Friday, June 5, 2020

The Markets:
The Asian markets closed up across the board NIK closed up .74%  HSI  closed up by 1.66%  SHANG up .40%
Uk markets are currently trading in the green  from .23% to 2.22%
Our futures are currently  green DOW at 26573 up by 1.22% SNP at 3135 up by .80%   NDX up by .40% 


Precious Metals:

Gold is red at 1708  Silver is red at 17.92   Copper is green at 252  Platinum is red at 832
Brent 40.95  WTI  38

Favorite Currencies Forex Quotes

SymbolBidAskHighLowOpenChangeTime
 USD/IQD  1153.7000  1206.7000 1191.6000 1191.6000 1191.6000  -0.4000 00:21
 USD/VND  23264.0000  23267.0000 23246.0000 23246.0000 23246.0000  -0.4700 17:01
 USD/CNY  7.0898  7.0918 7.1135 7.0813 7.1094  -0.0195 05:02
 USD/KWD  0.3072  0.3082 0.3077 0.3076 0.3077  -0.0001 02:44
 GBP/USD  1.2626  1.2628 1.2689 1.2583 1.2594  0.0032 05:03
 USD/IRR  42000.0000  42210.0000 42097.5000 42097.5000 42097.5000  97.5000 06:03
 USD/IDR  14015.0000  14024.0000 14117.0000 13914.0000 14098.0000  -83.0000 05:03




Things in the News:

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Iraqi Articles:

Oil prices break the $ 40 barrier ... and 'keep an eye out' for Iraq

link 
Oil prices rose, on Friday, as traders awaited the indicators of a meeting likely to be held at the end of this week, during which major oil producers are supposed to discuss the possibility of extending the record oil production cut.  
According to a Reuters report by Nass (June 5, 2020), Brent crude futures rose by 20 cents, or half a percent, to $ 40.19 a barrel, as of 04:19 GMT, at the time they witnessed WTI crude oil futures contract increased by 8 cents, or 0.2 percent, to $ 37.49 per barrel.  
Brent rose nearly 14 percent this week, while West Texas Intermediate crude rose about 6 percent, leaving indicators on the right track for a sixth week of gains.  
  
The increase came due to lower production, amid signs of an improvement in fuel demand, as countries began easing the closures linked to the emerging Corona virus crisis.  
  
A source in the "OPEC" and a group of Russian-led allies known as "OPEC +" said that they would meet on Saturday to discuss extending the production cuts, Algerian newspaper Al-Nahar reported on Friday.  
  
Earlier, three sources in "OPEC +" said that a video conference would be held this week, if Iraq and others agreed to reinforce their commitment to reduce current production.  
  
Edward Moya, chief market analyst at OANDA, said that oil prices are heading towards their sixth weekly rise, but the gains have diminished as traders take the possibility of a full commitment to Iraq to cut supplies "with a pinch of salt."  
  
"There is still the possibility that they can extend the cut deal to three months, but energy dealers will be extremely skeptical that the commitment will remain high beyond July," Moya added.  
  
Russia and Saudi Arabia, which are two of the largest oil producers in the world, want to extend the production cut of 9.7 million barrels per day until July.  
  
The "OPEC +" meeting was expected to take place on June 4, but a delay took place around it amid talk of a weak commitment to reduce production by some producers.  
  
"The growing fear is not only that a deep cut extension deal is not reached, but (some) producers may slacken on their current heavy commitment. This will ultimately lead to higher production in the coming weeks," ANZ Research said in a note issued by the analyzes. .  
  
And if "OPEC +" fails to agree to renew the current production restrictions, this will mean that the reduction may fall to 7.7 million barrels per day from July to December, as agreed in advance.  


Standard & Poor's: Iraq is going through unprecedented economic risks
Standard & Poor's credit rating agency said that Iraq is going through unprecedented economic risks.
The agency added in a report that Iraq is striving to abide by the agreements to reduce oil production approved by the OPEC group to restore balance to world oil prices, but it is in urgent need of oil revenues in light of the Corona crisis and the fight against ISIS. The agency quoted the acting oil minister, Ali Allawi, as saying that Iraq would promote oil production cuts, despite the severe financial constraints it faces by addressing technical issues with foreign oil companies. 

