JULY 25//GOLD DOWN $8.40 TO $1415.00//SILVER DOWN 19 CENTS TO $16.40//CHINA ISSUES HUGE WARNINGS TO BOTH THE USA AND HONG KONG//ECB READY TL LOWER RATES EVEN THOUGH IT IS ALREADY NEGATIVE//SOUTHWEST AIRLINES MAY LEAVE NEWARK BECAUSE OF BOEING PROBLEMS////

 

FINALIZED

 

GOLD: $1415.00  DOWN $8.40(COMEX TO COMEX CLOSING)

 

 

 

 

 

Silver$ 16.40 DOWN 19 CENTS  (COMEX TO COMEX CLOSING)//

 

 

 

 

 

 

 

 

 

 

 

Closing access prices:

 

 

Gold : $1414.10

 

silver:  $16.41

today was option expiry data for the comex contracts..and as usual the crooks try and bomb gold/silver to make those underwritten contracts of the banks expire worthless…such crooks.

YOUR DATA…

 

COMEX DATA

we are coming very close to a commercial failure!!

 

 

 

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

today RECEIVING 7/11

EXCHANGE: COMEX
CONTRACT: JULY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,422.800000000 USD
INTENT DATE: 07/24/2019 DELIVERY DATE: 07/26/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 1
661 C JP MORGAN 1 7
737 C ADVANTAGE 7 3
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 11 11
MONTH TO DATE: 954

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 11 NOTICE(S) FOR 200 OZ (0.0341 tonnes

TOTAL NUMBER OF NOTICES FILED SO FAR:  954 NOTICES FOR 95400 OZ  (2.9673 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

90 NOTICE(S) FILED TODAY FOR 450,000  OZ/

 

total number of notices filed so far this month: 4443 for   22,215,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 910,064 UP $300 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 10640 UP 823

 

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A CONSIDERABLE  SIZED 1522 CONTRACTS FROM 234,735 UP TO 236,257 WITH THE STRONG 16 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 HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

0 FOR JULY. 0 FOR AUGUST, 1004 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1004 CONTRACTS. WITH THE TRANSFER OF 1004 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 1004 EFP CONTRACTS TRANSLATES INTO 5.02 MILLION OZ  ACCOMPANYING:

1.THE 16 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//

22.330 MILLION OZ INITIAL STANDING FOR JULY

 

WE HAD ATTEMPTED COVERING OF SHORTS AT THE SILVER COMEX LAST NIGHT WITH ZERO SUCCESS..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:

30,825 CONTRACTS (FOR 17 TRADING DAYS TOTAL 30825 CONTRACTS) OR 154.13 MILLION OZ: (AVERAGE PER DAY: 1813 CONTRACTS OR 9.066 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  154.13 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 22.01% 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:          1310.32   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 1522, WITH THE 16 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  HUGE SIZED EFP ISSUANCE OF 1004 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: 2576 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1004 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1522  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 16 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $16.59 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. 1.181 BILLION OZ TO BE EXACT or 169% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 90 NOTICE(S) FOR 450,000 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 22.330 MILLION OZ
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

.

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE SIZED 2572 CONTRACTS, TO 614,287 DESPITE THE  $2.05 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING LIQUIDATION IS NOW IN FULL SWING FOR GOLD….AND THIS WAS ACCENTUATED THIS MORNING 

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 4194 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 4134 CONTRACTS, SEPT: 15 DEC>  45 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 614,287,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A VERY GOOD GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1622 CONTRACTS: 2572 CONTRACTS DECREASED AT THE COMEX  AND 4194 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 1,622 CONTRACTS OR 162,200 OZ OR 5.045 TONNES.  YESTERDAY WE HAD A GAIN OF $2.05 IN GOLD TRADING.AND WITH THAT GAIN IN  PRICE, WE  HAD A GOOD GAIN IN GOLD TONNAGE OF 5.045  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER..AS WELL AS ACCENTUATING THEIR LIQUIDATION OF SPREADING CONTRACTS.

 

WITH RESPECT TO SPREADING:  WE HAVE WITNESSED THE MORPHING OF OUR SPREADERS OUT OF SILVER AND INTO GOLD.  THE SPREADERS ARE NOW IN THE LIQUIDATING PHASE OF THEIR OPERATION AND THUS THE REASON FOR THE FALLING LEVEL OF COMEX OPEN INTEREST CONTRACTS.

 

 

 

 

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

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NO INTO THE NON ACTIVE DELIVERY MONTH OF 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 (AUGUST), 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 : 146,033 CONTRACTS OR 14,603,300 oz OR 454.22 TONNES (17 TRADING DAY AND THUS AVERAGING: 8590 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAY IN  TONNES: 454.22 TONNES

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

THUS EFP TRANSFERS REPRESENTS 454.22/3550 x 100% TONNES =12.79% OF GLOBAL ANNUAL PRODUCTION

VOLUMES ON THE EFP’S ESPECIALLY GOLD ARE RISING.

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3492.02  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 SMALL SIZED DECREASE IN OI AT THE COMEX OF 2572 DESPITE THE GOOD PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($2.05)) //.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 4194 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 4194 EFP CONTRACTS ISSUED, WE  HAD A VERY GOOD SIZED GAIN OF 1622 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

4194 CONTRACTS MOVE TO LONDON AND 2572 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 5.045 TONNES). ..AND THIS  INCREASE OF DEMAND OCCURRED ACCOMPANYING THE GAIN IN PRICE OF $2.05 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE ARE NOW IN FULL SWING WITH THE  SPREADING LIQUIDATION PHASE IN GOLD AS WE ARE NEARING THE COMPLETION OF THE NON ACTIVE DELIVERY OF JULY PROCEEDING INTO THE ACTIVE DELIVERY  MONTH OF AUGUST/

 

 

 

we had:  11 notice(s) filed upon for 1100 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD DOWN $8.40 TODAY//

 

NO CHANGE IN GOLD INVENTORY

 

INVENTORY RESTS AT 822.25 TONNES

 

 

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

SLV/

WITH SILVER DOWN 19 CENTS TODAY:

 

ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 1.685 MILLION OZ ADDED INTO THE GLD

 

A DROP OF 1.17 MILLION OZ

 

/INVENTORY RESTS AT 358.213 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 1522 CONTRACTS from 234,735 UP TO 236,257 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 LIQUIDATION OF  OPEN INTEREST CONTRACTS IN GOLD.  THEY WILL START THEIR ACCUMULATION OF SPREADING CONTRACTS IN SILVER ONCE WE BEGIN THE AUGUST CONTRACT MONTH.

 

 

 

 

 

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. 1004  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1004 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 1522  CONTRACTS TO THE 1004 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG SIZED GAIN OF 2576 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 12.63 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 22.330 MILLION OZ STANDING SO FAR.

 

 

RESULT: A CONSIDERABLE SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 16 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 1004 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

)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 14.08 POINTS OR 0.48%  //Hang Sang CLOSED UP 70.26 POINTS OR 0.25%   /The Nikkei closed UP 46.98 POINTS OR 0.22%//Australia’s all ordinaires CLOSED UP .58%

/Chinese yuan (ONSHORE) closed UP  at 6.8734 /Oil UP TO 56.51 dollars per barrel for WTI and 64.08 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.8734 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8735 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3c CHINA AND CHINESE AFFAIRS

i)This is not good:  Beijing hints that it could send in troops into Hong Kong if the protests do not stop.  What will the USA do?

(zerohedge)

ii)CHINA/USA

The USA is sending a little reminder to the China that Taiwan is still in the USA sphere of influence

(zerohedge)

iii)Bank of Jinzhou about to enter bankruptcy protection.  They have over 100 billion dollars worth of assets

(zerohedge)

4/EUROPEAN AFFAIRS

i)ECB

The ECB sets the stage for a September cut of at least 10 basis points as they signal that they will try and match the USA.  The lowering of rates in Europe which are already negative will have a devastating effect on the banks

(zerohedge)

ii)Draghi has now fired his bazooka and as such yields crash across all of Europe as well as the USA. This is very good for gold/silver

(zerohedge)

iii)Draghi’s bazooka is a dud:  Bonds dump  (yields rise), stocks dump with the Euro rising a bit.

The market is not happy with waiting..they want action now.

(zerohedge)

iv)BoJo sacks many of his cabinet with half of them gone and more is coming.  He is promising to deliver Brexit

(Mish Shedlock)

v)Bill Blain’s morning porridge.  His topics this morning:

  1. The ECB and their delayed interest rate cuts
  2. Boeing and their costs due to the grounding of the Max 737 Max
  3.  Tesla
  4. German autos

(courtesy Bill Blain)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

I)TURKEY

Turkey lowers his benchmark rate by a whopping 425 basis points from 24% down to 19.75%. Food inflation is still rampant in Turkey. Their overall inflation rate is around 26%.  At first the Lira plummeted but then we had central bank intervention to stabilize the Lira.  Expect in short order the Lira to plummet big time and that will cause considerable damage to Turkey

(zerohedge)

II)RUSSIA.UKRAINE

This does not look good..Ukraine seizes a big Russian oil tankers..Russia threatens consequences..

(zerohedge)

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)The hazards of wildcat gold mining in Ghana which is now Africa’s largest producer of gold

(Reuters/GATA)

ii)Chris Marcus puts together a terrific commentary and his subject was the huge fall in silver in late 2008 caused by the taking over of short positions by JPMorgan.  He used the information supplied to him by the late Bart Chilton.

you do not want to miss this one

(courtesy Chris Marcus/Arcadia Economics/GATA)

iii)A good one:  4 advocates for gold discuss gold’s prospects with Phil Kennedy.  Pay special attention to Murphy and Kranzler.

(GATA/Kennedy)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Instead of rebounding durable good tumble year over year and this is no doubt due to the troubles of Boeing

(zerohedge)

iii) Important USA Economic Stories

i)Brandon Smith believes that the Democrat that will fight against Trump will be Elizabeth (Pocahontas) Warren. We have been following Brandon Smith for quite a while. Here is his next take as to how things proceed once implosion begins. I originally thought it would be Kamala Harris but now I have come to the conclusion that it will be Warren facing Trump

(Brandon Smith)

ii)Puerto Rico’s Governor Rossello resigns after weeks of protests

(zerohedge)

iii)Boeing/South West Airlines

Due to the grounding of Boeing 737 max planes, Southwest Airlines probably the most profitable of all airlines announces that it will end its flights out of Newark NJ
(zerohedge)

iv) Swamp commentaries)

Epstein visited Clinton at the White House multiple times in the 1990’s

(zerohedge)

v) King report/Courtesy of Chris Powell of GATA which includes the major swamp stories.

 

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A CONSIDERABLE 2572 CONTRACTS TO A LEVEL OF 614,287 DESPITE THE GOOD GAIN OF $2.05 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 4194 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 4194 CONTRACTS: SEPT; 15 DEC: 45   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  4194 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: 1622, TOTAL CONTRACTS IN THAT 4194 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST  A CONSIDERABLE SIZED 2572 COMEX CONTRACTS. 

 

 

NET GAIN ON THE TWO EXCHANGES ::  1622 CONTRACTS OR 162,200 OZ OR 5.045 TONNES.

 

We are now in the NON  active contract month of JULY and here the open interest stands at 16 CONTRACTS as we GAINED 8 contracts.  We had 2 notices filed yesterday so we surprisingly  gained 10 contracts or 1000 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 LARGE 40,098 contracts DOWN to 196,135. The next non active month is September and here the OI rose by 331 contracts up to 1909.  The next active delivery month is October and here the OI rose by 2853 contracts up to 33,048.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 11 NOTICES FILED TODAY AT THE COMEX FOR  1100 OZ. (0.0342 TONNES)

 

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And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A CONSIDERABLE SIZED 1522 CONTRACTS FROM 234,735 UP TO 236,257 (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 16 CENT GAIN IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF JULY.  HERE WE HAVE 113 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 43 CONTRACTS.  WE HAD 51 NOTICES FILED YESTERDAY SO WE GAINED 8 CONTRACTS OR AN ADDITIONAL 40,000 OZ OF SILVER WILL STAND AT THE COMEX…. AND THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARD AS WELL AS NEGATING A FIAT BONUS. LET US WAIT AND SEE IF THEY ARE SUCCESSFUL IN OBTAINING PHYSICAL METAL ON THIS SIDE OF THE POND. AFTER JULY WE HAVE THE NON ACTIVE MONTH OF AUGUST AND HERE WE LOST 11 CONTRACTS DOWN TO 1078.  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI ROSE BY 246 CONTRACTS UP TO 161,826 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 90 notice(s) filed for 450,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 423,426  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  393,964  contracts

 

 

 

 

 

INITIAL standings for  JULY/GOLD

JULY 25/2019

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

 

XX

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
11 notice(s)
 200 OZ
(0.0186 TONNES)
No of oz to be served (notices)
5 contracts
(500 oz)
0.0155 TONNES
Total monthly oz gold served (contracts) so far this month
954 notices
95,400 OZ
2.9673 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 XX dealer entry:

We had XX kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: XX oz

 

we had XX deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into EVERYBODY ELSE:  XXX  oz

 

 

 

total gold deposits: XXX  oz

 

very little gold arrives from outside/ ZERO amount  arrived   today

we had XX gold withdrawal from the customer account:

 

 

 

total gold withdrawals; XX  oz

 

 

i) we had XX 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 11 contract(s) of which 7 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JULY /2019. contract month, we take the total number of notices filed so far for the month (954) x 100 oz , to which we add the difference between the open interest for the front month of  JULY. (16 contract) minus the number of notices served upon today (11 x 100 oz per contract) equals 95,900 OZ OR 2.9828 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 (954 x 100 oz)  + (8)OI for the front month minus the number of notices served upon today (11 x 100 oz )which equals 95,900 oz standing OR 2.9828 TONNES in this  active delivery month of JULY.

We GAINED 10 contracts or an additional 1000 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus. SOMEBODY WAS BADLY IN NEED OF PHYSICAL GOLD ON THIS SIDE OF THE POND TONIGHT.

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 10.0235 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 2.9828  TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

total registered or dealer gold:  322,728.368 oz or  10.0235 tonnes 
total registered and eligible (customer) gold;   7,749,869.449 oz 241.053 tonnes

IN THE LAST 33 MONTHS 115 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 25 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 XXX oz

 

 

Deposits to the Dealer Inventory
XX oz

 

Deposits to the Customer Inventory
XXX oz
No of oz served today (contracts)
90
CONTRACT(S)
(450,000 OZ)
No of oz to be served (notices)
23 contracts
 115,000 oz)
Total monthly oz silver served (contracts) 4443 contracts

22,215,000 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 XXX inventory movement at the dealer side of things

 

 

total dealer deposits: XX  oz

total dealer withdrawals: XXX oz

we had XX deposits into the customer account

into JPMorgan:  nil  oz

ii)into EVERYBODY ELSE:  XXX

 

 

 

*** 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:  1134,863.019  oz

 

we had XXX withdrawals out of the customer account:

 

 

 

 

 

 

 

total XXX  oz

 

we had X adjustment :

 

 

 

total dealer silver:  93.110 million

total dealer + customer silver:  307.430 million oz

 

 

 

 

 

 

 

 

 

The total number of notices filed today for the JULY 2019. contract month is represented by 90 contract(s) FOR 450,000 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 4443 x 5,000 oz = 22,215,000 oz to which we add the difference between the open interest for the front month of JULY. (113) and the number of notices served upon today (90 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JULY/2019 contract month: 4443 (notices served so far) x 5000 oz + OI for front month of JULY (113) number of notices served upon today (90)x 5000 oz equals 22,330,000 oz of silver standing for the JULY contract month.

WE GAINED 8 CONTRACTS OR AN ADDITIONAL 40,000 OZ WILL STAND AT THE COMEX AS THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARDS AND AS WELL THEY ALSO NEGATED A FIAT BONUS. THE BANKERS WERE AGAIN IN GREAT NEED OF PHYSICAL ON THIS SIDE OF THE POND.

