APRIL 30//GOLD UP $4.30 TO $1284.00//SILVER UP 5 CENTS TO $14.97//CHINA’S PMI FALTERS BADLY//LOOKS LIKE A COUP IS UNDERWAY IN VENEZUELA//MORE SWAMP STORIES FOR YOU TONIGHT//

 

 

 

 

 

 

GOLD: $1284.00 UP $4.30 (COMEX TO COMEX CLOSING)

Silver:  $14.97 UP 5 CENTS  (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  $1283.60

 

 

silver: $14.96

 

 

JPMorgan has been receiving gold with reckless abandon and sometimes supplying (stopping)

today RECEIVING: 29/50

DLV615-T CME CLEARING
BUSINESS DATE: 04/29/2019 DAILY DELIVERY NOTICES RUN DATE: 04/29/2019
PRODUCT GROUP: METALS RUN TIME: 20:22:06
EXCHANGE: COMEX
CONTRACT: MAY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,278.600000000 USD
INTENT DATE: 04/29/2019 DELIVERY DATE: 05/01/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 48
661 C JP MORGAN 29
690 C ABN AMRO 8
737 C ADVANTAGE 3
800 C MAREX SPEC 10
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 50 50
MONTH TO DATE: 50

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 50 NOTICE(S) FOR 5,000 OZ (0.1556 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  60 NOTICES FOR 5000 OZ  (.1556 TONNES)

 

 

SILVER

 

FOR MAY

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

859 NOTICE(S) FILED TODAY FOR 4,295,000  OZ/

 

total number of notices filed so far this month: 859 for 4,295,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :$5260  UP $25

 

 

Bitcoin: FINAL EVENING TRADE: $5294 UP  56

 

 

end

 

XXXX

 

 

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A LARGE  SIZED 3816 CONTRACTS FROM 201,099 DOWN TO 197,286 WITH YESTERDAY’S 13 CENT RISE IN SILVER PRICING AT THE COMEX. , WE DID  HAVE CONSIDERABLE  LIQUIDATION OF SPREADERS WITH TODAY’S READING AND IT HAD A CONSIDERABLE EFFECT ON PRICE.  TODAY WE ARRIVED FURTHER FROM AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS.

WE HAVE ALSO WITNESSED A LARGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A VERY WEAK SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

 0 FOR MAY, 0 FOR JUNE, 174 FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  174 CONTRACTS. WITH THE TRANSFER OF 174 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24-48 HRS IN THE ISSUING OF EFP’S. THE 174 EFP CONTRACTS TRANSLATES INTO 0.87 MILLION OZ  ACCOMPANYING:

1.THE 13 CENT FALL IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST NINE MONTHS:

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

AND NOW 16.810 MILLION OZ STANDING FOR SILVER IN MAY.

 

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF APRIL:

36,573 CONTRACTS (FOR 21 TRADING DAYS TOTAL 36,573 CONTRACTS) OR 182.87 MILLION OZ: (AVERAGE PER DAY: 1741 CONTRACTS OR 8.707 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR:  182.87 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 26.12% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

ACCUMULATION IN YEAR 2019 TO DATE SILVER EFP’S:          755.56    MILLION OZ.

JANUARY 2019 EFP TOTALS:                                                      217.455. MILLION OZ

FEB 2019 TOTALS:                                                                       147.4     MILLION OZ/

MARCH 2019 TOTAL EFP ISSUANCE:                                          207.835 MILLION OZ

APRIL 2019 TOTAL EFP ISSUANCE:                                              182.87  MILLION OZ.

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 3816 WITH THE 13 CENT FALL IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A TINY SIZED EFP ISSUANCE OF 174 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) . OUR BANKERS RESUMED THEIR LIQUIDATION OF THE SPREAD TRADES TODAY.

 

TODAY WE LOST A CONSIDERABLE SIZED: 3642 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 174 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 3816  OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 13 CENT FALL IN PRICE OF SILVER AND A CLOSING PRICE OF $14.92 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY!! 

 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.986 BILLION OZ TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 859 NOTICE(S) FOR  4,295,000 OZ OF SILVER

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 243,411 CONTRACTS ON APRIL 9.2018 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $16.51.  

AND NOW WE RECORD FOR POSTERITY ANOTHER ALL TIME RECORD OPEN INTEREST AT THE COMEX OF 244,196 CONTRACTS ON AUGUST 22/2018 AND AGAIN WHEN THIS RECORD WAS SET, THE PRICE OF SILVER WAS $14.78 AND LOWER IN PRICE THAN PREVIOUS RECORDS.

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ AND NOW MAY:  16,810,000 OZ..
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT).

 

IN GOLD, THE OPEN INTEREST FELL BY A FAIR SIZED 1962 CONTRACTS, TO 427,589 WITH THE FALL IN THE COMEX GOLD PRICE/(A DROP IN PRICE OF $7.00//YESTERDAY’S TRADING).  

 THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A  STRONG SIZED 8232 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 8232 CONTRACTS DECEMBER: 0 CONTRACTS, JUNE 2020  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 427,589. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6270 CONTRACTS: 1962 OI CONTRACTS DECREASED AT THE COMEX  AND 8232 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6270 CONTRACTS OR 627,000 OZ OR 19.50 TONNES.  YESTERDAY WE HAD A LOSS IN THE PRICE OF GOLD TO THE TUNE OF  $7.00.AND WITH THAT RISE, WE  HAD A STRONG GAIN IN TONNAGE OF 19.50 TONNES!!!!!!.?????????????????????????????????????????? 

 

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF APRIL : 146,637 CONTRACTS OR 14,443,700 OR 456.10 TONNES (21 TRADING DAYS AND THUS AVERAGING: 6982 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 21 TRADING DAYS IN  TONNES: 456.10 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2018, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS 456.10/3550 x 100% TONNES =12.84% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     1828,82 TONNES

JANUARY 2019 TOTAL EFP ISSUANCE;   531.20 TONNES

FEB 2019 TOTAL EFP ISSUANCE:             344.36 TONNES

MARCH 2019 TOTAL EFP ISSUANCE:       497.16 TONNES

APRIL 2019 TOTAL ISSUANCE:                 456.10 TONNES

 

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLEDRIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

 

 

Result: A FAIR SIZED DECREASE IN OI AT THE COMEX OF 1962 WITH THE FALL IN PRICING ($7.00) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A  STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8232 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX.  I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 8232 EFP CONTRACTS ISSUED, WE  HAD A STRONG GAIN OF 6270 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

8232 CONTRACTS MOVE TO LONDON AND 1962 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 19,50 TONNES). ..AND THIS STRONG DEMAND OCCURRED WITH A FALL IN PRICE OF $7.00 IN YESTERDAY’S TRADING AT THE COMEX.

 

 

 

we had:  50 notice(s) filed upon for 5,000 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

With respect to our two criminal funds, the GLD and the SLV:

GLD...

 

WITH GOLD UP $4.30  TODAY 

 

NO CHANGE IN GOLD INVENTORY AT THE GLD

 

 

INVENTORY RESTS AT 746.69 TONNES

 

 

TO ALL INVESTORS THINKING OF BUYING GOLD THROUGH THE GLD ROUTE: YOU ARE MAKING A TERRIBLE MISTAKE AS THE CROOKS ARE USING WHATEVER GOLD COMES IN TO ATTACK BY SELLING THAT GOLD.  IT SURE SEEMS TO ME THAT THE GOLD OBLIGATIONS AT THE GLD EXCEED THEIR INVENTORY

 

SLV/

WITH SILVER UP 5 CENTS TODAY:

NO CHANGE IN SILVER INVENTORY AT THE SLV//

 

 

 

 

 

 

/INVENTORY RESTS AT 311.979 MILLION OZ.

 

 

end

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in SILVER FELL BY A CONSIDERABLE SIZED 3816 CONTRACTS from 201,099 DOWNTO 197,286 AND FURTHER FROM THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..TODAY,IT LOOKS LIKE OUR SPREADERS SAW CONSIDERABLE ACTION WITH RESPECT TO THEIR USUAL AND CUSTOMARY LIQUIDATION, WITH CONSIDERABLE EFFECT ON THE PRICE OF SILVER

 

 

HERE IS HOW THE CROOKS USED SPREADING AS WE ENTER AN ACTIVE DELIVERY MONTH. THUS SILVER HAS THE ACTIVE MONTH OF MAY COMING UP AND THUS SPREADERS DO THE FOLLOWING:

“YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST IS STARTING TO RISE IN THIS NON ACTIVE MONTH OF APRIL BUT SO IS THE OPEN INTEREST OF  SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (MAY), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

 

EFP ISSUANCE:

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

 

0 CONTRACTS FOR APRIL., 0 FOR MAY, FOR JUNE 0 CONTRACTS AND JULY: 174 CONTRACTS  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 174 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI LOSS AT THE COMEX OF 3816 CONTRACTS TO THE 174 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG LOSS OF 3642 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 12.87MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 6.065 MILLION OZ FOR AUGUST..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER.  21.925 MILLION OZ STANDING IN DECEMBER , 5.845 MILLION OZ STANDING IN JANUARY. 2.955 MILLION OZ STANDING IN FEBRUARY,  27.120 MILLION OZ FOR MARCH., 3.875 MILLION OZ FOR APRIL AND NOW 16.810 MILLION OZ FOR MAY

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 13 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A SMALL SIZED 174 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

BOTH THE SILVER COMEX AND THE GOLD COMEX ARE IN STRESS AS THE BANKERS SCOUR THE BOWELS OF THE EXCHANGE FOR METAL

 

 

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 15.84 POINTS OR 0.52% //Hang Sang CLOSED DOWN 193.10 POINTS OR 0.65%  /The Nikkei closed/ DOWN 48.85 POINTS OR .22% Australia’s all ordinaires CLOSED DOWN .48%

/Chinese yuan (ONSHORE) closed DOWN  at 6.7391 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 64.03 dollars per barrel for WTI and 72.83 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.7391 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.7393/ TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

3A//NORTH KOREA/ SOUTH KOREA

NORTH KOREA

 

 

 

b) REPORT ON JAPAN

 

3 China/Chinese affairs

i)China/

Stocks dip after China’s all important mfg PMI falters

( zerohedge)

ii)CHINA/USA
A warning shot:  The USA warns China on its use of Maritime fishing boats acting as Militia.
( zerohedge)

iii)Vodafone finds hidden backdoors in Huawei network equipment and that will anger China to no end. What will Europe do?

(courtesy zerohedge)

 

iv)China/Canada

Relations between China and Canada are now at an all time low as a second Canadian is sentenced to death on drug trafficking

( zerohedge)

4/EUROPEAN AFFAIRS

i)EU/

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)TURKEY

 

6. GLOBAL ISSUES

A very important commentary from Jeffrey Snider who looks at the global scene.  He states that to him we are entering a huge global slowdown and he references this as Euro dollar no 4 crisis.  All previous crises stem from a lack of dollars held outside the USA

( Jeffrey Snider  Alhambra)

 

 

 

 

 

 

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

 

VENEZUELA

Looks like a coup is under way in Venezuela.

(courtesy zerohedge)

 

 

9. PHYSICAL MARKETS

i)London’s Financial times talks about the life of Bart Chilton and how he stood for the little guy

( London’s Financial Times)

ii)Chilton’s death is attributed to complications of pancreatic cancer

(CNBC/GATA

iii)Countries around the world are trying to repatriate their gold back home
(courtesy Fidler Gold Telegraph)

 

10. USA stories which will influence the price of gold/silver)

 

 

MARKET TRADING//early this morning/TRADING

 

 

ii)Market data

i)Chicago manufacturing and services PMI crashes

( zerohedge)

ii)Consumer confidence spikes higher as labour sentiment is now close to record highs
(courtesy zerohedge)

 

 

ii)USA ECONOMIC/GENERAL STORIES

Mish Shedlock provides a great commentary on the plight of Wisconsin dairy farmers who are going bankrupt in record numbers and they all blame the tariffs

( Mish Shedlock/Mishtalk)

ii)A good look at what is going on with respect to mansion prices in New York: answer plummeting due to the restriction in deductibility of taxes
( zerohedge)

iii) TRUMP  becoming more vocal as he demands the Fed slash rates by 1% as the FOMC meets

( zerohedge)

SWAMP STORIES

i)Rosenstein submits his resignation letter to Barr

( zerohedge)

ii)Trump now sues Deutsche bank as he tries to stop the bank from handing records over to Maxine Waters and Adam Schiff
(courtesy zerohedge)
E)SWAMP STORIES/MAJOR STORIES//THE KING REPORT

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A FAIR SIZED 1962 CONTRACTS.TO A LEVEL OF 427,589 WITH THE LOSS IN THE PRICE OF GOLD ($7.00) IN YESTERDAY’S // COMEX TRADING) 

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF MAY..  THE CME REPORTS THAT THE BANKERS ISSUED A  STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 8232 EFP CONTRACTS WERE ISSUED:

0 FOR JUNE ’19: 8232 CONTRACTS , DEC; 0 CONTRACTS: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  8232 CONTRACTS.

THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 6270 TOTAL CONTRACTS IN THAT 8232 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A fair SIZED 1962 COMEX CONTRACTS.

 

NET GAIN ON THE TWO EXCHANGES : 6270 contracts OR 627,000 OZ OR 19,50 TONNES.

 

We are now in the NON active contract month of MAY and here the open interest stands at 224 contracts, having LOST 347 contracts. Thus by definition the initial amount of gold standing for May is as follows:

224 contracts x 100 oz per contract =  22400 oz or .6967 tonnes of gold.

The next contract month after May is June and here the open interest fell by 3388 contracts down to 297,338.  After June the next active month is August and here the OI rose by 1065 contracts up to 60,885 contracts.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 50 NOTICES FILED TODAY AT THE COMEX FOR  5000  OZ. (0.1556 TONNES)

 

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A CONSIDERABLE SIZED 3816 CONTRACTS FROM 201,099 DOWN TO 197,286(AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE OI COMEX LOSS OCCURRED WITH A 13 CENT FALL IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF MAY.  HERE WE HAVE 3362 NOTICES STAND FOR DELIVERY AND BY DEFINITION, THE INITIAL AMOUNT OF SILVER STANDING FOR DELIVERY IN THIS ACTIVE DELIVERY MONTH IS AS FOLLOWS;

3362 NOTICE X 5,000 OZ PER CONTRACT =  16.810  MILL;LION OZ.

 

THE NEXT MONTH AFTER MAY IS THE NON ACTIVE MONTH OF  JUNE.  HERE THIS MONTH GAINED 153 CONTRACTS UP TO 688. AFTER JUNE IS THE ACTIVE MONTH OF JULY, (THE SECOND LARGEST DELIVERY MONTH OF THE YEAR FOR SILVER) AND HERE THIS MONTH ADDED 6312 CONTRACTS UP TO 148,673 CONTRACTS.

STRANGELY FOR THE FIRST TIME WE HAVE WITNESSED A HUGE DISPARITY FROM THE PRELIMINARY MAY SILVER OPEN INTEREST AND THUS WHAT ORIGINALLY STOOD FOR SILVER AND THE FINAL OI NUMBER

(4200 VS 3362 CONTRACTS).  i GUESS THEY COULD NOT FIND PHYSICAL SILVER AND THESE BOYS OPTED FOR EFP’S WE SHOULD SEE INCREASING LEVELS IN THE NEXT DAY OR SO.

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 859 notice(s) filed for 4,295,000 OZ for the MARCH, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY:  234,508  CONTRACTS 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  218,228  contracts

 

 

 

 

 

 

 

 

 

INITIAL standings for  MAY/GOLD

APRIL 30 /2019.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil
oz
Deposits to the Dealer Inventory in oz nil

oz

 

 

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

nil oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
60 notice(s)
 5000 OZ
(0.1556TONNES)
No of oz to be served (notices)
164 contracts
(16400 oz)
0.510 TONNES
Total monthly oz gold served (contracts) so far this month
50 notices
5000 OZ
.1556 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entries:

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

We had 0 kilobar entries

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else:  zero oz

 

 

total gold deposits: nil  oz

 

 very little gold arrives from outside/ again zero amount arrived  today

we had 0 gold withdrawals from the customer account:

(maybe investors are taking our advice by not storing their gold at the comex.)

this will hurt our bankers as they need to replace leased gold as all gold stored at the gold comex is unallocated.

