MAY 22/GOLD FLAT AT $1274.00//SILVER UP 3 CENTS TO $14.47//CHINA AND USA TRADE WAR ESCALATES TO A HIGH DEGREE//USA ISSUES ANOTHER ULTIMATUM TO TURKEY AS THE LIRA FALTERS TO ALMOST 6.10 TO THE DOLLAR///HUGE SWAMP STROIES FOR YOUR TONIGHT//

 

 

 

 

 

 

GOLD: $1274.60  DOWN $0.00 (COMEX TO COMEX CLOSING)

Silver:  $14.47 UP 3 CENTS  (COMEX TO COMEX CLOSING)

Closing access prices:

Gold : 1273.60

 

 

 

silver:  $14.45

 

 

 

COMEX EXPIRY FOR GOLD/SILVER:  TUES MAY 28/2019

 

LBMA/OTC EXPIRY: MAY 31.2019

 

 

 

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

today RECEIVING  0/0

 

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 0 NOTICE(S) FOR NIL OZ (0.000 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  306 NOTICES FOR 3060000 OZ  (.9517 TONNES)

 

 

SILVER

 

FOR MAY

 

 

29 NOTICE(S) FILED TODAY FOR 145,000  OZ/

 

total number of notices filed so far this month: 3483 for 17,415,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  N/A

 

 

Bitcoin: FINAL EVENING TRADE: $  N/A

 

 

 

end

 

XXXX

 

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI FELL BY A SMALL SIZED 76 CONTRACTS FROM 210,722 DOWN TO 210,356  WITH THE 3 CENT LOSS IN SILVER PRICING AT THE COMEX. LIQUIDATION OF THE SPREADERS HAVE STOPPED FOR SILVER BUT IT NOW IN FULL FORCE FOR GOLD. TODAY WE ARRIVED CLOSER TO 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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

 0 FOR MAY, 0 FOR JUNE, 2237 FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2237 CONTRACTS. WITH THE TRANSFER OF 2237 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 2237 EFP CONTRACTS TRANSLATES INTO 11.18 MILLION OZ  ACCOMPANYING:

1.THE 3 CENT LOSS 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 18.340 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 MAY:

20,389 CONTRACTS (FOR 16 TRADING DAYS TOTAL 20,389 CONTRACTS) OR 101.95 MILLION OZ: (AVERAGE PER DAY: 1274 CONTRACTS OR 6.371 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY:  101.95 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 14.556% 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:          843.04    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 SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 76 WITH THE 3 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A VERY STRONG SIZED EFP ISSUANCE OF 2237 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 GAINED A STRONG SIZED: 2161 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2237 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 76  OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 3 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $14.44 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 OVER 1 BILLION oz i.e. 1.022 BILLION OZ TO BE EXACT or 145% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 29 NOTICE(S) FOR  145,000 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:  18.340 MILLION 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 ROSE BY A TINY SIZED 221 CONTRACTS, TO 508,643 DESPITE THE  FALL IN THE COMEX GOLD PRICE/(A LOSS IN PRICE OF $3.65//YESTERDAY’S TRADING)

WE ARE NOW 8 DAYS PRIOR TO FIRST DAY NOTICE AND THE SIGNAL WAS GIVEN TO START THE LIQUIDATION PROCESS OF OUR SPREADERS ON MAY 21.  IT NO DOUBT HAD SOME EFFECT ON PRICE YESTERDAY.

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A  STRONG SIZED 5817 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 5817 CONTRACTS DECEMBER: 0 CONTRACTS, JUNE 2020  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 508,643.  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 STRONG SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6038 CONTRACTS: 221 OI CONTRACTS INCREASED AT THE COMEX  AND 5817 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6038 CONTRACTS OR 603800 OZ OR 18.78 TONNES.  YESTERDAY WE HAD A LOSS IN THE PRICE OF GOLD TO THE TUNE OF  $3.65.AND WITH THAT LOSS IN PRICE, WE  HAD A CONSIDERABLE GAIN OF GOLD TONNAGE OF 18.78  TONNES!!!!!!.?????? 

WITH RESPECT TO SPREADING:  WE CERTAINLY HAD CONSIDERABLE ACTIVITY YESTERDAY. HOWEVER TODAY, THERE WAS NO EVIDENCE OF SPREADING LIQUIDATION.

FOR NEWCOMERS, HERE IS THE MODUS OPERANDI OF THE CORRUPT BANKERS WITH RESPECT TO THEIR SPREAD/TRADING.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

“AS YOU WILL SEE, THE CROOKS HAVE NOW SWITCHED TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NO INTO THE NON ACTIVE DELIVERY MONTH OF MAY HEADING TOWARDS THE VERY ACTIVE DELIVERY MONTH OF JUNE.

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES, HERE IS THE BANKERS MODUS OPERANDI:

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST IS STARTING TO RISE IN THIS NON ACTIVE MONTH OF MAY BUT SO IS THE OPEN INTEREST OF  SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (JUNE), 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.” 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 106,248 CONTRACTS OR 10,624,800 OR 330,47 TONNES (16 TRADING DAYS AND THUS AVERAGING: 6641 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 15 TRADING DAYS IN  TONNES: 330.47 TONNES

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

THUS EFP TRANSFERS REPRESENTS 330,47/3550 x 100% TONNES =9.30% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     2146.01 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 TINY SIZED INCREASE IN OI AT THE COMEX OF 221 DESPITE THE  FALL IN PRICING ($3.65) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A  STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5817 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 5817 EFP CONTRACTS ISSUED, WE  HAD A STRONG SIZED GAIN OF 6038 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5817 CONTRACTS MOVE TO LONDON AND 221 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 18.78 TONNES). ..AND THIS GOOD DEMAND OCCURRED DESPITE THE FALL IN PRICE OF $3.65 IN YESTERDAY’S TRADING AT THE COMEX. WE PROBABLY HAD A TINY PRESENCE OF SPREADING LIQUIDATION TODAY AS OUTLINED ABOVE.

 

 

 

we had:  0 notice(s) filed upon for NIL oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD FLAT TODAY

IT SURE LOOKS LIKE WE WERE CORRECT//THE RAIDS ON THE GOLD INVENTORY AT THE GLD HAS STOPPED

 

TODAY: WE HAD A DEPOSIT OF 1.52 TONNES OF GOLD INTO THE GLD.

 

 

 

 

INVENTORY RESTS AT 739.69 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 3 CENTS TODAY:

NO CHANGES IN SILVER INVENTORY AT THE SLV:

 

 

 

 

 

 

 

 

/INVENTORY RESTS AT 311.616 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 SMALL SIZED 476 CONTRACTS from 210,432 DOWN TO 210,356 AND CLOSER TO 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…..THE SPREADERS HAVE STOPPED THEIR LIQUIDATION IN SILVER BUT HAVE NOW MORPHED INTO GOLD..

 

 

 

 

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: 2237 CONTRACTS  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2237 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 76 CONTRACTS TO THE 2237 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2161 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 10.805 MILLION 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 7.475 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 18.340 MILLION OZ FOR MAY

 

 

RESULT: A TINY SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 3 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 2237 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

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 14.26 POINTS OR 0.49%  //Hang Sang CLOSED UP 48.70 POINTS OR 0.18%   /The Nikkei closed UP 10.92 POINTS OR 0.05%//Australia’s all ordinaires CLOSED UP 0.21%

/Chinese yuan (ONSHORE) closed UP  at 6.9022 /Oil UP to 62.60 dollars per barrel for WTI and 72,00 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9022 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9281 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

 

 

 

 

3A//NORTH KOREA/ SOUTH KOREA

i)NORTH KOREA

 

 

 

b) REPORT ON JAPAN

 

3 China/Chinese affairs

i)China/USA

 

Michael Every of Rabobank’s assessment as to what will happen if China goes ahead and stops exporting rare earths to the USA. He also weighs in on the ban of Huawei on USA technological products like Google’s android

( Michael Every/Rabobank)

ii)Last night: The yuan falters a bit on news that the Trump administration wishes to expand China’s tech blacklist

( zerohedge)

 

iii)CHINA/USA

This morning.
As outlined above Washington is weighing the possibility of blacklisting up to 5 Chinese surveillance firms. We now await China’s move…
(courtesy zerohedge
iv)The boycott begins!!!  Chinese company orders its employees to sop using American products such as eating at KFC
( zerohedge)
v)Expect the trade war to continue for quite some time:  China has now offered its semi conductor industry a 5 year tax break to offset higher tariffs from the Chinese on goods coming into the country( zerohedge)
vi)CHINA/APPLE COMPANY

This is an important commentary:  How Trump’s Huawei ban could blow up the entire Apple’s China business

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

i)UK

 

The threat against China escalates with Britain’s largest cell phone network operators pulling Huawei phones from their 5 G network

( zerohedge)

ii)UK

The world’s economy does not look good:  the UK’s second biggest steel company collapses into bankruptcy. It is interesting that the UK gave the company a loan to pay an EU environmental bill of $152 million…and then right after that the company collapses due to BREXIT concerns

( zerohedge)

 

iii)UK

Theresa May’s latest New Deal is a flop and thus down goes the pound.  Farge soars in the polls
( zerohedge)

iv)FRANCE

My goodness! France threatens 3 journalists with jail time for exposing the French government lies about its involvement in Yemen.
( Middle East Eye)

v)Deutsche Bank/Germany

Renowned geopolitical and financial expert Charles Nenner pounds the table that if Deutsche bank breaks 6.40 euros the entire financial system is in trouble.

(courtesy zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

a)TURKEY

The Lira tumbles as well as the Turkish bourse after the USA issues its latest ultimatum.  Russia is furious at the USA

( zero hedge)

 

b)IRAN/USA/

The USSA holds a temporary victory march as it declares victory in its non war with Iran. It seems that Iran has put attacks on hold.

(zerohedge)

 

c)Syria/Russia

Syria has still not liberated all of its country as North west province of Idlib is still in control of the rebels.

Today the rebels attacked a major Russian air base in big offensive.

( zerohedge)

6. GLOBAL ISSUES

 

GLOBAL ISSUES

A terrific commentary from Michael Every of Rabobank as he describes major problems around the globe.  He calls them 99 lead balloon crashing down.  Pay special attention to the last one where MAINLAND CHINA is trying to remove the legal firewall separating the mainland from Hong Kong. If this would come to fruition it would be devastating to global finances as major hub has been removed.

(courtesy Michael Every/Rabobank)

7. OIL ISSUES

 

 

 

8 EMERGING MARKET ISSUES

VENEZUELA

 

 

 

 

9. PHYSICAL MARKETS

i)Although QE may be over temporarily, the Fed’s debt hoard is now about to soar as new QE will begin.(Bloomberg/GATA)

ii)Spoofing in China is the only manipulation they do?

( Frank Holmes/Kitco/GATA)

iii)A good interview of Chris powell and Frank Holmes on the big manipulation issue

( Frank Holmes/Chris Powell)

iv)Craig Hemke is upset at journalists for being too lazy to look at the documentation on manipulation whichis plenty.

( Craig Hemke/Sprott)

v)Barrick is  now bidding to acquire the minority interests in Acacia mining and then they will engage with the government to end their tax dispute.

( Reuters/GATA)

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

 

 

MARKET TRADING//

 

 

 

 

ii)Market data

ii)USA ECONOMIC/GENERAL STORIES

Qualcomm shares crash after losing a major anti trust case

( zerohedge)

 

SWAMP STORIES

a)This is going to backfire on the Democrats as they are now asserting Trump is engaging in a “coverup” of a crime that has not been committed

( zerohedge)

b)the Democrats are always in favour of infrastructure spending.  Trump realizing this stated that the Dems must stop their false investigation of Russian collusion//obstruction or else there will be no agreement on spending.  Schumer is probably correct:  jaws would drop if they knew what happened in the White House meeting

( zerohedge)

c)You knew that this was coming: Avenatti facing indictment for allegedly stealing from Stormy Daniels

(courtesy zerohedge)

d)Attorney General Barr puts Intelligence bosses Clapper and Brennan on notice

(courtesy Kevin Brock/the Hill)

 

E)SWAMP STORIES/MAJOR STORIES//THE KING REPORT

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A SMALL SIZED 221 CONTRACTS TO A LEVEL OF 508,643 DESPITE THE FALL IN THE PRICE OF GOLD ($3.65) 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 6765 EFP CONTRACTS WERE ISSUED:

0 FOR JUNE ’19: 5817 CONTRACTS , DEC; 0 CONTRACTS: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  5817 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: 6038 TOTAL CONTRACTS IN THAT 5817 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A TINY  SIZED 221 COMEX CONTRACTS.

 

NET GAIN ON THE TWO EXCHANGES : 6038 contracts OR 603,800 OZ OR 18.78 TONNES.

