Summary Of the Markets Today:
- The Dow closed up 105 points or 0.30%,
- Nasdaq closed down 0.56%,
- S&P 500 closed down 0.11%,
- Gold $1946 down $3.20,
- WTI crude oil settled at $83 up $0.26,
- 10-year U.S. Treasury 4.164% up 0.082 points,
- USD index $102.99 up $0.08,
- Bitcoin $29,358 down $65
- Baker Hughes Rig Count: U.S. -5 to 654 Canada +2 to 190
Click here to read our Economic Forecast for August 2023
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
The Producer Price Index (PPI) for final demand ticked up and advanced 0.8% for the 12 months ending in July 2023 (blue line on the graph below). The increase in final demand prices was led by final demand services (green line on the graph below). We should expect the PPI to rise year-over-year for the remainder of the year as it is being compared to improving inflation conditions that began one year ago.
The preliminary University of Michigan consumer sentiment for August 2023 was essentially unchanged from July, with small offsetting increases and decreases within the index. At 71.2 index points, sentiment is now about 42% above the all-time historic low reached in June of 2022 and is approaching the historical average reading of 86. In general, consumers perceived few material differences in the economic environment from last month, but they saw substantial improvements relative to just three months ago.
Here is a summary of headlines we are reading today:
- Economic Chill In China: Domestic Demand And Property Markets Waver
- Indonesia Looks To Attract EV Producers With Zero Export Duty
- The Oil Price Rally Stalls Amid Demand Uncertainty
- Russia May Not Hold Presidential Elections
- U.S. Oil Production Is Bouncing Back
- U.S. judge sends Sam Bankman-Fried to jail over witness tampering
- Trump-appointee David Weiss named special counsel in Hunter Biden probe as DOJ calls for trial
- Hunter Biden Trial Likely As Plea Deal Negotiations Implode
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
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Economic Chill In China: Domestic Demand And Property Markets WaverChina’s already “tortuous” recovery from the Covid pandemic continued to stall today as fresh data indicated that domestic demand remained depressed. Figures out this morning showed that the world’s second largest economy slid into deflation in July for the first time since February 2021, with the consumer price index (CPI) falling 0.3 percent year-on-year. CPI had been hovering around zero for months before. Deflation refers to falling prices for goods and services. It can be hugely damaging for an economy… Read more at: https://oilprice.com/Finance/the-Economy/Economic-Chill-In-China-Domestic-Demand-And-Property-Markets-Waver.html |
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IEA: European Refiners Aren’t Taking Advantage Of Higher MarginsProfitability among Europe’s hydroskimming refineries is now the highest on record, with the exception of the time immediately following Russia’s invasion of Ukraine. But even with profitability at a near all-time high, utilization in European OECD refiners averaged just 81% in June—530,000 bpd less than the same month last year and making European refining the “epicentre of the operational underperformance,” the IEA said in its latest Oil Market Report (OMR). The bottom line, according to the IEA, is that refiners… Read more at: https://oilprice.com/Latest-Energy-News/World-News/IEA-European-Refiners-Arent-Taking-Advantage-Of-Higher-Margins.html |
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Oil, Gas Drilling Still Stalling As Prices ClimbThe total number of active drilling rigs in the United States fell by 5 again this week, according to new data from Baker Hughes published Friday. The total rig count fell to 654 this week. So far this year, Baker Hughes has estimated a loss of 125 active drilling rigs. This week’s count is 421 fewer rigs than the rig count at the beginning of 2019 prior to the pandemic. The number of oil rigs stayed the same this week at 525, down by 96 so far in 2023. The number of gas rigs fell by 5 to 123, a loss of 33 active gas rigs from the start of… Read more at: https://oilprice.com/Energy/Crude-Oil/Oil-Gas-Drilling-Still-Stalling-As-Prices-Climb.html |
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Algonquin Power To Sell Renewables Division As Losses MountAn Ontario-based utility company is getting out of the renewables business after it lost more than $250 million in Q2, the company said this week. The company’s board chairman, Kenneth Moore, said that the company will now focus on being a pure-play utility company. Algonquin Power and Utilities Corp reported earnings losses attributable to shareholders of $253.2 million in Q2, after sustaining a $33.4 million loss in the same quarter last year. The Q2 loss was larger than its total loss through the full year 2022. The company reported that the… Read more at: https://oilprice.com/Alternative-Energy/Renewable-Energy/Algonquin-Power-To-Sell-Renewables-Division-As-Losses-Mount.html |
