SEPT 11//OFFICIAL SECTOR CONTROLLING ALL MARKETS; SHORT SQUEEZE ON THE DOW PROPELS IT HIGHER BY 227 POINTS//GOLD WITHSTANDS ANOTHER ATTACK AND RISES BY $5.30 TO $1495.30//SILVER STANDS PAT DOWN ONE CENT TO $18.10//DESPITE 4 CONSECUTIVE RAIDS, TOTAL OI ( COMEX + EXCHANGE FOR PHYSICAL) RISE IN BOTH GOLD AND SILVER//CONGRESSMAN MOONEY SENDS HIS 3RD LETTER TO THE CFTC AND TREASURY..A MUST READ//ALSO JOHN WILLIAMS INTERVIEWED BY GREG HUNTER: A MUST READ.//

GOLD:$1495.30 UP $5.30 (COMEX TO COMEX CLOSING)

 

 

 

 

 

 

 

 

 

 

 

Silver:$18.10 DOWN 1 CENT  (COMEX TO COMEX CLOSING)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing access prices:

Gold : $1496.40

 

silver:  $18.12

 

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 7/22

EXCHANGE: COMEX
CONTRACT: SEPTEMBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,490.300000000 USD
INTENT DATE: 09/10/2019 DELIVERY DATE: 09/12/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 11
661 H JP MORGAN 7
686 C INTL FCSTONE 9
737 C ADVANTAGE 7 4
905 C ADM 6
____________________________________________________________________________________________

TOTAL: 22 22

NUMBER OF NOTICES FILED TODAY FOR  SEPT CONTRACT: 22 NOTICE(S) FOR 2200 OZ (0.0604 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1713 NOTICES FOR 171,300 OZ  (5.3282 TONNES)

 

 

 

SILVER

 

FOR SEPT

 

 

156 NOTICE(S) FILED TODAY FOR 780,000  OZ/

 

total number of notices filed so far this month: 7603 for   38,015,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 10,088 DOWN 8 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 10,086 DOWN 12

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A TINY  SIZED 365 CONTRACTS FROM 217,798 DOWN TO 217,433 WITH THE 2 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 SEPT 0, FOR DEC:  1510 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1510 CONTRACTS. WITH THE TRANSFER OF 1510 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 1510 EFP CONTRACTS TRANSLATES INTO 7.50 MILLION OZ  ACCOMPANYING:

1.THE 2 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.

40.225   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

WE AGAIN HAD  SOME ATTEMPTED COVERING OF BANKER SHORTS  AT THE SILVER COMEX YESTERDAY WITH THE 4TH CONSECUTIVE RAID ORCHESTRATED BY THE CROOKED BANKERS/OFFICIAL SECTOR.  HOWEVER IN TOTAL SYMPATHY WITH YESTERDAY,  THE TOTAL OI INCREASED DESPITE THE ATTEMPTED  DRUBBING IN PRICE OF OUR SILVER  METAL. OUR GOOD FRIENDS ARE GETTING NOWHERE WITH THE RAIDS AS THE LONGS REFUSE TO BE FLEECED.

 

THE LIQUIDATION OF COMEX OI OF SPREADERS HAVE STOPPED AND WE WILL NOW COMMENCE WITH THE ACCUMULATION PHASE OF SPREADERS GOLD OPEN INTEREST

 

 

 

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

16,972 CONTRACTS (FOR 7 TRADING DAYS TOTAL 16,972 CONTRACTS) OR 84.860 MILLION OZ: (AVERAGE PER DAY: 2388 CONTRACTS OR 11.94 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST:  84.860 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 12.11% 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:          1634.53   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

AUG. 2019  TOTAL EFP ISSUANCE;                                                 216.47 MILLION OZ

RESULT: WE HAD A TINT SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 365, WITH THE 2 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 1510 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

 

TODAY WE GAINED A GOOD  SIZED: 818 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1510 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 365  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 2 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $18.11 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. 1.081 BILLION OZ TO BE EXACT or 154% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 156 NOTICE(S) FOR 780,000 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.  

 

.

 

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/  SEPT 40.225 MILLION OZ// 
  2.  THE  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 OVER FOR SILVER..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR GOLD.  THEY WILL ACCUMULATE CONSIDERABLE AMOUNT OF THE CONTRACTS AND THEN LIQUIDATE ONE WEEK PRIOR TO FIRST DAY NOTICE

FOR THOSE OF YOU WHO ARE NEWCOMERS HERE IS A BRIEF SYNOPSIS OF HOW THE CROOKS FLEECE UNSUSPECTING LONGS IN THE SPREADING ENDEAVOUR;

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

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

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

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF SEPT HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF OCTOBER FOR GOLD.

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

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

 

 

 

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A FAIR SIZED 3042 CONTRACTS, TO 614,753 DESPITE  THE  HUGE WHACK GOLD TOOK YESTERDAY  ( $11.25 FALL)// /

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 3860 CONTRACTS:

OCT 2019: 0 CONTRACTS, DEC>  3860 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 614,753,,.  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 GOOD GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 818 CONTRACTS: 3042 CONTRACTS DECREASED AT THE COMEX  AND 3860 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 818 CONTRACTS OR 81,800 OZ OR 2.544 TONNES.  YESTERDAY WE HAD A  LOSS OF $11.25 IN GOLD TRADING….AND WITH THAT LOSS IN  PRICE, WE  HAD A GOOD GAIN IN GOLD TONNAGE OF 2.544  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON BUT LIKE SILVER IT WAS TO NO AVAIL.  OUR BANKER FRIENDS/OFFICIAL SECTOR ARE GAINING NOTHING WITH THEIR CONTINUAL RAIDS. 

 

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 52,496 CONTRACTS OR 5,249,600 oz OR 163.28 TONNES (7 TRADING DAY AND THUS AVERAGING: 7499 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAYS IN  TONNES: 163.28 TONNES

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

THUS EFP TRANSFERS REPRESENTS 163.28/3550 x 100% TONNES =4.59% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     4314.89  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

AUG. 2019 TOTAL ISSUANCE:                    639.62 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 FAIR SIZED DECREASE IN OI AT THE COMEX OF 3042 DESPITE THE HUGE  PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($11.25)) //.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 3860 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 3860 EFP CONTRACTS ISSUED, WE  HAD A GOOD GAIN OF 818 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

3860 CONTRACTS MOVE TO LONDON AND 3042 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 2.544 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED DESPITE THE  LOSS IN PRICE OF $11.25 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

THE COMEX IS NOW UNDER FULL ASSAULT WITH RESPECT TO GOLD AND SILVER.

 

 

 

 

 

 

 

 

we had:  22 notice(s) filed upon for 2200 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD UP $5.30 TODAY//(COMEX-TO COMEX)

NO CHANGES IN GOLD INVENTORY AT THE GLD//

INVENTORY RESTS AT 882.42 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 1 CENT TODAY:

NO CHANGES IN SILVER INVENTORY AT THE SLV//

 

/INVENTORY RESTS AT 379.401 MILLION OZ.

 

 

 

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/

 

 

 

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER FELL BY A TINY SIZED 365 CONTRACTS from 217,798 DOWN TO 217,433 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 SEPT. 0; FOR DEC  1510  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1510 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 365  CONTRACTS TO THE 1510 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD SIZED GAIN OF 1145 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 5.7250 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// AND FINALLY SEPT: 40,225 MILLION OZ/

 

 

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 2 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 1510 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)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 12.39 POINTS OR 0.41%  //Hang Sang CLOSED UP 475.38 POINTS OR 1/78%   /The Nikkei closed UP 205.66 POINTS OR 0.96%//Australia’s all ordinaires CLOSED UP .36%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1168 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1168 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1122 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

China’s auto sector is in disarray as it crashes for the 14th time in the last 15 months, this time by a huge 9.9%

(zerohedge)

4/EUROPEAN AFFAIRS

i)UK

Farage offers Johnson a non aggression pact in order to secure a Brexit

(zerohedge)

ii)Bill Blain comments on what really is bothering him this morning. He correctly states that tomorrow’s ECB meeting is critically important if they proceed with further QE

(Bill Blain)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN/BRITAIN/GIBRALTAR

I guess now Britain understands that you can never take the word of Iran. Interestingly enough the British oil tanker captured by Iran is still in captivity.

(zerohedge)

i b)Iran/Australia

Three Australians are detained in Iran on ‘SPYING RELATED CHARGES”.   That ups the ante

(zerohedge)

ii)ISRAEL

Now this is ambitious: Netanyahu vows if elected he will annex parts of the West Bank. He claims that the USA is on side with this. His intention is to annex parts of the West Bank including the Jordan Valley. The Palestinians are not happy with this

(zerohedge)

iii)Turkey/USA/Syria

Erdogan breaks his silence as he is angry at the uSA supplying aid to the PKK in the north. Turkey considers them terrorists which they are not. Erdogan is angry for the non support as Turkey is housing 4 million migrants and this is a powder keg

(zerohedge)

6.Global Issues

Canada

Trudeau calls for an election to be held Oct 21

(zerohedge)

7. OIL ISSUES

OIl prices plunge after we learn that Trump  want to ease sanctions so as to get a face to face meeting with Rouhani.

Bolton was totally against easing sanctions.

(zerohedge)

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

Congressman Mooney still has no answers from Treasury or the CFTC as he asks about gold market rigging

This is his 3rd letter

For those of you who missed these letters, it is appended below

(GATA/Stefan Gleason/Mooney.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

The Fed is not going to like this especially when they will cut interest rates next week
(zerohedge)

iii) Important USA Economic Stories

a)TRUMP is at it again:  he is telling the Fed that they should cut rates to zero or less so that the uSA can refinance its debt and lengthen maturities. The fun begins tomorrow when the ECB lowers rates. Trump will pound the table why not the USA?  He is providing an impetus for gold rising

(zerohedge)

iv) Swamp commentaries)

a)My goodness.  The dept of Justice had a memo that exonerated Michael Flynn and they decided to hide it from him.  Not only that but the memo was dated Jan 30 2017 and had the full knowledge of Comey. Thus Comey lied to the President stating that there is an ongoing investigation on Flynn even though he knew Flynn had nothing to do with the Russians

(Sara Carter)

b)Jim Jordan:  The Inspector General is expected to conclude the FISA Warrants  (all4 of them) were illegally obtained

(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 FAIR SIZED 3042 CONTRACTS TO A LEVEL OF 614,753 DESPITE THE HUGE LOSS OF $11.25 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 3860 EFP CONTRACTS WERE ISSUED:

 FOR SEPT; 0 CONTRACTS: DEC: 3860   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  3860 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: 818 TOTAL CONTRACTS IN THAT 3860 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A FAIR SIZED 3042 COMEX CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD IN OUR 4TH CONSECUTIVE RAID YESTERDAY.  THE BANKERS SUCCEEDED IN LOWERING GOLD’S PRICE BY A CONSIDERABLE $11.25. HOWEVER, JUDGING BY THE STRENGTH IN GAIN OF OUR TOTAL OI CONTRACTS, THEY WERE AGAIN UNSUCCESSFUL IN THE ENDEAVOUR TO FLEECE ANY  UNSUSPECTING LONGS. 

 

 

 

 

NET GAIN ON THE TWO EXCHANGES ::  818 CONTRACTS OR 81800 OZ OR 2.544 TONNES.

We are now in the NON  active contract month of SEPT and here the open interest stands at 46 CONTRACTS and  we lost 50 contracts.  We had 51 notices filed yesterday so despite the raid and liquidation of contracts we gained 1 contracts or an additional 100 oz of gold that will stand for delivery at the comex and the siege continues as the story for physical gold is the name of the game despite the criminal antics of the bankers.

The next active delivery month is October and here the OI FELL by 1345 contracts DOWN to 40.353. The month of November saw a gain of  67 contracts and thus the OI is rises to 94.  The very big December contract month saw its oi fall by 2478 contracts down to 454,981.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 22 NOTICES FILED TODAY AT THE COMEX FOR  2200 OZ. (.0684 TONNES)

 

 

 

 

 

 

 

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And now for the wild silver comex results.

Total COMEX SILVER FELL BY A TINY SIZED 365CONTRACTS FROM 217,798 DOWN TO 217,433 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX GAIN OCCURRED WITH A 2 CENT GAIN IN PRICING.//YESTERDAY.

