Author: admin

Weeks after Alibaba founder Jack Ma stepped down from SoftBank’s board, the founder and embattled chairman of SoftBank, Masayoshi Son, is returning the favor.

At the top of the company’s annual shareholder’s meeting, Son announced his plan to step down from the board of Chinese e-commerce giant Alibaba.

The decision comes as SoftBank faces pressure to sell off more of its “crown jewels”, the massive equity stakes it has in major companies, like Alibaba.

Son’s resignation brings to an end a 15-year era where Son, representing Japan, and Ma, representing China, had cemented their close personal friendship and trust as directors of each other’s companies. Son has been on Alibaba’s board since 2005, five years after SoftBank became the first major company to buy a large stake in the then-small Chinese online retailing startup.

Ma joined SoftBank’s board in 2007 as Alibaba was first becoming known in the West as the “Amazon of China”. Son told the press and his audience that the decision to step down was his alone, and that his relationship with Ma and his confidence in the company remained unshaken.

The chairman probably has enough on his plate with trying to guide his troubled company through the worst crisis in its history, one that many short-sellers are betting could lead to its ultimate demise.

Summary:

• US sees ~45k jump in new cases reported yesterday
• Global total nears 10 mil
• Persian Gulf virus total tops 400k
• India to carry out virus ‘survey’ of New Delhi
• Russia sees ~7k new cases, 92 deaths
• Dr. Scott Gottlieb: “complacency” driving new US outbreak
• Eiffel Tower reopens Thursday

* * *

Thanks to the “complacency” of young (or young-ish) people across the south and the west of the US, the number of newly confirmed coronavirus cases topped its late-April peak of 36,400 new cases reported in a single day, with more than 45,000 new cases reported yesterday according to the latest tally from NBC News, up from the 39k we reported Wednesday evening.

All coronavirus data are reported with a 24-hour delay, so the record spike really happened on Tuesday. But the final numbers are in, and the picture is bleak. Seven states, including California, Florida, Oklahoma and Texas, reported record tallies of new cases yesterday, with the average age of hospitalized patients falling to 35, from 65 during the April peak in the northeast.

As Florida and Texas emerge as the two biggest ‘hotspots’, Disney has decided to delay the reopening of its theme parks in the US following a surge in cases in California and Florida, both of which reported record numbers of new cases yesterday. What’s more, Disney is pondering whether to push back the release of its live-action “Mulan” blockbuster, which would have been the first major film release with movie theaters back open.

New York, NJ and Conn. have all said they’ll be enforcing quarantine orders targeting travelers from out of state, and police will definitely be stopping cars with out-of-state license plates to see if they’re violating quarantine orders: If they are, they can expect a hefty fine, after the states have seemingly had a change of heard following Cuomo’s initial claim that the order wouldn’t be enforced.

One health professional warned that the outbreak is likely the result of younger people getting “complacent” – going to bars and other crowded public places without taking proper precautions.

“People got complacent, And it’s coming back and biting us, quite frankly,” according to the CEO of the Houston Methodist Hospital, who spoke to reporters as the health-care system in the city emerges as perhaps the most vulnerable in the country, as a new wave of COVID-19 patients flood the city’s hospital and ICU beds, which are nearly at capacity.

According to the Associated Press, governments from NY to Melbourne are taking steps to prevent a resurgence, or get their outbreak under control.

In India, authorities are launching a massive coronavirus survey, perhaps the most ambitious the world has seen since the dawn of the pandemic, as the government tries to get a handle on New Delhi, both the nation’s capital and one of the areas most impacted by the virus. The government will survey the city’s entire population of 29 million, with everyone being tested and facing a brief survey by July 6. That’s pretty, ambitious; Beijing managed to test millions of people in a week during its latest outbreak.