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Flood Of Russian Aluminum Undermines Accuracy Of LME PricesVia Metal Miner MetalMiner actively posts on a variety of metals and market developments. However, we prefer to discuss topics that our clients bring to us, especially those that keep buyers awake at night. One such topic that has been recurring over recent months is the anxiety surrounding the LME aluminum quotation. Specifically, there has been a lot of talk over the LME’s potential failure to reflect the true value of global aluminum prices. Although it may be an oversimplified statement, it is essential to note that there is no single… Read more at: https://oilprice.com/Metals/Commodities/Flood-Of-Russian-Aluminum-Undermines-Accuracy-Of-LME-Prices.html |
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Indonesia Looks To Attract EV Producers With Zero Export DutyIndonesia plans to offer zero export duty and exemption from value-added tax to EV manufacturers willing to establish production in the large emerging Asian economy, Bloomberg reported on Friday, citing unnamed sources with knowledge of the matter. It was not immediately clear when or for how long those subsidies would last, Bloomberg notes. The new policy, still in a stage of deliberation, could be changed before it is announced, according to Bloomberg’s sources. Indonesia is competing with other countries in the Association of Southeast… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Indonesia-Looks-To-Attract-EV-Producers-With-Zero-Export-Duty.html |
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The Oil Price Rally Stalls Amid Demand UncertaintyUncertainty has returned to the oil market this week, with the recent oil price rally having stalled due to renewed economic concerns in China and a large inventory build in the U.S.Friday, August 11, 2023Backwardation in Brent and WTI futures continued to widen this week as physical tightness was felt across all continents, but China’s uncertain outlook and a large US inventory build have capped oil prices. As of Friday morning, ICE Brent was trading at $86.44 per barrel and WTI below $83 per barrel. International organizations have… Read more at: https://oilprice.com/Energy/Energy-General/The-Oil-Price-Rally-Stalls-Amid-Demand-Uncertainty.html |
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Russia’s Oil Exports Remained Steady As Revenues Rose In JulyRussia’s crude oil and refined products exports remained steady at some 7.3 million barrels per day (bpd) in July, while higher oil prices and narrower price differentials for Russian crude pushed Moscow’s revenues higher compared to June, according to estimates by the International Energy Agency (IEA). Russian crude oil loadings were estimated to have dropped by 200,000 bpd last month, but the lower crude exports were offset by higher exports of refined petroleum products, the agency said in its Oil Market Report (OMR) on Friday. Russian… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Russias-Oil-Exports-Remained-Steady-As-Revenues-Rose-In-July.html |
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An Undervalued Name In The Lithium SpaceOne of the things that I say quite frequently is that if the pricing of something looks to you to be way off, the first thing to do is to check your own assumptions. Logically, it is far more likely that you have missed something than that everybody else has and, even if you are “right” and everyone else is “wrong”, the price won’t reflect that until something happens to make them realize that that is the case. So, this week, when I did a post-earnings check on the fundamental metrics for a stock that has served me… Read more at: https://oilprice.com/Energy/Energy-General/An-Undervalued-Name-In-The-Lithium-Space.html |
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Biden’s Crackdown On Chinese Tech InvestmentThis week, the Biden administration stepped up its crackdown on Chinese technology in what is becoming the global conflict of the century. In this latest phase, an executive order signed Wednesday blocks and regulates U.S. investments in Chinese technology, covering everything from advanced computer chips and micro-electronics to quantum IT and AI. This is where national security begins to trump macroeconomics. It’s a stark choice between economics and world technological dominance, and only the latter can be a winning choice in the longer… Read more at: https://oilprice.com/Energy/Energy-General/Bidens-Crackdown-On-Chinese-Tech-Investment.html |
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Russia May Not Hold Presidential ElectionsPolitics, Geopolitics & Conflict The latest from Moscow comes in the form of hints dropped by Kremlin spokesperson Dmitry Peskov to the effect that Putin could potentially opt to not hold presidential elections next March. Peskov’s reasoning is that an election would be irrelevant because Putin would so clearly win. “Our presidential election is not really a democracy, it is costly bureaucracy… Mr. Putin will be re-elected next year with more than 90% of the vote,” Peskov told NYT (later claiming he was misquoted). In the… Read more at: https://oilprice.com/Energy/Energy-General/Russia-May-Not-Hold-Presidential-Elections.html |