 

We are now in the NON active contract month of MAY and here the open interest stands at 58 contracts, having LOST 15 contracts. We had 15 notices served yesterday so we gained 0 contracts or an additional NIL oz will stand as they guys refused to morph into a London based forward as well as negating a fiat bonus

The next contract month after May is June and here the open interest FELL by 17,224 contracts DOWN to 217,039.  July GAINED 125 contracts to stand at 650.  After July the next active month is August and here the OI rose by 16,057 contracts up to 194,833 contracts.  We no doubt witnessed negligible spreading liquidation today an d as such it did not alter the price in any way.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 0 NOTICES FILED TODAY AT THE COMEX FOR  NIL  OZ. (0.0000 TONNES)

 

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A SMALL SIZED 76 CONTRACTS FROM 210,432 UP TO 210,356 (AND CLOSER TO 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  OI COMEX GAIN OCCURRED with the  3 CENT LOSS IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF MAY.  HERE WE HAVE 225 OPEN INTEREST STAND SO FAR FOR A LOSS OF 2 CONTRACTS.  WE HAD 13 NOTICES SERVED UPON YESTERDAY SO IN ESSENCE WE GAINED BACK THE 11 CONTRACTS LOST YESTERDAY OR AN ADDITIONAL 55,000 OZ WILL STAND FOR DELIVERY AS THESE GUYS REFUSED TO  MORPH INTO LONDON BASED FORWARDS AND AS WELL THEY NEGATED A FIAT BONUS.

 

 

 

 

THE NEXT MONTH AFTER MAY IS THE NON ACTIVE MONTH OF  JUNE.  HERE THIS MONTH GAINED 35 CONTRACTS UP TO 746. AFTER JUNE IS THE ACTIVE MONTH OF JULY, (THE SECOND LARGEST DELIVERY MONTH OF THE YEAR FOR SILVER) AND HERE THIS MONTH LOST 873 CONTRACTS DOWN TO 157,245 CONTRACTS. THE NEXT ACTIVE MONTH AFTER JULY FOR SILVER IS SEPTEMBER AND HERE THE OI ROSE BY 403 UP TO 20,124 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 29 notice(s) filed for 145,000 OZ for the MARCH, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 114,452  CONTRACTS 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  261,303  contracts

 

 

 

 

 

INITIAL standings for  MAY/GOLD

MAY 22 /2019.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
32.15
oz
SCOTIA
1 KILOBARS
Deposits to the Dealer Inventory in oz nil

oz

 

 

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

nil oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
0 notice(s)
 NIL OZ
(0.000 TONNES)
No of oz to be served (notices)
58 contracts
(5800 oz)
0.1804 TONNES
Total monthly oz gold served (contracts) so far this month
306 notices
30600 OZ
.9517 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 1 kilobar entries

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else: 0

 

 

total gold deposits: 0  oz

 

 very little gold arrives from outside/ nothing arrived   today

we had 0 gold withdrawals from the customer account:

 

 

Gold withdrawals;

i)  We had 1 withdrawal:

i)out of Scotia:  32.151 oz (one kilobar)

 

 

.

total gold withdrawals;   32.15 oz

 

 

i) we had 1 adjustments today
out of JPMorgan:
792,4200 oz was adjusted out of the dealer and this landed into the customer account of JPMorgan and we should deem this as a settlement
(,2426 tonnes)

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 0 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 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 (306) x 100 oz , to which we add the difference between the open interest for the front month of MAY. (58 contract) minus the number of notices served upon today (0 x 100 oz per contract) equals 36,400 OZ OR 1.132 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 (306 x 100 oz)  + (58)OI for the front month minus the number of notices served upon today (0 x 100 oz )which equals 36,400 oz standing OR 1.132 TONNES in this NON active delivery month of MAY.

We gained 0 contracts or an additional NIL oz will stand for delivery as they refused to morph into a London based forwards.

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 6.233 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 1.132 TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

IF THIS IS GOING ON IN MAY, I JUST CAN’T WAIT TO SEE WHAT WILL HAPPEN IN JUNE WHICH IS A HUGE DELIVERY MONTH.

 

 

 

 

 

total registered or dealer gold:  200,412.535 oz or  6.233tonnes
total registered and eligible (customer) gold;   7,690,124.272 oz 239.15 tonnes

 

 

FOR COMPARISON FIRST DAY NOTICE FOR MAY 2018 AND FINAL STANDING MAY 31 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 32 MONTHS 117 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

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
MAY 22 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
1,675,872.352 oz
brinks
CNT

 

 

 

 

 

 

 

Deposits to the Dealer Inventory
NIL oz
Deposits to the Customer Inventory
1,057,684.600 oz
Loomis
No of oz served today (contracts)
29
CONTRACT(S)
(145,000 OZ)
No of oz to be served (notices)
196 contracts
980,000 oz)
Total monthly oz silver served (contracts) 3483 contracts

17,415,000 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/307 milli

into Loomis: 1,057,684.600 OZ

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today:  1,057,684.600  oz

 

we had 2 withdrawals out of the customer account:

 

i) out of Brinks:  828,457.180 oz

ii) Out of CNT: 847,415.172 0z

 

 

 

total withdrawals:  1,675,872.352 oz

 

we had 1 adjustment :

out of CNT:  34,391.420 oz was adjusted out of the dealer and this landed into the customer account of Brinks

 

total dealer silver:  92.451 million

total dealer + customer silver:  305.669 million oz

for years Loomis has been pretty dormant:  now they have brought in over 3 million oz??

 

The total number of notices filed today for the MAY 2019. contract month is represented by 29 contract(s) FOR  145,000  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 3483 x 5,000 oz = 17,415,000 oz to which we add the difference between the open interest for the front month of MAY. (225) and the number of notices served upon today (29 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 3483(notices served so far)x 5000 oz + OI for front month of MAY( 225) -number of notices served upon today (29)x 5000 oz equals 18,395,000 oz of silver standing for the MAY contract month.

We GAINED 11 contracts or an additional 55,000 oz will stand as these guys refused to  morph into London based forwards as well as negating a fiat bonus for their efforts.

 

 

 

 

 

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:  20,346 CONTRACTS

 

 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 50,465 CONTRACTS..

volumes on silver are becoming a lot less lately.

 

..

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 50,465 CONTRACTS EQUATES to 252 million  OZ 36.0% 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

 

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -4.15% (MAY 22/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -2.00% to NAV (MAY 22/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -4.15%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.65 TRADING 12.06/DISCOUNT 4.63

END

And now the Gold inventory at the GLD/

MAY 22//WITH GOLD FLAT TODAY: WE HAD A GOOD 1.52 TONNES OF GOLD DEPOSIT INTO THE GLD/INVENTORY RESTS TONIGHT AT 739.69 TONNES

 

MAY 21/WITH GOLD DOWN $3.65 TODAY: A SURPRISE 2.00 TONNES WERE ADDED  TO THE GLD GOLD INVENTORY//INVENTORY RESTS AT 738.17 TONNES

MAY 20/WITH GOLD UP $1.00 A HUGE 2.96 TONNE DEPOSIT INTO THE GLD//INVENTORY RESTS AT 736.17 TONNES

MAY 17/WITH GOLD DOWN $9.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 733.23 TONNES

MAY 16/WITH GOLD DOWN $11.50: A WITHDRAWAL OF 3.23 TONNES FROM THE GLD//INVENTORY RESTS AT 733.23 TONNES

MAY 15/WITH GOLD UP $1.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 736.46 TONNES

MAY 14//WITH GOLD DOWN $5.45 TODAY: STRANGE!! THE CROOKS DECIDED TO DEPOSIT A HUGE 3.23 TONNES INTO THE GLD INVENTORY//INVENTORY RESTS AT 736.46 TONNES

MAY 13/ WITH GOLD UP ANOTHER $15.40 TODAY: STRANGE! A MASSIVE WITHDRAWAL OF 6.41 TONNES OF GOLD (TO TAME GOLD’S RISE TODAY)/INVENTORY RESTS AT 733.23 TONNES

MAY 10 WITH GOLD UP $2.15 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 9//WITH GOLD UP $4.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 8/WITH GOLD DOWN $3.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 739.64 TONNES

MAY 7/ WITH GOLD UP $1.80: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 6/WITH GOLD UP $2.35: ANOTHER WITHDRAWAL OF 5.88 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 3/WITH GOLD UP $9.35 TODAY: A WITHDRAWAL  OF 1.17 TONNES OF GOLD FROM THE GLD INVENTORY/INVENTORY RESTS AT 745.52

MAY 2/WITH GOLD DOWN $12.30 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 746.69 TONNES

MAY 1/WITH GOLD DOWN $1.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 746.69 TONNES

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

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

MAY 22/2019/ Inventory rests tonight at 739.69 tonnes

*IN LAST 597 TRADING DAYS: 194.28NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 497 TRADING DAYS: A NET 28.44 TONNES HAVE NOW BEEN LOST INTO THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MAY 22/WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS TONIGHT AT 311.616 MILLION OZ

MAY 21: WITH SILVER DOWN 3 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV; A WITHDRAWAL OF 750,000 OZ///INVENTORY RESTS AT 311.616 MILLION OZ//

MAY 20/WITH SILVER UP 6 CENTS:NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 312.366 MILLION OZ

MAY 17/WITH SILVER DOWN 13 CENTS TODAY: A BIG CHANGES IN SLV: A WITHDRAWAL OF 3.185 MILLION OZ FROM THE SLV INVENTORY VAULTS:/INVENTORY RESTS AT 312.366 MILLION OZ//

MAY 16/WITH SILVER DOWN 26 CENTS: NO CHANGES IN THE SLV INVENTORY//INVENTORY RESTS AT 315.551 MILLION OZ//

MAY 15/WITH SILVER UP 2 CENTS TODAY: A BIG CHANGE IN SLV  INVENTORY: A WITHDRAWAL OF 1.031 MILLION OZ//  THE SLV/INVENTORY RESTS AT 315.551 MILLION OZ.

MAY 14/WITH SILVER UP 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV. INVENTORY RESTS AT 316.582 MILLION OZ/

MAY 13//WITH SILVE5 DOWN 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ…

MAY 10/WITH SILVER UP 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 316.582 MILLION OZ///

MAY 9/WITH SILVER DOWN 9 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 316.582 MILLION OZ//

MAY 8/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ///

MAY 7/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ//

MAY 6/WITH SILVER DOWN 3 CENTS WE HAD ANOTHER DEPOSIT OF 891,000 OZ OF SILVER INTO THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ/

MAY 3//WITH SILVER UP 34 CENTS TODAY: A DEPOSIT OF 843,000 OZ INTO THE SLV/TOTAL INVENTORY RESTS AT 315.691 MILLION OZ//

MAY 2/WITH SILVER DOWN ANOTHER 13 CENTS, MIRACUOUSLY THE AUTHORITIES ADD 2.869 MILLION OZ OF SILVER BACK INTO THE SLV/INVENTORY RESTS AT 314.848 MILLION OZ//

MAY 1/WITH SILVER DOWN 23 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ////

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//

 

 

MAY 22/2019:

 

Inventory 311.616 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 2.05/ and libor 6 month duration 2.56

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

G0LD LENDING RATE: + .51

 

XXXXXXXX

12 Month MM GOFO
+ 2.34%

LIBOR FOR 12 MONTH DURATION: 2.65

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.31

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

UK’s Massive £5 Trillion Plus Real Debt Will Result In Currency Crisis (GoldCore Video)

  • While all the focus is on Brexit, the UK faces a debt and currency crisis
  • UK has over $8T in external debt: 2nd largest debtor in the world after the U.S.
  • True UK government debt exceeds £5 trillion as pension liabilities not in official numbers
  • Total UK national nominal debt surged over £2 trillion; Increasing at over £5k per second
  • Total debt (government, private, business & bank debt) as a percent of GDP is over 500%
  • Total UK debt could total £6.7 trillion by 2023, rising to nearly 260% of GDP – PWC
  • Diversify and own gold in the most cost effective way (CGT free gold sovereigns and gold and silver Britannias in the UK) and safest way in fully allocated and fully segregated storage

WATCH VIDEO HERE

 

Own Gold & Silver Coins (CGT Free in the UK) Stored In Zurich With Six Months Free Storage

News

Sterling dips lower after biggest weekly drop from Brexit in six months

Gold ends at nearly 3-week low as dollar, stocks perk up

Gold eases as placid Fed supports dollar

Global stocks rally as U.S. eases Huawei restrictions

Zimbabwe’s economy pronounced ‘DEAD’ & set to plunge another 20% this year

Russian central bank lowers U.S. dollars share in reserves due to possible risks

Commentary

British Pound: “More Stormy Conditions for Sterling” vs. Euro and Dollar as No Brexit Deal Likely in 2019 says Analyst

Advice From Fund Managers? Sell the Pound

Are We Running Out Of Gold?

Deutsche Bank Very Dangerous to Global Banking System

The Global Collateral Trap & An Asset Market Collapse (w/ Michael Howell)

LBMA Gold Prices (USD, GBP & EUR – AM/PM Fix per ounce)

21-May-19 1276.00 1271.15, 1004.85 998.62 1144.19 1139.84
20-May-19 1275.25 1276.85, 1000.05 1003.22 1142.62 1143.42
17-May-19 1285.80 1280.80, 1007.55 1005.17 1152.08 1146.70
16-May-19 1295.55 1291.70, 1009.67 1009.46 1155.76 1154.78
15-May-19 1298.90 1299.10, 1005.87 1011.87 1158.75 1161.53
14-May-19 1297.60 1298.40, 1002.14 1005.48 1154.34 1158.04
13-May-19 1282.95 1295.60, 985.95 994.89 1142.47 1151.27

 

Mark O’Byrne
Executive Director
end

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

Although QE may be over temporarily, the Fed’s debt hoard is now about to soar as new QE will begin.

