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1. Spot Gold has traded between $1,740 and $1,708 so far today…as of 7:00 am Pacific the yellow metal is off $18 an ounce at $1,715…U.S. lawmakers overwhelmingly approved a $484 billion coronavirus relief bill yesterday, funding small businesses and hospitals and pushing the total spending response to the crisis to nearly $3 trillion…this is making the 2008 financial crisis look like a tea party, and the dramatic increase in the U.S. deficit is one of the most important factors driving bullion…Standard Bank: “Gold ETPs are scaling record highs in tonnage and USD terms, but tactical positioning (in the futures market) is relatively light, leaving room for growth. For now, strong investment demand has more than offset the extreme weakness in physical demand”…Silver has retreated 19 cents to $15.06…Palladium is up $19 at $1,923…base metals are flat with Copper, Nickel and Zinc at $2.31, $5.47 and 84 cents, respectively…June WTI futures have added $1.07 a barrel to $17.57, up for a 3rd straight session following an historic rout that saw a futures contract turn negative for the first time ever…Continental Resources (CLR, NYSE), the largest Oil producer in North Dakota, has halted most of its production in the U.S. state and notified some customers it would not supply Crude…the U.S. Dollar Index is unchanged at 100.44…on the pandemic front, a new “model” by the Network Science Institute at Northeastern University in Boston shows the first infections in the U.S. came from China in early or mid-January, and that the virus went undetected because many people were not presenting symptoms (and of course China wasn’t issuing any warnings)…Canadian Prime Minister Trudeau made a big deal of his $9 billion “relief package” for students this week, one of his favored constituencies, but what about our struggling Oil and gas sector, and farmers across the country?…bottlenecks at pork slaughterhouses are creating a cash crisis for farmers, raising fears of bankruptcies at the farm level and threatening the flow of Canadian meat to grocery store coolers…the Canadian Pork Council has issued a dire warning…“We are asking the government for an emergency payment of $20 per hog so that pork producers can continue to pay bills, feed pigs and keep producing food for Canadian families,” said Rick Bergmann, chair of the council…“Without it, family farms will be lost. In turn we will continue to see disruption in the food supply chain, and increased food insecurity as supplies tighten and food becomes even more expensive”…
2. Canada is behind the economic curve again: 16 American states have already unveiled “formal reopening plans” to lift coronavirus restrictions, Vice President Mike Pence confirmed yesterday, as the country shows “promising signs of progress” on driving down the spread of the Wuhan COVID-19 virus…“At the present moment, 16 states have released formal reopening plans,” Pence said at a White House press briefing…“States are beginning to make those plans and we’re encouraged to see so many states embracing the phased approach to reopening their economies that’s contemplated in our guidelines for opening up America again”…last week, President Trump unveiled broad federal guidelines that lay out conditions for parts of the U.S. to start relaxing strict lockdown and physical distancing measures in a 3-phase approach…before entering the first phase, the guidelines say that the number of cases, positive tests and reports of flu or COVID-19-like symptoms in a state or region should be trending downward…there should also be a “robust testing program in place for at-risk healthcare workers, including emerging antibody testing,” according to the guidelines…the White House coronavirus task force will speak with all U.S. governors today to discuss the nation’s efforts to ramp up testing capacity, Pence said…he added that 35,000 national guard have been deployed across the country to support the coronavirus response, which includes boosting access to testing…Trump later added “we’re very advanced in testing,” adding that new tests will be “coming out” to improve the capacity to test as well as the nation’s ability to process the tests…
3. Common Sense Saskatchewan gets it right again: Despite the fact COVID-19 has been much less of a problem in Canada than the United States, only 1 Canadian province so far has presented a plan to begin reopening its economy: Saskatchewan will begin inching back toward some semblance of normal life on May 4, the first day of the government’s “middle path” for salvaging the economy without stoking a surge of COVID-19 infections…on that date, medical services like dentists, chiropractors and optometrists will be allowed to resume, as will boat launches and fishing, according to the Re-Open Saskatchewan plan released yesterday by conservative Premier Moe…the plan, which could be adjusted depending on the course of COVID-19 in the weeks ahead, will then follow a plodding pace for 2 weeks…only golf courses would be added to the list before the May long weekend…but May 19 is slated to bring a wave of retail activity back to Saskatchewan, as purveyors of clothing, books, electronics and much more are allowed to reopen…that would also be the day residents can get their first professional haircut since mid-March…other businesses and services will have to wait, with no word on how long…the dates for bars, restaurants, gyms, theatres, casinos, bingo halls and swimming pools are marked “to be determined”…the same goes for daycares, which will be allowed to increase per-room capacity from seven to 15 children at a still-uncertain date…schools could be among the last to reopen…Moe said classes won’t be back in session in the coming weeks, and even the fate of the 2020-21 school year will hinge on the future course of the pandemic…“That will yet be a decision to be made,” Moe said…
