JULY 16 /GOLD DOWN $2.15 (COMEX TO COMEX) TO $1410.00 AND THEN DOWN ANOTHER 6 DOLLARS IN THE ACCESS MARKET//SILVER IS THE STAR OF THE SHOW TODAY UP 31 CENTS TO $15.64//TWO BIG STORIES TODAY: (1) DEUTSCHE BANK EXPERIENCING A HUGE RUN ON ITS BANK LOSING 1 BILLION DOLLARS A DAY; THEY ARE SEVERELY UNDER WATER IN THE GOLD AND SILVER DERIVATIVES//(2) A UAE TANKER DISAPPEARS GOING THROUGH THE STRAIT OF HORMUZ//THE POUND DROPS TO MULTI YEAR LOWS//TURKEY RESPONDS TO EU SANCTIONS //AND STRANGELY THEY DISCOVER A HUGE GAS FIND IN GREEK CYPRIOT WATERS: THAT SHOULD BE INTERESTING!//EPSTEIN AND MORE SWAMP STORIES FOR YOU TONIGHT///

GOLD: $1410.00  DOWN  $2.15 (COMEX TO COMEX CLOSING)

 

 

Silver

$15.64  UP 31 CENTS  (COMEX TO COMEX CLOSING)//

 

 

 

 

 

Closing access prices:

Gold : $1406.50

 

silver:  $15.55

 

It sure looks like our banker friends were not in a good mood today.  Silver took off on its own despite the fact that the crooks orchestrated a raid on gold The move on gold was to get silver down and it is my bet that Deutsche bank is under severe water.  It is experiencing a bank run whereby 1 billion dollars are removed from the company each day.  They are losing badly needed collateral and the price rise in both gold and silver did not help them.

The other big news is the disappearance of a UAE oil freighter in the Strait of Hormuz. That news was tempered with the story that Iran is ready to negotiate with the uSA on its missiles, and Yemen if the uSA removes sanctions.

 

stay tune…

YOUR DATA…

 

 

COMEX DATA

 

 

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

today RECEIVING 17/19

EXCHANGE: COMEX
CONTRACT: JULY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,411.400000000 USD
INTENT DATE: 07/15/2019 DELIVERY DATE: 07/17/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 16
661 H JP MORGAN 1
690 C ABN AMRO 2
737 C ADVANTAGE 17
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 19 19
MONTH TO DATE: 858

 

 

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 19 NOTICE(S) FOR 1900 OZ (0.2674 tonnes

TOTAL NUMBER OF NOTICES FILED SO FAR:  858 NOTICES FOR 85800 OZ  (2.6687 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

122 NOTICE(S) FILED TODAY FOR 6100,000  OZ/

 

total number of notices filed so far this month: 3763 for   18,815,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 11021 DOWN 186 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 9642 DOWN 1214

 

 

 

 

end

 

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A CONSIDERABLE  SIZED 1675 CONTRACTS FROM 218,418 UP TO 220,093 WITH THE 11 CENT GAIN IN SILVER PRICING AT THE COMEX.

TODAY WE ARRIVED CLOSER TO  AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS.

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

0 FOR JULY. 0 FOR AUGUST, 735 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  735 CONTRACTS. WITH THE TRANSFER OF 735 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 735 EFP CONTRACTS TRANSLATES INTO 3.675 MILLION OZ  ACCOMPANYING:

1.THE 11 CENT GAIN IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST 12 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//

20.805 MILLION OZ INITIAL STANDING FOR JULY

 

WE HAD SOME SHORT COVERING AT THE SILVER COMEX LAST NIGHT..AND ZERO SPREADING ACCUMULATION.

 

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

11,056 CONTRACTS (FOR 11 TRADING DAYS TOTAL 11,056 CONTRACTS) OR 55.28 MILLION OZ: (AVERAGE PER DAY: 1816 CONTRACTS OR 95.16 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  55.28 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 7.89% 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:          1212.89   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

JUNE 2019 , TOTAL EFP ISSUANCE:                                               265.38 MILLION OZ

RESULT: WE HAD A CONSIDERABLE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1675, WITH THE 11 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 735 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) .

 

TODAY WE GAINED A STRONG SIZED: 2410 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 735 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1787  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 11 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $15.33 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. 1.101 BILLION OZ TO BE EXACT or 157% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 122 NOTICE(S) FOR 6100,000 OZ OF SILVER

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

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

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 20.805 MILLION OZ
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

.

 

IN GOLD, THE OPEN INTEREST ROSE BY A STRONG 4805 CONTRACTS, TO 607,372 ACCOMPANYING THE  $1.85 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING LIQUIDATION HAS NOW COMMENCED FOR GOLD….

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS SIZED 11,260 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 11,260 CONTRACTS, DEC>  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 607,372.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE AN ATMOSPHERIC SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 16,065 CONTRACTS: 4805 CONTRACTS INCREASED AT THE COMEX  AND 11,260 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 16,065 CONTRACTS OR 1,606,500 OZ OR 49.96 TONNES.  YESTERDAY WE HAD A SMALL  GAIN OF $1.85 IN GOLD TRADING.AND WITH THAT TINY GAIN IN  PRICE, WE  HAD A HUMONGOUS GAIN IN GOLD TONNAGE OF 49.96  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER.

 

WITH RESPECT TO SPREADING:  WE WILL WITNESS THE MORPHING OF OUR SPREADERS OUT OF SILVER AND INTO GOLD AS THE JULY MONTH PROCEEDS INTO THE ACTIVE DELIVERY MONTH OF AUGUST. 

 

 

 

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 GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

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

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 JULY 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.” 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 89,249 CONTRACTS OR 8,924,900 oz OR 277.60TONNES (11 TRADING DAY AND THUS AVERAGING: 8113 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 11 TRADING DAY IN  TONNES: 277.60 TONNES

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

THUS EFP TRANSFERS REPRESENTS 277.60/3550 x 100% TONNES =7.81% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3204.43  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

JUNE 2019 TOTAL ISSUANCE:                   642.22 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 STRONG SIZED INCREASE IN OI AT THE COMEX OF 4805 WITH THE TINY PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($1.85)) //.WE ALSO HAD  A HUMONGOUS SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,260 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 11,260EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC  AND CRIMINALLY SIZED GAIN OF 16,065 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

11,260 CONTRACTS MOVE TO LONDON AND 4805 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 49.96 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED ACCOMPANYING THE  GAIN IN PRICE OF $1.85 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE HAS NOW COMMENCED WITH SPREADING ACCUMULATION IN GOLD AS  THE MONTH PROCEEDS/

 

 

 

we had:  19 notice(s) filed upon for 1900 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD DOWN $2.15 TODAY//

 

NO CHANGE IN GOLD INVENTORY AT THE GLD

 

INVENTORY RESTS AT 800.54 TONNES

 

 

 

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

 

SLV/

WITH SILVER UP 31 CENTS TODAY:

 

NO CHANGES WITH RESPECT TO SILVER INVENTORY  AT THE SILVER SLV:

 

 

 

 

 

 

/INVENTORY RESTS AT 332.518 MILLION OZ.

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER ROSE BY A CONSIDERABLE SIZED 1675 CONTRACTS from 218,418 UP TO 220,093 AND CLOSER TO THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..THE SPREADERS HAVE 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 JULY: 0 CONTRACTS FOR AUGUST: 0, FOR SEPT. 735  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 735 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI GAIN AT THE COMEX OF 1675  CONTRACTS TO THE 735 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2410 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 12.05 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  NOW 2.660 MILLION OZ FOR JUNE WITH JULY AT 20.805 MILLION OZ STANDING SO FAR.

 

 

RESULT: A CONSIDERABLE SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 11 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 735 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)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 4.57 POINTS OR 0.16%  //Hang Sang CLOSED UP 64.74 POINTS OR 0.23%   /The Nikkei closed DOWN 6.79 POINTS OR 0.034%//Australia’s all ordinaires CLOSED DOWN .15%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8777 /Oil UP TO 57.82 dollars per barrel for WTI and 65.36 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8777 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8787 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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

The truth behind China’s phony numbers

(zerohedge)

 

ii)China/

The gloves are coming off as China arrests another Canadian national..a teacher

(zerohedge)

4/EUROPEAN AFFAIRS

i)Deutsche bank/Germany

looks like a repeat of Lehman as Deutsche bank’s liquidity is running dry. However it is not the depositors who are leaving Deutsche bank but Hedge funds who are pulling their collateral out as they are fearing that they may be sucked into a default.  They are withdrawing 1 billion dollars per day from Deutsche bank. It is interesting that silver is skyrocketing northbound as we are well aware that DB has considerable shorts in this area

(zerohedge)

 

ii)UK

The pound drops to multi year lows on fresh worries on Brexit problems

(zerohedge)

iii)Italy

Not good for Salvini this morning as opposition parties are accusing Salvini of receiving campaign funds from the Russian government

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Iran/Iraq

This is a huge story:  somehow an UAE oil tanker suddenly disappears as it enters the Strait of Hormuz. For some reason it turned off its transponder as it suddenly veered into Iranian territorial waters.  This does not looks good.

story continuing…

(zerohedge)

ib)Iran/UK

Escalation time:  The UK sends a 3rd warship into the Gulf trying to protect ships travelling in the lane through the Strait of Hormuz. Khamenei vows to answer to the British for their “piracy”.  Still no word on the missing UAE oil tanker. With all of this very disturbing news, gold is whacked..makes sense!
(courtesy zerohedge)

ii)TURKEY/Russia

Erdogan celebrates the arrival of the Sam 400’s and then he states that Turkey should build new new weapons with Russia

(zerohedge)

iii)TURKEY’S RESPONSE to EU sanctions

 as expected, they reject EU sanctions as “not serious” as they will now send their 4th drilling ship near Cyprus. Interesting enough it seems that they made a gas discovery in the Greek Cypriot zone.  That should make matters interesting

(zerohedge)

6. GLOBAL ISSUES

The true story behind 5 G Networking and how China will no doubt succeed against the USA

(Mish Shedlock/Mishtalk)

7. OIL ISSUES

Oil falls as Trump signals Iran willing to negotiate.  He states that there will be no regime change.  Trump wants Iran out of Yemen and also to stop funding terrorism in Syria and Lebanon (through Hezbollah)

(zerohedge)

 

8 EMERGING MARKET ISSUES

 

i)VENEZUELA/

 

 

 

9. PHYSICAL MARKETS

i)Technical analyst James Turk explains why silver looks good

(James Turk/KingworldNews)

ii)Barrick has no chance of collecting this $5.83 billion arbitration award against Pakistan who are totally broke

(National Post/Toronto/GATA)

iii)Doorknob Maduro is selling off his jewel: gold as another tonne of gold heads east

(Bloomberg/GATA)

iv)Texas is now considering waiving al taxes on gold and silver stored at its state depository..and rightfully it should as gold and silver is money

(LewRockwell.com/GATA)

v)A must read as Chris Powell takes on Ted Butler.  Chris Powell is 1000% correct on this issue

(GATA/Chris powell/Butler)

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)Retail sales surge .7% month/month, the most in a year and these figures were no doubt fudged.

(zerohedge)

b)China continues throughout the world  to export its deflation, with the USA the prime recipient.

(zerohedge)

c)Hard data, industrial production slows down dramatically in June\\

(courtesy zerohedge)

d)TIC REPORT

Not good for the dollar as foreigners dump a record 216 billion USA.
(zerohedge)

iii)USA ECONOMIC/GENERAL STORIES

a)The USA has some serious issues as we now witness the 2nd trucking company visit the morgue

(zerohedge)

b)Another sign of trouble:  the all important Cass Freight Index is in negative territory for the 7th straight month

(zerohedge)

c)Trucking operations as well as trick and mortar operations are continuing to struggle as many as shuttering their doors

(courtesy Michael Snyder)

d)If these crooks cannot win then the uSA financial scene must be in big trouble;  JPMorgan trading revenues misses across the board

(zerohedge)

e)Goldman, a little better but still trading revenue tumbles(zerohedge)

SWAMP STORIES

a)Yesterday the left goes nuts as Trump urges the 4 members of the squad to leave the USA if they are not happy here!

(zerohedge)

b)Wexner (owner of Victoria Secret) swears that he did not know anything about Epstein’s penchant for pedophilia

(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 ROSE BY A HUGE SIZED 4805 CONTRACTS TO A LEVEL OF 607,372 ACCOMPANYING THE SMALL GAIN OF $1.85 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 11,260 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 11260 CONTRACTS: DEC: 0   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  11,260 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: 16,065 TOTAL CONTRACTS IN THAT 11,260 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 4805 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 ::  16,065 CONTRACTS OR 1,606,500 OZ OR 49.96 TONNES.

 

We are now in the NON  active contract month of JULY and here the open interest stands at 30 CONTRACTS as we GAINED 13 contracts.  We had 6 notices filed yesterday so we surprisingly  gained  19 contracts or 1,900 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. We usually witness queue jumping in silver immediately after first day notice but not gold.  We again witness queue jumping in the comex gold arena. The next big active month for deliverable gold is August and here the OI FELL by a 1633 contracts DOWN to 329,055. The next non active month is September and here the OI rose by 88 contracts up to 662.  The next active delivery month is October and here the OI rose by 1230 contracts up to 20,578.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 19 NOTICES FILED TODAY AT THE COMEX FOR  1900 OZ. (0.0590 TONNES)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A CONSIDERABLE SIZED 1675 CONTRACTS FROM 218,418 UP TO 220,093 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX GAIN OCCURRED WITH A 11 CENT GAIN IN PRICING.//FRIDAY.

