JUNE 27/GOLD AND SILVER HOLD THEIR GROUND AFTER ANOTHER ATTACK BY OUR BANKER FRIENDS: GOLD DOWN $6.10 TO $1408.90//SILVER DOWN 7 CENTS TO $15.25//FOR THE 5TH CONSECUTIVE DAY A HUGE DISCREPANCY BETWEEN THE GOLD PRELIMINARY OI AND THE FINAL NUMBERS; TODAY OVER 6,000 CONTRACT DIFFERENCE!!//CHINA DEMANDS A LOT FROM THE USA TO HOLD TALKS ON FRIDAY AND SATURDAY//MORE PROBLEMS FOR BOEING//MORE SWAMP STORIES FOR YOU TONIGHT//

 

 

GOLD: $1408.90  DOWN    $6.10 (COMEX TO COMEX CLOSING)

Silver:  $15,25     DOWN        7 CENTS  (COMEX TO COMEX CLOSING)//

 

Closing access prices:

Gold : $1409.20

 

silver:  $15.27

 

 

YOUR DATA…

 

FOR THE 5TH CONSECUTIVE DAY, A HUGE DISCREPANCY BETWEEN THE PRELIMINARY OI NUMBERS IN GOLD VS THE FINAL NUMBERS. TODAY OVER 6,000 CONTRACTS..AND THE CFTC STATES THAT THIS IS NOT MANIPULATIVE??

 

COMEX DATA

 

 

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

today RECEIVING 0/119

EXCHANGE: COMEX
CONTRACT: JUNE 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,411.600000000 USD
INTENT DATE: 06/26/2019 DELIVERY DATE: 06/28/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
323 H HSBC 109
657 C MORGAN STANLEY 15
905 C ADM 10 7
991 H CME 97
____________________________________________________________________________________________

TOTAL: 119 119
MONTH TO DATE: 2,522

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 119 NOTICE(S) FOR 11900 OZ (0.3701 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  2522 NOTICES FOR 252,200 OZ  (7.8444 TONNES)

 

 

 

SILVER

 

FOR JUNE

 

 

0 NOTICE(S) FILED TODAY FOR NIL  OZ/

 

total number of notices filed so far this month: 532 for   2,660,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 12,014 DOWN 1054 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 10,892 DOWN 2270 (bankers did a good job of fleecing bitcoin owners)

 

 

 

 

end

 

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL A CONSIDERABLE  SIZED 5869 CONTRACTS FROM 229,007 DOWN TO 223,138 DESPITE THE 17 CENT GAIN IN SILVER PRICING AT THE COMEX.

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 HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

0 FOR JUNE, 2371 FOR JULY. 0 FOR AUGUST, 1163 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  3523 CONTRACTS. WITH THE TRANSFER OF 3534 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 3534 EFP CONTRACTS TRANSLATES INTO 17.67 MILLION OZ  ACCOMPANYING:

1.THE 17 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.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

WE HAD CONSIDERABLE SHORT COVERING AT THE SILVER COMEX LAST NIGHT..AND MAJOR SPREADING LIQUIDATION.

 

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

51,889 CONTRACTS (FOR 19 TRADING DAYS TOTAL 51,889 CONTRACTS) OR 259.445 MILLION OZ: (AVERAGE PER DAY: 2731 CONTRACTS OR 13.65 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JUNE:  259.445 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 37.05% 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:          1140.22   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 CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 5869, DESPITE THE 17 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 3534 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 LOST A CONSIDERABLE SIZED: 5869 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 3534 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 5869  OI COMEX CONTRACTS. AND ALL OF THIS LACK OF DEMAND HAPPENED WITH A  17 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $15.32 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. 1.115 BILLION OZ TO BE EXACT or 159% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 0 NOTICE(S) FOR 0 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 2.660 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:  CONSIDERABLE LIQUIDATION OF OUR SPREADERS

 

 

 

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 DWLL BY A FAIR SIZED 3145 CONTRACTS, TO 574,460 WITH THE  $3.00 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING LIQUIDATION HAS STOPPED, THESE SPREADERS HAVE ALREADY MORPHED INTO SILVER AND THEY ARE INTO THE LIQUIDATION PHASE OF THEIR OPERATION.  

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 8481 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 8481 CONTRACTS, DEC>  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 574460.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A HUGE SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5336 CONTRACTS: 3145 CONTRACTS DECREASED AT THE COMEX  AND 8481 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 5336 CONTRACTS OR 533600 OZ OR 16.59 TONNES.  YESTERDAY WE HAD A LOSS OF $3.00 IN GOLD TRADING.AND WITH THAT SMALL LOSS IN  PRICE, WE  HAD A STRONG GAIN IN GOLD TONNAGE OF 16.59  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE 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 JUNE : 197,629 CONTRACTS OR 19,762,900 oz OR 614.70 TONNES (19 TRADING DAYS AND THUS AVERAGING: 10,401 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAYS IN  TONNES: 614.70 TONNES

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

THUS EFP TRANSFERS REPRESENTS 614.70/3550 x 100% TONNES =17.31% OF GLOBAL ANNUAL PRODUCTION

PLEASE NOTE THE HUGE INCREASE IN THE USE OF THE EXCHANGE FOR PHYSICALS THIS MONTH COMPARED TO ALL OF DETHE OTHER MONTHS.

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     2,869.59 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 CALLED SERIAL 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 GOOD SIZED DECREASE IN OI AT THE COMEX OF 3145 WITH THE PRICING LOSS THAT GOLD UNDERTOOK ON YESTERDAY($3.00)) //.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8481 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 8481 EFP CONTRACTS ISSUED, WE  HAD AN GOOD SIZED GAIN OF 5336 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

8481 CONTRACTS MOVE TO LONDON AND 3145 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 16.59 TONNES). ..AND THIS INCREASE OF  DEMAND OCCURRED DESPITE THE LOSS IN PRICE OF $3.00 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE  HAD ZERO PRESENCE OF SPREADING ACCUMULATION IN GOLD  ///TODAY/

 

 

 

we had:  119 notice(s) filed upon for 11900 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD DOWN $6.10 TODAY//

 

ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD:  A PAPER WITHDRAWAL OF 1.76 TONNES

 

INVENTORY RESTS AT 797.85 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 DOWN 7 CENTS TODAY:

 

A HUGE CHANGE WITH RESPECT TO SILVER INVENTORY  AT THE SILVER SLV:  A “PAPER” DEPOSIT OF: 2.575 MILLION OZ INT THE SLV

 

 

 

 

 

 

/INVENTORY RESTS AT 322.394 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 FELL BY A CONSIDERABLE SIZED 5869 CONTRACTS from 229,007 DOWN TO 223,138 AND FURTHER FROM THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..THE SPREADERS HAVE COMMENCED THEIR ACCUMULATION OF OPEN INTEREST CONTRACTS IN SILVER AND STOPPED THE LIQUIDATION OF THE SPREADERS IN GOLD

 

 

 

 

EFP ISSUANCE: 

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

 

FOR JUNE 0 CONTRACTS AND JULY: 2371 CONTRACTS FOR AUGUST: 0, FOR SEPT. 1163  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 3534 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI LOSS AT THE COMEX OF 5869  CONTRACTS TO THE 3534 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  FAIR LOSS OF 2335 OPEN INTEREST CONTRACTS BUT WE ALSO WITNESSED HUGE LIQUIDATION OF COMEX SPREADING CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 11.68 MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 7.475 MILLION OZ FOR AUGUST..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER.  21.925 MILLION OZ STANDING IN DECEMBER , 5.845 MILLION OZ STANDING IN JANUARY. 2.955 MILLION OZ STANDING IN FEBRUARY,  27.120 MILLION OZ FOR MARCH., 3.875 MILLION OZ FOR APRIL  18.765 MILLION OZ FOR MAY AND NOW 2.660 MILLION OZ FOR JUNE.

 

 

RESULT: A CONSIDERABLE SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 17 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 3534 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)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 20.51 POINTS OR 0.69%  //Hang Sang CLOSED UP 399.44 POINTS OR 1.42%   /The Nikkei closed UP 251.58 POINTS OR 1.19%//Australia’s all ordinaires CLOSED UP .40%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8785 /Oil UP TO 58.77 dollars per barrel for WTI and 65.91 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8785 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8782 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER 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/USA

Pure nonsense! Why would the uSA agree to this deal with China offering nothing..this is going nowhere..there will be no deal

( zerohedge)

4/EUROPEAN AFFAIRS

i)UK

 

Mish Shedlock gives a terrific account on what is going on with Brexit.  The key points he is making and I agree with Mish is that England will be far better off and the EU worse off.  Germany as a big exporter will be damaged

a great read…

( Mish Shedlock/Mishtalk)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

 

i)IRAN/USA

6. GLOBAL ISSUES

a)Not only is Japan facing a demographic doom but so is Germany, Italy, and South Korea as the total workforce in each of these countries will collapse by the year 2050

( zerohedge)

b)The global car industry is in big trouble as Ford is slashing 12,000 jobs across Europe

(courtesy zerohedge)

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

 

i)VENEZUELA/

 

 

 

9. PHYSICAL MARKETS

i)The bankers did it again to our crypto players..as bitcoin crashed last night, losing 1500 in minutes.  This is why you do not invest in bitcoin.

( zerohedge)

ii)this will be good for the USA as Trump is ready to throw away the Obama era environmental restrictions that have stopped this huge project.

The owner of the mine is Northern Dynasty

( Bloomberg/GATA)

iii)The  ECB gives the green light to Italy to claim that its gold held by the Bank of Italy belongs to the country and not the bank.

That should have been obvious

( Reuters/GATA)

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

 

 

 

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

II)MARKET TRADING/USA

 

 

ii)Market data/USA

a)First quarter revised slightly lower as personal spending tumbles.  Problem will be in core PCE which is heating up.  This is the final reading for Q1 and it comes it at 3.1, falling from 3.2%

(courtesy zerohedge)

b)A good indicator of huge problems inside the uSA economy:  pending home sales falter badly despite tubmling mortgage rates

(courtesy zerohedge)

iii)USA ECONOMIC/GENERAL STORIES

a)Last night, a new software glitch is found on the Boeing 737 Max and it results in “uncontrollable nosedives”

Does not look good for Boeing…

( zerohedge)

b)Shares of Boeing tumble on the news.

( zerohedge)

c)This has been the wettest year in many moons.  It has decimated the corn crops! along with ancillary businesses(courtesy zerohedge)

SWAMP STORIES

a)Details on the first Democratic debate.

(courtesy zerohedge)

b)After closing the door on impeaching Trump, Pelosi also folds on the Senate emergency border bill and they will pass the $4.6 billion deal.

(courtesy zerohedge
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 DWLL BY A GOOD SIZED 3145 CONTRACTS TO A LEVEL OF 574,460 DESPITE THE SMALL LOSS OF $3.00 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 8481 EFP CONTRACTS WERE ISSUED:

0 FOR JUNE ’19: 0 CONTRACTS , AUG; 8481 CONTRACTS: DEC: 0   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  8481 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: 5336 TOTAL CONTRACTS IN THAT 8481 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A GOOD SIZED 3145 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. 

 

NET GAIN ON THE TWO EXCHANGES ::  5,336 CONTRACTS OR 533,600 OZ OR 16.59 TONNES.

 

We are now in the  active contract month of JUNE and here the open interest stands at 119 CONTRACTS as we LOST 27 contracts.  We had  36 notices filed yesterday so we  gained another of 9 contracts or 900 oz of gold that will stand for delivery as there appears to be some gold at the comex  as they will now try their luck on finding the fast vanishing supplies of physical gold over here.  The next contract month is the non active month of July and here the OI FELL by 394 contracts DOWN to 576 contracts.  The next big active month for deliverable gold is August and here the OI FELL by a 3490 contracts DOWN to 415,593.   WE HAVE WITNESSED A HUGE CRIME SCENE WITH RESPECT TO BOTH GOLD AND SILVER TODAY AT THE COMEX.

 

 

TODAY’S NOTICES FILED:

WE HAD 119 NOTICES FILED TODAY AT THE COMEX FOR  11900 OZ. (0.3701 TONNES)

 

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A CONSIDERABLE SIZED 5869 CONTRACTS FROM 229,007 DOWN TO 223,138 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX LOSS OCCURRED DESPITE A  17 CENT GAIN IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE.  HERE WE HAVE 0 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 0 CONTRACTS.  WE HADNOTICES FILED YESTERDAY SO WE GAINED 0 CONTRACTS OR AN ADDITIONAL 515,000 OZ OF SILVER WILL ATTEMPT TO STAND AT THE COMEX…. AND THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARD AS WELL AS NEGATING A FIAT BONUS. LET US WAIT AND SEE IF SUCCESSFUL IN OBTAINING PHYSICAL METAL ON THIS SIDE OF THE POND.