(Bloomberg/GATA)



iii) Other Physical stories
 
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 WEDNESDAY 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: 6.9022/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9281   /shanghai bourse CLOSED DOWN 14.26 POINTS OR 0.49%

HANG SANG CLOSED DOWN 48.70 POINTS OR 0.18%

 

2. Nikkei closed  UP 10.92 POINTS OR 0.05%

 

 

 

 

3. Europe stocks OPENED GREEN /

 

 

 

USA dollar index FALLS TO 97.99/Euro RISES TO 1.1166

3b Japan 10 year bond yield: FALLS TO. –.06/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.44/ 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:: 62.60 and Brent: 72.00

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

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 UP FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.08%/Italian 10 yr bond yield DOWN to 2.65% /SPAIN 10 YR BOND YIELD UP TO 0.88%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.73: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 3.38

3k Gold at $1275.00 silver at: 14.45   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 22/100 in roubles/dollar) 64.20

3m oil into the 62 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 110.26 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 1.0089 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1265 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 FALLING to 0.08%

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 2.42% early this morning. Thirty year rate at 2.84%

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

6.  TURKISH LIRA:  UP  TO 6.0992..they are toast

 

Futures Slides As Trade Tensions Escalate

S&P futures were lower on Wednesday as investors sought safety in bonds, the Japanese yen and Swiss franc in muted trade amid renewed worries over the U.S.-China spat after reports Washington is considering cutting off the flow of American technology to as many as five Chinese companies including Hangzhou Hikvision Digital Technology, the world’s largest supplier of video surveillance products, expanding the US crackdown on China beyond Huawei to include world leaders in video surveillance. The dollar and 10Y yield were unchanged ahead of today’s FOMC Minutes.

 

Tuesday’s brief relief over Washington’s temporary relaxation of curbs against Huawei evaporated after reports that the White House is considering further sanctions on Chinese video surveillance firm Hikvision. As Reuters notes, fears of another blacklisting reinforced worries that U.S. President Donald Trump is looking beyond sealing a trade deal with China to a potentially bigger battle aimed at curbing Beijing’s technology ambitions.

“I think the debate is just starting about what the implications of all this could be if it escalates. It’s my biggest concern,” said Simon Webber, lead portfolio manager on the global & international equities team at Schroders. If we get retaliation, if we start deconstructing supply chains, if we get countries asking whether they can rely on products and services overseas, then we’ll have much more uncertainty and a much more worrying environment,” said Webber.

Despite the return of trade fears, Europe’s Stoxx 600 reversed earlier losses as technology and personal-goods shares advanced, after earlier declining with Chinese equities amid fears of a new front in the trade war. Qualcomm tumbled after a the company lost a landmark anti-trust case, wiping out half of the company’s post-AAPL settlement gains.

Qualcomm

Asian stocks edged modestly higher, led by utility and technology firms, after falling on Tuesday. Markets in the region were mixed, with India climbing and Japan slipping, its Topix gauge down 0.3%, driven by Takeda and Keyence. China’s Shanghai Composite also retreated 0.5%, with Kweichow Moutai and PetroChina among the biggest drags. The S&P BSE Sensex Index rose 0.7%, as large financial firms contributed the most to the rally. The latest Trump threat dampened Australia’s post-election optimism slightly, but stocks still hovered near the 11-year highs scaled on Monday. Australia’s stocks index is the only major global bourse to notch up gains since Trump ramped up his battle with Beijing on May 6, largely due to the election euphoria, while South Korea’s KOSPI is the biggest loser.

“Some in the markets will continue to cling on to hopes of the United States and China reaching an agreement at the upcoming G20 meeting,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. “But the ongoing trade conflict looks to be a protracted one, and its potentially negative impact on various economies is becoming a running concern.”

As Bloomberg notes, stock and bond markets have been fluctuating as investors try to size up how much damage the trade war will bring to global economic growth and supply chains, while the Trump administration considers adding video equipment to its growing blacklist of sales to China. With traders in wait-and-see mode, the VIX has been retreating and on Tuesday touched its lowest level in almost three weeks.

“There is a broad expectation for a growth slowdown and the trade tensions are really adding to these kinds of worries,” Jingyi Pan, Singapore-based market strategist at IG Ltd., told Bloomberg TV. “A lot of this may not have followed through to the economic data.”

In FX, amid a modest risk-off sentiment, investors sought havens in the Swiss franc, Japanese yen and German government bonds. The yen strengthened away from two-week lows against the dollar, rising 0.1% to 110.39 yen, while the Swiss franc was higher against the euro and the dollar. Moves across all financial markets were largely muted, though, as many investors preferred to keep to the sidelines. The standout was the pound, which was down 0.2% at $1.2650, its lowest since January amid a deepening crisis over the UK’s exit from the EU after Prime Minister Theresa May’s final gambit failed dramatically.

In emerging markets, stocks extended their advance from the lowest level since January and currencies climbed as traders wait for minutes of the Federal Reserve’s last policy meeting. Russia’s ruble climbed the most among peers and bond yields fell before a regular weekly debt sale. The rand erased early declines after Deputy President David Mabuza asked for his swearing-in as lawmaker to be postponed in what’s seen as President Cyril Ramaphosa making good on promises to clean up his government. South Korea’s won also reversed losses after authorities warned traders that the currency’s recent decline is excessive. They will hold an emergency meeting to discuss the won’s weakness. With the market focusing on Fed minutes, Credit Agricole strategist Dariusz Kowalczyk remains “cautious about EM exposure given that, while most negative news on the U.S.–China front is out, the trajectory of the relationship remains negative and it is difficult to see an offsetting global factor.”

Meanwhile, the Turkish lira languished at the other end of the spectrum, posting the biggest drop among a handful of decliners, as tension between the U.S. and Turkey showed no sign of abating. The currency is also is paying the price for its pre-election efforts to tinker with the m

arkets.

In overnight geopolitics, US state Department said it is seeing signs Syria could be renewing its use of chemical weapons including alleged chlorine attack on May 19th, while it added that US and its allies will respond quickly and appropriately if Syria government uses chemical weapons. Meanwhile, Saudi Arabia’s Cabinet said the country will do what it can to avoid any war following the condemnation of Iranian actions in the region, while it affirmed commitment to achieving balance in oil market and working towards its stability.

The main event on today’s calendar are the FOMC minutes from the most recent Federal Reserve policy meeting. In a Bloomberg interview, St. Louis Fed president and uber dove, James Bullard, said the central bank may have “slightly overdone it” by raising interest rates in December, though it’s premature to talk about a rate cut. Maybe in another 100 points lower in the S&P it won’t be that premature.

In commodities, WTI futures were down 0.6% at $62.567 per barrel after API data showed that U.S. crude stockpiles rose unexpectedly last week. Oil was also pressured by Saudi Arabia reiterating that it would aim to keep the market balanced and try to reduce tensions in the Middle East.

Expected economic releases include mortgage applications and FOMC minutes. Analog Devices, CIBC, Lowe’s, and Target are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures down 0.2% to 2,861.00
  • STOXX Europe 600 down 0.03% to 379.40
  • MXAP up 0.1% to 154.00
  • MXAPJ up 0.2% to 505.31
  • Nikkei up 0.05% to 21,283.37
  • Topix down 0.3% to 1,546.21
  • Hang Seng Index up 0.2% to 27,705.94
  • Shanghai Composite down 0.5% to 2,891.71
  • Sensex up 0.6% to 39,220.90
  • Australia S&P/ASX 200 up 0.2% to 6,510.71
  • Kospi up 0.2% to 2,064.86
  • German 10Y yield fell 1.1 bps to -0.074%
  • Euro up 0.02% to $1.1163
  • Italian 10Y yield fell 5.6 bps to 2.271%
  • Spanish 10Y yield fell 0.8 bps to 0.866%
  • Brent futures down 0.7% to $71.71/bbl
  • Gold spot little changed at $1,274.45
  • U.S. Dollar Index little changed at 98.02

Top Overnight News from Bloomberg

  • The U.S. is considering cutting off the flow of vital American technology to as many as five Chinese companies including Hangzhou Hikvision Digital Technology Co., widening the dragnet beyond Huawei to include world leaders in video surveillance
  • U.S. central bankers may have “slightly overdone it” by raising interest rates in December, though it’s premature to talk about a rate cut, said Federal Reserve Bank of St. Louis President James Bullard
  • Theresa May is facing pressure to abandon her Brexit deal and quit as British prime minister within days, according to people familiar with the matter. Several senior government officials said they were shocked that the premier’s new offer intended to win votes in Parliament for her deal had been so badly received so quickly
  • South Korea became the latest Asian central bank to step up defense of its currency as the U.S.-China trade war took a toll after it warned traders that the won’s recent decline is excessive

Asian equity markets were indecisive as the momentum from Wall St, where all majors gained as Huawei’s reprieve inspired the trade sensitive sectors, somewhat dissipated as markets await the next developments in the US-China trade saga and upcoming FOMC minutes. ASX 200 (+0.2%) and Nikkei 225 (U/C) were mixed for most the session with Australia subdued by weakness in mining related stocks as well as financials, while the Japanese benchmark was kept afloat by recent currency weakness and after varied data releases including better than expected Machine Orders. Hang Seng (+0.2%) and Shanghai Comp. (-0.5%) diverged with the mainland cautious amid ongoing trade uncertainty and with Hangzhou Hikvision heavily pressured after reports that the Trump administration is considering restrictions on the Co. This has also weighed on other tech names, although losses in the broader market were stemmed after a liquidity injection by the PBoC and with the central bank seeking to further reduce borrowing costs for small businesses. Finally, 10yr JGBs initially softened amid gains in Japanese stocks and with participants sidelined ahead of a 20yr auction later, although prices then recovered on strong auction results in which the b/c rose to its highest on record.

Top Asian News

  • Citic, Baidu Are Said to Seek Up to $1 Billion for Online Bank
  • Asia’s Worst Currency Is in Taiwan as Foreign Funds Depart
  • Korea Warns Currency Traders as Won’s Sudden Decline Takes Toll
  • Turkey Burns Bridges With Markets as Costs of Lira Defense Mount

Choppy trade for European indices [Eurostoxx 50 +0.3%] following on from an indecisive Asia-Pac session as the region awaits further impetus in regard to trade talks ahead of tonight’s FOMC Minutes. European equities are now mostly higher as equities gained traction ahead of US’ market entrance. UK’s FTSE 100 (+0.5%) outperforms its peers as exporters are bolstered by the Brexit-dented Pound. Sectors are posting broad-based gains, whilst energy stocks bear the brunt of the falling prices in the complex. In terms of individual movers, Royal Mail (+6.2%) spiked higher on the back of optimistic earnings coupled with a dividend cut to fund a turnaround, whilst Spanish listed DIA (+5.4%) continues to benefit from Santander’s care package, which was announced yesterday. Meanwhile, Babcock (-8.4%) shares plummeted after the Co. noted that the upcoming FY earnings are to be impacted by a number of significant factors. Looking at analysis from Nomura Quant, the report notes that CTAs have dissolved long positions in a majority of regions and are now roughly neutral in the FTSE 100, Nikkei 225, Hang Seng and TAIEX, with bearish positions limited to the KOSPI and TOPIX, albeit bullish stances are ongoing for the DAX and NIFTY 50. Apart for the DAX, CTAs have a low equity exposure, “so the risk of a drop in share prices from systematic cutting of existing long positions looks limited” says Nomura.

Top European News

  • Merkel Was Lobbied for a Top EU Job at Romanian Summit in May
  • UBS Is Poised to Settle Tax Case With Italy for $110 Million
  • U.K. Inflation Climbs Above Target on Energy Costs, Air Fares
  • Draghi Says Euro Zone Must Overcome Impasse on Risk Sharing

In FX, the Sterling’s slump continues, with Cable breaching another technically significant level at 1.2670 after a 360°-plus turnaround from 1.2800+ knee-jerk highs on Tuesday when UK PM May unveiled her new Brexit blueprint with the carrots of a 2nd referendum and temporary EU customs union, while Eur/Gbp has now surpassed strong chart resistance ahead of 0.8800 in the form of the 200 DMA (0.8793) on the way to a 0.8815 high and the cross is on course to extend a run of consecutive rallies to 13 sessions. The marked turnaround in sentiment comes amidst widespread uproar over the latest WA proposal and even more rebellion against the PM, especially from the 1922 faction that is set to meet at 4 pm and could launch a confidence vote as soon as today. Back to the pilloried Pound, 1.2650 could offer symbolic support vs the Dollar ahead of a Fib at 1.2638, if option expiry interest between 1.2665-70 in 500 mn fails to stem the tide, while 0.8840 may cap losses against the single currency. Note, UK inflation data has been largely ignored, but for the record CPI was slightly softer than forecast and PPI input prices well below consensus.

  • DXY – The index remains toppy above 98.000 after several attempts and failures to clear chart hurdles ahead of the 2019 highs, with the Greenback sitting tight and rangebound vs G10 counterparts in advance of the FOMC minutes, bar Sterling as noted above.
  • AUD/CAD/NZD – The non-US Dollars have clawed back some of their recent losses with the Aussie back within touching distance of 0.6900, Kiwi pivoting 0.6500 and Loonie straddling 1.3400. All eyes on the aforementioned account of the Fed’s recent policy meet, but Canadian retail sales data could provide the Cad with some independent impetus beforehand.
  • CHF/EUR/JPY – All treading water vs the Usd as the Franc hovers just above 1.0100 and Euro trades mostly above 1.1150 following yesterday’s brief probe below, but the topside capped ahead of decent expiries at 1.1180 (1.5 bn). Meanwhile, the Yen is meandering between 110.37-62 after reported offers from Japanese corporates and asset managers, and with Fib resistance noted at 110.71 also keeping the headline pair contained.
  • EM – The Rand is on the rebound regardless of softer than anticipated SA inflation data, with Usd/Zar near the bottom end of a 14.4400-3500 range ahead of Thursday’s SARB policy meeting amidst perceptions that the tone will remain hawkish even though there are grounds for a reassessment of projections signalling a hike by the end of 2019. Conversely, the Lira is still struggling and testing support at 6.1000 vs the Buck amidst reports that Russia and Turkey are ready to fulfil S-400 order commitments irrespective of US protestations.

