverick East Zone and then the Viper Zone, and then a regional target at the Otter Grid.

Maurice Jackson: What are some of the potential catalysts on the horizon for shareholders?

Jordan Trimble: The big one needless to say is this upcoming drill program. One hole can change the fortunes for the company and can really be a game changer. I think given the current valuation and market cap, one big hole we can see a significant price increase on that. Again, we’re out there looking to make that next big high-grade discovery, continuing to advance our flagship project. That’s a big one, but we also, as I mentioned earlier, acting as a prospect generator, have partner companies that are planning upcoming work programs, specifically Orano at our Preston Project, which is adjacent to NexGen’s ground and Fission as well on the west side of the Athabasca Basin. Orano completed previous drill programs and exploration programs at Preston and it is now planning for an upcoming winter program as well. We’ll have details on that program when we get the final plan from them.

In addition, last month we shared our partners at Azincourt announcing plans for a 2500-meter drill program at our East Preston Project. These are partner-funded programs. Collectively, the partners spending upwards of $11.5 million to earning up to 70% of our Preston East and Preston Project. Both of these programs will provide news flow for Skyharbour. We do get some cash payments as per the option earning agreements with the partners and it’s a great complement to our value proposition. These are added catalysts that we have at our flagship project, Moore.

Another note I’ll just make is we are talking with other companies right now regarding interest that we are receiving from other groups on additional noteworthy projects that we have as a prospect generator. We’re always looking to bring in strategic, value-add partners to come in and advance our secondary projects, and we have three other projects on the east side of the Athabasca Basin in Falcon Point, Mann Lake, and Yurchison, all three which are a 100% owned. Falcon Point is worth noting that there’s a small resource there, NI 43-101 compliant inferred resource, and a very high-grade surface showing on the north end of the property at 68% U308. A project that we would like to get back to work to or find a partner company to come in and fund that exploration, as we think there’s a lot more to be found there.

Maurice Jackson: Switching gears. Mr. Trimble, please share the current capital structure for Skyharbour Resources.

Jordan Trimble: Skyharbour Resources has 64 million shares issued and outstanding. I’d say just under half of that is in the hands of several groups, including management and insiders. As I mentioned, Denison Mines is our largest strategic shareholder. We have a few funds and institutional investors that have come in over the last several years.

Maurice Jackson: When was the last time you purchased shares? At what price?

Jordan Trimble: That was actually today. I’ve been buying more shares in the market over the last several weeks. In the last couple of months here, just a note on the market post-Section 232, we have seen a sell-off across the board with uranium companies. There was a lot of money or some money that came into the sector about a year ago that drove higher prices, and some of that money that came in came in on a trade on this 232. It was event-driven funds and money that came in that bid these companies up.

We also saw that in the backdrop of a rising uranium price, but we’ve now seen some of those funds have to exit the sector and we’ve seen a sell-off as a result of that, so it’s, I think, really just a short-term unfortunate sell-off that we’re going through, again, across the board. It’s, I believe, an incredible buying opportunity and value proposition, given that we’ve continued to advance our projects. I think there’s going to be also a move in the uranium price here between now and year end that will help drive higher prices. I think the value proposition right now is really better than ever given the upcoming catalysts we have and, again, this uranium market recovery.

Maurice Jackson: Mr. Trimble, last question. What did I forget to ask?

Jordan Trimble: I would like to touch on the uranium market. It’s obviously a big part of our story and there’s a lot to update on since we last spoke. We have seen the uranium price settle in. It’s pulled back a little bit earlier in the year, but it has settled in the mid-20s. We’re still trading near historical lows and in inflation-adjusted terms, we’re trading well below that average global cost of production. We need to see a much higher uranium price for new mines to come on-line, for existing mines that have been idle to come back on-line, most notably McArthur River. There’s a good case, a compelling case, for much higher uranium prices given the supply-demand. We’re now seeing a major supply deficit forming.