 

Gold withdrawals;

i) zero withdrawals.

total gold withdrawals; nil

 

 

we had 0 adjustments…

FOR THE MAY 2019 CONTRACT MONTH)

Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 50 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 29 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the MAY /2019. contract month, we take the total number of notices filed so far for the month (50) x 100 oz , to which we add the difference between the open interest for the front month of MAY. (224 contract) minus the number of notices served upon today (50 x 100 oz per contract) equals 22,400 OZ OR 0.6967 TONNES) the number of ounces standing in this NON active month of MAY

Thus the INITIAL standings for gold for the MAY/2019 contract month:

No of notices served (50 x 100 oz)  + (224)OI for the front month minus the number of notices served upon today (50 x 100 oz )which equals 22,400 ozstanding OR 0.6967 TONNES in this NON active delivery month of MAY.

 

 

 

 

 

SURPRISINGLY LITTLE GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 8.856TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 0.6967 TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

 

 

total registered or dealer gold:  284,725.713 oz or  8.856 tonnes
total registered and eligible (customer) gold;   7,782,015.791 oz 242.05 tonnes

 

 

FOR COMPARISON FIRST DAY NOTICE FOR APRIL 2018 AND FINAL STANDING APRIL 30 2018

 

 

AT FIRST DAY NOTICE MAY 1 2018: WE HAD 1.284 TONNES OF GOLD STAND.  BY MONTH’S END:  2.27 TONNES AS WE HAD ONE QUEUE JUMPING IN THE MIDDLE OF THE MONTH.

IN THE LAST 31 MONTHS 113 NET TONNES HAS LEFT THE COMEX.

 

THE GOLD COMEX IS NOW IN STRESS AS
1. GOLD IS LEAVING THE COMEX
2. GOLD IS LEAVING THE REGISTERED CATEGORY OF THE COMEX.

end

And now for silver

AND NOW THE  DELIVERY MONTH OF APRIL

INITIAL  standings/SILVER

APRIL 29 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
629,510.74 oz
cnt
Brinks
CNT

 

 

 

 

 

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
299,521.630 oz
HSBC
No of oz served today (contracts)
859
CONTRACT(S)
(4,295,000 OZ)
No of oz to be served (notices)
2503 contracts
12,515,000 oz)
Total monthly oz silver served (contracts) 859 contracts

4,295,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

**

 

we had 0 inventory movement at the dealer side of things

 

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

we had  1 deposits into the customer account

into JPMorgan:  nil

 

 

*** JPMorgan for most of 2017 and in 2018 has adding to its inventory almost every single day.

JPMorgan now has 149.469 million oz of  total silver inventory or 48.80% of all official comex silver. (149 million/305 million)

 

into HSBC::  299,521.63 oz

 

 

 

 

 

 

 

 

 

total customer deposits today:  299,521.630 oz

 

we had 2 withdrawals out of the customer account:

 

i) Out of  CNT:  29,235.764 oz

ii) Out of Brinks:  600,274.950 oz

 

total withdrawals: 629,510.714. oz

 

we had 1 adjustment

 

i) Out of CNT

496,193.120 oz was adjusted out of the customer account and this landed into the dealer account of CNT..

 

total dealer silver:  92.014 million

total dealer + customer silver:  306.750 million oz

 

The total number of notices filed today for the MAY 2019. contract month is represented by 859 contract(s) FOR  4,295,000  oz

To calculate the number of silver ounces that will stand for delivery in MAY, we take the total number of notices filed for the month so far at 859 x 5,000 oz = 4,295,000 oz to which we add the difference between the open interest for the front month of MAY. (3362) and the number of notices served upon today (859 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 859(notices served so far)x 5000 oz + OI for front month of MAY( 3362) -number of notices served upon today (859)x 5000 oz equals 16,810,000 oz of silver standing for the MAY contract month.

 

 

 

FOR COMPARISON VS LAST YEAR:

 

 

 

 

ON FIRST DAY NOTICE APRIL 30/2018 (FOR THE MAY 2018 CONTRACT MONTH) WE HAD 24.11 MILLION OZ STAND FOR DELIVERY.  BY MONTH END WE HAD HUGE QUEUE JUMPING AND THUS 36.285 MILLION OZ EVENTUALLY STOOD FOR DELIVERY.

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  62,837 CONTRACTS (

 

 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 85,877 CONTRACTS..( we had good liquidation of our spreaders//)

..

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 85877 CONTRACTS EQUATES to 429 million  OZ 61.3% OF ANNUAL GLOBAL PRODUCTION OF SILVER

COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.

The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42
The previous record was 224,540 contracts with the price at that time of $20.44

 

end

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -3.98% (APRIL 29/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.85% to NAV (APRIL 29/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -3.98%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA):

NAV 12.87TRADING 12.27/DISCOUNT 4.64

END

And now the Gold inventory at the GLD/

APRIL 30/WITH GOLD UP $4.30 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 746.69 TONNES//

APRIL 29/WITH GOLD DOWN $7.00: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 746.69 TONNES

APRIL 26/WITH GOLD UP $9.2//ANOTHER BIG CHANGE IN GOLD INVENTORY AT THE GLD; A WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD.//INVENTORY LOWERS TO 746.69 TONNES TONNES

APRIL 25//WITH GOLD UP $.05 TODAY  (BASICALLY FLAT) NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 747.87 TONNES

 

APRIL 24 WITH GOLD UP  $6.00 TODAY// TWO TRANSACTIONS: 1)A HUGE WITHDRAWAL OF 2.05 TONNES FROM THE GLD AND THEN II) ANOTHER WITHDRAWAL OF 1.76 TONNES//INVENTORY RESTS AT 747.87 TONNES

APRIL 23./WITH GOLD DOWN $4.45 TODAY: NO CHANGES AT THE GLD/INVENTORY RESTS AT 751.68 TONNES//

APRIL 22/WITH GOLD UP $1.75//A SMALL WITHDRAWAL OF .59 TONNES OF GOLD FROM THE GLD INVENTORY//INVENTORY RESTS AT 751.68 TONNES

APRIL 18/WITH GOLD DOWN $.45 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT752.27 TONNES

APRIL 17/WITH GOLD DOWN $0.10 TODAY: ANOTHER HUGE WITHDRAWAL OF 1.76 TONNES AT THE GLD WHICH WAS USED IN YESTERDAY’S RAID/INVENTORY RESTS AT 752.27 TONNES

APRIL 16/WITH GOLD DOWN $13.60 TODAY: A HUGE WITHDRAWAL OF 3.82 TONNES AT THE GLD/INVENTORY RESTS AT 754.03

APRIL 15/WITH GOLD DOWN $3.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 757.85 TONNES

APRIL 12/WITH GOLD UP $2.10 TODAY:NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 757..85 TONNES

APRIL 11/WITH GOLD DOWN $19.85 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 757.85 TONNES

APRIL 10/WITH GOLD UP $5.45 AGAIN TODAY, THE CROOKS AGAIN RAIDED THE COOKE JAR BY 2.64 TONNES/INVENTORY RESTS AT 757.85 TONNES

APRIL 9/WITH GOLD UP AGAIN BY $6.40/THE CROOKS RAIDED THE COOKIE JAR AGAIN BY 1.18 TONNES/INVENTORY RESTS AT 760.49 TONNES

APRIL 8/WITH GOLD UP AGAIN BY $6.40: THE CROOKS RAIDED THE COOKIE JAR AGAIN BY .88 TONNES//INVENTORY RESTS TONIGHT AT 761.67 TONNES.

APRIL 5/WITH GOLD UP$1.35: ANOTHER WITHDRAWAL OF 1.74 TONNES OF PHYSICAL GOLD FROM THE GLD INVENTORY: INVENTORY RESTS AT 762.55 TONNES

APRIL 4/WITH GOLD DOWN 90 CENTS TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.29 TONNES

APRIL 3:WITH GOLD DOWN 20 CENTS: ANOTHER WHOPPER OF A WITHDRAWAL: 3.81 TONNES FROM THE GLD//INVENTORY RESTS AT  764.29 TONNES

APRIL 2//WOW! WE LOST A WHOPPING 16.16 TONNES OF GOLD WITH A RISE IN PRICE OF $1.80//INVENTORY RESTS AT 768.10

APRIL 1/WITH GOLD DOWN $3.80: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 784.26 TONNES

MARCH 29/WITH GOLD UP $2.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 784.26 TONNES

MARCH 28/WITH GOLD DOWN $20.60: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 784.26 TONNES

 

MARCH 27/SURPRISING! WITH GOLD DOWN AGAIN BY $4.05, THE CROOKS NEEDED TO PUT GOLD BACK INTO THE GLD: THEY ADDED 3.23 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 784.26 TONNES

MARCH 26/WITH GOLD DOWN $7.30 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 781.03 TONNES

MARCH 25/WITH GOLD UP $9.85: A STRONG 2.94 TONNES DEPOSIT INTO THE GLD/INVENTORY RESTS AT 781.03 TONNES

MARCH 22/WITH GOLD UP $5.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 778.09 TONNES

MARCH 21/WITH GOLD UP $7.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 778.09 TONNES

March 20/WITH GOLD DOWN $5.15 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 778.09 TONNES

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

APRIL 30/2019/ Inventory rests tonight at 746.69 tonnes

*IN LAST 589 TRADING DAYS: 18.28 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 489 TRADING DAYS: A NET 21.44 TONNES HAVE NOW BEEN LOST INTO THE GLD INVENTORY.

WE MUST BE GETTING CLOSER TO THE BOTTOM OF THE BARREL FOR PHYSICAL GOLD AT THE GLD.

 

end

 

Now the SLV Inventory/

APRIL 30/WITH SILVER UP 5 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ/

APRIL 29/ WITH SILVER DOWN 13 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ.

APRIL 26//WITH SILVER UP 12 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ//

APRIL 25/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ///

APRIL 24/WITH SILVER UP 15 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ//

APRIL 23./WITH SILVER DOWN 21 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ///

APRIL 22/WITH SILVER UP 4 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ///

APRIL 18/WITH SILVER FLAT TODAY: A SHOCKING 2.8122 MILLION PAPER OZ WERE ADDED INTO SLV INVENTORY: INVENTORY RESTS AT 311.979 MILLION OZ/

APRIL 17/WITH SILVER UP ONE CENT TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ///

APRIL 16/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ//

APRIL 15: WITH SILVER DOWN ONE CENT TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 750,000 OZ//INVENTORY RESTS AT 309.167 MILLION OZ.

APRIL 12 WITH SILVER UP 11 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.917 MILLION OZ.

APRIL 11/WITH SILVER DOWN 37 CENTS TODAY: A DEPOSIT OF 750,000 OZ INTO THE SLV/INVENTORY RESTS AT 309.917 MILLION OZ//

April 10/WITH SILVER UP 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ.

APRIL 9/WITH SILVER DOWN ONE CENT: NO CHANGES IN SILVER INVENTORY AT THE SLV.INVENTORY RESTS AT 309.167 MILLION OZ///

APRIL 8/WITH SILVER UP 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV.INVENTORY RESTS AT 309.167 MILLION OZ///

APRIL 5/WITH SILVER DOWN 2 CENTS: NO CHANGES IN SILVER INVENTORY:  THE CROOKS CANNOT RAID ANY SILVER BECAUSE THERE IS NONE: INVENTORY RETS AT 309.167 MILLION OZ//

APRIL 4/WITH SILVER FLAT TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ/

APRIL 3/WITH SILVER UP TWO CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ/

APRIL 2/ WITH SILVER DOWN ONE CENT TODAY: A SMALL WITHDRAWAL OF 134,000 OZ FROM THE SLV TO PAY FOR FEES/INVENTORY RESTS AT 309.167

APRIL 1/WITH SILVER DOWN ONE CENT TODAY: A SMALL WITHDRAWAL OF 656,000 OZ FROM THE SLV/INVENTORY RESTS AT 309.301 MILLION OZ//

MARCH 29/WITH SILVER UP 12 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.957 MILLION OZ/

MARCH 28/WITH SILVER DOWN 31 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 469,000 OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 309.957 MILLION OZ/

MARCH 27/WITH SILVER DOWN 12 CENTS; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.488 MILLION OZ//

MARCH 26/WITH SILVER DOWN 13 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.488 MILLION OZ//

MARCH 25/WITH SILVER UP 15 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.488 MILLION OZ////

MARCH 22/WITH SILVER DOWN 7 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.356 MILLION OZ///INVENTORY RESTS AT 309.488 MILLION OZ///

MARCH 21/WITH SILVER UP 15 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 310.848 MILLION OZ/

March 20/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGES  IN SILVER INVENTORY//INVENTORY RESTS AT 310.848 MILLION OZ//

 

APRIL 30/2019:

 

Inventory 311.979 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

THE RISE IN LIBOR IS CREATING A SCARCITY OF DOLLARS BECAUSE FOREIGN EXCHANGE SWAPS (COSTS) ARE SIMPLY PROHIBITIVE

YOUR DATA…..

6 Month MM GOFO 2.16/ and libor 6 month duration 2.61

Indicative gold forward offer rate for a 6 month duration/calculation:

G0LD LENDING RATE: + .45/

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.48%

LIBOR FOR 12 MONTH DURATION: 2.71

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.23

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold Investors Taking Possession and Repatriating Gold To Home Country

Newstalk’s Bobby Kerr Interviews GoldCore’s Mark O’ Byrne

There is a growing movement by investors and central banks internationally to “repatriate” gold and own it “in country” due to concerns of gold confiscation and financial repression involving capital and exchange controls. A form of gold confiscation has already been seen with Venezuela unable to repatriate their remaining gold from the Bank of England.

Due to persisting uncertainty regarding the outcome of Brexit and other global risks, Irish and some international investors are preferring to store their gold bullion in Dublin rather than London and other locations.

Many investors, institutions and central banks are moving to take possession and ownership of their gold bullion and or opting to own gold in a fully allocated and fully segregated manner in ultra secure vaults.

Gold is flowing from traditional gold storage centres likes of Zurich, Hong Kong, Singapore, Perth and especially London to nations internationally.

Investors are opting to store gold where it is more easily accessible, portable and truly liquid and not dependent on one single counter party.

Never assume that your stored gold or digital gold is easily accessible. It is prudent to test assumptions by selling some and taking delivery of some of your gold and silver. Test how your provider handles this. In our client’s experience there frequently are hidden charges, unexpected terms and conditions and legal impediments to them liquidating their gold for cash or taking delivery.

If you don’t hold it or can’t hold it easily, you don’t own it…

Mark O’Byrne, GoldCore Founder & Research Director joined Bobby Kerr on Newstalk to discuss the new institutional gold vaults in Dublin Ireland and the growing financial risks including the coming global debt crisis. 

Must Read Guide: 7 Real Risks to Your Gold Ownership

News & Commentary

Stocks Struggle on Weak Earnings; Dollar Edges Up: Markets Wrap (Bloomberg.com)

Gold futures post first loss in 4 sessions (Marketwatch.com)

Gold slips from more than one-week high as data lifts equities (Reuters.com)

Newmont Goldcorp to suspend Peñasquito operations in Mexico due to blockade (Reuters.com)

Bart Chilton, former CFTC commissioner and high-frequency trading critic, is dead at 58 (CNBC.com)

Fed Is Looking at a New Program that Could Be Another Version of ‘Quantitative Easing’ (CNBC.com)

Decline in world’s monetary reserves signals end to dollar as reserve currency (GATA.com)

Flash Crashes Keep Showing Gold Market Manipulation And The CFTC’s Indifference (SilverDoctors.com)

Near-Record Gold Shorting (SeekingAlpha.com)

Why Warning About A Bubble For A Decade Is Completely Rational (RealInvestmentAdvice)

Gold Prices (LBMA PM)

29 Apr: USD 1,282.15, GBP 991.10 & EUR 1,148.55 per ounce
26 Apr: USD 1,281.50, GBP 992.78 & EUR 1,150.02 per ounce
25 Apr: USD 1,277.85, GBP 991.87 & EUR 1,146.87 per ounce
24 Apr: USD 1,273.80, GBP 984.90 & EUR 1,135.34 per ounce
23 Apr: USD 1,273.45, GBP 979.67 & EUR 1,131.46 per ounce

Silver Prices (LBMA)

29 Apr: USD 14.97, GBP 11.58 & EUR 13.42 per ounce
26 Apr: USD 15.00, GBP 11.62 & EUR 13.47 per ounce
25 Apr: USD 14.86, GBP 11.55 & EUR 13.36 per ounce
24 Apr: USD 14.80, GBP 11.44 & EUR 13.21 per ounce
23 Apr: USD 14.97, GBP 11.51 & EUR 13.31 per ounce

Recent Market Updates

– Australia and Many Property Markets To Crash Like Ireland?

– Death of Inflation and the Death of Equities?

