Sponsored by Vortex Metals

Nickel fraud continues

Another trading company has fallen victim to a significant setback, purchasing what it believed to be a shipment of valuable nickel, only to find the cargo filled with nearly worthless debris.

This recent incident, outlined in legal actions filed in both London and Singapore, stands apart from the earlier $600 million alleged fraud against Trafigura Group that jolted the trading sector earlier this year. Nevertheless, it involves several of the same firms.

The emergence of widespread issues involving fictitious nickel deals is poised to undermine confidence in the metals trading industry, which has already been marred by various scandals. The Trafigura case has led to multiple legal suits, and in March, the London Metal Exchange revealed that 54 tons of so-called “nickel,” held in a Rotterdam warehouse owned by JPMorgan Chase & Co., was, in fact, nothing more than bags of stones.

You can read more on the matter here.

What’s going on?

• Donald Trump Is Back On X (Twitter)… With His Mug Shot (theDeepDive)

• Why Did The Canadian Public Pay Nearly $3 Million For The Governor General’s Travels? (theDeepDive)

• Russia Reportedly Planning To Swap Foreign Investors’ Frozen Assets With Their Own (theDeepDive)

• Fugitive Billionaire Surrenders in Bulgaria After Years in UAE (Bloomberg)

• BRICS Bloc Welcomes Six Nations in a Bid to Reshape Global Order (theDeepDive)

• Americans Can’t Afford Their Cars Anymore (theDeepDive)

• Barbie’ is now the highest-grossing domestic film release in 2023 (CNBC)

• German Carmakers Cut Off Russian Dealers from Software (theDeepDive)

• Bloomberg LP Announces Major Leadership Shifts: Vlad Kliatchko Named CEO, Mark Carney to Chair New Board (theDeepDive)

What’s the latest?

• More Rate Hikes: Federal Reserve Chair Jerome Powell indicated that the central bank may need to raise interest rates further to contain inflation. He noted that while inflation has eased from its peak, it remains too high, and the Fed is prepared to raise rates further if necessary. Powell also expressed concerns that the economy may not be cooling as expected, with consumer spending robust and the housing sector possibly rebounding.

• Trump Gets Booked: Former U.S. President Donald Trump's mug shot was released after his booking in an Atlanta jail on multiple felony charges related to his efforts to overturn the 2020 election in Georgia. Trump, facing several criminal cases, reiterated claims of political motivation and defended his actions as he left the jail for his golf club in New Jersey.

• Ford Begins To Back Down: The Ontario government has reversed its decision to include Greenbelt land in a proposed fast-tracked subdivision in Caledon. After facing opposition and criticism from residents and local authorities, the province announced that the Greenbelt lands would remain protected.

• Kremlin Denies Involvement: The Kremlin has denied Western suggestions that Yevgeny Prigozhin, the head of the Wagner mercenary group, was killed on its orders and called it an "absolute lie." The Russian aviation authority confirmed that Prigozhin was on a private jet that crashed, but the Kremlin declined to confirm his death, awaiting test results.

• 3M Settles Bribery Case: 3M has agreed to pay over $6.5 million to settle charges of violating the Foreign Corrupt Practices Act related to a subsidiary in China. The SEC alleged that the subsidiary arranged overseas travel and tourism activities for Chinese government officials to encourage them to purchase the company's products. The subsidiary colluded with local travel agencies and paid around $1 million for 24 trips.

The dark side of The Blind Side

The stock market and stuff

• SEC Charges Ex-New Jersey Corrections Lieutenant For Crypto Scam (theDeepDive)

• Nvidia's $25 billion buyback 'a head-scratcher' for some shareholders (Reuters)

• Amazon in talks with Disney about ESPN streaming partnership, The Information reports (Reuters)

In the juniors

• BIGG Digital To Acquire Metaverse Marketer For $20 Million In Stock (theDeepDive)

• Another Metal Trader Falls Victim to Nickel Fraud Allegedly Related To Trafigura Incident (theDeepDive)

• SPAC Digital World drops amid Trump's first X post since ban lifted (SA)

FULL DISCLOSURE: Vortex Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Vortex Metals. The author has been compensated to cover Vortex Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.