 

THE NEXT MONTH AFTER JUNE IS THE ACTIVE MONTH OF JULY.  HERE THE OI FELL BY 18,326 CONTRACTS DOWN TO 14,897. AS WE START TO GET READY FOR THE ACTIVE AND STRONG JULY SILVER DELIVERY MONTH.  WE GAINED 62 CONTRACTS OF OI FOR AUGUST TO STAND AT 1033. THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI ROSE BY 11,732 CONTRACTS UP TO 152,130 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: 311,725  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  441,231  contracts

 

 

 

 

 

INITIAL standings for  JUNE/GOLD

June 27/2019

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

nil

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
119 notice(s)
 11900 OZ
(0.3701 TONNES)
No of oz to be served (notices)
0 contracts
(NIL oz)
0.0 TONNES
Total monthly oz gold served (contracts) so far this month
2522 notices
252200 OZ
7.8744 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entry:

We had 0 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into Everybody else: nil  oz

 

 

 

total gold deposits: nil  oz

 

very little gold arrives from outside/ NO amount  arrived   today

we had 0 gold withdrawal from the customer account:

 

 

total gold withdrawals; nil   oz

 

 

i) we had 0 adjustment today

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 119 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JUNE /2019. contract month, we take the total number of notices filed so far for the month (2522) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE. (119 contract) minus the number of notices served upon today (119 x 100 oz per contract) equals 252,200 OZ OR 7.8444 TONNES) the number of ounces standing in this active month of JUNE

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

No of notices served (2522 x 100 oz)  + (119)OI for the front month minus the number of notices served upon today (119 x 100 oz )which equals 252,300 oz standing OR 7.8444 TONNES in this  active delivery month of JUNE.

We GAINED 9  contracts or an additional 900 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus. Somebody was in need of physical gold badly on this side of the pond.

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 10.043 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 7.8444 TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

 

total registered or dealer gold:  322,910.634 oz or  10.043 tonnes 
total registered and eligible (customer) gold;   7,691,811.784 oz 239.24 tonnes

 

 

 

 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 7.8444 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 27 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 542,228.080 oz
Delaware
HSBC

 

 

Deposits to the Dealer Inventory
NIL oz

 

Deposits to the Customer Inventory
1,198,140.190 oz
CNT
No of oz served today (contracts)
0
CONTRACT(S)
(NIL OZ)
No of oz to be served (notices)
0 contracts
NIL oz)
Total monthly oz silver served (contracts) 532 contracts

2,660,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: NIL  oz

total dealer withdrawals: nil oz

we had  1 deposits into the customer account

into JPMorgan:  nil  oz

ii)into CNT:  1,198,140.190 oz

 

 

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

JPMorgan now has 153.4 million oz of  total silver inventory or 50.36% of all official comex silver. (153.4 million/304.6 million

 

 

 

 

total customer deposits today:  1,198,140.190  oz

 

we had 2 withdrawals out of the customer account:

 

i) out of Delaware  2,000.000 oz

 

iii) Out of HSBC:  542,228.080 oz

 

 

 

 

 

total 542,228.080  oz

 

we had 0 adjustments :

 

 

 

total dealer silver:  86.515 million

total dealer + customer silver:  306.165 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 532 x 5,000 oz = 2,660,000 oz to which we add the difference between the open interest for the front month of JUNE. (0) 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: 532(notices served so far)x 5000 oz + OI for front month of JUNE( 0) number of notices served upon today (0)x 5000 oz equals 2,630,000 oz of silver standing for the JN contract month.

WE GAINED 0 CONTRACTS OR AN ADDITIONAL NIL OZ WILL STAND AT THE COMEX AS THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARDS AND AS WELL THEY ALSO NEGATED A FIAT BONUS.  IT SEEMS THAT SOMEBODY WAS BADLY IN NEED OF PHYSICAL SILVER ON THIS SIDE OF THE POND.

 

 

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

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

 

 

 

 

 

 

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TODAY’S ESTIMATED SILVER VOLUME:  92,755 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 176,893 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 176,893 CONTRACTS EQUATES to .884 billion  OZ 126%% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -0.70% June 27/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.30% to NAV (JUNE 27/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -0.70%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.76 TRADING 13.22/DISCOUNT 3.95

END

And now the Gold inventory at the GLD/

JUNE 27/WITH GOLD DOWN $6.10: ANOTHER HUGE WITHDRAWAL OF 1.76 PAPER TONNES FROM THE GLD INVENTORY/INVENTORY RESTS AT 797.61 TONNES

JUNE 26/WITH GOLD DOWN $3.00: WE HAD A HUGE WITHDRAWAL OF 2.37 TONNES FROM THE GLD/INVENTORY RESTS AT 799.61 TONNES

JUNE 25/WITH GOLD UP $1.30 (AND WAY UP BEFORE THE BANKERS WHACKED) WE WITNESSED ANOTHER 1.95 TONNES OF PAPER GOLD ADDED TO THE GLD INVENTORY//INVENTORY RESTS AT 801.98 TONNES

JUNE 24/WITH GOLD UP $18.00 A MONSTROUS PAPER DEPOSIT OF 34.93 TONNES/INVENTORY RESTS AT 799.03 TONNES

JUNE 21/WITH GOLD UP $  2.90, NO CHANGE IN GOLD INVENTORY: INVENTORY RESTS AT: 764.10 TONNES

June 20/WITH GOLD UP $47.95, NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.10 TONNES

JUNE 19 WITH GOLD DOWN $1.65: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.10 TONES

JUNE 18/JUNE 18/WITH GOLD UP $7.60: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.10 TONNES

 

JUNE 17/WITH GOLD DOWN $1.65 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 764.10 TONNES

JUNE 14/ WITH GOLD UP $1.05 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.40 TONNES OF PAPER GOLD INTO THE GLD///INVENTORY RESTS AT 764.10 TONNES

june 13/WITH GOLD UP $6.60 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.52 TONNES INTO THE GLD INVENTORY/INVENTORY RESTS AT 759.70 TONNES

JUNE 12/WITH GOLD UP $7.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 756.18 TONNES

JUNE 11/WITH GOLD UP $1.65 CENTS TODAY: A TINY CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .24 TONNES AND THIS IS TO PAY FOR FEES/INVENTORY RESTS AT 756.18 TONNES

JUNE 10/WITH GOLD DOWN $16.40 TODAY: A BIG  CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.17 TONNES/INVENTORY RESTS AT 756.42 TONNES

june 7/WITH GOLD UP $3.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 757.59 TONNES

jUNE 6/WITH GOLD UP  $8.40 TODAY/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 757.59 TONNES

JUNE 5 WITH GOLD UP $6.00 TODAY/STRANGE: A 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: WI6H 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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JUNE 27/2019/ Inventory rests tonight at 797.85 tonnes

*IN LAST 617 TRADING DAYS: 136.91 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 517 TRADING DAYS: A NET 28.72 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

end

 

Now the SLV Inventory/

JUNE 27/WITH SILVER DOWN 7 CENTS: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.575 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 322.394 MILLION OZ//

JUNE 26/WITH SILVER UP 17 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ/

JUNE 25/WITH SILVER DOWN 25 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ.

JUNE 24/WITH SILVER UP 11 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ//

JUNE 21/WITH SILVER DOWN 22 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ//

JUNE 20/WITH SILVER UP 53 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ/

JUNE 19/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 319.070 MILLION OZ/

JUNE 18 WITH SILVER UP 18 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 319.070 MILLION OZ

JUNE 17/WITH SILVER UP XXX CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.775 MILLION OZ//

JUNE 14/WITH SILVER DOWN 9  CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.775 MILLION OZ/

JUNE 13/WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.775 MILLION OZ/

JUNE 12/WITH SILVER UP 4 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.413 MILLION OZ INTO THE SLV INVENTORY/INVENTORY RESTS AT 316.775 MILLION OZ/

JUNE 11/WITH SILVER UP 10 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 315.652 MILLION OZ//

JUNE 10/WITH SILVER DOWN 38 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 315.652 MILLION OZ//

june 7/WITH SILVER UP ANOTHER 12 CENTS, NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 315.652 MILLION OZ//

jUNE 6/WITH SILVER UP ANOTHER 9 CENTS TODAY: A FAIR SIZE DEPOSIT OF 630,087 OZ//INVENTORY RESTS AT 315.652 MILLION OZ//

JUNE 5/WITH SILVER UP 4 CENTS TODAY: A HUGE PAPER DEPOSIT OF 2.396 MILLION OZ OF SILVER INTO THE SLV/INVENTORY RESTS AT 314.434 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/

 

 

JUNE 27/2019:

 

Inventory 322.394 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 2.07/ and libor 6 month duration 2.20

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

G0LD LENDING RATE: + .13

 

XXXXXXXX

12 Month MM GOFO
+ 1.88%

LIBOR FOR 12 MONTH DURATION: 2.18

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.30

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold Standard Cometh In This The Multi Polar, Asian Century (Part I) – Jim Willie Interview

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Gold Standard Cometh In This The Multi Polar, Asian Century (Part I) – Jim Willie Interview

Watch Video Here

-The Global Monetary RESET will see the “Third World” dollar sharply devalued and paper wealth and assets including stocks and bonds lose significant value

– The ‘Gold Standard’ jigsaw: the global monetary pieces are falling into place as China quietly moves to re-establish some form of Gold Standard

 

– The legs of the Gold Standard stool are here – gold trade notes, gold panda bonds (Italy) and central banks are buying gold as Basle III makes gold a “risk free asset”

– Trump may have become compromised by the Neo-Conservatives and their crazy and expensive dreams of maintaining Empire and a ‘New American Century’

 

– United States is bankrupt (with $22 trillion US debt and over $100 trillion of unfunded government liabilities) and “living on a maxed out credit card,” therefore U.S. Treasuries are no longer a risk free asset

– Global Financial Crisis II is “going to be much, much bigger” … Prepare now

Thanks for sharing and please click that ‘Like’ button.

Jim’s website is golden-jackass.com and the Gadfly channel is at thegadfly.vhx.tv

Receive our free daily or weekly updates by signing up here

 

 

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

26-Jun-19 1406.75 1403.95, 1109.22 1106.73 & 1238.501236.32
25-Jun-19 1429.55 1431.40, 1120.62 1124.36 & 1255.72 1256.20
24-Jun-19 1405.45 1405.70, 1102.58 1105.30 & 1233.56 1235.05
21-Jun-19 1388.35 1397.15, 1095.96 1101.93 & 1228.55 1233.12
20-Jun-19 1381.65 1379.50, 1086.25 1087.74 & 1222.90 1221.27
19-Jun-19 1342.40 1344.05, 1066.67 1066.64 & 1198.36 1199.43
18-Jun-19 1344.55 1341.35, 1073.22 1070.67 & 1201.89 1198.09
17-Jun-19 1333.20 1341.30, 1059.49 1065.13 & 1188.81 1193.09

News and Commentary

ECB Cautious of Bank of Italy Law Which Declares Gold Reserves Are the States

Gold Settles Lower After 4-session Climb Lifted Prices Near a 6-year High

Gold Drops as Bets Fade for Big Fed Rate Cut Fade; Eyes on Trade Talks

Dollar Gains on Lower Rate Cut Expectations, Stocks Flat

NATO Says It Will Act Unless Russia Destroys Nuclear-ready Missile

Investors Should Buy Gold, Ignore G-20 and Brace for a Fresh Round of Trump Tariffs – Bass

ECB to Italian Government: Your Gold is Ours

Stablecoin Might Liberate the World From the U.S. Dollar

Warning: Federal Reserve Easing Ahead

Why Interest Rates Don’t Need to Rise Much to Cause Recessions Now

 

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end

 

ii) Physical stories courtesy of GATA/Chris Powell

this will be good for the USA as Trump is ready to throw away the Obama era environmental restrictions that have stopped this huge project.

The owner of the mine is Northern Dynasty

(courtesy Bloomberg/GATA)

Alaska gold property with $100 billion lode to get lifeline from Trump EPA

 Section: 

By Jennifer A. Dlouhy
Bloomberg News
Wednesday, June 26, 2019

The Trump administration is throwing a lifeline to the massive Pebble Mine planned near Alaska’s Bristol Bay, as regulators move toward undoing Obama-era environmental restrictions that have thwarted the project.

The Environmental Protection Agency said today it was resuming consideration of the proposed water pollution restrictions that have effectively stalled the project since they were outlined in 2014. Reconsidering the issue — after a year-and-a-half hiatus — is a necessary prelude to the EPA officially lifting the restrictions later.

… 

The EPA’s action is a significant boost for Northern Dynasty Minerals Ltd. and Pebble LP supporters, who have called on the EPA to lift the Clean Water Act restrictions and let the proposed gold, copper, and molybdenum mine move forward. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-06-26/pebble-gold-mine-in-a…

* * *

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

The  ECB gives the green light to Italy to claim that its gold held by the Bank of Italy belongs to the country and not the bank.

