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In this episode of StockCharts TV‘s The Final Bar, Dave wraps the week, reflecting on both stocks and bonds moving lower as the latest inflation data provides mixed evidence. He opens The Final Bar Mailbag to answer questions on Fibonacci Retracements, moving average support, and how institutions trade large positions.

This video originally premiered on August 10, 2023. Watch on our dedicated Final Bar page on StockCharts TV, or click this link to watch on YouTube.

New episodes of The Final Bar premiere every weekday afternoon. You can view all previously recorded episodes at this link.

In this episode of StockCharts TV‘s The MEM Edge, Mary Ellen reviews the downtrend taking place in the Nasdaq, as well as sharing what’s driving weakness. She also highlights why the Dow is remaining positive as well as key Value stocks poised to trade higher.

This video originally premiered August 11, 2023. Click on the above image to watch on our dedicated MEM Edge page on StockCharts TV, or click this link to watch on YouTube.

New episodes of The MEM Edge premiere weekly on Fridays. You can view all previously recorded episodes at this link. You can also receive a 4-week free trial of her MEM Edge Report by clicking the image below.

Every week that goes by seems to show how the mega-cap stocks that pushed the market higher in the first seven months of the year have now taken a back seat. Sectors like Financials and Energy have seen improved relative strength, while previous bellwether groups like semiconductors have begun to underperform.

When I noted bearish momentum divergences on key growth names last month, I began to think through a scenario called “The Great Rotation of 2023”. The general line of thinking was that, if and when growth stocks decided to take a breather, those assets would rotate elsewhere. Would it be to cyclical sectors like Energy, or more defensive sectors like Utilities?

As the Nasdaq 100 closed below its 50-day moving average this week, following similar breaks of support from stocks like Microsoft (MSFT) and Apple (AAPL), it seems that market has answered in a clear voice that it’s sectors like Energy which are now taking a new leadership role in August 2023.

Let’s review the technical setup that led to this great rotation, how to visualize the leadership roles shifting between sectors, and identify some ETFs that may have further opportunities to outperform in the coming weeks and months.

The Benchmarks Break Down

Stocks like Microsoft and Apple made consistently higher highs pretty much every month in 2023. But after making new highs in mid-July, both stocks have now pushed lower and now have violated the 50-day moving average.

AAPL has demonstrated perhaps the clearest evidence of a stock in a distribution phase, with a gap below the 50-day moving average followed immediately by further downside movement. This suggests that no willing buyers came in to buy on price weakness, but instead that more selling pressure is in play.

The Nasdaq 100 is now about 6% off its July high, while leading names like AAPL and MSFT are down 11% and 13%, respectively. I was taught that “all large losses begin as small losses,” and, given the initial downthrust in these leading names, I’m inclined to stay out of the way until some sort of support level is established.

With the top-heavy nature of our equity indexes, with even the S&P 500 weighted heavily to these mega-cap growth stocks, the S&P is also under pressure.

The SPX did manage to hold its 50-day moving average this week, but it’s worth noting that only 55% of S&P 500 members are above their own 50-day moving average. That’s down from about 90% just three weeks ago! To rephrase, about a third of the S&P 500 members have broken their 50-day moving average in the last couple weeks.

Visualizing the Rotation from Growth to Value

The weekly RRG chart provides an ideal way to visualize sector rotation, so a review of the RRG seemed to be a logical next step for me to quantify a potential rotation from growth to value.

Back in March, the RRG was very much in a growth-over-value position. Growth sectors like Technology and Communication Services were firmly in the Leading Quadrant, while value-oriented sectors like Financials and Energy were pushing into the Lagging Quadrant.

Growth sectors dominated the first six months of 2023, and even into June you could still see the strong outperformance of the FAANG sectors. But all of a sudden, forgotten sectors like Financials and Energy started to improve. Relative strength readings began to stabilize as most sectors saw improving price action.

Now in August, the drop in growth stocks has created a very different appearance to the RRG chart.

Note how the XLC and XLK are now in the Weakening Quadrant, showing a decline in relative strength momentum after the recent pullback. The Improving Quadrant includes sectors like Industrials, Financials, Energy, and Materials, all of which have seen a definitive improvement in relative strength.

The Great Rotation of 2023 appears to be less about a rotation from offense to defense, and more about a rotation from growth sectors to cyclical sectors like Energy. So which ETFs have improved to the point where they deserve a second look for investors?

Two ETFs Making New Relative Highs

I often scan for stocks and ETFs making new swing highs for my Market Misbehavior Premium Members. The S&P SPDR Oil & Gas Exploration and Production ETF (XOP) surfaced recently as an example of a previously underperforming industry group that has rotated higher.

