GOLD:$1488.45 DOWN $5.00(COMEX TO COMEX CLOSING

Silver:$17.82 DOWN 6 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold : $1487.90

silver: $17.82

we are now entering options expiry week

comex options on gold/silver expire on: Monday Oct 28// expired YESTERDAY

LBMA options expire on Thursday Oct 31 as does the OTC options.

Gold and silver will be subdued in price UNTIL THURSDAY AFTERNOON

COMEX DATA

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

today RECEIVING 0/214

EXCHANGE: COMEX
CONTRACT: OCTOBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,490.000000000 USD
INTENT DATE: 10/28/2019 DELIVERY DATE: 10/30/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 8
152 C DORMAN TRADING 3
657 C MORGAN STANLEY 22
685 C RJ OBRIEN 2
690 C ABN AMRO 18
737 C ADVANTAGE 23
880 H CITIGROUP 214
905 C ADM 7
991 H CME 131
____________________________________________________________________________________________

TOTAL: 214 214
MONTH TO DATE: 12,246

we are coming very close to a commercial failure!!

NUMBER OF NOTICES FILED TODAY FOR OCT CONTRACT: 214 NOTICE(S) FOR 21400 OZ (0.6656 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR: 12,240 NOTICES FOR 1,203200 OZ (37.42 TONNES)

SILVER

FOR OCT

61 NOTICE(S) FILED TODAY FOR 305,000 OZ/

total number of notices filed so far this month: 1513 for 7.565,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE : $ 9420 UP 206

Bitcoin: FINAL EVENING TRADE: $ 9352 UP 140

Let us have a look at the data for today

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IN SILVER THE COMEX OI FELL BY A SMALL SIZED 754 CONTRACTS FROM 222,887 DOWN TO 222,113 WITH THE 6 CENT LOSS IN SILVER PRICING AT THE COMEX.

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

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

FOR SEPT 0,; DEC 653 AND ZERO FOR ALL OTHER MONTHS AND THEREFORE TOTAL ISSUANCE 653 CONTRACTS. WITH THE TRANSFER OF 653 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 653 EFP CONTRACTS TRANSLATES INTO 3.265 MILLION OZ ACCOMPANYING:

1.THE 6 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV: A HUGE 7.440 MILLION OZ STANDING AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ STANDING FOR JULY

10.025 MILLION OZ INITIAL STANDING IN AUGUST.

43.030 MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.565 MILLION OZ INITIALLY STANDING IN OCT

YESTERDAY,WE HAD A HUGE ATTEMPT BY THE BANKERS TO COVER THEIR MASSIVE SHORTFALL AT THE SILVER COMEX AS A RAID WAS INITIATED IN BOTH SILVER AND GOLD DUE TO OPEN’S EXPIRY …….. OUR OFFICIAL SECTOR//BANKERS AGAIN USED HUGE COPIOUS NON BACKED PAPER IN THEIR SUCCESSFUL ENDEAVOUR TO WHACK SILVER’S PRICE ( IT FELL 6 CENTS ). OUR OFFICIAL SECTOR/BANKERS WERE ALSO SUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS AS THE TOTAL LOSS IN OI ON BOTH EXCHANGES TOTALED A TINY 101 CONTRACTS. OR 0.505 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:

26,508 CONTRACTS (FOR 21 TRADING DAYS TOTAL 26,508 CONTRACTS) OR 132.54 MILLION OZ: (AVERAGE PER DAY: 1262 CONTRACTS OR 6.46 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER: SO FAR THIS MONTH OF AUGUST: 132.54 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 18.93% 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: 1772,28 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 DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 754, WITH THE 6 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 653 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE LOST A SMALL SIZED: 101 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 653 OPEN INTEREST CONTRACTS HEADED FOR LONDON (EFP’s) TOGETHER WITH DECREASE OF 754 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 6 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $17.88 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. 1.110 BILLION OZ TO BE EXACT or 159% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 61 NOTICE(S) FOR 305,000 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:

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: 7.565 MILLION OZ//
THE RECORD WAS SET IN AUGUST 22/2018: 244,196 CONTRACTS, WITH A SILVER PRICE OF $14.78//.
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 FELL BY A CONSIDERABLE SIZED 9019 CONTRACTS TO 650,352, MOVING AWAY FROM THE NEW ALL TIME RECORD OF 659,371 SET YESTERDAY. HOWEVER THE MAJORITY OF THE LOSS WAS DUE TO THE LIQUIDATION OF SPREADERS.THE LOSS IN OI ACCOMPANIED THE CONSIDERABLE $9.75 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING RAID// YESTERDAY// / (THE PREVIOUS RECORD WAS SET ON OCT 28/2016 AT 659,371)

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A STRONG SIZED 6570 CONTRACTS:

OCT 2019: 0 CONTRACTS, DEC> 6570 CONTRACTS AND ALL OTHER MONTHS ZERO. The NEW COMEX OI for the gold complex rests at 650,352,,. 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 SMALL LOSS IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2449 CONTRACTS: 9019 CONTRACTS DECREASED AT THE COMEX AND 6570 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS TOTAL OI LOSS OF 2449 CONTRACTS OR 244,900 OZ OR 7.617 TONNES. YESTERDAY WE HAD A LOSS OF $9.70 IN GOLD TRADING….

AND WITH THAT LOSS IN PRICE, WE HAD A LOSS IN GOLD TONNAGE OF 7.67 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 VERY SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (DOWN $9.70) .THEY WERE UNSUCCESSFUL IN FLEECING GOLD LONGS FROM THE GOLD ARENA AS THE ENTIRE COMEX LOSS WAS DUE TO LIQUIDATION FROM SPREADERS.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF OCT : 145,163 CONTRACTS OR 1,451,630 oz OR 451.51 TONNES (21 TRADING DAY AND THUS AVERAGING: 6912 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS : THIS MONTH IN 21 TRADING DAYS IN TONNES: 451.51 TONNES

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

THUS EFP TRANSFERS REPRESENTS 451.51/3550 x 100% TONNES =12.71% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE: 5138.54 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 EFP ISSUANCE 174.900 MILLION OZ

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 CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 9019 WITH THE RAID AND PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($9.70)) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 6570 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 6570 EFP CONTRACTS ISSUED, WE HAD SMALL SIZED LOSS OF 2449 CONTRACTS IN TOTAL OPEN INTEREST ON THE TWO EXCHANGES:

6570 CONTRACTS MOVE TO LONDON AND 9019 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE LOSS IN TOTAL OI EQUATES TO 7.617 TONNES). ..AND THIS HUGE DECREASE OF DEMAND OCCURRED DESPITE THE LOSS IN PRICE OF $9.70 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. OVER 9,000 SPREADERS LIQUIDATED THEIR POSITIONS AND THAT IS WHY THE TOTAL OI FELL.

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

we had: 214 notice(s) filed upon for 21,400 oz of gold at the comex.

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

GLD...

WITH GOLD DOWN $5.00 TODAY//(COMEX-TO COMEX)

NO CHANGE IN GOLD INVENTORY AT THE GLD//

INVENTORY RESTS AT 918.48 TONNES

SLV/

WITH SILVER DOWN 6 CENTS TODAY:

A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 400,000 OZ TO PAY FOR FFES

/INVENTORY RESTS AT 376.525 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 FELL BY A SMALL SIZED 754 CONTRACTS from 222,887 DOWN TO 22,133 AND FURTHER FROM A NEW COMEX RECORD. THE LAST RECORDS WERE SET IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER 2 YEARS AGO. THE PRICE OF SILVER ON THAT DAY: $17.89.

EFP ISSUANCE:

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

FOR OCT. 0; FOR DEC 653: AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 653 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. IF WE TAKE THE OI LOSS AT THE COMEX OF 754 CONTRACTS TO THE 653 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A SMALL SIZED LOSS OF 101 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 0.505 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: 7.565 MILLION OZ//

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 6 LOSS GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A GOOD SIZED 653 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)TUESDAY MORNING/ MONDAY NIGHT:

SHANGHAI CLOSED DOWN 25.87 POINTS OR 0.87% //Hang Sang CLOSED DOWN 106.50 POINTS OR 0.39% /The Nikkei closed UP 106.86 POINTS OR 0.47%//Australia’s all ordinaires CLOSED UP 09%

/Chinese yuan (ONSHORE) closed DOWN at 7.0646 /Oil DOWN TO 55/14 dollars per barrel for WTI and 60.84 for Brent. Stocks in Europe OPENED RED// ONSHORE YUAN CLOSED DOWN // LAST AT 7.0646 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0638 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP RAISED RATES TO 25%

3A//NORTH KOREA/ SOUTH KOREA

3b) REPORT ON JAPAN

3C CHINA

i)HSBC LONDON/HONG KONG

Although London based, HSBC receives 90% of its revenue from Hong Kong. Today we witness their profits plunge by 24% and the chaos inside Hong Kong puts these guys in trouble with their derivatives

(zerohedge)

ii)HONG KONG/CHINA

This is not good. Jason Wong a student is the leader of the pro democracy movement in Hong Kong. He has just been barred from running in their next elections

(zerohedge)

4/EUROPEAN AFFAIRS

i)UK

Labour now backs Johnson for a December election. He has 2/3 ‘s of the vote but still there is squabbling. He should get it done

(zerohedge)

ii)ITALY

A terrific commentary on the plight of Italy which saw of massive migration for the past few years. Now they witness depopulation in major cities as Italian citizens just move out and this will magnify segregation. In Turin elementary schools.. no Italian children in kindergarten. Also major problems in Bologna.

a must read…

(COURTESY GATESTONE)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Syria,Turkey/Russia

Again we see the Russians acting like true statesmen as they came to the north patrolling the area protecting the Syrian Kurds. Then stupidly the Turks fired upon the Russians. The Turks are angry that Russia is now aiding the Kurds.

(zerohedge)

ii)LEBANON

This debt strapped nation is now in serious trouble with banks closed for 12 straight days. The country has a scarcity of dollars and lot of their debt is denominated in dollars. This is what happens to a country when you allow Hezbollah to control the south. Iran itself which tries to fund this terrorist organization is also out of dollars. It sure looks like Lebanon will default on its sovereign bonds.

(zerohedge)

6.Global Issues

SWEDEN

Former CEO of trucking company Scania warns that Sweden is now heading for civil war due to uncontrolled mass immigration

(zerohedge)

7. OIL ISSUES

8 EMERGING MARKET ISSUES

9. PHYSICAL MARKETS

i)The Russian central bank will be using their own SWIFT system to bypass the dollar as they settle with China and India. A big nail in the coffin of the USA dollar.

