JUNE 5//internet down/at 1 pm est/published what i could

 

 

GOLD: $1330.00  UP $6.00 (COMEX TO COMEX CLOSING)

Silver:  $14.83 UP 4 CENTS  (COMEX TO COMEX CLOSING)

Closing access prices:

Gold : 1330.00

 

silver:  $14.83

 

 

 

YOUR DATA…

 

 

 

COMEX DATA

 

 

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

today RECEIVING 6/52

EXCHANGE: COMEX
CONTRACT: JUNE 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,323.400000000 USD
INTENT DATE: 06/04/2019 DELIVERY DATE: 06/06/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
323 H HSBC 30
357 C WEDBUSH 1
657 C MORGAN STANLEY 1
661 C JP MORGAN 8
686 C INTL FCSTONE 22 6
690 C ABN AMRO 1
737 C ADVANTAGE 19 4
800 C MAREX SPEC 7 1
905 C ADM 3 1
____________________________________________________________________________________________

TOTAL: 52 52
MONTH TO DATE: 500

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 52 NOTICE(S) FOR 5200 OZ (0.1617 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  500 NOTICES FOR 50000 OZ  (1.555 TONNES)

 

 

 

SILVER

 

FOR JUNE

 

 

0 NOTICE(S) FILED TODAY FOR NIL  OZ/

 

total number of notices filed so far this month: 262 for 1310,000 oz

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Bitcoin: OPENING MORNING TRADE :  $ 7856 UP 168 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 7650 DOWN 545

 

 

 

 

end

 

XXXX

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A CONSIDERABLE SIZED 2644 CONTRACTS FROM 213,481 UP TO 216,145 DESPITE THE TINY 1 CENT GAIN IN SILVER PRICING AT THE COMEX.( LIQUIDATION OF THE SPREADERS HAVE STOPPED FOR SILVER AND IT STOPPED FOR GOLD AS WELL. WE WILL WITNESS A RISE IN THE SPREADERS IN SILVER ONCE WE START TRADING IN JUNE… READY FOR THE FIRST DAY NOTICE JULY CONTRACT.) TODAY WE ARRIVED FURTHER FROM AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS.

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

 0 FOR MAY, 0 FOR JUNE, 2475 FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2475 CONTRACTS. WITH THE TRANSFER OF 2475 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 2475 EFP CONTRACTS TRANSLATES INTO 12.38 MILLION OZ  ACCOMPANYING:

1.THE 1 CENT GAIN 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.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

1.330 MILLION OZ STANDING FOR SILVER IN JUNE//

 

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

8998 CONTRACTS (FOR 3 TRADING DAYS TOTAL 8998 CONTRACTS) OR 44.990 MILLION OZ: (AVERAGE PER DAY: 2966 CONTRACTS OR 14.83 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JUNE:  44.99 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 6.41% 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:          933.70    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.

MAY 2019: TOTAL EFP ISSUANCE:                                                136.55 MILLION OZ

RESULT: WE HAD A HUGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2664 WITH THE 1 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A VERY HUGE SIZED EFP ISSUANCE OF 2475 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 WILL RESUME THEIR LIQUIDATION OF THE SPREAD TRADES FOR SILVER ONCE THE JUNE CONTRACT COMMENCES IN EARNEST….

TODAY WE GAINED AN ATMOSPHERIC SIZED: 5139 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2475 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 2664  OI COMEX CONTRACTS. AND ALL OF THIS HUGE DEMAND HAPPENED WITH A TINY 1 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $14.79 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. 1.067 BILLION OZ TO BE EXACT or 152% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 0 NOTICE(S) FOR NIL, 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/ A MAY:  18.845 MILLION OZ ..JUNE 1.330 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)

.

WITH RESPECT TO SPREADING:  WE  PROBABLY HAD GOOD ACTIVITY OF THE SPREADING ACCUMULATION IN SILVER TODAY//  

 

 

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 WILL NOW SWITCHED TO SILVER AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX SILVER 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 JUNE BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (JULY), 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.” 

 

IN GOLD, THE OPEN INTEREST ROSE BY A STRONG SIZED 4791 CONTRACTS, TO 481,495 DESPITE THE TINY  $0.85 PRICE GAIN WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// YESTERDAY/THE SPREADING LIQUIDATION HAS STOPPED AND THESE SPREADING FELLOWS WILL MORPH INTO SILVER ONCE JUNE GETS UNDERWAY.  THE GAIN IN OI GOLD CONTRACTS IS REAL AND NOT PUMPED UP BY SPREADING.   

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUGE SIZED 14,486 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 14,486 CONTRACTS, JUNE 2020  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 481,495.  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 AN ATMOSPHERIC SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 19,277 CONTRACTS: 4791 OI CONTRACTS INCREASED AT THE COMEX  AND 14,486 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 19,277 CONTRACTS OR 1,927,700 OZ OR 59.95 TONNES.  YESTERDAY WE HAD A TINY GAIN OF $0.85 IN GOLD TRADING….AND WITH THAT GAIN IN  PRICE, WE  HAD A HUMONGOUS GAIN IN GOLD TONNAGE OF 59.95  TONNES!!!!!! THE BANKERS WERE SUPPLYING COPIOUS SUPPLIES OF SHORT GOLD COMEX PAPER.

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 41,971 CONTRACTS OR 4,197,100 OR 130.54 TONNES (3 TRADING DAYS AND THUS AVERAGING: 13,990 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 2 TRADING DAYS IN  TONNES: 130.54 TONNES

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

THUS EFP TRANSFERS REPRESENTS 130.54/3550 x 100% TONNES =3.67% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     2408.46 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

MAY 2019 TOTAL ISSUANCE:                    449.10 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 STRONG SIZED INCREASE IN OI AT THE COMEX OF 4791 DESPITE THE TINY PRICING GAIN THAT GOLD UNDERTOOK ON YESTERDAY($0.85)) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 14,486 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 14,486 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC SIZED GAIN OF 19,277 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

14,486 CONTRACTS MOVE TO LONDON AND 4791 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 59.95 TONNES). ..AND THIS GAIN OF  DEMAND OCCURRED WITH THE RISE IN PRICE OF $0.85 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE  HAD ZERO PRESENCE OF SPREADING ACCUMULATION IN GOLD  ///TODAY/

 

 

 

we had:  52 notice(s) filed upon for 5,200 oz of gold at the comex.

 

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

GLD...

 

WITH GOLD UP $6.00 TODAY// MY GOODNESS IS THIS STRANGE:

 

???A WITHDRAWAL OF 2.06 TONNES OF GOLD FROM THE GLD…IT LOOKS LIKE THE CROOKS FOUND SOME PHYSICAL TO SENT OFF TO LONDON

 

INVENTORY RESTS AT 757.59 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 1 CENT TODAY:

A HUGE CHANGES  IN SILVER INVENTORY AT THE SLV:

AN ADDITION (DEPOSIT) OF 2.396 MILLION OZ OF PAPER SILVER ADDED TO THE GLD.

 

 

 

 

 

 

 

/INVENTORY RESTS AT 314.434 MILLION OZ.

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER ROSE BY A STRONG SIZED 2664 CONTRACTS from 213.481 UP TO 216,145 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 AND GOLD FOR NOW  BUT WILL NOW MORPH INTO SILVER AS THE COMEX SILVER MONTH OF JUNE COMMENCES IN EARNEST..

 

 

 

 

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: 2475 CONTRACTS  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2475 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI GAIN AT THE COMEX OF 2644 CONTRACTS TO THE 2475 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN ATMOSPHERIC GAIN OF 5139 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 26.87MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 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  18.765 MILLION OZ FOR MAY AND NOW 1.330 MILLION OZ FOR JUNE.

 

 

RESULT: A HUGE SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE TINY 1 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A HUGE SIZED 2475 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 ) 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 0.86 POINTS OR 0.03%  //Hang Sang CLOSED UP 133.92 POINTS OR 1.80%   /The Nikkei closed UP 367.56 POINTS OR 1.80%//Australia’s all ordinaires CLOSED UP .42%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9091 /Oil DOWN TO 52.49 dollars per barrel for WTI and 60.38 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9091 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9206 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

 

 

 

 

 

 

b) REPORT ON JAPAN

3 China/Chinese affairs

i)China

The USA braces for Chinese retaliation as they scramble to find alternative to rare earth suppliers.  China supplies 80% of the rare earths

( zerohedge)

ii)Awful PMI numbers coming out of China last night as both the Mfg PMI which went into contraction and the Service PMI close to contraction!!

( zerohedge)

iii)This must have been a shock: Chinese warships dock at the Sydney Harbour..totally unannounced.
( zerohedge)

iv)China/Russia

Now China thinks that it can shift production to Russia.  The problem is that Russia is already facing sanctions and if goods are traced to Chinese source, then additional sanctions will be forthcoming

( zerohedge)

4/EUROPEAN AFFAIRS

 

i) ITALY

This is big!! Italian stocks and bonds slide after the EU officially triggers disciplinary action over |Italy;s large Debt which now stands at 132% /GDP heading towards 135% due to the high 2.5% deficit in this years spending.  Strangely Brussels is now going to sanction Italy 3.5 billion euros for being consistently offside. Expect a full war between Italy and Brussels and this may be the signal that Salvini wishes for as he really wants to leave the Euro and then that will collapse all the European banks

( zeorhedge)

ii)The atomic blast has just been delivered.   Italy is now poised to issue a Euro parallel currency called a Mini bot.  You can say that it is the forerunner to a newly introduced Lira.

I have been telling you for the past several years the problem facing the ECB and Germany with respect to the Target 2 imbalances.  Germany is owed 1 trillion euros from the likes of Italy and Spain  (also Portugal).  If Italy walks and forms the Lira then the rest of the EU must share according to their GDP percentages part of the debt including Italy at 17% and surely they will not pay.  Also Greece and Portugal and Spain will not pay.  Then the only solution is for the ECB to print 1 trillion euros and pay Germany.  That will cause gold and silver to skyrocket and send the euro tumbling to nothing.

Italy points out that France is in worse shape than Italy and they have been having constant deficits since the start of the Euro scheme.

I would say that Italy that the upper hand.

(courtesy Mish Shedlock)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

 

6. GLOBAL ISSUES

i)THE GLOBE/AIR CARGO

A strong indicator that global growth is plunging

( zerohedge)

ii)Mexico

What a joke!!  The Mexican Peso pops after Navarro states that tariffs on Mexican goods do not have to be implemented.  He forgot to say that Mexico must cave in on everything.
(zerohedge)

iii)Australia

It is not a crime for the Australian National Broadcaster to publish classified documents. It is probably a crime for the guys who stole the documents in the first place, but not the broadcaster who publishes the documents.

(courtesy zerohedge)

7. OIL ISSUES

 

 

 

8 EMERGING MARKET ISSUES

 

i)VENEZUELA/

 

 

 

9. PHYSICAL MARKETS

i)Russia states that it consider exporting more gold only after purchasing gold at a discount from market prices. From the data received so far this year, the official gold that Russia is reporting is basically the gold produced from within Russia

( Bloomberg/GATA)

ii)Deutsche bank gets it keep the 20 tonnes of gold received through a swap with Venezuela.  Deutsche bank is so off side with its precious metals derivatives the small sum of 20 tonnes will not help them one bit.

(bloomberg/GATA)

iii)China is not looking at European investments as it departs dollar investments

(Reuters/GATA)

 

iv)Craig comments on the Fed Chairman Powell’s announcement that interest rates will now revert southbound as the economy is now moribund..expect the dollar to plummet, gold and silver to skyrocket…

( Craig Hemke/GATA)

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

 

 

MARKET TRADING//

a)Market trading/early morning/

ii)Market data

a)Wow! this was a surprise.  The ADP report is always bullish and rarely do we see a miss..except today.  They report only a tiny gain of 27,000 jobs on expectations of 185,000

(zerohedge)

b)This is not good!!  Services is by far the bigger part of USA GDP.  Now we see that growth is the weakest since over 3 years.

