OCT 23/THE BIG NEWS OF THE DAY: SOVEREIGN GERMANY BUYS 2.8 TONNES OF GOLD//TURKEY PURCHASES 31.1 TONNES//GOLD UP $8.40 TO $1493.00//SILVER UP 9 CENTS TO $17.57//QUEUE JUMPING AGAIN AT THE GOLD AND SILVER COMEX//WE NOW HAVE 37.6 TONNES OF GOLD STANDING AT THE COMEX//WE WORK IS NOW RUNNING OUT OF CASH: IT HALTS MOVING INTO THE OLD LORD AND TAYLOR BUILDING IN NEW YORK/BOEING DETERIORATING RAPIDLY AS REVENUES FALL 20%//LATEST POMO WAS A HUGE 600% OVERSUBSCRIBED//.

GOLD:$1493.00 UP $8.40(COMEX TO COMEX CLOSING

 

 

 

 

 

 

 

 

 

 

 

 

Silver:$17.57 UP 9 CENTS  (COMEX TO COMEX CLOSING)

 

 

Closing access prices:

 

 

 

 

Gold : $1491.90

 

silver:  $17.55

we are now entering options expiry week
comex options on gold/silver expire on:  Monday Oct 28
LBMA options expire on Thursday Oct 31 as does the OTC options.
Gold and silver will be subdued in price for the entire week
silver oi numbers will start to decline as spreaders begin to liquidate their criminal program

 

COMEX DATA

 

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

today RECEIVING 0/8

EXCHANGE: COMEX
CONTRACT: OCTOBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,481.700000000 USD
INTENT DATE: 10/22/2019 DELIVERY DATE: 10/24/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 H GOLDMAN 2
657 C MORGAN STANLEY 5
737 C ADVANTAGE 6
800 C MAREX SPEC 2
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 8 8
MONTH TO DATE: 11,919

__________________________________________________________________

we are coming very close to a commercial failure!!

 

 

NUMBER OF NOTICES FILED TODAY FOR  OCT CONTRACT: 8 NOTICE(S) FOR 6800 OZ (0.0248 tonnes

TOTAL NUMBER OF NOTICES FILED SO FAR:  11,919 NOTICES FOR 1,191,900 OZ  (37.073 TONNES)

 

 

 

SILVER

 

FOR OCT

 

 

40 NOTICE(S) FILED TODAY FOR 200,000  OZ/

 

total number of notices filed so far this month: 1320 for 6,600,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

Bitcoin: OPENING MORNING TRADE :  $ 7988 DOWN 33 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 7480 DOWN 551

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A SMALL SIZED 751 CONTRACTS FROM 213,778 UP TO 214,529 DESPITE THE 9 CENT LOSS IN SILVER PRICING AT THE COMEX.

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

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

FOR SEPT 0,; DEC  991 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  991 CONTRACTS. WITH THE TRANSFER OF 991 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 991 EFP CONTRACTS TRANSLATES INTO 4.955 MILLION OZ  ACCOMPANYING:

1.THE 9 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.075     MILLION OZ INITIALLY STANDING IN OCT

YESTERDAY,WE HAD AN ATTEMPT BY THE BANKERS TO COVER THEIR MASSIVE SHORTFALL AS THEY ORCHESTRATED A RAID AT THE SILVER COMEX ……..  OUR OFFICIAL SECTOR//BANKERS AGAIN USED HUGE COPIOUS NON BACKED PAPER IN THEIR SUCCESSFUL ENDEAVOUR TO WHACK SILVER’S PRICE (9 CENTS LOWER). HOWEVER OUR OFFICIAL SECTOR/BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS AS THE TOTAL GAIN IN OI ON BOTH EXCHANGES TOTALED 1742 CONTRACTS. OR 8.710 MILLION OZ

 

 

THE SPREADING LIQUIDATION OPERATION IS NOW OVER FOR GOLD..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR SILVER.  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 SILVER AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF OCT 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 OCT BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (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.” 

 

 

 

 

 

 

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

18,867 CONTRACTS (FOR 17 TRADING DAYS TOTAL 18,867 CONTRACTS) OR 94.34 MILLION OZ: (AVERAGE PER DAY: 1109 CONTRACTS OR 5.55 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF OCT:  94.34 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 13.50% 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:          1734.08   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

SEPT 2019 TOTAL EFP ISSUANCE                                                  174.900 MILLION OZ

RESULT: WE HAD A SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 751, DESPITE THE 9 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  FAIR SIZED EFP ISSUANCE OF 991 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: 1742 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 991 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 751  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 9 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $17.48 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. 1.070 BILLION OZ TO BE EXACT or 153% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 40 NOTICE(S) FOR 200,000 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 43.030 MILLION OZ//OCT: 7.075 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)

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A TINY SIZED 138 CONTRACTS, TO 625,528 ACCOMPANYING THE  $0.15 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING// YESTERDAY// /

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 6283 CONTRACTS:

OCT 2019: 0 CONTRACTS, DEC>  6283 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 625,528,,.  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 SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6,421 CONTRACTS:

138 CONTRACTS INCREASED AT THE COMEX  AND 6283 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6,489 CONTRACTS OR 648,900 OZ OR 20.18 TONNES.  YESTERDAY WE HAD A LOSS OF $0.15 IN GOLD TRADING….

AND WITH THAT LOSS IN  PRICE, WE  HAD A GOOD GAIN IN GOLD TONNAGE OF 20.18  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON AS ANOTHER RAID WAS INITIATED. THE BANKERS WERE  SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (DOWN $0.15) .THEY WERE UNSUCCESSFUL IN FLEECING  GOLD LONGS FROM THE GOLD ARENA AS THE TOTAL OI ON BOTH EXCHANGES ROSE BY A GOOD 6,489 CONTRACTS OR 20.18 TONNES..

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF OCT : 111,053 CONTRACTS OR 11,105,300 oz OR 345.42 TONNES (17 TRADING DAY AND THUS AVERAGING: 6532 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAYS IN  TONNES: 345.42 TONNES

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

THUS EFP TRANSFERS REPRESENTS 345.42/3550 x 100% TONNES =9.73% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     4990.86  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

SEPT. 2019 TOTAL ISSUANCE:                    509.57  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 TINY SIZED INCREASE IN OI AT THE COMEX OF 138 DESPITE THE  PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($0.15)) //.WE ALSO HAD  A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 6,283 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 6283 EFP CONTRACTS ISSUED, WE  HAD A GOOD SIZED GAIN OF 6,421 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

6283 CONTRACTS MOVE TO LONDON AND 138 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 19.97 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED DESPITE THE SMALL LOSS IN PRICE OF $0.15 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

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

 

 

 

 

 

 

 

 

we had:  8 notice(s) filed upon for 800 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD UP $8.40 TODAY//(COMEX-TO COMEX)

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//

A MASSIVE PAPER WITHDRAWAL OF: 4.98 TONNES

THIS PAPER GOLD WAS USED IN THE FAILED RAID@@!!

 

INVENTORY RESTS AT 919.66  TONNES

 

 

 

SLV/

 

WITH SILVER UP 9 CENTS TODAY: 

 

NO CHANGE IN SILVER INVENTORY AT THE SLV

 

 

/INVENTORY RESTS AT 377.834 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

 

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER ROSE BY A FAIR SIZED 751 CONTRACTS from 213,778 UP TO 214,529 AND CLOSER TO 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 OCT. 0; FOR DEC 991  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 991 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI GAIN AT THE COMEX OF 751 CONTRACTS TO THE 991 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A VERY GOOD SIZED GAIN OF 1742 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 8.710 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//  SEPT: 43.030 MILLION OZ///OCT: 7.075 MILLION OZ//

 

 

RESULT: A FAIR SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 9 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 991 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 12.76 POINTS OR 0.43%  //Hang Sang CLOSED DOWN 219.47 POINTS OR 0.82%   /The Nikkei closed UP 76.48 POINTS OR 0.34%//Australia’s all ordinaires CLOSED DOWN .01%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0738 /Oil UP TO 53.96 dollars per barrel for WTI and 59.23 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0738 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0754 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

i)HONG KONG

death threats against Hong Kong protesters have been noted and they are certainly taking a toll on young activists…  suicide numbers  rise!!

(zerohedge)

ii)CHINA

Wow!! Poultry prices are escalating big time in China due to the Ebola pig virus
(zerohedge)

iii)China injected another whopping liquidity as its GDP is dropping into the “5 handle”  (in real terms probably a growth of less than one percent.) They did not drop their libor rate..

(zerohedge)

iv)CHINA/HONG KONG

LOOKS LIKE BEIJING HAS HAD ENOUGH..THEY ARE PLANNING THE OUSTER OF CARRIE LAM

(ZEROHEDGE)

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Not good!! Russia claims that 500 terrorists (Isis) have escaped North Syria and these guys will play havoc as they have been in captivity for quite a while.  They have nothing else to do except terrorize the west.

(zerohedge)

ii)TURKEY/SYRIA/USA

Trump lifts sanctions on Turkey as the ceasefire holds and the Kurdish forces are now in the safe zone.  Supposedly the iSIS prisoners are now behind bars
(zerohedge)

6.Global Issues

Bellwether Caterpillar, my favourite stock to indicate global growth plunges after missing earnings and must importantly slashing guidance

(zerohedge)

7. OIL ISSUES

a)The real reason Turkey is invading Syria.  It needs Syria’s oi fields.  Turkey consumes 1 million barrels per day and Syria can provide 30% of that.

(Oil Price.com)

b)Syria/USA/Kurds

Now the USA sees it they will secure the oil fields with a small number of troops. With the Kurds joining forces with Assad, and no doubt the Kurds would have to give up some of this oil..what will the USA do surrounded by nothing but hostile forces?

(zerohedge)

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

a)Germany for the first time in 21 years purchases 2.8 tonnes of gold and puts it in its official reserves

When Germany does this you know the fiat game is over.

(zerohedge)

b)Hemke pounds that table that the repo market is signaling that the Fed is a panic mode:

(Greg Hunter/USAWatchdog/Hemke)

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

What caused the stock increase late in the day? It was the Fed dramatically increasing liquidity. In overnight a huge 60% increase from 75 billion up to 120 billion and then the term repo increasing from $35 billion up to $45 billion. So the Fed needs to provide 120 billion of liquidity per day…what are they trying to tell us?  Remember the words of Lee Adler..Oct 31…

(zerohedge)

ii)Market data/USA

iii) Important USA Economic Stories

a)After huge payouts to its former owners, the new administration finds that it is running out of cash as they abandon plans to move its headquarters into New York’s  former Lord and Taylor building

(zerohedge)

b)My goodness!! Boeing is deteriorating fast.  Its revenue tumbled 20% as it is burning cash like no tomorrow.  And now its 787 Boeing has been throttled.

(zerohedge)

c)With rates extremely low, refis collapse the most in 3 years.  This is not good for the housing sector

(zerohedge)

d)This is huge:  the 4th POMO is almost 600% oversubscribed.  Liquidity is getting worse!!. The big question is why are the banks not providing their excess reserves knowing that the Fed will continue to provide liquidity until 2020.  What do they know that we do not know

(zerohedge)

e)California

here we go again: over 1 million Californians may be affected by another blackout to prevent fires
(zerohedge)

iv) Swamp commentaries)

a)Taylor tells the panel that there is a quid pro quo but Johnny Ratcliffe destroys the witness in cross examination

(zerohedge)

b)What a riot!!  The Republicans storm the secretive impeachment hearing in the Capitol basement and demand transparency.  Schiff immediately leaves without uttering a sound

(zerohedge)

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

 

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A TINY SIZED 138 CONTRACTS TO A LEVEL OF 625,596ACCOMPANYING THE SMALL LOSS OF $0.15 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF OCT..  THE CME REPORTS THAT THE BANKERS ISSUED GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 6283 EFP CONTRACTS WERE ISSUED:

 FOR OCT; 0 CONTRACTS: DEC: 6283   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  6283 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: 6421 TOTAL CONTRACTS IN THAT 6283 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A TINY SIZED 138 COMEX CONTRACTS. 

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD.  THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE AS IT FELL BY $0.15. HOWEVER, JUDGING BY THE STRENGTH IN GAIN OF OUR TOTAL OI CONTRACTS, THEY WERE UNSUCCESSFUL IN THE ENDEAVOUR TO FLEECE ANY UNSUSPECTING LONGS. 

 

NET GAIN ON THE TWO EXCHANGES ::  6421 CONTRACTS OR 642100 OZ OR 19.97 TONNES.

We are now in the active contract month of OCTOBER.  This month is generally the poorest delivery month of the year as must players prefer to go straight to the big active delivery month of December. Strangely October will turn out to be a huge delivery month. Today we have 167 contracts still standing for a LOSS of 32 contracts. Yesterday we had 68 notices served upon so we have another good of a gain of 36 contracts or an additional 3600 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus. We again have queue jumping by the bankers/official sector in their attempt to find physical metal on this side of the pond.

 

The next active delivery month after October is the non active contract month of November. Here we saw a GAIN of 3 contracts and thus the OI INCREASED to 954.  The very big December contract month saw its oi FALL by 2555 contracts DOWN to 468,891.

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 8 NOTICES FILED TODAY AT THE COMEX FOR  800 OZ. (0.0248 TONNES)

 

 

 

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And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A FAIR SIZED 751 CONTRACTS FROM 213,778 UP TO 214,529 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S FAIR  OI COMEX GAIN OCCURRED WITH A 9 CENT LOSS IN PRICING.//YESTERDAY.

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF OCTOBER.  HERE WE HAVE 135 OPEN INTEREST STAND FOR DELIVERY WITH A GAIN OF 23 CONTRACTS. WE HAD 16 CONTACTS SERVED UPON YESTERDAY SO WE GAINED 39 CONTRACTS OR 195,000 ADDITIONAL OZ WILL STAND FOR DELIVERY IN THIS NON ACTIVE MONTH.  THE ALSO REFUSED TO MORPH INTO LONDON BASED FORWARDS AS WELL AS NEGATING A FIAT BONUS.

 

AFTER OCTOBER WE HAVE THE NON ACTIVE MONTH OF NOVEMBER AND HERE  WE HAD A SMALL GAIN OF 16 CONTRACTS TO STAND AT 512. THE NEXT ACTIVE DELIVERY MONTH AFTER SEPT IS DECEMBER AND HERE THE OI FALLS BY 257 CONTRACTS DOWN TO 159,240.

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 40 notice(s) filed for 200,000, OZ for the OCT, 2019 COMEX contract for silver

Trading Volumes on the COMEX TODAY: 231,169  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  217,892  contracts

 

 

 

 

 

INITIAL standings for  OCT/GOLD

OCT 23/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
160.75 oz
bank of Nova Scotia
5 kilobars
a phony entry.
Deposits to the Dealer Inventory in oz nil oz

 

Delaware

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
8 notice(s)
 800 OZ
(0.0248 TONNES)
No of oz to be served (notices)
159 contracts
(15900 oz)
0.4945 TONNES
Total monthly oz gold served (contracts) so far this month
11,919 notices
1,191,900 OZ
37.073 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  oz

 

 

 

total gold deposits: 0  oz

 

very little gold arrives from outside/ Today  zero amount  arrived

we had 1 gold withdrawal from the customer account:

i Out of BNS: 160.75 oz was withdrawn

5 kilobars

 

total gold withdrawals; 160.75  oz

We had one adjustment of out Delaware:

Out of the dealer Delaware:  500.722 oz was adjusted out of the dealer and this landed into the customer account of Delaware and this would be a settlement. (.0155 tonnes)

 

FOR THE OCT 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 8 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

To calculate the INITIAL total number of gold ounces standing for the OCT /2019. contract month, we take the total number of notices filed so far for the month (11,919) x 100 oz , to which we add the difference between the open interest for the front month of  OCT. (167 contract) minus the number of notices served upon today (8 x 100 oz per contract) equals 1,207,800 OZ OR 37.567 TONNES) the number of ounces standing in this  active month of OCT

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

No of notices served (11,919 x 100 oz)  + (167)OI for the front month minus the number of notices served upon today (8 x 100 oz )which equals 1,207,800 oz standing OR 37.567 TONNES in this  active delivery month of OCT.