4. Canada’s “one size fits all” solution of widespread lockdowns, even in rural areas with no COVID-19 issues in many instances, is accelerating the economic collapse in this country, and it’s also putting Canada at a further disadvantage to its largest trading partner where one-third of U.S. states have already announced plans for phased re-starts of their economies…business groups in British Columbia released an alarming survey earlier this week warning that 4 in 10 companies that have been forced (by government) to shut down due to the pandemic believe they will not be able to reopen – those are the type of numbers government officials and their health experts seem to be ignoring…still, Provincial Health Officer Dr. Bonnie Henry – a favorite of the left-wing mainstream media – said yesterday that B.C. would not begin to relax the most stringent pandemic restrictions until the province could not only flatten the curve of new infections, but bend it downward significantly…“Obviously I would like it to be zero (new cases) for a number of days, that is the aim, the goal, and ideally zero for many weeks,” she said…outside of the city of Vancouver, however, COVID-19 cases in most communities in British Columbia are very limited…Smithers, for example – the hub of B.C.’s exploration sector – has only 2 known cases of COVID-19, yet the same NDP restrictions that apply to Vancouver apply to Smithers and every rural area of the province…in many cases, governments’ “cures” for the COVID-19 pandemic are worse than the disease itself…this is certainly the situation in B.C. where there have been less than 2,000 reported cases…the public policy reaction is going to create an economic disaster that will take many years to fix…a more targeted approach made a lot more sense – Sweden, for example, was able to avoid implementing a lockdown…
5. The Dow is flat through the first 30 minutes of trading…the major averages are on track to post modest weekly losses due to a steep sell-off earlier in the week triggered by the collapse in Oil markets…U.S. consumer sentiment fell for a 3rd straight month (from 89.1 in March for 71.8), but by slightly less than expected, according to data released this morning by the University of Michigan…meanwhile, U.S. durable goods orders sank 14.4% in March, compared with expectations for an 11.9% drop…wild market swings have taken a toll on retirement savers…the average 401(k) balance plunged by 19%, to $91,400, in the 1st quarter of 2020, according to a new report by Fidelity Investments, America’s largest provider of 401(k) plans…in Toronto, the TSX has climbed 41 points, led by another gain in Gold producers…nearest key resistance for the Gold Index is 360…the Venture is unchanged at 466 after crossing above its 50-day SMA for the first time yesterday since the Corona Crash…on the CSE, Sona Nanotech (SONA, CSE) is holding steady in the low-to-mid-$1.90’s as investors await news of 3rd party validation of the company’s Rapid Response Lateral Flow COVID-19 test being prepared for a global rollout…CloudMD Software & Services (DOC, CSE) hit a new 2020 high this week of 63 cents and is currently unchanged at 60 cents…earlier this month the company reported that it has reached over 100,000 registered users combined on its CloudMD and MyHealthAccess telemedicine platforms…DOC has grown its platform of registered users organically and a large part of its customer acquisition has come from referrals from its network of doctors in Canada…patients on both platforms have easy access to the extended hours, 7-day week coverage provided by the CloudMD doctors…
6. Sign of the times: Target (TGT, NYSE) has seen a sharp increase in online sales, as shoppers try to limit time inside stores or avoid the trips altogether during the pandemic…since its fiscal 1st quarter began February 2, Target’s same-store sales have risen more than 7%…the gain, which compares with an increase of 1.5% in the fiscal 4th quarter, is the result of a doubling of its online sales, partially offset by declines inside its nearly 1,900 brick-and-mortar stores…in an interview with CNBC’s “Squawk Box”, Target CEO Brian Cornell said the company is trying to figure out if customers’ new shopping patterns are here to stay…“We are spending a lot of time trying to understand how the pandemic is going to change the future of how American consumers shop, how they live, how they work, the things that they value,” he said…“But it’s been really hard to predict week by week”…
7. WHO (controlled by China) is at it again: The World Health Organization yesterday prematurely posted a draft summary of a China-based trial (why?) that attempted to show that Gilead Science’s (GILD, NASDAQ) remdesivir did not improve patients’ condition or reduce the pathogen’s presence in the bloodstream, precipitating a drop in equity markets…Gilead responded in an email, “We regret that the WHO prematurely posted information regarding the study, which has since been removed. The investigators in this study did not provide permission for publication of results. Furthermore, we believe the post included inappropriate characterizations of the study. Importantly, because this study was terminated early due to low enrollment, it was underpowered to enable statistically meaningful conclusions. As such, the study results are inconclusive, though trends in the data suggest a potential benefit for remdesivir, particularly among patients treated early in disease. We understand the available data have been submitted for peer-reviewed publication, which will provide more detailed information from this study in the near future. There are multiple ongoing Phase 3 studies that are designed to provide the additional data needed to determine the potential for remdesivir as a treatment for COVID-19. These studies will help inform whom to treat, when to treat and how long to treat with remdesivir. The studies are either fully enrolled for the primary analysis or on track to fully enroll in the near future”…
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I’ll have to agree Jon, somehow Henry is being hailed as a hero, I beg to differ, why don’t they ask all of Vancouvers business’ Who have seen a nearly 150% increase in break ins and vandalism. Just like the old man Trudeau, the younger punk is giving Canadians the perverbial finger. Just shutup and listen .