The second panel down shows the relative strength of the XOP as well as the Oil Services ETF (OIH) relative to the S&P 500. Note the downtrend in relative strength through the end of April, then the sideways relative performance in June and early July, and then a period of outperformance from mid-July through mid-August.

Now check out the bottom panel to see how two technology ETFs–IYW and SMH–have performed during this same period. Just as the RRG showed a clear rotation away from growth and into value, this chart shows the Great Rotation from sectors like Technology to new leadership including Energy.

We can speculate about when and how this Great Rotation will end, and when growth sectors will once again step into a leadership role. I’d much rather wait patiently for the charts to indicate that conditions have changed once again. For now, the charts are telling me to focus on emerging leadership in cyclical sectors until proven otherwise!

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

Chief Market Strategist

StockCharts.com

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

SAN FRANCISCO — California regulators on Thursday approved an expansion that will allow two rival robotaxi services to operate throughout San Francisco at all hours, despite safety worries spurred by recurring problems with unexpected stops and other erratic behavior that resulted in unmanned vehicles blocking traffic, including emergency vehicles.

The state’s Public Utilities Commission voted to approve rival services from Cruise and Waymo to operate around-the-clock service. It will make San Francisco first major U.S. city with two fleets of driverless vehicles competing for passengers against ride-hailing and taxi services dependent on humans to operate the cars.

It is a distinction that San Francisco officials didn’t want, largely because of the headaches that Cruise and Waymo have been causing in the city while testing their robotaxis on a restricted basis during the past year.

But it ended in a major victory for Cruise — a subsidiary of General Motors — and Waymo — a spinoff from a secret project at Google — after spending years and billions of dollars honing a technology that they believe will revolutionize transportation. Both companies view approval of their San Francisco expansions as a major springboard to launching similar services in other congested cities that would benefit from a technology that they contend will be more reliable, convenient and cheaper than ride-hailing and taxi services reliant on human drivers.

“We can’t wait for more San Franciscans to experience the mobility, safety, sustainability and accessibility benefits of full autonomy for themselves — all at the touch of a button,” Waymo co-CEO Tekedra Mawakana said in a blog post.

In an illustration of the backlash against the robotaxis, the Public Utilities Commission meeting drew an audience that packed the auditorium where the meeting is unfolding. Meanwhile, people stood in a long line outside in hopes of getting inside before the vote.

During five-and-half hours of public comments at Thursday’s meeting, many speakers derided the robotaxis as annoying nuisances at best and dangerous menaces at worst. Others vented their frustration about San Francisco being transformed into a “tech playground” and the equivalent of an “ant farm” for haphazard experimentation.

Supporters of the robotaxis also stepped up to passionately defend the technology as a leap forward that will keep San Francisco on the cutting edge of technology, while helping more disabled people who are unable to drive to get around town and reducing the risks posed by drunk driving. One speaker predicted that unleashing the robotaxis would create a tourist attraction that could become as popular as rides on the fabled cable cars that have been navigating the city’s streets for 150 years.

The rising fears about the safety of the robotaxis had come into sharper focus during a preliminary hearing Monday that included a sobering appearance by San Francisco Fire Department Chief Jeanine Nicholson, who warned regulators that the robotaxis had been repeatedly undermining firefighters’ ability to respond to emergencies. .

“They are still not ready for prime time because of the way they have impacted our operations,” Nicholson said during a four-hour hearing held Monday in advance of Thursday’s pivotal vote.

To underscore her point, Nicholson cited 55 written reports of the robotaxis interfering with emergency responses. She said she is worried the problems will get worse if Cruise and Waymo are allowed to operate their services wherever and whenever they want in San Francisco — raising the risk of their disruptions resulting in injury, death or the loss of property that could have been saved.

The Public Utilities Commission still decided to approve the expansion by a 3-1 vote. Although the panel consists of five commissioners, only four voted on the proposed robotaxi expansion. Commissioner Karen Douglas was absent from Thursday’s hearing for an undisclosed reason.

Both Cruise and Waymo cited their unblemished safety records as proof their robotaxis are less dangerous than vehicles operated by people who can be distracted, intoxicated or just lousy drivers.

Cruise has been currently testing 300 robotaxis during the day when it can only give rides for free, and 100 robotaxis at night when it has been allowed to charge for rides in less congested parts of San Francisco for the past 14 months. Waymo has been operating about 100 of the 250 robotaxis it has available to give free rides to volunteers and employees throughout San Francisco.

But the proposed San Francisco expansion has been facing increasingly staunch resistance, prompting regulators to postpone two previously scheduled votes on the issue in June and July.