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U.S. Oil Production Is Bouncing Back1. Higher Oil Prices Revitalize US Crude Production- As oil prices moved to the mid-80s due to Saudi Arabia’s production cuts and robust summer demand, US oil producers see additional incentives to ramp up supply, setting new all-time production figures along the way. – According to the EIA’s recently issued Short-Term Energy Outlook, US crude production is expected to surpass 12.9 million b/d for the first time ever in late 2023, a 200,000 b/d upward revision compared to previous forecasts. – Buoyed by the high-price environment which… Read more at: https://oilprice.com/Energy/Energy-General/US-Oil-Production-Is-Bouncing-Back.html |
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Are Oil Bulls Being Overly Confident?US benchmark October West Texas Intermediate (WTI) crude oil showcased mixed signals on Thursday. While prices settled lower on the daily chart, the market is still in a position to close higher for the week. Driving this sentiment are both domestic monetary policies and international market dynamics. Supporting Factors Fed’s Rate Hiking Cycle The recently released U.S. consumer prices data for July has ignited speculation surrounding the Federal Reserve’s monetary stance. Market analysts are hypothesizing that the Fed might be concluding its aggressive… Read more at: https://oilprice.com/Energy/Energy-General/Are-Oil-Bulls-Being-Overly-Confident.html |
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OPEC+ Oil Supply Plunges By 1.2 Million Bpd As Saudi Arabia Cuts OutputOil supply from the OPEC+ group dipped in July by 1.2 million barrels per day (bpd) to 50.7 million bpd, the lowest level in nearly two years as Saudi Arabia began its unilateral production cut of 1 million bpd, the International Energy Agency (IEA) said on Friday. The alliance’s oil production was down by more than 2 million bpd from the start of the year. Over the same period, oil producers outside the OPEC+ group increased their combined production by 1.6 million bpd to 50.2 million bpd. For the rest of the year, the non-OPEC+… Read more at: https://oilprice.com/Latest-Energy-News/World-News/OPEC-Oil-Supply-Plunges-By-12-Million-Bpd-As-Saudi-Arabia-Cuts-Output.html |
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IEA: Global Oil Demand Hits Record HighGlobal oil demand will hit new highs and is expected to average 102.2 million barrels per day (bpd) this year, driven by summer air travel, strong Chinese petrochemical activity, and higher oil use in power generation, the International Energy Agency (IEA) said on Friday. World oil demand is set to grow by 2.2 million bpd this year, with China accounting for more than 70% of growth, the agency said in its closely-watched Oil Market Report (OMR) for August. The growth estimate is unchanged from last month’s… Read more at: https://oilprice.com/Energy/Energy-General/IEA-Global-Oil-Demand-Hits-Record-High.html |
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U.S. judge sends Sam Bankman-Fried to jail over witness tamperingSam Bankman-Fried heads to jail after a judge sided with a request by federal prosecutors to revoke the FTX founder’s bail over alleged witness tampering. Read more at: https://www.cnbc.com/2023/08/11/us-judge-sends-sam-bankman-fried-to-jail-over-witness-tampering.html |
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Nasdaq Composite slips Friday, falls two weeks straight for the first time in 2023: Live updatesThe latest inflation report due this week came in hotter than anticipated. Read more at: https://www.cnbc.com/2023/08/10/stock-market-today-live-updates.html |
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Retailers are shaping a wave of laws to crack down on organized theft — here’s how they do itNine states have passed laws addressing organized retail crime and Congress is considering federal action. Experts say the new laws may not reduce crime. Read more at: https://www.cnbc.com/2023/08/11/organized-retail-crime-nine-states-pass-laws-to-crack-down-on-theft.html |
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Beware these companies reporting next week with downside earnings momentumThese stocks have been exceedingly downwardly revised ahead of company quarterly results next week, according to FactSet data. Read more at: https://www.cnbc.com/2023/08/11/stock-market-outlook-beware-second-quarter-eps-results-inflation-consumer.html |