Comment by Laddy — April 24, 2020 @ 11:04 am
Glad I’m not in Canada…go Trump!
Comment by MacT — April 24, 2020 @ 1:36 pm
Nice move by Daniel’s DRIO today, up 24% at $7.45 on NASDAQ, and CVX on the Venture up 13% at 44.5 cents…
Comment by Jon - BMR — April 24, 2020 @ 1:54 pm
MacT, wish we had a trump type, he’s the only one that’s going to fix this mess!
Comment by Laddy — April 24, 2020 @ 2:11 pm
British Columbia is going to become the Ecuador of Canada if the socialists running this province remain in power and continue to go against basic economic sense…keep in mind, they are also instituting a massive tax hike on the so-called “rich” – those earning over $200,000 a year – at a time when the economy is in its worst state ever…they will be driving wealth out of this province to friendlier jurisdictions like you wouldn’t believe (it has happened before)…on the COVID-19 front, media favorite Bonnie Henry obviously hasn’t done a cost-benefit analysis – of course she’s not an economist, but she should at least understand the negative health affects of massive unemployment, bankruptcies, etc…all for less than 1,900 cases of the virus (concentrated mostly in metro Vancouver) in a province of 5 million people…doesn’t want to follow the Saskatchewan approach until the “curve” not only flattens, as it has, but “bends downward significantly”…of course, the more Bonnie’s curve bends downward as the lockdown in this province continues, the more the economy spirals downward, downward, downward, right to the bottom of the Pacific…a colossal public policy mistake of historic proportions…only the naive think that government, which liberals/socialists have so much trust in, is going to be able to save everyone – it ain’t gonna happen…
This comes from a poll just released by Insights West:
“The emotional burden on individuals in our province has been dramatic, which is why we are seeing these kinds of numbers,” Steve Mossop, the President of Insights West, said in a release.
“To see one-quarter of the population not coping well, and the majority of us feeling more stress, anxiety and worry shows that this pandemic has impacted us far beyond the physical and financial level.”
Comment by Jon - BMR — April 24, 2020 @ 2:18 pm
Yeah, don’t forget about the minimum wage hike in june, I’m sure won’t help struggling small business when and if they reopen. Kamloops is growing and that’s because everyone is fleeing the lower mainland. I think once this is over change will occur, hopefully.
Comment by Laddy — April 24, 2020 @ 2:45 pm
It’s like ultra-liberals are sloths, they literally see everything upside down but think they are seeing correctly.
Comment by MacT — April 24, 2020 @ 3:38 pm
The ultra-liberals and ultra-conservatives both drive me crazy.
Comment by Danny — April 24, 2020 @ 4:12 pm
Well, does GDX retest support really quick?
Comment by MacT — April 24, 2020 @ 5:00 pm
It appears that all the job gains in Canada since 1986 have been wiped out.
More than 7.1 million unique applicants have filed for the Feds’ $2,000 monthly benefit (CERB) since applications opened on April 6, according to CRA and Service Canada publicly available data.
CERB had a budget of $24 billion, which was supposed to last for 4 months. The govt. says it has paid $22.4 billion in CERB benefits as of Thursday.
Is anyone keeping track of the money the Feds are dishing out left, right and center????? Budget deficit could easily exceed $300 billion, far beyond what was originally projected.