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 90 notice(s) filed for 450,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  134,555 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 118,180 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 118,180 CONTRACTS EQUATES to 590 million  OZ 84.4% 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

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.59.% ((JULY 18/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.68% to NAV (JULY 18/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -1.59%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 14.08 TRADING 13.55/DISCOUNT 3.75

END

And now the Gold inventory at the GLD/

JULY 25/ WITH GOLD DOWN$8.40//NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 822.25 TONNES

JULY 24.2019: WITH GOLD UP $2.05 TO DAY: A PAPER WITHDRAWAL OF 2.93 TONNES OF GOLD FROM THE GLD

JULY 23// WITH GOLD DOWN $5.25 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 825.18 TONNES

JULY 22/WITH GOLD UP 0.80 CENTS: TWO MASSIVE PAPER GOLD DEPOSIT OF 5.87 TONNES AND 4.69 TONNES ADDED TO THE GLD..THIS IS A MASSIVE FRAUD!!/INVENTORY RESTS AT 825.18 TONNES

JULY 19/WITH GOLD DOWN $1.00: A MASSIVE  DEPOSIT OF 11.44 TONNES OF PAPER GOLD INTO THE GLD/INVENTORY RESTS AT 814.62

JULY 18/WITH GOLD UP $5.55 TODAY: A BIG PAPER DEPOSIT OF 3.81 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 803.18 TONNES

JULY 17/WITH GOLD UP $11.35 TODAY: A BIG WITHDRAWAL OF 1.17 TONNES FROM THE GLD//INVENTORY RESTS AT 799.37 TONNES

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

 

 

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JULY 25/2019/ Inventory rests tonight at 822.25 tonnes

*IN LAST 629 TRADING DAYS: 112.51 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 529 TRADING DAYS: A NET 53.17 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

end

 

Now the SLV Inventory/

JULY 25.2019: WITH SILVER DOWN 19 CENTS: ANOTHER PAPER WITHDRAWAL OF 1.17 MILLION OZ/INVENTORY REST AT 358.213 MILLION OZ

JULY 24…A BIG CHANGE  IN SILVER INVENTORY AT THE SLV: A GAIN OF 1.685 MILLION OZ/INVENTORY RESTS AT 359.383 MILLION OZ

JULY 23/2019: WITH SILVER UP 5 CENTS TODAY: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.221 MILLION PAPER OZ ADDED INTO THE GLD INVENTORY//INVENTORY RESTS AT 357.698 MILLION OZ////

JULY 22.2019/WITH SILVER UP 21 CENTS TODAY: A MASSIVE  CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 8.939 MILLION OZ ADDED TO THE SLV INVENTORY/INVENTORY RESTS AT 355.919 MILLION OZ//

JULY 19/WITH SILVER FLAT TODAY: ANOTHER MONSTROUS PAPER DEPOSIT OF 3.276 MILLION OZ ENTERS THE SLV//WHAT A MASSIVE FRAUD//INVENTORY RESTS AT 346.980 MILLION OZ

JULY 18/WITH SILVER UP 24 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.668 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 343.704 MILLION OZ//

JULY 17: WITH SILVER UP ANOTHER 29 CENTS: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 8.518 MILLION OZ/INTO THE SLV INVENTORY///INVENTORY RESTS AT 341.036 MILLION OZ//

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 25/2019:

 

 

Inventory 359.383 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.24/ and libor 6 month duration 2.20

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

G0LD LENDING RATE: – .04

 

XXXXXXXX

12 Month MM GOFO
+ 2.21%

LIBOR FOR 12 MONTH DURATION: 2.22

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.01

end

 

 

end

 

PHYSICAL GOLD/SILVER STORIES
i) GOLDCORE BLOG/Mark O’Byrne

Four Great Gold Advocates: Bill Murphy, Dave Collum, Rob Kirby and Dave Kranzler on Gold

via GATA

Four great gold advocates were brought together on YouTube today by Phil Kennedy of Kennedy Financial to discuss the gold market and the excellent prospects for the precious metals.

Roundtable participants include:

– Bill Murphy, GATA Chairman

– Rob Kirby of Kirby Analytics

– Dave Kranzler of Investment Research Dynamics in Denver

– Dave Collum of Cornell University

Key points made include:

Bill Murphy believes that the physical market is finally tightening up enough to make big trouble for governments and central banks. Murphy notes that silver has caught fire out of the blue in recent weeks.

Rob Kirby says governments are trying to push into cryptocurrencies people who are starting to worry about the world financial system, keeping them away from gold, which is what governments fear most. Kirby believes that JPMorganChase is exempt from penalties for market rigging because the investment bank is broker for the U.S. Treasury Department’s Exchange Stabilization Fund.

Dave Kranzler says the usual smashes in the gold futures market are not having much effect anymore. He disputes the claim that cryptocurrencies have no counterparty risk, arguing that the internet itself constitutes counterparty risk for cryptos. Kranzler adds that major investors know that they better leave the Comex gold futures market alone and not make trouble there by demanding delivery in any size — that is, the Comex is essentially a government market-rigging operation.

Collum says he is confident that the physical market for gold will regain precedence over the paper market.

Watch interview here

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

24-Jul-19 1425.55 1426.95, 1142.29 1142.70 & 1279.86 1279.69
23-Jul-19 1417.55 1425.55, 1140.42 1145.29 & 1268.14 1277.01
22-Jul-19 1424.45 1427.75, 1142.69 1143.63 & 1270.04 1272.13
19-Jul-19 1437.05 1439.70, 1148.06 1148.88 & 1278.11 1281.48
18-Jul-19 1420.90 1417.45, 1139.70 1135.94 & 1264.74 1263.51
17-Jul-19 1400.80 1410.35, 1129.61 1135.61 & 1249.09 1256.90
16-Jul-19 1416.10 1409.85, 1136.85 1134.79 & 1260.05 1256.88
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

News

Gold gains as downbeat economic data feed prospects for easier monetary policies by central banks

Gold rises on Fed rate cut bets, weak euro zone data

Gold crawls higher on Middle East tensions; dollar rally caps gains

US Manufacturing PMI Slumps To 10-Year Low, Business Outlook Worst On Record

Euro slides to two-month low on bleak euro zone data ahead of ECB

Commentary

Four gold advocates discuss gold’s prospects with Phil Kennedy

A Decade of Low Interest Rates Is Changing Everything

Silver Manipulation Confirmed: 2008 Price Plunge From $21 to $9 Explained

Goldman Sachs options traders prefer Japanese yen to gold

Click Here to Listen to the latest GoldCore Podcast

This image has an empty alt attribute; its file name is Exclusive-Offer-Swiss-Flag-B-1024x576.jpg
Buy, Transfer & Store Gold and Silver in Zurich, Switzerland – Six Months Free Storage

Receive our free Daily or Weekly Updates by signing up here and click here to subscribe to GoldCore’s You Tube Channel

Mark O’Byrne
Executive Director

end

ii) Important gold commentaries courtesy of GATA/Chris Powell

The hazards of wildcat gold mining in Ghana which is now Africa’s largest producer of gold

(Reuters/GATA)

Ghana’s wildcat gold miners are doomed by their toxic trade

 Section: 

By Tim Cocks and David Lewis
Reuters
Wednesday, July 24, 2019

BAWDIE, Ghana — A few years after coming as a teenager to this Ghanaian town to prospect for gold, Yaw Ngoha had made enough cash to marry his sweetheart and build a house with a porch, to which he would later add a flat-screen TV and satellite dish.

So when a town elder invited a doctor to talk to miners about the hazards of wildcat mining, “nobody listened,” said the 36-year-old, sitting on a wooden bench on his porch in a lush banana grove.

“We needed money.”

… 

Since Ngoha started prospecting in the early 2000s, more and more people like him have helped Ghana grow into Africa’s biggest gold producer. Across the continent and beyond, millions have turned to the trade. Few are deterred by the risks.

Ngoha’s friends and family members started to sicken and die, but he told himself this had nothing to do with the amount of dust they’d been breathing in or the toxins — including mercury and nitric acid — they used to extract the gold. …

… For the remainder of the report:

https://www.reuters.com/investigates/special-report/gold-africa-poison/

* * *

Join GATA here:

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

https://neworleansconference.com/noic-promo/powellgata/

* * *

Help keep GATA going:

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

http://www.gata.org

To contribute to GATA, please visit:

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

END

Chris Marcus puts together a terrific commentary and his subject was the huge fall in silver in late 2008 caused by the taking over of short positions by JPMorgan.  He used the information supplied to him by the late Bart Chilton.

you do not want to miss this one

(courtesy Chris Marcus/Arcadia Economics/GATA)

Chris Marcus: Silver crashed in 2008 as JPM exceeded position limits

 Section: 

9:43p ET Wednesday, July 24, 2019

Dear Friend of GATA and Gold:
9:42p ET Wednesday, July 24, 2019

Dear Friend of GATA and Gold:

Chris Marcus of Arcadia Economics, putting price charts together with an interview with the late former member of the U.S. Commodity Futures Trading Commission, Bart Chilton, concludes today that the price of silver fell by more than half in 2008 while JPMorganChase was taking over the silver position of the insolvent investment bank Bear Stearns and in the process exceeding the CFTC’s ordinary position limits. Marcus’ analysis is headlined “Silver Manipulation Confirmed: 2008 Price Plunge From $21 to $9 Explained” and it’s posted at Arcadia Economics here:

https://arcadiaeconomics.com/silver-manipulation/silver-manipulation-con…

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

end

A good one:  4 advocates for gold discuss gold’s prospects with Phil Kennedy.  Pay special attention to Murphy and Kranzler.

(GATA/Kennedy)

Four gold advocates discuss gold’s prospects with Phil Kennedy on YouTube

 Section: 

11:10p ET Wednesday, July 24, 2019

Dear Friend of GATA and Gold:

11p ET Wednesday, July 25, 2019

Dear Friend of GATA and Gold:

Four great gold advocates were brought together on YouTube today by Phil Kennedy of Kennedy Financial to discuss the gold market and the monetary metal’s prospects against governments and central banks:

— GATA Chairman Bill Murphy.

— Rob Kirby of Kirby Analytics in Toronto.

— Dave Kranzler of Investment Research Dynamics in Denver.

— And Cornell University Professor Dave Collum.

Among their more interesting points:

Murphy believes that the physical market is finally tightening up enough to make big trouble for governments and central banks. Murphy notes that silver has caught fire out of the blue in recent weeks.

… 

Kirby says governments are trying to push into cryptocurrencies people who are starting to worry about the world financial system, keeping them away from gold, which is what governments fear most. Kirby believes that JPMorganChase is exempt from penalties for market rigging because the investment bank is broker for the U.S. Treasury Department’s Exchange Stabilization Fund.

Kranzler says the usual smashes in the gold futures market are not having much effect anymore. He disputes the claim that cryptocurrencies have no counterparty risk, arguing that the internet itself constitutes counterparty risk for cryptos. Kranzler adds that major investors know that they better leave the Comex gold futures market alone and not make trouble there by demanding delivery in any size — that is, the Comex is essentially a government market-rigging operation.

Collum says he is confident that the physical market for gold will regain precedence over the paper market.

The interview is 52 minutes long and can be watched at YouTube here:

https://www.youtube.com/watch?v=eOt4XH7clOQ&feature=youtu.be

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

iii) Other physical stories:

July 25, 2019

In CFTC Actions, Two Former Precious Metals Traders Admit To Engaging in Spoofing and Manipulation at New York Banks

Washington, DC — The U.S. Commodity Futures Trading Commission today issued two orders filing and settling charges against former precious metals traders at separate financial institutions who entered into formal cooperation agreements with the CFTC’s Division of Enforcement (Division) and admitted to spoofing and manipulative conduct in the futures markets.

James McDonald, the Director of Enforcement, commented: “Today’s enforcement actions send a clear message that spoofing and manipulation in our markets will not be tolerated and that the CFTC will use all of the tools in its arsenal to aggressively pursue individuals and entities who engage in this misconduct. These cases also show that, where an individual has demonstrated a commitment to cooperate, and has cooperated, the CFTC may elect to postpone the assessment of the cooperator’s sanctions until the cooperation is substantially complete.”

Corey D. Flaum

In its order today settling charges against Corey D. Flaum of Mount Kisco, New York, the CFTC found that Flaum engaged in a pattern of spoofing in the precious metals futures market between 2007 and 2016 while employed at a New York bank and subsequently at the New York office of another bank. The order requires Flaum to cease and desist from violating the Commodity Exchange Act and CFTC regulations prohibiting spoofing, the use of manipulative or deceptive devices in connection with futures contracts, and price manipulation.

The order finds that Flaum and others at the banks placed futures orders they intended to cancel before execution, for the purpose of creating false signals of buying or selling interest. These spoof orders were placed to deceive other market participants into transacting against the orders Flaum and others wanted filled, at least in part for the benefit of the banks.

The order recognizes Flaum’s entry into a formal cooperation agreement with the Division and, pursuant to that agreement, reserves the CFTC’s determination as to sanctions against him.

Today, the Fraud Section of the Department of Justice’s Criminal Division (Fraud Section) announced a separate criminal action against Flaum. See United States v. Flaum, Case No. 19-CR-338 (E.D.N.Y.). Flaum pleaded guilty to one count of attempted commodities price manipulation.

John Edmonds

In its order today settling charges against John Edmonds of Brooklyn, New York, the CFTC found that Edmonds engaged in a pattern of spoofing in the precious metals futures market between 2009 and 2015 while employed at a New York bank. The order requires Edmonds to cease and desist from violating the Commodity Exchange Act and CFTC regulations prohibiting spoofing and the use of manipulative or deceptive devices in connection with futures contracts.

The order finds that Edmonds and others placed futures orders they intended to cancel before execution, with the purpose of falsely inducing market participants to execute against the orders they wanted filled. The order further finds that Edmonds, his employer, and others benefitted financially from such conduct.

The order recognizes Edmonds’s entry into a formal cooperation agreement with the Division and, pursuant to that agreement, reserves the CFTC’s determination as to sanctions against him.

Edmonds previously pleaded guilty in federal court to one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, commodities price manipulation, and spoofing. See United States v. Edmonds, Case No. 18-CR-239 (D. Conn).

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.8734/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8735   /shanghai bourse CLOSED UP 14.08 POINTS OR 0.48%

HANG SANG CLOSED UP 70.26 POINTS OR 0.25%

 

2. Nikkei closed UP 46.98 POINTS OR 0.22%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 97.79/Euro FALLS TO 1.1118

3b Japan 10 year bond yield: FALLS TO. –.15/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.10/ 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:: 57.21 and Brent: 64.13

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.41%/Italian 10 yr bond yield DOWN to 1.38% /SPAIN 10 YR BOND YIELD DOWN TO 0.28%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.79: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.95 ?????     GREEK 10 YR BOND YIELDS LOWER THAN USA AT 2.02 ???

3k Gold at $1432.10 silver at: 16.60   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 14/100 in roubles/dollar) 63.11

3m oil into the 56 dollar handle for WTI and 64 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 108.10 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 .9879 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0982 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 0.41%

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 2.02% early this morning. Thirty year rate at 2.55%

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

6.  TURKISH LIRA:  UP  TO 5.6821..

US Futures Flat, Global Stock Rally Fizzles Ahead Of ECB Announcement

S&P futures struggled for direction on Thursday, with Nasdaq futs down following a plunge in Tesla following dismal guidance, even as European stock were modestly higher ahead of what many expect will be an easing signal by the ECB as a bevy of earnings reports again pointed to a slowing global economy, while holding up in the face of already reduced expectations.

 

The S&P 500 and Nasdaq hit a new all-time high once again on Wednesday after Texas Instruments hinted that a global slowdown in microchip demand would not be as long as feared, which countered bleak earnings from bellwether companies Boeing and Caterpillar.