– SWOT Analysis: Venezuela Sells $400 Million Worth Of Gold Bullion

– World’s Central Banks Want More Gold – India May Buy 1.5M Ounces In 2019

– Russia’s 2019 Gold Rush Continues: Buys 600,000 Ounces of Gold In March

– When Should You Sell Your Gold and Silver? (GoldCore Video)

– Understanding Gold: A Step By Step Guide To Gold As An Asset Class

– World Trade Suffers Biggest Collapse Since Financial Crisis

Mark O’Byrne
Executive Director

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

London’s Financial times talks about the life of Bart Chilton and how he stood for the little guy

(courtesy London’s Financial Times)



iii) Other Physical stories
Countries around the world are trying to repatriate their gold back home
(courtesy Fidler GoldTelegraph)

Countries Around The World Are Bringing Gold Home

Authored by Virginia Fidler via GoldTelegraph.com,

European Central Bank’s President Mario Draghi recently announced that the ECB would be required to approve any management of gold reserves within the euro zone countries. The statement was specifically directed at two Italian members.

Why was Italy singled out? According to the Wall Street Journal, Italian citizens are preparing to take control of Italy’s gold reserves. During the past few years, a multitude of small investors lost billions of dollars due to the failure of several Italian banks. The Bank of Italy is seen as an elitist, inefficient entity indifferent to the needs of ordinary people. Deputy Prime Minister Luigi Di Maio is leading the attack against Italy’s central bank, along with the “5 Star Movement” and the nationalist “League,” all of whom blame the countries financial woes on the incompetence of the central bank.

The 5 Star Movement is asking Italy’s Parliament to approve measures that would allow private banks to sell their share in The Bank of Italy at 1930’s prices. Taking it a step further, they are also demanding that ownership of the Bank of Italy’s 2,451.8 tons of gold be taken over by the country’s citizens and spent on populist policies. The current value of these gold reserves is $102 billion.

If these laws are passed, investors would be able to sell gold and greatly deplete the central bank’s reserves. As Giorgia Meloni of the Brothers of Italy states, “The gold belongs to the Italians, not the bankers.”

Italy’s lawmakers hold a different view and are warning against any action that will upend the sovereignty of the central bank’s policies. Such expropriation of government gold would not be tolerated.

But the 5 Star Movement and the League are determined to return ownership of the country’s gold to the public. Approximately 60 percent of lawmakers support the movement, guarantying the law will be enacted. There is also rumbling about nationalizing the Central Bank of Italy entirely.

In the realm of global commerce, gold has become a most potent weapon.

Italy is not the only country embracing gold.

Romania has plans to repatriate gold reserves currently being held by the Bank of England. Romania currently has around 103.7 tons of gold, valued at $3.84 billion. Sixty-five percent of the yellow metal is being kept in storage at the Bank of England. According to a new law, only 5 percent of the country’s gold may be stored abroad. The rest will be repatriated. While the current leadership approves of the repatriation, the National Bank of Romania does not. Mugur Isarescu, director of the central bank, insists that the gold is for economic emergencies and should remain where it is.

Another European country, Germany, has quietly called back 674 tons of gold from France and the U.S. Federal Reserve to its central bank, the Bundesbank. Ninety-eight percent of Germany’s gold was stored abroad during the height of the Cold War to keep it out of the reach of Russia. With the weakening of the Euro, Germany wants the gold closer to home. The Bundesbank now has half of the country’s gold in safe storage.

Following the trend to keep gold close to home, the National Bank of Hungary will be recalling 100,000 ounces of gold from the Bank of England. Hungary has traditionally kept its gold reserves low, with only 50 tons being held in 1989. The global 2008 financial crisis had Hungary rethinking its approach to gold. Now, it wants its gold reserves home for safekeeping in the event of a geopolitical crisis.

Gold is seen by central banks as a way to maintain financial trust during economic upheaval. The move by global central banks to repatriate their gold may be a sign that an economic crisis could be looming in the near future.

 

end

The rats fleeing a sinking ship?

Societe Generale resigns as London gold market maker

LONDON (Reuters) – The London Bullion Market Association (LBMA) said Societe Generale had resigned as a market maker for gold, as France’s third-largest bank pushes ahead with a downsizing of its commodities business.

SocGen said this month it would cut 1,600 jobs to boost profits after poor performance last year and exit over- the-counter commodities trading.

SocGen declined to comment.

In over-the-counter trading deals are done bilaterally between banks and brokers rather than on a financial exchange. London is the world’s largest over-the-counter gold trading hub, overseen by the LBMA.

Market makers commit to provide liquidity to the market. SocGen’s exit leaves 12 LBMA market-making banks including JPMorgan, HSBC and BNP Paribas.

-END-

Due to the criminal conviction of trader Edmonds, the USA prosecution is seeking to halt the civil lawsuit. I was misinformed: all discoveries in a civil suit are public and because of that, the prosecution gives the defendants the right to plead the 5th if their testimony incriminates them
(courtesy zerohedge/Chris Powell)

US seeks halt in civil lawsuit accusing JP Morgan of manipulating metals market, citing criminal case

  • The U.S. wants a federal judge to halt a civil lawsuit accusing J. P. Morgan of manipulating precious metals markets. The Justice Department cited an ongoing criminal case as its reason for the request.
  • A former J. P. Morgan trader pleaded guilty in Connecticut last month to manipulation charges.
  • In the guilty plea, the trader said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors.

A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

Amr Alfiky | Reuters
A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

The Justice Department is asking a judge to put the brakes on a civil lawsuit against J. P. Morgan Chase, citing an ongoing probe into a “related criminal case” that involves alleged manipulation of precious metals markets.

The department wants a six-month postponement in the proceedings of the civil lawsuit, which was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders. The government also says it could ask for a longer delay in the case, according to a court filing on Monday.

The move comes days after Shak’s lawyer, David Kovel, sought permission to reopen questioning of two former J. P. Morgan traders and the bank’s current global head of base and precious metals trading.

Kovel, in making the request with the Manhattan federal judge in the civil case, cited last month’s guilty plea by one of those former traders, John Edmonds, in federal court in Connecticut.

Edmonds admitted making bogus bids on precious metals contracts while working at the bank from 2009 to 2015.

Neither J. P. Morgan Chase nor Kovel’s clients have opposed the Justice Department’s request.

In arguing for a delay, the Justice Department said Shak’s lawsuit is “related” to Edmonds’ criminal case and that Edmonds has “pleaded guilty and acknowledged his own participation in such conduct, as well as that of other traders.”

“Edmonds awaits sentencing, but the broader investigation is ongoing,” the Justice Department said. The U.S. wants to delay the civil case “to protect the integrity of its ongoing criminal investigation,” it said.

J. P. Morgan did not respond to a request for comment by CNBC. Kovel declined to comment.

Tuesday night, after this story first was published, Judge Paul Engelmayer ordered the federal prosecutors to explain in detail by Monday why postponing proceedings in the civil lawsuit would not harm those involved, and why reopening questioning “would be detrimental to the Government’s ongoing criminal investigation.”

Englemayer also wrote that he regards Edmonds’ guilty plea “as potentially highly consequential” to the civil case.

In his guilty plea, the 36-year-old Edmonds said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors. He admitted to working with “unnamed co-conspirators” at J. P. Morgan, according to the Justice Department.

Kovel wants to question Edmonds again as well as Michael Nowak, the bank’s global head of base and precious metal trading, and former J. P. Morgan Chase Managing Director Robert Gottlieb. The three had previously answered questions under oath in the civil case.

Kovel said in court filings that Nowak was the immediate supervisor of Edmonds, while Gottlieb was Edmonds’ mentor.

In his prior deposition, Edmonds said that Gottlieb sat only a “couple feet” away from him for about five years, and that he was “somebody [he] looked up to in the business,” who helped guide and train him.

Nowak is described by Edmonds as his direct supervisor, with whom he would sometimes discuss trading strategies. Nowak was also the person responsible for overseeing the performance and risk of Edmonds’ portfolio, according to the deposition.

Edmonds also stated in his prior deposition that he would enter precious metals trades for both Nowak and Gottlieb, among others.

The civil lawsuit claims Shak and his fellow plaintiffs lost tens of millions of dollars as a result of actions by J. P. Morgan’s traders.

A federal judge tells traders that they can combine cases (with the other 6 banks) as they accused JPMorgan of rigging the precious metals market
(courtesy CNBC)

Federal judge tells traders they can combine cases accusing JP Morgan of rigging metals market

  • Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.
  • Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

71671201

Spencer Platt | Getty Images

A group of traders from across the U.S. who allege that J. P. Morgan Chase manipulated precious metals markets for years are one step closer to bringing a class action suit against the nation’s largest bank.

Earlier this month, a federal judge said five separate lawsuits making similar allegations against the bank could be combined, potentially including thousands of people who traded in the precious metals market from Jan. 2009 through Dec. 2015.

Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.

J. P. Morgan declined to comment on this story.

Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

Vincent Briganti, a partner at the firm, filed the first suit seeking class action status in November on behalf of Dominick Cognata, a trader who alleges he suffered losses due to J.P. Morgan’s illegal trading conduct in the silver and gold futures and options markets.

That was after the federal court in Connecticut unsealed a criminal plea agreement by John Edmonds, a former J.P. Morgan metals trader. In his guilty plea, Edmonds, who is 36-years old, admitted that he and other “unnamed co-conspirators” fraudulently manipulated the precious metals markets while they were employed at J. P. Morgan from 2009 to 2015.

Edmonds said he had learned the illegal trading tactics from senior traders, and then used them hundreds of times with the knowledge of and consent of his immediate supervisors.

Briganti’s lawsuit also names John Edmonds and a group of yet-to-be-identified precious metals traders and the bank as defendants.

On Wednesday, the lawyers sent a letter to Judge Koeltl saying they were having difficulty locating Edmonds to serve him legal papers and requested a 30-day extension to do so, which the judge granted on Thursday. Briganti noted that they have been in contact with Edmonds’ attorney in the criminal case. Edmonds’ attorney and Briganti could not be reached for comment.

“We are hopeful that this extension will result in completing service on Mr. Edmonds without formal motion practice and a request for alternative means of service,” Briganti said in the letter.

The next step in the civil case is for the plaintiffs to file an amended class action complaint and set a schedule for defendants to respond.

In addition to the proposed class action, J. P. Morgan also faces a separate civil suit which also accuses the bank of rigging precious metals markets.

end

March 4.2019

Parker City News

JP Morgan faces potential class action lawsuit after guilty pleas by a former metals trader

Traders from across the U.S. are banding together to accuse J. P. Morgan Chase of manipulating precious metals markets for years.

At least six lawsuits, all making similar allegations against the nation‘s largest bank, have been filed in New York federal court in the past month, since federal prosecutors in Connecticut with a former J. P. Morgan Chase metals trader.

The cases could potentially include thousands of people who traded in the precious metals market. The White Plains, N.Y., law firm Lowey Dannenberg is asking the court to combine the cases and name it as the lead.

The law firm‘s commodities group is led by Vincent Briganti, the attorney who filed the first lawsuit on behalf of Dominick Cognata, a New York resident who alleges he suffered losses due to J. P. Morgan‘s trading conduct in the silver and gold futures and options markets.

A combined case, seeking class action status, would include anyone who purchased or sold futures contracts or an option on NYMEX platinum or palladium or COMEX silver or gold between at least Jan. 1, 2009, and Dec. 31, 2015. The lawyers believe that “at least hundreds, if not thousands” of traders would be eligible to join the case.

Named as defendants in all of the lawsuits are John Edmonds, a 36-year old former metals trader at J. P. Morgan, a group of yet-to-be-identified precious metals traders and the bank.

Edmonds, a New York resident, pleaded guilty in October to one count of conspiracy to defraud the market and manipulate prices of precious metals futures contracts and one count of commodities fraud. In the criminal plea, Edmonds admitted that he and other “unnamed co- conspirators” at J. P. Morgan, fraudulently manipulated precious metals markets from 2009 to 2015, the same time frame covered in the class action suits.

Briganti filed the initial class action on Nov. 7, just one day after the Justice Department unsealed Edmonds‘ plea in the U.S. District Court of Connecticut.

Edmonds admitted in his guilty plea that he deployed the illegal trading scheme hundreds of times with the direct knowledge and consent of his immediate supervisors. Plaintiffs say they have suffered economic injury, including monetary losses, as a direct result of actions by Edmonds and the other unnamed J. P. Morgan metals traders in the futures and options contracts.

One of the suits alleges that “the number of unlawful trades that JP Morgan traders executed in precious metals futures markets is at least in the thousands.”

J. P. Morgan declined to comment. Lowey Dannenberg did not respond to a request for comment by CNBC.

The Justice Department‘s criminal investigation is still ongoing and recently caused a separate related civil case to be put on hold for at least six months while the government continues its investigation. That civil lawsuit, which also accuses J. P. Morgan of rigging the precious metals market, was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders.

After reviewing the details of the plea agreement, David Kovel, the attorney for Shak‘s suit, sought to re- interview Edmonds, along with two other current and former senior traders at the bank. However, the government argued that reopening questioning would be detrimental to the ongoing criminal investigation. The federal judge overseeing the proceedings ordered a six-month stay in the civil case.

Kovel declined to comment.

Edmonds was originally scheduled to be sentenced in Hartford, Conn., on Wednesday, Dec. 19, but a court filing on Nov. 27 shows the sentencing has been postponed until June. A spokesman for the U.S. Attorney for Connecticut could not elaborate on why the sentencing was postponed since the court filing is under seal.

-END-

Justice Department stalls another class action in gold market rigging, this one against JPM

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

Proceedings in the federal class-action anti-trust lawsuit against JPMorganChase charging the investment bank with manipulating the gold and silver futures markets —

http://www.gata.org/node/18844

— have been suspended for three months at the request of the U.S. Justice Department, just as the department has arranged suspension of proceedings in the class-action anti-trust lawsuit against Deutsche Bank charging similar market manipulation.

… 

In both cases the Justice Department has told U.S. District Court for the Southern District of New York that proceedings would jeopardize its criminal investigation into market rigging, which has been admitted by a former JPMorganChase trader, John Edmonds, who awaits sentencing.

According to court filings, the White Plains, New York, law firm representing the plaintiffs against JPMorganChase, Lowey Dannenberg, concurred in the government’s request to suspend proceedings. The stay is to continue for three months and may be extended.

The Justice Department’s motion, granted by the court on February 26 —

http://www.gata.org/files/JPMorganChaseClassActionStay.pdf

— said “the government is not seeking an open-ended stay that could indefinitely postpone this matter and thus jeopardize the parties’ interests in a timely resolution.” The motion added, “Any developments in the criminal case during the period the consolidated action is stayed may reduce or completely resolve the need to litigate certain issues in the consolidated action.”

Much of the Justice Department’s motion is redacted to conceal from the public evidence still under investigation. Edmonds has said he and other traders manipulated the gold and silver markets for years with the knowledge of their supervisors at JPMorganChase. In its motion to conceal that evidence, also granted by the court on February 26, the Justice Department said disclosure “could lead to destruction of evidence, flight from prosecution, and otherwise interfere with the government’s ability to conduct its investigation”:

http://www.gata.org/files/JPMorganChaseClassActionStaySeal.pdf

Monetary metals investors may be skeptical of the Justice Department’s stalling the Deutsche Bank and JPMorganChase cases, since the department and the U.S. Commodity Futures Trading Commission do not seem ever to have responded conscientiously to complaints of gold and silver market rigging until the class actions commenced.

How much time will the court give the Justice Department to delay getting to the bottom of the issue? The court might hasten matters if enough monetary metals mining companies protested the harm done to them and their shareholders by market rigging, but of course most monetary metals mining companies don’t mind at all.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

 

end

* * *

Your early TUESDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/9 AM EST

i) Chinese yuan vs USA dollar/CLOSED/ LAST AT: 6.7391/

//OFFSHORE YUAN:  6.7392   /shanghai bourse CLOSED DOWN 15.84 POINTS OR 0.52%

HANG SANG CLOSED DOWN 193.70 points or 0.65%

 

2. Nikkei closed DOWN 48.85 POINTS OR .22%

 

 

 

 

 

3. Europe stocks OPENED MIXED 

 

 

 

 

 

 

 

USA dollar index FALLS TO 97.57/Euro RISES TO 1.1213

3b Japan 10 year bond yield: FALLS TO. –.04/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111255/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 64.35 and Brent: 72.46

3f Gold UP/JAPANESE Yen UP CHINESE YUAN:   ON -SHORE  DOWN/OFF- SHORE: DOWN

3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS AND SELLING THE SHORT END

Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.