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF JULY.  HERE WE HAVE 520OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 13 CONTRACTS.  WE HAD 4 NOTICES FILED YESTERDAY SO WE LOST 9 CONTRACTS OR AN ADDITIONAL 45,000 OZ OF SILVER WILL NOT  STAND AT THE COMEX…. AND THESE GUYS MORPHED INTO A LONDON BASED FORWARD AS WELL AS ACCEPTING A FIAT BONUS. LET US WAIT AND SEE IF THEY ARE SUCCESSFUL IN OBTAINING PHYSICAL METAL ON THAT SIDE OF THE POND. AFTER JULY WE HAVE THE NON ACTIVE MONTH OF AUGUST AND HERE WE GAINED 2 CONTRACTS UP TO 1134.  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI ROSE BY 1373 CONTRACTS UP TO 151,534 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 122 notice(s) filed for 610,000 OZ for the JUNE, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 152,625  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  263,586  contracts

 

 

 

 

 

INITIAL standings for  JULY/GOLD

JULY 16/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
265.37 oz
HSBC
Manfra
includes 2 kilobars
Deposits to the Dealer Inventory in oz  

nil

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
19 notice(s)
 1900 OZ
(0.0590 TONNES)
No of oz to be served (notices)
11 contracts
(1100 oz)
0.0342 TONNES
Total monthly oz gold served (contracts) so far this month
858 notices
85800 OZ
2.6687 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 1 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 2 gold withdrawal from the customer account:

i ) out of HSBC:  201.07  oz

ii) out of Manfra:  64.30 oz (2 kilobars)

 

 

total gold withdrawals; 265.37   oz

 

 

i) we had 0 adjustment today

FOR THE JULY 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 19 contract(s) of which 16 notices were stopped (received) by j.P. Morgan dealer and 1 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 JULY /2019. contract month, we take the total number of notices filed so far for the month (858) x 100 oz , to which we add the difference between the open interest for the front month of  JULY. (30 contract) minus the number of notices served upon today (19 x 100 oz per contract) equals 86,900 OZ OR 2.7029 TONNES) the number of ounces standing in this NON active month of JULY

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

No of notices served (858 x 100 oz)  + (30)OI for the front month minus the number of notices served upon today (19 x 100 oz )which equals 86,900 oz standing OR 2.7029 TONNES in this  active delivery month of JUNE.

We GAINED 19 contracts or an additional 1900 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus.

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 10.0438 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 2.7029  TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

total registered or dealer gold:  322,825.827 oz or  10.0412 tonnes 
total registered and eligible (customer) gold;   7,696,600.849 oz 239.39 tonnes

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 JULY

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
JULY 16 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 7053.12 oz
Brinks
HSBC

 

 

Deposits to the Dealer Inventory
599,065.300 oz
CNT

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
122
CONTRACT(S)
(610,000 OZ)
No of oz to be served (notices)
398 contracts
 1,990,000 oz)
Total monthly oz silver served (contracts) 3763 contracts

18,815,000 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 1 inventory movement at the dealer side of things

 

i) Into Dealer CNT: 599,065.300 oz

total dealer deposits: 599,065.300  oz

total dealer withdrawals: nil oz

we had  0 deposits into the customer account

into JPMorgan:  nil  oz

ii)into everybody else:  0 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:  0  oz

 

we had 2 withdrawals out of the customer account:

 

 

i) Out of Brinks: 953.980 oz

ii) Out of HSBC:  9094.140 oz

 

 

 

 

 

total 7053.12  oz

 

we had 0 adjustments :

 

 

 

total dealer silver:  92.592 million

total dealer + customer silver:  307.239 million oz

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 122 notice(s) filed for 610,000 OZ for the JULY, 2019 COMEX contract for silver

 

The total number of notices filed today for the JULY 2019. contract month is represented by 122 contract(s) FOR 610,000 oz

To calculate the number of silver ounces that will stand for delivery in JULY, we take the total number of notices filed for the month so far at 3763 x 5,000 oz = 18,815,000 oz to which we add the difference between the open interest for the front month of JULY. (520) and the number of notices served upon today (122 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JULY/2019 contract month: 3763 (notices served so far) x 5000 oz + OI for front month of JULY (520) number of notices served upon today (122)x 5000 oz equals 20,805,000 oz of silver standing for the JULY contract month.

WE LOST 9 CONTRACTS OR AN ADDITIONAL 45,000 OZ WILL NOT STAND AT THE COMEX AS THESE GUYS  MORPHED INTO A LONDON BASED FORWARDS AND AS WELL THEY ALSO ACCEPTING A FIAT BONUS. 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 122 notice(s) filed for 6100,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  44,557 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 72,076 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 72,076 CONTRACTS EQUATES to 360 million  OZ 51.4% 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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.19% ((JULY 16/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.48% to NAV (JULY 16/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -1.19%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.82 TRADING 13.22/DISCOUNT 4.37

END

And now the Gold inventory at the GLD/

JULY 16: WITH GOLD DOWN $2.15 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

JULY 15: WITH GOLD UP $1.85 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

JULY 12/WITH GOLD UP $5.20 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

JULY 11.WITH GOLD DOWN $5.25: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

JULY 10//WITH GOLD UP $11.65 A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER GOLD DEPOSIT OF 6.46 TONNES/INVENTORY RESTS AT 800.54 TONNES

JULY 9/WITH GOLD UP 70 CENTS, A HUGE PAPER WITHDRAWAL OF 2.89 TONNES WHICH WAS USED IN THE FUTILE RAID ON GOLD AND SILVER THIS MORNING//INVENTORY RESTS AT 794.08 TONNES

JULY 8/ WITH GOLD DOWN 35 CENTS A HUGE WITHDRAWAL OF 1.47 TONNES FROM THE GLD/INVENTORY FALLS TO 796.97 TONNES

JULY 5TH/WITH GOLD DOWN $19.50/NO CHANGES IN GOLD INVENTORY AT THE GLD//INV RESTS AT 798.44 TONNES

JULY 3// WITH GOLD UP $12.60 TODAY A SURPRISE WITHDRAWAL OF 1.76 TONNES FROM THE GLD//INVENTORY RESTS AT  798.44

 

JULY 2. WITH GOLD UP $18.90 A HUGE “PAPER” DEPOSIT OF 6.16 TONNES INTO THE GLD/INVENTORY RESTS AT 800.20 TONNES

JULY 1: WITH GOLD DOWN $24.70 A HUGE “PAPER GOLD” WITHDRAWAL OF 1.76 TONNES FROM THE GLD/INVENTORY RESTS TONIGHT AT 794.04 TONNES

JUNE 28/WITH GOLD UP $.90 TODAY: ANOTHER 2.05 TONNES OF PAPER GOLD REMOVED AND THIS GOLD WAS USED IN ATTACKING GOLD AT THE COMEX/INVENTORY RESTS AT 795.80 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JULY 16/2019/ Inventory rests tonight at 800.54 tonnes

*IN LAST 624 TRADING DAYS: 134.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 524 TRADING DAYS: A NET 31.46 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

end

 

Now the SLV Inventory/

JULY 16: WITH SILVER UP 31 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.518 MILLION OZ

JULY: 15  WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.518 MILLION OZ

JULY 12/WITH SILVER UP 10 CENTS: NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 332.518 MILLION OZ//

JULY 11/NO CHANGE IN SILVER INVENTORY

JULY 10/WITH SILVER UP 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.518 MILLION OZ//

JULY 9/WITH SILVER UP A SMALL 7 CENTS A GIGANTIC INVENTORY GAIN OF 4.026 MILLION OZ/ INVENTORY RESTS AT 332.518 MILLION OZ AND NOW IT SHOULD BE QUITE CLEAR THAT THE SLV ( AND GLD ARE FRAUDS)

JULY 8/WITH SILVER UP 7 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 328,492 MILLION OZ

JULY 5/WITH SILVER DOWN 32 CENTS WE STRANGELY HAD A HUGE INVENTORY GAIN OF 2,234 MILLION OZ//INVENTORY RESTS AT 328.492 MILLION OZ

JULY 3 WITH SILVER UP 10 CENTS A HUGE INCREASE IN INVENTORY..INVENTORY RESTS AT 326.151 MILLION OZ

JULY 2/WITH SILVER UP 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY/INVENTORY RESTS AT 323.330 MILLION OZ//

JULY 1/ WITH SILVER DOWN 16 CENTS: A SURPRISING DEPOSIT OF 936,000 OZ INTO THE SLV/INVENTORY RESTS TONIGHT AT 323.330 MILLION OZ/

JUNE 28/WITH SILVER UP 6 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 322.394 MILLION OZ//

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//

JULY 16/2019:

 

 

Inventory 332.518 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.28/ and libor 6 month duration 2.21

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

G0LD LENDING RATE: – .07

 

XXXXXXXX

12 Month MM GOFO
+ 2.20%

LIBOR FOR 12 MONTH DURATION: 2.21

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.01

end

 

 

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold Climbs, but Not Because of Trade Wars

Gold is moving higher and steadily so. It’s hold north of $1,400 is impressive and worrying at the same time. We have seen record flows of late, with long term safe haven demand rising a pace. It was Germany last week and China this week, the flow of disappointing indicators is now gathering pace.

China recorded the worst quarterly GDP number in 27 years. Gross Domestic Product (a poor measure of anything TBH) quarterly growth came in at just 6.2%, from 6.4% in the first quarter. German sentiment plummeted last week as inflation fears started to permeate throughout the economy.

China’s GDP growth problems are significant especially in light of the enormous debt load that has been built up there over the past 20 years. Her debt has grown to enormous proportions and all this while her economy is still heavily reliant on foreign demand. Domestic consumer demand is still languishing in the 40% of economic output range whereas more advanced economies, such as the US, have domestic demand up at 70%. This situation reminds us of that Buffet gem, “You only find out who is swimming naked when the tide goes out.”

As polarising as Trump and his trade-war with China are seen, his logic in taking China to task might actually be the US’s best move, especially if China’s ascendancy is allowed to develop unchecked, the thinking being it is better to act now while they can as opposed to later when they can’t.
But one can not help but see much of the trade-war debacle as part of a manufactured narrative to distract elements of the worlds nodding donkey like press away from the uncomfortable fact that our modern global economy is almost wholly based on a 10 -20 year old monetary experiment go awry; that is the global coordinated currency debasement by many of the worlds central banks – where interest rates are closely managed, money is freely printed and pumped, via opaque official sector operations, into debt and equity markets at record levels.

For example the Swiss Central Bank recorded a $55 Billion profit in 2017 and a $15 billion loss in 2018. Their balance of payments is a mere $1.7 billion, dwarfed by this perverse gain. They now have foreign assets of $700 billion, which roughly equates to their entire GDP. Circa 20% of these monies are invested in stocks such as Apple ($3.5 billion), Amazon ($2.6 Billion), and Microsoft ($2.7 Billion). The Japanese Central bank make the Swiss look like amateurs – they are now expected to be the largest single shareholder of their domestic stock market.

Ultimately you are witnessing a massive expropriation of wealth from the middle classes to the wealthiest – 40% of the bank of England’s money printing programme benefited the top 5%. These flows obfuscate the real demand and supply dynamics of the market – central banks are the baddest of bad actors. Using printed money to bid up the assets of the rich in order to mange outcomes is an utter perversion of capitalism. It blinds us to the opportunity cost of economic participation – real cost of borrowing, real expected returns. Worse still is that the money they use is created by devaluing taxpayers after tax savings – is effectively like a second tax. What happens when the market starts to fall, will these feckless un-elected central bankers be buying falling stocks? How will taxpayers react to their money being printed to buy assets that are falling? How would taxpayers like if they received a statement indicating how much money has been printed and the amount they have personally provided. This is not a victim-less crime.

So yes the trade war, while important, is in my humble opinion a mere distraction. Gold is being accumulated, by the wisest among us, as a safe haven asset to buffet the expected effects of a very ugly contraction, one that is man made in every respect. The dogs in the street look worried, and so they should be.

Buy, Transfer & Store Gold and Silver in Zurich, Switzerland – Six Months Free Storage & Complimentary Silver Eagle – Info Here

News and Commentary

Gold Steady as Investors Await U.S. Retail Sales Data

Venezuela Defies Sanctions to Sell $40 Million in Gold Reserves

Trump Sees Slowing Chinese Growth Pressuring Beijing on Trade

Going Back to the Gold Standard ‘could Crush U.S. Economy’ — Wells Fargo

James Turk – This Is Why The Price Of Silver Is About To Soar

Ted Butler: Alasdair Macleod Has the Wrong Whale

Why Silver Is Amazingly Cheap Here & A Sure Sign That a Major Pm Sector Bullmarket Is Starting…

Goldman Admits the Fed Has Lost Control

More Than A Precious Metal: How Platinum Improves Our World

The Illusion of the Keynesian Multiplier

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

15-Jul-19 1416.25 1412.40, 1127.76 1127.24 & 1255.93 1253.79
12-Jul-19 1405.60 1407.60, 1122.23 1122.14 & 1248.74 1251.50
11-Jul-19 1423.10 1413.75, 1135.06 1126.62 & 1262.72 1255.83
10-Jul-19 1395.45 1408.30, 1117.34 1126.78 & 1243.35 1252.68
09-Jul-19 1387.90 1391.55, 1113.51 1115.61 & 1239.39 1241.54
08-Jul-19 1404.90 1400.10, 1121.11 1119.38 & 1251.20 1248.19
05-Jul-19 1414.40 1388.65, 1126.43 1110.92 & 1255.99 1237.70
04-Jul-19 1415.25 1414.90, 1125.41 1125.55 & 1254.19 1254.59

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ii) Physical stories courtesy of GATA/Chris Powell

Technical analyst James Turk explains why silver looks good

(James Turk/KingworldNews)

Turk tells King World News why silver looks so good

 Section: 

7:43p ET Monday, July 15, 2019

Dear Friend of GATA and Gold:

GoldMoney founder and GATA consultant James Turk tonight gives King World News two reasons why silver may perform extraordinarily well in the near future: the crazy gold-to-silver ratio, which is at an extreme, and a chart pattern associated with sharp rises. Turk’s interview is headlined “This Is Why the Price of Silver Is about to Soar” and it’s posted at KWN here:

https://kingworldnews.com/turk-silvers-multi-decade-cup-handle-formation…

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

END

Barrick has no chance of collecting this $5.83 billion arbitration award against Pakistan who are totally broke

(National Post/Toronto/GATA)

Barrick wins $5.83B arbitration award against Pakistan but getting paid won’t be eas

 Section: 

By Gabriel Friedman
National Post, Toronto
Monday, July 15, 2019

The World Bank’s International Centre for the Settlement of Investment Disputes has ordered the Islamic Republic of Pakistan to pay US$5.83 billion to a Barrick Gold Corp. joint venture subsidiary for blocking a mining project nearly a decade ago.