(courtesy zerohedge)

iii)USA ECONOMIC/GENERAL STORIES

a)What a riot..CNN ratings plunge again

( zerohedge)

b)USA/China

Interesting:  since the trade war commencement, Chinese tourism to the USA has plunged.

( zerohedge)

c)Hong Kong’s major newspaper, the South China Morning Post comments and warns USA farmers that they will lose the Chinese market for good if Trump continues with his tariffs.  They state that the tariff impact in China on an increase of Chinese tariffs on USA goods will not be a big factor

( South China Morning Post)

d)Bill Blain’s open letter to Powell highlighting the folly of the Fed

( Bill Blain)

SWAMP STORIES

E)SWAMP STORIES/MAJOR STORIES//THE KING REPORT
end
LET US BEGIN:

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A STRONG  SIZED 4791 CONTRACTS TO A LEVEL OF 481,495 DESPITE  THE TINY RISE OF $0.85 IN GOLD PRICING WITH RESPECT TO YESTERDAY // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A HUGE SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 14,486 EFP CONTRACTS WERE ISSUED:

0 FOR JUNE ’19: 0 CONTRACTS , AUG; 14,486 CONTRACTS: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  14,486 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 OUR 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: 19,277 TOTAL CONTRACTS IN THAT 14,486 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG  SIZED 4791 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. 

 

NET GAIN ON THE TWO EXCHANGES ::  19,277 CONTRACTS OR 1,927,700 OZ OR 59.95 TONNES.

 

We are now in the  active contract month of JUNE and here the open interest stands at 1366 CONTRACTS as we lost 396 contracts.  We had only 358 notices filed yesterday so we lost 38 contracts or 3800 oz of gold that will not stand for delivery as there appears to be no gold at the comex and thus they morphed into London based forwards (hoping to find the fast vanishing supplies of physical gold over there) as well as accepting a fiat bonus for their effort.  The next contract month is the non active month of July and here the OI rose by 28 contracts up to 1415 contracts.  The next big active month for deliverable gold is August and here the OI rose by 3817 contracts up to 361,381.

 

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 52 NOTICES FILED TODAY AT THE COMEX FOR  5200 OZ. (0.1617 TONNES)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.4

Total COMEX silver OI ROSE BY A HUGE SIZED 2664 CONTRACTS FROM 213,481 UP TO 216,145 (AND CLOSER TO 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 HUGE  OI COMEX GAIN OCCURRED DESPITE THE TINY 1 CENT RISE IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE.  HERE WE HAVE 4 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 1 CONTRACTS.  WE HAD 1 NOTICE FILED ON FRIDAY SO WE GAINED 0 CONTRACTS OR AN ADDITIONAL NIL OZ OF SILVER WILL STAND AT THE COMEX.  NOTICE THE DIFFERENCE BETWEEN GOLD AND SILVER.  WE STILL HAVE SOME PHYSICAL SILVER IN THE PITS AT THE COMEX AND THUS THE COMMERCIALS WILL GO AFTER THAT SUPPLY TO PUT OUT FIRES ELSEWHERE.  (WITH GOLD, THERE IS NO SUPPLY LEFT. OUR BANKER FRIENDS ARE IN DEEP TROUBLE WITH RESPECT TO GOLD.)

THE NEXT MONTH AFTER JUNE IS THE ACTIVE MONTH OF JULY.  HERE THE OI FELL BY 688 CONTRACTS DOWN TO 151,488.  WE LOST 1 CONTRACT OF OI FOR AUGUST TO STAND AT 10. THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI ROSE BY 2846 CONTRACTS UP TO 29,590 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 0 notice(s) filed for NIL OZ for the JUNE, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 291,020  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  377,976  contracts

 

 

 

 

 

INITIAL standings for  JUNE/GOLD

June 5/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
4983.405
oz
BRINKS
Deposits to the Dealer Inventory in oz nil

oz

 

 

 

 

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

nil oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
52 notice(s)
 5200 OZ
(0.1617 TONNES)
No of oz to be served (notices)
1314 contracts
(131,400 oz)
4.087 TONNES
Total monthly oz gold served (contracts) so far this month
500 notices
50,000 OZ
1.555 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

STILL: NO GOLD ENTERS THE GOLD COMEX

we had 0 dealer entry:

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

We had 0 kilobar entries

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else:  0

 

 

 

total gold deposits: nil  oz

 

 very little gold arrives from outside/ nothing arrived   today

we had 1 gold withdrawal from the customer account:

 

 

Gold withdrawals;

i)  We had 1 withdrawal:

 

out of BRINKS: 4983.405 oz

 

.

total gold withdrawals; 4983.405   oz

 

 

i) we had 1 adjustment today
OUT OF SCOTIA:
34,970.718 OZ  was adjusted out of

FOR THE JUNE 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 352 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 6 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 JUNE /2019. contract month, we take the total number of notices filed so far for the month (500) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE. (1366 contract) minus the number of notices served upon today (35 x 100 oz per contract) equals 181,400 OZ OR 5.698 TONNES) the number of ounces standing in this NON active month of MAY

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

No of notices served (500 x 100 oz)  + (1366)OI for the front month minus the number of notices served upon today (35 x 100 oz )which equals 181,400 oz standing OR 5.698 TONNES in this  active delivery month of JUNE.

We lost 38 contracts or 3800 oz will not stand as these guys had to morph into London based forwards looking for real gold as there was none present at the comex in New York. These guys received a fiat bonus for their efforts.

 

 

 

 

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 5.698 TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

 

total registered or dealer gold:  200,412.535 oz or  6.233 tonnes
total registered and eligible (customer) gold;   7,677,316.825 oz 238.79 tonnes

 

 

 

OF OPEN INTERESTS FOR THE UPCOMING JUNE 2019 CONTRACT VS JUNE 2018

 

 

 

 

 

FOR THE INITIAL JUNE 2018 CONTRACT WE HAD A HUGE 32.152 TONNES STAND. (VS 5.698 TONNES TODAY/JUNE 2019)

HOWEVER BY MONTH’S END ONLY 21.56 TONNES EVENTUALLY STOOD AS THE REST MORPHED INTO LONDON BASED FORWARDS.  AS YOU CAN SEE, THE CROOKS ARE FOLLOWING THE SAME FORMAT OF MORPHING VS LAST YEAR AS ONLY GOLD VAPOUR SEEMS TO BE PHYSICALLY PRESENT AT THE COMEX AND LONGS MUST TRY THEIR LUCK IN LONDON.

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 June

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
june 5 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 621,540.432 oz
CNT
HSBC

 

 

 

 

 

 

 

Deposits to the Dealer Inventory
NIL oz
Deposits to the Customer Inventory
601,406.106 oz
CNT
DELAWARE
No of oz served today (contracts)
0
CONTRACT(S)
(NIL OZ)
No of oz to be served (notices)
4 contracts
20,000 oz)
Total monthly oz silver served (contracts) 262 contracts

1,310,000 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  2 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

i)into CNT: 600,435.106 oz

ii) Into Delaware: 932.000 oz

 

 

 

 

total customer deposits today:  601.406.106  oz

 

we had 2 withdrawals out of the customer account:

 

i) out of HSBC:  20,058.210

 

 

iii)  out of CNT 601,482.222 oz

 

 

 

 

 

total 621,540.432 oz

 

we had 0 adjustment :

 

 

 

total dealer silver:  87.865 million

total dealer + customer silver:  304.940 million oz

 

The total number of notices filed today for the JUNE 2019. contract month is represented by 0 contract(s) FOR  NIL oz

To calculate the number of silver ounces that will stand for delivery in JUNE, we take the total number of notices filed for the month so far at 262 x 5,000 oz = 1,310,000 oz to which we add the difference between the open interest for the front month of JUNE. (4) and the number of notices served upon today (0 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 262(notices served so far)x 5000 oz + OI for front month of MAY( 4) -number of notices served upon today (0)x 5000 oz equals 1,330,000 oz of silver standing for the JN contract month.

WE GAINED 0 CONTRACTS OR AN ADDITIONAL nil OZ WILL STAND AS THESE GUYS REFUSE TO MORPH INTO LONDON BASED FORWARDS AND THEY ALSO NEGATED A FIAT BONUS. THERE ARE PHYSICAL SUPPLIES OF SILVER AT THE COMEX AND THUS WE WITNESS  QUEUE JUMPING IN FULL FORCE. IN GOLD THERE IS NO PHYSICAL OUNCES PRESENT.

 

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 0 notice(s) filed for NIL OZfor the JUNE, 2019 COMEX contract for silver

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  96,988 CONTRACTS

 

 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 127,626 CONTRACTS..(we probably had some spreading activity as they are now starting to accumulate in silver)

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 127,627 CONTRACTS EQUATES to 638 million  OZ 91.14% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

 

end

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -3.73% June 5/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.89% to NAV (june 5/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -3.73%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.10 TRADING 12.74/DISCOUNT 2.78

END

And now the Gold inventory at the GLD/

JUNE 5/WITH GOLD UP8.00>>A BIG SURPRISE: A HUGE WITHDRAWAL OF 2.06 TONNES FROM THE GLD/INVENTORY RESTS AT 757.59 TONNES

JUNE 4/WITH GOLD UP 0.85 TODAY: A MONSTROUS PAPER GAIN OF 16.44 TONNES/GLD INVENTORY RESTS AT 759.65 TONNES

JUNE 3/WITH GOLD UP $17.50 TODAY: ANOTHER BIG CHANGE, A DEPOSIT OF 2.35 TONNES OF GOLD INTO THE GLD//

MAY 31/WITH GOLD UP $17.10 TODAY: NO CHANGES  IN GOLD INVENTORY AT THE GLD/GLD INVENTORY RESTS AT 740.86 TONNES

MAY 30: WITH GOLD UP $6.40 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.52 TONNES/INVENTORY RESTS AT 740.86 TONNES

MAY 29/WITH GOLD UP $3.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 737.34 TONNES

MAY 28/WITH GOLD DOWN $6.50 TODAY: A BIG  CHANGE IN GOLD INVENTORY AT THE GLD> A WITHDRAWAL OF 1.47 TONNES/INVENTORY RESTS AT 737.34 TONNES

MAY 24/WITH GOLD DOWN $1.60 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 738.81 TONNES

MAY 23/WITH GOLD UP $11.10 TODAY: A STRANGE WITHDRAWAL OF .88 TONNES FORM THE GLD/INVENTORY RESTS AT 738,81 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JUNE 5/2019/ Inventory rests tonight at 757.59 tonnes

*IN LAST 605 TRADING DAYS: 176.38 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 504 TRADING DAYS: A NET 10,54 TONNES HAVE NOW BEEN REMOVED FROM THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

JUNE 5/WITH SILVER UP 4 CENTS TODAY: A HUGE PAPER DEPOSIT OF 2.396 MILLION OZ INTO THE SLV/SLV INVENTORY SITS AT 214.038 MILLION OZ

JUNE 4/WITH SILVER UP 1 CENT TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 312.038 MILLION OZ//

JUNE 3/WITH SILVER UP 19 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 312.038 MILLION OZ//

MAY 31/WITH SILVER UP 6 CENTS TODAY: A DEPOSIT OF 422,000 OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 312.038 MILLION OZ/

May 30/WITH SILVER UP 19 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ///

MAY 29/WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ//

MAY 28/WITH SILVER DOWN 23 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ//

MAY 24/WITH SILVER DOWN 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ/

MAY 23/WITH SILVER UP 16 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ//

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////

 

JUNE 5/2019:

 

Inventory 314.434 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 2.13/ and libor 6 month duration 2.46

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

G0LD LENDING RATE: + .33

 

XXXXXXXX

12 Month MM GOFO
+ 2.24%

LIBOR FOR 12 MONTH DURATION: 2.41

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.17

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold Hi

 

 

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

Russia states that it consider exporting more gold only after purchasing gold at a discount from market prices. From the data received so far this year, the official gold that Russia is reporting is basically the gold produced from within Russia

(courtesy Bloomberg)

Russian banks consider exporting more gold

 Section: 

By Elena Mazneva and Yuliya Fedorinova
Bloomberg News
Tuesday, June 4, 2019

Russian banks are considering increasing gold exports after the central bank said it would buy gold only at a discount, a move that could pressure global bullion prices.