(Izvestia/Moscow/GATA)

ii)A very important read…Pam and Russ talk about the Fed fears and JPmorgan. Mostly likely the reason that JPMorgan is not lending money is due to the fact that they are the counterparty to Deutsche bank who is the recipient of all of the Fed money. They are totally offside in their derivatives and cannot make any money due to negative interest rates. The Martens are angry because jPMorgan is buying back their stock using depositor money not having to worry due to the FDIC backing deposits

(Pam and Russ Martens/Wall Street on Parade/GATA)

iii)Ted Butler talks about the return of the silver whale. There is no doubt a silver whale but they would never put their silver into an ETF like SLV. They would only be interested in real physical metal.Ted Butler is wrong in how this silver whale operates.

(ted Butler/GATA)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

a)Hard data major city home price growth slumps to its weakest level in 7 years. This is a vital component of GDP growth.

(zerohedge)

b)Not good: This is a vital part of GDP, the USA consumer and today’s USA confidence number tumbles to a 7 moth low

(zerohedge)

iii) Important USA Economic Stories

i)In this latest report we are witnessing the consumer finally cracking as witnessed by the huge defaults in auto loans. The total of all 3 credit loans: 1) auto, 2) student 3) credit card totals $13,460 per person. That is no doubt a huge drag on spending

(zerohedge)

ii)Texas

Spanish bank Santander is the largest subprime auto lender and are now currently experiencing a significant acceleration in delinquencies not seen since 2008. The Dallas Fed has evidence that the epicentre of the next auto laons meltdown will be Texas

(zerohedge)

iii)California/PG and E

These rolling blackouts will be devastating to the California’s economy and also will have an effect on GDP numbers

(ZEROHEDGE)

IV)Ahead of the holiday season, the trucking industry continues to decelerate. This is a sure sign that the USA economy is in trouble

iv) Swamp commentaries)

this is nuts..

(zerohedge)

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

LET US BEGIN:

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A CONSIDERABLE SIZED 9019 CONTRACTS TO A LEVEL OF 650,352 WITH THE STRONG LOSS OF $9.70 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING/RAID). THE ENTIRE LOSS WAS DUE TO THE LIQUIDATION OF SPREADERS/

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF OCT.. THE CME REPORTS THAT THE BANKERS ISSUED STRONG SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 6570 EFP CONTRACTS WERE ISSUED:

FOR OCT; 0 CONTRACTS: DEC: 6570 AND ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 6570CONTRACTS.

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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 2449 TOTAL CONTRACTS IN THAT 6570 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 9019 COMEX CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD. THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE WITH THE RAID INITIATED, AS IT FELL BY $9.70. HOWEVER, JUDGING BY THE STRENGTH IN GAIN OF OUR TOTAL OI CONTRACTS, THEY WERE UNSUCCESSFUL IN THE ENDEAVOUR TO FLEECE ANY UNSUSPECTING LONGS. THE ENTIRE LOSS IN OI WAS DUE TO THE LIQUIDATION OF OVER 9,000 SPREADING CONTRACTS.

NET LOSS ON THE TWO EXCHANGES :: 2449 CONTRACTS OR 244900 OZ OR 7.617 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 214 contracts still standing for a LOSS of 112 contracts. Yesterday we had 75 notices served upon so we lost 37 contracts or an additional 3,700 oz will not stand as these guys morphed into London based forwards as well as accepting a fiat bonus.

The next active delivery month after October is the non active contract month of November. Here we saw a loss of 110 contracts and thus the OI DECREASED to 858. The very big December contract month saw its oi FALL by 10,746 contracts DOWN to 485,491 AND IT IS HERE THAT 9,000 SPREADING CONTRACTS LIQUEFIED.

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A SMALL SIZED 754 CONTRACTS FROM 222,887 DOWN TO 222,133 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018. THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE OI COMEX GAIN LOSS WITH A 6 CENT LOSS IN PRICING.//YESTERDAY.

TODAY’S NUMBER OF NOTICES FILED:

We, today, had 61 notice(s) filed for 305,000, OZ for the OCT, 2019 COMEX contract for silver

FINAL standings for OCT/GOLD

OCT 29/2019

Gold	Ounces
Withdrawals from Dealers* Inventory in oz*	nil oz
Withdrawals from Customer* Inventory in oz*	nil oz
Deposits to the Dealer* Inventory in oz*	nil oz
Deposits to the Customer* Inventory, in oz*	nil
No of oz served (contracts) today	214 notice(s) 21400 OZ (0.6656 TONNES)
No of oz to be served (notices)	0 contracts (0 oz) 0.000 TONNES
Total monthly oz gold served (contracts) so far this month	12,246 notices 1,224600 OZ 38.09 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 gold withdrawals; nil oz

We had 0 adjustment

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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 (12,246) x 100 oz , to which we add the difference between the open interest for the front month of OCT. (214 contract) minus the number of notices served upon today (214 x 100 oz per contract) equals 1,224,600 OZ OR 38.09 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 (12,246 x 100 oz) + (214)OI for the front month minus the number of notices served upon today (214 x 100 oz )which equals 1,224,600 oz standing OR 38.09 TONNES in this active delivery month of OCT.

We LOST 37 contracts OR 3700 ADDITIONAL OZ will not stand for delivery on this side of the pond.

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….. 38.09 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: 70.6955

TONNES- 2.60155 TONNES DEEMED SETTLEMENT = 68.093 TONNES STANDING FOR METAL AGAINST 35.773 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT 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.

FINAL standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.

OCT 29 2019

Silver	Ounces
Withdrawals from Dealers* Inventory*	NIL oz
Withdrawals from Customer Inventory	639,086.358 oz CNT Brinks HSBC
Deposits to the Dealer* Inventory*	nil oz
Deposits to the Customer Inventory	600,052.92 oz CNT
No of oz served today (contracts)	61 CONTRACT(S) (305,000 OZ)
No of oz to be served (notices)	0 contracts nil oz)
Total monthly oz silver served (contracts)	1513 contracts 7,565,000 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*

ii) Into CNT: 600,052.92 oz

we had 2 withdrawals out of the customer account:

i) Brinks: 600,962.800 oz

ii) out of CNT: 17,987.438 oz

iii) Out of HSBC: 20,136.120 oz

total withdrawals; 639,086.358 oz

We had 0 adjustment:

total dealer silver: 77.271 million

total dealer + customer silver: 315.083 million oz

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The total number of notices filed today for the OCT 2019. contract month is represented by 61 contract(s) FOR 305,000 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 1513 x 5,000 oz = 7,565,000 oz to which we add the difference between the open interest for the front month of OCT. (61) and the number of notices served upon today 61 x (5000 oz) equals the number of ounces standing.

Thus the INITIAL standings for silver for the OCT/2019 contract month: 1513 (notices served so far) x 5000 oz + OI for front month of OCT (61)- number of notices served upon today (61) x 5000 oz equals 7,565,000 oz of silver standing for the OCT contract month.

WE GAINED 49 contracts or an additional 245,000 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 ESTIMATED SILVER VOLUME: 79,409 CONTRACTS (we had considerable spreading activity..accumulation

CONFIRMED VOLUME FOR YESTERDAY: 88,884 CONTRACTS..

YESTERDAY’S CONFIRMED VOLUME OF 88884 CONTRACTS EQUATES to 444 million OZ 63.5% 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

NPV for Sprott

1. Sprott silver fund (PSLV): NAV RISES TO -2.01% ((OCT 29/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.62% to NAV (OCT 29/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -2.01%

(courtesy Sprott/GATA)

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

NAV 15.00 TRADING 14.59///DISCOUNT 2.73

END

And now the Gold inventory at the GLD/

OCT 29/WITH GOLD DOWN $5.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 918.48 TONNES

OCT 28/WITH GOLD DOWN $9.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 918.48 TONNES

OCT 25/WITH GOLD UP $1.40 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 918.48 TONNES

OCT 24/WITH GOLD UP $8.75 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER GOLD WITHDRAWAL OF 1.18 TONNES FROM THE GLD//INVENTORY RESTS AT 918.48 TONNES

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

0CT 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

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OCT 29/2019/ Inventory rests tonight at 918.48 tonnes

*IN LAST 693 TRADING DAYS: 31.17 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 593 TRADING DAYS: A NET 135.97 TONNES HAVE NOW BEEN ADDED INTO THE GLD INVENTORY.

end

Now the SLV Inventory/

OCT 29/WITH SILVER DOWN 6 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV” A WITHDRAWAL OF 400,000 OZ TO PAY FOR FEES/INVENTORY REMAINS AT 376.525 MILLION OZ//

OCT 28/WITH SILVER DOWN 6 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 909,000 OZ FROM THE SLV INVENTORY/INVENTORY RESTS AT 376.925 MILLION OZ/

OCT 25/2019: WITH SILVER UP 16 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 377.834 MILLION OZ//

OCT 24/2019: WITH SILVER UP 22 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 377.834 MILLION OZ/

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 O

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 29/2019:

Inventory 376.525 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

YOUR DATA…..

6 Month MM GOFO 1.97/ and libor 6 month duration 1.94

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

G0LD LENDING RATE: – .03

XXXXXXXX

12 Month MM GOFO
+ 1.90%

LIBOR FOR 12 MONTH DURATION: 1.99

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE = +.09

end

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

ii) Important gold commentaries courtesy of GATA/Chris Powell

The Russian central bank will be using their own SWIFT system to bypass the dollar as they settle with China and India. A big nail in the coffin of the USA dollar.

(Izvestia/Moscow/GATA)

Russian central bank creating a financial settlements system with China and India

Submitted by cpowell on Mon, 2019-10-28 15:37. Section: Daily Dispatches

By Dmitry Grinkevich and Inna Grigoryeva
Izvestia, Moscow
Monday, October 28, 2019

Russia, China, and India have come up with a way to organize settlements in case of disconnection from the SWIFT system.

The domestic solution — the central bank’s financial message transfer system — is planned to be linked with the Chinese and Indian payment infrastructure, two sources close to the regulator told Izvestia. Anatoly Aksakov, the head of the State Duma committee on the financial market, confirmed that the topic is being discussed with BRICS partners.

…

It is planned to create a backup infrastructure for payments between Russian organizations and their counterparties in India and China. We are talking about connecting settlement platforms using network gateways — hardware and software systems, Izvestia’s sources say.