I was just at the World Nuclear Association Symposium in London, which is one of the marquee conferences for the nuclear industry and uranium mining industry held annually in London and was quite interesting. The association came out with its bi-annual fuel report and this was, I think, one of the key takeaways from the conference is seeing that fuel report really I think opened a lot of people’s eyes to what’s happening in the uranium mining sector right now. You’ve had major supply curtailments, almost 30% of global primary mine supply that’s been either shut down or curtailed, including as I mentioned McArthur River in the Athabasca Basin. You’ve seen major supply cuts in response to a low commodity price environment. We’re now producing about 135 million pounds from primary mine supply and that’s in the backdrop of well over 190 million pounds of annual demand in reactor requirements. I think something has got to give. That’s obviously coming from secondary supplies.

I think we’ll see secondary supplies continue to dwindle here and we’re seeing that spot market tightening up. One of the big talking points going forward here in the near term, and potentially one of the biggest catalysts for any uranium company, is the fact that Cameco, because it has shut down its largest mine at McArthur River, it has to buy or shore up supply of uranium either in the spot market or from other secondary sources to meet to delivery into the contracts that it has with utility companies. We now know that it has to buy quite a bit between now and year-end, potentially upwards of 10 million pounds, and then next year over 20 million pounds. That’s a lot of material that it has to get either from secondary supplies or what appears will happen, it will have to buy some of that, if not all of that, in the spot market over a very short period of time.

Just to give some perspective on that, a year ago when a lot of these uranium companies including us were hitting 52-week highs, that was driven by a uranium price increase from the low $20s to about $29 a pound in about a five-month period. A big part of that was Cameco buying in the spot market and it bought about 8 million pounds. Here we are today and Cameco has to buy about 10 million pounds between now and early in the new year, and so this could be one of the single-largest catalysts for the spot price over the coming months. I think if we see that spot price break $30 a pound, we’ve seen this resistance in the high 20s, but I think if we see it break $30 a pound, I think that is what is going to spur utility buying contracting to pick up.

In our previous interview, we’ve discussed Cameco’s participation is going to be one of the more important catalysts coming up over the next few years, but I think it’s waiting to see that price tick up through $30, and as we’ve seen in the past. It’s important to note, that the combined market capitalization of all publicly traded uranium companies is less than $10 billion. That means that money that comes into the space works its way down to the junior companies like Skyharbour quite quickly, so we see that uranium move as we have seen a few times in the past several years. We benefit from that quite quickly. Money flows down quickly from the large caps to the small caps in the sector.

Maurice Jackson: Mr. Trimble, for someone listening that wants to get more information about Skyharbour Resources, please share the website address.

Jordan Trimble: Absolutely, so it’s skyharbourltd.com. More than welcome to get in touch with me directly my office, or you can email me at [email protected].

Maurice Jackson: Skyharbour Resources trades on the (TSX.V: SHY| OTCQB: SYHBF). Skyharbour Resources is a sponsor of Proven and Probable. As a reminder, I’m a Licensed Representative for Miles Franklin Precious Metals Investments. We offer a number of opportunities to expand your precious metals portfolio, from physical delivery, offshore depositories, precious metal IRAs, and private blockchain-distributed ledger technology. Call me directly at 855-505-1900 or you may email [email protected]. Finally, please subscribe to provenandprobable.com. We provide Mining Insights and Bullion Sales.

Jordan Trimble of Skyharbour Resources, thank you for joining us today on Proven and Probable.

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Poloniex Rebrands to Polo Digital Assets Following Circle Spin-Off

Circle, the blockchain startup backed by Goldman Sachs, announced Friday it is spinning out its US-licensed crypto exchange Poloniex, which was expected to capture more value for the parent company when it acquired last year in a deal reportedly worth ‎‎$400 million.