The US Secretary of State anticipates the 'Strategic Dialogue' with a pledge on Iraq

link
US Secretary of State Mike Pompeo once again congratulated Iraqi Prime Minister Mustafa Al-Kazemi for his assumption of the new Iraqi government.  
"I would like to start by warmly welcoming Prime Minister Al-Kazemi and congratulating him on the new Iraqi government and the peaceful transition of power on behalf of the entire coalition. We are all committed to your success in support of the permanent defeat of the organization," Pompeo said, according to a State Department statement. ISIS. "  
Pompeo also praised during a speech yesterday, Thursday, at the ministerial meeting of the International Alliance to Combat ISIS, held in the American capital, Washington, on the process of the peaceful transfer of power in Iraq.  
Pompeo added, "We participate in the financial burden that ensures the immediate recovery of Iraq," adding that "the United States pledged last year $ 100 million to the main stabilization program that the coalition is implementing in the liberated areas."  
The US Secretary of State expressed his aspiration to "deepen the partnership with the people and the Iraqi government, through a series of discussions, especially through the strategic dialogue between Iraq and the United States," which will begin later this month.  
Pompeo added that accomplishing the victory over ISIS demonstrates the value of the alliance "and stresses the commitment of the United States to lead its allies and partners towards shared victories."  
"But our battle against ISIS will continue in the foreseeable future. We cannot rest. We must continue to get rid of ISIS cells and networks and provide stability assistance to the liberated areas of Iraq and Syria," Pompeo added.  

A deputy is likely to vote on the vacant cabinet and discuss the borrowing law tomorrow

Member of Parliament, Ali Saadoun Al-Lami, suggested that the parliament session be allocated tomorrow, Saturday, to vote on the rest of the cabinet, in addition to discussing the borrowing law.
Al-Lami added, in a press statement, that "the data, among which the Speaker of Parliament has received a list of the names of candidates for the vacant ministries, indicates that the Saturday session will include voting on the rest of the cabinet, in addition to discussing the issue of the law that was sent from the government to authorize internal and external borrowing." .
Al-Lami indicated that "Parliament is now continuing its work during this period, because it is required to end the election law and vote on it, and after that the President of the Republic ratify it and publish it in the Official Gazette," noting that "an upcoming meeting will be held between the Legal Committee and the heads of the blocs to resolve the issue of multiple circles in a law The election".

Al-Fateh: Al-Kazemi will present a semi-annual budget to start after, with a plan that includes 2021 to activate the idle factories.

Today, Thursday, al-Fath al-Muhammad al-Baldawi, affirmed that the government of Prime Minister Mustafa al-Kazimi will present a semi-annual budget to arrange salary conditions, and then proceed with a comprehensive economic plan for 2021 aimed at activating idle factories and developing investments.
Al-Baldawi told Al-Ikhbaria that “Al-Kazimi promised the parliament to set a budget that guarantees that salaries of employees or retirees from all groups will not be deducted.” In 2021, the goal is to activate factories that have been idle for years to restore (Made in Iraq) investment development with the participation of the private sector. "
 He added that "Parliament demanded the Prime Minister during yesterday's session to present the budget and develop an integrated plan against Corona and the involvement of Parliament in strategic decisions, as well as the Prime Minister demanded not to rely on external loans and withdraw money from banks temporarily to pay salaries in the coming months."
Prime Minister Mustafa Al-Kazemi came after a government program that he presented to the people and promised him in the fundamental reforms in the political process and state building, as well as many promises in the forefront of which are holding early elections and eliminating corruption and corrupt people.

