(ZH) Soros Buying Gold On BREXIT, EU “Collapse” Risk

Soros Buying Gold On BREXIT, EU “Collapse” Risk

George Soros is again buying gold and selling and going short stocks due to BREXIT and EU “collapse” risk, after a six year hiatus from the gold market.

The multi-billionaire hedge fund manager, the man who “broke the Bank of England” and one of the richest and most powerful men in the world has now publicly warned that inflation is likely soon and is voicing concerns about BREXIT, the disintegration of the EU, a Chinese financial crash, global contagion and a new World War.

Soros Fund Management, which manages around $30 billion for the Soros family, is now aggressively selling and going short stocks and diversifying into gold and shares in gold mining companies, due to his now even “gloomier” view of the global financial system and the global economic outlook.

Soros has become more involved in trading at his family office, due to his many concerns and the risk that “large market shifts may be at hand”, according to a person familiar with the matter as reported by Bloomberg.

Soros recently warned that the EU is “on the verge of collapse” because of its handling of the Greek economic crisis and refugee crisis and said the prospect of a BREXIT from EU Superstate posed a fresh threat to the EU.

Soros, 85, has been spending more time in the office directing trades and recently oversaw a series of big, bearish investments, said the person, who asked not to be identified discussing private information. Soros Fund Management LLC sold stocks and bought gold and shares of gold miners last quarter, anticipating weakness in various markets, according to a government SEC filing. The Wall Street Journal earlier reported Soros’s decision.

The smart money such as Soros, old money such as Berenger Bank, large institutional money such as Munich Re and Blackrock, who understand diversification and gold’s function as a store of value continues to diversify into gold. There is an awareness with these smart, “insider” money of gold’s benefit as a hedging instrument and safe haven asset but also an awareness that the outlook for prices is very positive, at these depressed levels.

The less informed money continues not to appreciate the risks that are again building in the system. Risk appetite remains high and there is a distinct lack of awareness regarding how risks, such as BREXIT and contagion in the EU, may impact financial markets and traditional assets such as stocks, bonds, property and indeed deposits.

Governments, economists, financial advisers, brokers and of course bankers did not see the first crisis coming in 2008 and they are not seeing it now. Some are simply not informed or aware of the risks and others choose to ignore them and spin the illusion that all is well and there is nothing to be worried about.

The cosy consensus and groupthink of economic recovery continues and there is a remarkable lack of a plurality of opinion and lack of debate regarding the risks posed to savers and investors today.

The real risks of another global financial crisis as warned in recent days by Martin Wolf and Japanese Prime Minister Abe are largely being ignored again – as was the case before the first crisis. A few market observers are warning about and again they are largely being ignored

The inability to look at the reality of the global financial and economic challenges confronting us today will see investors suffer financial losses again. In the coming crisis, depositors and savers are also exposed due to the new bail-in regimes.

Real diversification and an allocation to gold bullion coins and bars remains the key to weathering the second global financial crisis.

>>> Facebook / Citron : Citron's Left is short Facebook - CNBC "Facebook is losi

Citron's Left is short Facebook - CNBC "Facebook is losing an extensive amount of relevancy," Left said in a phone interview Monday morning. "I am short Facebook."

LinkedIn "was a monopoly in their respective space, whereas I see Facebook losing share to Snapchat and overstaying its welcome in other niches," Left said. "I am not saying Facebook is a 'bad company' (it) just will not be a $330 billion company in a year."

>>> Aveva Confirmed they have received an offer from SU

The Board of AVEVA notes today's press speculation and confirms that it has received a revised, conditional proposal from Schneider Electric SE ("Schneider Electric") for AVEVA to combine with Schneider Electric's Software Business in exchange for new AVEVA shares to be issued to Schneider Electric. Similar to the previous discussions that took place between the parties last year, the proposal also includes a significant cash payment from Schneider Electric to AVEVA, which would be distributed to AVEVA's current shareholders upon completion. The proposed transaction, if consummated, would result in Schneider Electric owning a majority equity stake in the enlarged AVEVA, which is intended to remain listed on the London Stock Exchange.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: SYUT -6.2%


Select financial related names showing weakness: LYG -2.6%, DB -2.1%, CS -1.9%, BCS -1.7%, SAN -1.6%, HSBC -1%,BAC -0.8%


Other news: MRNS -57.9% (announces ganaxolone did not meet the primary endpoint of demonstrating a statistically significant difference from placebo), BIOS -12% (commences common stock offering), SPHS -8.6% (modestly pulling back after Friday's gains), GWPH -2% (still checking), DANG -1.8% (Shanghai -3.5% overnight), BABA -1.1% (Shanghai -3.5% overnight), TRN -0.5% (enters into an Administrative Settlement and Compliance Agreement with the Federal Highway Administration pertaining to highway products)

Analyst comments: EMES -7.7% (downgraded to Underperform at DA Davidson), OSUR -4.2% (downgraded to Mkt Perform from Outperform at Raymond James), VOD -2.1% (downgraded to Neutral from Outperform at Macquarie), SAP -1.8% (downgraded to Underperform from Hold at Jefferies), BIDU -1.7% (downgraded to Neutral from Buy at Citigroup)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: SNSS +19.4%, SAIC +6.4%, STLD +3.1%, HNI +1.1%

M&A news: PWE +69.6% (confirmed $1.1 bln in asset sales, including sale of Saskatchewan assets for $975 mln), LNKD+47.2% (to be acquired my Microsoft (MSFT) for $196/share ), SYMC +4.2% (will acquire Blue Coat for ~$4.651 bln in cash),RDY +0.9% (to acquire Teva's (TEVA) portfolio of 8 ANDAs for $350 mln)


Select metals/mining stocks trading higher: MUX +6.8%, HMY +3.6%, AUY +3.2%, ABX +2.5%, GG +2.2%, NEM+2.1%, SLW +1.8%, GDX +1.8%, AU +1.6%

Other news: EBIO +79.1% (to grant an exclusive license to Roche (RHHBY) to develop/commercialize EBI-031; receives an upfront payment of $7.5 mln, along with potential milestone payments of up to $262.5 mln), SNSS +19.5% (presents updated results from an ongoing Phase 1b/2 trial of vosaroxin in combination with decitabine in older patients with previously untreated acute myeloid leukemia and high-risk myelodysplastic), AGIO +9.2% (presents data for Phase 2 DRIVE-PK study of AG-348 demonstrating rapid and sustained hemoglobin increases), SWHC +7.9% (speculation of tighter gun control laws; suggests ramp in near-term sales), MNKD +5.9% (presents Late-Breaking data Afrezza confirming faster onset and shorter duration of action compared to mealtime insulins), SUNW +5.5% (updated corporate presentation reaffirms FY16 target of $100 mln in revs vs the $103 mln single analyst estimate), TTNP +4.7% (receives $15 mln milestone payment from development and commercialization partner Braeburn Pharmaceuticals following FDA approval of Probuphine), RGR +4.3% (speculation of tighter gun control laws; suggests ramp in near-term sales), AMRN +4.2% (reports data for Vascepa that indicated reductions in potentially atherogenic lipid parameters), GALE +3.4% (presents combined safety data from its GALE-401 clinical trials), VRX+2.7% (CEO disclosed purchase of 202K shares worth ~$4.9 mln; Pershing Square affirms unchanged 9.0% active stake, updating on recent transactions), VICL +2.4% (insider purchase by CEO)

Analyst comments: ON +1.5% (upgraded to Overweight at Pacific Crest), ENDP +1.2% (upgraded to Neutral at Mizuho)