The Bank of Russia made the change to its pricing policy this year, saying it would buy from dealers at a level slightly below the benchmark London gold price. It’s part of a broader policy push to stimulate growth in the market for gold as a financial investment, namely bars and coins, rather than foreign currencies or assets priced in U.S. dollars.

… 

 

However, gold as an investment option in Russia doesn’t have the same cachet as in other countries, like China or the United States, and demand for the metal has been stagnant. Given the new discount, some dealers may be reluctant to sell to the central bank, said Oleg Petropavlovskiy, a BCS Global Market analyst. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-06-04/russian-banks-mull-ex…

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

 

end

Deutsche bank gets it keep the 20 tonnes of gold received through a swap with Venezuela.  Deutsche bank is so off side with its precious metals derivatives the small sum of 20 tonnes will not help them one bit.

(bloomberg/GATA)

Deutsche Bank gets to keep gold swapped by Venezuela

 Section: 

Venezuela Defaults on Gold Swap with Deutsche Bank

By Patricia Laya
Bloomberg News
Tuesday, June 4, 2019

Venezuela has defaulted on a gold swap agreement valued at $750 million with Deutsche Bank AG, prompting the lender to take control of the precious metal which was used as collateral and close out the contract, according to two people with direct knowledge of the matter.

As part of a financing agreement signed in 2016, Venezuela received a cash loan from Deutsche Bank and put up 20 tons of gold as collateral. The agreement, which was set to expire in 2021, was settled early due to missed interest payments, said the people, who asked not to be named speaking about a private matter.

In the meantime, opposition leader Juan Guaido’s parallel government has asked the bank to deposit $120 million into an account outside President Nicolas Maduro’s reach, which represents the difference in price from when the gold was acquired to current levels. As part of efforts to unseat Maduro, the U.S. and more than 50 countries have recognized Guaido as the legitimate leader of Venezuela even though he still doesn’t control key institutions at home, including the central bank.

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-06-04/venezuela-is-said-to-…

end

China is not looking at European investments as it departs dollar investments

(Reuters/GATA)

China looks beyond U.S. Treasuries for dollar investments

 Section: 

By Abhinav Ramnarayan, Virginia Furness
Reuters
Tuesday, June 4, 2019

LONDON — China may be expanding its investments beyond U.S. Treasuries into debt issued by top-rated European and other government agencies, allowing it to keep its money in dollar assets while picking up some extra yield, bankers with knowledge of the matter say.

At least four investment banking officials who deal with public-sector debt report a spike in interest from China in government-linked borrowers, who can offer an alternative to U.S. Treasuries.

… 

Prominent among these are the European Investment Bank, a development bank backed by European Union countries, KfW, a German government-guaranteed institution, and AIIB, a Beijing-based pan-Asian development bank that issued its first ever bond last month. …

… For the remainder of the report:

https://www.reuters.com/article/china-treasuries/china-looks-beyond-u-s-…

end

Craig comments on the Fed Chairman Powell’s announcement that interest rates will now revert southbound as the economy is now moribund..expect the dollar to plummet, gold and silver to skyrocket…

(courtesy Craig Hemke/GATA)

Craig Hemke at Sprott Money: Fed policy reversal is imminent

 Section: 

9:21p ET Tuesday, June 4, 2019

Dear Friend of GATA and Gold:

The Federal Reserve, the TF Metals Report’s Craig Hemke writes today at Sprott Money, is trapped and cannot raise interest rates and “normalize” its balance sheet without worsening the turmoil already underway in financial markets. Fed policy, Hemke writes, will soon revert to interest rates cuts and “quantitative easing,” monetary devaluation that should be good for the monetary metals.

Hemke’s analysis is headlined “Fed Policy Reversal Now Imminent” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/fed-policy-reversal-now-imminent-craig-…

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

end



iii) Other Physical stories
Gold trading today as outlined by Mish Shedlock

Mish: Gold Gains As Faith In Central Banks Is About To Be Tested Again

Authored by Mike Shedlock via MishTalk,

Gold put in a strong performance with the St. Louis Fed president presenting a case for cutting rates.

St. Louis Fed president James Bullard helped light a fire under gold today, Yapping About Too Little Inflation and the Need for Rate Cuts.

Technically speaking, the $1350 to $1370 area has been one tough nut for gold to crack.

On a weekly chart, gold has failed in this area five or six times, depending on how one counts.

Gold a Hedge, But Against What?

Some view gold as an inflation hedge.

It isn’t.

Gold is a hedge against the notion that the Fed has things under control.

Gold fell from $850 an ounce in 1980 to $262 an ounce in in 1999 with inflation every step of the way.

People believed Greenspan, the great “maestro” had everything under control. It was an illusion.

Faith in central banks is about to be tested again.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

 

end
GOLD//SILVER TRADING TODAY:

 

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/7 AM EST

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.9071/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9206   /shanghai bourse CLOSED DOWN 0.86 POINTS OR 0.03%

HANG SANG CLOSED UP 133.92 POINTS OR 0.50%

 

2. Nikkei closed UP 367.56 POINTS OR 1.80%

 

 

 

 

3. Europe stocks OPENED GREEN EXCEPT ITALY /

 

 

 

USA dollar index FALLS TO 97.08/Euro RISES TO 1.1264

3b Japan 10 year bond yield: FALLS TO. –.12/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.31/ 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:: 53.10 and Brent: 61.76

3f Gold UP/JAPANESE Yen DOWN 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 -.22%/Italian 10 yr bond yield UP to 2.61% /SPAIN 10 YR BOND YIELD DOWN TO 0.65%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.83: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 2.96

3k Gold at $1335.10silver at: 14.85   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 1/100 in roubles/dollar) 65.09

3m oil into the 53 dollar handle for WTI and 61 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 108.31 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 .9917 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1166 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 0.22%

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 2.12% early this morning. Thirty year rate at 2.62%

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

6.  TURKISH LIRA:  UP  TO 5.7031..

 

Global Markets Roar Higher After Powell Spikes The Koolaid

After the second best day for the S&P in 2019, which saw the US stock market surge by 2.14%…

… global stocks gained for a third straight day on Wednesday, paradoxically bolstered by growing hopes that the global economy is deteriorating fast enough so that the Fed will cut interest rates this year – perhaps as soon as this month – to avert a recession, while the dollar languished near seven-week lows.

“The market is sending out invitations for a rate cut party, and waiting for the Fed to turn-up,” said Greg Gibbs, director and founder of Amplifying Global FX. Powell “gave just enough hint that he might turn up, but he is still reluctant to acknowledge that risks to growth have increased.”

And while Powell made ‘terrible news great again’, as observed late last night when the China Caixin Services PMI dropped again by 1.8 to 52.7 in May, below consensus expectations (the sub-indexes suggest slow down in the growth of services exports orders, new business and employment, though inflationary pressures were reduced slightly in the services sector)…

… in turn sending futures even higher, the overnight rally has cooled somewhat amid lingering trade-war concerns.

Global equities, and US index futures advanced and the yen fell after Fed Chairman Jerome Powell said the central bank is monitoring the trade war’s impact and would act appropriately to sustain the U.S. expansion, opening the door to possible interest-rate cuts. Powell’s comments come a day after St. Louis Federal Reserve President James Bullard said in a speech that a rate cut may be needed “soon.”

Stock markets responded positively to Powell’s comments, with U.S. stocks registering their biggest one-day gains in five months.  The optimism rolled over into markets on Wednesday, with the MSCI All-Country World Index up 0.4% after the start of European trading, adding further to a 1.4% gain on Tuesday.

“Whilst the markets are giddy on central bank support, the effects could be short-lived,” said London Capital Group’s Jasper Lawler. “Let’s not forget the other half of the equation is the escalating trade war on multiple fronts. Today the markets are happy to focus on Fed support, but with the U.S. Commerce Department promising retaliation in the event of China’s rare earth’s threat, this trade war looks set to get worse before it gets better.”

Technology shares led the advance in Europe’s Stoxx 600 index as software companies including SAP and Micro Focus jumped after a positive sales forecast by U.S. peer Salesforce.com. Sectors are somewhat mixed, with the Tech sector the notable outperformer, despite yesterday’s FAANG driven underperformance in tech names; where the sector lagged heavily for much of the session. Separately, TSMC Chairman Liu stated that the US’s move to ban US companies from doing business with Huawei is to have a short-term impact on TSMC, though the Co’s outlook remains unchanged, which may have provided some impetus to the European IT names.

Asian stocks gained, led by industrials and IT sectors. Japan and Hong Kong led the rally, while markets in Singapore, India, Philippines, Malaysia and Indonesia were shut today for public holidays. Japan’s Topix Index closed 2.1% higher. Hong Kong’s Hang Seng Index snapped its five-day losing streak, with Techtronic Industries Co. and WH Group Ltd. contributing most of the gains. Australia’s S&P/ASX 200 Index rose 0.4% after its central bank chief strongly suggested he could follow up Tuesday’s interest-rate cut with another reduction.

Overnight, the IMF cut its 2019 economic growth forecast for China to 6.2% on heightened uncertainty around trade frictions, saying that more monetary policy easing would be warranted if the Sino-U.S. trade war escalates.

Ten-year Treasuries were little changed and EU government bonds were mixed, while the euro strengthened to a seven-week high. Italy’s yields rose after the EU started a disciplinary process against the country over its debt. Germany’s 10-year bond yield reached a record low and Italian debt held on to this week’s gains as investors ramped up their bets on a generous loan package for banks in the euro zone as well as a U.S. rate cut. Germany’s 10-year bond yield reached a record low, following a spike in Japanese bonds which surged on speculation of more easing from the BOJ.

In FX, the dollar steadied after a four-day decline on short-term positioning as Treasuries edged up alongside most euro-area bonds. Global equities advanced and the yen fell after Fed Chairman Jerome Powell opened the door to possible interest-rate cuts. The kiwi led gains in Group-of-10 currencies after RBNZ’s Christian Hawkesby surprised traders with relatively hawkish comments. The euro climbed for a fourth day. The loonie and the Norwegian krone extended recent gains as oil prices consolidated, while sterling advanced on stronger-than-expected U.K. services data, and as Theresa May prepared to step down on Friday.

“Given the extent of the dovish re-pricing of the Fed outlook and the collapse in U.S. treasury yields in recent weeks, the dollar losses appear fairly muted in this context,” said Chris Turner, head of FX strategy at ING in London.

In the escalating feud between the US and Mexico, Trump stated that US Senate Minority leader Schumer gave Mexico bad advice in his suggestion that the tariffs on Mexico is a bluff, while Trump added it is ‘no bluff!’. Elsewhere, US Senate Majority leader McConnell said there is “not much support” from Republicans for tariffs on Mexico and hopes they can be avoided via talks with the Mexican delegation, while a US administration official said US-Mexico talks will be held at the White House later today.