In commodities, WTI and Brent futures are on the backfoot after the API reported a surprise build in US crude inventories (+2.4mln vs. Exp. -0.6mln), marking a 5th consecutive week of builds reported by the institute. Brent futures current reside below the USD 71.50/bbl level whilst WTI futures fluctuates on either side of USD 62.50 with PVM highlighting “critical” support levels at 62.54 and 62.31 which, if breached, could cause a decline in prices towards the 61.63/22 area, according to the analysts. Participants will be looking ahead to the more widely looked at EIA crude inventory report with headline crude stocks expected to decline by just over 2.5mln barrel. Elsewhere, precious metals are relatively tentative and awaiting any US/China update ahead of the FOMC Minutes release later today (preview available in the Research Suite). Meanwhile, copper prices are sliding as the Buck gains more ground against a backdrop of a trade war between the world’s two largest economies. Despite this, mining giant Antofagasta expects the copper market to tighten this year and note a positive outlook for the red metal in 2019 and beyond. Spot copper declined through USD 2.7/lb to touch levels last seen in late January.

US Event Calendar

  • 10am: Fed’s Williams Hosts Economic Press Briefing
  • 10:10am: Fed’s Bostic Makes Opening Remarks at Dallas Fed Conference
  • 2pm: FOMC Meeting Minutes

DB’s Jim Reid concludes the overnight wrap

While the direction of travel for the trade negotiations still feels decidedly negative in the medium-term, markets had their fourth up day in six yesterday. Momentum was helped by news that the Commerce Department has granted a relief period for certain US broadband companies and wireless customers using Huawei equipment. The NASDAQ recouped +1.08% and about two-thirds of Monday’s decline, while the semi-conductor index rose +2.13% – and therefore retraced about half of Monday’s decline. The S&P 500 and DOW also rose +0.86% and +0.77%, respectively, despite retail names struggling following some disappointing results out of Kohl’s (-12.36%) and JC Penney (-7.39%) with both citing the trade spat as a problem for their business.

The move for the wider equity markets saw the VIX fall back below 15 (-1.4pts) though and back to the lowest since May 3rd – the last business day before Mr Trump’s out of the blue first Trade escalation Tweet. It was a broadly similar story in Europe where the STOXX 600 rose +0.47% and the DAX +0.78%. In credit HY spreads were 3-4bps tighter in the US and Europe while in bond markets we saw 10y Bunds touch the lofty heights of -0.063% (+2.3bps) and Treasuries hit 2.426% (+1.1bps). The 2s10s curve did however fall -2.4bps to 16.8bps as the front-end sold off a little more. In commodities gold pulled back -0.25% while a better day for risk also helped EM equities and FX to climb +1.27% and +0.19% respectively.

On the trade front, things were relatively calm yesterday but is again dominating the headlines this morning. The CNH did strengthen yesterday for a second consecutive session for the first time since before the recent trade fracas erupted. While the US’s 90-day reprieve for Huawei was positive, it was noteworthy that President Trump directly linked the Huawei decisions with trade policy, saying that he deferred an initial decision until the trade talks stalled. Chinese state-media editor Hu Xijin said on twitter that the US’s “irrational behaviors” are making Chinese policymakers “wonder if Washington is in a rush to reach a trade deal. Conclusion of the Chinese: drag it out. Americans are about to have a nervous breakdown.” While the market largely ignored the comments, the rhetoric certainly isn’t calming down.

Overnight the New York Times reported that the Trump administration was considering curtailing the flow of American technology to China’s top maker of video surveillance gear, Hikvision. The stock fell as much -9.6% before recovering to trade -4.4% lower. Bloomberg reported that the Trump administration is also considering blacklisting Zhejiang Dahua Technology Co. The stock traded down as much as -8.9% before recovering to trade -4.8% lower.

Markets are largely up in Asia though with the Nikkei (+0.22%), Hang Seng (+0.30%) and Kospi (+0.31%) all up while Chinese markets are trading flattish with the CSI (+0.05%), Shanghai Comp (-0.02%) and Shenzhen Comp (-0.04%). Elsewhere, futures on the S&P 500 are also trading flat (+0.05%) and the Chinese onshore yuan is down -0.11% to 6.9096. In terms of overnight data releases, Japan’s adjusted April trade balance came at -JPY 110.9bn (vs. -JPY 37.5bn expected) as exports declined (at -2.4% yoy vs. -1.6% yoy expected) while imports jumped (at +6.4% yoy vs. +4.5% yoy expected). Overnight BoJ board member Yutaka Harada, a consistent dissenter on BoJ policy, said that a sales tax rise set for October could tip the economy into recession and weigh on prices, delaying progress toward the central bank’s 2% inflation target.

There was volatility in the pound yesterday as Prime Minister May presented a fourth, and likely final, gambit to get her WA deal passed, and the reaction was not positive. The pound initially rallied as much as +0.69% on the pre-speech headlines (especially around potential 2nd referendum language), but it ultimately retraced to end -0.19% weaker after the adverse reaction by MPs became clear.Her ten-point plan included a new provision to let Parliament vote for the option of a second referendum if they backed her deal first, which was a new concession. Though she added some new language about the Irish border, a potential vote on a new customs agreement and lots of other details, her core deal was basically unchanged. The move comes ahead of the week of June 3, effectively making this maneuver the last opportunity for May to reach a solution. The parliamentary math is pretty straightforward in that May needs to gain support from at least a portion of Labour MPs while retaining the backing of her Conservative caucus. As it turned out, we later found out that she has so far failed to get Labour’s support and has lost the backing of many within the Tory party. Jeremy Corbyn came out directly against the proposal and several prominent Tory MPs who supported the WA previously came out in opposition to it. Meanwhile, The Sun has reported overnight that senior backbenchers on the Tory 1922 committee’s executive will mount new bid to force a confidence vote in PM May. Bloomberg also reported overnight that PM May is facing pressure to abandon her Brexit deal and quit as British prime minister within days.

Looking forward, DB’s Oliver Harvey remains pessimistic on the pound. His latest update ( here ) was published before yesterday’s news, but still outlines the likely avenues moving forward. If anything, the latest developments reinforce his bearish bias. Any more negative responses to the new proposed deal and Prime Minister May could resign as soon as this week and attention will shift to the likely Conservative leader contest. That will probably yield a hard-Brexit supporting PM, which in turn will incrementally raise the odds of a hard Brexit. Separately, Chancellor Hammond spoke at the CBI’s (a business lobby) annual dinner last night, where he warned against a no-deal Brexit. He also focused on fiscal responsibility, possibly with an eye toward influencing a potential incoming leadership team, saying “we must not undo a decade of hard work (and must) resist the ever-present temptation to write checks the country cannot afford.”

Three regional Fed presidents spoke publicly yesterday, but the only truly interesting remark came from Boston Fed President Rosengren, who said that an average inflation targeting regime “would not change the Fed’s inflation target over the cycle.” That’s the latest comment in tacit support of an average inflation targeting regime, though the bar for the Fed to radically change policy at its upcoming policy review is high. Rosengren’s comment was especially interesting since he is one of the more hawkish members of the committee. Away from that, his comments repeated the Fed’s recent mantra about transitory inflation, there being no need to change policy, and for inflation to gradually return to the 2% target over time. Chicago Fed President Evans and Atlanta Fed President Bostic mostly delivered similar remarks. Elsewhere, Fed’s Bullard (voter) said overnight that the US policy makers may have “slightly overdone it” by raising interest rates in December, while adding that it’s premature to talk about a rate cut. However, he flagged the idea that “a quarter point in an environment where the U.S. economy is surprising to the upside again in 2019 …. would probably send a signal that we are serious about hitting the 2% inflation target”. On the US-China trade war he said that “For this to actually affect Fed policy, these tariffs would have to stay on for quite a while, something like six months; at the end of six months if there was still no prospect of a resolution then I think that is the point it would start to weigh on Fed policy.”

Staying with the Fed, this evening we’ll get the FOMC minutes from the meeting earlier this month. Usually there would be a reasonable amount of focus on the minutes however, given the trade developments since then it’s likely that the they will be somewhat discounted as being stale. That being said the inflation debate will still be relevant and as a reminder Powell noted that several “transitory” factors had been weighing on inflation of late. Our US economists noted that subsequent Fedspeak since Powell’s press conference suggest that there is a solid contingent of officials that agree with this cut of the data, though some find persistently below target inflation as troublesome, regardless of the causes. Therefore, it will be interesting to see how the debate plays out, especially in light of concerns around inflation expectations and the Fed’s policy framework review.

In other news, it was another quiet day for data releases yesterday. In the US existing home sales in April were reported as declining -0.4% mom compared to expectations for a +2.7% rise. In Europe consumer confidence improved 0.8pts to -6.5 in May – however it wasn’t clear if this captured the trade escalation period – while in the UK the May CBI survey showed weakness in both domestic and export orders, as well as subdued inflationary pressures.

Looking at the day ahead now, this morning we’ll get the April inflation data docket in the UK where the consensus expects a small increase in the annual core CPI reading from +1.8% to +1.9% yoy. We’ll also get the March house price index reading for the UK along with April public sector net borrowing data. In the US it’s quiet until we get to the FOMC meeting minutes this evening. Away from that we’re also expecting comments from the Fed’s Williams and Barker this afternoon, while the ECB’s Draghi, Visco and Praet are all due to speak this morning. Draghi is making the welcome address at the ECB colloquium in honour of Peter Praet so it’s unlikely that we’ll get anything particularly market moving.

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 14.26 POINTS OR 0.49%  //Hang Sang CLOSED UP 48.70 POINTS OR 0.18%   /The Nikkei closed UP 10.92 POINTS OR 0.05%//Australia’s all ordinaires CLOSED UP 0.21%

/Chinese yuan (ONSHORE) closed UP  at 6.9022 /Oil UP to 62.60 dollars per barrel for WTI and 72,00 for Brent. Stocks in Europe OPENED GREEN/ONSHORE YUAN CLOSED UP // LAST AT 6.9022 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9281 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3 a NORTH KOREA/SOUTH KOREA

NORTH KOREA

 

 

end

3 b JAPAN AFFAIRS

 

end

3 C CHINA/CHINESE AFFAIRS

i)China/USA

Michael Every of Rabobank’s assessment as to what will happen if China goes ahead and stops exporting rare earths to the USA. He also weighs in on the ban of Huawei on USA technological products like Google’s android

(courtesy Michael Every/Rabobank)

4/EUROPEAN AFFAIRS

UK

The threat against China escalates with Britain’s largest cell phone network operators pulling Huawei phones from their 5 G network

(courtesy zeorhedge)

Britain’s Largest Cell Phone Networks Drop Huawei Phones From 5G Launch

China’s telecom giant was greeted with more bad news on Wednesday, when Britain’s largest cell phone operators pulled Huawei phones from their 5G networks, joining other global telecoms groups in dropping launch plans after the Chinese group was hit by a US export ban that could stop it using Google’s Android operating system.

As the FT first reported, EE, part of British Telecom, had planned to offer Huawei phones as part of its launch on Wednesday of the UK’s first 5G network, but reportedly decided to “pause” this due to uncertainty over whether they could use Android software developed by Google after the Chinese group was included on a blacklist that forbids US companies to supply it with technology, a spokesman for the carrier said.

Marc Allera, chief executive of EE, said the company had “paused” the launch of Huawei’s 5G phones because it did not have the “surety of service” it needed to offer long-term contracts. “We’ve had to hold that back,” he said.

Despite the launch snub, BT will still rely on Huawei, the world’s largest provider of networking gear and No. 2 smartphone vendor, as it’s supplying much of the infrastructure for the new network, alongside Finnish equipment vendor Nokia Oyj.

Allera said EE has tested its 5G network using Huawei technology and has had “no indications” from the UK government to change course. He said the supply chain restrictions were a concern but that the UK would not benefit from a lengthy delay to 5G launches while the situation is being resolved.

“There are so many scenarios and we don’t have any clarity. But we can’t stand still,” he said. “Nothing is crystal clear but we have to work within that ambiguity.”

At the same, UK’s Vodafone also said it would suspend Huawei’s Mate X phone from its 5G line-up. Vodafone had planned to launch the handset in the summer on its 5G network, but a spokesman said on Wednesday that “Huawei’s 5G handset is yet to receive the necessary certifications”.

 

Vodafone is suspending Huawei’s Mate X phone from its 5G line-up.

Separately, the FT reported that two of Japan’s largest mobile phone carriers also said they would delay the launch of a new smartphone by Huawei as global mobile operators scrambled to deal with the proposed US export restrictions on the Chinese telecoms equipment maker. The decision on Wednesday by SoftBank and KDDI will affect the Huawei P30 Lite smartphone, which was due to go on sale in Japan on Friday. NTT DoCoMo, Japan’s largest carrier, said it was also considering cancelling pre-orders for the Huawei handset.