Parliamentary criticizes the option of external borrowing: We need Iraqi dinars, not foreign currencies


The Deputy for the Block of Walkers, Inaam Al-Khuzai, called on Thursday, Prime Minister Mustafa Al-Kazemi, to avoid external borrowing, pointing out that financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget.  
Al-Khuza’i said, in a message addressed to al-Kazemi, which NAS received a copy of (June 4, 2020). The reasons for the external borrowing law are the decline in oil prices, and this decline is not surprising, and Iraq has been living with it for years due to the fluctuations of oil prices, both low and high. She added, “Consequently, there is no need to mortgage the country’s economic and financial resources abroad due to the volatility of oil prices, especially since prices are experiencing a tangible recovery after touching the $ 40 per barrel barrier recently due to the commitment of major oil producers to control production and start global economic activity in coexistence with the Corona pandemic and gradually move the economic sectors.” .  
Al-Khuza’i explained, “The second reason for abandoning external borrowing is that the budget does not need cash (in foreign currency). Rather, there is a need for (Iraqi dinars) to bridge the financing gap until prices recover and maximize other government’s financial resources,” noting that, “The government directs External borrowing depends on Iraq’s fate to international wills and a serious threat to its political, economic and social security, and instead, internal borrowing should be approved by tracking the financial flows flowing from Iraqi banks (Rafidain and Rashid and the Iraqi Trade Bank) and other private banks, and the central bank will support these banks as It happened in 2016 and 2017.  
The representative pointed out that “financial institutions operating in Iraq can be persuaded to secure good sums to supplement and finance the budget, until oil prices improve and pay off all domestic obligations and debts without harming the sovereignty and political and economic future of Iraq,” stressing, “The government’s need to maximize revenue Non-oil, eliminating pockets of corruption, waste ports in state resources, such as border ports and huge revenues, real estate of the looted country, opening a file (debts owed by communication companies), and Iraqi money abroad, and other abundant financial resources, not immediately resorting to easy solutions ( External borrowing) and risking the future of the country and the citizen.
NO CBI 
NO ISX

DinarGuru.com
6-5-2020   Newshound Guru MilitiaMan   Article:   "After Coming Under Heavy Criticism...The Central Bank Stops The Currency Auction"  Now add in the meeting with Alak and the President on financial ongoing's. Then think about the upcoming meetings to vote on Cabinet, then add in the ISX is  scheduled to open again on Sunday, then there is the SFA for the 10th - 11th. All the talk about the borders, taxes & tarrifs, fees all being electronic, the contracts adjusting for shipping costs by 07/01/2020 need to be in place by then. Those things need an international rate and pronto!! The convergence is astonishing! imo ...
6-4-2020   Intel Guru Footforward   ...at this point...In my opinion, this should happen in June. They want to do a ton of things economically July 1, and they need an RV for all of it

6-4-2020   Newshound Guru Adam Montana  These topics will get you up to speed on "the rest of the story" quickly:
1.  Kazemi-Kazammi is not a Kurd, he's not "one of them", but the Kurds are supporting him. This has monumental potential:
2.  Iran has lost their power. The "Iran factor" that has held Iraq back in the past is just that... the past.
3.  Kazzami has reportedly made his picks, and Parliament should rubber stamp them next week. This is progress...They may not vote every one of them in, but 80% will be enough to move forward.
4. ...Parliament is working...
Life is good, things in the desert look positive...

6-4-2020   Intel Guru MarkZ  [via PDK]  Iraqi contacts are still looking for Saturday Morning and still believe we are right in the middle of it. One contact is diplomatic and one works in the finance ministry. A couple contacts are business contractors…one from Australia , and they are working in Iraq. [Are you looking for RV tomorrow?]  Not tomorrow…  I am looking at the next days or week or two…  Things are definitely ramping up.

6-4-2020   Intel Guru Footforward   RV won't ever be on a Friday...Not in Iraq...Friday is their Holy Day there. Nothing happens on that day.  [so what is a good day for the VND?]  ...really any day. Likely not a Friday either...

6-4-2020   Newshound Guru Jeff  ...there's two things they got to do for the rate change. - 7 ministers of the cabinet. - Complete that agreement with Kurdistan and sign off on it.  They're most likely to complete those the same week.  The reason why they didn't do it today, it's real simple.  It's because they have a rate change date already set and scheduled.  It's done...the last remaining items they're theoretically the linchpin for the rate change.  What they're going to do is finish these items in closer proximity to the timing of the rate change...when you see these items they are confirmation that the rate change is about to happen...you're right on the edge of the rate change.  This rate change is not going into July.  It's happening in the second half of June.  The date is right in front of your eyes. 