Now, an Asian investment group has submitted a proposal to back Poloniex, which will rebrand as Polo Digital Assets, and would result in the full separation of the crypto business from Cricle. The crypto unicorn said it is confident that the spinoff provides strong footing for Poloniex to continue its journey as a thriving, independent company.

London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now

After eliminating 30 positions or 10 percent of its workforce, citing regulatory uncertainty, Poloniex’s new backers plan to employ more than 100 full-time employees. The new investors will also invest more than $100 million into the development and expansion of Poloniex.

Circle said unloading Poloniex will free its resources to focus on expanding USD Coin ecosystem as the company is part of a consortium, which includes rival exchange Coinbase, that is offering US dollar-pegged cryptocurrency.

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Poloniex to bar US customers

The new developments also affect Poloniex US operation as the new entity plans to close access to trading for clients from the United States. The crypto venue said the new restrictions would be imposed effective November 1 where US residents will no longer be able to trade on the exchange. They will have until December 15 to withdraw funds through wallet and custody services operated by Circle.

The move comes as Circle has expanded into a wide range of crypto-related business, including Circle Invest, which enables purchases of 11 different coins and Circle Trade, an OTC marketplace that handles turnover of more than $2 billion each month.

The Boston-based firm also seeks to lock in large institutional clients while expanding outside the highly regulated realm of US crypto industry. Most recently, it launched and licensed a new subsidiary in Bermuda, and also acquired SeedInvest, an alternative trading system licensed under FINRA. There are rumors that Circle will apply for a banking license too.

Circle is one of the few unicorns in the crypto industry. The company is heavily backed by giants including Goldman Sachs, Pantera Capital, IDG Capital, and Breyer Capital.

Along with its existing $246 million funding, the company is reportedly eyeing to raise another $250 million in a combination of equity and debt.

Interest Rate Cut Odds Drop for BOC, ECB, and RBA – Central Bank Watch

Central Bank Watch Overview:

  • With a Brexit deal in focus and the US-China trade war de-escalating, G10 currencies’ central banks’ rate cut odds have receded.
  • While the RBA looks like it still may cut rates again in 2019, rates markets are no longer discounting rate cuts from the ECB this year, and the BOC is expected to stay on hold until September 2020.
  • Retail trader positioningsuggests EUR/USD may continue to rise and USD/CAD may continue to fall.

Looking for longer-term forecasts on the Australian Dollar, Euro, or the Canadian Dollar? Check out the DailyFX Trading Guides.

With a Brexit deal in focus and the US-China trade war de-escalating, G10 currencies’ central banks’ rate cut odds are shifting. Further gains by global equity markets alongside selloffs by the trio of safe haven currencies (Japanese Yen, Swiss Franc, and US Dollar) indicate that risk appetite has improved materially alongside falling rate cut odds. While the RBA looks like it still may cut rates again in 2019, rates markets are no longer discounting rate cuts from the ECB this year, and the BOC is expected to stay on hold until September 2020.

No ECB Rate Cut Until June 2020

Alongside progress on both the Brexit and the US-China trade war fronts, G10 currencies’ central banks interest rate cut odds have dropped in recent days. To no surprise, the European Central Bank has seen rate cut odds ease further.

EUROPEAN CENTRAL BANK INTEREST RATE EXPECTATIONS (OCTOBER 3, 2019) (TABLE 1)

Interest Rate Cut Odds Drop for BOC, ECB, and RBA - Central Bank Watch

According to overnight index swaps, market participants are currently discounting a 71% chance of no policy change at the October ECB meeting, down from 83% this time last week. But this is due to rising odds of a 10-bps rate hike, from 20% to 29% over the same timeframe. Nevertheless, having just previously cut interest rates last month, it seems highly unlikely that the ECB would reverse course in such quick order.