In the latest Brexit news, former UK Foreign Secretary Boris Johnson warned Conservative MPs that a Brexit delay means defeat and that the Conservative Party faces “extinction” if Britain is not out of the EU by October 31st. Meanwhile, Trump backtracked regarding the NHS being part of a future US-UK trade deal and stated that he doesn’t see it being on the table as the health service was something that would not be consider part of trade, which was in contrast to a prior suggestion of including the NHS in trade discussions.

In commodity markets, oil prices resumed their slide, dragged down by a surprise gain in U.S. inventories and comments from the head of Russian state oil producer Rosneft questioning the point of a deal with OPEC to withhold supplies. In European trade, U.S. crude retreated 0.85% to $53.03 a barrel and Brent crude futures dropped 0.6% to $61.58 per barrel.[

Expected data include mortgage applications and employment change. Brown-Forman and Campbell Soup are among companies reporting earnings

Market Snapshot

  • S&P 500 futures up 0.4% to 2,816.00
  • STOXX Europe 600 up 0.5% to 374.39
  • MXAP up 1% to 153.95
  • MXAPJ up 0.4% to 502.83
  • Nikkei up 1.8% to 20,776.10
  • Topix up 2.1% to 1,530.08
  • Hang Seng Index up 0.5% to 26,895.44
  • Shanghai Composite down 0.03% to 2,861.42
  • Sensex down 0.5% to 40,083.54
  • Australia S&P/ASX 200 up 0.4% to 6,358.52
  • Kospi up 0.1% to 2,069.11
  • German 10Y yield unchanged at -0.206%
  • Euro up 0.2% to $1.1273
  • Italian 10Y yield fell 4.4 bps to 2.145%
  • Spanish 10Y yield fell 2.6 bps to 0.639%
  • Brent futures down 0.2% to $61.83/bbl
  • Gold spot up 0.8% to $1,336.43
  • U.S. Dollar Index down 0.2% to 96.93

Top Overnight News from Bloomberg

  • In separate comments Tuesday, Fed Chair Jerome Powell and his No. 2, Richard Clarida, reassured nervous investors they’re watching closely for signs that disputes between the U.S. and its trading partners are denting the outlook for the world’s largest economy
  • Treasury Secretary Steven Mnuchin will meet with the People’s Bank of China chief during the Group of 20 gathering of finance ministers and central bankers in Japan over the weekend, the Treasury Department said on Tuesday
  • Democratic presidential candidate Elizabeth Warren called for “actively managing” the dollar to bolster U.S. jobs and growth, a move that would break from a longstanding currency policy agreement among the world’s 20 major economies
  • Boris Johnson, the front-runner to replace Theresa May as U.K. prime minister, warned Conservative Party colleagues that they face “extinction” if they don’t deliver Brexit by the current deadline of Oct. 31
  • The U.K. economy was ‘close to stagnation’ according to IHS Markit. Stronger-than-expected growth in Britain’s dominant services sector isn’t enough to make up for a poor performance in the rest of the economy, with data showing contractions in construction and manufacturing
  • Strength among service providers helped economic activity in the euro area expand at a modest pace in May, though signs of a broader rebound continue to be elusive. A composite Purchasing Managers’ Index came in at 51.8, above the 51.6 initial estimate and higher than April’s reading
  • It’s Japanese government bonds’ turn to take the lead in the global fixed-income melt-up as bets climb for the Bank of Japan to add to its stimulus. Japan’s two- year yield is on course for its biggest daily drop since January and swaps indicate that traders have priced in a full 10-basis point reduction in rates by next April
  • Central banks are resuming their first-responder role as the world economy runs into trouble. Traders are betting the Fed will lower rates before year-end, Australia’s central bank cut rates Tuesday and India’s may follow this week while the ECB is bound to stay dovish
  • Australia’s economy expanded slightly slower than forecast in the first three months of the year, as a housing downturn continued to weigh on growth
  • Oil resumed declines as an industry report signaling a surprise jump in U.S. crude inventories stirred fears of a supply glut at a time when trade wars are jeopardizing the global demand outlook

Asian equity markets were higher as the region took impetus from the strength in the US where sentiment was buoyed after comments from Fed Chair Powell spurred hopes of a rate cut. This saw Wall St notch its biggest gain since early-January with the Nasdaq the frontrunner as tech outperformed, while all sectors in the S&P 500 closed in the green and the DJIA rallied by over 500 points. ASX 200 (+0.4%) gained in which tech led the upside and with risk appetite supported by the recent rate cut by the RBA, as well its openness to further reductions. Nikkei 225 (+1.8%) surged as Japanese exporters cheered a weaker currency and with SoftBank shares boosted as it expects to book a profit of around JPY 1.2tln on the partial sale of its Alibaba stake. Hang Seng (+0.5%) and Shanghai Comp. (U/C) conformed to the positive global risk tone but with gains capped by disappointing Chinese Caixin PMI data and a substantial liquidity drain of CNY 210bln by the PBoC, while trade concerns lingered after China issued a warning against travelling to the US and held a meeting on rare earths where experts recommended greater controls on exports of the metals. Finally, 10yr JGBs were higher with prices underpinned on the back of Fed Chair Powell’s dovishness and as Japanese 10yr yields slipped to their lowest in around 3 years.

Top Asian News

  • Chinese Auto Group Calls for Stimulus to Help Spur Car Sales
  • Diokno Says Rate Cut Inevitable as Faster May CPI Isn’t a Trend
  • China Nominates Occupy-Era Hong Kong Police Chief for UN Post
  • IMF Cuts China Growth Forecast, Citing Downside Trade War Risks

Major European indices [Euro Stoxx 50 +0.2%] are firmer, although somewhat more subdued than their Asia-Pac counterparts,which were boosted by Wall Street printing its largest daily gain since early-January. Sectors are somewhat mixed, with the Tech sector the notable outperformer, despite yesterday’s FAANG driven underperformance in tech names; where the sector lagged heavily for much of the session. Separately, but potentially of note for Tech names; TSMC Chairman Liu stated that the US’s move to ban US companies from doing business with Huawei is to have a short-term impact on TSMC, though the Co’s outlook remains unchanged, which may have provided some impetus to the European IT names. This morning’s most notable move is Provident Financial (+16.4%) on the back of Non-Standard Finance (-2.7%) stating that they are not going ahead with the hostile takeover. Also, in the green and towards the top of the Stoxx 600 are Norsk Hydro (+3.6%) after posting stronger than expected earnings; however, the Co. state that they expect to see payments relating to the cyber-attack in their Q3 earnings. Meanwhile, Saipem (+4.8%) shares spiked higher after announcing a new EPC contract for Anadarko Mozambique project, in which the Co. will have a share of around USD 6bln. Finally, Hikma Pharmaceuticals (-0.8%) are in negative territory as they are set to be removed from the FTSE 100.

Top European News

  • Italy Commits to EU3.5b Annual Savings in Response to EU: Stampa
  • Deutsche Bank’s DWS to Focus on Costs as Deals Prove Difficult
  • Euro-Area Economy Extends Modest Growth With Help From Services
  • Romanian Central Bank Mulls New Tools Amid Fastest EU Inflation

In FX, some divergence down under as RBNZ Deputy Governor Hawkesby intimates that rates may remain on hold for a while if not considerably longer in contrast to RBA Governor Lowe who inferred that more easing could be in the offing in addition to Tuesday’s 25 bp OCR cut. Hence, the Aud/Nzd cross has recoiled further from circa 1.0600 and through 1.0550, while the Kiwi is leading G10 gains vs a soggy Greenback after Fed chair Powell promised to support the US economy against a more pronounced slowdown yesterday. Nzd/Usd has tested resistance and offers around 0.6950, as Aud/Usd continues its rebound from pre-RBA lows to just over 0.7000 and into a heavy option expiry zone spanning 0.7005 to 0.7025 (1.7 bn). Note also, the Aussie needs to clear Fib resistance at 0.6995 convincingly and faces congested technical resistance between 0.7033-35 in the form of the 55 DMA and another Fib.

  • USD – The aforementioned Dollar weakness has pushed the DXY back down below 97.000 and sub-the 100 DMA at 96.980 to a fresh 96.915 low amidst widespread losses vs major currency counterparts and EMs, bar the Yen and Rand. Technically, 96.745 is the next support level and fundamentally the focus switches to ADP ahead of Friday’s NFP, services surveys (Markit PMI and ISM) and more Fed speak.
  • EUR/GBP/CAD/CHF – As noted above, all beneficiaries of the Buck’s demise, but with the single currency and Pound also gleaning some traction via better than expected services PMIs, on balance. Indeed, Eur/Usd has now surpassed the 100 DMA (1.1276) having narrowly missed the equivalent level on Tuesday and is eyeing 1.1300, while Cable seems more assured on the 1.2700 handle, albeit still lagging in Eur/Gbp cross terms within a 0.8855-80 range. Elsewhere, the Loonie has overcome 1.3400 and is filling hefty buying interest layered from 1.3370 to 1.3360, with the 100 DMA sitting just under 1.3350 at 1.3348, and the Franc has rebounded towards 0.9900 but underperforming vs the Euro in broad 1.1300-1.1250 parameters.
  • JPY – In contrast to its major peers, the Yen has been undermined by the ongoing recovery in broad risk sentiment and is retesting recent 108.30+ lows vs the Dollar with decent expiries also within close proximity at 108.20-30 (1 bn) and 108.50-55 (1.1 bn).
  • EM – While most of the region takes advantage of the Dollar’s downturn, more downbeat SA macro developments have hit the Rand and propped up Usd/Zar within 14.8240-6260 boundaries. The bad news kicked off with a sub-50 services PMI and continued via weaker business sentiment, while the ANC party’s ally has joined forces to back a wider SARB policy mandate prompting a dismissive response from the Bank itself.

In commodities, WTI (-0.7%) and Brent (-0.6%) prices are back on the decline as a surprise build in last night’s API exacerbated the recent downside seen amidst demand concerns. Stockpiles last week increased by 3.5mln barrels vs. an expected decline of 800k barrels. On the OPEC front, Russian Energy Minister Novak will be meeting his Saudi counterpart, Al-Falih, on June 10th to potentially discuss a date for the OPEC/OPEC+ meeting with no confirmation as of yet to whether it will take place at the end of June or early July. News-flow has been light for the complex thus far, with traders now eyeing the release of the weekly DoE crude stocks data in which the headline is expected to draw by 849k barrels. Elsewhere, Gold (+0.9%) is holding onto a bulk of its recent gains amid the weaker post-Powell USD whilst copper is set to notch a third straight day of gains on the back of a receding Buck, whilst alumina prices declined due to a demand halt as traders paused on spot purchases amid high prices.

US Event Calendar

  • 8:15am: ADP Employment Change, est. 185,000, prior 275,000
  • 9:45am: Markit US Services PMI, est. 50.9, prior 50.9; Composite PMI, prior 50.9
  • 10am: ISM Non-Manufacturing Index, est. 55.4, prior 55.5
  • 2pm: U.S. Federal Reserve Releases Beige Book

DB’s Jim Reid concludes the overnight wrap

I am still trying to get over the powerful conclusion to “Chernobyl” that aired in the UK last night. I’ve no idea if your country has the rights to it but if not move to somewhere that does. TV drama doesn’t get much better. It’s ironic that this great show ended the day after the new series of “Love Island” started. If your country hasn’t had an international version count yourself lucky! Back to Chernobyl and the only thing left to do is spend some time reading up on how much of it was true and how much of it was a dramatised version. I did this for the excellent “The Crown” and walked away feeling slightly cheated when I realised not all of it happened so it’s always a danger with stories based on real life.