Ironically, the escalating crackdown against Huawei products has overshadowed the launch of UK’s 5G services as networks have lobbied the government not to ban the Chinese company from 5G network builds. Until today’s reversal, EE scrambled to be the first to launch 5G networks against Vodafone which goes live in July. EE will charge a premium for the faster network of about £5 and has partnered with Google and Niantic, the company behind Pokémon Go which has developed a Harry Potter-themed game, for the launch.

Even more ironically, today’s 5G launch isn’t really a 5G launch – the real think will have to wait about 3 years. The initial UK version of 5G will be the equivalent of an enhanced 4G network offering speeds 10 times faster than today’s smartphones. Its full 5G network will be launched in 2022 with ultra-low latency services available in 2023.

BT’s 5G service will be available across the U.K.’s six biggest cities from May 30 and will reach 16 urban areas by year-end, Allera said. Customers could buy 5G subscription plans and pre-order 5G-enabled devices from Wednesday morning. BT will still offer a 5G home router from Huawei, according to slides shown at the launch.

EE’s Allera said the launch of 4G paved the way for the rise of Netflix and Uber and 5G could have a wider effect. “We take it for granted now but it changed our behavior. So what new services will rise on this new network? We don’t know, but our job is to build that network,” he said.

According to Bloomberg, EE was the first U.K. operator to offer 4G in 2012 and used Huawei gear to build the core of that network. Growing pressure on US allies to restrict Huawei forced carriers to review their ties to the company and devise back-up plans in case of bans or supply disruptions. Huawei executives have repeatedly denied its systems are vulnerable to espionage even though they have since vowed to “safeguard” their systems against backdoor spying, effectively confirming that the Trump admin’s skepticism is justified.

end

UK

The world’s economy does not look good:  the UK’s second biggest steel company collapses into bankruptcy. It is interesting that the UK gave the company a loan to pay an EU environmental bill of $152 million…and then right after that the company collapses due to BREXIT concerns

(courtesy zerohedge)

UK’s Second-Biggest Steel Company Collapses Into Bankruptcy As Iron Prices Climb

Talks to secure a government bailout have collapsed, and British Steel, the UK’s second-largest steel producer, has officially started insolvency proceedings, putting some 25,000 jobs – 5,000 workers at its Scunthorpe plant and another 20,000 along the supply chain – at risk, the FT reports.

The British High Court has ordered the compulsory liquidation of British Steel, and appointed an Official Receiver to oversee the liquidation alongside accountancy firm Ernst & Young.

Steel

The bankruptcy, which was hastened by a loss of business that the company has blamed on Brexit uncertainty, as well as a spike in iron prices (ore prices climbed above $100 a tonne on Friday, the first time they’ve closed above that level since May 2014).

Greybull, British Steel’s private equity owner, and a consortium of the firm’s lenders managed to assemble a rescue package worth £30,000 ($38,000). The only problem is the funds were contingent on a match from the UK government. But the money fell through at the last minute as ministers judged that it would violate EU rules.

The deal’s biggest proponent, Theresa May’s business secretary, Greg Clark, will now need to explain why he approved an earlier £120 million ($152 million) loan to help British Steel meet an EU environmental bill, but can’t save the company from bankruptcy.

As the FT explains in a video, the earlier bailout was required because under its previous owners, British Steel had used the EU’s system of carbon-credit trading to raise money by selling excess credits then covering its short position at the beginning of the following year.

But this year, the EU ruled that since the UK is leaving the bloc, its companies don’t deserve any more credits, leaving the company on the hook for a massive bill.

Unions in the UK have demanded that the government do something, while Labour Leader Jeremy Corbyn warned on Tuesday that the collapse of British Steel would be ‘devastating’.

Jeremy Corbyn

@jeremycorbyn

Our steel industry doesn’t just provide thousands of jobs, it has a major role to play in ushering in a Green Industrial Revolution and securing a sustainable future for British manufacturing.

The government must not allow this vital industry to collapse.https://www.bbc.co.uk/news/business-48347371 

Steel production at a British Steel plant

British Steel on verge of administration

The UK’s second-biggest steel maker has been seeking £75m in government backing to help it stay afloat.

bbc.co.uk

In a statement, Clark insisted that the government had done all it can, but that it can’t risk violating EU laws stipulating that any financial support must be made ‘on a commercial basis’

“We have shown our willingness to act, having already provided the company with a £120m bridging facility to enable it to meet its emissions trading compliance costs,” he said. “The government can only act within the law, which requires any financial support to a steel company to be on a commercial basis. I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made.”

If the company goes under, it’s unclear what will happen to its Scunthorpe plant, or the thousands of jobs there. But it certainly raises questions about who benefits, and who suffers, thanks to unmitigated free trade. By imposing tariffs on imported steel and aluminum, Trump has sought to spare American steel companies a similar fate.

end
UK
Theresa May’s latest New Deal is a flop and thus down goes the pound.  Farge soars in the polls
(courtesy zerohedge)

Cable Collapse Continues As May’s ‘New Deal’ Flops, Farage Soars

Cable has plunged almost 2 full handles from the post-May-‘New Deal’ hope of yesterday afternoon as it’s increasingly clear her latest and last gambit is dead on arrival…

Bloomberg reports that Theresa May is facing pressure to abandon her Brexit deal and quit as British prime minister within days, according to people familiar with the matter. Several senior government officials said they were shockedthat the premier’s new offer intended to win votes in Parliament for her European Union divorce agreement had been so badly received so quickly.

Which just goes to show how disconnected from reality they are. FX traders, however, were not surprised…

Dragging sterling to its weakest level of 2019…

Early year hopes of avoiding a hard Brexit are dashed by the combination of May’s failure and the rising euroskeptic sentiment across Britain (and Europe).

As Mike Shedlock notes, Nigel Farage’s Brexit Party is on a stunning roll. That’s what happens when you take a firm position the public favors.

The final YouGov poll on the European Parliament elections for the UK is in.

Europe Elects@EuropeElects

UK, YouGov poll:

European Election

BREX-EFDD: 37% (+3)
LDEM-ALDE: 19% (+2)
LAB-S&D: 13% (-2)
GREENS-G/EFA: 12% (+1)
CON-ECR: 7% (-2)

+/- 8-17 May 2019

Field work: N/A
Sample size: N/A

Some will be shoc

 

endked. I am not.

Beyond Embarrassment

Theresa May truly embarrassed herself today.

Her Meaningful Vote 4 Speech Flopped Splendidly.

She tried to reach out to everyone at the same, offending everyone. May has changed her tune so many times, who the hell even knows what she wants?

The best summation I can come up with is “Any deal is better than no deal“.

Labour

Please be serious.

Jeremy Corbyn is just like Theresa May. He wants to “honor” Brexit, by not doing it.

Two Peas in a Pod

Corbyn is simultaneously for and against another referendum, just like Theresa May!

Despite how they pretend, they are in bed with each other.

Another Poll Needed

YouGov needs another poll: Who is more pathetic? Theresa May or Jeremy Corbyn?

From where I sit, it’s a close call.

*  *  *

Finally, as Human Events reports, Farage has pledged to field a “full 650 candidates” when Britain has its next general election. The talk behind the scenes at Brexit Party gatherings, is of what a government might look like if Farage and his band of brothers (and sisters) held the balance of power after an election.

Long-term euroskeptic and former President of the Czech Republic, Vaclav Klaus, sums things up well:

“As I look at it from Prague, the British main political parties totally failed, and betrayed and abandoned the British citizens, their own voters. It had, however, one positive side effect: by behaving in this way, they probably and unwillingly created the Brexit Party…

…Dear Brexit friends, you should in the forthcoming elections give the whole rest of Europe a good example. Many Europeans need it, and many are waiting for it. Don’t disappoint them.

Read more here…

end

FRANCE

My goodness! France threatens 3 journalists with jail time for exposing the French government lies about its involvement in Yemen.
(courtesy Middle East Eye)

France Threatens Journalists With Jail Time For Exposing Government Lies About Yemen

Via Middle East Eye,

France has threatened three French journalists with potential jail time for using secret documents to reveal the country’s involvement in the Yemen civil war. 

In a series of reports published in April, investigative journalists from Disclose and Radio France revealed the number of French arms sold to Saudi Arabia and the United Arab Emirates. 

The documents, authored by France’s Directorate of Military Intelligence (DSGI), showed that senior French officials had lied about the role of French weapons in the Yemen War. 

Following the publication of the reports in April, Disclose’s co-founders Geoffrey Livolsi and Mathias Destal and Radio France journalist Benoît Collombat were asked to attend a hearing at the DSGI headquarters in Paris.

The three journalists refused to reveal their sources after being questioned by the DSGI on the origin of the document, their work and posts on Facebook and Twitter.

The journalists used the hearing to defend press freedom and how it was in the public interest to publish details from the leaked DSGI document.

Press Freedom has been protected for more than 130 years under the Press Law of 1881, which gives journalists the right to keep sources confidential. 

But the law, however, does not cover national security and the journalists could be sentenced under a 2009 French law that considers as an offence the handling of a classified document without clearance or proper authorisation.

If convicted, the journalists could face five years in prison and a $83,000 fine. The case could be closed by the DSGI or be handed to a judge who could take the case to trial.

France is ranked 32nd out of 180 countries in RSF’s 2019 World Press Freedom Index.

Paul Coppin, the head of Reporters Without Border’s (RSF) legal unit, criticised the DSGI for attempting to prosecute the French journalists.

In a statement published on the RSF website, Coppin described the case as a “matter of legitimate public interest”.

“We are concerned that the sole aim of this hearing is to use the threat of prosecution to put pressure on these journalists to reveal their source,” said Paul Coppin.

“As it is legally unable to force them to disclose the identity of their source, the prosecutor’s office is using the possibility of a charge of compromising national defence secrecy, a charge punishable by five years in prison and a fine of 75,000 euros [$83,750].

“The mere fact of threatening such a prosecution for publishing information in the public interest would in itself constitute a serious violation of the public’s right to be informed.”

Yemen’s civil war has killed or injured more than 17,900 civilians and triggered a famine that has taken the lives of an estimated 85,000 children.

Campaigners have argued that arms supplied by other Western countries, including the United States and Britain, have been used by the Saudi-led coalition to commit human rights abuses as they fight against Iran-backed Houthi rebels

 

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Turkey

The Lira tumbles as well as the Turkish bourse after the USA issues its latest ultimatum.  Russia is furious at the USA

(courtesy zero hedge)

Lira Tumbles, Turkish Stocks Enter Bear Market After US Issues Ultimatum; Russia Furious

The Turkish Lira tumbled as much as 1% against the dollar, leading a decline across emerging markets…

 

… while Turkish stock market losses accelerated as the Borsa Istanbul 100 Index falls 1.5%, declining for a 6th day and 13 of the past 14, to touch the lowest level since January 2017, effectively entering a bear market, having tumbled 20% from the March highs.

 

While there wasn’t a specific event behind today’s mauling of Turkey, which to many investors has become the canary in the emerging markets coalmine, the selling picked up after Turkey said soldiers had been dispatched for training in Russia ahead of the delivery of the S-400 missile-defense system. As Defense Minister Hulusi Akar said additionally, as the deadline of S-400 system delivery looms, Turkey will send more personnel for training in the coming months.

 

Meanwhile, the Kremlin on Wednesday condemned as unacceptable a US ultimatum delivered to Turkey meant to force Erdogan to cancel a deal to buy Russian S-400 surface-to-air missile systems and purchase U.S. Patriot missile systems instead. According to Reuters, Moscow was responding to a CNBC report which said Washington had given Turkey just over two weeks to scrap the Russian deal and do an arms deal with the United States instead or “risk severe penalties.” More from CNBC:

Turkey has a little more than two weeks to decide whether to complete a complex arms deal with the U.S. or risk severe penalties by going through with an agreement to buy a missile system from Russia, according to multiple people familiar with the matter.

By the end of the first week of June, Turkey must cancel a multibillion-dollar deal with Russia and instead buy Raytheon’s U.S.-made Patriot missile defense system — or face removal from Lockheed Martin’s F-35 program, forfeiture of 100 promised F-35 jets, imposition of U.S. sanctions and potential blowback from NATO.

As extensively reported here previously, Ankara (which recently flipped away from Erdogan’s ruling AKP party in local elections) and Washington have been at odds on several fronts, including Ankara’s decision to buy the S-400s, which cannot be integrated into NATO systems. Washington alleges that the Russian deal, if it goes ahead, would jeopardize Turkey’s role in building Lockheed Martin F-35 fighter jets.

When asked about the CNBC report by reporters on Wednesday, Kremlin spokesman Dmitry Peskov said:

“We regard this extremely negatively. We consider such ultimatums to be unacceptable, and we are going on the many statements made by representatives of Turkey’s leadership headed by President (Tayyip) Erdogan that the S-400 deal is already complete and will be implemented.”

Turkey’s defense minister said earlier on Wednesday that Ankara was preparing for potential U.S. sanctions over its purchase of the Russian missile system even though he said there was some improvement in talks with the United States over buying F-35 fighter jets.

end

 

IRAN/USA/

The USSA holds a temporary victory march as it declares victory in its non war with Iran. It seems that Iran has put attacks on hold.

(zerohedge)

Pentagon Declares Victory In Non-War: Iran Forced To Put Attacks “On Hold” 

And just like that it’s over  war averted, apparently, as the Pentagon announced Tuesday US defense posturing and military build-up in the Persian Gulf has thwarted potential attacks an Americans.