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF SEPT.  HERE WE HAVE 598 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 320 CONTRACTS.  WE HAD 458 NOTICES FILED YESTERDAY SO WE AGAIN SURPRISINGLY GAINED A FULL 138 CONTRACTS OR AN ADDITIONAL 690,000 OZ OF SILVER WILL STAND AT THE COMEX…. AND THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARD AS WELL AS NEGATING A FIAT BONUS. LET US WAIT AND SEE IF THEY ARE SUCCESSFUL IN OBTAINING PHYSICAL METAL ON THIS SIDE OF THE POND..  THE NEXT NON ACTIVE CONTRACT MONTH IS OCTOBER AND IT RECEIVED ANOTHER 30 CONTRACTS TO STAND AT 1670. NOVEMBER SAW A SMALL GAIN OF 5 CONTRACTS TO STAND AT 122. THE NEXT ACTIVE DELIVERY MONTH AFTER SEPT IS DECEMBER AND HERE THE OI FALLS BY 452 CONTRACTS DOWN TO 170,836.

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 156 notice(s) filed for 780,000, OZ for the SEPT, 2019 COMEX contract for silver

 

Trading Volumes on the COMEX TODAY: 150,989  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  413,321  contracts

 

 

 

 

 

INITIAL standings for  SEPT/GOLD

SEPT 11/2019

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

 

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
22 notice(s)
 2200 OZ
(0.0684 TONNES)
No of oz to be served (notices)
24 contracts
(2400 oz)
.0747 TONNES
Total monthly oz gold served (contracts) so far this month
1713 notices
171300 OZ
5.32814 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entry:

We had 0 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else: 0

 

 

 

total gold deposits: 0  oz

 

very little gold arrives from outside/ zero amount  arrived   today

we had 0 gold withdrawal from the customer account:

 

 

 

total gold withdrawals; nil  oz

 

 

i) we had 0 adjustment today
FOR THE SEPT 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 22 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 7 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

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To calculate the INITIAL total number of gold ounces standing for the SEPT /2019. contract month, we take the total number of notices filed so far for the month (1713) x 100 oz , to which we add the difference between the open interest for the front month of  SEPT. (46 contract) minus the number of notices served upon today (22 x 100 oz per contract) equals 173,700 OZ OR 5.402 TONNES) the number of ounces standing in this NON active month of SEPT

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

No of notices served (1713 x 100 oz)  + (46)OI for the front month minus the number of notices served upon today (22 x 100 oz )which equals 173,600 oz standing OR 5.402 TONNES in this  active delivery month of AUGUST.

 

We surprisingly again gained 1 contract or an additional 100 oz will seek metal on this side of the pond instead of morphing over to London.  The gold comex is now under siege for any remaining physical metal.

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!!  WE HAVE ONLY 22.91 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 27.153  TONNES OF GOLD STANDING //AUGUST AND 5.402 TONNES IN SEPT.//

 

ACCORDING TO COMEX RULES:

FOR A SETTLEMENT YOU NEED A TRANSFER FROM THE DEALER (REGISTERED) ACCOUNT OVER TO AN ELIGIBLE ACCOUNT. FOR THE  ENTIRE MONTH OF AUGUST WE HAD O TRANSACTIONS ON THIS FRONT AND THUS I WILL ADD THE 27.153 TONNES TO THE 5.402 TONNES (EQUALS 32.555 TONNES) AGAINST THE 22.91 TONNES OF REGISTERED GOLD.

 

total registered or dealer gold:  736,702.381 oz or  22.91 tonnes 
total registered and eligible (customer) gold;   8,098,996.169 oz 251.912 tonnes

IN THE LAST 35 MONTHS 107 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 SEPT.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
SEPT 11 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 695,929.587 oz
CNT

Int. Delaware

 

 

Deposits to the Dealer Inventory
1,007,029.735 oz
Brinks

 

Deposits to the Customer Inventory
893,101.610 oz
HSBC
Scotia
No of oz served today (contracts)
156
CONTRACT(S)
(780,000 OZ)
No of oz to be served (notices)
442 contracts
 2,210,000 oz)
Total monthly oz silver served (contracts)  7603 contracts

38,015,000 oz)

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

**

 

we had 1 inventory movement at the dealer side of things

i) Into Brinks dealer:  1,007,029.735 oz

 

total dealer deposits: 1,007,029.735  oz

total dealer withdrawals: nil oz

we had  2 deposits into the customer account

into JPMorgan:  nil  oz

 

ii) Into Scotia: 393,215.000 oz  ????

iii Into HSBC: 599,886.610 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:  893,101.610  oz

 

we had 2 withdrawals out of the customer account:

 

 

i) Out of CNT:  615,685.579 oz

ii) Out of Scotia: 300,582.67 oz

 

 

 

 

 

 

total 301,895.740  oz

 

we had 1 adjustment :

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

 

total dealer silver:  93.110 million

total dealer + customer silver:  307.104 million oz

The total number of notices filed today for the SEPTEMBER 2019. contract month is represented by 156 contract(s) FOR 780,000 oz

To calculate the number of silver ounces that will stand for delivery in SEPTEMBER, we take the total number of notices filed for the month so far at 7603 x 5,000 oz = 38,015,000 oz to which we add the difference between the open interest for the front month of SEPT. (598) and the number of notices served upon today 156 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the SEPT/2019 contract month: 7603 (notices served so far) x 5000 oz + OI for front month of SEPT (598)- number of notices served upon today (156)x 5000 oz equals 40,225,000 oz of silver standing for the SEPT contract month. 

We gained another strong 138 contracts or a huge 690,000 additional oz of silver will stand at the comex as these guys refused to morph into London based forwards.

LADIES AND GENTLEMEN:  THE COMEX IS UNDER ASSAULT FOR BOTH PHYSICAL GOLD AND SILVER AND DESPITE THE MASSIVE RAID, LONGS CONTINUE WITH THEIR HUNT AT THE COMEX FOR PHYSICAL METAL.. ACTUALLY IT IS QUITE SURREAL TO SEE  MASSIVE STRONG QUEUE JUMPING, (MEANING A HUGE DEMAND FOR PHYSICAL SILVER/GOLD) AND YET WE WITNESS THE CONSTANT WHACKING OF THE PRICE OF OUR TWO METALS. IT PROVES WE HAVE TWO MARKETS: A DEMAND FOR A PHYSICAL METAL AND A WEAKER DEMAND FOR PAPER GOLD/SILVER CAUSED BY OUR INFINITE SHORTING OF THAT PAPER METAL BY THE BANKERS/OFFICIAL SECTOR.

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 156 notice(s) filed for 780,000 OZ for the SEPT, 2019 COMEX contract for silver

 

 

 

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TODAY’S ESTIMATED SILVER VOLUME:  41,359 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 124,266 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 124,266 CONTRACTS EQUATES to 621 million  OZ 88.7% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.54% ((SEPT 11/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.41% to NAV (SEPT 11/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.54%

(courtesy Sprott/GATA)

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

NAV 15.16 TRADING 14.62/DISCOUNT 3.56

 

 

END

And now the Gold inventory at the GLD/

SEPT 11/WITH GOLD UP $5.30 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 882.42 TONNES

SEPT 10/WITH GOLD DOWN $11.75 TODAY: A HUGE 7.33 PAPER TONNES OF GOLD WAS WITHDRAWN FROM THE GLD/INVENTORY RESTS AT 882.42 TONNES

SEPT 9/WITH GOLD DOWN $4.75 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 889.75 TONNES

SEPT 6//WITH GOLD DOWN $9.80: A BIG CHANGE IN GOLD INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 6.15 TONNES//INVENTORY RESTS AT 889.75 TONNES

SEPT 5/WITH GOLD DOWN $33.80 TODAY: A BIG ADDITION (DEPOSIT) OF 5.86 OF PAPER GOLD TONNES PROBABLY ADDED BEFORE THE RAID/EXPECT A HUGE PAPER WITHDRAWAL TOMORROW:  INVENTORY RESTS AT 895.90 TONNES

SEPT 4/WITH GOLD UP $5.00 TODAY: A BIG CHANGE: A HUGE PAPER DEPOSIT OF:  11.73 TONNES/INVENTORY RESTS AT ….890.04 TONNES

SEPT 3/WITH GOLD UP $25.60 TODAY: STRANGE: A WITHDRAWAL OF 2.05 PAPER TONNES FROM THE GLD// /INVENTORY RESTS AT 878.31 TONNES

AUGUST 30 WITH GOLD DOWN $7.00: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.05 TONNES/INVENTORY RESTS AT 880.36 TONNES

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

 

SEPT 11/2019/ Inventory rests tonight at 889.75 tonnes

 

 

*IN LAST 661 TRADING DAYS: 52.96 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 561- TRADING DAYS: A NET 113.69 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

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end

 

Now the SLV Inventory/

SEPT 11/WITH SILVER DOWN ONE CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 379.401 MILLION OZ//

SEPT 10/WITH SILVER UP 2 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV” A WITHDRAWAL OF 1.778 MILLION PAPER OZ OF SILVER///INVENTORY RESTS AT 379.401 MILLION OZ//

SEPT 9/WITH SILVER DOWN 6 CENTS TODAY: A MAMMOTH CHANGE IN SILVER INVENTORY: A WITHDRAWAL OF 5.425 MILLION PAPER OZ/INVENTORY RESTS AT 381.179 MILLION OZ../

SEPT 6/WITH SILVER DOWN ANOTHER 60 CENTS TODAY: A RATHER TIMID CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 842,000 PAPER OZ FROM THE SLV///INVENTORY RESTS AT 386.604 MILLION OZ//

SEPT 5/WITH SILVER WHACKED 68 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 387.446 MILLION OZ//

SEPT 4/WITH SILVER UP 28 CENTS TODAY:STRANGE!! A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 708,000 OZ FROM SLV’S INVENTORY:/INVENTORY RESTS AT 387.446 MILLION OZ//

SEPT 3/WITH SILVER UP 83 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT  388.154 MILLION OZ/

AUGUST 30/WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 388.154 TONNES

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//

SEPT 11/2019:

 

 

Inventory 379.401 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.08/ and libor 6 month duration 2.03

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

G0LD LENDING RATE: – .05

 

XXXXXXXX

12 Month MM GOFO
+ 1.99%

LIBOR FOR 12 MONTH DURATION: 1.97

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.02

RATES NEGATIVE ALL THE WAY OUT TO ONE YEAR.

end

 

 

end

 

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

Citigroup Say Gold May Top Record At $2,000 Per Ounce

◆ Gold will “trade stronger for longer” and Citigroup see gold possibly topping new nominal highs at $2,000 an ounce in the next year or two

◆ Citi is bullish on gold due to the prospect of the Fed cutting interest rates to zero, heightened geopolitical tensions and rising risks of a global recession (see News below)

◆ Strong demand from institutional investors and central bank diversification will provide support for gold prices

◆ Citigroup says recession risks and strong investor demand underpin their positive outlook for gold

Source: Bloomberg
Gold in USD – CPI Inflation Adjusted – 1970 to Sept 2019. Source: Macrotrends.net

NEWS and COMMENTARY

Citigroup Says Gold May Top Record – Bloomberg

Gold prices inch higher, all eyes on ECB meeting

Trump ousts NSA Adviser Bolton, says they ‘disagreed strongly’ on policy

Consumer Credit Card Debt Explodes In July Despite Rates At 18-Year Highs

Tech stock bubble continues – but wise investors should look for value elsewhere

“History doesn’t repeat itself, but it does rhyme” – Mauldin on Dalio

‘I’m even more bullish on silver than on gold’ – Ned Naylor-Leyland

Record-High Debt And Record-Low Yields May See Gold At $10,000 – Holmes

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

10-Sep-19 1494.60 1498.25, 1211.52 1211.34 & 1353.51 1357.11
09-Sep-19 1509.95 1509.20, 1223.81 1220.34 & 1368.62 1364.92
06-Sep-19 1504.95 1523.70, 1223.52 1237.09 & 1363.94 1378.49
05-Sep-19 1542.60 1529.10, 1257.06 1238.72 & 1397.44 1380.78
04-Sep-19 1538.80 1546.10, 1265.05 1269.97 & 1397.69 1403.86
03-Sep-19 1532.45 1537.85, 1278.06 1277.80 & 1400.35 1403.44
02-Sep-19 1523.35 1525.95, 1260.42 1265.01 & 1388.69 1391.51
30-Aug-19 1526.55 1528.40, 1253.14 1251.15 & 1382.75 1383.51

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

 

Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Congressman Mooney still has no answers from Treasury or the CFTC as he asks about gold market rigging

This is his 3rd letter

For those of you who missed these letters, it is appended below

(GATA/Stefan Gleason/Mooney.GATA)

Congressman keeps pressing Treasury, CFTC about gold market rigging

 Section: 

10:23a ET Tuesday, September 10, 2019

Dear Friend of GATA and Gold:

U.S. Rep. Alex X. Mooney, R-West Virginia, is continuing his efforts to get answers from the U.S. Treasury Department, Federal Reserve, and Commodity Futures Trading Commission about surreptitious interventions by the U.S. government in the financial and commodity markets and particularly the gold and silver markets.