That should have been obvious

(courtesy Reuters/GATA)

ECB gives cautious approval to League’s bill on Bank of Italy gold reserves

 Section: 

By Gavin Jones and Giuseppe Fonte
Reuters
Tuesday, June 25, 2019

ROME — The European Central Bank on Tuesday gave a substantial green light to a bill by Italy’s ruling League party which seeks to spell out that gold reserves held by the Bank of Italy belong to the state, and not the bank itself.

The bill, tabled in February by the League’s economics chief, Claudio Borghi, was strongly criticized by the opposition who said its aim was to allow the ruling coalition to potentially sell the gold to fix Italy’s public finance problems.

… 

Borghi denied this, saying he wanted to clarify the legal ownership of the gold, establish a question of principle and bring Italy’s situation in line with those of other EU states.

In an official opinion published on the ECB’s website, the bank said EU treaties do not use the concept of ownership with regard to official gold reserves but deal only with the question of their “exclusive holding and management.”

The opinion, signed by ECB President Mario Draghi, asked the government to consult with the Bank of Italy if it planned to push ahead with the legislation, in order that the central bank’s independence be “fully respected.” …

… For the remainder of the report:

https://www.reuters.com/article/us-italy-cenbank-ecb/ecb-gives-cautious-…

* * *

iii) Other physical stories:

SILVER DOCTORS NEWS

I was interviewed on Tuesday by Silver Doctors

I hope you find this interview enlightening.

 

Hi Harvey,

Thanks for such a great interview on Tuesday.
I have listened to it a few times now, and wow, I learn something new every time I listen.
You’re the man!
Here’s the link to the YouTube video if you need it, it’s already over 17,000 views and tons of comments!
Talk to you soon,
Paul
end

The bankers did it again to our crypto players..as bitcoin crashed last night, losing 1500 in minutes.  This is why you do not invest in bitcoin.

(courtesy zerohedge)

 

Coinbase Offline As Cryptos Collapse, Bitcoin Loses $1500 In Minutes

After the biggest day since December 2017, Bitcoin just crashed over $1500 in minutes, dragging the rest of the crypto space with it…

 

Erasing the day’s gains and then some..

 

And immediately Coinbase became unavailable…

 

As Tom Luongo warned earlier, this run up towards the end of this month into the end of Q2 may be morphing quickly into a FOMO rally that could see a blow-off top in the near future.

Markets that go vertical without really pausing to take a breather will always correct down. Hard.

When that happens given the expansion of Bitcoin’s dominance of the crypto market by market cap percentage in the past few weeks, I would expect to see some strong rotation into both cash and alt coins just clearing major technical hurdles on any correction.

And just so we’re clear as to what’s happening here. The mother of all safe haven trades is emerging. Trade Wars, Near Hot Ones, tariffs, sanctions, popular uprisings and political instability are all on the table.

While we’re all focused on whatever short-term idiocy comes out of Donald Trump’s mouth to secure his control over the Overton Window, we should be asking ourselves why the ECB is going looking at even more negative rates, LIBOR has inverted alongside Eurodollar and the U.S. Treasury market and stocks are at all-time highs.

The markets aren’t irrational. Our perceptions of what is driving this behavior is. Safe haven assets change with the times.

And when you step back from the insanity of the fiscal and political situation in the U.S. and Europe, the fall-out from their instability on emerging markets and the potential for major shifts in the geopolitical game board does it really seem all that odd that a simple electronic proxy for gold with thin supply, high trust and low holding risk would become a darling of the risk averse?

I don’t.

Read more here…

However, perhaps it is as simple as this chart…

Bitcoin is still protection from the idiocy of policymakers…

As an aside, US equity futures extended their losses after the close as Bitcoin got hit…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

 

end

 

Your early THURSDAY 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: 6.8785/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8782   /shanghai bourse CLOSED UP 20.51 POINTS OR 0.69%

HANG SANG CLOSED UP 399.44 POINTS OR 1.42%

 

2. Nikkei closed DOWN 251.58 POINTS OR 1.19%

 

 

 

 

3. Europe stocks OPENED ALL RED EXCEPT ITALY

 

 

 

USA dollar index DOWN TO 96.16/Euro RISES TO 1.1376

3b Japan 10 year bond yield:RISES TO. –.14/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.84/ 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:: 58.77 and Brent: 65.91

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.30%/Italian 10 yr bond yield UP to 2.13% /SPAIN 10 YR BOND YIELD UP TO 0.41%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.43: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.45

3k Gold at $1405.50 silver at: 15.25   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 2/100 in roubles/dollar) 63.03

3m oil into the 58 dollar handle for WTI and 65 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 107.84 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 .9770 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1144 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.30%

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 2.04% early this morning. Thirty year rate at 2.54%

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

6.  TURKISH LIRA:  UP  TO 5.7736..

 

Global Stock Rally Ends With A Bang After WSJ Crushes Hope For Quick US-China Truce

There has been a 180-degree reversal in market sentiment overnight, when at first US futures and global stocks ramped higher for much of the session following a SCMP report late on Thursday (US time) that US and China had agreed on a “truce” to avoid further tariffs, only for the WSJ to pour cold water on the report just before 6am EDT when it noted some of the key items the SCMP “missed” on purposes, namely that China had very specific demands to agree to a ceasefire, including the removal of the Huawei ban, something that Trump would almost certainly not agree to (and yet the Chinese publication made it seem like it was Beijing that was oh so generous, when in reality it was setting up Trump to be the guilty party when in reality it was China that once again held an untenable position going into the Trump-Xi talks).

In addition to the WSJ report, overnight China’s Commerce Ministry urged the US to immediately cancel sanctions on Chinese firms, including Huawei, and warned it would consider placing firms on a unreliable list if they implement discriminatory measures on Chinese entities, and firms that threaten the national security of China adding that the details are to be released soon.

In any case, the WSJ’s report immediately doused any positive market sentiment, with Bloomberg’s Heather Burke noting that “equities are waking up to the reality that this weekend’s meeting may not bring a shiny, happy trade solution”, which has sent S&P futures sharply lower, wiping out all overnight gains…

… and global markets lost much of their sparkle, with Europe turning sharply lower…

… led by the German Dax, which suffered a dramatic drop in minutes after the WSJ report refuted the SCMP.

“We should not expect too much from the Osaka meeting,” Christian Nolting, global chief investment officer at Deutsche Bank Wealth Management told Bloomberg TV. “To be overly optimistic could be on the wrong side for this weekend.”

Not helping US futures (or European stocks which slumped in the red) was the latest Boeing news, according to which the 737 MAX was prone to “uncontrolled nosedives” after new tests revealed a fresh software glitch, which in turn assured that the grounded Boeing planes would stay in parkling lots that much longer, and also sent Boeing stock plunging, which thanks to its biggest impact on the Dow has sent the “industrial” index into the red.

While both the US and Europe were scrambling to make sense of all the latest headlines, Asian stocks – which mostly closed ahead of the WSJ report – benefited from the earlier trade euphoria, and tech and material firms led Asian stocks higher. Almost all markets in the region rose, with Japan, Taiwan and Hong Kong leading gains. The Topix closed 1.2% higher, with SoftBank Group and Daikin Industries among the biggest boosts. Japan Display surged as much as 32% following a report that Apple is considering further financial support for the company. As noted above, Europe’s Stoxx 600 Index, which had gained led by retailers following H&M results, reversed.

Over in China, the Shanghai Composite Index rose 0.7%, driven by large banks and insurers, as investors cheered the probability of a China-U.S. trade deal (if only they had waited a few more hours, the cheering would have ended abruptly). Kweichow Moutai closed at a record high after climbing above the 1,000 yuan level for the first time on an intra-day basis. The outlier was Vietnam, whose stocks dropped 1.7%, bucking the regional trend, after Trump indicated that he might impose tariffs on the nation. The S&P BSE Sensex Index advanced 0.3%, rallying for a third day, with HDFC Bank and Housing Development Finance providing the biggest support to the gauge

In other assets, the dollar initially rose against the yen on hopes of a truce in U.S.-China trade war ahead of the Group of 20 summit, before losing traction amid quarter-end flows and the WSJ rejection. The euro rebounded on German regional inflation data even as a gauge of economic confidence in the region dropped to its lowest in nearly three years. Bunds dropped, Treasuries steadied and equities lost their bullish momentum as the London session progressed. European bonds were mixed after data showed economic confidence in the region declined more than forecast.

In other news overnight, Trump said he looks forward to speaking to India PM Modi about how India have placed very high tariffs on US for years and recently increased them further, while Trump added this is unacceptable and tariffs must be withdrawn. In response, Indian government sources noted that India’s tariffs on the US are well within the WTO bound rates.

And while the world is focused on the US-China meeting, President Trump will also meet with Russia President Putin on Friday at 1400 local time, ahead of Trump’s meeting with Chinese President Xi, which will take place on Saturday at 1130 local time in Osaka, according to a spokesman.

In other geopolitical news, Iran’s Parliament Speaker Larijani stated that the reaction from Tehran will be stronger in the event that the US repeats the mistake of violating Iran’s borders. Iran is still short of the nuclear deals limit on enriched uranium stocks, and are on course to reach the limit at the weekend., as according to diplomats citing IAEA data.

West Texas Intermediate crude declined 1% to $58.81 a barrel, the largest drop in more than a week. Gold dipped 0.2% to $1,405.64 an ounce.

Economic data include initial jobless claims, pending home sales and the third print of first-quarter GDP. Scheduled earnings include Nike, Accenture and Walgreens.

Market Snapshot

  • S&P 500 futures up 0.2% to 2,923.00
  • STOXX Europe 600 down 0.1% to 381.78
  • MXAP up 0.9% to 160.15
  • MXAPJ up 0.9% to 528.69
  • Nikkei up 1.2% to 21,338.17
  • Topix up 1.2% to 1,553.27
  • Hang Seng Index up 1.4% to 28,621.42
  • Shanghai Composite up 0.7% to 2,996.79
  • Sensex up 0.3% to 39,709.40
  • Australia S&P/ASX 200 up 0.4% to 6,666.31
  • Kospi up 0.6% to 2,134.32
  • German 10Y yield rose 1.3 bps to -0.29%
  • Euro up 0.02% to $1.1371
  • Brent Futures down 0.8% to $65.96/bbl
  • Italian 10Y yield fell 1.8 bps to 1.779%
  • Spanish 10Y yield rose 0.9 bps to 0.402%
  • Brent Futures down 0.8% to $65.93/bbl
  • Gold spot down 0.4% to $1,403.77
  • U.S. Dollar Index up 0.03% to 96.24

Top overnight news from Bloomberg

  • The first Democratic president debate in the U.S. exposed ideological fissures within the party over how to remake the economy, fix immigration and confront big companies — and whether the path to defeating Trump veers toward liberal solutions or hews to the middle
  • Trump said India’s recent increase in tariffs on U.S. goods is “unacceptable” and should be withdrawn, ratcheting up tension before a planned meeting with Prime Minister Narendra Modi
  • The European Central Bank will deliver a cut in September as policy makers step up their efforts to revive the euro-zone economy, economists predict
  • Several Huawei Technologies Co. employees have collaborated with Chinese armed forces personnel on research projects, indicating closer ties to the country’s military than previously acknowledged by the smartphone and networking powerhouse
  • Turkey is preparing a bill that would boost the Treasury’s cash flow through the use of central bank lira reserves, just weeks after policy makers refrained from proposing a similar measure for fear it could roil financial markets, Bloomberg HT reported on Thursday. The lira fell.

Asian equity markets traded higher after the region shrugged off the uninspiring lead from Wall St where participants were tentative heading into the G20 and amid mixed US-China trade commentary. ASX 200 (+0.4%) was positive in which outperformance in the energy sector just about kept the index afloat following the recent bullish oil inventory data, while Nikkei 225 (+1.2%) was underpinned by the JPY-risk dynamic and with Japan Display the front runner in Tokyo after reports that Apple will infuse USD 100mln into the Co. and also raise its orders. Elsewhere, Hang Seng (+1.4%) and Shanghai Comp. (+0.7%) inspired the turnaround in the region on several factors including the State Council’s recent announcement of measures to cut financing costs for smaller firms and with Industrial Profits back in the black, while the trade-related headlines were more constructive in which SCMP noted the US and China agreed a tentative truce before the G20 summit and that US President Trump’s decision to delay additional tariffs was Chinese President Xi’s price for holding this week’s meeting with him. Finally, 10yr JGBs were lower with demand dampened by the improved risk sentiment and after similar weakness in T-notes, but with downside limited amid a mixed 2yr auction in which most metrics improved despite a weaker bid to cover.

