Goldman Told Clients to Go Long Copper a Day Before Price Plunge
(Bloomberg) – Sales officials of Goldman Sachs Group Inc., Risk Protection Fund, offered bets on US Copper Prices for the increase of US President Donald Trump’s tariff decision only one day before the market was registered the most.
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In a call with customers on Tuesday, Goldman suggested that Trump would continue with a 50% tariff on copper and according to people who are familiar with the issue, according to people who want to not discuss the private information, if the US copper prices increase by 11%, he proposed to receive short -dated call options.
In fact, the US President Wednesday after the afternoon, only the main traded copper format completely exempted from tasks, and the new York prices in a few hours of a limited tariff, which caused 22%.
That evening, Goldman’s commodity sales table sent a E -POSTA titled “No Copper Tariff. Mea Culpa”.
The wrong step from one of the largest and most respected banks in the commodities emphasizes how the tariff announcement caught almost the entire copper market with surprise. SEPERAL PEOPLE FASHED TO THE issue, including Goldman, including various risk protection funds and bank trade tables on Wednesday’s price collapse of nursing losses, he said. The price decrease was twice the previous record decline for the US contract on data dating back to 1988.
Other major banks were similarly blind, Citigroup Inc.’s sales staff send a message to customers on Wednesday morning and say, “Our commercial table is like buying ARB in copper (Comex, LME)”.
Call on Tuesday was the last of a series of proposals that Goldman called on to increase the US copper prices. Trump announced that in early July, copper tariffs would be 50% – twice the market expectations – but copper prices in the US rose only more than 28% of global prices on the London metal exchange.
Some customers argued that after signing a trade agreement with Indonesia, a large copper manufacturer of the United States, the price that spreads between the two markets should increase further. In a summary of the call sent to customers by Goldman sales officials on Tuesday, the Bank said that “full 50%tariffs” spread to 35%-40%.