The mood was more subdued on Thursday, when Tesla stock tumbled 12.3% and pressured Nasdaq futures after the electric carmaker pushed back its profit timeline once again after missing its quarterly financial targets. On the other hand, 3M rose 4.5% after the manufacturing conglomerate reiterated its full-year earnings forecast despite slowing growth in high-profile markets such as China. Facebook gained 1%, after the social media giant reported quarterly revenue that beat estimates, but said new rules and product changes aimed at protecting user privacy would slow its revenue growth into next year. Ford Motor dropped 4.6% after the automaker reported a lower-than-expected profit, weighed down by charges to restructure its units in Europe and South America, and gave a disappointing full-year earnings forecast.

Two weeks into the second-quarter earnings season, Reuters reports that about 77% of the 138 S&P 500 companies that have reported so far have topped earnings estimates. Overall earnings are now expected to fall 0.1%, compared with a prior estimate of a rise of about 1%.

Meanwhile, hopes that key central banks would take monetary measures to impede the impact of a protracted U.S.-China trade war has helped Wall Street’s main indexes hit record highs this month; moments ago Turkey became the latest country to join the easing bandwagon when its central bank cut rates by a whopping 425bps to 19.75%, in line with Erdogan’s demands.

In Europe, the Stoxx Europe 600 pared some of its earlier gains, with health care shares the top performers after earnings for AstraZeneca and Roche beat estimates. AEX (-0.1%) lagged peers, pressured by Unilever (-0.8%) post-earnings. Meanwhile, France’s CAC 40 (+0.5%) benefited from its largest weighted stock LVMH (+1.5%) which rose after the company posted a 20% Y/Y LFL sales increase in leather goods and fashions. Sectors are mixed with outperformance in Pharma names as heavyweight Roche (+1.3%) raised its 2019 revenue growth outlook. On the flip side, energy names lag on the back of the decline in oil prices yesterday. Individual movers include UK-listed Cobham (+34.7%) was bolstered to the top of the Stoxx 600 as the Co. is expected to be acquired for GBP 4.0bln including debt. Other interesting movers on the back of earnings, with Nokia (+6.3%), AstraZeneca (+5.6%), Kion (+4.6%) all at the top of the pan-European index. On the downside, JC Decaux (-5.2%) slid on the back of disappointing numbers whilst SMI-listed Clariant (-9.9%) fell to the foot of the Stoxx 600 after the Co. suspended talks with Sabic over the proposed JV.

Earlier in the session, Asian stocks advanced, heading for a third day of gains though Korean stocks declined for a second day, after U.S. equities climbed to record highs. Communications and technology were among the best-performing sectors. Most markets in the region were up, with the Philippines leading gains. The Topix added 0.2%, supported by chemical firms, as investors gauged a raft of mixed corporate results. Shin-Etsu Chemical Co. and Advantest Corp. jumped after reporting first-quarter operating profits above estimates. The Shanghai Composite Index rose 0.5%, with banks and Kweichow Moutai Co. among the biggest boosts. Beijing gave the green light for some companies to buy U.S. soybeans free of retaliatory import tariffs in a goodwill gesture amid trade negotiations with Washington. India’s Sensex gained 0.3%, set to end a five-day losing streak, as investors sought out value with equities near a two-month low. Most Nifty companies that have reported earnings so far have either met or exceeded analyst estimates.

In Rates, Germany’s 30-year bond yield fell to a record on deteriorating business confidence:

  • German Ifo Business Climate New (Jul) 95.7 vs. Exp. 97.1 (Prev. 97.4, Rev. 97.5).
  • German Ifo Current Conditions New (Jul) 99.4 vs. Exp. 100.4 (Prev. 100.8, Rev. 101.1)
  • German Ifo Expectations New (Jul) 92.2 vs. Exp. 94.0 (Prev. 94.2, 94.0)

Ifo economists said that the German economy faces a turbulent time ahead. He sees a slightly positive growth rate in H2, although recession is spreading in all important sectors of German industry. Business Climate has deteriorated in key sectors except for the auto industry.

In FX, the euro fell for a fifth day and Treasuries gained along with European government bonds as the market braced for an easing signal from the European Central Bank’s latest meeting. The dollar was little changed, with the yen gaining ground and the Aussie dollar falling to a two-week low after the RBA said policy makers are prepared to lower interest rates again. The pound steadied as new U.K. Prime Minister Boris Johnson picked a pro-Brexit government team. The Turkish Lira first tumbled, then surged after the CBRT cut rates by more than expected 425bps to 19.75%, its biggest rate cut on record.

In geopolitics, North Korea fired 2 projectiles which flew 430km but did not reach Japan’s exclusive economic zone. Following news of the launch, South Korea Defence Ministry spokesperson urged North Korea to stop acts which are not helpful in easing military tensions, while Japanese PM Abe suggested the North Korea missile launch poses no threat.

Expected data include durable goods orders and wholesale inventories. Amazon, American Airlines, Alphabet, Intel, Starbucks, and T-Mobile are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures little changed at 3,022.50
  • STOXX Europe 600 up 0.2% to 392.51
  • MXAP up 0.2% to 161.31
  • MXAPJ up 0.3% to 530.23
  • Nikkei up 0.2% to 21,756.55
  • Topix up 0.2% to 1,577.85
  • Hang Seng Index up 0.3% to 28,594.30
  • Shanghai Composite up 0.5% to 2,937.36
  • Sensex up 0.1% to 37,884.49
  • Australia S&P/ASX 200 up 0.6% to 6,818.03
  • Kospi down 0.4% to 2,074.48
  • German 10Y yield fell 1.4 bps to -0.392%
  • Euro down 0.07% to $1.1132
  • Italian 10Y yield fell 10.7 bps to 1.143%
  • Spanish 10Y yield fell 3.1 bps to 0.316%
  • Brent futures up 0.7% to $63.62/bbl
  • Gold spot up 1% to $1,427.32
  • U.S. Dollar Index little changed at 97.76

Top Overnight News from Bloomberg

  • Boris Johnson executed a brutal clear-out of more than half of his predecessor’s top team, installing supporters in key roles as the new prime minister signaled his intent to deliver Brexit in 98 days. Sajid Javid picked to steer the British economy through Brexit
  • The European Central Bank is set to signal that it is once again preparing to step in to support the euro zone. On the eve of the seventh anniversary of President Mario Draghi’s landmark “whatever it takes” speech, policy makers will decide how to confront an economic slowdown amid risks from U.S. protectionism to Brexit
  • German companies’ business outlook tumbled to the lowest in a decade, adding to signs that Europe’s largest economy is getting dangerously close to a recession
  • Treasury Secretary Steven Mnuchin said a strong dollar is good for the U.S. economy in the long term and that he wouldn’t advocate for a weak-dollar policy in the near future
  • North Korea launched at least two short-range missiles into the sea east of the Korean Peninsula, stepping up pressure on the U.S. as it tries to resume nuclear disarmament talks with Pyongyang
  • Former Federal Reserve Chairman Alan Greenspan endorsed the idea that the U.S. central bank should be open to an insurance interest-rate cut, to counter risks to the economic outlook, even if the probability of the worst happening was relatively low
  • Oil held its biggest loss in a week as signs that growth is slowing in major economies overshadowed the longest run of declines in U.S. crude stockpiles since the start of 2018

Asian equity markets mostly traded with cautious gains after a similar performance on Wall St where strength in financials and tech fuelled the S&P 500 and Nasdaq to all-time record highs, although the DJIA underperformed on disappointing blue-chip earnings. ASX 200 (+0.6%) and Nikkei 225 (+0.2%) were higher but with gains capped by weakness in mining related sectors and with Tokyo trade also contained by an uneventful currency after source reports suggested a lack of consensus within the BoJ regarding additional easing measures at next week’s meeting. Elsewhere, the KOSPI (-0.4%) underperformed after North Korea conducted a short-range missile launch and with earnings also heavily in focus, while Hang Seng (+0.3%) and Shanghai Comp. (+0.5%) were choppy as another substantial liquidity drain by the PBoC was counterbalanced by trade optimism after suggestions that next week’s US-China trade meeting is to be held in Shanghai to allow the possibility of President Xi joining in and that the meeting will be followed up by talks in Washington. Finally, 10yr JGBs were relatively flat as they mirrored the rangebound trade in T-notes and with demand also dampened by the indecisive gains in the region, although prices later found mild support after the 2yr auction which attracted a higher b/c and narrower tail in price.

Top Asian News

  • Digger Giant Warns of ‘Dark Turn’ as Chinese Sales Start to Ebb
  • Hong Kong Names Eddie Yue as Next Monetary Authority Chief
  • More Chances to Get Rich Quick in China’s New Stock Venue
  • China’s Embattled Jinzhou Bank Courts Investors as Bonds Tumble

European equities are directionless with large-cap earnings dictating the state of play of thus far. AEX (-0.1%) lags its peers, pressured by Unilever (-0.8%) post-earnings. Meanwhile, France’s CAC 40 (+0.5%) is benefitting from its largest weighted stock LVMH (+1.5%) which rose after the Co. posted a 20% Y/Y LFL sales increase in leather goods and fashions. Sectors are mixed with outperformance in Pharma names as heavyweight Roche (+1.3%) raised its 2019 revenue growth outlook. On the flip side, energy names lag on the back of the decline in oil prices yesterday. Individual movers include UK-listed Cobham (+34.7%) was bolstered to the top of the Stoxx 600 as the Co. is expected to be acquired for GBP 4.0bln including debt. Other interesting movers on the back of earnings, with Nokia (+6.3%), AstraZeneca (+5.6%), Kion (+4.6%) all at the top of the pan-European index. On the downside, JC Decaux (-5.2%) slid on the back of disappointing numbers whilst SMI-listed Clariant (-9.9%) fell to the foot of the Stoxx 600 after the Co. suspended talks with Sabic over the proposed JV. Over in the States, Facebook (+1.2% pre-market) reported last night with miss on top line and a beat on bottom line. The Co. also noted that EPS would have been higher excluding the FTC legal fees of USD 5bln over privacy violations. Meanwhile, Tesla (-10.8% pre-market) missed on top and bottom line. Looking ahead, around 10% of the S&P 500 is reporting today, whilst DJIA component 3M is also on the docket, with a 4.5% weighting in the index.

Top European News

  • German Business Confidence Deteriorates as Factory Slump Deepens
  • Merkel Leaves Europe’s Sputtering Engine to Ride Out the Storm
  • ECB Is Set to Signal Rate Cut as Economy Slows: Decision Day Guide
  • ABB Beats Estimates as Activist-Driven Overhaul Bears Fruit
  • Wizz Air Jumps on Raised Growth Target at Expense of Rivals

In FX, EUR/TRY are not the biggest currency movers, but both certainly prone to big reactions and price action depending on Central Bank policy decisions as the ECB and CBRT both deliver verdicts today. Market pricing for the former is extremely tight between no change and -10 bp, even though the ‘consensus’ leans towards a tweak in guidance for easing in September rather than any adjustments this time, with the probability roughly 50-50. However, the latter is unanimously expected to lower its benchmark and the uncertainty rests on how much given a gaping range of forecasts, from -100 bp to -500 bp, while some observers also suggest that a loud -800 bp call exists. In the run up, the single currency and Turkish Lira are on the defensive, with Eur/Usd teetering above ytd lows in a 1.1145-23 range and capped by yet another bleak German survey in the form of Ifo that missed consensus across the board and compounded by a gloomy statement from the institute noting the spread of recession through all key industrial sectors. Meanwhile, Usd/Try is pivoting 5.7100 and also acknowledging a deterioration in manufacturing sentiment and a decline in cap u.

  • NZD/AUD – Dovish rate vibes are undermining the Kiwi and Aussie as well, with Westpac recalibrating its RBNZ outlook to match the RBA by pencilling in 2 more 25 bp eases from 1 previously. Nzd/Usd has retreated from 0.6700+ in response, but the Aud/Nzd cross remains anchored near 1.0400 as Aud/Usd slips a bit further from 0.7000 to 0.6965 in wake of comments from RBA Governor Lowe indicating further OCR reductions if demand disappoints and acknowledging that inflation will take time to hit target.
  • JPY/CAD/GBP/CHF – All narrowly mixed vs a solid Greenback, as the DXY continues to test a key Fib retracement level at 97.776 within a tight 97.778-679 band, with the Yen still stuck around 108.00 and embroiled in decent option expiries (1.7bn from 107.75 to 107.80 and 1.5 bn between 107.90-108.00) vs technical resistance at 108.31 (also a Fib). Meanwhile, the Loonie hugs 1.3128-44 ahead of Canadian wage data, Cable retains a recovery tone within 1.2450-1.2500 and the Franc remains underpinned around 0.9850 vs the Buck and over 1.1000 against the Euro, expecting the SNB to match or counteract any ECB moves.
  • ZAR – The Rand is underperforming after a stark warning from Moody’s that the latest state aid for Eskom will put further strain on the Government’s finances and threaten SA’s rating, with Usd/Zar nudging the top of 13.9750-8600 range.

In commodities, WTI and Brent futures are marginally firmer, albeit it seems to be more of a consolidation from yesterday’s DoE-induced decline and on the news that Kuwait and Saudi officials discussed resuming production from the neutral zone which had previously provided around 500k bpd of supply. WTI and Brent currently reside around the 56.00/bbl and 63.50/bbl levels with the former eyeing its 50 DMA at 56.87/bbl ahead of its 200 DMA at 57.11/bbl (with the psychological 57/bbl level in-between). News flow for the complex has been light thus far with traders eyeing the ECB’s latest monetary policy decision (full preview available in the Research Suite) for the next possible catalyst. Elsewhere, gold prices are relatively steady above the 1400/oz mark with Central Bank decisions very much in focus. Elsewhere copper is little changed amid the cautious/tentative risk tone whilst Shanghai lead climbed over 1% overnight amid revived supply concerns due to maintenance activity in China.

US Event Calendar

 

  • 8:30am: Durable Goods Orders, est. 0.7%, prior -1.3%; Durables Ex Transportation, est. 0.2%, prior 0.4%
  • 8:30am: Cap Goods Orders Nondef Ex Air, est. 0.2%, prior 0.5%; Cap Goods Ship Nondef Ex Air, est. -0.2%, prior 0.6%
  • 8:30am: Advance Goods Trade Balance, est. $72.5b deficit, prior $74.5b deficit
  • 8:30am: Wholesale Inventories MoM, est. 0.5%, prior 0.4%; Retail Inventories MoM, est. 0.2%, prior 0.5%
  • 8:30am: Initial Jobless Claims, est. 218,000, prior 216,000; Continuing Claims, est. 1.69m, prior 1.69m
  • 9:45am: Bloomberg Consumer Comfort, prior 64.7
  • 11am: Kansas City Fed Manf. Activity, est. 2.8, prior 0

DB’s Jim Reid concludes the overnight wrap

Welcome to ECB day, and a meeting where we should move closer to what is likely to be a round of global policy easing in the months ahead. Mr Draghi paved the way at Sintra last month where he laid the foundations to make further policy easing feel less conditional. Our economists, in their preview note last week ( link ), believe that September is the natural occasion for the big decisions and details but expect some preparation today. They expect the “or lower” easing bias to be reintroduced into rates guidance and that this will be the prelude to a 10bp deposit rate cut and tiering in September. They also expect a further 10bp cut in December. They also believe we will see upgraded forward guidance used to underline the ECB’s “absolute commitment” to the price stability mandate. If the Council is unable to strengthen forward guidance sufficiently, a new wave of net asset purchases may be required in the not too distant future. If so, the team would not be surprised by new QE of EUR30bn per month for a minimum 9-12 months split equally between public and private assets and with a commitment to relax the limits if necessary.