It marks the latest in a string of high-value arbitration awards that Canadian resource companies have won against foreign countries in recent years, although collecting such awards is far from simple or guaranteed.

… 

Barrick, which jointly owns the subsidiary with Chilean copper company Antofogasta Plc, long ago dropped the project from most of its investor materials.

On Monday, both companies signalled an interest in settling the matter with Pakistan, which is set to receive billions of dollars in loans from the International Monetary Fund as it struggles to revive its economy. …

… For the remainder of the report:

https://business.financialpost.com/commodities/mining/i-dont-expect-barr…

END

Doorknob Maduro is selling off his jewel: gold as another tonne of gold heads east

(Bloomberg/GATA)

 

Venezuela defies sanctions to sell another $40 million in gold reserves

 Section: 

By Patricia Laya
Bloomberg News
Monday, July 15, 2019

Venezuela sold about $40 million worth of gold last week, defying numerous U.S. sanctions that threaten to cut off Nicolas Maduro’s autocratic regime, according to people with knowledge of the matter.

The central bank sold nearly one ton of gold July 12, lowering Venezuela’s dollar reserves to a near three-decade low of $8.1 billion, the people said. While sanctions increasingly cut off Venezuela from the global financial system, Maduro has been selling gold to firms in places such as the United Arab Emirates and Turkey, reaching approximately 24 tons of gold in sales since the beginning of April. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-07-15/venezuela-defies-sanc..

END

Texas is now considering waiving al taxes on gold and silver stored at its state depository..and rightfully it should as gold and silver is money

(LewRockwell.com/GATA)

Texas may waive taxes on gold and silver stored at state depository

 Section: 

From LewRockwell.com
Monday, July 15, 2019

Texas continues to take steps to make the state more friendly to gold and silver.

Earlier this week, the Texas Senate gave final approval to a pair of bills that that would exempt precious metals stored in the Texas Bullion Depository from certain taxes. By repealing taxes on gold and silver, the state will treat them more like money instead of commodities.

… 

Rep. Giovanni Capriglione (R-Keller) introduced House Joint Resolution 95 (HJR95) on March 1. The resolution places a state constitutional amendment authorizing the legislature to “exempt from ad valorem taxation precious metal held in a precious metals depository located in this state,” on the November ballot. Ad valorem taxes are levied on personal property.

With Senate approval, the proposed amendment will now go before the voters in November.

… For the remainder of the report:

https://www.lewrockwell.com/2019/07/no_author/texas-takes-another-step-t…

* * *

Join GATA here:

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Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019

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* * *

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:

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

END

A must read as Chris Powell takes on Ted Butler.  Chris Powell is 1000% correct on this issue

(GATA/Chris powell/Butler)

Ted Butler: Alasdair Macleod has the wrong whale

 Section: 

11:13p ET Monday, July 15, 2019

Dear Friend of GATA and Gold:

Silver market analyst Ted Butler today disputes GoldMoney research director Alasdair Macleod about who is really long and short silver on the New York Commodities Exchange.

Butler adds: “I’m sick and tired about hearing how JPMorgan is acting on China’s behalf, a favorite of the whack-job, tinfoil hat conspiracists.

… 

For one thing, would that make the manipulation run by JPMorgan any less illegal? Even if JPMorgan was manipulating prices in its role as the big silver and gold Comex short for the benefit of a large client, how would that make the manipulation kosher? All it would add are charges of treason against JPM for benefiting a foreign nation over the United States.

“But the real proof that JPMorgan is in it for its own benefit is because that’s how these boyz roll. JPMorgan putting the interests of its clients (any client) above its own has to be a joke. When has that ever occurred?”

But one does not have to be a “whack-job, tinfoil-hat conspiracist” to note that JPMorganChase officials have denied trading in silver for the firm’s own accounts, insisting instead that the firm has traded the monetary metals only for clients.

GATA certainly has no more access to the bank’s trading ledger than Butler has, but one needn’t be a “whack-job, tinfoil-hat conspiracist” to note that JPMorganChase often has acted for the U.S. government in the markets — for starters, it is a primary dealer in U.S. government securities. While it is easy to imagine the bank front-running government trades, it is also easy to imagine the bank making trades for foreign interests at the behest of the U.S. government, which, after all, is fully authorized by the Gold Reserve Act of 1934, as amended, to trade secretly and manipulatively in any market in the world through the U.S. Treasury Department’s Exchange Stabilization Fund.

Does Butler really know all agreements and understandings the U.S. government has with China’s government? Does he know every U.S. trading bank’s every relationship with China?

Yes, as Butler suggests, JPMorganChase is effectively an enormous criminal organization, frequently caught in and fined for wrongdoing. Yet the bank has not been shut down or broken up and still conducts U.S. government business. The U.S. government seems to need the bank.

So why can Butler not acknowledge the possibility that rigging the silver market is not the bank’s undertaking exclusively — that there might be other and even bigger wrongdoers in the markets? Does Butler really think the U.S. government is any more indifferent to the price of silver than it is to the price of gold?

After all, signing the Coinage Act of 1965, which demonetized silver in the United States, President Lyndon B. Johnson warned investors that if necessary the U.S. government would rig the silver market, dumping metal from the government’s stockpile to prevent the metal’s price from rising:

https://www.presidency.ucsb.edu/documents/remarks-the-signing-the-coinag…

Governments and central banks get discounts for secretly trading all futures contracts on major exchanges in the United States, the exchanges run by CME Group. The rules for those discounts require that a government or central bank “have a relationship with a CME Group clearning member”:

http://www.gata.org/node/18925

So how can Butler be sure that JPMorganChase is not involved in any of that trading — sure that all ideas of silver market rigging stop with JPMorganChase?

In any case Butler’s new commentary is headlined “Wrong Whale” and it’s posted at GoldSeek’s companion site, SilverSeek, here:

http://silverseek.com/commentary/wrong-whale-17689

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

end

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

 

end

 

Your early TUESDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/7 AM EST

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.87777/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8787   /shanghai bourse CLOSED DOWN 4.57 POINTS OR 0.16%

HANG SANG CLOSED UP 64.74 POINTS OR 0.23%

 

2. Nikkei closed DOWN 6.79 POINTS OR 0.034%

 

 

 

 

3. Europe stocks OPENED ALL GREEN EXCEPT GERMAN DAX/

 

 

 

USA dollar index UP TO 97.24/Euro FALLS TO 1.1223

3b Japan 10 year bond yield: FALLS TO. –.12/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.98/ 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:: 59.68 and Brent: 66.39

3f Gold UP/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 -.26%/Italian 10 yr bond yield UP to 1.59% /SPAIN 10 YR BOND YIELD UP TO 0.46%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.81: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.24

3k Gold at $1414.85 silver at: 14.43   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 12/100 in roubles/dollar) 62.78

3m oil into the 59 dollar handle for WTI and 66 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 107.98 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 .9865 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1072 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.26%

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 2.10% early this morning. Thirty year rate at 2.61%

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

6.  TURKISH LIRA:  UP  TO 5.7091..

Global Commentary not offered today

3A/ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 4.57 POINTS OR 0.16%  //Hang Sang CLOSED UP 64.74 POINTS OR 0.23%   /The Nikkei closed DOWN 6.79 POINTS OR 0.034%//Australia’s all ordinaires CLOSED DOWN .15%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8777 /Oil UP TO 57.82 dollars per barrel for WTI and 65.36 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8777 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8787 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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

The truth behind China’s phony numbers

(zerohedge)

“This Won’t End Well” – Lies, Damned Lies, & China’s Retail Sales Data

As far back as 2013China’s macro-economic data has been ‘questionably’ smoothed at best, and outright fake at worst.

Whether it is trade data (“never been faker” than in 2016) or aggregate production (2018’s massive GDP distortions), as economist Nouriel Roubini once asserted, China just makes its numbers up.

This month was no exception…

Following China GDP’s dramatic slowing to just 6.2% YoY – the slowest since record began – there was a delightful surprise to appease those who are wondering whether record credit injections and more easing measures than during the financial crisis had any effect at all

 

China retail sales and industrial production rebounded handsomely with the former spiking 9.8% YoY – the most since March 2018.

There’s just one thing though – the entire surge in retail sales (and industrial production) seems to have been triggered by an almost unprecedented sudden surge in auto sales to large (state-owned) enterprises…

A 17.2% YoY explosion in sales to SEOs (up from just 2.1% in May)  – the most since August 2011 – is almost too good to be believed (ok forget almost, it is too good to believe and seems like pure top-down manipulation of the data – whether sales were effectuated or not), echoing the kind of forced buying rush that occurred in 2009.

And that did not end well.

However, absent considerably more liquidity, forced credit injections, or a miracle, Auto sales are about to hit a wall as China’s credit impulse begins to slow…

Finally, no matter what China does to ‘flatter’ its data and project economic might in the face of Trump tariffs and a collapsing ponzi scheme, the single stat that is hardest to fake (and easiest to see reality) is the dramatic decline in the marginal productivity of debt. As John Rubino recently noted, China, like the US, is getting progressively less bang for each newly-borrowed buck. There’s a point at which new borrowing doesn’t just product less wealth but actually destroys it. The US and China are heading that way fast, while Europe might be there already.

As Evans-Pritchard, notes, the result is “maximum vulnerability.”

end

The gloves are coming off as China arrests another Canadian national..a teacher

(zerohedge)

China Arrests Another Canadian National As Feud With Ottawa Intensifies

In the latest indication that President Trump’s ‘truce’ with President Xi jinping was merely a hallow stalling tactic developed to usher in a brief reprieve for global market – after all, it becalmed investors swiftly sent US markets to new high all time high over 3,000 – it appears Beijing is reigniting its feud with Canada, a country that has been caught in the crossfire between the word’s two largest economies

According to the CBC, citing Global Affairs Canada, a Canadian citizen has been detained in Yantai along with a group of Chinese nationals and foreigners accused of running a drug ring.  China, where Canadian diplomatic officials have been allowed to meet with him.

China refused to release any other details about the detention, but this latest arrest happened around the same time that Chinese police detained several foreign students and teachers on drug-related charges in the eastern Chinese city of Xuzhou. At least four are Britons.

China

So far, Global Affairs has refused to comment on whether the arrest of the Canadian is related to the detention by Chinese police of seven foreign teachers and nine foreign students on drug allegations. Xinhua said three Chinese nationals were also detained.

Some of those arrested were teachers believed to work at the Education First language school in Yantai. The school expressed regret for a drug-related incident and said it is co-operating with authorities.

The school said in a statement on social media that classes have not been affected at its four English-language centers in Xuzhou.

Education First, a privately held Swiss firm that operates in 114 countries, pledged to improve the management and supervision of its foreign teachers to make sure they understand and obey Chinese laws.

Relations between Ottawa and Beijing have crumbled since Canadian police arrested Huawei CFO Meng Wanzhou after she landed at the Vancouver airport. In response, Beijing arrested a former Canadian diplomat and a business man who led guided tours of North Korea for thrill-seeking tourists. Both men have been charged with espionage.

Also, late last year, A Chinese court reopened the case of a Canadian national who had been convicted of drug deal and sentenced to hard labor. Instead, that individual might now face the death penalty.

And let’s not forget about the ‘harassment’ that an American executive received at the hands of the Chinese government last month, when a Chinese-American executive at Koch Industries was held and questioned for several days. The State Department has issued a warning about China’s “exit bans” against dual-national citizens.

end

China/USA

The rhetoric continue with this time China slamming the USA on its false claims

(zerohedge)

 

4/EUROPEAN AFFAIRS

 

UK

The pound drops to multi year lows on fresh worries on Brexit problems

(zerohedge)

Pound Tumbles To Fresh Multiyear Lows As ‘No Deal’ Brexit Fears Intensify

As fears of a ‘no deal’ Brexit intensify, the British pound tumbled on Tuesday to its weakest level against the dollar since April 2017, falling 0.8% – its biggest intraday drop since March – to $1.2419.

GBP

The pound has been weakening steadily as the Tory leadership race has progressed, amid fears that the frontrunner, Boris Johnson, has vowed to leave the EU on Oct. 31 with or without a deal.