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SEC delays decision on bitcoin ETF from Cathie Wood’s Ark InvestThe Ark 21Shares fund is seen as the first in line for a potential bitcoin ETF launch, though the SEC could choose to approve many funds at about the same time. Read more at: https://www.cnbc.com/2023/08/11/sec-delays-decision-on-bitcoin-etf-from-cathie-woods-ark-invest.html |
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SEC investigating Illumina over acquisition of cancer test developer GrailIllumina’s acquisition of cancer test developer Grail has also faced heavy scrutiny from antitrust regulators in the U.S. and European Union. Read more at: https://www.cnbc.com/2023/08/11/sec-investigating-illumina-grail-acquisition.html |
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Harris to play a leading role in Biden’s 2024 campaignThe memo states Harris will hit the trail to reach constituencies core to the Biden-Harris coalition including young people, people of color and women. Read more at: https://www.cnbc.com/2023/08/11/harris-to-play-a-leading-role-in-bidens-2024-campaign-.html |
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Trump-appointee David Weiss named special counsel in Hunter Biden probe as DOJ calls for trialLast month, Hunter Biden pleaded not guilty to federal tax charges. Read more at: https://www.cnbc.com/2023/08/11/trump-appointee-david-weiss-named-special-counsel-in-hunter-biden-case.html |
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U.S. sanctions 4 of Russia’s financial elite; Russian strike on hotel kills 1The U.N. humanitarian coordinator for Ukraine said she was “appalled” by the attack, adding the hotel was frequently used by U.N. personnel and NGO workers. Read more at: https://www.cnbc.com/2023/08/11/live-updates-latest-news-on-russia-and-the-war-in-ukraine.html |
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Trump judge sets limits on what evidence he can publicly share in D.C. election caseThe judge partially sided with Trump’s lawyers, who challenged a broader proposed ban on the which evidence in the case could be disclosed. Read more at: https://www.cnbc.com/2023/08/11/trump-election-trial-judge-sets-limits-on-evidence-sharing-in-case.html |
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A totaled Tesla was sold for parts in the U.S. but came back online in Ukraine — here’s what happenedThe car or its computer was suddenly online in a southern region of war-torn Ukraine. Read more at: https://www.cnbc.com/2023/08/10/how-totaled-tesla-sold-for-parts-in-us-came-back-online-in-ukraine.html |
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Why Americans are struggling with car loansAuto loan debt in the U.S. is at a record high of $1.5 trillion. Here’s what lenders say is happening and how consumers can ensure they’re protected. Read more at: https://www.cnbc.com/2023/08/11/why-americans-are-struggling-with-car-loans.html |
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Retailers take center stage in the week ahead, as Wall Street turns to the consumer for a much-needed boostSome strong reports next week could highlight the continued strength of a surprisingly resilient consumer. Read more at: https://www.cnbc.com/2023/08/11/retailers-takes-center-stage-in-the-week-ahead-as-wall-street-turns-to-the-consumer-for-a-much-needed-boost.html |
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Sam Bankman-Fried Heads Back To Jail After Bail RevokedFTX Founder Sam Bankman-Fried is headed back to jail after the judge in the case revoked his bail over alleged witness intimidation, after he showed a journalist from the NY Times private writings from his ex-girlfriend and business partner, Caroline Ellison, and used a VPN in violation of a previous order not to.
John Reed Stark, former US SEC’s Office of Internet Enforcement Chief, suggested that Judge Lewis Kaplan could view SBF’s actions as an effort to improperly influence witnesses … Read more at: https://www.zerohedge.com/political/sam-bankman-fried-heads-back-jail-after-bail-revoked |
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US Sanctions Lebanon’s Central Bank Ex-Governor For Alleged CorruptionVia The Cradle, The US, UK, and Canada on Thursday announced coordinated sanctions against Riad Salameh, Lebanon’s former central bank governor, and four of his associates “for their role in the diversion of over $300 [million]” from the bank’s coffers. “Riad Salameh’s actions benefited himself and his close associates at the expense of the Lebanese people. His brother Raja Salameh, former assistant Marianne Hoayek, and former partner Anna Kosakova financially benefited from this corruption, lining their pockets with money belonging to the Lebanese people,” the statement issued by the UK government reads. Read more at: https://www.zerohedge.com/geopolitical/us-sanctions-lebanons-central-bank-ex-governor-alleged-corruption |
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Hunter Biden Trial Likely As Plea Deal Negotiations Implode: DOJFederal prosecutors on Friday said in a new filing that a court trial is now likely in the Hunter Biden tax evasion case.