Per Al Jazeera, the new plan was announced Wednesday after the sprawling capital became the worst-hit city by the pandemic in India with 70,390 cases, exceeding the financial capital of Mumbai, its only real competition. 3,788 new cases were confirmed over the last 24 hours in Delhi, the government announced on Thursday, compared to 1,118 in Mumbai. India on Thursday registered another record high of 16,922 cases, taking the countrywide total to 473,105, leaving it still in fourth place behind the US, Brazil and Russia.

Latin America and the US are the two biggest contributors to the growing global coronavirus tally, but two other regions – the Middle East and Africa – are coming up in the rearview mirror.

COVID-19 cases in the Persian Gulf region have surpassed 400,000, according to Johns Hopkins data, as the number of daily cases reported climbs as governments start to ease restrictions. Africa’s cases have surged past 336,000 on Thursday, following a 10k increase in infections announced Wednesday evening.

The UAE, home of Dubai and other popular international cities, announced that it would finally be lifting a nightly curfew in place since mid-March as the number of cases it’s reporting every day has fallen by 2/3rds.

The global outbreak is on track to top 10 million next week, the World Health Organization has said, warning that the virus has yet to peak in North and South America. As of Thursday morning in the US, more than 9.4 million people around the world have been diagnosed with COVID-19, with more than 4.7 million recovered, and nearly 483,000 fatalities, per JHU.

Indonesia, a country that drew the world’s attention during the early days when its government acknowledged that it was actively hiding evidence of the virus, has finally seen its case total top 50k, though the government insists that improved testing is responsible for the recent uptick in newly confirmed cases.

Russia confirmed 7,113 new cases of the novel coronavirus, pushing its tally to 613,994.

The Eiffel Tower on Thursday welcomed back visitors after the coronavirus outbreak forced the Paris landmark into its longest closure since WWII.

Before we go, Dr. Scott Gottlieb appeared on Squawk Box this morning to comment on the latest record numbers out of the US. He said more states are seeing troubling data on new cases and hospitalizations, including Georgia, South Carolina, North Carolina, Arkansas and others.

“This isn’t confined to a handful of states anymore,” the Dr. said. “It’s going to be difficult now to get this under control.”

“It’s going to be difficult now to get this under control. They still have an opportunity,” says @ScottGottliebMD on the current #coronavirus hotspots. “Whatever these states do right now is really going to help them in about two weeks.” pic.twitter.com/dzX1T27ya2

— Squawk Box (@SquawkCNBC) June 25, 2020

Finally, Russia confirmed 7,113 new cases on Thursday, pushing its tally to 613,994, as the daily counts are slowly coming down. Only 92 deaths were recorded, bringing the death toll to 8,605. To be sure, critics claim Vladimir Putin’s government is deliberately undercounting deaths.

Authored by Nick Corbishley via WolfStreet.com,

Yesterday, my wife and I took our first walk to the beach since Spain entered lockdown almost three and a half months ago. From there, we meandered through El Born, which together with Sant Pere and Santa Caterina, forms one of the four barrios that make up Barcelona’s old town. El Born’s shaded cobbled streets and plazas are — or at least were — ground-zero for Barcelona’s bustling tourism trade. But that trade has been decimated by the virus crisis, and the streets of El Born are half empty, many of the hotels are still closed and an eerie quiet pervades the once-thronged plazas.

In some parts, there are already visible signs of crisis. As in the darkest days of Spain’s last housing crisis (2010-13), boarded-up shops, bars, restaurants and other street-level businesses are everywhere. In one narrow three-block street called Flassaders, I counted nine shuttered businesses. Eight were already up for rent. Here are some samples:

Spain’s biggest property website, Idealista, is currently advertising 244 retail properties in El Born, Sant Pere and Santa Caterina. They range from tiny little shops on tucked-away alleyways to sprawling bars, restaurants and stores on some of the barrio’s busiest thoroughfares.

