Bill Holter’s Commentary
But, how can this be? We are told we have the strongest economy ever? Come to think of it…didn’t this type of stuff happen back in 2008?
Moody’s Cuts Ford Credit Rating To ‘Junk’ Status
September 9, 2019
Moody’s Investors Service downgraded Ford Motor Co.’s credit rating to “junk” status Monday, a move that could make it more expensive for the automaker to borrow as it undertakes a sweeping global restructuring amid slowing global sales and a rapidly changing industry.
The ratings agency believes the automaker’s years-long restructuring under CEO Jim Hackett will be too costly to generate much return for shareholders. Monday’s downgrade to Ba1 — the highest non-investment grade rating — comes as Ford and Hackett have said repeatedly over the last year that 2019 would deliver the results promised, including improved profit margins around the world.
Last August, Moody’s had downgraded Ford to its lowest investment grade, Baa3. In May, Moody’s upgraded Fiat Chrysler Automobiles NV to the same Ba1 status, an improvement for the automaker driven by strong SUV and truck sales in North America. And the agency last November labeled General Motors Co.’s U.S. restructuring “credit positive.”
J. Johnson’s Latest – Silver’s Resolutes Are Staying In Place!
September 10, 2019
Great and Wonderful Tuesday Morning Folks,
The pressure is on during the overnight with Gold seeing the most of the price beatings with the trade at $1,500.40, down $10.70 after being pushed down to $1,494.30 with the high to beat at $1,508. Silver is following with the trade at $18.015, down 15.2 cents after being knocked down to $17.855 with the high to beat at $18.135. The US Dollar is hardly worth talking about because it refuses to move with the trade at 98.425, up 17.7 points and close to its high at 98.44 with the low at 98.235. All of this was done sometime before 5 am pst, the Comex open, the London close, and as if parliament being shut down for a months’ time ain’t nothin’ but negative to precious metals.
We still show corrections in the price throughout our emerging markets watch with Venezuela’s Bolivar now pricing Gold at 14,985.25 showing a drop in value of 196.75 Bolivar with Silver trading at 179.92 showing a loss of 3.001 Bolivar. In Argentina, the Peso is pricing Gold at 84,029.21 showing a loss of 742.86 with Silver losing 12.18 with its price now at 1,009.01 A-Pesos. In the land of Turkey, Gold is now trading at 8,662.80 Lira showing a 44.76 Lira correction with Silver now at 104.01 losing 0.905 Lira.
September Silver’s Delivery Demands increased during yesterday’s trades with the fully paid for demands for Silver now at 918 showing an additional 33 contracts were added during yesterday’s push lower. So far this morning we show a Volume of 24 with a trading range between $17.885 and $17.77 with the last 2 buys at the high, yet still showing a negative of 13.5 cents from yesterdays close. The previous day’s activities within the delivery month are worth reviewing as the Volume recorded during yesterday’s trade showed 515 contracts traded out, or in. This is a very large Volume for such a small purchase, wouldn’t you say? We now have to keep an eye on Harvey’s stats to see how many of these buys were sent to the land without parliament or were actually delivered here.
Bill Holter’s Commentary
Has Jamie Dimon been listening to Jim on our weekend calls? Jim has been saying this for over two years now, but as usual was early…
Jamie Dimon On The End Of Trading: “The Battle Is More In The Tech World Than In Having Brilliant Traders”
September 10, 2019
The world of trading, as generations of traders knew it, is over, and it took a timestamp from Jamie Dimon to make it official: “The battle is more in the tech world at this point than in having brilliant traders.”
And so, in a world in which being a better trader – i.e. outsmarting everyone else – no longer matters as the market is now hopelessly broken by central banks, and instead just speed and the ability to frontrun orderflow is relevant, it is no surprise that JPMorgan was reserved in its Q3 revenue outlook, which while set to rise 10% in Q3 – only due to a base effect – will continue the recent trend of disappointing trading revenue
“We’re not jumping for joy,” JPM CEO Jamie Dimon said Tuesday during an investor conference in New York, quoted by Bloomberg. The 10% gain is only possible because Q3 2018 was very weak; on a sequential basis, the Q3 2019 revenue will be a decline of about 10% versus the already disappointing second quarter, Dimon said.