A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
CBC News has acquired a copy of a 131 page document used by the RCMP to receive search warrants for a prominent real estate development firm. The warrant was executed but no charges have been laid,
“SkyCity is one of four Fortress Real Development projects named in the RCMP search warrant application. Collier Centre in Barrie, Ont., Harmony Village Sheppard in Toronto and Crates Landing in Keswick, Ont. are also named.
"These projects contained representations made to investors involving inflated current "as is" property values," alleged Const. Martin Williamson of the RCMP's Integrated Market Enforcement Team. "Property valuations for Fortress Real Capital syndicated mortgages were misrepresented to investors," Williamson alleged.”
“Allegations of inflated property values at centre of RCMP syndicated mortgage fraud investigation” – CBC
***
President Trump is apparently planning to tax everything the U.S. imports from China,
“The president told CNBC that he is ready to place a tariff on every single Chinese good entering the U.S. in the latest salvo in what could quickly turn into an unprecedented trade war. Trump told CNBC, “I’m ready to go to 500,” referring to the $505.5 billion in goods the U.S. imports from China each year. Currently, Trump has slapped tariffs on $34 billion in Chinese goods, which China has retaliated on.”
If it needs to be said, this would be a disaster not only for the global economy, but also political stability.
“Trump is threatening to put a tariff on every Chinese good” – Fast Company
“@CNBCnow WATCH: Trump says he's 'ready' to put tariffs on all $505 billion of Chinese goods imported to the US “ – CNBC (Twitter)
“A fight between China’s central bank and finance ministry has spilled into the open. The central bank has a point: fiscal policy is looking tight. But the spat reveals cracks in the government’s campaign to control debt. “ – The Economist
***
John Authers from the Financial Times is among the world’s most respected financial columnists and his newsletter is terrific,
“Much of the commodity complex, then, is registering outright alarm. This is clearest if we look at copper, for which China has long been the marginal buyer. The ratio of the copper and gold prices has just collapsed. That implies fresh concerns about global growth, particularly China. It is concerning because gold itself has been performing poorly. Falling precious metals prices imply confidence in central banks to keep inflation under control, which is encouraging, but also imply lack of confidence in the economy to grow strongly enough to generate inflationary pressure.”
“Commodities catch a cold” – Authers, Financial Times
“@SBarlow_ROB From the Authers newsletter” – (excerpt, chart) Twitter
“TSX investors put on alert as one of the finance industry’s best strategists downgrades mining sector” – Barlow, Inside the Market
Tweet of the Day: “@RobinWigg Technology funds have taken in $20bn this year - smashing last year’s record already - as investors hope they are “invulnerable” to trade wars. ft.com/content/64ca57…” – Twitter
Diversion: “The Next Plague Is Coming. Is America Ready?” – The Atlantic
Scott Barlow