Ahead of this, fixed income rallied across Europe yesterday as the European preliminary PMIs for July showed the manufacturing sector continuing to disappoint – something the ECB will have to acknowledge. The manufacturing PMI for the Eurozone fell to its lowest in over six years at 46.4 (vs 47.6 last month), the German figure fell to a seven-year low of 43.1 (vs. 45.0) and France recorded a flat 50.0 (vs. 51.9) reading. The services readings also fell, but were mostly in line with expectations, with the Eurozone figure at 53.5 (vs. 53.6 last month), Germany at 55.4 (vs. 55.8) and France at 52.2 (vs. 52.9). In response, ten-year bund yields closed down –2.3bps with the previous on the run hitting a fresh all-time low of -0.423%. BTPs fell -10.9bps to a fresh one-year low on news that auctions had been cancelled, while Greek ten-year yields fell -5.7bps to close below 2% for the first time ever. That takes their yield to -6.2bps lower than US treasuries, their lowest level versus the US benchmark since October 2007. Treasuries joined the European rally with 10-year yields ending -3.8bps lower at 2.043%.

Despite the rally for rates and the tepid manufacturing surveys, equities mostly rallied yesterday. The S&P 500 gained +0.47% to 3019.6, a new all-time high. The DOW (-0.29%) again lagged as Boeing (-3.12%) and Caterpillar (-4.48%) dragged on the index after their earnings reports. Boeing saw a net loss of -$2.94bn in the second quarter, paired with a -35% yoy drop in revenues, as the company continues to suffer from the grounding of the 737 MAX. Caterpillar is viewed as a global macro bellwether, and overall its guidance was soft, saying they expect profits “to be at the lower end” of their full-year outlook range. Digging into their results showed healthy sales growth in North America (+11%) and Latin America (+9%), but weakness in Europe, Africa, and the Middle East (-6% combined) and in Asia (-7%), which is consistent with the general trend of US macro outperformance.

Away from industrials, tech was also in focus yesterday. The NASDAQ and Philly semiconductor indexes advanced +0.85% and +3.10%, respectively, both to new record highs. The sector benefited from positive sentiment post Texas Instrument’s (+7.44%) strong earnings report from Tuesday night, plus further strong guidance from Taiwan Semiconductor Manufacturing co, the world’s biggest chipmaker. Facebook (+0.80% after hours) posted strong revenue and active users figures, which ended up trumping new regulatory headwinds for the company. Facebook announced that the Federal Trade Commission has opened an antitrust investigation of the company, which comes after Facebook said earlier that it had agreed to pay a $5bn settlement and accept new privacy restrictions on its social media platform, to address a separate investigation.

This morning in Asia markets are largely trading up with exception of the Kospi which is -0.60%. The Nikkei (+0.36%), Hang Seng (+0.26%) and Shanghai Comp (+0.29%) are all up. The Australian dollar is trading down -0.07% after the country’s central bank chief Philip Lowe said that he’s ready to ease policy further if his recent back-to-back cuts fail to revive economic growth and flagged “an extended period” of low interest rates. Elsewhere, futures on the S&P 500 are trading flat while those on the Nasdaq are down -0.26%. In terms of overnight data releases, South Korea’s preliminary Q2 GDP printed at +2.1% yoy (vs. +1.9% yoy expected and +1.7% yoy last quarter). In details it showed that private-sector investment shaved 0.5pp off quarterly growth, meaning government investment drove the expansion and underlines the fragility of the rebound in growth.

In other overnight news, India is considering an option to raise $10bn from its first sovereign foreign currency bond offering with bonds likely to be denominated in either the Japanese yen or euros to take advantage of lower yields. The proposed offering could come to markets in October. Elsewhere, North Korea launched at least two short-range missiles into the sea east of the Korean Peninsula, stepping up pressure on the US as it tries to resume nuclear disarmament talks with Pyongyang and bringing geopolitical risks back into some focus.

Back to yesterday and in the UK, Boris Johnson was appointed by the Queen as the prime minister yesterday, facing perhaps the most difficult set of circumstances of any incoming PM for decades. On the steps of Downing Street, Johnson struck an aggressive tone on Brexit, reiterating that the decision of the referendum in 2016 must be respected. He said he wanted to reach a “new deal” with the EU, with the backstop removed, and see the country leave on the October 31 deadline “no ifs or buts”. Johnson also said that he would prepare for a no-deal outcome and that “the doubters, the doomsters, the gloomsters are going to get it wrong again.” In a letter to the incoming Prime Minister, European Council President Donald Tusk said pointedly that “I look forward to meeting you to discuss – in detail – our cooperation.”

Johnson began assembling his cabinet after his appointment, and the clear signal is that committed supporters of Brexit are in the key positions, and also those who support his pledge to leave the EU without a deal if necessary by October 31. Former DB employee Sajid Javid was appointed as Chancellor of the Exchequer, while Dominic Raab was made foreign secretary. In terms of the market reaction, sterling was unaffected by Johnson’s speech, although it strengthened +0.33% against the dollar before Johnson’s meeting with the Queen.

Without a general election, Johnson faces much the same constraints as his predecessor, in that his party lacks a majority in the House of Commons and relies on the DUP’s 10 MPs in order to win key votes. With an upcoming parliamentary by-election next week in Wales, where pro-EU Liberal Democrats are favourites to take the seat off the Conservatives (per the Independent), that could shrink even further. So the honeymoon won’t last long.

In terms of other data released yesterday, the flash PMIs from the US also saw an increasing divergence between manufacturing and services, repeating the theme seen in Europe. The manufacturing reading fell to a flat 50.0 (vs. 50.6 last month), its lowest level since 2009, while the services reading rose to 52.2 (vs 51.5 last month). Elsewhere, the new home sales data disappointed, with the 646k reading for June below the 658k expected, while the previous month’s reading was revised down by 22k. In France, the Insee’s business climate indicator fell by one point to 105 in July (vs. 106 expected). The business climate indicators for both the manufacturing and services indicators also fell by one point, to 101 and 106 respectively, while the employment climate reading rose by one point to 107.

In terms of the day ahead, the aforementioned ECB policy decision and press conference will be the highlight, (along with Prime Minister Johnson’s first appearance as PM in the House of Commons). Looking at data releases, we have US durable goods orders, wholesale inventories, and weekly initial jobless claims. There’ll also be the Kansas City Fed’s manufacturing index, the German Ifo Survey, and the latest CBI data from the UK. Elsewhere, Amazon and Alphabet will be announcing earnings.

 

3A/ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 14.08 POINTS OR 0.48%  //Hang Sang CLOSED UP 70.26 POINTS OR 0.25%   /The Nikkei closed UP 46.98 POINTS OR 0.22%//Australia’s all ordinaires CLOSED UP .58%

/Chinese yuan (ONSHORE) closed UP  at 6.8734 /Oil UP TO 56.51 dollars per barrel for WTI and 64.08 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.8734 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8735 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

end

3 c CHINA AND CHINESE AFFAIRS

This is not good:  Beijing hints that it could send in troops into Hong Kong if the protests do not stop.  What will the USA do?

(zerohedge)

“This Cannot Be Tolerated”: Beijing Hints It Could Send Troops Into Hong Kong If Protests Don’t Stop

A few days after another round of violent protests rocked Hong Kong, Beijing on Wednesday issued its harshest warning yet to the citizens of Hong Kong:It sought to remind them that Beijing has the authority to mobilize the People’s Liberation Army garrison in Hong Kong if it felt that the central government’s authority was threatened.

The New York Times reports that the warning was part of the unveiling of the Communist Party’s new “defense strategy” which relied heavily on demonizing the western powers – an oblique reference to the US and the UK – for encouraging the protests.

Col. Wu Qian

 

Citing the Sunday protests, Senior Col. Wu Qian, a spokesman for China’s defense ministry, implied that the destructive behavior – protesters painted the central government’s liaison office with graffiti, the latest example of the extradition bill protests leading to the vandalism of government buildings – was swiftly straining the patience of Beijing.

“The behavior of some radical protesters challenges the central government’s authority, touching on the bottom line principle of ‘one country, two systems,'” Colonel Wu said during a news conference in Beijing where he laid out the government’s new strategy. “That absolutely cannot be tolerated.”

When pressed, Wu said that “Article 14 of the Garrison Law has clear stipulations,” and refused to elaborate, the SCMP reports.

Hong Kong’s government would need to request the garrison’s assistance, like it does during a natural disaster.\

In response, a spokesman for the Hong Kong government said on Wednesday that the city was “fully capable” of dealing with its own affairs.

“There is no need to ask for assistance from the garrison,” he said.

Eric Chan Kwok-ki, director of the Chief Executive’s Office, dismissed Wu’s reference to the Garrison law, suggesting that it wasn’t a threat.

“This is nothing new,” he said. “The Hong Kong government has no plan to seek help from the [PLA Hong Kong] garrison in accordance with that provision.”

The press conference coincided with the release of a new defense report – the first to be published since the beginning of Xi Jinping’s second term – that identified these same ‘western powers’ as a threat to global stability. It’s one of the clearest signs yet that Beijing views the US as its key geopolitical adversary, and is ready to strike back should Washington continue to ‘support’ Taiwan by supplying it with advanced arms. The paper restated Beijing’s goal of eventually presiding over the ‘reunification’ of Taiwan with mainland China – and notably didn’t rule out the use of force.

Notably, the paper accused the US of jeopardizing international stability by expanding its nuclear arsenal, boost its missile defenses and cyberwarfare capabilities and weaponize outer space (remember the Space Force?).

The defense plan also criticized Taiwanese President Tsai Ing-wen’s Democratic Progressive Party for “stepping up efforts to sever the connection with the mainland.” Hong Kong, of course, is governed by officials selected by Beijing, but the protests have posed their own unique problems for the Communist Party.

Circling back to the press conference, Col. Wu cited the specific laws detailing relations between Hong Kong and Beijing that would allow the PLA to intervene. Notably, Hong Kong wasn’t specifically mentioned in China’s new defense paper, but Wu relayed the above-mentioned warning and the Communist Party’s view on the situation in response to a question asked by the ‘press’. Not long before Wu spoke, Hong Kong police arrested six men for partaking in Sunday’s protests and a similarly violent episode that took place on July 1. Some of these men reportedly had links to ‘triad’ criminal gangs.

Protests have been ongoing in Hong Kong since mid-June, in response to the HK government’s fast-tracking of a controversial extradition bill that would have empowered Beijing to extradite people from Hong Kong (both citizens and people just passing through) something that would give it unprecedented powers to crack down on dissidents.

If the PLA were to ‘intervene’ in the protests, local financial markets would probably melt down (HK’s stock market has performed remarkably well despite the protests). Western powers would also condemn China’s actions, and it might impact the prospects for a permanent trade truce to the US. But would the West actually do anything to stop them? That’s extremely unlikely.

END

CHINA/USA

The USA is sending a little reminder to the China that Taiwan is still in the USA sphere of influence

(zerohedge)

US Sends Warship Through Taiwan Strait Hours After China Warns It Is Ready For War

The US military said on Wednesday that a guided-missile cruiser had sailed through the Taiwan Strait just hours after the Chinese military criticized Washington for “adding complexity to regional security” and warned it to stay clear of the island or else risk war.

Trump’s support for Taiwan, which recently was cleared by Congress to purchase over $2 billion in US weapons, is among a growing number of flashpoints in the U.S.-China relationship, which include a trade war, U.S. sanctions and a growing geopolitical conflict in the South China Sea, where China has been expanding its military presence while the United States conducts freedom-of-navigation patrols.

The warship sent to the 112-mile-wide Taiwan Strait was identified as the Antietam. “The (ship’s) transit through the Taiwan Strait demonstrates the U.S. commitment to a free and open Indo-Pacific,” Commander Clay Doss, a spokesman for the U.S. Navy’s Seventh Fleet, said in a statement. “The U.S. Navy will continue to fly, sail and operate anywhere international law allows,” he added, quoted by Reuters.

 

USS Antietam 

The defiant move comes shortly after China warned that it is ready for war if necessary, to prevent any attempts to split the island from the mainland, or any push toward Taiwan’s independence, and accusing the United States of undermining global stability and denouncing its arms sales to the self-ruled island.

While the voyage will further escalate tensions with China, it will also be viewed by self-ruled Taiwan as a sign of support from U.S. President Donald Trump’s administration amid growing friction between Taipei and Beijing.

While the United States has no formal ties with Taiwan but is bound by law to help provide the island with the means to defend itself and is its main source of arms. Meanwhile, China has been ramping up pressure to assert its sovereignty over the island, which it considers a wayward province of “one China” and sacred Chinese territory.

On Wednesday, Chinese Defense ministry spokesman Wu Qian told a news briefing on a defense white paper, the first like it in several years to outline the military’s strategic concerns, that China would make its greatest effort for peaceful reunification with Taiwan.

“If there are people who dare to try to split Taiwan from the country, China’s military will be ready to go to war to firmly safeguard national sovereignty, unity and territorial integrity,” he said, in a clear warning to the US.

Commenting on the white paper’s implications, China’s notorious twitter troll, Hu Xijin, editor in chief of the nationalist Global Times, said “there are few possibilities and necessities for China to possess military power to provoke the US. But if attacked by the US, China must be able to cause unbearable losses to the US.

Hu Xijin 胡锡进

@HuXijin_GT

There are few possibilities and necessities for China to possess military power to provoke the US. But if attacked by the US, China must be able to cause unbearable losses to the US. https://twitter.com/PDChina/status/1153853653616173057 

People’s Daily, China

@PDChina

China’s white paper on national defense in new era:

-China will never seek hegemony, expansion or spheres of influence

– China will pursue a national defense policy that is defensive in nature

View image on Twitter

There are few possibilities and necessities for China to possess military power to provoke the US. But if attacked by the US, China must be able to cause unbearable losses to the US.

In recent years, China has repeatedly sent military aircraft and ships to circle Taiwan on exercises – usually around the time US had sent its own ships in the vicinity – and worked to isolate it internationally, whittling down its few remaining diplomatic allies.

end

Bank of Jinzhou about to enter bankruptcy protection.  They have over 100 billion dollars worth of assets

(zerohedge)

Chinese Bank With $100 Billion In Assets Is About To Collapse

While the western world (and much of the eastern) has been preoccupied with predicting the consequences of Trump’s accelerating global trade/tech war and whether the Fed will launch QE before or after it sends rates back to zero, Beijing has quietly had its hands full with avoiding a bank run in the aftermath of Baoshang Bank’s failure and keeping the interbank market – which has been on the verge of freezing – alive.

Unfortunately for the PBOC, Beijing was racing against time to prevent a widespread panic after it opened the Pandora’s box when it seized Baoshang Bank, the first official bank failure in an odd replay of what happened with Bear Stearns back in 2008, when JPMorgan was gifted the historic bank for pennies on the dollar.

And with domino #1 down, the question turned to who is next, and could it be China’s Lehman.

As a reminder, back in May, shortly after the shocking failure of China’s Baoshang Bank (BSB), and its subsequent seizure by the government – the first takeover of a commercial bank since the Hainan Development Bank 20 years ago – the PBOC panicked and injected a whopping 250 billion yuan via an open-market operation, the largest since January. Alas, as we said at the time, it was too little to late, and with the interbank market roiling, with Negotiable Certificates of Deposit (NCD) and repo rates soaring (in some occult cases as high as 1000%) we said that it’s just a matter of time before another major Chinese bank collapses.

And, in order to present the list of the most likely candidates, will picked those names that – just like Baoshang – had delayed publishing their latest annual reports, the biggest red flag suggesting an upcoming solvency “event.” The list is below.

We were right, because not even two months later, the second biggest bank on the list, Bank of Jinzhou has crawled in Baoshang’s foosteps and is about to be seized by the government.

According to Reuters and Bloomberg, Bank of Jinzhou recently met financial institutions in its home Liaoning province to discuss measures to deal with liquidity problems, and in a parallel bailout to that of Baoshang, the bank was in talks to “introduce strategic investors” after a report that China’s financial regulators are seeking to resolve its liquidity problems sent its dollar-denominated debt plunging.

Officials including those from the People’s Bank of China and China Banking and Insurance Regulatory Commission recently held a meeting with financial institutions in Bank of Jinzhou’s home province of Liaoning to discuss measures to resolve the lender’s liquidity issues, Reuters reported Wednesday.

In response to market fears the bank issued a statement on Thursday that “currently, Bank of Jinzhou’s business operations are normal overall,” which however did not refer to its liquidity situation. “Recently, the bank’s board of directors and some major shareholders have been in talks with several institutions that wish to and have the ability to to become strategic investors” adding that talks have been “going smoothly.”