3h Oil UP for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +03%/Italian 10 yr bond yield UP to 2.58% /SPAIN 10 YR BOND YIELD DOWN TO 1.01%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.55: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 3.38

3k Gold at $1285.80 silver at: 14.99   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 8/100 in roubles/dollar) 64.39

3m oil into the 64 dollar handle for WTI and 72 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 111.25 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning 1.0196 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1433 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to +0.03%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 2.53% early this morning. Thirty year rate at 2.96%

5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.

6.  TURKISH LIRA:  UP  TO 5.9601.. VERY DEADLY

Stocks Slump On Poor Google, Samsung Earnings; China Slowdown Fears Return

US futures were flat, while European equity markets and Asian stocks slipped on Tuesday as weak Chinese business surveys dampened appetite for risk, while a disappointing outlook and earnings at Samsung, the world’s biggest phone maker, and an ad revenue slowdown at Google sent tech stocks lower.

European shares followed Asian peers into the red after surveys on China manufacturing and services missed forecasts – another sign that Beijing’s efforts to spur growth n the world’s second biggest economy had yet to bear fruit, and that the rebound indicated by the spike in China’s PMI print last month was premature. As reported overnight, both official and private business surveys suggested slower Chinese factory growth this month, dashing hopes for a steady reading or even a faster expansion. Data also showed a slower expansion in its services sector. The full details again:

  • Chinese Manufacturing PMI (Apr) 50.1 vs. Exp. 50.5 (Prev. 50.5).
  • Chinese Non-Manufacturing PMI (Apr) 54.3 vs. Exp. 55.0 (Prev. 54.8)
  • Chinese Caixin Manufacturing PMI (Apr) 50.2 vs. Exp. 51.0 (Prev. 50.8)

And visually:

Asian markets fell after the poor Chinese data amid thin trading. MSCI’s index of Asia-Pacific shares outside Japan was off 0.5%. Bourses in South Korea and Hong Kong both fell.  apan’s financial markets are closed throughout the week as Japanese Emperor Akihito prepares to abdicate in favor of his elder son, Crown Prince Naruhito.

The latest Chinese data underscored questions over prospects for the Chinese economy despite a record credit injections who impact appears to have fizzled early, while investors across the world are on edge over growing signs of a two-speed global economy where a robust United States outpaces its peers.

Adding to China’s economic disappointment were tech stocks, which slumped following Alphabet’s worse-than-expected results after the Monday close, and after Korean smartphone giant Samsung Electronics’s profit missed analysts’ recently reduced estimates and shared a worse than expected outlook. Equities in Hong Kong, South Korea and Australia all dropped, though trading was quieter than usual thanks to a holiday in Japan. As usual, bad news was good news, and shares rose in Shanghai despite poor Chinese manufacturing data.

The Asian weakness initially spread to Europe, where the Stoxx 600 index was off 0.2%, with British shares down 0.2% and bourses in Germany and France down 0.1 and 0.4% respectively in early trading, while futures on the S&P 500 also pointed to a soft open in New York.

The Stoxx Europe 600 nudged into the red, led by declines in telecommunication and mining shares, as futures on the S&P 500 also pointed to a soft open in New York. France reported steady growth for the first quarter, while Spain’s economy also grew faster than expected. Chipmaker AMS jumped 16% after beating forecasts for first-quarter profit. AMS is a supplier to Apple, which is due to report its results later. Banks dragged heavily on the Stoxx 600. Danske Bank, hit by money-laundering scandals, fell more than 6 percent after lowering its outlook for 2019, while No. 1 euro zone bank Santander also slipped after first-quarter net profit. In contrast, Standard Chartered climbed after unveiling plans for share buybacks of up to $1 billion, its first in at least 20 years. The euro added to gains after regional GDP beat estimates and inflation in some of Germany’s regions accelerated in April.

Tech stocks were hit following Alphabet’s worse-than-expected results after the Monday close, and after Korean giant Samsung Electronics’s profit missed analysts’ recently reduced estimates. Equities in Hong Kong, South Korea and Australia all dropped, though trading was quieter than usual thanks to a holiday in Japan. Shares rose in Shanghai despite poor Chinese manufacturing data.

“It’s not a stellar reporting season — I don’t think anyone expected that,” said Nick Nelson, head of European equity strategy at UBS, on Bloomberg television. “But it’s certainly better than the fourth quarter. And that fits with some of the stabilization in the broader data in the euro zone, in emerging markets and in China.”

Emerging-market stocks and currencies were weaker Tuesday following the disappointing Chinese PMI data and as investors awaited further news on progress in trade talks between the U.S. and China. Still, MSCI’s gauge of developing-nation equities remained on track for a fourth successive monthly gain, the longest streak since January 2018. The currency index, however, is set for a third consecutive drop. Seasonal data complied by Bloomberg suggests both measures may retreat in May, as they have in seven of the past 10 years.

In FX, the euro strengthened for a third day as the euro-area economy expanded more than forecast in the first quarter. The pound shrugged off a report that said U.K. Prime Minister Theresa May faces a challenge from activists within her own party opposing her leadership, and GBPUSD rose above 1.30 for the first time in a week. AUDUSD swung to a loss after an official release showed Chinese manufacturing PMI missed.

Elsewhere, South Korea’s won led currency declines, falling to a two-year low after a weak earnings report from Samsung. The Philippine peso was firmer after the country’s credit score was lifted one step at S&P Global Ratings. Turkey’s lira fluctuated as investors pondered the latest statements by central-bank chief Murat Cetinkaya. The focus now turns to the Federal Reserve policy meeting on Wednesday.

In rates, Treasuries unexpectedly reversed direction around the time Europe opened, and reversed gains that came on the back of weaker-than-forecast China manufacturing growth.

In commodity markets, oil prices reversed losses after Saudi Arabia said a deal between producers to withhold output, in place since January, could be extended beyond June to cover all of 2019. Brent crude futures were last at $71.25 per barrel, down 0.4 percent.

In overnight geopol news, North Korea’s Vice Foreign Minister said that their resolve for denuclearisation is unresolved, adding that denuclearisation will be possible only if the US changes their current calculations. If the US fails to present new positions the US will then see unwanted consequences.

In the latest Brexit news, UK PM May is said to be facing a grassroots vote demanding her resignation with Conservative party local chairman and activists calling for an extraordinary meeting with PM to demand her resignation. May’s office thereafter downplayed the significance of the meeting, suggesting that it would not be legally-binding and the outcome of the meeting wouldn’t necessarily be passed. Furthermore, there will have to be a 28-day wait until such a meeting is held.

Looking ahead, traders will be looking for signals from economic data, a Fed policy meeting on Wednesday and earnings reports from the likes of Apple and McDonald’s. Meanwhile, the next round of trade talks between the U.S. and China will get under way this week with significant issues still unresolved. But enforcement mechanisms are “close to done,” according to Treasury Secretary Steven Mnuchin, although this has been said on countless times before.

Market Snapshot

  • S&P 500 futures down 0.07% to 2,941.00
  • STOXX Europe 600 down 0.2% to 390.65
  • MXAP down 0.1% to 162.36
  • MXAPJ down 0.5% to 538.26
  • Nikkei down 0.2% to 22,258.73
  • Topix down 0.2% to 1,617.93
  • Hang Seng Index down 0.7% to 29,699.11
  • Shanghai Composite up 0.5% to 3,078.34
  • Sensex down 0.6% to 38,840.30
  • Australia S&P/ASX 200 down 0.5% to 6,325.47
  • Kospi down 0.6% to 2,203.59
  • German 10Y yield rose 2.7 bps to 0.03%
  • Euro up 0.2% to $1.1203
  • Brent Futures up 0.3% to $72.27/bbl
  • Italian 10Y yield unchanged at 2.213%
  • Spanish 10Y yield rose 2.0 bps to 1.033%
  • Brent Futures up 0.3% to $72.27/bbl
  • Gold spot up 0.4% to $1,284.33
  • U.S. Dollar Index down 0.2% to 97.65

Top Overnight News from Bloomberg

  • Yield-starved investors outside the U.S. are abandoning their currency hedges on American assets, and that’s good news for dollar bulls.
  • Economic growth in the euro area strengthened more than expected in the first quarter, buoyed by resilience in France and Spain.
  • Markets aren’t adequately pricing in the risks from higher oil costs, according to Morgan Stanley Wealth Management. Rallies in stocks and Treasuries that have taken the S&P 500 Index to a record high and 10-year yields down to around 2.5 percent illustrate that investors are complacent about crude prices.
  • The first official gauge of China’s manufacturing sector fell in April, signaling that the economic stabilization seen in the first quarter remains fragile
  • President Donald Trump sued to block Deutsche Bank AG and Capital One Financial Corp. from complying with congressional subpoenas targeting his bank records, escalating the president’s showdown with Democratic lawmakers investigating his finances
  • U.K. Prime Minister Theresa May will face a challenge from activists in her Conservative Party after enough signed a petition opposing her leadership and Brexit strategy to force an emergency vote on her future
  • The U.K.’s opposition Labour Party’s ruling council will seek to thrash out a Brexit strategy Tuesday as leader Jeremy Corbyn tries to head off a split that threatens to derail his election plans
  • A week after the U.S. flagged tighter sanctions on Iranian crude and spurred oil higher, prices are back down to where they were before the announcement
  • U.K. traders are ignoring risk of a hawkish BOE, JPMorgan says

Asian equity markets traded mostly lower following weaker than expected Chinese PMI data and as the region digested a heavy slate of earnings. ASX 200 (-0.5%) was negative in which commodity names led the declines seen across a broad range of sectors due to its high exposure to China and the disappointing factory activity, while KOSPI (-0.6%) suffered amid losses in index heavyweight Samsung Electronics after the Co.’s final Q1 results showed operating profit fell around 60% Y/Y. Elsewhere, Hang Seng (-0.7%) and Shanghai Comp. (+0.5%) diverged with Hong Kong dampened after Chinese Official Manufacturing, Non-Manufacturing and Caixin Manufacturing PMIs all fell short of estimates which overshadowed the earnings releases including the profit growth amongst the Big 4 banks, while the mainland remained afloat on month-end and pre-holiday position squaring as well as the increased hopes for more accommodative policy in the aftermath of the weak Chinese data.

Top Asian News

  • Jokowi Wants Indonesians to Have Say Picking New Capital City
  • Warning Signs Are Flashing in China Stock Market After Surge
  • China Triple Whammy Sees Stocks, Bonds, Yuan All Sink in April
  • Breaking Up: Asian Stocks Fall Out of Lockstep With U.S. Market

Major European bourses have drifted marginally lower since the EU open [Eurostoxx 50 -0.3%], following a mostly downbeat Asia-Pac lead and as the region digested a slew of pre-market earnings.  Sectors are mixed with Telecom names lagging after France’s Orange (-3.5%) missed revenue forecasts and tumbled to the foot of the CAC 40. On the flip side, the energy sector is faring well amidst price action in the oil complex which aided BP (+0.4%), Shell (+0.2%) and Total (+0.1%) climb back into positive territory. Back to earnings, Standard Chartered (+5.7%) extended on opening gains after optimistic earnings coupled with a USD 1.0bln share buyback programme which is expected to reduce its CET1 ratio by around 35bps in Q2. Elsewhere, DSV (+6.8%), Beiersdorf (+2.3%), MTU Aero Engines (+2.2%), and Caixabank (-3.9%) are amongst the movers post-earnings. Finally, Danske Bank (-8.2%) shares fell to the foot of the Stoxx 600 after FT reported that Brussels vows to pursue a probe into the bank’s money laundering scandal.

Top European NEws

  • Greenpeace Norway Says Activists Have Left West Hercules Rig
  • Santander’s Bets on Latin America Pay off as Europe Stumbles
  • Biggest Nordic Banks Hit by Selloff After Bleak Results
  • Tria Says VAT Hike Could Be Inevitable Without Cuts: Il Fatto

In FX, the Dollar is softer across the board after Monday’s soft PCE inflation data and with rebalancing models for the last trading day of April flagging sells signals to varying degrees. Hence, the DXY has slipped back from 98.000+ levels again, and this time the index is probing somewhat deeper blow chart supports that were tested towards the end of last week, but not breached. If 97.544 (50% Fib) and 97.500 fail to hold, 97.460 is next on the radar before a stronger downside target and low from last week looms at 97.258.

  • GBP – The Pound is the best G10 performer and biggest beneficiary of month end Greenback weakness with one bank signalling especially strong Cable buying to balance portfolios. Subsequently, the pair has extended recovery gains from the low 1.2900 area to circa 1.2986 and through several DMAs including the 10, 100 and 200 levels (at 1.2940 and 1.2961 coincidentally).
  • EUR/JPY – Vying for 2nd place in the major ranks and both impacted by data, albeit diversely, as the single currency draws encouragement from firmer than forecast Eurozone GDP and inflation to reclaim the 1.1200 handle. However, the Jpy has now overcome strong resistance at 111.37 to peer above 111.30 in wake of disappointing Chinese PMIs overnight that spurred some risk-aversion and demand for the safe-haven Yen.
  • NZD/CHF/CAD – The next best G10s or gainers due to the more pronounced Usd downturn, with the Kiwi hovering near the top of a 0.6681-56 range and Franc back over 1.0200 within 1.0199-75 trading parameters, while the Loonie is pivoting 1.3350 ahead of Canadian data in the form of monthly GDP and PPI. Note also, BoC Governor Poloz and Wilkins are slated to speak later, and then NZ Q1 jobs and labour costs for Q1 are on tap before attention turns to Wednesday’s FOMC.
  • AUD – The Aussie is lagging on the aforementioned PMI misses from China and in particular the official and Caixin manufacturing reads that only just avoided stagnation. Aud/Usd is straddling 0.7050, as the Aud/Nzd cross slips a bit further below recent peaks of 1.0600+ towards 1.0565.
  • EM – The Try has been volatile again with further weakness vs the Usd in the run up and during the early part of the CBRT’s inflation presentation, but a partial recovery within a 5.9335-9835 band ultimately as Governor Cetinkaya clarified last week’s post-policy meet statement and guidance to maintain that tightening is still an option if upside inflation risks materialise.

In commodities, energy markets are trending higher, albeit remain relatively choppy in early EU trade following comments from Saudi Energy Minister Al-Falih who (in-fitting with reports) said that the Kingdom is ready to meet shortfalls caused by the expiry of Iranian oil waivers on May 2nd.  However, with the upcoming JMMC meeting on May 19th (ahead of the OPEC+ meeting on June 26th) the Saudi Energy Minister also noted that a majority of the cartel’s oil ministers are tilting towards extending the global output deal. Analysts at BNP highlight that there is a “good chance” that OPEC countries and allies will decide to extent the supply curb deal in June, although some changes may be made to the current deal. The energy minister also noted that the nation’s oil output will be significantly lower than 10mln BPD (last recorded around 9.8mln BPD) until May-end, whilst exports will be below 7mln BPD (currently just under 7mln BPD). Meanwhile, IFX reported that Russia’s April oil output stood at 11.23mln BPD, slightly lower than March’s 11.3mln. This, coupled with a receding Dollar aided WTI and Brent futures to climb comfortably above USD 64.00/bbl and USD 72.50/bbl respectively. Elsewhere, precious metals are also benefitting from the weaker Greenback with spot Gold meandering just below its 100 and 200 DMAs at 1293.11 and 1297.40 respectively. Meanwhile, turning to base metals, downside seen from disappointing China Manufacturing data has been offset by the softer Dollar with copper now closer to intraday highs and just a whisker away from its 50 DMA at 2.9054.

US Event Calendar

  • 8:30am: Employment Cost Index, est. 0.7%, prior 0.7%;
  • 9am: S&P CoreLogic CS 20-City MoM SA, est. 0.2%, prior 0.11%; 20-City YoY NSA, est. 2.95%, prior 3.58%
  • 9:45am: MNI Chicago PMI, est. 58.5, prior 58.7
  • 10am: Pending Home Sales MoM, est. 1.45%, prior -1.0%
  • 10am: Conf. Board Consumer Confidence, est. 126.8, prior 124.1; Pending Home Sales NSA YoY, est. -4.0%, prior -5.0%
  • 10am: Conf. Board Present Situation, prior 160.6; Conf. Board Expectations, prior 99.8

DB’s Craig Nicol concludes the overnight wrap

The first couple of days of the week here in the UK have required a strict routine recently. Get through Monday avoiding all social media involving Game of Thrones until the evening when you can then rush home and watch it, and then speculate all day Tuesday with your colleagues about what happens next. As Jim was waiting for his house move to start series 8, we’ve had to remain tight-lipped but the flood gates have now opened since he’s been off, especially after last night’s blockbuster. We’ll politely refrain from saying any more and spoiling the plot for those who haven’t yet watched it.