Top Asian News

  • Trump Asks India to Reverse ‘Unacceptable’ Tariffs on U.S. Goods
  • Trade-War Winner Vietnam Finds Itself in Trump’s Crosshairs
  • Singapore to Review 2019 Growth Forecasts as Trade War Spreads

European equities have given up earlier gains [Eurostoxx 50 -0.3%] amid reports that Chinese President Xi is intending on presenting US President Trump with a set of terms that the US needs to meet before Beijing will be prepared to settle the trade dispute. Beijing is insisting that the U.S. removes its ban on the sale of U.S. technology to Huawei, according to a Chinese Official (which was noted earlier in the session by MOFCOM) whilst also asking for the removal of all punitive tariffs and for the US to drop its efforts to get China to buy more U.S. goods. Equity futures reacted negatively to the report as the conditions from China signal the gulf in demands between the two sides ahead of this weekend’s showdown. Germany’s DAX (-0.1%) is faring slightly better than its peers as the index heavyweight Bayer (+8.0%) surges amid reports of support from Elliott as the Co. reviews its legal strategy on weed killers. Sectors are mixed with some underperformance experienced in defensive sectors. In terms of individual movers, H&M (+9.3%) shares spiked higher at the open following results in which Q2 sales rose 11%. Meanwhile, CHR Hansen (-12.2%) fell to the foot of the Stoxx 600 after cutting its revenue guidance.

Top European News

  • H&M Surges as Retailer Shows Early Progress Toward Turnaround
  • European Car Market Forecast to Shrink 1%, Acea Says in Revision
  • Johnson Zigzags Again, Says No-Deal Exit Unlikely: Brexit Update
  • Macron’s G-20 Climate Threat Melts Away Just Like the Ice Caps

In FX, there has not been much deviation from established or recent ranges in major pairings, and the narrow DXY band (96.390-156) illustrates the subdued and cautious tone ahead of the eagerly awaited Summit in Osaka and US-China trade showdown. Indeed, there is still little sign of strong Dollar selling for month, quarter and half year end portfolio balancing purposes, although the Fed has intervened to an extent via Powell and Bullard’s efforts to manage dovish market expectations.

  • AUD/NZD – The Aussie and Kiwi are still riding high on improved risk sentiment following some signs that relations between Washington and Beijing have cooled, albeit temporarily and conditionally pending the outcome of aforementioned G20 meeting where Presidents Trump and Xi will attempt to resolve issues that led to a breakdown in negotiations. Meanwhile, a welcome rebound in Chinese industrial profits has also lifted the mood down under, with Aud/Usd and Nzd/Usd both within a whisker of big figures at 0.7000 and 0.6700 respectively, and the latter not unduly ruffled by a deterioration in ANZ’s NZ activity outlook overnight.
  • GBP – The Pound is looking perky again as Cable reclaims the 1.2700 handle that has been tested several times this week, but proved unsustainable. Encouraging comments from Japan on the prospect of a post-Brexit trade deal with the UK along TPP lines may be supporting Sterling that is also firmer vs the Euro (cross pivoting 0.8950), but a hefty 1bn option expiry at 1.2700 in Cable could still cap that pair.
  • EUR/CAD/CHF/JPY/NOK – All narrowly mixed vs the Greenback and more confined, with the single currency remaining in a circa 1.1350-80 band and holding above key technical support in the form of the 200 DMA (1.1344) with the aid of firm-to-relatively frothy German state inflation data that puts an upside bias on the pan print consensus towards 1.6% from 1.4% and steady from the previous month. Conversely, the Loonie has lost some momentum ahead of 1.3100 due to a dip in oil prices, while the Franc pivots 0.9800 and Yen straddles 108.00 after dovish/downbeat remarks from BoJ’s Wakatabe. Elsewhere, the Norwegian Krona has retreated in wake of weaker than expected retail sales and the recoil in crude, with Eur/Nok back up around 9.6900.
  • EM – Bucking the generally firmer regional trend, reports that Turkey is looking to syphon CBRT reserves have resurfaced and undermined the Lira alongside headlines about changes to tax policy, with Usd/Try up over 5.7900 at one stage.

In commodities, WTI and Brent futures are consolidating following this week’s geopolitics-inspired gains which were exacerbated by declining US stockpiles. WTI futures hovers around the USD 59/bbl level ahead of a cluster of DMA (50 DMA – 59.25, 100 DMA – 59.41 and 200 DMA 59.48) while its Brent counterpart trades just above the USD 65/bbl mark. On the OPEC+ front, Russia’s Energy Minister sounded somewhat upbeat in regard to reaching a consensus with Russia’s OPEC counterparts at next week’s meeting, adding that he will be meeting Saudi’s Energy Minister Al-Falih at the G20 this weekend. The energy producers will be heading into the meeting with full knowledge of the fallout from US-China talks. Market consensus is that a rollover of the current deal is the likely outlook (also mentioned by the Iraqi Oil Minister), although it is still not clear if any revisions will be made (Iraqi Oil Minister touted deeper cuts). Elsewhere, the gold rally has fizzled out as the DXY remains buoyed above 92.00, with the yellow metal now in close proximity to USD 1400/oz (vs. recent high of USD 1439/oz). Meanwhile, copper prices are little changed on the day ahead of the risk-packed weekend, with prices hovering just above USD 2.7/lb  ahead of its 50 DMA at 2.73/lb. Finally, Dalian Iron ore has resumed its rally amid renewed concerns of tightening supply whilst Rebar steel continued its upwards trajectory amid pollution-related production curbs in China.

US Event Calendar

  • 8:30am: GDP Annualized QoQ, est. 3.2%, prior 3.1%
  • 8:30am: Initial Jobless Claims, est. 220,000, prior 216,000;Continuing Claims, est. 1.67m, prior 1.66m
  • 9:45am: Bloomberg Consumer Comfort, prior 61.8
  • 10am: Pending Home Sales MoM, est. 1.0%, prior -1.5%; YoY, est. 0.4%, prior 0.4%
  • 11am: Kansas City Fed Manf. Activity, est. 1, prior 4

DB’s Jim Reid concludes the overnight wrap

As we await the G-20 none of us are any closer to knowing what the aftermath of the Trump/Xi meeting will be. If we weren’t confused enough, we had to try to decipher the following comments from Mr Trump yesterday, “my plan B’s maybe my plan A, my plan B is that if we don’t make a deal I will tariff, and maybe not at 25%, but maybe at 10%”. This certainly required a few re-reads but the ultimate takeaway from his interview was that the underlying threat of additional tariffs was still very much in place even if there were no greater insights into which way the upcoming talks will go. Trump also continued his now-customary attacks on the Fed and Chair Powell, saying he “should never have raised the rates to the level that he raised it” and that “we should have Draghi instead of our Fed person.”

Earlier in the day there appeared to be a bit of excitement about slightly more upbeat trade comments from Trump’s Treasury Secretary Mnuchin suggesting that a trade deal was 90% complete. However, after some initial giddiness, the market reappraised the remarks to appreciate that Mnuchin said the two sides “were” 90% of the way there. In other words, Mnuchin was referencing where talks were before they broke down. His remarks were live direct to CNBC immediately after I was a guest speaker in the London studio. Indeed I couldn’t help think that I was a filler as the studio was a whirl of activity, stress, and anticipation that they had Mnuchin on live at any moment. Earpieces were a constant stream of noise. Indeed I was told I could be booted off if he came through early. So I was the support act to the main event.

Anyway, the end result for equities was a small retreat for the S&P 500 (-0.12%) and DOW (-0.04%) after sliding steadily throughout the session, notably below the +0.58% and +1.18% peaks that futures hit after the misinterpreted Mnuchin comments. The NASDAQ (+0.32%) posted bigger gains, but the real standout was the Semi-Conductor Index (+3.21%). Two notable laggards were Google (-0.60%) and Facebook (-0.62%), possibly as a result of President Trump’s statement that ” we should be suing Google and Facebook.” European markets faded from earlier highs with the STOXX 600 ending -0.31% while in rates Treasuries continued their post Bullard and Powell move higher with 10y yields up +6.4bps (a further +1bps this morning). At the short end 2y yields rose ‘only’ +3.9bps (+1.7bps this morning) which caused the curve to steepen +2.66bps to 27.5bps (26.8bps this morning).

Breakevens assisted the move higher for rates with oil rallying hard again. WTI closed up +2.42% and has now posted 5 daily moves of at least 2% up or down in the last 11 sessions. Brent also rose +1.84% and is now +10.5% off the recent lows. The spike yesterday appeared to be triggered by the latest EIA inventories data, which showed a 12.8 million barrel drawdown in inventories, the biggest since 2016 and 5th biggest on record going back to 1982. There have been some concerns lately about oversupply, so the initial strong start to the summer driving season sends a bullish signal for oil prices.

Bond markets were a bit less exciting in Europe where 10y Bund yields in particular edged up +2.9bps, similar to the rest of the continent with the exception of BTPs (-1.9bps). Part of that outperformance may well have reflected the Reuters story which hit just after midday suggesting that the ECB was looking at ways to circumvent the issuer limit constraint, potentially by stripping central banks of their voting rights through a clause known as “disenfranchisement”. Clearly there are policy and legal arguments to both sides of this and therefore it’s unlikely to be a decision that is made overnight. There has been more chatter on it recently, especially since Draghi signalled his potential willingness to change the program’s parameters, so it’s a topic worth following closely.

Gold prices slipped -0.99%, their first decline after six straight sessions of gains, though they remain near recent highs. We had highlighted earlier this week how gold and bitcoin were both rising in unison, perhaps as speculators retreated from fiat currencies ahead of expected rate cuts, but that correlation snapped yesterday. While gold fell, bitcoin prices rocketed up another +21.87% at one point to $13,852 before collapsing most of the way back into the close but then spiking again to be +12.03% higher. In Asia it’s gone through a sizeable range again. It feels to H2 2017 all over again.

Elsewhere in Asia this morning markets are heading higher on optimism that a temporary truce might be the most likely outcome of the Trump/Xi meeting at G20. The Nikkei (+0.98%), Hang Seng (+1.13%), Shanghai Comp (+0.89%) and Kospi (+0.83%) are all up c. 1%. The Japanese yen is down -0.287% this morning Elsewhere, futures on the S&P 500 are up +0.28%.

We got confirmation overnight that the Trump/Xi meeting will start at 11:30am (Japan time) on Saturday, with a 90mins slot provided after which Trump is scheduled to meet Turkish President Erdogan. Meanwhile, the Washington Post has reported that President Trump’s top China critic, senior adviser Peter Navarro, is also part of the US delegation visiting G20. He was a last minute addition to the team which includes the U.S. Trade Representative Robert E. Lighthizer, Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross. Navarro’s inclusion reduces the possibility of any quick deal between the presidents, which was never the base case anyway. Meanwhile, Reuters has reported that Lighthizer and Mnuchin are expected to meet with China’s Liu He ahead of the meeting between Trump and Xi. Staying with trade, Bloomberg reported (citing EU officials) that if talks at the G20 meeting and in the coming weeks fail to head off US tariffs on Europe’s car industry, then they are confident that their response will be sharp enough to “hit the president where it hurts”.

Back to yesterday now. As for the data, in the US headline durable goods orders slumped a lot more than expected in May based on the preliminary reading. The headline was -1.3% mom compared to expectations for -0.3%. However the ex-transportation number was a lot more positive (+0.3% mom vs. +0.1% expected) while core capex orders also rose more than expected (+0.4% mom vs. +0.1% expected). Elsewhere, the advance goods trade deficit widened to $74.5bn in May and more than expected to a five-month high. Finally wholesale inventories rose +0.4% mom in May and a little less than expected. In aggregate, the data should signal a modest increase in second quarter growth expectations.

In the UK, Bank of England Governor Carney generated some headlines when testifying to a Parliamentary committee. On the policy front, he emphasised that Brexit is the key risk, with “the degree of uncertainty high” and was sanguine about the disconnect between markets and the BoE’s own forecasts. Markets are resistant to pricing hikes, he said because investors ascribe “some possibility to no deal,” in which case there would be easing. Carney seemed to ratify this view, but cautioned that “we would do what we could to support the transition to no deal, but there’s no guarantee on that.” Relatedly, he pushed back on the view – recently espoused by Boris Johnson among others – that the UK could retreat to the relationship under article 24 of the GATT, which would maintain existing rules while negotiations continue. Carney said such an arrangement would need to be multilaterally agreed and the EU has showed no signs of interest. Boris Johnson said last night that he thought the chances of a no deal Brexit were a “million to one” but that he was prepared for one. He is going to have some tough times squaring this if and when he gets elected!