Job Gains Since The Late 1980’s In Canada Have Now Been Wiped Out
Comment by Jon - BMR — April 24, 2020 @ 5:49 pm
Imagine if a bill in the USA for $2k a month for adults for 4-6 months passes….if I’m required to take it so be it but I’ll turn it around and invest it…good golly…the amount of debt is insane already…
Comment by MacT — April 24, 2020 @ 5:58 pm
That’s scary Jon. A lot of those jobs may never come back. That’s why it’s so important to get this country moving again, albeit with as many safety precautions as possible. Not restarting soon may prove many times more lethal than the Coronavirus.
Comment by Dan1 — April 24, 2020 @ 6:01 pm
Deficits in the US and Canada are going to be massive. The long term implications are not going to be pretty.
Comment by Danny — April 24, 2020 @ 6:05 pm
The Canadian economy was running at a significantly slower pace (GDP) than the U.S. economy coming into the pandemic, Danny, due to resource sector policy, higher taxes, over-regulation, and investment leaving the country, so coming out of this pandemic the Canadian recovery will also lag the U.S., meaning our deficits will be harder to slay.
The trend higher in deficits in the U.S. will certainly be a boost for precious metals, so that’s the one positive…
Comment by Jon - BMR — April 24, 2020 @ 6:45 pm
The boost in deficits should be good for metals, agree on that. In 2019 the U.S. had a deficit/GDP ratio of 4.6% which is the one of the largest ratios ever in a non-recession year in the U.S. Trump likes to brag about the great economy in the US and that’s true the economy was doing really well. However it’s with borrowed money which a lot of people seem to ignore.
Comment by Danny — April 24, 2020 @ 7:26 pm
If we’re talking about borrowed money, Danny, Canada actually tops the list.
So by that standard of measurement that you are using, shouldn’t our economy be doing better than the U.S. economy? The explanation for Canada’s under-performance lies exclusively with bad policy choices in this country (high taxes, over-regulation, horrible resource sector management, low productivity). Yes, U.S. deficits have gone up under Trump, but primarily due to major tax cuts (individuals + corporate), plus much-needed new military investments (Canada gets a free ride there, but perhaps not for much longer). Trudeau’s deficits are of a different nature, more structural and problematic (liberal big government programs), similar to what his father did in the 1970s – the dollar plunged to historic lows and it took 15 years for Canada to fix things (under Chretien and Martin, with pressure thankfully from the Reform Party).
Here’s a key point concerning debt:
For the entire economy, at all public and private sector levels, Canada’s debt-to-GDP ratio (coming into the pandemic) was an unprecedented 350%, and it’s only going to shoot higher at a faster clip than in the U.S. based on recent developments. The 350% debt-to-GDP ratio compares to 360% for Spain and Italy, 340% for Greece, and 330% for the U.S., which has a stronger capacity to manage its debt.
On all fronts Canada has a more challenging debt problem than the U.S., and this certainly has negative consequences going forward:
The Great Canadian Debt Surge Comes Home To Roost
Comment by Jon - BMR — April 25, 2020 @ 11:00 am
Jon if you think the US is so much better than Canada why don`t you move there? You could easily write this letter from there.
Comment by TWills55 — April 25, 2020 @ 11:52 am
Typical cheap left-wing attack, TWillis55. I’m a proud Canadian, and I want to see this country succeed and prosper as an entrepreneurial, free enterprise economic powerhouse under smart government, not socialism. I want to see the U.S. succeed as much as possible, too – a strong, vibrant economy to the south is important for everyone.
For several years now we’ve been critical of the direction Canada has been going on multiple fronts, and the results are very much playing out as predicted. Things need to change. Unlike you, it appears, I don’t like the idea of Canada losing its economic competitiveness to the United States, of jobs and investment flowing south, which is exactly what has been happening due to dumb-ass polices.
Comment by Jon - BMR — April 25, 2020 @ 11:59 am
Well said Jon! I agree 100% and keep speaking what you believe and needs to be said as we are thus far (and barely) a free country. We have to continue and try to get this point across to those that have been so badly duped but still have an open mind deep down. Some will never believe as was illustrated in the above post to you but we need those types to show the ones with the open minds just how much they really don’t care about our country and the people who live here.
Comment by Murray — April 25, 2020 @ 12:42 pm
Jon, believe me, I am not a big fan of how Canada has been handling it’s finances, I think you know that. I am a big time fiscal conservative, that’s how I live my life and why my finances are in good shape, have never lived beyond my means. I am only pointing out the hypocrisy in Trump always congratulating himself for a great economy. Trump is not a true conservative.