We gained a strong 36 contracts OR 3600 ADDITIONAL OZ which queue jumped as our bankers //official sector were searching for badly needed physical on this side of the pond. There is no doubt that these guys need to put out fires springing up everywhere!!

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES.… WE HAVE ONLY 35.696 TONNES OF REGISTERED

HERE IS WHAT STOOD DURING THESE PAST 3 MONTHS:  AUGUST 27.153 TONNES

SEPT:      5.4525 TONNES

 

AND NOW……………………………………………………………………………     OCT…..   37.567 TONNES

 

 

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 IN SEPT 3 TRANSACTIONS FOR 2.60155 TONNES.

IF WE ADD THE THREE DELIVERY MONTHS: 70.173

TONNES- 2.60 TONNES DEEMED SETTLEMENT = 67.5714 TONNES STANDING FOR METAL AGAINST 35.773 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:  1,150,133.586 oz or  35.773 tonnes 
total registered and eligible (customer) gold;   8,186,090.956 oz 254.621 tonnes
WHY ARE THEY NOT SETTLING?
THE COMEX IS AN ABSOLUTE FRAUD..WE HAVE ZERO SETTLEMENTS.

IN THE LAST 36 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.

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..WE HAVE ZERO SETTLEMENTS.

end

And now for silver

AND NOW THE  DELIVERY MONTH OF OCT.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
OCT 23 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 717,152.360 oz
BRINKS
HSBC

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
501,863.990 oz
CNT
JPM
No of oz served today (contracts)
40
CONTRACT(S)
(200,000 OZ)
No of oz to be served (notices)
95 contracts
 475,000 oz)
Total monthly oz silver served (contracts)  1320 contracts

6,600,000 oz)

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

**

we had 0 inventory movement at the dealer side of things

 

 

 

 

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

i)we had  2 deposits into the customer account

into JPMorgan:   600,931.290 OZ  JPMorgan resumes deposits after a one day holiday. Prior to yesterday they had 6 straight deposits.

ii) Into CNT: 1,932.70 oz

 

 

 

 

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

JPMorgan now has 160.1 million oz of  total silver inventory or 50.90% of all official comex silver. (160.1 million/314.4 million

 

 

 

 

total customer deposits today:  601,863.990  oz

 

we had 2 withdrawals out of the customer account:

 

 

i) Out of Brinks:  600,931.290 oz  (delivered to JPMorgan)

ii) Out of HSBC: 116,221.070 oz

 

 

 

 

 

 

 

 

 

total 717,152.360  oz

 

 

total dealer silver:  82.793 million

total dealer + customer silver:  314.426 million oz

 

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The total number of notices filed today for the OCT 2019. contract month is represented by 40 contract(s) FOR 400,000 oz

To calculate the number of silver ounces that will stand for delivery in OCT, we take the total number of notices filed for the month so far at 1320 x 5,000 oz = 6,600,000 oz to which we add the difference between the open interest for the front month of OCT. (135) and the number of notices served upon today 40 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the OCT/2019 contract month: 1320 (notices served so far) x 5000 oz + OI for front month of OCT (135)- number of notices served upon today (40) x 5000 oz equals 7,075,000 oz of silver standing for the OCT contract month. 

WE GAINED 39 contracts or an additional 195,000 oz of silver will stand at the comex as they guys refused to morph into London based forwards. For the past several weeks we have been witnessing queue jumping in both gold and silver.

 

LADIES AND GENTLEMEN:  THE COMEX IS UNDER ASSAULT FOR BOTH PHYSICAL GOLD AND SILVER WITH SILVER IN THE LEAD BY FAR. DESPITE  MASSIVE RAIDS, LONGS CONTINUE WITH THEIR HUNT AT THE COMEX FOR PHYSICAL METAL.. IT WILL NOT BE LONG BEFORE WE WITNESS A COMMERCIAL FAILURE..STAY TUNED..WE WITNESSED CONSIDERABLE BANKER SHORT COVERING IN SILVER TODAY AND AN ATTEMPTED BANKER SHORT COVERING IN GOLD WITH ZERO SUCCESS.

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 40 notice(s) filed for 400,000 OZ for the OCT, 2019 COMEX contract for silver

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  49,374 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 60,035 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 60,035 CONTRACTS EQUATES to 300 million  OZ 42.8% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV RISES TO -1.36% ((OCT 23/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.01% to NAV (OCT 23/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.36%

(courtesy Sprott/GATA)

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

NAV 14.95 TRADING 14.52///DISCOUNT 2.90

 

 

 

END

 

And now the Gold inventory at the GLD/

OCT 23/2016′ WITH GOLD UP $8.40 TODAY: A HUGE PAPER WITHDRAWAL OF 4.98 TONNES  IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 919.66 TONNES

OCT 22.WITH GOLD DOWN $0.15: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 924.64 TONNES

OCT 21/WITH GOLD DOWN $6.25//A HUGE CHANGE IN GOLD INVENTORY AT THE : A MONSTROUS PAPER DEPOSIT OF 6.45 TONNES//GLD/INVENTORY RESTS AT 924.64 TONNES

OCT 18/WITH GOLD DOWN $3.25 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 918.19 TONNES

OCT 17/WITH GOLD UP $4.00 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.47 TONNES OF GOLD FROM THE GLD////INVENTORY RESTS AT 918.19 TONNES

OCT 16/WITH GOLD UP $10.25 TODAY//A BIG CHANGE IN GOLD INVENTORY AT THE GLD; A PAPER WITHDRAWAL OF 2.05 TONNES/INVENTORY RESTS AT 919.66 TONNES

OCT 15//WITH GOLD DOWN$13.25 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 921.71 TONNES

OCT 14/2019: WITH GOLD UP $8.25 TODAY//NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 921.71 TONNES

OCT 11/WITH GOLD DOWN $12.90 TODAY NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 921.71 TONNES

OCT 10/WITH GOLD DOWN $10.00 TODAY, A SMALL CHANGE IN GOLD INVENTORY AT THE GLD A WITHDRAWAL OF 2.05 TONNES OF GOLD FROM THE GLD//INVENTORY RESTS AT 921,71 TONNES

OCT.9//WITH GOLD UP $8.90//NO CHANGE IN GOLD INVENTORY AT THE GLD

OCT 8\WITH GOLD DOWN 35 CENTS //NO CHANGE IN GOLD INVENTORY AT THE GLD

OCT 7 WITH GOLD DOWN 7 DOLLARS//A BIG CHANGE //A DEPOSIT OF 2.93 TONNES//

INVENTORY RISES TO 923.76 TONNES

OCT 1/WITH GOLD UP $15.25 A HUGE PAPER WITHDRAWAL OF 2.05 TONNES FROM THE GLD///INVENTORY REST AT 920.83 TONNES

SEPT 30/WITH GOLD DOWN $32.50: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.06 TONNES FROM THE GLD /INVENTORY RESTS AT 922.88 TONNES

SEPT 27.WITH GOLD DOWN $8.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 924.94 TONNES

SEPT 26//WITH GOLD UP $2.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 924.94 TONNES

SEPT 25/WITH GOLD DOWN $26.90 A HUGE  PAPER DEPOSIT OF:  16.42 TONNES//INVENTORY RESTS AT 924.94 TONNES

 

SEPT 24/WITH GOLD UP $8.65 TODAY: A MONSTROUS CHANGE IN GOLD INVENTORY AT THE GLD: AN OUT OF THIS WORLD DEPOSIT OF 14.37 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 894.15 TONNES

SEPT 23/WITH GOLD UP $16.25 ON THE DAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER ADDITION OF 10.65 TONNES//INVENTORY RESTS AT 894.15 TONNES

SEPT 20/WITH GOLD UP $8.60 ON THE DAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 883.06 TONNES

SEPT 19/WITH GOLD DOWN $8.90 TODAY: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 3.23 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 883.60 TONNES

SEPT 18/WITH GOLD UP $2.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 5.86 TONNES/INVENTORY RESTS AT 880.37 TONNES

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

OCT 23/2019/ Inventory rests tonight at 919.66 tonnes

 

 

*IN LAST 688 TRADING DAYS: 29.99 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 588 TRADING DAYS: A NET 137.15 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

OCT 23/2019: WITH SILVER UP 9 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 377.834 MILLION OZ//

OCT 22/WITH SILVER DOWN 9 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.963 MILLION OZ//INVENTORY RESTS AT 377.834 MILLION OZ.

OCT 21/WITH SILVER UP ONE CENT TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.222 MILLION OZ FROM THE SLV../INVENTORY RESTS AT 379.797 MILLION OZ//

OCT 18/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.919 MILLION OZ

OCT 17./WITH SILVER UP 17 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.87 MILLION OZ FROM THE SLV.//INVENTORY RESTS AT 380.919 MILLION OZ//

OCT 16/WITH SILVER UP 4 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 382.789 MILLION OZ//

OCT 15/WITH SILVER DOWN 30 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 2.15 MILLION OZ//. INVENTORY RESTS AT 382.789 MILLION OZ

OCT 14/WITH SILVER UP 18 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 384.939 MILLION OZ

OCT 11/WITH SILVER DOWN 6 CENTS NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 384.939 MILLION OZ//

OCT 10/2016//WITH SILVER DOWN 22 CENTS: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 1.443 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 384.939 MILLION OZ

OCT 8/WITH SILVER UP 15 CENTS //NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 383.496 MILLION OZ

OCT 7/WITH SILVER DOWN 6 CENTS A SMALL WITHDRAWAL OF 166,000 OZ/INVENTORY LOWERS TO 383.496 MILLION OZ

OCT 1.2019 //WITH SILVER UP 30 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 1.87 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 383.656 MILLION OZ//

SEPT 30/WITH SILVER DOWN 58 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 381.786 MILLION OZ/

SEPT 27/WITH SILVER DOWN 34 CENTS TODAY/ NO CHANGE IN SILVER INVENTORY AT THE SLV//.INVENTORY RESTS AT 381.786 MILLION OZ/

SEPT 26/WITH SILVER DOWN 12 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 3.975 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 381.786 MILLION OZ/

SEPT 25.//WITH SILVER DOWN 58 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 377.811 MILLION OZ//

SEPT 24/WITH SILVER DOWN 5 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.338 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 377.811 MILLION OZ//

SEPT 23.2019/WITH SILVER UP 80 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 375.473 MILLION OZ.

SEPT 20/ WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 375.473 MILLION OZ.

SEPT 19/WITH SILVER DOWN 4 CENTS TODAY; A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.029 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 375.473 MILLION OZ/

SEPT 18/WITH SILVER DOWN 24 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 376.502 MILLION OZ//

 

 

OCT 23/2019:

:

 

Inventory 377.834 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.96/ and libor 6 month duration 1.93

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

G0LD LENDING RATE: – .03

 

XXXXXXXX

12 Month MM GOFO
+ 1.87%

LIBOR FOR 12 MONTH DURATION: 1.97

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.10

end

 

 

end

 

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

Germany Increase Gold Reserves In September For The First Time In 21 Years – IMF

Source: Bloomberg

◆ The gold reserves of the German Bundesbank rose in September for the first time in 21 years; German gold reserves rose to 108.34 million ounces in September from 108.25 million ounces last month

◆ It was the Germany’s first gold purchase since 1998 and while the amounts are not huge at 90,000 troy ounces, it highlights the Bundesbank and German concerns about the global monetary system and euro itself as Christine Lagarde takes over the ECB

◆ International Monetary Fund (IMF) data shows central banks continued their 2019 gold buying spree in September with the UAE, Kazakhstan and Belarus all adding to their gold reserves

Turkey’s gold reserves increased by another one million ounces in September as tensions with the U.S. and geopolitical risks escalated  ( Harvey:  31.1 tonnes of gold added)  

◆ Central bank gold reserves are normally reported on in the financial media but the German gold purchase has only been covered on the Bloomberg terminal (see above)

NEWS & COMMENTARY

Germany and Turkey increased their gold reserves in September

September was a global Central Bank buying spree for gold – Germany returns as buyers with Turkey adding 800,000 ozs, more..

Gold flat, but finds few cues as traders watch Brexit, U.S.-China trade talks

Gold hovers as traders watch Brexit, U.S.-China trade talks

As Draghi era ends at ECB, cheap money concerns nag

Half the World’s Banks Are Too Weak to Survive a Downturn, McKinsey Says

 

Understand the Real Causes of the Coming Collapse
Listen to Goldnomics Podcast Here

GOLD PRICES (LBMA – USD, GBP & EUR – AM/ PM Fix)

22-Oct-19 1487.45 1485.35, 1149.50 1149.66 & 1335.28 1334.14
21-Oct-19 1490.85 1491.65, 1147.81 1148.27 & 1334.91 1337.12
18-Oct-19 1487.50 1490.00, 1154.15 1155.64 & 1336.67 1337.28
17-Oct-19 1484.45 1492.65, 1151.64 1162.63 & 1336.60 1341.59
16-Oct-19 1482.55 1485.10, 1166.32 1155.85 & 1344.52 1343.27
15-Oct-19 1494.75 1487.80, 1183.69 1178.34 & 1357.08 1353.30
14-Oct-19 1494.20 1490.60, 1188.79 1182.94 & 1354.04 1352.12
11-Oct-19 1498.35 1479.15, 1197.93 1166.01 & 1359.90 1338.33
10-Oct-19 1508.20 1494.80, 1232.35 1222.75 & 1368.69 1356.38
09-Oct-19 1503.40 1507.25, 1228.43 1232.93 & 1369.00 1372.65

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Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

iii) Other physical stories:

The End Of Fiat In One Chart

Germany for the first time in 21 years purchases 2.8 tonnes of gold and puts it in its official reserves

When Germany does this you know the fiat game is over.

(zerohedge)

For the first time in 21 years, Germany has openly bought gold into its official reserve holdings.

Source: Bloomberg

German reserves climbed to 108.34m oz in September from 108.25m a month earlier. (90,000 oz or 2.8 tonnes)

Source: Bloomberg

With ECB mutiny and Deutsche Bank’s rapid demise, fears are rising of a looming financial crisis, and with that, Germany has shown a renewed interest in gold.

As a reminder, September’s outright purchase of the precious metal comes after Germany’s central bank, the Bundesbank, repatriated 583 tonnes, or $31 billion worth, of gold in 2017, years ahead of schedule.

Which came after Germany’s stunning announcement in January 2013 that the Bundesbank would repatriate 674 tons of gold from the NY Fed and the French Central Bank (which was initially abandoned in 2014).