After years of relentless gentrification, El Born was already in trouble before Covid arrived. Retail rents had reached levels that many businesses could no longer pay. Petty street crime, much of it targeting tourists, had become rampant, and in some cases violent. And many tourists had begun to explore other neighborhoods such as Gracia and Sant Antoni. The only way for shops and other businesses to pay their rents and still survive was to target big-spending foreign tourists. But now they’ve gone. And when they come back, it will be in smaller numbers and shallower pockets.

Facing the prospect of continued sluggish sales, many local traders in El Born, rather than taking out more debt to pay their rents, have simply shut up shop. Yet despite the glut of properties on the market, the rents being advertised are still absurdly high, suggesting that many of the property owners — most of them well-heeled local families — haven’t quite accepted that market conditions have changed dramatically.

In Spain’s last financial crisis, El Born, and Barcelona’s Gothic Quarter as a whole, escaped the worst of the fallout, thanks to the rapid recovery and resurgence of the tourism industry. This time, it’s the travel and tourism industries that have been sledgehammered by the covid-inspired lockdowns, travel bans and other restrictions, leaving barrios like El Borne and Sant Pere on the front lines of this new crisis.

According to Barcelona Comerç, 91% of the city center’s shops have reopened. In a recent survey, around half of the association’s members said their sales have fallen by up to 25% while another a quarter said that sales had dropped by 50%.

So far, just over 3% of local traders in the city center have shut their stores, but this is likely to soar to 15% soon, since many stores have only stayed open to liquidate their stock. And “this figure could rise to 30% if structural measures are not taken to help the sector out,” says Barcelona Commerc’s president, Salva Vendrell.

The Spanish government has so far offered €4.25 billion in financial assistance to Spain’s tourism industry, mostly in the form of emergency loans. It pales in comparison to the €43 billion in forgone tourist euros already clocked up as a result of the crisis.

And the tourists have still not arrived.

On any normal Summer’s day, in any normal year, Barceloneta Beach, normally one of Europe’s busiest beaches, would be heaving with tourists — so much so that most Barcelona residents stay clear of the place. But this year is no normal year. I took this photo a couple of days ago:

Also, the day on which the photo was taken — June 23 — was no normal day. It was the eve of Saint John the Baptist Day, which is a public holiday in Catalonia. Normally, in the evening tens of thousands of Barcelona residents converge on the city’s beaches to usher in the Summer by downing copious volumes of alcohol, sitting around bonfires and letting off fireworks and firecrackers with the sort of reckless abandon that bureaucrats in Brussels are determined to stamp out.

This year, thanks to the novel coronavirus, the city’s beaches were closed to the public. So, many people arranged to spend the holiday in beach towns dotted up and down the coast, hopefully not taking the coronavirus with them. This partly explains why the streets of Barceloneta looked like this yesterday:

But there’s also the fact that Barcelona, like so many other parts of Europe, is suffering its worst ever tourism drought. With its borders tightly sealed, Spain registered zero tourist arrivals in April. In May, it received about 43,000 visitors, down 99.5% from last year.

In seven days’ time, the Spanish government will finally reopen Spain’s borders to international tourism. But travelers from 54 nations, including the U.S., Russia and Brazil, will probably still be barred from the bloc. And cruise ships will be banned from docking at Spanish ports for at least the whole of the summer.

Of the remaining nationalities that can travel to Europe, no one knows just how many will actually come. Some of the business owners I’ve spoken to are not exactly optimistic.

“We’ll be lucky if we get half the normal number in July and August,” says the owner of a small cafe in Barceloneta that specializes in fine cakes and sandwiches. This summer, she says, is now “all about damage control.”

Many Catalan business owners are hoping the domestic market will pick up some of the slack. But they’re not holding their breath. Despite the charm offensive being launched on all fronts by Catalonia’s regional government to try and lure holiday makers from other parts of Spain, with the slogan “Cataluña es tu casa” (Catalonia is your home), Catalan businesses know that most Spaniards still remember that roughly half of the people of Catalonia wanted to declare independence from Spain just three years ago. Those Spaniards who still hold a grudge will choose to spend their vacation bucks elsewhere.