For payments with China, it is supposed to link the Russian payments system with its counterpart in China — the cross-border interbank payment system. India does not have a national solution for financial communication. So it is planned to combine the platform of the Russian central bank with the promising development of an independent Indian structure, a source in the financial market explained. …

… For the remainder of the report:

https://iz.ru/936246/dmitrii-grinkevich-inna-grigoreva/uzy-sviazi-tcb-so…

end

A very important read…Pam and Russ talk about the Fed fears and JPmorgan. Mostly likely the reason that JPMorgan is not lending money is due to the fact that they are the counterparty to Deutsche bank who is the recipient of all of the Fed money. They are totally offside in their derivatives and cannot make any money due to negative interest rates. The Martens are angry because jPMorgan is buying back their stock using depositor money not having to worry due to the FDIC backing deposits

(Pam and Russ Martens/Wall Street on Parade/GATA)

Pam and Russ Martens: Fed fears an explosion on Wall Street, and JPM lit the fuse

Submitted by cpowell on Mon, 2019-10-28 15:46. Section: Daily Dispatches

By Pam and Russ Martens
Wall Street on Parade
Monday, October 28, 2019

JPMorgan Chase is the largest bank in the United States, with $1.6 trillion in deposits from more than 5,000 retail bank branches spread across the country. When it withdraws liquidity from the U.S. financial system, that has a reverberating impact.

According to the filings that JPMorgan Chase makes annually with the Securities and Exchange Commission, since 2013 JPMorgan Chase has spent $77 billion buying back its own stock. That includes the whopping $17.01 billion it has spent in just the first nine months of this year buying back its stock.

…

But here’s the shocking news. According to its SEC filings, JPMorgan Chase is partly using federally insured deposits made by moms and pops across the country in its more than 5,000 branches to prop up its share price with buybacks. …

… For the remainder of the report:

https://wallstreetonparade.com/2019/10/the-fed-fears-an-explosion-on-wal…

The Fed Fears an Explosion on Wall Street: Here’s How JPMorgan Lit the Fuse

By Pam Martens and Russ Martens: October 28, 2019 ~

JPMorgan Chase is the largest bank in the United States with $1.6 trillion in deposits from more than 5,000 retail bank branches spread across the country. When it withdraws liquidity from the U.S. financial system, that has a reverberating impact.

According to the filings that JPMorgan Chase makes annually with the Securities and Exchange Commission (SEC), since 2013 JPMorgan Chase has spent $77 billion buying back its own stock. That includes the whopping $17.01 billion it has spent in just the first nine months of this year buying back its stock.

But here’s the shocking news. According to its SEC filings, JPMorgan Chase is partly using Federally insured deposits made by moms and pops across the country in its more than 5,000 branches to prop up its share price with buybacks. The wording in the filing is as follows:

“In 2019, cash provided resulted from higher deposits and securities loaned or sold under repurchase agreements, partially offset by net payments on long-term borrowing…cash was used for repurchases of common stock and cash dividends on common and preferred stock.”

Had JPMorgan Chase not spent $77 billion propping up its share price with stock buybacks, it would have $77 billion more in cash to loan to businesses and consumers – the actual job of its commercial bank. Add in the tens of billions of dollars that other mega banks on Wall Street have used to buy back their own stock and it’s clear why there is a liquidity crisis on Wall Street that is forcing the Federal Reserve to hurl hundreds of billions of dollars a week at the problem.

On September 17, the overnight lending rate on repurchase agreements (repos) spiked from the typical 2 percent range to 10 percent, meaning some very big lenders such as JPMorgan Chase were backing away from lending. That forced the Federal Reserve to jump in as lender of last resort, the first time it has done that in any material way since the financial crisis.

On October 1, Reuters’ David Henry reported the following:

“Analysts and bank rivals said big changes JPMorgan made in its balance sheet played a role in the spike in the repo market, which is an important adjunct to the Fed Funds market and used by the Fed to influence interest rates…

“Publicly-filed data shows JPMorgan reduced the cash it has on deposit at the Federal Reserve, from which it might have lent, by $158 billion in the year through June, a 57% decline.”

Reuters reported further that JPMorgan’s draw down on its cash “accounted for about a third of the drop in all banking reserves at the Fed during the period.”

Millions of moms and pops across America who are going into their local branch of Chase to deposit some part of their paycheck each week for a rainy-day fund are doing so because they know the money is Federally-insured. Most have no idea that Chase is part of the sprawling global investment bank JPMorgan or that their deposits helped to make Jamie Dimon, the bank’s CEO, a billionaire through stock grants to him personally, stock buybacks to prop up the share price, and the bank’s own internal dark pool that trades in the stock of the bank — all while the Securities and Exchange Commission looks the other way.

What is particularly interesting about JPMorgan Chase’s stock buybacks is that the dollar amount increases consistently each year, almost guaranteeing a nice bump in the share price. That helps to explain why Jamie Dimon is the only CEO of a major Wall Street bank still at the helm of his bank since the financial crisis and despite the bank’s guilty pleas to three criminal felony counts leveled at the bank during his tenure by the U.S. Department of Justice. Just last month the precious metals trading desk at JPMorgan Chase was labeled a criminal enterprise by the U.S. Department of Justice and three of its traders were charged under the RICO statute, which is typically reserved for organized crime figures. (At least one more indictment in the same matter is expected to be handed down by prosecutors within the next 30 days according to a prosecutor’s remarks in a recent court hearing.)

Thomas Hoenig, then Vice Chair of the Federal Deposit Insurance Corporation (FDIC), sent a letter in July of 2017 to the U.S. Senate Banking Committee, making the following points:

“[If] the 10 largest U.S. Bank Holding Companies [BHCs] were to retain a greater share of their earnings earmarked for dividends and share buybacks in 2017 they would be able to increase loans by more than $1 trillion, which is greater than 5 percent of annual U.S. GDP.

“Four of the 10 BHCs will distribute more than 100 percent of their current year’s earnings, which alone could support approximately $537 billion in new loans to Main Street.

“If share buybacks of $83 billion, representing 72 percent of total payouts for these 10 BHCs in 2017, were instead retained, they could, under current capital rules, increase small business loans by three quarters of a trillion dollars or mortgage loans by almost one and a half trillion dollars.”

In an incisive report in March of last year by Lenore Palladino, Senior Economist and Policy Counsel at the Roosevelt Institute, corporate buybacks of stock work like this:

“Open-market share repurchases, often known informally as ‘stock buybacks,’ occur when companies purchase back their own stock from shareholders on the open market. When a share of stock is bought back, the company reabsorbs that portion of its ownership that was previously distributed among other investors. This reduces the amount of outstanding shares in the market, resulting in an increase in the price per share. The logic is that of supply and demand: when there are fewer supplies available to purchase, then an upward demand will increase share prices. In essence, then, stock buybacks raise share prices artificially. The value of the stock goes up as a result of a stock buyback, but without making the kinds of changes that would improve the actual value of the company—through more efficient production, new products, or better customer experience…”

Palladino has a pretty good idea of who is really benefiting from this market manipulation of share prices. She writes:

“One of the major problems with stock buybacks is that corporate executives often hold large amounts of stock themselves, and their compensation is often tied to an increase in the company’s earnings per share (EPS) metric. That gives executives a personal incentive to time buybacks so that they can profit off of a rising share price. Usually a majority of corporate executives’ pay is from ‘performance-based pay,’ which is either directly paid in stock or compensation based on rising EPS metrics (Larckar and Tayan). That means that the decision of whether and when to execute a stock buyback can affect his or her compensation by tens of millions of dollars. Despite these facts—that stocks constitute a substantial proportion of executives’ pay, and that stock buybacks provide a way for executives to raise their pay by millions of dollars—the rules that govern how the company authorizes stock buyback programs fail to account for this significant conflict of interest. The decision to authorize a new stock buyback program is made by the board of directors, including interested directors (those who hold significant shares of stock). The actual execution of buybacks is left to the executives and financial professionals inside the companies, with no board oversight as to the timing or amount of such buybacks, as long as the buybacks stay within the limit previously authorized. As long as directors are using their best ‘business judgment’ to authorize programs, there is no recourse to hold directors accountable for extremely high repurchase programs….”

It was just this past June that the Federal Reserve rubber-stamped the massive stock buybacks at the mega banks on Wall Street as part of its annual stress-tests. But three separate federal agencies have criticized the Federal Reserve’s stress tests as being seriously flawed.

Now the Federal Reserve is reaping the outcome of its own hubris. Just last week the Fed announced it would be boosting its money spigot to Wall Street to the tune of $690 billion a week. Just this morning, it flung $76.583 billion at the Wall Street liquidity crisis.

Despite all of this, Congress has yet to schedule a hearing on the Fed’s actions and drill down into the root causes of the crisis. Senator Elizabeth Warren has, however, sent a letter to U.S. Treasury Secretary Steve Mnuchin and given him until this Friday to respond with details on what is causing the liquidity problems.

end

Ted Butler talks about the return of the silver whale. There is no doubt a silver whale but they would never put their silver into an ETF like SLV. They would only be interested in real physical metal.Ted Butler is wrong in how this silver whale operates.

(ted Butler/GATA)

Ted Butler: The return of the silver whale?

Submitted by cpowell on Mon, 2019-10-28 23:16. Section: Daily Dispatches

7:15p ET Monday, October 28, 2019

Dear Friend of GATA and Gold:

Silver market analyst and market-rigging foe Ted Butler writes today that strong hands — maybe even “smart money” hands — seem to have been acquiring much physical gold and silver in recent months, suggesting that another smash down in prices will be hard to arrange. Butler’s analysis is headlined “The Return of the Silver Whale?” and it’s posted at GoldSeek’s companion site, SilverSeek here —

http://silverseek.com/commentary/return-silver-whale-17783

–– and at 24hGold here:

http://www.24hgold.com/english/news-gold-silver-the-return-of-the-silver…

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

The Return of the Silver Whale?

Theodore Butler

October 28, 2019 – 12:41pm

I’d like to follow up on an issue I first raised with subscribers last week, namely, the possible reemergence of the silver whale in COMEX silver futures. I want to preface this by openly acknowledging I may be premature in concluding a big buyer has begun to accumulate large quantities of silver futures contracts, but the matter is important enough, in my opinion, to warrant attention now. This can be a complicated issue, so please don’t hesitate to contact me with any questions you may have.