In a May 31 letter urging state regulators to continue to restrict the operations of Cruise and Waymo, San Francisco transportation officials asserted the driverless vehicles rely on a “developmental technology that is not ready for unconstrainted commercial deployment.”

In a June 22 letter, the president of the union for San Francisco police officers warned of potentially dire consequences if Cruise and Waymo are allowed to expand throughout the city. Tracy McCray, the union president, cited a robotaxi obstructing emergency vehicles responding to a recent mass shooting that injured nine people as a chilling example of how the technology could imperil the public.

“While we all applaud advancements in technology, we must not be in such a rush that we forget the human element and the effects such technology unchecked can cause in dangerous situations,” McCray wrote. “Delays of even seconds in our line of work can be a matter of life or death.”

This post appeared first on NBC NEWS

A Mississippi Democrat candidate for governor took $10,000 from a Chinese national tied to the Chinese Communist Party (CCP) and first son Hunter Biden, according to campaign finance filings.

Mississippi Public Service Commissioner Brandon Presley, who is running for governor as a Democrat, has tried to position himself as a moderate candidate.

However, even as he tries to portray himself as a moderate, Presley has taken money from prominent progressive Democrats as well as some questionable donors.

On June 26, 2023, Presley took $10,000 from Wanxiang America President Pin Ni, according to campaign finance filings.

Then-Vice President Joe Biden hosted a White House meeting with Ni and Wanxiang Resources Co. President Youhong Han on July 25, 2014, according to White House visitor logs first reported last year by the Daily Mail.

According to the CCP-run China Daily, Biden had ‘invited’ the Wanxiang executives to visit several cities in the U.S. at the time, including Washington, Detroit and Dover, Delaware.

The parent company, Wanxiang Group, posthumously awarded the company’s founder, Lu Guanqiu, the title of ‘National Outstanding Communist Party Member’ in a 2021 press release and praised Guanqiu in the release as regarding ‘the pursuit of communism as a lifelong ideal and practice.’

It also said he ‘insisted that the development of an enterprise is inseparable from the correct leadership of the party.’ The founder’s bio on the Wanxiang website says he was elected as the 13th and 14th Representatives of the Communist Part of China, and a delegate to the 9th, 10th, and 11th Chinese National People’s Congress. 

Pin has direct ties to the president’s son after emailing him less than a week after meeting with his father.

Less than a week after the Wanxiang executives met with Hunter’s father at the White House in July 2014, Pin Ni sent Hunter an email about his Fisker car, according to a review of emails from Hunter’s abandoned laptop that have been verified by Fox News Digital.

‘My name is Pin Ni and I am the president of Wanxiang America which bought Fisker assets a few months ago. Last Friday when we visited DC, I heard that your Fisker is out of order and could not get serviced. Sorry,’ Pin wrote. ‘Yesterday the bankruptcy judge had approved Old Fisker’s plan of liquidation in which we will be offering warrantee service to all Fisker owners, it would be our honor to get your Fisker fixed.’

Hunter then informed Pin that he ended up selling the car back to the dealer ‘at a big loss,’ to which Pin responded that he would ‘make sure your next Fisker will exceed the expectation,’ including a smiling emoticon.

Hunter’s car purchase has been a point of heavy scrutiny during federal prosecutors’ ongoing investigation into alleged tax fraud by the first son.

The filings also revealed that Presley on July 29 took $2,500 from Elizabeth Naftali — a Biden appointee who recently made headlines after it was revealed she was a buyer of Hunter Biden’s artwork — as well as $50,000 from California attorney Steve Phillips on June 23.

Phillips’ donation was the largest donation to Presley in June.

Naftali donated over $200,000 to Biden’s 2020 presidential campaign. In July 2022, Biden appointed his donor to the Commission for the Preservation of America’s Heritage Abroad.

Ethics experts have decried Naftali’s art purchase as an apparent conflict of interest.

In an October 2022 opinion piece, Phillips claimed that America ‘is built on a racist social contract’ and called for Americans ‘to tear it up and start anew.’

Presley also received $25,000 from Quinn Delaney on June 30. Delaney founded the Akonadi Foundation and is a Democrat mega-donor who backed disgraced former San Francisco District Attorney Chesa Boudin.

The Akonadi Foundation in California pushes far-left policies like ‘racial justice’ and invests in and supports ‘community power to redesign systems to be just and equitable for all,’ according to the organization’s ‘Mission and Vision’ page’s ‘Values’ section.

Additionally, Presley took $500 from failed Democrat gubernatorial candidate Stacey Abrams on June 27 and $15,000 from New York billionaire and Democrat mega-donor Philip Munger on June 30.

Presley’s campaign did not respond to Fox News Digital’s questions on the donations.