Across the pond, the Fedspeak calendar was light, with the only major remarks coming from San Francisco Fed President Mary Daly, who leans toward to dovish side of the committee but is relatively centrist. She said that “the labour market is strong. I believe it’s tighter than it’s been in a while, but there might be more room to run.” She also said she is “uncomfortable with not only the level of inflation currently but the direction.” So her comments would be consistent with her support for a July cut, but didn’t really offer any new info.

Looking at the day ahead, this morning we’re due to get June confidence indicators for the Euro Area before the preliminary June CPI report is out in Germany. Also out this afternoon in the US is the third and final Q1 GDP reading (which is expected to be revised up one-tenth to +3.2%) and Q1 core PCE, jobless claims, May pending home sales and the June Kansas Fed manufacturing survey. Elsewhere, the ECB’s Nowotny is due to speak this evening while the Fed will release part two of its bank stress test results.

 

3A/ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 20.51 POINTS OR 0.69%  //Hang Sang CLOSED UP 399.44 POINTS OR 1.42%   /The Nikkei closed UP 251.58 POINTS OR 1.19%//Australia’s all ordinaires CLOSED UP .40%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8785 /Oil UP TO 58.77 dollars per barrel for WTI and 65.91 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8785 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8782 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

 

 

 

 

 

b) REPORT ON JAPAN

 

3c China/Chinese affairs

Pure nonsense! Why would the uSA agree to this deal with China offering nothing..this is going nowhere..there will be no deal

(courtesy zerohedge)

 

Futures Tumble After Beijing Reveals Demands To Agree To Trade War “Truce”, Including Lift Of Huawei Ban

The big news overnight came from the South China Morning Post, which echoed what Bloomberg reported earlier this week, namely that the US and China have “tentatively” agreed to another truce in their trade war in order to resume talks aimed at resolving the dispute, with details of the agreement being laid out in press releases in advance of the meeting between Chinese President Xi Jinping and US President Donald Trump at the G-20 leaders summit in Osaka.

According to the report, such an agreement would avert the next round of tariffs on an additional $300 billion of Chinese imports, which if applied would extend punitive tariffs to virtually all the country’s shipments to the United States.

Citing a source, the SCMP reported that Xi’s price for holding the meeting in Osaka was that Trump delay additional tariffs, which of course is a risk: “The reality, though, is President Trump could always have a change of heart,” the source said. “But the truce cake seems to have been baked.”

A senior Trump administration official told POLITICO earlier this week that it is possible that tariffs could be delayed but cautioned that “nothing is certain. Absolutely nothing.” A Washington-based source familiar with the talks said that there were “ongoing attempts to coordinate press messaging”, but added that there was no specificity yet regarding decisions on tariffs or timing within that messaging.

But while the original SCMP report helped boost risk sentiment overnight, sending futures to session highs, a subsequent report by the WSJ in turn slammed sentiment, after it detailed that the ceasefire is not unconditional but instead Chinese President Xi Jinping will present Trump with a set of terms the U.S. should meet before Beijing is ready to settle a market-rattling trade confrontation, raising fresh questions whether a ceasefire will even be implemented and the two leaders will agree to relaunch talks.

Among the preconditions noted by the WSJ, Beijing is insisting that the U.S. remove its ban on the sale of U.S. technology to Chinese telecommunications giant Huawei Technologies Co. Beijing also wants the U.S. to lift all punitive tariffs and drop efforts to get China to buy even more U.S. exports than Beijing said it would when the two leaders last met in December.

In short, simply to agree to a ceasefire, Beijing demands that Trump concede to many of the currently implemented steps in the ongoing trade war in return for, well, nothing.

How or why Trump will agree to any of this is unclear and is why futures stumbled immediately after the WSJ report hit…

… pushing the Dow to 10-day lows.

The offshore Yuan slumped as well.

As the WSJ further adds, despite his preconditions, “Xi isn’t expected to take a confrontational tone with Mr. Trump, according to the Chinese officials.” Rather, they say, he will sketch out what he envisions as an optimal bilateral relationship, which includes China’s help on security issues vexing to the U.S., especially Iran and North Korea.

But while Xi may not be taking a confrontational tone, his twitter mouthpiece, Global Times editor Hu Xijin had no such qualms and moments after the WSJ report hit, he slammed Trump, saying that the US president “claimed to have Plan B and threatened new tariffs. This is a very unfriendly move and will have a negative impact for sure.”

Of course, there was no mention that once again it is China that has the pre-conditions to a deal, which if not met will result in no “truce.”

It is unclear whether Trump will give any sort of deadline for the talks to reach an agreement, as he had before. Two SCMP sources suggested a deadline of six months, which would put the deadline at the end of the year. Since the trade war started nearly a year ago, Trump has imposed 25 per cent tariffs on US$250 billion worth of Chinese goods.

Of course, if the WSJ is right and Beijing has such high-threshold conditions to even agree to a truce, it may well be that absolutely nothing is announced after the meeting between the two presidents concludes, and the market is starting to price it in.

END
Nationalistic fever returns to the Chinese as they are now shunning all American products
(courtesy zerohedge)

Chinese Consumers Shun All American Products As Nationalism Soars

Since President Trump escalated the trade war last month by slapping a 25% tariff on $200 billion worth of Chinese goods, and is on the verge of taxing the remainder, Beijing has spawned nationalist sentiment across the country that has left many Chinese consumers shunning American products, reported Reuters.

According to a new poll conducted by London-based advisory firm Brunswick, which surveyed 1,000 Chinese consumers, 56% of respondents said they had avoided American products, while 68% said their impression of American firms has become increasingly negative.

“This poses a significant bottom-line risk to US companies as three in four Chinese consumers say they often buy products from American businesses,” Brunswick said on Wednesday.

 

Beijing’s call to nationalism is a significant shift in China’s negotiation strategy with Washington.

In a series of editorials and op-eds published early last month, Chinese state media slammed what it labeled the Trump administration’s “greed and arrogance,” called for a “people’s war” targeting the US “with precision” as China begins a “fight for a new world.”

“The most important thing is that in the China-US trade war, the US side fights for greed and arrogance … and morale will break at any point. The Chinese side is fighting back to protect its legitimate interests,” the nationalist, state-owned Global Times tabloid wrote.

Urging indirect boycott of US goods and services, the editorial slammed Trump and suggested a nation-wide uprising against the US aggression:

“The trade war in the US is the creation of one person and one administration, but it affects that country’s entire population. In China, the entire country and all its people are being threatened. For us, this is a real ‘people’s war.’ “

Whether this means a renewed collapse in Chinese iPhone sales or the boycott of Kentucky Fried Chicken, nationalism, driven by Beijing, sparked by President Trump’s trade war, is likely to have a significant effect on Wall Street’s performance – as a reminder, 30% of S&P500 revenues from international sales in 2017 came from China, a number that is set to tumble.

END

4/EUROPEAN AFFAIRS

UK

Mish Shedlock gives a terrific account on what is going on with Brexit.  The key points he is making and I agree with Mish is that England will be far better off and the EU worse off.  Germany as a big exporter will be damaged

a great read…

(courtesy Mish Shedlock/Mishtalk)

Brexit: Please, Let’s Discuss 10 Pertinent Facts

Authored by Mike Shedlock via MIshTalk,

With Brexit emotions running high, let’s step back and calmly discuss the pertinent facts…

Ten Brexit Facts

 

  1. In the referendum, a majority of UK citizens voted to leave the EU.
  2. The default legal position, subject to change, is that the UK will leave the EU on October 31, 2019.
  3. It is not within the power of the UK parliament to change point number 1.
  4. It is not within the power of the Queen to change point number 1.
  5. The not the legal right of the EU to grant an extension request from UK parliament, by the Queen, or on its own behalf.
  6. The October 31 date is subject to change, but only at the request of the UK prime minister, and then only if all 27 nations in the EU agree.
  7. The window of opportunity for the UK parliament to force elections is September 3 through September 11 at maximum.
  8. It is an option of the next prime minister to prorogue (suspend) parliament long enough to rule out new elections
  9. The prediction that the UK would collapse immediately following the referendum was spectacularly wrong. Predictions of UK demise should there be no a No Deal Brexit are predictions, often purposely biased, not facts.
  10. Michel Barnier, the EU’s chief Brexit negotiator, admitted on film that the Irish backstop was used as a “tactical and strategic means to apply permanent pressure on the UK.”

Facts vs Politics

Like it or not, those are the pertinent facts.

With those facts out of the way, lets turn our attention to the politics of the day as reported by the Guardian Live Blog.

Hunt: Addressing the possibility of a no-deal Brexit, Hunt says that, while it’s not his preferred option, he would take it if he didn’t think a deal was possible by 31 October – even though he acknowledges it’d destroy people’s livelihoods. “I think there is a deal that can unite all wings of the Conservative party and our friends in the DUP. But it’s got to be different to Theresa May’s deal.”

Johnson: Boris Johnson has pledged that the UK will leave the European Union on 31 October “do or die”, as he promised to push for a no-deal Brexit if this was needed to meet the departure deadline. “But I’m not going to do that if there’s a prospect of a better deal.”

Nearly Identical Positions

The amusing thing here is they are saying the same thing.

Hunt is not remotely believable.

Johnson is certainly more believable. Today he issued a challenge to Hunt.

Boris Johnson

@BorisJohnson

If I become PM, we will leave the EU on 31st October, deal or no deal. Today I have asked @Jeremy_Hunt whether he will also commit to this date, no matter what. We must keep our promises to the British people and deliver Brexit – no ifs, no buts, and no second referendum.

WTO Article 24 Legal Authority

Article 24 pertains to the right of countries to abolish WTO tariffs on condition that both counties agree and both countries set a timeline for reaching a deal. They have 10 years to finalize the deal.

Bill Cash@BillCashMP

This letter in the Telegraph has undisputed legal authority. It demolishes the mischief-making which has been generated over Article 24 of the GATT agreement.

Johnson stated today: “Gatt article 24 paragraph males it perfectly clear that two countries that are in the process of beginning a free trade agreement may protract their existing arrangements until such time as they have completed any free trade agreement. And that’s a very hopeful prospect. That is the way forward.”

Please add that to the fact list.

Germany Running Scared

This is my opinion, but Germany is running scared, very scared.

Please consider the Guardian report Germany ‘will talk to the last hour’ to avoid no-deal Brexit.

Germany will fight to the last hour to prevent the UK crashing out of the EU without a deal and is willing to hear any fresh ideas for the Irish border backstop, the country’s ambassador to the UK has said.

Speaking at a car manufacturers’ summit in London, Peter Wittig said Germany cherished its relationship with the UK and was ready to talk about solutions the new prime minister might have for the Irish border problem.

“My country is ready to talk and the chancellor [Angela Merkel] once said she would be willing to talk to the last hour not to have a no-deal scenario,” he said.

“It’s a mindset. We are not giving up in achieving an orderly Brexit. Germany has been a very pragmatic voice in this whole tortuous Brexit process and we will continue to be that.

“Even if we have a short window while the new prime minister is in place, we will welcome any idea how to solve that famous backstop issue and we will be willing to work towards a negotiated deal which is long term the only viable and sensible option for Europe,” he added.

“Our mindset is to explore all pathways to come to a negotiated deal.”

Mindset

Is that believable?

Of course it is. Germany is scared to death its vaunted export machine is about to collapse.

I wrote about that earlier today in Rise of the Greens = Deindustrialization of Germany.

Five Events

  1. Merkel foolishly did in nuclear to appease the Greens
  2. The German Car industry lied about diesel. The Greens stepped in and killed it.
  3. The Greens will kill coal.
  4. Brexit will hurt German exports no matter what happens now.
  5. Trump tariffs on German cars are likely to be the topper.

Point number four is in serious play. The German trade surplus with the UK and the rest of the world is huge.

Permanent Pressure

Let’s return to point 10 at the top: Michel Barnier, the EU’s chief Brexit negotiator, admitted on film that the Irish backstop was used as a “tactical and strategic means to apply permanent pressure on the UK.”

Please see Let’s Discuss Brexit (and How the EU Bragged, on Film, About Screwing the UK) for proof, not allegations.

Credibility in Play

Theresa May repeated many times “No deal is better than a bad deal”. It was a lie the UK never believed.

Johnson, unlike Hunt, appears to be serious.

The EU will play as a patsy anyone who is not serious about leaving.

Power is Johnson’s

The power is in Johnson’s hands.

If he really is willing to leave the EU, there is enormous pressure on the EU to bend.

Lies Revisited

Think about all the lies the EU made and Remainers made about instant collapse of the UK if the vote was leave.

It didn’t happen.

What If?

What if, as I suspect, there is far greater damage to the EU than the UK because of an EU collapse in exports on a hard Brexit.

This has to be on their minds.

Worst EU Fear

The EU’s worst fear has to be that if the UK walks, that it is the EU, not the UK that takes the bigger hit.

Pressure? You bet.