For all of the time (35 years) that I have alleged a price manipulation in silver, the nexus of the manipulation was the extremely large concentrated short position held by the 4 and 8 largest traders on the COMEX. These large traders on the short side are mostly banks, both foreign and domestic, with the largest short seller being JPMorgan for the past 11 years. Without this large concentrated short position, currently more than 96,000 contracts (480 million oz) for the 8 largest traders, there would be no commercial net short position at all and I would have absolutely no grounds to stand on for making allegations of a silver manipulation.

Concentration is a fancy term to describe a large position, either short or long, held by a very small number of traders. This is the term used by the CFTC to monitor each regulated futures market for signs of manipulation since a price manipulation is only possible with a concentrated position held by one or a few large traders. The agency has chosen to consider the positions held by the 4 and 8 largest traders for concentration purposes, but could have just as easily chosen 3 and 6, or 5 and 10, or similar numbers. To determine the concentrated long and short positions in every regulated futures market, some simple arithmetic calculations are necessary, but with a $2 calculator, it’s not difficult (hey, if I can do it, so can you).

Back in June, I began to notice something highly unusual, namely, an increase in the concentrated long position of the 4 largest traders. This wasn’t the first time I uncovered a concentrated long position in silver, as back in the late spring of 2018, I remember writing about an unusual buildup in the concentrated long position in COMEX silver. In hindsight, however, the buildup of the concentrated long position in 2018 was strictly the work of the managed money technical funds, some of which bought extremely large quantities of COMEX silver futures contracts as prices upwardly penetrated the key moving averages and just as quickly sold off those long contracts when prices subsequently fell sharply, incurring large losses.

But the buildup of the concentrated long position that began this June was different in that it did not appear to be technically motivated, as the position was largely completed before the key moving averages were decisively penetrated to the upside. The 20,000 contract increase in the concentrated long position of the 4 largest traders was largely accomplished at around a $15 price average by June 25, well before a price jump of more than $4.50 into early September.

At first, it looked like the concentrated long position was apparently liquidated by late August and were it not for highly unusual circumstances, the most plausible explanation was that the large buyer of at least 20,000 contracts had sold the position at a profit of $300 million or thereabouts. But, of course, there were highly unusual circumstances occurring as the concentrated long position declined by nearly 20,000 contracts (100 million oz) by Aug 20.

The highly unusual circumstance was that just as the concentrated COMEX long futures position was being liquidated, there was a near simultaneous explosion of physical silver deposits into a few of the world’s silver ETFs (exchange traded funds), mostly SLV, SIVR and the Deutsche Bank silver ETF, of 100 million ounces or more. This was the largest total increase in silver ETF holdings so quickly in history and it soon became clear to me that the increase in physical silver deposits in the ETFs was directly related to the liquidation of the COMEX concentrated long position.

While in no way did I anticipate that a big buyer would be insightful and masterful enough to first establish a 100 million ounce futures position on the COMEX with the intention of converting that futures position into physical silver by swapping the futures for shares of ETFs, I quickly concluded that was what transpired. And while the completed process is now largely out of sight and mind, what remains is that a large buyer now holds 100 million oz of physical silver at a cost basis of $15 that wasn’t owned prior to August.

The only way that someone could buy 100 million ounces of physical silver so cheaply and so quickly and without causing prices to explode (beyond the near $5 that prices did increase), was to first buy 20,000 COMEX futures contracts over a month or so and then convert the futures contracts into physical somehow.

It’s well known that trading and positioning in COMEX silver futures vastly exceed real world metal amounts. While the excessive short positioning is largely the cause of the price manipulation over the decades, the big buyer was smart enough to use this knowledge to his advantage. Even more masterful was the buyer knowing the futures position needed to be converted into physical to avoid regulatory hassles in the future which would come from being a large concentrated holder as prices rose substantially (think Hunt Brothers). By converting futures contracts into physical, the big buyer made it near-impossible for the regulators to someday force liquidation, as there is no law against how much physical material any entity may own. And for those wondering how it is possible to convert futures into shares of ETFs, it is a simple swap or arbitrage transaction capable of being executed by just about any prime broker/dealer.

With the 20,000 contract/100 million oz silver purchase completed, my attention is now on signs that a possible repeat of some magnitude may be underway. Over the past five reporting weeks, the concentrated long position of the 4 largest traders has increased by 7900 contracts to 52,774 contracts as of last Tuesday, Oct 22. That’s the equivalent of nearly 40 million ounces of silver. What makes the increase in the concentrated long position stand out is that silver prices have been flat to down over the past month. This strongly suggests that the new big long is not a technical fund type likely to sell and liquidate the added long positions on lower prices (as was the case in 2018).

This is further supported by the fact that the gross long position of the managed money trader category (the largest long category) has been reduced by about 11,000 contracts over the past 5 reporting weeks. It is also possible that the new bug buyer might be in the swap dealer category, the second largest gross long category which has been unchanged over the past month. It is more reasonable to speculate that the new big buyer is likely to buy more on lower prices, although that remains to be seen, of course.

The 4 largest longs in COMEX silver futures hold an average of just under 13,200 contracts each, although it is misleading to think all 4 large longs hold positions that are close to that. Based upon a variety of factors, including how positions are typically distributed and the holdings of the 5 thru 8 next largest longs (19,308 contracts combined), it is most likely that there is a wide difference between what the largest long and the fourth largest long holds; something along the lines of the biggest long holding 22,000 or more contracts and the fourth largest long holding around 8,000 contracts or less (since the average holdings of the 5 thru 8 next largest traders is just under 5000 contracts each).

Of course, it remains to be seen if the biggest silver long will continue to increase its position in the weeks to come or if the big buyer is the same buyer that emerged this June. Admittedly, I may be jumping the gun, but if this turns into a repeat of what occurred this summer, it could involve some big price changes ahead. For one thing, if the big buyer does continue to buy on lower silver prices, this presents significant buying competition for the big commercial shorts which intend to buy on the lower prices usually created by technical fund selling. Any move by the new big silver long in COMEX futures to convert to physical should have the same price impact as the conversion of futures to physicals over the summer.

Remember, for prices to sell off sharply from here the biggest potential technical fund selling in silver must come from new short selling, a proposition that hinges on these traders being dumb almost beyond belief, since they’ve never come out ahead collectively when shorting heavily. An unexpected new big buyer makes the buying plans of the big commercial shorts more complicated. How this all plays out in the near future is anyone’s guess, but if the early signs of a big, non-technical fund type buyer entering the fray are borne out, it’s hard to see how this could be bearish for silver prices. How much physical silver can be bought by anyone, aside from JPMorgan, until we hit the physical wall in which prices must explode? A simple way of looking at it would be that the 100 million oz purchase a few months ago led to a $5 jump in the price of silver. What would another 100 million oz purchase do?

On top of all this, there now appears to be unusual concentrated buying in gold as well. I focus more closely on silver, but the concentrated long position of the 4 largest traders in COMEX gold futures has increased dramatically over the past several months by 50,000 contracts since early June and by 35,000 contracts since early August. As of the last reporting week, the concentrated long position of the 4 largest gold traders was just under 127,000 contracts (12.7 million oz).

While not the largest concentrated long position on record for gold, the position has increased as the managed money gross long position has decreased, same as has occurred in silver. A big difference in gold is that the gross long position of the swap dealers has increased by 22,000 contracts where it has remained unchanged in silver (since Aug). Therefore, while the managed money gross long position in gold is much larger than the gross long position of the swap dealers, I’m more inclined to think the big new buyer in gold is in the swap dealer category, although that is a tentative conclusion at this point.

I know full well that the 50,000 contract increase in the concentrated long position in gold is greater than the 8000 contract increase in the silver concentrated long position, but the increase in gold covers 4 months, while silver’s increase occurred over the past 5 weeks. Plus 50,000 contracts in gold is equal to 5 million gold oz, while 8000 contracts in silver is equal to 40 million silver oz. In terms of notional dollar equivalents, of course, there is no comparison, as 5 million oz of gold is worth $7.5 billion, while 40 million oz of silver is worth $700 million. Finally, the increase in the concentrated long position in silver in June resulted in a conversion into physical metal, while the more recent increases in both silver and gold have yet to indicate signs of physical conversion. Possible physical conversions notwithstanding, the increases in the concentrated long positions in both silver and gold mandate continued scrutiny. At this point, I don’t sense a particular JPMorgan involvement, but will be sensitive to signs of that as well.

The emergence of a big buyer in silver and gold on lower prices complicates but doesn’t eliminate the necessity of a resolution of the extreme positioning imbalances in COMEX gold and silver futures. It also heightens the chance of a different outcome from the usual flush out of the managed money traders on lower prices, particularly if these traders hold off from aggressively adding new short positions. No guarantees, of course, but the growth of the concentrated long positions of late in both silver and gold just might portend a different outcome than the sharp selloff called for by the still-large commercial short position. That said, I wouldn’t expect the big shorts to simply roll over and play dead. The big shorts will either succeed in manipulating prices lower or they won’t, but if they do succeed I still believe it will be the last such rigged selloff.

Ted Butler

October 28, 2019

www.butlerresearch.com

iii) Other physical stories:

GOLD/SILVER

Chris Marcus on the shortage of Palladium. Guest: David Jensen

Palladium Shortage Offers No Easy Resolution

While gold and silver were in the news over recent months for their rally over the summer, one of the lesser-known precious metals has recently been skyrocketing.

Palladium’s price has soared over the last year, going from slightly under $900 in August of 2018 to just under $1,800 per ounce in October of 2019. Which has created an interesting market dynamic, in that the palladium market was already in a structural shortage. Which is now being further exacerbated by the fundamental problems in the broader economy.

Because as the Federal Reserve continues to intervene in the markets and create more digital credit, investors are increasingly turning towards the precious metals. Which is not to say that there’s a large segment of the market that’s flooded towards palladium in response to Federal Reserve policy, but at the same time the factors are not completely unrelated. As the appeal to anything that can’t be printed grows with each additional Fed dollar.

Of course what’s really interesting about the situation is that when industry demand overwhelms the supply of a commodity, the potential for extreme price moves increases. And should the fractional reserve leverage in the palladium market be exposed, would that draw attention to similar supply and demand dynamics that exist with silver and platinum?

It’s a market that few follow, yet that could hold some real clues for what happens to the rest of the precious metals spectrum. And fortunately palladium expert David Jensen was kind enough to join me on the show to break down the situation and explain what’s likely to happen next.

So click to watch the interview now!