Markets are stuck in a similarly welcome routine of their own at the moment as US equities continue to nudge higher to fresh record highs. Last night’s +0.11% close for the S&P 500 was the third new closing high for the index in the last week while the NASDAQ (+0.19%) likewise closed at a new high – though it is trading lower overnight after Google’s tepid earnings. The DOW (+0.04%) is still -1.02% off its own all-time high; however, it does feel more like when rather than if it’ll eclipse that level. The VIX ticked +0.38pts higher to 13.11, but remains near the bottom of its year-to-date channel. Remarkably, the VIX has traded in an intraday range of just 3.36pts for all of April. The last time we had a smaller range during a month was February 2017. One key market indicator that has snapped out of its recent range is the US 2s10s yield curve, which rose +1.9bps yesterday to 23.7bps. That’s its steepest level since November, and it was accompanied by a general rise in yields yesterday. Yields on Treasuries and Bunds rose +2.8bps and +2.5bps, respectively. This helped bank stocks, which powered equity gains on both sides of the Atlantic, with bank stock indexes equally gaining +1.32% in both the US and Europe.

Anyway, a soft PCE inflation report in the US yesterday – albeit one which was largely baked in post Friday’s data – got the ball rolling;however, the relatively muted price action likely better reflected what is still an exhausting week ahead of big macro events and earnings.

Indeed, this morning we’ve had China’s PMIs for April where both the official (50.1 vs. 50.5) and Caixin (50.2 vs. 50.9 expected) manufacturing readings have disappointed. They also dropped from 50.5 and 50.8, respectively, last month. The official non-manufacturing reading also declined half a point to 54.3 (vs. 54.9 expected) leaving the composite 0.6pts lower at 53.4. The good news is that the composite reading is still higher than the five months prior to March, while the manufacturing reading is above 50 for a second consecutive month, with underlying components including new orders looking healthy. So, consolidation following a big bounce in March is probably the most appropriate way to describe the data.

Equity markets in China are a little higher post that data with the Shanghai Comp up +0.43% and CSI 300 up +0.19%. Positive trade comments from Mnuchin appear to also be helping. He said on Fox News that the US has “made more progress than ever before” towards a real agreement. A reminder that Mnuchin and Lighthizer travel to Beijing today. Meanwhile, the rest of Asia is a little softer with the Hang Seng (-0.48%) and Kospi (-0.55%) down. The latter seems to be suffering following an earnings miss for Samsung. In FX, Sterling is little changed overnight after the Sun reported that more than 10% of chairmen and women of local parties had signed a petition calling for PM May to resign, thus meeting the threshold for an emergency meeting.

Meanwhile, after the close last night Alphabet’s results came in a bit soft, with revenues surprisingly missing expectations. The company reported overall sales of $29.5 billion, less than the $30.0 billion expected. Profits came in at $6.7 billion, down almost 30% versus the same period last year, but most of that was attributable to a $1.7 billion fine to the European Commission. The stock price, after closing at an all-time high in advance of the earnings report, fell as much as -7% in overnight trading, sending NASDAQ futures -0.25% lower this morning.

Turning back to yesterday, the USD was little changed; however, EM currencies including the Argentinian Peso (+3.50%) had a better day boosted by the announcement from Argentina’s central bank that it would start selling dollars to stabilize the currency. In Europe, the STOXX 600 (+0.08%) recovered from early losses to just about finish onside while the DAX rose +0.10%. Spain’s IBEX (+0.12%) erased losses from earlier in the day to close in line with the rest of Europe after the weekend election result, and 10y Spanish bond yields fell -1.2bps despite the broader bond selloff. Elsewhere WTI oil (+0.32%) rose after declining -4.52% over the preceding three sessions.

Just on the details of that inflation data in the US where the March core PCE deflator was confirmed at 0.0% mom in March compared with expectations for a +0.1% reading. The extra few decimals showed it was a more marginal miss at +0.046%; however, the annual rate, which nudged down from +1.7% to +1.6% yoy was +1.553% with the extra decimal places and so a whisker away from rounding down to an even lower +1.5%. Our US economists noted that the 3-month annualized change is now just +0.7% and the lowest since early 2015 too. Their full thoughts, parsing the various inflation measures and their associated implications for Fed policy, can be found here .

So clearly a soft set of data even if the market had priced much of it in post Friday’s Q1 details. That all being said, our US economists have noted that there are two reasons to expect core PCE to bounce back next month, however. The first is the read-through from the recent bounce in equities for financial services and portfolio management services following a plunge earlier this year, and the second is that core PCE has tended to outperform core CPI in April over recent years.

Other US data didn’t really move the needle. March personal spending rose +0.9% mom versus expectations for a +0.7% rise, but personal incomes rose only +0.1% versus +0.4% expected. Separately, the Richmond Fed manufacturing survey fell -4.9 points to 2.0, a notable decline but still above the negative levels seen in December-January.

Meanwhile, the European Commission’s April confidence indicators were hardly encouraging and underscored the problems facing the manufacturing sector, as the headline economic confidence reading fell -1pt to 104, its lowest level since September 2016. The industrial confidence reading dropped -2.5pts to -4.1, its lowest reading since September 2014. The consumer and services confidence readings were flat and above recent lows, but still a bit off their peaks from last year. Separately, March M1 money supply growth came in better than expected at +7.7%, up from +6.9% in February. Digging into the credit data, however, showed weak corporate loan flows, which pushed the credit impulse to -0.6pp of GDP, its fourth consecutive negative print.

In terms of the rest of the day ahead, all eyes this morning will be on the Q1 GDP reading for the Euro Area where the consensus is for a +0.3% qoq print. We’ll get the data for France prior to that while Italy is due out a little later. Also on the cards today are preliminary CPI data for France, Germany and Italy, while this afternoon we’ve got the Q1 ECI in the US along with the February S&P CoreLogic house price index data, Chicago PMI for April, March pending home sales and April consumer confidence. Away from that we’re due to get comments from the BoE’s Ramsden while Lighthizer and Mnuchin travel to Beijing for more trade talks. The big earnings highlight is Apple after the close tonight, while Pfzier, Merck, McDonalds, Airbus, General Electric and ConocoPhillips are also on the cards. So it should be a busy day.

end

3. ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 15.84 POINTS OR 0.52% //Hang Sang CLOSED DOWN 193.10 POINTS OR 0.65%  /The Nikkei closed/ DOWN 48.85 POINTS OR .22% Australia’s all ordinaires CLOSED DOWN .48%

/Chinese yuan (ONSHORE) closed DOWN  at 6.7391 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 64.03 dollars per barrel for WTI and 72.83 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.7391 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.7393/ TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/SOUTH KOREA

NORTH KOREA
end

3 b JAPAN AFFAIRS

 

end

3 C CHINA/CHINESE AFFAIRS

 

China/

Stocks dip after China’s all important mfg PMI falters

(courtesy zerohedge)

Stocks, Yuan Dip After China PMI ‘Green Shoots’ Dry Up

Nasdaq futures – already hammered by Google’s results – legged lower along with Yuan after China’s PMI prints for April disappointed the green-shoot-believers, slumping back towards contraction.

After all the excitement sparked by the March PMI bounce, China’s April data is big disappointment with China’s official manufacturing and non-manufacturing prints both sliding back (from 50.5 to 50.1 and from 54.8 to 54.3 respectively) with the Caixin China manufacturing PMI tumbling back to 50.2 from 50.8 (and 50.9 expected).

Commenting on the China General Manufacturing PMI™ data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said:

“The Caixin China General Manufacturing Purchasing Managers’ Index eased to 50.2 in April, down from a recent high of 50.8 in the previous month, indicating a slowing expansion in the manufacturing sector.

1) The subindex for new orders fell slightly despite remaining in expansionary territory. The gauge for new export orders returned to contractionary territory, suggesting cooling overseas demand.

2) The output subindex dropped. The employment subindex returned to negative territory after hitting a 74-month high in March. According to data from the National Bureau of Statistics, the surveyed urban unemployment rate remained at a relatively high level despite edging down in March, suggesting that pressure on the job market remained.

3) While the subindex for stocks of purchased items returned to contractionary territory, the measure for stocks of finished goods fell more markedly. The gauge for future output edged up, pointing to manufacturers’ desire to produce and stable product demand. The subindex for suppliers’ delivery times rose further despite staying in negative territory, implying improvement in manufacturers’ capital turnover.

4) Both gauges for output charges and input costs edged down. There were only small changes in upward pressure on industrial product prices. We predict that April’s producer price index is likely to remain basically unchanged from the previous month.

“In general, China’s economy showed good resilience in April, yet it stabilized on a weak foundation and is not coming to an upward turning point. The Politburo meeting signalled that in the first quarter of this year China had adjusted its countercyclical policy marginally. As pressure on the economy remains in the second quarter, we expect that there will be minor adjustments to the policy but not a turnaround.

The reaction was a dip in yuan and leg lower in US futures…

 

END
CHINA/USA
A warning shot:  The USA warns China on its use of Maritime fishing boats acting as Militia.
(courtesy zerohedge)

Warning Shot Across The Bow:” US Warns China On Aggressive Acts By Maritime Militia

Earlier this month, we reported that 275 Chinese fishing militia and Coast Guard vessels surrounded the island of Thitu in the South China Sea, which is currently being occupied by the Philippines. The US recently delivered a stern message to Beijing about its aggression in the highly disputed body of water, announcing that Chinese fishing militia and Coast Guard ships would be treated as military vessels.

Admiral John Richardson, head of the US Navy, described how he told, vice-admiral Shen Jinlon of the Chinese People’s Liberation Army Navy (PLAN), back in January, that the Trump administration would label the Coast Guard and the maritime militia as military vessels.

“I made it very clear that the US navy will not be coerced and will continue to conduct routine and lawful operations around the world, in order to protect the rights, freedoms and lawful uses of sea and airspace guaranteed to all,” Admiral Richardson told the Financial Times.

China’s Coast Guard has more than doubled its feet to over 130 ships in the last decade, making it the largest coast guard in the world. Beijing trains and provides financial subsidies to the maritime militia, an armed reserve force of civilians and fishing boats, has significantly increased in size since 2015.

In its last annual report on the PLAN, the Pentagon said the fleet “plays a major role in coercive activities to achieve China’s political goals without fighting.”

In 2H17 through 1H18, the maritime militia sailed through the East China Sea with commercial grade laser pointers — striking low-flying American warplanes with damaging beams of light.

China has more frequently deployed the maritime militia in the East and South China sea because the US Navy is likely not to respond to aggression from small fishing boats. But that seems to be coming to an end, as the latest warning from Admiral Richardson could provoke a hot conflict.

James Stavridis, a retired US admiral, said Admiral Richardson’s warning is the latest move in the Pentagon to get tough on China.

“It is a warning shot across the bow of China, in effect saying we will not tolerate ‘grey zone’ or ‘hybrid’ operations at sea,” said Stavridis. “A combatant is a combatant is the message, and the CNO (Chief of Naval Operations) is in the right place to warn China early and often.”

Bonnie Glaser, a China specialist at CSIS, a Washington-based think-tank, said: “By injecting greater uncertainty about how the US will respond to China’s grey-zone coercion, the US hopes to deter Chinese destabilizing maritime behavior, including its reliance on coast guard and maritime militia vessels to intimidate its smaller neighbors.”

The warning from Admiral Richardson also affects the Chinese Coast Guard, said Dennis Wilder, a former head of China analysis at the CIA, adding that President Xi Jinping took control of the coast guard in 2018.

“By having both the navy and the coast guard under the Central Military Commission, it improves in wartime the co-ordination and control of maritime forces,” he said. “As China’s coast guard is heavily armed, it is a logical assumption that it would be incorporated into military plans and operations.”

The US Navy has been conducting Freedom of Navigation Operations through the South China Sea, near China’s militarized islands that are considered highly contested areas. Some have warned that labeling the militia and Coast Guard vessels as military vessels would be particularly challenging.

“If the US decides to interpret maritime militia vessels as military, that will lead to increased risk,” said William Choong of the International Institute for Strategic Studies. “With US destroyers in the South China Sea and the continuing Chinese maritime militia operations there, things could go bad very quickly.”

Several weeks ago, China’s Foreign Ministry spokesman Lu Kang said he hopes “non-regional forces don’t stir up troubles in the South China Sea,” after the US Navy amphibious assault ship USS Wasp, carried an unusually large number of Lockheed Martin F-35s, sailed through the South China Sea near the Scarborough Shoal.

China has overlapping economic claims in the South China Sea with Vietnam, Taiwan, Malaysia, the Philippines, and Brunei. While territory disputes remain unsolved, the region remains a flashpoint for the next conflict between the US and China.

END

Vodafone finds hidden backdoors in Huawei network equipment and that will anger China to no end. What will Europe do?

(courtesy zerohedge)

Vodafone Finds Hidden Backdoors In Huawei Network Equipment

As Huawei denies Microsoft’s allegations that it discovered what appears to be a ‘backdoor’ built into the Matebook laptop series, Bloomberg on Tuesday reported on complaints from Vodafone, Europe’s largest wireless provider, about the discovery of what appear to be ‘backdoors’ discovered in Huawei equipment embedded in Vodafone’s Italian wireless network, potentially going back years.

Though Huawei has tried to cast these complaints, detailed in a series of emails obtained by Bloomberg, as innocuous glitches, but Vodafone’s acknowledgement of these concerns appears to support Washington’s warnings that Huawei equipment represents an international security risk – though the European Council and most individual states have done little to prevent Huawei equipment from being used in the Continent’s 5G wireless networks.

BGG

The vulnerabilities identified by Vodafone could grant Huawei access to the ‘fixed-line network’ in Italy, the system that provides Internet service to millions of homes and businesses, potentially exposing a large swath of the Italian population to spying by the Chinese.

After Vodafone approached Huawei in 2011 with its complaints, the Chinese telecoms giant offered assurances that the issues had been fixed; however, further testing revealed that Huawei had mislead Vodafone. What’s more, Vodafone also identified backdoors in its fiber-optic network, potentially exposing Internet traffic in Italy to Chinese spying.

Despite all of this, Vodafone did nothing after discovering backdoors throughout its Italian network and even catching Huawei in a lie when the company said it had fixed the issues, but Vodafone discovered that it hadn’t.

These concerns didn’t stop Vodafone for increasing its reliance on Huawei’s equipment, which underscores why European governments have been so reluctant to heed Washington’s warnings: Huawei is simply too important to Europe’s telecoms infrastructure. Spurning Huawei would put Europe at risk of falling behind the US and China in the race to build out 5G infrastructure. 

Vodafone CEO Nick Read has joined peers in publicly opposing any restrictions on Huawei equipment in Vodafone’s 5G networks.

Most European countries are unlikely to crack down on Huawei over these security concerns.

Europe

And clearly, the issue didn’t sour the Italians on China, since Italy recently became the first G-7 country to join Beijing’s “Belt & Road Initiative”, which has been derided by critics as a “neocolonialist project.”

In addition to the security concerns in the core Italian network, Vodafone also complained about suspected vulnerabilities in routers shipped by the company. But both Huawei and Vodafone cautioned that these could have been the result of an unintentional flaw.

In a statement to Bloomberg, Vodafone said it found vulnerabilities with the routers in Italy in 2011 and worked with Huawei to resolve the issues that year. There was no evidence of any data being compromised, it said. The carrier also identified vulnerabilities with the Huawei-supplied broadband network gateways in Italy in 2012 and said those were resolved the same year. Vodafone also said it found records that showed vulnerabilities in several Huawei products related to optical service nodes. It didn’t provide specific dates and said the issues were resolved. It said it couldn’t find evidence of historical vulnerabilities in routers or broadband network gateways beyond Italy.

“In the telecoms industry it is not uncommon for vulnerabilities in equipment from suppliers to be identified by operators and other third parties,” the company said. “Vodafone takes security extremely seriously and that is why we independently test the equipment we deploy to detect whether any such vulnerabilities exist. If a vulnerability exists, Vodafone works with that supplier to resolve it quickly.”

In a statement, Huawei said it was made aware of historical vulnerabilities in 2011 and 2012 and they were addressed at the time.

But some of BBG’s other sources warned that backdoors were discovered in networks across Europe, and that Vodafone had sought to play down these discoveries.

However, Vodafone’s account of the issue was contested by people involved in the security discussions between the companies.