Defense Secretary Patrick Shanahan said Iran was forced to “put on hold” plans to harm American troops and their allies in the region:

I think our steps were very prudent and we’ve put on hold the potential for attacks on Americans and that is what is extremely important,” Shanahan told reporters at the Pentagon, though without giving specifics.

He added that Iran was ultimately forced to “recalculate” its aggression.  

 

Defense Secretary Patrick Shanahan (left) with President Trump, via The New York Times.

Since John Bolton’s May 5th statements citing “credible intelligence” of a heightened Iran threat which supposedly put US troops in the cross hairs there’s been next to nothing in terms of actual details.

Instead the past two weeks has witnessed incessant blustering out of Washington, with daily threats that military action was looming against Iran.

And now with zero evidence that Iran was readying an attack, the Pentagon is essentially declaring victory following statements by Trump that he is not willing to escalate, but instead telling Iran’s leaders to “call me”.

During Shanahan’s press briefing he still underscored “the credibility of the intelligence” and called US deployment of a carrier strike group and B-52 bombers “very prudent”. Through these measures, he claimed, “we have put on hold the potential for attacks on Americans and that’s what’s extremely important.”

“I’d say we’re in a period where the threat remains high and our job is to make sure that there is no miscalculation by the Iranians,” Shanahan added.

“I just hope Iran is listening. We’re in the region to address many things, but it is not to go to war with Iran,” the Defense Secretary said.

Previously Trump warned Monday that he was ready to use “great force” if Iran harmed American interests in the region. Secretary of State Mike Pompeo had also made statements saying it was “quite possible” Iran had sabotaged four oil tankers near the Strait of Hormuz last week, which actually appeared to be a softening of expectations the White House would come out and directly blame Iran.

 

end

Syria/Russia

Syria has still not liberated all of its country as North west province of Idlib is still in control of the rebels.

Today the rebels attacked a major Russian air base in big offensive.

(courtesy zerohedge)

Syria Rebels Attack Russian Air Base In Major Offensive

Some 500 Nusra-front militants, accompanied by seven tanks and about 30 pickup trucks armed with mounted heavy machine guns launched three major offensives against government troops in Idlib province on Wednesday, the Russian Defense Ministry said.

Syria

The counterattack focused on the town of Kafr Nabudah, which was recently captured by the Syrian government.

Militants also launched a missile attack on Russia’s Hmeymim air base on Wednesday, but nine of the missiles were shot down, and another 8 didn’t reach their target, the ministry added.

Northwest Syria, which runs along Syria’s border with Turkey, is home to the last remaining rebel strongholds, including a swath of land dominated by the Al Qaeda-linekd Nusra Front, which has adopted a new name, Tahrir al-Sham, Haaretzreports.

The increase in shelling in the region has led to the displacement of 180,000 people, while the increase in shelling marked the most intense period of fighting between Bashar al-Assad and the rebels

Syria

According to RT, more than 150 rebels were killed during the morning offensive. Three tanks were destroyed, while 24 trucks mounted with heavy guns were also destroyed in the fighting.

end

6.GLOBAL ISSUES

A terrific commentary from Michael Every of Rabobank as he describes major problems around the globe.  He calls them 99 lead balloon crashing down.  Pay special attention to the last one where MAINLAND CHINA is trying to remove the legal firewall separating the mainland from Hong Kong. If this would come to fruition it would be devastating to global finances as major hub has been removed.

(courtesy Michael Every/Rabobank)

99 Lead Balloons… Are About To Come Crashing Down

Submitted by Michael Every of RaboBank

‘Lead balloon.’ That graphic description of public failure apparently dates from the US in 1924, and ironically was itself such a poorly-received idiom that it didn’t appear in the American press again until 1947. A few decades later, and the phrase was so well known that a derivative of it inspired one of the greatest rock bands of all time. Today, 99 lead balloons fill our sky.

To illustrate the point I don’t even have to look at headlines about the US-China trade war – though I could pick any number of them showing how serious this is getting, and how global the impact is likely to be. My favourite today contains a quote from a US semiconductor maker who states We’re too far into free trade that the world cannot have countries not trading.” Sorry mate, 1913 called and wants its ‘Great Illusion’ back; indeed, reports are that China’s surveillance camera-maker Hikvision is next in the US firing line. Standing with me not on the side of the (Norman) Angells is Eli Lake writing for Bloomberg, who argues The tech cold war has begun. To which I can only say: It’s about time. If this ban is just a bit of brinkmanship designed to pry a better trade deal out of Beijing, however, then it’s a blunder. The national security implications raised by Huawei’s technology transcend any trade dispute.” And while US tech is in the headlines, so is US farming, where federal subsidies are set to rise sharply to offset trade-war pain.

I could choose from a series of stories in Turkey, where the authorities are both trying to prop up the currency and cutting rates at the same time(?), as well as about to clash with the US and NATO allies again over their preferred choice of anti-aircraft defence system in a major way.

I could point to Italy, where Deputy PM Salvini is promising to change EU rules to allow a 15% flat tax, another Deputy PM Di Maio says tax cuts are coming in the 2020 budget, and former PM Getonlini argues a new election is needed.

I could point to Australia, where the RBA Governor has said he’s considering a rate cut in June and unemployment now needs to be BELOW 5.0% for him NOT to cut rates, making a mockery of all the “Jobs market is on fire wages up soon!” claims he’s been making, and I’ve been pooh-poohing, for so long. AUD still hasn’t quite sized that shift up yet, but if you think ‘one and done’ is enough to right this particular ship, you are in for a surprise.

But for a change, let’s go back to the UK and PM Theresa May. The May-bot, as she is sometimes referred to in the press, has just experienced yet another cataclysmic political circuit failure. The weeks she spent wasting precious time granted to the UK by the EU as a temporary Brexit extension, all the while infuriating her own party by sitting down with opposition Labour, and then not giving them what they wanted, came to naught – of course. May then tried a last-gasp Hail Mary to offer a watered-down compromise on a temporary customs union and a second referendum…but only if Parliament passes her Withdrawal Agreement (WA) in an early-June fourth-time-lucky vote. The PM succeeded…in uniting her fractured party and the House of Commons: everyone now wants her to go, and go nowEven MPs who backed her last time now say they will refuse to do so, and this morning there is so much vitriol from the Conservatives the WA may be dropped over the White Cliffs of Dover and May, who has tied the string to her wrist, will follow. Then comes a leadership election…and quite possibly PM Boris Johnson. It’s perhaps not a surprise that GBP is struggling to hold on to 1.27, and the intra-day low of 1.2441 seen back in January this year must surely be laying out the welcome mat and preparing for visitors.

But, sorry, I can’t stay away from China for long. Former British Governor Chris Patten has stated in an interview with Bloomberg that the proposed extradition law about to be steamrollered through Hong Kong’s Legislative Council would break China’s “One Country, Two Systems” and risk undermining the city’s rationale as an international trade hub – a cry the American Chamber of Commerce has publicly echoed. “If China starts to treat Hong Kong as though it was simply part of the mainland, as though it were Shenzhen or Shanghai, sooner or later the international community will be encouraged to think, well, in that case that Hong Kong ceases to be special,” says Patten, who states that the law would be the “worst thing” to happen to Hong Kong since 1997 – which will make him even more popular in Beijing.

For those not following this development, Patten says the proposed law removes the legal firewall between Hong Kong and China, with the former risking being subject to the Chinese “rule by law” system with “no real distinction between the courts, the security services and what the [Communist] party wants to happen.” Recall the US-China Economic and Security Review Commission annual review published in November 2018 already flagged the US should review its treatment of Hong Kong and China as separate customs areas for dual-use technology exports due to the “troubling” political trends there; against the current political backdrop might the US react to the extradition legislation’s passage by acting on that front? It’s an indication of places one conceives of as being true balloons suddenly looking ‘leaden’ due to this trade war.

Meanwhile, with the North Korea, Iran, and Venezuela situations all looking like they could burst at once, which really isn’t a coincidence at all, once again cheesy pop lyrics of the past hold worryingly prophetic wisdom.

Back at base, bugs in the software; Flash the message, “Something’s out there”

Floating in the summer sky; 99 lead balloons go by

99 lead balloons floating in the summer sky; Panic bells it’s red alert

There’s something here from somewhere else

The war machine it springs to life; Opens up one eager eye

Focusing it on the sky; As 99 lead balloons go by

99 Decision Street, 99 ministers meet; To worry, worry, super scurry

Call out the troops now in a hurry

This is what we’ve waited for; This is it boys, this is war

The president is on the line; As 99 lead balloons go by

END

7  OIL ISSUES

 

8. EMERGING MARKETS

VENEZUELA

 

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

Euro/USA 1.1166 UP .0002 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 /GREEN

 

 

USA/JAPAN YEN 110.44 DOWN 0.123 (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 1.2655   DOWN   0.0052  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3388 DOWN .0016 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 WEDNESDAY morning in Europe, the Euro ROSE BY 2 basis points, trading now ABOVE the important 1.08 level  RISING to 1.1166 Last night Shanghai COMPOSITE CLOSED DOWN 14.26 POINTS OR 0.49% 

 

 

 

 

 

//Hang Sang CLOSED UP 48.70 POINTS OR 0.18% 

 

 

 

 

/AUSTRALIA CLOSED UP 0.21%// EUROPEAN BOURSES GREEN

 

 

 

 

 

 

The NIKKEI: this WEDNESDAY morning CLOSED UP 10.92 POINTS OR 0.05% 

 

 

 

 

 

 

 

 

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 48.70 POINTS OR 0.18%

 

 

 

 

 

 

/SHANGHAI CLOSED DOWN 14.26 POINTS OR 0.49% 

 

 

 

 

 

 

 

 

 

Australia BOURSE CLOSED UP 0.21% 

 

 

Nikkei (Japan) CLOSED UP 10.92  POINTS OR 0.05%

 

 

 

 

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1274.25

silver:$14.44

Early WEDNESDAY morning USA 10 year bond yield: 2.42% !!! UP 0 IN POINTS from TUESDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.84 DOWN 0  IN BASIS POINTS from YESTERDAY night.

USA dollar index early TUESDAY morning: 97.99 DOWN 7 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing WEDNESDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 1.03%  DOWN 0 in basis point(s) yield from TUESDAY/

JAPANESE BOND YIELD: -.06%  DOWN 2   BASIS POINTS from TUESDAY/JAPAN losing control of its yield curve/

 

SPANISH 10 YR BOND YIELD: 0.87% DOWN 0   IN basis point yield from TUESDAY

ITALIAN 10 YR BOND YIELD: 2.63 DOWN  1  POINTS in basis point yield from TUESDAY/

 

 

the Italian 10 yr bond yield is trading 176 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES –.09%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.72% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1159  DOWN     .0006 or 6 basis points

USA/Japan: 110.29 DOWN .268 OR YEN UP 27  basis points/

Great Britain/USA 1.2676 DOWN .0030 POUND DOWN 30  BASIS POINTS)

Canadian dollar DOWN 14 basis points to 1.3418

 

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The USA/Yuan,CNY: AT 6.9063    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9348  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.1136 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.06%39

 

Your closing 10 yr US bond yield DOWN 4 IN basis points from TUESDAY at 2.43 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.81 DOWN 4 in basis points on the day

Your closing USA dollar index, 98.06 DOWN 1  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 WEDNESDAY: 12:00 PM

London: CLOSED UP 15.05  0.21%

German Dax :  CLOSED UP 26.30 POINTS OR 0.22%

Paris Cac CLOSED DOWN  4.39 POINTS OR 0.08%

Spain IBEX CLOSED DOWN 5.40 POINTS or 0,06%

Italian MIB: CLOSED DOWN 125.30 POINTS OR 0.61%

 

 

 

 

 

WTI Oil price; 61.75 12:00  PM  EST

Brent Oil: 70.73 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    64.30  THE CROSS LOWER BY 0.12 ROUBLES/DOLLAR (ROUBLE HIGHER BY 13 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.06 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 :  61.30

 

 

BRENT :  70.80

USA 10 YR BOND YIELD: … 2.38…   VERY DEADLY//

 

 

 

 

 

 

 

 

 

USA 30 YR BOND YIELD: 2.81..VERY DEADLY/

 

 

 

 

 

EURO/USA 1.1152 ( DOWN 13   BASIS POINTS)

USA/JAPANESE YEN:110.33 DOWN .230 (YEN UP 23 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 98.09 UP 3 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2662 DOWN 45  POINTS

 

the Turkish lira close: 6.0947

 

the Russian rouble 64.37   UP 0.05 Roubles against the uSA dollar.( UP 5 BASIS POINTS)

Canadian dollar:  1.3431 DOWN 27 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9063  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.9357 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.09%

 

The Dow closed  DOWN 100.72 POINTS OR 0.39%

 

NASDAQ closed DOWN  34.88 POINTS OR 0.45%

 


VOLATILITY INDEX:  14.75 CLOSED DOWN 0.20

 

LIBOR 3 MONTH DURATION: 2.523%//

 

 

 

FROM 2.523

 

 

 

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

 

END

MARKET TRADING/FOMC MINUTES

FOMC Minutes Confirm Hawkish “Transitory” Inflation Outlook, Remains “Patient For Some Time”

Will the Minutes attempt to walk back Powell’s ‘hawkish’ transitory/transient inflation comments, will they mention frothy prices in financial markets, or will an insurance rate-cut be discussed against trade-war threats?