Chris Marcus
October 25, 2019

end

Rob Kirby…

Admission of Conspiracy, Guilt and Collusion

Rob Kirby
Tuesday, October 29th

Having long been a researcher of the gold and silver markets I have become familiar with the labels, “conspiracy theorist”, “gold bug”, “tin foil hat” and a host of others – less flattering. Over the years I have listened to a host mainstream economic commentators incredulously lament, “gold bugs actually believe that people meet – in rooms – and conspire to suppress the price of precious metals”. These same mainstream economic commentators frequently scoff, “if such activities were actually being undertaken, surely someone from “officialdom” would go rogue and out the perpetrators. They frequently cite the lack of such “outings” as concrete evidence that market manipulations on the part of or complicity with regulators as being “hearsay” or the product of delusionals.

Well ladies and gentlemen; conspiracy theorists are deluded no more.

On Oct. 22, in the year of our Lord 2019 – it was none other than former chairman of the CFTC [Commodities Futures Trading Commission] Christopher Giancarlo admitted in an interview with CoinDesk,

“One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping he bitcoin bubble. And it worked.”

Giancarlo elaborated,

[that] “bitcoin’s dramatic price run-up in December 2017 was the first major bubble following the 2008 financial crisis.”

Not so fast Mr. Giancarlo; speaking of bubbles – may I direct your attention to the “run up” and collapse in silver prices circa 2011 and contrast that to the “run up” and collapse in bitcoin prices in 2018. Notice any similarities??? Have any of you ever heard the clichT, “birds of a feather fly together”? How about, “if it looks like a duck, it’s a duck”?

Quack, quack Mr. Giancarlo.

Here’s how Mr. Giancarlo further explained the rationale for the “take down” in bitcoin prices,

“Without shorts, a market has no pessimists. If you do believe it’s a ridiculous price but you don’t own, there’s no way to express that view,”

And if that wasn’t enough, he went on to add,

“If you don’t have that derivative, then all you’ve got are believers [and] it’s a believer’s market”

Are you a believer?

Just to underscore the degree of collusion and scope of conspiracy – Ole Giancarlo ended with this pearl,

“The CFTC staff handled it strictly on procedural grounds, but at the leadership level I communicated with Treasury Secretary [Steven] Mnuchin and NEC Director Gary Cohn, and we believed that, should bitcoin futures go forward, it would allow institutional money to bring discipline to the value of the cash market, and that’s exactly what happened.”

Well folks, here is what “procedurally occurred yesterday [Oct. 22/19] in what would be widely regarded as a non-descript , “normal day” in the silver market. 60 Thousand silver contracts were transacted on the COMEX exchange in New York. Each COMEX silver contract supposedly represents 5,000 ounces of silver. That means 300 million ounces of silver were sold in a 5 hour trading session. On Friday Oct. 25, 140 thousand silver futures were sold on COMEX in 5 hours – equating to 700 million ounces of silver sold in one trading session. Remember folks, the output of all silver mines in the world in one year is 855 million ounces.

“Gigolo” Giancarlo & Friends

I hereby rename St. Christopher of Giancarlo fame to that of “Gigolo” Giancarlo because of his penchant to “bleep” our Capital Markets. It seems he and his merry band of whore-meisters at the SEC and Treasury exhibit selective vision and amnesia when it comes to identifying and recounting “bubbles” and their defence of utilizing derivatives to produce desired outcomes, simply put by the Gigolo himself,

“..it shows the power of markets to bring discipline to prices.”

So there you have it ladies and gentlemen, when ANYTHING that stands as a credible monetary alternative to the almighty US dollar begins expressing itself or gaining widespread adoption – it is unmercifully ATTACKED by the derelict criminals who have debased the dollar. The criminals engaged in this activity – like Gigolo Giancarlo – literally “beat their chests” with a sense of accomplishment and pride in their dystopian handiwork. This amounts to high financial crimes against humanity and the perpetrators should be dragged into the World Court in the Hague by the scruffs of their necks and dealt with accordingly.

-END-

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.

Dawn Giel | Dan Mangan

Published 3:33 PM ET Tue, 20 Nov 2018 Updated 10:32 AM ET Wed, 21 Nov 2018CNBC.com

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.

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

Submitted by cpowell on Tue, 2019-03-05 14:40. Section: Daily Dispatches

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

…

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.7.0646/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN: 7.0638 /shanghai bourse CLOSED DOWN 25.87 POINTS OR 0.87%

HANG SANG CLOSED DOWN 106.50 POINTS OR 0.39%

2. Nikkei closed UP 106.86 POINTS OR 0.47%

3. Europe stocks OPENED ALL RED/

USA dollar index UP TO 97.86/Euro FALLS TO 1.1080

3b Japan 10 year bond yield: RISES TO. –.10/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.98/ 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:: 55.14 and Brent: 60.84

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.35%/Italian 10 yr bond yield UP to 0.99% /SPAIN 10 YR BOND YIELD DOWN TO 0.25%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.34: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.24

3k Gold at $1487.50 silver at: 17.71 7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 22/100 in roubles/dollar) 63.99

3m oil into the 55 dollar handle for WTI and 60 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 108.95 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 .9995 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1034 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 –0.35%

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 1.83% early this morning. Thirty year rate at 2.32%

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

6. TURKISH LIRA: UP TO 5.7364..

Record Rally Fizzles As Fed Meeting Begins, Investors Look For Reasons To Keep Buying

After the S&P hit a record on Monday – just as the Fed was set to cut rates for the 3rd consecutive time for reasons unknown – and world stocks hovering near a 15 month high underpinned by optimism over a U.S.-China trade deal after Trump said on Monday he expected to sign a significant part of a trade deal with China ahead of schedule but did not elaborate on the timing, S&P 500 futures edged lower, and European market slumped into a sea of red led by the FTSE 100 and telecom shares, while tech names dropped after Alphabet earnings missed.

Google parent Alphabet meanwhile slipped after missing analysts’ estimates for quarterly profit even though revenue growth topped expectations. A mixed bag of earnings also offset some of the chipper mood on European bourses, with the Stoxx 600 easing 0.4% after six straight sessions of gains, with energy producers among the biggest laggards. BP Plc shares declined as the driller said it’s unlikely to raise its dividend this year.

The European losses followed a mixed performance in Asia, where stocks gained for a fourth day, with materials and health care sectors advancing, following a rally in the U.S. equities that pushed the S&P 500 Index to a record. Japan’s Nikkei rose 0.4% to reach a 2019 high, while Shanghai stocks dropped after a warning against speculation on blockchain-related stocks depressed trading (one day after blockchain stocks soared). India’s Sensex Index rose the most and China’s Shanghai Composite Index being the laggard. India’s stock market reopened after a holiday and jumped on earnings optimism. Japan’s Topix Index closed at its highest level since Dec. 3. China shares retreated after a two-day gain, dragged by with Agricultural Bank of China and China Life Insurance Progress in U.S.-China trade talks helped boost risk-on sentiment in the region. U.S. President Donald Trump said the U.S. is ahead of schedule to sign a big portion of the China deal.

The U.S. trade representative also said Washington was studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire on Dec. 28, but analysts cautioned that trade tensions were far from over. “It isn’t yet clear that an interim deal that kicks trade worries down the road would be sufficient to allay concerns about the geopolitical, economic, earnings, and policy backdrop,” Mark Haefele, CIO at UBS Global Wealth Management.

“President Trump’s announcement of a Chinese commitment to buying $40–50 billion of U.S. agricultural products appears unrealistic – U.S. exports to China peaked at just $26 billion in 2012, when prices were much higher.”

With the S&P already at all time highs, investors are struggling to find new reasons to buy and extend the record-breaking rally in stocks. Optimism on the China trade front from President Donald Trump is aiding the bull case, and an anticipated Fed rate cut on Wednesday adds fuel. Still, recent data has come in mixed and while corporate earnings are topping estimates on average, the bar has been set low.

“What we’ve had happening in markets in the last few weeks is a lifting of that perceived uncertainty” about U.S.-China trade and Brexit, with central bank easing providing a lift, Sue Trinh, a global macro strategist at Manulife Investment Management, told Bloomberg TV. “The real risk is that we’re seeing a boost to asset prices but no real uptick in the real economy,” she said.

In rates, with markets in wait and see mode for Fed and trade developments, bond yields inched lower. Yields on Japanese 10-year bonds hit the highest since June and their Australian counterparts jumped almost nine basis points, while peers in the U.S. and Germany halted a surge that’s lasted several days. Germany’s benchmark 10-year bond yield hovered just below three-month highs hit on Monday, when yields across the single currency bloc rose sharply after the European Union granted Britain a Brexit extension.

Bonds regained some of previous session’s losses, with Treasuries bull-flattening and European sovereigns firmer. Treasury futures retreated from near session highs as U.K. pound rallied on a report that opposition Labour party will support PM Johnson’s proposal for an early election; Yields on two-year Treasury notes were treading water after hitting four-week highs on Monday at 1.668%.

Investors are still looking forward to a likely rate cut from the Federal Reserve on Wednesday, though the outlook was less clear beyond that (and Jefferies expects the Fed to surprise markets by not cutting this week at all, instead saving its firepower for December). “We expect the Federal Reserve will cut rates this week and possibly once next year, as insurance against a broad economic slowdown,” BlackRock’s chief fixed income strategist, Scott Thiel, said in a note to clients. The futures market has another 50 basis points of cuts priced in by June. Central banks in Japan and Canada also meet this week, with talk the former might ease further if only to prevent an export-sapping bounce in its currency.

The shift from safe harbors saw the yen weaken slightly, with the dollar standing at 108.89 yen after having reached its highest in three months. It was eyeing a key technical level at 109.31. The euro edged up to $1.1095 and was little changed against a basket of currencies at 97.782. The Bloomberg Dollar Spot Index advanced in run-up to Fed decision and U.S. jobs data.

As shown above, the pound first extended losses vs. G-10 peers, with PM Boris Johnson still struggling to schedule a general election, before spiking on news Labour supports a December election.

Oil held below $56 a barrel after Russia said it’s too early to talk about deeper output cuts, casting doubt on the ability of OPEC and its allies to balance supply against a deteriorating demand outlook. Spot gold hovered at $1,493 per ounce after having pulled away from last week’s top around $1,517.

Expected data includes the August Case Shiller report, October consumer confidence and September pending home sales. Meanwhile the BoE’s Carney is due to speak while as for earnings, the highlights include MasterCard, Merck, Pfizer, BP, GM and Amgen.