All Johnson needs to do is stand his ground.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6. GLOBAL ISSUES

Not only is Japan facing a demographic doom but so is Germany, Italy, and South Korea as the total workforce in each of these countries will collapse by the year 2050

(courtesy zerohedge)

Demographic Doom? Germany, Italy, Korea, & Japan Face Workforce Collapse By 2050

Forget the trade war, debt, deflation, automation, and artificial intelligence: one of the most significant threats to the global economy and the future of the world as we know it is demographics.

A new OECD report, published by International Business Times, said Korea, Japan, Germany, and Italy could see their working-age populations decline to dangerously low levels by 2050.

The report took each OECD country’s population between the ages of 20 and 64 in the year 2000 as a base and was able to project the 2050 population. What they discovered was the working class population by 2050 would be 80% of its base year in Korea and Italy. In Japan, the workforce population would be much worse, approximately 60% of its original size.

For the OECD as a whole, there are about 34 countries from around the world, the size of the working age population is expected to increase by 111% of its original size by 2050. Much of the growth will be driven by stable birth rates and growing populations, like Australia and Turkey.

The OECD noted that Japan’s working-age population has been in collapse for nearly three decades. Korea’s working-age population was expanding until just recently but is expected to begin contracting this year.

For countries experiencing a decline in the working-age population, there will be widespread consequences across all aspects of the global economy: as households shrink, so does discretionary spending, and ultimately will impact living space. In developed markets, large cities will see increased pressure on real estate and rent prices for apartments.

In a separate report, we showed how countries around the world are set to experience a decline in the number of children per household in the 2000 – 2030 period. More specifically, looking from 2015 out to 2030, Euromonitor expects developed markets to have a ~20% decline in the number of children per household and developing markets a ~15% decline. In fact, as RBC points out, it was as recently as 2012 when the number of couples without children globally surpassed the number of those with children.

While this demographic trend is troubling, it’s only set to worsen in the coming decades. Many developed countries will have a severe demographic imbalance where the older generation is disproportionately larger than, the younger generations. In other words, many parts of the world are marching straight towards Japanification.

end

The global car industry is in big trouble as Ford is slashing 12,000 jobs across Europe

(courtesy zerohedge)

Global Carmageddon Continues: Ford Set To Slash 12,000 Jobs Across Europe

The party is officially over for the auto sector – and now it’s time to pay the bill.

Ford is set to potentially slash up to 12,000 jobs at manufacturing plants across Europe, including 3,000 jobs in the UK, as part of a massive cost cutting plan, according to Yahoo. The company also confirmed that it would close or sell 6 of its 24 facilities across Europe by the end of 2020.

Ford said that most of its cuts will come “primarily through voluntary separation programmes.” Ford says that 2,000 of the 12,000 jobs that will be “impacted” are salaried positions.

This comes on the same day that UK vehicle production is said to be down for the 12th straight month, dropping 15.5% in May. 20,000 less vehicles were manufactured in the UK last month than in 2018, according to the Society of Motor Manufacturers and Traders (SMMT).

The global auto industry continues to grind to a halt as a result of recessionary economies, the U.S./China trade war, and higher emissions standards in Europe. There are fears that Brexit could put additional pressure on production going forward.

Ford called the cuts “the most comprehensive redesign in the history of its business in Europe.”

Plants in Russia and France will be closed, in addition to the company’s Ford of Britain and Ford Credit Europe headquarters in Warley.

Stuart Rowley, president of Ford of Europe, said:

“Separating employees and closing plants are the hardest decisions we make, and in recognition of the effect on families and communities, we are providing support to ease the impact. We are grateful for the ongoing consultations with our works councils, trade union partners and elected representatives. Together, we are moving forward and focused on building a long-term sustainable future for our business in Europe.”

Ford employs about 65,000 people across Europe.

GM had previously sold its European Open and Vauxhall brands in 2017, citing Brexit as “the final straw” for making cuts.

Rowley concluded:

“Implementing our new strategy quickly enables us to invest and grow our leading commercial vehicle business and provide customers with more electrified vehicles, SUVs, exciting performance derivatives and iconic imported models. Our future is rooted in electrification.”

Two weeks ago we noted that despite a momentary breather for the U.S. auto market in May, China had posted its worth month for auto sales ever. In May we noted that European auto stocks were under pressure as a result of sales falling for the 8th consecutive month. Bank of America had commented that “the auto cycle had peaked” in a note put out toward the beginning of the month.

end

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

India/USA

Trump Demands India Reverse “Unacceptable” Tariffs On US Goods Ahead Of G20 Talks

President Trump ratcheted up tension between the United States and India in a Thursday Tweet before a planned meeting with Prime Minister Narendra Modi at this week’s G20 summit in Japan.

“India, for years having put very high Tariffs against the United States, just recently increased the Tariffs even further,” Trump said in the Tweet – his first public response to a move by New Delhi to slap higher tariffs on 28 US products following Washington’s June 1st move to end trade concessions o $6.3 billion of Indian goods.

Donald J. Trump

@realDonaldTrump

end

I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high Tariffs against the United States, just recently increased the Tariffs even further. This is unacceptable and the Tariffs must be withdrawn!

27.3K people are talking about this

Trump’s remarks come after India began imposing tariffs as high as 100% on certain US goods, including Harley-Davidson motorcycles, reports Bloomberg.

India levies an average tariff of 6.94% on imports, slightly higher than 6.01% in the U.S. and 6.06% in China, according to World Bank data as of 2017. But, what particularly riled Trump was New Delhi imposing tariffs as high as 100% on Harley-Davidson Inc. motorcycles — an issue he had flagged in a joint address to Congress in February 2017. –Bloomberg

The trade spat comes as the United States seeks Modi’s help to counter China in the region, while Washington has demanded that India refrain from purchasing the Russian-made S-400 missile defense system, and oil from Iran.

“Now you know why India recently imposed retaliatory tariffs that had been put off for a year,” said Brookings Institution fellow Tanvi Madan. “Makes for a useful card in negotiations. Now India can use their withdrawal (as DJT wants) as a ‘give’/concession.”

Trump is also due to hold a trilateral meeting with Modi and Japan Prime Minister Shinzo Abe on Friday, part of U.S. efforts to bring together countries wary of China’s increasing economic and military might. Still, efforts at formal collaboration have largely stalled.

On a visit to New Delhi on Wednesday, Secretary of State Michael Pompeo stressed the strength of the U.S.-India relationship and called for them to embark on a “new age of ambition.” They needed to overcome a “nagging misconception that our countries are not able to be full partners,” he said, referring to India’s Cold War alliance with the Soviet Union. –Bloomberg

On Wednesday US Secretary of State Mike Pompeo was in New Delhi ahead of the G-20 summit in order to discuss the heightened trade tensions between countries, walking away with a promise to focus on better ties – yet giving few specifics on how this might be accomplished. Washington, meanwhile, has also demanded that India cut oil imports from Iran and Venezuela, avoid doing business with Huawei Technologies for 5G networks, and cut ties with North Korea.

“Harmonizing our interests and our views, that’s really the task of diplomacy,” said India’s External Affairs Minister Subrahmanyam Jaishankar, standing next to Pompeo. “I think Secretary Pompeo would agree with me today that we have earned our pay.”

 

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

Euro/USA 1.1376 UP .0002 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /RED EXCEPT ITALY

 

 

USA/JAPAN YEN 107.84 UP 0.092 (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 1.2717   UP   0.0223  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3132 UP .0009 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 THURSDAY morning in Europe, the Euro ROSE BY 2 basis points, trading now ABOVE the important 1.08 level RISING to 1.1376 Last night Shanghai COMPOSITE CLOSED UP 20.51 POINTS OR 0.69% 

 

//Hang Sang CLOSED UP 399.44 POINTS OR 1.42%

/AUSTRALIA CLOSED UP 0,40%// EUROPEAN BOURSES ALL RED EXCEPT ITALY

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED EXCEPT ITALY 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 399.44 POINTS OR 1.42%

 

 

/SHANGHAI CLOSED UP 20.51 POINTS OR 0.69%

 

Australia BOURSE CLOSED UP. 40% 

 

 

Nikkei (Japan) CLOSED UP 251.58  POINTS OR 1.19%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1405.50

silver:$15.25-

Early THURSDAY morning USA 10 year bond yield: 2.04% !!! DOWN 1 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.56 DOWN 1  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 96.16 DOWN 5 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing THURSDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 0.48% UP 0 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.14%  UP 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.40%/ DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD: 2.14 DOWN 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 174 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.32% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.46% 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 THURSDAY

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

Euro/USA 1.1367  DOWN     .0007 or 7 basis points

USA/Japan: 107.75 UP .008 OR YEN DOWN 8  basis points/

Great Britain/USA 1.2672 DOWN 21 POUND DOWN 21  BASIS POINTS)

Canadian dollar UP 21 basis points to 1.3102

 

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The USA/Yuan,CNY: AT 6.8771    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8752  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.7717 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.14%

 

Your closing 10 yr US bond yield DOWN 3 IN basis points from WEDNESDAY at 2.02 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.53 DOWN 4 in basis points on the day

Your closing USA dollar index, 96.23 UP 2  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 THURSDAY: 12:00 PM

London: CLOSED DOWN 14.06  0.19%

German Dax :  CLOSED UP 25.71 POINTS OR .21%

 

Paris Cac CLOSED DOWN 7.11 POINTS 0.13%

Spain IBEX CLOSED DOWN 9.60 POINTS or 0.10%

Italian MIB: CLOSED UP 53.73 POINTS OR 0.26%

 

 

 

 

 

WTI Oil price; 59.41 12:00  PM  EST

Brent Oil: 66.51 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:     THE CROSS HIGHER BY 0.07 RUBLES/DOLLAR (RUBLE LOWER BY 7 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.32 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 :  59.28//

 

 

BRENT :  66.34

USA 10 YR BOND YIELD: … 2.01…   VERY DEADLY//

 

 

USA 30 YR BOND YIELD: 2.53..VERY DEADLY/

 

 

 

 

 

EURO/USA 1.1369 ( DOWN 5   BASIS POINTS)

USA/JAPANESE YEN:107.78 UP .035 (YEN DOWN 3 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.23 DOWN 1 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2699 DOWN 25  POINTS

 

the Turkish lira close: 5.7748

 

 

the Russian rouble 63.06   DOWN 0.05 Roubles against the uSA dollar.( DOWN 5 BASIS POINTS)

Canadian dollar:  1.3099 UP 23 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8771  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8726 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.32%

 

The Dow closed  DOWN 10,24 POINTS OR 0.04%

 

NASDAQ closed UP 57.79 POINTS OR 0.73%

 


VOLATILITY INDEX:  15.80 CLOSED DOWN .41

LIBOR 3 MONTH DURATION: 2.329%//libor dropping like a stone

 

 

 

FROM 2.338

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

TRADING IN GRAPH FORM FOR THE DAY//

Crypto Craters But Bonds & Stocks Bid On ‘Bad’ Macro/Trade News

Clearly unacceptable China pre-conditions for a trade-deal and ugly consumption and housing data was just what the doctor ordered for a buying spree in stocks today (presumably because the worse things get fundamentally or geopolitically, the closer The Fed gets to delivering its 50bps “insurance” cut in July)… what a bloody joke!

So before we start, there’s this… “Soft” data has collapsed (Kansas Fed joins a long list today) catching down to “hard” data’s dismal levels…

And that bad news sparked a dovish push in market expectations for The Fed…

Which was all that was needed to bid bonds and stocks higher on the day…

 

Small Caps and Trannies surged on the day (which means it was all a short-squeeze) with Dow underperforming (weighed down by Boeing)…Total meltup short-squeeze at the close in small caps…

 

And indeed, it was the biggest short squeeze in June as “Most Shorted” spiked…

 

The Dow dipped late on as Boeing admitted the Max737 delays will continue…

 

Chinese stocks pumped back up to unchanged on the week overnight…

 

European markets were small down on the day with an ugly close…

 

Gold remains the big winner since The Fed went Full Dovetard…

 

Treasury yields tumbled on the day with the long-end outperforming…

 

With 10Y Yields stalling at last week’s post-Fed highs and tumbling back to 2.00%…

 

The Dollar was unchanged, remaining in the very narrow range since the post-FOMC plunge…

 

The Brazilian Real spiked on chatter about pension reform being voted on before recess…

 

Yuan strengthened on the day, despite the headlines…

 

Some serious carnage in cryptos today (but we note that Bitcoin is up 10% on the week and is still up 200% YTD)…

 

With Bitcoin back below $11k…

 

 

Commodities were generally unchanged on the day…

 

Spot Gold briefly dipped below $1400, but was bid at that level…

 

Commodities and Bonds seem convinced all is not well (as stocks near record highs)…

 

Finally, as Bloomberg’s Ye Xie notes, the collapse in regional Fed surveys leaves the stock market vulnerable.  With the Kansas City Manufacturing Activity Index posting a reading of zero, all five regional Fed surveys of business activity deteriorated this month. That points to the risk that the ISM manufacturing index next week may fall below 50, the dividing line between growth and contraction. Take a look at this chart tracking the ISM PMI and the excess year-on-year return of the S&P 500 over three-month Libor.

