Mideast peace plan from Pres. Trump
- Pres. Trump proposes 2 state solution for Israel and Palestinians with Palestinian capital in east Jerusalem
- Israel has agreed to negotiate on the basis of a detailed proposed the map
- Israel agreement on statehood for Palestinians is dependent on security arrangement to protect Israelis
- Israel respect historic role of Al-Aqsa mosque and Jordan’s role with regard to holy sites with the aim of allowing Muslims to visit mosque
- Palestinian state hold is dependent on Palestinians respecting human rights, freedom of the press, and having a transparent and credible judiciary
- Israelis West Bank settlements would be recognized by the United States
- in exchange for Israel’s agreeing to the proposed map, the US will recognize the map
- Israeli would agree to 4 year freeze on settlement activity while Palestinian statehood negotiated
- we bought 4 more years for Palestinians to get their act together and negotiate state
- question for Palestinians. The question is is will they come to the table and negotiate
- if Palestinians agree to negotiate there are some areas that can be compromised in the future
- proposed Palestinian state would be connected with roads, bridges and tunnels with connectivity between Gaza and West Bank
- Trump plan calls for Palestinian refugees to be able to return to a future state of Palestine and creates generous compensation fund.
Israel and Palestinian talks broke down in 2014. US officials are bracing for initial Palestinian skepticism, but hope that over time they will agree to negotiate.
US plan represent the most dramatic and detailed attempt to break the historic deadlock. The Palestinians are skeptical as they say the US administration is biased toward Israel.
World Health Organization on China
The World Health Organization is on the wires saying:
- WHO has agreed with China that they would send international experts to China as soon as possible to boost understanding and guide global response to the coronavirus outbreak
- WHO says a better understanding of the transmissibility and severity of the virus is urgently required to guide other countries on appropriate measures
- It can reconvene its emergency committee on coronavirus on very short notice as needed. Its members are on standby and being informed of developments
What’s wrong with the picture if the World Health Organization has to pander to China during a potential buyers outbreak?
German DAX +0.83%. France’s CAC, +1.08%
The major European indices are ending the day higher as having fears of the coronavirus lead to risk on flows.
- German DAX, +0.83%
- France CAC, +1.08%
- UK’s FTSE 100, +0.95%
- Spain’s Ibex, +1.25%
- Italy’s FTSE MIB, +2.2%
In the European debt market, the benchmark 10 year yields are mostly higher with the exception of the Italian 10 year which fell by a modest -1.0 basis point
In other markets:
- Gold is currently trading down $-12.72 or -0.8% at $1569.50. The low price reached $1567.50
- WTI crude oil futures are up $0.61 or 1.17% at $53.75
US stocks are trading near high levels for the day and up smartly:
- S&P index, +1.05%
- NASDAQ index, +1.34%
- Dow up 0.79%
The FOMC decision is set for tomorrow at 2 PM ET
As the FOMC today meeting gets underway today, with the decision due at 2 PM ET/1900 GMT tomorrow, Pres. Trump is adding his two cents into the discussion.
- The Fed should get smart and lower the rate to make our interest competitive with other countries
- If Fed lowers interest rates, we would then focus on paying off and refinancing the US debt
Of course the Fed only controls the shorter-term interest rates. Longer term interest rates have the shorter-term interest rates as a function, but it is not the end all be all for the shape of the yield curve. In fact, rates could increase further out the curve and increase treasury borrowing obligations.
Be careful. Unconfirmed.
UNCONFIRMED, but this might not be good if true… INTELSky who on their twitter account calls themselves a “MIDDLE EAST AND MEDITERRANEAN AIRSPACE OBSERVER. TRACKING VARIOUS & INTERESTING SPOTS, MIL AIRCRAFT. #OSINT
CONFLICT ZONES” is out tweeting:
According to INTELSky, D’Andrea headed the hunt for Bin Laden. There is no adverse reaction to markets.
OPEC is said to be alarmed by the coronavirus outbreak
Reuters is reporting on the matter, citing three OPEC sources, in saying that the bloc aims to extend the current oil output cuts through to June at least.
Adding that members are also discussing on deepening the cuts if oil prices or demand should fall significantly on the coronavirus outbreak.
There is little doubt that the virus will weigh on oil demand in Q1 at the very least but if it does have a prolonged impact, OPEC may have to live with lower oil prices until the world adjusts to the situation in the long-term.
I mean, if they can’t even properly comply with current quotas – what more if they choose to deepen cuts further. It’d be all talk but no action.
WHO chief, Tedros Adhanom, is in China this week to discuss ways of containing the virus outbreak
The spokesman also said that Tedros has met up with top Chinese officials and discussed measures to protect Chinese and foreigners in areas affected by the coronavirus. They are also said to have discussed possible alternatives to evacuations.
Adding that Tedros did not travel to any place outside of Beijing and that the WHO emergency committee is being ‘kept in the loop’ about the situation.
Tedros is also coming under quite a bit of flak after the WHO previously described the virus risk as being “moderate” over the weekend before admitting to their mistake and correcting the risk to “very high in China and at a regional level, and high at a global level”.
It still doesn’t look like they will declare the virus as a public health emergency it seems.
Says that interbank markets will also observe the extended holiday period
For those unaware, China is observing an extended holiday until 2 February in an attempt to curb the spreading of the coronavirus infection. The central bank also reaffirms that they will offer ample levels of liquidity after the holidays via OMOs.