Market Snapshot

S&P 500 futures little changed at 3,034.50
STOXX Europe 600 down 0.4% to 397.57
MXAP up 0.5% to 162.50
MXAPJ up 0.2% to 521.68
Nikkei up 0.5% to 22,974.13
Topix up 0.9% to 1,662.68
Hang Seng Index down 0.4% to 26,786.76
Shanghai Composite down 0.9% to 2,954.18
Sensex up 1.6% to 39,887.04
Australia S&P/ASX 200 up 0.07% to 6,745.42
Kospi down 0.04% to 2,092.69
German 10Y yield fell 1.4 bps to -0.346%
Euro down 0.2% to $1.1083
Italian 10Y yield rose 5.1 bps to 0.662%
Spanish 10Y yield fell 1.5 bps to 0.292%
Brent futures down 0.5% to $61.24/bbl
Gold spot up 0.1% to $1,494.36
U.S. Dollar Index up 0.1% to 97.84

Top Overnight News

Boris Johnson is pushing for an election to unlock Brexit after failing for a third time to trigger a snap poll. He remains doggedly determined to secure a third general election in a tumultuous four years. On Tuesday, he will try again to persuade reluctant members of Parliament
House Speaker Nancy Pelosi moved the Democrats’ impeachment inquiry of Trump into a new phase Monday that signals the public soon will get a look at the witnesses and evidence being assembled to build a case against the president
China’s third-quarter slowdown continued into October, with only a few signs of stabilization evident amid the weakest pace of expansion in almost 30 years
New Zealand’s Treasury Department warned the finance minister that S&P Global Ratings could remove its positive outlook on the country’s AA credit rating following the government’s so-called Wellbeing Budget, which ramped up social spending, a document obtained by Bloomberg shows
Consumer prices in Tokyo rose at the same pace in October even after a sales-tax hike, underscoring the challenge the Bank of Japan faces in stoking inflation as it prepares for a review of price strength later this week
Oil held below $56 a barrel after Russia said it’s too early to talk about deeper output cuts, casting doubt on the ability of OPEC and its allies to balance supply against a deteriorating demand outlook
PBOC skipped open-market operations again Tuesday, effectively draining 250 billion yuan from the financial system as funds come due. Fiscal spending at the end of the month will offset maturities, it said in a statement
Global finance and banking chiefs used an investment forum in Saudi Arabia to renew a warning that central banks have run out of firepower to fight the next economic downturn. Billionaire hedge-fund founder Ray Dalio said the global economy was facing a “scary situation”
Macquarie Group Ltd. is cutting about 100 equity research and sales jobs in London and New York, according to people familiar with the situation

Asian equity markets trade mixed as the region just about took impetus from Wall St where the S&P 500 and NASDAQ 100 notched record highs after US-China trade optimism was further fuelled by comments from US President Trump that suggested a signing of the phase 1 deal could be ahead of schedule. ASX 200 (U/C) was lifted at the open although some of the gains were later faded amid losses in commodity stocks due to lower oil prices and after the precious metal gave up the USD 1500/oz level, while Nikkei 225 (+0.5%) briefly reclaimed the 23000 milestone for the first time in over a year as it benefitted from a more favourable currency. Conversely, Hang Seng (-0.4%) and Shanghai Comp. (-0.9%) were the laggards despite the current backdrop of heightened trade optimism, as participants digested a slew of earnings and after the PBoC refrained from liquidity operations which resulted to a substantial CNY 250bln liquidity drain. Finally, 10yr JGBs tracked the losses in T-notes amid gains in stocks and with the Japanese benchmark at a yearly high, although some of the losses were recouped following a predominantly stronger than previous 2yr JGB auction results.

Top Asian News

Hedge Funds Fight for Asia Talent by Boosting Bonuses, Training
Aramco to Trade on Saudi Exchange on Dec. 11, Arabiya Says
Forget Zero Fees, Robots. One Broker Doubles Down on Humans
HSBC’s Quinn Says Economics of Europe ’Do Not Work’ for Banks

European equities have drifted lower after a relatively uninspiring open [Eurostoxx -0.3%] following on from a mixed APAC. Bourses are broadly in the red and remain choppy with no clear underperformer, albeit the region remains cautious ahead of this week’s risk events. Sectors are mostly in negative territory with the exception of Healthcare, which is buoyed by Fresenius SE (+4.5%) and Fresenius Medical Care (+5.8%) after earnings topped analyst estimates. On the flip side, the energy sector bears the brunt of softer energy prices coupled with overall downbeat numbers from oil-giant BP (-2.2%) who reported a 41% drop in Q3 net profits due to lower upstream earnings, softer oil prices, maintenance and weather impacts. Individual movers are largely earnings orientated, Grifols (+3.2%) benefit following firm earnings coupled with a EUR 5.3bln refinancing programme whilst to the downside, Stora Enso (-8%) shares plumbed the depths after disappointing earnings in which the Co. cited weak Q4 demand, thus peers Smurfit Kappa (-0.5%) and Mondi (-0.3%) initial fell in sympathy but has since trimmed losses. Finally, Swedbank (-3.8%) sunk after Estonian Financial Inspector and Sweden’s FSA opened sanctioning cases regarding the Co’s alleged money laundering. Looking ahead to US earnings, Dow listed Merck & Co (2.1% weighting) and Pfzier (0.9% weighting) which may have follow-through effects to European peers.

Top European News

MorphoSys Drops Most Since January On Trial Discontinuation
Swedbank Faces Bigger Risk of Fines as Watchdog Weighs Sanctions
Salvini Could Be Back to Shake Up Italy Sooner Than You Think
LVMH’s Bid For Tiffany Puts Pressure on Rivals to Respond

In FX, GBP – The Pound was initially precarious after the latest Parliament rejection of a motion to hold a GE on December 12 and ongoing wrangle to find an alternative date that might garner enough backing between Downing Street and those opposition parties that are likely to vote in favour of a snap poll. However, Labour subsequently giving their support to a December General Election has generated Sterling strength with Cable now firmer on the day with a high circa 1.2870 thus far.

USD – Sterling weakness and some contagion has nudged the DXY a tad closer to 98.000 ahead of more US data and day 1 of the October FOMC meeting that is widely expected to culminate in a 3rd 25 bp rate cut, but probably highlight ongoing divergence between Fed policy-makers resulting in less clarity over forward guidance.
EUR/CHF/NZD/CAD – All softer vs the Greenback, as the single currency remains top heavy around 1.1100, but underpinned ahead of Fib support at 1.1065, while the Franc continues to pivot 0.9950, Kiwi straddles 0.6350 and Loonie meander either side of 1.3050.
AUD/JPY – Bucking the overall trend, albeit marginally and also largely rangebound awaiting this week’s big events that kick off from Wednesday. The Aussie is still outpacing is US and NZ peers as Aud/Usd hovers around 0.6850 and Aud/Nzd just shy of 1.0800, but not deriving much impetus via comments from RBA Governor Lowe broadly reaffirming the on hold for now with an easing bias stance. However, looming CPI data could well be influential ahead of housing metrics on Thursday and PPI the following day. Elsewhere, the Yen has pared some losses from a test of 200 DMA support at 109.06 and decent option expiry interest from 109.00 to 109.10 (1.6 bn) even though Japan Post Insurance is eyeing less JGB holdings in the October-March period.
NOK – The Norwegian Crown is underperforming and only just holding off fresh record lows vs the Euro circa 10.2575 amidst softer crude prices and Norges Bank rhetoric underlining that rates are likely to remain unchanged for the entire forecast horizon, or coming period to quote Nicolaisen verbatim.
EM – The Rand has rapidly depreciated in wake of outlines of the SA Government’s plan for Eskom that did not include debt restructuring and propelled Usd/Zar up sharply towards 14.7200 vs near 14.5300 at one stage.

In commodities, WTI and Brent are softer this morning but once again not by any significant magnitude trading with losses of less that USD 1/bbl at present. News flow for the session thus far has again been light though this is likely to pick up from tomorrow via data and Central Bank meetings, including FOMC. For the rest of the session the main highlight will be tonight’s APIs which previously printed a build of 4.51mln and was notably not corroborated by the subsequent EIA metrics showing a draw of 1.69mln. Elsewhere, source reports note that Saudi Aramco is to announce the price range on November 17th and begin an IPO subscription on December 4th, aiming to trade on the Saudi Market from December 11th. Further, Nigeria’s new Energy Minister was on the wires this morning, albeit provided little by way of new substance. Elsewhere, gold prices remain tentative within a tight range, as is usually the case ahead of the Fed’s monetary policy meeting; however, the metal has just seen a modest sell off. Meanwhile, copper trimmed some of yesterday’s losses, again on the lookout for risk events. Finally, Dalian iron ore futures ended the day lower by 1.7% amid China demand woes.

US Event Calendar

9am: S&P CoreLogic CS 20-City MoM SA, est. -0.1%, prior 0.02%; 20-City YoY NSA, est. 2.1%, prior 2.0%
10am: Conf. Board Consumer Confidence, est. 128, prior 125.1; Present Situation, prior 169; Expectations, prior 95.8
10am: Pending Home Sales MoM, est. 0.8%, prior 1.6%; NSA YoY, est. 3.55%, prior 1.1%

DB’s Jim Reid concludes the overnight wrap

I got home last night to watch the latest big U.K. Parliamentary vote and found my 4yr old daughter hogging the TV and watching “Frozen”. Given the gridlock at Westminster at the moment this seemed pretty apt. There is a reasonable chance the ice will melt today though as the U.K. government reacted to not getting the necessary 2/3rds of Parliament vote for a General Election on December 12th under the FTPA by suggesting they will propose a single line bill today for an election on the same date. This will only require a simple majority.

The Lib Dems and SNP have already indicated that they would support a vote for December 9, so it seems like the two groups are just haggling over the exact date and details at this point. The opposition parties prefer an earlier poll to ensure that students are more readily able to vote and to further ensure against Johnson bringing his WAB to another vote before the election. The Government conceded last night that they wouldn’t progress the WAB before an election but trust is so low that there might need to be a way of guaranteeing this before the two smaller opposition parties agree to it. The main opposition Labour Party are seemingly opposed to the election but it wouldn’t surprise me if they voted for it if the other two parties found a way to support it. It would be bad optics to be opposed when all other main parties backed it. Even though Labour’s official position was to abstain last night 38 MPs still voted against it. So by this time tomorrow we could have an election date…. but then again it’s easily possible we don’t.

Away from Westminster and over in markets, with the distraction of the big macro events of the week not kicking in until tomorrow onwards, there was a new record high for the S&P 500 to get excited about. Indeed the index took out the previous July high to close 0.45% above it and +0.56% higher on the day – the fifth positive day in the last six. Actually since the October 8th close we’ve had 10 positive days out of 14, including each of the last four sessions. At the start of this three-week rally, three positive catalysts coincided: Johnson and Varadkar held their positive bilateral meeting; Chair Powell announced that the Fed would resume securities purchases to grow its balance sheet; and the US and China agreed on “phase one” of their trade deal. That trifecta of positive developments has certainly underpinned the recent rally. We certainly need the data to catch up now to justify the strength.

Back to yesterday and it was the tech sector which really led the charge after the NASDAQ rose +1.01%. It’s not quite back at the July record highs just yet but yesterday’s move puts it within 0.05%. Meanwhile, the NYSE FANG index nudged up +1.02 % and the trade-sensitive semiconductor index rose +1.75%. That is a +6.41% move over the last 3 sessions for semiconductors, the best stretch since July. Prior to this, the STOXX 600 closed up +0.25% which means the index has closed higher for 6 consecutive sessions. The last time it did that was back in July as well.

Credit markets also had a decent day with US HY spreads -3.5bps tighter. The flip side of the risk off move was a decent selloff across sovereign bond markets. Indeed 10y Treasuries sold-off +5.1bps to close at 1.846% while 10y Bunds closed up +3.0bps at -0.332%. It was the end of July that we last saw Bunds back at these ‘lofty’ levels, which was also the last time that 20-year bond yields were positive, though the whole curve is still currently negative out to the 20 year tenor. Similarly, gold was down -0.82% while safe haven currencies also broadly underperformed, with the yen down -0.29% to its weakest level since June. Argentinian assets were pressured following the weekend election results, with the benchmark MERVAL index down -3.90% while yields on 10-year international bonds rose +95.0bps. Finally, bitcoin rose another +10.02% to take its two-day move to +26.52%, the most since May after the China blockchain headlines we mentioned this time yesterday.

Dictating the US tempo once again were trade headlines, this time the positive snippets from President Trump about the US being “ahead of schedule” to sign a deal. Some more idiosyncratic stock specific news also played a part. Of note was a +4.28% gain for AT&T following a board reshuffle and announcement to pay down debt. Microsoft climbed +2.46% after it won a $10 billion government contract to provide cloud computing services to the defense department. Its main competitor for the contact, Amazon, saw shares gain +0.89%, lagging the broader tech move.

Back in Europe, ECB President Draghi’s last week at the helm started with his final scheduled remarks at an honorary farewell ceremony in Frankfurt. He once again call for coordinated fiscal stimulus in the euro area. In front of the heads of government from Germany, France, and Italy, Draghi said that “we need a euro-area fiscal capacity of adequate size and design: large enough to stabilize the monetary union (…) uncoordinated policies are not enough.” By the end of the week he will handoff the institution to Christine Lagarde, who has also called for fiscal policy to support monetary efforts in recent years.

Meanwhile, after yesterday’s surge in China’s blockchain related stocks after comments by Chinese President Xi Jinping, the People’s Daily is carrying a commentary this morning saying that “The future is here for blockchain, but we need to stay rational.” This came as more than 70 tech shares surged yesterday by the daily limit in Shanghai and Shenzhen.

This has perhaps helped Chinese and Hong Kong’s bourses to trade lower this morning with the Shanghai Comp (-0.43%), Shenzhen Comp (-0.27%) and Hang Seng (-0.46%) all down. The Nikkei (+0.43%) is trading higher while the Kospi (-0.11%) is lower. As for FX, most Asian emerging market currencies are trading up this morning on trade deal optimism with the Chinese yuan up +0.14% to 7.0584 while the South Korean won is leading the advances by gaining +0.51%. 10y USTs yields are up +1.2bps, with 10y JGBs also up +1.6bps to -0.124% – the highest level since June this year. Elsewhere, futures on the S&P 500 are trading flattish.

Meanwhile, after markets closed last night, Alphabet shares fell -1.63% after profits fell year-on-year and missed expectations by around 10%. Much of the miss was due to higher capital spending, as the company focuses on expanding its cloud computing and machine learning business lines.

Switching play and coming back to the elections in Germany over the weekend, our economists highlighted in their note yesterday that the results have increased the probability of an early GroKo demise, but the team still think that the status quo forces are more likely to prevail; meaning that the GroKo treaty will be the ultimate arbiter in case of (more likely) conflicts. Calls from within the SPD to move to the opposition will not fall silent, but the SPD does not really have strong incentives to leave the coalition and trigger new elections, given their weakness in current polls. See our colleagues’ full summary here .

In other news, with the big data releases reserved mostly from tomorrow onwards – including payrolls on Friday – the warm up prints yesterday didn’t really move the dial. That said the advance goods trade balance in the US did provide a bit of food for thought following a narrowing in the deficit to $70.4bn in September from $73.1bn in August. That included drops in both imports and exports, with the latter down around 3% yoy. This should be a small negative for the FOMC statement on Wednesday given weakness in exports growth. Elsewhere, wholesale inventories were down surprisingly last month (-0.3% mom vs. +0.2% expected) while finally the Dallas Fed manufacturing survey was weak in October, printing at -5.1 (vs. +1.0 expected). That’s the weakest since July although it’s worth noting that the future expectations index did improve.

Prior to this, in Europe the September M3 money supply data showed a slowdown of money creation from 5.8% to 5.5% yoy. Credit growth also slowed and our economists noted that this resulted in the credit impulse turning negative for September having been in positive territory since April 2019.

To the day ahead now, which this morning includes October consumer confidence in France and September money and credit aggregates data in the UK. This afternoon in the US we have the August S&P CoreLogic house price index data, October consumer confidence and September pending home sales. Meanwhile the BoE’s Carney is due to speak while as for earnings, the highlights include MasterCard, Merck, Pfizer, BP, GM and Amgen.

end

3A/ASIAN AFFAIRS

I)MONDAY MORNING/ SUNDAY NIGHT:

SHANGHAI CLOSED DOWN 25.87 POINTS OR 0.87% //Hang Sang CLOSED DOWN 106.50 POINTS OR 0.39% /The Nikkei closed UP 106.86 POINTS OR 0.47%//Australia’s all ordinaires CLOSED UP 09%

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

b) REPORT ON JAPAN

3 C CHINA

HSBC LONDON/HONG KONG

Although London based, HSBC receives 90% of its revenue from Hong Kong. Today we witness their profits plunge by 24% and the chaos inside Hong Kong puts these guys in trouble with their derivatives

(zerohedge)

HSBC CEO Vows To “Remodel” Bank After Profits Plunge 24%

With its largest and most important market, Hong Kong, in chaos, it’s hardly a surprise that HSBC, the nominally British lender which has its largest business footprint in Asia (particularly HK) reported a double-digit slump in pre-tax profits during Q3.

The bank said net profit slumped 24% YoY to $3 billion, falling far short of what analysts had anticipated, according to the FT.

With few easy alternatives, and the situation in Hong Kong (particularly its housing market) looking increasingly uncertain, HSBC’s interim CEO Noel Quinn unveiled plans to “remodel” large parts of the bank, according to the FT. Even amid fears that the HK unrest would hurt the bank, Quinn said its results in the region had been “resilient” in the face of these fears.

Surprisingly (or maybe not), the weakness is coming from somewhere else: Europe.

And so begins another restructuring initiative at another troubled European lender. Like Deutsche Bank, which is planning to shutter unprofitable businesses and re-focus resources, cutting what’s expected to be nearly 20,000 jobs in the process, HSBC will likely need to take drastic steps to truly reorient its business.

Though Quinn is only interim CEO, it looks like the bank means business with this initiative: The FT reported earlier this month that the bank’s plan to cut costs and divest businesses could lead to 10,000 job cuts.

But on Monday, the bank took this a step further, and formally abandoned its main profitability target: to generate a return on tangible equity of more than 11% next year (it was 6.4% for Q32019).

The bank blamed a “challenging” environment that meant “the outlook for revenue growth is softer.”

In a video presentation posted to HSBC’s website, Quinn said “there are parts of our portfolio that are underperforming in terms of return. We need to urgently address that, move capital from those low-return portfolios and move it into the higher-return, higher-growth opportunities.”

He added that the bank is still working on “detailed plans to make that happen.”

We don’t know what those might be yet, but we’d venture a guess that thousands more European banking jobs will disappear before this is all over. And HSBC just might rethink its decision to remain domiciled in the UK.

The bank’s HK-traded shares slumped more than 3% after its earnings report, adding to a double-digit decline over the past six months.

191028 3q 2019 Earnings Release by Zerohedge on Scribd

end

HONG KONG/CHINA

This is not good. Jason Wong a student is the leader of the pro democracy movement in Hong Kong. He has just been barred from running in their next elections

(zerohedge)

Beijing Bars Student Activist Leader Joshua Wong From District Council Race

In the latest Beijing-backed crackdown on the Hong Kong pro-democracy movement and its leaders, many of whom have increasingly faced arrest and rumors about lengthy prison terms, Joshua Wong, the student activist who emerged as a leader with international profile back in 2014, has been barred from running for Hong Kong’s District Council.

In a Tuesday letter, Wong was informed that his candidacy in the District Council elections had been declared invalid in accordance with the Basic Law, Hong Kong’s constitution. In a separate statement, which didn’t name Wong, officials said support for Hong Kong self-determination was inconsistent with the law.

In a response, Wong blamed the Hong Kong government for kowtowing to Beijing. He slammed the “politically driven” decision, another example of the government curbing the liberties of every-day Hong Kongers, according to SCMP.

“The ban is clearly political driven,” he said. “The so-called reason is judging subjectively on my intention to uphold the Basic Law. But everyone knows the true reason is my identity – Joshua Wong is a crime in their mind.”

“I have never actively advocated independence as an option, but she twisted and wrongly interpreted my remark,” he said, adding that Beijing had clearly exerted great pressure on Hong Kong officials, demonstrated by the original returning officer taking sick leave and its mouthpiece People’s Daily calling him an “independence leader”.

Wong believed his advocacy of the Hong Kong Human Rights and Democracy Act in the United States was probably the core reason of the ban in Beijing’s mind.

“But they have to pay the price in the international community…my disqualification will only trigger more people to take to the streets and vote in the coming elections,” he said.