That means that Barcelona — and many places like it in Europe — is about to have its quietest summer for many a year.

For many local residents who have had to put up with all the externalities of unfettered mass-tourism (myself included), it will probably make a welcome change. But for those whose jobs, businesses and rental income depend on tourism, the pain has only just begun. And it’s likely to end up affecting even those who are currently enjoying the idyllic — yet still slightly eerie — sight of quiet streets and empty beaches.

*  *  *

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German payments company Wirecard filed for insolvency proceedings on Thursday, one week after auditors refused to sign off on accounts due to a $2.1 billion financial hole, reported Reuters. 

A statement from the company warned about over-indebtedness as the primary reason behind applying for insolvency in Munich, Germany. There’s also a consideration by Wirecard management to apply insolvency proceedings to its subsidiaries.

• MANAGEMENT BOARD OF WIRECARD AG HAS DECIDED TODAY TO FILE AN APPLICATION FOR OPENING OF INSOLVENCY PROCEEDINGS FOR WIRECARD AG WITH COMPETENT DISTRICT COURT OF MUNICH (AMTSGERICHT MÜNCHEN) DUE TO IMPENDING INSOLVENCY AND OVER-INDEBTEDNESS.
•  WIRECARD AG – IT IS CURRENTLY EVALUATED WHETHER INSOLVENCY APPLICATIONS HAVE TO BE FILED FOR SUBSIDIARIES OF WIRECARD GROUP.

Wirecard shares trading on the Frankfurt Stock Exchange plunged by more than 80% Thursday morning. They have lost more than 96% on a year-to-date basis. Most of the losses began last week when Ernst & Young refused to sign off on 2019 accounts, which then resulted in the resignation and arrest of CEO Markus Braun. 

The quick death of Wirecard 

With shares suspended in Frankfurt –  500 million euros of bonds due 2024 fell to a record low of around 10-12 cents. 

The German-based payments company collapsed about two years after it joined Germany’s DAX blue-chip index. Before whistleblowers exposed the company for fraud in early 2019 – the company had a peak value of $28 billion. 

My prediction Tuesday that Wirecard could become the first CDS credit event in Europe this year now looking pretty good!

(um, not that this one took any particular impressive foresight… )https://t.co/IgXBrNxGkx pic.twitter.com/hOBKIyQx0Y

— Robert Smith (@BondHack) June 25, 2020

The collapse of Wirecard is an embarrassment for Germany and regulators who failed to investigate what appears to be one of the country’s worst-ever accounting scandals. 

“The Wirecard scandal did not come out of the blue,” said Florian Toncar, a member of parliament for the business-friendly FDP. “It’s a mystery to me why the finance minister and BaFin did not shed light on the matter much earlier.”

The Munich prosecutor’s office said: “We will now look at all possible criminal offenses” for Braun. 

The next big question for Wirecard is that if it can retain licenses with Visa, Mastercard, and JCB International, through which the company’s banking segment issues credit cards. If the $2.1 billion is not found – credit card companies could revoke the company’s licenses.

As recession and pandemic overwhelm the Western world, the consumer is in rough shape and has been forced to reduce costs to weather the economic storm. This means some have had to give up Chipotle burritos and Shake Shack burgers for canned meat. 

Significant consumer shifts are underway in the Western world, and other places as a global downturn will persist through year-end, without forming a V-shaped recovery. Bloomberg notes the consumption of canned beef is exploding: U.S. sales surged more than 70% in the 15 weeks ended June 13. A similar story is playing out in parts of Europe and Asia. 

“At first, people were loading up on pantry staples with a long shelf life during lockdown conditions. Then, shortages of some fresh meat supplies, especially in the U.S., also helped to drive sales. Now, the economic downturn is underpinning demand.