How much truth there was in the big rally for markets yesterday and how much was dramatised is open for question. Indeed, the last 24 hours has seen a marked change in sentiment and although it’s hard to completely attribute the move to Powell’s comments at the Fed conference yesterday, the fact that the Chair seemingly didn’t push back on very dovish market pricing did at least fill investors with a bit more confidence. Indeed the +2.14% return for the S&P 500 was in fact the biggest since January while the recently battered NASDAQ rose +2.65% and FANGS +3.92% which at least helped to plaster over some of the recent damage to the sector.

In truth Powell didn’t provide a huge amount for the market to feed off however he did say in relation to “trade negotiations and other matters” that “we are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labour market and inflation near our symmetric 2% objective”. The reference to being prepared to “act as appropriate” was probably the most significant insofar as not pushing back on market pricing. The rest of Powell’s speech focused on longer term issues which our US economists summarised as being balanced in the assessment of ‘make-up’ inflation policies. He did not talk about new policy tools, e.g. negative rates, and he downplayed the significance of the dot plots.

Treasury yields were already higher prior to Powell speaking and finished the day slightly higher still, despite a brief knee-jerk drop lower as his comments hit the wires. Ten-year yields ended at 2.131% and +5.9bps on the day. At the short-end, 2y yields sold off +5.2bps and the most since April 1, making the 2s10s curve marginally steeper. It’s a bit puzzling that front-end rates rose despite the dovish tilt to Powell’s comments, but after parsing the price action, it turns out that the market is now pricing even higher odds of a cut by September, now at 93%. Powell’s willingness not to push back against this pricing and his dovish comments have likely raised expectations that the Fed will act promptly, which perversely lowers the odds that they need to cut rates even more steeply later in 2020. So two-year yields rising in this case may actually be completely consistent with the market’s perception of Powell being dovish. Well that’s the only way we can explain the price action and the narrative together.

The USD (-0.07%) was little changed despite the Fed noise and some new political headlines, which goes to show how much is already priced in. Democratic Presidential Candidate Elizabeth Warren released a plan aimed at “more actively managing our currency value” in an effort to boost American manufacturing. This drew some attention, but did not move markets given the early stage of the primary campaign. Still, it seems like the political consensus for a weaker dollar is growing in a bipartisan way.

In Europe Bund yields stubbornly failed to take part in the bond sell-off with 10y yields actually edging -0.7bps lower in yield to a fresh closing low (-0.210%) covering all of human existence and probably through the lives of the dinosaurs and beyond too. Indeed the divergence in moves between treasuries and bunds was its sharpest of the year, for both 10- and 30-year paper. Elsewhere in Europe, BTPs rallied -4.4bps as risk-on dominated, with sentiment also boosted by constructive comments from Deputy PM Di Maio, who downplayed the recent stories about disagreements within the coalition by saying he is open to the Northern League’s proposed flat tax and devolution measures. Staying with Italy, the risk of the Commission recommending an Excessive Deficit Procedure as soon as today has increased significantly of late but our economists continue to believe it is more likely in Q4 after the 2020 draft budget, as they highlight in their report here . In any case it’s one to watch.

Back to the risk-on. It wasn’t just Powell’s comments yesterday which seemed to help. Mexico’s Foreign Minister said that there’s an 80% chance that Mexico and the USA will find common ground – which helped the Mexican Peso to strengthen +1.08% – while the Senate leadership from both parties pushed back against the tariffs. Majority Leader McConnell said that there is “not much support” for the new duties among Republican lawmakers, and Democratic Leader Schumer added that Trump “likely won’t follow through.” Auto stocks led gains in both Europe and the US, rallying +3.09% and +4.65%, respectively. Overnight, however, President Trump doubled down, saying his plan was “no bluff,” which caused the peso to give back about 0.35% of its gains. In addition, China’s Commerce Ministry put out a statement saying that China hopes the US will meet China halfway. As always with these headlines it’s hard to know how much weight was behind them but it at least acted as a temporary circuit breaker, especially given that China had also issued a warning to citizens travelling to the US which wasn’t a good sign.

Staying with trade, overnight the US Treasury Department confirmed that Treasury Secretary Mnuchin will meet Chinese central bank Governor Yi Gang during a gathering of G-20 finance ministers from this Friday to Sunday in Japan, which should add as the next focal point for markets. This comes as reports also hit that China has fined Ford’s main China venture for antitrust violations. Elsewhere, Chinese President Xi Jinping gave a reasonably good assessment of the country’s economy in an interview with Russian media including Tass saying, while the global economy and trade have slowed down, China’s economy has stayed in a reasonable range in 2019, with stable growth, increasing employment, rising incomes and stable prices. He also said, China has “sufficient conditions, ability and confidence” to cope with various risks.

Markets in Asia are following Wall Street’s lead this morning with the Nikkei (+1.76%), Hang Seng (+0.72%), Shanghai Comp (+0.63%) and Kospi (+0.31%) all up. The more modest gains in China however may partly reflect the Caixin services PMI which printed at 52.7 (vs. 54.0 expected) and the lowest since February 2019. As you’ll see in the day ahead the remaining global services PMIs are due out today.

Moving on. Prior to Powell, the Chicago Fed’s Evans had sounded fairly balanced, saying that the economy is “doing well” and “the consumer is solid” but also that he was “nervous” about “inflation underrunning 2%”. On the current very dovish market pricing, Evans also responded by saying that “it suggests the market sees something that I haven’t yet seen in the national data”. So no endorsing of cutting rates yet but suggesting that he will need to see the impact in the data to lean towards justifying easing. After Powell, Vice Chair Clarida largely repeated the same message, saying the economy is in a good place but that tariff uncertainty will need to be taken into account. He said that if the Fed senses growth slowing, they will respond appropriately and cited the 1995 and 1998 “insurance cut” episodes as a possible roadmap. He also responded to a question about the yield curve by saying “if the yield curve inverts as it has and if it persists for some time, that’s obviously something I would definitely take seriously.”

It’s worth making the point that there is still a fairly steady stream of Fed speakers this week – including Clarida again today – however that will be the final chance for the market to digest officials’ latest views before the Fed hits their blackout period from next week before the Fed meeting outcome on the 19th.

Meanwhile in Europe there was more disappointment in the latest inflation data which showed that May core CPI was 0.8% yoy, and one-tenth below consensus. Our economists forecast core CPI to hover around 0.8-0.9% for the next few months before rising back towards 1.0% at the end of the summer. Finally in the UK the May construction PMI followed the manufacturing reading in slumping last month, to 48.6 (vs. 50.6 expected) and nearly 2pts lower than April. That puts both readings in contractionary territory and puts the focus on today’s services reading.

Finally, in other news, the World Bank cut its global growth forecast to 2.6% this year (vs. 2.9% previously) and 2.7% next year. The World Bank President David Malpass said in a call with reporters that “there’s been a tumble in business confidence, a deepening slowdown in global trade and sluggish investment in emerging and developing economies,” while adding, “momentum remains fragile.”

Looking at the day ahead, this morning the focus will be on those remaining services and composite PMIs in Europe with a first look also at the data for the non-core and UK. Not long after we get the April PPI and retail sales reports for the Euro Area. This afternoon in the US we’ve got the May ADP employment change reading, PMIs and May non-manufacturing ISM. The Fed’s Beige Book is also due out tonight while the scheduled Fed speakers include Clarida, Bowman and Bosic. The BoE’s Ramsden is also due to speak this morning. Away from that China’s Xi Jinping departs for a two-day visit to Russia while President Trump is due to meet Irish PM Varadkar.

 

3. ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 0.86 POINTS OR 0.03%  //Hang Sang CLOSED UP 133.92 POINTS OR 1.80%   /The Nikkei closed UP 367.56 POINTS OR 1.80%//Australia’s all ordinaires CLOSED UP .42%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9091 /Oil DOWN TO 52.49 dollars per barrel for WTI and 60.38 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9091 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9206 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

SOUTH KOREA

end

3 b JAPAN AFFAIRS

3 C CHINA/CHINESE AFFAIRS

China

The USA braces for Chinese retaliation as they scramble to find alternative to rare earth suppliers.  China supplies 80% of the rare earths

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

 

i) ITALY

This is big!! Italian stocks and bonds slide after the EU officially triggers disciplinary action over |Italy;s large Debt which now stands at 132% /GDP heading towards 135% due to the high 2.5% deficit in this years spending.  Strangely Brussels is now going to sanction Italy 3.5 billion euros for being consistently offside. Expect a full war between Italy and Brussels and this may be the signal that Salvini wishes for as he really wants to leave the Euro and then that will collapse all the European banks

(courtesy zeorhedge)

Italian Stocks, Bonds Slide After EU Triggers Disciplinary Process Over Public Debt

It’s not just the trade war of 2018 that is back: as of moments ago, the feud between Italy and EU over the Mediterranean country’s soaring debt (and spending) which sent Italian bond yields soaring last year, only to fade away as Brussels conceded to vague promises from Rome, is now officially back and moments ago Italian stocks, bonds and the Euro all slumped after the EU’s executive arm formally took the first step toward “disciplining” Italy over its failure to rein in its debt, setting up a clash with the government in Rome and paving the way for an initial penalty of as much as €3.5 billion.

In a report published Wednesday, the European Commission said Italy hasn’t made sufficient progress in reducing its mountain of debt in line with the bloc’s fiscal rules, and now expects Italy’s debt ratio to rise in both 2019 and 2020, up to over 135%, due to a large debt-increasing “snowball” effect, and that a disciplinary process is “warranted”.

“Italy’s public debt remains a major source of vulnerability for the economy,” the commission said in its report. The ratio of the nation’s debt to gross domestic product will “rise in both 2019 and 2020, up to over 135%, due to a large debt-increasing ‘snowball’ effect, a declining primary surplus, and underachieved privatization proceeds,” according to the report. “While refinancing risks remain limited in the short term, the high public debt remains a source of vulnerability for Italy’s economy,” the commission added.

Additionally, in its damning report, the commission says that Italy made only limited progress in tackling tax evasion and improving market-based access to finance. “There has been no progress in shifting taxation away from productive factors, in reducing the share of old-age pensions in public spending (and indeed there has even been some backtracking in that field), in reducing trial length in civil justice, and in addressing restrictions on competition,” the commission said.

The step marks an escalation of the country’s budget tussle that roiled markets at the end of 2018 and is a warning for Italy’s populist leaders, particularly Deputy Premier Matteo Salvini who has vowed to change EU budget rules.

As Bloomberg notes, the commission’s move is just one step in a complicated process, which requires EU governments to weigh in several times, and while any fine would be relatively small, an official reprimand from the bloc could spell further trouble for Italy, “which is already buffeted by financial markets and plagued by tensions between the anti-establishment Five Star Movement and the anti-migration League, which are in a tenuous ruling coalition.”

EU finance chiefs would also have to say whether they agree with the commission’s proposal, most likely at their next gathering in early July.

What happens then is a paradox: after being punished for having too much debt, the EU will fine Italy several billions in euros, forcing Rome to incur even more debt! Specifically, at that point the commission will have 20 days to say whether a “non-interest bearing deposit” of up to 0.2% of gross domestic product — around 3.5 billion euros — should be demanded from Italy. If Italy fails to comply with the EU’s recommendations on reducing its debt – which it will –  it could face even higher sanctions.

While the EU has started such procedures for other countries, it has never done so on the basis of excessive debt. It has also never actually fined any country, opting to set other sanctions for countries breaching fiscal rules at zero.

Even if Italy eventually evades a financial penalty, the stigma of the disciplinary process casts a shadow over its engagement with EU business and may reduce the Italian government’s leverage in everything from the scramble for European Central Bank board seats to its ability to negotiate politically thorny issues in Brussels.