Of course, while Germany is now the latest to turn to gold as a safe haven store of value in its reserves, it is not the first as the de-dollarization shift has been accelerating in recent months

Source: Bloomberg

Germany’s shift comes after China’s acceleration in gold-buying as Peter Schiff recently noted this a “global gold rush on the part of central banks” in preparation for a dollar crash.

“The days that the dollar is a reserve currency are numbered and the smart central banks are trying to buy as much gold as they can before the number is up,” Schiff said.

Remember, nothing lasts forever

And now that the always conservative Germans are back in the market buying gold, one wonders if the end of fiat is drawing closer.

end
Hemke pounds that table that the repo market is signaling that the Fed is a panic mode:
(Greg Hunter/USAWatchdog/Hemke)

Hemke: ‘Pawn Shop’ Repo-Market “Signals Fed Panic-Mode”

Via Greg Hunter’s USAWatchdog.com,

Early this year, financial writer and precious metals expert Craig Hemke predicted the Fed would be forced to return to QE, just like in the 2008 market meltdown. Looks like Hemke’s prediction has come true because the Federal Reserve is printing billions in cash in the Repo market every week. Hemke explains, “At the last Fed meeting in September, we were told that the Fed was ‘neutral’ right now, and they were just going to be ‘data dependent’ and everything is fine…”

Just three weeks later, (Fed Head) Powell is out there saying we are going to have to restart buying T-Bills, and these repo facilities we have set up are going to become a permanent thing.

Wait, whoa, what happened here? Just three weeks ago, you said everything was fine. These repo facilities they have set up are basically like a Fed pawn shop where banks can come to the Fed and say here are some Treasury bonds… we are going to give you these Treasury bonds and you are going to give us some cash.

We thought this was temporary back at the end of September, and now it’s a permanent deal. Every single day, banks are showing up at this Fed window demanding dollars. Powell has also said don’t you dare call this quantitative easing, and the Fed is going to start monetizing $60 billion in U.S. debt every single month through June. . . . That’s over $500 billion in debt they are going to monetize, but don’t call it QE…

The point is the central bankers are moving into a panic mode. I thought this was going to be more gradual… all of a sudden, the signs are there that this is a panic.”

Hemke says there are plenty of signals being put out that things are getting much worse for the global economy. Hemke points out a new financial report out this week that says, “More than half of the world’s banks may not be able to survive the next financial crisis or recession because they don’t have the liquidity reserves – more than half…”

“Let me hit you with one more. Mervyn King, who used to be Head of the Bank of England . . . earlier this week, said, ‘It’s time for the Federal Reserve and other central banks to begin talks behind closed doors with politicians to make legislators aware of how vulnerable they would be in the event of another crisis. What? Talks behind closed doors?

…They are doing everything they can to keep the illusion going. They are doing everything they can to keep the markets propped up. In the end, there is going to be a loss of faith in the central bank’s ability to keep it all going. This will bleed over to the demand for gold and silver. We are seeing that at the retail level, the institutional level and even at the central bank level. This is going to be a great year for gold and silver, and prices are only going to keep going higher.”

Is there an imminent financial crash near? Hemke says,

“Yes, right, exactly. I think this explains the near panic move, not only by the European Central Bank (ECB)…but by Powell and the Fed when everything was fine in September to all these emergency measures now

So, there is some pretty nasty stuff brewing out there. There is some real liquidity monetary tightness that is pushing things to the verge of collapse, really. They are doing everything they can to stave it off. . . . The curtain is being pulled back on central bankers, and it reveals them to be charlatans…

They are not these all-knowing masters of the universe looking out for the world. No, they don’t know what they are doing. They are just trying to maintain this illusion…

The demand for all the massive amount of money from the central banks and the Fed leads to a crisis of confidence in their ability to keep things going. Why would you not want gold and silver? There is a global awakening to that, and that is why prices have hit new all-time highs in 70 currencies around the globe, and we will see new all-time highs in dollar terms, too, next year.”

Join Greg Hunter as he goes one-on-One with Craig Hemke of TFMetalsReport.com.

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There is some free information on TFMetalsReport.com. If you want to become a subscriber to TFMetalsReport.com Click Here.

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: 7.0738/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0754   /shanghai bourse CLOSED DOWN 12.76 POINTS OR 0.43%

HANG SANG CLOSED DOWN 219.47 POINTS OR 0.82%

 

2. Nikkei closed UP 76.48 POINTS OR 0.34%

 

 

 

 

3. Europe stocks OPENED MOSTLY RED/

 

 

 

USA dollar index UP TO 97.59/Euro FALLS TO 1.1116

3b Japan 10 year bond yield: FALLS TO. –.14/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.44/ 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:: 53.96 and Brent: 59.23

3f Gold UP/JAPANESE Yen UP 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 FALLS TO -.41%/Italian 10 yr bond yield DOWN to 0.91% /SPAIN 10 YR BOND YIELD DOWN TO 0.23%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.32: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.29

3k Gold at $1492.10 silver at: 17.53   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 22/100 in roubles/dollar) 63.94

3m oil into the 53 dollar handle for WTI and 59 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.85 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9896 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1002 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.41%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 1.73% early this morning. Thirty year rate at 2.22%

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

6.  TURKISH LIRA:  UP  TO 5.7789..

Futures Slides On As Dismal Earnings, Brexit Confusion Keep S&P Below 3,000,

After a sharp selloff in FANG stocks in the last hour of trading on Tuesday dragged the S&P back under 3,000, subsequent earnings bombs by Texas Instruments last night and Caterpillar this morning did little to improve the mood, and futures slumped this morning…

… as European stocks tried (and failed) to stage a modest rally from early lows with miners and oil and gas sectors helping to stem the negative spillover from Asian hours, while the tech sector was lower by 1% after ugly Texas Instruments earnings. Indeed, Europe’s tech sector fell as much as 1.4% as STMicroelectronics, Dialog Semiconductor and Infineon all dropped after Texas Instruments slumped 10% in after-hours Wall Street trading.

Major Asian chipmakers, including Taiwan’s TSMC and South Korea’s SK Hynix, had fallen overnight too on worries the industry was being squeezed both by a downturn in global demand and by the U.S.-China trade war.  “When there are tensions in trade and obstacles to trade, what do businesses do? They become more cautious. And they pull back,” Rafael Lizardi, Texas Instruments’ chief financial officer, said after the company’s results.

It wasn’t just poor earnings, however, or the fear that analysts were overly optimistic about the future after CAT slashed its full year guidance: world stock markets also struggled as hopes faded that a Brexit deal would be wrapped by next week, although it was hard to pick which was weighing on sentiment more in European trading.  Adam Cole, a strategist at RBC Capital Markets, said Brexit was driving a “general risk-off tone.” Others pointed to the growing likelihood British Prime Minister Boris Johnson would now push for a snap election.

The pound was yanked down to $1.2850 from $1.30 after UK lawmakers put the brakes on the government’s Brexit plans again on Tuesday, just as expected following Goldman’s latest upgrade of cable. As a reminder, Goldman’s FX team is the Gartman of the currency market.

zerohedge@zerohedge

Kiss of death for cable: “We continue to expect that GBP has further to rally on a ‘deal’ outcome, and we maintain our long GBPUSD recommendation” – Goldman

Meanwhile, any hopes for forgetting Texas’ woes were already dashed as industrial bellwether Caterpillar blamed a weak global construction market as it cut its profit forecast after a hefty 13.5% fall in third quarter profits. Dismal results from Boeing did not help either.

And with investors again scrambling into safe assets, the Japanese yen climbed to a one-week high of 108.25 per dollar and the Swiss franc gained early in Europe.

US Treasury yields predictably slumped too, dropping as low as 1.73% after reaching for 1.80% one session earlier. Bund futures reversed an early dip to trade around Asia’s best levels, with 10y yields 3.5bp lower as core and peripheral yield curves bull flatten. Gilts gaped higher at the open, as yields slid ~5bps across the curve focusing on Brexit extension developments and a potential general election.

While the pound tumbled amid the political chaos, receding worries about a no-deal Brexit also underpinned the euro at $1.1122, just below a two-month high of $1.1180, though it was also down to the dollar staying subdued before an expected third U.S. interest rate cut of the year next week. In a mirror image of the pound and euro, October is on course to see the biggest monthly fall in the dollar index since January 2018. It has only fallen for six of the months during that period too.

In commodity markets, oil prices fell after data showed U.S. crude inventories grew more than expected last week. But prices generally held firm after China signalled hopes for progress in upcoming trade talks with the United States and OPEC and its allies considered deeper cuts in production. Brent crude futures fell 0.52% to $59.39 a barrel. U.S. West Texas Intermediate crude lost 0.81% to $54.04 per barrel. Gold is firmer on the session and currently trades toward the day’s high. Elsewhere, copper prices are just above the USD 2.60/lb on the day thus far as sentiment keeps prices subdued; in specific newsflow, Antofagasta noted Q3 copper production of 197k tonnes, -14.5% YY.

Expected data include mortgage applications. Blackstone, Boeing, Caterpillar, Microsoft and Tesla are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures down 0.1% at 2,991.75
  • STOXX Europe 600 down 0.1% to 394.09
  • MXAP down 0.01% to 160.36
  • MXAPJ down 0.4% to 513.95
  • Nikkei up 0.3% to 22,625.38
  • Topix up 0.6% to 1,638.14
  • Hang Seng Index down 0.8% to 26,566.73
  • Shanghai Composite down 0.4% to 2,941.62
  • Sensex up 0.5% to 39,157.19
  • Australia S&P/ASX 200 up 0.01% to 6,673.09
  • Kospi down 0.4% to 2,080.62
  • German 10Y yield fell 3.5 bps to -0.403%
  • Euro down 0.04% to $1.1121
  • Italian 10Y yield fell 5.8 bps to 0.584%
  • Spanish 10Y yield fell 3.0 bps to 0.231%
  • Brent futures down 0.9% to $59.19/bbl
  • Gold spot up 0.5% to $1,494.48
  • U.S. Dollar Index little changed at 97.56

Top Overnight News

  • Boris Johnson looked set to try for an election after Parliament blocked his plan to rush his Brexit deal into U.K. law. An official in his office warned that if the EU agreed to a request from the British Parliament that Brexit be delayed until Jan. 31, then the prime minister would call an election instead. Meanwhile, European Council President Donald Tusk said he’d recommend the EU accept the U.K.’s request for a delay. A more flexible extension may also be possible.
  • Donald Trump’s top envoy to Ukraine became one of the biggest threats to his presidency.William Taylor, a career bureaucrat who took charge of the U.S. embassy in Ukraine in June, provided House investigators on Tuesday with a meticulously detailed 15-page statement, chronicling an “irregular policy channel” with Kyiv, in which Trump associates circumvented traditional diplomatic paths to pressure the country’s new president to investigate White House political rivals
  • European Central Bank President Mario Draghi has been the bond market’s best friend and investors aren’t expecting the same support from his successor Christine Lagarde. Since Draghi took the helm of the ECB eight years ago, Europe’s sovereign bonds have surged, with German debt returning 27% and that of Ireland almost 90%, Bloomberg Barclays indexes show
  • The Chinese government is drafting a plan to replace Hong Kong’s Carrie Lam with an “interim” chief executive, the Financial Times reported, citing unidentified people briefed on the deliberations
  • The Bank of Japan is considering lowering its forecasts for economic growth and inflation this year in a quarterly outlook report to be released at the end of a policy meeting on Oct. 31, according to people familiar with the matter

Asian equity markets traded lacklustre as the region took its cue from the losses on Wall St where sentiment was dampened by further Brexit uncertainty. ASX 200 (U/C) was negative with the index dragged by weakness in defensives as well as the largest weighted financials sector, while the NZX 50 (-2.1%) slumped heavily amid weakness in energy stocks and with local investors spooked after reports Rio Tinto was mulling a strategic review of its smelter operations as it sees continued losses for its New Zealand assets. Nikkei 225 (+0.3%) struggled to maintain the holiday cheer on return from yesterday’s closure amid flows into the JPY with underperformance in SoftBank amid its bailout of WeWork including USD 5bln of new financing, although Eisai shares were indicated to surge over 18% and hit limit up with a glut of buy orders after aducanumab partner Biogen revived hope in its Alzheimer’s treatment and is to seek FDA approval next year. Hang Seng (-0.9%) and Shanghai Comp. (-0.4%) conformed to the overall downbeat tone with the former mired by political uncertainty as Beijing was said to draw up plans to replace Hong Kong Chief Executive Lam, although mainland losses were cushioned by another substantial PBoC liquidity effort. Finally, 10yr JGBs opened back above the 154.00 level as it tracked gains in T-notes and amid the predominantly risk-averse tone, but with upside limited as Japanese stocks just about stayed afloat and with the BoJ only in the market for Treasury Discount Bills.

Top Asian News

  • Tencent Shares Risk Losing Support Level as Losses Accelerate
  • Malaysia Privately Discusses Goldman Penalty of Just $2 Billion
  • China Plans First Euro Bond Since 2004 as Borrowing Costs Slump
  • KKR-Backed PropertyGuru Shelves $260 Million IPO in Australia

Major European Bourses (Euro Stoxx 50 -0.1) are mixed, as indices recover off of Brexit related overnight lows, following on from a lacklustre AsiaPac session. With Sterling off recent highs as Brexit uncertainty lingers, the FTSE 100 (+0.5) has been the marked outperformer, breaking back above the 7200 mark and 50DMA at 7216. Looking ahead, a raft of US large cap earnings, including the likes of Boeing, Caterpillar, Thermo Fisher Scientific and Eli Lilly, will set the tone. So far this earnings season, analysts have described earnings as mostly better than expected, though noting that the bar was very low going in. However, Microsoft earnings tonight, the first of the trillion-dollar companies to report, could quickly shift this narrative. European sectors are mixed, with outperformance in energy (+0.6%), materials (+1.1%) and healthcare (+0.3%). Underperformance in tech is being driven by disappointing earnings last night from Texas Instruments, which has seen the likes of STMicroelectronics (+1.3%) under pressure. In terms of other individual movers; Swedbank (-6.3%) sunk after earnings disappointed and the co. revealed multiple US authorities are investigating the money laundering allegations although this could take years to conclude. Elsewhere, decent earnings from ABB (+3.9), Neste (+6.9%), Norsk Hydro (+5.0%) and Peugeot (+2.5%) saw them move higher, while poor earnings from Fresnillo (-2.9%) and Carrefour (+2.3%) saw their respective shares under pressure.

Top European News

  • Heineken Falls as 3Q Beer Volumes Disappoint, Guidance Reduced
  • Draghi’s Bond-Market Heroics Face Risk of Lagarde Reality Check
  • Bio-On Executive Arrested in Italy’s ‘Plastic Bubbles’ Probe
  • Osram’s Top Labor Leader Urges German Watchdog to Block AMS Bid

In FX, risk sentiment has been sullied somewhat by the latest UK Parliament votes on Brexit that were positive on the one hand, but then countered by subsequent rejection of the motion to push through legislation at breakneck speed for the original and still official Halloween deadline. Hence, another step forward-step back scenario, albeit with more likelihood of an election run effectively along the lines of a 2nd EU referendum, which in turn equates to greater uncertainty. The upshot, so called safe-havens, including Gold, are back in favour, with the DXY consolidating around 97.500 and supported technically after closing above a key chart level in the form of the 200 DMA (97.410).