“There’s the obvious factor of income here. With millions thrown out of work in the last few months, consumers are looking for a way to cut back on grocery bills, and they’re trading in fresh meat for canned varieties. But there’s also something deeper going on — a return to comfort food and nostalgia in troubled times,” Bloomberg says. 

Some meat processors of canned meat are reporting they’ve been caught off guard with several months of massive demand. 

Kasper Lenbroch, CEO of Tulip brand at Danish Crown Group, Europe’s top meat processor, said: 

“Even I thought it could be difficult to increase our sales of canned meat to more than what we expected,” said Lenbroch. “It’s not very often when you’re in food that you can see traditional products like these grow as much as they have done right now.”

He said sales of Tulip Pork Luncheon Meat in 120 different global markets are expected to rise 25% this year, adding that sales will be significantly higher in the U.K., Germany, Greece, Japan, and Singapore. 

Marfrig Global Foods SA, an international beef processing company based in Brazil, said sales of its canned meat products in the U.S. are expected to reach 3,500 metric tons this year – that figure was nearly double the tonnage seen in 2019.

Marcelo Secco, CEO of Marfrig Global Foods S.A., said canned meat products are popular among U.S. consumers considering the meteoric rise in wholesale beef prices due to COVID-19-related closures of U.S. meat processing plants. 

Since the pandemic, Hormel Food Corp.’s Spam has seen rapid growth in canned meat products in the US – though it serves as an ominous sign about the economy: 

“The last time Spam saw a similar pattern in interest was back to when the brand started during the Great Depression. The economic situation wasn’t great — that was carried into World War II,” said Brian Lillis, Hormel’s senior brand manager for Spam. “What we saw over the last few months is really people all over the country purchasing the product.”

The rise of spam and other canned meat products is a direct result of the depressing economic situation around the world – there will be no V-shaped economic recovery this year. 

Update (2135ET): Missouri appellate attorney John Reeves has weighed in on today’s decision by the US Court of Appeals for DC ordering Judge Emmett Sullivan to grant a DOJ request to drop the case against Michael Flynn. 

The opinion, authored by one of the three judges on the panel, Neomi J. Rao, “thoroughly demolishes” a dissenting opinion by Judge Robert Wilkins – who Reeves thinks was so off-base that he “shot himself in the foot” when it comes to any chance of an ‘en-banc review’ in which the Flynn decision would be kicked back for a full review by the DC appellate court.

Reeves, who has written filings for US Supreme Court cases, unpacks Rao’s “outstanding opinion” in the below Twitter thread, conveniently adding which page you can find what he’s referring to (condensed below after the first tweet, emphasis ours):

THREAD re: Flynn mandamus opinion
1) Judge Rao’s opinion–joined by Judge Henderson–granting Flynn mandamus is outstanding not only for its legal reasoning, but also for how it COMPLETELY EVISCERATES Judge Wilkins’ dissenting opinion. https://t.co/LBqGihkrMH

— John M. Reeves (@reeveslawstl) June 24, 2020

In all my years of appellate practice, I don’t think I’ve ever seen a non-US Supreme Court appellate opinion that so thoroughly demolishes a dissenting opinion as this one. Judge Rao could not have done better in writing the opinion, and it should be required law school rdg.

In addition, Judge Wilkins’ dissenting opinion is so off-the-mark that I believe he has shot himself in the foot for purposes of en banc review–in other words, he has ensured that otherwise-sympathetic judges on the DC Circuit will vote against en banc review.

Judge Rao comes out swinging by holding that its earlier opinion in Fokker “foreclose[s] the district court’s proposed scrutiny of the government’s motion to dismiss the Flynn prosecution.” p. 7.

In relying on Fokker, Judge Rao explicitly rejects Judge Wilkinson’s argument that Fokker’s holding is dicta (that is, non-binding). She holds Fokker “is directly controlling here.” p. 14.