The donations revelations come as Presley faces the music for other campaign contributions that don’t appear to pass the smell test.

Presley came under scrutiny this week after it was revealed he received campaign donations from green energy entities he oversees.

One former Mississippi Public Service commissioner who spoke to Fox News Digital said it ‘blows my mind’ that Presley accepted such contributions. 

State law prohibits a public service commissioner from ‘knowingly accept[ing] any gift, pass, money, campaign contribution or any emolument or other pecuniary benefit whatsoever, either directly or indirectly, from any person interested as owner, agent or representative, or from any person acting in any respect for such owner, agent or representative of any common or contract carrier by motor vehicle, telephone company, gas or electric utility company, or any other public utility that shall come under the jurisdiction or supervision of the Public Service Commission.’ 

The Democrat governor candidate appears to have accepted campaign contributions from several green energy companies that he regulates as a public service commissioner.

The Mississippi Public Service Commission has a broad definition of ‘utility’ in the commission’s rules, meaning ‘any person subject to the regulatory jurisdiction of the Commission.’

According to campaign finance records reviewed by Fox News Digital, several board members and key operators of Tennessee-based solar power company Silicon Ranch donated thousands of dollars to Presley in 2018 and 2021.

While Silicon Ranch is a Tennessee company, the Mississippi Public Service Commission found in 2017 that it had jurisdiction over the company when it was building a solar farm in Lauderdale County, Mississippi, though the commission noted that it wasn’t technically a public utility.

Fox News Digital also obtained screenshots of an internal poll conducted by the Democrat polling firm Impact Research – of which Presley is a client – that tested the waters for negative messaging against Presley.

‘While serving on the Public Service Commission, Brandon Presley has received more than $50,000 in campaign contributions from groups he regulates,’ the question reads. ‘He’s also taken over $35,000 from trial lawyer Dickie Scruggs who spent six years in prison for trying to bribe multiple judges.’

‘Please indicate whether this statement raises very serious concerns, serious concerns, minor concerns, or no real concerns for you about Brandon Presley,’ it continues before listing the poll options.

Presley’s communications director Michael Breyer told Fox News Digital, ‘This is a lie and a desperate attempt from Tate Reeves to distract from the fact that he is the most corrupt governor in Mississippi history.’

‘On Tate Reeves’ watch, $77 million was stolen and diverted from working families to Tate Reeves’ celebrity athlete friends and personal trainer,’ Breyer claimed.

‘Brandon is the only candidate in this race with a plan to declare war on corruption on day one, while Tate Reeves’ campaign continues to be funded by central figures in the largest public corruption scandal in state history,’ he continued.

The Mississippi Free Press found that there was no evidence Reeves had a role in the misspending of state welfare funds.

Fox News Digital’s Jessica Chasmar and Cameron Cawthorne contributed reporting.

This post appeared first on FOX NEWS

The Biden administration is requesting Congress spend six times more on supporting Ukraine in its war against Russia than on the border and fentanyl crisis plaguing the nation, according to a new emergency spending request submitted Thursday.

In the request sent to House Speaker Kevin McCarthy, Biden specifically called for $24 billion in aide to Ukraine, split between $13 billion for defense related spending, and $11 billion in economic and humanitarian assistance.

But Biden only requested $4 billion in spending on the border and immigration, as well as combating fentanyl flowing into the United States from foreign origins. The total combined amount of the request reached roughly $40 billion.

Fox News Digital reached out to the White House and the Department of Homeland Security for comment.

The additional spending request comes after Congress approved $48 billion in funding for Ukraine in December, prior to Republicans taking control of the House of Representatives.

Approval of the funding is expected to be an uphill battle in the House, where McCarthy has promised he would not bring a supplemental Ukraine funding bill to the floor. Many conservatives have been vocally opposed to giving Ukraine more money without more accountability.

Last month, 70 House Republicans voted for an amendment in the annual defense bill that would cut off all funding to Ukraine. It ultimately failed.

The request also comes as mass illegal crossings have continued to surge on Texas’ border with Mexico, with all sectors either at overcapacity or about to hit the maximum number of immigrants they can hold.

A U.S. Customs and Border Protection source told Fox News on Thursday that there are currently 19,400 migrants in Border Patrol custody, nationwide.

Fox News Elizabeth Elkind, Bill Melugin and Greg Wehner contributed to this report.

This post appeared first on FOX NEWS

Hunter Biden’s longtime business partner who is likely to know more about the Biden family’s business dealings than Devon Archer was instrumental in the first son expanding his enterprise in China.