Vulnerabilities in both the routers and the fixed access network remained beyond 2012 and were also present in Vodafone’s businesses in the U.K., Germany, Spain and Portugal, said the people. Vodafone stuck with Huawei because the services were competitively priced, they said.

Emails obtained by BBG also revealed that some Vodafone executives were shocked by Huawei’s unwillingness to fix the backdoors, and its decision to lie about the issues being fixed.

“Unfortunately for Huawei the political background means that this event will make life even more difficult for them in trying to prove themselves an honest vendor,” Vodafone said in the April 2011 document authored by its chief information security officer at the time, Bryan Littlefair. He noted that Vodafone had made a recent security visit to Shenzhen and said he was surprised Huawei hadn’t given the matter a greater priority.

“What is of most concern here is that actions of Huawei in agreeing to remove the code, then trying to hide it, and now refusing to remove it as they need it to remain for ‘quality’ purposes,” Littlefair wrote.

Of course, Huawei has a lot of market share to lose in Europe, and therefore it’s incumbent on the firm to keep its customers happy.

Huawei

But then again, if telecoms companies in Europe continued to use Huawei equipment in such sensitive capacities after this incident, then apparently switching to Ericsson or Nokia technology isn’t really an option.

END

China/Canada

Relations between China and Canada are now at an all time low as a second Canadian is sentenced to death on drug trafficking

(courtesy zerohedge)

Chinese Court Sentences Second Canadian To Death On Drug Trafficking Charges

The simmering feud between Ottawa and Beijing that erupted after Canadian authorities arrested Huawei CFO Meng Wanzhou may have disappeared from the headlines…but it’s far from over. To wit, on Tuesday, the Jiangmen Intermediate People’s Court sentenced another Canadian to death on drug trafficking charges, making him the second Canadian national to receive a death sentenced in the past year.

According to the Globe and Mail, the Chinese court, in Guangdong province, accused Fan of leading what it called the “extraordinarily serious transnational trafficking and manufacturing of narcotics.” The case dates back to 2012.

Canada

In January, Canadian Robert Schellenberg saw his sentence of 15 years hard labor on drug trafficking charges switched to a death sentence (China frequently sentences convicted drug traffickers to death). Both Schellenberg and Fan Wei, the Canadian sentenced on Tuesday, were convicted of trafficking methamphetamine.

The court sentenced another conspirator to death, but it didn’t disclose his nationality. Several others, including American Mark Swiden and four Mexicans, were also sentenced on drug charges Tuesday. Swiden was given a suspended death sentence, an effective life sentence, but the sentences for the others weren’t disclosed – though the court said the minimum sentence was life imprisonment, according to Reuters.

Between July and November of 2012, the court said, the group manufactured 63.83 kilograms of methamphetamine and 365.9 grams of dimethyl amphetamine. However, most of the details on the case available in the West have come through Swiden’s family, who have proclaimed his innocence. The businessman was arrested despite the fact that no drugs were found on him or in his hotel room; police said they found drugs on an interpreter, who implicated Swiden in the scheme.

Following Meng’s arrest in Vancouver on Dec. 1, Chinese police arrested two other Canadian nationals, including a former diplomat and a businessman who organized trips to North Korea, and is charging them with threatening national security. Both men remain in custody even as Ottawa has demanded their release.

Meng, who is currently out on bail in Vancouver, has denied allegations that she misled banks about Huawei’s business in Iran, violating US sanctions. President Trump once said that Meng’s case could be used as a “bargaining chip” in trade negotiations.

China, which through its English-language press had threatened “severe” retaliation against Canada for the arrest of Meng, who in addition to being Huawei’s CFO is also the daughter of its founder, a Chinese business luminary, has also apparently retaliated against Canada by cancelling Richardson International’s license to ship canola to China.

China has previously executed at least two Canadian citizens for drug crimes.

4/EUROPEAN AFFAIRS

EU

 

end

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

6.GLOBAL ISSUES

A very important commentary from Jeffrey Snider who looks at the global scene.  He states that to him we are entering a huge global slowdown and he references this as Euro dollar no 4 crisis.  All previous crises stem from a lack of dollars held outside the USA

(courtesy Jeffrey Snider  Alhambra)_

Globally Synchronized…

 

Authored by Jeffrey Snider via Alhambra Investment Partners,

The economic sickness is predictably spreading. While unexpected in most of the world which still, somehow, depends on central banking forecasts, it really has been almost inevitable. From the very start, just the utterance of the word “decoupling” was the kiss of death. What that meant in the context of globally synchronized growth, 2017’s repeatedly dominant narrative, wasn’t the end of synchronized as many tried to say but the end of growth.

This was more than an economic factor. A fixed system leading into full, meaningful recovery was supposed to heal more than economy. Those political extremists who had multiplied and spread while waiting for it would be revealed as illegitimate, their complaints nothing more than some form of evil “ism.” The New York Times in January 2018 succinctly described its wider significance:

A decade after the world descended into a devastating economic crisis, a key marker of revival has finally been achieved. Every major economy on earth is expanding at once, a synchronous wave of growth that is creating jobs, lifting fortunes and tempering fears of popular discontent.

Well, purported significance anyway. If globally synchronized growth was “tempering fears of popular discontent”, the risks are pretty clear should there not be any. I wrote last September what wasn’t any sort of special insight:

From 2003 to 2009, it went: globally synchronized growth, decoupling, globally synchronized downturn. From 2010 to 2012, it went: globally synchronized growth, decoupling, globally synchronized downturn. From 2013 to 2016, it went: strong global growth (not synchronized), decoupling, synchronized downturn.

Last year [2017] to this year [2018], it has gone: globally synchronized growth, decoupling. What comes next?

The answer is here before us. Yesterday, the Bank of Canada throws in the towel on its end of the global economy. Last October, the Canadians were thinking how they had to get serious with their rate hikes. Now, officials admit in all likelihood there won’t be any more.

Something sure changed.

Today, Sweden. Sveriges Riksbank, that country’s central bank, follows the Canadian (or European) example. Rate hikes which were scheduled for later this year, perhaps as soon as July, are now forecast for early next year. Its version of QE has now been extended to likely December 2020. And that’s if this current interruption is “transitory” as each central bank currently figures.

What are the chances of that?

Perhaps we should ask the people of the Republic of Korea.

South Korea’s economy suffered its worst quarterly contraction since the global financial crisis as the export-driven economy felt the pinch from weakening growth in China, global trade tension and a downturn in the technology sector.

If there are tensions in trade it has little or nothing to do with “trade tensions” as commonly described. About half of ROK’s GDP is derived from global trade. All of the major export bellwethers, South Korea included, are, say it with me, synchronized. Downturn synchronized.

The more immediate issue is what sure looks like a fourth eurodollar downturn being forced on the global economy by a fourth eurodollar squeeze. International data, central bank action, and consistent market data and prices. Curves more than anything. As my offshore friend Emil has said, paraphrasing George Soros, we are not forecasting #4 we are witnessing it.

Thoughts now must turn to severity, including some detective work about variability across nations even regions, as well as duration. We’ll do that some other day.

For now, though, there is also the big picture to consider beyond just eurodollars. The longer the public stays in the dark about shadow money, this is the best we will ever see. And that’s not good. It can only lead to more genuine if understandably misguided dissatisfaction with the way things are. Popular discontent, The New York Times blandly describes it.

If Euro$ #3 brought out Trump, Bernie, Brexit, populism, AOC, socialism, European dissolution, etc., what does Euro$ #4 do? The Times was right about only the one thing. Had globally synchronized growth been as advertised it would’ve pushed the global trend back toward the center, reversing it away from the extremes.

Synchronized downturn instead, not only does “popular discontent” spread further, the temperature of those already discontented will surely rise. If they distrusted the status quo after 2016…

People around the world have been incredibly patient. For the most part, officials were given ever chance, two, three, and four of them, to get it right. The immediate implication should be easy enough, but it won’t be heeded. Stop listening to central bankers. They really have no idea what they are doing. That’s really all renewed “dovishness” means, and proves.

END

7  OIL ISSUES

 

end

8. EMERGING MARKETS

VENEZUELA

Looks like a coup is under way in Venezuela.

(courtesy zerohedge)

Venezuela Coup? Heavily Armed Soldiers Surround Guaido As US Vows Support For Self-Declared President

update 2Secretary of State Mike Pompeo says Guaidó has the White House’s full support in the opposition leader’s call for military uprising against Maduro, and is monitoring closely.

There are further unconfirmed reports suggesting limited groups of National Guard soldiers may be defecting to the Guaido-led opposition, and at least some videos coming out of Caracas appear to show clashes between the rival factions.

Embedded video

Thomas van Linge

@ThomasVLinge

🇻🇪: pro-opposition soldiers can be seen arresting pro-regime forces who blocked the main highway in .

Clashes appear to be focused outside La Carlota Air Force base in Caracas, where Guaido’s opposition assembly has announced they will meet later in the day.

Embedded video

TVVenezuela Noticias

@TVVnoticias

Así se encuentra la Base Aérea de La Carlota. Se observa movimiento por parte de funcionarios militares en vehículos. por: http://ow.ly/AXTK30oogSg 

Meanwhile opposition media sources, as well as anti-Maduro hawk Sen. Marco Rubio, are claiming opposition protesters filling Caracas streets are being shot at with live fire from Maduro’s army.

Embedded video

Reporte Ya@ReporteYa

Detonaciones en ráfaga hacen correr a manifestantes en perímetro de La Carlota pic.twitter.com/Q16nfeaCt9@ManualDelGrillo

Most major western media outlets have admitted accurate information on the ground is currently hard to come by as the rapidly unfolding situation remains highly fluid.

* * *

updateReuters journalists have confirmed US-backed Venezuelan opposition leader Juan Guaido is just outside a military base in Caracas surrounded by armed uniformed soldiers — this as he’s claimed to have gathered more defectors.

Per Reuters:

Venezuela’s government is confronting a small group of “military traitors” that are seeking to promote a coup, Information Minister Jorge Rodriguez said on Tuesday on Twitter.

A Reuters journalist saw opposition leader Juan Guaido standing near an air force base in Caracas surrounded by a group of men in uniform.

However, the Maduro government is claiming to be in “full control” over the country and its armed forces.

Guaido issued a video message hours prior saying he was in the “final phase” of his plan to oust strongman Nicolas Maduro, calling for an end to the recently reelected Maduro’s “usurpation.”

View image on TwitterView image on TwitterView image on Twitter

Reuters Top News

@Reuters

Tear gas fired at Venezuela’s Guaido while gathered with men in military uniform https://reut.rs/2ZL8DT3 

The US-recognized “Interim President” told CNN, “We have the support of a big sector of the armed forces and in the coming hours we’ll be consolidating all their support near the transition in Venezuela.”

Edward Snowden

@Snowden

Big: Venezuela’s opposition leader just launched a coup. Reports coming in that the government is now blocking access to social media in response. Any interference with the right of the people to communicate freely must be condemned. https://twitter.com/NBCNews/status/1123189271274360833 

NBC News

@NBCNews

Venezuelan opposition leader Juan Guaido has called for a military uprising in a video shot at a Caracas air base. https://nbcnews.to/2ZMgpfu 

Meanwhile, all major social media sites and messaging apps have been reported blocked throughout the country. Caracas officials have confirmed the government is confronting a small group of “traitors” attempting a coup.

* * *

Multiple reports say a military coup attempt is ongoing Tuesday morning in Venezuela as an anti-Guaido militia loyal to opposition leader and US-backed Juan Guaidó tries to establish military control of key points across the capital of Caracas and other major cities.

Information Minister Jorge Rodriguez confirmed via social media the government is in the midst of putting down what’s being described as a “small coup” by military “traitors” working with the right-wing opposition.

 

File photo of Venezuela soldier in Caracas, via AFP

The AP has confirmed ongoing clashes between coup supporters and police inside Caracas, including reports of tear gas being fired, moments after Guaido issued statements in a video calling for a military uprising. Guaido was shown in the video accompanied by detained activist Leopoldo Lopez and surrounded by well-armed soldiers.

Crucially, Lopez said he was liberated from captivity where Maduro had put him under house arrest for leading opposition unrest in 2014, and in the video called on all Venezuelans to peacefully take to streets.

Juan Guaidó

@jguaido

En el marco de nuestra constitución. Y por el cese definitivo de la usurpación. https://www.pscp.tv/w/b5gQ9TUwMjc4NDN8MXJteFBlakJydlhLTlWvemxFNY_71g4QomAN12W3ykWFevDO_7lCRAawcIAW 

Juan Guaido @jguaido

The AP described the video which apparently sparked the subsequent anti-Maduro action in Caracas:

In the three-minute video shot early Tuesday, Guaido said soldiers who took to the streets would be acting to protect Venezuela’s constitution. He made the comments a day before a planned anti-government rally.

“The moment is now,” he said, as his political mentor Lopez and several heavily armed soldiers backed by a single armored vehicle looked on.

“Everyone should come to the streets, in peace,” Lopez said further. The past months have seen multiple failed attempts to generate some kind of mass military and civilian uprising against Maduro, but so far all attempts have failed to generate any significant momentum, size, or staying power.

Embedded video

BNL NEWS@BreakingNLive

BREAKING NEWS: Interim President of Venezuela Juan Guaido has started a military coup against Maduro. Heavily armed military forces are in various locations across the capital and other major cities

So far Venezuela authorities have confirmed only coming up against a handful of armed militia members, which suggests Tuesday morning’s anti-Maduro action will likely be short-lived.

developing…

END

Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings TUESDAY morning 7:00 AM….

Euro/USA 1.1213 UP .0028 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

 

 

 

USA/JAPAN YEN 111.25  DOWN .430 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.3006   UP   0.0074  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3440 DOWN .0014 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS TUESDAY morning in Europe, the Euro ROSE BY 128basis points, trading now ABOVE the important 1.08 level  RISING to 1.1213 Last night Shanghai COMPOSITE CLOSED DOWN 15.84 POINTS OR 0.52%.

 

 

 

 

//Hang Sang CLOSED DOWN 193,70 POINTS OR 0.65%

 

 

/AUSTRALIA CLOSED DOWN .48%// EUROPEAN BOURSES MIXED

 

 

 

 

 

 

The NIKKEI: this TUESDAY morning CLOSED  DOWN 48.85 OR .22%

 

 

 

 

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED ALL MIXED/

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 193.70  POINTS OR 0.65%

 

 

 

 

/SHANGHAI CLOSED DOWN 15.84 POINTS OR 0.52%

 

 

 

 

 

 

 

 

Australia BOURSE CLOSED DOWN .48% 

 

 

Nikkei (Japan) CLOSED DOWN 48.85 OR .22%

 

 

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1285.80

silver:$14.99

Early TUESDAY morning USA 10 year bond yield: 2.53% !!! UP 0 IN POINTS from THURSDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.96 UP 0  IN BASIS POINTS from YESTERDAY night.

