AUGUST 29//TODAY WAS YOUR NORMAL WHACKING PRIOR TO FIRST DAY NOTICE TOMORROW; GOLD DOWN $11.65 TO $1528.00// SILVER DOWN 13 CENTS TO $18.24// A MONSTROUS GAIN IN GLD TO THE TUNE OF 9.09 PAPER TONNES DESPITE GOLD’S DROP//AT THE GOLD COMEX VERY STRANGE; 21.99 TONNES OF REGISTERED GOLD READY TO SERVE UPON 27.25 TONNES OF GOLD STANDING.//CHINESE TROOPS ENTER HONG KONG UNDER THE GUISE OF GARRISON REPLACEMENT//CHINA IS FURIOUS AT THE USA FOR THEIR INVOLVEMENT IN THE SOUTH CHINA SEAS// USA IS STILL CAUSING PROBLEMS FOR HUAWEI AND ARE ANGRY WITH THEIR HIRING PRACTICES/// LOT OF SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1528.00 DOWN $11.65(COMEX TO COMEX CLOSING

 

 

 

 

 

 

 

 

 

 

 

 

Silver: $18.24 DOWN 13 CENTS  (COMEX TO COMEX CLOSING)/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing access prices:

 

 

 

Gold : $1527.50

 

silver:  $18.26

option trading silver and gold:

We are now entering options expiry week for the comex

 

OTC/ LBMA expires :  Friday, the 30th.

we are coming very close to a commercial failure!!

 

 

 

 

 

 

 

COMEX DATA

 

 

 

 

 

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

today RECEIVING .0/34

EXCHANGE: COMEX
CONTRACT: AUGUST 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,537.800000000 USD
INTENT DATE: 08/28/2019 DELIVERY DATE: 08/30/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 5
686 C INTL FCSTONE 7
737 C ADVANTAGE 22
905 C ADM 2
991 H CME 32
____________________________________________________________________________________________

TOTAL: 34 34
MONTH TO DATE: 8,730

 

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT: 34 NOTICE(S) FOR 3400 OZ (0.1057 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  8730 NOTICES FOR 873,000 OZ  (27.153 TONNES)

 

 

 

SILVER

 

FOR AUGUST

 

 

4 NOTICE(S) FILED TODAY FOR 20,000  OZ/

 

total number of notices filed so far this month: 2005 for   10,025,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 10012 DOWN 243 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 9628 DOWN 216

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A HUGE  SIZED 12,643 CONTRACTS FROM 239,970 DOWN TO 227,327… DESPITE THE 19 CENT GAIN IN SILVER PRICING AT THE COMEX.

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

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

FOR AUGUST, 0 FOR SEPT 2017, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2017 CONTRACTS. WITH THE TRANSFER OF 2017 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 2017 EFP CONTRACTS TRANSLATES INTO 10.085 MILLION OZ  ACCOMPANYING:

1.THE 19 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

WE HAD ATTEMPTED COVERING OF SHORTS AT THE SILVER COMEX YESTERDAY WITH ZERO SUCCESS..BUT WE HAD HUGE SPREADING LIQUIDATION. THE PROCESS SHOULD END ON FRIDAY AND THEN WE START THE ACCUMULATION PROCESS FOR GOLD ON MONDAY.

 

MODUS OPERANDI OF THE CORRUPT BANKERS AS TO HOW THEY HANDLE THEIR SPREAD OPEN INTERESTS:

 

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 SWITCH 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 NOW INTO THE NON ACTIVE DELIVERY MONTH OF AUGUST HEADING TOWARDS THE VERY ACTIVE DELIVERY MONTH OF SEPTEMBER FOR SILVER.

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 AUGUST 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 (SEPT), 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 FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF AUGUST:

40,850 CONTRACTS (FOR 21 TRADING DAYS TOTAL 40,850 CONTRACTS) OR 204.25 MILLION OZ: (AVERAGE PER DAY: 1945 CONTRACTS OR 9.726 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST:  204.25 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 29.17% 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:          1516.87   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

JULY 2019   TOTAL EFP ISSUANCE:                                                175.74 MILLION OZ

RESULT: WE HAD A HUGE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 12,643, DESPITE THE 19 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  HUGE SIZED EFP ISSUANCE OF 2017 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 LOST AN ATMOSPHERIC  SIZED: 10,626 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2017 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 12,643  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 19 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $18.37 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. 1.1365 BILLION OZ TO BE EXACT or 162% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 4 NOTICE(S) FOR 20,000 OZ OF SILVER

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.78.  

AND NOW WE ARE WITHIN A WHISKER OF ANOTHER ALL TIME RECORD OPEN INTEREST AT THE COMEX OF 244,169  BUT THIS TIME  THE PRICE OF SILVER YESTERDAY WAS $17.18 AND HIGHER 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 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ
  2. CLOSE TO THE RECORD OPEN INTEREST IN SILVER 244,169 CONTRACTS (OR 1.228 BILLION OZ/, THE PREVIOUS RECORD WAS SET IN 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 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)

THE SPREADING LIQUIDATION OPERATION IS NOW IN FULL SWING AND UNDERGOING ITS FINAL LIQUIDATION..THIS IS ONLY FOR SILVER ALMOST ALL OF THE LOSS IN TOTAL OPEN INTEREST WAS DUE TO THE LIQUIDATION OF THE SPREADERS……. THE LIQUIDATION( AND ACCUMULATION) PHASE FOR COMEX OI GOLD  STOPS FOR THE AUGUST CONTRACT MONTH BUT WILL START IN EARNEST ONCE WE ENTER THE MONTH OF SEPTEMBER. AS I STATED YESTERDAY:  “IN SILVER WE WOULD NORMALLY WITNESS A HUGE COLLAPSE IN TOTAL OPEN INTEREST AS WE PROCEED TO THE ACTIVE DELIVERY MONTH OF SEPTEMBER”…AND TRUE TO FORM THAT PLAYED OUT PERFECTLY.

 

 

 

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A LARGE SIZED 6454 CONTRACTS, TO 629,729 ACCOMPANYING THE $2.15 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /AGAIN WE HAD A HUGE DIFFERENTIAL OF OVER 6,000 CONTRACTS FROM THE PRELIMINARY NUMBERS TO FINAL NUMBERS

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 8959 CONTRACTS:

OCT 2019: 400 CONTRACTS, DEC>  8559 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 629,729,,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A FAIR SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2505 CONTRACTS: 6454 CONTRACTS DECREASED AT THE COMEX  AND 8959 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2505 CONTRACTS OR 250500 OZ OR 7.79 TONNES.  YESTERDAY WE HAD A SMALL LOSS OF $2.15 IN GOLD TRADING….AND WITH THAT LOSS IN  PRICE, WE  HAD A GOOD GAIN IN GOLD TONNAGE OF 7.79  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON .

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF AUGUST : 192,859 CONTRACTS OR 19,285,900 oz OR 599.87 TONNES (21 TRADING DAY AND THUS AVERAGING: 9,183 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 21 TRADING DAY IN  TONNES: 599.87 TONNES

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

THUS EFP TRANSFERS REPRESENTS 599.87/3550 x 100% TONNES =16.89% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     4110.53  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

JULY 2019: TOTAL ISSUANCE:                    591.56 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 LARGE SIZED DECREASE IN OI AT THE COMEX OF 6454 DESPITE THE SMALL  PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($2.15)) //.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8959 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 8959 EFP CONTRACTS ISSUED, WE  HAD A FAIR SIZED GAIN OF 2505 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

8959 CONTRACTS MOVE TO LONDON AND 6454 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 7.79 TONNES). ..AND THIS GOOD INCREASE OF  DEMAND OCCURRED DESPITE THE SMALL LOSS IN PRICE OF $2.15 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

 

 

 

 

 

 

we had:  34 notice(s) filed upon for 3,400 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD DOWN $11.65 TODAY//(COMEX-TO COMEX)

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 9.09 TONNES//STRANGE?

INVENTORY RESTS AT 882.41 TONNES

 

 

 

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

SLV/

 

WITH SILVER DOWN 13 CENTS TODAY:

 

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.714 MILLION OZ INTO THE SLV//STRANGE??

 

/INVENTORY RESTS AT 388.154 MILLION OZ.

 

 

 

 

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER FELL BY AN ATMOSPHERIC AND CRIMINALLY SIZED 12,643 CONTRACTS from 239,970 DOWN TO 227,327 AND FURTHER FROM A  NEW COMEX RECORD.  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT 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  2 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

 

 

 

 

 

EFP ISSUANCE: 

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

 FOR AUGUST: 0, FOR SEPT. 2017  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2017 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI LOSS AT THE COMEX OF 12,643  CONTRACTS TO THE 2017 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A HUGE LOSS  OF 10,626 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 53.13 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 22.605 MILLION OZ; AUGUST AT 10.025 MILLION OZ//

ALL OF THE LOSS IN OI TODAY WAS DUE TO THE CULMINATION OF THE LIQUIDATION OF SPREADERS CONTRACTS AT THE SILVER COMEX.  THE PROCESS ENDS FRIDAY UPON WHICH THE PROCESS COMMENCES IN THE ACCUMULATION PHASE FOR GOLD STARTING THE FIRST TRADING DAY IN SEPTEMBER.

 

 

RESULT: A GIGANTIC SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 19 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 2017 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.84 POINTS OR 0.10%  //Hang Sang CLOSED UP 88.02 POINTS OR 0.34%   /The Nikkei closed DOWN 18.49 POINTS OR 0.09%//Australia’s all ordinaires CLOSED UP .07%

/Chinese yuan (ONSHORE) closed UP  at 7.1476 /Oil UP TO 56.16 dollars per barrel for WTI and 60.50 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.1476 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.1486 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

i)Last night: getting scary!  Chinese troops and armored trucks enter Hong Kong under the pretext of a “planned garrison rotation”

(zerohedge)

ii)this caused the markets to rise as China makes an unexpected concession: they will hold off on trade retaliation.  They have run out of goods to tariff so they need a plan as to how to proceed against the Americans like  selling off its treasuries etc

(zerohedge)

iii)How on earth can the USA and China enter any trade deals with this going on:  Beijing condemns Washington’s interference in the South China Seas

(zerohedge)

iv)As we promised, those two phone calls with China never happened..they were made up to boost the market

(zerohedge)

v)China/Huawei/USA

Washington re-escalates its probe into Huawei by going after IP theft through employees who previously worked for their competitors.
Next question:  what are the algos going to do next with China?
(zerohedge)

4/EUROPEAN AFFAIRS

Italy

This should be lots of fun.  Salvini has now been moved to the opposition.  Now the new government must find a way to produce 26 billion euros in revenue because they do not want to increase the VAT in a declining economy

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Lebanese army opens fire on multiple Israeli drones.  None were shot down and they all returned safely.  However tensions mount between the Israelis and Lebanon/Hezbollah

(zerohedge)

ii)Iran/Greece/Turkey

Our famous Iranian tanker makes an abrupt turn and is now facing Greece

(zerohedge)

iii)Ukraine/USA

two very important points here:
1. Trump is mulling over whether to pull its 250 million dollar aid to Ukraine
2. Trump may take on Giuliani’s renewed push to investigate the Bidens in their natural gas deal
(zerohedge)

6.Global Issues

Michael Every discusses the proroguing of the UK Parliament by Boris Johnson and what it means,,basically we are one step closer to a hard Brexit.  Also discussed is the Dudley affair and China vs Trump on the tariff wars and the value of the CNY

(Michael Every Rabobank)

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

i)Argentina

This is something that the IMF did not want to hear they are proposing a soft default for the 9th time since independence. These guys are simply basket cases.

(zerohedge)

ii)Argentina:

The Argentine peso collapses to record low of almost 59 to one USA dollar on the debt restructuring plan

(zerohedge)

iii)Venezuela

The USA offers Maduro amnesty if he steps down. There is not a chance he will remove himself

(zerohedge)

9. PHYSICAL MARKETS

i)The New York Sun weighs in on the Dudley affair

(New York Sun//GATA)

ii)Peter Grandich writes that now it is easy to invest in gold as the manipulators are in serious troube

(Peter Grandich/GATA_)

iii)For those of you who are looking for answers on the gold/silver manipulation how about attending this year’s GATA conference

(GATA/Chris powell)

iv)Sure!! Mnuchin says the USA has no plans for intervention on the dollar. However tomorrow is a different day.

(Bloomberg/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)Not good for the Donald: 2nd quarter GDP has been revised lower to just 2% even though there was a surge in person spending

(zerohedge)

b)Despite super low mortgage rates, July pending home sales plunge back into contraction

(zerohedge)

iii) Important USA Economic Stories

a)This is quite interesting:  Republican Senator Tillis calls for a probe into the Fed independence after Bill Dudley urges the Fed to overthrow Trump

(zerohedge)

b)Hurricane Dorian is set to play havoc on Florida as the hurricane season returns. This one is set to hit Orlando and ruin the Labour Day weekend

(zerohedge)

iv) Swamp commentaries)

a)Another joke:  the House Judiciary Committee to launch probe into Trump’s plan to host the next G7

(zerohedge)

b)Seems our illustrious Rep Omar is in trouble: she paid a person to whom she was having an affair 230,000 from political contributions

(zerohedge)

c)The FBI is now analyzing the two broke cameras trying to ascertain how they could fail at the same time

(zerohedge)

d)Comey should be sweating..this is just the top of the iceberg(zerohedge)

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

 

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A LARGE SIZED 6434 CONTRACTS TO A LEVEL OF 635,304 ACCOMPANYING THE SMALL LOSS OF $2.15 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF AUGUST..  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 8959 EFP CONTRACTS WERE ISSUED:

 FOR OCT; 400 CONTRACTS: DEC: 8559   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  8959 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: 2505 TOTAL CONTRACTS IN THAT 8959 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A LARGE SIZED 6454 COMEX CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. WE OBVIOUSLY EXPERIENCED ZERO SHORT COVERING IN GOLD. 

 

 

 

NET GAIN ON THE TWO EXCHANGES ::  2505 CONTRACTS OR 250,500 OZ OR 7.79 TONNES.

 

We are now in the  active contract month of AUGUST and here the open interest stands at 34 CONTRACTS as we LOST 41 contract.  We had 31 notices filed yesterday so we LOST ONLY 10 contracts or 1,000 oz of gold that will NOT stand for delivery AS THERE APPEARS TO BE A LACK OF METAL ON THIS SIDE OF THE POND. THESE GUYS HAVE MORPHED INTO LONDON BASED FORWARDS AND WILL TRY THEIR LACK OVER THERE.

The next non active month is September and here the OI FELL by 831 contracts DOWN TO 1458.  The next active delivery month is October and here the OI FELL by 4756 contracts DOWN to 46,850. The December contract month FELL by 2243 contracts DOWN to 470,486.

 

 

TODAY’S NOTICES FILED:

WE HAD 34 NOTICES FILED TODAY AT THE COMEX FOR  3400 OZ. (0.1057 TONNES)

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI fell BY A GIGANTIC SIZED 12,643 CONTRACTS FROM 239,970 DOWN TO 227,327 WITH ALL OF THE LOSS DUE TO SPREADERS LIQUIDATION.  THE PREVIOUS RECORD WAS SET AUGUST 22/2018: 244,196, CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX LOSS OCCURRED WITH A 19 CENT GAIN IN PRICING.//YESTERDAY.

 

 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF AUGUST.  HERE WE HAVE 4 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 2 CONTRACTS.  WE HAD 2 NOTICES FILED YESTERDAY SO WE GAINED 0 CONTRACTS OR AN ADDITIONAL NIL 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..  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI FELL BY 15,696 CONTRACTS DOWN TO 14,133 CONTRACTS. OCTOBER RECEIVED ANOTHER 134 CONTRACTS TO STAND AT 893.  NEXT ACTIVE DELIVERY MONTH IS DECEMBER AND HERE THE OI RISES BY 2462 CONTRACTS UP TO 171,609. WE HAVE ONLY ONE MORE READING DAY BEFORE FIRST DAY NOTICE.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 4 notice(s) filed for 20,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 418,880  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  382,261  contracts

 

 

 

 

 

FINAL standings for  AUGUST/GOLD

AUGUST 29/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
3054.06 oz
Brinks
Deposits to the Dealer Inventory in oz nil oz

 

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
34 notice(s)
 3,400 OZ
(0.1057 TONNES)
No of oz to be served (notices)
0 contracts
(4400 oz)
1.368 TONNES
Total monthly oz gold served (contracts) so far this month
8730 notices
873000 OZ
27.153 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/  TODAY: no amount  arrived

 

we had 0 gold withdrawal from the customer account:

 

 

 

total gold withdrawals; nil  oz

 

 

i) we had 0 adjustment today
FOR THE AUGUST 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 34 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the AUGUST /2019. contract month, we take the total number of notices filed so far for the month (8730) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST. (34 contract) minus the number of notices served upon today (34 x 100 oz per contract) equals 873,000 OZ OR 27.153 TONNES) the number of ounces standing in this active month of AUGUST

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

No of notices served (8730 x 100 oz)  + (34)OI for the front month minus the number of notices served upon today (34 x 100 oz )which equals 873,000 oz standing OR 27.153 TONNES in this  active delivery month of AUGUST.

We LOST 10  contracts or an additional 1000 oz will NOT stand as these guys morphed into London based forwards as well as accepting 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 21.999 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 27.153  TONNES OF GOLD STANDING// JUDGING BY THE HUGE SIZE OF THE COMEX NOTICES FILED TODAY, IT LOOKS LIKE SOMEBODY IS WILLING TO TAKE ON THE CROOKS AT THE COMEX.

total registered or dealer gold:  707,240.521 oz or  21.999 tonnes 
total registered and eligible (customer) gold;   8,047,109.796 oz 250.60 tonnes

 

IN THE LAST 34 MONTHS 108 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 AUGUST

FINAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
AUGUST 29 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 602,895.000 oz
CNT
BRINKS

 

DELAWARE

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1923.525 oz
Delaware
No of oz served today (contracts)
4
CONTRACT(S)
(20,000 OZ)
No of oz to be served (notices)
0 contracts
 540,000 oz)
Total monthly oz silver served (contracts)  2005 contracts

10,025,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

we had  1 deposits into the customer account

into JPMorgan:  nil  oz

 

iii) Into Delaware: 1923.525 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:  1923.525  oz

 

we had 3 withdrawals out of the customer account:

 

 

i) Out of CNT:  599,900.600 oz

ii) Out of brinks:  994.000 oz

iii) Out of Delaware:  2000.000 oz??

 

 

 

 

 

 

total 602,895.000  oz

 

we had 3 adjustment :

i) Out of CNT: 4,692,001.000 oz was adjusted out of the dealer account of CNT and this landed into the customer account of CNT

ii) Out of Brinks:  6,870,210.602 oz was adjusted out of the dealer account of Brinks and this landed into the customer account of Brinks

(these would be a deemed settlement)

iii) Out of BNS 304,003.700 oz was adjusted out of the customer account of Scotia and this landed into the dealer account of Scotia.

total dealer silver:  80.102 million

total dealer + customer silver:  311.050 million oz

The total number of notices filed today for the AUGUST 2019. contract month is represented by 4 contract(s) FOR 20,000 oz

To calculate the number of silver ounces that will stand for delivery in AUGUST, we take the total number of notices filed for the month so far at 2005 x 5,000 oz = 10,025,000 oz to which we add the difference between the open interest for the front month of AUGUST. (4) and the number of notices served upon today (4) x 5000 oz equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 2005 (notices served so far) x 5000 oz + OI for front month of AUGUST (4)- number of notices served upon today (4)x 5000 oz equals 10,025,000 oz of silver standing for the AUGUST contract month.  

 

WE GAINED 4 CONTRACTS OR AN ADDITIONAL 20,000 OZ WILL  STAND AS THEY REFUSED TO MORPH INTO A LONDON BASED FORWARDS

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 4 notice(s) filed for 20,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  172,525 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 207,854 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 207,484 CONTRACTS EQUATES to 1,039 million  OZ 148.4% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -1.35% ((AUGUST 29/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.06% to NAV (AUGUST 29/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.35%

(courtesy Sprott/GATA)

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

NAV 15.41 TRADING 14.93/DISCOUNT 3.10

 

 

 

 

 

 

END

 

 

And now the Gold inventory at the GLD/

 

AUGUST 29/WITH GOLD DOWN $11.65: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 9.09 PAPER TONNES OF GOLD INTO THE GLD INVENTORY/INVENTORY RESTS AT 882.41 TONNES

AUGUST 28/WITH GOLD DOWN $2.15 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 873.32 TONNES

AUGUST 27//WITH GOLD UP $14.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 13.49 TONNES INTO THE GLD///INVENTORY RESTS AT 873.32 TONNES

AUGUST 26/WITH GOLD UP 0.25 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.99 TONNES/INVENTORY RESTS AT 859.83 TONNES

AUGUST 23/WITH GOLD UP $28.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 854.84 TONNES

AUGUST 22.WITH GOLD DOWN $6.80 TODAY: TWO HUGE CHANGES IN GOLD INVENTORY AT THE GLD: I)A PAPER DEPOSIT OF 6.74 TONNES INTO THE GLD (LATE YESTERDAY EVENING) AND 2) A PAPER DEPOSIT OF 2.93 TONNES LATE THIS AFTERNOON./INVENTORY RESTS AT 854.84 TONNES

AUGUST 21/WITH GOLD DOWN $.30 TODAY:A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.76 TONNES INTO THE GLD INVENTORY/GOLD INVENTORY RESTS AT 845.17 TONNES

AUGUST 20//WITH GOLD UP $2.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/GOLD INVENTORY RESTS AT 843.41 TONNES

AUGUST 19/WITH GOLD DOWN $11.20//A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .88 TONNES//INVENTORY RESTS AT 843.41 TONNES

AUGUST 16/WITH GOLD DOWN $7.35: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 844.29 TONNES

AUGUST 15/WITH GOLD UP $3.55 TODAY//WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: WE GOT BACK 7.63 TONNES OUT OF 11.11 TONNES LOST ON WEDNESDAY( A DEPOSIT OF 7.63 TONNES)/INVENTORY RESTS AT 844.29 TONNES

AUGUST 14/WITH GOLD UP $7.60 TODAY (AND DOWN $2.90 YESTERDAY) WE HAD A MONSTROUS WITHDRAWAL OF 11.11 TONNES OF GOLD FROM THE GLD/AND THIS WAS USED IN AN ABORTED RAID YESTERDAY:  INVENTORY RESTS AT 836.66 TONNES

AUGUST 13.2019: WITH GOLD DOWN $2.60 TO DAY: A HUGE 7.92 PAPER GOLD TONNES WERE ADDED TO THE GLD/INVENTORY RESTS AT 747.77 TONNES

AUGUST 12.2019: WITH GOLD UP $7.30: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 839.85 TONNES

AUGUST 9/WITH GOLD DOWN $2.00//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY REMAINS AT 839.85 TONNES OZ/

AUGUST 8: WITH GOLD DOWN $4.20: TWO TRANSACTIONS:  A)A MONSTROUS PAPER DEPOSIT OF 8.50 TONNES WAS ADDED TO THE GLD/INVENTORY RESTS AT 845.42 TONNES  b)  A HUGE WITHDRAWAL OF 5.59 TONNES FROM THE GLD//INVENTORY RESTS AT 839.85 TONNES…ABSOLUTE FRAUD!

August 7/ WITH GOLD UP $31.00//A GOOD PAPER DEPOSIT OF 1.86 TONNES OF GOLD INTO THE GLD INVENTORY//INVENTORY RESTS AT 836.92 TONNES

AUGUST 6.2019: WITH GOLD UP $7.85 A STRONG DEPOSIT OF 4.50 TONNES OF PAPER GOLD INTO THE GLD LATE LAST NIGHT/INVENTORY RESTS AT 835.16 TONNES

AUGUST 5/2019//WITH GOLD UP $18.80/A STRONG DEPOSIT OF 2.94 TONNES OF PAPER GOLD INTO THE GLD/INVENTORY RESTS AT 830.76 TONNES.

AUGUST 2/2019: WITH GOLD UP $25.20: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 827.82 TONNES

AUGUST 1/2019: WITH GOLD DOWN $4.90 TODAY: TWO TRANSACTIONS: i) A PAPER WITHDRAWAL OF 1.47 TONNES (USED IN THE RAID THIS MORNING)/ and ii) A PAPER DEPOSIT OF 4.40 TONNES THIS AFTERNOON!/INVENTORY RISE TO 827.82 TONNES

JULY 31/WITH GOLD DOWN 3.90 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 824.89 TONNES

JULY 30//WITH GOLD UP $9.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 824.89 TONNES

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

AUGUST 29/2019/ Inventory rests tonight at 882.41 tonnes

 

 

*IN LAST 653 TRADING DAYS: 52.97 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 553- TRADING DAYS: A NET 113.68 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

end

 

Now the SLV Inventory/

AUGUST 29/WITH SILVER DOWN 13 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.714 MILLION OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 388.154 MILLION OZ/

AUGUST 28/WITH SILVER UP 19 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 385.440 MILLION OZ/

AUGUST 27/WITH SILVER UP 52 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 385.440 MILLION OZ//

AUGUST 26/WITH SILVER UP 23 CENTS TODAY: A BIG  CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 1.59 MILLION OZ INTO SLV INVENTORY///INVENTORY RESTS AT 385.440 MILLION OZ//

AUGUST 23/WITH SILVER UP 37 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 383.850 MILLION OZ//

AUGUST 22/WITH SILVER DOWN 11 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 3.696 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 383.850 MILLION OZ//

AUGUST 21/WITH SILVER UP 1 CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154 MILLION OZ/

AUGUST 20.WITH SILVER UP 20 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154 MILLION OZ//

AUGUST 19/WITH SILVER DOWN 21 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154 MILLION OZ/

AUGUST 16/: WITH SILVER DOWN 9 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154  MILLION OZ//

AUGUST 15/2019 WITH SILVER DOWN 2 CENTS: ANOTHER BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WHOPPING 3.977 MILLION OZ PAPER DEPOSIT/INVENTORY RESTS AT 380.154 MILLION OZ/

AUGUST 14/2019 WITH SILVER UP 27 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 4.538 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 376.177 MILLION OZ//

AUGUST 13/2019: WITH SILVER DOWN 9 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 6.082 MILLION OZ///INVENTORY NOW RESTS AT 371.637 MILLION OZ

AUGUST 12/2019: WITH SILVER  UP 11 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 365.557 MILLION OZ.

AUGUST 9/2019//WITH SILVER UP 2 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 2.245 MILLION OZ INTO THE SLV INVENTORY/INVENTORY ADVANCES 365.557 MILLION OZ

AUGUST 8/WITH SILVER DOWN 23 CENTS: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT: 1.409 MILLION OZ INTO INVENTORY///INVENTORY RESTS AT 363.311 MILLION OZ//

AUGUST 7/WITH SILVER UP 74 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 361.907 MILLION OZ/

AUGUST 6/ WITH SILVER UP 5 CENTS: TWO TRANSACTIONS: A HUGE PAPER DEPOSIT OF 2.34 MILLION OZ WAS DEPOSITED INTO THE SLV LATE LAST NIGHT: THEN A HUGE 2.994 MILLION OZ OF A PAPER DEPOSIT THIS AFTERNOON: INVENTORY RESTS AT 361.907 MILLION OZ

AUGUST 5.2019: WITH SILVER UP 12 CENTS A TINY 142,000 OZ WITHDRAWAL AND THAW AS TO PAY FOR FEES//INVENTORY RESTS AT 356.573 MILLION OZ..

AUGUST 2/2019: WITH SILVER UP 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 356.715 MILLION OZ/

AUGUST 1//WITH SILVER DOWN 23 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 356.715 MILLION OZ//

 

JULY 31/WITH SILVER DOWN 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 356.715 MILLION OZ//

JULY 30/2019: WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 356.715 MILLION OZ//

 

AUGUST 29/2019:

 

 

Inventory 388.154 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.05/ and libor 6 month duration 2.04

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

G0LD LENDING RATE: – .01

 

XXXXXXXX

12 Month MM GOFO
+ 1.89%

LIBOR FOR 12 MONTH DURATION: 1.95

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.06

end

 

 

end

 

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

Gold Reaches New Record Highs In GBP at £1,272 and EUR at €1,399 as Johnson Suspends UK Parliament

* UK political chaos, Brexit concerns and flight to safety propel gold in sterling and euros to new record nominal highs

* Gold priced in sterling and euros soared to record highs today at £1,272 and €1,399 per ounce, spurred by increasing fears of a disorderly British exit from the European Union as PM Johnson suspended the UK parliament

* Gold priced in the British currency has rocketed 34% in 12 months, beating its previous record of 1,204.63 pounds set at the height of the global financial crisis in 2011

* Silver has surged again in pounds and euros and is now at £15.20 and €16.80 per ounce

Gold reaches new record high of £1,271.82

News and Commentary

Gold steadies near six-year ‘peak’, silver jumps as growth risks persist

Gold prices tick up on recession fears, trade uncertainty

China sends fresh troops into Hong Kong as military pledges to protect ‘national sovereignty’

Dalio Says Central Banks Are Losing Ability to Reverse Downturns

Mnuchin Says Ultra-Long Bonds (50 or 100-years) Under ‘Very Serious Consideration’

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

28-Aug-19 1541.75 1537.15, 1263.31 1258.77 & 1389.89 1387.43
27-Aug-19 1531.85 1532.95, 1250.91 1247.51 & 1378.97 1380.88
26-Aug-19 UK Bank Holiday
23-Aug-19 1495.50 1503.80, 1224.37 1228.91 & 1351.48 1357.63
22-Aug-19 1498.70 1502.05, 1234.63 1225.97 & 1351.98 1354.10
21-Aug-19 1499.65 1503.25, 1235.41 1238.53 & 1351.48 1354.43
20-Aug-19 1502.65 1504.55, 1242.69 1239.60 & 1356.44 1357.86
19-Aug-19 1499.35 1496.60, 1236.66 1235.29 & 1350.76 1348.89

Listen and Watch Jim Rogers Interview Here

Click here to listen to the latest GoldCore Podcast

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

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

The New York Sun weighs in on the Dudley affair

(New York Sun//GATA)

New York Sun: The right road to ending the trade war

 Section: 

From The New York Sun
Wednesday, August 28, 2019

The summer squall over a suggestion that the Federal Reserve join the resistance against President Trump is certainly music to our ears. That’s because the specter of a self-financed agency of the American government running a campaign to defy the voters will help put the debate over monetary reform into sharp relief. And none too soon, in the view of The New York Sun.

This contretemps was touched off by a former president of the New York Fed, William Dudley. Writing for Bloomberg, Mr. Dudley suggests the central bank should “refuse to play along” with “President Donald Trump’s trade war” with Communist China. “There’s even an argument,” he writes, “that the election itself falls within the Fed’s purview.” He wants the Fed to explicitly oppose Mr. Trump in 2020. …

… 

What is so horrifying about Mr. Dudley’s demarche, at least in our view, is not that he is suggesting the politicization of monetary policy. Our view is that monetary policy is inherently political, a view that has been articulated by Mr. Trump’s prospective Fed nominee, Judy Shelton. No, what’s so horrifying about Mr. Dudley’s idea is that it is so contrary to the Constitution.

That parchment doesn’t grant any monetary powers to the Fed. The central bank didn’t exist when the Constitution was framed. When it was framed, it granted all of America’s monetary powers — to tax, spend, borrow on the credit of the United States, coin money, regulate its value and that of foreign coin, and fix the standard of weights and measures — to the Congress. …

… For the remainder of the commentary:

https://www.nysun.com/editorials/the-right-road-to-ending-the-trade-war/…

end

Peter Grandich writes that now it is easy to invest in gold as the manipulators are in serious troube

(Peter Grandich/GATA_)

Peter Grandich: The easy part of investing in gold is now behind us

 Section: 

1:20p ET Wednesday, August 28, 2019

Dear Friend of GATA and Gold:

Our friend market analyst Peter Grandich writes this week that “the easy part” of investing in the gold sector “is now over” and volatility will increase and shake people out even as the monetary metal retains “hundreds of dollars more of upside potential.”

Grandich also praises GATA for sticking with its campaign against gold market manipulation when the respectable commentariat was ridiculing such complaints. Now that so much manipulation is acknowledged, he wonders where the apologies are.

Grandich’s analysis is headlined “Gold — The Easy Part Is Now Behind Us” and it’s posted at his internet site here:

http://petergrandich.com/2019/08/27/gold-the-easy-part-is-now-behind-us/

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

end

For those of you who are looking for answers on the gold/silver manipulation how about attending this year’s GATA conference

(GATA/Chris powell)

This year more than ever, gold and silver investors should join GATA in New Orleans

 Section: 

2:20p ET Wednesday, August 28, 2019

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy and your secretary/treasurer again will be speaking at the New Orleans Investment Conference this year, and in the letter below the conference’s organizer, Gold Newsletter Editor Brien Lundin, explains why you should join us there.

The New Orleans Investment Conference is probably the most serious financial conference in the United States, even as it is held in what may be the country’s most fun and interesting city. Because of the conference, your secretary/treasurer has been there many times and always looks forward to returning for the beauty, history, food, and atmosphere of the place.

… 

Indeed, the city itself competes heavily with the conference for your attention, so if you’re able, it’s good to give yourself an extra couple of days there.

The New Orleans conference has a long history of concentration on the monetary metals, and now that infinite money and devaluation have broken out among central banks and the monetary metals are on the verge of regaining their rightful places in the world financial system, this year more than ever New Orleans will be where gold and silver investors will want to be.

Registration for the conference entails a substantial expense, but as Brien explains below, if you register quickly you’ll enjoy a serious discount along with extra services at no extra cost and a money-back guarantee in case you don’t profit from attending.

Additionally, if you register using the internet link at the bottom of Brien’s letter, the conference will kindly pay a commission to GATA, which will diminish our fundraising appeals in the future.

So please consider joining us in New Orleans.

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

* * *

The Only Certain Investment
in an Uncertain World

By Brien Lundin
New Orleans Investment Conference
Monday, August 5, 2019

I’m going to hand you the keys to preserving everything you’ve worked for during the turmoil just ahead — to potentially multiplying your wealth during this oncoming crisis and essentially giving you $400 to accept this vital information.

You see, for well over four decades — through some of the most turbulent and dangerous times in investing — there has been no better place to find profits and safety than the legendary New Orleans Investment Conference.

And here’s even better news: This year’s New Orleans Conference is destined to be one of the most rewarding in its 45-year history.

Why? Because while most investors are being whipsawed by President Trump’s tweets and Federal Reserve tea leaves, those coming to New Orleans will get the inside track on a few irreversible trends that will create fortunes.

Let’s take a look at them.

Gold: “Easy money forever” means much higher prices.

The New Orleans Conference has led more investors to profits in gold than any other event in the world.

In fact, our organization was instrumental in getting gold ownership legalized in 1974, and our first conference was specifically held to teach investors how to buy the metal.

Today finds central bankers locked into an “easy money forever” mode that is extremely bullish for gold.

This is no idle speculation: The Fed has completely switched from raising rates to cutting rates.

This will propel metals prices much higher — so we’re once again bringing the world’s most successful gold experts to New Orleans.

You’ll get the top strategies and picks of Rick Rule, Peter Schiff, Brien Lundin, Adrian Day, Brent Cook, Byron King, GATA’s Bill Murphy and Chris Powell, Gerardo Del Real, Gwen Preston, Lobo Tiggre, Thom Calandra, Omar Ayales, Mary Anne and Pamela Aden, Dana Samuelson, and more.

Geo-political and market trends that could make or break you.

From Lady Margaret Thatcher to Ayn Rand to Henry Kissinger to Milton Friedman to Alan Greenspan to Ron Paul and more, the New Orleans Conference has a long history of attracting insightful and even legendary figures on the geopolitical and economic stages.

This year is no exception as we’re bringing in Trump economic adviser Stephen Moore, controversial political commentator Kevin D. Williamson, famed contrarian Doug Casey, Fed expert Danielle DiMartino Booth, respected contrarian advisor Peter Boockvar, popular trading authority Dennis Gartman, plus renowned experts like Adrian Day, Mike Larson, Mark Skousen, Robert Prechter, Steven Hochberg. and more.

Green fever in cannabis.

Fortunes are being made right now in the booming cannabis sector, but many investors are wondering how to get involved — and how to avoid the inevitable busts in this quickly evolving industry.

Have no fear, as New Orleans 2019 is featuring the experts who are finding the biggest winners, including Sean Brodrick of Marijuana Millionaires, Matt Carr of the Oxford Club, and Nick Hodge of the Outsider Club.

They’ll not only show you the specific cannabis subsectors that will be the long-term winners, but they’ll also reveal their hottest picks in this red-hot arena.

The future is now: Artificial intelligence, energy metals, fintech, and other juggernaut trends.

Artificial intelligence, the electrification of transportation, new battery technology, blockchain, crypto, clean energy, e-sports, income-producing real estate, medtech, streaming media, 5G, and more — these are creating huge opportunities for investors who can stay on the cutting edge.

Have no fear: Technology financier Ross Gerber, plus the world’s leading energy metals expert, Simon Moores and the Oxford Club’s tech expert, Matt Carr, will explore all these powerful trends at New Orleans 2019.

With Russ Gray and Robert Helms (the acclaimed “Real Estate Guys”), Chris Martenson and Adam Taggart of Peak Prosperity, and Nick Hodge running our inaugural “Next Big Thing(s)” panel, you’ll get insights into key opportunities that can both make fortunes and protect them.

Our quadruple-your-money guarantee — plus a $400 discount.

We will refund your entire registration fee if you find the conference doesn’t provide profits more than quadruple your cost to attend over the first six months following the event.

You can’t lose.

Correction: You can lose — if you don’t act immediately to secure your place at New Orleans 2019.

But here’s the problem: Our registration fee is about to soar, and at some point we’ll likely completely sell out.

The good news: If you register right now, you’ll save up to $400 from our full rate.

Not only that, you’ll also qualify for a free Gold Club upgrade.

Gold Club status gives you free coffee service throughout the day, an exclusive viewing area just for you, intimate Q&A sessions with many of our most popular speakers, free reports, and more.

It sells for $189, but if you register now you’ll get it for no extra charge at all.

All of this is guaranteed only if you register during this special offer period.

In the days ahead hundreds of thousands of investors will discover how exciting and valuable this year’s New Orleans Conference will be.

I can’t guarantee that any of these discounts, guarantees, or free benefits — or even a hotel room — will be available for much longer.

So if you hope to get in at the current early-bird rate and enjoy our quadruple-your-money-or-it’s-free guarantee and free Gold Club status, you’ll need to call us at 1-800-648-8411 or click on the link below to learn more and register now.

Please don’t delay. I look forward to seeing you down here in New Orleans!

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, New Orleans Investment Conference

* * *

To learn more or register, call toll-free 800-648-8411 or visit:

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

* * *

Join GATA here:

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

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

end

Sure!! Mnuchin says the USA has no plans for intervention on the dollar. However tomorrow is a different day.

(Bloomberg/GATA)

Treasury’s Mnuchin says U.S. plans no intervention on dollar — not tonight, anyway

 Section: 

Mnuchin Says U.S. Doesn’t Intend to Intervene on Dollar for Now

By Saleha Mohsin
Bloomberg News
Wednesday, August 29, 2019

Treasury Secretary Steven Mnuchin said that the Trump administration doesn’t intend to intervene in the dollar market right now, but signaled he’d prefer any future move be coordinated with the Federal Reserve and global allies.

The Treasury Department has “no intention of intervention at this time. Situations could change in the future but right now we are not contemplating an intervention,” Mnuchin said Wednesday in an interview with Bloomberg News in Washington.

… 

The Trump administration has considered measures to counter the dollar’s strength, including direct intervention. Officials said last month that intervention had been ruled out for the time being, though President Donald Trump has continued to lament the greenback’s strength. …

For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-08-28/mnuchin-says-u-s-does…

* * *end

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.1476/ GETTING VERY DANGEROUSLY PAST  7:1

//OFFSHORE YUAN:  7.1486   /shanghai bourse CLOSED DOWN 2.84 POINTS OR 0.10%

HANG SANG CLOSED UP 88.02 POINTS OR 0.34%

 

2. Nikkei closed DOWN 18.49 POINTS OR 0.09%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 98.31/Euro FALLS TO 1.1074

3b Japan 10 year bond yield: FALLS TO. –.29/ !!!!(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:: 56.16 and Brent: 60.50

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.71%/Italian 10 yr bond yield DOWN to 0.96% /SPAIN 10 YR BOND YIELD UP TO 0.08%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.67: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.64??

3k Gold at $1536.95 silver at: 18.51   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 12/100 in roubles/dollar) 66.68

3m oil into the 56 dollar handle for WTI and 60 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 106.25 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 .9826 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0883 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 0.71%

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 1.49% early this morning. Thirty year rate at 1.96%

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

6.  TURKISH LIRA:  UP  TO 5.8357.. GETTING CLOSER TO 6.1 WHICH IS DEADLY TO THEM..

Global Markets Soar After China Hints At Trade Talk Optimism

It is a sea of green across global markets as European stocks and US equity futures rallied sharply and Asian shares pared earlier declines, after after comments from China that Beijing is in “effective contact” with the US on trade and that they are discussing the upcoming September talks. The Chinese Yuan soared while Treasury yields jumped.

 

The bullish sentiment emerged after China’s Commerce Ministry spokesman Gao Feng said that both US and China trade teams have been in touch, adding that China has ample retaliatory measures and are lodging solemn representations with the US over the additional tariffs, both sides are discussing the September talks and if China officials go the the US then there should be an environment created for progress in the negotiations; calls on the US to cancel the planned additional tariffs to avoid a trade war escalation.

As a result, S&P 500 contracts turned sharply higher, rising 0.7% alongside the 1% move higher in Stoxx Europe 600 Index, just around 3am when China’s commerce ministry spokesman said escalating the trade war won’t benefit either side, and that it was more important to discuss removing the extra duties.

The comments had come after a choppy Asian session. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.15%, Singapore shares hit eight-month lows and Japan’s Nikkei ended fractionally lower.

European bourses are trading at session highs in-spite of a relatively lacklustre open, thanks to the Chinese comments. However, while the mark

et reaction does not reflect this there were some less positive comments as well particularly that China has ample retaliatory measures. Looking ahead, on the US-China front markets are largely awaiting an update on the timeline for Septembers talks. Returning to Europe, the FTSE MIB is the notable outperformer (+1.9%) as the bourse derives strength from the increasing prospect of an Italian coalition forming and thus the budget passing. Similarly to the indices, sectors are all in the green with no notable under/outperformer.

Markets aside, the European economy was hit again as Germany’s labor market looks like it’s starting to crack under the weight of a manufacturing recession, raising the pressure for the government to respond with fiscal stimulus. The number of people out of work increased by 4,000 to 2.29 million in August, the fourth straight month that joblessness failed to drop after six years of almost continuous decline. The unemployment rate remained at 5%, near a record low.

Most European and U.S. government bond yields traded higher on the back of this improved risk sentiment, with BTPs a notable exception. Italian bonds added to the impressive rally in recent days as a new government looks like it will be formed. 10-yr BTP yield trades at record low of 0.93%. That was after the country’s 5-Star Movement and opposition Democratic Party said they would try to form a coalition, setting aside years of hostility to avert a snap election and the economic uncertainty that comes with it.

 

The two sides still need to agree on a shared policy platform and a team of ministers, but 5-Star chief Luigi Di Maio and his PD counterpart Nicola Zingaretti said they had pledged to find common ground for the good of the country. “We love Italy and we consider it worthwhile to try this experience,” Zingaretti told reporters. Speaking shortly afterwards, Di Maio said: “We made commitments to the Italians…and come what may we want to fulfil them.”

The 10-year Japanese government bond yield had dipped 1 basis point to minus 0.285% overnight too, which is just above its record low of minus 0.300% touched in 2016.

“Falls in global bond yields reflect growing concerns that long-term global growth is slowing down on U.S.-China tensions and worries over subsequent global supply chain disruptions,” said Tomoo Kinoshita, global market strategist at Invesco Asset Management in Tokyo. “Stock markets on the other hand are supported in the near-term by hopes of more stimulus, notably from the Federal Reserve and the European Central Bank,” he said.

Reflecting underlying nervousness, the Merrill Lynch move index, a gauge of investors’ expectations on how volatile U.S. bonds will be, has risen back near three-year highs marked earlier this month.

In FX, there was little reaction from the euro but there was barely any currency market action generally. The Bloomberg USD index was little changed, with CAD leading G-10 gain, NOK lagging, but most G-10 pairs trade in tight ranges. The Japanese yen was a touch higher heading for its biggest monthly rise since May, while sterling was flirting with a January 2017 low of $1.2015 against the dollar after Prime Minister Boris Johnson’s plan on Wednesday to suspend Britain’s parliament increased no-deal Brexit nerves.

China’s yuan initially dipped for an 11th straight session although a firmer-than-expected central bank fixing for the 7th session helped stem deeper losses and against a basket of currencies. The People’s Bank of China set its daily fixing at 7.0858 per greenback, stronger than the average estimate of 7.1085 from a survey of 20 traders and analysts. As a result, the Bloomberg replica of the CFETS RMB Index, which tracks the yuan versus a basket of trading partners’ currencies, rose for the first time in week. However, the far sharper move for the yuan took place in afternoon trading when the currency reversed a drop against the dollar, rising as much as 0.3%, after China signaled it wouldn’t immediately retaliate against the latest U.S. tariff increase announced by President Donald Trump last week.

The MSCI emerging market currency index was also at its lowest levels since mid-November, having fallen 0.9% so far this week and set for its biggest monthly fall in more than seven years. The latest hit came in Argentina as it said it wanted to restructure a large chunk of its bonds by extending their maturities and to “re-profile” the maturities of debt owed to the IMF under a $57 billion standby agreement. The battered peso took another hammering on Wednesday, even though the central bank intervened heavily in the foreign exchange market for a second consecutive day.

Argentine assets have been slammed since business-friendly President Mauricio Macri was trounced in primary elections by centre-left Peronist challenger Alberto Fernandez: “President Macri instructed me to solve the short-term problem to guarantee electoral stability, but also in the medium- and long-term so as not to leave a problem for the person who follows, be it he or another candidate,” Argentina’s Treasury Minister, Hernan Lacunza, said.

In geopolitical news, Iran’s Foreign Minister Zarif said it will not be possible for Iran to engage with US unless they stop imposing a war and conducting economic terrorism, while he added the US must observe 2015 nuclear deal if it wants to meet for talks. Elsewhere, Turkey President Erdogan spoke with US President Trump via telephone regarding latest developments in Syria and bilateral issues, while Erdogan said he is in agreement with US which is a correct step towards ‘safe zone’ in northeast Syria. In other news, Russia and Turkey are considering creating a new fighter jet, according to Russian officials.

In commodities, WTI edges slightly higher ($56.07) while Brent slips slightly lower. Precious metal investors were still on a quest to buy safer assets: gold rose as high as $1,543 per ounce, near six-year highs of $1,556.1 set earlier in the week, while silver rose 1.2% to $18.55 per ounce which is just shy of a 2017 peak of $18.65 an ounce.

Market Snapshot

  • S&P 500 futures up 0.6% to 2,907.25
  • STOXX Europe 600 up 0.7% to 375.61
  • MXAP down 0.01% to 151.08
  • MXAPJ up 0.2% to 488.03
  • Nikkei down 0.09% to 20,460.93
  • Topix down 0.01% to 1,490.17
  • Hang Seng Index up 0.3% to 25,703.50
  • Shanghai Composite down 0.1% to 2,890.92
  • Sensex down 0.5% to 37,257.04
  • Australia S&P/ASX 200 up 0.1% to 6,507.40
  • Kospi down 0.4% to 1,933.41
  • German 10Y yield rose 2.0 bps to -0.694%
  • Euro up 0.01% to $1.1079
  • Brent Futures down 0.2% to $60.36/bbl
  • Italian 10Y yield fell 9.2 bps to 0.702%
  • Spanish 10Y yield rose 2.7 bps to 0.092%
  • Brent Futures down 0.2% to $60.36/bbl
  • Gold spot up 0.1% to $1,540.74
  • U.S. Dollar Index up 0.03% to 98.24

Top Overnight News

  • British Prime Minister Boris Johnson’s move to suspend parliament and come good on his promise to avoid any more delays to Brexit has set the clock running for his opponents to thwart him; the question is whether they can do it in time
  • The Trump administration is giving careful thought to selling something Wall Street may not be ready to buy: ultra-long debt. Treasury Secretary Steven Mnuchin said that offering bonds with maturities of 50 to 100 years is under “very serious consideration,” with officials conducting an intensive review
  • President Sergio Mattarella tapped Giuseppe Conte, Italy’s outgoing prime minister, to iron out the differences between the Five Star Movement and the center-left Democratic Party and form a working coalition that can overcome the groups’ longstanding differences
  • Germany’s labor market looks like it’s starting to crack under the weight of a manufacturing recession, raising the pressure for the government to respond with fiscal stimulus
  • China’s economy slowed further in August as weak domestic conditions, intensifying tensions with the U.S. and worsening global trade all combined to undermine the outlook
  • Mnuchin said U.S. trade officials expect Chinese negotiators to visit Washington, but wouldn’t say whether a previously planned September meeting would take place. He also said U.S. doesn’t intend to intervene on dollar for now
  • Italy’s acting prime minister Giuseppe Conte will be tasked with forming a government supported by the Five Star Movement and the Democratic Party, two long-time rivals who have little more in common
  • Argentina’s government is seeking to extend maturities on tens of billions of dollars of debt and delay repayments to the IMF after a collapse in the peso and its bonds
  • BOJ board member Hitoshi Suzuki stressed the need for caution about further monetary stimulus as other global central bankers act to counter an economic slowdown
  • Low inflation means the U.S. central bank can let a hotter economy draw more people into the labor force, San Francisco Fed President Mary Daly said

Asian equity markets traded mostly lower after failing to sustain the positive, but quiet lead from their counterparts in the US where energy outperformed and the DJIA led the majors higher to reclaim 26000. ASX 200 (+0.1%) and Nikkei 225 (-0.1%) were subdued with focus in Australia centred on earnings including Woolworths. Nonetheless, the downside for the broader market was limited amid gains in mining names with gold lifted by a mild safe-haven bid and after the energy complex benefitted from the recent bullish inventory data, while the Japanese benchmark gave up initial gains after succumbing to the weight of the flows into JPY. Hang Seng (+0.4%) and Shanghai Comp. (-0.1%) were also lacklustre after PBoC inaction resulted to a drain on liquidity and as China plans tighter regulations on share pledging, as well as to reduce risks for small and medium banks. The losses in Hong Kong have also been a function of weak earnings releases including China Construction Bank which was the first of the Big 4 to report and slightly missed on its FY net. Finally, 10yr JGBs received a lift from the downbeat risk tone and after similar advances of their counterparts in US where there was a strong 5yr auction and the yield inversion briefly widened again, while stronger 2yr JGB auction results also added to the upside.

Top Asian News

  • BOJ’s Suzuki Signals More Caution Toward Additional Stimulus
  • H.K. Police Confirm Ban on Saturday Protest March
  • China’s Policy Bank Bonds Fall as Banks Face New Restrictions

European bourses are at present firmly in the green [Euro Stoxx 50 +1.4%] in-spite of a relatively lacklustre open, until comments from China’s Commerce Ministry that the US and China sides have been in touch and that they are discussing the upcoming September talks sparked a general improvement in risk sentiment. However, while the market reaction does not reflect this there were some less positive comments as well particularly that China has ample retaliatory measures. Looking ahead, on the US-China front markets are largely awaiting an update on the timeline for Septembers talks. Returning to Europe, the FTSE MIB is the notable outperformer (+1.9%) as the bourse derives strength from the increasing prospect of an Italian coalition forming and thus the budget passing. Similarly to the indices, sectors are all in the green with no notable under/outperformer. In terms of individual movers, Micro Focus (-22.4%) are at the bottom of the table after cutting their FY19 outlook. At the other end of the spectrum are Eurofins Scientific (+7.4%) and Bouygues (+5.6%) both post earnings where the latter also confirmed their FY19 targets. Elsewhere, UBS (+1.6%) are supported after hiring Iqbal Khan, a former Credit Suisse executive.

Top European News

  • Japan’s DIC Corp. to Buy BASF’s Pigments Unit for $1.1 Billion
  • Italy Gives ‘Mr. Nobody’ Second Shot at Forging Stable Coalition
  • Ajax Shares Rise After Win Secures Champions League Group Spot
  • Miners and Steelmakers Jump After China’s Soft Tone on Trade

In FX, the broad Dollar remains mixed and rangebound, with the DXY still floating above 98.000 amidst relatively benign month end selling signals for portfolio rebalancing countered by weakness/underperformance in currency counterparts. However, risk sentiment in general has been boosted by latest updates from China’s Ministry of Commerce confirming that trade teams from Beijing and Washington have been conversing and face-to-face talks in the US next month are contingent on the right atmosphere to nurture constructive negotiations. The index is currently hovering just shy of 98.322 vs 98.156 at one stage.

  • AUD/CAD/NZD – All now firmer than their US peer having underperformed prior to the aforementioned US-China trade update, with the Aussie paring losses post an unexpected drop in Q2 Capex and the Kiwi rebounding from lows hit in the aftermath of ANZ’s August business sentiment survey showing a further deterioration in already weak morale, as expectations fell below zero. Similarly, the Loonie has rebounded from worst levels alongside the Yuan and now eyeing Canadian data for some independent impetus later (Q2 current account and June average earnings). Aud/Usd, Nzd/Usd and Usd/Cad currently around 0.6745, 0.6345 and 1.3285 vs circa 06715, 0.6305 and 1.3320 at the other extremes.
  • CHF/JPY/GBP/EUR – In stark contrast to the recoveries noted above, safe-haven unwinding has pushed the Franc and Yen down further from their recent peaks, with Usd/Chf and Usd/Jpy nudging up towards 0.9850 and 106.35, and the latter through 10/21 DMAs in the 106.20-21 area that could be pivotal from technical perspective. Meanwhile, the Pound is straddling 1.2200 following all the midweek drama in Whitehall and the Euro is weighing up softer Eurozone inflation against firmer GDP and mixed sentiment indicators with little reaction/traction via confirmation that Italy’s Conte has been given the mandate to try again as PM, albeit in charge of a different coalition. Indeed, Eur/Usd has slipped a fraction deeper below 1.1100, but holding above bids seen at 1.1050 and ahead of the 2019 low (1.1027).
  • EM – Although risk appetite has improved overall, pre-long holiday weekend and early positioning for the final trading session of August appears to be taking its toll on the Turkish Lira, while the Argentine Peso seems destined to come under even more pressure after the Government unveiled its debt rescheduling plan. Usd/Try hovering just under 5.8300 at present and Usd/Ars closed at 57.9400 for reference.

In commodities, WTI and Brent are in positive territory thus far, with the complex recovering somewhat from the downturn in sentiment overnight on this mornings aforementioned US-China updates. Specific newsflow for the complex has been light, though recent reports have indicated that the Adrian Dary is unloading its crude cargo in Turkey. Turning to metals, where spot gold remains comfortably above the USD 1500/oz mark but has drifted somewhat in-line with the improvement in risk sentiment thus far; to a session low of USD 1536/oz. Conversely, copper prices have derived considerably upside from the risk-on tone though prices remain constrained by the USD 2.60 mark.

US Event Calendar

  • 8:30am: Wholesale Inventories MoM, est. 0.15%, prior 0.0%
  • 8:30am: GDP Annualized QoQ, est. 2.0%, prior 2.1%
  • 8:30am: Core PCE QoQ, est. 1.8%, prior 1.8%
  • 8:30am: Advance Goods Trade Balance, est. $74.4b deficit, prior $74.2b deficit, revised $74.2b deficit
  • 8:30am: Retail Inventories MoM, est. 0.3%, prior -0.1%, revised -0.3%
  • 8:30am: Personal Consumption, est. 4.3%, prior 4.3%
  • 8:30am: Initial Jobless Claims, est. 214,000, prior 209,000; Continuing Claims, est. 1.69m, prior 1.67m
  • 10am: Pending Home Sales MoM, est. 0.0%, prior 2.8%; YoY, est. 1.8%, prior -0.6%

DB’s Jim Reid concludes the overnight wrap

A memorable date today for me for two reasons. Firstly, 25 years ago on this day one of the most important albums in my life was released – namely “Definitely Maybe” by Oasis. Time flies. It shaped my final year at university and the next few years thereafter. There aren’t many better songs than “Live Forever” or “Slide Away.” Secondly, two years ago an event occurred that shaped my life in a much more challenging way and I’m fortunate it didn’t send me down the path of “Cigarettes and Alcohol.” Yes my identical twin boys Jamie and Eddie are two today! They’re off to Peppa Pig World to celebrate. I genuinely think I have the better deal by being in the city today.

August 2019 continues to throw up lots of interesting themes for those in the city with yesterday seeing the first ever print below 1% for Italian 10yr government bonds and a step towards a constitutional crisis here in the UK as PM Boris Johnson announced plans to effectively prorogue parliament from September 10th to October 14th when the government will hold a Queen’s Speech. As DB’s Oli Harvey noted in his report yesterday, this limits the ability of MPs to table legislation to prevent a no deal Brexit and signals that the Johnson government may be prepared to break constitutional precedent to take the UK out of the EU without a deal. However, Oli also highlights that at the same time, it could crystallise opposition to a no deal Brexit next week in the House of Commons leading to a confidence vote and a new unity government.

The reality now is that under the new schedule, UK parliament has just under a week in early September followed by just over a week in late October to prevent a no deal outcome. Assuming the timings are too tight and therefore legislation to block a no deal Brexit fails, the only option left for MPs would be a motion of no confidence in the government – either next week or in the last two weeks of October. Oli notes that much will now depend on the strategy taken by anti no deal MPs over the next two weeks. Our house view is still 50/50 for a no deal Brexit with the most likely path to preventing one being the formation of a national unity government either in early September or late October. There’s much more on the move in Oli’s note here including further scenario probabilities. My take on this is that it is partly a political move aimed at shoring up the support of leavers in the country and removing the need for such minded voters to support the Brexit Party at a General Election. The gamble is that the remain vote (probably also solidified the other way by this decision) would be more split across other parties (especially Labour and the Liberal Democrats). The more Parliament tries to blocks the move the more it could shore up support for Boris Johnson amongst the “leave” vote ahead of what might be a General Election before year-end. A fascinating and turbulent two months awaits us here in the UK.

In terms of markets the initial impact on Sterling was a drop of -1.08% from the highs to hit an intraday low of $1.216. However it did recover through the afternoon to end just -0.63% lower at $1.221 – not far off where it is in Asia this morning.

From a constitutional crisis to a political crisis which is at least showing signs of coming to a more peaceful end for now. In Italy it was another good day for Italian bonds as the PD confirmed that they support the current attempt to form a new government with Conte as premier. While the details over the exact coalition makeup is uncertain, President Mattarella did give Conte a fresh mandate to form a government last night. Markets took the news as broadly positive, with 10y BTPs at one stage dipping below 1% for the first time ever, before ultimately closing at 1.045% and -9.4bps on the day. A relentless move lower for bonds in Europe also saw Bunds close -2.0bps lower at -0.714% (a new all-time record after 8 days without one!) meaning the BTP-Bund spread is now at 176bps. At the end of May that spread was as much as 287bps so it’s been a remarkable rally. Elsewhere, Gilts closed -6.0bps lower at 0.442% as they tracked the move for Sterling. Across the pond Treasury yields edged lower again for much of the day but eventually moved higher on comments from the US Treasury Secretary Steven Mnuchin that issuing ultra-long debt is “under very serious consideration”. Yields on 10yr USTs (+0.8bps) ended at 1.481% while 30yr yields which were at one time trading at a fresh all-time low of just 1.942%, moved up +2.1bps to end the day at 1.972%. Meanwhile the 2s10s curve did steepen on Mnuchin’s comments to -2.2bps. However Treasury yields are again falling this morning with 10yrs down (-2.6bps) to 1.455% and just 9.7bps from all-time lows while the 30yr yield is down -4.5bps to an all-time low of 1.927%. The 2s10s curve has reversed much of the late steepening yesterday and is back down to -4.0bps this morning. Elsewhere oil rallied +1.82% yesterday after US inventories showed a -10mn barrel drawdown in crude stockpiles last week, which did appear to cap some of the move for bonds in the afternoon.

Overnight we’ve seen some fresh trade headlines which have highlighted the continued uncertain nature of the US-China trade talks. Firstly, the US Treasury Secretary Steven Mnuchin said that the US trade officials expect Chinese negotiators to visit Washington, but declined to say whether the September encounter would happen. He also added that “we will have a separate dialog and discussion on currency as part of the trade discussion but separate from the trade discussion,” and said, “we’ve had conversations with the IMF and directly with our counterparts in China, including the governor of the PBOC,” since the U.S. formally labeled China a currency manipulator on August 5. Separately, the White House trade adviser Peter Navarro said in an interview that market optimism on a US trade deal with China is neither misplaced nor well placed but “somewhere in the middle,” while adding that it’s “unlikely anything quick will happen,” from the talks because the U.S. is asking China to make big, structural changes. He also commented on the Fed, saying the Fed needs “to do its job and cut rates” in the next month or two. Elsewhere, Mnuchin said that the Trump administration doesn’t intend to intervene in the dollar market right now but added, “situations could change in the future but right now we are not contemplating an intervention.”

This morning in Asia markets are trading down with the Nikkei (-0.23%), Hang Seng (-0.36%), Shanghai Comp (-0.12%) and Kospi (-0.24%) all lower. In FX, the Japanese yen is trading up +0.189% this morning while the onshore Chinese yuan is trading flattish at 7.1667. Elsewhere, futures on the S&P 500 are down -0.33% while spot gold prices are up +0.33% to 1,544/ troy ounce.

We’ve also heard from the BoJ board member Hitoshi Suzuki overnight with him casting doubt on the stimulative effects of record-low Japanese government bond yields, while emphasizing the importance of monitoring their impact on financial stability. He further said that bank lending could also be hurt if rates are too low and added, “I think there’s a need to consider monetary policy more cautiously than we have so far.” 10yr JGBs yield are down -0.8bps this morning at -0.291% and just -0.4bps away from the September 2016 low of -0.295%.

Back to yesterday and equity markets were a bit more choppy as they sat in the shadows of the bond rally. Despite opening lower, the S&P 500 (+0.66%) ultimately finished higher. The energy sector (+1.40%) led gains, while other cyclical sectors gained as well. However the NASDAQ (+0.38%) and FANGs (+0.11%) indexes underperformed as tech struggled once more. On that, the Nikkei reported that Google was moving production of its Pixel smartphone out of China to Vietnam and plans to eventually move production of its US-bound hardware outside of China. Shares in Google closed +0.25% higher. As for trade headlines, there wasn’t much to report. Xinhau reported that China will start accepting waivers of additional tariffs between September 2 and October 18 which is perhaps a sign of flexibility from China and therefore slightly risk positive. From the US side, President Trump did tell reporters that he could do a deal, which would make him a “hero,” which was also, at the margin, a positive signal.

As for the data yesterday, there was very little to report. In Germany consumer confidence was unchanged in September at 9.7 while the July import price index reading was down a little more than expected at -0.2% mom. Meanwhile, the M3 money supply reading for the Euro Area was up +5.2% yoy, exceeding estimates for +4.7% and up from +4.5% in June. The only notable release in the US was the MBA mortgage index, which fell -6.3% last week. Given the recent collapse in rates, it’s somewhat worrying that mortgage activity hasn’t responded in a positive way.

On the Fed front, Richmond President Barkin spoke and gave a mostly balanced representation of the US economy. He said that “the US consumer appears to be very strong but business confidence appears to have weakened.” He explicitly said that he doesn’t know if he would support a rate cut in September, though in truth his opinion is not that important since he is not a voter. Fed fund futures continue to price in a near-certain rate cut next month, plus around a 12% chance for a larger, 50bps cut instead. We also heard from Kaplan and Daly overnight with both reinforcing last week’s message from central bank Chairman Jerome Powell that a September rate reduction is likely. Kaplan said, while consumer spending has been “strong,’’ the central bank needs to be “forward-looking’’ in setting interest rates and voiced concern that continued weakness in manufacturing would eventually seep into the jobs market, undermining consumer outlays. On dramatic decline in bond yields, Kaplan called it a “reality check” and attributed the decline in yields partly to global liquidity but added, “part of it is expectations of future growth have gotten a lot more pessimistic.”

Looking at the day ahead, this morning we’re due to get the final Q2 GDP revisions in France before August unemployment data is released in Germany and August confidence indicators due out for the Euro Area. This afternoon we’ll then get the August preliminary CPI release in Germany before all eyes turn to the second revision of Q2 GDP in the US. A reminder that the preliminary estimate showed growth of a stronger than expected +2.1%, with the consensus expecting a small roundown to +2.0% today. Also due out is the July advance goods trade balance, July wholesale inventories, latest jobless claims data and July pending home sales.

end

 

3A/ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.84 POINTS OR 0.10%  //Hang Sang CLOSED UP 88.02 POINTS OR 0.34%   /The Nikkei closed DOWN 18.49 POINTS OR 0.09%//Australia’s all ordinaires CLOSED UP .07%

/Chinese yuan (ONSHORE) closed UP  at 7.1476 /Oil UP TO 56.16 dollars per barrel for WTI and 60.50 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.1476 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.1486 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

Last night: getting scary!  Chinese troops and armored trucks enter Hong Kong under the pretext of a “planned garrison rotation”

(zerohedge)

Chinese Troops And Armored Trucks Enter Hong Kong Under Pretext Of “Planned Garrison Rotation”

Hong Kong watchers were startled, asking if “this was it”, when videos and images started emerging of Chinese troops and armored trucks entering Hong Kong.

Subsequent media reports, notably from the People’s Daily, suggested that this military maneuver which took place in the “wee hours of Thursday”, was due to the 22nd annual rotation of the People’s Liberation Army garrison in Hong Kong.

People’s Daily, China

@PDChina

The Garrison of the Chinese People’s Liberation Army conducted the 22nd rotation of its members in the wee hours of Thursday since it began garrisoning Hong Kong in 1997.

View image on TwitterView image on TwitterView image on Twitter

Local media reported that the move was routine, and approved by the Central Military Commission, representing a “normal routine annual rotation in line with the Law of the People’s Republic of China on Garrisoning the Hong Kong Special Administrative Region”, which stipulates that “the Hong Kong Garrison shall practice a system of rotation of its members.”

Still, one can’t help but wonder at the curious timing of the annual troop rotation, taking place just as Hong Kong protesters brace for even more demonstrations against China, and as Carrie Lam prepares to invoke an Emergency Regulations Ordinance, according to which “The HK government can legally take your property, force you to work for the benefit of the government, deport you (to China?)…and make anything they do legal.”

Kyle Bass

@Jkylebass

Anyone read the Emergency Regulations Ordinance that carrie lam(b) is considering invoking?! The HK government can legally take your property, force you to work for the benefit of the government, deport you (to China?)…and make anything they do legal 1/ https://www.elegislation.gov.hk/hk/cap241@2018-12-13T00:00:00?xpid=ID_1438402882346_001 

So is China’s troop deployment nothing but a “routine and planned” mission, or is China taking advantage of an simple pretext to beef up its HK presence ahead of what many have said will be critical clashes?  We’ll find out soon enough: one way or another Beijing will need to resolve the ongoing HK mutiny before the October 1, National Day of the PRC holiday, when Xi will be compelled to demonstrate to China (and the world) that he remains fully in control over Hong Kong

end

this caused the markets to rise as China makes an unexpected concession: they will hold off on trade retaliation.  They have run out of goods to tariff so they need a plan as to how to proceed against the Americans like  selling off its treasuries etc

(zerohedge)

China Makes Unexpected Concession: Will Hold Off On Trade Retaliation, US Visit Discussed

With Beijing rapidly running out of US imports to slap tariffs on, the Chinese government indicated on Thursday that it wouldn’t immediately retaliate against the latest US tariff escalation announced by President Trump a week agoBloomberg reports. Instead, it will be looking for ways to finally deescalate the trade conflict, which has dragged on for nearly 18 months.

The burst of optimistic rhetoric on both sides has helped lift stocks, with S&P 500 futures reversing earlier losses to rise as much as 0.7%.

 

But does this mean the trade war is over, and that Beijing will finally come to the table in earnest, ready to make the concessions that Washington demands? That’s doubtful.

 

They just need a little more time to devise a plan for exactly how they will retaliate. As we’ve mentioned in the past, Beijing has many alternatives, including ceasing purchases of Treasuries.

Commerce Ministry spokesman Gao Feng said during a regular briefing in Beijing that China has options to retaliate, but thinks it should discuss with Washington the possibility of removing new tariffs.

“The most important thing at the moment is to create necessary conditions for both sides to continue negotiations,” Gao said during a weekly briefing, adding that China was lodging “solemn representation” with the US.

However, Gao warned that China had “ample” retaliatory measures to retaliate if Washington eventually moved ahead with its tariffs.

Earlier this month, the US announced new tariff rates on $300 billion of Chinese goods that will come into effect in September and December. Beijing then retaliated last week, announcing its own higher import taxes.

Beijing said the hopes for progress depend on whether Washington can create “favorable conditions” for the upcoming talks in September, according to Reuters.

end

How on earth can the USA and China enter any trade deals with this going on:  Beijing condems Washington’s interference in the South China Seas

(zerohedge)

Beijing Condemns Washington’s Interference After Latest ‘Freeop’ In South China Sea

The endless back-and-forth of provocations between the US and China in the South China Sea continued apace on Thursday as Bejing condemned the latest US “freedom of navigation” operation near a set of disputed reefs in the South China Sea, according to the SCMP.

On Wednesday, the guided missile destroyer USS Wayne E. Meyer sailed within 12 nautical miles of Fiery Cross and Mischief reefs, the two biggest artificial islands – or, as Steve Bannon calls them, ‘stationary aircraft carriers’ – in the disputed Spratlys.

According to the SCMP, it was the first time an American warship had challenged two Chinese military outposts at once in a “freedom of navigation” operation. On Thursday, Senior Colonel Li Huamin, spokesman of the People’s Liberation Army’s Southern Theater Command, accused Washington of “acting as a hegemony in ignorance of the international laws and rules” and urged itto stop its “provocative actions” to avoid an “unpredictable incident.”

Suggesting that the mission almost resulted in a confrontation, Li said the PLA Navy and Air Force monitored and warned the destroyer, ultimately driving it out of Chinese territory.

Meanwhile, Reann Mommsen, a spokeswoman for US 7th Fleet, said US forces operated in the Indo-Pacific region on a daily basis, including in the South China Sea, and that these operations were simply to make sure the US can still operate in accordance with international law.

“All operations are designed in accordance with international law and demonstrate that the United States will fly, sail and operate whatever international law allows,” she said.

Beijing claims most of the South China Sea, an area rich in resources and through which trillions of dollars in trade passes each year. Despite international court rulings contradicting this claim, Beijing has occupied the Paracel Islands, built up the Spratlys, and assigned significant military forces to them.

The US Navy has sent ships into waters around the Chinese-controlled islands and reefs on an almost monthly basis since the end of last year “to challenge excessive maritime claims.”

“Our troops will [take] all necessary measures to resolutely defend national sovereignty and security and firmly safeguard the peace and stability in the South China Sea,” Li said.

This has greatly angered Beijing, and contributed to the worsening tensions between the world’s two largest economies. Beijing has regularly threatened military retaliation, and on at least one occasion nearly provoked a confrontation between US and Chinese ships.

end
As we promised, those two phone calls with China never happened..they were made up to boost the market
(zerohedge)

Trump Made Up “High Level Phone Calls” With China To Boost Markets, Aides Admit: Report

Just before Europe opened on Monday morning, with US equity futures tumbling below 2,800 and the Chinese yuan in freefall after a tense weekend in which traders stewed over the latest trade war escalations and rushed to sell, algos sent risk surging following a statement by President Trump in Biarritz, France, that “China called last night” and said they want to resume trade talks, later elaborating that two “high-level” Chinese officials had called to try and restart stalled negotiations. He turned to Treasury Secretary Steven Mnuchin for backup, and Mnuchin said there had been “communication,” later amending it to “communications.”

Almost immediately, China denied that any phone call had taken place, insinuating that Trump had made up the entire event – ostensibly to avoid a market landslide, and if so, Trump indeed achieved his goal: in the span of seconds, the market mood changed, and stocks surged on Monday, and have continued their ascent higher on the assumption that sentiment in the trade war had shifted. The reality, of course, is that there was little doubt as to whether a phone call had ever taken place. It hadn’t.

zerohedge@zerohedge

Time for a fake phone call between the US and China

221 people are talking about this

And now, according to a CNN report, White House aides “conceded the phone calls Trump described didn’t happen they way he said they did,” and “insteadtwo officials said Trump was eager to project optimism that might boost markets, and conflated comments from China’s vice premier with direct communication from the Chinese,” precisely as we said had likely happened on Monday morning.

Trump has become increasingly concerned about the market’s inability to rise comfortably above 3,000 and is agitated, CNN reports, because “the economy is flashing warning signs Trump didn’t expect, his trade war with China is dragging on months longer than expected yet he refuses to give in,” and he’s “spinning to find victories to sell to voters.”

For now, Trump is enjoying an S&P that remains just a few percent below its all time highs. But what happens once algos realize that Trump will say any lie just to push risk assets higher? And is that why bond yields continue to grind to new all time lows, because while stocks may be fooled by Trump’s lies, bonds know that the more Trump tries to push stocks higher, the greater the fall in risk assets will be.

end
China/Huawei/USA
Washington re-escalates its probe into Huawei by going after IP theft through employees who previously worked for their competitors.
Next question:  what are the algos going to do next with China?
(zerohedge)

Washington Re-Escalates Probe Into Huawei IP Theft, Hiring Practices

Just when you thought it was safe to buy buy buy because of ‘odd’ headlines from both US and China about “talks,” The Wall Street Journal reports that, according to people familiar with the matter, U.S. prosecutors are looking into additional instances of alleged technology theft by Huawei.

The Journal reports that among the situations being examined are episodes in which Huawei was accused of stealing intellectual property from multiple people and companies over several years, as well as how the company went about recruiting employees from competitors.

The move is an escalation as the inquiries, which include a subpoena for documents from Huawei by federal prosecutors from the Eastern District of New York in Brooklyn, suggest that the government is investigating aspects of Huawei’s business practices that weren’t covered in indictments of Huawei issued earlier this year.

The algos did react very modestly to this headline but it’s coming back relatively quickly…

 

Will we get another tweet from the President proclaiming how well talks are going?

4/EUROPEAN AFFAIRS

Italy

This should be lots of fun.  Salvini has now been moved to the opposition.  Now the new govern

ment must find a way to produce 26 billion euros in revenue because they do not want to increase the VAT in a declining economy

(zerohedge)

“We Must Act”: Italian PM Conte Pledges Swift Action After Getting Green Light To Form New Government

Nine days after he resigned from Italy’s government, Giuseppe Conte has returned as prime minister to form a new government that will exclude Matteo Salvini, the former right-wing hardliner who was once widely believed to be next in line to occupy the Quirinale Palace, the seat of the Italian government.

On Thursday, Conte said he would accept the role with reservations, saying that he would immediately start working with all other Parliamentary Groups, and added that Italy must open itself up and become “a country which is open to everyone,” CNN reports. His first task, as he informed Italian President Sergio Mattarella, will be finding candidates to form a new cabinet. Conte officially informed Mattarella that he would accept his nomination as PM, putting an end to a three-week long political battle that threatened to blossom into a full-blown political crisis.

“This is a moment for courage and determination – a determination which will not be dogged by obstacles,” he said.

After holding together for more than a year, much longer than most political observers had anticipated, the coalition between M5S and the League Party fell apart last week after months of infighting over key policies.

Even more surprisingly, the Five Star Movement and the Democratic Party, decided to form a coalition after more than a week of tense negotiations. One of the main sticking points for both parties was that Conte, a technocrat, return to reprise his role as prime minister.

Conte

As the FT explained, the decision to re-anoint Conte as prime minister is a sign of just how much influence the moderate politician, who previously led a coalition of anti-establishment lawmakers, has gained. Conte has “marched decisively out of his deputies’ (that is, Salvini’s) shadow” and now boasts an approval rating of just below 60% – something most mainstream politicians would kill for.

He even won the endorsement of President Trump during last weekend’s G-7 meeting.

But after humiliating Mr Salvini in a blistering speech to the Senate, Mr Conte seems to have marched decisively out of his deputies’ shadow. He was embraced by Angela Merkel, German chancellor, at the G7 last weekend and even got the seal of approval from Donald Trump, the US president, who on Tuesday tweeted his esteem for the “highly respected” Mr Conte who “loves his country greatly & works well with the USA. A very talented man who will hopefully remain Prime Minister!”

Mindful of Mr Conte’s approval ratings, which have reached as high as 58 per cent – a level most leaders can only dream of – Five Star has insisted he remain prime minister in any new coalition. The Democratic party (PD) has however said it wants a clear break with the previous government.

As Reuters pointed out, Conte’s reputation as a pragmatic technocrat could improve Italy’s relationship with the European Union, which could come in handy during the upcoming budget negotiations this fall.

Conte’s top priority is formulating a budget that will allow his government to avoid implementing a VAT hike on Jan. 1 that could do more damage to Italy’s already-struggling economy.

“We must immediately get to work and draw up a budget to avert the VAT hike, protects savers and offers solid prospects for economic growth and social development,” he said.

The VAT rate will rise unless Italy manages to find $26 billion of government funding from another source.

Hoping to seize on his rise in popularity, Salvini withdrew his support for the government and pushed for a no-confidence vote on Conte, hoping to collapse the government and force a new round of elections that could see his far-right League Party return as the leader of a new conservative coalition. But Salvini’s plan backfired, as his the new coalition will see the League relegated to the opposition.

Italy’s former government challenged Brussels over its budget deficit, its unwillingness to take in more migrants and its openness toward making amends with Russia.

But according to local media reports, Conte is preparing a policy platform that would ask Brussels for more “flexibility” in crafting a budget, adopting a much more conciliatory tone.

Italian stock markets and bond markets rallied after Conte’s decision, as analysts warmed to the new coalition.

“We think it will be less challenging to agree on an agenda between M5S (5-Star) and PD because the priorities both political forces have set out seem broadly consistent in many areas,ranging from fiscal policy to Italy’s relationship with the EU to a focus on a green economy,” said UBS Wealth Management’s Matteo Ramenghi.

Meanwhile, former Democratic Party PM Matteo Renzi said he would not be joining the new Italian government in a ministerial post, though he supported the coalitions efforts to make a deal because it would stop Salvini.

Still, Renzi celebrated the new coalition, as he told reporters.

“This result: politics 1, populism O. This is the result of the first half of the match,” he told CNBC’s Joumanna Bercetche, implying that he expected Salvini to return with some sort of challenge.

He has good reason to believe that to be the case. As we noted yesterday, frustrated members of the League urged their supporters to take to the streets to protest the new governing coalition, which they branded as undemocratic usurpers.

Here’s a chart illustrating the new government vs. the prior government.

Though while it appears Italy has avoided another election for now, Conte has several serious challenges facing him, not the least of which involves crafting Italy’s 2020 budget, and selling it to Brussels. That creates the possibility of market-rattling political turmoil ahead.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Lebanese army opens fire on multiple Israeli drones.  None were shot down and they all returned safely.  However tensions mount between the Israelis and Lebanon/Hezbollah

(zerohedge)

Lebanese Army Opens Fire On Multiple Israeli Drones At Southern Border

Gunfire has erupted over southern Lebanon amid soaring tensions after Lebanon accused Israel of launching aggression tantamount to “a declaration of war” – in the words of President Michel Aoun, in reference to the twin Israeli drone attack on Hezbollah offices in south Beirut the past weekend.

Specifically on Wednesday the Lebanese army is reported to haveopened fire on up to three “Israeli reconnaissance drones” for violating the country’s airspaceaccording to the official National News Agency. 

 

An Israeli Hermes 450 drone photographed along the Gaza border in 2018, via AFP.

Reuters also reports that troops initially opened fire on the unmanned vehicles with M16 assault rifles, forcing the drones to return to Israeli airspace.

 

The Israeli Defense Forces (IDF) appear to have confirmed the incident, but didn’t specify whether the drones violated Lebanese airspace.

“Gunfire was heard from Lebanese territory toward the area where IDF drones were flying. The drones completed their mission, and no damage was caused,” the Israeli army said.

The Lebanese Air Force (LAF) mentioned three UAVs appearing near the village of Adaisseh, as well as in the vicinity of Kafr Kila, near the border with Israel. “The army confronted it and fired at it, forcing it to retreat,” the LAF said in a statement.\

Some Arab regional media actually claimed one or more of the drones were destroyed by the gunfire, but it remains unclear.

Quds News Network

@QudsNen

| The Lebanese army shoots down a third Israeli drone near the borders with occupied .

Embedded video

There are significant fears that Lebanon and Israel could be barreling toward a major conflict similar to the 2006 war, also after on Sunday a separate Israeli drone strike (following the south Beirut incident) reached deep into Lebanon, killing a PFLP-GC leader in Lebanon’s Bekaa Valley (a Palestinian paramilitary group).

Both the national army and Hezbollah have vowed to shoot down any unauthorized aircraft in violation of Lebanese airspace, despite Israel over the past couple years violating it frequently to conduct air raids on targets in Syria.

END

Iran/Greece/Turkey

Our famous Iranian tanker makes an abrupt turn and is now facing Greece

(zerohedge)

6.Global Issues

Michael Every discusses the proroguing of the UK Parliament by Boris Johnson and what it means,,basically we are one step closer to a hard Brexit.  Also discussed is the Dudley affair and China vs Trump on the tariff wars and the value of the CNY

(Michael Every Rabobank)

Elites “Going Rogue” Suggests The Global Neoliberal Architecture Is Collapsing

Authored by Michael Every via Rabobank,

Listen carefully. That is the sound of going rogue – and bond yields further through the floor.

Yesterday UK PM Boris Johnson announced he is going to prorogue–or close–Parliament, meaning that when MPs come back to sit next week they will only do so briefly, and will then not return until 14 October, when there will be a new Queen’s Speech to launch BoJo’s slate of legislation as the new PM. So far, so technical. Yet what this effectively means is that there will be a very narrow window next week, and then a slightly larger one in the final two weeks of October, for Parliament to act to prevent Hard Brexit on Halloween.

This is explosive and unprecedented stuff, politically. The British constitution is largely unwritten and so allows wiggle room, and the government insists they have checked the legality of all they are proposing; nonetheless, as the press and opposition note, it smells awful. This is clearly a case of Erskine May (the ‘parliamentary bible’ that looks and sounds like it belongs in a Harry Potter tale) turning into Erskine Maybe or Erskine Might.

Indeed, BoJo is being accused of a “coup”, a “constitutional outrage”, an “abomination”, and of being a “tinpot dictator”, though this being the UK, perhaps that should be “teapot”; but there is not just tea but a genuinely revolutionary atmosphere brewing. Bob Kerslake, former head of the civil service, is quoted in the Guardian as stating:

We are reaching the point where the civil service must consider putting its stewardship of the country ahead of service to the government of the day.

AGuardian op-ed advocates the current head of the civil service should follow the advice. Even the British royal family, already facing one scandal, risks getting sucked into this given some had expected the Queen might not accept the privy council’s advice to prorogue at all.

Of course, this all comes just after Bill Dudley publicly suggested the US Fed has a duty not to help ameliorate a Trump trade warvia cutting rates and to instead hold fast to ensure he isn’t re-elected. As such, what we are seeing transcends Brexit, though I will return to it in a moment. Rather, this is the broad warning from my 2016 ‘Thin Ice’ report:

...the global neoliberal architecture collapsing, and perhaps taking some liberal-democratic architecture with it.

If you think that is hyperbole, consider this benchmark – how would we be reacting if the armed forces in any country were saying what Kerslake and Dudley just suggested?

This is not going to change for the better until we get a global new paradigm emerging – and that is a long way off. (Yes, Italy might cobble together a Europhile-PD/Europhobe-5 Star government, but how sustainable is that going to be, and will 5 Star’s party members support it?)

None of this is to take a stance on what any particular executive or legislature is doing on any particular policy front. Rather, it is an analytical view of how bitterly, deeply divided many countries are between a status quo ante, with its neat technocratic rules and regulations, and a populist backlash from those who feel these no longer provide a path to what they used to have and still want. One can argue “executive vs. legislature” or “executive vs. gate-keepers”; yet when the executive speaks of the “will of the people” as its justification it gets very Hannah Arendt very fast. Equally, however, what if the legislature and gate-keepers really are refusing to recognise the need for wrenching populist change, no matter how painful short term? One can argue it left and right and back and forth – but ultimately we will need to see a winner. And that is what markets need to focus on: not who is ‘right’, but who wins and what that means.

So back to the practicalities of Brexit. Parliament has only a few options: sit in another location and call themselves Parliament regardless of the prorogue – is that legitimate or also a dangerous precedent?; pass a law which would cancel the proroguing, which ironically would have to be signed by the Queen who just signed off on the prorogue; call for judicial review of the proroguing, which is on shaky ground according to government lawyers; pass a law to repeal Article 50, which would trigger an inverse political crisis as large as what BoJo is doing; or call a vote of no confidence in BoJo…at which point figures close to him have stated he will wait the allotted 14 days and then dissolve Parliament for new elections…AFTER the Brexit deadline of 31 October. In short, this is all likely to come to a neo-Cromwellian head next week, and Hard Brexit odds are right up there with an election leading us back to the same Revoke vs Hard Brexit binary.

What was the market reaction to the UK heading into such deep, dark waters? GBP initially sold off and then recovered to hold around 1.22. Hardly an emerging market seeing meltdown; by contrast, look at what happened to the Argentinean Peso yesterday, which is currently around 58 when it started the year at below 38. Likewise, Gilt yields declined 2bp at the short end and 6bp at 10s and 5bp at 30s. That is hardly the reaction to a country about to implode and default. Then again, it is hardly a ringing endorsement of the economic outlook either…which, together with US 10s at 1.46% and German 10s at -0.72% explains why we are crashing through our self-made Thin Ice in the first place.

That and the fact that China continues to slow due to its vast self-made problems, according to the Bloomberg Economics gauge. On which final note, today’s CNY fixing was 7.0858, again slightly lower than the previous day, but again much stronger than where the fix was implied (7.1085) and where the market currently is at 7.1652. That’s another piece of neoliberal convention going rogue – the PBOC is saying something, markets are saying otherwise,…and nothing is happening to them as a result.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

Argentina

This is something that the IMF did not want to hear they are proposing a soft default for the 9th time since independence. These guys are simply basket cases.

(zerohedge)

Argentina Proposes IMF-Humiliating ‘Debt Re-Profile’ As It Soft-Defaults For 9th Time Since Independence

Less than a week after we suggested The IMF is in for humiliation over the collapse of Argentina – just months after its unprecedented $56 billion liquidity crisis bailout – it appears the South American nation is set to default for the ninth time since its independence in 1816.

Amid a 20% crash in the peso and a collapse in government bonds, which pushed the implied risk of default above 80%, IMF delegates arrived in Argentina on Saturday and, as Bloomberg reports, immediately began meetings with policy makers, facing a deja vu choice from two decades ago: risk making the turmoil even worse by withholding a $5.3 billion installment due next month – or cough it up, and risk even more losses with the IMF bailout program on the verge of collapse.

“The IMF has put a lot in – not just money, but prestige,” said Hector Torres, a former executive director at the Fund who represented South American countries.

The fact that the arrangement is not performing well right now is an embarrassment,” he said. And the September installment is “going to be a difficult call.”

Then earlier today, things got worse as Argentina bond spreads widened to the most in 14 years after opposition leader Alberto Fernandez ripped the debt-laden country’s accord with the International Monetary Fund. Fernandez said much of the IMF loan had been wasted on financing capital flight out of the country.

In a statement following a meeting with IMF officials, Fernandez said he agreed with the objectives of the IMF deal, but added that the IMF and the current government generated the current crisis and are now responsible for reversing the “social catastrophe.”

Argentina has struggled to rollover the debt in the wake of a stunning loss in a primary for the market-friendly government coalition, and now tonight, according to a statement from the finance ministry, Argentina seeks to re-profile $57 billion debt owned to private holders and the International Monetary Fund. Re-profile is a public-relations-friendly way of saying soft-default, but the ministry was quick to explain that there’s no haircut nor change to interest paid.

“It’s important to highlight that this is only an adjustment of maturities.”

The proposal is that Argentina will delay payments on $7 billion of short-term debt

  • Argentina will pay 15% of its debt at maturity
  • It will pay 25% of its debt three months after maturity
  • Final 60% of debt will be paid six months after maturity
  • Government will continue to pay interest on short-term debt

And will seek Congress authorization to launch a voluntary reprofiling of debt maturing between 2020 and 2023 under local legislation.

“The government is aiming to clear the outlook for the financial program in the short, medium and long-term horizon,” Economy Minister Hernan Lacunzasaid.

“This is due to short-term liquidity stresses and not due to problems with the solvency of the debt.”

Call it what you want, but foreign-currency reserves have plummeted more than $10 billion in the past month as policy makers sought to shore up the peso after the primary on Aug. 11.

Tens of thousands of people marched through the streets today to demand the government do more to mitigate the impact of the economic crisis in a country that has defaulted on its debt eight times since independence from Spain.

But, as we noted last week, while creditors will be hit, it will be the ordinary Argentina citizens that will be crushed: Ordinary Argentines also have traumatic memories of failed IMF programs. Many blame the Fund for the epic collapse of two decades ago, one reason why Macri’s decision to go to the IMF last year was so risky.

“I think it’s neutral to positive,” said Ezequiel Zambaglione, head of strategy at Balanz Capital Valores in Buenos Aires.

“In the worst case scenario, nobody accepts the offer and you are in the same situation as yesterday. And if they reach an agreement and are successful in the swap, you’ll have less funding needs for the next years.”

Finally, after all this, IMF staff are left to do the walk of shame back to Washington to analyze the debt operation announced by Argentine authorities today. According to a statement from IMF spokesperson Gerry Rice:

“Staff understands that the authorities have taken these important steps to address liquidity needs and safeguard reserves.

“Staff will remain in close contact with the authorities in the period ahead and the Fund will continue to stand with Argentina during these challenging times.”

As we noted previously, Patrick Esteruelas, head of research at EMSO Asset Management in New York, warned “The IMF is in a serious pickle.”

It reminds me of the saying: If you owe the bank $100, it’s your problem. If you owe the bank $100 million, it’s the bank’s problem.”

We wonder how the Europeans feel now about their new hire as head of The ECB?

But then again, we all know who is on the hook for these losses…

The good ol’ US taxpayer!

end

Argentina:

The Argentine peso collapses to record low of almost 59 to one USA dollar on the debt restructuring plan

(zerohedge)

Argentine Currency Crashes To Record Low After Debt-Restructuring Plan

As we detailed last night, Argentina’s embattled government will ask its creditors including the IMF for more time to pay off $101bn of debts, as the country struggles to avoid a ninth sovereign default.

Hernán Lacunza, the finance minister, late on Wednesday, said confidently

“The government is aiming to clear the outlook for the financial programme in the short, medium and long-term horizon,”

“This is due to short-term liquidity stresses and not due to problems with the solvency of the debt.”

But the currency markets suggest investors are selling first and asking questions later…

Source: Bloomberg

AndJPMorgan agrees, warning that pressure on Argentina’s international reserves may linger amid foreign-exchange deposits withdrawals and dollarization of peso deposits despite the government’s plans to extend debt maturities.

“A political gesture of the main opposition candidate and favorite to win the elections is a necessary condition to break the prevailing vicious cycle that has taken a toll on reserves,” analysts Diego Pereira and Lucila Barbeito write in a note.

By announcing the debt re-profiling late Wednesday, government aims to address short-term liquidity problems with the clear intention of safeguarding reserves, they write.

JPMorgan says the reaction of local law debt holders “is not clear,” particularly if the Congress addresses the local debt re-profiling bill only after the October election.

However, for now, judging by the collapse in the peso, traders are taking the “Fool me once, shame on you, Fool me a ninth time, shame on me!” road…

end

Venezuela

The USA offers Maduro amnesty if he steps down. There is not a chance he will remove himself

(zerohedge)

 

US Offers Venezuela’s Maduro Amnesty If He Steps Down

President Trump’s Venezuela Envoy, Elliott Abrams, has an offer for Venezuelan President Nicolás Maduro; leave power voluntarily and the United States will grant amnesty. While Abrams says he sees no indication that Maduro will step down, his offer was designed to send a message according to the New York Times.

 

We’re not after him. We want him to have a dignified exit and go,” said Abrams. “This is not a persecution.”

“We don’t want to prosecute you; we don’t want to persecute you. We want you to leave power.”

 

(Whoever sent two failed C-4 laden drone-bombs at Maduro last year was after him, we would note.)

Last year, the US Treasury Department claimed that Maduro was profiting from illegal drug trafficking – however charges were not recommended at the time.

As the Times notes, “The softer, if pragmatic, appeal sharply contrasted with the eight months of sanctions, international isolation and threats by the Trump administration of military intervention against Mr. Maduro and his loyalists, who are accused of hoarding power and manipulating elections last year.”

Meanwhile, opposition leader Juan Guaido admitted that talks with Maduro’s government to resolve the ongoing political turmoil – mediated by Norway – “aren’t working,” according to France 24.

Talks mediated by Norway first took place in May in Oslo with several subsequent rounds in Barbados.

But Maduro called off the discussions three weeks ago in response to new US sanctions against his government.

The two sides are deadlocked with Guaido, who sparked the crisis by declaring himself acting president in January, demanding Maduro’s resignation and the government insisting the United States lift sanctions that it blames for the country’s crippled economy.

“At the moment there’s no date to restart the mechanism mediated by the kingdom of Norway until we achieve something concrete to approach a solution,” said Guaido. –France 24

Last week, President Trump said that talks between the White House and Maduro’s government are ongoing “at a very high level.” Hours later, Maduro confirmed that he had authorized his officials to engage in secret negotiations with the United States.

“Sure, there’s been contact and we’ll continue having contact,” said Maduro.

Abrams – going against both Trump and Maduro’s statements on Tuesday, said that’s untrue.

“The notion that we are negotiating is just flat-out wrong,” said Abrams, adding “And the notion that there is a pattern of communication is wrong. There are intermittent messages and I think people would find the very occasional message sent from Washington to be completely predictable: ‘You need to return to democracy. Maduro needs to leave power.’

The comments are likely to soothe Venezuela’s opposition leaders, who have privately said Mr. Trump’s statement risked sidelining their own negotiations. A delegation headed by the opposition’s chief political negotiator, Stalin González, traveled to Washington last week to press American officials on the Trump administration’s policy in Venezuela.

Mr. Abrams said he did not currently see any value in talking directly to Mr. Maduro’s government.

He said messages to Washington from intermediaries in Venezuela have been “pretty rare” since last winter, and the information they carried was dubious. Some may have been sent with Mr. Maduro’s knowledge while others were probably not. –New York Times

Is the Trump admininstration going around the very ‘establishment’ Abrams’ back?

As the Times suggests – “any direct contact between Washington and Mr. Maduro would risk sidelining parallel negotiations — that are mediated by Norway and held in the Caribbean island of Barbados — between the Venezuelan government and opposition officials led by Juan Guaidó, whom the United States views as Venezuela’s rightful president.”

Read the rest of the report here.

end

 

 

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

Euro/USA 1.1074 DOWN .0011 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 106.25 UP 0.171 (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 1.2211   DOWN   0.0006  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3287 DOWN .0019 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  THURSDAY morning in Europe, the Euro FELL BY 11 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1074 Last night Shanghai COMPOSITE CLOSED DOWN 2.84 POINTS OR 0.10% 

 

//Hang Sang CLOSED UP 88.02 POINTS OR 0.34%

/AUSTRALIA CLOSED UP 0,07%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 88.02 POINTS OR 0.34%

 

 

/SHANGHAI CLOSED DOWN 2.84 POINTS OR 0.10%

 

Australia BOURSE CLOSED UP. 07% 

 

 

Nikkei (Japan) CLOSED DOWN 18.49  POINTS OR .09%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1536.70

silver:$18.49-

Early THURSDAY morning USA 10 year bond yield: 1.49% !!! UP 1 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.96 DOWN 1  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 98.31 UP 10 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.13% UP 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.29%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.10%//UP 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD: 0.98 UP 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 88 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.69% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.67% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN.

END

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1057  DOWN     .0029 or 29 basis points

USA/Japan: 106.53 UP .445 OR YEN DOWN 45  basis points/

Great Britain/USA 1.2200 DOWN  .0017 POUNDDOWNP 17  BASIS POINTS)

Canadian dollar UP 9 basis points to 1.3297

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan/,CNY 7.1445    ON SHORE  (DOWN)..GETTING DANGEROUS/DID NOT BUY THE DOW

THE USA/YUAN OFFSHORE:  7.1432  (YUAN DOWN)..GETTING REALLY DANGEROUS//DUD NOT BUY THE DOW

TURKISH LIRA:  5.8445 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.29%

 

Your closing 10 yr US bond yield UP 3 IN basis points from WEDNESDAY at 1.51 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.00 UP 2 in basis points on the day

Your closing USA dollar index, 98.44 UP 23  CENT(S) ON THE DAY/1.00

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

London: CLOSED UP 69.61 OR  0.98%

German Dax :  CLOSED UP  OR 137.86 POINTS O1.18%

 

Paris Cac CLOSED UP 81.17 POINTS 1.51%

Spain IBEX CLOSED UP 47.20 POINTS or 0.54%

Italian MIB: CLOSED UP 407.46 POINTS OR 1.94%

 

 

 

 

 

WTI Oil price; 56.70 12:00  PM

Brent Oil: 60.71 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    66.46  THE CROSS LOWER BY 0.34 RUBLES/DOLLAR (RUBLE HIGHER BY 34 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.69 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 :  56.53//

 

 

BRENT :  60.98

USA 10 YR BOND YIELD: … 1.50 up to basis pts and did not buy the dow/nasdaq gains…

 

 

 

USA 30 YR BOND YIELD: 1.97..up 0 and thus the bond players did not buy the dow/nasdaq gains..

 

 

 

 

 

EURO/USA 1.1056 ( UP 29   BASIS POINTS)

USA/JAPANESE YEN:106.53 UP .452 (YEN UP 45 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 98.46 UP 25 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2180 DOWN 37  POINTS

 

the Turkish lira close: 5.8422

 

 

the Russian rouble 66.58   UP 0.22 Roubles against the uSA dollar.( UP 22 BASIS POINTS)

Canadian dollar:  1.3296 UP 11 BASIS pts

USA/CHINESE YUAN (CNY) :  7.1445  (ONSHORE)/DID NOT BUY THE DOW GAINS AND DID NOT BUY THE CHINA STORIES./

 

USA/CHINESE YUAN(CNH): 6.8740 (OFFSHORE) DID NOT BUY THE DOW GAINS AND DID NOT BUY THE CHINA STORIES./

 

German 10 yr bond yield at 5 pm: ,-0.69%

 

The Dow closed UP 326.15 POINTS OR 1.25%

 

NASDAQ closed UP 116.51 POINTS OR 1.48%

 


VOLATILITY INDEX:  17.92 CLOSED DOWN 1.43

LIBOR 3 MONTH DURATION: 2.124%//libor dropping like a stone

 

USA trading today in Graph Form

Stocks Erase Trump-Trade-Tantrum Dump As Dollar Soars To New Record High

A Fed hint here, a Trump tweet there, and a well-timed China headline is all you need to bypass fun-durr-mentals and send stock-buying-algos into a frenzy on a low-liquidity week…”Never gonna let you down!!”

Another sideways day for Chinese stocks unable to bounce back from early weakness (closed before the China trade headlines sparked a buying panic)…

Source: Bloomberg

Big positive day for Europe helped by the China headlines overnight…

Source: Bloomberg

European markets did get a jolt of excitement in the afternoon as ECB’s Knot suggested no need for more QE (but that didn’t last long)…

Source: Bloomberg

US equities ripped higher again (on another trade headline overnight, this time from China saying nothing new at all), erasing all of Trump’s trade tantrum losses from last Friday…

NOTE – Nasdaq and S&P unchanged from Thursday’s close, Dow/Trans higher, Small Caps red.

 

Futures show the big spike overnight when the China headlines hit…

 

Stocks rallied all the way up to a critical Fib 61.8% retrace of the early August plunge (erasing all of last Friday’s Trump trade-tantrum losses…

 

Another big short-squeeze started the day off well…

Source: Bloomberg

Financials outperformed the market once again, decoupling from the yield curve…

Source: Bloomberg

The timing of the China trade headlines was oddly perfectly-timed with the VIX opening, which punched lower, sparking panic-buying in the thin futures pre-market…

 

30Y Treasury yields are once again “more attractive” than stock dividend yields…

Source: Bloomberg

Bond yields and stocks entirely decoupled again this week (rebalancing?) as stocks shrugged off all of last week’s worries but bonds did not…

Source: Bloomberg

 

A really ugly 7Y auction sparked some pain in Treasuries and we suspect more rebalancing, but in the end yields were only marginally higher (except the long bond ended unch)… A late-daye bid for bonds took them all lower for the week…

Source: Bloomberg

30Y Yields rose modestly, testing back above 2.00% intraday but each time a bid appeared…

Source: Bloomberg

And in case you wondered why the bids – look at positioning in the Ultras…

Source: Bloomberg

The yield curve steepened with 2s10s testing back toward 0 but quickly fell back in the afternoon…

Source: Bloomberg

Source: Bloomberg

Before we leave bond-land, we note that traders looking for a reason to bet against the epic run in Treasuries might want to consider that the rolling 30-day correlation between 10-year Treasury futures and the MOVE Index, a gauge of underlying volatility, rose to a record this week. As Bloomberg’s Robert Fullem notes, market theorists say a surge in volatility may mark an end to a trend, suggesting it could be best to avoid Treasuries at these levels. The price-volatility correlation, which has generally been negative, rose above the prior peak seen in the run-up to the financial crisis of 2008.

 

The Dollar rallied once again…

Source: Bloomberg

The Argentine Peso crashed to a new record low at the open (above 60/USD) but like yesterday was rescued by ARG auction bids…

Source: Bloomberg

But, as the currency was rescued, traders dumped ARG bonds like a syphillitic hooker…

Source: Bloomberg

Cryptos extended losses overnight from the late-day plunge but saw a bid in the US equity market session…

Source: Bloomberg

Bitcoin extended losses below $10k…

Source: Bloomberg

 

 

Gold slipped back into the red for the week but well off the lows from before Trump’s tantrum…

 

While gold is the best-performing precious metal YTD, Platinum has exploded this week…

Source: Bloomberg

Big roundtrip in WTI over the last two weeks…

 

And finally, the big question is – Will 2019 be like 1998 or 2013?

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/this morning/USA

Stock Surge Erases All Trump-China Trade War Escalation Losses

Well, that was easy…

The last small leg higher, to entirely erase the losses from last Friday were sparked by Trump saying on Fox Radio that “China wants to make a deal… sort of has to make a deal” and was enough to trigger the algos…

But bonds ain’t buying it…

Source: Bloomberg

then:

Euro Spikes, Stocks Dump As ECB’s Knot Says “No Need To Resume QE”

Following future ECB head Christine Lagarde’s dovish comments that the central bank hasn’t hit the lower bound on rates (yet):

In her first comprehensive comments on monetary policy since winning the job, she said Thursday the ECB has the tools to tackle a downturn and must be ready to use them if needed. The euro weakened slightly after the remarks were published.

European Central Bank policy maker Klaas Knot played bad-cop, saying hawkishly that the euro-area economy isn’t weak enough to warrant the resumption of bond purchases and such a step shouldn’t be taken unless the slowdown worsens.

While the Dutch central-bank governor said he’s open to an interest-rate cut, his remarks echo those by his German colleague Jens Weidmann:

“If deflation risks come back on the agenda then I think the asset-purchase program is the appropriate instrument to be activated, but there is no need for it in my reading of the inflation outlook right now,” Knot said in Amsterdam on Thursday.

“Not reactivating the asset-purchase program also means you keep some powder dry for when actually future contingencies happen.”

Euro spiked on the headline…

Source: Bloomberg

And stocks tumbled (from a key resistance level)…

Looks like Draghi has some work to do.

end

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Not good for the Donald: 2nd quarter GDP has been revised lower to just 2% even though there was a surge in person spending

(zerohedge)

Q2 GDP Revised Lower To 2.0% Despite Surge In Personal Spending

There were no surprises in today’s first revision of Q2 GDP, which the BEA reported moments ago printed at 2.0% (2.040% to be precise), just as expected, and down modestly from the 2.1% (2.060%) initial estimate; the number was also down from the 3.1% annualized GDP growth in Q1.

 

The Q2 increase in real GDP reflected an even greater increase in consumer spending and government spending, while inventory investment, exports, housing investment, and business investment decreased. Imports, which are a subtraction in the calculation of GDP, increased. The increase in consumer spending reflected increases in both goods and services that were widespread across major categories. The increase in government spending reflected increases in both federal and state and local government spending.

 

The decrease in inventory investment reflected decreases in manufacturing, retail trade, and wholesale trade industries. Goods led the decrease in exports.

Curiously, even as overall GDP growth eased somewhat, personal consumption jumped, rising from 4.3% in the first estimate to 4.7% currently: this was the highest PCE in almost five years, since Q4 2014, and up shaprly from just 1.1% in Q1:

 

As detailed by he BEA, the revision to GDP growth reflected downward revisions to state and local government spending, exports, inventory investment, and housing investment. These revisions were partly offset by an upward revision to consumer spending. Broken down by item, the Q2 GDP of 2.04% looked as follows:

  • Personal Consumption: 3.10%, up from 2.85% in the first estimate
  • Fixed Investment: -0.20%, down from -0.14%
  • Change in Private Inventories: -0.91%, down from -0.86%
  • Net Exports: -0.72%, down from -0.64%
  • Government consumption: 0.77%, down from 0.88%

Inflation remained stable, with the GDP price index rising 2.4% in 2Q, in line with expectations, after rising only 1.1% prior quarter; there was some weakness in core PCE, which rose rose 1.7% in 2Q, missing expectations of a 1.8% increase, after rising 1.1% prior quarter.

Finally, the BEA also reported that in Q2, profits increased 5.3 percent at a quarterly rate in the second quarter after decreasing 3.8 percent in the first quarter. Specifically:

  • Profits of domestic non-financial corporations increased 4.0 percent after decreasing 9.0 percent.
  • Profits of domestic financial corporations increased 1.0 percent after increasing 5.8 percent.
  • Profits from the rest of the world increased 11.7 percent after increasing 1.5 percent.

 

end
Despite super low mortgage rates, July pending home sales plunge back into contraction
(zerohedge)

Despite “Super-Low Mortgage Rates”, July Pending Home Sales Plunge Back Into Contraction

 

Breaking the tie between new (down) and existing (up) home sales, pending home sales tumbled 2.5% MoM in July (notably below the expectation of 0.0%) and stumbled back into contraction year-over-year.

 

Source: Bloomberg

All regions fell in July:

  • Northeast fell 1.6%; June rose 2.7%
  • Midwest fell 2.5%; June rose 3.3%
  • South fell 2.4%; June rose 1.3%
  • West fell 3.4%; June rose 5.4%

Pending Home Sales retreated back into contraction YoY (by 0.3%)…

Source: Bloomberg

“Super-low mortgage rates have not yet consistently pulled buyers back into the market,” Lawrence Yun, NAR’s chief economist, said in a statement.

“Economic uncertainty is no doubt holding back some potential demand, but what is desperately needed is more supply of moderately priced homes.”

Pending home sales are often considered a leading indicator of existing-home purchases and a measure of the health of the residential real estate market in coming months.

end

iii) Important USA Economic Stories

This is quite interesting:  Republican Senator Tillis calls for a probe into the Fed independence after Bill Dudley urges the Fed to overthrow Trump

(zerohedge)

Senator Calls For Probe Into Fed Independence After Bill Dudley Urges Fed To Overthrow Trump

In the aftermath of the shocking Bill Dudley op-ed, which has “opened a staggering can of worms“, and prompted many to call the former NY Fed central banker “rogue”…

… it was only a matter of time before someone called for an official inquiry into the “independence” of the Federal Reserve: the world’s most important central bank, the same one which Bernanke’s former advisor Andrew Levin said 3 years ago, “a lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned.”

And sure enough, on Wednesday afternoon, Republican Senator Thom Tillis called for the Senate Banking Committee to probe the Federal Reserve’s independence after Bill Dudley infamously suggested the upcoming presidential election “falls within the Fed’s purview”, hinting that it is ultimately the Fed – through its monetary policy – that picks the US president.

 

Tillis, who is up for reelection next fall in swing state North Carolina, said he plans to ask the Banking Committee’s chairman, Sen. Mike Crapo (R-Idaho), about convening a hearing “regarding Fed independence and the danger of this institution taking unprecedented and inappropriate steps to meddle in the presidential election.”

Quoted by Politico, Tillis said “I am very disappointed that former Fed monetary Vice Chairman Bill Dudley is lobbying the Fed to use its authority as a political weapon against President Trump. The President is standing up for America against China after 30 years of our country and our workers being ripped off and there is now an effort to get the Fed to try to sabotage the President’s efforts.

Dudley’s op-ed was supposedly the result of an increasingly hostile relationship between the US president and the world’s top central banker, which has culminated in a barrage of angry tweets by Trump slamming both Powell and the Fed for not easing more.

More recently, Trump slammed Powell saying “The only problem we have is Jay Powell and the Fed. He’s like a golfer who can’t putt, has no touch. Big U.S. growth if he does the right thing, BIG CUT — but don’t count on him! So far he has called it wrong, and only let us down.”

Of course, none of this tension between the president and Fed chair is new or unique, and for a far more colorful example of just how laughable the concept of Fed “independence” is, we go to the NYT with this brief but highly memorable anecdote from a meeting between President Lyndon B Johnson and Fed president William McChesney Martin

… in 1965, President Lyndon B. Johnson, who wanted cheap credit to finance the Vietnam War and his Great Society, summoned Fed chairman William McChesney Martin to his Texas ranch. There, after asking other officials to leave the room, Johnson reportedly shoved Martin against the wall as he demanding that the Fed once again hold down interest rates.

“I hope you have examined your conscience and you’re convinced you’re on the right track.” Lady Bird Johnson said to William McChesney Martin, on his arrival at the LBJ ranch.

Martin caved, the Fed printed money, and inflation kept climbing until the early 1980s.

Finally, while we doubt that anything will come out of the hearing on Fed “independence” as any actual discovery would reveal that the Fed was never actually independent (nor the ECB for that matter, which singlehandedly overthrew Sylvio Berlusconi in 2011 when it sent Italian bond yields soaring after it briefly stopped buying Italian debt), but an integral part of the US political apparatus (and privately owned to boot), we would like to repost this reaction to the original Dudley op-ed as it capture both the zeitgeist and what is coming next, perfectly:

This is so arrogant, cynical, ironic and completely disingenuous that it can’t pass without comment.

A $500B trade war does not tank the global economy. But a 10-year campaign to publicly bail out reckless private banks and insurance companies while blowing the largest most comprehensive debt bubble in history and then raising interest rates on $250T in global debt surely the hell will.

I don’t care who is, has been or will be President, the Federal Reserve and ONLY the Federal Reserve should be blamed for the tepid economy of the last 10 years. A world full of zombie companies, mountains of productivity-crushing debt and disconnected stock markets that reward a tiny minority of the citizenry with bloated “gains.” All this while regular people live hand-to-mouth saddled with stagnant wages and, dare I say it, daily inflation eating at their incomes.

For a Fed official to blame a paltry trade war for its own foolishness and THEN recommend the Fed purposely crush the economy with a deep recession in order to punish His Orangeness, is terrifying and nearly Soviet in its punitive childishness. Like all good technocrats, Mr. Dudley believes only his class of Brahmins may decide for you unwashed masses what is best. The Road to Hell and all that…

What is coming should be pinned forever on the hubris, blindness and arrogance of the Fed. Naturally, regular people will be hurt the most.

end

Hurricane Dorian is set to play havoc on Florida as the hurricane season returns. This one is set to hit Orlando and ruin the Labour Day weekend

(zerohedge)

Florida Declares State Of Emergency As Hurricane Dorian Set To Ruin Labor Day Weekend

Just in time to spoil Labor Day weekend, Hurricane Dorian has barreled through the US Virgin Islands and Puerto Rico without causing much damage, and is now headed straight for the Florida coastline. After intensifying from a tropical storm into a hurricane late Wednesday, the storm continued to strengthen as it pulled closer to the Continental US.

The storm is expected to continue strengthening over the next few day, and is expected to make landfall on Florida’s Atlantic coast as a CAT 3 storm late Sunday or Monday.

CNN

@CNN

Hurricane Dorian is strengthening and may hit the US as a Category 3. It’s forecast to grow into a major storm over Labor Day weekend before making landfall along the east coast of Florida. https://cnn.it/32f6wYq

Track Dorian: https://cnn.it/2zqdugK

Embedded video

In typical fashion, president Trump warned that Dorian will be “a very big storm, perhaps one of the biggest!” and urged people to follow state and federal instructions.

Donald J. Trump

@realDonaldTrump

Hurricane Dorian looks like it will be hitting Florida late Sunday night. Be prepared and please follow State and Federal instructions, it will be a very big Hurricane, perhaps one of the biggest!

As of 5 am ET on Thursday, Dorian’s center was some 150 miles north-northwest of San Juan, as it headed northwest at 13 mph, according to the National Hurricane Center. Dorian’s sustained winds increased to 85 mph, with higher gusts recorded.

Heavy rain from the storm could cause “life threatening” flash floods in parts of the Bahamas on Thursday, and even along the southeastern US coast.

CBS News weather producer David Parkinson said that “with a new supermoon and the angle the storm is approaching from, widespread coastal flooding, including severe coastal flooding is likely. In addition, as the storm is coming in for landfall, it looks like it might lose some of the steering currents.”

Miami resident Lanada Means said she purchased plywood at Home Depot on Wednesday to begin preparing for the storm. “My daughter messages me on Instagram and asked me if I knew about the storm, and I didn’t, so I came here on my lunch break. Tomorrow is gonna be crazy.”

Florida Gov. Ron DeSantis has declared a state of emergency Wednesday, advising residents to gatherseven days of supplies, including water, food and medicine.

Ron DeSantis

@GovRonDeSantis

.@NHC_Atlantic is forecasting that could be a major Hurricane. We’ve been monitoring this storm with @FLSERT and will continue to watch closely. All Floridians on the East Coast should have 7 days of supplies, prepare their homes & follow the track closely.

However, the storm has already thrown forecasters a few curveballs, the biggest being its swerve to the east on Wednesday, which helped it largely avoid Puerto Rico. Though that move put it in prime position to hammer the east coast of the US. Whether it lands in Florida, or further north, remains to be seen.

end

iv) Swamp commentaries

Another joke:  the House Judiciary Committee to launch probe into Trump’s plan to host the next G7

(zerohedge)

House Judiciary Committee Launches Probe Into Plan To Host G-7 At Trump’s Miami Resort

House Judiciary Committee Chairman Jerry Nadler probably didn’t need an excuse to launch yet another investigation into President Trump and his personal business (one would think he’d be busy trying to force Capital One and Deutsche Bank to hand over his tax returns), yet it appears he’s found one.

The House Judiciary Committee has decided to investigate Trump for suggesting that next year’s G-7 summit be held at the Trump Organization’s golf club in Doral.

In a statement released Wednesday afternoon, Nadler and Rep. Steve Cohen, the chairman of the Subcommittee on Civil Rights and Civil Liberties, claimed that the president’s financial interests were “clearly shaping decisions about official US government activities” that “this is precisely the type of risk that the Constitution’s Emoluments clauses were intended to prevent.”

Trump’s remarks about possibly holding next year’s summit at Doral were only the “latest in a troubling pattern of corruption and self-dealing by the President,” they said, adding that the mere suggestion of hosting the summit at Doral “implicates both the foreign and domestic Emoluments Clauses” because “it would entail both foreign and US government spending to benefit the president…the latter potentially including both federal and state expenditures.”

Moreover, the Doral “decision” reflects “perhaps the first publicly known instance in which foreign governments would be required to pay President Trump’s privately owned businesses” to conduct business with the US.

The committee is already investigating other instances of “public corruption” and “abuses of power” by the president.

 

Read the full statement below:

Kyle Griffin

@kylegriffin1

Inbox: House Judiciary Committee to Investigate Trump Doral G7 Plan.

View image on Twitter

Trump first raised the idea of hosting G-7 at Doral, a suburb of Miami, during a meeting with German Chancellor Angela Merkel on Monday, the last day of the G-7 in France. At the time, Trump said “we haven’t found anything that could even come close to competing with it, especially when you look at the location right next to the airport.” He also noted that the location is only a short helicopter ride from the airport for visiting world leaders.

The official White House twitter feed later tweeted a video clip of Trump making remarks about Doral with the tag line that Trump was announcing the location of the next summit, which is presumably what triggered the investigation.

The White House

@WhiteHouse

President @realDonaldTrump shares the location of the next @G7 summit, hosted by the United States!

Embedded video

Still, Trump and the White House haven’t officially confirmed that they’re holding the summit at Doral, and it’s certainly possible that this is just another example of Trump speaking off-the-cuff, as he often does.

But given Nadler’s well-known love of exercising his subpoenaing at every opportunity, we imagine the Judiciary Committee will seize the chance to launch a lengthy investigation that drags on for months, if not years.

end
Seems our illustrious Rep Omar is in trouble: she paid a person to whom she was having an affair 230,000 from political contributions
(zerohedge)

Rep. Ilhan Omar Paid $230k To ‘Political Consultant’ She Had Affair With

Maybe Representative Ilhan Omar is for separating families after all

A mother from Washington DC is claiming that Rep. Ilhan Omar, who is on her second (or third, who knows at this point?) marriage stole her husband away from her, according to explosive new divorce papers reported on yesterday by the Post.

Dr. Beth Mynett alleges that her cheating spouse, Tim Mynett, revealed to her in April that he was having an affair with Rep. Omar and that he had even made a “shocking declaration of love” for the congresswoman before leaving his wife.

Even better?

Representative Omar paid Mynett and his E. Street Group consulting company approximately $230,000 through her campaign since 2018 for fundraising consulting, digital communications, internet advertising and travel expenses.

55-year-old Mynett, along with her 38-year-old husband, have a 13-year-old son together. Tim Mynett has worked for left-wing Democrats like Omar and her Minnesota predecessor, Keith Ellison.

The filing read:

 “The parties physically separated on or about April 7, 2019, when Defendant told Plaintiff that he was romantically involved with and in love with another woman, Ilhan Omar.”

 

Beth and Tim Mynett

It continued:

“Defendant met Rep. Omar while working for her. Although devastated by the betrayal and deceit that preceded his abrupt declaration, Plaintiff told Defendant that she loved him, and was willing to fight for the marriage. Defendant, however, told her that was not an option for him. It is clear to Plaintiff that her marriage to Defendant is over and that there is no hope of reconciliation.”

The Mynetts had previously lived together for six years before marrying in 2012.

Omar was spotted with Mynett at a California restaurant in March. Mynett’s wife is seeking primary physical custody of their son in part because of her husband’s “extensive travel” with Omar, which the document claims is “not part of the job description”.

The court papers state:

“Defendant’s more recent travel and long work hours now appear to be more related to his affair with Rep. Omar than with his actual work commitments.”

Beth Mynett stated, via the filing: “When he was home he was preoccupied and emotionally volatile.” At the same time, she has been handling “the vast majority of responsibilities related to [their son’s] school, medical care, and extracurricular activities.’’

 

Tim Mynett and Rep. Omar

She also says she doesn’t trust her husband’s judgement with their son anymore after Tim Mynett took the child to meet Omar while Beth was out of town:

“By way of example, days prior to Defendant’s devastating and shocking declaration of love for Rep. Omar and admission of their affair, he and Rep. Omar took the parties’ son to dinner to formally meet for the first time at the family’s favorite neighborhood restaurant while Plaintiff was out of town.”

In the classiest of fashion, Rep. Omar apparently gave the son a gift during their meeting: “Rep. Omar gave the parties’ son a gift and the Defendant later brought her back inside the family’s home,” the filing says.

Beth Mynett argues that her husband “put his son in harm’s way by taking him out in public with Rep. Omar, who at that time had garnered a plethora of media attention along with death threats, one rising to the level of arresting the known would-be assassin that same week.”

Mynett is seeking full control of the couple’s DC home, child support and legal fees.

Meanwhile, we have heard no comment from Omar’s current husband, Ahmed Hirsi. He currently works as a senior policy aide to a Minnesota city councilwoman. There’s been no word (yet) on whether or not those two are having an affair, but we’ll keep our eyes on the story, because hey, you never know.

end
The FBI is now analyzing the two broke cameras trying to ascertain how they could fail at the same time
(zerohedge)

FBI Crime Lab Analyzing Two Broken Cameras From Outside Epstein Cell

An FBI crime lab is examining two cameras from the area outside Jeffrey Epstein’s cell which reportedly malfunctioned the night he died, according to Reutersciting a law enforcement source.

The two cameras would have had a view into the Manhattan jail cell where, on August 10, Epstein was found hanging by his bedsheet in what has been ruled a suicide.

The cameras were sent to Quantico, Virginia, site of a major FBI crime lab where agents and forensic scientists analyze evidence.

The Washington Post reported on Monday that at least one camera in the hallway outside Epstein’s cell had footage that was unusable. The newspaper said there was other usable footage captured in the area. –Reuters

 

During a Tuesday court hearing, Epstein’s lawyers Reid Weingarten and Martin Weinberrg told told US District Judge Richard Berman that they doubted Epstein committed suicide, and that the pedophile’s injuries were “far more consistent with assault” than hanging, according to Weingarten.

Weingarten cited the defense’s own medical sources. Broken bones were found in Epstein’s neck during an autopsy after he died Aug. 10.

Such fractures are somewhat more common in cases of strangulation than in hanging.

Weingarten told the judge that when he and other defense attorneys spoke to Epstein shortly before his death “we did not see a despairing, despondent, suicidal person.”

Weingarten’s comments came during a proceeding where prosecutors were seeking the dismissal of child sex trafficking charges against the Epstein as a result of his death. –CNBC

“We’re skeptical of the certitude,” added the lawyers.

Mike Krieger shared his uncredulity on the matter also:

They must be joking. Apparently TWO cameras malfunctioned outside of Epstein’s cell? This would be almost comical if it wasn’t so infuriating”

The 66-year-old financier was arrested on July 6 on charges of sex-trafficking minors and pleaded not guilty. He was denied a request for pretrial release, after which he was found with injuries he says were inflicted by his cellmate, according to his attorneys.

During Tuesday’s hearing, 16 women testified that Epstein had sexually abused them. Prosecutors say that while charges have been dropped against the dead pedophile, his potential co-conspirators are not out of hot water.

end

Comey should be sweating..this is just the top of the iceberg

(zerohedge)

“Comey Should Be Sweating” – DoJ Watchdog Finds Former FBI Head Violated Law

In a long-awaited report released Thursday morning, the DOJ’s inspector general revealed that former FBI Director James Comey’s handling of the memos he took from meetings with President Trump before he was unceremoniously fired in early 2017 violated department policy and the law when he shared them with a longtime confidant, who then leaked their contents to the press.

“We conclude that Comey’s retention, handling, and dissemination of certain Memos violated Department and FBI policies, and his FBI Employment Agreement,” the Justice Department inspector general report states.

As Fox’s Sean Hannity warned last night, the former director:

“Without a doubt…[Comey] should be sweating a lot tonight about what might be in those reports. This report is expected to be the tip of the iceberg when it comes to Jim Comey.”

However, we note that Attorney General William Barr has declined to press charges against Comey for the handling of the memos.

Still, the report proved that things are “not looking good…for Mr. Super Patriot, a guy that knows better than us…we are told that the report will strongly rebuke the disgraced former FBI director, document his utter lack of candor. That means lying,” Hannity said.

As an earlier media report reminded us, the Comey report is separate from a larger report about how the DoJ handled the Russia investigation, though it’s still not clear why the separate report is needed.

Developing…

end

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

ESUs rallied smartly during Asian trading.  However, when Europe opened, ESUs lost their entire overnight gain.  Traders quickly bought the opening dip.  For the next 3 hours, bulls and bears fought for control.   Then, BoJo happened!  Sellers overwhelmed bulls; bonds surged higher.

WaPo: British Prime Minister Boris Johnson will suspend Parliament through mid-October, cutting down its time to prevent a no-deal Brexit

https://www.washingtonpost.com/world/europe/boris-johnson-accused-of-deeply-dangerous-behavior-after-reports-he-will-shutter-parliament-ahead-of-brexit/2019/08/28/6bca5988-c96f-11e9-a1fe-ca46e8d573c0_story.html

Queen Elizabeth approves suspending British Parliament

https://www.foxnews.com/world/boris-johnson-queen-suspend-parliament-brexit

Defensive asset allocators were in the market early yesterday.  This generated selling for the NYSE open.  Just like in Europe, traders bought the opening dip.  Rapid buying generated a 23-handle ESU rally in just 22 minutes.  There was no impact news at the time.  The vertical move was the work of traders.  Perhaps the scheme to manipulate ESUs and stocks higher to game August performance had commenced.

ESUs rallied 12 handles at midday; but that was it.  ESUs and stocks then traded within a ten-handle range until the close.  However, ESUs sank nine handles after the close.

B-Dud’s folly is still reverberating.  His call for the Fed to interfere in the 2020 Election is astounding; but reeks of fear and desperation.  We don’t think it’s only fear of DJT.  Central bankers globally fear that after a decade of QE and NIRP, they are powerless to prevent a recession or terminate a recession.

Dalio Says Central Banks Are Losing Ability to Reverse Downturns

https://www.bloomberg.com/news/articles/2019-08-28/dalio-says-central-banks-are-losing-ability-to-reverse-downturns

Banks near Tipping Point as Negative Rates Draw Danish [Dir Gen of Fin Authority] Warning

https://www.bloomberg.com/news/articles/2019-08-27/banks-near-tipping-point-as-negative-rates-draw-danish-warning

Central bankers rightfully understand that they face an existential threat, especially after generating asset bubbles that concentrated wealth and income for at least three decades.

Just like Trump’s relentless campaign to pin the next recession on the Fed, B-Dud and his ilk are trying to blame DJT’s China policy for the next recession.  Central bankers fear that their impotency to avert or remedy the next recession will cause their demise due to lingering populist anger for their role in previous asset bubbles and their Wall Street bailout.

B-Dud, like other supreme beings of the Establishment, fears that DJT will intensify the existential fight for campaign grist.  We can imagine what Establishment types are discussing behind closed doors.

Lawrence H. Summers @LHSummers: Bill Dudley’s Bloomberg oped, The Fed Shouldn’t enable Trump, is the worst case of @realDonaldTrump derangement in the financial world.  It’s Seven Days in May at the @federalreserve.  Has the world gone mad?Bill Dudley’s @business oped might be the least responsible statement by a former financial official in decades.

Michael Every, Head of Financial Markets Research at Rabobank: “That a Member of the Elite Like Bill Dudley Could Open This Can of Worms Is Quite Staggering”

    The implications here are simply staggering. We have a former Fed official lobbying sitting Fed officials to deliberately damage the economy and move away from their stated mandate in order to either force a policy change from an elected president, or to force that president out of office!…

    Susan Strange, the founder of the much-overlooked discipline of International Political Economy, argued that one should never just assume that rules or institutions are neutral and apolitical: anything manmade struggles to be…

     Since the mid-2000s I have argued that central banks smile at equity inflation, and at house-price inflation, but scream at the risk of wage inflation… it is also a paradigm designed to make the rich richer and working Joes relatively poorer: logically, how can it not be?  How can central bankers not see this?… Susan Strange herself might well have quoted Upton Sinclair: “It is difficult to get a man to understand something when his salary depends upon his not understanding it”

https://www.zerohedge.com/news/2019-08-28/member-elite-bill-dudley-could-open-can-worms-quite-staggering

B-Dud’s big mouth has put the Fed on Congress’s front burner.  Can an audit be far behind?

Sen. Thom Tillis (R-NC):Tillis blasts proposal for Fed to play politics to defeat President Trump

“I am very disappointed that former Fed monetary Vice Chairman Bill Dudley is lobbying the Fed to use its authority as a political weapon against President Trump. The President is standing up for America against China after 30 years of our country and our workers being ripped off and there is now an effort to get the Fed to try to sabotage the President’s efforts. I’ll be talking to Chairman Crapo about holding a hearing in the Senate Banking Committee regarding Fed independence and the danger of this institution taking unprecedented and inappropriate steps to meddle in the presidential election.”..

https://www.tillis.senate.gov/2019/8/tillis-blasts-proposal-for-fed-to-play-politics-to-defeat-president-trump

Initial Jobless Claims – Nowhere near a recession reading, would need to double to confirm recession

The US 30-year bond hit a record low of 1.90% yesterday.  How does one explain this record low yield when US sovereign debt is at a record high – shades of Italy!  Obviously, the global central bank bond corner is driving interest to record lows, including record negative yields.  So, how valid are economic projections based on fake markets?

@Schuldensuehner: One of the most ridiculous charts in modern finance. Yields of long-term #Austria bonds in free fall. Austria’s 100y yield now at 0.61%. Keep in mind that Austria defaulted 7 times since 1800 (Austria-Hungary pre-1918). Current debt to GDP ratio >70%.

@Jkylebass: Italy is too big to fail and yet too big to be saved (at over €4 trillion of debt).It’s the first of its kind globally that doesn’t have its own central bank to buy its bonds at will. This identity will likely cause another euro zone crisis in the next few years

Fed’s Barkin Says Economy Looks ‘Great’ but Uncertainty Elevated

He hasn’t decided whether he will support another cut in the benchmark policy rate next month…

https://www.bloomberg.com/news/articles/2019-08-28/fed-s-barkin-says-economy-looks-great-but-uncertainty-elevated

Paz de la Huerta Brings Disney Execs into Harvey Weinstein Lawsuit

Disney, its CEO Bob Iger and its ex-chairman Michael Eisner are being brought into Paz de la Huerta’s sexual assault lawsuit against Harvey Weinstein…

https://www.hollywoodreporter.com/thr-esq/paz-de-la-huerta-adds-bob-iger-michael-eisner-harvey-weinstein-lawsuit-1234979

Today – Someone, we guess August performance gamers, saved stocks yesterday.  They aggressively, some would say manipulated, ESU higher from 9:39 ET until 12:53 ET.  Then, they disappeared.

August performance gaming should be in full bloom.  What is the disposition of defensive asset allocators?  Will the manipulation to game August performance push both stocks and bonds higher?

MSNBC’s Lawrence O’Donnell @Lawrence on Tuesday night: A source close to Deutsche Bank says Trump’s tax returns show he pays very little income tax and, more importantly, that his loans have Russian co-signers. If true, that explains every kind word Trump has ever said about Russia and Putin.

   @Lawrence: Last night I made an error in judgment by reporting an item about the president’s finances that didn’t go through our rigorous verification and standards process. I shouldn’t have reported it and I was wrong to discuss it on the air. I will address the issue on my show tonight.

 

@OANN: Lawyers for Pres. Trump send a demand for a retraction to NBC regarding a segment of Lawrence O’Donnell’s show where he said “Russian oligarchs” co-signed Deutsche Bank loans to Trump, saying the claim is “false and defamatory.”

 

@Rasmussen_Poll: Voters Don’t Trust Political News, Say Most Reporters Want to Stop Trump…

32% of Likely U.S. Voters trust the political news they are getting.  54% do not…. http://bit.ly/2TTPDzk

@almostjingo: Deutsche Bank donated $107,689 to the Hillary Clinton campaign in 2016 and $22,600 to @JebBush and Hilda was paid by them for speeches but sure, they’re colluding with @realDonaldTrum

Justice Department inspector general has done separate report on James Comey

It is not clear why the inspector general, Michael Horowitz, chose to write a separate report on Comey…

https://www.washingtonexaminer.com/opinion/columnists/justice-inspector-general-has-done-separate-report-on-james-comey

Daily Beast: Dems Sound Alarm: Trump Is ‘Carpet-Bombing’ Us in Key Battlegrounds

https://www.thedailybeast.com/democrats-sound-alarm-trump-is-carpet-bombing-us-in-key-battlegrounds

 

@TomBevanRCP: With FIVE (!!) new polls in last 24 hours, Biden’s lead snaps back 2+ points to 10.7.

 

FBI and IRS Raid Home of UAW President Gary Jones – Find “Bundles of Cash” – Nationwide Union Corruption Sweep… http://theconservativetreehouse.com/2019/08/28/fbi-and-irs-raid-home-of-uaw-president-gary-jones-find-bundles-of-cash-nationwide-union-corruption-sweep/

 

Climate Change Could Leave Obama’s Possible New [$15m] Mansion Underwater, According To Researchers Funded by Obama Admin [BHO’s purchase implies he thinks climate change is a hoax.]

https://dailycaller.com/2019/08/26/obama-marthas-vineyard-mansion-climate-change/

Well that is all for today

I will see you Friday night.

 

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