Have trades given up on giving a shit?

Besides… when did fun-durr-mentals matter?

“It’s not the economy… or trade… it’s The Fed, stupid!”

END

end

 

i) Market trading/

 

MARKET TRADING/LATE MORNING

 

 

LATE AFTERNOON

Stocks Stumble After Kudlow Warns On Additional China Tariffs

After Xi’s reported terms were released this morning ahead of the Trump-Xi meeting, Larry Kudlow says that US is bringing no pre-conditions but warned that enforcement mechanisms will be key for any deal and additional China tariffs may still be necessary.

Algos immediately dumped stocks but some sense of reality came back quickly as this news is not news at all…

Kudlow pointed out that US wants a strong China deal with structural changes.

 

Additionally, a senior US administration official told Reuters that US is unlikely to lift restrictions on Huawei (one of Xi’s pre-conditions).

Kudlow also added that he agrees with the interest rate market on what The Fed should do… i.e. slash rates now!

Does that imply The White House will need cover for the fallout from a failed talk with Xi?

END

 

ii)Market data/

First quarter revised slightly lower as personal spending tumbles.  Problem will be in core PCE which is heating up.  This is the final reading for Q1 and it comes it at 3.1, falling from 3.2%

(courtesy zerohedge)

Q1 GDP Revised Lower As Personal Spending Tumbles, But Core PCE Heats Up

After sizzling ever higher for the first two readings of Q1 GDP, the 2nd and final (for now) revision of Q1 GDP came in a hair weaker than expected, dropping from 3.2% to 3.1% (3.08% to be precise), below the 3.2% consensus estimate, if still well above the 2.2% annualized GDP print in Q4 2018.

The unrevised GDP growth rate reflected upward revisions to business investment, exports, and state and local government spending. These were offset by downward revisions to consumer spending and inventory investment and an upward revision to imports.

The key driver behind the downward revision was mostly the sharp drop in personal consumption/spending, which was revised sharply lower from 0.90% to 0.62%, and far below the 1.7% print in Q4. On an annualized basis, personal consumption dropped to 0.9% from 1.3% as of the 2nd revision, and below the 1.3% expected.

This drop however was offset by a rebound in Fixed Investment, which was revised higher from 0.18% in the prior revision to 0.53%. Nonresidential fixed investment, or spending on equipment, structures and intellectual property rose 4.4% annualized in 1Q after rising 5.4% prior quarter.

The other components of GDP were generally in line with the prior revision:

  • Private Inventories came at 0.55%, vs 0.60% in the 2nd revision
  • Net exports was revised modestly lower from 0.97% to 0.90%
  • Government consumption was revised higher from 0.42% to 0.48$.

The components summarized visually:

 

However, offsetting the modest drop in GDP, was the increase in trhe Fed’s preferred inflationary measures, as the GDP price index rose 0.9% in 1Q after rising 1.7% prior quarter; it rose from 0.8% in the last revision; meanwhile, core PCE q/q rose 1.2% in 1Q after rising 1.8% prior quarter, but more importantly it printed above the 1.0% expected, which was also the growth reported in the prior revision.

In other news, Q1 Corporate Profits Fell 2.6% Q/q, after falling 0.4% in prior quarter.

According to the BEA, Y/Y corp. profits were up 3.4% in 1Q after rising 7.4% prior quarter.  Financial industry profits increased 0.3% Q/q in 1Q after falling 5.6% prior quarter, while Federal Reserve bank profits down 11% in 1Q after falling 7.2% prior quarter. Finally, nNonfinancial sector profits fell 4.9% Q/q in 1Q after rising 1% prior quarter.

Overall, a mixed print, with the modest downward revision offset by the increase in core PCE. In any case, since this number is very backward looking, it is unlikely to have any impact on Fed rate cut thinking.

 end
A good indicator of huge problems inside the uSA economy:  pending home sales falter badly despite tubmling mortgage rates
(courtesy zerohedge)

Pending Home Sales Contract Year-Over-Year Despite Tumbling Mortgage Rates

With dismal new home sales (weakest since 2018) and a modest rebound in existing home sales (still down YoY for 15 straight months), this morning’s pending home sales data for May was expected to break the tie with a modest 1.0% MoM rise.

And on a month-over-month basis, pending home sales surprised to the upside, rising 1.1% in May indicating Americans may be responding to declining mortgage rates.

However, on a year-over-year basis, Pending Home Sales fell back into contraction (down 0.8% YoY)

Contract signings increased from the prior month in three of four regions, led by a 3.6% advance in the Midwest and a 3.5% gain in the Northeast. Pending sales were up 0.1% in the South and they fell 1.8% in the West.

Despite the total collapse in mortgage rates, this seems like quite a disappointing reaction.

“Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers,” NAR Chief Economist Lawrence Yun said in a statement.

While the Fed may cut interest rates this year, “there is no guarantee mortgage rates will fall from these already historically low points. Job creation and a rise in inventory will nonetheless drive more buyers to enter the market.”

As a reminder, pending home sales are often looked to as a leading indicator of existing home purchases and a measure of the health of the housing market in the coming months.

end

iii)USA ECONOMIC/GENERAL STORIES

Last night, a new software glitch is found on the Boeing 737 Max and it results in “uncontrollable nosedives”

Does not look good for Boeing…

(courtesy zerohedge)

New Software Glitch Found On 737 MAX That Results In “Uncontrollable Nosedives”

With Boeing’s fleet of 737 MAX planes indefinitely grounded after unexpected problems with the MCAS system costs hundreds of people their lives in two fatal crashes, tests on the grounded planes revealed a new, and unrelated safety risk in the computer system for the Boeing 737 Max that could push the plane downward the FAA announced; the discovery could lead to further lengthy delays before the aircraft is allowed return to service.

A series of simulator flights to test new software developed by Boeing revealed the flaw, a source told CNN. In simulator tests, government pilots discovered that a microprocessor failure could push the nose of the plane toward the ground. It is not known whether the microprocessor played a role in either crash.

 

737 Flight Simulator 

While the original crashes remain under investigation, preliminary reports showed that “a new stabilization system pushed both planes into steep nosedives from which the pilots could not recover.” The issue is known in aviation circles as runaway stabilizer trim.

“The FAA recently found a potential risk that Boeing must mitigate,” the agency said in an emailed statement on Wednesday, without providing any specifics.

While the latest glitch is separate from, and did not involve the Maneuvering Characteristics Augmentation System linked to the two fatal accidents since October that killed 346 people, it could produce an uncommanded dive similar to what occurred in the crashes, Bloomberg confirmed, also citing an unnamed source..

Meanwhile, piling damage control upon damage control, Boeing announced it could break the chain of events that led to both crashes by developing a software fix that would limit the potency of that stabilization system. In other words, for every uncontrolled dive there is a software upgrade… allegedly. The problem is that the broader public is becoming increasingly disgusted by what is a clear culture of cutting corners and rolling out flying coffins that crash to earth the moment there is a BSOD.

Boeing engineers are now trying to address the issue, which has led to another delay in recertifying the 737 Max.
“The safety of our airplanes is Boeing’s highest priority. We are working closely with the FAA to safely return the MAX to service,” Boeing said in a statement. The sources say Boeing engineers are trying to determine if the microprocessor issue can be fixed by reprogramming software or if replacing the physical microprocessors on each 737 Max aircraft may be required.

When testing the potential failure of the microprocessor in the simulators, “it was difficult for the test pilots to recover in a matter of seconds,” one of the sources said. “And if you can’t recover in a matter of seconds, that’s an unreasonable risk.”

The good news for Boeing is that despite the disastrous track record of flawed executive decisions and cut corners, its stocks has so far managed to recover every single time, if a little longer than “seconds.” Even so, it remains well below the level it hit after its second plane went down, following the infamous MCAS failure.

Another crash, however, and BA will find just how unpleasant gravity can be, even if the consequences of a stock crash allow (most) shareholders to live and tell all about it.

end
Shares of Boeing tumble on the news.
(courtesy zerohedge)

Boeing Shares Tumble After Report New “Glitch” Can Send 737 MAX In “Uncontrollable Nosedive”

Late on Wednesday we reported that Boeing’s woes had escalated dramatically, when the FAA announced that tests on grounded Boeing 737 MAX planes revealed a new, and unrelated safety risk in the computer system for the Boeing 737 Max that could push the plane in an uncontrolled nosedive the FAA announced; the discovery could lead to further lengthy delays before the aircraft is allowed return to service.

As CNN reported, in simulator tests, government pilots discovered that a microprocessor failure could push the nose of the plane toward the ground. While the original crashes remain under investigation, preliminary reports showed that “a new stabilization system pushed both planes into steep nosedives from which the pilots could not recover.” The issue is known in aviation circles as runaway stabilizer trim.

“The FAA recently found a potential risk that Boeing must mitigate,” the agency said in an emailed statement on Wednesday, without providing any specifics.

As we said last night, “the good news for Boeing is that despite the disastrous track record of flawed executive decisions and cut corners, its stocks has so far managed to recover every single time, if a little longer than “seconds.” Even so, it remains well below the level it hit after its second plane went down, following the infamous MCAS failure.”

 

Well, on Thursday morning the signs were ominous, and the market was clearly unhappy with the latest revelation, sending Boeing shares tumbling more than $20 in the premarket, before stabilizing in the mid-$350s.

And with regulators finally doing their job – one wonders why none of these discoveries were made years ago when the MAX was initially being rolled out – one wonders how long until an activist emerges and demands that Boeing spin off its commercial airline group from the core of the company, the part that makes weapons of death and destruction, and whose profitability is assured for deades to come.

end

(zerohedge)

Dow Dragged Lower As Boeing Slides On Report 737 MAX Will Remain Grounded 3 More Months

Boeing stock dropped sharply, dragging the Dow – where it is the most influential member – alongside after Bloomberg reported that it would take as much as three months (if not more) to fix the latest software glitch on its 737 Max, which as we reported yesterday, was discovered when a U.S. government pilot running simulator tests experienced a lag in an emergency response because a computer chip was overwhelmed with data, and which could result in “uncontrolled nosedives” in the already notorious airplane.

As we reported late on Wednesday, the FAA discovered that when the tail panel that adjusts the nose up and down moves on its own — a failure known as a trim runaway — the flight computer could impede a pilot’s response.

One of the first steps in such a failure is to use thumb switches on the control column to counter the movement. A pilot attempted that maneuver during the recent simulator test and found that because of the computer issue, the manual electric trim switches didn’t immediately respond.

That could led the plane to enter a dive that would be difficult to recover from. The FAA pilot categorized it as catastrophic, which means it could result in a crash.

After an announcement by the Federal Aviation Administration that it had detected a new safety issue on the grounded plane, Boeing said in a statement that it plans to update the plane’s software to address the issue. However, according to Bloomberg which first reported the delay, “the FAA isn’t sure yet whether that will address the problem or whether a more complex and expensive hardware fix is required” citing an unnamed source.

 

The same source said that estimates for how long it will take to address the latest issue on the plane range from a few weeks to three months. Another person familiar with the matter told Bloomberg it could take two to three months, but not longer. Of course, that assumes that no more “surprises” are discovered.

The news sent BA stock, which had regained most of this morning’s losses as algos contemplated the news briefly before deciding to BTFD, to drop once again, dragging the Dow briefly into the red.

end

This has been the wettest year in many moons.  It has decimated the corn crops! along with ancillary businesses

(courtesy zerohedge)

“It’s A Scary Picture”: Midwest Farming Turmoil Being Compared To 2008 Housing Crisis

The wettest year in memory continues to decimate corn crops across the midwest, according to Bloomberg.

And it’s not just farmers that are bearing the brunt of the flooding, it’s the entire agricultural economy. Those that provide supplies like seeds, fertilizer, equipment and services are also struggling. For example, BBG reports that “at Burrus Seed in Arenzville, Illinois, employees spend as much time trying to lift farmers’ spirits as they do selling to them.”

Todd Burrus, owner, said:

 

“If we experienced a year like this, I don’t remember it. When the farm economy is tough, it’s going to be tough for all the suppliers.”

Other Illinois seed business owners echo those sentiments. For instance, business owner Kurt Barman said that he’s being inundated with returns:

“All of the seeds are coming back, so that’s lost revenue for us.”

Now, growers don’t know whether to trade up to newer technology to protect crops and business, or use prior versions. Mark Patrick, chief financial officer of agro-chemical giant Syngenta AG said:

“Couple that with less acres, you’ve got a very acute pressure going on at the moment.”