  • JPY/CHF – The Yen and Franc are both benefiting from the aforementioned meek or selective risk appetite, with Usd/Jpy back below 108.50 and capped by reported CTA offers overnight, while Usd/Chf is holding just shy of 0.9900 and Eur/Chf straddles 1.1000 within very tight confines. Reports that the BoJ may downgrade growth and inflation forecasts next week are hardly surprising, but add to the general global economic slowdown vibe.
  • AUD/NZD/GBP – Among the major underperformers on a combination of bearish factors, as the Aussie retreats a bit further vs its US counterpart and remains heavy in cross terms against the Kiwi, with Aud/Usd under 0.6850 and Aud/Nzd unable to regain a foothold above 1.0700 even though Nzd/Usd has lost momentum on the 0.6400 handle. Note, little reaction to NZ trade data, but comments from Australia’s Treasury Secretary Kennedy kicking back against calls for more fiscal stimulus may also be weighing on the Aud. Elsewhere, Sterling is still fixated on Brexit developments for obvious reasons, with Cable retesting recent lows circa 1.2840 and Eur/Gbp back up around 0.8650 awaiting PM Johnson’s next move in response to the EU extension decision (expected as soon as tonight) and any further developments along the line of a snap poll, vote of no confidence in the Government or even a 2nd attempt to get the Programme Motion through the HoC.
  • CAD/EUR/SEK/NOK – All rather rangy and bereft of independent inspiration/direction, as the Loonie looks toward Canadian wholesale trade following mixed inputs on Tuesday via retail sales, the BoC’s BOS and election results handing victory to Trudeau again, but with less power. Usd/Cad continues to pivot 1.3100, while Eur/Usd sits just above 1.1100 and decent option expiry interest at the strike (1.1 bn) ahead of Thursday’s ECB policy meeting that could well be more validatory rather the revelatory given the extent of the stimulus delivered in September and the fact that President Draghi bids farewell following his eventful term at the helm. Similarly, the Scandi Crowns are largely going through the motions awaiting tomorrow’s Riksbank and Norges Bank convenes, though with potentially more to win or lose depending on guidance. Eur/Sek is meandering from 10.7565 to 10.7190 and Eur/Nok flitting either side of 10.2000 against the backdrop of soft crude prices.
  • EM – Contrasting fortunes for the likes of the Lira and Rand after lock-step trade of late, as Usd/Try revisits sub-5.8000 territory on the back of Turkey’s decision to hold fire in Syria despite the elapse of 120 hours inaction arranged with the US, and perhaps acknowledging an improvement in consumer sentiment rather than the consensus for more CBRT easing on Thursday. However, Usd/Zar has rebounded towards 14.6950+ highs after a knee-jerk dip in wake of softer than expected SA CPI that undermines the SARB’s on hold stance, and as investors remain cautious ahead of the end October budget that will outline aid for Eskom.

In commodities, WTI and Brent prices have been subdued for much of the morning as sentiment remains dampened following yesterday’s Brexit votes and ahead of a number of notable US earnings today. Yesterday’s APIs printed a larger than expected build at 4.45mln vs. Exp. 2.2mln, adding to the pull back in both WTI and Brent yesterday. Currently, Crude prices trade with losses just shy of USD 1/bbl, although they did catch a small bid earlier in the session in-line with equity futures broadly; however, comments from Russian Energy Minister Novak that he has no information regarding discussions on deeper oil cuts at the December OPEC+ meeting halted the mild upside. The comments from Novak are in contrast to the recent source reports noting that OPEC were looking into deeper cuts due to weaker demand outlook. Elsewhere, the Turkey situation has, on the face of it, stabilised somewhat with Turkey noting there is no need to restart the Syria offensive after the ceasefire expires. Although, reports earlier in the session noted that Russian and Turkey are in discussions regarding additional S-400 deliveries, which may prompt a US backlash given their objection to the initial purchases. In terms of metals newsflow, gold is firmer on the session and currently trades toward the day’s high although this is still circa. USD 5.0/oz below the USD 1500/oz mark. Elsewhere, copper prices are just above the USD 2.60/lb on the day thus far as sentiment keeps prices subdued; in specific newsflow, Antofagasta noted Q3 copper production of 197k tonnes, -14.5% YY.

US Event Calendar

  • Oct. 23-Oct. 25: Monthly Budget Statement, est. $83.0b, prior $119.1b
  • 7am: MBA Mortgage Applications, prior 0.5%
  • 9am: FHFA House Price Index MoM, est. 0.3%, prior 0.4%

DB’s Jim Reid concludes the overnight wrap

I got home last night to everyone in the house wearing a new delivery of Xmas jumpers. You can’t imagine how excited 2 year old boys were with jumpers that lit up and flashed. It’s going to hard to keep them under wraps again for the next couple of months. Their bed time was delayed by the big Brexit votes that captivated the nation last night. The highlight for me was the football style analysis of the House of Commons for signs as to who voted for what and how happy each person looked to try to assess which way the votes had gone. There was even a giant magnifying glass on the screen scanning the chamber for emotions.

If any of that was meant to bring clarity it sadly didn’t and what last night told me is that the batteries on the lights of the family Xmas jumpers will likely run out now before we resolve Brexit. There is only a narrow way that Brexit now gets resolved soon after the already twice revised October 31st deadline and that is if the EU grants only a brief extension and Mr Johnson decides to resurrect the bill over the next week – albeit with a longer timetable of scrutiny to appease MPs who defeated the government last night on the crucial programme motion (essentially the fast tracked timetable).

Indeed MPs voted by 322-308 to reject it. Discontent had arisen as MPs were unhappy that the government wanted the House of Commons to have just 3 days to examine the bill. Some of this was genuine, but with most of those voting against it from camps that wouldn’t have voted for the bill even if they had a much longer period to decide. After this defeat the government decided to pause the bill and move to other business in Parliament over the next few days while they await the response from the EU. The suspicion is that if the EU hold to the request of the Benn Act of a delay to January 31st 2020 then the Government would prefer elections to fighting on. As discussed above if the EU grant a short extension then maybe the Government try again but the EU are unlikely to want to get too political in their decision making. The European Council President Tusk tweeted that he would recommend that leaders grant the full extension. On the other hand, overnight reports suggested that the French government, perhaps the most hawkish, is against a longer extension. The most likely outcome is probably still that they all follow Mr Tusk’s recommendations, so Mr. Johnson will likely again try to find the path to an election.

However, there were positives for the Government from yesterday’s action. First, MPs had actually voted in favour of a Brexit bill progressing for the first time in numerous attempts over the last several months. The bill passed at the second reading by 329-299. That’s a relatively strong majority of 30 votes, especially when you consider that the last Brexit vote resulted in a defeat by 57 votes and the Government technically has a majority of -44!

If you think the government are acting very strangely by not trying to pursue this win and cracking on, albeit with a short delay past October 31st, I’d imagine they have had to weigh up how much it would be amended and whether the better political move might be to try fight an election ASAP on the fact that Parliament thwarted them again. A gamble but a calculated one. It’s still not clear that opposition parties will allow an election but it is increasingly difficult for them to not sanction it if a no-deal Brexit is off the table until the end of January. So over to the EU.

The pound weakened -0.49% to 1.290 after hitting $1.30 again immediately after the first vote was won and then slumping a percent after the second vote loss. Given that any election would still be most likely fought around a deal (the Tory’s), a second referendum, remaining or a softer Brexit then the pound’s set back should be manageable. There is still upside but it may be take longer now to come through. In Asia Sterling has traded as low as $1.284 but is now around $1.286 as we type.

Over to markets, where US equities retraced earlier gains to end lower in tandem with the more negative Brexit news. The S&P 500 ended -0.35%, while the DOW fell -0.15%. That partially reflects some reversion after the latter underperformed in each of the last three sessions due to Boeing news. In terms of earnings, Biogen saw the biggest rise in the index, up +26.1%, as they said they would ask regulators to approve experimental Alzheimer’s therapy, following new analysis from a trial showed there was a statistically significant benefit of the drug to those with the highest doses. Procter & Gamble also advanced, up +2.60% after the company raised the upper end of its organic revenue growth outlook, and saw organic revenue growth beat estimates to rise by +7% in the first fiscal quarter. However, McDonald’s was down -5.02% after the company saw US sales growth miss estimates, in spite of its global sales growth at +5.9% (vs. +5.7% expected). Texas instruments also issued forecast revenue for the fourth quarter with the guidance missing the lowest analyst estimate. Shares traded as much as c. -10% in after hours trading.

Energy shares (+1.31%) led gains for the second consecutive session, boosted by higher oil prices (+1.59%) after OPEC sources suggested that they are considering a deeper cut to production for their December meeting. In Europe, equities saw very small gains with the STOXX 600 up +0.09% eking out fresh 17-month high, while the DAX (+0.05%), CAC 40 (+0.17%) and the FTSE 100 (+0.71%) made further gains.

In fixed income, 10yr Treasuries snapped a run of 3 successive declines to end the session -3.0bps, while the 2s10s curve flattened by -1.1bps. Sovereign bonds advanced across Europe as well, with 10yr bunds (-2.6bps), OATs (-2.3bps) and gilts (-3.9bps) all up, while in the periphery Greek 10yr yields fell -3.6bps to a record low and the spread of Italian BTPs over 10yr bunds fell by -3.5bps to 129bps, its lowest level since May 2018.

Overnight Bloomberg is reporting that Chinese buyers are back in the market for US soybeans after a new round of tariff waivers. Earlier, the White House economic adviser Larry Kudlow said of the trade negotiations that “what the President is calling phase one is moving ahead very nicely” while adding that if the initial deal works well “there will be opportunities” for some tariffs to get pulled back before year end but “It’s the president’s decision.” Elsewhere, US Vice President will be speaking on China at 11am (Washington time) on Thursday with the topic likely to be the future of the relationship between the United States and China. So one to watch, especially as the speeches postponed earlier this year were expected to be hawkish.

Asian markets are trading lower this morning with the Nikkei (-0.04% ), Hang Seng (-0.94%), Shanghai Comp (-0.31%) and Kospi (-0.45% ) all down. Elsewhere futures on the S&P 500 are down -0.20%.

In other overnight news, the FT reported that the Chinese government is drafting a plan to replace Hong Kong’s Carrie Lam with an “interim” chief executive. The report further added that Lam’s successor would be installed by March, covering the remainder of her term should Chinese President Xi Jinping decide to carry out the plan.

In terms of impeachment proceedings at the US Congress, Bloomberg reported overnight that William Taylor, a career bureaucrat who took charge of the US embassy in Ukraine in June, provided House investigators yesterday a meticulously detailed 15-page statement, chronicling an “irregular policy channel” with Kyiv, in which Trump associates circumvented traditional diplomatic paths to pressure the country’s new president to investigate White House political rivals. The report further added that the US envoy testified that a senior diplomat told him in early September that President Donald Trump made U.S. security aid to Ukraine entirely dependent on a public promise to investigate former Vice President Joe Biden and the 2016 election.

Back to yesterday and US Treasury Secretary Mnuchin said at a House of Representatives hearing that he told Facebook their Libra launch plans were premature, sending the company’s share price down -3.91%. Mnuchin said that there were concerns that it could be used to get round anti-money laundering rules. Facebook’s CEO and Chairman Mark Zuckerberg will be testifying in front of the House Financial Services Committee today, in a hearing entitled “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors”. It’s expected that Zuckerberg will be questioned on the company’s cryptocurrency plans.

In terms of yesterday’s data releases, existing home sales in the US fell by -2.2% in September (vs. -0.7% expected) to 5.38m in September, with the Midwest leading the declines, down -3.1% mom. However, the Richmond Fed’s manufacturing survey rose to +8 (vs. -7 expected), the highest reading in 6 months and the sharpest one-month increase since 2016. Meanwhile the Canadian dollar weakened after disappointing retail sales data from Canada showed a fall of -0.1% in August (vs. +0.4% expected), before recovering after the Bank of Canada’s business outlook survey showed a “slight improvement in overall business sentiment”, with the Bank’s business outlook survey indicator rising to +0.4 (vs. -0.1 previously).

Meanwhile from Europe, in what was a mild positive, the ECB’s Q3 bank lending survey said that credit standards in Q3 “eased slightly … for loans to enterprises and loans to households for house purchase, also supported by more favourable funding conditions.” However they “continued to tighten” for consumer credit. Things were less positive in the UK however, with public finance data showing the government borrowed £9.4bn (vs. £9.7bn expected) in September, a £0.6bn increase on the same month a year ago, and the first time that year-on-year borrowing had increased in September for 5 years. Meanwhile the CBI survey of manufacturing orders fell to -37 (vs. -30 expected) in October, the lowest reading since March 2010, and the business optimism reading fell to -44 (vs. -30 expected), the lowest since July 2016.

Looking at the day ahead, there are a number of big earnings releases to watch out for, including Microsoft, Boeing, PayPal, Caterpillar and Ford. We’ll also see Facebook’s Mark Zuckerberg testify before the House Financial Services Committee. In terms of data, there’ll be the advance reading of October’s consumer confidence for the Euro Area, along with French business and manufacturing confidence for October. From the US, there’ll be weekly MBA mortgage applications along with August’s FHFA house price index, while Canada’s wholesale trade sales for August will also be released. Finally on the politics, there’s the aforementioned debate on the Brexit deal legislation continuing in the UK, while an election will be taking place in Botswana.

 

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 12.76 POINTS OR 0.43%  //Hang Sang CLOSED DOWN 219.47 POINTS OR 0.82%   /The Nikkei closed UP 76.48 POINTS OR 0.34%//Australia’s all ordinaires CLOSED DOWN .01%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0738 /Oil UP TO 53.96 dollars per barrel for WTI and 59.23 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0738 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0754 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

HONG KONG

death threats against Hong Kong protesters have been noted and they are certainly taking a toll on young activists…  suicide numbers  rise!!

(zerohedge)

Death Threats And Suicide: Hong Kong Protests Have Taken Toll On Young Activists

Pro-democracy student activists in Hong Kong have disclosed multiple death threats against them and their families after supporting ongoing protests against the government, SCMP reports.

 

(From left) Leung Yiu-ting of Education University; Pang Ka-ho, of the University of Hong Kong; and Keith Fong and Leung Siu-yuk, from Baptist University, say they have been subject to death threats over their student unions’ support for protesters. Photo: K.Y. Cheng

At least three threats were directed at student union representatives, it was disclosed at a Friday press conference. The culprits vowed to kill one victim’s family members, while others were doxxed after posters displaying their private data were posted in public.

“If you do not understand this, I can look for [the names of her parents and sister] to have a chat,” one Facebook user named Luck Lee said in a threat to student Leung Siu-yuk of Baptist University.

Leung Siu-yuk, external vice-president of Baptist University’s student union, fought back tears when she talked about how she and her family had been targeted.

Leung said she had received a sinister message from a stranger on Facebook on Wednesday asking her to think twice before supporting further protests, after unions had offered legal and financial assistance to those requiring it. –SCMP

Another student, Leung Yiu-ting – acting president of Education University’s student union, said he was doxxed as well.

“This morning, some strangers came to my home and asked my family if I was living there,” he said. “Even something happens, we will not succumb to threats and white terror.”