The answer is mixed:

Hawkish

*MANY FED OFFICIALS SAW INFLATION DIP AS LIKELY ‘TRANSITORY

Dovish

*FED OFFICIALS SAW PATIENT APPROACH APPROPRIATE FOR ‘SOME TIME

Key takeaways include:

“Patient” Fed for “some time”

“Members observed that a patient approach to determining future adjustments to the target range for the federal funds rate would likely remain appropriate for some time, especially in an environment of moderate economic growth and muted inflation pressures, even if global economic and financial conditions continued to improve.”

Inflation remains “Transitory”

“Many participants viewed the recent dip in PCE inflation as likely to be transitory, and participants generally anticipated that a patient approach to policy adjustments was likely to be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective.”

On a symmetric “overshoot” in inflation

“Several participants commented that if inflation did not show signs of moving up over coming quarters, there was a risk that inflation expectations could become anchored at levels below those consistent with the Committee’s symmetric 2 percent objective—a development that could make it more difficult to achieve the 2 percent inflation objective on a sustainable basis over the longer run.”

Meanwhile, risks are declining …

“A number of participants observed that some of the risks and uncertainties that had surrounded their outlooks earlier in the year had moderated, including those related to the global economic outlook, Brexit, and trade negotiations.”

… even so the Fed is scared of rocking the boats

“Participants noted that even if global economic and financial conditions continued to improve, a patient approach would likely remain warranted, especially in an environment of continued moderate economic growth and muted inflation pressures.”

On whether the Fed will do a “Reverse Operation Twist”

“The staff presented two illustrative scenarios as a way of highlighting a range of implications of different long-run target portfolio compositions.”

“In the first scenario, the maturity composition of the U.S. Treasury securities in the target portfolio was similar to that of the universe of currently outstanding U.S. Treasury securities (a “proportional” portfolio)…. In the second, the target portfolio contained only shorter-term securities with maturities of three years or less (a “shorter maturity” portfolio)…. “Based on the staff’s standard modeling framework, all else equal, a move to the illustrative shorter maturity portfolio would put significant upward pressure on term premiums and imply that the path of the federal funds rate would need to be correspondingly lower to achieve the same macroeconomic outcomes as in the baseline outlook.”

On the composition of the Fed’s balance sheet

“Several participants expressed the view that a decision regarding the long-run composition of the portfolio would not need to be made for some time, and a couple of participants highlighted the importance of making such a decision in the context of the ongoing review of the Federal Reserve’s monetary policy strategies, tools, and communications practices.”

Fed warnings again on record debt levels

A few participants suggested that heightened leverage and associated debt burdens could render the business sector more sensitive to economic downturns than would otherwise be the case.

Additionally,

  • There was little discussion about the U.S.-China trade war, a sign that the worsening of tensions since the meeting probably came as a surprise.
  • On the decision to lower interest on excess reserves rate by 5 basis points, the minutes say Fed staff noted that the effective fed funds rate rose to 5 bps above IOER after the federal income tax deadline on April 15; while a similar dynamic occurred in prior years, the magnitude of the change was larger this year.

Finally, and perhaps most notably, Bloomberg’s Matthew Boesler notes that one thing that really ended up being completely absent from the minutes was any discussion of the possibility of a rate cut, despite how heavily investors are betting on such an outcome. It’s just not in there at all.

The market-implied Fed rate-change expectations have plunged dovishly since the FOMC meeting…

*  *  *

Since the FOMC Meeting on May 1st, the yield curve has had a wild ride but overall has collapsed…hardly a signal that Fed policy is approved by the market.

Stocks and Gold have been the worst hit with bonds and the dollar rallying since Powell’s transitory press conference…

And, perhaps most notably, despite The Fed’s actions on IOER, the short-term liquidity market remains broken

*  *  *

 

end

ii)Market data/

 

end

iii)USA ECONOMIC/GENERAL STORIES

Qualcomm shares crash after losing a major anti trust case

(courtesy zerohedge)

Qualcomm Shares Crash After Losing Landmark Anti-Trust Case

Just weeks after Qualcomm secured a clear victory in its long-running legal battle with Apple, sending the chipmaker’s shares rocketing higher, a federal judge in San Jose ruled against the company in a high-profile anti-trust lawsuit that could seriously disrupt Qualcomm’s business model.

The decision sent Qualcomm shares plunging as much as 11% in premarket trade, erasing half of its gains from the Apple settlement.

Qualcomm

The decision sided with the FTC, which initially sued Qualcomm back in January 2017. Released late Tuesday, the decision, handed down by US District Judge Lucy Koh, found Qualcomm violated anti-trust laws by charging unreasonably high royalties for its patents. Koh challenged the company’s practice of collecting chip royalties based on a smartphone’s price, according to WSJ.

The judge ruled that Qualcomm’s licensing practices had “strangled competition” in “key parts” of the chip market.

President Trump’s decision to add Huawei to a US ‘blacklist’ hammered chip stocks earlier in the week. More bad news was the last thing Qualcomm investors needed.

end

SWAMP STORIES

This is going to backfire on the Democrats as they are now asserting Trump is engaging in a “coverup” of a crime that has not been committed

(courtesy zerohedge)

Pelosi Says Trump Engaged In ‘Cover Up’ As Impeachment Pressure Grows

Speaker Nancy Pelosi (D-CA) is facing new pressure from House Democrats to open impeachment proceedings against President Trump, as the White House continues to resist Democratic Congressional investigators who are in the 11th inning of their battle to unseat Trump from office.

On Wednesday, Pelosi met with her party behind closed doors to discuss the latest avenue for impeachment, telling the press that House Democrats believe Trump is engaged in a cover-up in regards to the administration’s efforts to prevent former White House Counsel Don McGahn from testifying Tuesday before the House Judiciary Committee.

“It was a very positive meeting, a respectful sharing of ideas. And I think a very impressive presentation by our chairs. We do believe it is important to follow the facts, that no one is above the law, including the president of the United States. And we believe that the president of the United States is engaged in a cover-up. A cover-up. And that was the nature of the meeting.”

Embedded video

NBC News

@NBCNews

JUST IN: Speaker Pelosi says “we believe the president of the United States is engaged in a cover up” by stonewalling testimony for ongoing congressional investigations.

Pelosi, meanwhile, has long considered impeachment a political trap which could blow up in Democrats’ faces – alienating swing voters and ensuring another victory for Trump in 2020. She and her top lieutenants were also on Capitol Hill in 1998, when Republican efforts to impeach former President Clinton without bipartisan support resulted in a backlash at the polls.

Donald J. Trump

@realDonaldTrump

Everything the Democrats are asking me for is based on an illegally started investigation that failed for them, especially when the Mueller Report came back with a NO COLLUSION finding. Now they say Impeach President Trump, even though he did nothin wrong, while they “fish!”

Last month’s release of the Mueller report, however, has caused a split among Democrats – as a small pack of rank-and-file members have broken away to endorse impeachment proceedings.

In at least two private meetings this week, Pelosi was pressed by Democrats to consider moving more quickly toward impeachment. In one of the meetings, Judiciary Chairman Jerrold Nadler conveyed that some of his panel’s Democrats now want to pursue that option, according to a House official. His committee would likely oversee the early stages of such an inquiry.

A vocal minority, including Financial Services Chairman Maxine Waters and Alexandria Ocasio-Cortez, has long been calling for Trump’s impeachment, with even more urgency since Special Counsel Robert Mueller’s report was released. But until this week, that talk had been relatively isolated. And Pelosi retains many influential supporters who firmly back her go-slow approach, including No. 3 House Democrat James Clyburn and long-time ally Rosa DeLauro. –Bloomberg

After McGahn skipped out on the House Judiciary panel on Tuesday, Democrats appeared to be unsure about how to proceed. The Democrats on Nadler’s panel scrapped a post-hearing press conference because they couldn’t agree on what to say, according to Bloomberg, citing a person familiar with the matter.

Sounding a lot like Maxine Waters, Karen Bass (D-CA) – chairwoman of the Congressional Black Caucus, told reporters after the hearing that when it comes to impeachment “I think that we are probably going to wind up there,” adding “I don’t know if that is today; I don’t know if we might be forced to act very soon.

“Obviously, all of us respect [Pelosi’s] perspective and her opinion,” said Rep. Joaquin Castro (D-TX) who sits on the Intelligence Committee. “But I think, individually, each of us have a perspective of our own. And I think it’s time to start [impeachment].

Rep. Jamie Raskin (D-MD), who also sits on the Judiciary Committee and has recently changed his mind in favor of launching an inquiry, said “I would say that there are arguments for doing it, but we have to agree collectively.

Kentucky Democrat John Yarmuth, the House Budget Committee chairman, said lawmakers need to pursue impeachment investigations even if the Republican majority in the Senate won’t support removing Trump. “We need in this Congress not necessarily to expel the president but to call attention to the threat he poses to our way of life,” Yarmuth told CNN Wednesday. –Bloomberg

Slow down…

Democrat Sheila Jackson Lee of Texas – a senior member of the Judiciary panel, is taking a more measured approach, telling reporters that she will introduce a resolution over the next two days to authorize the Judiciary Committee to investigate whether there are sufficient grounds to launch impeachment proceedings in the first place.

“We believe and continue to believe that we are doing the right thing by investigating, and that our task is to educate before we activate, and that is what we will do,” said Jackson Lee.

Rep. Steve Cohen (D-Tenn.) is also backing Trump’s impeachment, but he cautioned that no such effort will go anywhere before Pelosi and Judiciary Committee Chairman Jerrold Nadler (D-N.Y.) jump on board.

“I think he’s committed impeachable offenses and he ought to be impeached,” said Cohen, who chairs the Judiciary Committee’s subpanel on the Constitution. “[But] if Speaker Pelosi and Chairman Nadler don’t change their mind it’s not going to happen.”

“There’s more people in favor of an impeachment inquiry; there’s more people in favor of impeachment, yes. So I guess that’s momentum,” Cohen added. “But as far as momentum going to a level of a majority or action, then we’re not anywhere near that.” –The Hill

“We have to have the American people behind us,” said Rep. Judy Chu (D-CA). “Even if we are successful in the impeachment vote on the House side, my concern is that if that vote is not successful on the Senate side — which in fact would be unlikely — then would that be considered a victory for Trump?

end
the Democrats are always in favour of infrastructure spending.  Trump realizing this stated that the Dems must stop their false investigation of Russian collusion//obstruction or else there will be no agreement on spending.  Schumer is probably correct:  jaws would drop if they knew what happened in the White House meeting
(courtesy zerohedge)

Schumer: Americans’ Jaws Would Drop If They Knew What Happened In White House Meeting

Update: Trump has hit back in a series of Wednesday tweets, saying it’s “So sad that Nancy Pelosi and Chuck Schumer will never be able to see or understand the great promise of our Country,” adding “They can continue the Witch Hunt which has already cost $40M and been a tremendous waste of time and energy for everyone in America, or get back to work….”

Trump also accused Democrat leadership of “tearing the United States apart,” adding in response to Pelosi’s promise to “pray” for Trump, “Nancy, thank you so much for your prayers, I know you truly mean it!

Donald J. Trump

@realDonaldTrump

So sad that Nancy Pelosi and Chuck Schumer will never be able to see or understand the great promise of our Country. They can continue the Witch Hunt which has already cost $40M and been a tremendous waste of time and energy for everyone in America, or get back to work….

Donald J. Trump

@realDonaldTrump

….But they really want a do-over! You can’t investigate and legislate simultaneously – it just doesn’t work that way. You can’t go down two tracks at the same time. Let Chuck, Nancy, Jerry, Adam and all of the rest finish playing their games….

Donald J. Trump

@realDonaldTrump

….In the meantime, my Administration is achieving things that have never been done before, including unleashing perhaps the Greatest Economy in our Country’s history….

Donald J. Trump

@realDonaldTrump

….Democrat leadership is tearing the United States apart, but I will continue to set records for the American People – and Nancy, thank you so much for your prayers, I know you truly mean it!

***

Senate Democratic leader Chuck Schumer (NY) said that President Trump ‘threw a temper tantrum’ on Wednesday, storming out of a meeting with he and House Speaker Nancy Pelosi (CA) to instead hold a press conference in the Rose Garden, according to Bloomberg.

Schumer added that what happened in the White House meeting would make Americans’ “jaw drop.”

ABC News

@ABC

“To watch what happened in the White House would make your jaw drop,” Sen. Chuck Schumer says after clash at meeting with Pres. Trump on infrastructure. http://abcn.ws/2HLENFZ

Trump, meanwhile, took to the Rose Garden to blame the Democrats’ “phony investigations,” explaining that he walked into the meeting with Pelosi and Schumer and told them that the ongoing probes have hampered bipartisan infrastructure negotiations – and that Democrats could not legislate and investigate at the same time.

When she and Senator Chuck Schumer arrived at the White House, Mr. Trump was loaded for bear. He walked into the Cabinet Room, did not shake anyone’s hand or sit in his seat, according to a Democrat informed about the meeting. He said he wanted to advance legislation on infrastructure, trade and other matters, but that “Speaker Pelosi said something terrible today and accused me of a cover-up,” according to the Democrat. –NYT

“I walked into the room and I told Sen. Schumer, Speaker Pelosi: I want to do infrastructure, I want to do it more than you want to do it… But you know what, you can’t do it under these circumstances.”