By strategist investors it of course meant banks, backstopped by the government, who would “absorb” the bank, effectively nationalizing it a la what happened with Baoshang. The only question is whether stakeholders would also be impaired.

As we reported in June, Jinzhou’s Hong Kong-listed shares have been suspended since April after it failed to disclose its 2018 financial statements; adding to its woes, its auditors Ernst & Young Hua Ming LLP and Ernst & Young resigned. As the bank – which first got in hot water in 2015 over its exposure to the scandal-ridden Hanergy Group – wrote in a filing on the Hong Kong Stock Exchange, E&Y was first appointed as the auditors of the Bank at the last annual general meeting of the Bank held on 29 May 2018 to hold office until the conclusion of the next annual general meeting of the Bank. That never happened, because on 31 May 2019, out of the blue, the board and its audit committee received a letter from EY tendering their resignations as the auditors of the Bank with immediate effect.

The reason for the resignation: the bank refused to provide E&Y with documents to confirm the bank’s clients were able to service loans, amid indications that the use of proceeds of certain loans granted by the Bank to its institutional customers were not consistent with the purpose stated in their loan documents.

As a result, “after numerous discussions and as at the date of this announcement, no consensus was reached between the Bank and EY on the Outstanding Matters and the proposed timetable for the completion of audit.” At this time, the bank also requested the trading in the H shares (which was frozen on April 1) on The Stock Exchange of Hong Kong Limited to be suspended until the publication of the 2018 Annual Results, which will likely never come.

There is another reason why this particular failure is notable: Bank of Jinzhou is the second-most reliant on interbank financing, particularly non-bank financial institutions’ deposits, among more than 200 local banks, according to UBS analyst Jason Bedford said when reached by phone on Thursday.

Which explains its failure: just last month we reported that China’s interbank market, especially for smaller banks, had effectively frozen. It was therefore only a matter of time before other banks reliant on it for funding threw in the towel, as Jinzhou has now done. To wit, Jinzhou’s Its dollar-denominated loss-absorbing debt instruments, known as AT1 bonds, plunged near all time low…

… while the bank’s seven negotiable certificates of deposits – which would be taken over by another, bigger bank when (if) the bank is seized and bailed out, were indicated at yields ranging from 3%-5.5% on Thursday, higher than valuations of 2.8%-3.45%.

Incidentally, back in early June when first reporting on the resignation of the bank’s auditors, we said that “the real question facing Beijing now is how quickly will Bank of Jinzhou collapse, how will Beijing and the PBOC react, and what whether the other banks on the list above now suffer a raging bank run, on which will certainly not be confined just to China’s small and medium banks.”

The answer: less than 2 months.

Unfortunately for China, it won’t stop there. As a reminder, China’s smaller lenders have been under growing scrutiny since Baoshang Bank’s failure and takeover which led to a sharp repricing of risk for much of China’s banking system which had long operated under an assumption that policy makers would support firms in trouble.

“We expect the regulators to step up their support if more financial institutions run into liquidity issues,” said Becky Liu, head of China macro strategy at Standard Chartered Plc, who declined to comment directly about Bank of Jinzhou. “Over time, the cost of funding between the stronger and weaker financial institutions will see further divergence.”

4/EUROPEAN AFFAIRS

ECB

The ECB sets the stage for a September cut of at least 10 basis points as they signal that they will try and match the USA.  The lowering of rates in Europe which are already negative will have a devastating effect on the banks

(zerohedge)

ECB Sets Stage For September Rate Cut; Will Examine QE, Tiering In Pursuit Of Inflation Target

As expected, the ECB did not cut rates at today’s rate cut, but in a move that was widely expected, the ECB did hint that rate cuts are coming, by adding the “or lower” language, when saying that “Governing Council expects the key ECB interest rates to remain at their present or lower levels at least through the first half of 2020.”

Translation: a 10bps rate cut is now assured.

But wait, there was more, with the central bank noting the “need for a highly accommodative stance of monetary policy for a prolonged period of time, as inflation rates, both realised and projected, have been persistently below levels that are in line with its aim.” As a result, the Governing Council noted that it was “determined to act, in line with its commitment to symmetry in the inflation aim. It therefore stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner.”

In other words, if the Fed is cutting, the ECB will also be cutting, and since the Fed launched “symmetric” inflation targeting, i.e. overshooting inflation to the upside, so will the ECB (how it will get there is another matter entirely).

Finally, the ECB also hinted that QE may be coming as soon as September, noting that the Governing Council “has tasked the relevant Eurosystem Committees with examining options, including ways to reinforce its forward guidance on policy rates, mitigating measures, such as the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases.”

As a reminder, earlier this week we noted an analysis from Goldman, explaining why cutting rates without tiering would be disastrous for European banks, which is why – lo and behold – Draghi (formerly of Goldman) announced just that – tiering is coming, which is good news for Europe’s bank and is the reason why they have jumped on the news of even lower rates.

In short, the race to the currency bottom has arrived.

Full ECB statement below:

At today’s meeting the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively. The Governing Council expects the key ECB interest rates to remain at their present or lower levels at least through the first half of 2020, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to its aim over the medium term.

The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time past the date when it starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.

The Governing Council also underlined the need for a highly accommodative stance of monetary policy for a prolonged period of time, as inflation rates, both realised and projected, have been persistently below levels that are in line with its aim. Accordingly, if the medium-term inflation outlook continues to fall short of its aim, the Governing Council is determined to act, in line with its commitment to symmetry in the inflation aim. It therefore stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner.

In this context, the Governing Council has tasked the relevant Eurosystem Committees with examining options, including ways to reinforce its forward guidance on policy rates, mitigating measures, such as the design of a tiered system for reserve remuneration, and options for the size and composition of potential new net asset purchases.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.

And now we await Draghi’s press conference in just over half an hour.

end

 

Draghi has now fired his bazooka and as such yields crash across all of Europe as well as the USA. This is very good for gold and silver.

(zerohedge)

European Bond Yields Crash To Record Lows After Uber-Dovish Draghi

Draghi fired his forward-guiding-bazooka and bond yields across Europe (and UST) tumbled in obeyance…

German and French yields crashed to record lows…

And while yields are sliding and the curve flattening, EU banks are bid

Finally, we note that all of Europe’s bond yields now trade below US Treasury yields

And while Greece has been trading inside the UST 10Y for a few days, Poland has now joined the sub-UST club…for the first time ever.

end

Draghi’s bazooka is a dud:  Bonds dump  (yields rise), stocks dump with the Euro rising a bit.

The market is not happy with waiting..they want action now.

(zerohedge)

Is Draghi’s Bazooka A Dud? Bonds & Stocks Dump As Euro Spikes

It appears the market is disappointed in Draghi promising – but not delivering anything…

Piet P.H. Christiansen (@pietphc), Danske Bank ECB analyst, points to a lack of detail provided on the latest package:

No meat on the bone on what the package / stimuli might entail.

The European Central Bank is waiting for new economic forecasts before pressing the button on new stimulus that would require preparation in a situation that remains complex, President Mario Draghi says.

 

Draghi says he told the Group of Seven meeting earlier in July that “it’s difficult to be gloomy today” because there are signs of strength, even if there is quick deterioration in other areas.

But the markets didn’t like his lack of action.

Euro is spiking off kneejerk selling…

 

Global yields are reversing dramatically higher…

 

And stocks are tumbling…

 

And all of this after Draghi said significant monetary stimulus is needed.

UK

BoJo sacks many of his cabinet with half of them gone and more is coming.  He is promising to deliver Brexit

(Mish Shedlock)

BoJo Meets The Queen Then Cleans House: 10 Sacked, 4 Quit, 2 Retired

Authored by Mike Shedlock via MishTalk,

Boris Johnson makes sweeping cabinet changes. Half are gone, more coming. He reiterates his promise to deliver Brexit.

Cleaning House

Laura Kuenssberg

@bbclaurak

This is officially the biggest clear out of Cabinet without a change of party in power – more than half of them gone – not a reshuffle it’s a new govt

Tom Newton Dunn

@tnewtondunn

What we know so far: half the Cabinet – 16 – have gone in the most brutal reshuffle in decades.

Sacked (10, so far):
Hunt
Mordaunt
Fox
Clark
Hinds
Bradley
Wright
Mundell
Brokenshire
Nokes

Resigned (4):
Hammond
Gauke
Stewart
Perry

Retired (2):
Grayling
Lidington

Excellent First Speech

In contrast to his victory speech, Johnson made an Excellent First Speech as Prime Minister today.

War on Pessimists: At speech beginning “And so I am standing before you today to tell you, the British people, that those critics are wrong – the doubters, the doomsters, the gloomsters – they are going to get it wrong again. The people who bet against Britain are going to lose their shirts because we are going to restore trust in our democracy.” …. At end of speech: “No one in the last few centuries has succeeded in betting against the pluck and nerve and ambition of this country. They will not succeed today.”

Pledge to Unite the Country: “And I will tell you something else about my job. It is to be prime minister of the whole United Kingdom. And that means uniting our country, answering at last the plea of the forgotten people and the left behind towns by physically and literally renewing the ties that bind us together, so that with safer streets and better education and fantastic new road and rail infrastructure and full fibre broadband we level up across Britain.”

Delivering Brexit: “We will come out of the EU on October 31. And it is of course vital at the same time that we prepare for the remote possibility that Brussels refuses any further to negotiate and we are forced to come out with no deal – not because we want that outcome – of course not – but because it is only common sense to prepare.”

Delivering Growth, allowing GMOs: He called for tax cuts to promote investment in capital and research. He reaffirmed his commitment to free ports. “Let’s start now to liberate the UK’s extraordinary bioscience sector from anti genetic modification rules and let’s develop the blight-resistant crops that will feed the world. ”

Early Elections: Guardian Analysis – He implied that an early election was likely. At one point Johnson seemed to by toying with his audience, as if he was about to announce an election. He didn’t, but everything he said about his domestic agenda suggested he will soon want to get a decent majority, because without one his ambitions cannot be achieved.

Speech Lifted from Bill Clinton?

Bill Clinton said almost the same thing in his speech to the 2012 Democratic convention (one of the best political speeches of modern times). In his peroration Clinton said:

Look, I love our country so much. And I know we’re coming back. For more than 200 years, through every crisis, we’ve always come back. (Cheers.) People have predicted our demise ever since George Washington was criticised for being a mediocre surveyor with a bad set of wooden false teeth. (Laughter.) And so far, every single person that’s bet against America has lost money because we always come back. (Cheers, applause.) We come through ever fire a little stronger and a little better.

New Chancellor

Sajid Javid

@sajidjavid

Deeply honoured to be appointed Chancellor by PM @BorisJohnson. Looking forward to working with @hmtreasury to prepare for leaving the EU, unifying our country and priming our economy for the incredible opportunities that lie ahead.

Lis Truss who wanted a cabinet spot.

Liz Truss

@trussliz

Excellent appointments for the Great Offices of State. @sajidjavid, @patel4witham and @DominicRaab all modern, positive, free-enterprise Conservatives.

Cabinet from Hell Donald Trump Would Be Proud Of

Scottish MP Pete Wishart offered this assessment:

Boris Johnson’s nightmare Tory government is shaping up to be the worst since Thatcher – packed full of extreme Brexiteers and rabid rightwingers who want to drag us back to a bygone era.

Senior Tory cabinet ministers have threatened to cut Scotland’s budget, roll back devolution, and impose a devastating Brexit – that would inflict serious harm on Scottish jobs, living standards, public services and the economy.

This is a Tory cabinet from hell, which Donald Trump or Nigel Farage would be proud of – with members who want to scrap the Barnett formula, privatise the NHS, roll back workers’ rights, undo the welfare state, cut taxes for the rich, and even bring back the death penalty.

Hunt Decides to Become a Good Dad

Jeremy Hunt

@Jeremy_Hunt

1/4 I would have been honoured to carry on my work at the FCO but understand the need for a new PM to choose his team. BJ kindly offered me another role but after 9 yrs in Cabinet & over 300 cab mtgs now is the time to return 2 backbenches from where PM will have my full support

Jeremy Hunt

@Jeremy_Hunt

1/4 I would have been honoured to carry on my work at the FCO but understand the need for a new PM to choose his team. BJ kindly offered me another role but after 9 yrs in Cabinet & over 300 cab mtgs now is the time to return 2 backbenches from where PM will have my full support

Jeremy Hunt

@Jeremy_Hunt

2/4 I’ve been a cabinet minister for every hour my 3 gorgeous children have been alive. So whilst it may seem strange for someone who just tried to become PM (& is a terrible cliche) I have decided now is the time for the biggest challenge of all – to be a GOOD DAD!

Hunt Supporters Sacked

  • Greg Clark, the business secretary, has also been sacked. Clark voted remain in 2016 and is strongly opposed to a no-deal Brexit, and as a result was never expected to be offered a post in a Boris Johnson cabinet. But unlike his fellow cabinet no-deal opponents Philip Hammond, David Gauke and David Lidington, Clark chose not to resign pre-emptively. He wanted to force Johnson to sack him.
  • It is starting to look like a cull of Jeremy Hunt supporters. Liam Fox, the international trade secretary, and another Brexiter, has been sacked. He had made it clear that he wanted to stay in his post. But he probably did not help his chances in recent weeks by publicly contradicting some of the claims Boris Johnson was making about a no-deal Brexit.
  • Penny Mordaunt, the defence secretary, has left the government. Although Mordaunt backed Jeremy Hunt for the leadership, she voted leave in 2016 and is well-regarded as a cabinet minister. With Boris Johnson keen to increase the number of women in his cabinet, many people assumed her job was secure.

Nigel Farage Comments on Dominic Raab, the New Foreign Secretary

I heard Jeremy Hunt talking just two days ago about shipping in the Gulf, and the need to build a European protection force, a European navy. I would much rather see someone like Dominic Raab [as foreign secretary], who believes in Brexit and doesn’t want us being part of a European army.

Congratulations Boris Johnson

What an excellent first day as Prime Minister.

end

Bill Blain’s morning porridge.  His topics this morning:

  1. The ECB and their delayed interest rate cuts
  2. Boeing and their costs due to the grounding of the Max 737 Max
  3.  Tesla
  4. German autos

(courtesy Bill Blain)

Blain: “The ECB Likes To Wait And See, Then Wait Some More”

Blain’s Morning Porridge, submitted by Bill Blain

“The temperature’s rising, it isn’t surprising.. “

Lots of stuff to think about this morning – will weakening European manufacturing and orders cause the ECB to make an early slice on European rates? What will a cut from -Ve 0.4% in European rates actually do? (Clue – what is the very smallest thing you can think of.) The market thinks the ECB might act – which is why European bond yields continue to spiral lower. I reckon it’s unlikely – the ECB likes to wait and see, then wait some more. I think the September meeting will be a much more dramatic moment; one meeting before Draghi’s last and Legarde takes over. Reopening the QE asset purchase programmes is more problematical – the shortage of Bunds and the EBC’s rules about proportionality means it is at its limits on some country debt!

Next week we have the Fed meeting to look forward to. Whoopee..

Boeing’s warning it may stop production of the B-737 Max is fascinating. Thus far the company has “burnt” some $1 bln plus in unsold plane costs. That’s the cost of building a plane, parking it on the apron, and not getting paid for it. That number is growing as each month it adds another 42 unsold but costly to build lumps of metal to the parking lot. The CEO says he “can’t foot the extra expenses indefinitely”. No S**t Sherlock. There is still no clear timeline to get the plane back in the air – assuming anyone will still want to fly it.

Boeing results yesterday were… “interesting” – confirming the new B777x is going to be delayed – which is exactly what we expected: the company has been forced to totally rethink branding completely new aircraft as “upgrades” to aid sales and cut regulatory costs.It’s a spectacular backfire – yet Boeing stock is only down some 14% since the second Max crash. I still think it could get worse as the market understands what a long-term technical and reputational hole the company has dug itself into. Fubar describes it nicely.

