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Discussion: Germany’s Trust of US as Custodian Is Under Review
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Analysis:
Germany’s Trust of US as Custodian Is Under Review
Germany maintains the second-largest national gold reserve globally—behind only the United States. Approximately 1,236 metric tons, or 37 percent of that reserve, are reportedly stored in the vaults of the Federal Reserve Bank of New York. The original rationale, developed during the Cold War and later reinforced during the euro’s formative years, was that such an arrangement allowed Germany rapid access to dollar-denominated liquidity in the event of crisis. That assumption is no longer immune to scrutiny.
Full Story: Gold: Germany’s Trust of US as Custodian Is Under Review
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Markets Recap:
they are volatile
Market News:
“Elon Musk struck what could be considered the biggest deal of the year, and he broke all the normal rules. WSJ
“Klarna’s announcement that it will bring “buy now, pay later” loans to food delivery app DoorDash two weeks ago was intended to showcase the Swedish fintech’s US growth before its long-awaited initial public offering. FT
“Investors are pouring cash into gold funds at the fastest pace since the pandemic, amid mounting concerns over the economic impact of US President Donald Trump’s tariff war... Gold reached a record $3,148.88 a troy ounce on Tuesday, as part of a broader flight to haven assets such as US Treasuries and cash. It later fell back to $3,114, up more than 17 per cent this year — including its strongest quarterly performance since 1986.” Source: FT
“GM and other automakers are reporting notable increases in their first-quarter U.S. vehicle sales, as the automotive industry braces for the impacts of President Donald Trump’s auto tariffs. CNBC
“Circle, the company behind the USDC stablecoin, has filed for an initial public offering with the SEC. CNBC
Geopolitics/ Politics:
Tariff Day
Bloomberg reports that Trump’s deliberations over his plans to impose reciprocal tariffs are coming down to the wire, with his team said to be still finalizing the size and scope of the new levies he is slated to unveil on Wednesday afternoon. As a reminder, Peter Navarro said that Trump wants to raise $700 billion annually in tariff revenue.
In meetings on Tuesday, Trump’s team continued to hash out their options ahead of a Rose Garden event scheduled to begin as US markets close at 4 p.m. on Wednesday.
The White House has not reached a firm decision on their tariff plan, even though Trump himself said earlier in the week that he had “settled” on an approach.
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Data on Deck:
MONDAY, MARCH 31 PMI prep
TUESDAY, APRIL 1 PMI
WEDNESDAY, APRIL 2 Factory orders
THURSDAY, APRIL 3 Services PMI
FRIDAY, APRIL 4 U.S. employment report March140,000, 4.1% Powell speaks1
Summary and Final Market Check
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TARIFF DAY IS (FINALLY) HERE!