Keep in mind that Fokker was written by Chief Judge Srinivasan, an OBAMA appointee. Judge Srinivasan does NOT want Fokker’s legitimacy undermined, no matter his politics.

Judge Wilkins’ dissent implies that Fokker was wrongly decided, and that it conflicts with other federal appellate courts. See p. 23 of 28. Judge Srinivasan will NOT be impressed by this argument in deciding whether to grant en banc rehearing. Fokker does not create a split.

Judge Rao goes on to emphasize that while judicial inquiry MAY be justified in some circumstances, Flynn’s situation “is plainly not the rare case where further judicial inquiry is warranted.” p. 6.

Rao notes that Flynn agrees with the Govt.’s dismissal motion, so there’s no risk of his rights being violated. In addition, the Government has stated insufficient evidence exists to convict Flynn. p. 6.

Rao also holds that “a hearing cannot be used as an occasion to superintend the prosecution’s charging decisions.” p. 7.

But by appointing amicus and attempting to hold a hearing on these matters, the district court is inflicting irreparable harm on the Govt. because it is subjecting its prosecutorial decisions to outside inquiry. p. 8

Thus, Judge Rao holds, it is NOT true that the district court has “yet to act” in this matter, contrary to Judge Wilkins’ assertions. p. 16.

“[T]he district court HAS acted here….[by appointing] one private citizen to argue that another citizen should be deprived of his liberty regardless of whether the Executive Branch is willing to pursue the charges.” p. 16. This justified mandamus being issued NOW.

Judge Rao also makes short work of Judge Wilkins’ argument that the court may not consider the harm to the Government in deciding whether to grant mandamus bc the Government never filed a petition for mandamus. p. 17.

Judge Rao notes “[o]ur court has squarely rejected this argument,” and follows with a plethora of supporting citations. p. 17.

Judge Rao also notes–contrary to what many legal commentators have misled the public to believe–that it is “black letter law” that the Govt. can seek dismissal even after a guilty plea is made. This does not justify greater scrutiny by the district court. p. 6, footnote 1.

As to Judge Wilkins’ argument that a district court may conduct greater scrutiny where, as here, the Govt. reverses its position in prosecuting a case, Judge Rao points out that “the government NECESSARILY reverses its position whenever it moves to dismiss charges….” p. 13

“Given the absence of any legitimate basis to question the presumption of regularity, there is no justification to appoint a private citizen to oppose the government’s motion to dismiss Flynn’s prosecution.” p. 13.

But Judge Rao saves her most stinging and brutal takedown of Judge Wilkins’ dissent for the end…..(cont)

Judge Rao writes that “the dissent swings for the fences–and misses–by analogizing a Rule 48(a) motion to dismiss with a selective prosecution claim.” p. 17. (cont)

While it is true that the Executive cannot selectively prosecute certain individuals “based on impermissible considerations,” p. 18, “the equal protection remedy is to dismiss the prosecution, NOT to compel the Executive to bring another prosecution.” p. 18 (emph. added).

And Judge Rao is just getting warmed up here….She then notes that “unwarranted judicial scrutiny of a prosecutor’s motion to dismiss puts the court in an entirely different position [than selective prosecution caselaw assigns the court].” p. 18 (cont)

“Rather than allow the Executive Branch to dismiss a problematic prosecution, the court [as Judge Wilkins and Judge Sullivan would have it] assumes the role of inquisitor, prolonging a prosecution deemed illegitimate by the Executive.” p. 18 (cont).

And now for Judge Rao’s KO to Judge Wilkins and Judge Sullivan: “Judges assume that role in some countries, but Article III gives no prosecutorial or inquisitional power to federal judges.” p. 18. (cont)

In other words, Judge Rao is likening Judge Wilkins’ arguments, and Judge Sullivan’s actions, to what is done in non-democratic, third world countries. p. 18. Outstanding opinion. No mercy. END

*  *  *

Like a liquid-metal terminator with half its head blown apart, the case against Michael Flynn just won’t die.