… 

Mooney’s efforts began with letters sent to the Federal Reserve chairman and treasury secretary in April 2018:http://www.gata.org/node/18210

In July 2018 the Fed and Treasury responded to Mooney but only incompletely, the Fed denying that it was trading in gold but refusing to say whether it is trading in other markets, the Treasury giving a partial denial of gold trading but failing to answer about the government’s policy toward gold:

http://www.gata.org/node/18407

In February this year Mooney asked the CFTC, as GATA already had done, if it has jurisdiction over manipulative trading undertaken by the U.S. government or brokers acting for the U.S. government, or if such manipulative trading is authorized by federal law:

http://www.gata.org/node/18832

The CFTC has never responded to GATA or to Mooney.

Summarizing the major questions that remain unanswered:

1) What is U.S. government policy toward gold? Is the policy still to drive gold out of the world financial system in favor of the U.S. dollar, as State Department records show the policy was in the 1970s?

2) Is the Treasury Department’s Exchange Stabilization Fund transacting in gold?

3) What markets are the Fed and Treasury trading in, through what mechanisms, and for what purposes?

4) Does the CFTC have jurisdiction over manipulative trading by the U.S. government or its agents?

5) Has the U.S. gold reserve ever been audited for any encumbrances? If so, what were the findings?

Mooney’s latest letter to Treasury Secretary Steven Mnuchin, sent last month, is here:

http://www.gata.org/files/MooneyToTreasury-08-19-2019.pdf

Mooney’s latest letter to the CFTC, also sent last month, is here:

http://www.gata.org/files/MooneyToCFTC-08-19-2019.pdf

Of course the refusal of the Fed, Treasury, and CFTC to answer the congressman’s questions promptly and fully is strong evidence that the U.S. government is deeply and comprehensively involved in market manipulation.

If only mainstream financial news organizations and financial market analysts had the courage and integrity to pose Mooney’s questions on their own behalf. Then the world might enjoy some actual financial journalism — and the market rigging and the imperialism the rigging represents might be defeated and free and transparent markets restored along with limited and accountable government.

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

* * *

Help keep GATA going

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

http://www.gata.org

To contribute to GATA, please visit:

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

Attachment Size
MooneyToTreasury-08-19-2019.pdf 143.1 KB
MooneyToCFTC-08-19-2019.pdf 85.24 KB
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 WEDNESDAY 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: 7.1168/ GETTING VERY DANGEROUSLY PAST   7:1

//OFFSHORE YUAN:  7.1122   /shanghai bourse CLOSED DOWN 12.39 POINTS OR 0.41%

HANG SANG CLOSED UP 475.38 POINTS OR 1.7

2. Nikkei closed UP 205.66 POINTS OR 0.96%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 98.59/Euro FALLS TO 1.1004

3b Japan 10 year bond yield: RISES TO. –.20/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.68/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 58.07 and Brent: 63.04

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.56%/Italian 10 yr bond yield UP to 1.03% /SPAIN 10 YR BOND YIELD UP TO 0.26%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.59: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.70

3k Gold at $1492.10 silver at: 18.12   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 6/100 in roubles/dollar) 65.32

3m oil into the 58 dollar handle for WTI and 63 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.68 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 .9940 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0938 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.56%

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 1.71% early this morning. Thirty year rate at 2.19%

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

6.  TURKISH LIRA:  UP  TO 5.7616..

US Futures Drift, Global Markets Rally As China Takes Steps To Ease Trade War

S&P500 futures were perfectly unchanged in an oddly quiet session, failing to be inspired by a ramp in European and Asian stocks, after China announced exemptions from the 25% extra tariffs put in place last year in some product categories such as pharmaceuticals and lubricant oil, in a move that is being viewed as a good will concession by China to restart the trade negotiation on good terms in October. While this has lifted sentiment in Asia and Europe, combined with a technical rebound generally in equities…

… it failed to inspire a move in US futures, while US 10Y rates appear to have peaked at 1.74% overnight and with rate locks on a record $100 billion in investment grade issuance now in the rearview mirror, expect 10Y yields to resume their slide in the coming days.

Much of Europe’s gains came on the back of the tremendous momentum-to-value shift, which according to JPM’s Marko Kolanovic has “only occurred on two days in history“, with Europe’s Stoxx 600 Index benefiting from the strong rotation into cyclical sectors that had lagged behind this year, such as automaker and banking shares.

Leading the rally in equities was once again Japanese equities with Nikkei futures up 1.1% erasing the losses from the intermediate peak in July. The lift was broad based with Asian stocks gaining, led by financial firms and material producers, as investors assessed signs that China will move to lessen the trade war’s impact and awaited the European Central Bank’s policy decision on Thursday.  Asian equities jumped in Japan and Hong Kong after the infamous twitter troll, Global Times editor Hu Xijin said in a Twitter post, that China will implement measures to ease the trade war’s impact on the world’s second-biggest economy. The moves planned by Beijing will benefit some companies from China and the U.S., Xijin said.

As a result, most markets in the region were up, with Japan and Singapore pacing gains. The Topix advanced 1.7% to a two-month high, as Japanese banks continued to rally following a rebound in U.S. Treasury yields. A weaker yen helped buoy shares of Japanese exporters. The Shanghai Composite Index dropped 0.4%, with Kweichow Moutai and Jiangsu Hengrui Medicine among the biggest drags. Haitong Securities led brokerages higher after China scrapped foreign investment limits in stock and bond markets. South Korean infrastructure shares outperformed after the departure of President Donald Trump’s national security adviser, spurring speculation the U.S. may show conciliatory gestures toward China and North Korea.

As Saxo Bank highlighted recently, economic surprises have become less and less negative with Citi’s Economic Surprise Index G10 turning almost positive. If we are right that central banks will deliver enough monetary stimulus, with ECB starting tomorrow, and macro data begin to surprise positively then the rally could continue.

Equities have rebounded sharply in September on hopes for fresh monetary stimulus from the ECB on Thursday (as long as there is bank tiering included in the package) and the Fed next week, while market-supportive measures by China helped lift sentiment.

“We are primed for a little bit of disappointment,” Investec’s Jeff Boswell told Bloomberg TV in Singapore. “On the QE front, whilst we’ve been expectant of something – certainly on the corporate bond-buying side that the market’s been expecting – it is unlikely to come tomorrow.”

In rates, treasury 10-year notes and similar German bunds drifted, after their yields earlier on Wednesday touched one-month highs. After hitting a session high of 1.74%, the 10Y Treasury dropped to session lows of 1.7057%, as rate locks on $100 billion of new investment grade issuance. Treasuries also halted a five-day decline as traders positioned before a pivotal eight-day period that includes meetings of the world’s three major central banks.

In FX, the yen fell for a third day after China announced measures to ease the negative impact of the trade war, reducing demand for haven assets. The pound rose, setting course for its third day of gains, as Prime Minister Boris Johnson was said to consider a fresh approach to the Irish border problem.

In commodities, oil futures climbed alongside gold.

The euro weakened, heading for its biggest drop in eight sessions.

 

Market Snapshot

  • S&P 500 futures little changed at 2,978.25
  • STOXX Europe 600 up 0.6% to 388.85
  • MXAP up 0.9% to 158.09
  • MXAPJ up 0.7% to 510.31
  • Nikkei up 1% to 21,597.76
  • Topix up 1.7% to 1,583.66
  • Hang Seng Index up 1.8% to 27,159.06
  • Shanghai Composite down 0.4% to 3,008.81
  • Sensex up 0.4% to 37,294.35
  • Australia S&P/ASX 200 up 0.4% to 6,638.04
  • Kospi up 0.8% to 2,049.20
  • Brent futures up 0.9% to $62.91/bbl
  • Gold spot up 0.4% to $1,490.99
  • U.S. Dollar Index up 0.2% to 98.52
  • German 10Y yield rose 1.0 bps to -0.537%
  • Euro down 0.2% to $1.1024
  • Italian 10Y yield rose 7.6 bps to 0.679%
  • Spanish 10Y yield rose 1.9 bps to 0.278%

Top Overnight News

  • China announced a range of U.S. goods to be exempted from 25% extra tariffs put in place last year, as the government seeks to ease the impact from the trade war without lifting charges on major agricultural items like soybeans and pork.
  • President Donald Trump said he fired his hawkish national security adviser, John Bolton, after disagreeing “strongly” with many of his positions, ending a tumultuous tenure marked by multiple setbacks in U.S. foreign policy.
  • Hong Kong Exchanges and Clearing Ltd. made a surprise $36.6 billion bid for London Stock Exchange Group Plc.
  • German Chancellor Angela Merkel said her government will work until the “last day” to ensure an orderly U.K. departure from the European Union but insisted Germany is ready for a no- deal Brexit.
  • The European Central Bank is about to turn the screws again on financial institutions by diving even deeper into negative interest rates. For holders of German and French government bonds, this week’s European Central Bank meeting is coming just in the nick of time.
  • President Donald Trump said he fired his hawkish national security adviser, John Bolton, after disagreeing “strongly” with many of his positions, ending a tumultuous tenure marked by multiple setbacks in U.S. foreign policy
  • Pound volatility is at emerging-market levels and U.K. assets are set for a substantial repricing once the Brexit outcome becomes known, according to Bank of England Governor Mark Carney
  • A cross-party group is seeking a way out of the Brexit “nightmare” by working together to find a deal that can secure a majority in Parliament, suggesting a Northern Ireland- only backstop may be one answer

Asian equity markets eventually traded mostly higher as the region shrugged-off the indecision from Wall St, which had been subdued by the continued global bond rout and tentativeness ahead of this week’s ECB. ASX 200 (+0.3%) and Nikkei 225 (+1.0%) were higher but with gains in Australia capped as the outperformance in mining names was counterbalanced by weakness in tech, while Tokyo exporters continued to reap the benefits of recent currency weakness and after source reports suggested BoJ policymakers could be open to additional easing measures. Advances were also seen across the Apple supply chain in Japan and Taiwan following the tech giant’s launch event where it announced a new streaming service and health app, as well as new iWatch, iPhone and iPad models. Hang Seng (+1.7%) and Shanghai Comp. (-0.4%) were mixed after a tepid PBoC liquidity effort in which the mainland failed to take impetus from China’s fresh efforts to further open its financial markets by dropping QFII and RQFII quota limits. Sources noted China is ready to sweeten a deal by buying US goods, however, the report added that a purchase agreement is no certainty and would be in exchange for a delay on tariffs as well as an easing of restrictions on Huawei. China’s Global Times Editor also later suggested China will introduce important measures to ease the impact from the trade war which would benefit some companies from both China and the US which briefly fuelled appetite for risk. Finally, 10yr JGBs were lower amid a continuation of the global bond rout which was partly attributed to this week’s supply and heavy corporate issuances, with weaker results across all metrics in today’s 5yr JGB auction adding to the pressure.

Top Asian News

  • Duterte Will Ignore South China Sea Ruling for China Oil Deal
  • BOJ’s Dilemma Spurs Speculation on Reverse ‘Operation Twist’
  • Hong Kong Stocks Climb to Six-Week High as Developers Jump
  • Asia Apple Suppliers Rise as MS Sees IPhone Price Driving Demand

Major European bourses are broadly in the green [Eurostoxx 50 +0.5%], following on from a similar APAC lead as sentiment is supported by China releasing a tariff exemption list for the US, effective from September 17th. Items on the list will not be subject to additional tariffs imposed by China on US goods as countermeasures to trade action taken by the US, however, the list does not include corn, soybean or pork. Spain’s IBEX (U/C) is the underperformer thus far amid disappointing earnings from heavyweight Inditex (-2.9%) whilst broad-based gains are seen across the region. Sectors are mixed with defensive sectors lagging, although the energy sector also feels some headwind from yesterday’s price decline in the oil complex. Turning to individual movers, LSE (+5.6%) shares spiked higher amid reports that Hong Kong Exchanges and Clearing have proposed a combination with LSE, terms of proposed deal would imply an enterprise value of GBP 31.6bln, and the transaction implies a value of GBP 83.61 for each LSE share. LSE said its board will consider the proposal. On the flip side, Suez (-1.3%) and Kone (-1.9%) opened lower amid downgrades, although the former saw some upside amid reports that the Co. won an approx. EUR 1bln treatment contract for the Dongying China chemical plant, contract is for 50 years.

Top European News

  • Merkel Answers IMF, Saying Lack of Money Not Germany’s Problem
  • British Airways Scraps Flights as Impact of Pilot Strike Lingers
  • Nordea’s Wholesale Banking Unit in Need of ‘Thorough Review’
  • Foreign Binge on European Bonds Is Ending Just in Time for ECB

In FX, the Euro is not quite the biggest G10 loser or underperformer, but the single currency has been a notable mover after topping out above 1.1050 against the Dollar and failing to close above key resistance just below yet again (1.1049 represents a 38.2% retracement of the decline from 1.1249 to 1.0926 ytd low). Eur/Gbp selling into the early 9 am fix may also have impacted, as the cross retests recent sub-0.8925 lows, but Eur/Usd is holding around the 10 DMA and bids said to be sitting just below (at 1.1022 and 1.1020 respectively) with one eye on Thursday’s ECB meeting and some form of easing/stimulus as German institutes continue to downgrade GDP estimates, while the other keeps tabs on higher global bond yields/spreads.

  • JPY/CHF – More safe-haven unwinding has nudged the Yen and Franc down to circa 107.85 and 0.9940 vs the Buck, and Usd/Jpy has breached a Fib, exporter offers plus a cloud top formation in the process, at 107.49, 107.50 and 107.71, with some fundamental/macro impetus stemming from another upturn in US Treasury yields and more curve steepening against the backdrop of positive-looking US-China trade headlines (such as Chinese tariff exemptions and buying US goods as a sweetener for upcoming talks).
  • GBP/AUD/NZD/CAD – All narrowly mixed vs the Greenback, with Cable forming multiple/lower peaks ahead of 1.2400 and reported stops at 1.2385+ and the Aussie fading into 0.6900 and the 100 DMA at 0.6907 following another downbeat sentiment survey overnight (Westpac consumer confidence turned negative). However, the Pound has not seen much angst in wake of an official ruling in Scotland against UK PM Johnson’s Parliament prorogation, while Aud/Usd is still outpacing Nzd/Usd as the latter remains heavy on the 0.6400 handle and the Kiwi struggles to stay above 1.0700 in cross terms ahead of NZ manufacturing PMI tomorrow and Westpac’s Q3 consumer survey on Friday. Elsewhere, the Loonie is maintaining its post-Canadian jobs momentum, but finding 1.3150 a tough hurdle to overcome convincingly.
  • NOK/SEK – Even though crude prices remain on a roll and the Norges Bank is still on course to take another step towards policy normalisation before the Riksbank (albeit not likely next week given yesterday’s soft inflation data), Eur/Nok is hovering around 9.8850 within a 9.9010-9.8765 range in contrast to Eur/Sek nearer the base of 10.6990-6595 parameters in wake of latest Riksbank comments reaffirming tightening guidance and dismissing weaker than expected Swedish CPI/CPIF metrics.
  • EM – The Rand’s bull run has been derailed around 14.6100 vs the Dollar and a deterioration in SA business confidence has hardly helped as Usd/Zar rebounds to 14.7000+, even though Moody’s indicated low risk of a ratings downgrade this year.

In commodities, WTI and Brent futures are holding onto most of its intra-day gains/consolidation following yesterday’s decline which was induced by the EIA cutting its 2019 and 2020 global oil demand forecasts by 100k BPD and 30k BPD, whilst downside was exacerbated after US President Trump fired the White House National Security Advisor/known policy-hawk Bolton. Prices have rebounded and remain on an upward trajectory thus far with WTI futures around the 58.00/bbl mark whilst its Brent counterpart trades just under 63.00/bbl (at time of writing). This morning also saw the release of the OPEC Monthly Oil Report in which its 2019 global oil demand growth forecast was revised lower by 80k BPD, in-fitting with the EIA STEO, next up IEA will release its report tomorrow at 0900BST. Ahead of tomorrow’s JMMC meeting, the Iraqi Oil Minister noted that the producers will have a discussion on whether or not there is the need for a deeper production cut with OPEC+, although this was rebuffed by the Russian Energy Minister who also expressed concern regarding global economy. Novak added that the slowing global demand for oil will also be discussed at the meeting tomorrow. Elsewhere, gold prices remain capped below the 1500/oz ahead of this week’s key risk events including US CPI and the ECB rate decision, whilst copper prices are little changed with little by way of immediate catalyst. Finally, Dalian iron ore prices rose for a third session amid a decline in shipments coupled with hopes of further Chinese stimulus.

US Event Calendar

  • 8:30am: PPI Final Demand MoM, est. 0.0%, prior 0.2%; PPI Final Demand YoY, est. 1.7%, prior 1.7%
  • 8:30am: PPI Ex Food and Energy MoM, est. 0.2%, prior -0.1%; PPI Ex Food and Energy YoY, est. 2.15%, prior 2.1%
  • 10am: Wholesale Inventories MoM, est. 0.2%, prior 0.2%; Wholesale Trade Sales MoM, est. 0.5%, prior -0.3%

DB’s Jim Reid concludes the overnight wrap

Yesterday was the annual day in the diary when I wake up determined to take no notice of the new Apple product launch event and go to bed with a note in my diary to be the first in the online queue a few days later. It looks like I’ll be ordering a new phone due to the enhanced camera and a new watch due to the new fitness tracking improvements. I do believe they saw me coming.

To help me count down the hours until Friday’s pre-ordering, we have the small matter of tomorrow’s ECB meeting to look forward to. As we approach this main event, the relentless sell-off in global bond markets continues to show little sign of abating just yet. In fairness it took until the final couple of hours of the European session yesterday for yields to move notably higher on both sides of the Atlantic but the move carried on well into the US close with 10y UST yields finishing +9.1 bps at 1.735% – c.6bps occurred after Europe went home. That takes the 5-session move to 27.7bps, the steepest selloff since November 2016. The 2s10s curve didn’t do a lot though, holding steady at +5.1bps. Earlier 10y Bunds closed up +3.6bps. That now means that yields have closed higher in 4 out of the last 5 sessions with the move since the September 3rd intraday low now up to +19.5bps. The moves yesterday also meant 30y Bunds (+4.5bps) closed back in positive territory at 0.042% for the first time since August 2nd. Meanwhile BTPs sold off +7.8bps and Gilts +4.8bps.

There wasn’t actually a huge amount to report with regards to yields with the main talking point coming late in the European session with yet another pre-ECB MNI article, this time suggesting that we could see the ECB delay QE “possible contingent on further economic deterioration”. The headlines got the market excited but a closer read suggested that the base case from the main source in the article was that QE was still likely to be announced.

Equity markets have had an interesting couple of days where there’s been a big unwind in some popular trades. Several recent trends have reversed sharply, including momentum, growth versus value, and large versus small caps. Rising yields and steeper curves certainly contributed to the moves, but positioning had become stretched in recent months, as Binky highlighted in his report last week (link here ). To put the recent moves in context, the Bloomberg momentum index fell -1.26% to take its two-day loss to -2.51%, the worst since July 2008. Growth stocks have underperformed value by -4.09% over the last two days, the biggest shift since December 2016. Meanwhile, over the last seven sessions, growth stocks have underperformed -6.65%, the most since August 2009. Small caps have also underperformed versus large caps by 1.73% this week, the most in six weeks.

As for yesterday, the S&P 500, DOW and NASDAQ ended +0.03%, +0.28% and -0.04% respectively after a late rally but with tech names in particular struggling (-0.49%) again. Prior to this the STOXX 600 limped to a +0.10% gain thanks to a small bounce into the close although banks did rally another +1.83% owing to the rates move. This means that after bottoming out of August 15th, the rally off the intraday lows for European banks has been an impressive +14.52%. US banks are also up +11.89% over the same period. Elsewhere, in credit HY spreads were -8.7bps tighter in the US but +3.3bps wider in Europe. The talking point though has been primary and most notably for US IG where another 13 deals were announced yesterday. Amazingly we’ve seen deals from 80 borrowers since the Labour Day holiday.

Overnight in Asia markets are largely trading higher with the Nikkei (+0.88%), Hang Seng (+1.35%) and Kospi (+0.73%) all up. Chinese markets are trading lower after recovering from larger early losses – the Shanghai comp is trading flat while the CSI (-0.32%) and Shenzhen Comp (-0.25%) are trading down. 10y JGB yields are up +3.4bps this morning to -0.202% while US treasury yields are heading slightly lower across the curve after the recent run – 2y (-1.2bps), 5y (-1.3bps), 10y (-1.2bps) and 30y (-1.4bps). Elsewhere, futures on the S&P 500 are up +0.1% this morning while WTI is up +0.87% as a report from the American Petroleum Institute indicated that the US crude inventories fell by 7.23 mn barrels last week.

Sticking with Asia, China’s Global Times editor Hu Xijin said in a twitter post overnight that China will implement measures to ease the impact of the trade war while adding that the measures will benefit some companies from China and the US. Elsewhere South Korea’s trade minister said that the country will file a complaint today with the WTO against Japan’s export curbs on key materials used by the country’s chip and display makers.

Back to yesterday and in Germany Finance Minister Scholz confirmed that the budget proposed for next year (and up to 2023) is balanced. However Scholz also said that “it’s central that we’re in a position, with financial fundamentals we have, to respond with many, many billions, if indeed an economic crisis erupts”. It’s worth pointing out that the budget will likely not be passed until late November with the major political debate to take place around the ‘climate cabinet’ on the 20th of September. So there is still some chance that the budget adds new tax/spending measures to address the climate question.

As for the data, in the US the August NFIB small business optimism reading slid 1.6pts to 103.1 and a little worse than expectations for 103.5. For context though this index is still holding in relatively well compared to other surveys. Later on the JOLTS job data for July showed that job opening fell slightly for the second consecutive month, potentially signaling softer labour demand and reaching a five month low. Meanwhile, the report showed that hiring increased 0.1pp to 4.3%, which tends to be a strong leading indicator for wage inflation.

Here in the UK there was some decent wages data with basic earnings growth of +3.8% yoy (vs. +3.7% expected). The unemployment rate also edged down one-tenth to 3.8% after expectations were for no change. It’s worth noting that headline wages are now back in line with pre-crisis levels albeit boosted by historic revisions to the June data. Another puzzler for the BoE to square with the weaker demand data. Staying with the UK, Governor Carney sounded slightly hawkish yesterday, saying specifically that he doesn’t view negative rates as a tool in the UK. This backs up comments from Vlieghe on Monday.

To the day ahead now, which is another quiet one for data with little of note this morning while in the US the highlight is the August PPI report. Later on we’ll also get the final July wholesale inventories and trade sales prints. Away from that we get the Poland rate decision and OPEC monthly oil market report.

 

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 12.39 POINTS OR 0.41%  //Hang Sang CLOSED UP 475.38 POINTS OR 1/78%   /The Nikkei closed UP 205.66 POINTS OR 0.96%//Australia’s all ordinaires CLOSED UP .36%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1168 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1168 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1122 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

China’s auto sector is in disarray as it crashes for the 14th time in the last 15 months, this time by a huge 9.9%

(zerohedge)

Chinese Auto Sales Crash For The 14th Time In 15 Months, Falling 9.9%

Chinese auto sales continue to plunge deeper into recession, with the country’s China Passenger Car Association releasing preliminary data for August that in no way indicates that the trend could be slowing. 

Instead, it has been a “historically prolonged slump” for the world’s largest car market, according to Bloomberg.

The CPCA reported on Monday that sales of sedans, SUVs, minivans and multipurpose vehicles in August fell 9.9% to 1.59 million units. 

It has been the industry’s largest downturn in three decades and automakers are still facing headwinds as trade tensions with the U.S. continue. China has tried to roll out several stimulus measures to help the industry, including loosening car purchase restrictions, but they have done little to encourage consumption thus far.

Preliminary data from MarkLines on Japanese automakers selling in China shows Nissan and Honda posting 2.0% and 5.9% gains, respectively, while Toyota sales fell 3.8% and Mazda sales suffered the largest blow, down 20.7%. We will revisit this data toward the middle of the month, when it is updated to include additional manufacturers from around the globe.

Top Chinese SUV maker Great Wall Motor Co. saw its first half profit lower by an astounding 59% and SAIC Motor Corp., China’s biggest automaker, also cut its sales forecast recently and predicted its first annual sales decline in at least 14 years. Geely Automobile Holdings Ltd. saw sales fall 19% in August.

Finalized data from July shows that Japanese sales led the charge, posting an 11.2% gain, while Chinese brands, American brands and French brands all fell by double digits. 

For July, three of the top 4 best selling models in China were manufactured by VW, who made up 5 of the 10 best selling models in the country. Toyota, Haval, Honda and Nissan also edged their way into the top 10 list of models sold.

Exports from China in July also fell significantly:

Overall vehicle exports in July totaled 81,000 units, reflecting a 15.5% m/m decrease and a 14% y/y decline. Passenger car exports totaled 60,000 units, reflecting a 12.5% m/m decrease and a 12.9% y/y decline. Commercial vehicle exports totaled 21,000 units, reflecting a 23.1% m/m decrease and a 17% y/y decline.

And while China continues its struggles, other large markets, like India, are also tumbling. India posted a 41% sales drop for automobiles in August, the largest such drop on record. U.S. automakers eeked out a slight rebound in sales, but were helped along by the Labor Day weekend partially falling in August.

We will update this post as more data from August becomes available.

end

4/EUROPEAN AFFAIRS

Farage offers Johnson a non aggression pact in order to secure a Brexit

(zerohedge)

Farage Reaches Out To Johnson About Possible Election “Non Aggression Pact”

With the conservative party in chaos due to its botched handling of Brexit, many – including Brexit Party leader Nigel Farage – suspect that, if an election is held in the not-too-distant future, Boris Johnson and his fellow Tories won’t come out on top. Farage has long maintained that if the UK remains a member of the EU after Oct. 31, something that looks increasingly likely, then many of those who voted ‘Leave’ during the Brexit referendum will defect from the conservatives to the Brexit Party.

And with Prime Minister Boris Johnson having already lost his majority thanks to expulsions and defections, Farage has offered his one-time ally an election pact, according to Reuters, in order to give him a chance to win a majority. Otherwise, he suspects Johnson’s conservatives will “take a real kicking” in the upcoming vote.

Brexit Party leader Nigel Farage offered Prime Minister Boris Johnson an election pact on Wednesday but warned that unless there was a clean-break Brexit, the Conservatives would take a “real kicking” in any election and could not win a majority.

Johnson, who has lost his working majority in the House of Commons, wants to hold an election but parliament has ordered him to ask the EU to delay Brexit until 2020 unless he can strike a transition deal at an EU summit on Oct. 17-18.

Even though Johnson’s pleas for another general election have been rebuffed so far, Farage said it’s clear that there will be an election soon. But when that vote is held, Labour and the Conservatives will find that traditional party loyalties have shifted thanks to the Brexit impasse.

“If we go beyond the 31st of October and we are still a member of the European Union – which looks increasingly likely – then a lot of votes will shift from the Conservative Party to the Brexit Party,” Farage told reporters.

“The Conservatives will take a real kicking from Nov. 1 onwards,” he said. “I very much hope that Boris Johnson will simply look at the numbers. If we stand against them, they cannot win a majority.”

Farage said the Brexit Party had reached out to the Conservative Party about a possible non-aggression pact during the next election, but that the Brexit Party had not yet received a clear response. After emerging as the biggest gainer in May’s European Parliament elections, Farage warned that his party would likely win seats in the Midlands, south Wales and northern England, stealing votes from both Labour and the Conservatives, during another vote.

Asked what he thinks will happen during the coming weeks, Farage said he expects the EU will make some last-minute concessions to Johnson before Oct. 31, and that Johnson would try and push the deal through parliament.

“There is going to be give from Brussels – there is going to be some sort of change to the Withdrawal Agreement on the backstop but I suspect absolutely nothing else,” he said.

“My sense is that he (Johnson) comes back to the House of Commons and tries to get that through,” he said.

But if the past is any guide, Johnson likely won’t succeed. At that point, with Parliament demanding another delay, an election will likely become inevitable.

end
Bill Blain comments on what really is bothering him this morning. He correctly states that tomorrow’s ECB meeting is critically important if they proceed with further QE
(Bill Blain)

Blain: What Really, Really Worries Me Is That Markets Are Losing Faith In Central Banks

Blain’s morning porridge, submitted by Bill Blain of Shard Capital

 “It is not enough to serve our enemies with legal papers…”

Many of my readers think I’m some sort of uber-bear, repeatedly predicting some inevitable and unavoidable market Armageddon is imminent and just moments away.  While Scotsmen are seldom mistaken for a sunny day, I’m actually a fairly cheerful soul.  Even while foretelling the dire and bloody end of the financial world I always caveat it with no matter how bad the next downturn might be – the sun will come up the following morning.  However, and but again (dark clouds blank the sun) I do think we should be aware of just how tenuous all this market euphoria in Bonds and Stocks still is.

This morning we wake up to lots of stuff that could move markets:

It’s no surprise We Work’s IPO now looks in serious trouble. Largest stockholder, Softbank, asked the firm to postpone the IPO. Its junk bonds are crashing because without the IPO, We Work loses access to an agreed $6 bln bank credit-line finance. While the Junk debt price tumbles, it’s unlikely the firm launch a new bond to cover the shortfall in its curious lose more money to make less business strategy.  Investors are turning away.  We Work is now caught in the classic liquidity death spiral.  There are few ways to successful escape such a terminal stall.  Their CEO, Adam Neumann, has made himself one of the most disliked and divisive figures in Tech world, and could find himself at the receiving end of unpalatable demands he surrenders control, gives up his controlling stock – which could uncover a host of interesting surprises on how he’s milked it.

Meanwhile, the latest White House whammy, John Bolton’s departure as NSA, leaves Trump surrounded by a coterie of empty yes-men.  It might lead to less aggressive USA foreign policy, but the image of a Roman Emperor surrounded by horses he’s elevated into Senators sticks in the mind. I guess we better figure out what Mike Pompeo is thinking to figure out what Trump will tweet next.

And, I’m delighted to see the UK’s Labour Party is adopting a fairness policy towards Brexit.  Deputy Leader of the Party Tom Watson has decided it’s only electorally equitable if they split themselves as divisively as the Conservatives by announcing Labour policy is now to have a new Remain referendum before a general election, and Labour’s stance is “unequivocally” to remain. Not quite how labour policy was described to me yesterday, but it’s marvellous stuff.  We now have even less idea what Labour policy might be – which puts them in same league as Boris.

As the UK tumbles towards political civil war with both parties divided, can no one else perceive the horrible danger ahead of us? Is anyone else trying to figure out just how terrible a UK government controlled by “nice” “sensible” “caring and understanding” Liberals might be???  Imagine patronising 300 School Head Teachers telling us what to do… It’s just too frightening to contemplate… (PLEASE MAKE IT STOP!)

However, all these above are just the starters…

What really, really worries me this morning is the very real possibility markets are losing their faith in Central banks. 

What if Central Banks were to ‘fess-up and admit ZIRP and QE has been utter bunkum, hasn’t worked and we need to do something else?  What if such an outbreak of honesty triggers a Taper Tantrum of monstrous proportions?  It would kill the bond market – just a time when investors are still putting in money to bonds out of stocks in search of yield and because they believe most corporates will weather the looming global recession!

Such a confidence collapse might be about to happen.

The last 10-years of distorted markets and addiction to Central Banks has been the consequence of unwise monetary experimentation, (aided and abetted by some extraordinarily stupid political decisions, like austerity, stupid regulation and bureaucratic behaviour – read my book: The Fifth Horseman for the whole picture).

Collectively, they’ve got the financial markets into their current mess. Bond yields are a massive bubble. Stocks are overvalued. We’re due a reset.  Personally, I want to put more money into alternatives – real assets decorrelated from the distortions in financial assets.  As a private PA investor, I’m struggling to find such funds to invest in! (IDEAS PLEASE?)

My current worry is Central Bankers are increasingly trapped.  If they don’t keep interest rates artificially low rates, then both the bond and stocks bubbles will burst.  Even if they sustain the illusion, but keep on cutting, its effectiveness is weakening. The bubbles may burst anyway.  It will result in that most of amusing of financial moment… discovering who has been swimming without any swimwear. 

Stocks should be in trouble because the global economy is going to slow.  Bonds should be in trouble because low rates are not justified by inflation expectations (which are rising) or by deflationary threats – which are real, but not powerful enough to justify NIRP in a real world.  Something has to give.

There are two forces at play.

  • The first is political: In the US, the president is trying to boost his re-election chances by screaming it’s the fault of the Central Bank for not juicing the economy more by slashing rates.  In more sensible places, politicians are realising monetary policies don’t drive growth, so they want to juice economies with Fiscal policy – borrow more money to spend into growth.
  • The second force is overcoming the orthodoxy – which holds fiscal policy is dangerous because it hikes debt to levels where investors lose confidence in the economy.  It’s a fair point that’s been proven many times.

All of which makes me look at the recent headlines in Europe; the number of ECB members openly disagreeing with Draghi’s calls to further ease, or German politicians arguing against a fiscal boost for the ailing German economy. These sound very negative and orthodox.  But are we looking at a under the radar Central Banking coup in Europe?

According to a number of well briefed papers and articles, the ECB may not give us the easing and bond buying bonanza the markets have been promised.  Even French members of the ECB committee are saying “Non!”.  We’ve got senior economists like Jurgen Stark, former ECB Chief Economguesser saying “With a second asset-purchase programme the ECB will continue to disturb markets and prices do not reflect the risks anymore.”  Or how about Olli Rehn’s recent gem: “if you don’t do anything, then you don’t have any side effects, but you don’t have any impact on the economy either!”  Or the French Finance Minister, Bruno Le Maire: “We are at the end of the efficiency of monetary policy. The risks we are now facing are not related to financial stability, but how to fuel growth. The response is not only in hands of the ECB.”

Is it deliberate?  If the ECB can’t keep buying.. then maybe its time for Plan B?  These comments above all play into the hands of new ECB head, Christine Legarde, whose job will be to politically herd the felines of the ECB and European governments into a Fiscal Union to boost German and European fiscal spending.

Tomorrow’s ECB meeting is going to be critical. Don’t miss it!

end
And here is what they are expecting:
((Market Watch)

The ECB decision is coming — here’s what to expect

Sept 11, 2019 10:26 a.m. ET

ECB rate cut expected to be announced Thursday

If there’s one thing that observers agree on with respect to Thursday’s European Central Bank meeting, it’s that policy makers will announce a series of loosening measures that won’t really make much of a difference to the struggling European economy.

The ECB will announce its decision at 1:45 p.m. local time (7:45 a.m. Eastern), followed by a news conference with President Mario Draghi at 2:30 p.m. Economists at Goldman Sachs said most of the measures will be revealed in the announcement, rather than the Draghi press conference.

“Failure to act now when the inflation outlook is weakening and, especially, not using the most effective instrument (QE), would signal a remarkable change in ambition,” said Anatoli Annenkov, an economist at Société Générale, referring to quantitative easing, which the ECB could restart by resuming monthly bond purchases.

The latest data, from August, shows inflation running a full percentage point below its target of nearly 2%. At the same time, the eurozone economy is just limping along, with year-over-year growth of 1.1% in the second quarter.

Related: The ECB’s challenge: Pushing rates further into negative territory without wrecking eurozone banks

Here’s a look at what banks are expecting out of the ECB.

Firm Expectations

Bank of America Merrill Lynch 20 bp deposit rate cut, tiering, QE of 30 billion euros per month for 9-12 month

BNP Paribas 10 bp deposit rate cut, rate tiering, strengthening forward guidance, relaxing TLTRO condition, QE of 50 billion euros per month

Deutsche Bank 10 bp deposit rate cut, forward guidance change, QE of 30 billion euros per month for 12 months, removing 10bp margin from TLTRO3 borrowing costs, reserve tiering

Goldman Sachs 20 bp deposit rate cut, forward guidance extension, QE of 200-250 billion total

ING 20 bp deposit rate cut, dovish rate guidance, QE of 30 billion euros per month for 9-12 months

TD Bank 20 bp deposit rate cut, QE of 40 billion euros per month, forward guidance to either capping rates through middle of 2021 or link hikes to inflation outcome

Nomura 10 bp deposit rate cut, QE of 30 billion euros per month until end of 2020, forward guidance change, rate tiering

SocGen 20 bp deposit rate cut, QE of 40 billion euros per month, rate tiering

JPMorgan 10 bp rate cut, QE of 30 billion euros per month, extension of forward guidance

-END-

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/BRITAIN/GIBRALTAR

I guess now Britain understands that you can never take the word of Iran. Interestingly enough the British oil tanker captured by Iran is still in captivity.

(zerohedge)

Britain Furious Iran Tanker Broke ‘Promise’ Not To Sell Its Oil To Syria

Britain has slammed Iran for what it says is a breach in assurances regarding the previously detained Grace 1/Adrian Darya 1 tanker. Specifically a condition of the vessel’s release from UK/Gibraltar captivity last month was that it would not offload its 2.1 million barrels of Iranian oil to Syria in violation of EU sanctions.

But the UK can do little beyond merely issuing a formal complaint to the United Nations, which it plans to do next month, according to Reuters. London was also reported to have summoned Iran’s ambassador on Tuesday to condemn the move.

 

Image via EPA-EFE

“Iran has shown complete disregard for its own assurances over Adrian Darya 1,” foreign minister Dominic Raab said in a statement. “This sale of oil to (Syrian President Bashar al-Assad’s) brutal regime is part of a pattern of behavior by the Government of Iran designed to disrupt regional security.”

 

The diplomatic row comes days after over the weekend Iran’s foreign ministry confirmed the tanker had unloaded its valuable cargo, estimated at $130 million in crude, “on the Mediterranean coast,” according to state media. Just prior the Iranian tanker was observed within a few nautical miles of Syria’s coast via satellite images.

“Iran’s actions represent an unacceptable violation of international norms,” the UK statement said.

However, we should point out it’s also not within “international norms” – indeed it’s unprecedented – for Royal Marines to raid a foreign vessel in international waters at the bidding of Washington, which is precisely what happen when the tanker was detained in the first place.

Currently, Tehran is rumored to be preparing the release the British-flagged Stena Impero, captured in the Strait of Hormuz on July 19 in retaliation for Britain’s prior capture of the Grace 1 off Gibraltar on July 4.

 

British-flagged Stena Impero, via Mizan News Agency/ Reuters

Iranian officials were quoted early this week on state TV as saying the British vessel is “undergoing the last legal procedures” and will hopefully be released “in the near future.”

It remains that though the UK will make its fury known through diplomatic channels, it doesn’t have any chips to play, and the reality is its initial military seizure of the Grace 1 has clearly backfired.

end

Iran/Australia

Three Australians are detained in Iran on ‘SPYING RELATED CHARGES”.   That ups the ante

(zerohedge)

Three Australians Detained In Iran, Likely On Spying-Related Charges

The Australian and Iranian governments are in intense negotiations for the release of three detained Australian citizens, some of whom have been in Iranian detention for months, The Guardian reported Wednesday.

The UK Foreign Office is also believed involved in pursuing their release, given two of the detained also hold British passports. They include a female British-Australian professor who was arrested months ago and given a steep 10 year prison sentence, and reportedly now being held in solitary confinement. Ten-year terms are common in Iran in spying-related cases, though the specific charges are as yet unconfirmed.

The other two, arrested weeks ago, are identified as a female blogger and her male traveling companion who had reportedly camped out in a military area around Jajrood in Tehran province, according to reports.

 

Tehran’s Evin Prison. Getty Image

It’s presumed that the three foreign nationals were all detained under suspicion for spying; however, the blogger was told by authorities that “she was being held in order to facilitate a prisoner swap with Australia,” reported The Guardian. The two women are currently at Evin prison in Tehran while the third Australian’s location is unknown.

As a result of the detentions Australia updated its travel warnings for Iran, saying, “There is a risk that foreigners, including Australians, could be arbitrarily detained or arrested in Iran. We can’t guarantee consular access if you are detained or arrested. We also can’t guarantee access to legal representation.”

Most notable is that the new official warnings advise travelers to avoid any military or nuclear development sites, which it adds “are not always clearly marked”.

It’s believed the pair of backpackers came under suspicion for unknowingly camping near a military base outside of Tehran.

 

The massive outer walls of the high security Evin Prison in Iran, via Deutsche Welle/DPA

The now public standoff over their confinement comes on the heels Australia announcing it would join a US-led maritime coalition in the gulf to monitor the Iranian military’s “destabilizing behavior”.

Iran is still in possession of the British-flagged Stena Impero as well, even after the Adrian Darya was released from UK/Gibraltar captivity last month and is now believed to have successfully offloaded its oil to Syria.

end

ISRAEL

Now this is ambitious: Netanyahu vows if elected he will annex parts of the West Bank. He claims that the USA is on side with this. His intention is to annex parts of the West Bank including the Jordan Valley. The Palestinians are not happy with this

(zerohedge)

Netanyahu Vows To Annex Parts Of West Bank If Re-Elected; Claims “Coordination” With US

Prime Minister Benjamin Netanyahu continues his long track record of attempting to out-hawk all political opponents, announcing on Tuesday his intention of annexing parts of the West Bank, including the Jordan Valley, if re-elected.

“I will not do anything without getting a clear mandate from the public, and so the citizens of Israel, I ask you for a clear mandate to do this,” Netanyahu said while campaigning ahead of the September 17 election. “This is a historic opportunity to apply sovereignty to communities in Judea and Samaria.”

During the unveiling of his provocative plan, which he said would be accomplished in coordination with the US, he pointed to a map of the Jordan Valley, claiming also Israel could bring its sovereignty over the land but without annexing “a single Palestinian”.

 

PM Netanyahu promised Tuesday to make the Jordan Valley a sovereign part of Israel if he’s re-elected. Image via JTA.org 

“There is a unique and once-in-a-lifetime opportunity to do something with broad consensus and bring safe permanent borders to the State of Israel. This will ensure that Judea and Samaria do not become Gaza, and that Kfar Saba, Netanya and Tel Aviv will not become like communities along the border of Gaza,” he said.

Annexing the Jordan Valley is reportedly consistent with the Trump administration’s grand plan for Mideast peace. “There is no change in the United States policy at this time,” the White House said in a statement. “We will release our vision for peace after the Israeli election and work to determine the best path forward to bring long-sought security, opportunity and stability to the region.”

However, it’s likely that the result of such a plan as Israeli annexation of West Bank settlements would end in anything but “peace” and “stability”.

Netanyahu in his speech noted that he would wait to initiate such an ambitious plan until after Trump’s “Deal of the Century” is revealed. But the Israeli prime minister – who is seeking election to a record fifth term this month – spoke as if the White House was on board with his vision.

“I request a mandate to apply Jewish sovereignty to all communities, and I intend to do so in coordination with the United States,” he said.

Meanwhile, The Jerusalem Post quoted a Palestinian official who said any Israeli attempt at realizing Netanyahu’s plan would without question be a “declaration of war”.

end

Turkey/USA/Syria

Erdogan breaks his silence as he is angry at the uSA supplying aid to the PKK in the north. Turkey considers them terrorists which they are not. Erdogan is angry for the non support as Turkey is housing 4 million migrants and this is a powder keg

(zerohedge)

Erdogan Breaks Silence: Says The US Sent 30,000 Truckloads Of Weapons To Syria

Turkish President Tayyip Erdogan has called out the US for delivering more than 30,000 weapon-laden trucks to Syria to support the PKK-linked People’s Protection Units (YPG) terrorist group, reported Press Tv.

ANADOLU AGENCY (ENG)

@anadoluagency

Turkey not to remain silent to over 30,000 weapon-laden trucks sent by US to N.Syria as Turkey only country in region to fight, says Erdogan

Speaking at the Justice and Development Party’s meeting in Eskişehir, a city in northwestern Turkey, Erdogan said he wouldn’t sit back in the shadows anymore about a superhighway of weapons supplied by the US, amounting to more than 30,000 truckloads of weapons, equipment, and ammunition to northern Syria to support YPG terrorists.

 

Erdogan further criticized the Trump administration for its “lack of commitment” to construct a safe zone in Syria along the Turkish border. He added that he would “sort out” the issue with President Trump at a meeting later this month.

“We must resolve this … There are differences between what is said and what has been done,” Erdogan said.

Washington and Ankara have been at odds with one another of who should control northeast Syria, where YPG terrorist and other Kurdish militias have had the luxury of receiving American weapons.

Ankara has viewed the YPG as an extension of its own Kurdish militancy, insisting the US needs to cut ties with the terrorist organization.

Erdogan also criticized the European Union for the lack of support regarding the millions of Syrian refugees.

He said Ankara has already spent $40 billion hosting four million Syrian refugees, adding that a new project could be announced momentarily to resettle one million refugees in northern Syria.

“Our goal is to settle at least one million Syrian brothers and sisters in our country in this safe zone,” said Erdogan. “If needed, with support from our friends, we can build new cities there and make it habitable for our Syrian siblings.”

The European Union has given Turkey $7 billion since 2015 to restrict the flow of migrants. But with Turkey granting millions of refugees asylum status, the migrant problem is worsening through 2019.

“If there is no safe zone we can’t overcome this,” Erdogan said.

Syrians have already begun traveling to Europe again. Turkish and international refugee officials warned about new waves of migrants headed towards the continent. Over 500 refugees landed by vessel in the Greek island of Lesbos earlier this month.

Erdogan also touched on falling interest rates and said they would also lead to lower inflation rates.

“Inflation is falling, so are interests and they will fall even further. The capital market board will convene on Thursday, and I believe interests will fall afterward,” Erdogan said.

Erdogan has just given the world a dose of reality of where some of the weapons used by terrorists in Syria are coming from.

end

6.Global Issues

Canada

Trudeau calls for an election to be held Oct 21

(zerohedge)

Canada’s Trudeau Expected To Kick Off Federal Election Campaign Wednesday

Now that the controversy over Prime Minister Justin Trudeau’s attempt to interfere in an investigation of a Quebec-based engineer firm has finally died down, the PM is expected to kick off federal elections on Wednesday, the Globe and Mail reports, citing sources from within Trudeau’s Liberal Party.

Trudeau will visit Governor-General Julie Payette at Ottawa’s Rideau Hall on Wednesday morning to ask that she dissolve Parliament and launch the official campaign season. Per Canada’s fixed-date election law, federal elections will be held on Oct. 21.

According to the CBC, Trudeau will visit the governor general at 10 am ET.

Trudeau and his rivals have rallies planned for Wednesday to mark the kick-off of campaign season. Trudeau is expected to hold a rally shortly after the campaign launch. Afterwards, Trudeau will board the Liberal Party’s plane to start campaigning around the country.

 

Conservative leader Andrew Scheer will hold a “rally-style” event in Trois-Rivieres, Quebec on Wednesday morning shortly after Parliament is dissolved. Then he will make his way to the Ontario riding of Vaghan-Woodbridge.

Canada’s New Democratic Party soft-launched its campaign on Sunday with a rally in Toronto. NDP leader Jagmeet Singh will travel to London, Ontario on Wednesday before spending the week criss-crossing Greater Toronto and Southwestern Ontario in his new campaign bus.

Green Party leader Elizabeth May will launch her campaign in British Columbia, her home province (both Green MPs represent districts on Vancouver Island).

Scheer and Singh will be fighting their first campaigns as party leaders.

Trudeau is launching campaign season one day before the first debate in Toronto, where every party leader will participate except for Trudeau, who is still uneasy about the scandal that nearly toppled his administration earlier this year.

The Liberals, who control the government, have 177 MPs in the 338-seat Canadian House of Commons. Conservatives have 95 MPs, while the NDP has 39 MPs. Meanwhile, there are 10 Bloc Québécois MPs, 2 Green MPs, and 1 People’s Party of Canada MP, one Co-operative Commonwealth Federation MP, 8 independents and 5 vacant seats.

Trudeau’s Liberals will be seeking a second four-year mandate. During the campaign, they’re expected to tout the party’s accomplishments on reducing child poverty and creating jobs, while hoping to sidestep criticism over the SNC-Lavalin ethics scandal.

The most recent CBC poll shows Liberals and Conservatives neck-and-neck at 34% each

end

7. OIL ISSUES

OIl prices plunge after we learn that Trump  want to ease sanctions so as to get a face to face meeting with Rouhani.

Bolton was totally against easing sanctions.

(zerohedge)

Oil Prices Plunge After Trump-Iran Sanctions Headlines

WTI crude was sliding after mixed inventory data, but accelerated the losses, breaking below yesterday’s lows, after headlines suggesting Bolton was fired after disagreeing with Trump’s desire to ease Iran sanctions to get a meeting with Rouhani.

The reaction in crude (more supply) was instant…

As Bloomberg reports, President Trump discussed easing sanctions on Iran to help secure a meeting with Iranian President Hassan Rouhani later this month, prompting then-National Security Advisor John Bolton to argue forcefully against such a step, according to three people familiar with the matter.

After an Oval Office meeting on Monday when the idea came up, Treasury Secretary Steven Mnuchin voiced his support for the move as a way to restart negotiations with Iran, some of the people said.

“Bolton made sure to block any and all avenues for diplomacy w/ Iran, including a plan being brokered by Macron,” Suzanne DiMaggio, a senior fellow at the Carnegie Endowment for International Peace, said on Twitter.

“The French are offering Trump a facing-saving way out of a mess of his creation. He should grab it.”

And we know how it ended, later that day, Trump decided to oust Bolton, whose departure was announced Tuesday.

Charles Kupchan, a senior fellow at the Council on Foreign Relations, said that at the very least, Bolton’s exit reduces the chances of a military escalation.

“It’s too hard to say if a meeting will happen given the question of whether it’s politically palatable for both leaders,” said Kupchan.

“But the likelihood of a meeting has gone up because one of its main detractors is now out of a job.”

Of course, easing any sanctions without major concessions from Iran would undercut the pressure campaign that not only Bolton, but also Secretary of State Michael Pompeo and Trump have said is the only effective way to make Iran change its behavior.

Asked on Tuesday if he could foresee a meeting between Trump and Rouhani during the UN meeting, Pompeo responded: “Sure,” adding, “The president’s made very clear, he is prepared to meet with no preconditions.”

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1004 DOWN .0046 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 107.68 UP 0.091 (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 1.2344   DOWN   0.0013  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3144 DOWN .0002 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 46 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1004 Last night Shanghai COMPOSITE CLOSED DOWN 12.39 POINTS OR 0.41% 

 

//Hang Sang CLOSED UP 475.38 POINTS OR 1.78%

/AUSTRALIA CLOSED UP 0,36%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 475.38 POINTS OR 1.78%

 

 

/SHANGHAI CLOSED DOWN 12.39 POINTS OR 0.41%

 

Australia BOURSE CLOSED UP. 36% 

 

 

Nikkei (Japan) CLOSED UP 205.66  POINTS OR 0.96%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1492.30

silver:$18.10-

Early WEDNESDAY morning USA 10 year bond yield: 1.71% !!! DOWN 2 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.19 DOWN 3  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 98.59 UP 27 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.26% DOWN 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.22%  UP 3   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.25%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0,97 DOWN 6 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 72 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.57% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.54% 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 WEDNESDAY

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

Euro/USA 1.0996  DOWN     .0054 or 54 basis points

USA/Japan: 107.73 UP .129 OR YEN DOWN 13  basis points/

Great Britain/USA 1.2332 DOWN .0025 POUND DOWN 25  BASIS POINTS)

Canadian dollar DOWN 33 basis points to 1.3179

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.1158    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1197  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.7483 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.22%

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from TUESDAY at 1.72 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.20 DOWN 2 in basis points on the day

Your closing USA dollar index, 98.69 UP 37  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 68.64  0.94%

German Dax :  CLOSED UP 84.01 POINTS OR .68%

 

Paris Cac CLOSED UP 20.92 POINTS 0.37%

Spain IBEX CLOSED DOWN 26.50 POINTS or 0.79%

Italian MIB: CLOSED DOWN 13.34 POINTS OR 0.06%

 

 

 

 

 

WTI Oil price; 56.99 12:00  PM  EST

Brent Oil: 62.16 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    65.42  THE CROSS HIGHER BY 0.04 RUBLES/DOLLAR (RUBLE LOWER BY 04 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.57 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 :  56.01//

 

 

BRENT :  60.99

USA 10 YR BOND YIELD: … 1.74  up one basis pt…

 

 

 

USA 30 YR BOND YIELD: 2.22  up 1 basis pt..

 

 

 

 

 

EURO/USA 1.1009 ( down 41   BASIS POINTS)

USA/JAPANESE YEN:107.82 UP 219 (YEN DOWN 21 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 98.63 UP 30 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2331 DOWN 24  POINTS

 

the Turkish lira close: 5.7490

 

 

the Russian rouble 65.48   DOWN 0.10 Roubles against the uSA dollar.( DOWN 10 BASIS POINTS)

Canadian dollar:  1.3199 DOWN 52 BASIS pts

USA/CHINESE YUAN (CNY) :  7.1158  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 7.1083 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.57%

 

The Dow closed UP 227.61 POINTS OR 0.85%

 

NASDAQ closed UP 285.53 POINTS OR 01.06%

 


VOLATILITY INDEX:  14.64 CLOSED DOWN .56

LIBOR 3 MONTH DURATION: 2.132%//libor dropping like a stone

 

USA trading today in Graph Form

Stocks Surge On Biggest Short-Squeeze In 8 Years Despite Momo Meltdown

See… stocks are up, everything’s fine!!

See… stocks are up, everything’s fine!!

 

 

After two days of utter carnage in the quant community, things slowed a little today – but note that the unwind continues…

 

Source: Bloomberg

Pressure remained on Asia quants…

h/t @MichaelBKrause

And continued once again in the US session…

 

Source: Bloomberg

Of most note is the biblical reversal this week – “the last shall be first, and the first last: for many be called, but few chosen.” In other words – the bounce in stocks this week is a bid for the YTD worst-performers and the weakest names this week are sold from the best-performing names YTD…

h/t @MichaelBKrause

“Most Shorted” Stocks continue to squeeze higher – up a stunning 12.75% in the last 6 days, the biggest squeeze since August 2011.

Source: Bloomberg

The Short-squeeze lifted Small Caps to major outperformance today…

 

And Small Caps and Trannies lead the week with the rest all scrambling into the green for the week today…

 

S&P topped 3,000…

 

Momo has now fallen for 9 of the last 10 days

 

Source: Bloomberg

VIX fell back to a 14 handle…

 

Bank stocks relative to the market stalled today at key resistance level…

Source: Bloomberg

The gap between the yield on a Moody’s Investors Service index of Baa-rated corporate debt and the dividend yield on the S&P 500 Index narrowed to less than two percentage points last month for the first time since the 1960s and has stayed below the threshold this month, according to data compiled by Bloomberg and figures cited in a report by Keith Parker, a strategist at UBS.

Source: Bloomberg

 

Treasury yields ended the day practically unchanged (NOTE – a record calendar in the last few days has been largely responsible for this carnage as rate-locks are set)…

Source: Bloomberg

The 30Y Yield ended unchanged and traded in a very narrow range…

Source: Bloomberg

Ahead of tomorrow’s ECB meeting, the market is pricing in a 63% chance of a 10bps cut to -50bps and a 37% chance of 20bps cut to -60bps!

 

Source: Bloomberg

The dollar surged today, but only back to the top of its recent narrow range…

Source: Bloomberg

The Argentine Peso plummeted to a new record low (if you follow the real ‘blue-chip’ rate and not the ‘managed’ official rate)…

Source: Bloomberg

 

Altcoins leaked lower but Bitcoin went sideways on the day…

Source: Bloomberg

Bitcoin tested and bounced $10,000 a number of times today…

Source: Bloomberg

Mixed picture in commodity-land with oil worst on the day and PMs making modest gains…

Source: Bloomberg

WTI was clubbed like a baby seal despite big inventory draws as headlines suggested Trump was looking to cutback on Iran sanctions…

Gold futures scrambled back above $1500…

Silver futs also bounced off key support at $18…

 

Finally, some fun-durr-mentals. As Gluskin Sheff’s David Rosenberg tweeted today, ” To little fanfare, the OECD leading indicator fell for the 19th straight month in July, hitting its lowest level since September 2009. Recession pressures continue to build. “

Probably nothing!!

END

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

The Fed is not going to like this especially when they will cut interest rates next week
(zerohedge)

Producer Prices Rise More Than Expected In August As Luxury Hotel Costs Soar

Both headline and core producer pricesrose more than expectedin August.

  • PPI +1.8% YoY (+1.7% exp)
  • PPI Core +2.3% (+2.2% exp)

Source: Bloomberg

With a major divergence continuing between goods and services pricing…

Source: Bloomberg

Under the hood shows a mixed message:

A major factor in the increase in prices for final demand services was the index for guestroom rental, which moved up 6.4 percent.

Source: Bloomberg

The indexes for fuels and lubricants retailing; apparel, footwear, and accessories retailing; chemicals and allied products wholesaling; gaming receipts (partial); and insurance also advanced. Conversely, margins for machinery and vehicle wholesaling declined 4.2 percent. The indexes for health, beauty, and optical goods retailing and for support activities for oil and gas operations also decreased.

Almost two-thirds of the August decline in the index for final demand goods can be traced to prices for gasoline, which dropped 6.6 percent. The indexes for fresh and dry vegetables, diesel fuel, corn, home heating oil, and ethanol also moved lower. In contrast, prices for meats advanced 3.0 percent.

Time for some more rate-cuts?

iii) Important USA Economic Stories

TRUMP is at it again:  he is telling the Fed that they should cut rates to zero or less so that the uSA can refinance its debt and lengthen maturities. The fun begins tomorrow when the ECB lowers rates. Trump will pound the table why not the USA?  He is providing an impetus for gold rising

(zerohedge)

Trump Says Fed Should Cut Rates “To ZERO Or Less”, So US Can Refinance Debt And Lengthen Maturities

Volfefe begins early today.

One day before the ECB is expected to cut rates further into negative territory and restart sovereign debt QE, moments ago president Trump resumed his feud with the Fed piling more pressure on Powell to cut rates “to ZERO or less” because the US apparently has “no inflation”, while also crashing the conversation over whether the US should issue ultra-long maturity debt (50, 100 years), saying the US “should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term.” 

At least we now know who is urging Mnuchin to launch 50 and 100 year Treasuries. What we don’t know is just what school of monetary thought Trump belongs to – aside from Erdoganism of course – because while on one hand Trump claims that “we have the great currency, power, and balance sheet” on the other the US president also claims that “the USA should always be paying the lowest rate.” In a normal world, the strongest economy tends to pay the highest interest rate, but in this upside down world, who knows anymore, so maybe the Fed has just itself to blame.

Trump’s conclusion: “It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of “Boneheads.”

 

Donald J. Trump

@realDonaldTrump

The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet…..

Donald J. Trump

@realDonaldTrump

….The USA should always be paying the the lowest rate. No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of “Boneheads.”

Expect even more badgering of the Fed once the ECB cuts rates tomorrow.

One parting thought: if Bolton was fired for disagreeing with Trump over the Taliban, we wonder just how stable Powell’s job will be once the market actually does drop.

iv) Swamp commentaries)

My goodness.  The dept of Justice had a memo that exonerated Michael Flynn and they decided to hide it from him.  Not only that but the memo was dated Jan 30 2017 and had the full knowledge of Comey. Thus Comey lied to the President stating that there is an ongoing investigation on Flynn even though he knew Flynn had nothing to do with the Russians

(Sara Carter)

Michael Flynn Exonerated By Bombshell DoJ Memo Exposed During Hearing

Authored by Sara Carter via SaraACarter.com,

A bombshell revelation was barely noticed at National Security Advisor Michael Flynn’s hearing Tuesday, when his counsel revealed in court the existence of a Justice Department memo from Jan. 30, 2017 exonerating Flynn of any collusion with Russia.

The memo, which has still not been made available to Flynn’s attorney Sidney Powell, is part of a litany of Brady material she is demanding from prosecutors. The memo is currently under protective order and Powell is working with prosecutors to get it disclosed, SaraACarter.com has learned.

 

U.S. District Court Judge Emmet G. Sullivan presided over the hearing Tuesday  and set a tentative Dec. 18 sentencing date. He told the prosecution and defense that the sentencing date could be moved depending on the outcome of requests for Brady material requested by Powell and how the case will unfold in the upcoming months. Sullivan also noted during the hearing that the Brady order takes precedence over the plea agreement.

Powell will likely seek to have case dismissed for ‘egregious’ prosecutorial misconduct and withholding of exculpatory material.

“Judge Sullivan is obviously taking the Brady issues very seriously and clearly told the prosecutors that his Brady order stands regardless of the plea agreement or the plea,” Powell told SaraACarter.com.

“If the prosecutors here were seeking justice instead of a conviction, General Flynn would not have been prosecuted. They have been hiding evidence that he was exonerated in early 2017.”

Government Misconduct

Powell noted the extraordinary misconduct of the government during the hearing. She also said that Flynn would have never pleaded guilty if the government had disclosed the Brady materials before the original trial that she is now demanding. There would not have been a plea if the prosecutors had met their Brady obligations, Powell argued before the court.

Powell’s discovery of the memo shatters not only the narrative that was pushed by former Obama Administration officials regarding Flynn but also the ongoing narrative that President Donald Trump’s concern over Flynn’s prosecution amounted to alleged obstruction.

The January, 2017 timeline of the DOJ memo is extremely significant. Former FBI Director James Comey said in previous interviews that he leaked his memos through a friend to be published in the New York Times with the hope of getting a special counsel appointed to investigate Trump for obstruction. In late August, Inspector General Michael Horowitz released his much anticipated report on Comey. It was scathing and revealed that he violated FBI policy when he leaked his memos that described his private conversations with  Trump. However, the DOJ declined to prosecute Comey on Horowitz’s referral.

But the existence of such a memo calls into question Comey’s actions both when he met with Trump privately and when he wrote his personal memos recanting the meetings. If the Jan. 30, 2017 DOJ Flynn memo does exonerate Flynn, then it will call into question Comey’s actions when he had the private meetings with Trump. Why didn’t Comey reveal to Trump that DOJ found no evidence that Flynn was an ‘agent of Russia’ when he met Trump at the White House on Feb. 14 meeting?  Why were the stories about Flynn, along with classified information regarding his phone conversations with the former Russian Ambassador Sergey Kislyak, leaked to the Washington Post in January, with a followup in  early FebruaryRemember, the information was leaked by senior government officials, according to the author and columnist David Ignatius. Ignatius said that senior officials accused Flynn of violating the Logan Act, even worse conspiring with Russia.

Further, new information that former FBI Deputy Director Andrew McCabe advised that there was no Logan Act violation, along with the DOJ internal memo of Jan. 30 that Flynn ‘was not an agent of Russia,’ was enough information for Comey to advise the President that Flynn had been cleared of any wrongdoing.