Following Devon Archer’s bombshell congressional interview last week alleging President Biden’s involvement with his son’s business dealings, a new light is being cast on Eric Schwerin, who was a founding partner and managing director of Hunter’s now-dissolved firm Rosemont Seneca Partners.

Schwerin was at Rosemont Seneca when he was appointed by then-President Obama to the Commission for the Preservation of America’s Heritage Abroad, an independent U.S. government agency, in early 2015.

‘Eric asked for one of these the day after the election in 2008,’ Hunter revealed about Schwerin’s appointment in an email on March 13, 2015. Schwerin was reappointed to the commission in January 2017.

Schwerin, who visited the White House and vice presidential residence at least 36 times during the Obama-Biden administration, was deeply connected with the Biden family and ‘managed almost every aspect of our financial life,’ according to Hunter’s ex-wife, Kathleen Buhle, who was married to the president’s son from 1993 to 2017.

Hunter acknowledged that Schwerin was a ‘close confidant and counsel’ to his father in a February 2014 email and frequently talked about their finances in emails.

‘If Devon Archer was the sort of business guy, the deal guy in how you structure this, Eric Schwerin was the money guy,’ Peter Schweizer, the president of Government Accountability Institute and an expert on Hunter’s business dealings, told ‘Sunday Morning Futures’ host Maria Bartiromo on Sunday.

As recently as March 2017, Rosemont Seneca Advisors, where Schwerin served as president, held a stake in a company run by a Chinese executive with ties to officials at some of the highest levels of the Communist Party of China (CCP), FOX Business previously reported.

Schwerin sent Hunter an email in March 2017 breaking down the ownership interests of Rosemont Seneca Advisors, which included a 5% stake in Harves Amusement Parks and ownership in Harves Sports and Entertainment.

Fox News Digital has extensively reported on the CCP ties of the parent company, Harves Century Group, and its affiliates, which have backing from the state-owned China Development Bank.

Bo Zhang, the founder and CEO of Harves Investment Group, among other U.S. based Harves affiliates, was being ‘groomed to take over his family’s dynasty’ in China, according to an email that top former Biden aide Francis ‘Fran’ Person wrote to Hunter in 2015.

Multiple emails reviewed by FOX Business showed that Schwerin and Hunter met with Person and Zhang in Washington, D.C., on multiple occasions and emailed back and forth, coordinating potential Harves-related business deals.

One of the emails was from Schwerin to Zhang, Biden, Person, an assistant and Tara Greco, a former director of communications for the union that represents NBA players. The April 2016 email, which was directed at Zhang, said Greco had learned that the Anschutz Entertainment Group (AEG) had a deal with the NBA to ‘build NBA branded stadiums around China’ but said it appeared the project was ‘stalled’ after only two stadiums were built, prompting Schwerin to say, ‘If Liaoning can get one of these stadiums that would be a big help in your efforts to get more NBA related content in Liaoning.’

After listing off several questions he had for Zhang, Schwerin concluded the email by saying they could discuss when they met the following week.

In November 2020, a joint press release announced that Harves was partnering with NBA China, a company that was formed in 2008 to conduct the NBA’s business throughout China and develop NBA-themed entertainment centers. Zhang was quoted in the press release as saying, the centers ‘furthers our mission to provide best-in-class global entertainment experiences to local populations.’ In May this year, the eastern city of Suzhou is expected to open its first experience center. Zhang said, ‘We hope to grow it into a landmark project in the sports industry.’

‘As part of the partnership, Harves, plans to open six NBA-themed entertainment centers across China, with the first opening by 2022,’ the press release said. ‘These entertainment centers will bring together fans and families to experience the excitement of the NBA through a variety of new activities and offerings, including cutting-edge, interactive digital games, NBA-themed dining and more.’

In 2015, Schwerin introduced Hunter to CEFC China Energy, a Chinese energy company based in Shanghai.

On Oct. 6, 2015, Schwerin sent an email to Hunter and Archer saying he met with a CEFC representative and was working on setting up a meeting.

‘Talked to Scott Oh today. He represents the Chinese conglomerate, CEFC China Energy,’ Schwerin wrote. ‘It is a $35 Billion company and among the 10 largest private companies in China. They are looking to move some of their assets to the U.S. and are looking for an asset manager to invest with.’

‘They are coming to D.C. the last week of October and would like to meet. I am giving them some dates that would work,’ he said. 

At the time, the CCP-connected Ye Jianming was the CEFC’s chairman. Fox News Digital previously reported that in 2012 Hunter extended ‘best wishes from the entire Biden family’ to Jianming and urged him to ‘quickly’ send a $10 million wire to ‘properly fund and operate’ their joint venture, which was never completed.

Hunter and possibly Schwerin met with Jianming and Oh on Dec. 7, 2015. Days later, Hunter and Schwerin held a call with the CEFC and World Food Program USA founder Rick Leach, presumably about a donation that Hunter and Schwerin helped facilitate from CEFC to the WFP USA, where Hunter Biden served as the board’s chairman, according to emails.

During that same year, Schwerin was on several emails related to a movie venture opportunity for Hunter, business associate Jimmy Bulger and George Hsieh, a pro-China lawmaker in Taiwan who would leave government to open up a movie production company. Schwerin was involved in multiple conversations with Bulger and Hsieh and would then go back to Hunter to relay their conversations.

In September 2015, Schwerin emailed Hunter letting him know he held a phone call with Bulger and Hsieh and that Hsieh proposed Biden and Bulger become movie producers for his company for a total of $1 million over the course of three years. Schwerin said Hsieh was also pushing for Biden and Bulger to meet with potential investors in China, which wouldn’t occur until September 2016.

Other emails show that Bulger was in conversations with Hsieh, and he wanted Hunter to meet Alibaba Group co-founder Jack Ma and other Alibaba executives after a few people went to Hsieh requesting help doing a biopic film on the life of Jack Ma.

Alibaba, a Chinese firm that reportedly helped create surveillance technology used against Uyghur Muslims in Xinjiang, is one of China’s largest technology firms that actively works to advance the interests of the Chinese Communist Party (CCP).

The technologies that Alibaba helped produce have also been used for government surveillance and to ‘reeducate’ Uyghur Muslims in Xinjiang, according to a congressional report in June 2020.

In September 2016, Schwerin sent an itinerary to Hunter Biden for an upcoming China trip looking for investors for their movie venture. The list of Chinese business leaders they were scheduled to visit had multiple CCP ties.

In 2014, Schwerin discussed with Hunter a business proposal by CITIC, a Chinese state-owned company.

‘They’d like an introduction to Universal (Comcast) as they’d like to open a Universal Studios China theme park outside of Beijing,’ Schwerin said of CITIC, adding that the company would ‘like to pay us for our help.’

It’s not clear what came of the proposal, but according to internet archives on the Wayback Machine from 2011, CITIC was listed in the ‘Alliances/Clients’ section of the website for Thornton Group, James Bulger’s firm that later partnered with Rosemont Seneca to form Rosemont Seneca Thornton.

In 2013, Hunter’s and Bulger’s firms secured their partnership with Li’s firm Bohai Capital in order to launch Bohai Harvest RST (BHR), which is controlled by the state-owned Bank of China Limited.

In December 2013, then-Vice President Biden traveled to Beijing due to a scheduled meeting with Chinese President Xi Jinping. 

Hunter expressed interest in joining his father on the trip and ended up going, where he admitted to the New Yorker that he introduced his father to Li.

According to the report, Hunter arranged for a brief handshake in the lobby of the hotel where the U.S. delegation was staying and then Hunter met up with Li privately.

However, Archer revealed to the House Oversight and Accountability Committee in a closed-door interview last week that Biden, as vice president, also had coffee with Li during his Beijing trip.

Schwerin organized a lunch with Hunter, Li and the Buccini brothers on Feb. 9, 2017, according to emails.

Days later, Schwerin sent Li a college letter of recommendation that Biden had written for his son, Christopher.

‘Hunter asked me to send you a copy of the recommendation letter that he asked his father to write on behalf of Christopher for Brown University,’ Schwerin wrote Li on Feb. 20, 2017. ‘The original is being FedExed to Dr. Paxson directly at Brown. It should be there by Tuesday at the latest (given Monday is a holiday here in the U.S.).’

‘It is just great!’ Li replied. ‘Thank you very much! And Hunter, thank you very much too.’

About the same time, Schwerin was also trying to arrange a meeting between Li and Nick Rohatyn, a Biden donor and then-client of Rosemont Seneca.

‘It was good to see you the other day at the White House,’ Hunter wrote Rohatyn in an email drafted by Schwerin. ‘I wanted to see if you or someone on your team wanted to meet with Jonathan Li, the CEO of BHR Partners, a Chinese cross border private equity fund that Rosemont Seneca helped found and of which we are a shareholder.’

‘Happy to connect with Jonathan Li when he is here,’ Rohatyn responded. ‘Copying my assistant Caroline to coordinate.

From May 2015 to February 2016, Schwerin was also part of talks between Harves and SeaWorld on potentially launching a theme park in Shanghai, and he helped arrange meetings between Harves and SeaWorld in China and Orlando, according to emails, though the deal was never realized.

Fox News Digital reported in September that Schwerin and Hunter were also instrumental in helping a Rosemont Seneca client and Democrat donor secure an event at the Chinese Embassy in Washington, D.C., after networking with one of the top officials at the embassy during a January 2011 luncheon hosted by then-Vice President Biden.

Schwerin did not respond to Fox News Digital’s request for comment.

This post appeared first on FOX NEWS

FIRST ON FOX: Presidential candidate Tim Scott is the latest GOP hopeful to vow support for the party’s eventual nominee by signing the ‘Beat Biden’ pledge, a document the Republican National Committee (RNC) is requiring candidates to sign in order to participate in party-sanctioned debates.

The senator from South Carolina joined the likes of his state’s former governor Nikki Haley, entrepreneur Vivek Ramaswamy and Florida Gov. Ron DeSantis by committing to the pledge. 

Their signatures allow them to officially qualify for the first Republican presidential primary debate slated to be held later this month in Milwaukee.

‘I look forward to sharing my positive, optimistic message on the GOP Debate stage in Milwaukee. Republicans are ready for conservative leadership with a backbone, one that will crush the cartels, stand up to China, and protect the America we all love,’ Scott said in a statement to Fox News Digital.

His signed pledge, dated Wednesday, Aug. 9, reads as follows:

‘I, Tim Scott, affirm that I agree to appear in only Primary and General Election debates that have been sanctioned by the Republican National Committee, pursuant to Rule 10(a)(11) of The Rules of the Republican Party. I acknowledge and accept that if I fail to sign this pledge or if I participate in any debate that has not been sanctioned by the Republican National Committee, I will not be eligible to participate in any further Republican National Committee sanctioned debates.

‘Additionally, I affirm that if I do not win the 2024 Republican nomination for President of the United States, I will honor the will of the primary voters and support the nominee in order to save our country and beat Joe Biden.

‘I further pledge that I will not seek to run as an independent or write-in candidate nor will I seek or accept the nomination for president of any other party.’

During a Wednesday appearance on ‘Fox & Friends,’ Scott told Brian Kilmeade he would ‘absolutely’ support whoever becomes the Republican nominee for president if it isn’t himself.

‘I will be the nominee and I certainly will support myself, but no matter who the nominee is, I’ve already committed to supporting our nominee without any question. But I’m gonna continue to work hard to prove that America can do for anyone what she’s done for me,’ he stated. 

Republican candidates wanting to participate in RNC-sanctioned debates ahead of the 2024 presidential election must sign the ‘Beat Biden’ pledge, as required by RNC Chairwoman Ronna McDaniel. The new rule flies in the face of an earlier comment made by former President Donald Trump suggesting that he may not support the eventual GOP nominee.

The pledge makes candidates commit to appearing only in debates sanctioned by the RNC. If they do not sign the pledge, or if they choose to participate in an unapproved debate, they will not be allowed to participate in RNC-sanctioned debates going forward.

In addition to the pledge, candidates wanting to qualify for the debate must also reach 1% in three national polls, or 1% in two national polls and two state-specific polls from the early voting states of Iowa, New Hampshire, South Carolina and Nevada. The polls must also be recognized by the RNC and must be conducted on or after July 1.

Additionally, to reach the debate stage, candidates must have 40,000 unique donors to their campaign committee (or exploratory committee), with ‘at least 200 unique donors per state or territory in 20+ states and/or territories,’ according to the RNC criteria.

It’s unclear if Trump, who stated Thursday he will not be signing the ‘Beat Biden’ pledge, will end up attending the upcoming debate despite being the GOP frontrunner and meeting the RNC’s fundraising requirements.

When asked about the former president potentially joining the qualifying candidates on stage in Milwaukee, Scott said he hopes to see him there, but his debate strategy isn’t dependent on Trump’s participation.

‘He’s a strong debater without any question. It will be entertaining without any question, but the American people deserve to see every single one of us that qualifies for the debate stage on that stage talking about our vision for America and how our presidency would change the tide away from this terrible, disastrous presidency of President Biden,’ Scott explained.

The first presidential debate of the 2024 election cycle will air on Fox News at 9 p.m. ET on Aug. 23. Rumble is the online live-streaming partner and Young America’s Foundation is also a partner in the first debate.

Fox News’ Paul Steinhauser contributed to this report.

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If you are a really long-term investor, then you want to buy stocks when everyone is happy, and no one likes the stock market or the economy. And when everyone is elated, that is the time to eschew stocks and turn to other assets.

This week’s chart looks at the DJIA/Gold Ratio going back a few decades. And, for comparison it shows the University of Michigan’s “Survey of Consumer”. That sentiment survey data just hit an all-time low reading in 2022, when inflation was really high and consumers were nervous. The survey data are starting to rebound, but, thus far, the DJIA/Gold Ratio has not moved much at all.