Back in Yoorp, Germany’s auto-industrial sector is not a happy place. They are still struggling with the legacy of falsified emission tests, and now its slumping China demand and the possibility their biggest external European market, the UK, will be closed to them.  How bleak is the future for conventional Autos?

Which brings us to you know who… The best argument for buying Telsa is that they are clearly the leader in Electric Vehicles. Supporters of Tesla point to the fact it is now building more cars than ever, the smokestack petrol obsolescence of the leading car makers (including the German superbrands), and that none of them are catching Tesla. It is top of many car buying league tables in the US – best selling premium car! Should I be worried the demand charts all seem to be flat at the top of their respective S-Curves? Of course not – so I am told.

Tesla delivered nearly 100,000 cars in Q2, but it’s posted another set of poor results and a $400mm loss. Cutting the price and margin, and the lease cost on the Model 3 shifted cars. I’m told it doesn’t matter – its selling cars and will get to 400k cars per annum! Are you sure cutting margins and losing money doesn’t matter? It’s producing more of its cheaper, lower margin models, and it just got rid of the co-founder JB Straubel. It’s still struggling to build cars – production lines are still in tents at its Fremont factory – although it should open a new Shanghai plant by year end.

I’m told these production, margin and distribution problems are just growing pains, and Tesla’s Model 3 (because the S and the X are now very long toothed) is the future – a car the world and America wants. Once Tesla get’s production sorted, then it’s a screaming buy? If its selling lots of cars, and can charge premium prices for them.. Why not?

But what if it is not? My big doubt about Tesla is competition. It’s still in competition with conventional car makers. While stock market minnow Ford might make petrol-punk pick-ups and SUVs, it makes money.  Tesla is also in competition for Electric vehicles – back in May, Tesla sold 1000 of its Model X in the US. Audi sold 856 of its more expensive e-Tron SUV. Even the Jag I-Pace (which I’ve driven) sold over 200. (And sure, the X is a very old car, but the e-Tron barely beats it.) Even the new Porsche SUV E-car the Taycan EV can’t beat the old Tesla S on speed – and its nearly twice the price!

How much longer can Tesla stay ahead of the opposition? Other car makers are not blind to the changing opportunity. Can Tesla stay ahead long enough for it to become a real, profitable car maker, and then deliver all the other distractions Musk focuses on? I am not utterly convinced.. but prepared to listen to the arguments. Tesla stock took a pounding last night on the losses..

Another problem facing the German car makers is logistics. Years and years ago I was exploring the Bloomberg and discovered it has the depth of the River Rhine somewhere in its base info. That’s a critical measure in Germany – as the Rhine gets lower because the extraordinary summer heat, the amount of “stuff” Germany ships around on it gets trapped. Great story on BBerg – well worth a read. Basically, its not just heat from Africa we should be worried about, but disappearing glaciers mean Europe’s major rivers are drying up. Last week I read the permafrost that holds the Alps together is melting, and iconic mountains like the Matterhorn are collapsing and becoming too dangerous to climb.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY

Turkey lowers his benchmark rate by a whopping 425 basis points from 24% down to 19.75%. Food inflation is still rampant in Turkey. Their overall inflation rate is around 26%.  At first the Lira plummeted but then we had central bank intervention to stabilize the Lira.  Expect in short order the Lira to plummet big time and that will cause considerable damage to Turkey

(zerohedge)

Turkish Lira Plunges Then Soars After CBRT Cuts Benchmark Rate By A Whopping 425bps

When Turkish president Erdogan sacked the now former Turkish central bank head Ceitnkaya two weeks ago because the latter refused to ease monetary policy despite the country’s surging inflation and tumbling currency, it was no longer a question if the central bank would cut rates but by how much.

We got the answer this morning, when the CBRT (and it new head) announced that it slashed the benchmark 1-week repo rate by a whopping 425bps, from 24% to 19.75%, almost double the 250bps consensus expectation of a Bloomberg survey, due to “a moderate recovery in the economic activity.”

This is how the CBRT justified its decision to follow Erdogan’s demands for lower rates for this massive cut which will make the TRY a far less attractive carry currency, and likely lead to a resumption of the TRY’s devaluation:

Recently released data indicate a moderate recovery in the economic activity. Goods and services exports continue to display an upward trend despite the weakening in the global economic outlook, indicating improved competitiveness. In particular, strong tourism revenues support the economic activity through direct and indirect channels. Looking forward, net exports are expected to contribute to the economic growth and the gradual recovery is likely to continue with the help of the disinflation trend and the partial improvement in financial conditions. The composition of growth is having a positive impact on the external balance. Current account balance is expected to maintain its improving trend.

Recently, weaker global economic activity and heightened downside risks to inflation have strengthened the possibility that advanced economy central banks will take expansionary monetary policy steps. While these developments support the demand for emerging market assets and the risk appetite, rising protectionism and uncertainty regarding global economic policies are closely monitored in terms of their impact on both capital flows and international trade

 

The CBRT also saw little risk in runaway inflation accelerating from here, despite prices – especially food – still soaring:

Inflation outlook continued to improve. In the second quarter, inflation displayed a significant fall with the contribution from a deceleration in unprocessed food and energy prices. Domestic demand conditions and the tight monetary policy continue to support disinflation. Underlying trend indicators, supply side factors, and import prices lead to an improvement in the inflation outlook. In light of these developments, recent forecast revisions suggest that inflation is likely to materialize slightly below the projections of the April Inflation Report by the end of the year. Accordingly, considering all the factors affecting inflation outlook, the Committee decided to reduce the policy rate by 425 basis points.

And while the initial kneejerk reaction was one expecting even more rate cuts, the CBRT did note that it would remain data-dependent and cautious on monetary policy, which prompted some to anticipate less easing in the future.

The Committee assesses that maintaining a sustained disinflation process is the key for achieving lower sovereign risk, lower long-term interest rates, and stronger economic recovery.  Keeping the disinflation process in track with the targeted path requires the continuation of a cautious monetary stance. In this respect, the extent of the monetary tightness will be determined by considering the indicators of the underlying inflation trend to ensure the continuation of the disinflation process. The Central Bank will continue to use all available instruments in pursuit of the price stability and financial stability objectives

 

In response, the Turkish lira initially tumbled as low as 5.7681, but then promptly retraced all losses, and has since soared as high as 5.6579, on what some suspect was central bank intervention to prevent the initial momentum from being in a downward direction.

END

This does not look good..Ukraine seizes a big Russian oil tankers..Russia threatens consequences..

(zerohedge)

Ukraine Seizes Russian Oil Tanker, Moscow Threatens “Consequences”

Authored by Tsvetana Paraskova via OilPrice.com,

Ukraine’s security services said on Thursday they had detained a Russian oil tanker that had blocked Ukrainian warships near Crimea in November, drawing reaction from Russia which vowed ‘consequences’ should Russians aboard the tanker be taken hostage.

On Thursday, Ukraine’s security service seized Russian tanker Neyma, which Ukraine believes took part in the incident in the Kerch Strait near Crimea in November 2018. 

Russia seized at the end of November three Ukrainian ships near Crimea in an incident that risked spilling over into a wider conflict between the two countries, exacerbating the disputes between Moscow and Kiev over oil and gas resources and infrastructure.

Russia—which annexed Crimea in 2014, for which the U.S. and the EU imposed sanctions on Moscow—said at the time that three Ukrainian vessels had violated its state border in waters near Crimea.

Ukraine, for its part, said that it had informed Russia about the plans for the ship movements and said that the seizing of the vessels was “another act of armed aggression” by Russia.

The November 2018 incident was the first open conflict between Russian and Ukrainian militaries in recent years. Tensions had been rising over the access to the Kerch Strait, where the incident took place, and the Sea of Azov.

Today, Ukraine said that it believes that the Neyma was the same ship with a changed name that took part in the seizure of the Ukrainian ships in November. The investigation found that the Neyma tanker changed its name to Nika Spirit to conceal its involvement in the “illegal acts and an act of aggression that took place on November 25, 2018,” Ukraine said.

Russia, for its part, said there would be consequences soon “if Russians have been taken hostages.”

Russian lawmaker Vladimir Dzhabarov, who is deputy chairman of the committee on international affairs at Russia’s upper house of Parliament, said that Ukraine seizing the Russian tanker today was “absolutely illegal.” 

6.Global Issues

 

7. OIL ISSUES

 

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 1.1118 DOWN .0024 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 /ALL GREEN

 

 

USA/JAPAN YEN 108.10 DOWN 0.086 (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 1.2498   UP   0.0018  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3131 DOWN .0012 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  THURSDAY morning in Europe, the Euro FELL BY 24 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1118 Last night Shanghai COMPOSITE CLOSED UP 14.08 POINTS OR 0.48% 

 

//Hang Sang CLOSED UP 70.26 POINTS OR 0.25%

/AUSTRALIA CLOSED UP 0,58%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 70.26 POINTS OR 0.25%

 

 

/SHANGHAI CLOSED UP 14.08 POINTS OR 0.48%

 

Australia BOURSE CLOSED UP. 58% 

 

 

Nikkei (Japan) CLOSED UP 46.98 POINTS OR 0.22%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1432.16

silver:$16.60-

Early THURSDAY morning USA 10 year bond yield: 2.02% !!! DOWN 2 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.55 DOWN 2  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 97.79 UP 7 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing THURSDAY NUMBERS \11: 00 PM

Portuguese 10 year bond yield: 0.41% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.15%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.33%//DOWN  2  in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,52 DOWN 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 111 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.37% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.89% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1170  UP     .0027 or 27 basis points

USA/Japan: 108.46 UP .246 OR YEN DOWN 26  basis points/

Great Britain/USA 1.2484 DOWN .0002 POUND DOWN 2  BASIS POINTS)

Canadian dollar UP 17 basis points to 1.3086

 

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The USA/Yuan,CNY: AT 6.8725    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8691  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.6831 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.15%

 

Your closing 10 yr US bond yield UP 3 IN basis points from WEDNESDAY at 2.07 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.60 UP 2 in basis points on the day

Your closing USA dollar index, 97.59 UP 14  CENT(S) ON THE DAY/1.00 PM/

 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for THURSDAY: 11:00 PM

London: CLOSED DOWN 4.79  0.12%

German Dax :  CLOSED DOWN 194.94 POINTS OR 1.56%

 

Paris Cac CLOSED DOWN 45.48 POINTS 0.81%

Spain IBEX CLOSED DOWN 51.70 POINTS or 0.55%

Italian MIB: CLOSED UP 207.71 POINTS OR 0.94%

 

 

 

 

 

WTI Oil price; 56.68 11:00  PM  EST

Brent Oil: 63.91 11:00 EST

USA /RUSSIAN /   RUBLE RISES:    63.02  THE CROSS LOWER BY 0.23 RUBLES/DOLLAR (RUBLE HIGHER BY 23 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.37 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 :  55.83//

 

 

BRENT :  63.08

USA 10 YR BOND YIELD: … 2.08…

 

 

 

USA 30 YR BOND YIELD: 2.61..

 

 

 

 

 

EURO/USA 1.1147 ( UP 5   BASIS POINTS)

USA/JAPANESE YEN:108.64 UP .444 (YEN DOWN 44 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.79 UP 7 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2453 DOWN 32  POINTS

 

the Turkish lira close: 5.7014

 

 

the Russian rouble 63.21   UP 0.05 Roubles against the uSA dollar.( UP 5 BASIS POINTS)

Canadian dollar:  1.3162 DOWN 20 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8724  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8738 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.37%

 

The Dow closed DOWN 128.98 POINTS OR 0.47%

 

NASDAQ closed DOWN 82.96 POINTS OR 1.00%

 


VOLATILITY INDEX:  13.53 CLOSED DOWN .44

LIBOR 3 MONTH DURATION: 2.302%//libor dropping like a stone

 

USA trading today in Graph Form

Tesla Tumbles, Boeing Battered, Stocks & Bonds Dump On Draghi Disappointment

Steve Ballmer mimics the excitement in the room ahead of Draghi’s press conference…

But the euro shows the post-Draghi disappointment nothing-burger…

German Bund yields spiked as Draghi began speaking but buyers came back in after he finished with yields ending just 1bps higher on the day (after making a new record low)…

And the entire Swiss yield curve – out to 50Y – is now negative…

 

Chinese stocks lifted overnight with tech-heavy ChiNext outperforming…

 

US Small Caps were the day’s biggest loser (after being yesterday’s big winner).. weak close

 

“Most Shorted” stocks plunged by their most since May 13th…

 

S&P tested back below 3,000 intraday but was bid each time…

 

Dow Futures pushed down to 2-week lows…

 

Tesla was monkeyhammered 15% lower…

 

Boeing puked…

 

Facebook was FUBAR (after tagging record highs immediately after earnings)…

 

But BYND is beyond belief…

With a massive $875 mm (44.75% of float) short…

 

VIX mini flash-crashed to an 11 handle ahead of the bell as Draghi spoke but pushed back above 13 as stocks sank…

 

Which is notable since VIX calls have been aggressively bought…

 

HY Credit risk compressed on the day – despite the broader derisking, but VIX and IG risk increased…

 

Treasury yields jerked higher on Draghi’s disappointment today (up 3-4bps across the curve)…

 

10Y Yields spiked intraday from 2.00% to 2.10% before leaking a little lower…

 

The Dollar Index ended higher, despite the roundtrip on the EUR…

 

Bitcoin and Ethereum managed gains on the day but broadly speaking, Cryptos are lower on the week…

 

Bitcoin spent the day hovering around $10,000…

 

Commodities all drifted lower during the US day session…

 

Gold modestly outperformed silver for the first time in 10 days…

 

Finally, The Fed better cut now that The ECB has waited… USD liquidity measures are screaming for some help…

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Instead of rebounding durable good tumble year over year and this is no doubt due to the troubles of Boeing

(zerohedge)

Durable Goods Tumble Year-Over-Year Despite June Rebound

After May’s unexpected plunge, US Durable Goods Orders were expected to rebound modestly but instead, thanks to huge downward revision, Dur Goods surged 2.0% MoM… but at the weakest in 3 years on a YoY basis

This is the biggest MoM jump since Aug 2018…

 

The noisy aircraft orders segment continue to oscillate, affected by Boeing also.

 

  • Nondefense aircraft new orders +75.5%
  • Defense aircraft new orders -32.1%

But we note that year-over-year, Dur Goods Orders (NSA) are down 4.5% – the weakest in 3 years…

 

However, under the hood suggests some silver linings that The Fed is going to struggle to explain away.

A proxy for business investment – non-military capital-goods orders excluding aircraft – jumped 1.9% in June after a downwardly revised 0.3% increase in the prior month, according to Commerce Department figures Thursday that topped estimates.

The largest increase in equipment orders since February 2018 was broad-based and could ease concerns that the trade war with China and weakening global growth risk a deeper slowdown in the U.S. economy.

end

iii) Important USA Economic Stories

Brandon Smith believes that the Democrat that will fight against Trump will be Elizabeth (Pocahontas) Warren. We have been following Brandon Smith for quite a while. Here is his next take as to how things proceed once implosion begins. I originally thought it would be Kamala Harris but now I have come to the conclusion that it will be Warren facing Trump

(Brandon Smith)

It’s Obvious Who Will Replace Trump After The Controlled Demolition Of The Economy

Authored by Brandon Smith via Alt-Market.com,

In the months leading up to the 2016 election I had been predicting a Trump win based on a particular theory which I believe still holds true today – namely the theory that the global banking elites in power were allowing so-called “populist” movements in the US and Europe to gain political traction near the very end of the decade long “Everything Bubble”. Once populist groups were entrenched and feeling overconfident, the cabal would then tighten liquidity into existing economic weakness and crash the system on their heads. Populists would get the blame for an economic disaster that the central banks had engineered many years in advance.

Once enough suffering had been dealt to the populace, globalists and extreme leftists would arrive on the scene to offer anti-populism as a solution; meaning the centralization and socialization of everything on a scale never before witnessed except perhaps in the darkest days of the Bolshevik Revolution.