As the Daily Caller reports, prosecutors said in a Friday motion that plea negotiations which continued after Hunter Biden’s previous deal fell apart during his July 26 hearing are “at an impasse.”
“The Government now believes that the case will not resolve … Read more at: https://www.zerohedge.com/political/hunter-biden-trial-likely-plea-deal-negotiations-implode-doj |
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Watch: DeSantis Says He’d Consider Drone-Striking Mexican CartelsAuthored by Steve Watson via Summit News, Florida Governor Ron DeSantis declared Thursday that if he was elected President he would “absolutely reserve the right” to drone strike Mexican drug cartels.
During a Q&A in Iowa, DeSantis said that he would consider the move “if they’re invading our country and killing our people.”
Read more at: https://www.zerohedge.com/political/watch-desantis-says-hed-consider-drone-striking-mexican-cartels |
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Train strikes: RMT union announces new weekend walk-outsAbout 20,000 members will take strike action on 26 August and 2 September over pay and conditions. Read more at: https://www.bbc.co.uk/news/business-66479059?at_medium=RSS&at_campaign=KARANGA |
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What’s next for Wilko and its 12,500 workers?The retailer is in administration but that doesn’t necessarily mean it will disappear from the High Street. Read more at: https://www.bbc.co.uk/news/business-66474218?at_medium=RSS&at_campaign=KARANGA |
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Warm weather in June boosts UK economyHigher temperatures helped better-than-expected quarterly growth but fears of a slowdown remain. Read more at: https://www.bbc.co.uk/news/business-66465616?at_medium=RSS&at_campaign=KARANGA |
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Tech View: Nifty forms long bear candle on daily charts. What traders should do next weekIndia VIX was up by 1.07% from 11.40 to 11.52 levels. Volatility inched higher and caused some discomfort to the bulls Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-forms-long-bear-candle-on-daily-charts-what-traders-should-do-next-week/articleshow/102650596.cms |
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Power Finance Corp announces 1:4 bonus issue of shares to investorsThe bonus shares will be paid out of the sum outstanding to the credit of the securities premium account, subject to the approval of shareholders. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/power-finance-corp-announces-14-bonus-issue-of-shares-to-investors/articleshow/102651399.cms |
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These 4 healthcare stocks touch their 52-week high, gaining upto 45% in a monthIn Friday’s trading session, the benchmark index Sensex, faced a significant drop of 366 points, ending the day at a level of 65,322. Nonetheless, despite this market decline, four stocks within the BSE healthcare index managed to reach new highs within the past 52 weeks. The 52-week high carries considerable importance for certain traders and investors, acting as a crucial technical indicator for assessing a stock’s present value and predicting potential price shifts. This value signifies the highest price at which a stock has been traded during the previous year. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/these-4-healthcare-stocks-touch-their-52-week-high-gaining-upto-45-in-a-month/at-a-high/articleshow/102651888.cms |
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Banking: More challenges await U.S. banks but analysts think the worst may be over for the yearHeadwinds continue to face U.S. banks, but a narrowing of profit margins is expected to slow down. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7247-E1DFE1020C77%7D&siteid=rss&rss=1 |
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Cannabis Watch: TerrAscend says Morgan Stanley, BNY Mellon lift custody ban on cannabis for Toronto Stock Exchange listing“While the removal from the blacklist has gone without much notice, we do think that this is a big deal,” said TerrAscend executive chair Jason Wild. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7247-ADD740930E57%7D&siteid=rss&rss=1 |
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Futures Movers: Oil scores 7th straight weekly rise as traders focus on tight suppliesOil futures rise Friday, booking a seventh straight weekly rise to end near 2023 highs. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7247-932591E6E591%7D&siteid=rss&rss=1 |
Sam Bankman-Fried leaving court on February 16, 2023 (Liz Napolitano/CoinDesk)Late last month the DOJ sought to have SBF’s bail revoked over the leaked diary, and allegedly used the Signal app to obstruct the investigation, as the app auto-deletes content after a period of time.