Hours after the US Court of Appeals for DC ordered Judge Emmett Sullivan to grant the DOJ’s request to drop the case, the retired ‘resistance’ judge hired to defend Sullivan’s actions has filed a motion requesting an extension to file his findings against Flynn.

The D.C. Appeals Court today vacated the lawless appointment of a left-wing shadow prosecutor to go after Flynn.

Gleeson, the Resistance dead-ender hired by Sullivan, is ignoring the order and plowing ahead with his illegal inquisition against Flynn. https://t.co/bOeG7pRJxv

— Sean Davis (@seanmdav) June 24, 2020

*  *  *

In a major victory for Michael Flynn, the United States Court of Appeals for the District of Columbia Circuit has ordered Judge Emmet Sullivan to grant the Justice Department’s request to dismiss the case against the former Trump National Security Adviser.

“Upon consideration of the emergency petition for a writ of mandamus, the responses thereto, and the reply, the briefs of amici curiae in support of the parties, and the argument by counsel, it is ORDERED that Flynn’s petition for a writ of mandamus be granted in part; the District Court is directed to grant the government’s Rule 48(a) motion to dismiss; nd the District Court’s order appointing an amicus is hereby vacated as moot, in accordance with the opinion of the court filed herein this date,” reads the order.

Appeals court orders Flynn judge to grant dismissal of the case pic.twitter.com/MmWSDrzHCh

— kadhim (＾ｰ^)ノ (@kadhim) June 24, 2020

In their decision, the appeals court wrote: “Decisions to dismiss pending criminal charges – no less than decisions to initiate charges and to identify which charges to bring – lie squarely within the ken of prosecutorial discretion.“

“The Judiciary’s role under Rule 48 is thus confined to “extremely limited circumstances in extraordinary cases.””

Hence, no dice for Judge Sullivan.

Great! Appeals Court Upholds Justice Departments Request To Drop Criminal Case Against General Michael Flynn!

— Donald J. Trump (@realDonaldTrump) June 24, 2020

Flynn pleaded guilty in December 2017 to lying to the FBI about his conversations with former Russian Ambassador to the US, Sergey Kislyak, during the presidential transition following the 2016 US election. He later withdrew his plea after securing new legal counsel, while evidence emerged which revealed the FBI had laid a ‘perjury trap‘ – despite the fact that the agents who interviewed him in January, 2017 said they thought he was telling the truth. Agents persisted hunting Flynn despite the FBI’s recommendation to close the case.

Once the FBI’s malfeasance was uncovered, the Justice Department moved to dismiss the case after Attorney General William Barr tapped an outside prosecutor to examine the FBI’s conduct. Judge Sullivan rejected the DOJ’s request – instead calling on an outside lawyer to make arguments against the DOJ’s move to drop the case.

In their Wednesday decision, the Appeals court noted that “the government’s motion includes an extensive discussion of newly discovered evidence casting Flynn’s guilt into doubt.”

Specifically, the government points to evidence that the FBI interview at which Flynn allegedly made false statements was “untethered to, and unjustified by, the FBI’s counterintelligence investigation into Mr. Flynn.” -US Court of Appeals

Shortly before the DOJ move to dismiss, former Mueller prosecutor Brandon Van Grack suddenly withdrew from the case (and others). Flynn’s new attorney, Sidney Powell, said that government documents revealed “further evidence of misconduct by Mr. Van Grack specifically.”

Sullivan urged the federal appeals court to also reject Flynn’s bid to bring an end to the case, which has now ruled against the judge.

Meanwhile…

Looks like @JoeBiden and @BarackObama were complicit in framing @GenFlynn.

I can’t wait for Flynn to tell all he knows about these traitors. https://t.co/JynrbnuawE

— John Cardillo (@johncardillo) June 24, 2020

Read the full decision below: