JULY 29./GOLD HOLDS IT OWN RISING BY ONE DOLLAR TO $14.20//SILVER IS UP 4 CENTS TO $16.42//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 6.75 PAPER TONNES INTO THE GLD INVENTORY////A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 468,000 OZ////BEIJING WARNS HONG KONG AGAIN AFTER MASSIVE PROTESTS//BORIS JOHNSON THROWS DOWN THE GAUNTLET: THERE WILL BE NO IRISH BACKSTOP AND THE UK WILL LEAVE BY OCT 31/2016//ANDREW MAGUIRE MEETS UK OFFICIALS, UK REGULATORY OFFICIALS AND B. OF ENGLAND PEOPLE WARNING THEM OF THE HUGE RISK TO THE BANKING SYSTEM WITH THE MONSTROUS USE EFP’S //.

GOLD:$1420.50  UP $1.00(COMEX TO COMEX CLOSING)

 

 

 

 

 

 

Silver: 16.42 UP 4 CENTS  (COMEX TO COMEX CLOSING)//

 

 

 

 

 

 

 

 

 

Closing access prices:

 

 

Gold : $1426.80

 

silver:  $16.46

 

 

 

 

COMEX DATA
options on the London OTC/LBMA expires on Wednesday  which is also when the Fed will supposedly lower its interest rate either .25%or 1/2 point.  The real problem in the world is lack of liquidity…

we are coming very close to a commercial failure!!

 

 

 

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

today RECEIVING 1/5

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 5 NOTICE(S) FOR 500 OZ (0.0155 tonne

TOTAL NUMBER OF NOTICES FILED SO FAR:  963 NOTICES FOR 96300 OZ  (2.9953 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

22 NOTICE(S) FILED TODAY FOR 110,000  OZ/

 

total number of notices filed so far this month: 4521 for   22,605,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

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

today receiving 1/5

 

DLV615-T CME CLEARING
BUSINESS DATE: 07/26/2019 DAILY DELIVERY NOTICES RUN DATE: 07/26/2019
PRODUCT GROUP: METALS RUN TIME: 20:44:57
EXCHANGE: COMEX
CONTRACT: JULY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,418.500000000 USD
INTENT DATE: 07/26/2019 DELIVERY DATE: 07/30/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 1
661 C JP MORGAN 1
737 C ADVANTAGE 2 3
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 5 5
MONTH TO DATE: 963

Bitcoin: OPENING MORNING TRADE :  $ 9497 UP 45 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 9517 DOWN 15

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG  SIZED 1456 CONTRACTS FROM 233,590 UP TO 235,045 DESPITE THE 2 CENT LOSS 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, 865 FOR SEPT, DEC. 550 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1415 CONTRACTS. WITH THE TRANSFER OF 1415 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 1415 EFP CONTRACTS TRANSLATES INTO 7.075 MILLION OZ  ACCOMPANYING:

1.THE 2 CENT LOSS 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//

22.600 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:

33,386 CONTRACTS (FOR 19 TRADING DAYS TOTAL 33,386 CONTRACTS) OR 166.93 MILLION OZ: (AVERAGE PER DAY: 1757 CONTRACTS OR 8.7885 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  169.93 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 24.27% 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:          1323.13   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 STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1456, DESPITE THE 2 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 1415 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 VERY STRONG  SIZED: 2871 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1415 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1456  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 2 CENT LOSS  IN PRICE OF SILVER AND A CLOSING PRICE OF $16.38 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. 1.175 BILLION OZ TO BE EXACT or 167% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 56 NOTICE(S) FOR 280,000OZ 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 22.600 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 ROSE BY A GOOD 5410 CONTRACTS, TO 599,288 ACCOMPANYING THE  $4.50 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING FRIDAY// /THE SPREADING LIQUIDATION IS STILL IN FULL FORCE FOR GOLD..ON FRIDAY

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 9178 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 6379 CONTRACTS, DEC>  2779 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 599,288,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 14,588 CONTRACTS: 5410 CONTRACTS INCREASED AT THE COMEX  AND 9178 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 14,588 CONTRACTS OR 1,458,800 OZ OR 45.38 TONNES.  FRIDAY WE HAD A STRONG GAIN OF $4.50 IN GOLD TRADING.AND WITH THAT GOOD GAIN IN  PRICE, WE  HAD A STRONG GAIN IN GOLD TONNAGE OF 45.37  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER. WE HAD SOME LIQUIDATION OF THE SPREADERS ON FRIDAY.

 

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

 

 

 

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

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

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

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

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

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST IS STARTING TO RISE IN THIS NON ACTIVE MONTH OF JULY BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (JULY), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.” 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 166,685 CONTRACTS OR 16,685,000 oz OR 517.88 TONNES (19 TRADING DAY AND THUS AVERAGING: 8772 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAY IN  TONNES: 517.88 TONNES

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

THUS EFP TRANSFERS REPRESENTS 517.88/3550 x 100% TONNES =14.58% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3555.75  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 GOOD SIZED INCREASE IN OI AT THE COMEX OF 5410 WITH THE STRONG PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($4.50))  AND SOME LIQUIDATION OF SPREADERS//.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 9178 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 9178 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC  AND CRIMINALLY SIZED GAIN OF 14,588 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

9178 CONTRACTS MOVE TO LONDON AND 5410 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 45.31 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED ACCOMPANYING THE  GAIN IN PRICE OF $4.50 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE NOW HAVE  SPREADING LIQUIDATION IN FULL FORCE IN GOLD AS WE NEAR MONTH’S END 

 

 

 

we had:  5 notice(s) filed upon for 500 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD UP $1.00 TODAY//

 

A HUGE CHANGE IN GOLD INVENTORY:

A MASSIVE PAPER DEPOSIT OF 6.75 TONNES OF GOLD INTO THE GLD

 

 

INVENTORY RESTS AT 824.89 TONNES

 

 

 

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

SLV/

 

WITH SILVER UP 4 CENTS TODAY:

 

ANOTHER  CHANGE IN SILVER INVENTORY AT THE SLV:

A PAPER WITHDRAWAL OF: 468,000 OZ FROM THE SLV

/INVENTORY RESTS AT 356.715 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 1595 CONTRACTS from 35589 UP TO 235,184 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 WHICH WILL CONTINUE UNTIL MONTH’S END.

 

 

 

 

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. 865,  AND DEC: 770  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1415 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 1456  CONTRACTS TO THE 1415 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN A STRONG SIZED GAIN OF 2871 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 14.36 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 22.600 MILLION OZ STANDING SO FAR.

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 2 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 1415 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

BOTH THE SILVER COMEX AND THE GOLD COMEX ARE IN STRESS AS THE BANKERS SCOUR THE BOWELS OF THE EXCHANGE FOR METAL

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN 3.53 POINTS OR 0.12%  //Hang Sang CLOSED DOWN 291.33 POINTS OR 1.03%   /The Nikkei closed DOWN 41.35 POINTS OR 0.19%//Australia’s all ordinaires CLOSED UP .48%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8934 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8934 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8980 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3c CHINA

i)Protests continue over the weekend in Hong Kong

two commentaries

(zerohedge)

ii)Beijing warns that if they see more unrest in Hong Kong, that will not be tolerated.

trouble ahead of this one..
(zerohedge)
iii)This is a huge problem:  China’s second largest auditor has been accused of fabricating data and as such has halted at least 29 IPO’S
(ZERO HEDGE)

4/EUROPEAN AFFAIRS

i)UK

Bojo throws down the gauntlet as he starts that there will be no Irish backstop..not even a temporary one.  The next move he states it the EU. In my opinion, the EU need the UK far greater than the UK needs them

(Mish Shedlock/Mishtalk)

ii)The pound crashes on the thought of a ‘no deal” Brexit

(zerohedge)

iii)FRANCE/USA

Trump angry at a digital tax in France against American firms such as Google and Facebook.  Trump is angry and now threatens with a tax on French wines

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/CHINA

Tehran urges China to buy more of Iranian oil instead of gorging on Saudi oil

(zerohedge)

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)Extremely important. Andrew Maguire has met UK Parliamentarians as well as UK treasury and B of E officials explaining to them the huge risk to the banking systems with the monstrous issuance of Exchange for Physicals.

( Andrew Maguire/Craig Hemke/GATA

ii)Could this be some of the BIS swapped gold recovered?

(Reuters/GATA)

iii)Ronan Manly correctly believes that the end of the gold agreement with the central banks liberates all of them to start buying gold.(Ronan Manly Bullion star//GATA)

iv)Confusion reigns supreme with the Donald as to whether he will take steps to weaken the dollar

(Washington Post/GATA)

v)Strange: we have Blackrock and other hedge funds tell the ECB that they should be equities after they have run out of room for bonds

(London’sFinancial Times/GATA)

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

a)With all of this wonderful data coming our why, our is everyone clamoring for a Fed rate cut…the reason, the world has a real problem; lack of liquidity (collateral)

(zerohedge)

b)Large derivative player Citibank now plans to fire hundred of traders as revenue tumbles.  (cannot find any more liquidity)

(zerohedge)

c)Interesting:  the USA treasury now expects to borrow 814 billion dollars of debt during the next two quarters

(zerohedge)

iii) Important USA Economic Stories

a)A big victory for Trump as he will now have funds to build his wall

(zerohedge)

b)Dan Coates out and John Ratcliffe is proposed as top Intelligence chief.

(zerohedge)

c)Not good: at a Garlic festival in California, an attack on civilians with 16 being shot and 4 dead with one of them the gunman

(zerohedge)

iv) Swamp commentaries)
i)Lots of fun over the weekend as Trump slams the Fed and then Baltimore and its representative Elijah Cummings for their rat infested city.

(zerohedge)

ii)The saga of Omar continues as he now leaves her second husband Hirsi.

(zerohedge)

iii)Amazing! Now the Dems go full conspiracy theorist..Somebody got to Mueller

(zerohedge)

iv)As we explained to you on previous occasions, the genesis of the Russiagate began a few months before the official July 31.2016 date.  Now there are tapes and transcripts of a conversation Papadopoulos had with Mifsud who fed him the initial story of dirt on Hillary.  This no doubt will be the smoking gun with respect to exculpatory evidence withheld.

(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 ROSE BY A GOOD SIZED 5410 CONTRACTS TO A LEVEL OF 599,288ACCOMPANYING THE  GAIN OF $4.50 IN GOLD PRICING WITH RESPECT TO FRIDAY’S // COMEX TRADING) AND DESPITE SOME LIQUIDATION OF OPEN INTEREST CONTRACTS FROM THE SPREADERS.

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 9178 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 6379 CONTRACTS: DEC: 2779   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  9178 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: 14,588TOTAL CONTRACTS IN THAT 9178 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 5410 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. 

 

NET GAIN ON THE TWO EXCHANGES ::  14,588 CONTRACTS OR 1458,800 OZ OR 45.37 TONNES.

 

We are now in the NON  active contract month of JULY and here the open interest stands at 5 CONTRACTS as we LOST 4 contract.  We had 4 notices filed on Friday so we  gained 0 contracts or NILoz of gold that will stand for delivery as there appears to be some gold at the comex  as they will now try their luck on finding the fast vanishing supplies of physical gold over here. The next big active month for deliverable gold is August and here the OI LOST by a 35,352 contracts DOWN to 95,579 The next non active month is September and here the OI rose by 744 contracts up to 2966.  The next active delivery month is October and here the OI rose by 2403 contracts up to 40,232.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 5 NOTICES FILED TODAY AT THE COMEX FOR  500 OZ. (0.0155 TONNES)

 

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And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A STRONG SIZED 1456 CONTRACTS FROM 233,589 UP TO 235,045 (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 2 CENT LOSS IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF JULY.  HERE WE HAVE 22 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 55 CONTRACTS.  WE HAD 56 NOTICES FILED YESTERDAY SO WE GAINED 1 CONTRACTS OR AN ADDITIONAL 5,000 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 51 CONTRACTS DOWN TO 1095.  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI FELL BY 531 CONTRACTS UP TO 157,530 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 56 notice(s) filed for 735,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 363,151  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  442,517  contracts

 

 

 

 

 

INITIAL standings for  JULY/GOLD

JULY 29/2019

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

 

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
5 notice(s)
 500 OZ
(0.0155 TONNES)
No of oz to be served (notices)
0 contracts
nil oz)
0.0000 TONNES
Total monthly oz gold served (contracts) so far this month
963 notices
96300 OZ
2.9953 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entry:

We had 0 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 1 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into Delaware: 201.07  oz

 

 

 

total gold deposits: 201.07  oz

 

very little gold arrives from outside/ zero amount  arrived  today

we had 0 gold withdrawal from the customer account:

 

 

 

total gold withdrawals; nil  oz

 

 

i) we had 0 adjustment today

FOR THE 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 5 contract(s) of which 1 notices were stopped (received) by j.P. Morgan dealer and 1 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JULY /2019. contract month, we take the total number of notices filed so far for the month (963) x 100 oz , to which we add the difference between the open interest for the front month of  JULY. (5 contract) minus the number of notices served upon today (5 x 100 oz per contract) equals 96,300 OZ OR 2.9953 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 (958 x 100 oz)  + (5)OI for the front month minus the number of notices served upon today (5 x 100 oz )which equals 96,300 oz standing OR 2.9953 TONNES in this  active delivery month of JULY.

We GAINED 0 contracts or an additional NIL oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus.

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 10.131 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 2.9953  TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

total registered or dealer gold:  325,725.703 oz or  10.131 tonnes 
total registered and eligible (customer) gold;   7,750,261.629 oz 241.06 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 29 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 9,959.800 oz
CNT

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
22
CONTRACT(S)
(110,000 OZ)
No of oz to be served (notices)
0 contracts
 nil oz)
Total monthly oz silver served (contracts) 4521 contracts

22,605,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

oz

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

we had  3 deposits into the customer account

into JPMorgan:  nil  oz

ii)into CNT:  597,997.600 oz

iii) Into Delaware: 7053.119 oz

iv) Into Scotia: 529,812.300 oz

 

 

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

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

 

 

 

 

total customer deposits today:  1134,863.019  oz

 

we had 2 withdrawals out of the customer account:

 

 

i) Out of CNT:  1013.07 oz

ii) Out of Scotia: 300,582.67 oz

 

 

 

 

 

 

total 301,895.740  oz

 

we had 1 adjustment :

i) Out of CNT: 517,608.700 oz was adjusted out of the customer account of CNT and this landed into the dealer account of CNT

 

 

 

total dealer silver:  93.110 million

total dealer + customer silver:  307.430 million oz

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 22  notice(s) filed for 110,000 OZ for the JULY, 2019 COMEX contract for silver

The total number of notices filed today for the JULY 2019. contract month is represented by 22 contract(s) FOR 110,000 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 4521 x 5,000 oz = 22,605,000 oz to which we add the difference between the open interest for the front month of JULY. (22) and the number of notices served upon today (22 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JULY/2019 contract month: 4521 (notices served so far) x 5000 oz + OI for front month of JULY (22) number of notices served upon today (56)x 5000 oz equals 22,605,000 oz of silver standing for the JULY contract month.

WE GAINED 1 CONTRACT OR AN ADDITIONAL 5,000 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. 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 22 notice(s) filed for 110,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  62,832 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 87,486 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 487,482 CONTRACTS EQUATES to 437 million  OZ 62.4% 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 RISES TO -0.33.% ((JULY 29/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.06% to NAV (JULY 29/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -0.33%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 14.22 TRADING 13.77/DISCOUNT 3.16

END

And now the Gold inventory at the GLD

JULY 29/WITH GOLD UP $1.00: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 6.75 TONNES INTO THE GLD INVENTORY///INVENTORY RISES TO 824.89 TONNES

JULY 26/WITH GOLD UP $4.50: A HUGE INVENTORY WITHDRAWAL OF 4.09 TONNES OF PAPER GOLD LEAVES THE GLD/INVENTORY RESTS AT 818.14 TONNES

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 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 29/2019/ Inventory rests tonight at 824.89 tonnes

 

 

*IN LAST 630 TRADING DAYS: 109.85 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 530 TRADING DAYS: A NET 55.83 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

end

 

Now the SLV Inventory/

JULY 29/2019: WITH SILVER UP 4 CENTS TODAY: A SMALL WITHDRAWAL OF 468000 OZ FROM THE SLV/INVENTORY LOWERS TO 356.715 MILLION OZ//

JULY 26.2019: WITH SILVER DOWN 2 CENTS TODAY:  A HUGE 1.03 MILLION OZ OF PAPER SILVER LEAVES THE SLV/INVENTORY LOWERS TO 357.183 MILLION OZ//

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 29/2019:

 

 

Inventory 356.715 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.17/ and libor 6 month duration 2.20

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

G0LD LENDING RATE: – .03

 

XXXXXXXX

12 Month MM GOFO
+ 2.15%

LIBOR FOR 12 MONTH DURATION: 2.19

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  – 0.04

end

 

 

end

 

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

US, EU and China To Revalue Gold In New ‘De Facto’ Gold Standard

US, EU and China could pursue joint revaluation of precious metal 

By Willem Middelkoop
Official Monetary and Financial Institutions Forum 

via OMFIF

Last year 22 central banks, situated largely to the east of Germany, bought the largest amount of gold since 1967, the year the London Gold Pool collapsed. The gold repatriations by many European countries of the last few years are another sign that we are reaching the end of four decades of monetary calm.

The OMFIF is an independent think tank for central banking, economic policy and public investment

This could bring about the largest monetary changes since the closing of the gold window by U.S. President Richard Nixon in 1971.

The United States wants its fiat dollar system to prevail for as long as possible. It has every interest in preventing a “rush out of dollars toward gold,” as happened in the 1970s. Since then bankers have been trying to exercise control over the precious metal’s price.

This war on gold has been ongoing for almost 100 years but gained traction in the 1960s with the forming of the London Gold Pool, whose members included the US, UK, Netherlands, Germany, France, Italy, Belgium, and Switzerland.

During meetings of central bank chiefs at the Bank for International Settlements in 1961, the eight participating countries agreed to make available a gold pool worth $270 million. This was focused on preventing the gold price from rising above $35 per troy ounce, as set during Bretton Woods, by selling official gold holdings from the central banks’ gold vaults.

However, in March 1968 the pool was disbanded because France would no longer co-operate. This signalled the start of a 13-year “bull market” and sent gold to more than $800 per troy ounce in 1980.

Today Washington may consider it useful to bring back gold to support the dollar. Some U.S. insiders have even been calling openly for a return to the old way of doing things. Neo-conservative Robert Zoellick, the former president of the World Bank, wrote an open letter to the Financial Times in 2010 entitled “Bring Back the Gold Standard.”

A 2012 study by the Chatham House gold task force suggested that the metal could be added to the International Monetary Fund’s special drawing right. One of the members of this task force was Lord Meghnad Desai, chair of the OMFIF advisers council. During a conference in Dubai he remarked, “We could ask that gold be nominated as part of the Special Drawing Right. That is one thing I think is quite likely to happen. This will be easier if China increases its official gold holdings.”

Beijing wants to increase its gold reserves in the shortest time possible to at least 8,000 tonnes. This would put China on par, in terms of its gold-to-GDP ratio, with the U.S. and European Union. It would open the way, should the need arise, for a possible joint US-EU-China gold revaluation to support the financial system.

Beijing must realize that the U.S. could surprise the world with a unilateral gold revaluation. Wikileaks revealed a cable, sent in early 2010 to Washington from the U.S. embassy in Beijing, which quoted a Chinese news report about the consequences of such a dollar devaluation: “If we use all of our foreign exchange reserves to buy U.S. Treasury bonds, then when someday the Federal Reserve suddenly announces that the original 10 old dollars are now worth only one new dollar, and the new dollar is pegged to the gold — we will be dumbfounded.”

In recent years there have been numerous statements demonstrating China’s understanding of the “dark forces” suppressing the price of gold on Wall Street. Zhou Xiaochuan, then governor of the People’s Bank of China, revealed in a 2009 article that the Chinese recognise the hypocrisy of U.S. policy toward gold: “After the disintegration of the Bretton Woods system in the 1970s, the gold standard, which had been in use for a century, collapsed. Under the influence of the dollar hegemony the stabilizing effect of gold was widely questioned; the ‘gold is useless’ discussion began to spread around the globe… Currently there are more and more people recognising that the ‘gold is useless’ story contains too many lies. Gold now suffers from a ‘smokescreen’ designed by the U.S., which stores 74% of global official gold reserves, to put down other currencies and maintain the dollar hegemony.”

Since then China and Russia have stopped buying U.S. Treasuries while adding physical gold reserves.

Clearly gold is making a remarkable comeback to the world financial system. A new gold standard is being born without any formal decision.

At least that is how Ambrose Evans-Pritchard, an influential international business editor of The Telegraph, described the ongoing efforts by countries to lay their hands on physical gold:

“The world is moving step by step toward a de-facto gold standard, without any meetings of G20 leaders to announce this.”

Willem Middelkoop is a Member of the OMFIF Advisory Board, founder of the Netherlands-based Commodity Discovery Fund, and author of “The Big Reset: War on Gold and the Financial Endgame.”

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

25-Jul-19 1426.35 1416.10, 1143.08 1132.88 & 1281.86 1265.85
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

News

Gold Falls 1% Despite ECB Poor Outlook

Euro Hits a 2-year Low as ECB Signals More Easing is on the Way

Wall Street Recedes From Record High Following Weak Results, Draghi

Fed to Cut Rates for First Time in a Decade This Month: Poll

Newmont Goldcorp Profit Drops More Than Expected on Cost of Deals, Idle Mines

Former Trader for Scotia Capital, Bear Stearns Confesses to ‘Spoofing’ Monetary Metals

Commentary

Gold Isn’t Necessarily an Investment — It’s Life Insurance 

The $6 Trillion Pension Bailout is Coming

$1.6 Trillion Fund Spots a New, Ticking Time Bomb in the Market

Chinese Bank With $100 Billion in Assets is About to Collapse

CFTC Settles Charges Against Former JPM Metals Market Manipulator Edmonds

Today’s Climate Change is Worse Than Anything Earth Has Experienced in the Past 2,000 Years

Click Here to Listen to the latest GoldCore Podcast

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

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Mark O’Byrne
Executive Director
end

ii) Important gold commentaries courtesy of GATA/Chris Powell

Extremely important. Andrew Maguire has met UK Parliamentarians as well as UK treasury and B of E officials explaining to them the huge risk to the banking systems with the monstrous issuance of Exchange for Physicals.

(courtesy Andrew Maguire/Craig Hemke/GATA

 

 

London bullion trader Maguire prods Parliament, UK regulators to stop gold rigging

 Section: 

3p ET Friday, July 26, 2019

Dear Friend of GATA and Gold:

Interviewed this week by the TF Metal’s Report’s Craig Hemke, London bullion trader Andrew Maguire discloses that he has been working with members of Parliament to expose gold market rigging engineered by U.S. financial interests in the United Kingdom.

 

The issue was raised in Parliament on July 8 —http://www.gata.org/node/19223

— and since that time, Maguire says, he has met about it with officials of the UK Treasury Department and the Bank of England and has been scheduled to meet with them again.

His objective, Maguire says, is to make it impossible for bullion banks to manipulate the gold market as regulatory standards become more stringent.

In the interview Maguire and Hemke both credit GATA with amassing overwhelming documentation of market manipulation.

Their interview is 26 minutes long and can be heard at the TF Metals Report here:

https://www.tfmetalsreport.com/podcast/9587/important-discussion-andrew-…

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

* * *

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
Could this be some of the BIS swapped gold recovered?
(Reuters/GATA)

Maybe the BIS has recovered some swapped gold

 Section: 

Armed Men Steal $40 Million of Gold, Metals from Brazil Airport

By Leonardo Benassatto and Marcelo Rochabrun
Reuters
Friday, July 26, 2019

SAO PAULO, Brazil — Armed men stole $40 million of gold and other precious metals Thursday from a Sao Paulo cargo terminal at South America’s busiest airport, taking two hostages, police said.

Several of the suspects arrived at the Guarulhos airport in a black pickup truck with livery resembling Brazil’s federal police, according to security footage seen by Reuters. Four men left the vehicle with their faces covered, at least one of whom had a rifle, and confronted workers at the airport, who then proceeded to fill up the pickup truck with cargo.

… 

..A police report said the thieves left with about 750 kilograms (1,650 pounds) of gold and other precious metals, along with two airport workers taken as hostages, and remained at large. …

… For the remainder of the report:

https://www.reuters.com/article/us-brazil-crime/armed-men-steal-40-milli…

* * *END

Ronan Manly correctly believes that the end of the gold agreement with the central banks liberates all of them to start buying gold.

(Ronan Manly Bullion star//GATA)

Ronan Manly: End of gold agreement liberates central banks to start buying

 Section: 

3:41p ET Friday, July 26, 2019

Dear Friend of GATA and Gold:

Bullion Star gold market researcher Ronan Manly today describes how the European Central Bank’s series of agreements on gold was always just cover for liquidation of longstanding gold leases, not any attempt to stabilize and bring transparency to the gold market. Manly adds that the expiration of the current agreement and the decision not to replace it may liberate participating central banks to start purchasing gold.

Manly’s analysis is headlined “By Not Renewing the CBGA, Central Banks in Europe Look Ready to Buy Gold” and it’s posted at Bullion Star here:

https://www.bullionstar.com/blogs/ronan-manly/by-not-renewing-the-cbga-c…

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

END

Confusion reigns supreme with the Donald as to whether he will take steps to weaken the dollar

(Washington Post/GATA)

Trump says he could still take steps to weaken dollar, fueling confusion

 Section: 

By Damian Paletta
Washington Post
Friday, July 26, 2019

President Trump gave mixed signals this week as to whether he would intervene and try to weaken the U.S. dollar, telling aides Tuesday he had ruled out the idea but telling reporters on Friday he was still open to it.

On Tuesday, Trump rejected a recommendation from senior adviser Peter Navarro that the United States should take steps to weaken the U.S. dollar to boost U.S. exports, people briefed on the exchange said. Trump said intervening could damage the U.S. economy and cause problems that would difficult to control, the people said.

But today Trump told reporters he had not ruled anything out. He said the strong U.S. dollar was making it harder for U.S. companies to boost exports, something he blamed in part on the Federal Reserve’s decision to raise interest rates last year.

“I could do that in two seconds if I want to,” Trump told reporters in the Oval Office this afternoon. “I didn’t say I’m not going to do something.” …

… For the remainder of the report:

https://www.washingtonpost.com/business/economy/trump-shot-down-navarros…

* * *

END

Strange: we have Blackrock and other hedge funds tell the ECB that they should be equities after they have run out of room for bonds

(London’sFinancial Times/GATA)

Even the Financial Times starts to notice how crazy central banking has gotten

 Section: 

ECB Purchases of Equity Would Be a Dangerous Step

BlackRock Proposal Is Anti-Free Markets and Based on Naked Self-Interest

By Merryn Somerset Webb
Financial Times, London
Friday, July 26, 2019

https://www.ft.com/content/9a6295f6-aefa-11e9-8030-530adfa879c2

This week BlackRock executive Rick Rieder urged the European Central Bank to stimulate the eurozone economy by printing money and using it to buy equities.

This idea has attracted rather less comment than it should have, even though it’s not a new idea. The Bank of Japan has been buying domestic equities for years: it owns about 75 per cent of the country’s exchange traded fund market and is a top 10 shareholder in 40 per cent of Japan’s listed companies.

The ECB has also long been incredibly dovish: it has provided more than €2tn of quantitative easing, negative interest rates, endless cheap loans and lots of forward guidance making it clear that this will go on and on and on.

The market has become used to the idea that it somehow makes sense to pay 0.3 per cent or more a year to lend money to the German government for a decade. Thursday’s ECB meeting told us that interest rates are expected to remain “at their present or lower levels” at least through the first half of 2020. The language also suggested that a new package of measures is coming — with discussion under way about “options for the size and composition of potential new net asset purchases.”

Investors expect more rate cuts and a bit more QE to come in September. But everyone also knows that further QE isn’t as simple as it looks. Germany is running out of Bunds, thanks to running a budget surplus, and ECB buying has to be proportional to the size of its constituent countries. So Germany needs to run a deficit to sell Bunds to the ECB or allow the development of eurobonds guaranteed by Germany. If it won’t, the ECB has to get seriously creative.

Buying equities with new money is therefore a possible solution. Brian Pellegrini of Intertemporal Economics explains that it would “respect the capital key” (the relative national shareholdings in the ECB) by buying German assets while also helping to weaken the euro.

Equity purchases could also be a neat way to compensate EU residents for the past decade of extreme monetary policy. If you are a German saver faced with making negative returns on cash deposits for the rest of your life, a stock market bubble might make you feel a little better. It might even prompt a little of the wealth effect that works so effectively in the US to prompt consumer spending.

ECB President Mario Draghi said seven years ago that he would do “whatever it takes” to get Europe moving. If he still reckons the eurozone needs his help (which is not a given — not all the data is bad), this is about the only option left in his box of monetary tricks.

So what’s the concern? First of all there is something markedly unattractive about seeing BlackRock, the world’s largest asset manager, suggesting that a central bank adopt a policy specifically designed to push up equity prices.

But the naked self-interest isn’t the main issue here. Nor is the fact that buying equities is unlikely to be of much use. It hasn’t worked in Japan and, while I can see how it might push up equity prices (which is nice for people who have equities already), it is harder to see how a central bank buying shares helps anyone else.

To see the real problem with this, we have to step back a long way. Our senses have been dulled by increasingly extreme monetary policy over the past decade, so we must try and look at it afresh. What is being suggested here is that the ECB, a publicly owned institution, prints money and uses it to buy equity stakes in private companies. In other words, the only way to save capitalism is to begin to nationalise it.

Global elites have a full-on meltdown every time the UK opposition leader Jeremy Corbyn suggests some kind of “people’s QE” or nationalising a couple of utility companies. Yet when BlackRock says this no one blinks.

It isn’t quite the same — utility nationalisation isn’t good for big asset managers for starters. But it isn’t all that different either. Public equity purchases distort pricing signals; they are anti-free markets; they will be almost impossible to unwind; and think of the governance issues. BlackRock likes to promote the idea that big shareholders should be active when it comes to corporate governance. What if one of those big shareholders is a central bank? Should they be active too?

Finally, the ongoing shift towards increasingly bonkers monetary bazookas is surely more evidence that the whole thing just isn’t working. If the big financial firms could see beyond their own business models they wouldn’t be asking for more measures to stabilise the status quo.

Instead they would be remembering former Bank of England governor Mervyn King’s comments in the depths of the financial crisis in 2009 — “any policy measure that is desirable now appears diametrically opposite to the direction in which we need to go in the long term” — and they’d be lobbying for something completely different.

Still, there is good news embedded in here. Nervous investors need no longer wonder what to do with their cash: if more QE is coming in the EU and there is even a chance that some of it will involve buying European equities, they should buy European equities — BlackRock just put out a note suggesting their clients do that.

* * *

END

Judy Sheldon, Trump’s pick for a Fed position is driving the deep state crazy. She is a gold advocate

(Politco/GATA)

Trump Fed pick’s push for gold troubles lawmakers

 Section: 

By Victoria Guida
Politico, Arlington, Virginia
Sunday, July 28, 2019

https://www.politico.com/story/2019/07/28/judy-shelton-fed-gold-standard…

Decades after the U.S. abandoned its policy of tying the dollar’s value to gold, President Donald Trump’s latest pick for the Federal Reserve, Judy Shelton, wants to bring it back into style.

Shelton’s longtime promotion of a return to a gold standard is so out of the mainstream that it’s likely to be an obstacle on her road to Senate confirmation. Yet it’s only one of several ideas she has espoused that would redefine — and diminish — the Fed’s role in the economy. And that matters because, while Shelton would be only one of seven Fed governors if confirmed, she could be in line to chair the central bank if Trump wins reelection.

A gold standard would make deficit spending much more expensive. It would limit the central bank’s ability to take the kind of extraordinary measures that it did during the financial crisis to stop the economy from going into freefall. And it would link the Fed’s interest rate decisions to gold market fluctuations rather than to its current goals of fighting inflation and maximizing employment.

“The gold standard would probably shatter a lot of people’s dreams around the world right now,” said Sen. Richard Shelby (R-Ala.), a key member of the Banking Committee, which will vet her nomination. “There was a reason to get off of it.”

“I’ve gotta see where she’s at on a lot of other stuff, but this is not necessarily something that I would give her high marks for,” added Sen. Jon Tester, a centrist Democrat who also sits on the Banking Committee and has voted with the GOP majority on some important legislation.

For her part, Shelton says she’s glad the topic is being discussed. “I am actually quite grateful that these ideas, that have been my focus for some 25 years, are being elevated to the level of public debate without people’s eyes glazing over,” she wrote in one of multiple emails to Politico.

While even Shelton agrees that the U.S. is nowhere near being on track to returning to a gold standard, which was fully abandoned by President Richard Nixon in 1971, the idea has maintained popularity in certain conservative and libertarian circles as a way to increase the dollar’s stability.

That’s particularly true among those with a strong distrust of the Fed — a camp that includes Shelton.

While both the 2012 and 2016 Republican Party platforms called for a new commission to consider fixing the dollar’s value to a precious metal, most economists argue that returning to gold would prevent the central bank from acting in the best interest of the economy. They also say it would attempt to aggressively head off a problem that hasn’t existed for decades: runaway inflation.

In 2012, the University of Chicago’s Booth School of Business asked 40 prominent economists whether a return to the gold standard would be better for the average American. All of them said no.

Support for tying the dollar to gold’s value makes a Fed candidate “manifestly unqualified, in the same way I wouldn’t have a surgeon general who supported leeches and bloodletting,” said Jason Furman, a Harvard professor and former chief economist to President Barack Obama. “It handcuffs the Fed and locks them into focusing on an objective that has no underlying reality, which is the price of the dollar relative to gold.”

Republicans have not publicly voiced concerns about Shelton herself, whose selection comes in the wake of senators’ objections to Trump’s last two picks, Stephen Moore and Herman Cain — both forced to withdraw. But neither are GOP senators embracing the idea that has been central to her policy advocacy for more than two decades.

Sen. Pat Toomey (R-Pa.), an influential Banking Committee member, said he wouldn’t support a return to the gold standard, although he said pegging rates to “some commodity basket index would not be an unreasonable way to anchor monetary policy.”

“I haven’t had a chance to drill down and study what she has written and what she has said, and I’ve never met her,” he added, a sentiment echoed by Sen. Mike Rounds (R-S.D.).

Some senators are ignoring the question entirely. “I don’t think it’s relevant,” Sen. Tim Scott (R-S.C.) said when asked about her views on gold, adding that there was no need to focus on “controversial statements” when “she has decades of work that we can actually look at.”

But talking about Shelton’s decades of work means talking about gold, and her candidacy for the central bank gives her a bigger platform than ever to make her case.

The dollar is now valued by trading on the open market, rather than having a fixed value in terms of gold, and its price often appreciates in connection with positive developments in the U.S. economy. Trump has in recent months bemoaned the strength of the dollar relative to other currencies, because it makes U.S. exports more expensive, and called on the Fed to devalue it. Shelton, in contrast, has long advocated for a strong, stable dollar.

She says returning to an authentic gold standard — in which dollars are redeemable for a certain amount of gold — “would not be feasible” now, because there are too many dollars in circulation relative to the U.S. government’s store of gold. Such a standard hasn’t fully existed in the U.S. since the Great Depression.

But, she added, “it might be worth trying to incorporate some aspect of a gold/silver link to a future debt instrument to add intrinsic value.”

At the heart of her philosophy is the notion that people should be able to hold assets whose values are stable throughout time. And key to enforcing that goal is giving people the ability to hold gold rather than government-issued currencies.

“The dollar comes closest to being a global medium of exchange, though its efficiency is greatly reduced because its value constantly fluctuates,” Shelton wrote in 2012. “How can a global economy function optimally when the foremost monetary unit of account for measuring value shifts unpredictably across borders and through time?”

In 1994, she wrote a book, “Money Meltdown,” which advocated for a new Bretton Woods agreement. Under that World War II-era arrangement, countries tied their currencies to the value of gold so exchange rates wouldn’t fluctuate much. It was abandoned by the U.S. during the Vietnam War when foreign governments began cashing in their dollars for gold.

Shelton has suggested that one way to move toward an updated agreement would be a decision by Treasury to temporarily issue bonds that are redeemable in either dollars or gold, an idea floated by Alan Greenspan, who would later chair the Fed, in 1981.

She said such an example set by the U.S. would lead other countries to adopt a similar approach, essentially allowing countries to determine the relative value of their currencies.

In 2012, she explained what she saw as the implications of this idea: “Governments might even be removed from the business of producing money. A Universal Gold Reserve Bank could evolve toward the end of the transition process, bundling contracts into gold-linked securities.”

Still, Shelton told Politico that it’s “premature to talk about international agreements or linking to gold.”

“We are a long ways from doing anything along those lines,” she said. “I do think that, by identifying currency devaluation as being an unfair trade practice, President Trump is showing international economic leadership.”

Linking the dollar to gold would prevent central banks from being able to devalue their currency relative to the dollar to gain an export advantage against the U.S. — something Trump has been pressing the Fed to do.

George Selgin, an economist at Cato, is sympathetic to the goals of gold standard supporters but doesn’t agree with their solution. He also expressed skepticism about Shelton’s convertible bond proposal.

“If gold bonds had any bearing on monetary policy, it would be by causing the Treasury to pressure the Fed to limit movements in … the price of gold,” he said. But practically speaking, he added, Treasury would just give itself an escape hatch if gold prices went up too much.

“So the bonds would not give even the Treasury, let alone the Fed, a very strong incentive to lobby for keeping the price of gold low and stable,” Selgin added.

end

A good one from Michael Hudson:  What is next after negative rates: a devaluation and with debt that cannot be paid, a saving meltdown. A debt jubilee anyone?

(courtesy Michael Hudson/GATA)

Michael Hudson: After negative rates, devaluation and a savings meltdown

 Section: 

11:08a ET Monday, July 29, 2019

Dear Friend of GATA and Gold:

Economics professor Michael Hudson’s latest essay, copied below from his internet site, acknowledges that the Federal Reserve is manipulating both equity prices and gold prices by using the futures markets.

Hudson’s argument here — that the world’s debt has become overwhelming and unpayable and must be addressed by currency devaluation — echoes the argument made 13 years ago by the Scottish economist Peter Millar, who calcuated that a 700-percent increase in the gold price would be needed to avert a worldwide deflationary collapse caused by exponential interest expense:

http://www.gata.org/node/4843

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

* * *

Michael Hudson: The Coming Savings Meltdown

By Michael Hudson
NakedCapitalism.com
Monday, July 29, 2019

https://michael-hudson.com/2019/07/the-coming-savings-meltdown/

Debts that can’t be paid won’t be. That point inevitably arrives on the liabilities side of the economy’s balance sheet.

But what of the asset side? One person’s debt is a creditor’s claim for payment. This is defined as “savings,” even though banks simply create credit endogenously on their own computers without needing any prior savings. When debts can’t be paid and debtors default, what happens to these creditors?

As President Obama showed, banks and bondholders can be bailed out by Federal Reserve money creation. That is what the $4.6 trillion in “quantitative easing” since 2008 was all about. The Fed has spent the last few years supporting stock market prices (and holding down gold prices) by manipulating the forward option markets.

But this artificial life support to keep the debt overhead afloat is nearing the reality of the debt wall. The European Central Bank has almost run out of eurobonds to buy. The new fallback position to keep the increasingly zombified U.S. and eurozone financial markets afloat is to experiment with negative interest rates.

Writing down savings by a few percentage points helps bring the glut of creditor claims marginally back toward balancing bank deposits with the ability of debtors to pay. But such marginal moves are rarely sufficient. A quantum leap is needed.

Governments have long followed a basic guideline when faced with a need to devalue their currencies. (For instance, as the dollar was devalued against gold in 1933.) Nothing is worse for a politician or central banker than to be overly shy when it comes to devaluation. The motto is, “Always depreciate to excess.” That means at least 25 percent, often a third when a basic structural adjustment is needed.

The recent experiment in negative interest rates writing down savings as a necessary complement to the inevitable debt writedowns means that financial policy makers are beginning to realize the hitherto unthinkable — that many zombie companies and debtors have no foreseeable means of paying the amounts that they owe on paper.

The tendency of debts to grow exponentially at rates in excess of the economy’s ability to create an economic surplus to pay creditors has been known for nearly 5,000 years. My book “… And Forgive Them Their Debts” describes how ancient Near Eastern rulers recognized the inherent tendency of financial dynamics to cause instability, leading to debt bondage and forfeiture of land to creditors.

To prevent this rising indebtedness from tearing their realms apart, rulers started their first full year on the throne by clearing away the overhang of arrears that had been accruing on personal and agrarian debts. The aim was to restore an idealized “mother condition” in which bondservants were liberated, able to start with a clean slate with their self-supporting land returned to them, in balance with regard to their income and outgo.

An analogy would be the idyllic condition that the U.S. economy would achieve if we could restore the financial situation of 1945. The end of World War II left an economy in which most families were almost debt-free. Families and businesses and were rife with cash, as there had not been much opportunity to spend during the war years, and the Great Depression had wiped out substantial debts. Returning soldiers were able to start families and buy homes by committing to pay only 25 percent of their income for 30 years.

This era was as close as the United States came to a clean slate. Today it seems an unrecoverable golden age — as the ancient Near East seemed to be to debt-wracked imperial Rome.

Germany’s “economic miracle” consisted of its Allied Monetary Reform of 1948 — a clean slate erasing most personal and business debt. That debt cancellation was fairly easy because most debts were owed to Nazis, and the Allies were glad to see those savings claims for payment wiped out.

Today students graduate with an obligation to pay so much education debt that they cannot qualify for mortgages to buy homes of their own. Marriage rates are down, U.S. home ownership is plunging, and rents are rising. Automobile debt also has soared, leading to rising default rates second only to student debt defaults. The overhang of junk-mortgage debts that crashed the economy in 2008 remains on the books of families who managed to survive the 10 million foreclosures under the Obama bailout of Wall Street. (His constituency turned out to be his donor class, not the junk-mortgage victims among his voters. He characterized them as “the mob with pitchforks” to the banksters he invited to the White House to celebrate his bailout.)

By driving down interest rates, the Fed’s policy of quantitative easing has subsidized an enormous debt buildup without increasing the interest burden proportionally. This has enabled corporations to carry much higher debt and even indulge in leveraged buyouts and stock buyback programs.

This QE policy has made financial engineering much more enriching than industrial engineering. But it has painted the U.S. and European economies into a corner. At some points interest rates will inevitably begin to rise back up. Some countries will have to increase rates in order to borrow to stabilize their exchange rates when their balance of trade and payments falls into deficit. Other countries will simply see that the game is over and will give up the pretense that the personal, corporate, and public-sector debt overhead can be paid.

It is to prepare for this inevitable eventuality that Europe is experimenting with its negative interest rates. Once the technique is established, it will prepare the way for the inevitable step of writing down national savings in line with the economy’s ability to pay.

That ability is shrinking much more than at any time since the 1920s, which gave way to the Great Depression despite the many debt writedowns of 1931-32. The exponential mathematics of compound interest have created more and more claims on personal income and corporate cash flow, leaving less and less to be spent on goods and services.

Until a debt writedown occurs, storefronts will continue to close, arrears will mount, students will continue to postpone marriage and family formation, and high-risk bonds will begin to give way and default.

That should be what economic theory is all about. But for the past generation, economic models have pretended that banks and creditors act responsibly enough not to make bad loans. Pension fund managers pretend that they can provide for future retirement of corporate or public employees by earning 8 percent annually ad infinitum, doubling every seven years, as if this is really possible in an economy not really growing outside of the Finance, Insurance, and Real Estate (FIRE) sector (and even so, growing at only 1 or 2 percent).

How then can the economy pay its debts without imposing financial austerity much like Third World countries subjected to International Monetary Fund austerity programs?

Today’s economic orthodoxy denies that this debt problem can exist. Debt dynamics and the exponential growth curve of compound interest does not exist in the parallel academic universe that somehow has been situated in the social science department instead of the literature department as science fiction.

Perhaps someday a revamped economics curriculum will include the study of history to see how earlier societies have coped with the inherent tendency of debts to increase faster than the ability to be paid. It is a long history with many examples. Western civilization has failed to solve the financial problem that Near Eastern societies were able to cope with by intervening from “outside” the economy.

But these formative debt experiences are as repressed today as sexual drives that were repressed academically before the work of Freud. Academic economists are financial prudes. Debt cancellation is historically the solution. Quantitative easing and bailouts of the 1 percent can be only a temporary substitute. We should think of them as “abstinence” from recognizing the need to write down bad loans (“savings”) along with the bad debts.

—–

Michael Hudson is a research professor of economics at University of Missouri at Kansas City and a research associate at the Levy Economics Institute of Bard College. His latest book is “… And Forgive Them Their Debts: Lending, Foreclosure, and Redemption from Bronze Age Finance to the Jubilee Year.”

end

iii) Other physical stories:

Central banks end their pact that limits the selling of gold. Trust me there will be no selling of any central bank gold..only purchases.

(zerohedge)

World’s Central Banks End Pact That Limited Selling Of Gold

In a surprising announcement on Friday morning, the European Central Bank said the 21 signatories of the 4th Central Bank Gold Agreement (CBGA) “no longer see the need for formal agreement” as the market has developed and matured, and as a result the signatories “decided not to renew the Agreement upon its expiry in September 2019.”

For readers unfamiliar, the first CBGA was signed in 1999 to coordinate planned gold sales by the various central banks. When it was introduced, the ECB notes that “the Agreement contributed to balanced conditions in the gold market by providing transparency regarding the intentions of the signatories. It was renewed three times in 2004, 2009 and 2014, gradually moving towards less stringent terms.”

The fourth CBGA, which expires on 26 September 2019, was signed by the ECB, the Nationale Bank van België/Banque Nationale de Belgique, the Deutsche Bundesbank, Eesti Pank, the Central Bank of Ireland, the Bank of Greece, the Banco de España, the Banque de France, the Banca d’Italia, the Central Bank of Cyprus, Latvijas Banka, Lietuvos bankas, the Banque centrale du Luxembourg, the Central Bank of Malta, De Nederlandsche Bank, the Oesterreichische Nationalbank, the Banco de Portugal, Banka Slovenije, Národná banka Slovenska, Suomen Pankki – Finlands Bank, Sveriges Riksbank and the Swiss National Bank.

The simplest reason why the agreement is no longer needed, is that whereas central banks used to sell gold in the 1990s and early 2000s, most famously the UK’s sale of 401 tonnes of gold of its total 715 tonne holdings under Gordon Brown, broadly seen as one of the “worst investment decisions of all time“, currently they are buying at an unprecedented pace, and in 2018, central bank gold demand was the highest in the “modern” era, or since Nixon closed the gold window in 1971.

More recent data shows that gold buying by central banks in 2019 has persisted and remains the highest in years, with no central bank buying more than Russia, which after dumping most of its US Treasury holdings in 2018, has continued to aggressively convert its foreign reserves into the precious metal.

RS

As a result of a shift in official institutional sentiment from selling to buying, the original agreement which was designed to coordinate primarily selling intentions in order to avoid flooding the market has become an anachronism. Indeed, as the following chart from the ECB shows, there have been virtually no gold sales under the CBGA this decade.

Still, as Bloomberg’s Pimm Fox notes, just because they did not sell any gold recently, does not mean they won’t in the future. Fox notes that among the CBGA signatories are Banca d’Italia and Banque de France, each of which holds more than 2,400 metric tons of the precious metal and are faced with deteriorating finances. Well, as the OECD reported recently, Italy’s deficit would rise to 2.5% of GDP this year while the economy shrinks 0.2%. Italy’s public debt will hit a record 133.8% of GDP this year and climb to 134.8% in 2020, according to the OECD. In France, the government has reduced its GDP growth forecast for 2019 to 1.4% from 1.6% and is on course for a budget deficit higher than 3% of GDP. The country’s public debt is more than 98% of GDP.

His conclusion: “when the bills come due, politicians may start looking at something that rhymes with sold.”

Perhaps, but on the other hand, states such as Russia and China will be more than happy to buy up whatever gold France and Italy have to sell.

Meanwhile, following the report, gold jumped to intraday highs, but to Fox, the jump could be a short-lived move if some of the abovementioned central banks begin selling their holdings to help support cash-strapped economies.

Then again, with global bonds yields now negative across virtually all of Europe, it would take nothing short of a crisis, or the ECB losing all its credibility overnight, for Italy or France to be unable to sell bonds in the current environment. Of course, if and when bond yields soar and central banks finally lose control of the bond market, it is distinctly possible that Italy will have no choice but to sell its gold. The good news – if only for gold bugs – is that when that happens, demand for gold from every other source – will be so high thanks to the scramble out of fiat and into hard currency, that any marginal sales will hardly be noticed as the price of gold explodes just in time for the global hyperinflation episode.

In any case, keep an eye on the gold market on September 26: that when the CBGA will officially conclude.

The full ECB statement ending the CBGA is below (link)

As market matures central banks conclude that a formal gold agreement is no longer necessary

  • Signatories of the fourth Central Bank Gold Agreement no longer see need for formal agreement as market has developed and matured
  • Signatory central banks confirm gold remains an important element of global monetary reserves and none of them currently has plans to sell significant amounts of gold

The European Central Bank (ECB) and 21 other central banks that are signatories of the Central Bank Gold Agreement (CBGA) have decided not to renew the Agreement upon its expiry in September 2019.

The first CBGA was signed in 1999 to coordinate the planned gold sales by the various central banks. When it was introduced, the Agreement contributed to balanced conditions in the gold market by providing transparency regarding the intentions of the signatories. It was renewed three times in 2004, 2009 and 2014, gradually moving towards less stringent terms.

Since 1999 the global gold market has developed considerably in terms of maturity, liquidity and investor base. The gold price has increased around five-fold over the same period. The signatories have not sold significant amounts of gold for nearly a decade, and central banks and other official institutions in general have become net buyers of gold.

The signatories confirm that gold remains an important element of global monetary reserves, as it continues to provide asset diversification benefits and none of them currently has plans to sell significant amounts of gold.

The fourth CBGA, which expires on 26 September 2019, was signed by the ECB, the Nationale Bank van België/Banque Nationale de Belgique, the Deutsche Bundesbank, Eesti Pank, the Central Bank of Ireland, the Bank of Greece, the Banco de España, the Banque de France, the Banca d’Italia, the Central Bank of Cyprus, Latvijas Banka, Lietuvos bankas, the Banque centrale du Luxembourg, the Central Bank of Malta, De Nederlandsche Bank, the Oesterreichische Nationalbank, the Banco de Portugal, Banka Slovenije, Národná banka Slovenska, Suomen Pankki – Finlands Bank, Sveriges Riksbank and the Swiss National Bank.

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 MONDAY 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: 6.8807/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8834   /shanghai bourse CLOSED DOWN 30.52 POINTS OR 1.04%

HANG SANG CLOSED DOWN 131.51 POINTS OR 0.46%

 

2. Nikkei closed DOWN 422.94 POINTS OR 1.97%

 

 

 

 

3. Europe stocks OPENED ALL MIXED/

 

 

 

USA dollar index UP TO 97.24/Euro FALLS TO 1.1219

3b Japan 10 year bond yield: FALLS TO. –.13/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.85/ 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 DOWN/JAPANESE Yen PU CHINESE YUAN:   ON -SHORE DOWN/OFF- SHORE: DOWN

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

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

3h Oil 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 RISES TO -.32%/Italian 10 yr bond yield DOWN to 1.53% /SPAIN 10 YR BOND YIELD DOWN TO 0.39%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.09

3k Gold at $1421.50 silver at: 16.13   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in roubles/dollar) 62.99

3m oil into the 57 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 107.85 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 .9875 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1077 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 0.32%

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 2.05% early this morning. Thirty year rate at 2.57%

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

6.  TURKISH LIRA:  UP  TO 5.6988..

 

Markets Coiled Ahead Of “Most Important Week Of The Year”

For what has been widely accepted as “the most important week for markets of 2019”, the market sure is taking its time to get excited, with overnight volumes subdued and global shares easing modestly on Monday with US equity futures hugging the unchanged line as the dollar shit a two-month high against a basket of currencies as markets began the 2-day countdown to a guaranteed rate cut in the US on Wednesday, with much riding on whether the Federal Reserve cuts 25 or 50bps and signals more cuts are to come.

Interest rate futures are fully priced for a quarter-point rate cut from the Fed on Wednesday, with a tiny chance of a half-point move.  As such any hawkish surprise by the Fed threatens to crash risk assets, something which Powell is now terrified of doing after the late 2018 near bear market. More important will be what the central bank flags for the future, given the market implies 100 basis points of easing over the next year or so. “The market has fully baked in a 25 basis point cut,” Eugenia Victorino, SEB head of Asia strategy, said on Bloomberg TV.

“The week is off to a mixed start which isn’t wholly surprising given just how much investors have to follow in what is typically a peaceful time of year,” said Craig Erlam, senior market analyst at OANDA. “There’s no summer lulls just yet, with the Fed about to embark on an easing cycle, the BoE (Bank of England) offering its first assessment since Boris Johnson became PM, a third of S&P 500 and a quarter of Dow companies reporting second quarter earnings, the US jobs report being released and trade talks restarting between the US and China. As ever, this is almost entirely spread over four days so today may be the calm before the storm.”

MSCI’s All Country World Index of stocks, down by as much as 0.2% on the day, erased some losses to trade 0.05% lower.

After initially opening lower, European shares moved into positive territory thanks to a surge for the U.K index after the London Stock Exchange Group’s investors backed its proposed $27 billion deal to acquire Refinitiv. Generic drugmaker Mylan NV surged and Pfizer was slightly higher in premarket trading after the companies announced plans to merge their off-patent drug businesses. Deutsche Telekom rose the most in almost 10 months after the U.S. Justice Department gave the green light for its T-Mobile US unit to acquire Sprint Corp. Automakers in Europe lagged as major carmakers prepare to report results this week, while Heineken NV shares fell after the brewer reported a hit to earnings growth. On the other side, the Stoxx 600 Automobiles & Parts Index (SXAP) fell as much as 1.2%, making it the worst performer on the broader Stoxx Europe 600. Both car and parts manufacturers dropped, dragging down the sub- index to its third consecutive day of decline. Robert Bosch GmbH warned of a 5% decline in automotive production this year, echoing Continental’s forecast last week. The sector’s retreat comes after a three-day winning streak last week when investors focused on good news.

In addition to the Fed, the other key event is the restart of US-China trade talks: negotiators from Washington and Beijing will meet in Shanghai this week for their first in-person talks since a G20 truce last month, but expectations are low for a breakthrough. Data on the weekend showed profits earned by China’s industrial firms contracted in June, fuelling concerns that the trade war will drag on economic growth. “The markets are now pricing in a protracted negotiation” on trade, said Victorino. “We don’t expect much breakthrough.”

“We remain cautiously optimistic that both sides can agree on a narrow agreement that addresses important trade-related issues, such as U.S. demands to increase exports,” said analysts at Barclays in a note. “That said, we are skeptical about the prospects of a broader agreement that includes the more challenging security-related issues.”

In Asia, MSCI’s broadest index of Asia-Pacific shares was half a percent lower as hopes for progress at U.S.-China trade talks failed to offset worries over Korean corporate earnings and civil unrest in Hong Kong. Most markets in the region were down, with South Korea’s Kospi Index declining 1.8% and Hong Kong’s Hang Seng Index falling 1%. South Korea is already North Asia’s worst performer this year, and its slump continued Monday due to a weaker earnings outlook. Hong Kong, where several demonstrations happened during the weekend, pared losses in late afternoon as China reiterated “one country, two systems” in the city. Other than regional issues, two days of trade talks between the U.S. and China remained the key event investors are watching closely this week. While it will mark the two countries’ first important meeting since the G-20 summit in Osaka, mixed signals and news indicated that neither side is showing an urge to compromise. READ: U.S.-China Talks Set to Resume as Neither Seems Eager for a Deal Australia’s benchmark closed at 6,825.8, near previous record close of 6,828.705 set Nov. 1, 2007. Thailand’s market is closed for a holiday.

In geopolitical news, thousands of Hong Kong protesters clashed with police over the weekend in which dozens were arrested as protests regarding the extradition bill continued. In response, China’s Hong Kong Affairs Office says no one should sit by and allow a few individuals to trample on the rule of law, and the central Government firmly support Chief Executive of Hong Kong Carrie Lam and the Hong Kong police.

Elsewhere, Iranian Official Araqchi said emergency meeting with parties related to 2015 nuclear deal was constructive and unresolved issues remain, while he added Iran will continue to reduce its nuclear commitments if the EU cannot save the deal. Iran Vice President says Iran’s foreign policy is to protect multilateralism and confront US hegemony.

In FX, the dollar index – which measures the greenback against a basket of peers – was higher by 0.1% and at its highest since May 31. A stronger-than-expected U.S. GDP report on Friday gave the dollar wings, as it led some investors to doubt whether the Fed will continue easing this year after its Wednesday meeting. Elsewhere in currencies, sterling fell to a fresh 27-month low around $1.2325 amid reports the government of Prime Minister Boris Johnson was preparing the ground for a “no-deal” Brexit.

In the latest Brexit news, UK Cabinet Minister Gove stated the government will make intensive efforts to get a better Brexit deal, but added we must operate on assumption we will not and that there will be a no-deal Brexit which we must be ready for. Further reports suggest that PM Johnson is to launch the largest advertising campaign since WW2 to get Britain ready for a no-deal Brexit, with an unprecedented marketing blitz on billboards, radio and television. FT reports that UK chancellor of the exchequer, Sajid Javid, is preparing to announce more than GBP 1bln in increased funding for a no-deal Brexit, according to people familiar with the matter. Institute for Government (IfG) has warned that there is no such thing as a managed no deal, and that predictions of a clean break from the EU made by hard Brexiteers will not occur.

In bonds, euro zone bond yields dipped as jittery investors eyed more U.S.-China trade talks and waited for a likely U.S. Federal Reserve interest rate cut, after the European Central Bank’s dovish signaling last week disappointed some. The benchmark German 10-year Bund yield fell more than 1 basis point to -0.3910%, not far from the record low of -0.422% touched last week.

In commodities, oil prices fell as investors fretted over the outlook for global economic growth, while weekend talks between Iran and major powers ended on a generally positive note, suggesting an easing of tensions in the Middle East.Brent crude futures eased 0.74% to $62.99, while U.S. crude lost 0.34% to $56.01 a barrel. Spot gold was flat at $1,418.13 per ounce.

Today’s economic data include the Dallas Fed Manufacturing Outlook. Scheduled earnings include Booz Allen Hamilton and J&J Snack Foods Corp.

Market Snapshot

  • S&P 500 futures little changed at 3,023.50
  • STOXX Europe 600 up 0.2% to 391.58
  • MXAP down 0.4% to 159.40
  • MXAPJ down 0.5% to 523.58
  • Nikkei down 0.2% to 21,616.80
  • Topix down 0.2% to 1,568.57
  • Hang Seng Index down 1% to 28,106.41
  • Shanghai Composite down 0.1% to 2,941.01
  • Sensex down 0.6% to 37,664.74
  • Australia S&P/ASX 200 up 0.5% to 6,825.80
  • Kospi down 1.8% to 2,029.48
  • German 10Y yield fell 1.7 bps to -0.393%
  • Euro down 0.09% to $1.1118
  • Italian 10Y yield rose 4.8 bps to 1.214%
  • Spanish 10Y yield fell 3.2 bps to 0.34%
  • Brent Futures down 0.3% to $63.29/bbl
  • Gold spot little changed at $1,419.19
  • U.S. Dollar Index up 0.1% to 98.06

Top Overnight News from Bloomberg

  • China’s economy continued to weaken in July, bolstering the case for greater policy support to shore up growth as talks over the trade dispute with the U.S. continue
  • ECB President Mario Draghi didn’t pull his punches when he said the economic outlook is getting “worse and worse”; this week, he’ll get more insight into how bad it really is out there
  • Mylan Co.’s EU1b 2024 euro notes surge 4.6 cents to 108.1 cents, the biggest daily increase on record, after reports that Pfizer plans to combine its off- patent drug business with Mylan
  • Almost three months after their trade talks broke down in acrimony, Chinese and American negotiators meet again in Shanghai this week amid tempered expectations for breakthroughs in their year-long trade war
  • U.K. Prime Minister Boris Johnson’s high-level Brexit cabinet holds its first meeting Monday, and will gather every day to ensure the country leaves the European Union on Oct. 31
  • Former Fed Chair Janet Yellen says she would have supported a 25bps interest cut at the FOMC meeting this week, because of global economic growth slowdown and low inflation, the Wall Street Journal reported, citing her speech in Aspen, Colorado
  • Oil traded near $56 a barrel as the U.K. deployed a warship to the Strait of Hormuz to help escort commercial ships, while U.S.-China trade talks are set to resume amid little expectations for a breakthrough
  • The Treasury Department is expected to hold its quarterly note and bond sales at record levels for the third straight time as Washington’s latest budget deal shows that the U.S.’s debt binge will continue
  • China’s top office for Hong Kong affairs plans a briefing on the city’s unrest, after a weekend of demonstrations

Asian equity markets began the week tentative as the upcoming slew of key risk events such as the resumption of US-China trade talks, heavy central bank activity including the FOMC and the latest US NFP jobs data, clouded over last Friday’s record highs on Wall St where tech earnings and better than expected US GDP underpinned stocks. As such, ASX 200 (+0.5%) and Nikkei 225 (-0.2%) were mixed with tech and telecoms front-running the gains in Australia to push the benchmark index to record all-time high, while Tokyo sentiment was subdued by a firmer currency and with earnings in focus. Hang Seng (-1.0%) and Shanghai Comp. (-0.1%) weakened amid modest expectations regarding the US-China trade talks in Shanghai this week and following a decline in Chinese Industrial Profits, with underperformance in Hong Kong after violent clashes over the weekend in protests that entered an 8th consecutive week. Finally, 10yr JGBs traded flat despite the weakness in Tokyo stocks, with demand for bonds subdued as participants were sidelined ahead of tomorrow’s BoJ policy announcement in which it is expected to maintain its policy settings of QQE with YCC control and NIRP at -0.10%. PBoC skipped open market operations for a net daily drain of CNY 50bln. (Newswires) PBoC set CNY mid-point at 6.8821 (Prev. 6.8796)

Top Asian News

  • India’s Finance Minister Seeks ‘Significant’ Rate Cuts from RBI
  • In Latest China Bank Rescue, Authorities Avoid a Takeover
  • Jack Ma’s $290 Billion Loan Machine Is Changing Chinese Banking
  • Swissport Plans to Refinance Outstanding Debt
  • Activist Calls on U.S. to Stop Selling Tear Gas to Hong Kong

European indices have largely started the week off mixed/flat [Stoxx 50 unch], though the FTSE 100 (+1.1%) is outperforming as sterling has continued to move lower throughout the session. Sectors are similarly mixed with some underperformance in the Auto sector, with auto names down in sympathy with Peugeot/PSA Group (-2.6%) afflicted by reports that the Co. are to move all production from their UK, Ellesmere Port to mainland Europe in the event that Brexit makes the plant unprofitable. Other notable movers include, Just Eat (+24.1%) and LSE (+14.9%) who are at the top of the Stoxx 600 and FTSE 100 after the confirmation of takeover discussions with Takeaway.com and sources indicating that the merger with Refinitiv is to be finalised within a week respectively. In contrast, at the bottom of the Stoxx 600 are Heineken (-5.3%) after the Co. reported operating profits of EUR 1.78bln vs. Exp. EUR 1.90bln for H1, though consolidated beer volume increased by 3.1% for the period. Finally, Novartis (-1.4%) are lower after the Co’s Paragon study just missed the statistical significance levels on its primary endpoints. Pfizer (PFE) is expected to announce that they will combine their off-patent drug business with Mylan (MYL) resulting in a market value of around USD 9.5bln.

Top European News

  • LSE Soars on Bet $27 Billion Refinitiv Bid Will Boost Bourse
  • U.K. Starts No-Deal Brexit Meetings as It’s Now a Real Prospect
  • Sports Direct Falls as Shock Tax Bill Deepens Governance Worries
  • Rightmove Results Mask Worrying Trend as Agents Leave: Berenberg

In FX, another day of mild gains for the broad Dollar and index in a continuation from Friday’s GDP-induced momentum and ahead of an action packed week for the Buck, which will see the currency tackle US-China trade talks in Shanghai, the FOMC’s latest monetary policy decision, US ISM and jobs data. DXY gains more ground above 98.00 having eclipsed last week’s high (98.09) ahead of the YTD high at 98.37, meanwhile today’s docket sees a lack of Tier 1 data and no notable scheduled speakers (with the Fed on blackout until Wednesday evening)

  • GBP, EUR, JPY – The Pound has succumbed to further Brexit angst and has given up the psychological 1.2350 mark to the downside, with the move lower coinciding with usual punchy language from UK’s newly appointed Foreign Minister Raab, who reiterated hard lines on Brexit negotiations. As the prospect of a no-deal exit intensified, some desks are observing the declining GBP/USD 3-month risk reversals, which indicate that options skewing leans more towards Sterling weakness in the near-term. Cable has fallen to fresh 2yr lows and currently hovers just under 1.2325 with little by way of immediate tech levels to the downside. Elsewhere, the rising EUR/GBP cross has somewhat cushioned the single currency from Dollar headwinds, with EUR/GBP gaining further tractions above the 0.9000 level. Meanwhile, EUR/USD sees a cluster of options around 1.1100-10 (800mln) and 1.1135-50 (800mln) ahead of today’s NY cut. USD/JPY action is largely dictated by the Dollar ahead of this week’s key risk events and with the BoJ set to publish its latest monetary policy decision overnight. USD/JPY trades closer to the top of a 108.42-70 intraday range with 1bln in options expiring at strikes 108.95-109.05.
  • AUD, NZD – The antipodeans are somewhat resilient to an extent against the firmer Dollar and remain in tight intraday parameters following last week’s losses. Participants are keeping a close eye on US-Sino trade developments as delegates convene in Shanghai in an attempt to restart talks where it was left off, although officials from US have downplayed expectations of a breakthrough. AUD/USD currently trades a whisker away from 0.6900, with the next support level to the downside highlighted at 0.6890 ahead of the psychological 0.6850 while NZD/USD keeps its head above 0.6600.
  • TRY – Further gains for the Lira in the aftermath of the CBRT’s deeper-than-forecast rate cut as the prospect of a normalising economy seemingly materialises. Analysts at SocGen also speculate that yield-seekers may be bypassing G10 currencies and instead chasing EM yields. USD/TRY trades around 5.6370 and nearest to the bottom of a 5.6240-6710 parameter

In commodities, WTI and Brent are also posting a relatively subdued start to the week, with prices little changed though they have regained the USD 56.00/bbl and USD 63.00/bbl levels to the upside respectively after a brief dip in the complex took them below these levels this morning. Some are attributing this dip to comments from Iran referring to emergency talks on a nuclear agreement as ‘constructive’ which may indicate a easing of tensions in the region which; though the dip was short-lived as there is no sign of respite for UK-Iranian tensions as a second UK warship arrives in the Gulf after Iran seized a UK tanker last week. On the complex, PVM notes that due to the lack of a convincing bullish move on Friday, WTI still has a viable objective to the downside as such a move below near-term support levels in todays session would be sufficient to move the complex lower. In terms of metals, Gold (U/C) is unchanged but towards the bottom of the days range on a lack of catalysts thus far ahead of this weeks aforementioned risk events, similarly copper prices are little changed on the lacklustre risk sentiment.

US Event Calendar

  • 10:30am: Dallas Fed Manf. Activity, est. -5, prior -12.1

DB’s Jim Reid concludes the overnight wrap

Welcome to the last few days of July, and a very important FOMC at month-end on Wednesday. If you’ve spent the weekend castigating your children for playing endless rounds of video games bear in mind that a packed Flushing Meadows in New York witnessed the Fortnite World Cup this weekend with the 16 year old winner taking home $3M. Indeed a British 15 year old boy took home $1.125m for finishing second in the pairs competition. To put things in perspective the Tour De France winner yesterday earned €450k in prize money after three weeks and a lifetime of pain and self denial. It really makes me wish I’d have progressed from being satisfied at getting an unbeatable world record in the Javelin on Daley Thompson’s Decathlon 30 years ago on the ZX Spectrum. With a bit more concentration on that and less on school work I could have been someone!

The FED will take care of the main market joystick this week and it’s hard to look past Wednesday’s FOMC conclusion when looking for the highlight of the week – if not the entire summer. Before we preview what will almost certainly be the first cut since 2008, the other main events are as follows. Staying with central banks the BoJ (Tuesday) and BoE (Thursday) sandwich the Fed this week with the no direct policy changes expected but with pressure on both to turn more dovish. The other blockbuster moment is the US jobs report (Friday) after a strong report last month dispelled some fears from previous months. Q2 Euro Area GDP (Wednesday) and the global manufacturing PMIs/ US ISM (Thursday) are the rest of the main data highlights. As all this occurs, we’ll see the resumption of US-China trade talks as the US delegation flies into China today, along with further earnings releases as 168 S&P 500 companies report.

Returning to the Fed, although a 25bps rate cut has been pretty much fully priced in, there is still a chance (or maybe a hope from many in the market) that it will be 50bps even if the Fed have done little to encourage such an assumption. Even to the point that when NY Fed President Williams perhaps did 11 days ago in a speech, the NY Fed took the unusual step of putting out a statement a few hours later downplaying any signalling.

DB’s US economists are expecting a 25bp cut, before further cuts in September and December. Powell’s press conference will be key to how much the committee signals further cuts though. The domestic data has held up ok recently so it will be a hard balance to out dove a market baying for stimulus. Maybe the ECB meeting last week serves as a warning on this front. I suspect we won’t know too much about what they’ll do next as they’ll keep maximum optionality and data dependency. It’s worth reminding readers that as we embark on a 19th Fed easing cycle since the 1950s, 9 have not been able to prevent the US economy moving into an imminent recession (see full report from our asset allocation team last week here ).

Turning to politics, this week will see the resumption of trade talks between the US and China, with the US team, including Trade Representative Lighthizer and Treasury Secretary Mnuchin, travelling to Shanghai today to meet their Chinese counterparts, with discussions starting tomorrow. Sticking with politics, this week will see the second round of the Democratic primary debates for the 2020 Presidential election, with the two debates taking place on Tuesday and Wednesday night. Meanwhile in the UK, there’ll be a parliamentary by-election on Thursday in the Welsh constituency of Brecon and Radnorshire which could easily reduce Boris Johnson’s majority to two (even including the DUP). The full day by day week ahead is at the end as usual for a Monday.

Asian markets have started the week on the back foot with the Hang Seng (-1.20%) and Kospi (-1.46%) leading declines. For the former the continued local protests, which started over the proposed extradition bill to China, are weighing while for the latter, weak earnings seem to be the issue. The Nikkei (-0.39%) and Shanghai Comp (-0.14%) are also seeing relatively modest declines. Elsewhere, futures on the S&P 500 are down -0.10% and the Chinese onshore yuan is trading -0.18% this morning at 6.8928. In terms of overnight data releases, Japan’s June retail sales came in at +0.5% yoy (vs. +0.2% yoy expected) with the previous month revised up by one-tenth to +1.2% yoy.

Staying with Asia, Bloomberg has reported overnight that three Chinese state-owned financial heavyweights, including Industrial & Commercial Bank of China Ltd., agreed to buy at least 17% of Hong Kong-listed Bank of Jinzhou Co. on Sunday. Bank of Jinzhou’s fate, which has been facing liquidity issues, has been a focus since China unexpectedly seized control of Baoshang Bank, earlier in May. Elsewhere, Bloomberg reported over the weekend that several Chinese companies have been approved to buy certain US farm goods tariff free.

Meanwhile here in the UK, PM Boris Johnson’s high-level Brexit cabinet will hold its first meeting today and will gather every day to ensure the country leaves the EU on October 31. Today’s meeting will be led by Michael Gove and he wrote in the Sunday Times that unless the EU agrees to re-open negotiations, “No deal is now a very real prospect, and we must make sure we are ready.” Sterling is trading -0.15% this morning at 1.2366. In other news, Turkey’s President Erdogan said after last week’s interest rate cut by the country’s central bank that, “This was what needed to be done,” while adding, “Even this cut is not enough. Cuts may continue gradually until year-end.”

Last week’s price action was dominated by the trend of US economic outperformance relative to the rest of the world. That trend was emphasized by the strong US GDP report on Friday, which showed a 4.3% expansion in consumption spending, though investment did subtract around 0.1pp from the headline GDP growth print of 2.9%. Net exports and inventories also dragged. That contrasts with Europe, where manufacturing PMIs were worse than expected and President Draghi failed deliver a comprehensively dovish message at the ECB’s press conference after what initially seemed a very dovish statement. There’s little doubt that major ECB easing is coming but it seems there remain a few hurdles in getting council agreement.

This divergence was evident in markets as well, with the euro weakening -0.85% versus the dollar (-0.19% on Friday) and bund yields falling -5.2bps (-1.3bps Friday) compared to a +1.5bps increase in treasury yields (-1.1bps Friday). US equities outperformed, with the S&P 500 and NASDAQ rallying +1.65% and +2.26% (+0.74% and +1.11% Friday) respectively, to both close at fresh all-time highs. The DOW gained a more modest +0.14% (+0.19%) as a few corporate earnings, especially Boeing (-8.57% on the week), weighed on the price-weighted index. However, overall, earnings reports were generally positive, with Alphabet (+10.05%), Texas Instruments (+9.30%), and UPS (+16.76%) some obvious highlights. In aggregate, S&P 500 earnings are beating consensus expectations by +5.3%, which is better than the historical average of around 3.4%. In Europe, the STOXX index gained +0.90% (+0.31% Friday) on the week, while the MSCI EM index fell -0.37% (+0.21% Friday).

In other markets, credit rallied in both the US and Europe, with indexes of cash HY spreads tighter by -13.5bps and -18.5bps in the US and Europe, respectively (-3bps and -1bps on Friday). As mentioned the fallout from the ECB’s policy meeting where they signalled imminent easing was mixed, and peripheral spreads to bunds widened by +1.4bps in Italy (+6.3bps Friday) and +3.7bps in Spain (+2.9bps Friday) with politics in both countries providing additional noise. On the other hand, inflation expectations rose, with the 5y5y inflation swap rate up +4.4bps (+3.9bps Friday) to its highest level in eleven weeks and around 20bps higher than pre-Sintra levels. Volatility remains subdued, with the VIX back down -2.3pts (-0.6pts Friday) to 12.16, right around its lowest level in a year.

 

3A/ASIAN AFFAIRS

I)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN 3.53 POINTS OR 0.12%  //Hang Sang CLOSED DOWN 291.33 POINTS OR 1.03%   /The Nikkei closed DOWN 41.35 POINTS OR 0.19%//Australia’s all ordinaires CLOSED UP .48%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8934 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8934 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8980 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

3 C  CHINA

Protests continue over the weekend in Hong Kong

two commentaries

(zerohedge)

“There’s No End In Sight”: Hong Kong Protests Spark Comparisons To France’s Yellow Vest Movement

Similarities are starting to be drawn between Hong Kong’s mass rallies and France’s Yellow Vest movement: according to Bloomberg, both are “hard to pin down” and both are evolving. It’s a “recipe for trouble” for each country’s respective government.

The Hong Kong protests that started against legislation that would enable extradition back to the mainland have now grown to include cries for Lam’s resignation and investigations into police abuse during the protests themselves.

One anonymous 28 year protester in Hong Kong said:

We have to continue to protest until our demands are met. There is no end in sight.”

Hong Kong is bracing for more protests on Friday while Chief Executive Carrie Lam tries to decide whether or not to make concessions, like French President Emmanuel Macron did, to take the wind out of the sails of some of the protests.

Hong Kong opposition lawmaker Claudia Mo said about the French protesters:

 “We find them very inspiring. The most direct similarity is the continuation of actions. The most dissimilar is the looting. I just cannot imagine anyone looting shops, cracking cars or burning taxis to make a point—that’s not Hong Kong.”

Even though Lam shelved the bill that spurred the protests in March to begin with, rallies have evolved and expanded to additional grievances. Both Hong Kong and France are not strangers to street protests. Student protests in France in 1968 “defined the era” and the Yellow Vest protests drew comparisons with their intensity.

The movement was organized by social media groups and mobilized hundreds of thousands of people each Saturday to protest fuel prices, before evolving into protests on the French state. Fringe elements of the group engaged in burning cars, looting and torching shops. The Arc de Triomphe was even vandalized during riot battles with police.

In Hong Kong last week, protesters targeted the liaison office of China’s central government in the center of the city and, as we reported, Triad members attacked pro-democracy protesters in a train station.

Kenneth Yeung, a doctoral student from Hong Kong with a focus on social movements at the Université Paris Diderot said: “It’s about the pent-up anger that’s accumulated in the five years since Occupy. Today, even those who have never participated in any movements are thinking they must do their part.”

The lack of unified leadership between both protests is an element that could be prolonging them. Leaderless movements “adapt and evolve” using encrypted messaging apps.

“The lack of a leader is the reason the movement is still continuing,” Yeung said.

France’s protests differ from Hong Kong’s in terms of motivation. France’s protests started as “an anti-globalization movement that saw in Macron a symbol of an out-of-touch elite that had let them down.” Hong Kong’s protests center around China, the territory’s China-picked leader, Lam.

Macron eventually gave in, addressed the nation, and initiated a platform where citizens could vent their frustrations. On December 10 he announced $11.1 billion in tax cuts and increased pension and welfare spending, in addition to organizing a national debate inclusive of 10,500 town hall meetings. His response helped quell the movement.

Lam doesn’t have such flexibility, as she must appease both her citizens – and Beijing. 

James Shields, professor of French politics at the University of Warwick said: “Most of those people now stay home. But their yellow vests are still in their cars, ready to be worn again if Macron presses on with a reform agenda that hits ordinary French citizens in their pockets.”

end

Hong Kong Protests Turn Chaotic As Police Storm Subway Station, Fire Tear Gas Into Crowds

Police in Hong Kong fired tear gas and pepper spray into a crowd of demonstrators who were conducting an illegal protest of attacks last weekend carried out by suspected triad members, which left 45 people injured at the Yuen Long MTR station.

Bloomberg TicToc

@tictoc

Riot police approach protesters at the MTR station where last week’s violence took place

Embedded video

Bloomberg TicToc

@tictoc

Protesters at the MTR station are being dispersed by riot police using tear gas

Embedded video

Bloomberg TicToc

@tictoc

WATCH: Here’s how protesters in Hong Kong put up water barricades during the march

Embedded video

Bloomberg TicToc

@tictoc

🇭🇰 Here’s the moment Hong Kong police fire tear gas at the protesters as the march continues

Embedded video

IsthisLoss@iceketchum

YuenLong 16:14pm

Embedded video

AFP news agency

@AFP

VIDEO: 🇭🇰 Hong Kong police fire tear gas at protesters holding a banned rally in the town of against suspected triad gangs who beat up pro-democracy demonstrators near the Chinese border last weekend, tipping the finance hub further into chaos.

Embedded video

AFP news agency

@AFP

🇭🇰 Hong Kong police fire tear gas at protesters holding a banned rally in the town of against suspected triad gangs who beat up pro-democracy demonstrators near the Chinese border last weekend, tipping the finance hub further into chaos. http://u.afp.com/J7gM

View image on TwitterView image on TwitterView image on Twitter

Protesters wearing all black streamed through Yuen Long, even though police refused to grant permission for the march, citing risks of confrontations between demonstrators and local residents.

For the protesters, it was a show of defiance against both the police and the white-clad assailants who beat dozens of people July 21, including some demonstrators heading home after the latest mass protest in the Chinese territory’s summer-long pro-democracy movement. –ABC News

Jack Hazlewood@JackHHazlewood

Probably the most ominous video to emerge so far: here sprinting riot police can be seen being cheered on by masked men clad in white – irrevocably associated with the mass Triad violence against innocents seen in Yuen Long last Sat. This could get really nasty.

Embedded video

This marks the eight consecutive weekend of demonstrations in Hong Kong, which began as peaceful protests over a now-suspended extradition bill with mainland China, according to CNN.

Earlier Saturday, Hong Kong police stormed the Yuen Long subway station, knocking protesters to the ground and injuring others in an attempt to try and disperse the crowd. When that failed, crowd control measures were deployed.

end
Beijing warns that if they see more unrest in Hong Kong, that will not be tolerated.
trouble ahead of this one..
(zerohedge)

Beijing Warns More Unrest In Hong Kong “Won’t Be Tolerated”

In what appears to be a first since Hong Kong was handed back to China by the UK in 1997, the Hong Kong and Macau Affairs Office, a mainland authority that oversees the two Chinese territories, held a press conference on Monday where they reiterated that the violent protests that continued through Sunday wouldn’t be tolerated by Beijing’s government, BBG reports.

The HKMAO, which answers directly to China’s cabinet, reaffirmed its support for the city’s government and police during what was a rare press briefing on Monday. After the briefing, the heads of the authority brusquely left the room, ignoring questions shouted by journalists.

Office spokesman Yang Guang said Beijing remained committed to “one country, two systems,” the separation of powers that has led to joint governance of Hong Kong since 1997. Yang added that the violence and unrest that have rocked Hong Kong over the past eight weeks “has gone far beyond the scope of peaceful march and demonstration, undermined Hong Kong’s prosperity and stability, and touched on the bottom line of the principle of ‘one country, two systems’,” Yang said.

“No civilized society under the rule of law would ever allow acts of violence to take place.”

According to the SCMP, Yang said the CPC has three ‘hopes’ for Hong Kong: That segments of the population start opposing violence, that various sectors firmly protect the rule of law, and that society can “get out of political conflict as soon as possible.”

What started as a protest movement to kill the hated Hong Kong extradition bill, which would have given the city-state’s government the power to extradite anybody to the mainland to face punishment for alleged crimes. Opponents saw the bill, which was being fast-tracked by the authority, would have allowed Beijing to arrest dissidents traveling through Hong Kong. Earlier this month, City Executive Carrie Lam tabled the withdrawal bill, but refused to take the additional step that would have taken it off the legislative agenda. With the possibility that Lam could back track as soon as protests calmed down, more Hong Kongers took to the streets to demand that Lam, who was selected by Beijing to lead Hong Kong’s government, resign, and that she take the additional steps to kill the legislation for the current cycle.

But the HKMAO reiterated that the protests have devolved into “evil and criminal acts” committed by “radical elements.”

“We call on the general public of Hong Kong to be aware of the grave nature of the current situation and to jointly condemn the evil and criminal acts committed by the radical elements and prevent them from causing trouble to Hong Kong,” Yang said.

Meanwhile, the HKMAO representatives acknowledged that Hong Kong must do a better job to “solve the grievances” of the young, and “push for economic development and solve grievances of youngsters on quality of life and career prospects.”

Hong Kong markets responded well to the press conference, with stocks paring declines after the briefing.MSCI was off 1.7% in recent trade, after falling as much as 2.2% earlier.

“This morning there was concern among investors that the central government could express a tougher stance,” said Steven Leung, executive director at Uob Kay Hian. But now that the HKMAO has struck a more moderate tone that could be described as “tough but firm,” some of those worries have dissipated.

Still, the threat that Beijing could mobilize the garrison of People’s Liberation Army troops stationed in Hong Kong continued to hang over markets.

end
This is a huge problem:  China’s second largest auditor has been accused of fabricating data and as such has halted at least 29 IPO’S
(ZERO HEDGE)

China’s Second Largest Auditor Accused Of Fabricating Data, Has IPOs Halted

For some unexplained reason, investors naively believe that in a country where, by now everyone knows that all the official government data is fake and manipulated and goalseeked to serve specific political goals, the corporate data is somehow more accurate or credible.

Hopefully that will now change, because as Shanghai’s Yicai Global reports, China’s securities regulator has suspended 43 IPOs and refinancings handled by the country’s second-largest accounting firm, including IPOs on the country’s new Star Market “Nasdaq-style” trading venue, as the company is probed for allegedly falsifying information.

Ruihua Certified Public Accountantswhich audits almost a third of all listed companies in China, has been implicated in a scandal involving the infamous chemical maker Kangde Xin Composite Material, which we profiled back in January when we noted that the bankrupt company was reporting cash 15 times greater than due debt, up until the moment it defaulted.

Specifically, the accounting firm is accused of inflating profits by CNY11.9 billion (USD1.7 billion) from January 2015 to last December. As the CPA responsible for the company’s auditing all those years, Ruihua is also under scrutiny, the China Securities Regulatory Commission said in a statement on its website on July 26.

 

The Zhangjiagang, Jiangsu province-based firm is also suspected of bumping up its operating income through fictitious sales, exaggerated operating costs and fictional expenses on research, development and sales according to Yicai. If found guilty, the company and its controllers will be issued with the maximum penalty and will be banned for life from the stock market, the CSRC added.

In response, the Beijing-based accountancy denied any wrongdoing – of course – and said that is has fully performed its auditing duties regarding the chemical makers’ earnings report, it said in a statement yesterday.

Nevertheless, at least 29 IPO projects it was handling have been suspended, the CSRC said, and 10 of these were for main board IPOs, seven were for the small and medium-sized enterprise board, and 12 were for Shenzhen’s ChiNext board. One of Ruihua’s clients has actively withdrawn its IPO application. Furthermore, of the 511 companies awaiting regulatory review of their IPO applications, some 30 are audited by Ruihua and all of those have been turned down, according to financial information service provider Wind.

The accounting scandal has also spread to Shanghai’s new science and technology innovation board, the Star Market, which debuted a week ago today, and we profiled it here. It is probably not a shock that one day after the initial euphoria fizzled, the STAR market’s return have been disappointing as the buying enthusiasm from the first day disappeared, as did the easy gains.

Four of Ruihua’s clients, Beijing LongRuan Technologies, Beijing Transuniverse Space Technologies, Luoyang Jianlong Micro-Nano Materials and Shenzhen JPT Opto-Electronics have all been stopped from going public.

It’s not just IPOs that are being scrutinized – Ruihua’s refis have not been spared either. Seven listed companies’ refinancing plans have been halted as the CPA comes under investigation, the firms said on July 26. Two other public companies audited by Ruihua had to stop their refinancing for the same reason, they said in statements yesterday.

Another client of Ruihua is under investigation, this time by the Shanghai Stock Exchange. Despite CNY1.8 billion on its balance sheet, Furen Group Pharmaceutical was unable to issue cash dividends of CNY60 million. The bourse’s enquiry discovered over CNY1.7 billion missing, and that the Shanghai-based drugmaker only has CNY3.8 million in liquidity.

Last year, Guangdong Zhengzhong Zhujiang CPA’s IPO projects were also halted pending investigation.

The report of potential pervasive accounting fraud follows our report from Sunday that a major Chinese bank with over $100 billion in assets – Bank of Jinzhou – was bailed out over the weekend.

“For Baoshang Bank, the government took a state takeover, while for Bank of Jinzhou, the government introduced some state-owned strategic investors,” said Dai Zhifeng, analyst with Zhongtai Securities Co; in reality both were government rescues, only in the latest case Beijing used state-owned bank intermediaries.

We expect that the efficient market purists will soundly mock China for its wholesale data fabrication and fraud, but considering that US non-GAAP profits are at all time highs, while the US Government’s Bureau of Economic Analysis on Friday revised US corporate operating profits to a 5 year low, one wonder who is worse in fabricating and manipulating data – China or the US, and keep in mind that in the US accountants collectively participate in the non-GAAP fraud and regulators bless it by allowing such data manipulation to continue quarter after quarter.  At least China is pretending to do something about the problem.

Alas, at the end of the day the reality is clear: the “adjusted profit” data in both the US and China is not worth the paper it is printed on.

end

4/EUROPEAN AFFAIRS

UK

Bojo throws down the gauntlet as he starts that there will be no Irish backstop..not even a temporary one.  The next move he states it the EU. In my opinion, the EU need the UK far greater than the UK needs them

(Mish Shedlock/Mishtalk)

Boris Johnson Throws Down The Gauntlet: No Backstop, Not Even Temporary

Authored by Mike Shedlock via MishTalk,

Boris Johnson laid down the ground rules for discussion with the EU. The EU says it won’t accept them.

On Thursday Boris Johnson threw down the gauntlet with a call for the total abolition of the backstop. He also said the Government was “turbocharging” preparations for a no-deal break on 
Oct 31 if the EU refused to engage.

The Telegraph asks Will the EU blink first as pressure builds towards ‘no deal’?

At a stroke, Mr Johnson appeared to sweep away the camp, nominally led by the Attorney-General Geoffrey Cox, that still believed that with a tweak – perhaps a time-limit or a unilateral exit-mechanism – the backstop could be rendered acceptable.

Not only did he announce the Irish backstop must be abolished, but he went further, turning the tables to set conditions for any future talks with the European Union.

EU diplomats and officials in Brussels have been clear that this will not happen, even if that puts the UK and EU on a collision course towards ‘no deal’ over the apparently intractable problem of the Irish border.

It is a wearingly familiar argument. Mr Johnson contends that the entire UK should be able to leave the EU customs union and single market while preserving a status quo border in Ireland.

The question now, is who will blink first as pressure builds towards an impending ‘no deal’ in the autumn?

Diplomats and officials were clear on Thursday that Mr Johnson’s statement, taken together with his decision to purge the Cabinet of all forces of compromise, could only be explained by a desire to create the conditions for an election.

The only question in European minds is whether that election comes as a result of Parliament blocking ‘no deal’ – and Mr Johnson being forced to request an extension to Article 50 – or after a ‘no deal’ has already happened.

Perhaps No One Blinks

Without a doubt, Johnson laid the groundwork for an early election.

But the notion Johnson will seek and extension other than for a week or so tie up loose ends in preparation of no deal seems silly. Also silly is the notion parliament will block no deal.

Parliament has no such power other than to force an election. And it’s now likely too late to force an election in time to kill Brexit.

Besides, with Labour splintered, it’s likely Johnson will achieve a strong working majority in the next election.

Meanwhile, as long as both sides believe the other side will blink, neither will.

It may take a crippling recession in the EU before it comes to its senses.

Germany, EU exporters in general, will get crushed in the event of no deal.

 

END

The pound crashes on the thought of a ‘no deal” Brexit

(zerohedge)

Cable Crashes To 29-Month Lows As ‘No-Deal’ Brexit Looms

Sterling has plunged back below 1.23 for the first time since March 2017 after new U.K. Prime Minister Boris Johnson’s first high-level Brexit cabinet meeting today.

Unless the EU agrees to re-open negotiations, Johnson’s top aide Michael Gove warns that a ‘no deal’ exit is the most likely outcome.

“We still hope they will change their minds, but must operate on the assumption that they will not,” Gove wrote in the Sunday Times.

“No deal is now a very real prospect, and we must make sure we are ready.”

And nothing this morning has improved the prospects, prompting traders to sell hard.

This is the weakest level for Sterling since March 2017…

And as cable crashes to FTSE stocks soar…

Most worrying for many is the fact that, as Bloomberg reports, Dominic Cummings, a key leader in the 2016 Brexit campaign, called advisers to the prime minister’s residence Friday night and told them Brexit will happen “by any means necessary,” the Times said. Cummings said Johnson is prepared to suspend Parliament or hold an election to thwart those who may seek to block a no-deal Brexit.

FRANCE/USA

Trump angry at a digital tax in France against American firms such as Google and Facebook.  Trump is angry and now threatens with a tax on French wines

(zerohedge)

Trump Hints No Trade Deal Until After The Election, Threatens Tariffs On French Wine

Speaking to reporters on Friday afternoon at the White House, President Trump said he “might” impose tariffs on wine from  France as a “substantial reciprocal action” after France imposed a new digital tax that affects U.S. technology companies.

“It might be on wine, it might be on something else,” Trump, clearly in his element, told the press corps.

Steve Herman

@W7VOA

“I might” slap tariffs on French wines, says @POTUS. “American wines are great.”

View image on Twitter

On Thursday, French President Emmanuel Macron signed into law a 3% tax on the revenue of technology giants like Facebook and Amazon; the tax, which is retroactive to January, affects companies with at least 750 million euros in global revenue and digital sales of 25 million euros in France. About 30 businesses would be affected; while most are American, the list also includes Chinese, German, British and even French firms.

“We tax our companies, they don’t tax our companies,” Trump said; France’s tax, and Trump’s response, threaten to further strain trans-Atlantic ties as the U.S. and European Union prepare to negotiate a limited trade agreement on industrial goods.

Donald J. Trump

@realDonaldTrump

France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!

Last month Trump promised to do “something” about French wine that he said is allowed into the U.S. virtually tariff-free while France imposes duties on U.S. wine, calling the arrangement unfair. In reality, Bloomberg reports that the US charges a tariff of 5 cents per 750 milliliter bottle of imported still wine and 14 cents for sparkling wine, according to the Wine Institute, an advocacy group for California winemakers. European Union tariffs for imported wine range from 11 cents to 29 cents per bottle, according to the group.

For now, France hasn’t indicated it will back off from its planned digital tax even after the U.S. suggested it may use trade tools against the levy.

Also on Friday, the U.S. said it will examine whether the tax would hurt its tech firms, using the so-called 301 investigation, the same tool Trump deployed to impose tariffs on Chinese goods because of the country’s alleged theft of intellectual property. Trump’s tweet was followed by a White House statement saying the U.S. is “extremely disappointed” by the tax. In addition to the 301 probe, the Trump administration is “looking closely at all other policy tools,” said spokesman Judd Deere.

“The Trump administration has consistently stated that it will not sit idly by and tolerate discrimination against U.S.-based firms,” Deere said.

France – which argues that the structure of the global economy has shifted to one based on data, rendering 20th-century tax systems archaic – became the first country in the EU to impose such a tax with other nations, including the U.K. and Germany, contemplating similar taxes. France had pushed for a EU-wide digital levy that was scrapped when four countries – Sweden, Finland, Denmark and Ireland – declined to sign off on it.

Separately, Trump also touched on the ongoing US-China trade conflict, strongly hinting that a trade deal may not be reached until November 2020, if then.

Trump said that China may wait until after the 2020 U.S. presidential election to sign a trade agreement because Beijing would prefer to reach a deal with a Democrat.

“I think that China will probably say, ‘let’s wait,’” Trump told reporters in the Oval Office on Friday. “When I win, like almost immediately, they’re all going to sign deals.” Which, of course is wonderful news for stocks which will rally for almost a year and a half on hopes of an “imminent” trade deal, much as they have rallied for the past year.

U.S. Trade Rep Robert Lighthizer and Steven Mnuchin are set to travel to China (Shanghai, not Beijing) Monday for the first high-level, face-to-face trade negotiations between the world’s two biggest economies since talks broke down in May. It will be the first encounter between officials from the two nations since Trump and Xi Jinping met at the G-20 summit in Japan last month and declared a tentative truce in their year-long trade war.

Finally, since Trump has a tendency to cover absolutely every topic, he also covered the ongoing debate whether the US will intervene do weakne the dollar, saying “I didn’t say I’m not going to do something’ on the Dollar”, and commenting that the Chinese currency is very low which makes it tougher to compete, Trump said that it’s a “beautiful thing to have a strong dollar.”

Oh, and for good measure, Trump slammed democrats, calling them “clowns.”

CBS News

@CBSNews

Pres. Trump: “The Democrats are clowns” https://cbsn.ws/2iuAAgA

Embedded video

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/CHINA

Tehran urges China to buy more of Iranian oil instead of gorging on Saudi oil

(zerohedge)

Tehran Urges China To Buy More Iranian Oil As It Feasts On Saudi Crude

Following China’s crude imports from Iran plunging this summer, sinking almost 60% in June compared to a year earlier – which corresponded to Washington shutting down the waiver program in May – leaders in Tehran are urging China to buy more Iranian oil.

China’s crude shipments from Iran totaled 855,638 tons last month, which averages to 208,205 barrels per day (bpd), compared with 254,016 bpd in May, according figures from the General Administration of Customs, cited in a recent Reuters report.

Iran’s Vice President Jahangiri made the appeal to Beijing and “friendly” countries to up their Iranian crude purchases in statements Monday. “Even though we are aware that friendly countries such as China are facing some restrictions, we expect them to be more active in buying Iranian oil,” Jahangiri reportedly told visiting senior Chinese diplomat Song Tao.

 

Image via Asia News

He said this while also on Monday issuing a statement saying Iran stood ready to  “confront” American aggression in the region and that multilateralism must be upheld.

“The foreign policy of the Islamic Republic of Iran is to protect multilateralism and confront American hegemony,” Jahangiri said, according to the IRIB news agency.

He added that Iran’s recent move to breach uranium enrichment caps could be reversed should other parties return to upholding their side of the nuclear agreement.

Simultaneously, China’s oil purchases from Iran’s rival Saudi Arabia have soared to record volume, totaling 1.89 million barrels a day last month, according to numbers cited in Bloomberg.

“Shipments from the OPEC producer made up almost a fifth of its total oil purchases in June and was 64% higher than the previous month,” while at the same time “Imports from Iran fell to the lowest since May 2010,” according to Bloomberg.

Meanwhile, in a crucial development related to Iran’s trying to weather the severe US-led sanctions storm, a long anticipated plan for gasoline export has begun with an inaugural shipment to neighboring Afghanistan.

State media reported the following on Monday:

The Fars news agency said on Monday that a first consignment of export gasoline will start trading in Iran’s Energy Exchange (IRENEX) later this week.

It said some 10,000 tons of gasoline with octane number of 91 will be available for sale to Afghanistan through IRENEX on Wednesday, adding that the trade will take place both in the Iranian rial and in major international currencies.

Iran’s refining capacity has grown significantly over the past years as the country slashed fuel imports while also coping with increased domestic demand.

Officials have expressed hope that Iraq along with Afghanistan, as well as Caspian Sea countries would become main destinations for gasoline export.

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 MONDAY morning 7:00 AM….

Euro/USA 1.1114 DOWN .0009 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 108.68 UP 0.020 (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 1.2289   DOWN   0.0081  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3171 UP .00150 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  MONDAY morning in Europe, the Euro FELL BY 9 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1114 Last night Shanghai COMPOSITE CLOSED DOWN 3.53 POINTS OR 0.12% 

 

//Hang Sang CLOSED DOWN 291.33 POINTS OR 1.03%

/AUSTRALIA CLOSED UP 0,48%// EUROPEAN BOURSES GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL  GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 291.33 POINTS OR 1.03%

 

 

/SHANGHAI CLOSED DOWN 3.53 POINTS OR 0.12%

 

Australia BOURSE CLOSED UP. 48% 

 

 

Nikkei (Japan) CLOSED DOWN 41.35  POINTS OR 0.19%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1420.10

silver:$16.38-

Early MONDAY morning USA 10 year bond yield: 2.05% !!! DWN 2 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.57 DOWN 3  IN BASIS POINTS from FRIDAY night.

USA dollar index early TUESDAY morning: 98.11 UP 10 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.42% DOWN 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.14%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.36%//DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,57 UP 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 121 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.39% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.96% 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 MONDAY

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

Euro/USA 1.1142  UP     .0018 or 18 basis points

USA/Japan: 108.80 UP .177 OR YEN DOWN 18  basis points/

Great Britain/USA 1.2225 UP .0145 POUND DOWN 145  BASIS POINTS)

Canadian dollar UP 2 basis points to 1.3154

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.8934    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8929  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.6133 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield UP 1 IN basis points from FRIDAY at 2.05 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.57 UP 2 in basis points on the day

Your closing USA dollar index, 99.05 UP 4  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 MONDAY: 1:00 PM

London: CLOSED UP 62.09  1.51%

German Dax :  CLOSED UP 2.43 POINTS OR .02%

 

Paris Cac CLOSED DOWN 8.95 POINTS 0.16%

Spain IBEX CLOSED DOWN 10.10 POINTS or 0.11%

Italian MIB: CLOSED UP 128.44 POINTS OR 0.54%

 

 

 

 

 

WTI Oil price; 56.69 12:00  PM  EST

Brent Oil: 63.60 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    63.48  THE CROSS HIGHER BY 0.12 RUBLES/DOLLAR (RUBLE LOWER BY 12 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.39 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  57.09//

 

 

BRENT :  63.81

USA 10 YR BOND YIELD: … 2.06…

 

 

 

USA 30 YR BOND YIELD: 2.59..

 

 

 

 

 

EURO/USA 1.1146 ( UP 22   BASIS POINTS)

USA/JAPANESE YEN:108.76 UP .142 (YEN DOWN 14 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.05 UP 4 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2223 DOWN 148  POINTS

 

the Turkish lira close: 5.6153

 

 

the Russian rouble 63.44   UP 0.08 Roubles against the uSA dollar.( UP 8 BASIS POINTS)

Canadian dollar:  1.3160 DOWN 3 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8934  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8716 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.38%

 

The Dow closed UP 28.90 POINTS OR 0.11%

 

NASDAQ closed DOWN 36.88 POINTS OR 0.44%

 


VOLATILITY INDEX:  12.83 CLOSED UP .67

LIBOR 3 MONTH DURATION: 2.264%//libor dropping like a stone

 

USA trading today in Graph Form

Bonds & Bullion Bid But Stocks Slide As Firms Slash Earnings Outlooks

A quiet day for sure but the trends remain – dollar and gold higher together, bond yields fading, and stocks clinging near record highs…

.

Powell better not let the world down!!

Powell better not let the world down!!

Chinese stocks trod water overnight…

 

UK’s FTSE exploded higher as the pound plunged, Italy underperformed in Europe but the rest of the majors were flat..

 

FANG Stocks erased Friday’s gains…

 

 

It’s Beyond Meat’s earnings tonight – make or break time for shorts who are paying 144% borrow…

 

 

The S&P continues to dramatically outperform the broadest US equity index – not exactly what one would hope for in a broad-based re-acceleration in growth…

 

 

Treasuries were bid after Europe closed and ended lower in yields on the day (but traded in a very narrow range)…

 

 

30Y Yields erased the losses from Draghi’s disappointment…

 

 

The dollar rallied once again – nearing its highest since May 2017…

 

 

 

Cable was clubbed like a baby seal today as no-deal expectations ramp up…

 

 

Cryptos had a flash-crashy like move overnight but recovered from that – although they remain lower from Friday…

 

With Bitcoin holding back below $10,000…

 

 

Despite dollar gains, commodities managed gains with Crude and Copper leading but PMs rallying towards the US close…

 

 

Gold spiked up to pre-Draghi levels…

 

 

Oil was volatile intraday testing below $56 and up to $57…

 

 

Gold in Yuan jumped up to recent resistance…

 

 

And gold in Sterling is very close to a record high…

 

 

Finally, there’s this… While the S&P 500 is up 20% YTD, earnings expectations for the next 24 months has slumped…

As 60% of companies have cut Q3 EPS expectations in recent weeks…

 

Will traders sell the Fed news?

end

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

With all of this wonderful data coming our why, our is everyone clamoring for a Fed rate cut…the reason, the world has a real problem; lack of liquidity (collateral)

(zerohedge)

Did Steve Liesman Just Expose The ‘Existential’ Reason For A Fed Cut This Week?

Stocks are at record highs.

Unemployment is near record lows.

Inflation is only marginally below mandated levels.

And macro data has been surprising to the upside recently.

So, why the f**k are markets (and Fed speakers) so adamant that a 25bps (or 50) cut is required (or else)?

Is all of the above a lie and The Fed sees liquidity issues? Maybe, but in a somewhat stunning moment of clarity for the business channel, CNBC’s Steve Liesman just ever-so-quietly dropped a hint as to the real reason why The Fed is so keen to cut-cut-cut…

In a brief 45 seconds, Liesman drops the “existential” threat argument for why Powell will do whatever it takes to stay in Trump’s good graces…

“If The Fed gets this wrong, I think that they think if they make a mistake here, The Fed could be gone…”

Liesman expands on his ominous view:

“Think about what happens when a person gets up at a rally and starts railing against The Federal Reserve, and starts to create what could lead to Congressional pressure on The Fed, then you could imagine that their could be support for a different system.”

“I think they think there’s a lot of political downside risk to getting this wrong.”

With Democratic Party presidential candidate Tulsi Gabbard urging a new ‘Audit The Fed’ Bill, we wonder if Ron Paul will live to see the day when The Fed is ended!

One wonders if that is one of the drivers of gold’s recent run?

end

Large derivative player Citibank now plans to fire hundred of traders as revenue tumbles.  (cannot find any more liquidity)

(zerohedge)

Citi To Fire Hundreds Of Traders As Revenue Tumbles

 

It’s not just the melting ice cube known as Deutsche Bank that that is laying off recession-level numbers of traders: according to Bloomberg, Citigroup is also preparing hundreds of job cuts at its slumping trading division as more of the world’s largest firms respond to dormant clients and the rise of the robots with across the board layoffs.

According to the report, Citi – which plans to slash jobs across both its fixed-income and stock trading business over the course of 2019 – will let go at least 100 jobs in its equities unit, or almost 10% of that division.

The mass terminations are not a surprise in light of the chronic decline in Wall Street trading revenues as numerous clients simply refuse to allocate capital to stocks at current levels and pursue the S&P bubble beyond 3,000, certain it’s only a matter of time before the market crashes. As we noted two weeks ago when the big moneycenter banks reported Q2 earnings, the biggest Wall Street banks are facing an identity crisis, pressured by the lowest first-half trading revenue in more than a decade as they contend with reticent clients spooked by a global trade war even as volatility in asset prices hovering around record lows. In other words, despite near perfect trading conditions, bank trading revenues are plunging. One can only imagine what happens if and when trading conditions are even modestly “impaired.”

According to Bloomberg, Citi’s revenue from equity trading tumbled 17% to $1.6 billion for the first half of 2019, driving a 5% drop in total trading. That was lowest equity total among major U.S. firms, according to Bloomberg Intelligence.

 

Meanwhile, Citigroup executives said this month they would continue to cut costs in the second half of the year after trimming more than analysts expected last quarter.

“We’re going to do everything within our power” to meet a goal of a 12% return on tangible equity this year, CEO Mike Corbat said after the bank announced earnings on July 15.

Citi joins Deutsche Bank, which made the biggest move earlier this month, when the firm announced it was exiting all of equities trading as part of restructuring that included 18,000 job cuts. Other major banks in Europe, including HSBC Holdings Plc and Societe Generale SA, have also announced the layoffs of hundreds of workers in an atmosphere that may be the gloomiest since the financial crisis, yet the S&P is withing spitting distance of new all time highs.

Ironically, in an environment of already depressed liquidity, these layoffs will result in even less prop and flow trading, leading to even lower liquidity, even more accentuated and sharp moves when volatility does spike, resulting in even greater trading losses during the next market correction or bear market, assuring even greater layoffs next time round, as the world finally realizes what we have been saying for the past decade: the market is broken, and between the Fed and algos propping it up, there is simply no need for human traders any more, especially now that Passive investing will overtake Active

… in just over three years, assuring that carbon-based traders are now a threatened species.

END

Interesting:  the USA treasury now expects to borrow 814 billion dollars of debt during the next two quarters

(zerohedge)

iii) Important USA Economic Stories

A big victory for Trump as he will now have funds to build his wall

(zerohedge)

Trump Touts “Big Victory” After Supreme Court Allows Military Funding For Border Wall

It’s not been a great week for the great-left-hopers.

Having been summarily embarrassed by Mueller’s performance, Democrats just lost another ‘fight’ as Bloomberg reports that the Supreme Court has cleared President Trump’s administration to start using disputed funds to construct more than 100 miles of fencing along the Mexican border.

The decision allows the president to take his biggest step yet toward erecting his long-promised wall.

How did we get here?

As The Hill details, U.S. District Judge Haywood Gilliam in California, an Obama appointee, issued a permanent injunction blocking officials from utilizing $2.5 billion of the roughly $6 billion in diverted military dollars, siding with the groups’ arguments that building the wall would cause “irreparable harm” to their interests at the border.

And the Ninth Circuit Court of Appeals, in a 2-1 ruling earlier this month, declined to temporarily halt that injunction, finding that “the use of those funds violates the constitutional requirement that the Executive Branch not spend money absent an appropriation from Congress.”

House Democrats also attempted to sue to stop the diversion of the Pentagon dollars for a wall, claiming that only lawmakers can allocate federal funding under the Constitution.

Solicitor General Noel Francisco argued that the needs of the administration outweighed those of groups like the ACLU and Sierra Club who are challenging the use of the Defense Department funds for the wall. And he said that if the funds remain frozen until the end of the fiscal year, authorities may not be able to use them at all.

And now, with the court’s four liberal justices at least partially dissenting, the justices lifted the lower court freeze, confirming the Trump administration can start using military funds to construct a wall on the southern border, handing the president a major legal victory. 

President Trump, as one would expect, is very pleased:

Donald J. Trump

@realDonaldTrump

Wow! Big VICTORY on the Wall. The United States Supreme Court overturns lower court injunction, allows Southern Border Wall to proceed. Big WIN for Border Security and the Rule of Law!

The case before the Supreme Court involved just the $2.5 billion in Defense Department funds, which the administration says will be used to construct more than 100 miles of fencing. One project would replace 46 miles of barrier in New Mexico for $789 million. Another would replace 63 miles in Arizona for $646 million. The other two projects in California and Arizona are smaller.

*  *  *

end

Dan Coates out and John Ratcliffe is proposed as top Intelligence chief.

(zerohedge)

Dan Coats Out As Top Intelligence Chief After Series Of Public Clashes With Trump

The New York Times has reported that Trump’s Director of National Intelligence Dan Coats is expected to step down in the coming days, with Texas Congressman John Ratcliffe  an outspoken supporter of the president  as Trump’s top pick to replace him. Minutes after the NYT story hit, Trump confirmed via Twitter that he has nominated Ratcliffe to the nation’s top intelligence post overseeing America’s seventeen intel agencies.

Donald J. Trump

@realDonaldTrump

I am pleased to announce that highly respected Congressman John Ratcliffe of Texas will be nominated by me to be the Director of National Intelligence. A former U.S. Attorney, John will lead and inspire greatness for the Country he loves. Dan Coats, the current Director, will….

Donald J. Trump

@realDonaldTrump

….be leaving office on August 15th. I would like to thank Dan for his great service to our Country. The Acting Director will be named shortly.

Admin officials close to the matter said Coats spent his time as DNI clashing with Trump over issues ranging from Russian meddling and US-Moscow relations to the president’s well-known attacks on members of the intelligence community.

Coats’ own criticisms and public contradictions of Trump had at times reportedly sent the president to privately rant against the former Indiana senator and diplomat in front of White House staff, especially when during congressional testimony early this year the media gleefully seized upon Coats’ words to point out glaring policy contradictions among Trump’s cabinet.

Coats had told Congress at a sensitive and stalled point in White House-North Korea dialogue that Pyongyangwas unlikely to ever “completely give up its nuclear weapons and production capabilities”  words which had angered Trump.

 

Texas Congressman John Ratcliffe, left, and exiting DNI Dan Coats, right.

Coats has also been deeply critical of Trump’s meetings Russian President Vladimir Putin in the past, which the Times report notes as follows:

Mr. Trump has weighed firing Mr. Coats since he took issue with the president’s assertions, after a 2018 meeting in Finland with President Vladimir V. Putin of Russia, challenging the intelligence community’s conclusions that Moscow interfered in the 2016 presidential race. Mr. Coats also questioned the wisdom of a potential White House meeting between the two leaders.

Some of the president’s political advisers have encouraged him to oust Mr. Coats, but he had been shielded by Vice President Mike Pence, a longtime protégé. Mr. Coats served as a senator from Indiana, and Mr. Pence was the state’s governor.

Also interesting is that during a July 2018 interview with NBC’s Andrea Mitchell, Coats was informed of plans for the White House to invite Putin to Washington, something which never materialized.

“Say that again?” a visibly perplexed Coats had asked NBC’s Andrea Mitchell at the time. “OK. …That is going to be special,” he said sarcastically to the laughter of the crowd. This and other instances reportedly set Trump off and assured Coats’ days as DNI were numbered.

As for Rep. Ratcliffe, now slated to replace Coats, the loyal Trump ally had publicly slammed Mueller and his politically charged investigation during last week’s testimony.

end

Not good: at a Garlic festival in California, an attack on civilians with 16 being shot and 4 dead with one of them the gunman

(zerohedge)

16 Shot, 3 Dead At California Garlic Festival; Shooter Still At Large

“Who shoots up a garlic festival?” exclaimed one terrified attendee at the Gilroy Garlic Festival in Gilroy, California as she fled from an active shooter situation tonight.

niah ㊝@wavyia

Embedded video

NBC Bay Area News is reporting sources say 16 shot and 3 dead.

Gilroy Police

@GilroyPD

The hearts of Gilroy PD and entire community go out to the victims of today’s shooting at the Garlic Festival. The scene is still active. If you are looking for a loved one, please go to the reunification center at Gavilan College at parking lot B.

Santa Clara Valley Medical Center spokeswoman Joy Alexiou told ABC News that the hospital has received two victims from the shooting and expects three more. She had no information on their conditions.

The shooter is reportedly a white man in his 30s using an automatic weapon.

WX-EatonvilleWA@EatonvilleWAWX

WARNING VERY GRAPHIC!- Shooting at The Gilroy Garlic Festival! Praying for everyone involved! 😥🙏🏾

Embedded video

Festival-goer Evenny Reyes of Gilroy, 13, told the San Jose Mercury News she thought the gunshots were fireworks at first, but then she saw a man with a bandana wrapped around his leg because he got shot.

“And there were people on the ground, crying. There was a little kid hurt on the ground. People were throwing tables and cutting fences to get out.”

The Gilroy Garlic Festival started in 1979 and Sunday was the final day of event, according to the festival website.

Live Feed from NBC Bay Area:

President Trump has tweeted that he is aware of the situation:

Donald J. Trump

@realDonaldTrump

Law Enforcement is at the scene of shootings in Gilroy, California. Reports are that shooter has not yet been apprehended. Be careful and safe!

Gavin Newsom

@GavinNewsom

This is nothing short of horrific. Tonight, CA stands with the Gilroy community. My office is monitoring the situation closely. Grateful for the law enforcement’s efforts and their continued work as this situation develops. https://twitter.com/gilroypd/status/1155671693450330112 

Gilroy Police

@GilroyPD

Witness line and family reunification line: 408-846-0583.
If you saw something today please call that number immediately.
Please keep the main GPD line for emergencies only.
Media please do not call that line. A media line will be posted soon.

Developing…

 

END

Lots of fun over the weekend as Trump slams the Fed and then Baltimore and its representative Elijah Cummings for their rat infested city.

(zerohedge)

Trump Slams Fed, “King Elijah” & “Conman” Al Sharpton In Furious Twitter Rant

With one day left until the FOMC begins its two-day monetary policy meeting – said to be the most important policy meeting since the days that immediately followed the financial crisis – President Trump once again slammed the Fed in a tweet, echoing a criticism that he has repeatedly used over the past few weeks.

BW

Which is: That the Fed has failed to cut interest rates to get out ahead of central banks in Europe and China, despite the fact that stubbornly low inflation has left the Fed with every excuse to cut. The PBOC and the ECB will benefit from “pumping money into their systems, making it much easier for their manufacturers to sell product.”

Donald J. Trump

@realDonaldTrump

The E.U. and China will further lower interest rates and pump money into their systems, making it much easier for their manufacturers to sell product. In the meantime, and with very low inflation, our Fed does nothing – and probably will do very little by comparison. Too bad!

Trump’s Fed-bashing apparently has one goal: To convince the central bank to authorize a 100 basis point rate cut, which would bring the Fed funds rate back between 1% and 1.5%.

Trump was very active on Twitter Monday morning, slamming Rev. Al Sharpton and Congressman Elijah Cummings after stirring up a controversy over the weekend with a tweet accusing Cummings’ 7th district of being a “disgusting rodent-infested mess.”

The president insisted that, under the “leadership” of Elijah Cummings, Baltimore has registered “the worst crime statistics in the Nation.”

Donald J. Trump

@realDonaldTrump

Baltimore, under the leadership of Elijah Cummings, has the worst Crime Statistics in the Nation. 25 years of all talk, no action! So tired of listening to the same old Bull…Next, Reverend Al will show up to complain & protest. Nothing will get done for the people in need. Sad!

He also insisted that if Democrats continued to defend the radical-left “squad” and “King Elijah”, that it would be a “long road to 2020.”

Donald J. Trump

@realDonaldTrump

If the Democrats are going to defend the Radical Left “Squad” and King Elijah’s Baltimore Fail, it will be a long road to 2020. The good news for the Dems is that they have the Fake News Media in their pocket!

Finally, Trump lobbed a few insults at one of his favorite targets, Rev. Al Sharpton. Sharpton and Trump were once close friends, and Sharpton “loved Trump!”, the president insisted. Trump said Sharpton would always invite Trump to his events as a “personal favor to me.”

Unfortunately, Sharpton is nothing more than a “conman”, Trump said.

Donald J. Trump

@realDonaldTrump

I have known Al for 25 years. Went to fights with him & Don King, always got along well. He “loved Trump!” He would ask me for favors often. Al is a con man, a troublemaker, always looking for a score. Just doing his thing. Must have intimidated Comcast/NBC. Hates Whites & Cops! https://twitter.com/thereval/status/1155656396685357059 

Reverend Al Sharpton

@TheRevAl

Arrived in DC from Atlanta, headed to Baltimore. Long day but can’t stop.

View image on Twitter

Donald J. Trump

@realDonaldTrump

Al Sharpton would always ask me to go to his events. He would say, “it’s a personal favor to me.” Seldom, but sometimes, I would go. It was fine. He came to my office in T.T. during the presidential campaign to apologize for the way he was talking about me. Just a conman at work!

Trump isn’t the only individual to levy such an accusation against Sharpton.

END

SWAMP COMMENTARIES

The saga of Omar continues as he now leaves her second husband Hirsi.

(zerohedge)

As Accusations Of Fraud Swirl, Rep. Ilhan Omar Busts A Move And Splits From Husband

After a three-year investigation by journalist David Steinberg resulted in a House ethics complaint against Rep. Ilhan Omar (D-MN) calling for probes into potential crimes committed by Omar and her brother, the far-left Congresswoman has left her husband for the second time, and are heading for yet another divorce according to the Daily Mail.

 

Rep. Ilhan Omar (D-MN), husband Ahmed Hirsi

Omar has now dumped her current husband Ahmed Hirsi – who she first married in a religious ceremony in 2002 and divorced in 2008 – and moved into a penthouse apartment in one of Minneapolis’s trendiest neighborhoods, DailyMail.com has learned exclusively.

But Hirsi, is also spending time at the apartment, which is in the Mill District sector of Minnesota’s largest city, when she is out of town.

‘Wow,’ said Hirsi, when approached about the split by DailyMail.com outside the complex. ‘I can’t comment on that.

I’m sorry, I just can’t say anything,‘ he added before driving off in his BMW car. –Daily Mail

Of note, Omar married UK citizen Ahmed Nur Said Elmi, who has been identified as her brother. The two divorced in 2017, after which Omar married Hirsi again in 2018.

 

Timeline of Omar’s two marriages via the Daily Mail

Omar has three children with the 39-year-old Hirsi, who has been seen going in and out of the $2,860 per month rental.

“He only goes there when Ilhan is in DC,” said one family friend. “When she’s in Minneapolis he sleeps at his house.”

Hirsi was noticeably absent when Omar returned to a hero’s welcome at Minneapolis-St. Paul Airport last week after being attacked by President Donald Trump.

At the time, he was sitting morosely in a Starbucks coffee shop close to the now-overgrown home that he and Omar shared during their marriage, sources tell DailyMail.com.

Omar told supporters at the airport she would continue to be Trump’s ‘worst nightmare.’

‘His nightmare is seeing a Somali immigrant refugee rise to Congress,’ she said. ‘His nightmare is seeing the beautiful mosaic fabric of our country welcome someone like me as their member of Congress home to Minnesota. –Daily Mail

CGTN America

@cgtnamerica

Crowds cheered her at the airport, then Minnesota representative, Ilhan Omar, told them what she came to do.

Embedded video

The split with Omar may come at a great time for Hirsi, as his wife is currently the subject of much speculation. According to the Congressional complaint filed against her by Judicial Watch, “Substantial, compelling and, to date, unrefuted evidence has been uncovered that Rep. Ilhan Omar may have committed the following crimes in violation of both federal law and Minnesota state law: perjury, immigration fraud, marriage fraud, state and federal tax fraud, and federal student loan fraud.

“The evidence is overwhelming Rep. Omar may have violated the law and House rules.  The House of Representatives must urgently investigate and resolve the serious allegations of wrongdoing by Rep. Omar,” said Judicial Watch president Tom Fitton. “We encourage Americans to share their views on Rep. Omar’s apparent misconduct with their congressmen.”

 

END
Amazing! Now the Dems go full conspiracy theorist..Somebody got to Mueller
(zerohedge)

Desperate Dem Rep Goes Full Conspiracy Theorist: Claims “Somebody Got To Mueller”

This is starting to feel like a Twilight Zone episode.

Having been embarrassed by Mueller’s mumblefest, it seems Democrats have merely cranked up their conspiracy theories in an effort to save themselves from mental health crises.

California Rep. Ted Lieu was the best example by far (which is saying something with Rep. Swalwell on the committee) as he gloated that, during his discussion with Special Counsel, Mueller dropped a potential bombshell that the reason he did not indict Trump for obstructing the Russia probe was because of a Justice Department office of legal counsel opinion that prohibits indicting sitting presidents.

“The reason again that you did not indict Donald Trump is because of [Office of Legal Counsel] opinion stating that you cannot indict a sitting president, correct?” Lieu asked Mueller in the hearing.

“That is correct,” Mueller said.

This seemed to contradict Mueller’s own previous comments and his report, but nonetheless, Lieu excitedly took to Twitter to proclaim “nobody should be above the law” and various leftists quickly created memes suggesting #LockHimUp etc…

The Smoking Gun!?

Rep. Ted Lieu

@RepTedLieu

FACT: There’s substantial evidence that @POTUS obstructed justice. It’s clear that anyone else would be facing criminal prosecution. The does NOT exonerate the president.

Embedded video

But – and it’s a big but… as Daily Caller’s Chuck Ross notesbefore Democrats could celebrate too much, Mueller corrected his testimony when he appeared hours later before the House Intelligence Committee for a second round of testimony about his Russia investigation…

“Now before we go to questions, I want to add one correction to my testimony this morning,” Mueller began in his opening remarks.

“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,” he said, adding, “as we say in the report, and as I said in the opening, we did not reach a determination as to whether the president committed a crime.

Crushing the dreams of every leftist.

But – and here’s the leap towards the irrational and mentally ill – Lieu suggested to CNN’s Wolf Blitzer during an interview later in the day that “somebody got to” Robert Mueller to force the former special counsel to correct his testimony. “[Y]ou say Mueller fully understood your question. Doesn’t Mueller’s correction, which he later provided, prove otherwise?” Blitzer asked.

“This is what’s so odd about that exchange. Special counsel Robert Mueller agreed that the OLC opinion prevented a sitting president from being indicted, and then the Republican member after me asked him a series of questions to try to get him to walk it back, and he did not do that.”

“And then it wasn’t until there was a recess with the Intel committee that he started to walk some of it back,” said Lieu.

I don’t know who got to him. I don’t know who talked to him, but that was very odd, what he did.”

Blitzer asked Lieu, “What are you suggesting? … Are you saying he only did that because of pressure from someone?”

“I don’t know,” said Lieu, “but he clearly answered the way he answered to me, and then he had numerous times to walk that back by the next Republican member who asked him a series of questions on the exact same issue trying to get him to walk it back.”

Lieu then took one more step towards his insanity by analogizing the entire episode to a ham sandwich!!! We shit you not!

Ted Lieu

@tedlieu

Analogy: Mueller gives us a slice of bread, puts ham on it, and then another slice of bread. We say that’s a ham sandwich. Mueller says I didn’t make a determination whether or not it’s a ham sandwich because I was instructed I can’t call it that.

It’s still a ham sandwich. https://twitter.com/AlisonMorrisNOW/status/1154043514570735616 

Alison Morris

@AlisonMorrisNOW

Congressman @tedlieu establishes 3 elements of obstruction of justice but Mueller says he doesn’t subscribe to what Lieu is trying to prove.

View image on Twitter

And finally, as further evidence of the level of cognitive dissonance among the various never-Trump-ers, Daily Caller’s Chuck Ross just reported that “Nadler just cited Mueller’s exchange with Ted Lieu – which he later corrected – but without noting that it was corrected.”

END
As we explained to you on previous occasions, the genesis of the Russiagate began a few months before the official July 31.2016 date.  Now there are tapes and transcripts of a conversation Papadopoulos had with Mifsud who fed him the initial story of dirt on Hillary.  This no doubt will be the smoking gun with respect to exculpatory evidence withheld.
(zerohedge)

Barr’s Russiagate Origin Probe Pivots To ‘Smoking Gun’ Tapes With Exculpatory Evidence

A DOJ internal review of the Russia investigation is now focusing on transcripts of (not-so) covertly recorded conversations between former Trump campaign aide George Papadopoulos and ‘at least one government source’ during an overseas conversation in 2016.

In particular, DOJ investigators are focusing on why certain exculpatory (or exonerating) evidence from the transcripts was not included in subsequent FBI surveillance warrant applications, according to Fox News, citing two sources familiar with the review.

“A source told Fox News that the “exculpatory evidence” included in the transcripts is Papadopoulos denying having any contact with the Russians to obtain the supposed “dirt” on Clinton,” according to the report.

And while Fox doesn’t name the ‘government source,’ it’s undoubtedly Australian diplomat and Clinton ally Alexander Downer, who was “idiotic enough” to spy on Papadopoulos with his phone, according to the former Trump aide.

George Papadopoulos@GeorgePapa19

Have been contacted by about a dozen Australian journalists for comment on Clinton errand boy, Alexander Downer, and him being idiotic enough to spy on me with his phone. The transcript of my meeting with him will show Australia was willfully trying to sabotage Donald Trump.

Brian Cates@drawandstrike

No gray area about the claim Papadopoulos was making here, is there? https://twitter.com/GeorgePapa19/status/1131992392939200512 

George Papadopoulos@GeorgePapa19

No conspiracy Marshall. It’s all coming out. Downer will go down in history as the bumbling spy I outed who almost upended the US-Australia relationship…until his own government throws him under the bus. Next time don’t use your phone to spy on me, dummy. https://twitter.com/MarshallCohen/status/1131963866647343104 

But Papadopoulos did not only meet with Mifsud and Downer while overseas. He met with Cambridge professor and longtime FBI informant Stefan Halper and his female associate, who went under the alias Azra Turk. Papadopoulos told Fox News that he saw Turk three times in London: once over drinks, once over dinner and once with Halper. He also told Fox News back in May that he always suspected he was being recorded. Further, he tweeted during the Mueller testimony about “recordings” of his meeting with Downer. –Fox News

Brian Cates@drawandstrike

I saw this tweet go live at the time Papadopoulos posted it, making the claim he actually **reported** Downer to the FBI and also mentioned his recording activity to the US Congress when he testified. https://twitter.com/GeorgePapa19/status/1126909188167233536 

George Papadopoulos@GeorgePapa19

I was approached by Australian/US/UK intel BEFORE Alexander Downer made contact with me. I was so disturbed by his behavior at our meeting, where I felt he was spying on me and recording our conversation with his phone, that I reported him to both the FBI and Congress.

Brian Cates@drawandstrike

It was on June 5 of this year that Papadopoulos made the claim that Stefan Halper **also** made an attempt to record their conversation on his cell phone. https://twitter.com/GeorgePapa19/status/1136310219951095808 

George Papadopoulos@GeorgePapa19

Downer was such a clown that he was actually holding his phone upright as I was answering his questions to record me. The walrus, Stefan Halper, tried to pull the same thing. Both are responsible for getting the UK and Australia to kiss the ring and humiliate themselves.

“These recordings have exculpatory evidence,” one source told Fox, adding “It is standard tradecraft to record conversations with someone like Papadopoulos—especially when they are overseas and there are no restrictions.

The recordings in question pertain to conversations between government sources and Papadopoulos, which were memorialized in transcripts. One source told Fox News that Barr and Durham are reviewing why the material was left out of applications to surveil another former Trump campaign aide, Carter Page.

I think it’s the smoking gun,” the source said. –Fox News

Also under review  by AG Barr and US Attorney John Durham of Connecticut is the actual start date of the original FBI investigation into the Trump campaign and Russian interference in the US election.

Former Rep. Trey Gowdy (R-SC) first revealed the existence of transcripts documenting the secretly recorded conversations earlier this year.

“If the bureau’s going to send in an informant, the informant’s going to be wired, and if the bureau is monitoring telephone calls, there’s going to be a transcript of that,” Gowdy said on Fox News in May.

“Some of us have been fortunate enough to know whether or not those transcripts exist. But they haven’t been made public, and I think one, in particular … has the potential to actually persuade people,” he continued, adding “Very little in this Russia probe I’m afraid is going to persuade people who hate Trump or love Trump. But there is some information in these transcripts that has the potential to be a game-changer if it’s ever made public.

According to the report, the transcripts are currently classified – however President Trump’s May order to approve declassification at AG Barr’s discretion means they may see the light of day. And even if not, the declassification allowed Barr to barge in on DNI Director Dan Coats’ office and demand the files.

A source told Fox News that without the declassification order signed by Trump, Director of National Intelligence Dan Coats was not going to give anyone access to the files—over concerns for protecting sources and methods. But another source told Fox News in May that Coats, along with CIA Director Gina Haspel and FBI Director Chris Wray, are all working “collaboratively” with Barr and Durham on the review.

Barr and Durham are also trying to pinpoint the actual “start date” of the investigation, according to a source. –Fox News

As passionately laid out by Rep. Jim Jordan (R-OH) during this week’s Mueller testimony, the FBI officially opened the Russia investigation after Papadopoulos told Downer about a rumor (told to him by Clinton Foundation member Joseph Mifsud) that Russia had ‘dirt’ on Hillary Clinton.

That said, some have suggested that the FBI probe began long before Downer’s report to intelligence agencies.

On Wednesday, House Intelligence Committee Ranking Member Devin Nunes, R-Calif., challenged former Special Counsel Mueller over when the investigation started.

“The FBI claims the counterintelligence investigation of the Trump campaign began on July 31, 2016, but in fact, it began before that,” Nunes said. “In June 2016, before the investigation was officially opened, Trump campaign associates Carter Page and Stephen Miller were invited to attend a symposium at Cambridge University in July 2016. Your office, however, did not investigate who was responsible for inviting these Trump associates to the symposium.” –Fox News

“Maybe a better course of action is to figure out how the false accusations started,” said Jordan on Wednesday, adding “Here’s the good news—that’s exactly what Bill Barr is doing and thank goodness for that.”

END

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

@realDonaldTrump: Q2 GDP Up 2.1% Not bad considering we have the very heavy weight of the Federal Reserve anchor wrapped around our neck. Almost no inflation. USA is set to Zoom!

With Google set to surge on Friday’s open due to great Q2 results, Trump delivered negative verbal intervention.  Trump also slammed Apple.

@realDonaldTrump: There may or may not be National Security concerns with regard to Google and their relationship with China. If there is a problem, we will find out about it. I sincerely hope there is not!!!  Apple will not be given Tariff waiver, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!

Possibly because it was a summer Friday and he had recreational plans, Kudlow did his verbal intervention during the first hour of trading.

Uncle Lar said the WH has ruled out currency intervention; talks with China this week will ‘reset’ trade negotiations; but, there will be no ‘grand deal’ with China this week.

At midday, Trump warned that the US would take reciprocal action if France institutes a digital tax.

@realDonaldTrump: France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!

Except for two minor retrenchments, ESUs and US stocks plodded higher until modest selling appeared minutes before the close.  FANGs led the market higher, which made Nasdaq the strongest major index.  This is a crystal clear sign of trader buying.  The usual suspects want to be long this week for the expected Fed rate cut and July performance gaming.

Even though Intel soared after the close on Thursday due to good earnings, it peak minutes after the NYSE open on Friday and turned negative by late morning.  It remained in the red for the remainder of the day.  Intel is not a FANG.  So, it is no longer a favored trading sardine.  Ergo, traders shunned it.

@business: Trump tells his top trade negotiator to pressure the WTO on China’s status as a “developing nation”

Trump Targets China over WTO ‘Developing Nation’ Crackdown

  • President orders USTR to press for change or take action
  • Steps up fight over longstanding U.S. complaint over WTO

https://www.bloomberg.com/news/articles/2019-07-26/trump-targets-china-in-memo-on-wto-developing-nation-crackdown

China’s industrial profits fall in June, add to fears of slowdown

Profits earned by China’s industrial firms fell 3.1% in June from a year earlier…

https://www.cnbc.com/2019/07/27/chinas-industrial-profits-fell-3point1percent-in-june.html

China Needs New Places to Sell Its Mountain of Stuff – Faced with severe factory overcapacity at home and tariffs on exports to the U.S., Beijing wants to finish a much-delayed Asian free-trade pact.

https://www.nytimes.com/2019/07/26/business/china-trade-war-us-rcep.html

Reuters on Saturday: Trump Says China Will Probably Say Let’s Wait on Trade Deal, Try to Delay until U.S. Election

@charliebilello: Ratio of US Stocks to Commodities at a new all-time high. SPX CRB

https://twitter.com/charliebilello/status/1155113164348039169/photo/1

Warning!!! The following is NOT a parody piece!

OAN’s @ChloeSalsameda: Senate Democrats introduce a bill to teach Americans, starting in kindergarten, how to identify misinformation online/social media. They hope this will limit foreign influence on U.S. elections

Today – Traders will play for the usual Monday rally.  No one expects the stock market to decline materially, barring very bad news, until the FOMC policy decision and Powell’s press conference on Wednesday.  Ergo, traders will buy dips until Wednesday afternoon, which is also the end of July.

Trump drove another stake through the Deep State’s heart when he forced out DNI Chief Coats (as of Aug. 15), who reportedly had been inhibiting Barr’s Spygate investigation.  Coats, a long-time politician and Deep Stater, complained to the MSM that Barr’s investigation could jeopardize national security.

@realDonaldTrump: I am pleased to announce that highly respected Congressman John Ratcliffe of Texas will be nominated by me to be the Director of National Intelligence. A former U.S. Attorney, John will lead & inspire greatness for the Country he loves… [Last week, Ratcliffe eviscerated Mueller.]

@LarrySchweikart: 1) Even the biggest Trump fans have to admit by now that his DOJ/intel picks were not good. Sessions, Coates, Wray. These guys were Deep State all the way, and no, they were not and are not involved in some Q-type sting.  They were bad apples. 2) The question is why?… 6) At any rate, Trump now has Pompeo, Radcliffe, Barr (whose effectiveness remains to be seen, despite his tough talk), and must give Wray the pink slip before anything can get done. [We’d bet Wray goes after IG report.]

Reports last week said Pelosi and Nadler had a fight over impeachment after Mueller’s disastrous testimony.  On Friday, Pelosi voiced opposition to impeachment and convened the House for the summer.  Nadler, who has deep hatred for Trump, held an early evening presser on Friday to announce that he plans to proceed with an impeachment investigation – even though he has no evidence.  Nadler risibly said he would subpoena grand jury testimony, an act forbidden by law, to find evidence to impeach DJT.

 

Pelosi won’t launch impeachment proceedings without ‘strongest possible case’

Pelosi opposes impeachment largely because a move to oust the president would be dead on arrival in the Republican-controlled Senate and could be a politically toxic issue for Democrats in swing districts

https://nypost.com/2019/07/26/pelosi-wont-launch-impeachment-proceedings-without-strongest-possible-case/

 

House leaves for six-week August recess

https://thehill.com/homenews/house/454817-house-leaves-for-six-week-august-recess

 

@RepJerryNadler: Today, @HouseJudiciary is filing a petition for 6e grand jury materials where we made clear to the court that we are considering impeachment, along with other options, under our Article I powers. Congress must hold this President accountable.

 

On Friday night from the Oval Office, DJT, livid about Dem’s incessant harassment, asserted it’s time to:

  • Subpoena all of Obama’s records
  • Subpoena all of Hillary Clinton’s records
  • Subpoena the Clinton Foundation’s records
  • Investigate the book deal that President Obama made

 

Pelosi Says She and Ocasio-Cortez ‘Don’t Have Many Differences’ [Trump wins again!]

  • Speaker had private meeting with first-term New Yorker
  • Democrats trying to project image of unity amid friction

Progressive Democrats stood behind Pelosi in her election for speaker early this year amid calls by some moderate members for the California Democrat to step aside for younger leadership…

https://www.bloomberg.com/news/articles/2019-07-26/pelosi-says-she-and-ocasio-cortez-don-t-have-many-differences-jyk65wb1

 

Dems have a very large funding problem.  They are running far behind Trump and the GOP in raising money.  Dems are increasingly dependent on coastal US oligarchs for their funds.  Many are virulently anti-Trump.  This is another tightrope that Pelosi must navigate.

 

The MSM and the coastal left of the Dem Party have created a huge problem for the Dems in 2020.  Due to three years of frenzied advocacy for impeachment, the Democratic base wants impeachment.  Pelosi and most Dems know there is no chance of conviction and impeachment will energize the GOP base as well as turn independents and swing voters/states against the Dem Party in 2020.  But, no impeachment will dispirit the Dem base.  Good luck with the extrication from this intractable conundrum.

 

Impeachment charade deepens divide between Democratic leaders and voters

On Wednesday nightafter Trump-Russia special counsel Robert Mueller’s appearance before the House Judiciary and Intelligence committees, Democrats met to discuss the testimony and prospects for impeachment.  There were those, like Judiciary Chairman Jerry Nadler, who argued for going ahead with impeachment. But it was “floated as an idea and a possibility, not as something that will imminently happen,” in the words of CNN reporter Manu Raju…

    Speaker Nancy Pelosi fears impeachment will backfire on Democrats…The fact is, it is nearly too late for impeachment right now… A new poll of registered voters from Fox News found that 74% of Democrats surveyed want the president impeached and removed from office…

The non-impeachment fix appears to be in, and everybody knows it except the voters and some cable news hosts… And when it finally doesn’t come to pass, there will be a lot of disappointed people who made the mistake of taking all the talk seriously…

https://www.washingtonexaminer.com/opinion/columnists/byron-york-impeachment-charade-deepens-divide-between-democratic-leaders-and-voters

 

@MariaBartiromo: @GeorgePapa19 just told me he is going back to #Greece to retrieve the $10-k that was dropped in his lap as part of the FBI’s entrapment. It’s in a safe in Greece. It’s marked bills and the intel committees want to see it. [Mueller refused to answer questions about the $10k.]

 

Over the weekend, DJT began a new campaign strategy: Call out Dem leaders for the blight in their cities.  Dems & the MSM went nuts!  DJT succeeded in drawing national attention to Dem leaders’ malfeasance in Baltimore.  Urban blight is a subject that Dems do not want discussed in an election year.  Also, DJT will bash urban Dems for favoring illegal immigrants over their economically-distressed constituents.

 

@realDonaldTrump: Speaking of failing badly, has anyone seen what is happening to Nancy Pelosi’s district in San Francisco. It is not even recognizable lately. Something must be done before it is too late…

     Someone please explain to Nancy Pelosi, who was recently called racist by those in her own party, that there is nothing wrong with bringing out the very obvious fact that Congressman Elijah Cummings has done a very poor job for his district and the City of Baltimore. Just take a look, the facts speak far louder than words! The Democrats always play the Race Card, when in fact they have done so little for our Nation’s great African American people. Now, lowest unemployment in U.S. history, and only getting better… If racist Elijah Cummings would focus more of his energy on helping the good people of his district, and Baltimore itself, perhaps progress could be made in fixing the mess that he has helped to create over many years of incompetent leadership. His radical “oversight” is a joke!

 

Trump throws Squad feud back at Pelosi after ‘racist’ accusation: ‘Democrats always play the race card’ – Trump doubled down on his comments against Cummings Saturday afternoon, tweeting, “Elijah Cummings spends all of his time trying to hurt innocent people through ‘Oversight.’ He does NOTHING for his very poor, very dangerous and very badly run district!” The tweet included a video purporting to show a rundown area of West Baltimore…

https://www.foxnews.com/politics/trump-throws-squad-feud-back-at-pelosi-after-racist-accusation-democrats-always-play-the-race-card

 

Bernie called Trump a ‘racist’ for his attack – even though a few years ago, Bernie said West Baltimore looked like ‘a Third World’ country.  The MSM also called Trump a ‘racist’ – even though they had published beaucoup stories about Baltimore’s plight (ensuing NYT story from March 12, 2019).

 

The Tragedy of Baltimore – Since Freddie Gray’s death in 2015, violent crime has spiked to levels unseen for a quarter century. Inside the crackup of an American city.

https://www.nytimes.com/2019/03/12/magazine/baltimore-tragedy-crime.html

 

Baltimore Sun: Baltimore Mayor Catherine Pugh: ‘You can smell the rats’ (Sept. 12, 2018)

https://www.baltimoresun.com/maryland/baltimore-city/bs-md-ci-pugh-smell-rats-20180912-story.html

 

@JackPosobiec: Last 3 Baltimore mayors: Sheila Dixon: Convicted of stealing gift cards from the poor; Stephanie Rawlings-Blake: Stepped down after promoting the Baltimore Riots: Catherine Pugh: Raided by FBI for taking bribes – All Democrats

 

NBC did an old media trick: Report something controversial and criticize others for raising the issue.

 

An old Hillary Clinton conspiracy theory finds new life in Jeffrey Epstein news

The news that the disgraced financier was injured has revived a decades-old conspiracy theory that baselessly links Hillary Clinton to a number of “suspicious” deaths.
    The theory, known as the “Clinton Body Count,” was soon trending on Twitter, with the corresponding #ClintonBodyCount hashtag attached to more than 70,000 tweets by Thursday afternoon…

https://www.nbcnews.com/tech/tech-news/old-clinton-conspiracy-theory-finds-new-life-jeffrey-epstein-news-n1034741

end

Greg Hunter interviews Kevin Shipp who explains beautifully the deep state and how they desperate to remove Trump

(Greg Hunter/Kevin Shipp)

Deep State Wants Epstein Gone – Kevin Shipp

By Greg Hunter On July 28, 2019 In Political Analysis

Former CIA Officer and whistleblower Kevin Shipp says there are big stories with big implications for America that are unfolding now. One of the biggest earthquakes that is going off will be the high ranking Deep State elite surrounding convicted sex offender Jeffery Epstein. Shipp says, “Oh my goodness gracious, the Deep State is darn well scared, and some of its political top participants, I guarantee you, they want Epstein gone. There is no doubt about that. I don’t know why the Bureau of Prisons put Epstein in a jail cell with a cop that killed four people and buried them in his back yard. Epstein should have been in solitary confinement under watch. So, whoever made that decision, it was a complete error in judgment, if not intentional. That should not have happened in the first place.”

Shipp goes on to point out, “It looks pretty clear to me that the Deep State intelligence Shadow government was involved, and it gets worse. Ghislaine Maxwell, who was Epstein’s alleged recruiter for young girls, was the daughter of  Robert Maxwell, (Correction: Shipp said John by mistake) who was a known Mossad Agent. He bilked pension funds to cover losses in his business. . . . He was found dead floating next to his yacht from an alleged heart attack. So, there are some strange connections to the Deep State. U.S. Attorney (and former Labor Secretary) Alexander Acosta would not have said this if it were not true. It is true. There are intelligence connections. Is this a blackmail operation? We know Epstein has a ‘black book.’ We know Epstein probably has video of massages by young girls of high profile people, including politicians. . . . There are going to be some big names that are going to be connected to Epstein and his pedophile child trafficking ring. There is no question about it.”

Another huge story unfolding is the investigation into the “hoax” and “witch hunt” of Russian collusion with President Trump that has now been totally disproven. The real story is how traitors in the U.S. government made up a crimes to frame the President, his campaign and his Administration. People high up in the Obama Administration committed massive crimes, only to fail badly in removing Trump from office. Kevin Shipp says, for President Trump, “This is a fight to the death. . . . Trump has to win. . . . There is no question about it. They want Donald Trump gone anyway that they can. We know the Shadow Government, including the CIA, and I studied this in detail, were responsible for the assassination of JFK using the Mafia, and that’s how far they will go. You are talking trillions of dollars, trillions of dollars they could lose if the President isn’t in their pocket. . . . They want him dead, and he is under serious risk right now. . . . He has got to push this forward. He has to win for the Constitution and for his family that might be assassinated.”

Yet another big risk, says Shipp, is the global economic system suffering a financial calamity. This includes the U.S. Shipp contends, “Russia and China are stocking up on gold . . . as they agree to stop using the U.S. dollar and go to the yuan and ruble, which means they will stop recognizing the U.S. dollar. The dollar will lose its value because of that. We have a huge debt, and by 2025, our deficit will be $30 trillion. It is impossible to pay that off. The global deficit is $245 trillion. This thing has got to burst, and it’s going to burst. . . . Donald Trump has come out against the Deep State and Shadow Government in ways I could only dream of. I am a Trump supporter, but what he has got on his hands is a coming catastrophe. You cannot stop the collapse caused by the deficit . . . . . Trump will take some significant action. This is a national security issue, and he can step in and make some changes. This is a huge catastrophe, and Americans are not aware of what is coming . . . and are not ready for a financial calamity.”

Join Greg Hunter as he goes One-on-One with Former CIA Officer and whistleblower Kevin Shipp.

-END-

Well that is all for today

I will see you TUESDAY night.

 

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