END

Italy

Not good for Salvini this morning as opposition parties are accusing Salvini of receiving campaign funds from the Russian government

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iran/Iraq

This is a huge story:  somehow an UAE oil tanker suddenly disappears as it enters the Strait of Hormuz. For some reason it turned off its transponder as it suddenly veered into Iranian territorial waters.  This does not looks good.

story continuing…

(zerohedge)

UAE Tanker “Disappears” In Persian Gulf, US Blames Iran

The plight of a “mystery” UAE tanker that’s gone missing in the Persian Gulf now threatens to again send tensions with Iran soaring. Its location transmission signal was turned off Sunday as it drifted toward Iranian waters and it hasn’t been heard from since, with even United Arab Emirates officials staying silent about it. The AP reports:

Tracking data shows an oil tanker based in the United Arab Emirates traveling through the Strait of Hormuz drifted off into Iranian waters and stopped transmitting its location over two days ago, raising concerns Tuesday about its status amid heightened tensions between Iran and the U.S.

The report details that the Riah, a 58-meter oil tanker which operates frequently in the region, switched off its transponder for the first time in three months after 11pm on Saturday, based on tracking data.

 

File image: A fishing boat speeds past an oil tanker in the distance in Fujairah, United Arab Emirates. Source: AP

As of Monday “red flags” were raised as US officials began inquiring of the Riah’s status. CNN’s Pentagon correspondent Barbarra Starr had this to say based on intelligence sources: “US intel increasingly believes UAE tanker MT RIAH forced into Iranian waters over the weekend by #IRGC naval forces. UAE isn’t talking.”

However, this could be another case of hawkish US intelligence and defense officials hyping a false threat. Starr continued based on her source: “Some Gulf sources say ship simply broke down/towed by Iran. US says though no contact with crew. Last location Qesham Island.

Following the UK’s controversial and aggressive move to seize a tanker carrying 2 million barrels of Iranian oil of Gibraltar earlier this month, Tehran’s military has threatened to in turn intercept UK vessels.

This also comes after repeat pledges over the past year by Iran’s leaders following a US sanctions campaign that if Iran is blocked from exporting its oil out of the gulf then no country would be able to traverse the vital oil shipping lanes either.

developing…

end
Iran/UK
Escalation time:  The UK sends a 3rd warship into the Gulf trying to protect ships travelling in the lane through the Strait of Hormuz. Khamenei vows to answer to the British for their “piracy”.  Still no word on the missing UAE oil tanker. With all of this very disturbing news, gold is whacked..makes sense!
(courtesy zerohedge)

UK Sends 3rd Warship To Gulf As Iran’s Khamenei Vows To “Answer” British “Piracy”

Escalation appears back on in the Persian Gulf as the question of the “disappeared” UAE tanker remains unanswered, and as US intelligence officials point the finger at Iran’s IRGC for “forcing” the tanker into Iranian waters just before its tracking transponder mysteriously switched off over two days ago. 

And now Britain has announced it will send a third warship and a navy tanker to the gulf, even though the Ministry of Defence is downplaying tensions with Iran. “These long-planned movements do not reflect an escalation in the UK posture in the region and are routine,” the MoD said as it announced that the HMS Duncan, a type 45 frigate, is transiting to the region for general maritime security, also as the currently deployed HMS Montrose undergoes maintenance. The HMS Kent is also said to have been freshly deployed, though it will take much longer to reach the Middle East.

Prime Minister Theresa May’s office said Tuesday that Britain wanted to avoid escalation. “Escalation in the Gulf is not in anyone’s interests and we have repeatedly stressed that to the Iranians,” May’s spokesman, James Slack, told reporters in London. However, Iranian officials had just days ago warned Britain to avoid sending more warships, saying it’s playing a “dangerous game” in following the US lead of military build-up.

 

HMS Duncan file photo: Royal Navy 

The prime minister’s office remarks were in response to Iran’s supreme leader warning on Tuesday that Iran’s military is ready to retaliate if the UK doesn’t immediately release its tanker which was boarded and detained by Royal Marines off Gibraltar earlier this month. The UK had accused the Panamanian-flagged vessel carrying 2 million barrels of Iranian oil of seeking to violate EU oil sanctions on Syria. Tehran has accused Britain and its allies, chiefly the US, of “piracy”.

“The vicious British… have committed piracy and stolen our ship… God willing, the Islamic Republic will not leave these vicious acts unanswered,” Khamenei said in a speech in Tehran on state television.

He also pledged to “certainly continue” to renege on Iran’s commitments under the 2015 nuclear accord, calling out Europe for failing to protect Iran from US sanctions and failing to meet its own terms under the JCPOA:

“You did not carry out a single one (of your commitments), why do you want us to stick to our commitments?”Khamenei said.

“We have just started to decrease our commitments (in the deal) and this process will certainly continue,” he added.

A month ago Britain announced it would deploy 100 Royal Marines to the Persian Gulf in order to form a “rapid reaction force” to protect UK assets in the region.

 

UK deployed 100 elite Royal Marines to the Gulf last month following tanker attackers. File image.

The Sunday Times had described the deployment, which is likely already on the ground at this point, as follows: “Military sources said that 100 marines from 42 Commando, based near Plymouth, will form a rapid reaction force, Special Purpose Task Group 19. They will operate from ships patrolling the region from Britain’s new naval base in Bahrain.”

So ultimately despite PM May’s claims that Britain is attempting to deescalate, wanting to avoid conflict with Iran, by all appearances the UK is certainly escalating its force build-up in the region alongside its number one ally the United States.

END

TURKEY/Russia

Erdogan celebrates the arrival of the Sam 400’s and then he states that Turkey should build new new weapons with Russia

(zerohedge)

Erdogan Celebrates Delivery Of S-400s, Says Turkey Should Build New Weapons With Russia

With few other options at its disposal, Washington has been forced to threaten to withhold deliveries of F-35 fighters to Turkey in retaliation for Ankara’s purchase of a batch of Russian-made S-400 anti-air missiles.

But with several more shipments of the anti-aircraft missiles due by the end of the summer, Turkish leader Recep Tayyip Erdogan isn’t backing down. Rather, during remarks in the capital on Monday, he celebrated the arrival of the missiles, and said he would like to co-produce weapons with Russia, according to RT.

Erdogan

Speaking on the third anniversary of the failed coup attempt that set off one of the greatest purges in Turkish history, Erdogan promised that the newly-acquired S-400 weapons systems would be fully deployed in less than a year. Russian cargo planes began delivering the components on Friday, and more parts are expected to be delivered soon.

“And as of today, the eighth plane arrived and started being unloaded. Inshallah [God willing], we will be done by April 2020,” Erdogan said. Then, he said the Turkish government would “go much further” with a view to setting up “joint production with Russia.”

The purchase of the S-400 systems has elicited threats of retaliation from the US, which has vowed to cut Turkey, a fellow NATO member, off from sales of advanced weapons like the F-35, while also threatening sanctions (last year, Trump terminated a preferential trade agreement with Turkey in the spat over the S-400).

If Turkey continues to cooperate with Russia on things like arms purchases, expect Washington to impose sanctions and tariffs as Turkey tests the future of NATO.

END

TURKEY’S RESPONSE:

 as expected, they reject EU sanctions as “not serious” as they will now send their 4th drilling ship near Cyprus. Interesting enough it seems that they made a gas discovery in the Greek Cypriot zone.  That should make matters interesting

(zerohedge)

Turkey Rejects EU Sanctions As “Not Serious” – Will Send 4th Drilling Ship Near Cyprus

Perhaps to be expected, Turkey’s response to yesterday’s EU announcement of impending economic and political sanctions to be brought against Ankara has been to swiftly and immediately double down on drilling, while dismissing the crisis as “not serious”. Turkey has now sent its fourth oil and gas exploration ship to the eastern Mediterranean after European leaders condemned its drilling in EU-member Cyprus’ territorial waters. Turkish Foreign Minister Mevlut Cavusoglu responded:

“Calling the EU’s decision sanctions means taking it seriously. You shouldn’t do that, the decision was made to satisfy Greek Cypriots. These things don’t have any effect on us.”

 

Image source: Anadolu Agency

Turkey’s Anadolu Agency reports, “Turkey will send its fourth ship to the Eastern Mediterranean region to continue its exploration and drilling, the country’s energy and natural resources minister said on Tuesday. It will join the Fatih and recently deployed Yavuz, and the seismic vessel the Barbaros Hayrettin Pasa which has conducted exploration in the Mediterranean since April 2017.

“The MTA Oruc Reis seismic research ship, which has been conducting seismic surveys in the Black Sea and Marmara since August 2017, will be sent to conduct seismic surveys in the Mediterranean Sea,” Energy minister Fatih Donmez announced.

This was accompanied by FM Cavusoglu warning the EU that Turkey plans to increase its drilling and exploration activities in the East Mediterranean while “protecting the rights” of Turkish Cypriots. Ankara’s position is that it has the same rights as the Greek Cypriot government to drill in the region, which Turkey interprets as including waters that expand 200 miles from EU member Cyprus’ coast, brazenly asserting ownership over a swathe of the Mediterranean that even cuts into Greece’s exclusive economic zone.

On Monday, following a meeting of EU foreign ministers in Brussels, the European Union announced that it will bring sanctions against Turkey for violating Cyprus’ waters, which has also involved Turkey sending drones, F-16 fighters, and warships to escort the few drilling ships it’s already deployed off Cyprus.

Austrian Federal Minister for Europe, Integration and Foreign Affairs Alexander Schallenberg also announced Monday the extent of the planned sanctions:

“Today, we will adopt a number of measures against Turkey — less money, fewer loans through the European Investment Bank, freeze of aviation agreement talks. Naturally, other sanctions are possible.”

“We are fully behind Cyprus,” the EU official added while addressing the crisis.

Embedded video

EHA News@eha_news

📹 | The 4th ship heads to the East ‘s seismic research vessel “MTA Oruç Reis” has been dispatched to the East Med area. The ship was operating in the and the Marmara Sea since 2017.

Meanwhile, there are unverified reports that Turkey has struck major gas reserves, which if confirmed will only intensify the crisis. Per Turkey’s Ahval news

Turkey’s drill ship “Fatih” has found its first gas reserves in the potentially hydrocarbon rich area around the island of Cyprus, Turkish Cypriot newspaper Kıbrıs Postası reported on Monday. The Fatih is the first Turkish surveying vessel to begin drilling in the seas around the island. The second, “Yavuz”, began drilling operations in July.

A Greek Cypriot newspaper, Fileleftheros, reported earlier this week that the Fatih had struck gas reserves of up to 170 billion cubic metres in the waters off Paphos in Greek Cypriot-controlled southwest Cyprus. Kıbrıs Postası quoted a diplomatic source as saying the story was credible.

“It’s true that Turkey found something”, the newspaper quoted its “high level” source as saying. The source said a formal announcement would have to be made by the Turkish Petroleum Corporation.

Last week the Turkish drilling vessel Yavuz sailed to an area off Cyprus’ east coast — the second to follow a first drilling vessel, Fatih, which had already been exploring in Cypriot waters. Turkey has sent military assets to “protect” the vessels from interference.

Cyprus has long condemned Turkey’s aggressive oil and gas explorations as a “second invasion” in reference to the creation in 1974 of the breakaway Turkish Republic of Northern Cyprus after a military takeover.

END

6. GLOBAL ISSUES

The true story behind 5 G Networking and how China will no doubt succeed against the USA

(Mish Shedlock/Mishtalk)

 

UK, Philippines Side With Huawei: Why Is The US Behind On 5G?

Authored by Mike Shedlock via MishTalk,

In a global 5-G battle, Trump has forced nations to take sides. The EU, UK, and the Philippines will buck Trump.

The Wall Street Journal reports Philippines Has Chosen Sides: Not the U.S.

The U.S.-China technology war is raging around the world, but the Philippines is no longer torn. It is binding its telecommunications future to China’s.

The country got its first taste of next-generation 5G services in late June with gear supplied by Huawei Technologies Co. This month, a new carrier backed by state-owned China Telecommunications Corp. will begin rolling out a network largely designed in China, to be executed by Chinese engineers in the Philippines.

The moves are a blow to the U.S., which has in recent months pushed allies to shun Huawei. U.S. officials contend Chinese companies could be compelled to conduct espionage for Beijing.

Huawei, which has repeatedly said it wouldn’t spy for China, estimates its 5G equipment will spread across more than 130 countries, including in Europe. Huawei’s 5G system is up and running in South Korea and will be deploying in the United Arab Emirates this year. Both countries are U.S. allies.

Chinese companies’ dominant presence in Philippine telecom networks stands to move the Southeast Asian country further away from the U.S., its treaty ally—testing a relationship that has already grown strained.

No Technical Reason to Exclude Huawei

The Register reports MPs Find ‘No Technical Grounds’ to Exclude Chinese Giant.

The UK’s Science and Technology Select Committee said it can’t find any “technical grounds” for chopping Huawei out of the UK’s 5G and other telco networks, but said government should consider “ethical” issues and its relationship with “allies”.

The committee of Commons MPs wrote in a letter (PDF) to Minister of Fun [Secretary of State for Digital, Culture, Media and Sport] Jeremy Wright that Huawei’s involvement in the 5G network posed no techie issues, excepting, of course, the not-so-minor point that if the country pulls the Chinese firm’s kit from either its current or future networks, it could cause “significant delays”.

The UK will have to choose between bowing down to Trump and doing what it thinks best.

Huawei in Germany

Earlier this year, Angela Merkel Ignored Trumpian Pressure to ban Huawei in 5G auction.

“There are two things I don’t believe in,” Merkel said in an onstage discussion on Tuesday at the Global Solutions summit in Berlin. “First, to discuss these very sensitive security questions publicly, and second, to exclude a company simply because it’s from a certain country.’’

European carriers have warned governments that sidelining Huawei would delay fifth-generation networks by years.

The threat escalated when Nato’s Supreme Allied Commander in Europe, US General Curtis Scaparrotti, warned Germany that Nato forces would cut communications if Berlin were to work with Huawei.