Besides the purely monetary considerations, the Brussels escalation sets up a dilemma for Salvini and his fellow-Deputy Premier Luigi Di Maio. Salvini and Di Maio will have to establish how far to go in defying Brussels over the 2020 budget, which must be drafted in the fall. It’s also likely to exacerbate tensions in the coalition. Salvini insisted on renegotiating EU rules after Prime Minister Giuseppe Conte – who threatened Monday to resign if Salvini and Di Maio don’t stop electioneering – said that the rules “remain in force until we manage to change them.”

Italy’s debt ratio rose to 132.2% in 2018, and under Rome’s current plan is expected to reach 133.7% of GDP this year and 135.2% in 2020, according to the commission’s forecasts, which predict a higher debt-to-GDP ratio than the Italian government’s projections.

In what will likely be a self-fulfilling prophecy, the commission’s report warned that Italy is exposed to sudden increases in “financial market risk aversion due to still large rollover needs (around 17% of GDP in 2019) related to its large public debt” which can “lead to high volatility in sovereign bond markets and substantially higher debt servicing costs, with the subsequent risk of negative spillovers to the banking sector and to financing conditions for firms and households.”

And while Italy’s deficit is well within the 3% limit, the commission has demanded smaller gaps for the country to bring down its debt load, which at more than 130% of GDP is second only to Greece within Europe. Under EU rules, no country should have a budget deficit larger than 3% of gross domestic product or debt above 60% of output; any country outside of those limits must set annual targets to show they’re moving in the right direction.

Finally, for those asking if the move is objective and justified or purely political, here is the answer:

  • EU SAYS FRENCH SPENDING DOESN’T WARRANT DISCIPLINARY ACTION

In kneejerk response, the news sent Italian yields higher…

the Euro lower, and Italian stocks plunging like a rock.

end

The atomic blast has just been delivered.   Italy is now poised to issue a Euro parallel currency called a Mini bot.  You can say that it is the forerunner to a newly introduced Lira.

I have been telling you for the past several years the problem facing the ECB and Germany with respect to the Target 2 imbalances.  Germany is owed 1 trillion euros from the likes of Italy and Spain  (also Portugal).  If Italy walks and forms the Lira then the rest of the EU must share according to their GDP percentages part of the debt including Italy at 17% and surely they will not pay.  Also Greece and Portugal and Spain will not pay.  Then the only solution is for the ECB to print 1 trillion euros and pay Germany.  That will cause gold and silver to skyrocket and send the euro tumbling to nothing.

Italy points out that France is in worse shape than Italy and they have been having constant deficits since the start of the Euro scheme.

I would say that Italy that the upper hand.

(courtesy Mish Shedlock)

Brace For Impact: Italy Poised To Launch Euro Parallel Currency

Authored by Mike Shedlock via MishTalk,

Italy faces an “Excessive Deficit” ruling, the first in EU history. Italy’s response is to revive a parallel currency proposal.

A euro crisis has been brewing for years.

Eurozone officials and the ECB have long held the upper hand vs individual countries like Greece and Portugal.

However, Italy now has the upper hand, if it chooses to wage war.

Let’s backup and start from the beginning to tie this story together.

Excessive Debt

Please consider EU Could Slap 3 Billion Euro Fine on Italy for Excessive Debt.

The European Commission could impose a 3 billion euro fine on Italy for breaking EU rules due to its rising debt and structural deficit levels, the country’s Deputy Prime Minister Matteo Salvini said on Tuesday.

Salvini, whose far-right League party triumphed in European elections on Sunday, said he would use “all my energies” to fight what he said were outdated and unfair European fiscal rules.

“Let’s see if we get this letter where they give us a fine for debt accumulated over the past and tell us to pay 3 billion euros,” Salvini said in an interview with RTL radio.

What About France?

Daniel Lacalle

@dlacalle_IA

While everyone is talking about Italy and its budget deficit, France has not had a balanced budget since the late 70s,

France vs Italy Key Points

  • The current debate is over excessive debt, not deficits.
  • Italy is in defiance of debt, not deficit rules, but its proposed budget will violate both.
  • France violates both sets of numbers already, but not by as much.
  • In essence, there is one set of rules for France and Germany and another set of rules for everyone else.

Parallel Currency Proposal

Please consider Italy to Activate its ‘Parallel Currency’ in Defiant Riposte to EU Ultimatum.

“I don’t govern a country on its knees,” said Matteo Salvini after sweeping the European elections even more emphatically than the Brexit party. Note the majestic ‘I’. He is already master of Rome.

The Lega strongman can no longer be contained, even by Italy’s ever-ingenious mandarin class. His party commands 40pc of the country together with eurosceptic confederates from the Brothers of Italy. It has erupted like a volcano in the Bourbon territories of the Mezzogiorno, now on the front line of migrant flows and left to fend for itself by Europe. Salvini can force a snap-election at any time.

By some maniacal reflex the dying Commission of Jean-Claude Juncker has chosen this moment to draw up the first indictment letter of the revamped debt and deficits regime. Italy faces €3.5bn of fines for failure to tighten its belt. It has 48 hours to respond.

“We’re not Greece,” said Claudio Borghi, Lega chairman of Italy’s house budget committee. “We are net contributors to the EU budget. We have a trade surplus and primary budget surplus. We don’t need anything from anybody. And we are in better shape than France.”

“I am not going to hang myself for some silly rule,” said Salvini. “Until unemployment falls to 5pc we have a right to invest. We have regions where youth unemployment is 50pc. We need a Trump cure, a positive fiscal shock to reboot the country.” His plan is a €30bn boost led by a flat tax of 15pc.

And The FT reports today that this parallel currency proposal is being revived:

Debate is growing in Italy about the suggestion that a new domestic currency could be introduced by the government to pay its debts – and the possibility that Rome’s Eurosceptic coalition might use it to facilitate the nation’s departure from the euro.

Prominent members of deputy prime minister Matteo Salvini’s ruling League party have floated the proposal – which was endorsed by a vote in the Italian parliament last week.

Concerns Over “Euro Default Risk” Mount

The concerns over Italy have hit mainstream media in the EU, but not the US. For example, please consider German Bundesbank Comes Clean on Euro Default Risks After Italy’s ‘Parallel Currency’ Decree

The German Bundesbank has warned that it could face heavy losses if a major country leaves the euro and defaults on debts to the European Central Bank system, but warned that any attempt to prepare for such a crisis could backfire by triggering a speculative attack.

The analysis is highly sensitive coming just days after the insurgent Lega-Five Star government in Italy passed a decree in the Italian parliament authorizing the creation of a parallel payments system known as ‘minibots’, a scheme decried by critics as a threat to the integrity of the euro and potentially a ‘lira-in-waiting’.

While the Bundesbank text sticks to the standard line that a euro break-up is hypothetical it nevertheless admits – after years of obfuscation – that the ECB’s internal Target2 settlement system entails inescapable costs for Germany and other EMU member states should it ever happen. It also gives the impression that the monetary authorities have no clear strategy for handling such a crisis.

Professor Philip Turner, a former monetary official at the Bank for International Settlements, said the politics of Target2 are poisonous. “This is lending on a huge scale that no government has approved. It is covering fundamental imbalances at the heart of the eurozone system, and it can’t go on indefinitely,” he said.

The International Monetary Fund says it would be hard to prevent a sovereign debt crisis in Italy engulfing Spain and Portugal. The ECB could therefore face a Target2 crisis approaching €1 trillion if Italy’s rebel government sets off a chain reaction with its ‘minibot’ notes – which it claims are needed to cover €52bn of state arrears to Italian contractors and households.

The Bundesbank’s text states that if a country leaves EMU and its central bank defaults on Target2 liabilities, the ECB will have to eat through a series of buffers: first its own capital – dramatic enough – and then by drawing in money from the remaining central banks on a ‘capital key’ basis.\

Not Shocking

There is not a single thing shocking in the preceding analysis other than the discussion is finally taking place at top levels.

I have been discussing Target2 imbalances for years.

  1. Eight Reasons a Financial Crisis is Coming
  2. “One Size Fits Germany” Math Impossibility, Get Your Money Out of Italy Now!
  3. Eurointelligence Displays Stunning Ignorance Regarding Target2
  4. Another Rebuttal to the Idea that Target2 Claims are “Fictional”

Masters in Circumventing Rules

About one year ago, I commented a Reader From Italy Chimes in on the “Minibot” Parallel Currency Idea.

Hello Mish

Regardless of anything else: Italians are masters in finding smart ways to circumvent rules. There is even an adage in Italy regarding this.

On that basis, I would not be surprised if at one point in time, someone in Brussels or Frankfurt will realize too late precisely what is happening. …..

This was my reply to reader “AC”:

Germany gets to decide between debt mutualization or a breakup of the Eurozone and Italian default on Target2 imbalances. The only other possibility that comes to mind is the ECB prints enough to backstop Target2.

Target2 Imbalances April 2019

Italy, Spain, Germany

  • Italy owes creditors, primarily Germany, €481 billion.
  • Spain owes creditors, primarily Germany, €403 billion.
  • Germany needs to collate €919 billion from debtors.

The above numbers have not changed that much in the past year.

What Has Recently Changed?

The answer is amusing.

To prevent Beppe Grillo and his 5-Star movement from coming into power, Italy changed its election rules to give coalitions more power than parties.

The result is Salvini might win so much support in the next election that he may have a super-majority in Parliament so as to not need a referendum to launch the mini-bot parallel currency.

And so, here we are.

Italy owes creditors close to half a trillion euros. If Italy defaults, the rest of the countries have to pick up the tab based on GDP percentage weights.

Default Percentages

Curiously, via ESM Rules, if Italy were to default, Italy would be responsible for 17.91% of the tab.

Germany would be liable for 27.14% of the tab.

Spain, which already has a Target2 liability of €403 billion would be responsible, in theory, for picking up 11.9% of €481 billion, but that doers not count the 17.9% that Italy would of course not pay.

Upper Hand?

With Greece and Portugal, the ECB had the upper hand.

Who has the upper hand here?

I suggest Italy and I hope Italy uses it.

end

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

 

END

6.GLOBAL ISSUES

THE GLOBE/AIR CARGO

A strong indicator that global growth is plunging

(courtesy zerohedge)

Air Cargo Demand Continues To Plunge As World Trade Sinks

The International Air Transport Association (IATA) published a new report for global air freight markets showing that demand (measured in freight tonne kilometers (FTKs)), plunged 4.7% in April on a YoY basis. The trend turned negative in January as YoY demand declined thanks to a synchronized global downturn and deepening trade war.

Air freight operators are expecting a further deterioration in global growth in 2H19. Trade tensions between Washington and Beijing dramatically flared up last month, and industry experts warned global trade volume is in free fall.

“If we see further deterioration and tariff increases, there will be further damage to world trade,” IATA director general Alexandre de Juniac said on a conference call. “It will be a difficult year for world cargo.”

Freight capacity, measured in freight tonne kilometers (AFTKs), expanded by 2.6% YoY in April. Capacity growth outpaced demand for the last four quarters. Air cargo volumes marginally increased during the Chinese New Year and Easter but have since turned down with volumes 3% below the August 2018 peak.

“April saw a sharp decline in air cargo growth and the trend is clearly negative this year. Cost inputs are rising, trade tensions are affecting confidence, and global trade is weakening. Airlines are adjusting their capacity growth to try and fall into line with the dip in global trade since the end of 2018. It all adds up to a challenging year ahead for the cargo business. Governments should respond by easing trade barriers in order to drive economic activity,” said Juniac.

Evidence of the slowdown is materializing across the world. Chinese industrial output, retail sales, and investment dropped in April, said Bloomberg. In the US, retail sales declined in April while factory production dropped for the third time in four months. In Europe, German business confidence fell to four-year lows last month.