6-4-2020   Newshound Guru Adam Montana   ...After a series of unsuccessful attempts at appointing a Prime Minister, Kazemi (RV Kazammy!!!) is approaching only two short months in office, but he's seriously kicking butt!  We don't have an HCL agreement (yet), so we don't have an RV. But we are getting close. Kazammi is possibly the first political figure in a position to have a real chance at getting the HCL to pass. One of the reasons is stated on Wikipedia fairly well:  Quote:  "Al-Kadhimi was a vocal opponent to the dictatorship of the Saddam Hussein regime.[3] He left Iraq in 1985 to Iran then Germany and settled in United Kingdom and lived in exile for several years, yet is not affiliated with any of the Iraqi political parties."  The HCL is a VERY polarized topic. In order for it to come together, a couple of opposing parties have to agree on it... and a neutral party as mediator is the best way to go.  That's our guy Kazzami!

6-4-2020   Intel Guru MarkZ   [Iraq also said yesterday they were going to not float the new rate. that would manage it.]  that is how I understand it. Managed and not float. Fixed to an asset standard. That is a good indicator for us. 

Catnip's Corner:

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ARTICLE 1 (from PM Kadhimi's website; posted only on Arabic side, not on English side)

Prime Minister Mustafa Al-Kazemi meets with a number of families of the martyrs of the protests

The Prime Minister, Mr. Mustafa Al-Kazemi, met today, Thursday in the governmental palace, with a number of families of the martyrs of the protests, especially those who were assassinated during the past period.

Al-Kazemi listened to details provided by the families of the martyrs about the circumstances of the assassination of their children, the suffering they are going through, and asked to be considered (martyrs for the homeland).

Prime Minister Mustafa al-Kazemi said: Iraq has gone through difficult stages, and there are continuous challenges at all levels, and we have regretted on the security side, cases of assassinations and disappearances of citizens, by armed parties, but we need patience and careful and professional investigation to ensure justice.
He added: Justice for the realization of the right is essential, but justice acquires a broader character if its goal is not to allow the repetition of these violations, so we are facing a historical action, for the sake of our people and for the future.

Al-Kazemi stressed that the trait of treachery is not a characteristic of Iraqis, and that the use of physical liquidations belongs to the thought and style of the former dictatorial regime, and that is what we will never allow.

Al-Kazimi indicated during his speech that he directed the concerned authorities to open detailed criminal investigations of the assassinations, and that he is personally following these investigations, promising the families of the victims that the blood of their children will not be in vain, and that the law will be censored from all those involved in the blood of Iraqis.

Al-Kazimi noted the formation of an independent fact-finding team, according to the ministerial curriculum approved by the parliament, on all the events that have taken place in Iraq since October 2019, and the accompanying violence that led to the martyrdom and wounding of Iraqi demonstrators and security forces, and that these investigations began To draw up an accurate list of martyrs, and another for the wounded to be covered by the state, and to compensate their families.

Media office of the Prime Minister
4- June -2020

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ARTICLE 2 (from Government of Iraq twitter account)

Government of Iraq - الحكومة العراقية @IraqiGovt
·6-4-2020 around 9 am Eastern

The @IraqiSpoxMOD holds a joint press conference with PM @MAKadhimi'’s adviser to brief the media on Operation #IraqHeroes #VictoryOfSovereignty and other domestic developments.

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ARTICLE 3

Deputy: The 2020 budget will be monthly or quarterly, concerned with ruling salaries and paragraphs
4/6/2020 13:51 • 2 times read
[Baghdad-where]

The deputy of the Alliance of Raiders Riyad Al-Masoudi assured, on Thursday, that the 2020 budget will be a monthly or quarterly budget and will be concerned with paying the salaries and ruling items such as electricity, health and trade, noting that the previous government has lost nearly three trillion of the volume of internal revenues.

Al-Masoudi said that "Al-Kazemi’s government will not be able to complete an integrated budget for one year due to its inability to borrow from abroad due to the pandemic that has ravaged the global economy and also cannot borrow large funds from Iraqi banks to fill its great deficiency."

He added, "The government will resort to achieving a monthly or quarterly budget that is concerned with the payment of salaries and the ruling paragraphs, such as health, electricity, and trade, to cover the expenses of the ration card items."