IG Client Sentiment Index: EUR/USD Rate Forecast (OCTOBER 18, 2019) (Chart 1)

Interest Rate Cut Odds Drop for BOC, ECB, and RBA - Central Bank Watch

EUR/USD: Retail trader data shows 40.6% of traders are net-long with the ratio of traders short to long at 1.46 to 1. The percentage of traders net-long is now its lowest since Jun 10 when EUR/USD traded near 1.13141. The number of traders net-long is 7.2% lower than yesterday and 21.4% lower from last week, while the number of traders net-short is 10.5% higher than yesterday and 11.1% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/USD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EUR/USD-bullish contrarian trading bias.

BOC Rates to Stay on Hold Until September 2020

The Canadian economy continues to show signs of resiliency in the face of an uncertain global growth environment, with USD/CAD quickly approaching its yearly lows even though its commodity currency brethren have recently hit yearly lows versus the US Dollar. Stability in oil prices could with a relaxation in tensions between the US and China are catering to a reduction in Bank of Canada rate cut expectations.

Bank of Canada Interest Rate Expectations (OCTOBER 18, 2019) (Table 2)

Interest Rate Cut Odds Drop for BOC, ECB, and RBA - Central Bank Watch

According to overnight index swaps, the odds of a BOC rate cut this year are continuing to dwindle. Last week there was a 6% chance of a 25-bps rate cut at the October BOC meeting; now, there is only a 4% chance. Rates markets are expecting a quiet BOC over the coming months: the first month that sees rate expectations in excess of 50% is September 2020 (56%).

IG Client Sentiment Index: USD/CAD Rate Forecast (OCTOBER 18, 2019) (Chart 2)

Interest Rate Cut Odds Drop for BOC, ECB, and RBA - Central Bank Watch

USD/CAD: Retail trader data shows 57.4% of traders are net-long with the ratio of traders long to short at 1.35 to 1. The number of traders net-long is 42.5% higher than yesterday and 91.5% higher from last week, while the number of traders net-short is 9.1% lower than yesterday and 1.1% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CAD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/CAD-bearish contrarian trading bias.

Odds of Another RBA Rate Cut in 2019 are Fading

More signs that the US-China trade war is de-escalating has been a welcomed development for the Australian economy, whose two largest trading partners are engaged in a stalemate. As a result, the Reserve Bank of Australia has seen market participants reduce their rate cut expectations in recent weeks. Rates markets are now pricing in no more than a coin flip’s chance of a rate move by the end of the year.

Reserve Bank of Australia Interest Rate Expectations (OCTOBER 18, 2019) (Table 3)

Interest Rate Cut Odds Drop for BOC, ECB, and RBA - Central Bank Watch

Odds of a 25-bps rate cut at the November RBA meeting have dropped further over the past two weeks, from 47% on October 4 to 18% today. There is only a 50% chance of a rate cut at the December meeting. If not, then markets are pricing in a 63% chance of a 25-bps interest rate cut at the first meeting of 2020. The rate cut cycle appears to be coming to an end: there are no other rate cuts discounted for the rest of next year.

IG Client Sentiment Index: AUD/USD Rate Forecast (OCTOBER 18, 2019) (Chart 3)

Interest Rate Cut Odds Drop for BOC, ECB, and RBA - Central Bank Watch

AUD/USD: Retail trader data shows 58.7% of traders are net-long with the ratio of traders long to short at 1.42 to 1. In fact, traders have remained net-long since Jul 19 when AUD/USD traded near 0.69772; price has moved 1.9% lower since then. The percentage of traders net-long is now its lowest since Sep 16 when AUD/USD traded near 0.6868. The number of traders net-long is 3.3% higher than yesterday and 6.1% lower from last week, while the number of traders net-short is 10.5% higher than yesterday and 29.8% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUD/USD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current AUD/USD price trend may soon reverse higher despite the fact traders remain net-long.

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

— Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher Vecchio, e-mail at cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

View our long-term forecasts with the DailyFX Trading Guides

NY Fed’s GDP Nowcast fell to 1.9% for Q3

According to the Federal Reserve Bank of New York’s latest Nowcasting Report published on Friday, the United States’ (US) economy is expected to expand by 1.9% in the third quarter of the year and 1.1% in the last quarter.