I also appreciate that you allow differing opinions as you should (of course it should being done respectfully) as no right is more important than free speech. I may disagree with someone’s opinion but will always fight for their right to express it.
https://www.forbes.com/sites/chuckjones/2019/01/18/trumps-big-win-the-largest-budget-deficit-with-a-strong-economy/#6f48998549d1
Comment by Danny — April 25, 2020 @ 1:01 pm
I remember Morneau stating that Canada can print all this dough because our debt to GDP is so low we can afford to do it.. WTF is he thinking?? man we are so screwed…
Comment by Jeremy — April 25, 2020 @ 1:17 pm
Jon…as far as trudeau/ govt. bashing you are far too kind…
Comment by Jack Dullaard — April 25, 2020 @ 1:24 pm
Hi Jon,
I fully agree with you…I am also a proud Canadian, and want us to excel…..Maybe just to change up the context here today….Have you heard anything on the GGG.v pp closing? Seems to be a tad delayed, but under the circumstances these days, understandable…
TIA,
Frank
Comment by Frank — April 25, 2020 @ 1:45 pm
That reminds me of all people that said they would move to Canada if TRUMP was elected???,prosperity is one thing, if it’s not working we get rid of the bum, it’s pretty clear at least trump wants the little guy to succeed, not the case here in Canada.
Comment by Laddy — April 25, 2020 @ 1:59 pm
You state it well, Jon…
Comment by MacT — April 25, 2020 @ 2:18 pm
FYI, everyone: This is the kind of thing that’s happening in B.C. right now, and perhaps elsewhere, and it’s sad and sickening…
Global News
B.C. Woman With Disability Dies Alone In Hospital Due To COVID-19 Visitor Restrictions
The family of a B.C. woman with a disability is calling for an investigation after she died alone at the Peace Arch Hospital.
In life, Ariis Knight’s family says she defied limitations.
The 40-year-old had cerebral palsy and was non-verbal, but found her own way to communicate with her family and support workers.
“She had a full range of facial expressions,” her brother David Knight told Global News.
“She was able to answer yes or no questions not with her voice but with her eyes.”
Ariis was admitted to hospital April 15 with symptoms of congestion, fever and vomiting but did not have COVID-19.
Her support staff were not permitted access due to restrictions put in place during the COVID-19 pandemic.
“She was never given the opportunity to have someone speak up for her in her time of need,” said David.
Not long after being admitted, Ariis was put on end-of-life care, and died days later.
Her family alleges the hospital moved her to palliative care status without consulting them, and that Ariis couldn’t have consented, given her inability to speak.
David said he’s having difficulty processing how she felt alone in her final moments.
Under normal circumstances, support staff from the Semiahmoo House Society would have accompanied clients in hospital around to clock.
But since pandemic restrictions were put in place, the society says its access to clients as “essential visitors” has been both unclear and inconsistent.
“We need to have people in hospitals such as our support worker who was able to interpret what Ariis was thinking and what she wanted,” said society executive director Doug Tennant.
Tennant says he believes there are hundreds of similar cases across the province, where confusion about the rules has denied vulnerable patients access to their support system.
“We’re in a crisis time,” he said. “This is not the time to have a conversation that goes back and forth for weeks.”
Asked about the policy Thursday, provincial health officer Dr. Bonnie Henry said her “expectation” is that accommodations are being made.
“While I expect long-term care homes and acute care hospitals to make reasonable exceptions to visitor policies to support people with disabilities, I also trust the most responsible clinicians to make the decision about when exceptions are clinically necessary given each individual circumstance,” Dr. Henry added in a subsequent statement.
Tennant says there needs to be clear direction from the province and any ambiguity or room for interpretation could leave vulnerable patients with disabilities without vital support.
“Essential visitors includes anyone who is considered paramount to a patient’s well-being. In the event that communication with a patient cannot be facilitated, acute care staff would connect with family to access additional support for the patient,” said the health authority in a statement.
“In this case, medical staff determined that additional support for communication was not required.”
Tennant argues that it took his staff two years to learn how to communicate with Ariis and wonders how medical staff could make that determination without a support worker or family to interpret.
Ariis’ brother said the health authority had no right to make decisions for his sister.
“How can my sister tell somebody she’s in pain when she can’t verbalize and they don’t understand she can communicate in other ways?” he asked.
B.C. Woman With Disability Dies Alone In Hospital Due To COVID-19 Visitor Restrictions
Comment by Jon - BMR — April 26, 2020 @ 6:25 am