Meanwhile, Pang Ka-ho, acting chairman of the current affairs committee at the University of Hong Kong’s student union council, said he has been harassed over the Telegram messaging app over the past few days with threats that his family would be killed if he continued to make trouble. He says his family received a threatening call on Thursday night.

“Our family members have been under huge pressure because of the threats,” said Pang. “We hope police can investigate these issues in a fair and just way.”

Cops doxxed too

It’s not just students whose personal details are being made public. Protesters have been doxxing police officers as well. In mid-June, Secretary for Security John Lee Ka-chiu disclosed that over 400 officers and 100 of their family members had their information exposed.

According to SCMP, the Office of the Privacy Commissioner for Personal Data said it had received 557 complaints as of Wednesday. Of those, 402 cases (72%) involved police officers.

Suicides

After nearly five months of protest against their government, a wave of young activists are willing to die – and committing suicide according to The Guardian.

Niko Cheng was ready to die in August. The 22-year-old nursing student and her fellow protesters known as “fighters” for their willingness to confront police in Hong Kong, had decided to make their last stand on 31 August.

Exhausted and weary after months of protesting, she had floated the idea of throwing herself at police and forcing them to fire on her. The other protesters talked her out of it. Still, she expected to be arrested or badly hurt.

But on the day of the march, Cheng was hit by a water cannon and forced to leave early. In the weeks afterward, instead of relief, she only felt a sense of malaise. When she lost her wallet, including her ID card, her first thought was that it didn’t matter. –The Guardian

“I had zero motivation to do anything. I just thought it was all useless, meaningless,” she said. “That’s when I realised I need to get my normal life back.”

 

A pro-democracy supporter lights a candle at the Lennon Wall in Admiralty. After nine suicides linked to the protests, concern is growing about the mental health of the population. Photograph: Kevin On Man Lee/Penta Press/REX/Shutterstock

Public health experts now say depression, anxiety and acute stress are weighing on the Hong Kong population amid the political unrest. There have been at least 9 cases of suicide linked to the demonstrations, according to the report, while social workers fear more young people will take their lives amid increasingly violent confrontations.

Public health advocates, NGOs and counsellors say the number of calls and threats of suicide they have received has increased, especially in recent weeks.

It is not just the protesters who are at risk. A study by Hong Kong University released in July found nearly one in 10 were suffering from probable depressionas well as an increase in suicidal thoughts, from 1.1% at the start of this decade.

Gabriel Leung, head of the study, said that there was little difference in prevalence among those who did or did not attend protests, suggesting a “community-wide spillover effect.” Leung called the situation a “mental health epidemic”.

The whole of society is suffering,” said Clarence Tsang, executive director of Samaritan Befrienders Hong Kong, an NGO focusing on suicide prevention. “This is generating a lot of pressure on the whole of society. At this big scale, it is affecting almost the whole population,” he said. –The Guardian

Read the rest of the report here.

END
CHINA
Wow!! Poultry prices are escalating big time in China due to the Ebola pig virus
(zerohedge)

China Bond Markets Shrug Off Soaring Hyper-Pig-flation (For Now)

As we detailed previously, African swine fever (‘pig-Ebola’), which has been raging across China, and Asia, has decimated pork supplies. 

Since we first reported on China’s ‘pig Ebola’ epidemicChina pork prices have doubled for 1.4 billion people.

As @AgriTrends notes, “hyper-inflation is here…”

 

And as we detailed here, that has filtered through to soaring consumer price inflation overall – at its highest since 2013…

Source: Bloomberg

But, with Chinese bond yields shrugging off the inflationary push

Source: Bloomberg

Real China bond yields are set to go negative for the first time in seven years…

Source: Bloomberg

Bloomberg notes that while extraordinarily low yields – adjusting for inflation or not – have become the norm across the developed world, it’s rare in emerging markets.

By contrast with China, South Korea’s 10-year bonds offer 2% real yields. Bondholders in India are getting more than 2.5% after accounting for inflation running at almost 4%.

“The bond market understands that this is purely supply, it’s not a general wage inflation or inflation in the economy,” said Edmund Ng, chief investment officer at Eastfort Asset Management, who previously worked at the Hong Kong Monetary Authority.

“The African swine fever will not last forever.”

Indeed, National Bureau of Statistics spokesman Mao Shengyong said Friday that pork prices should gradually return to a “normal range,” and played down concerns about inflation.

But, not everyone is buying that propaganda.

Pork prices are likely to remain elevated for some time, said Betty Wang, a senior economist at ANZ. She said farmers had culled so many pigs that it would take a while for supplies to build up again.

“If people feel that food inflation is going up, it may spur policy actions,” she added, although it wasn’t clear just how Beijing can find a quick and easy substitute to domestic farms.

The apparent trade truce between China and the US could be what China needs to stabilize its pork supplies.

“The market is more concerned about other macro factors,” said Li Haitao, deputy director of fund investment at Hexa AMC, most notably, the collapse in its economic growth…

Source: Bloomberg

END
China injected another whopping liquidity as its GDP is dropping into the “5 handle”  (in real terms probably a growth of less than one percent.) They did not drop their libor rate..
(zerohedge)

China Just Injected The Most Liquidity Since January… And It’s Not Enough

Just days after China’s GDP unexpectedly dropped to a sub-consensus 6.0%, the lowest in three decades (with Beijing now set to reveal a 5-handle GDP in the coming months), China watchers were convinced that this week would start with Beijing again lowering its “Libor rate“, i.e., the previously discussed Loan Prime Rate, especially with the Fed expected to cut rates once again next week. However, that did not happen as China kept its one-year prime rate for new corporate loans unchanged in October, at 4.2%, and above the 4.15% consensus estimate. The five-year benchmark was also kept unchanged at 4.85%.

As we reported previously, the Loan Prime Rate, also called China’s “Libor”, is a revamped market indicator of the price that lenders charge clients for new loans, and is linked to the rate at which the central bank will lend financial institutions cash for a year. The rate, which is updated once a month, is made up of submissions from a panel of 18 banks, although ultimately it is Beijing that sets the final rate.

Analysts were quick to step in and “explain” away the unexpected move: Commerzbank’s Zhou Hao said that a static one-year rate shows China “may be trying to balance the shrinking margins of banks with support to the real economy,” adding that “the PBOC remains restrained on policy easing.”

 

The market, however, was less sanguine, as the PBOC’s lack of easing was promptly taken as an ill-omen: China’s government bonds dropped while money-market rates climbed, amid bets that the policy makers are not in a rush to loosen monetary policy (why? perhaps China’s gargantuan debt load and rapidly devaluing currency have something to do with it). On Monday, the yield on 10-year sovereign notes rose three basis points to 3.22%, the highest since July 1, while the costs on 12-month interest-rate swaps advanced to the highest level since late May.

While the Chinese economy has been under pressure amid a prolonged trade dispute with the US, many have expected that the central bank would match the Fed’s easing and lower corporate borrowing costs and further cut bank reserve ratios. However, so far the PBOC hasn’t embarked on an aggressive stimulus program as some market watchers had hoped.

“It’s not in line with market expectations,” said ANZ Bank China economist Zhaopeng Xing. “The PBOC intends to reserve room for future headwinds.”

Well, if that’s the case, then the headwinds hit just one day later, when the PBOC used open market operations to inject the largest amount of cash into the banking system since May, flooding the local financial system with a net 250 billion in reverse repos (for those confused, a reverse repo in China is the equivalent of a repo in the US, and vice versa). One day later, on Wednesday, the PBOC injected another 200 billion in net liquidity: the biggest two-day liquidity injection since January.

Yet despite the significant 2-day liquidity injection on part with the Fed’s own “Not QE” which is injecting no less than $60BN in new reserves into the economy every month, signs in China’s money markets pointed to expectations of continued liquidity tightness in the financial system. The cost of one-year interest rate swaps, a measure of traders’ expectations of liquidity tightness, climbed 2 basis points to 2.80%, the highest since late May, while the overnight repurchase rate climbed 11 bps to its highest level since July.

So why was this “strong” indication by Beijing that it would match the Fed’s own liquidity injections met with a collective shrug by the market? Because, similar to America’s repocalypse in September,  it came just before an Oct. 24 deadline for companies to pay tax, which traditionally increases the demand for cash and tightens liquidity.

“It’s said to be hard to borrow money in the market this morning mainly due to the coming tax submission which was postponed to this Thursday”, said Zhaopeng Xing, markets economist at ANZ Bank China. Xing said he expected tightness in money market to continue this week.

In other words, despite hopes (and in some cases, prayers) that the PBOC will finally ease aggressively to stimulate Chinese, and global growth and capital markets, China’s credit impulse is set for another sharp drop…

… now that it has become very clear that at least until the 2020 US election, China refuses to aggressively ease, boosting the global and US economy in the process, even if it means its own economy is set to suffer more. The good news: at least Xi Jinping can blame ‘trade war’ for the upcoming lowest Chinese GDP print on record, even if by now everyone knows that trade war is China’s least worry.

END

CHINA/HONG KONG

LOOKS LIKE BEIJING HAS HAD ENOUGH..THEY ARE PLANNING THE OUSTER OF CARRIE lAM

(ZEROHEDGE)

4/EUROPEAN AFFAIRS

EU Reportedly Pushes Decision On Brexit Delay Until Friday

Amid rumors that UK PM Boris Johnson might capitulate and agree to delay Brexit Day until the end of January, reports have surfaced claiming that the EU won’t release its decision on postponement until Friday.

  • EU DECISION ON BREXIT DELAY WILL PROBABLY COME FRIDAY: OFFICIALS

Sources from within No. 10 Downing Street have reportedly been talking with reporters all day, claiming that if there is an extension, the Johnson government will opt to push for an election, and that the conservatives will campaign on their plan.

Earlier, Ireland PM Leo Varadkar reportedly pushed his European counterparts to back the delay.

Thanks to Johnson’s last-minute maneuvering, Britain appears closer than ever to wrapping up a 3 1/2 year Brexit conundrum, with Johnson having agreed a deal with the EU last week and secured an early signal of support for the deal from the EU Parliament.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Not good!! Russia claims that 500 terrorists (Isis) have escaped North Syria and these guys will play havoc as they have been in captivity for quite a while.  They have nothing else to do except terrorize the west.

(zerohedge)

Russia Says 500 Terrorists Have Escaped N.Syria; US Envoy Downplays It At “Very Few”

According to Russian official statements which followed marathon talks between Russian President Vladimir Putin and his Turkish counterpart Tayyip Erdogan on Tuesday, some 500 ISIS terrorists and dangerous jihadists have escaped prisons in northern Syria since Turkey commenced its military incursion on Oct. 9.

Russian Defense Minister Sergei Shoigu said on Tuesday that “Moscow estimated that up to 500 people, including Islamist fighters, had escaped from captivity in northern Syria after their guards left their posts.” Shoigu added that measures were being taken for Russian and Syrian forces to capture them.

Washington also confirmed Tuesday that ISIS terrorists have escaped; however, a top State Department official cited only “dozens” freed.

Perhaps shielding the White House from further criticism over the matter, special representative for Syria, James Jeffrey, testified before the Senate when asked how many “hardened” Islamic State fighters had gone free: “We don’t have high numbers but it was very few so far… for the moment very few.”

“I would say dozens at this point,” Jeffrey told the hearing. The top White House appointed envoy added that there’s no plan to recapture them, and additionally that 10,000 still remain under Kurdish supervision.

Within days of the start of Turkey’s operation against the Kurdish-led Syrian Democratic Forces, SDF leaders announced they couldn’t possibly provide adequate security to guard ISIS prisoners while simultaneously fighting off the Turks and their invading proxies.

Aaron Rupar

@atrupar

Here’s James Franklin Jeffrey, US envoy to Syria, telling Chris Coons that “dozens” of ISIS fighters have escaped detention in Syria after Trump abandoned the Kurds. Jeffrey added that there’s no plan to recapture them, and 10,000 remain under Kurdish supervision.

Embedded video

Multiple reports have since detailed large-scale prison breaks, which suggests the Russian figure of 500 escaped is more accurate over and against the US designating “dozens”.

Meanwhile, just after agreeing to a deal with Russia on Tuesday, Erdogan claimed the US “has not completely fulfilled its promises in Syria,” which will require Turkey to “take the necessary steps”. He added: “If we make compromises we would open the way for the terrorist organisation,” according to NTV.

Turkish media is hailing the Turkey-Russia deal as “a better-than-expected outcome” for Erdogan:

According to the agreement, the Kurdish People’s Protection Units (YPG) militia will withdraw to beyond 30 kilometres (19 miles) from the Turkish border, and leave the towns of Tel Rifaat and Manbij.

Russia and Turkey will hold joint patrols in a 10-kilometre-deep area to the east and west of the ground covered by Turkey’s Operation Peace Spring.

Russia is expected to send additional troop reinforcements to the region as a result of the deal.

Defense Minister Shoigu said, “As for additional troops, we naturally believe… that additional equipment will be needed for patrolling since the border is rather extensive and the patrolling should be serious and substantial so that we could avert any serious incidents.”

US media pundits as well as hawkish Congressional leaders who oppose the US draw down in Syria have pushed the dubious claim that Assad and Russia coming back into eventual control of of northeast Syria will only result in a resurgent Islamic State.

END
TURKEY/SYRIA/USA
Trump lifts sanctions on Turkey as the ceasefire holds and the Kurdish forces are now in the safe zone.  Supposedly the iSIS prisoners are now behind bars
(zerohedge)

Lira Surges As Trump Lifts Turkey Sanctions: “Now, We’re Getting Out… Of This Bloodstained Sand”

Update (1145ET): President Donald Trump declared a “big success” in Syria, saying that he is lifting recently imposed sanctions against Turkey after the country complied with a cease-fire agreement with Kurdish forces in Syria.

“The sanctions will be lifted unless something happens that we’re not happy with,” Trump said Wednesday morning in a statement from the White House.

Trump said the penalties would be reimposed if Turkey resumes attacks on the Kurds.

Donald J. Trump

@realDonaldTrump

Big success on the Turkey/Syria Border. Safe Zone created! Ceasefire has held and combat missions have ended. Kurds are safe and have worked very nicely with us. Captured ISIS prisoners secured. I will be making a statement at 11:00 A.M. from the White House. Thank you!

29.4K people are talking about this

The president also called a temporary ceasefire that had been announced last week “permanent,” adding that:

“now we’re getting out…let someone else fight over this long bloodstained sand.”

The Lira is spiking on the news…

*  *  *

As we detailed earlier, EU governments have been fiercely divided over how to react to Turkey’s military incursion into northern Syria which commenced on Oct. 9 amid a US draw down from the region. One senior European diplomat described the situation to Reuters as “complete chaos”.

However, a draft resolution has been prepared this week, seen by Reuters, reportedly with the backing of all political groups in EU parliament, which urges “appropriate and targeted economic measures against Turkey” — and is expected to be adopted Thursday.

 

Turkey-backed fighters in northeast Syria. Getty Image. 

The targeted measures includes the following per Reuters:

  • freezing of preferential treatment for Turkish agriculture exports to the EU.
  • urges the suspension of the EU customs union with Ankara, a measure that would hit the 200-billion-euro ($222.3 billion) annual trade between the 28 EU nations and Turkey.
  • and opens the possibility to reduce the nearly 250-million-euro yearly financing given to Ankara as part of its protracted process to become an EU member, an option backed by the center-right group.

One German center-right lawmaker Michael Gahler, who represents the largest political bloc in the EU assembly, said, “We demand that Turkey immediately withdraw from Syria.”

This latest push to slash economic preferential treatment for Turkey comes after a failed push led by Germany and France to impose an EU-wide arms embargo on Ankara, who were concerned Turkey would use European weaponry to conduct massacres and human rights violations against the Kurds.

It also comes after President Erdogan has repeatedly threatened to flood European countries with millions of Syrian refugees if he couldn’t gain international backing for his ‘safe zone’ plan.

While the EU has called for a UN-administered zone in northern Syria, its parliament could additionally block any new EU funding for Turkey’s resettlement of refugees, estimated at 3 million people.

6.Global Issues

Bellwether Caterpillar, my favourite stock to indicate global growth plunges after missing earnings and must importantly slashing guidance

(zerohedge)

Caterpillar Plunges, Drags Dow Lower, After Missing Earnings, Slashing Guidance

Once upon a time Caterpillar was considered the bellwether stock for the industrial sector. If that’s still the case, then the world is on the verge of a recession as moments ago CAT reported dismal Q3 earnings while slashing its profit outlook, blaming deteriorating global growth.

CAT reported than in Q3 it earned:

  • EPS of $2.66, far below the $2.87 expected, and down 8% from a year ago.
  • Revenue of $12.76BN, a huge miss of the $13.41BN expected, and down 6% from a year ago

Sales decreased across the three primary segments and in all regions except for Latin America. A key reason for the Q3 revenue disaster, in addition to China of course, was the slowdown in shale.

  • The company announced that oil and gas-related revenue was down 9% in the quarter. Caterpillar cited the drop in reciprocating engines, units that are used in fracking. That decline was only partially offset by increased sales of turbines.
  • Meanwhile, sales at the key construction industries segment fell 7% y/y. The decrease was mainly due to lower sales volume driven by the impact from changes in dealer inventories, and was partially offset by higher end-user demand for construction equipment, the company says. Here China was to blame: “Sales in Asia/Pacific were lower across most of the region primarily due to lower demand in China, including unfavorable changes in dealer inventories, amid continued competitive pressures.”
  • Sales in CAT’s mining equipment segment collapsed 12%, where CAT said that while commodity prices are generally supportive of reinvestment, mining customers are cautious due to economic uncertainty. Mining sales were also impacted by lower thermal coal prices, the company says.
  • Resource industries’ total sales were $2.31 billion in the third quarter of 2019, a decrease of $327 million. Many analysts have looked at the mining segment as a business that would be growing as some other sales would be slowing.

The EPS disaster took place even as the company repurchased $1.2 billion of Caterpillar common stock, shrinking the total diluted shares by 7% to 561.2MM from 599.4MM a year ago.

According to CAT, Q3 revenue of $12.758 billion decreased $752 million, or 6%, compared with $13.510 billion a year ago, with the decline due to lower sales volume “driven by the unfavorable impact from changes in dealer inventories”, which is another way of saying its customers are hunkering down and not buying heavy industrial machinery ahead of a recession. As CEO Jim Umpleby confirmed, “Our volumes declined as dealers reduced their inventories, and end-user demand, while positive, was lower than our expectations.”

Dealers decreased machine and engine inventories about $400 million during the third quarter of 2019, compared with an increase of about $800 million during the third quarter of 2018. Sales decreased across the three primary segments and in all regions except for Latin America, which was about flat.

One key reason for CAT’s dismal quarter – the slowdown in fracking, as oil and gas-related revenue was down 9% in the quarter. Caterpillar cited the drop in reciprocating engines, units that are used in fracking. That decline was only partially offset by increased sales of turbines.

But while a one quarter miss could quickly be forgiven by the algos, the unprecedented 8% drop in CAT stock in the premarket – the biggest drop since January – was due to the company’s unexpected collapse in guidance.

Specifically, Caterpillar lowered its FY EPS range to $10.90 to $11.40, which is now well below the low end of last quarter’s estimate of $12.06 to $13.06. The revised guidance now assumes modestly lower sales in 2019, or in other words a continuation of the dismal trend observed in Q3.

What was the reason for the industrial bellwether taking a machete to its guidance: in a word, ongoing trade war.

“In the fourth quarter, we now expect end-user demand to be flat and dealers to make further inventory reductions due to global economic uncertainty,” said Umpleby, who did try to cushion the blow somewhat by noting that “Caterpillar’s improved lead times, along with these dealer inventory reductions, will enable us to respond quickly to positive or negative developments in the global economy in 2020. We are expanding our offerings and investing in services, including digital capabilities, to drive long-term profitable growth, while continuing to achieve our Investor Day targets for improved financial performance.”

Also of note, CAT’s outlook does not include a mark-to-market gain or loss for remeasurement of pension and other
postemployment benefit plans, which will be excluded from adjusted profit per share in the fourth quarter of 2019
along with any other material discrete items.

That however did not help the stock, which plunged as much as 6% after the report, its biggest drop since the start of the year, and has since stabilized about 4% lower…

… in the process hitting the broader Dow Jones Industrial Average where it is one of the most heavily-weighted members, and as Bloomberg notes, “Caterpillar’s overall cautious commentary on global economic uncertainty may spark a broader sell-off in the industrial sector today, both in the U.S. and across the pond.”

END

7. OIL ISSUES

The real reason Turkey is invading Syria.  It needs Syria’s oi fields.  Turkey consumes 1 million barrels per day and Syria can provide 30% of that.

(Oil Price.com)

How Much Oil Is At Stake In Syria?

Though it’s as yet uncertain whether the Pentagon is actually going to execute the plan, Trump is mulling keeping a small US troop contingency in Syria in order to “secure the oil”.

The president said at a cabinet meeting Monday: “I always said if you’re going in, keep the oil,” the WSJ reported. “We’ll work something out with the Kurds so that they have some money, so that they have some cash flow. Maybe we’ll get one of our big oil companies to go in and do it properly.”

In response, former special presidential anti-ISIL envoy Brett McGurk, who served under both the Obama and Trump administrations, stated the obvious: “Oil, like it or not, is owned by the Syrian state,” he said Monday. “Maybe there are new lawyers, but it was just illegal for an American company to go and seize and exploit these assets.”

 

Oil well pumps in the Rmeilan oil field in Syria’s north-eastern Hasakah province, via Kurdistan24.

Obviously the US doesn’t “need” Syrian oil, but would utilize seized oil and gas fields as part of its continued campaign of economic strangulation against Damascus and Tehran.

Syria’s smashed war economy has suffered further over the fact that it has for years been cut off from its own domestic energy supplies — first by ISIS occupation of its key oil and gas fields east of the Euphrates, and then by US-backed Syrian Democratic Forces.

But the question remains: how much oil is actually at stake in Syria?

The below analysis is provided by “Ehsani” — a Middle East expert, Syrian-American banker and financial analyst who visits the region frequently and writes for the influential geopolitical analysis blog, Syria Comment

* * *

Total reserves are estimated at 2.5 Billion barrels and at least 75% of these reserves are in the fields surrounding Deir Al Zor.

Current revenue from oil sales goes to the [US-backed] SDF, currently estimated at $10 million a month. These revenues are expected to rise should U.S. help in modernizing current fields. SDF can then sell the oil to Damascus and/or Kurdistan in Iraq which will in turn sell to Turkey.

Turkey’s current oil consumption is about 1 million barrels a day. Syria’s reserves are 2.5 billion barrels and daily production can be quickly increased to approximately 300K barrels a day.

TheSDF can therefore look to supply at least one-fifth of Turkey’s needs via Iraq.

EHSANI2@EHSANI22

Assad: “Erdogan is a thief … he has robbed the factories, wheat and oil, and today he is robbing the land”

View image on TwitterView image on Twitter

Turkey will also look to obtain direct access to Syria’s Rumeilan oil field in the northeast should it complete its seizing of the North-East zone. Between them, Ankara and the SDF (with protection of U.S military) can soon control up to 90 percent of Syria’s 2.5 billion oil reserves.

Syria’s 2.5 billion barrels in oil reserves are rather “negligible” compared to say Saudi Arabia, with oil reserves at around 268 billion barrels (over 100 times that of Syria). Note that the SDF is currently selling Syria’s oil at around $30 per barrel.

END

Syria/USA/Kurds

Now the USA sees it they will secure the oil fields with a small number of troops. With the Kurds joining forces with Assad, and no doubt the Kurds would have to give up some of this oil..what will the USA do surrounded by nothing but hostile forces?

(zerohedge)

It’s Official: Trump Says US Keeping Syria’s Oil, Secured By “Small Number” Of Troops

Now we’re getting out… let someone else fight over this long bloodstained sand,” President Trump said during a major, unannounced speech from the White House declaring America’s “big success” in Syria.

As we predicted, he confirmed the US is “getting out” but it’s not quite the reality, because he also confirmed a “small number” of American troops will stay in Syria to protect oil in the region.

“We have secured the oil and, therefore, a small number of U.S. Troops will remain in the area where they have the oil,” Trump said. “And we’re going to be protecting it, and we’ll be deciding what we’re going to do with it in the future.”

But of course, this oil belongs to the Syrian state and its people, as even former top White House Syria and Iraq envoy Brett McGurk, stated bluntly this week: “Oil, like it or not, is owned by the Syrian state.”

Trump also acknowledged during the Wednesday televised address, in a rare reference to past White House policy, that Obama embarked on a failed “regime change” bid in Syria, which morphed into a nightmarish war taking 500,000 lives.

Currently, even amid a US troop pullback in the north, American special forces and Kurdish-led SDF forces remain in control of the key oil and gas infrastructure in the Deir Ezzor region, east of the Euphrates. The major oil and gas fields in the eastern region such as al-Omar, Conoco field, and Rumeilan oil field, remain Syria’s only significant domestic energy access.

Aaron Rupar

@atrupar

TRUMP on Syria’s oil: “We’ve secured the oil and, therefore, a small number of US Troops will remain in the area. Where they have the oil. And we’re going to be protecting it, and we’ll be deciding what we’re going to do with it in the future.”

Embedded video

Perhaps this policy of “we’re keeping the oil” will at least dispel among the public and media that Washington’s actions in the Middle East are somehow ‘noble’.

Clearly at the end of the day it appears more simply as just naked US imperialism, bent on economic strangulation of the Syrian people in order to bend Damascus (and its ally Iran) to America’s will.

But there’s always a ‘fig leaf’ justification concocted. In this case it was expressed by the Secretary of Defense yesterday: “Esper said the main goal of leaving some troops around the oil fields would be to make sure the Islamic State doesn’t gain control of the revenue they generate,” the Associated Press reported.

Though Trump has now expressed his will to “protect” the oil for US interests, one key question remains: how on a practical military level will this be done? 

The Syrian Kurds have already done a deal with Assad, which will likely lead to further forced concessions (the oil and gas fields being primary, which clearly the White House is grasping for as last minute leverage).

So ultimately Trump’s plan could see a tiny contingent of US special forces stationed in the heart of a sovereign state, specifically in oil fields, with little practical logistical support and access, and surrounded by hostile powers.

end

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 1.1116 DOWN .0013 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 /MOSTLY RED EXCEPT LONDON

 

 

USA/JAPAN YEN 108.44 DOWN 0.047 (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 1.2861   DOWN   0.0021  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3098 UP .0004 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 13 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1116 Last night Shanghai COMPOSITE CLOSED DOWN 12.76 POINTS OR 0.43% 

 

//Hang Sang CLOSED DOWN 219.47 POINTS OR 0.82%

/AUSTRALIA CLOSED DOWN 0,01%// EUROPEAN BOURSES MOSTLY RED

 

Trading from Europe and Asia

EUROPEAN BOURSES MOSTLY RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 219.47 POINTS OR 0.82%

 

 

/SHANGHAI CLOSED DOWN 12.76 POINTS OR 0.43%

 

Australia BOURSE CLOSED DOWN. 01% 

 

 

Nikkei (Japan) CLOSED UP 76.48  POINTS OR 0.34%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1492.35

silver:$17.53-

Early WEDNESDAY morning USA 10 year bond yield: 1.73% !!! DOWN 3 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 2.22 DOWN 3  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 97.59 UP 7 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: 0.20% DOWN 2 in basis point(s) yield from YESTERDAY/

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

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

ITALIAN 10 YR BOND YIELD:.0.94 UP 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 69 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.32% 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 1.1119  DOWN     .0009 or 9 basis points

USA/Japan: 108.62 UP .136 OR YEN DOWN 14  basis points/

Great Britain/USA 1.2888 UP .0004 POUND UP 4  BASIS POINTS)

Canadian dollar UP 9 basis points to 1.3085

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0653    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0640  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.733 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.13%

 

Your closing 10 yr US bond yield DOWN 2   IN basis points from TUESDAY at 1.73 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.23 DOWN 2 in basis points on the day

Your closing USA dollar index, 97.56 UP 4  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 48.25  0.67%

German Dax :  CLOSED UP 43.50 POINTS OR .34%

 

Paris Cac CLOSED DOWN 4.25 POINTS 0.08%

Spain IBEX CLOSED UP 4.80 POINTS or 0.05%

Italian MIB: CLOSED DOWN 136.01 POINTS OR 0.60%

 

 

 

 

 

WTI Oil price; 55.26 12:00  PM  EST

Brent Oil: 60.25 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    63.88  THE CROSS HIGHER BY 0.15 RUBLES/DOLLAR (RUBLE LOWER BY 15 BASIS PTS)

 

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

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  55.79//

 

 

BRENT :  61.01

USA 10 YR BOND YIELD: … 1.76..FLAT…

 

 

 

USA 30 YR BOND YIELD: 2.25..FLAT..

 

 

 

 

 

EURO/USA 1.1132 ( UP 4   BASIS POINTS)

USA/JAPANESE YEN:108.68 UP .196 (YEN DOWN 20 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.46 DOWN 7 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2913 UP 32  POINTS

 

the Turkish lira close: 5.7295

 

 

the Russian rouble 63.93   DOWN 0.20 Roubles against the uSA dollar.( DOWN 20 BASIS POINTS)

Canadian dollar:  1.3077 UP 18 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0653  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 7.0609 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.39%

 

The Dow closed UP 14.21 POINTS OR 0.25%

 

NASDAQ closed UP 45.85 POINTS OR 0.17%

 


VOLATILITY INDEX:  14.21 CLOSED DOWN .25

LIBOR 3 MONTH DURATION: 1.936%//libor dropping like a stone

 

USA trading today in Graph Form

Crypto Crashes, Black-Gold Bid, & Lira Lifted As Yields, Stocks Shrug

Once again, bonds were dumped and every effort was made to pump the S&P back above 3,000 (again)…

 

Chinese stocks were weak overnight…

 

Source: Bloomberg

European stocks were mixed with Germany’s DAX leading and UK’s FTSE lagging on the week…

 

Source: Bloomberg

US equity markets were unable to make any progress today, losing early gains (but managed a small gain into the close as The Fed unveiled even bigger repo operations)…

 

US Futures markets were chaotic again overnight – panic-puked at the Japan open (mirroring the panic-bid the previous night)…

 

Boeing and Caterpillar initially whacked Dow futures but were miraculously bid (until the EU close after which stocks faded)…

 

Algos were once again focused on getting S&P back above 3,000…

 

Another day, another short-squeeze…

Source: Bloomberg

Momo was dumped once again…

 

Source: Bloomberg

Bank stocks continue to outperform but have decoupled from the yield curve…

Source: Bloomberg

Treasury yields ended the day practically unchanged, roundtripping from overnight bond buying to selling during the US day session…(NOTE – same pattern for 3 days)

Source: Bloomberg

30Y Yields returned to unchanged on the week…

Source: Bloomberg

The market is now almost entirely convinced that The Fed will cut rates next week… and The Fed never lets the market down at this level of certainty…

Source: Bloomberg

The dollar ended the day weaker after overnight gains were erased late-on…

Source: Bloomberg

Offshore Yuan surged to 2-week highs…

Source: Bloomberg

The Turkish Lira spiked after Trump lifted sanctions…

Source: Bloomberg

Cryptos were smacked three times in the last 24 hours…

Source: Bloomberg

Bitcoin broke below $8000…

Source: Bloomberg

Testing down to its 200-day moving-average…

Source: Bloomberg

Copper and Crude surged today as PMs largely flatlined…

Source: Bloomberg

And aside from the surprise crude inventory draw, WTI surged above $56 on the back of Dennis Gartman’s short positioning early on…

 

Gold tested up towards $1500 once again but failed to cross it…

 

Finally, the SMART money flow continues to diverge (weaker) than the market…

Source: Bloomberg

And then there’s this – Warren leaking lower as Hillary’s odds surge…

Source: Bloomberg

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

What caused the stock increase late in the day? It was the Fed dramatically increasing liquidity. In overnight a huge 60% increase from 75 billion up to 120 billion and then the term repo increasing from $35 billion up to $45 billion. So the Fed needs to provide 120 billion of liquidity per day…what are they trying to tell us?  Remember the words of Lee Adler..Oct 31…

(zerohedge)

Stocks Surge As Fed Panics – Dramatically Increases Liquidity Provision Through Brexit Deadline

Many wondered what the driver of the late-day panic-buying across the US equity market was today.

The answer is simple – The Fed… again.

In a statement issued at 1515ET, The New York Fed confirmed it would dramatically increase both its overnight and term liquidity provisions beginning tomorrow through November 14th.

 

That is a massive 60% increase in the overnight repo liquidity availability (from $75 billion to $120 billion) and a 28% surge in the term repo provision (from $35 billion to $45 billion).

As a reminder, overnight liquidity demands have remained high since initiated...

The decision to increase the liquidity provision could be based on the soaring demand for POMO…

Additionally, while there are no details, this time period crosses both month-end (and the normal liquidity issues associated with that) and the UK’s Brexit deadline – which could still very well mean dramatic dislocations and ‘clogs’ in the pipelines of critical liquidity around the world.

$120 billion of liquidity per day?! What is The Fed not telling us?

ii)Market data/USA

iii) Important USA Economic Stories

After huge payouts to its former owners, the new administration finds that it is running out of cash as they abandon plans to move its headquarters into New York’s  former Lord and Taylor building

(zerohedge)

WeWork Abandons Plan To Move HQ Into New York’s Lord & Taylor Building

The We Company’s rapid unraveling reached another milestone this week as the office-space leasing company with the “transcendental” bent agreed to hand over the reins to SoftBank, its biggest backer, in a deal that valued the unicorn at just $8 billion, a fraction of the $47 billion valuation the company had maintained from a few weeks ago.

The massive bailout (SoftBank reportedly forked over $6.5 billion and a new executive chairman as part of the deal) arrived at a critical juncture. Because as it turns out, WeWork’s need for cash is even more desperate than investors had initially believed, even after the publication of its pre-IPO prospectus.

The IPO was called off, of course, and just like that, $9 billion of badly needed financing ($3 billion to be raised in the IPO and a contingent $6 billion loan) evaporated.

Now, the company is reportedly in such dire straits that even after the buyout (money that mostly went to investors, including nearly $2 billion for Adam Neumann, the co-founder who was recently ousted from his position as CEO and is now severing all ties with the company, including stepping down from his position as executive chairman), it reportedly can’t afford to move ahead with plans to move its headquarters to the former Lord & Taylor building off Bryant Park, according to the New York Post and Crain’s New York Business.

That’s hardly a surprise; earlier this month, anonymously sourced reports claimed that the lease had become “an albatross” for the company. Along with a group of investors that included its own then-CEO Adam Neumann, WeWork participated in the $850 million purchase of the Lord & Taylor building (right at what looks to be the top of NYC’s commercial real-estate market).

Then, in a deal that reeked of self-dealing on behalf of the company’s then-CEO, WeWork earlier this year signed a long-term lease to become the building’s sole tenant, renting 660,000 square feet at the exorbitant rate of $105 a square foot (nearby buildings typically top out at around $80, according to the NYP).

Now, sources within WeWork’s real estate leasing business say they are ditching plans to make the former department store their headquarters. Instead, the company is rushing to lease the space as quickly as possible.

One source told the NYP that the company has accepted that trying to consolidate its headquarters at the Lord & Taylor building simply isn’t practical.

“They know it makes no sense,” the source said. “As a headquarters, they would have to clear out about 10 locations across the city and consolidate them.”

Another source said the Lord & Taylor deal is “one of the thorniest deals left in WeWork’s lap by Neumann.”

“Adam pushed everything through as he was the majority owner on everything, and nobody ever said no to him,” a source close to the company said. “The property fund is a huge conflict to the operating company. It was Adam’s way of profiting off the back of the money-losing side.”

Just what WeWork’s backers needed – 660,000 of overpriced NYC office space at a time when investors are increasingly worried about a recession and corporate profit margins are compressed.

END

“You’ve Got To Be Kidding Me”: Outraged WeWork Employees Furious At Neumann’s $1.2BN “Platinum Parachute”

In the aftermath of the stunning news that after extracting $700 million from WeWork, which was effectively insolvent before SoftBank doubled down on its money-losing investment to breathe some life in the imploding office subletter, the company’s ex-CEO Adam Neumann was set to reap another $1.2 billion payday, outspoken critic Scott Galloway said that “This is a disaster we’ll be teaching for decades in b-school” adding that while the CEO gets a platinum parachute, “thousands of employees are scrambling to clean up the mess, knowing they have a 1 in 2 chance of being fired.”

Scott Galloway

@profgalloway

This is a disaster we’ll be teaching for decades in b-school. The idolatry of innovators leads to billion-dollar payouts while thousands of employees are scrambling to clean up the mess, knowing they have a 1 in 2 chance of being fired. https://www.wsj.com/articles/softbank-to-take-control-of-wework-11571746483?mod=e2tw 

SoftBank to Boost Stake in WeWork in Deal That Cuts Most Ties With Neumann

SoftBank to Boost Stake in WeWork in Deal That Cuts Most Ties With Neumann

SoftBank agreed to take a majority stake in WeWork after securing a deal that could hand co-founder Adam Neumann a nearly $1.7 billion windfall and sever most of his ties with the office-space…

wsj.com

Yet while Galloway may be correct in his business school case study forecast, he may have underestimated the anger bubbling among the company’s employees, because as Bloomberg notes, the reaction from his ex-colleagues, who are facing the prospect of mass job cuts and a corporate crisis: “You’ve got to be kidding me.

As WeWork’s disheartened employees walked in on Tuesday to learn that their recently departed messiah CEO was set to wave farewell to his noble pursuit of “elevating the world’s consciousness” and quit as WeWork’s Chairman in exchange for over $1 billion even as most of them faced near-certain termination, they took to the company’s system-wide communication system and that was one of the comments posted, reflecting the mood of anger and betrayal throughout its headquarters in New York. And, as Bloomberg adds, “dozens of employees expressed indignation in interviews and messages to colleagues on company Slack channels.” Predictably, those speaking out against an epic injustice that will be used by politicians for years to show the wealth chasm that has developed between the rich and everyone else, requested anonymity in a bid to protect their jobs, especially with management weighing the dismissal of thousands of employees.

To his credit, Neumann did build WeWork into a global real estate company fueled by relentless optimism and billions of dollars in investment capital and debt. In retrospect, however, virtually anyone could have done with Neumann did: after all, he was essentially selling a dollar for less than 50 cents, with the company set to burn through almost as much cash this year as it makes in revenue.

As such, it was only the generous investments by SoftBank, Benchmark and other VC who fell for Neumann’s spell that made WeWork “success” possible in the first place. In the end, however, the company sports a mere $8 billion valuation after investors already put down more than $17 billion into the venture: so far they are losing more than 50 cents for every dollar invested.

Which means that the only winner here is Adam Neumann who somehow will walk away with nearly $2 billion.

Ironically, it was his fake, virtue signaling sermons about community and mission that engendered a fierce loyalty among his gullible staff and investors for years. But it took just a few weeks for his aura to vanish over once public investors were given a closer look at the business ahead of an initial public offering: as a result of the wholesale revolt at what Neumann was peddling, WeWork’s valuation imploded from $47 billion to $8 billion as it abandoned its IPO. More importantly, absent a last minute bailout from SoftBank – which had already sunk $9 billion into WeWork – it would have been bankrupt in November.

Meanwhile, the company’s thousands of employees were forgotten by everyone, including their former messiah who it turned out, cared only about his exit package than his co-workers, whose consciousness would no longer be elevated.

To be sure, in recent weeks, an executive exodus and cost-saving measures had already dampened morale. Especially in satellite offices, many workers had stopped coming into work. But it was the news of Neumann’s “platinum parachute,” as one former employee described it, made things a lot worse this week.

A link to a news article about the deal on WeWork’s Slack network Tuesday drew more than 100 “thumbs down” emoji from employees. Several workers noted the irony that WeWork could not afford payroll costs associated with the planned job cuts but that its largest shareholder agreed to pay a hefty fee to Neumann. One post read: “So we’re too broke to pay employees severance, but Adam gets $200m?”

Another employee posted a photo of the orphan from “Oliver Twist” with the caption: “Please, Masayoshi Son, can I have some severance?” To that employee we have some soothing words: when this insane liquidity bubble finally bursts, Masayoshi Son will be in urgent need of severance himself.

As Bloomberg concludes, whereas Neumann was the main subject of staff fury, some complaints were also pointed at the pair of men who replaced him as CEO last month: “Seriously, where’s the email from our co-CEOs or whoever’s running the company now?”

end
My goodness!! Boeing is deteriorating fast.  Its revenue tumbled 20% as it is burning cash like no tomorrow.  And now its 787 Boeing has been throttled.
(zerohedge)

Boeing Revenue Tumbles 20% As Cash Burn Soars Most In 9 Years; 787 Production Throttled

One of the busiest days of Q3 earnings season is quickly turning into a nightmare for corporate America, as first CAT stunned markets by slashing guidance and predicting a revenue decline after a dismal quarter that saw an across the board drop, followed immediately by a just as deplorable report from aerospace giant Boeing.

As the Boeing 737 MAX scandal gets worse with every passing day, it was perhaps not a surprise that the company reported a collapse in earnings, but few expected the extent of the collapse:

  • Q3 revenue of $19.98 billion plunged -21% y/y from $25.1 billion a year ago, which however was modestly better than the $19.57BN expected
  • Q3 EPS of $1.45, far below the $2.14 expected, and down a whopping 60% from the 3.58 a year ago.

More problematic is that the MAX scandal is now starting to hit the orderbook, and Boeing’s Q3 backlog of $470 billion was down -4.3% y/y.

Yet while another kitchen sink quarter was to be expected, a big surprise came as Boeing announced its record production rate for the 787 Dreamliner was to be short-lived, as the company is now planning on cutting 787 output to 12 jets a month starting in late 2020 for two years, down from the 14-jet monthly output the company adopted earlier this year.

Going back to the dismal earnings report, in Q3 Boeing was hit so hard, it reported that its operating cash flow actually turned negative, from $4.56BN a year ago to $(2.4)BN amid lower 737 delivery and advance payments:

As Bloomberg notes, this is now the second consecutive quarter of negative cash flow for the company, which would be the first time since at least 2010.

Shifting away from the cash flow to the balance sheet did not inspire much confidence, as Boeing reported a surge in its debt, which rose by $5.5BN while cash increased by just $1.3BN. It’s also the reason why Boeing bonds are sliding: the company’s 2.7% bonds due 2027 are nearly 4 basis wider to 87.366 basis points over Treasuries, while Boeing CDS are 2 bps wider to 47.2 basis points, up from 27 in March before the first crash.

 

Yet despite such dismal earnings, Boeing stock was actually higher. Why? Because it was clear that the Q3 presentation was all about damage control, with the first two slides focused entirely on “Safety, Quality, Integrity” and on the “culture of cost-cutting safety” at Boeing.

But the biggest reason why the stock rose is that despite every indication to the contrary, Boeing still estimates that the 737 Max’s return will happen in the fourth quarter (narrator: it won’t). It gets better: the delusional company also sees production of the MAX rapidly moving into high gear next year, from the current 42-jet monthly pace to a 57-jet pace by the end of the year. While that should put to rest any speculation that the planemaker was girding to slow work at its Renton factory, south of Seattle, it should bring up questions about the sanity of its executives who clearly are ignoring the souring social mood and the reality that few if any people will ever dare step foot in the 737 MAX if it is once again open for business.

Meanwhile, as the global flying ban drags on, Boeing finds itself sitting on hundreds of newly built but undelivered 737 Max aircraft. Inventories totaled $73.3 billion as of Sept. 30, up 17% from the start of the year.

Finally, one additional detail flagged by Bloomberg, relevant one day after Boeing was put on outlook negative by the rating agencies, is that the company was said to launch a revolving credit facility totaling $9.5 billion as early as this week which is expected to close next week. That information came from people familiar with the matter, who asked not to be identified, because they were not authorized to speak publicly on the matter. It would replace $5.1 billion of existing debt.

end
With rates extremely low, refis collapse the most in 3 years.  This is not good for the housing sector
(zerohedge)

Refis Collapse Most In 3 Years As Mortgage Rates Tick Higher

Mortgage applications plunged 11.9% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 18, 2019. But it was the Refinance Index that got really hit, crashing 17% from the previous week.

Source: Bloomberg

All of which should make housing market enthusiasts more than a little worried, as if the marginal mortgage applicant is this sensitive to rates – near record lows – then what happens if we see an upturn in growth (which is apparently priced into homebuilder stocks) and rates really rise?

Source: Bloomberg

“Interest rates continue to be volatile, with Brexit votes and ongoing trade negotiations swinging rates higher or lower on any given day. Last week, mortgage rates jumped 10 basis points and were above 4 percent for the first time since September,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist.

The increase in mortgage rates caused refinance applications to drop 17 percent, and by more than 20 percent for conventional loans. Borrowers with larger loans are the most sensitive to rate changes, and with rates climbing higher last week, the average size of a refinance loan application fell to its lowest level this year.”

Fratantoni had a modest silver lining however:

Although purchase applications declined, application volume is still running about 6 percent ahead of this time last year. Low mortgage rates continue to fuel buyer interest, but supply and affordability challenges persist.”