“News from this week’s data releases decreased the nowcast for 2019:Q3 by 0.1 percentage point and decreased the nowcast for 2019:Q4 by 0.3 percentage point,” the NY Fed explained in its publication. “Negative surprises from retail sales, capacity utilization, and housing data accounted for most of the decrease.”

USDCAD Analysis: Higher manufacturing sales bearish for USDCAD

By IFCMarkets

Higher manufacturing sales bearish for USDCAD

Manufacturing sales rose 0.8% in August in Canada, after two consecutive monthly declines. Will the USDCAD decline?

USDCAD rising toward MA(200)

The price chart on 1-hour timeframe shows USDCAD: H1 is in uptrend. The price is rising toward the 200-period moving average MA(200) which is falling. The RSI oscillator is falling but has not reached the oversold zone.



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Technical Analysis Summary

Market Analysis provided by IFCMarkets

Federal Reserve’s New QE Transfers Wealth; Bill Holter: Credit Seizure

Bill Holter

Mike Gleason: It is my privilege now to welcome in Bill Holter of JSMineset and the Holter-Sinclair Collaboration. Since leaving Wall Street more than a decade ago, Bill has made a name for himself as an astute and highly respected market commentator, writer and has teamed up with Jim Sinclair to help others discover the inherent dangers of our debt based economy and how to protect yourself against it.

Bill, it’s great to have you back and I very much appreciate the time today. Welcome.

Bill Holter: Thanks for having me, Mike.

Mike Gleason: Well Bill, let’s talk for a minute about what the Fed has been up to. They announced some intervention in the repo markets late last month. The program was initially sold as something very short term, there was absolutely nothing to worry about. Now that program has been extended through at least January and the Fed is seeing daily demand for short-term loans of $50 to $80 billion. Again, that’s per day. We know lying is part of the job description at the Fed. It sure seems like something serious is going on when banks start charging one another huge interest rates, or stopped doing this short term, fully collateralized lending altogether. Something is definitely rotten, but the markets aren’t really reacting. There isn’t that much talk about it in the financial press. What is your best guess about why the Fed has had to step in there with hundreds of billions of dollars? Are they bailing out Deutsche bank, another bank? What’s happening here?

Bill Holter: Well, we don’t know for sure what bank it is. Basically something has broken in the plumbing system or the background, whatever you want to call it. And the result is banks don’t trust each other. There’s demand from a bank or a group of banks that need capital overnight. The reason banks need capital overnight is because they carry positions, if you want to call it the carry trade. They carry positions overnight. They have to finance it. And what’s happened is from bank to bank, there’s a lack of confidence and banks are balking at lending to each other and there you have the rate going higher.

Mike Gleason: On top of the hundreds of billions being pumped into the repo markets, the Fed just announced another 60 billion per month in treasury notes. They haven’t come up with a clever name for this quote new program yet, but we definitely aren’t supposed to call it QE.

Bill Holter: Right, it’s not QE.

Mike Gleason: We’re told this is also just a routine preventative measure, nothing to see here. Well they can say what they want, but one thing should be clear our markets are hopelessly addicted to Fed stimulus. We’ve definitely learned that over the last several years. Quantitative tightening has failed and the Fed isn’t going to be able to normalize interest rates. The question is how goofy things will get now. They printed a few trillion dollars last time and didn’t get all that much economic growth. What will it be this time, do you think? $10 trillion in bond purchases? Will they finally resort to dropping money from helicopters as Ben Bernanke once suggested? What do you think?

Bill Holter: I have no idea what the number is going to be, but what this basically means is the real economy is not generating enough cashflow to support the financial economy and the Fed by doing QE, by shoving liquidity into the system is trying to make up for the gap that is not being created by the real economy. It shows you, I think the best way to look at it is the financial system is a patient on life support and the central banks, the Fed, the ECB, Bank of Japan, they’re all acting as life support for the financial markets, which without the central banks, the financial markets would basically just, the tents would fold up.