Instead, Comey claimed obstruction of justice by the President.

Comey’s Memos Vs DOJ Jan. 2017 Flynn Memo 

Comey said in one of his most significant memos chronicling his Feb. 14, 2017 meeting at the Oval Office with Trump, which was the day after Trump had fired Flynn, that Trump asked everyone but Comey to leave the room, and told him he wanted to “talk about Mike Flynn.” Flynn was fired at the time over controversy that arose from a classified information leaked to the Washington Post regarding his conversations by phone in December, 2016 with former Russian Ambassador Sergey Kislyak. The story stated that Flynn had discussed the sanctions with Kislyak. However, Comey later admitted that the FBI agents he sent to interview Flynn didn’t believe he was lying about his conversation with the former ambassador.

According to Comey’s memo Trump said:

 “I hope you can see your way clear to letting this go, to letting Flynn go. He is a good guy. I hope you can let this go.”

Comey suggested that Trump’s request was inappropriate, accusing him of obstructing justice by asking him to drop Flynn’s case. He used this as a pretense to leak his memos and put the nation through more than two years of Robert Mueller’s Special Counsel, which in the end found no evidence of a conspiracy with Russia. As for obstruction, Attorney General William Barr and then Deputy Attorney General Rod Rosenstein concluded that there was no obstruction based on the evidence gathered by Mueller’s team.

However, if Comey would have advised Trump of the Jan. 30 memo it would have cleared up any unfounded lies that Flynn had in any way colluded or conspired with Russia.

If and when this memo is made public, the ongoing narrative continuing to be pushed by those former Obama officials, as well as, House Intelligence Committee Chairman Adam Schiff who continues to push for hearings on obstruction will be squashed.

It looks like Comey, who would have been fully aware of this memo, has a lot of explaining to do.

 

end
Jim Jordan:  The Inspector General is expected to conclude the FISA Warrants  (all4 of them) were illegally obtained
(zerohedge)

DOJ Inspector General Expected To Conclude Carter Page FISA Warrants Illegally Obtained: Jim Jordan

Justice Department Inspector General Michael Horowitz will likely find that all four Foreign Intelligence Surveillance Act (FISA) warrants against 2016 Trump campaign aide Carter Page were obtained illegally, according to Rep. Jim Jordan (R-OH),  top Republican on the House Oversight and Reform Committee.

I think he will,” said Jordan during an discussion with Fox News‘s Sean Hannity and Gregg Jarrett Monday night.

In April, Attorney General William Barr assembled a team of DOJ investigators to review controversial counterintelligence decisions made by DOJ and FBI officials made during the 2016 US election.

 

I am reviewing the conduct of the investigation and trying to get my arms around all the aspects of the counterintelligence investigation that was conducted during the summer of 2016,” said Barr.

“That’s great news he’s looking into how this whole thing started back in 2016,” said Rep. Jordan at the time. “That’s something that has been really important to us. It’s what we’ve been calling for.

The investigation into alleged FISA abuse against the Trump campaign by DOJ and FBI officials has reportedly been completed. After a declassification period, the report could be released sometime in September. The contents of the report have not been confirmed.

Attorney General William Barr, who is overseeing U.S. Attorney John Durham’s investigation into the origins of the Russia investigation, said he is working closely with Horowitz, and they will take up any criminal referrals Horowitz might make.

Former U.S. Attorney Joe diGenova said he has heard the initial FISA warrant against Page and the three renewals at three-month intervals were illegally obtained. He told the Washington Examiner‘s Examining Politics podcast late last month that he got his insider information because the report is “being circulated inside and outside of the department for comment by interested parties.” –Washington Examiner

Jordan also noted that he wants Horowitz to testify about his reports on former FBI Director James Comey, and asked “When is somebody going to jail for wrongdoing that took place in the Trump-Russia investigation or even the Clinton investigation?”

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

 

 

 

The King Report September 11, 2019 Issue 6089                                                                                Independent View of the News

Tuesday’s report was briefer than usual because there was a lack of impact news; equity market action was excruciatingly redundant and we were on the road.

Wednesday’s ESU and US equity action was once again excruciatingly redundant.

Traders bought ESUs on Monday night, the usual night time buying in the thin market to juice ESUs.  The ESU high for the session occurred at 20:20 ET (2984.25) on Monday night.  ESUS sold off during the Nikkei’s 2nd Session.  After an early decline in Europe, stocks and ESUs rallied until ESU barely turned positive at 7:04 ET.  After a morning decline in the USA that ended at the European close, ESUs and stocks had a robust Noon Balloon.

A sharp afternoon decline appeared.  However, the usual late ESU manipulation saved the session.  There is no question that manipulation appeared during the final 35 minutes of trading.  ESUs jumped 14 handles on no impact news to end the day and push the S&P 500 Index up 0.96 points for the session.

The DJIA posted a 73.93 points gain while the DJTA jumped 161.56 points or 1.54%.

The US 30-year bond tumbled 1.5 points for the session due to an ugly Treasury auction of $38B of 3-year notes.  Another factor in bonds’ weakness is the massive issuance of corporate debt that has occurred over the past few weeks.  Bloomberg reports that $125B of IG debt is expected to be issued this month.

There might have been liquidation of defensive asset allocation due to bond weakness.  Also, 1) the market expects that the ECB will grant bulls’ request for QE and deeper NIRP; and 2) with Germany indicating that it will bust its budget, European sovereigns might be preparing to unleash fiscal stimuli.  Ergo, bonds could be in for some tough sledding for a spell.

Just before the afternoon arrived, Apple announced an iPhone price cut at the company’s special event and a streaming service to compete with Netflix.

Apple lowers price for next iPhone and pushes into streaming services to compete with Netflix

Apple dropped the price on its main new phone, the iPhone 11, to $699 from the $1,000 mark… with its new Apple TV+ streaming service for $4.99 a month…

https://www.washingtonpost.com/technology/2019/09/10/apple-event-new-iphone/?noredirect=on&wpisrc=al_news__alert-economy–alert-national&wpmk=1

Netflix and Disney declined sharply on the Apple streaming service news.

For Boris Johnson, another Bad Day and another Big Defeat in Parliament

British lawmakers, capping what may be one of the most abysmal starts any British leader has ever endured, on Monday rejected Prime Minister Boris Johnson’s bid to hold a new national election…

https://www.nytimes.com/2019/09/09/world/europe/brexit-johnson-parliament.html

Google Hit with Sweeping Demand from States over Ad Business

  • Investigative demand seeks details on ad tech, acquisitions
  • Document shows heart of Google business model targeted

State attorneys general investigating Google are ordering it to turn over a wide range of information about its advertising business, according to an investigative demand that takes direct aim at the biggest source of the company’s revenue…

https://www.bloomberg.com/news/articles/2019-09-10/google-hit-with-sweeping-demand-from-states-over-its-ad-business

@realDonaldTrump: I informed John Bolton last night that his services are no longer needed at the White House. I disagreed strongly with many of his suggestions, as did others in the Administration, and therefore I asked John for his resignation, which was given to me this morning. I thank John very much for his service. I will be naming a new National Security Advisor next week.

Flynn Hearing Reveals Existence of Bombshell DOJ Memo Exonerating Michael Flynn

The existence of such a memo calls into question Comey’s actions both when he met with Trump privately and when he wrote his personal memos recanting the meetings. If the Jan. 30, 2017 DOJ Flynn memo does exonerate Flynn, then it will call into question Comey’s actions when he had the private meetings with Trump. Why didn’t Comey reveal to Trump that DOJ found no evidence that Flynn was an ‘agent of Russia’ when he met Trump at the White House on Feb. 14 meeting?  Why were the stories about Flynn, along with classified information regarding his phone conversations with the former Russian Ambassador Sergey Kislyak, leaked to the Washington Post in early February?…

    Further, new information that former FBI Deputy Director Andrew McCabe advised that there was no Logan Act violation, along with the DOJ internal memo of Jan. 30 that Flynn ‘was not an agent of Russia,’ was enough information for Comey to advise the President that Flynn had been cleared of any wrongdoing. Instead, Comey claimed obstruction of justice by the President…

     If and when this memo is made public, the ongoing narrative continuing to be pushed by those former Obama officials, as well as, House Intelligence Committee Chairman Adam Schiff who continues to push for hearings on obstruction will be squashed.  It looks like Comey, who would have been fully aware of this memo, has a lot of explaining to do.

https://saraacarter.com/flynn-hearing-reveals-existence-of-bombshell-doj-memo-exonerating-michael-flynn/

Former FBI analyst admits snooping on anti-Mueller conspiracy theorist

Mark Tolson, 60, pleaded guilty in federal court in Alexandria, Va., to one misdemeanor count ofaccessing without authorization the email account of lobbyist Jack Burkman…

    Tolson learned in October that Burkman, who gained prominence for conspiracy theories about the death of Democratic National Committee staffer Seth Rich, was planning a news conference claiming that special counsel Robert S. Mueller III committed sexual assault…

https://www.washingtonpost.com/local/public-safety/former-fbi-analyst-admits-snooping-on-anti-mueller-conspiracy-theorist/2019/09/10/014d2d46-d3e3-11e9-9610-fb56c5522e1c_story.html?noredirect=on

For the first time ever, most new working-age hires in U.S. are people of color, Post analysis shows

https://www.washingtonpost.com/business/economy/for-the-first-time-ever-most-new-working-age-hires-in-the-us-are-people-of-color/2019/09/09/8edc48a2-bd10-11e9-b873-63ace636af08_story.html

Trump pushing for crackdown on homeless camps in California, with aides discussing moving residents to government-backed facilities

https://www.washingtonpost.com/business/2019/09/10/trump-pushing-major-crackdown-homeless-camps-california-with-aides-discussing-moving-residents-government-backed-facilities/

Have a reflective and respectful 9/11.

end

Let us close with this terrific interview of John Williams( my favourite economist) by Greg Hunter

a must must view

(Greg Hunter/John Williams)

Fed Still Working Against President Trump – John Williams

By Greg Hunter On September 11, 2019

Economist John Williams says the Fed is still not in President Trump’s corner when it comes to the economy. Williams contends, “The Fed was working against him (President Trump) on the economy, and they still are. Their primary concern is the banking system, and that certainly has to be supported, but when you have a weak economy, and this was fueled by the tightening of the Fed, I don’t think Trump is going to get blamed for that. It’s going to go against the Fed, and I don’t think it is going to hurt him that much in the upcoming election.

Williams says the real numbers say the economy is getting worse and not better. Williams thinks “The Fed is going to feel pressure to cut interest rates .5%” and not .25% that Fed Head Jay Powell has been indicating. Williams also thinks the Fed is going to feel pressure to start a “new round of QE.” Why? Williams says, “First of all, the economy is that weak. I am seeing it in the numbers, and I am sure they (Fed) are too. . . . The headline numbers that you hear are bloated, and they know it. . . . Construction spending is a lot weaker than reported. . . . So, we know the GDP is overstated. . . . They just reduced payroll employment . . . They overestimated payroll growth by 501,000. This eliminates 20% of the employment growth you have seen in the last year. . . . This also will be reflected in the GDP, and it will continue to get weaker. The Fed should be recognizing they have some bad numbers here. I think you are going to see retail sales numbers weaken. They will be out later this week, and also industrial manufacturing numbers will be weaker. They will be out next week. This is all before the FOMC (Federal Open Market Committee) meeting. The economy is weak enough that they’ve got to do something that will stimulate the economy by cutting more than a quarter point. There is a fair shot they go a half point (cut) and if not, they will be easing again soon. As things turn more negative, they are going to have to turn back to quantitative easing (money printing).”

Contrary to mainstream media propaganda, the tanking economy is clearly the Fed’s fault. Williams points out, “When the Fed started tightening quarter after quarter, which started in 2017, and at that point, the interest rate was 1.5% for targeted Fed Funds. When we finished 2018 in December, they were up to 2.5%. The underlying interest rate there had been doubled in a year. That’s not gradual and non-disruptive to the economy. It’s very rapid and turned out to be very disruptive. . . . When they (Fed) said they were going to raise rates another couple of times in 2019, which is when the market crashed, that was around Christmas time, and then all of a sudden, they start backing off.”

In closing, Williams says, “The Fed is not just working against the President. It is working against the interests of the American people. What the Fed was doing was in the best interest of the banking system, and the banks own the Federal Reserve. There’s a conflict of interest right there. . . . . I think you are going to see that the downturn here is pretty bad. It’s not just a little softening in the economy.”

Join Greg Hunter as he goes One-on-On with economist John Williams, the founder of ShadowStats.com.

-END-

Well that is all for today

will see you Thursday night.

 

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