Nearly $6 trillion of goods are exported by air transport each year, according to IATA, accounting for 35% of world trade. Air freight companies have already warned about revenue declines due to weakening world trade.

 

Both UPS and rival FedEx have warned about declining shipments because of the trade war. Korean Air Lines has recently seen a “drastic” reduction in cargo volumes. Data from German airport operators and Deutsche Lufthansa AG also show declining volumes.

Robert Mayer, a senior lecturer of cargo business at the Centre for Air Transport Management at England’s Cranfield University, told Bloomberg that air freight slowdowns could lead to a broader industrial slowdown, similar to what was seen right before the 2008 crash.

“There will be a fallout on cargo as we go through the year,” Tim Clark, president of Gulf long-haul airline Emirates, said in an interview at IATA’s annual meeting in Seoul on Sunday. “If it worsens and there is a lot of posturing aero-politically, which is possibly a result of the trade war, that could see an effect on trans-Pacific demand and to an extent European-Asian demand.”

As the trade war deepens, tariffs will rip supply chains apart, raising the price of every part and product. Companies will have to then rework these complex operations in ways that will shift trade flows.

“Freight export volumes from China may not recover to their pre-tariff levels,” Cowen & Co analyst Jason Seidl said in a May 8 report. “Many shippers have adjusted their supply chains to source goods from South Asia, South America, Mexico, and Canada or the US.”

IATA’s Regional Performance:

Global trade volumes show a decline since 4Q18, breaking a straight ascending line from when global central banks injected record amounts of credit into the global financial system in 1H16. Global growth in 1Q19 has stagnated, and the risk of a worldwide trade recession is higher than it has ever been in the last ten years.

Global PMIs confirmed the weakness in world trade.

The most significant concern we have is that growth in 2H19 will not rebound but instead plunge even further.

END
Mexico
What a joke!!  The Mexican Peso pops after Navarro states that tariffs on Mexican goods do not have to be implemented.  He forgot to say that Mexico must cave in on everything.
(zerohedge)

Peso Pops After Navarro Comments On Mexican Tariffs

With traders dazed and confused over US policy vis-a-vis Mexico, when first Trump said his tariff threat is “no bluff”, only to be followed by Navarro contradicting himself saying that tariffs “do not have to take effect”, Mexico’s president has also chimed in providing some more ammo for the bullish case:

  • NAVARRO: TARIFFS WITH MEXICO MAY NOT HAVE TO GO INTO EFFECT
  • DOLLAR PARES LOSS AFTER NAVARRO COMMENTS ON POSSIBLE TARIFFS
  • MXN ERASES LOSS ON NAVARRO TARIFF COMMENTS
  • WHITE HOUSE TRADE ADVISER PETER NAVARRO SPEAKS ON CNN

The MXN remains near session highs.

* * *

The Mexican Peso is rallying this morning following a headline reporting White House trade adviser Peter Navarro comments on CNN that tariffs on Mexico do not have to take effect.

This is somewhat ridiculous as Navarro’s comments are missing the qualifier that this would be the case only if Mexico folds to Trump’s demands.

In fact, Navarro was on Bloomberg TV just minutes before explaining what is required:

Navarro said the administration has a three-part ‘’solution” calling for Mexico to keep asylum seekers in that country, though he didn’t offer specific benchmarks for the country to meet.

“The most important thing is for the Mexican government to take the asylum seekers,” Navarro said in an interview Wednesday on Bloomberg TV in Washington. The Mexican government can also boost security along its southern border with Guatemala, as well as crack down with more checkpoints and other measures on the buses and trains that are ferrying migrants.

“We are taking a strong measure that will change the Mexican calculus” for dealing with illegal immigration, which will be “good for the markets,” said Navarro.

“I’m very bullish right now because what President Trump has done is to change the game.”

The move on Mexico was partly intended to force the hand of Congress to deal with border-security after lawmakers repeatedly failed to act, said Navarro.

So, Navarro’s CNN headline is predicated on all that – will AMLO acquiesce?

While the reaction is modest for now, it appears the market is shifting towards a belief that the tariffs won’t hit.

 

end

Australia

It is not a crime for the Australian National Broadcaster to publish classified documents. It is probably a crime for the guys who stole the documents in the first place, but not the broadcaster who publishes the documents.

(courtesy zerohedge)

Australian Police Raid National Broadcaster Over Leaked Afghan War Crime Stories

Australian federal police officers raided the Sydney headquarters of the Australian Broadcasting Corporation (ABC) over a series of 2017 reports known as The Afghan Files, which exposed crimes committed by special forces in Afghanistan based on hundreds of pages of leaked defense documents marked AUSTEO (Australian Eyes Only).

 

The AFP officers arriving at the ABC on Wednesday. CREDIT:KATE GERAGHTY (via Sydney Morning Herald)

The incident marks Australia’s second such move against journalists in just two days, after police raided the home of a News Corp editor over an April, 2018 Exposé on government spying.

According to the police, the raid was “in relation to allegations of publishing classified material, contrary to provisions of the Crimes Act 1914,” while the warrant names the authors of the report, Dan Oakes and Sam Clark, along with ABC news director Gaven Morris.

“It is highly unusual for the national broadcaster to be raided in this way,” said ABC Managing Director David Anderson in a statement, adding: “This is a serious development and raises legitimate concerns over freedom of the press and proper public scrutiny of national security and defense matters.”

During the raid, ABC staff members were rounded up and asked to assist in examining their email server to look for “a series of key words.” Others searched a hard drive, according to ABC executive director John Lyons – who live-tweeted the raid.

After four hours, authorities had collected more than 9,200 files and were deciding which ones were allowed to be seized under the warrant, according to RT.

John Lyons

@TheLyonsDen

An AFP officer gets out the special AFP sticky tape – “evidence sealing tape” it says on it – and begins sealing bags enclosing USBs.

179 people are talking about this

John Lyons

@TheLyonsDen

Page one of warrant…

578 people are talking about this

John Lyons

@TheLyonsDen

Page 2 of warrant…

686 people are talking about this

Marcus Strom, president of the Media Entertainment and Arts Alliance trade union, said over Twitter that the two raids in recent days were “just outrageous.”

“Police raiding journalists is becoming normalized. It has to stop,” he added. .

The ABC raid was in relation to a series of broadcasts in 2017 about alleged misconduct by Australian troops in Afghanistan, the broadcaster said.

The raid on the News Corp editor related to a 2018 newspaper report that said Australian intelligence agencies wanted to carry out surveillance by accessing people’s emails, bank accounts and text messages, domestic media reported.

News Corp called the raid on its employee “outrageous and heavy handed”, and “a dangerous act of intimidation”. –New York Times

In a statement, New Corp said that it had “the most serious concerns about the willingness of governments to undermine the Australian public’s right to know about important decisions governments are making.

ustralian Police Raid National Broadcaster Over Leaked Afghan War Crime Stories

Australian federal police officers raided the Sydney headquarters of the Australian Broadcasting Corporation (ABC) over a series of 2017 reports known as The Afghan Files, which exposed crimes committed by special forces in Afghanistan based on hundreds of pages of leaked defense documents marked AUSTEO (Australian Eyes Only).

 

The AFP officers arriving at the ABC on Wednesday. CREDIT:KATE GERAGHTY (via Sydney Morning Herald)

The incident marks Australia’s second such move against journalists in just two days, after police raided the home of a News Corp editor over an April, 2018 Exposé on government spying.

According to the police, the raid was “in relation to allegations of publishing classified material, contrary to provisions of the Crimes Act 1914,” while the warrant names the authors of the report, Dan Oakes and Sam Clark, along with ABC news director Gaven Morris.

“It is highly unusual for the national broadcaster to be raided in this way,” said ABC Managing Director David Anderson in a statement, adding: “This is a serious development and raises legitimate concerns over freedom of the press and proper public scrutiny of national security and defense matters.”

During the raid, ABC staff members were rounded up and asked to assist in examining their email server to look for “a series of key words.” Others searched a hard drive, according to ABC executive director John Lyons – who live-tweeted the raid.

After four hours, authorities had collected more than 9,200 files and were deciding which ones were allowed to be seized under the warrant, according to RT.

John Lyons

@TheLyonsDen

An AFP officer gets out the special AFP sticky tape – “evidence sealing tape” it says on it – and begins sealing bags enclosing USBs.

179 people are talking about this

John Lyons

@TheLyonsDen

Page one of warrant…

578 people are talking about this

John Lyons

@TheLyonsDen

Page 2 of warrant…

686 people are talking about this

Marcus Strom, president of the Media Entertainment and Arts Alliance trade union, said over Twitter that the two raids in recent days were “just outrageous.”

“Police raiding journalists is becoming normalized. It has to stop,” he added. .

The ABC raid was in relation to a series of broadcasts in 2017 about alleged misconduct by Australian troops in Afghanistan, the broadcaster said.

The raid on the News Corp editor related to a 2018 newspaper report that said Australian intelligence agencies wanted to carry out surveillance by accessing people’s emails, bank accounts and text messages, domestic media reported.

News Corp called the raid on its employee “outrageous and heavy handed”, and “a dangerous act of intimidation”. –New York Times

In a statement, New Corp said that it had “the most serious concerns about the willingness of governments to undermine the Australian public’s right to know about important decisions governments are making.

7  OIL ISSUES

 

8. EMERGING MARKETS

INDIA

 

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

Euro/USA 1.1264 UP .0010 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 EXCEPT ITALY

 

 

USA/JAPAN YEN 108.31 UP 0.047 (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 1.2711   UP   0.0008  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3379 DOWN .0013 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 10 basis points, trading now ABOVE the important 1.08 level RISING to 1.1261 Last night Shanghai COMPOSITE CLOSED DOWN 0.86 POINTS OR 0.03% 

//Hang Sang CLOSED UP 133.92 POINTS OR 0.50% 

 

 

 

 

/AUSTRALIA CLOSED UP 0.42%// EUROPEAN BOURSES ALL GREEN EXCEPT ITALY

 

 

 

 

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN EXCEPT ITALY

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 133.92 POINTS OR 0.50%

 

 

 

 

 

 

/SHANGHAI CLOSED DOWN 0.86 POINTS OR 0.03% 

 

 

 

 

 

 

 

 

 

Australia BOURSE CLOSED UP 0.42% 

 

 

Nikkei (Japan) CLOSED UP 367.56  POINTS OR 1.80%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1337.50

silver:$14.87

Early WEDNESDAY morning USA 10 year bond yield: 2.12% !!! 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 2.62 UP 2  IN BASIS POINTS from TUESDAY night.

USA dollar index early MONDAY morning: 97.08 UP 1 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing WEDNESDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 0.72%  DOWN 4 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.10%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.67% DOWN 2   IN basis point yield from YESTERDAY

ITALIAN 10 YR BOND YIELD: 2.52 DOWN 12  POINTS in basis point yield from YESTERDAY/

 

 

the Italian 10 yr bond yield is trading 185 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS –.21%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.73% 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 1.1238  DOWN   .0008 or 8 basis points

USA/Japan: 108.23 UP .190 OR YEN DOWN 19  basis points/

Great Britain/USA 1.2677 UP .0013 POUND UP 13  BASIS POINTS)

Canadian dollar UP 24 basis points to 1.3420

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9079    0N SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9254  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.7826 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield UP 2 IN basis points from TUESDAY at 2.13 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.59 UP 3 in basis points on the day

Your closing USA dollar index, 97.30 UP 15  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 29.49  0.41%

German Dax :  CLOSED UP 176.36 POINTS OR 1.51%

Paris Cac CLOSED UP 26.80 POINTS 0.51%

Spain IBEX CLOSED UP 94.80 POINTS or 1.05%

Italian MIB: CLOSED UP 355.18 POINTS OR 1.79%

 

 

 

 

 

WTI Oil price; 53.38 12:00  PM  EST

Brent Oil: 61.70 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    65.24  THE CROSS LOWER BY 0.05 ROUBLES/DOLLAR (ROUBLE HIGHER BY 5 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.21 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 :  53.57//

 

 

BRENT :  61.95

USA 10 YR BOND YIELD: … 2.12…   VERY DEADLY// AND INDICATIVE OF A HUGE RECESSION COMING UPON US//AND BOND MARKET DID NOT BUY THE DOW RISE!