Mike Gleason: Has it surprised you how little response there’s been in the markets in terms of investors showing signs of worry? It’s really quite amazing to us that we haven’t seen this become a bigger story. Did you see it the same way?

Bill Holter: Yeah, I agree wholeheartedly. It’s amazing. I mean the very first day I heard that they had to do overnight repos. It raised eyebrows and then it was day after day and now it’s we’re weeks into it. It tells me something is broken and it’s shocking that nobody cares.

Mike Gleason: Thus far metals markets haven’t responded to the Feds new measures either and the prospects for even more rate cuts. We’re well below the highest put in over the summer. In fact, most of the markets that seem to have met the news of extraordinary measures with a collective shrug, as we just talked about. Stocks have moved a bit higher, 10 year bond yields are actually moving higher as well. The dollar hasn’t done much. What do you make of the market’s response? Talk about metals specifically, you would think that they would maybe be getting a little bit more of a safe haven bid. You almost have to wonder at this point what it will take to rattle investors. Are these markets so tightly controlled now that fundamentals have stopped mattering all together?

Bill Holter: I think that’s right. I think fundamentals they matter less today than at any point in the past. Yes, we should have seen a movement higher in the metals, but rallies have been met with paper. If you look at the big up days, the open interest explodes on up days and that’s not so much from the buy side. That’s the short side meeting the demand with paper as opposed to meeting it with metal.

Mike Gleason: Obviously, the metals investors have been frustrated for a long time. You see this, so you think you’re going to get some kind of a market reaction. You certainly think gold and silver should be getting more of a pop. What does that say to you in terms of the fundamentals? Obviously fundamentals may not have the impact that they once had. Eventually, will they? I mean how does the story end and how does somebody who sees all of these black swans and has so much concern about what’s going on in the financial system and their angling and positioning themselves for all of that risk, how do they benefit in the long run or do they?

Bill Holter: Well, you asked how it ends it. I’m convinced that it ends in a failure to deliver, whether it be out of COMAX or LBMA or wherever. There’s going to be a failure to deliver because there’s more demand than there is global production and the demand for years and years has been met from already mined and hoarded gold that’s leaked into the market as a salve if you will for the price. It seems to me… we’re here in North America, the little guy is burned out. The little guy for really the last year or so in North America has been a seller. There’s not been big demand and that tells me that the average retail person has just thrown up their hands and is surrendering and liquidating… everyone else is making money in the market, so I might as well put my money in the market, which is a huge mistake.

Because once the unwind really begins, it’ll be like a light switch. At some point in time I’m convinced that you’re not going to be able to source gold or silver for fiat. Now you’ll be able to trade gold for silver or silver for gold or gold and silver for something real, but I think metal is going to go into hiding and you’re not going to be able to buy it anywhere near current levels and there will be a point in time I think that you won’t be able to buy metals or source metals at all for fiat until the smoke clears.

Mike Gleason: Yeah. That’s one thing we’ve always said in the metals markets. I mean when you really look at the overall participation among the buying public throughout the world, it is such a small percentage and if we just go from say 1% ownership, whatever it is, it’s a very small fraction.

Bill Holter: I think that’s high to begin with. I think 1% is high, I think it’s under 1%.

Mike Gleason: Yeah. If we just see like a doubling of that or a tripling even in a black swan type of scenario, there’s just not that much metal out there, Bill.

Bill Holter: Right. It’s a supply and demand equation and you know, often people say, “Oh, well you can’t go to a gold standard because there’s not enough gold.” Well, that’s true at current prices, but you markup gold to $10,000, $25,000, pick a number at some number there’s enough gold and that’s where we’re headed is to wherever that clearing number is.