The instances of low UMich survey readings are pretty reliably associated with great lows for the DJIA/Gold Ratio, the moments during the grand sweep of history when one would want to get out of gold and move into stocks. A sharp-eyed reader might point to the UMich survey data’s low in 2008-09, after which the DJIA/Gold Ratio did not move up very much. But that was still a moment in history when one would have wanted to be a long term dip-buyer. The anomaly then was that gold prices went up in 2009-10 as fast as the stock market did, keeping the ratio flat. Another sentiment extreme came in August 2011, after a 19% decline in stock prices following the end of QE2, which put consumers into a bad mood. From that moment until a DJIA/Gold Ratio high in 2018, this ratio more than tripled, as investors decided that they did not like gold any more and the stock market ran higher.

The question now is whether this latest sentiment extreme in 2022 is going to mark another one of those great moments in history. That extreme came about because of high inflation, and the gold coin TV commercials all tell us that gold is supposed to be a great hedge against inflation. So if inflation lies ahead, and gold is going to outperform stocks, then that would make this DJIA/Gold Ratio move downward.

The problem with this thinking is that while gold prices might be helped by inflation, they are harmed by the Fed’s remedies to inflation. If you have your money invested in gold right now, you are missing out on earning a 5.4% yield on 3-month T-Bills. That makes owning gold pretty expensive in terms of “opportunity cost”, i.e. missing out on the opportunity to earn interest.

But high short-term rates also hurt the stock market, especially when the Fed pushes up rates to above the 2-year T-Note yield as they have done now. And the multiple officials of the FOMC who have made comments about their intentions seem to be saying that the Fed plans to keep this up for a while.

So that 2022 all-time record low reading for the UMich survey data may not turn out to be the great historical bottoming indication this time like it has been in the past, at least not for the stock market by itself. But it is reasonable to expect the DJIA/Gold Ratio to rise as it has before, thanks to gold underperforming more than from stocks outperforming.

Four years ago, WeWork was preparing for a blockbuster IPO. Now the company is warning of possible bankruptcy.

“Our losses and negative cash flows from operating activities raise substantial doubt about our ability to continue as a going concern,” WeWork said in a filing with the SEC on Tuesday.

The spectacular collapse of a company once valued by SoftBank at $40 billion has been years in the making, but is still surprising given the number of large commercial buildings around the world that don the company’s name. The combination of the Covid pandemic, which led many businesses to exit their leases in favor of remote work, and the subsequent economic slump, has left WeWork heavy on debt and struggling to generate cash.

“If we are not successful in improving our liquidity position and the profitability of our operations, we may need to consider all strategic alternatives, including restructuring or refinancing our debt, seeking additional debt or equity capital, reducing or delaying our business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code,” the company said.

WeWork’s stock has been trading below $1 since mid-March. It tumbled 26% to 15 cents in extended trading on Tuesday and now has a market cap below $500 million.

The company had a net loss in the first half of the year of $700 million after losing $2.3 billion in 2022. As of June 30, it had $205 million in cash and equivalents and total liquidity of $680 million. It has $2.91 billion in long-term debt.

WeWork first sought to go public in 2019, publishing its initial prospectus in August of that year. With its full financials available for everyone to see, the business was roundly criticized due to excessive spending and risks along with founder Adam Neumann’s complex relationship at the company.

The IPO never made it out the door. SoftBank founder and CEO Masayoshi Son called his investment in WeWork “foolish” and his company took majority control of the business in a $5 billion financing package. Neumann was forced to step down.

In 2021, WeWork finally became public through a merger with a special purpose acquisition company, or SPAC. But the turbulence continued. WeWork said its revenue grew just 3.6% year over year in the second quarter and declined 4% in the U.S., where it gets 41% of its sales.

Economic conditions led more members to depart, bring down revenue and cash flow, WeWork said. Even SoftBank is spending less on WeWork. In the second quarter, the company contributed $6 million of WeWork’s revenue, down from $10 million in the second quarter of 2022, according to the filing.

Key factors for whether WeWork can remain a going concern include limiting capital expenditures, increasing revenue and seeking capital through debt or equity issuance.

Three board members resigned last week because of “a material disagreement regarding Board governance and the Company’s strategic and tactical direction.” Daniel Hurwitz, who had been chair since May, was one of them.

WeWork is still searching for a permanent leader. The company said in May that CEO Sandeep Mathrani would step down within days and that board member David Tolley, a former finance chief at Intelsat, would become interim CEO.

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“WeCrashed,” a miniseries about the rise and fall of the company, debuted on Apple TV+ last year.

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