USA dollar index early WEDNESDAY morning: 97.57 DOWN 29 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

And now your closing  TUESDAY NUMBERS \12: 00 PM

 

Portuguese 10 year bond yield: 1.12%  DOWN 1 in basis point(s) yield from MONDAY/

JAPANESE BOND YIELD: -.04%  DOWN 0   BASIS POINTS from MONDAY/JAPAN losing control of its yield curve/

 

SPANISH 10 YR BOND YIELD: 1.00% DOWN 1   IN basis point yield from MONDAY

ITALIAN 10 YR BOND YIELD: 2.56 DOWN 3  POINTS in basis point yield from MONDAY/

 

 

the Italian 10 yr bond yield is trading 156 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES +.01%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.55% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A MASSIVE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

Closing currency crosses for TUESDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/1:00 PM

Euro/USA 1.1205 UP     .0019 or 19 basis points

 

USA/Japan: 111.38 DOWN 0.302 OR YEN UP 30 basis points/

Great Britain/USA 1.3033 UP .01020 POUND UP 102  BASIS POINTS)

Canadian dollar UP 38 basis points to 1.3417

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY closed AT 6.7348    0N SHORE  (DOWN)

THE USA/YUAN OFFSHORE:  6.7408  (YUAN DOWN)

TURKISH LIRA:  5.9675 EXTREMELY DANGEROUS LEVEL.2

the 10 yr Japanese bond yield closed at -.04%

 

 

 

Your closing 10 yr USA bond yield DOWN 2 IN basis points from MONDAY at 2.51 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.95  DOWN 1 in basis points on the day

Your closing USA dollar index, 97.62 DOWN 24  CENT(S) ON THE DAY/1.00 PM/

 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for TUESDAY: 12:00 PM 

London: CLOSED DOWN 22.44  0.30%

German Dax : UP 16.06 POINTS OR 0.13%

Paris Cac CLOSED UP 5.43 POINTS OR  0.10%

Spain IBEX CLOSED UP 53.40 POINTS OR  0.56%

Italian MIB: CLOSED UP 92.79 POINTS OR 0.43%

 

 

 

 

WTI Oil price; 63.96 1:00 pm

Brent Oil: 72.30 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    64.73  THE CROSS HIGHER BY 0.27 ROUBLES/DOLLAR (ROUBLE LOWER BY 27 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO +.01 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  63.89

 

 

BRENT :  71.97

USA 10 YR BOND YIELD: … 2.50…   VERY DEADLY//

 

 

 

 

 

 

 

 

USA 30 YR BOND YIELD: 2.93..VERY DEADLY

 

 

 

 

EURO/USA 1.1219 ( UP 35   BASIS POINTS)

USA/JAPANESE YEN:111.35 DOWN .328 (YEN UP 33 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.50 DOWN 36 cent(s)/

The British pound at 4 pm: Great Britain Pound/USA:1.3038 UP 106POINTS

 

the Turkish lira close: 5.9660

 

the Russian rouble 64.65   UP 19 Roubles against the uSA dollar.( UP 32 BASIS POINTS)

Canadian dollar:  1.3395 UP 60 BASIS pts

USA/CHINESE YUAN (CNY) :  6.7348  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 6.7361 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,+0.01%

 

The Dow closed UP 38.52 POINTS OR 0.15%

 

NASDAQ closed DOWN 54.09 POINTS OR 0.66%

 


VOLATILITY INDEX:  13.11 CLOSED UP .00

 

LIBOR 3 MONTH DURATION: 2.579%//

 

 

 

FROM 2.583

 

 

 

And now your more important USA stories which will influence the price of gold/silver

TRADING IN GRAPH FORM FOR THE DAY/WEEKLY SUMMARY/FOLLOWED BY TODAY

 

S&P Shrugs Off Googlepocalypse As China ‘Green Shoots’ Die

 

Despite weak China PMI overnight, China stocks trod water

 

Spain surged after yesterday’s early dip…

BTW – it’s not just US markets that entirely decoupled from fun-durr-mentals…

US Stocks lumped into the EU close (after Mulvaney spooked stocks with China trade deal headlines) and then ripped back, extending gains after Trump raised the idea of The Fed slashing rates and QE… S&P was glued to unchanged all afternoon…

 

GOOGL spooked Nasdaq futures (as did weak China PMI and Mulvaney)…

With investors having hugged their margin clerks for months, hoping to chase outsized returns during what many have dubbed a melt up, today they are hugging the toilet bowel instead as the year’s hottest trade in stocks is suffering a huge market-value loss over the previously noted Google ad revenue meltdown.

Led by an earnings-driven sell-off at Alphabet, FAANGs are on track to lose more than $100 billion in combined capitalization, and are set to suffer their second-biggest market cap drop of this year.

The culprit of course was Alphabet, which dropped 8.3% after its its ad revenue growth posted a sharp slowdown, resulting in a $68.3 billion market cap loss.  The rest of the drop was due to Apple, whose 2.1% drop resulted in nearly $20 billion wiped out, and came just ahead of Apple’s own results, due after the market closes. When the FAANGs last saw $100 billion erased from their valuations, it was after Apple cut its outlook in January, which wiped almost $70 billion from the iPhone maker’s valuation.

This was GOOGL’s biggest drop since Jan 2012

 

VIX and Stocks continue to decouple – Call-buying or protection bid?

 

Treasuries were bid, erasing yesterday’s losses…

 

10Y Yield roundtripped 5bps intraday, fading back to 2.50% by the close…

 

The Dollar Index slipped for the 4th day in a row ahead of the FOMC meeting..

 

The Loonie strengthened despite a dismal miss on GDP

 

Good day for cryptos today…

 

Commodities all rose on the day, as the dollar dipped, led by WTI…

 

Green Shoots, shot?

 

Finally, the S&P 500 is up 17.4% in 2019, making it the fourth best start to a year in history.

However, that may be a bearish signal. Because historically when the January-April return exceeds 15%, the performance for the rest of the year is paltry at best and, at times, a disaster.

 

end

Market trading/this morning:

Stocks Slump After Mulvaney Says Won’t Do Deal With China “If It’s Not Great”

Offering the latest hint at the true depths of the White House’s frustration over the ongoing trade talks with Beijing, Acting Chief of Staff Mick Mulvaney said during an interview at the Milken Institute that the talks couldn’t go on “forever” and would be resolved “one way or another” during the next two weeks.

Echoing a remark made a few weeks back by President Trump, Mulvaney added that the US wouldn’t do a deal with China if it’s not “great”.

Whether or not he intended his remarks to sound like the administration is souring on the prospects for a deal, that’s how the market took it, and stocks moved lower on the headline.

DJIA

Watch the rest of Mulvaney’s interview with Maria Bartiromo below:

 

END

 

ii)Market data/

Chicago manufacturing and services PMI crashes

(courtesy zerohedge)

Chicago PMI Crashes, Biggest 2-Month Drop In Five Years

Was that it for the global economic recovery?

Just hours after China reported disappointing PMI data across the board, with both manufacturing and services surveys posting a drop to levels just above contraction…

… the latest Chicago PMI confirmed that the slowdown is accelerating in the US, as the index tumbled to 52.6 from 58.7, and sharply below the 58.5 estimate. It was also the lowest print since January 2017.

 

The details:

  • Forecast range 56 – 62 from 25 economists surveyed
  • Business barometer rose at a slower pace, signaling expansion
  • Prices paid rose at a slower pace, signaling expansion
  • New orders rose at a slower pace, signaling expansion
  • Employment rose at a slower pace, signaling expansion
  • Inventories fell at a slower pace, signaling contraction
  • Supplier deliveries rose at a slower pace, signaling expansion
  • Production rose at a slower pace, signaling expansion
  • Order backlogs rose and the direction reversed, signaling expansion

More notably, the two-month plunge in the PMI was breathaking and after printing at 64.7 in February, the index has plunged 12.1 points in the past two months, its biggest drop since mid-2014.

 

And with all that, it now appears that China’s gargantuan credit injection which was 40% greater than a year earlier, has now been exhausted and the credit impulse tailwind is over.

END
Consumer confidence spikes higher as labour sentiment is now close to record highs
(courtesy zerohedge)

Consumer Confidence Spikes As Labor Market Sentiment Approaches Record High

Following several disappointing economic reports, including a continued slump in nationwide home prices and a crash in the Chicago PMI, we got a modest sliver of good news when the Conference Board reported that April Consumer Confidence rebounded from 124.2 to 129.2, a sharp beat to the 126.8 expected.

Both estimates of current conditions and economic outlooks improved: the Present Situation Index – based on consumers’ assessment of current business and labor market conditions – increased, from 163.0 to 168.3. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – increased from 98.3 last month to 103.0 this month.

Consumers’ assessment of current conditions improved in April. Those stating business conditions are “good” increased from 34.7 percent to 37.3 percent, while those saying business conditions are “bad” decreased from 12.4 percent to 11.7 percent.

Consumers’ short-term outlook also improved in April. The percentage of consumers expecting business conditions will be better six months from now increased from 17.2 percent to 19.9 percent, while those expecting business conditions will worsen declined from 10.0 percent to 9.1 percent.

Commenting on the report, Lynn Franco, Senior Director of Economic Indicators at The Conference Board said that “Consumer Confidence partially rebounded in April, following March’s decline, but still remains below levels seen last Fall.” Franco noted that “the Present Situation Index, which had decreased sharply last month, improved in April, as did consumers’ short-term outlook. Overall, consumers expect the economy to continue growing at a solid pace into the summer months. These strong confidence levels should continue to support consumer spending in the near-term.”

And with the payrolls report due out in just three days, many were keeping an eye on the reports’ measure of consumer sentimenta bout the labor market as indicated by the “jobs plentiful vs hard to get” indexes: here the respondents’ assessment of the labor market was also far more upbeat, with those stating jobs are “plentiful” increased from 42.5%to 46.8%, while those claiming jobs are “hard to get” decreased from 13.8% to 13.3%. As a result, the difference between the two series rose to 33.5, just shy of the highest print this cycle, and approaching levels last seen just before the dot com bubble burst.

iii)USA ECONOMIC/GENERAL STORIES

Mish Shedlock provides a great commentary on the plight of Wisconsin dairy farmers who are going bankrupt in record numbers and they all blame the tariffs

(courtesy Mish Shedlock/Mishtalk)

Wisconsin Dairy Farmers Going Bankrupt In Record Numbers, Blame Trump Tariffs

Authored by Mike Shedlock via MishTalk,

perfect storm hit Wisconsin dairy farms: Overproduction, Bad Decisions, Trump’s Tariffs

A trio of major errors hit Wisconsin dairy farmers, but the last one, Trump’s tariffs, was the final straw threw many Wisconsin farmers into bankruptcy.

Please consider Stung by Trump’s Trade Wars, Wisconsin’s Milk Farmers Face Extinction.

For decades, Denise and Tom Murray rose before 5 a.m. and shuffled through mud and snow to milk cows on the farm that has been in their family since 1939. This month, after years of falling milk prices and mounting debt, the Murrays sold their last milk cow, taking pictures while holding back tears as the final one was loaded onto a truck and taken away.

“It’s awful hard to see them go out the last time,” said Ms. Murray, 53. “It’s scary because you don’t know what your next paycheck is going to be.”

Over the past two years, nearly 1,200 of the state’s dairy farms have stopped milking cows and so far this year, another 212 have disappeared, with many shifting production to beef or vegetables. The total number of herds in Wisconsin is now below 8,000 — about half as many as 15 years ago. In 2018, 49 Wisconsin farms filed for bankruptcy — the highest of any state in the country, according to the American Farm Bureau Federation.

Short-Term Pain Nonsense

Trump pleads that it’s short-term pain for long-term gain. But it’s tough to see any long-term gain when the intermediate term is bankruptcy.

The Murray’s received all of $400 from Trump’s farm aid package. “In every aspect, it’s not worth it — it’s not worth the fight,” said Mr. Murray.

Price of Milk

The price of milk is about where it was in mid-2010. The price has gone essentially nowhere since late-2014.

The price of new equipment and services and have gone up.

Final Straw

Trump’s the trade wars were the final straw.

  • The new North American trade deal, which is supposed to give dairy farmers more access to Canada’s tightly controlled market, has yet to be ratified by Congress and may never be approved given Democratic opposition.
  • Mr. Trump has yet to remove his metal tariffs on trading partners like Europe, Canada and Mexico, which refuse to lift their retaliatory tariffs [on agricultural goods] until those levies come off.

Overproduction

In 2012, Mr. Walker put into place a program to encourage dairy farmers to step up production with the goal of producing 30 billion pounds of milk a year by 2020. That was easily accomplished by 2016, but the oversupply crippled the industry.

“He wanted to put Wisconsin back into the lead in milk production over California,” said Joel Greeno, a dairy farmer and the president of the Wisconsin advocacy group Family Farm Defenders. “It was more an example of arrogance than practicality.”

Supply Management

Many farmers favor the idea of a supply management program for dairy like the one Canada uses, but the Trump administration has not supported such a program.

Stop the Meddling!

  1. Trump’s tariffs and the counter-tariffs have killed farmers. End the tariffs.
  2. Stop production goals.
  3. Stop worrying about which state is number one.
  4. Stop nonsense about supply management programs.

If some farmers still go under, well too bad.

Nobody guarantees programmers a job. Nobody should guarantee farmers a job either.

Let’s not turn the US into France in a misguided effort to save the family farm.

 

end
A good look at what is going on with respect to mansion prices in New York: answer plummeting due to the restriction in deductibility of taxes
(courtesy zerohedge)

Mansion Crisis: Hamptons Home Sales Tumble To 7 Year Low 

Zerohedge readers have discovered that luxury real estate markets across the country in the last several years – have fallen into a slump. Our core focus has been Manhattan, Greenwich, and the Hamptons, along with West Coast cities.

A new report by appraiser Miller Samuel Real Estate Appraisers & Consultants, confirms that lavish vacation homes in New York’s Hamptons remained under pressure as 1Q19 sales declined to their lowest level in years.

Demand for the most expensive properties (above $10 million) collapsed to a six-year low between January and March. However, demand picked up for the lower end market. About 59% of all 1Q19 Hamptons sales were from homes under $1 million.

 

Appraisers said the tax overhaul passed in 2017 soften demand by capping deductions for mortgage interest and property levies and made vacation homes more expensive on eastern Long Island’s South Fork.

“We are in the middle of this transition period post the new tax law, where the high end is struggling,” Jonathan Miller, president of Miller Samuel, told Bloomberg in an interview. “What’s actually selling is shifting much lower so there’s more inventory exposed.”

Across all price levels, sales in the Hamptons have declined five straight quarters. This has led to an overall decline in the median sale price of homes, down 5.5% versus the same period a year ago. About 300 homes changed hands in 1Q19 was the lowest sales transactions for the first quarter in seven years.

Embedded video

Mark J. Baron@markjbaronre

Unparalleled “A” class gated equestrian estate on over 5 manicured acres features superb riding amenities and a gracious, comfortable farmhouse.

To learn more visit http://143TownLane.com and http://HamptonsLuxuryAgents.com @BHSWorldwide @HamptonClassic

The appraiser said the slump in activity would take nearly seven-and-a-half years to sell all mansions currently listed at the current pace of sales, the longest stretch in appraiser’s records.

Ernie Cervi, senior vice president at brokerage Corcoran Group, said home sales should increase in 2Q, now that tax season is complete, mortgage rates have dropped and volatility in financial markets has declined. The added supply is expected to push home prices lower as buyers gain the upper hand.

“Price adjustment is the trigger,” Cervi said. “That’s what brings people back into the market.”

The wealth of the Hamptons real-estate market is closely correlated with those of nearby Manhattan, another real estate market that is quickly cooling.

END

Democrats and Trump agree on a massive $2 trillion infrastructure plan.  The problem, of course, is that Republicans are in no mood for large scale spending

(courtesy zerohedge)

Democrats Agree To $2 Trillion For Sweeping ‘Bipartisan’ Infrastructure Plan

Not long after Acting Chief of Staff Mick Mulvaney told Maria Bartiromo that he believed USMCA (the Nafta 2.0 trade deal that the Dems have promised to obstruct) had a better chance of passing than a long-hoped for bipartisan infrastructure plan, Nancy Pelosi and Chuck Schumer emerged from a lengthy meeting with President Trump with some interesting news.

The leaders said the talks had gone well, and that the two sides had agreed on a $2 trillion figure for a forthcoming plan to rebuild American bridges, roads railways and other vital infrastructure. Schumer told reporters that another meeting about financing will be held in three weeks.

Amusingly, Republican leaders in the House have told reporters in recent days that there’s no appetite for such a large plan among Republicans in Congress.

Schumer

In a letter delivered to Trump ahead of the meeting, the Democratic leaders advised Trump that a bipartisan deal must include new sources of financing, considerations for clean energy, and protections for labor, women and minority business owners.

Yamiche Alcindor

@Yamiche

New letter from Speaker Pelosi and Senator Schumer outlining the priorities they want for infrastructure talks tomorrow with President Trump at WH meeting.

Judging by the bond market’s reaction (which was pretty subdued), the market agrees with Mulvaney and expect that an infrastructure deal likely won’t happen. Yields remained anchored near sessions lows, suggesting that investors have shrugged off the prospects for an even wider budget deficit.

Treasury

END
TRUMP  becoming more vocal as he demands sthe Fed slash rates by 1% as the FOMC meets
(courtesy zerohedge)

With S&P At All Time Highs, Trump Demands Fed Slash Rates By 1% As FOMC Meeting Begins

Just in case he hadn’t already made his position re: interest rates clear to the FOMC, President Trump apparently wanted to make sure policy makers know their place shortly after their two-day meeting began on Tuesday.

After calling for QE4 and rate cuts earlier this month, Trump is now calling on the central bank to slash interest rates by a full percentage point, which would bring the Fed funds target rate back to 1.25%-1.5%, a level it hasn’t seen in more than a year.

Chamath

Trump also praised Beijing’s latest massive credit injection and despite surprisingly strong Q1 GDP growth (at least in the headline number), Trump said that “with our wonderfully low inflation, we could be setting major records and at the same time make our national debt start to look small.”

Of course, during its last meeting, Jerome Powell made clear that the central bank would ‘pause’ its rate-hike plans for at least the duration of this year.