Mike Gleason: Certainly presidential politics are going to be a big story in the year ahead. We’ve got quite the slate of socialists running for the Democratic nomination. In normal times, you would think that the nomination of someone like Elizabeth Warren would mean limit down in the stock markets the next day, but these are hardly normal times. The only thing we can be pretty sure about is that the battle to defeat Trump is going to shift into even higher gear, if that’s even possible. Talk about some of the implications you see for the markets based on the political theater over the next 12 months?

Bill Holter: Well, obviously the next 12 months is going to be a circus. From the left, it’s nothing but impeachment and I actually watched about 10 minutes of the debate last night. It was the first one I watched and I just turned it off. I mean, you’re talking about blatant socialism, communism, whatever you want to call it, which is an abject failure. If one of the 12 that… well, let’s leave Tulsi Gabbard out of it… but if one of the remaining 11 does become president, it’s pretty much over because you’re looking at income redistribution as opposed to capital formation. We’ll go through a phase of total capital destruction as opposed to what capitalism is which is capital formation.

Mike Gleason: Do you see any real possibility that that could happen? Obviously these are fringe candidates for the most part. Usually when you get to the general election, they’ll come back to center and try to get those moderate voters to swing their way. But is it really just going to come down to the economy? People will vote with their wallets. If the economy is going to remain in a kind of similar spot that it’s in now, 12 months from now, then Trump’s probably fine, but if we go off the proverbial cliff, then he’s in trouble. Is that kind of how you’re viewing it?

Bill Holter: When President Trump back in 2017 started taking ownership of the stock market, I wrote and had done interviews saying that that was very, very dangerous. He should not take ownership of the stock market simply because within the four years I didn’t see even a possibility that it could be held together. So here we are, not quite three years, we’ve got another year to go. Yeah, I do see that as a danger. I’m also on record as saying that none of the current candidates from the left will be the eventual nominee. I think someone else is going to come in. If I had to guess, it might be Michelle Obama. That’s just a wild dart right there, but I don’t think that any of the current candidates will be the nominee.

Mike Gleason: Yeah, interesting theory. I’ve seen that elsewhere. Michael Bloomberg I know is as a name that some people have thrown around too. But yeah, it’ll be a very interesting theater for sure.

Well, Bill, before we go, I want to ask you to comment on any of the other stories you think investors need to be watching here and then also comment if you would, on whether any of the recent market reaction to everything we’ve just been talking about here today, perhaps has made you rethink your belief about the importance of owning precious metals or has it given you more conviction about that? Give us your thoughts about any or all of that as we wrap up today, if you would.

Bill Holter: Market action, well, you’re always rethinking. I mean you come to a conclusion and then you try to break your conclusion. You come at it from a hundred different angles and I’ve done that over years and years and mathematically, pure logic says that if they’re printing paper for free, it doesn’t have any value. And if they’re digging gold and silver up out of the ground and it takes capital, labor and equipment to do that, it has value. My premise for years now has been this is a credit problem. It’s a credit bubble that has been created over, well literally over my lifetime since 1960 say. The world runs on credit and I actually started writing a short article, What if Everyone’s Credit is Ruined. And that’s what I think is going to happen.

I think you’re going to see a credit event where credit basically ceases because you have distrust from counterparty to counterparty and you get a disruption in credit and then our everyday life is disrupted. I’ve said this probably, gosh, I don’t know, 50 or a hundred times in interviews and articles that if there’s an interruption in credit, you’re going to go to Walmart and find that if it is open, there’s nothing on the shelves because there’s not little elves in the back room that make loaves of bread or shoes or whatever. For a loaf of bread, there’s like seven or eight uses of credit from the wheat field to the shelf. And if any of those instances of credit get shut off, the loaf of bread doesn’t make it to the store. So, I think that’s the most significant thing that people just don’t think about it because your everyday life, “Oh, well I need this, or I need that. I’ll go down to my store or go online and order it, whatever.” But shipping, trucking, distribution, all of that, will stop with a credit implosion and that’s where mathematically we’re headed.