NATO Threat

If the US will not share sensitive NATO data with Germany, so what?

Heck, it’s likely a good thing to not listen to US propaganda about Russia, Iran, or whatever.

What’s It Really About?

The US is just as likely to have security back doors as China, if not more so.

This isn’t really a security.

Rather, 5-G is Tied Up in Trump’s Trade War Disputes.

What do 5G and the Chinese telecom-gear maker Huawei have to do with the escalating trade war between the US and China? In a word: everything. 5G, the next generation of wireless, will not only allow you to download an entire season of Stranger Things in minutes, but also serve as the foundation to support the next generation of infrastructure, including billions of internet-connected devices powering smart cities, cool new VR and AR applications and driverless cars.

“The leader of 5G stands to gain hundreds of billions of dollars in revenue over the next decade, with widespread job creation across the wireless technology sector,” the Defense Innovation Board, a group of American business leaders and academics, said in a report for the US Department of Defense earlier this spring.

How’s the US Doing?

Wireless industry trade association the CTIA claims the US is “tied” with China. And it’s advocating for policy objectives to keep pushing the US toward dominance. But the Defense Innovation Board offered a more dismal outlook. In its report issued in April it offered a scathing assessment: “The country that owns 5G will own many of these innovations and set the standards for the rest of the world,” it said. “That country is currently not likely to be the United States.”

Why is the US Behind?

  1. China has invested massive amounts of money in companies such as Huawei to develop 5G technology, to great success.
  2. Chinese companies hold the majority of the world’s 5G patents. The Chinese government also controls China’s wireless service market and is pushing its three major providers, China Mobile, China Unicom and China Telecom, to combine efforts to develop a standalone 5G network that’ll commercially launch in 2020.
  3. There are no major US companies building and developing 5G telecom equipment. Thanks to decades of market consolidation, US companies once dominant in providing telecom gear have been sold to foreign companies.
  4. The defense department assessment is the US hasn’t been quick enough in making available the wireless spectrum that’s essential to deploying the service. And the spectrum the US is making available is the wrong kind.
  5. The US has been allocating a lot of so-called millimeter wave or mmWave spectrum, which can transmit huge amounts of data very fast. But signals can travel only over short distances, and interference like trees or even bad weather can disrupt service. The problem with using this spectrum is that it’s hugely expensive to build a network this way. And it’ll be impossible to blanket the nation with the service, because it’ll be too costly.
  6. The US needs midband and low-band spectrum in the mix. The only problem is that the prime spectrum that could be used for this service is already being used by the military. And getting government agencies to share spectrum with commercial entities is no easy task.

Trump Prepares to Ease Ban

On May 24, Venture Beat reported Trump’s Glib Approach to Huawei Invites Nasty Unintended Consequences.

The U.S. government has spent the last year and a half making the case that Huawei is an international security threat — a telecommunications hardware company that could help China’s government surveil communications and seize control of 5G-networked assets. But President Donald Trump suggested yesterday that this “very dangerous” company may not be such a threat after all as the U.S. might be willing to look the other way if China agrees to a trade deal.

Does this sound like pay-to-play politics? Of course. After the last two years, is anyone even slightly surprised that Trump would shrug off international security concerns to settle an economic dispute? Of course not.

Regardless of how this situation plays out, Trump’s glib attitude toward trade relations with Huawei is inviting highly unpleasant and long-lingering consequences. The most obvious: Foreign rivals now can plausibly argue that the U.S. targets individual companies to force political outcomes, which is effectively an economic form of hostage-taking.

No Trust

The current state of affairs is likely irrelevant. It can change on a whim for any reason or non-reason.

Companies may seek to install Huawei equipment only to be told days or even hours later they need to rip it out.

There is no reason to believe any decision Trump makes will stick.

You cannot run a business this way and you shouldn’t run a country this way either

END

7. OIL ISSUES

Oil falls as Trump signals Iran willing to negotiate.  He states that there will be no regime change.  Trump wants Iran out of Yemen and also to stop funding terrorism in Syria and Lebanon (through Hezbollah)

(zerohedge)

Oil Dives As Trump Says No Iran Regime Change; Pompeo Says They’re “Ready To Negotiate”

Oil dove sharply on Tuesday after back-to-back comments from President Trump and Secretary of State Mike Pompeo signaling a potential de-escalation of tensions in the region.

Earlier in the day President Trump reiterated during a Cabinet meeting, “We’re not looking for regime change,” adding “We want them out of Yemen.

Pompeo, seated next to Trump, said that Tehran is ready to negotiate over its missile program for the first time.

“For the first time … the Iranians said they are ready to negotiate on their missile program,” said Pompeo.

Trump added “They’d like to talk, and we’ll see what happens,” adding that Iran “can’t have a nuclear weapon.”

The comments sent oil tumbling.

Earlier this week Iranian Foreign Minister Mohammad Javad Zarif said that negotiations between Washington and Tehran would be possible if the Trump administration eases sanctions on the Islamic Republic. Zarif told NBC Nightly News in an interview that aired Monday that they’re “wide open” to talks if the sanctions are removed.

Mr. Zarif offered an initially high price for such negotiations — the halt of U.S. arms sales to both Saudi Arabia and the United Arab Emirates, two key U.S. allies in the Persian Gulf.

But the fact that he mentioned it at all potentially represents a change in policy. The country’s ballistic missile program remains under control of the Iranian paramilitary Revolutionary Guard, which answers only to Supreme Leader Ayatollah Ali Khamenei. –Washington Times

Embedded video

BBC HARDtalk

@BBCHARDtalk

Iran’s Foreign Minister @JZarif tells @TheZeinabBadawi “If there is a war then I do not think anybody will be safe in our region. But let us all try to avoid a war”

Last week the international agency that monitor’s Iran’s compliance with the 2015 nuclear deal confirmed that Iran had exceeded the authorized level of uranium enrichment – the country’s second major breach of the pact in recent weeks.

end

 

8 EMERGING MARKET ISSUES

 

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

Euro/USA 1.1223 DOWN .0037 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN EXCEPT GERMAN DAX

 

 

USA/JAPAN YEN 107.98 UP 0.075 (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 1.2427   DOWN   0.0089  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3051 UP .0002 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro FELL BY 37 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1223 Last night Shanghai COMPOSITE CLOSED DOWN 4.57 POINTS OR 0.16% 

 

//Hang Sang CLOSED UP 64.74 POINTS OR 0.23%

/AUSTRALIA CLOSED DOWN 0,15%// EUROPEAN BOURSES ALL GREEN EXCEPT GERMAN DAX

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN EXCEPT GERMAN DAX 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 64.74 POINTS OR 0.23%

 

 

/SHANGHAI CLOSED DOWN 4.57 POINTS OR 0.16%

 

Australia BOURSE CLOSED DOWN. 15% 

 

 

Nikkei (Japan) CLOSED DOWN 6.79  POINTS OR 0.34%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1413.90

silver:$15.41-

Early TUESDAY morning USA 10 year bond yield: 2.10% !!! UP 1 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.61 UP 0  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 97.24 UP 32 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.55% DOWN 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.12%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.49%//DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,61 DOWN 4 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 112 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.24% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.85% 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 TUESDAY

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

Euro/USA 1.1216  DOWN     .0043 or 43 basis points

USA/Japan: 108.23 UP .321 OR YEN DOWN 32  basis points/

Great Britain/USA 1.2413 DOWN .0102 POUND DOWN 102  BASIS POINTS)

Canadian dollar DOWN 3 basis points to 1.3051

 

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The USA/Yuan,CNY: AT 6.8763    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8822  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.7078 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.12%

 

Your closing 10 yr US bond yield UP 4 IN basis points from MONDAY at 2.13 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.64 UP 3 in basis points on the day

Your closing USA dollar index, 97.34 UP 41  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 45.48  0.60%

German Dax :  CLOSED UP 43.63 POINTS OR .35%

 

Paris Cac CLOSED UP 36.17 POINTS 0.65%

Spain IBEX CLOSED UP 53.50 POINTS or 0.57%

Italian MIB: CLOSED UP 26.03 POINTS OR 0.12%

 

 

 

 

 

WTI Oil price; 59.46 12:00  PM  EST

Brent Oil: 66.50 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    62.92  THE CROSS HIGHER BY 0.27 RUBLES/DOLLAR (RUBLE LOWER BY 27 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.24 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 :  57.90//

 

 

BRENT :  64.87

USA 10 YR BOND YIELD: … 2.12…

 

 

 

USA 30 YR BOND YIELD: 2.63..

 

 

 

 

 

EURO/USA 1.1210 ( DOWN 49   BASIS POINTS)

USA/JAPANESE YEN:108.29 UP .381 (YEN DOWN 38 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.39 UP 46 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2407 DOWN 108  POINTS

 

the Turkish lira close: 5.7150

 

 

the Russian rouble 62.98   DOWN 0.33 Roubles against the uSA dollar.( DOWN 33 BASIS POINTS)

Canadian dollar:  1.3076 DOWN 28 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8743  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8812 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.26%

 

The Dow closed  DOWN 23.53 POINTS OR 0.09%

 

NASDAQ closed DOWN 35.39 POINTS OR 0.43%

 


VOLATILITY INDEX:  12.75 CLOSED up .07

LIBOR 3 MONTH DURATION: 2.303%//libor dropping like a stone

 

 

 

FROM 2.410

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

TRADING IN GRAPH FORM FOR THE DAY//

Turbocharged Trannies Outperform As Semis Suffered; Crude & Cryptos Crash

If Trump is Tariff-Man, then Powell is Rocket-Man, sending stocks to the moon Alice (but today his chatter could not hold markets green)…

 

Trump tamped down stocks by raising concerns about the China trade truce, Powell promised to save the world in a speech in Paris… but it wasn’t enough…

 

 

S&P broke a 5-day win streak but Nasdaq was worst on the day with Trannies soaring…

 

 

FANG Stocks appears to have hit the wall again…

 

 

 

German stocks dominated Europe’s continued dip-buying bounce…

 

 

But Chinese stocks went nowhere after Monday’s mysterious panic bid…

 

 

Credit markets decompressed notably on the day (though rallied back a little in the afternoon)…

 

 

Treasury yields were up 2-3bps across the curve today but 30Y remains lower (in yield) on the week…

 

 

The dollar surged back up near last week’s Powell comments levels…

 

 

Cryptos were clubbed today as the Facebook Libra hearings raised the specter of further regulatory panic among US lawmakers…Ethereum has bloodbath’d down almost 30% since Friday…

 

 

With Bitcoin battered back below $10k, near one-month lows…

 

 

Big day for silver as crude prices were pummeled…

 

 

Oil prices plummeted as positive words from Pompeo on Iran derisked any geopol premium in crude…

 

 

Gold was down on the day but futures remained above $1400…

 

Silver is dramatically outperforming gold (after the ratio hit 26 year highs)

 

Finally, Deutsche is not Lehman, ok!

 

And Tesla is not Enron.

And 2019 is not 1998…

Trade accordingly.

end

 

i) Market trading/

 

MARKET TRADING/LATE MORNING

Stocks Slide As Trump Says “Long Way” From China Trade Deal

US equity market abruptly jerked lower after President Trump told reporters that the US remains “a long way” from a trade deal with China and that he could “impose more tariffs on China if he wanted.”

Trump also whined about The Fed and China’s relative power, noting that “Xi is effectively President and his own Fed Chair,” saying that rates in China “are exactly what Xi wants.”

Stocks are almost perfectly mirroring yesterday’s price action…

And the offshore yuan is tumbling…

Of course the market’s drop is only modest suggesting no matter what, hope is high in the new normal – no trade deal means moar Fed; trade deal means moar trade – win, win, right? This is easy.

END

 

 

LATE AFTERNOON

Stocks Rebound As Powell Reiterates Dovish Fed Outlook In Paris Speech

Largely echoing his testimony to Congress and his recent press conference dovishness, Fed Chair Powell reaffirmed that rate cuts will come “if appropriate,” sending stocks higher.

“In addition, issues such as the U.S. federal debt ceiling and Brexit remain unresolved. FOMC participants have also raised concerns about a more prolonged shortfall in inflation below our 2% target. Market-based measures of inflation compensation have shifted down, and some survey-based expectations measures are near the bottom of their historical ranges”

“Many FOMC participants judged at the time of our most recent meeting in June that the combination of these factors strengthens the case for a somewhat more accommodative stance of policy. We are carefully monitoring these developments and assessing their implications for the U.S economic outlook and inflation, and will act as appropriate to sustain the expansion”

And the algos love the news, pushing The Dow back into the green…

Speaking more broadly, Powell says U.S. economic developments affect rest of the world and vice versa:

“Pursuing our domestic mandates in this new world requires that we understand the anticipated effects of these interconnections and incorporate them into our policy decision-making”

“A legacy of the crisis is that policy makers now have a broader range of tested tools to turn to the next time the effective lower bound is reached. We must continue to assess additional strategies and tools to bolster our economies and meet our inflation and employment mandates”

What would we do without him?

END

ii)Market data/

Retail sales surge .7% month/month, the most in a year and these figures were no doubt fudged.

(zerohedge)

 

June Retail Sales Smash Expectations

Retail Sales growth has slowed since the Q1 rebound but June saw a notable surge, with the control group (used for GDP) surging 0.7% MoM (4.6% YoY – the most in a year)

 

Retail sales were higher for almost everything except:

  • Electronics and Appliance Stores -0.3%
  • Gasoline Stations -2.8%
  • Department Stores -1.1%

With non-store retail sales (Amazon etc.) soaring against the demise of department stores

 

So, over to you Mr.Powell, the consumer seems very comfortable and is spending… do we really need a rate cut?

end
China continues throughout the world  to export its deflation, with the USA the prime recepient.
(zerohedge)

Import/Export Prices Tumble As China Exports Most Deflation Since 2007

Following May’s drop into deflation for both import and export prices, June data was expected to show further contraction as China’s exported deflation washes across the global supply chain.