Donald J. Trump

@realDonaldTrump

China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go…

Donald J. Trump

@realDonaldTrump

….up like a rocket if we did some lowering of rates, like one point, and some quantitative easing. Yes, we are doing very well at 3.2% GDP, but with our wonderfully low inflation, we could be setting major records &, at the same time, make our National Debt start to look small!

Surprisingly, stocks haven’t ramped despite the president moving the goal posts on his rate-cut demands to call for even steeper cuts as US data has at least nominally improved and US stocks have soared to all time highs. A clear pattern has emerged for Trump’s monetary policy demands: The higher the highs in stocks, the steeper the cuts in rates.

How long until Trump calls for the Fed to lower rates all the way back to zero?

 

SWAMP STORIES

Rosenstein submits his resignation letter to Barr

(courtesy zerohedge)

Deputy AG Rosenstein Submits Resignation Letter: “Our Nation Is Safer”

While long-expected, amid two chaos-ridden years as the Justice Department’s No.2, the day has finally come when Deputy Attorney General Rod Rosenstein has reportedly sent his resignation letter to President Donald Trump, will leave post May 11.

“I am grateful to you for the opportunity to serve; for the courtesy and humor you often display in our personal conversations; and for the goals you set in your inaugural address: patriotism, unity, safety, education and prosperity,” Mr. Rosenstein wrote in the letter, which was reviewed by The Wall Street Journal.

In his letter, Mr. Rosenstein cited the Justice Department’s progress in executing the Trump administration’s agenda: fighting violent crime, combating the nation’s drug abuse crisis, toughening immigration enforcement and supporting local law enforcement. “Productivity rose, and crime fell,” he wrote.

“Our nation is safer, our elections are more secure and our citizens are better informed about covert foreign efforts and schemes to commit fraud, steal intellectual property, and launch cyberattacks,” he wrote.

“We also pursued illegal leaks, investigated credible allegations of employee misconduct and accommodated congressional oversight without compromising law enforcement interests.”

Mr. Rosenstein made no mention of the special counsel in his resignation letter, but instead, as WSJ reports, wrote of the Justice Department’s responsibility to avoid partisanship.

“Political considerations may influence policy choices, but neutral principals must drive decisions about individual cases,” he wrote.

“We enforce the law without fear or favor because credible evidence is not partisan, and truth is not determined by opinion polls. We ignore fleeting distractions and focus our attention on the things that matter, because a republic that endures is not governed by the news cycle.”

In a statement, Attorney General William Barr praised Rosenstein for serving the Justice Department “with dedication and distinction”and described Rosenstein’s devotion to the department and its employees as “unparalleled.”

Mr. Rosenstein’s successor, Jeffrey Rosen, currently the No. 2 official at the Transportation Department, is awaiting a likely confirmation by the Senate.

Developing…

END
Trump now sues Deutsche bank as he tries to stop the bank from handing records over to Maxine Waters and Adam Schiff
(courtesy zerohedge)

Trump Sues To Stop Deutsche Bank Handing Records To Maxine Waters & Adam Schiff

President Trump, his three eldest children, the Trump Organization and the family trust have jointly filed a lawsuit to try and stop Deutsche Bank and Capital One from turning over records of its financial dealings with the Trump Organization to the House Judiciary and Intelligence Committees, according to Bloomberg. In the lawsuit, the family’s lawyers contend that Congress is simply trying to “harass” their client with a “fishing expedition” (as Democrats cast about for a new narrative with which to bludgeon the president now that the Russia collusion narrative has fizzled with the publication of the Mueller report).

DB

Trump’s lawsuit is similar to another he filed to block a subpoena sent by Elijah Cummings on behalf of the House Government Oversight and Accountability Committee to Mazar’s, the Trump Organization’s accounting firm.

Since winning control of the House in November, Democrats have warned about their plans to ‘let the subpeonaes fly’, and launch investigations into everything from Trump’s finances to any hint of interference from the White House in the DoJ’s decision to challenge the Time Warner-AT&T merger.

Leaks published earlier this year revealed how Deutsche Bank turned down a Trump Organization loan request made during the 2016 campaign. The company had been looking for money to finance renovations at its Turnberry golf club in Scotland. Documents showed the bank had been skittish about being associated with Trump due to his controversial rhetoric, and that senior executives at the bank weren’t aware of the extent of DB’s multi-decade lending relationship with the Trumps. Even after defaulting on a loan and suing the bank during the financial crisis, DB’s wealth management unit continued to do business with Trump.

DB has already started handing over documents to the New York State AG, who is carrying out a separate investigation.

The German lender has already begun the process of giving documents related to loans made to Trump or some of his businesses to the New York state attorney general, who is conducting her own probe, said a person familiar with the matter. The bank hasn’t yet handed over any client-related records to the House committees and will wait for the outcome of the legal proceedings, said the person, asking not to be identified in disclosing internal information.

“The subpoenas were issued to harass President Donald J. Trump, to rummage through every aspect of his personal finances, his businesses, and the private information of the President and his family, and to ferret about for any material that might be used to cause him political damage,” Trump’s lawyers wrote in the introduction to the 13-page complaint filed Monday in Manhattan federal court.

Though Deutsche Bank has been responsible for the bulk of the business lending to the Trump Org since the 1990s, Congress is seeking records from a total of nine financial institutions that have had financial dealings with the Trump Org.

House Democrats’ investigations into President Trump’s finances and potential money laundering tied to Russia have prompted them to demand documents from nine banking giants, according to people familiar with the matter. Deutsche Bank, which lent Trump some $340 million, has been a primary target of the House Financial Services Committee, led by Representative Maxine Waters.

But given Deutsche Bank’s reputation as the “biggest money laundering bank in the world”, as Maxine Waters once branded the bank, it has been the House’s highest-priority target.

Democrats vowed to push ahead with their subpeona, even as DB has decided to wait on complying with the House’s “friendly subpeona” until a judge rules on the Trump lawsuit.

Both Waters and House Intelligence Chairman Adam Schiff have been seeking information from Deutsche Bank since Democrats took over the House majority in January. Schiff said the Frankfurt-based bank has been cooperative with the investigations and their request was a “friendly subpoena.” Such a subpoena is typically submitted when a firm is willing to hand over documents but wants a formal request first.

“We remain committed to providing appropriate information to all authorized investigations and will abide by a court order regarding such investigations,” a Deutsche Bank spokesman said in a statement on Tuesday.

It’s unclear how Capital One plans to respond to the lawsuit.

end

SWAMP STORIES/MAJOR STORIES//THE KING REPORT
and special thanks to Chris Powell of GATA for sending this down for us:

IMF Chair Lagarde said she expected the US and China to reach a trade agreement.  She added, “Everybody would like a little bit more inflation.”  She obviously did not ask us!

https://www.reuters.com/article/us-milken-conference-lagarde/imfs-lagarde-expects-u-s-and-china-to-reach-trade-deal-idUSKCN1S51LP

Later, Uncle Lar surfaced, perhaps piqued that Lagarde did an Uncle Miltie and stole his shtick.

Kudlow said the US and China are ‘pretty close’ to a trade deal and he remains cautiously optimist about securing a deal.

Nomura: The Fed Will Go Large; Expect A 50bp Cut Out Of The Gate… And Soon

https://www.zerohedge.com/news/2019-04-29/nomura-fed-will-go-large-expect-50bp-cut-out-gate-and-soon

Nomura cites a ‘dollar shortage’ as an excuse to cut rates.  Lagarde talks about needing inflation to increase.  They are talking about the same coin.  Most people/nations borrow in dollars.  If you borrow in dollars, you are short the dollar.  You need inflation and/or dollar depreciation.

The dollar has been very strong despite Powell’s U-turn because the European economy is weaker than the US economy and its politics are unsettling.  Europe’s Trump Moment is in the works.

Boeing Hit with New FAA Safety Directive Ahead of Shareholder Meeting

Boeing shares extended declines Monday after the U.S. Federal Aviation Commission said it would impose new safety checks on the planemaker’s 787 series of aircraft.

https://www.thestreet.com/investing/earnings/boeing-hit-with-new-faa-safety-directive-ahead-of-shareholder-meeting-14940775

US FAA issues AD covering Boeing 787 hydraulic leakage due to lightning strikes

https://centreforaviation.com/news/us-faa-issues-ad-covering-boeing-787-hydraulic-leakage-due-to-lightning-strikes-898925

The Fed is looking at a new program that could be another version of ‘quantitative easing’

  • Federal Reserve economists have floated the idea of a “standing repo facility” which would allow banks to exchange Treasurys for reserves
  • There’s considerable support for the plan, but critics say it could represent more dangerous tinkering with financial markets…

https://www.cnbc.com/2019/04/29/fed-looking-at-a-program-that-could-be-version-of-quantitative-easing.html

With a robust economy and stocks at all-time highs, the Fed is floating another asset monetization scheme.  WHY?  The Fed, like other central banks, fears that any downturn will unleash the dreaded debt deflation.  WHY?  The Crisis of 2008-2009 induced unfathomable central bank schemes that prevente

@JackPosobiec: White House aides are concerned fmr Pence Chief of Staff Joshua Pitcock may have left behind FBI listening devices after learning his wife worked for Peter Strzok

    The White House Comms Agency and USSS ordered several different teams to conduct special sweeps for listening devices in all presidential spaces and on official and unofficial communications systems in recent weeks based on credible threat reporting

    Phone was ringing off the hook late into the night [Thursday] here in DC People are scrambling to get on the right side of this before Trump makes his move  And they know there’s not much time left

     We now know that just 9 days after the 2016 election Strzok and Page were planning to use Pence’s Chief of Staff to recruit spies in the White House for the FBI Let that sink in

    Pence fmr Chief of Staff Pitcock helped set up McCabe meeting with Pence on General Flynn where he presented the Strzok 302s. Flynn resigned 4 days later

@JackPosobiec: Grassley and Johnson left the dates off the new text messages and omitted many of them

Be careful to make sure to check the dates and read all the messages in context.  We were never supposed to know [Texts at link] https://twitter.com/JackPosobiec/status/1121762994415910912

Vice President Pence lied about when he learned that Flynn had discussed sanctions with Kislyak.

The purported reason that Flynn was fired was that he had lied to Pence about not discussing sanctions.  These denials had supposedly resulted in Pence backing up Flynn’s story. Here is the current publicly accepted timeline with my emphasis:

    Note, on February 14th, one day after Flynn resigns, Pence’s spokesperson says Pence only learned about Yate’s warning and Flynn’s discussions about sanctions four days earlier on February 9 from the media. This is still their assertion.

     By [Bob] Woodward’s reporting, Pence knew about Flynn’s discussions regarding sanctions with Kislyak long before February 9th, and he did not learn about these discussions from the media. He actually read the transcripts in the situation room with McGahn and Priebus weeks earlier.

    One of the things that has never added up about the Flynn/Kislyak matter is Pence’s role. Pence was in charge of the transition. He would be expected to know what Flynn was saying to the Russians. Now we discover that for at least two weeks Pence sat on the information after reading the intercept transcriptsand only went public with a false story about learning it from the media, when he found out that the story was about to be reported…

https://www.dailykos.com/stories/2018/9/12/1795170/-Revealed-In-Fear-Pence-Lied-About-Flynn

Why did Pence see transcripts from the FBI surveillance of Flynn’s conversations?

According to reports and reported testimony, when Rosenstein wanted to invoke the 25th Amendment and covertly record Trump, there were two cabinet members on board with him.  Was Pence one of them?

VP Pence on Friday: “I was deeply offended to learn that two disgraced FBI agents considered infiltrating our transition team by sending a counter intelligence agent to one of my very first intelligence briefings only nine days after the election.  This is an outrage and only underscores why we need to get to the bottom of how this investigation started in the first place.  The American people have a right to know what happened and if these two agents broke the law and ignored long-standing DOJ policies, they must be held accountable.”

@paulsperry_: Obama CIA under scrutiny for possible illegal DOMESTIC SPYING during the 2016 campaign, as former top intelligence official said to be cooperating with Barr review

Solomon: Obama White House engaged Ukraine to give Russia collusion narrative an early boost

The January 2016 gathering, confirmed by multiple participants and contemporaneous memos, brought some of Ukraine’s top corruption prosecutors and investigators face to face with members of President Obama’s National Security Council (NSC), the FBI, State Department and Department of Justice (DOJ)… [Conspiracy with Ukraine to undermine Trump, help Hillary, cover up for Biden]

    Ukrainian participants said it didn’t take long — during the meetings and afterwards — to realize the Americans’ objectives included two politically hot investigations: one that touched Vice President Joe Biden’s family, and one that involved a lobbying firm linked closely to then-candidate Trump…

    That makes the January 2016 meeting one of the earliest documented efforts to build the now-debunked Trump-Russia collusion narrative and one of the first to involve the Obama administration’s intervention…

    Kulyk said Ukrainian authorities had evidence that other Western figures, such as former Obama White House counsel Greg Craig, also received money from Yanukovich’s party. But the Americans weren’t interested: “They just discussed Manafort. This was all and only what they wanted. Nobody else.”…  https://thehill.com/opinion/white-house/440730-how-the-obama-white-house-engaged-ukraine-to-give-russia-collusion

This is rich!  The reporter that broke the Steele Dossier story is slamming the media for not being more skeptical about the dossier.  The MSM had the story before he broke it; but they thought it was hokey.

Michael Isikoff: Media Should Have Had ‘More Skepticism’ about Steel Dossier

  • Isikoff’s remarks are notable because he is one of a small handful of reporters to have met with dossier author Christopher Steele prior to the 2016 election. Isikoff published an article based on Steele’s information about Carter Page, a former Trump campaign adviser.
  • The reporter now admits that the dossier “hasn’t” checked out.

https://dailycaller.com/2019/04/26/isikoff-skepticism-steele-dossier/

Ann Coulter: In a speech to hundreds of New York bankers and businessmen on Dec. 16, 2016, Jared admitted that Trump was “easy to hate from afar.” But not to worry, he said, Trump wouldn’t be keeping his campaign promises — especially on immigration.  One banker who heard the speech was appalled, shocked by Jared’s arrogance in thinking he could “control” the president.  Joke’s on him. Turns out Jared was right. He does control Trump…

    It was Jared’s idea to fire FBI Director James Comey…

    It was also Jared and Ivanka’s idea to hire Paul Manafort and Michael Flynn…

    Jared wanted Chris Christie fired. He was fired…

    Jared brought in Goldman Sachs’ Gary Cohn to be Trump’s National Economic Council director… he is credited with blocking Trump’s promise to end the carried interest loophole (and many other items on the MAGA agenda)…”Cohn felt Jared was not looking at the practical challenges,” Ward writes. He “was more impressed by famous names.”

    Cohn also sneered that Ivanka “thinks she’s going to be president of the United States.” To her, “this is like the Kennedys, the Bushes, and now the Trumps.”…

    Jared demanded that Trump endorse the widely unpopular establishment Republican, Luther Strange, in the 2017 special Senate race in Alabama to replace Jeff Sessions… No one but Jared could have turned over Sessions’ U.S. Senate seat in the reddest state in the Union to a Democrat…

    Jared and Ivanka were also the brain trust behind hiring Anthony Scaramucci…

    Javanka wanted John Kelly made chief of staff, believing he would be loyal to them. When that turned out not to be the case, they decided to get rid of Kelly. He was gone.  They wanted Steve Bannon fired. He was fired…   http://www.anncoulter.com/columns/2019-04-17.html#read_more

Massachusetts judge who helped illegal immigrant escape ICE arrest indicted…

Newton District Court Judge Shelley M. Richmond Joseph and court officer Wesley MacGregor are charged with obstruction of justice, aiding and abetting; obstruction of a federal proceeding, aiding and abetting and conspiracy to obstruct justice. MacGregor was also charged with perjury before a federal grand jury, U.S. Attorney for the District of Massachusetts Andrew Lelling said during a news conference Thursday…https://www.foxnews.com/us/massachusetts-judge-who-helped-illegal-immigrant-escape-ice-arrest-indicted-federal-authorities-say

Pat Buchanan: A Nation at War With Itself

America surely does not lack for diversity. Its diversity — racial, religious, cultural, ethnic, ideological, political — is visible and ever-growing. What is missing is the concomitant of unity.

   Moreover, it is the more racially, culturally, religiously, ethnically, and ideologically diverse of the parties, the Democrats, that seems the more splintered than a Republican Party that is supposed to be afflicted with the incurable and fatal disease of Trumpism…

http://www.rasmussenreports.com/public_content/political_commentary/commentary_by_pat_buchanan/a_nation_at_war_with_itself

 

-END-

 

I WILL SEE YOU WEDNESDAY NIGHT
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