Mike Gleason: Yeah. And at the end of the day, if you look at precious metals, it is like a form of insurance more so than it is an investment per se.

Bill Holter: Well, they’re not credit, gold and silver are no one’s liability. They’re not a promise. Everything else is a promise. Gold and silver are merely proof that capital, labor and equipment have already been expended, so they’re pure assets. They’re pure money.

Mike Gleason: Yeah, that’s a great way of summarizing that, very, very well stated. Well Bill thanks so much for your time, enjoyed visiting with you and I certainly hope we can do it again before much longer, great insights as usual from you and we appreciate the time. Thanks for coming on and all the best to you.

Bill Holter: Appreciate it. Thanks Mike.

Mike Gleason: Well, that will do it for this week. Thanks again to Bill Holter. The site is JSmineset.com, be sure to check out all the great commentary that Bill and Jim put out there on a regular basis. Again, JSmineset.com.

All eyes on Britain’s ‘Super Saturday’ Brexit showdown

After three and a half years of chronic uncertainty, drama and constant toeing and froing, the Brexit saga is reaching a critical turning point.

In a positive development, Boris Johnson has agreed on a Brexit deal with the European Union. However, it is far too early for any celebrations given how the deal will need to be approved by the House of Commons on Saturday. While the revised agreement has many similarities with the one agreed by Theresa May, the major difference lies in the proposal on Northern Island. The new Brexit deal simply replaces the Irish backstop plan with a new arrangement where the North will continue to follow EU regulations on goods after Brexit.

With Northern Ireland’s DUP already refusing to support Boris Johnson’s deal, investors should brace for another showdown in Westminster on Saturday. Although EU leaders have left the doors open for a Brexit extension beyond October 31st if Johnson’s plan is rejected by the commons, this is simply kicking the can further down the road.

If Boris Johnson’s deal is given the thumbs up by the House of Parliament this weekend, it will be a major relief for the British pound as fears of a no-deal Brexit completely fade. This welcome development should push the GBPUSD well above 1.30 towards 1.318. Alternatively, if Johnson’s deal fails to pass through parliament, the Pound is seen sinking back towards 1.27 as uncertainty makes an unwelcome return.



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Will the Brexit saga come to end on Saturday? Or will this be the start of another drama-filled season? This is the question on the mind of many investors.

Whatever the outcome of ‘Super Saturday’s’ Brexit showdown, it will certainly have a profound impact on Sterling.

Gold waits for fresh catalyst

Gold is finding comfort within a $20 trading range as investors remain cautiously optimistic over the United States and China finalizing a “phase one” trade agreement.

Given how high-level trade talks between both sides will resume next week, Gold is positioned to remain range-bound until a fresh directional catalyst is brought into the picture. A sense of optimism surrounding the current Brexit developments is also impacting appetite for the safe-haven metal with prices trading around $1491 as of writing. Although a softer Dollar could provide Gold bulls with some support, the real action may not be seen until next week following the outcome of ‘Super Saturdays’ showdown and trade talks.

Focusing on the technical picture, Gold remains range-bound with support around $1480 and resistance at $1500. A breakout above $1500 should encourage a move higher towards $1515. Should prices secure a weekly close below $1480, Gold is likely to sink towards $1465.

Commodity spotlight – WTI Oil 

Oil prices are pushing higher despite China’s economic growth slowing to 6% during the third quarter of 2019.

 

Given how China is the world’s largest energy consumer, signs of slowing economic growth from the nation could ignite fears of a drop in demand for crude oil. Regardless of recent gains, Oil markets remain heavily influenced by demand side factors revolving around trade uncertainty and global growth fears. If the United States and China officially sign a “phase one” trade agreement, Oil prices have scope to push higher as trade tensions ease.

 

Focusing on the technical picture, WTI Oil is trading above $54 on the daily charts. A weekly close above this level should encourage an incline towards $55.

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