Those in the fertilizer business have seen urea premiums running at more than double normal levels. The reason for the surge is due to the Mississippi being closed and and the normal flow of crop-nutrient shipments being disrupted.

It’s now being postulated that even the coming $28 billion in tariff aid may not be enough to rescue the Midwest from compounding negative catalysts.

Agricultural credit conditions have also steadily deteriorated. According to the Kansas City Federal Reserve and a Purdue University/CME Group index, “farmer sentiment has plunged to levels not seen since October 2016, the month before Donald Trump’s election victory.”

Net farm income last year came in at about half of the $123 billion earned in 2013. Curt Hudnutt, head of North American rural banking for Rabobank said:

“If you want to liken it to the 2008 recession from a housing perspective, it’s similar to that and it’s really vulnerable to any disruptions.’’

Shawn Kelly, mayor of Missouri Valley, Iowa, said: “The weather is casting a shadow over the corn-driven local economy, where average incomes are already well below the national average. Any time you have a big economic impact from agriculture like that where people can’t get their crops in, there’s going to be less money for people to spend.”

Hamburg, Iowa was inundated with flooding from the Missouri river and has had to take on debt to recover and reconnect water and gas supplies to homes. Mayor Cathy Crain said:

“We used to have a really healthy bottom line. As of two months ago, we have spent it all and are now living on and operating on borrowed dollars.”

There are some limited silver linings: corn futures have rallied about 30% since early May, which means that those who are able to grow will get higher prices. And worries of a poor corn crop have “prompted ethanol plants and animal feeders to bid more aggressively for supplies leftover from last year.”

Philip Luce, a grain merchandising specialist at advisory service White Commercial Corp. in Stuart, Florida said: “In terms of the effect on the old crop, both price and basis, it’s been a godsend. Unfortunately, usually you get these prices when there’s a production problem.’’

Craig Woodley, a pilot who owns Woodley Aerial Spray in Walnut, Illinois, said:

 “It’s a scary picture. There’s definitely going to be a lot of lives affected.”

Recall, about a week ago, we wrote that farmers were expecting a corn crop far worse than USDA estimates. We wrote that farmers believed that already adjusted estimates for June were still going to be too optimistic. Our report checked in with corn farmer James McCune, who, when looking at the size of his diminutive corn crop this year simply said: “Corn’s not supposed to be this tall.”

In fact, we noted that conditions and morale are so poor in Northwestern Illinois, McCune organized a happy hour for about 125 farmers and others tied to the industry. They called it the “Prevent Plant Part”, a nod in jest to the unplanted acreage this season.

“It’s going to be a train wreck,” McCune said.

Corn farmers face unprecedented headwinds this year, including record rain that has flooded the midwest and stalled corn plantings. This has forced the US Department of Agriculture to cut its harvest estimates in its June report. This is only the fourth time since 2000 that the government has taken such action in the month of June.

McCune says that the USDA’s report won’t even capture how bad this year‘s crop will be. Another farmer, Bryan Snetcher, said even though he was able to get his crop planted, it has been a huge battle.

SWAMP STORIES

Details on the first Democratic debate.

(courtesy zerohedge)

“Boring!!!!” Post-Mortem Of Predictable, Pandering Platitudes At First Dem Debate

Perhaps President Trump said it best, but aside from an awkward hot-mic moment, the first Democratic Party primary debate was “boring!

Donald J. Trump

@realDonaldTrump

BORING!

As Liberty Nation’s Graham Noble details belowthe debate was an exercise in bland posturing with practically no substance.

Perhaps expectations for the first Democratic Party primary debate were too high. That may have been entirely natural among those who are politically aware as well as among those who pontificate about politics for a living. Many of these people hoped for at least a couple of bold soundbites, a clear policy statement or two, or a heated exchange. The June 26 event in Florida – part one of a two-part debate – was almost entirely devoid of any of those things.

The first quarter of the two-hour debate was focused on healthcare. There was little diversity of opinion and no detailed policy proposal, though the debate moderators were fairly rigid on limiting each candidate’s time and so none of the 2020 hopefuls could have really been expected to lay out specific legislative goals. That being said, the debate did absolutely nothing to more fully inform the American people about any candidate’s position.

Platitudes Over Policy

Everyone on the stage expressed the usual platitudes about providing universal access to healthcare. In true Democratic Party fashion, all ten candidates based their ideas on the assumption that government alone can provide the most efficient and cost-effective healthcare system the United States will ever have. This, of course, is entirely at odds with the entire history of human civilization, which teaches us that government is incapable of providing efficient, cost-effective services.

Interestingly, when the ten contenders were asked to raise their hands if they would abolish private health insurance, only New York Mayor Bill DeBlazio and Massachusetts Senator Elizabeth Warren did so.

Former Maryland Representative John Delaney was perhaps the most rational person on the stage and also the most ignored – with the exception of Amy Klobuchar (D-MN). On the subject of healthcare reform, Delaney suggested the best way forward was to “keep what’s working and fix what’s broken.” Though it will not be well-received by most Democratic politicians or their media lapdogs, Delaney may have uttered the most sensible line of the night when he later said his party should offer “Real solutions, not impossible promises.”

The Favored Ones

Warren, who was literally center stage, was given the most time to speak during that first section of the debate. Indeed, there was a definite bias – throughout the event – toward Warren, former Texas congressman Robert O’Rourke, New Jersey Senator Cory Booker and Former Housing and Urban Development Secretary Julián Castro. The other candidates had to fight for the opportunity to speak, on many occasions.

Other issues covered included immigration, Iran, gun control, and climate change. No specific policies were offered up by any of the candidates. Gun control was obviously a subject that made all of them uncomfortable. Clearly, not one of these Democrats had the courage to go on the record, in front of a national audience, with their plans for gun confiscation. To their credit, though, none of them professed support for the 2nd Amendment, which so many Democrats do – disingenuously – when pressed on the issue of gun rights.

All but one of the contenders agreed that the United States should sign on, once again, to the Iran nuclear deal. Sen. Booker declined but then, ironically, channeled President Donald Trump by asserting that a better deal should be negotiated.

The Also-Rans

All in all – for almost all ten candidates – it was, at best, a cautious performance and, at worst, a cowardly one. Castro made the biggest impact as one of the lesser-known 2020 contenders. Cory Booker perhaps comes out of the event with a slight boost and Warren, while not especially captivating, certainly retained her position as one of the front-runners.

Robert “Beto” O’Rourke

Robert O’Rourke continued to flail and did nothing, on the stage, to dispel the feeling that he is entirely out of his depth in a presidential race. He was scolded by Castro for his immigration ideas and falsely assumed that his command of the Spanish language would, perhaps, earn him some street cred, but that did not appear to work either.

Hawaii Representative Tulsi Gabbard had a moment to shine when she schooled Washington Governor Jay Inslee on the futility of the Afghan war but was not one of the chosen few who were allowed to hog the limelight. Inslee himself has a very limited future in this race.

Ohio Representative Tim Ryan made little impact, though he was one of only two candidates who acknowledged that his party has lost its way – becoming disconnected from blue-collar America and evolving into the party of the elites. The other candidate who made the same assertion was DeBlazio, who may have an equally limited lifespan in the 2020 race.

The debate may have had some effect on how Democratic voters view the respective candidates but probably did nothing to excite the base: Inslee, Klobuchar (who was the most lackluster figure of the night), Delaney, and Ryan were unable to capture that one, big moment they each needed to give their campaigns some steam. DeBlazio was the most aggressive but continues to be one of the least likable people in America. Castro, Warren and, perhaps, Booker were the winners of the night.

Gabbard and DeBlazio may have done enough to keep their hopes alive a little longer and, if Democratic voters are truly interested in moderation and something more rational, then Delaney may survive for a while longer. The other four are probably as good as done.

In the final analysis, this debate was an exercise in bland posturing with practically no substance. Trump, who tweeted “BORING!” during the debate, has little to worry about if this is the best the Democrats have to offer for 2020.

end
After closing the door on impeaching Trump, Pelosi also folds on the Senate emergency border bill and they will pass the $4.6 billion deal.
(courtesy zerohedge)

Pelosi Folds: Confirms House Will “Reluctantly” Pass Trump’s Emergency Border Bill

House Speaker Nancy Pelosi (D-CA) announced that the Democratic controlled House will bend the knee, and has agreed to pass the Senate’s $4.6 billion immigration bill to deliver aid to the southern border.

In a Thursday letter, Pelosi said that while the House is “gravely disappointed” in the Senate for passing their own immigration legislation, “the children come first.”

“Therefore, we will not engage in the same disrespectful behavior that the Senate did in ignoring our priorities. In order to get resources to the children fastest, we will reluctantly pass the Senate bill,” the letter continues.

 

According to Bloomberg: “The turnaround came after moderate Democrats flexed their power within the caucus by joining with House Republicans to urge Pelosi to simply vote on the bipartisan Senate bill before lawmakers leave Washington for next week’s recess.”

Pelosi and Vice President Mike Pence spoke on Thursday, after which she said he agreed that the Trump administration would make changes to how migrant shelters are run, according to Texas Democrat Henry Cuellar.

“I would hope we’ve all had our say we all feel strongly about our points,” said Rep. Tom Cole (R-OK), the top Republican on the Rules Committee, in a House floor speech Thursday afternoon. “But let’s agree on the one thing we know can pass and the President would sign.

Progressive Democrats, meanwhile, are not happy – as they were pushing for significant changes to the Senate bill that would eliminate $145 million in Defense Department funding for border security.

“We should not be funneling more money to a rogue agency,” said Progressive Caucus leader Rep. Pramila Jayapal, adding “To be clear, I will not support the Senate bill.”

Let’s see how Pelosi’s party treats her now that she’s closed the door to impeaching Trump and given Senate GOP a win.

end

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

CNBC ran the headline: Mnuchin says US-China trade deal is 90% complete.  ESUs soared 0.5% on the news.  An hour later, CNBC revised its fake news.  Mnuchin said: “We were about 90% of the way” on a China trade deal.  (China allegedly then started renegotiating the deal, which led to its demise.)

Mnuchin: ‘We were about 90% of the way’ on China trade deal and there’s a ‘path to complete this’ https://www.cnbc.com/2019/06/26/mnuchin-says-us-china-trade-deal-was-90-percent-complete.html

After Powell finally jabbed Trump on Tuesday, the Mouth that Roared took another snipe at Powell.  While appearing on Fox Business, Trump said: “We should have Draghi instead of our Fed person.”  If US rates were negative, there would be revolution in the US and Trump would be finished.

Trump is extremely lucky that he is the firewall against extreme socialism.  Otherwise, he’d be toast in 2020.  Trump Fatigue – his juvenile rantings are becoming increasingly irritating – and reneging on the issue that propelled him from the bottom of the GOP pile to the presidency, illegal immigration, would ordinarily doom re-election.

Fox’s Tucker Carlson on Big Tech bias: “I’d bring them to heel by force tomorrow. The libertarian position, I think, we’re past that. Would you allow a power company to say we’re denying you electricity because you voted for someone we don’t like?”

Elizabeth Warren Says She’ll Decriminalize Crossing the Border

https://dailycaller.com/2019/06/25/elizabeth-warren-decriminalize-crossing-the-border/

 

Two FBI Agents from New York Are Harassing Trump Donors

Two Federal Bureau of Investigation (FBI) agents recently showed up to question a businessperson in another state about his/her brother’s possible donations to the Republican National Committee during the President Donald Trump campaign…

https://bigleaguepolitics.com/exclusive-two-fbi-agents-from-new-york-are-harassing-trump-donors/

 

New Photos Reveal Ocasio-Cortez Was Not Sobbing at Sight of Caged Migrant Children — She Was Sobbing in an Empty Parking Lot for a Photo-Op   https://www.thegatewaypundit.com/2019/06/new-photos-reveal-ocasio-cortez-was-not-sobbing-at-caged-migrant-children-she-was-sobbing-in-an-empty-parking-lot-for-a-photo-o

The media is panning the Democratic Candidate Debate as we write.  The candidates are interrupting each other more than Sean Hannity interrupts his guests.  There were only two mentions of Trump.

end

Well that about does it for tonight

 

I will see you on FRIDAY night

MY COMMENTARIES FROM THE 1 ST OF JULY THROUGH THE 9TH WILL BE SPORADIC

AND I WILL PROVIDE AT LEAST THE COMEX DATA

I AM VERY UPSET WITH THE FRAUD IN THEIR REPORTING.

H

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One comment

  1. […] JUNE 27/GOLD AND SILVER HOLD THEIR GROUND AFTER ANOTHER ATTACK BY OUR BANKER FRIENDS: GOLD DOWN $6.1… **Special Thanks to All […]

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