This theory allowed me to predict the success of the Brexit vote in the UK, Trump’s entry into the White House, the Federal Reserve’s interest rate hikes and balance sheet cuts into economic weakness, and now it is looking more and more like my March prediction of a “No Deal” Brexit will turn out to be correct with Boris Johnson rising to the position of Prime Minister. So, I continue to stand by it.

By extension, for a couple of years I have been examining the strange correlations between the background and policies of Donald Trump and the background and policies of Herbert Hoover; the Republican president that oversaw the great crash of 1929 and the beginning of the Great Depression.

One of Hoover’s first actions as president in response to the fiscal tensions of 1929 was to support increased tax cuts, primarily for corporations (this was then followed in 1932 by extensive tax increases in the midst of the depression). Then, he instituted tariffs through the Smoot-Hawley Act. His hyperfocus on massive infrastructure spending resulted in U.S. debt expansion and did nothing to dig the U.S. out of its unemployment abyss. In fact, infrastructure projects like the Hoover Dam, which were launched in 1931, were not paid of for over 50 years. Hoover ended up as a single-term Republican president who paved the way socially for Franklin D. Roosevelt, an thinly disguised communist and perhaps the most destructive president in American history.

It was Hoover and his “protectionist” policies that were blamed for the Great Depression (along with the gold standard), yet it was the Federal Reserve which created the entire calamity. The Fed’s policy easing in the 1920s led to the extensive bubble in banking and stock markets, and the Fed’s rate hikes and liquidity tightening in the early 1930’s exacerbated the crash and extended the depression for many years. Former Fed chairman Ben Bernanke even openly admitted that the Fed was responsible for the Great Depression in a speech made in honor of Milton Friedman in 2002. He stated:

“In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn.

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”

Of course, the Fed IS doing it again. For over a year and a half the Fed has been instituting liquidity tightening into economic weakness at the onset of the crash of one of the biggest financial bubbles in the history of the economic world. It is a bubble they created with the intention of deliberately imploding it, and the process has already begun. As I have noted numerous times, the crash in fundamentals is well underway, with almost every sector of the economy in retreat except the three indicators that the Fed and the government statistically manipulate: GDP, employment, and stock markets.

Trump is not innocent in this scheme, either. After months of rightly criticizing the Fed during his campaign for inflating a fake economy and stock market, Trump pulled a 180 on his supporters after becoming president and has now attached his administration so completely to the Everything Bubble (and stock markets in particular) that it is assured he and his conservative followers will take the blame as it collapses.

I am also not the only person noting the comparison between Trump and Herbert Hoover. Trump’s similarities to Hoover are being mentioned endlessly the past year in the mainstream and leftist media with a particular focus on the trade war. Trump’s trade conflicts are providing the perfect cover for the banking elites to pull the plug on the economy, while escaping any blame. The narrative is being set up for a crash and the plan is to make populists, nationalists and sovereignty activists the scapegoats.

So, the question is, if Trump is playing the role of a modern day Hoover, and the current crash in fundamentals is set to become another long term depression, then who is the next Franklin D. Roosevelt; the communistic president or political group to push America even further into the socialist fold?

It is hard to say at this time if Trump, like Hoover, will be a one term president. If the economic crash continues on its current pace then it is unlikely that Trump could secure a second term in 2020. That said, the advent of a shooting war with a country like Iran could conceivably change the dynamic even in the midst of a financial crisis.

Whether in 2020, or 2024, I believe Trump and the populist revolt will be replaced with a socialist fervor beyond anything we saw during the Obama Administration. Just as conservatives surprised the world in 2016, I believe the hard left will surprise the world in the next 5 years.

I find it rather suspicious the amount of media attention hard leftist politicians with little experience are receiving in the mainstream media these days. I am also suspicious of the amount of attention Donald Trump is paying to these same politicians in what appears to be another scripted wrestling match for the benefit of the public. Yes, I’m talking about the “four horsewomen of the Apocalypse” and the ongoing soap opera dramatics between them and Trump that continually keep these junior upstarts in the spotlight despite all reason.

It is perhaps very hard to notice right now in the middle of Trump fever, but I see the beginnings, the root or the seed, of a massive narrative change in the elevation of political extremists like Ayanna Pressley, Alexandria Ocasio-Cortez, Rashida Tlaib and Ilhan Omar, also known as “the squad”. Yes, they seem to be universally hated in Washington right now, and the abject failure of AOC’s “Green New Deal” makes it appear as if there is little support for their ideas, but again, look at how much attention these nobodies are accumulating…

I am reminded of the early hints of Barack Obama’s run for president even though he had little political experience compared to his opponents, most of it as a state senator. People running against him during his early career on the Democratic and Republican sides seemed to keep dropping out of the races due to sexual scandals. Then, Obama received overt attention from the mainstream media and even The Daily Show before he ever announced his run for the Oval Office. The build up was obvious for analysts that recognized the signals.  Obama had been anointed by the elites.

AOC and “the squad” are being marketed in a very similar manner to Obama; as hopeful, young, vibrant, full of energy and ready to take on the world.  The kind of cheesy, heart-clutching Disney movie sales pitch that Democrats and leftists go crazy for.

Today, comparatively “moderate” Democratic presidential candidates for 2020 such as Bernie Sanders and Elizabeth Warren are falling all over themselves to promote “the squad” and get their political approval and support. It is clear that hard line leftists are dictating the conversation on America’s future governmental path, and that path is one of extreme centralization, globalization, and bureaucratic tyranny in the name of fraudulent environmental panic.

Interestingly, Elizabeth Warren is garnering attention lately with her warnings of coming economic calamity under the Trump Administration.  Her observations are very obvious to most of us and not worth noting here; it’s nice that Warren is mentioning the prospect of economic danger in the mainstream, but she’s years late to the party.  I would point out, though, that this marks a turning point in the 2020 election conversation.  Suddenly, the Democrats are seriously talking about the potential for a financial crash – which says to me that the crash that is already happening today is about to accelerate even more in the next year.  The globalists are setting the stage for the Democrats to say “See, we told you so”, as an election year approaches.

At this point, given her recent statements, I will have to predict that Elizabeth Warren is the intended Democratic candidate for the 2020 election.

It is important to remember that public sentiment is fickle, and can change so swiftly it boggles the mind. With the advent of a major economic disaster and maybe even a kinetic war that the US cannot sustain or win in the long run, the predictions of globalists and leftists that populist movements are a “crisis waiting to happen” would be fulfilled. Trump has no real control over the economy, of course, and the Fed determines when and how a financial bubble will pop; but that will not stop the majority from laying the blame on the feet of Trump and his political base. The introduction of hardcore socialism as the preeminent American ideal would be a much easier sell at that point.

In the middle of societal catastrophe, that which we once thought impossible becomes probable. I predict that the “four horsewomen of the Apocalypse” and their ilk are chosen by the globalists to take control of the US in the next decade after Trump and the populists are fully discredited in the eyes of more than half the country and the world. To be certain, there are many of us who will not accept open socialist/communist governance and all the tidings that come with it (including carbon controls and disarmament of the population), and I have no doubt civil war would erupt.

The point is, we should expect this outcome as one the globalists will force. The signs are visible now. The policies of these women, which are utterly insane and bankrupt of logic, are going to become the prevailing ideals of the next political revolution. Count on it.

*  *  *

If you would like to support the work that Alt-Market does while also receiving content on advanced tactics for defeating the globalist agenda, subscribe to our exclusive newsletter The Wild Bunch Dispatch.  Learn more about it HERE.

END
Puerto Rico’s Governor Rossello resigns after weeks of protests
(zerohedge)

Puerto Rico Governor Ricardo Rosselló Resigns After Weeks Of Protest

Following weeks of unrest amid a corruption scandal and damning text messages, Puerto Rico Governor Ricardo Rossello announced his resignation on Wednesday in a videotaped address which aired just before Midnight.

After discussing his “laundry list of accomplishments,” Rossello said he ‘did his best,’ and ‘worked during vacations, weekend and long days to make Puerto Rico more just.’ His resignation will take effect August 2nd.

claudia irizarry aponte

@clauirizarry

“I did my best. I worked during vacations, weekends and long days to make Puerto Rico more just.”

claudia irizarry aponte

@clauirizarry

Now he’s talking about hurricanes Irma and Maria and praising his response to it.

claudia irizarry aponte

@clauirizarry

“I was willing to accept any challenge.”

claudia irizarry aponte

@clauirizarry

He just announced his resignarion effective August 2, 2019.

Rossello’s resignation comes days after thousands of demonstrators took to the streets of Old San Juan, calling for his ouster.

Following the announcement, crowds broke out into celebration, exclaiming “Ricky, te botamos!” (“Ricky, we threw you out!”).

 

Demonstrators chant slogans as they wave Puerto Rican flags during ongoing protests calling for the resignation of Governor Ricardo Rossello in San Juan, Puerto Rico July 24, 2019.Marco Bello / Reuters

“After the birth of my son, this is the happiest day of my life,” said Puerto Rican reggaton star René Pérez Joglar, also known as Residente. Joglar released a song last week calling for protesters to take to the streets, rapping “This is coming out early so you can eat it for breakfast … Sharpening the knives. Fury is the only political party that unites us.

As we noted last week, protesters broke past a barricade at the governor’s mansion on Wednesday, resulting in the deployment of tear gas. “By early hours Thursday, the old city of San Juan resembled a war zone, with police chasing protesters through the streets while firing rubber bullets, gas canisters and what appeared to be flash bombs,” according to NPR.

END
Boeing/South West Airlines
Due to the grounding of Boeing 737 max planes, Southwest Airlines probably the most profitable of all airlines announces that it will end its flights out of Newark NJ
(zerohedge)

Southwest Ends Flights Out Of Newark Airport As 737 MAX Grounding Takes Its Toll

When Southwest reported its earnings Thursday morning, it also made a stunning announcement that shows just how badly the 737 MAX 8’s best customer has been hurt by the grounding.

Just  as Boeing warns that it could halt production of the troublesome 737 MAX 8 if the plane’s return to the skies is delayed any longer,Southwest Airlines, the 737 MAX 8’s best customer, is reportedly planning to cease operations at Newark Airport. The decision is a direct result of the 737 MAX 8’s grounding.

A representative for the airline said the decision is a “necessary step” to mitigate damages from the “extensive delays” in the recertification process for the MAX. The airline is planning to consolidate its New York-area presence at LaGuardia Airport in Queens, WSJreports.

The airline is planning to cease operations in Newark on Nov. 3. The airline launched service out of Newark in 2011 and was recently offering 20 daily departures to 10 cities.

At the time of the Ethiopian Air Crash, the second of two crashes involving the 737 MAX 8 that killed a combined 346 people, Southwest had received 31 737 MAX 8s, more than any other airline, and it had orders in for nearly 250 more.

Southwest said its Newark operations have been performing below expectations, while customer demand for more flights out of LaGuardia is “strong.” Customers will be offered options to change their travel plans, and Southwest employees will have the opportunity to relocate to other locations, including LaGuardia.

Because of the 737 MAX 8’s grounding, Southwest expects its available seat miles, a widely watched airline industry metric of passenger-carrying capacity, to decline by 1% of 2% YoY in 2019. Before the grounding, it had anticipated capacity growth of nearly 5%.

As revealed following yesterday’s earnings report, Boeing now expects the 737 MAX 8 will return to the skies either late this year, or in January 2020. According to CEO Dennis Muilenberg, Boeing expects to submit its “final certification package” to the FAA in September.

Shares of the airline tumbled 5% on Thursday in premarket trading after the low-budget carrier said it doesn’t plan to fly the 737 MAX 8 again until next year. It has removed the MAX 8 from its schedules through Jan. 5. Its Q2 revenues came in slightly below estimates.

END

iv) Swamp commentaries)

Epstein visited Clinton at the White House multiple times in the 1990’s

(zerohedge)

Epstein Visited Clinton White House Multiple Times In The 1990s

Bill Clinton’s attempts to distance himself from convicted pedophile Jeffrey Epstein have taken yet another blow – after a Daily Beastinvestigation reveals that the financier – who came highly recommended by Lynn Forester de Rothschild – visited the Clinton White House multiple times.

As early as 1993, records show, Epstein donated $10,000 to the White House Historical Association and attended a donors’ reception hosted by Bill and Hillary Clinton. Around the same time, according to a source familiar with the connection, Epstein visited presidential aide Mark Middleton several times at the White House. Two years later, businesswoman Lynn Forester de Rothschild wrote a personal letter to Clinton thanking him for their talk about the financier. –Daily Beast

On July 8, the former president sought to distance himself from Epstein, claiming that the two crossed paths just six times beginning in 2002; “four flights on the billionaire’s private jet, a single trip to his Harlem office, and one “brief visit” to his New York apartment, all with staff and security detail in tow,” per the Beast.

“President Clinton 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 spokesperson, Angel Ureña, told the Beast. “Any suggestion to the contrary is both factually inaccurate and irresponsible.”

Clinton’s denial flies in the face of flight logs from Epstein’s now-sold ‘Lolita Express’ 727 jet at least 26 times.

When the president released his initial statement on Epstein, he did not explain the multiple other trips he appears to have taken on the financier’s plane—including one flight to Westchester with Epstein, his alleged madam Ghislaine Maxwell, and an “unnamed female.” –Daily Beast

And according to the Beast, “Clinton also failed to mention the intimate 1995 fundraising dinner at the Palm Beach home of Revlon mogul Ron Perelman, where Clinton hobnobbed with the likes of Epstein, Don Johnson, and Jimmy Buffett. (Nearby, at Epstein’s own Palm Beach mansion, the money man allegedly abused hundreds of underage girls.)”

While Politico claimed in a piece last week that the Clintons and Epstein connected through Epstein’s longtime confidant and alleged procurer of young women – Ghislaine Maxwell, after Clinton left office, documents in the Clinton Library attest to much earlier links.

In late September of 1993, Bill and Hillary Clinton hosted a reception for supporters who had contributed to recent White House renovations. The nearly $400,000 overhaul—which included new gold draperies and a 13-color woven rug for the Oval Office—was funded entirely by donations to the White House Historical Association, a private organization that helps preserve and promote the White House as a historical monument.

The reception took place at the White House residence from 7:30 to 9:30 p.m., according to a copy of the president’s daily schedule. White House Social Secretary Ann Stock—who appears in Epstein’s little black book of phone numberswas listed as the point of contact. According to multiple attendees, the evening included an intimate tour of the newly refurbished residence, followed by a receiving line with the president and first lady. Dessert was served in the East Room, where the couple thanked everyone for attending and announced the Committee for the Preservation of the White House.

Guests for the event, according to the invitation list, included the journalist and philanthropist Barbara Goldsmith, heiress Jane Engelhard, political consultant Cynthia Friedman, and “Mr Jeffrey Epstein and Ms. Ghislaine Maxwell.” Epstein and Maxwell do not appear on the ‘regret list,’ and there is a letter ‘A’ next to both of their names, indicating they planned to attend. A press release from the event, put out by Hillary Clinton’s office, lists Epstein as a White House Historical Association donor. –Daily Beast

Meanwhile, Clinton’s college friend A. Paul Prosperi visited Epstein at least 20 times while he was in the Palm Beach county jail after pleading guilty to procuring an underage prostitute in 2008. Prosperi was also present at a 1995 Perelman fundraiser at which both Clinton and Epstein were present.

Another Clinton connection with Epstein comes through White House aide Mark E. Middleton – a friend of Clinton’s from his beginnings in Arkansas who joined the administration in 1993 as special assistant to Chief of Staff Mack McClarty (another Arkansas insider, per the Beast). Middleton would rise to the level of “Deputy to the Counselor” in 1994.

Over that same time period, a source with knowledge of the situation told The Daily Beast, Middleton met with Epstein in the White House at least three times. It is unclear what they discussed, or for how long. Middleton did not respond to repeated calls and emails for comment, or to a reporter who visited his home in Arkansas.