The impact appears to even worse as both import (-0.9% MoM vs -0.6% MoM exp) and export (-0.7% MoM vs -).2% MoM exp) prices both missed dramatically.

  • Import prices ex-fuels fell 0.3% m/m after falling 0.3% in May
  • Import prices ex-petroleum fell 0.4% m/m after falling 0.3% in May
  • Import prices ex-food and fuel fell 1.6% y/y in June
  • Industrial supplies prices fell 3.3% after rising 0.5% in May
  • Capital goods prices fell 0.2% m/m after falling 0.1% in May
  • Auto prices rose 0.1% m/m after no change in May
  • Consumer goods prices fell 0.1% m/m after no change in May

On a year-over-year basis, both import and export prices are deeper into deflation

 

With China exporting the most deflation since Aug 2007…

 

So much for the Trump-tariff-driven inflationary surge?

 end
Hard data, industrial production slows down dramatically in June\\
(courtesy zerohedge)

US Industrial Production Slows In June Despite Jump In Auto Manufacturing

After May’s modest rebound from a six-month downtrend, the plunge in global PMIs suggested that June US Industrial Production would decelerate and it did, printing unchanged from May to June.

However, both the headline and manufacturing sector saw year-over-year growth slow…

Under the hood:

  • Utilities fell 3.6% in June after rising 2.4% in May (Fed says utility output fell on milder-than-usual temperatures that reduced the demand for air conditioning)
  • Production of motor vehicles and parts rose 2.9% in June after rising 2.3%.

US Manufacturing rose 0.2% in May (its first MoM rise since Dec 2018) and June saw a better than expected 0.4% MoM rise but YoY manufacturing growth slowed to +0.4%…

For the second quarter, factory production declined at an annual rate of 2.2% for the first back-to-back declines since 2016.

Finally, notice the dramatic regime shift between US Industrial Production and the Dow Jones Industrial Stock Index.

Until 1987 – when Greenspan unleashed the Fed Put – the stock average traded at around 18x the Industrial Production index.

It now trades at 230x!! Intervention has consequences it seems.

END
TIC REPORT
Not good for the dollar as foreigners dump a record 216 billion USA.
(zerohedge)

Foreigners Dump US Treasurys, Liquidate A Record $216 Billion In US Stocks In 13 Consecutive Months

The latest TIC data for the month of May, released just after the close, showed that China continued to sell US Treasurys for the third straight month, bringing its total to just $1.11 trillion, down another $3 billion, and the lowest since May 2017…

… Even as Japan bought a whopping $37 billion in US paper in May, its largest monthly purchase since August 2013, and bringing its total to $1.101 trillion, just $9BN shy of China’s $1.110 trillion.

Meanwhile, in a surprising development, the UK – which has been aggressively buying US paper either for itself, or in proxy for other purchasers – saw its holdings jump once again, rising to $323.1 billion, an increase of $22.3 billion in the month.

Similar to Belgium and Euroclear, it is far more likely that this surge is simply the result of some offshore fund serving a sovereign, but based in the UK, is doing the buying. Whether it’s China or someone else, will be revealed in due course.

Yet despite the occasional purchaser, foreign official institutions (central banks, reserve managers, sov wealth funds) have seen their holdings of US TSYs slide by another $22 billion, the 9th consecutive drop in the holdings of foreign official institutions, and yet because the decline this May was smaller than the drop in May of 2018, the LTM net sales posted a modest drop.

Overall, May – and the past 12 months in general – were not good for US Treasurys, as foreigners, both public and private sold a total of $33.8 billion in US Treasurys and $1.4 billion in corporate stocks, offset by purchases of $15.1 billion in Agencies and $14.9 billion in Corporate bonds.

However, for yet another month, the real action was away from the bond market, and in US stocks, where TIC data showed that foreigners sold US stocks for a record 13th consecutive month and 153 of the past 16:

The aggregate $215 billion in sales in the past 13 months, is the largest liquidation of US equities by foreigners on record.

And while it is perhaps not surprising that in May foreigners dumped US stocks – after all it was the worst month for the S&P in 2019 – what is odd, is that in June and July, US stocks barely noticed the ongoing liquidation, and after several attempts at taking out 3,000 in the S&P, finally pushed right through in July, despite what we showed just this weekend continues to be relentless selling by both individual and institutional investors, and – now – also by foreigners.

So with the S&P at all time highs, are we going to find out in two months that foreigners continued to dump anything that wasn’t nailed down?

Which again begs the question, just how powerful are stock buybacks – which were the only official buyers of stocks in the past few months – to not only offset selling by virtually everyone else, but also push the market to new highs?

iii)USA ECONOMIC/GENERAL STORIES

The USA has some serious issues as we now witness the 2nd trucking company visit the morgue

(zerohedge)

“Trucking Apocalypse” Continues As 40-Year-Old California Trucking Company Shuts Down “Effective Immediately”

40 year old California trucking outlet Timmerman Starlite Trucking, Inc. is the latest victim in the “trucking apocalypse” and announced that it would be shutting down effective immediately, according to FreightWaves.

30 employees are expected to lose their jobs as a result. The company is based in a mid sized city about 100 miles east of San Francisco and had a fleet of 30 trucks, 150 trailers and 28 drivers.

The company’s owner cited “a tough freight market and environmental regulations” as reasons for the shut down. The company announced the shutdown on its Facebook page.

 

Owner Colby Bell said:

“We tried to provide a healthy work environment for our employees and give them the best wages and benefits we could. But in the end, the rates that were available did not support the cost structure needed to compensate our employees appropriately.”

Carriers have also been hit with rising costs and operational pressure over the past 2 years. Wage increases for drivers, combined with insurance renewal rates and more expensive equipment have made profitability a challenge.

Additionally, fuel rates have moved higher:

Fuel expenses, particularly in a tax- and regulation-loving state like California have also been way up in the past three years. Since Feb 2016, retail diesel prices in the state have increased from $2.29/gallon to $3.95/gallon, roughly equivalent to $.25 per mile. At $1.49 per mile, this will cost a carrier 17% of their operating profits if they aren’t on a fuel-surcharge program.

Larger carriers are able to recover most, if not all of this in the form of a fuel surcharge. Unfortunately, Starlite was likely too small to have much leverage of their shipper relationships to do so.

Recall, just days ago we documented  that regional truck carrier LME “suddenly and abruptly” shut its doors. 

The company is a regional carrier based in Minnesota that operated throughout the Midwest. The company had terminals in 30 locations across the U.S. and through interline agreements services all of North America. It also worked with major companies like 3M, John Deere and Toro.

The company reportedly included “over 600 men and women” and has been listed as having 382 power units and 1,228 trailers, with 424 truck drivers.

end
Another sign of trouble:  the all important Cass Freight Index is in negative territory for the 7th straight month
(zerohedge)

Recession Looms: Cass Freight Index Negative For 7th Month

Authored by Mike Shedlock via MishTalk,

According to Cass, “Freight shipments signal economic contraction”.

The Economic Outlook from Freight’s Perspective is not promising.

  • With the -5.3% drop in June following the -6.0% drop in May, we repeat our message from last month: the shipments index has gone from “warning of a potential slowdown” to “signaling an economic contraction.”
  • May and June’s drops are significant enough to pose the question, “Will the Q2 ’19 GDP be negative?”
  • We acknowledge that all of these negative percentages are against extremely tough comparisons; and the Cass Shipments Index has gone negative before without being followed by a negative GDP.
  • The weakness in spot market pricing for many transportation services, especially trucking, is consistent with the negative Cass Shipments Index and, along with airfreight and railroad volume data, strengthens our concerns about the economy and the risk of ongoing trade policy disputes. Weakness in commodity prices and the decline in interest rates have joined the chorus of signals calling for an economic contraction.
  • We are concerned about the severe declines in international airfreight volumes (especially in Asia) and the ongoing swoon in railroad volumes, especially in auto and building materials.
  • We see the weakness in spot market pricing for transportation services, especially in trucking, as consistent with and a confirmation of the negative trend in the Cass Shipments Index.
  • As volumes of chemical shipments have lost momentum, our concerns of the global slowdown spreading to the U.S., and the trade dispute reaching a ‘point of no return’ from an economic perspective, grow.

European Airfreight

European airfreight volumes have been negative since March 2018, but only by a small single-digit margins (-1% to -3%), until November 2018. Unfortunately, since then, volumes have started to further deteriorate. Our European Airfreight Index was down a concerning -7.2% in April, only down -2.6% in May, before dropping -7.9% in June. Although by itself distressing, it’s the Asian data that has become the most alarming.

Asia Pacific Airfreight

Asian airfreight volumes were essentially flat from June to October 2018, but have since deteriorated at an accelerating pace (November -3.5%, December -6.1%, January -5.4%, February -13.3%, March -3.6%, -10.2% in April, -8.5% in May, and -8.6% in June).

Shanghai Airfreight

If the overall volume wasn’t distressing enough, the volumes of the three largest airports (Hong Kong, Shanghai, and Incheon) are experiencing the highest rates of contraction. Even more alarming, the inbound volumes for Shanghai have plummeted. This concerns us since it is the inbound shipment of high value/low density parts and pieces that are assembled into the high-value tech devices that are shipped to the rest of the world.

Free Markets

It is extremely refreshing to see analysis giving free trade a big plug. And in the face of Trumpian foolishnees, it is all the more refreshing.

This is what Cass had to say:

The data underlying economic history is clear: the more unrestricted and robust global trade is, the more prosperous the global population becomes. Open markets of free trade are the greatest method to efficiently allocate resources and ensure that the best quality goods made by the most efficient producers are available to everyone. Unrestricted global trade lifts hundreds of millions, even billions, of the world’s population out of poverty. ‘Protectionism,’ like so many government regulations and programs, frequently produces results that are the exact opposite of the intended outcome.

Shipment Index vs GDP

At first glance, the GDP for the 1st quarter seems very inconsistent with overall freight volumes. Using the Cass Shipments Index as a predictive proxy, we did not expect the BEA to report 3.2% as its initial estimate or 3.1% as its first revision. We won’t be surprised if the final report includes further downward revisions.

In the methodology used to calculate GDP, all increases in inventory are counted as additions to the GDP, all imports are counted as a negative to the GDP and all exports are counted as a positive to the GDP. Backing out the rising inventories, slowing imports and slightly higher exports, reduces the Q1 GDP to less than 1.5%.

Inventories

Inventories Piling Up

I agree with the Cass take on inventories.

Yet, the July 10 GDPNow Assessment of 1.4% includes a -1.01 adjustment for inventories.

Thus, the “Real Final Sales” estimate by the GDPNow model is 2.4%.

Real Final Sales is the true bottom line assessment of the economy.

Why a Negative Adjustment?

But why does GDPNow have a negative inventory build?

I have been struggling with that all quarter.

On July 3, I commented the Manufacturing Sector is Rolling Over But Inventories Keep Piling Up.

Inventory Wildcard

If inventories are somehow negative, real final sales, will be higher than the baseline report.

The reverse is also true. If the baseline GDP number is 1.3% and CIPI (Change in Private Inventories) ass 1.0%, we are talking a bottom line estimate of 0.3%, more in line with what Cass expects.

We will have a better idea tomorrow when a slew of economic reports on inventories, industrial production, and retail sales.

Bottom Line

Cass concludes with this bottom line assessment: “More and more data are indicating that this is the beginning of an economic contraction. If a contraction occurs, then the Cass Shipments Index will have been one of the first early indicators once again.”

END
Trucking operations as well as trick and mortar operations are continuing to struggle as many as shuttering their doors
(courtesy Michael Snyder)

As Wall Street Celebrates Soaring Stocks, Companies Are Literally Shutting Down All Over America

Authored by Michael Snyder via The Economic Collapse blog,

How long can the stock market possibly stay completely disconnected from economic reality?

On Monday, the Dow Jones Industrial Average rose just 27 points, but that was good enough to push it to yet another new all-time record high.  Investors have been absolutely thrilled by the extremely impressive bull run that we have witnessed so far in 2019, but there is no way that this is sustainable.  Wall Street may be celebrating for the moment, but meanwhile all of the hard economic numbers are telling us that we have now entered a new economic slowdown.  Just like in 2008, it appears to be inevitable that the party on Wall Street is about to hit a brick wall, but nobody should be surprised when it happens.  Everywhere around us there are signs of economic trouble, and right now companies are literally shutting down all over America.

For example, just take a look at what is happening to the trucking industry.  I recently warned about the trucking “bloodbath” that was unfolding, and over the past week it has greatly accelerated.

On the 12th of July, we learned that trucking giant LME had abruptly shut down.  The following comes from Zero Hedge

Less-than-truckload carrier LME has reportedly “suddenly and abruptly” shut down its operations, according to FreightWaves.

The company is a regional carrier based in Minnesota that operated throughout the Midwest. The company had terminals in 30 locations across the U.S. and through interline agreements services all of North America. It also worked with major companies like 3M, John Deere and Toro.

The company reportedly included “over 600 men and women” and has been listed as having 382 power units and 1,228 trailers, with 424 truck drivers.

Then today we learned that Timmerman Starlite Trucking suddenly shut down without any notice

40 year old California trucking outlet Timmerman Starlite Trucking, Inc. is the latest victim in the “trucking apocalypse” and announced that it would be shutting down effective immediately, according to FreightWaves.