Embedded video

Axios

@axios

Trump says he told Pelosi and Schumer that he won’t work on an infrastructure deal until they stop investigating him

The Wednesday barbs began after Pelosi emerged from a meeting with Congressional Democrats, annoncing that they believed Trump was involved in a “coverup” in regards to the administration’s efforts to prevent former White House Counsel Don McGahn from testifying Tuesday before the House Judiciary Committee.

The confrontation came on a day when pressure over a possible impeachment effort raised temperatures on both sides of the aisle. Ms. Pelosi arrived at the White House for a session with the president set to talk about infrastructure shortly after meeting with restive House Democrats to talk about impeachment. She emerged from that meeting with Democrats accusing Mr. Trump of a “cover-up.” –NYT

Embedded video

NBC News

@NBCNews

JUST IN: Speaker Pelosi says “we believe the president of the United States is engaged in a cover up” by stonewalling testimony for ongoing congressional investigations.

end
You knew that this was coming: Avenatti facing indictment for allegedly stealing from Stormy Daniels
(courtesy zerohedge)

Avenatti Facing Indictment For Allegedly Stealing From Stormy Daniels

For disgraced ‘creepy porn lawyer’ Michael Avenatti, the hits just won’t stop. After being indicted by prosecutors on both coasts over allegations that he tried to extort Nike and – in a separate incident – stole settlement money from a client to offset losses in one of his businesses, federal prosecutors in Manhattan are preparing to charge Avenatti with additional financial crimes.

Avennatti

The new charges, first reported by ABC News, are expected to include accusations that he stole from Stormy Daniels when he was representing the porn star during her crusade against President Trump.

Evan McMurry

@evanmcmurry

JUST IN: Federal prosecutors expected to file additional charges against Michael Avenatti, accusing him of misappropriating money that was supposed to be paid to Stormy Daniels, sources tell @ABC News. https://abcn.ws/2VTFxms

Feds expected to charge Avenatti in dealings with Stormy Daniels: Sources

Federal prosecutors are expected to charge Michael Avenatti with additional financial crimes Wednesday, sources briefed on the case told ABC News.

abcnews.go.com

On Wednesday, Avenatti said in a tweet that “no monies relating to Ms. Daniels were ever misappropriated or mishandled. She received millions of dollars worth of legal services and we expended huge sums on expenses.” Avenatti added that Daniels only paid “$100 (not a typo)” for the ‘services’ she received – which memorably included being asked to repay President Trump’s legal fees after her defamation crusade went off the rails.

In a particularly amusing series of tweets from Tuesday, Avenatti revealed that more charges would be coming, and griped that he was being ‘persecuted’ by the Feds while ‘the biggest criminal in the US’ (Trump) goes free.

Av

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With all the charges piling up against him, Avenatti is giving another famous Italian-American – one John Joseph Gotti – a run for his money. Assuming the charges all stick, we’re very much looking forward to watching Avenatti represent himself during the media circus these trials will inevitably generate.

*  *  *

Full Justice Department Statement:

U.S. Attorney Announces Indictment Of Michael Avenatti For Aggravated Identity Theft, Engaging In A Scheme To Defraud A Former Client

Avenatti Separately Indicted on Previously-Announced Charges Relating to a Scheme to Extort the Athletic Apparel Company Nike, Inc.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the indictment today of MICHAEL AVENATTI on fraud and aggravated identity theft charges.  As alleged, AVENATTI used misrepresentations and a fraudulent document purporting to bear his client’s name and signature to convince his client’s literary agent to divert money owed to AVENATTI’s client to an account controlled by AVENATTI.  AVENATTI then spent the money principally for his own personal and business purposes.  The fraud and aggravated identity theft case is assigned to U.S. District Judge Deborah Batts of the Southern District of New York.

AVENATTI was separately indicted today on extortion charges, which were the subject of a previous Complaint and arrest of AVENATTI, relating to his alleged attempt to extract more than $20 million in payments from Nike, Inc., by threatening to use his ability to garner publicity to inflict substantial financial and reputational harm on the company if his demands were not met.  That case is assigned to U.S. District Judge Paul Gardephe of the Southern District of New York.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Michael Avenatti abused and violated the core duty of an attorney – the duty to his client.  As alleged, he used his position of trust to steal an advance on the client’s book deal.  As alleged, he blatantly lied to and stole from his client to maintain his extravagant lifestyle, including to pay for, among other things, a monthly car payment on a Ferrari.  Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client.”

According to the allegations in the Indictment unsealed today[1]:

From August 2018 through February 2019, AVENATTI defrauded a client (“Victim-1”) by diverting money owed to Victim-1 to AVENATTI’s control and use.  After assisting Victim-1 in securing a book contract, AVENATTI allegedly stole a significant portion of Victim-1’s advance on that contract.  He did so by, among other things, sending a fraudulent and unauthorized letter purporting to contain Victim-1’s signature to Victim-1’s literary agent, which instructed the agent to send payments not to Victim-1 but to a bank account controlled by AVENATTI.  As alleged, Victim-1 had not signed or authorized the letter, and did not even know of its existence.

Specifically, prior to Victim-1’s literary agent wiring the second of four installment payments due to Victim-1 as part of the book advance, AVENATTI sent a letter to Victim-1’s literary agent purportedly signed by Victim-1 that instructed the literary agent to send all future payments to a client trust account in Victim-1’s name and controlled by AVENATTI.  The literary agent then wired $148,750 to the account, which AVENATTI promptly began spending for his own purposes, including on airfare, hotels, car services, restaurants and meal delivery, online retailers, payroll for his law firm and another business he owned, and insurance.  When Victim-1 began inquiring of AVENATTI as to why Victim-1 had not received the second installment, AVENATTI lied to Victim-1, telling Victim-1 that he was still attempting to obtain the payment from Victim-1’s publisher.  Approximately one month after diverting the payment, AVENATTI used funds recently received from another source to pay $148,750 to Victim-1, so that Victim-1 would not realize that AVENATTI had previously taken and used Victim-1’s money.

Approximately one week later, pursuant to AVENATTI’s earlier fraudulent instructions, the literary agent sent another payment of $148,750 of Victim-1’s book advance to the client account controlled by AVENATTI.  AVENATTI promptly began spending the money for his own purposes, including to make payments to individuals with whom AVENATTI had a personal relationship, to make a monthly lease payment on a luxury automobile, and to pay for airfare, dry cleaning, hotels, restaurants and meals, payroll, and insurance costs.  Moreover, to conceal his scheme, and despite repeated requests to AVENATTI, as Victim-1’s lawyer, for assistance in obtaining the book payment that Victim-1 believed was missing, AVENATTI led Victim-1 to believe that Victim-1’s publisher was refusing to make the payment to the literary agent, when, as AVENATTI knew, the publisher had made the payment to the literary agent, who had then sent the money to AVENATTI pursuant to AVENATTI’s fraudulent instructions.

*  *  *

AVENATTI, 48, of Los Angeles, California, is charged in the fraud and aggravated identity theft indictment with one count of wire fraud, which carries a maximum penalty of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory term of imprisonment of two years in addition to the sentence imposed for the wire fraud charge. 

AVENATTI is charged in the extortion indictment with one count of conspiracy to transmit interstate communications with intent to extort, which carries a maximum penalty of five years in prison, one count of conspiracy to commit extortion, which carries a maximum penalty of 20 years in prison, one count of transmission of interstate communications with intent to extort, which carries a maximum penalty of two years in prison, and one count of extortion, which carries a maximum penalty of 20 years in prison.

The maximum potential sentences in both cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York, and noted that the investigation is ongoing.

The cases are being handled by the Office’s Public Corruption Unit.  Assistant United States Attorneys Matthew Podolsky, Robert L. Boone, and Robert B. Sobelman are in charge of the prosecutions.

end

Attorney General Barr puts Intelligence bosses Clapper and Brennan on notice
(courtesy Kevin Brock/the Hill)

Attorney General Barr Puts Former Intel Bosses Clapper, Brennan On Notice

Authored by Kevin R. Brock via The Hill

Things seem to be moving quickly now. It has been a remarkable few weeks in American history. Momentum is building toward uncovering the distasteful possibility that the targeting of a U.S. presidential campaign was actually a political operation, fostered at the highest levels of government, masquerading as an FBI counterintelligence investigation.

Attorney General William Barr has signaled that his interest in examining the origins of the investigation into the Trump campaign extends beyond whether the FBI operated “by the book,” as former FBI Director James Comey asserts. Barr also wants to understand the role that the larger intelligence community, or IC, may have played in all of this.

Barr has thrown punches that have left an interesting mix of characters with a standing eight count. Certain eyes around D.C. are a little glassy right now.

Barr’s words and actions are telling. First, he raised the concern that the Trump campaign was “spied” upon. His use of the word “spying” appears more calculated than casual. The wailing and gnashing of teeth that followed is also telling. “The FBI doesn’t spy” became the sputtering counter-refrain of those trying to mask their nervousness.

It’s a fair point that’s beside the point. The FBI is charged with acting under strict legal restrictions and court orders. Spying is not a term traditionally associated with those activities.

But it also misses the point Barr appears to be making. The IC does spy; that’s what they do. Barr may have been referring less to the FBI and more to the IC’s possible murky involvement.

This seems to be validated by Barr’s second haymaker in as many weeks: his appointment of a surrogate investigator, U.S. Attorney John Durham. Why would the attorney general add a third investigation to those under way by Department of Justice Inspector General Michael Horowitz and U.S. Attorney John Huber? Because those investigations are focused on the FBI. Durham’s assignment is not similarly constrained; his marching orders appear broader.

Through Durham, Barr can start dusting for fingerprints across the government, not just the FBI. The squirming has begun.

In just the past week, we’ve seen a rush to comment by the former directors of national intelligence and the CIA. The FBI’s former general counsel has chimed in publicly and, of course, fired FBI Director Comey has been on a media offensive, practicing character assassination as a strategy with Barr among those in his crosshairs.

Each appears to be anxious about his own role in handling the controversial Steele dossier from the Trump-Russia investigation, and so there is some elbowing under the basket to get optimum positioning. And who can blame them? The attorney general has stated that he is going to focus particularly on the dossier’s exploitation, and specifically on the actions of the leadership of those agencies.

Interestingly, this establishes these leaders as principal witnesses in Durham’s inquiry. In essence they are using their easy access to public media platforms to coordinate and communicate their stories among themselves.

Ordinarily, this type of witness activity is troubling, if not borderline obstructive when done privately. In this case, Durham may be licking his chops as a prosecutor since a certain element of finger-pointing among the principals has emerged.

Each also is dealing with an elephant that’s not just in the room but sitting uncomfortably in their laps. Christopher Steele’s dossier is clearly a Russian intelligence operation (“active measure” in IC-speak) that took advantage of a cooperative outreach by the Hillary Clinton campaign.

If these IC leaders didn’t recognize it as such, then it truly was amateur hour at the top. The more troubling scenario would be if each made a conscious decision to ignore the obvious Russian interference attempt and, instead, wring political value out of the dossier.

This is a key area that deserves Durham’s attention. After all, this Russian active measures operation was used to further an FBI counterintelligence investigation against American citizens, and even secure a court order to electronically intercept former Trump campaign adviser Carter Page.

The American people shouldn’t feel badly if all this seems confusing. Even experienced counterintelligence investigators are scratching their heads. Former FBI general counsel to Comey, James Baker, added to the confusion last week with some lawyer language — that the FBI “took the dossier seriously, but not necessarily literally.” Say what?

IG Horowitz likely will take note of that statement as he finalizes his review of possible abuses by Comey and his team of the Foreign Intelligence Surveillance Act (FISA) process. It seems doubtful that a FISA court judge would have granted an electronic surveillance order had he been told the FBI believed Page was acting as an agent of Russia — but not literally so.

Barr also wants to understand the role of CIA confidential sources, or “assets,” that were cozied up next to Page and another former Trump campaign adviser, George Papadopoulos. Both were announced as Trump campaign members the same week in March 2016, and almost immediately began attracting attention from an interesting cast of characters associated with the agency long before the FBI counterintelligence investigation was launched that July.

The CIA has its own set of restrictions about the use of assets against Americans, and this deserves Durham’s focus as well. Former CIA Director John Brennan has commented on his belief in the sufficiency of FBI predication to investigate the Trump campaign but has said little about the CIA’s role in all of this. Durham will want to make sure that CIA asset activity didn’t somehow help create that predication.

IC leaders aren’t used to being held to account by the Justice Department, and their oversight by Congress generally is mild. Theirs is a comfortable world, obfuscated and kept mysterious by the liberal use of their classified-information shield. The demonization of the Attorney General Barr has begun — a sign that he is probably on the right track. And the IC leaders are on notice.

Kevin R. Brock, former assistant director of intelligence for the FBI, was an FBI special agent for 24 years and principal deputy director of the National Counterterrorism Center (NCTC). He is a founder and principal of NewStreet Global Solutions, LLC.

end

SWAMP STORIES/KEY STORIES/KING REPORT

(COURTESY OF CHRIS POWELL OF GATA)

end

WILL SEE YOU THURSDAY NIGHT

I AM PROVIDING A LITTLE ADVANCE WARNING THAT ON THURSDAY MAY 23.2019 I WILL NOT PROVIDE A FULL COMMENTARY. HOWEVER LATE IN THE EVENING I WILL PROVIDE ONLY THE COMEX DATA  , SOME MORNING DATA AND SOME OTHER BIG EVENTS.
ALL THE BEST
H

 

 

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