 

 

 

 

 

 

 

 

 

USA 30 YR BOND YIELD: 2.60..VERY DEADLY/ AND INDICATIVE OF A HUGE RECESSION COMING UPON US://BOND MARKET DID NOT BUY THE DOW/NASDAQ RISE

 

 

 

 

 

EURO/USA 1.1253 ( UP 8   BASIS POINTS)

USA/JAPANESE YEN:108,14 UP .105 (YEN DOWN 11 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.11 DOWN 3 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.27000 UP 37  POINTS

 

the Turkish lira close: 5.7786

 

 

the Russian rouble 65.09   UP 0.19 Roubles against the uSA dollar.( UP 19 BASIS POINTS)

Canadian dollar:  1.3395 UP 46 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9097  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.9210 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.21%

 

The Dow closed  UP 512.40 POINTS OR 2.06%

 

NASDAQ closed up 194.10 POINTS OR 2.65%

 


VOLATILITY INDEX:  16.97 CLOSED UP 1.89

LIBOR 3 MONTH DURATION: 2.479%//

 

 

 

FROM 2.502

 

 

 

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

TRADING IN GRAPH FORM FOR THE DAY//

Dollar D

 

end

 

i) Market trading/ Early morning

Dollar, Stocks, Bond Yields Tumble After Dismal Jobs Print

The market’s kneejerk reaction to the collapse in employment growth was weakness in stocks and the dollar and a bid for bonds…

Bad news is not good news today for stocks…

Treasury yields are sliding…10Y -5bps…

2Y Yields plunged below 1.80% – the lowest since Dec 2017…

And the dollar is dumping further (back below the 1200 level for Bloomberg’s index)…

So yesterday markets cheered Powell’s hints at rate-cuts if the economy weakened, and today we get confirmation that the economy is weakening and the market is upset…

The odds of a rate-cut at the June FOMC is now 33%!!

END

ii)Market data/

Wow! this was a surprise.  The ADP report is always bullish and rarely do we see a miss..except today.  They report only a tiny gain of 27,000 jobs on expectations of 185,000

(zerohedge)

 

ADP Employment Growth Crashes To 9 Year Lows

Following April’s strong beat on ADP employment (talked down with zeal by Mark Zandi), May was expected to show slowing growth in employment but instead it collapsed.

ADP reports that America added just 27k jobs in May (185k exp). This is the weakest growth since March 2010.

“Following an overly strong April, May marked the smallest gain since the expansion began,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

“Large companies continue to remain strong as they are better equipped to compete for labor in a tight labor market.”

Small business employment collapsed by 52k (large business rose) with very small (1-19 people) plunging…

Goods producing jobs tumbled as Services rose…

Construction jobs plummeted…

Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth is moderating. Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting. 

Great news for The Fed.

end

This is not good!!  Services is by far the bigger part of USA GDP.  Now we see that growth is the weakest since over 3 years.

(courtesy zerohedge)

US Services Growth Weakest Since Feb 2016, Flashes “Worrying Signs For Economy”

Following the collapse in both PMI and ISM surveys for US Manufacturing, Services surveys for May were expected to slide (tracking the rest of the world’s give-up of the Services sector outperformance overnight) but as is so typical, the surveys are entirely opposite of one another!!

  • US Services PMI survey dropped to 50.9 – the weakest since February 2016
  • US Services ISM survey jumped to 56.9 – highest since February 2019

Spot The Odd One Out!!

Even more ridiculous is that PMI reports that business expectations are at their lowest level since June 2016, but ISM’s Service employment index rose to 58.1 vs 53.7 – the largest monthly increase in employment index in two years.

ISM respondents appear in a world of their own seeing a pickup in new orders, employment, and business activity in May (that no one else anywhere saw)…

Commenting on the PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

The final PMI data for May add to worrying signs about the health of the US economy. With the exception of February 2016, business reported the weakest expansion for five and a half years as a tradeled slowdown continued to widen from manufacturing to services.

Inflows of new business showed the second-smallest rise seen this side of the global financial crisis as the steepest fall in demand for manufactured goods since 2009 was accompanied by a further marked slowdown in orders for services.

Employment growth has come off the boil in line with weaker than expected sales and gloomier prospects for the year ahead, albeit still showing some resilience. The survey data are running at a level broadly consistent with around 150,000 jobs being added in May.

The slowdown has also seen inflationary pressures fade rapidly. Despite upward pressure on prices from tariffs, the rate of increase of average prices charged for goods and services barely rose in May, in marked contrast to the strong rises seen earlier in the year, as increasing numbers of companies competed on price amid weak demand.

“As with manufacturing, the biggest change in recent months has been a sharp deterioration in growth of orders and output at larger companies, linked in part to worsening export trends, trade war worries and rising geopolitical uncertainty.”

Finally, Williamson notes that “The survey data indicate a deterioration of annualised GDP growth to just 1.2% in May, down from 1.9% in April, putting the second quarter on course for a 1.5% rise.”

Will this bad news be good news for markets?

iii)USA ECONOMIC/GENERAL STORIES

What a riot..CNN ratings plunge again

(courtesy zerohedge)

CNN, Maddow Ratings In Absolute Freefall After Russia Narrative Collapses

Ratings for the anti-Trump media have taken an absolute nosedive ever since the Mueller report dispelled their multi-year narrative that President Trump is a Kremlin agent.

According to Breitbart‘s John Nolte, CNN’s primetime ratings suffered a 16% collapse in May – luring just 761,000 members of the resistance and captive airport audiences alike. Overall, the network’s total day viewers dropped to just 559,000.

As Nolte points out, “Fox News earned three times as many primetime viewers (2.34 million) and more than twice as many total day viewers (1.34 million). What’s more, when compared to this same month last year, Fox lost none of its primetime viewers and only four percent of its total day viewers.”

Do you have any idea just how low 761,000 primetime viewers is…?

How does a nationally known brand like CNN, a brand that is decades old, only manage to attract 761,000 viewers throughout a gonzo news month in a country of over 300 million?

But his is just how far over the cliff CNN has gone… CNN has lost almost all of its viewers, all of its moral authority, and every bit of trust it once had. Over the past six years, as soon as Jeff Zucker took over, CNN got every major national  story exactly wrong, including…

  • Hispanic George Zimmerman: The White Racist Killer
  • Hands Up, Don’t Shoot
  • Trump Can’t Win
  • Brett Kavanaugh: Serial Rapist
  • The KKKids from KKKovington High School
  • Trump Colluded with Russia

And in every one of those cases, CNN got it deliberately wrong because CNN is nothing less than a hysterical propaganda outlet, a fire hose of hateviolence, and lies… –Breitbart

In a separate Tuesday article, Nolte notes that MSNBC’s top conspiracy theorist Rachel Maddow has lost 500,000 viewers who realized life is too short for her bullshit.

During the first quarter of 2019, prior to the release of the Mueller Report (which debunked the media’s Russia Collusion Hoax and proved Trump did not obstruct justice), Maddow averaged 3.1 million nightly viewers. Last month, after the release of the Mueller Report (which debunked the media’s Russia Collusion Hoax and proved Trump did not obstruct justice), she averaged only 2.6 million viewers. –Breitbart

In other words, networks which bet the farm on the Mueller report finding collusion have lost all credibility and are now suffering financially. Those such as Fox News‘s Sean Hannity – who has consistently been right about the Russia hoax, are experiencing a surge in viewership.

And as Nolte concludes, “Maddow is damaged goods, damaged beyond repair, a fool and a liar exposed beyond redemption.

END

USA/China

Interesting:  since the trade war commencement, Chinese tourism to the USA has plunged.

(courtesy zerohedge)

Chinese Tourism To US Plunges Amid Deepening Trade War

Travel from China to the U.S. fell 5.7% in 2018 to 2.9 million visitors, according to the National Travel and Tourism Office (NTTO) data first reported by The Associated Press (A.P.). It was the first time in 15 years that Chinese travel to the U.S. declined on a YoY basis.

A deepening trade war between the U.S. and China is one of the main reasons behind the travel slowdown. President Trump began the trade war by first imposing tariffs on Chinese solar panels and washing machines in January 2018, and the trade war has since intensified.

Earlier this month, Trump increased the tariff on $200 billion worth of Chinese imports to 25% from10%, while China retaliated with 25% tariffs on $60 billion of U.S. imports. Trump’s latest move has targeted Chinese tech companies, by outright banning their sales of telecommunication products to U.S. companies. In response, Beijing has since warned it might impose an export ban on rare-earth metals, which could create supply-chain issues for American producers of everything from microchips, to batteries, to night-vision goggles.

Last summer, China’s embassy in Washington issued a travel warning to Chinese nationals traveling to the U.S. The embassy warned Chinese tourists to be conscious of the threats of public shootings and robberies, expensive medical bills, searches and seizures by customs agents, telecommunications fraud and natural disasters.

“Public security in the United States is not good. Cases of shootings, robberies, and theft are frequent,” the embassy said in the alert published in July 2018.

Last Wednseday, we noted, amid the deepening trade war, one Chinese company told all of its employees to boycott American products and halt international travels to the U.S.

Jinggang Motor Vehicle Inspection Station notified all employees on May 16 that the use of iPhones, driving in American automobiles, eating at American fast food restaurants, using American household products, and traveling to the U.S. was forbidden by a new company policy; any employee who violated the new rules would be fired.

The company’s memo was emailed to employees several days after state-run newspaper Global Times published an editorial piece that called on the Chinese public to “fight a people’s war” against the U.S.

As a result of a prolonged trade war with the U.S., Jinggang Motor Vehicle said: “To help our country win this war, company authorities have decided that all employees must immediately stop all travels to the U.S.”

The decline in tourism traffic to the U.S. will be felt by destinations that have come to rely on Chinese tourist in the last ten years, which includes New York City, Washington, D.C., Las Vegas, San Francisco, Niagara Falls, Universal Studios Hollywood, Hawaii, The Grand Canyon, Yellowstone, and Yosemite National Park.

Wang Haixia, who is employed at an international trade company in Beijing, recently traveled to the U.S. for her sister’s graduation. She and her family spent ten days in Illinois and New York. Haixia told the A.P. that her stay was cut short because she didn’t want to contribute to the American economy during the trade war.

The trade war will get worse before it gets better. China is ramping up its nationalism to use its citizens as a countermeasure tool against the U.S, by telling its citizens directly and indirectly not to travel to the US. It’s possible that Chinese tourism to the U.S. on a YoY basis will plunge for the second consecutive year.

END

Hong Kong’s major newspaper, the South China Morning Post comments and warns USA farmers that they will lose the Chinese market for good if Trump continues with his tariffs.  They state that the tariff impact in China on an increase of Chinese tariffs on USA goods will not be a big factor

(courtesy South China Morning Post)

Beijing warns US farmers may lose China market for good, but plays down tariffs impact at home

  • Han Jun, vice-minister of agriculture and rural affairs, says Chinese farmers can export products to non-US markets to weather impact of trade war
  • Country will also be able to source enough soybeans to meet domestic demand

-END

WELL THAT ABOUT DOES IT FOR TONIGHT

I WILL SEE YOU THURSDAY NIGHT.

HARVEY

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