Source: Bloomberg

So let’s just hope that growth hope doesn’t return and/or Powell keeps pushing rates lower.

end
This is huge:  the 4th POMO is almost 600% oversubscribed.  Liquidity is getting worse!!. The big question is why are the banks not providing their excess reserves knowing that the Fed will continue to provide liquidity until 2020.  What do they know that we do not know
(zerohedge)

Fed’s Fourth Bill POMO Is Most Oversubscribed Yet Amid Liquidity Scramble

One day after the Fed unexpectedly saw a surge in demand for its term-repo operation, which was oversubscribed for the first time since the mid-September repo crisis erupted, the liquidity shortage in the funding market appears to be getting worse by the day, and in today’s just concluded 4th consecutive T-Bill POMO, which saw the Fed monetize another batch of Bills, Dealers submitted $44.2BN in bids for the maximum $7.5BN in Fed “Reserve Management” (note: not QE) purchases.

This means that today’s operation was 5.9x oversubscribed, the most of any operation since the launch of “Not QE4”, and clearly an increase from the first three POMOs, when operations were 4.3x, 4.8x and 5.5x oversubscribed.

The results confirm that demand for the Fed’s permanent liquidity injection is increasing with every operation – suggesting that not only was the September repo turmoil not a one-time liquidity event, but that that liquidity shortage is getting worse – even as usage of the Fed’s latest overnight repo saw a modest decline.

As such the question we have been asking for the past month – and one which Elizabeth Warren should also consider asking of Steven Mnuchin – remains: why are banks still so desperate for liquidity even though the Fed has now made clear that its balance sheet will expand to accommodate all reserve needs, and why do they so stubbornly refuse to approach the interbank market for their funding needs? In short, what do they know about the banking system that we don’t?

end
California
here we go again: over 1 million Californians may be affected by another blackout to prevent fires
(zerohedge)

Over 1 Million Californians May Be Affected By Imminent Fire-Prevention Blackout

Californians will once again get to ‘enjoy’ a pre-industrial lifestyle this week as state utilities gear up for another round of intentional blackouts aimed at reducing the risk of fires, according to Bloombergwhile PG&E claims that over to 1 million residents may be impacted by the shutoffs.

On Wednesday, PG&E will begin cutting power to approximately 179,000 California households in 17 fire-prone areas, beginning at 2pm. The outage includes Alpine, Amador, Butte, Calaveras, El Dorado, Kern, Lake, Mendocino, Napa, Nevada, Placer, Plumas, San Mateo Sierra, Sonoma, Tehama and Yuba counties.

zerohedge@zerohedge

PG&E: 1.2 MILLION POWER CUSTOMERS IN FIRE WEATHER WATCH AREA

Every time the wind blows California will become Venezuela

Further south, Edison International’s Southern California utility announced that 162,276 customers may be affected by a similar blackout, while Sempra Energy may cut power to 24,000.

The potential for an outage comes at a time of year when the landscape is dry and fires spark and spread easily. Northerly winds are expected to pick up Wednesday evening into Thursday morning in the hills of the East Bay and North Bay, delivering critical fire risk. Winds between 35 and 45 mph with some 55 mph gusts in localized areas are forecast for Sonoma and Napa counties.

The National Weather Service has a Red Flag Warning in effect for the North Bay mountains, valleys and coast, noon Wednesday through 4 p.m. Thursday; the East Bay mountains and valleys, 3 p.m. Wednesday through 4 p.m. Thursday; and the Santa Cruz Mountains, 7 p.m. Wednesday through 4 p.m. Thursday. –SFgate

PG&E had originally planned on cutting power to more than 209,000 households before dialing back the figure. They have provided the following website for those who may be impacted. Hopefully it doesn’t go down this time.

 

iv) Swamp commentaries)

Taylor tells the panel that there is a quid pro quo but Johnny Ratcliffe destroys the witness in cross examination

(zerohedge)

US Ambassador Tells Impeachment Panel Of Trump-Ukraine Quid Pro Quo

lightning-fast leak of closed-door testimony from US diplomat to Ukraine, William B. Taylor, reveals his ongoing belief that there was a quid pro quo between the Trump administration and Ukraine – who President Trump asked to investigate the country’s role in the 2016 US election, as well as corruption allegations levied at Joe and Hunter Biden.

 

William B. Taylor Jr., the top American diplomat in Ukraine, arriving Tuesday on Capitol Hill.CreditAnna Moneymaker/The New York Times

Democrats have called the testimony the most damaging account yet, as Taylor provided an “excruciatingly detailed” opening statement, according to the New York Times.

(We’re still waiting on a leak – or at least a transcript, from Ukraine special envoy Kurt Volker, whose testimony earlier this month was reportedly exonerating).

 

Taylor notably expressed his concerns in a Sept. 9 text message to US ambassador to the EU, Gordon Sondland, saying: “I think it’s crazy to withhold security assistance for help with a political campaign.

To which Sondland replies “Bill, I believe you are incorrect about President Trump’s intentions. The President has been crystal clear no quid pro quo’s of any kind,” adding “I suggest we stop the back and forth by text.”

On Tuesday, Mr. Taylor directly addressed accusations surrounding Ukraine’s president, Volodymyr Zelensky, and Burisma, a Ukrainian gas company that employed Hunter Biden, the son of former Vice President Joseph R. Biden Jr., one of the leading Democratic candidates for president.

He “drew a very direct line in the series of events he described between President Trump’s decision to withhold funds and refuse a meeting with Zelensky unless there was a public pronouncement by him of investigations of Burisma and the so-called 2016 election conspiracy theories,” Ms. Wasserman Schultz said. –New York Times

As the Washington Post notes, Taylor said “By mid-July it was becoming clear to me that the meeting President Zelenskyy wanted was conditioned on the investigations of Burisma,” the Ukrainian gas firm which employed Hunter Biden, “and alleged Ukrainian interference in the 2016 U.S. elections.”

Taylor also said the quid pro quo was explicitly communicated to Ukraine.

He says he was told by National Security Council aide Tim Morrison that Sondland, the European Union Ambassador, directly communicated that quid pro quo to a top Zelensky aide, Andriy Yermak.

“During this same phone call I had with Mr. Morrison, he went on to describe a conversation Ambassador Sondland had with Mr. Yermak at [a meeting in] Warsaw,” Taylor says. “Ambassador Sondland told Mr. Yermak that the security assistance money would not come until President Zelensky committed to pursue the Burisma investigation.” –WaPo

Now, Democrats on the House Intelligence Committee are discussing bringing Sondland back for further testimony, as some believe he was not forthcoming with them.

 

END

What a riot!!  The Republicans storm the secretive impeachment hearing in the Capitol basement and demand transparency.  Schiff immediately leaves without uttering a sound

(zerohedge)

GOP Lawmakers Storm Secretive Impeachment Hearing In Capitol Basement; Demand Transparency

A group of House Republicans stormed a closed-door impeachment inquiry hearing Wednesday morning to lodge a protest against the secretive deposition of a top Defense Department official who was testifying about President Trump’s dealings with Ukraine, The Hill reports.

“They crashed the party,” said Rep. Harley Rouda (D-CA), who sits on the House Oversight Committee, one of three House panels participating in the impeachment probe.

Dozens of Republicans, including some members of leadership, barged into the secure hearing room in the Capitol basement where Laura Cooper, the deputy assistant secretary of defense for Russia, Ukraine and Eurasia, was providing private testimony.

Several lawmakers said that, in response to the Republican protest, House Intelligence Committee Chairman Adam Schiff (D-Calif.) had left the room with Cooper, postponing the interview indefinitely. The Hill

According to Rep. Roger Marshall (R-KS), Rep. Adam Schiff ssaid “nothing” when the members sat down.

Rep. Mark Walker

@RepMarkWalker

UPDATE: We are in the SCIF and every GOP Member is quietly listening.

Meanwhile, Adam Schiff, clearly peeved that he will no longer be able to hide his impeachment sham, is threatening Ethics punishment for all of us.

His fake intimidation can’t hide his lies–Open the process!

“He doesn’t have the guts to come talk to us,” said Marshall. “He left, he just got up and left. He doesn’t have the guts to tell us why we can’t come in the room, why he doesn’t want this to be transparent. It’s the biggest facade, biggest farce of my life.

Olivia Beavers

@Olivia_Beavers

Republicans trying to “storm the SCIF”

View image on Twitter

Schiff then reportedly threatened GOP members with ethics violations after 25 Republican lawmakers remained in the room, per Rep. Debbie Wasserman Schultz (D-FL), adding that the Democrats’ impeachment probe has “far too much fact for their comfort level, so they have to try to stop it from moving forward.” (So much fact, in fact, that they have to conduct the probe in secret!)

The move by House Republicans comes a day after another witness, top diplomat William Taylor, testified that Trump withheld military aid to Ukraine to pressure the country to conduct a pair of investigations — one into the 2016 election hacking, the other into the family of former Vice President Joe Biden — that might have helped Trump’s reelection campaign next year.

Some of Republicans who barged into the hearing room were in possession of cellphones, a violation of the rules governing the so-called sensitive compartmented information facility, known as the SCIF, where the depositions have been taking place.

Wassermann Schultz said Cooper was not in the room at the time the Republicans entered. It’s unclear, she added, what will happen next in terms of Cooper’s testimony. –The Hill

“We want this to continue,” said Rep. Chris Stewart (R-UT), who added that Republicans aren’t trying to stop the hearing.

“We want to hear from this witness but so do the other members of Congress,” Stewart continued. “This may be within House rules, that’s not the question. The question is, is it a good idea to try and impeach the president in secret hearings.”

end

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

UK PM Johnson will seek election if parliament rejects Brexit timetable

Prime Minister Boris Johnson is seeking to get approval for his Brexit deal by trying to push it through parliament in an accelerated time frame so Britain can leave the EU on Oct. 31.  The source said: “If parliament votes again for delay by voting down the programme motion, and the EU offers delay until 31 Jan. – then we will pull the bill, there will be no further business for parliament and we’ll move to an election before Christmas.”

https://www.reuters.com/article/uk-britain-eu-election/uk-pm-johnson-will-seek-election-if-parliament-rejects-brexit-timetable-source-idUSKBN1X11IR

Judicial Watch: AP Reporters Gave DOJ/FBI Ukraine Info and Code to Private Locker of Paul Manafort in Apparent Effort to Push Criminal Prosecution – Andrew Weissmann organized off-the-record DOJ/FBI meeting with AP to exchange ‘clarification’ and ‘assistance’ in their investigation for details on former Trump Campaign Director Paul Manafort

https://www.judicialwatch.org/press-releases/judicial-watch-ap-reporters-gave-doj-fbi-ukraine-info-and-code-to-private-locker-of-paul-manafort-in-apparent-effort-to-push-criminal-prosecution/

 

The NY Times acknowledged yesterday that Dems are in big trouble for 2020.

 

Anxious Democratic Establishment Asks, ‘Is There Anybody Else?’ – Party leaders who are worried about Democrats’ chances in 2020 are musing about possible late entrants to the race.

https://www.nytimes.com/2019/10/22/us/politics/democratic-candidates-2020.html

 

Sen @ChuckGrassley calls out Horowitz: All of the delays and excuses why the Horowitz IG FISA report isn’t public yet after several months of anticipation of its issues leads me to thesuspicion it’s going to be “deep six” by the deep state

 

Rand Paul: There Are GOP Senators More Loyal to Deep State than Trump

Noting… that Graham promised to use his chairmanship of the powerful Senate Judiciary Committee to get to the bottom of the Russia investigation, Carlson groused that the South Carolina lawmaker hadn’t made any progress exposing the “bureaucratic coup” against President Donald Trump.  “So far, Graham’s tenure has been defined by total inaction,” Carlson grumbled. “He has subpoenaed neither [former Deputy FBI Director Andrew] McCabe nor [ex-Deputy Attorney General Rod] Rosenstein, nor has he launched an investigation. Now his inaction extends to the Ukraine saga.”…

https://www.thedailybeast.com/rand-paul-there-are-gop-senators-more-loyal-to-deep-state-than-trump

 

Sen. Lindsey Graham critics on Monday launched a #Whereslindsey Twitter hashtag because Graham has talked tough and gravitated to the MSM but has not exercised his power to investigate and call witnesses.

 

Human Events Editor in Chief @willchamberlain: Anyone think it’s weird that GOP Senators have subpoenaed @DonaldJTrumpJr  to testify, but not Hunter Biden?  #WheresLindsey

 

Limbaugh on Do-Nothing Lindsey Graham: He Won’t Call for Hearings on Ukraine Because It Would Implicate John McCain – “John McCain was at the epicenter of the Steele dossier’s dissemination…”…    https://www.thegatewaypundit.com/2019/10/rush-limbaugh-on-do-nothing-lindsey-graham-he-wont-call-for-hearings-on-ukraine-because-it-would-implicate-john-mccain/

 

@julie_kelly2: Just called Graham’s DC office. When I said I was calling to ask why Graham hasn’t held any hearings related to FISAgate, Kavanaugh, Ukraine whistleblower, etc, they told me to call Senate Judiciary committee. When I asked several times for his specific comms person, she refused.

 

Due to the bashing he was taking, Graham surfaced on Tuesday.  @thehill: Sen. Lindsey Graham: “This is a sham. This is a joke. I’m going to let the whole world know that if we were doing this to a Democratic president, you would be all over me right now… This is a lynching in every sense. This is un-American.” http://hill.cm/oc8yBQg

 

@larryelder: People forget that Mitt Romney was BEATING Barack Obama in the polls during the 2012 race. That’s why Harry Reid, in Aug., 2012, stood on the floor of the senate, LIED and claimed Romney hadn’t paid taxes in 10 yrs. And Romney is more angry at TRUMP than the Democrats.

 

In July 2012, Obama’s creator and chief political adviser, David Axelrod, told the president that he would lose the election.  Obama asked Axelrod what they should do.  David told the president that the campaign should go heavily negative on Romney with ads and verbal attacks.  Romney’s response would be critical.  Romney did nothing.  When CNN’s Candy Crowley blatantly sided with Obama and slapped Mitt around during a debate, Mitt gave Candy a confounded shrug but remained mum.  Mitt was finished at that point.

 

NY Post, Oct 18, 2012: CNN’s Crowley selected both questions and questioners — both of which largely skewed left. She let President Obama dominate, giving him 4 minutes and 18 seconds more speaking time.

    She interrupted Obama nine times, but she squelched Mitt Romney fully 28 times — repeatedly cutting him off just as he was scoring points. Once she told him to shut up, telling him: “See all these people? They’ve been waiting for you. Make it short.”…

    But the most blatant evidence of bias was her instant “fact checking” of Romney’s quite correct insistence that Obama took weeks to call the Benghazi debacle a terrorist attack. She jumped to Obama’s defense, saying “he did call it an act of terror.”…

    Not until 17 days later — after endless administration distortions — did Obama acknowledge that it was a planned attack.  Yesterday, Crowley belatedly acknowledged, “The president did not say it was . . . an act of terror.” But the damage was done…   https://nypost.com/2012/10/18/candys-not-dandy/

 

Mexico’s Soaring Murder Rate Proves Gun Control Is Deadly

Its laws are among the world’s least permissive. And most criminals don’t get weapons from the U.S

https://www.wsj.com/articles/mexicos-soaring-murder-rate-proves-gun-control-is-deadly-11571696723

 

University dumps professor who found polar bears thriving despite climate change

https://www.washingtontimes.com/news/2019/oct/20/susan-crockford-fired-after-finding-polar-bears-th/

@1776Stonewall: See, this is how you get bull$#@t stats like “97% of scientists agree with climate change.” Because if you disagree you’re kicked out of science community

Well that is all for today

I will see you Thursday night.

 

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