Al-Masoudi explained that “Al-Kazemi’s government will focus most of its attention on oil revenues at current prices in the oil market, as well as on internal revenue through its full control of tax collection, border ports and other internal resources obtained by the state,” noting that “the Abdul Mahdi’s government has lost nearly Three trillion of internal revenue. ”

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ARTICLE 4

Disclosure of the final copy of the names of candidates for vacant ministries
6/4/2020 20:55
[Baghdad-where]

A parliamentary source revealed the final version of the names of candidates for the seven vacant ministries in the government of Mustafa Al-Kazemi.

The source stated in a statement that Ayna viewed a copy of it that "the candidates are [Fouad Hussein] for the Kurdistan Democratic Party for the portfolio of the Ministry of Foreign Affairs, [the governor of Salar] for the Kurdistan National Union, for the portfolio of the Ministry of Justice, and [Hassan Nazim] for the Ministry of Culture, Tourism and Antiquities, and [Evan Faek] to the Ministry of Immigration and Displacement.

He pointed out that the list included "the nomination of [Ihsan Abdul Jabbar] for the portfolio of the Ministry of Oil, the nomination of [Muhammad Abdul Karim] for the Ministry of Agriculture, and the nomination of [Alaa Jubouri] for the Ministry of Trade."

The office of the Speaker of the House of Representatives announced today, Thursday, in a brief statement, that Speaker of Parliament Mohamed Al-Halbousi received the names of candidates for the cabinet booth of the vacant ministries and their CVs.
The names are likely to be put to a vote in the House of Representatives during next Saturday's session.

It is noteworthy that the adviser in the Presidency of the House of Representatives, Shaker Hamid, revealed yesterday in a press statement that the Council was notified that the Prime Minister had completed the names of the candidates for the vacant ministries, and the CVs of the seven portfolios will probably arrive soon.

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ARTICLE 5

Al-Tamimi demands a meeting between the Finance Committee and Al-Kazemi to know the government's fiscal and monetary policies
4/6/2020 18:40
[Baghdad-where]

Member of the Finance Committee, MP Magda Al-Tamimi, officially requested that the Finance Committee meet with the Prime Minister, the Minister of Finance and agents, as well as the Governor of the Central Bank and the general managers in the Budget and Accounting departments. This is a confirmation for the second time of her request a week ago.

Al-Tamimi said in a statement, "The meeting comes to discuss a number of important issues, including identifying the government's financial and monetary policies during the current and future stage, as well as proposing several axes related to citizens' lives from the payment of salary dues and making decisions regarding wages, contracts, and lecturers, and its plan to employ the unemployed ".

Al-Tamimi stressed "the necessity of holding the meeting as soon as possible to unify the visions between the legislative and executive authorities in preparation for reaching a comprehensive reform paper and not only relying on austerity policy in expenditures, but more importantly is focusing on the reform paths and solving the problems of citizens related to their jobs and entitlements."

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ARTICLE 6

Valid for the Minister of Finance: economic remedies should not affect layers of limited income and salaries
4/6/2020 14:18
[Baghdad-where]

The President of the Republic, Barham Salih, received today, Thursday, the Minister of Finance Ali Abdul Amir Alawi.
During the meeting, the President of the Republic affirmed in a presidential statement on "the necessity of undertaking appropriate reforms and combating corruption, and working to rationalize government spending and preserve public money, and to develop and diversify the sources of the economy while the country faces the new Corona epidemic, stressing that economic remedies are out of the current conditions It should not affect the low-income classes, employees and retirees and their life obligations. "

He added, "It was also emphasized that the outstanding issues between the Federal Government and the Kurdistan Regional Government should be resolved in accordance with the constitution and legal frameworks in a manner that preserves the rights of all citizens."

The statement continued, "The meeting also discussed discussing the necessary means to support Iraq to face the current financial crisis and the plans and measures required to overcome it, and the importance of uniting efforts and solidarity among all to reduce the deficit in the public budget in order to achieve social justice and economic stability for all Iraqis."
In turn, the Minister of Finance reviewed the procedures followed by the ministry in dealing with the economic and financial conditions, and what the current circumstance requires in concerting efforts to overcome the current stage and its implications for public life.

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