30 employees are expected to lose their jobs as a result. The company is based in a mid sized city about 100 miles east of San Francisco and had a fleet of 30 trucks, 150 trailers and 28 drivers.

The company’s owner cited “a tough freight market and environmental regulations” as reasons for the shut down. The company announced the shutdown on its Facebook page.

Of course those two trucking companies are definitely not the only victims of this “bloodbath”.  According to Business Insider, ALA Trucking, Williams Trucking, Falcon Transport and New England Motor Freight have also completely ceased operations in 2019.

If the U.S. economy really was “booming”, this would not be happening.

Meanwhile, major retailers continue to fall like dominoes.  Charming Charlie is headed for bankruptcy and will be closing all of their stores

Fashion accessory retailer Charming Charlie will close all its stores after going bankrupt for the second time in less than two years. More than 3,000 full- and part-time employees could lose their jobs.

Charming Charlie Holdings Inc. filed for Chapter 11 protection in Delaware with plans for going-out-of-business sales at about 261 stores, according to court documents. The chain expects the liquidation to take about two months.

In addition, we just learned that Fred’s will be shuttering another 129 stores as it desperately attempts to stay alive…

Troubled discount merchandiser Fred’s has announced another round of store closures.

The chain will shutter 129 stores, leaving it with about 80 locations, USA Today reported. Going-out-of business sales have already begun.

Not too long ago, I went to a going out of business sale at a local store that was closing down, and it was definitely depressing.  At one time the shelves had been packed full of products, but by the time I got there people were clawing through the small handfuls of deeply discounted merchandise that still remained.

Sadly, such scenes are being repeated over and over again all around the country.  In fact, things are already so bad that even Manhattan retailing legend Barneys is likely headed for bankruptcy

Barneys may be on the cusp of filing for bankruptcy protection as the luxury Manhattan retailer contends with high rents and shoppers going online, according to two media reports.

Reuters, citing unnamed sources, reported Saturday that Barneys has tapped law firm Kirkland & Ellis LLP and is weighing a potential bankruptcy filing among other options that could occur in the coming weeks.

The all-time record for store closings in a single year was set in 2017 when 8,139 stores shut down.

According to a brand new report that was just released, we are on pace to absolutely shatter that old record.

In fact, Coresight says that the number of store closings in the U.S. could hit 12,000by the end of this year…

The “going-out-of-business” sales and liquidation of other brands is expected to continue. Coresight estimates closures could reach 12,000 by the end of the year, the report said.

In The Beginning Of The End, I painted a picture of a future in which America’s communities would be littered by boarded up stores that had been abandoned by major retailers.

Now it is happening right in front of our eyes.

Everything that is taking place in the “real economy” makes perfect sense, and unfortunately our economic problems are likely to accelerate significantly in the months ahead.

What doesn’t make sense is what we are witnessing on Wall Street.

There is no way that stock prices should be rising like this, but financial bubbles don’t typically follow rational patterns.

Instead, they usually just keep going until something comes along to end them.

And considering everything that is going on in the world right now, that “something” could definitely arrive sooner rather than later.

END
If these crooks cannot win then the uSA financial scene must be in big trouble;  JPMorgan trading revenues misses across the board
(zerohedge)

JPMorgan Trading Revenues Miss Across The Board, Cuts Net Interest Income Outlook; Shares Slide

Just like yesterday’s Q2 earnings season-opening report by Citigroup, JPMorgan beat on the top and bottom line, and the stock initially spiked higher. And just like yesterday, JPMorgan reported poor results in two core segments, with revenue in trading and investment banking missing expectations, hitting the stock. Finally just like Citi, JPM disappointed on Net Interest Income, cutting its NII guidance from $58 billion to $57.5 billion. The stock, just like Citi yesterday, initially jumped but then slumped lower as the second bank to report earnings left a bitter taste in investors’ mouths.

First, the highlights. JPMorgan reported Q2 EPS of $2.82, and adjusted EPS of $2.59, which excluded $0.23 in income tax benefits, both of which beat the consensus estimate of $2.50, on “managed” revenue of $29.57BN, which also beat expectations of $28.9 billion, and was 4% higher than a year ago. Net income at the largest U.S. bank 16% rose to $9.65 billion from $8.32 billion. Net interest income was $14.5 billion, up 7.5% y/y, and in line with the estimated $14.56 billion.

And while JPMorgan paraded with its “Fortress balance sheet”, what traders cared the most about was results from JPM’s Corporate and Investment Bank, which disappointed as the main divisions missed expectations, to wit:

 

  • Total markets revenue was $5.4B was flat YoY including a gain from the IPO of a strategic investment in Tradeweb; However, excluding this one time gain, revenues was down 6% YoY
  • FICC sales & trading revenue was $3.69 billion, up 6.9% from the prior year, and beating the estimate of $3.33 billion. This number however included a gain from the IPO of a strategic investment in Tradeweb; excluding this gain, revenue was down 3% YoY
  • Investment banking revenue was just $1.78 billion, down a sharp -8.9% y/y, and below the estimate of $1.81 billion
  • Equities sales & trading revenue also missed, dropping 12% Y/Y to $1.73 billion, and also missing the estimate of $1.82 billion; Equity Markets revenue was down 12% YoY, primarily driven by derivatives, compared to a strong prior year.
  • Securities Services revenue of $1.0B, down 5% YoY, with deposit margin compression and a business exit partially offset by increased client activity
  • Treasury Services revenue also dropped, sliding 4% to $1.1BN, with deposit margin compression largely offset by higher balance and fee growth.

Meanwhile, as most revenue components declined, expenses of $5.5BN were higher 2% Y/Y, the opposite of what Citi reported yesterday.

JPM didn’t give much color on the drops in investment banking revenues, simply noting that it reflects “lower fees across products.” This is disappointing as Citi yesterday reported an increase in debt underwriting, so analysts might want to get some answers from Dimon on this.

Here’s what Dimon did say on the firm’s trading and investment banking results:

“Markets performance was relatively steady on slightly lower client volume, probably due to slightly higher global macroeconomic and geopolitical uncertainties. Although the global wallet was down, year-to-date the Firm ranked #1 in Global IB fees and gained share across products and regions, with particular strength from Commercial Banking, where gross IB revenue was up 8% for the first half of the year.”

Yet while markets and trading disappointed, JPM’s consumer-focused unit benefited from seemingly strong U.S. households: Dimon highlighted an 8% increase in credit card loans while deposits climbed 3%.

That said, the bank reported a roughly 2% drop in average loans, to $467.2 billion. Average loans at its home lending unit were responsible for the fall – those fell about 7% to $224.7 billion.

At the same time, JPM’s 2Q provision for credit losses was $1.15 billion, down -5% y/y, and below the estimated $1.52 billion.

“We continue to see positive momentum with the U.S. consumer – healthy confidence levels, solid job creation and rising wages – which are reflected in our” consumer unit, Dimon said.

It is worth noting that as Bloomberg notes, the consumer unit was the only part of the bank to report a year-on-year increase in net income.

Looking at JPM’s commercial bank, revenue also dropped 5% to $2.21 billion, worse than the flat print expected, so expect even more questions what caused the unit to sputter. The bank in the press release blames a strong year-ago quarter and lower net interest income on deposit balances.

Meanwhile, like Citi, JPM kept overall costs in check, as non-interest expenses came in just 2 percent higher at $16.3 billion, something analysts expected. The bank says the slight uptick came from “continued investments in the business” and higher auto lease depreciation.

And speaking of cost-cuts, JPM cut about 1,000 jobs in the quarter, with headcount now coming in at 254,983 in the quarter, and Bloomberg notes that while JPMorgan has been opening branches in a few new cities around the country, they’re closing them just as fast in others, and total branches finally dropped below the 5,000 line – ending the quarter with just 4,970 branches, below the 5,028 branches they had at the end of the first quarter. 

Finally, the nail in the coffin to the Q2 JPM results was the bank’s full year Net Interest Income outlook, which was cut from $58 billion to $57.5 billion, as declining rates cut half a billion dollars from the bank’s total revenue, and confirming that if the Fed does follow Europe into NIRP (or even merely ZIRP), it is the banks that will get hit first.

What all this meant for investors: the stock initially popped, but has since dropped as markets were concerned by the revenue declines and misses in the bank’s trading group, the cut in Net Interest Income forecasts, and the lack of a cost-cutting program that is as aggressive as that undertaken by Citi.

The full Q2 – if somewhat sparse – earnings presentation is below (pdf link)

END

Goldman, a little better but still trading revenue tumbles

(zerohedge)

Goldman Prop Trading Saves The Day As FICC, iBanking Revenues Tumble; Average Wage Drops

Moments after JPM disappointed with poor fixed income and equity trading revenue (and cut its net interest income forecast), Goldman reported its own Q2 results, which at least on the surface, were fractionally better. The bank reported  Q2 net revenues of $9.46 billion, up 0.4% Y/Y, and better than the $8.9 billion expected, generating net earnings of $2.42 billion, and EPS of $5.81, also above the $4.92 expected, if below the $5.98 for Q2 2018.

This is what DJ Sol, also known as the bank’s CEO, David Solomon, said: “We’re encouraged by the results for the first half of the year as we continue to invest in new businesses and growth to serve a broader array of clients. Given the strength of our client franchise, we are well positioned to benefit from a growing global economy. And, our financial strength positions us to return capital to shareholders, including a significant increase in our quarterly dividend in the third quarter.”

With Goldman still mostly reliant on its trading desk to generate revenue, traders predictably focused instantly on Goldman’s trading results which were mixed. Here is the breakdown of the key Q2 trading results:

  • Total trading revenue at $3.48 billion beat expectations, despite falling -2.5%. Equities revenue also exceeded forecasts, while FICC revenue missed.
  • FICC sales & trading revenue $1.47 billion, down -13% y/y, missing consensus estimates
  • Equity sales & trading revenue $2.01 billion, +6.3% y/y, beating the estimate of $1.79 billion; This was the second highest quarterly performance in four years.
  • Investment banking revenue of $1.86 billion, tumbled -8.9% y/y, yet was better than the estimated $1.83 billion; debt underwriting disappointed with a 20% drop – overall equity underwriting was $482 million and debt underwriting was $605 million. the backlog decreased slightly QoQ, reflecting completion of equity underwriting transactions, partially offset by higher debt underwriting backlog and slightly higher advisory backlog.

And a more creative way of showing the company’s Q2 earnings:

While Goldman’s trading continued to be depressed, it was the surprising surge in Goldman’s prop trading group (light blue below) – Investing and Lending – which is Goldman’s principal investments in equity and debt, was up 16% Y/Y that more than made up for the continued decline in institutional flow debt and equity trading as shown in the chart below.

In fact, speaking of Goldman prop’s $2.53 billion in revenue, this was the highest quarterly performance in eight years, and included record quarterly net interest income in debt securities and loans of $872 million. Some more details on this outperforming segment:

  • Net revenues in Investing & Lending were $2.53 billion for the second quarter of 2019, 16% higher than the second quarter of 2018 and 38% higher than the first quarter of 2019.
  • Net revenues in equity securities were $1.54 billion, 20% higher than the second quarter of 2018, primarily reflecting  significantly higher net gains from investments in public equities.
  • Net revenues in debt securities and loans were $989 million, 10% higher than the second quarter of 2018, reflecting significantly higher net interest income. The second quarter of 2019 included net interest income of $872 million.

In other words, while Goldman’s core trading ops did ok, it was the investors among Goldman’s traders (those which used to be “banned” on Wall Street  by the Volcker Rule), that helped Goldman beat overall Q2 results.

Meanwhile, commenting on the 13% decline in Q2 FICC revenue, Goldman said that the “operating environment was characterized by generally low levels of volatility and low client activity during the quarter”. 2Q19 net revenues decreased YoY, “reflecting significantly lower net revenues in interest rate products and currencies and lower net revenues in credit products,  partially offset by higher net revenues in commodities and mortgages.” Goldman said it remains “focused on expanding our addressable market and broadening client relationships while investing in automation and platforms to improve efficiency.”

Elsewhere, Goldman’s provision for credit losses was $214 million for the second quarter of 2019, 9% lower than the second quarter of 2018 and 4% lower than the first quarter of 2019. The decrease in provision for credit losses compared with the second quarter of 2018 reflected lower provisions related to purchased credit impaired loans.

With the bank still ramping up its “Marcus” retail bank, it announced that deposits rose by 8% to $166 billion in the quarter. The firm has been seeking consumer deposits aggressively, offering online banking and other retail services. Deposits have been the cheapest form of funding for the biggest banks as the Fed’s recent rate hikes failed to filter down to deposit rates much.

Some other notable highlights:

  • In Investment Management, assets under supervision increased $61 billion during the quarter to a record $1.66 trillion.
  • The firm received a non-objection from the Federal Reserve Board related to its CCAR 2019 capital plan, which includes up to $7.00 billion in common share repurchases and $1.80 billion in total common stock dividends
  • The company announced a 47% increase in the quarterly dividend to $1.25 beginning in the third quarter of 2019

That about covers the revenue side; what about the expense side?

Goldman reported, Operating expenses of $6.12 billion for Q2, essentially unchanged compared with the second quarter of 2018 and 4% higher than the first quarter of 2019. The firm’s efficiency ratio for the first half of 2019 was 65.6%, compared with 64.6% for the first half of 2018.

Operating expenses, compared with the second quarter of 2018, reflected lower net provisions for litigation and regulatory proceedings and slightly lower compensation and benefits expenses. These decreases were offset by higher expenses for technology and consolidated investments. These higher expenses were primarily in depreciation and amortization, communications and technology, and occupancy expenses.