Middleton and Epstein also appear to have shared a famous friend in common. Donald Trump—who once called Epstein a “terrific guy”—sent Middleton a signed copy of his bookThe Art of the Deal, while the lawyer was working in the White House. The inscription read, “To Mark — Best wishes. Your mom is the best.”

Hobnobbing with businessmen like Epstein and Trump was part and parcel of Middleton’s White House job, according to a 1999 report from the House Committee on Government Reform. (“In the course of his duties, Middleton was in contact with many prominent business people and contributors to the President,” the report states.) But it also got the lawyer in trouble with the administration once he left. –Daily Beast

Rothschild letter

In 1995, Lynn Forester de Rothschild writes ““Dear Mr. President: It was a pleasure to see you recently at Senator Kennedy’s house. There was too much to discuss and too little time. Using my fifteen seconds of access to discuss Jeffrey Epstein and currency stabilization, I neglected to talk to you about a topic near and dear to my heart. Namely, affirmative action and the future.”

Of note, former Epstein attorney and pal Alan Dershowitz previously said that Forester de Rothschild introduced him to Epstein at a party on Martha’s Vineyard for Lord Rothschild in the summer of 1996.

“He was feisty, he was utterly politically incorrect,” said Dershowitz in a recent interview with New York magazine. “He was interesting to be with.”

He was also sexually molesting underage girls.

END

v) King report/Courtesy of Chris Powell of GATA which includes the major swamp stories.

ESUs, which traded in negative territory early on Tuesday night due to the DoJ probe into uber tech, rallied to unchanged during the Nikkei’s 2nd Session.  They then declined sharply until 5:43 ET on worse than expected Deutsche Bank earnings and disappointing German and French manufacturing gauges.

Deutsche Bank reported a Q2 loss of €3.2B and said loan-loss provisions would be increasing in 2019.  DB shares fell as much as 5.8%.

The Markit/BME July German Mfg PMI declined to 43.1 from 45.  45.2 was expected.  The Services PMI fell to 55.4 from 55.8; 55.3 was expected.

Markit’s July France Mfg PMI fell to 50 from 51.9.  51.6 was expected.  Services declined to 52.2 from 52.9.  52.2 was expected.

Low interest rates could spur seniors to chase returns [Our mantra for years]

https://www.cnbc.com/2019/07/24/low-interest-rates-could-spur-seniors-to-chase-returns.html

Regulators in China discuss liquidity issues at Bank of Jinzhou – sources

Total assets at Bank of Jinzhou stood at 748.39 billion yuan by end-June 2018, while its net profit was up 7.7% year-on-year to 4.3 billion yuan, according to bank’s semi-annual report in 2018. The bank delayed the release of its annual report of 2018.

https://sg.news.yahoo.com/regulators-china-discuss-liquidity-issues-120835630.html

Today – The ECB Communique and Draghi’s presser will dictate early trading.  The usual suspects expect the ECB to indicate that they will provide more stimulus, including more QE.  Some pundits are begging the ECB to monetize equities.  Draghi is expected to do a grand performance of his shtick.

If the ECB and Draghi do what the market expects, be alert for a blow-off rally and reversal.  Traders are extremely long and extremely irrationally exuberant – and there is a dearth of organic buyers.

Rumors about GOOG and INTC’s earnings, due after the close, could impact late trading.

Mueller’s morning testimony was a colossal disaster and embarrassment for Dems.  Bob’s woeful performance and dissembling at the House Judiciary Com on Wednesday gives Barr and de facto special prosecutor Durham justification and political cover to prosecute nefarious Spygate actors.

The Dems on the House Judiciary Com ran mock Mueller hearings for the past few weeks!  Anyone with empathy should feel sorry for Mueller.  The conspirators exploited Bob.  They knew that he didn’t have the capacity to run the investigation; they brought him in to give the team of DJT haters cover.

@larryelder: Bob Mueller, Marine combated decorated vet, did not deserve the humiliation dems forced him to endure by dragging him to the hearings… [Kudos to Barr for trying to protect Mueller from this.]

Last night Sen Lindsey Graham said he knew that Mueller had difficulties and was NOT in charge of the Trump investigation.  That’s why as Senate Judiciary Com Chari he has not called Bob to testify.

Trump-hating Chris Wallace of Fox News: ““I think this has been a disaster for the Democrats and I think it’s been a disaster for the reputation of Robert Mueller.”   https://twitter.com/TrumpWarRoom/status/1154036006607212545

Uber DJT-hating Joe Scarborough @JoeNBC: Questions are being raised on @CNN about Robert Mueller’s performance so far. Friends and political allies who have known him for decades have expressed concern about his appearance today.

@RNCResearch: MSNBC’s Jeremy Bash complains Mueller “sucked the life out” of report, “set back” efforts to impeach  (link: https://youtu.be/lmSwgGoWQpkyoutu.be/lmSwgGoWQpk

DJT-hating BBG: Mueller Appears Halting and Quiet in Long-Anticipated Hearing

The former special counsel… appeared subdued… asking lawmakers to repeat their questions multiple times and even mispronouncing Trump’s name at one point

   “Volume II of this report was not authorized under the laws to be written,” Republican John Ratcliffe of Texas said.  “It was written in violation of every DOJ principle about extra prosecutorial commentary.”  Mueller didn’t say anything in response…

    Judiciary Chairman Jerrold Nadler twice had to ask Mueller to speak into his microphone…

   Outside critics of Trump seemed unnerved by Mueller’s performance…. David Axelrod, a former advisor to President Barack Obama, wrote on Twitter… “He does not appear as sharp as he was then.”

https://www.bloomberg.com/news/articles/2019-07-24/mueller-appears-halting-and-quiet-in-long-anticipated-hearing?srnd=markets-vp

The Daily Mail: ‘Disoriented’ Mueller’s stumbling responses to questions during blockbuster hearing leave social media concerned the special counsel seems a ‘confused old man’…

    ‘This underscores that the person who influenced this investigation most was Andrew Weismann, his top lieutenant.’… https://www.dailymail.co.uk/news/article-7281303/Muellers-stumbling-responses-blockbuster-hearing-leave-social-media-concerned.html

The NYT’s Adam Goldman: Former F.B.I. officials are texting me, noting Mueller seems halting.

https://www.nytimes.com/interactive/2019/07/24/us/politics/robert-mueller-hearing-analysis.html?src=liveEventHomepagePromo

WaPo’s @gregpmiller: Mueller’s inability to track questions/retrieve facts is noteworthy. His inability to defend the integrity of his investigation and team might be more troubling.

Human Events’ @willchamberlain: The news isn’t anything Robert Mueller has said.  The news is that Mueller is a tired old man who had no business running a complicated federal investigation.  That would have been obvious to his deputies on day one.  That’s why they ran wild with obstruction.

@RepMarkMeadows: Mueller still struggling to answer even basic questions. He can’t accurately remember facts, evidence, or even his own conclusions. Folks—this guy didn’t run the investigation. His team of Resistance Democrats did.  And they used it as a weapon to target a President they hated.

@seanmdav: Mueller just said his deputy, who was the personal attorney for the Hillary Clinton aide who smashed her Blackberries, was in charge of “day-to-day oversight” of Mueller’s investigation.

@RepMarthaRoby: “How many of the approximately 500 interviews conducted by the special counsel did you attend personally?” Mueller: “Very few.”

Mueller refused to confirm what he wrote in his report or the whiny letter to Barr about his report.

NBC’s @mikememoli: One element of Republican strategy here appears to have been to cast doubt on how much was in command of the report shorthanded in his name. By de-linking Mueller from report, it falls into what the president’s allies would cast as report of “angry Democrats”

@RepMattGaetz: Gaetz: “Can you state with confidence the Steele dossier was not part of Russia’s disinformation campaign?”  Mueller: “With regard to Steele…that’s beyond my purview.” Gaetz: “It’s exactly your purview! The organizing principle was to fully investigate Russia’s interference!”

Mueller claimed he was unaware of Fusion GPS and if the Russians worked with Fusion GPS, saying it was outside his purview – even though Russian interference was the raison d’etre for his investigation.

Rep. Steve Chabot (R-OH): “When you talk about the firm that produced the Steele [dossier], the name of the firm that produced that was Fusion GPS. Is that correct?” Mueller: “I’m not familiar … with that” Chabot: “It’s not a trick question. It was Fusion GPS.”

The WSJ’s @KimStrassel: How can Fusion GPS and Steele dossier be outside of Mueller’s “purview” entirely? They provided many of the allegations he spent all that time investigating. He could totally answer those questions that go to his report.

The NYT’s Sharon LaFraniere:  Mueller confirms that his investigation was never curtailed, stopped or hindered.

The NYT’s Michael S. Schmidt: Mueller passes on answering the question of whether Trump expressed anger at Sessions. That is clearly laid out throughout the report. Unclear why Mueller declined to answer it.[Mueller repeatedly refused to answer questions that were ‘clearly laid out’ in his report.]

OAN’s @EmeraldRobinson: I guess #MuellerTime is really the FBI version of “Dazed & Confused”

@RepRatcliffe: “Can you give me an example other than @realDonaldTrump where the Justice Department determined that an investigated person was not exonerated because their innocence was not conclusively determined?”  Mueller: “I cannot.”

Mueller refused to answer why he didn’t charge Joseph Mifsud for lying to the FBI even though Bob’s report said Mifsud lied three times to the FBI.  Plus, Mifsud’s purported claim that he told Papadopoulos that the Russians had Hillary’s email was what generated the spying on Team Trump.

Rep. Jim Jordan: Papadopoulos tells diplomat ‘Russians have dirt on Clinton.’ Diplomat tells the FBI. What I’m wondering is, who told Papadopoulos?”  Mueller: “I can’t get into it.”  Jordan: “Yes you can because you wrote about it… you tell us who told him, Joseph Mifsud.

Rep. Jim Jordan’s questioning of Mueller on Mifsud destroyed Bob and his report.  Here is a link: https://twitter.com/Jim_Jordan/status/1154033949867413504

After Jordan’s exchange with Mueller, Nadler announced an unexpected 5-minute break.  The break extended beyond 5 minutes.

The NYT’s Katie Benner: [GOP Rep.] Biggs wants to know when Mueller concluded that the president and his campaign had not conspired with Russia, characterizing it as “no there there.” Mueller said he cannot answer.

The NYT’s Maggie Haberman: It seems that Zebley, Mueller’s former chief of staff, tried intervening on one of the questions just now. Biggs wasn’t having it.

Rep. Jordan later in the session: “What role did your office play in the third FISA renewal against Carter Page?”   Mueller: “I’m not going to answer that.”

OAN’s @EmeraldRobinson: This is not just a disaster for Bob Mueller. It’s a disaster for the FBI & the DOJ. It’s a disaster for Rod Rosenstein –who was supervising Mueller. It’s a disaster for federal law enforcement. Simply put: their credibility has been put to the test, and they have failed.

@RepMarkMeadows: Mueller doesn’t remember meeting with Rod Rosenstein? Seriously?

Robert Mueller Caught Contradicting His Report in Testimony to Congress

Collins began by asking Mueller whether “collusion” and “conspiracy” were synonymous. Mueller said, “No.”  However, Collins read Mueller’s own report to him: “On page 180 of volume one of your report, you wrote, ‘As defined in legal dictionaries, collusion is largely synonymous with conspiracy as that crime is set forth in the general federal conspiracy statute, 18 U.S.C. 371; … Are you sitting here today testifying something different than what your report states?”…

https://www.breitbart.com/politics/2019/07/24/robert-mueller-caught-contradicting-his-report-in-testimony-to-congress/

@ABC: Robert Mueller contradicts Trump’s claim that he interviewed with Trump for the FBI director job: “My understanding is I was not applying for the job. I was asked to give my input on what it would take to do the job.” Trump repeated the claim today. (link: http://abcn.ws/2XYcJtYabcn.ws/2XYcJtY

@paulsperry_: Mueller flatly & categorically denied his bizarre, hastily arranged May 29 press conference had anything to do w previous day’s hearing in which judge ordered him to back off claims he had evidence trolling firms were directed by Russian govt, even tho judge cited presser

  MORE PERJURY? Mueller swore under oath he & Comey were merely “business associates” & not close friends that he did not talk to Comey after he was fired. His claims are at variance w the facts: Mueller & Comey played golf together, lunched together, dined together w their wives… It’s now clear Mueller did this as a favor to his old pal Comey, who steered it through Strzok, Page, Clinesmith and Weissmann, along with their pals at CNN, WaPo and NYT. This was institutional protection and corruption.

Numerous pundits and attorneys opined that Mueller perjured himself several times.  Wise guys retorted that he successfully built an incapacitation defense.

GOP Rep. @RepDLesko skewed Mueller for relying on media reports instead of evidence, noting the Mueller Report cited the media nearly 200 times.

@kathrynw5: Mueller is now getting quizzed on his biography. [He had difficulty citing it!]

Ex-Obama political brain @davidaxelrod: This is very, very painful. [Mueller’s afternoon testimony]

@CBSNews: Rep. Mike Johnson: Was the point of this hearing to get Mr. Mueller to recommend impeachment? Rep. Jerrold Nadler: That is not a fair point of inquiry.

Later yesterday afternoon, Mueller testified before the House Intel Committee.  He reiterated that we would not answer basic questions about this report, even though the Intel Com’s sole purpose is to investigate Russian collusion matters.

Mueller: “I am unable to address questions about the opening of the FBI’s Russian investigation… or matters related to the so-called Steele Dossier.”

GOP Rep Nunes: “The FBI claims the counterintelligence investigation of the Trump campaign began on July 31st, 2016. But, in fact, it began before that. In June of 2016 before the investigation officially opened Trump campaign associates Carter Page and Stephen Miller were invited to attend a symposium at Cambridge University in July of 2016. Your office, however, did not investigate who was responsible for inviting the Trump associates to this symposium. Your investigators also failed to interview an American citizen who helped organize the event and invited Carter Page to it.  Why is that?

Mueller refused to answer Nunes.

Nunes told Mueller that Comey claimed that Mifsud was a Russian agent while Mueller did not make the claim.  Mueller refused to respond.  It got so sad that Nunes stopped his questions and ceded his time.

Mueller issues clarification, takes back bombshell statement about indicting Trump

“I want to add one correction to my testimony this morning,” Mueller said. “I want to go back to one thing that was said this morning by Mr. Lieu, who said and I quote, ‘You didn’t charge the President because of the OLC opinion. That is not the correct way to say it. As we say in the report and as I said at the opening, we did not reach a determination as to whether the President committed a crime.”…

https://www.foxnews.com/politics/mueller-issues-clarification-takes-back-bombshell-statement-about-indicting-trump

@seanmdav: Mueller was specifically asked if anyone on his team or working with his team leaked to CNN details of the FBI raid on Roger Stone’s home. He refused to answer. “I’m not going to speak to that.”  But he did deny leaking his letter to Barr to the media.  Sure is telling.

Ex-DoJ Attorney @SidneyPowell1: It was obvious to every intelligent person that Mr. #Mueller did not run the investigation, write the report, or even understand what was going on.  The entire #Mueller investigation was a fraud based on a fraud.   Today was heartbreaking & embarrassing.  Mueller destroyed himself

‘Trump blew whistle on Jeffrey Epstein’; Pedophile’s threat to expose President ‘as a financial fraud’ after he ‘stole’ his $125M mansion led to then-tycoon outing the pedophile to cops

    Michael Wolff, who was close with both men in the early aughts, writes in Fire and Fury that Epstein was outed to authorities soon after he threatened to expose Trump as a financial fraud…

https://www.dailymail.co.uk/news/article-7276817/Donald-Trump-outed-Jeffrey-Epstein-cops-stealing-125M-mansion-him.html

Thanks to Mueller’s disastrous testimony on Wednesday, this Joe Biden comment at the NAACP will be largely ignored: “This [Biden’s campaign/agenda] is not a continuation of the Obama administration.”

 

Well that is all for today

I will see you FRIDAY night.

 

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