China yanks money out of US

(June 21, 2018 - by The Trader)

Research firm Rhodium Group estimates that in the first five months of this year Chinese acquisitions and investments into America amounted to just $1.8 billion, off 92 per cent since this time last year, CNBC reports.  If one also includes divestments a net $7.8 billion has in fact been withdrawn.  This follows a significant drop in the second half of 2017 from a peak inflow of over $25 billion in the second half of 2016.   

Bloomberg reports that traders at Deutsche Bank’s US unit suffered a one-day Q1 2018 loss that was 12 times bigger than the maximum amount internal risk officers use for regulatory purposes.  According to the bank, this was offset by trading gains at its UK arm; worryingly, the issue wasn’t mentioned in its earnings report.  One has to question how much of a handle the regulators have on what is really going on in the sector.  For comparison, the next biggest trading loss relative to VaR (value-at-risk) was at BNP Paribas at 1.66 times and then HSBC at 1.08.

GOLD

Having met the measured target from the little triangle at $1267, prices have also dipped below long term trend line support at 1270.