And speaking of Q2 compensation expenses, these declined -4.4% to $3.32 billion, slightly higher than the $3.27 billion estimate. As a result, of the modest drop in comp, and the 300 decline in headcount to 35,600 from 35,900, the average comp for Goldman banker declined to $323,708 from $325,153.

 

end

Google shares tumble as Trump agrees that the company should be investigated for treason

(zerohedge)

Google Shares Slide As Trump Agrees Company Should Be Investigated For Treason

President Trump has apparently taken Peter Thiel’s supposition that Google could be in cahoots with the Chinese military to heart. In a tweet Tuesday morning, Trump reiterated Thiel’s claim that the “seemingly treasonous” company might be working with the Chinese government and that the Trump Administration would “take a look.”

Donald J. Trump

@realDonaldTrump

“Billionaire Tech Investor Peter Thiel believes Google should be investigated for treason. He accuses Google of working with the Chinese Government.” @foxandfriends A great and brilliant guy who knows this subject better than anyone! The Trump Administration will take a look!

Shares of Google parent Alphabet were off more than 1% on the Trump tweet.

 

GG

 

END

 

SWAMP STORIES

Yesterday the left goes nuts as Trump urges the 4 members of the squad to leave the USA if they are not happy here!

(zerohedge)

Trump Rage-Tweets At “Radical Left Democrats” – “If You’re Not Happy Here, Leave!”

Much like the great majority of Americans (judging by the latest polls), President Trump appears to have had enough with the “Radical Left Democrats” constant spewing of seemingly anti-American sentiment.

In a triple-down on his sentiment over the weekend (and statement this morning), the president has just rage-tweeted the same message:“If you are not happy here, you can leave,” but that was far from all he said…

“We will never be a Socialist or Communist Country,” he began, adding that certain people HATE our Country… They are anti-Israel, pro Al-Qaeda, and comment on the 9/11 attack, ‘some people did something’,” seemingly focusing in on AOC and her squad.

 

“Radical Left Democrats want Open Borders, which means drugs, crime, human trafficking, and much more…” he raged, concluding his brief tweetstorm with a reminder of his achievements and to “Keep America Great.

The president’s attacks were aimed at Democratic Reps. Alexandria Ocasio-Cortez (N.Y.), Rashida Tlaib (Mich.), Ayanna Pressley (Mass.) and Ilhan Omar (Minn.) The first three were all born in the U.S. Omar is a naturalized citizen who was a refugee from Somalia.

Trump finished off his twitter tirade by signaling what was perhaps his goal all along…

“The Dems were trying to distance themselves from the four “progressives,” but now they are forced to embrace them. That means they are endorsing Socialism, hate of Israel and the USA! Not good for the Democrats!”

No matter how much Pelosi tries to push AOC et al. out of the limelight, they just keep coming back.

END
Wexner (owner of Victoria Secret) swears that he did not know anything about Epstein’s penchant for pedophilia
(zerohedge)

Victoria’s Secret Boss Wexner Swears He Didn’t Know About Epstein Penchant For Pedophilia

Billionaire and former Jeffrey Epstein associate Les Wexner told his employees Monday that he regrets ever crossing paths with the disgraced pedophile financier, according to Bloomberg.

Wexner, founder of L Brands Inc. which owns Victoria’s Secret, said in an internal email that he “was NEVER aware of the illegal activity” Epstein is accused of committing. “As you can imagine, this past week I have searched my soul … reflected … and regretted that my path ever crossed his.” said the 81-year-old mogul of Epstein.

After launching a business relationship in the 1980s, Wexner and Epstein formed ‘a financial and personal bond that baffled longtime associates,’ according to the New York Times

“I think we both possess the skill of seeing patterns,” Wexner told Vanity Fair in 2003. “But Jeffrey sees patterns in politics and financial markets, and I see patterns in lifestyle and fashion trends.”

Wexner would go on to open doors for Epstein – who managed “many aspects of his financial life.”

By 1995, Epstein was a director of the Wexner Foundation and Wexner Heritage Foundation and president of Wexner’s N.A. Property Inc., which developed the Ohio town of New Albany, where Wexner lives. Epstein also was involved in Wexner’s superyacht, “Limitless,” attending meetings at the London studios of the firm that designed the vessel. –Bloomberg

In the email to employees originally reported by the Columus Dispatch, Wexner says that he severed ties with Epstein nearly 12 years ago – after the financier pleaded guilty to a sex crime involving a teenage girl.

“I would never have guessed that a person I employed more than a decade ago could have caused such pain to so many people,” Wexner said in the email. “I would not have continued to work with any individual capable of such egregious, sickening behavior as has been reported about him.”

Yet, Epstein portrayed himself as a way for young models to perform sexual favors in exchange for a backdoor into Victoria’s Secret. According to a former Manhattan-based modeling agent cited by the New York Post, “Some of those girls got in.” 

“It was still significant cash for a young model doing the catalog,” an agent told the Post. “They weren’t making hundreds of thousands but they could make about $5,000 a week modeling for the campaigns or the catalog. Not all the girls sent to him got jobs, but a lot of them did.”

 

Italian model Elisabetta Tai who claims Epstein tried to coerce her into performing sex acts in exchange for a Victoria’s Secret gig.

In short, Wexner had an extremely close business relationship with Epstein – who allegedly engaged in sexual favors with girls, some of whom later worked for Wexner, yet the 81-year-old knew nothing of Epstein’s proclivities. 

Others have distanced as well, reports Bloomberg.

Others have also sought to distance themselves from Epstein in recent days, including hedge fund manager Glenn Dubin and his wife Eva Andersson-Dubin.

Andersson-Dubin, a former model who became a physician, previously dated Epstein and continued to socialize with him after his time in jail. Epstein had invested in Dubin’s hedge fund and was also considered a friend. –Bloomberg

The Dubins are horrified by the new allegations against Jeffrey Epstein,” they said in a statement. “Had they been awareof the vile and unspeakable conduct described in these new allegations, they would have cut off all ties and certainly never have allowed their children to be in his presence.”

And despite Epstein being a registered sex offender and pedophile, Andersson-Dubin thought he had rehabilitated himself and deserved a second chance.

“She is mortified that she, like so many others, was deceived by him, and feels terrible for the young women who have been harmed by his actions,” reads their statement.

Former President Bill Clinton similarly ‘disavowed’ Epstein, claiming on Monday that he “knows nothing about the terrible crimes Jeffrey Epstein pleaded guilty to in Florida some years ago, or those with which he has been recently charged in New York.”

Clinton also claimed that he’s only been on Epstein’s recently-sold ‘Lolita Express’ a total of four times, despite flight logs and pilot records clearly indicating otherwise.

According to research by investigative journalist Conchita Sarnoff, Clinton “was a guest of Epstein’s 27 times,” adding “many of those times Clinton had his Secret Service with him and many times he did not.”

And as the New York Times points out, despite Epstein’s status as a registered sex offender beginning in 2008, and his 13 month work-release sweetheart prison stay, many people continued to associate with him. 

Powerful female friends served as social guarantors: Peggy Siegal, a gatekeeper for A-list events, included him in movie screenings, and Dr. Eva Andersson-Dubin, a champion of women’s health, maintained a friendship that some felt gave him credibility. Mr. Epstein put up a website showing Stephen Hawking and other luminaries at a science gathering he had organized.

If you looked up Jeffrey Epstein online in 2012, you would see what we all saw,” Leon Botstein, the president of Bard College, said in an interview. He seemed “like an ex-con who had done well on Wall Street,” who was close to the Clintons and gave money to academic pursuits, Dr. Botstein said. That was why, he noted, Bard accepted an unsolicited $50,000 in 2011 for its high schools, followed later that year and in 2012 by another $75,000 in donations. –NYT

Now that Epstein is decidedly radioactive, none of his past associates seemingly knew anything – and are horrified at the monster they never saw coming.

end

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

Citigroup’s expenses decline 2% to $10.5B.  This is $100m more than expected.  But trading revenue declined about 5%.  Investment banking revenue tumbled 10% to $1.28B.  Consumer banking revenue increased 3% to $8.51B, which was better than expected.

Citi shares plunged 2.5% within 5 minutes of the NYSE open.  But, wait for it, traders bought the dip.  Citi posted a small gain by the end of the first hour of trading.  The Powell Put on everything is alive!

Google tanked early on this: Peter Thiel urges U.S. probe of Google’s ‘seemingly treasonous’ acts

The billionaire singled out Google for agreeing to work closely with China, trying to get its search engine back into the country, while deciding to let lapse a U.S. Defense Department contract that gave the military access to its artificial intelligence tools… He then suggested Google’s actions were “seemingly treasonous,” asking whether DeepMind or Google senior management had been “infiltrated” by foreign intelligence agencies. “These questions need to be asked by the FBI and the CIA,” Thiel said, “And I’d like them to be asked in a not excessively gentle manner.”…  https://yhoo.it/2NXerHx

Traders bought the Google dip, too.

@OANN: Pres. Trump will sign another executive order to help the domestic iron and steel industries by requiring 95% of steel and iron in federal government contracts to be made in America.

@NewYorkFed: “It’s readily apparent to all those in the industry — both firms and regulators — that LIBOR is fundamentally broken.” —John Williams, President & CEO, New York Fed

    “There’s broad recognition that exposure to LIBOR is a leading risk to financial stability. We need to treat it as such.  We need a mindset shift where firms realize that every new U.S. dollar LIBOR contract written digs a deeper hole that will be harder to climb out of.”

    “Replacing LIBOR is so critical. The reliance on expert judgment, rather than actual data, makes the rate too vulnerable to manipulation.

    “In 2022 the existence of LIBOR will no longer be guaranteed. In other words, LIBOR’s survival is assured for only another 901 days… In 2017, the Alternative Reference Rates Committee “selected the Secured Overnight Financing Rate (SOFR) as its preferred alternative to U.S. dollar LIBOR.

    “If companies are going to use LIBOR, they need to start including robust fallback language in the contract, so that if LIBOR ceases to exist, chaos does not ensue.” 

https://medium.com/new-york-fed/key-takeaways-from-president-williamss-speech-on-the-transition-away-from-libor-d5426cc00f5a

Having re-tethered Pelosi to the radical socialists in her party, DJT stirred the pot again on Monday.

@realDonaldTrump: When will the Radical Left Congresswomen apologize to our Country, the people of Israel and even to the Office of the President, for the foul language they have used, and the terrible things they have said. So many people are angry at them & their horrible & disgusting actions!

    If Democrats want to unite around the foul language & racist hatred spewed from the mouths and actions of these very unpopular & unrepresentative Congresswomen, it will be interesting to see how it plays out. I can tell you that they have made Israel feel abandoned by the U.S.

Dems, the MSM and RINOs slammed Trump on Monday.  DJT, cherishing and exploiting the attention, reiterated the trope that was extremely effective against radicals in the late Sixties/early Seventies.

Trump stokes firestorm over ‘go back’ tweets, says Dem freshmen ‘hate’ America

“If you hate our country, if you’re not happy here you can leave. These are people that hate our country. … They hate it, I think, with a passion.”…

https://www.foxnews.com/politics/trump-doubles-down-on-go-back-tweets-amid-outrage-calls-on-radical-congresswomen-to-apologize

@Barnes_Law: 2019 feeling like 1969 in many ways. An example: Merle Haggard, 1969: “Love it or leave it, let the song that I’m singing be a warnin” (Fightin’ Side of Me 1969).

AOC fires back at Lindsey Graham for calling Dem congresswomen “anti-Semitic” and “communists.”    http://hill.cm/mA2FfDW

Trump hit the jackpot on Monday when the four radicals reps decided to hold a press conference.  They went postal on the president.  AOC and Omar called for Trump’s impeachment.

Rahm Emanuel and Dave Axelrod, Obama’s mentor, excoriated Dems for taking Trump bait and tying the party to the radicals.

@NBCNews: Analysis: President Trump wants the Democratic Party stuck to its progressive fringe so that he can portray his opponents as too extreme to lead the country.

After the presser, Trump couldn’t hide his elation.  @realDonaldTrump: The Dems were trying to distance themselves from the four “progressives,” but now they are forced to embrace them. That means they are endorsing Socialism, hate of Israel and the USA! Not good for the Democrats!

@zerohedge: US politics, summer of 2019 edition:

You’re a racist

No, you’re a racist

No, you’re a racist

Stricter Asylum Rules: Immigrants Must Apply In First Safe Country They Enter

The Department of Justice announced a new immigration rule Monday that will restrict illegal immigrants from countries, other than those bordering the United States, for applying for asylum first in the U.S. if they have attempted “to enter the United States across the southern border after failing to apply for protection in a third country.” For example, the rule would not allegedly apply to Mexicans, whose first safe country is America.

    Attorney General William Barr authorized the change in the rules under the Department of Homeland Security, as an effort to curtail the humanitarian crisis at the border and deter those abusing the current law from the dangerous trek to the United States…

https://saraacarter.com/stricter-asylum-rules-immigrants-must-apply-in-first-safe-country-they-enter/

Biden support slips below 30 percent for first time     https://t.co/dKqxJbh1iP

The Biden gaffe machine did it again on Monday.  NYT’s @reidepstein: Joe Biden, at an AARP event in Des Moines, describing his health care proposal: “If you like your health care plan, your employer-based plan, you can keep it. If you like your private insurance, you can keep it.”

     Biden on raising his hand at the debate when asked if he’d be for federal insurance for undocumented immigrants: “I’m not doing any more raise-your-hand questions.”

When a NYT reporter highlights a line that still haunts Dems and Obama, you’ve got a problem.

Well that about does it for tonight

I will see you on WEDNESDAY night

H

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