Wong also said he would consider challenging the decision after November’s district council elections.

“Under the Basic Law, the allegiance requirement does not mention district council in the legislation,” Wong said. “So how much power or legal basis does a returning officer of the district council – which is a consultative body – have to carry out political vetting? This is critical.”

According to WSJ, this year, the district council seats up for election make up almost all of the city’s 18 local councils. Wong is part of a wave of pro-democracy candidates who are challenging establishment members, hoping the anti-government atmosphere will help them win big gains.

District council members effectively act as liaisons between the community and the legislature. They act as representatives on issues of government programs and public facilities. But they don’t make laws, or have any kind of veto power. The HK legislature isn’t due to hold an election until next year.

District councilors also hold close to 10% of the seats on the 1,200-member election committee that chooses Hong Kong’s leader.

Wong has been intensely persecuted since emerging as the leader of the 2014 Umbrella Movement protests. Like the contemporary pro-democracy fever, the 2014 movement also began as something else: Wong and several of his classmates took to the streets to hand out flyers objecting to new classes in Hong Kong’s public schools intended to indoctrinate students about the Communist Party. That later merged with the backlash to Beijing’s election tampering, and Wong, still in high school at the time, found himself the leader of a student army of protesters.

He has been refused passage in several Asian countries, including Malaysia, as local governments were wary of angering Beijing. He has been repeatedly arrested – recently by a gang of plainclothes-wearing police, who grabbed him and hurried him into an unmarked police van.

Interestingly, not all of the pro-democracy activists were banned from the race. Eddie Chu Hoi-dick, a pro-democracy lawmaker previously barred from running in a village representative election due to his support for “separatism” (something that Wong is also now being accused of) was given the all-clear to run in the elections.

end

4/EUROPEAN AFFAIRS

ITALY

a must read…

(COURTESY GATESTONE)

Italy: Mass Legalization Of Migrants Is Suicidal

Authored by Giulio Meotti via The Gatestone Institute,

Describing Italy, Gerard Baker, former editor in chief of the Wall Street Journal, recently wrote:

“In much of the country… depopulation is advancing. Moving into the empty spaces have been waves of immigrants, many from North Africa and the Middle East. The migrants have filled vital gaps in the labor force, but the transformation of Italian towns has left increasing numbers of citizens resentful, fearful for their identity.”

He went on to call this transformation, “a kind of pioneer of Western decline”. Already, the effects of mass migration are becoming dramatically visible in many of Italy’s elementary schools. In just the last few days, examples from two large cities have surfaced.

The first was in Turin, Italy’s fourth largest city, where there are now elementary school classes with not even one Italian child:

“In all classes, school principal Aurelia Provenza explained, the percentage of foreigners is very high, equal to 60% of the total number of pupils”.

The second example comes from Bologna. “In my son’s kindergarten there is a serious integration problem, I have to take him away,” says Mohamed, a 34-year-old of Moroccan origin who arrived in Italy when he was 4 years old.

“I don’t want to be seen as a racist myself as I am Moroccan, but the municipality must know that there is no integration by putting more than 20 foreign children into classes”.

At the time of enrollment, Mohamed explained, they had seen drawings with flags of all nationalities in the school, but, “when we arrived at school the first day, we found ourselves in a class with all foreign children. The teachers are even struggling to pronounce the children’s names.”

We have now reached a paradox: immigrants are taking their children out from classes where, under multiculturalism, segregation is surging. “School performance falls when classes exceed 30% foreigners; it is a crucial threshold that should be avoided or otherwise monitored”, said Costanzo Ranci, professor of Economic Sociology, and author of a recent report.

Both of the above cases have been the subject of much public debate. In Italy, last month, the number of migrants arriving from Africa surged, after having declined for most of the last two years. The migrant reception center on the island of Lampedusa, the front line of Italy’s migration crisis, is now in a state of “collapse” due to the rapidly rising number of arrivals. The entire south of Italy is now trying to deal with migrants.

According to projections from the UN Population Division, the population of sub-Saharan Africa will double in 30 years, adding an additional 1 billion people and accounting for more than half the global population growth between now and 2050. Italy, which already has the third-largest population of migrants in Europe, is undergoing an “unbearable” crisis, and now faces the real risk of an “Africanisation“, as Stephen Smith called it in his book, The Scramble for Europe.

There are many voices of concern. Cardinal Robert Sarah, author of a new book, The Day Is Now Far Spent, about the crisis of the West, compares the current influx of migrants to the invasions of barbarians that brought down the Roman Empire. If Europe’s policies toward migrants do not change, Sarah warns, Europe will be “invaded by foreigners, just as Rome was invaded by barbarians.”

“If Europe disappears, and with it the priceless values of the Old Continent, Islam will invade the world and we will completely change our culture, anthropology and moral vision”.

An Italian think-tank, Fondazione Fare Futuro, also just predicted that due to mass migration and the different birthrates of Christians and Muslims, by the end of the century half of the population of Italy could be Muslim. In just ten years, the number of migrants in Italy has surged by 419%.

The native Italian population is already shrinking rapidly. Without the foreigners, every year native Italians would die (615,000) at twice the rate of births (380,000). Eurostat, the European official statistics office, calculates that by 2080, one-fifth of Italians will come from migration background (11 million of Italy’s 53 million).

A recent report by the Italian national statistics office noted that the country is in a “demographic recession” not seen since the World War I, and 250,000 young Italians have fled the country. “Italy exports young graduates and imports migrants”, wrote Il Giornale. Italy is expected to lose 17% of its population by 2050, and — even without immigration — half by the end of the century.

A Caritas-Migrantes report recently documented that since 2014, the decrease in the number of Italians is equivalent to the population of a large Italian city, say, Palermo (677,000). The dramatic decrease, however, has so far been offset by migrants.

Immigration is once again becoming a political question. Just weeks after forming a government with the Five Star Movement, the Democratic Party is advancing the so-called “birthright citizenship” — a pledge to reverse the stringent migration policy of former Interior Minister Matteo Salvini. In Latin this right to citizenship is called ius culturae. The new law would allow foreign minors under the age of 12 to become citizens after just five years at school in Italy. The bill is being advanced by Laura Boldrini, a former president of Italy’s Parliament, who famously said:

“The lifestyle of the migrants will be ours”.

Will Italians, as in those elementary schools, integrate into the new culture of the migrants?

The current government knows perfectly well what is at stake. “From now to 2050 and 2060, we will have to face an epochal question from 50 to 60 million people who will arrive in the Mediterranean world”, MP Nicola Morra, MP in the governmental majority, recently said.

The government is literally gambling with Italy’s future.

Italy is the European country most exposed to migration pressure from Africa. With a native population already shrinking, if Italy is open to the mass legalization of migrants, we should be at least be aware that it will be culturally suicidal.

END

Labour now backs Johnson for a December election. He has 2/3 ‘s of the vote but still there is squabbling. He should get it done

(zerohedge)

Cable Spikes As Labour Backs Johnson’s Bid For December Election

After weeks of uncertainty surrounding whether the opposition would join with Boris Johnson to end the Brexit impasse by calling for a general election this year, a deal has finally been reached, and it looks like Johnson will get the 2/3rds majority he needs to dissolve Parliament and call for elections.

Cable, which had been under pressure Tuesday morning as the greenback rallied, spiked on the news, to trade at $1.2840, compared with $1.2807 earlier in the session.

As was foreshadowed on Monday when shadow cabinet ministers admitted that Labour had been “snookered,” the party finally capitulated and agreed to back Johnson, with leader Jeremy Corbyn agreeing to another embarrassing U-turn. Corbyn said his No. 1 condition was that a no-deal Brexit be off the table (this is already the case thanks to the Benn Act), Bloomberg reports.

Does this mean the election is a sure thing? Not quite. Rather, a period of squabbling over the timing of the vote is about to begin, as different parties have expressed support for different dates.

Some, including Philip Hammond, accused Johnson of using the Brexit process to his political advantage by pushing for a vote ahead of Brexit, instead of immediately after. Hammond said Tuesday that Johnson’s general election plan is an attempt to “fundamentally shift the party further to the right.” The move would “encourage party entryism” (given all the moderate tories who have been expelled from the party, and can now be replaced by party hardliners). Hammond, now an independent MP, added that voters shouldn’t blame Parliament for holding back Brexit, since it was Johnson himself who passed over the chance to get his deal passed, since MPs had supported the deal, but only asked for more time to look it over, according to the Guardian.

After losing a vote to call an election on Monday, Johnson said his deal is now off the table until a vote is held, threatening eternal gridlock unless his opposition parties agreed to the vote.

“Parliament signaled very clearly it was willing to progress this bill. It is the government that has blocked it, and the government should now stop blocking Brexit, allow parliament to get on with the Brexit bill and deliver a Brexit by the end of November,” Hammond said.

There’s also the issue of opposition support for keeping settled EU citizens on the electoral register.

Tom Newton Dunn

✔@tnewtondunn

· 59m

As predicted yesterday when shadow cabinet ministers admitted Labour was “snookered”, Corbyn U-turns spectacularly to back a December election. This afternoon’s Commons dust up will now all be about amendments to decide the date and terms.

Tom Newton Dunn

✔@tnewtondunn

Is a December GE now locked on? Not quite yet. I’m told Labour will back amendments to put settled EU citizens on the electoral register. IF SNP/LDS do too, the Govt could yet pull the bill… so they may not.

A marathon session of debate in Parliament is now about to begin, though it looks like Johnson will ultimately have the votes.

YouGov

✔@YouGov

With Labour reportedly now willing to back a general election, it looks like we’re set for an election in December. Our most recent voting intention poll had the parties on:

Con – 36%
Lab – 23%
Lib Dem – 18%
Brexit Party – 12%
Green – 6%
Other – 6%https://yougov.co.uk/topics/politics/articles-reports/2019/10/29/political-trackers-24-25-oct-update?utm_source=twitter&utm_medium=website_article&utm_campaign=political_trackers_25_oct_2019 …

Cabinet minister Jacob Rees-Mogg said the government wants the election bill to pass all House of Commons stages on Tuesday, meaning that the debate over the bill could continue “until any hour.”

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Syria,Turkey/Russia

(zerohedge)

Russian Patrol Comes Under Turkish Mortar Attack In Northern Syria

Turkey has attacked a Russian military police convoy patrolling a northern Syria border area near Turkey, according to local correspondents and video of the incident’s aftermath.

Unconfirmed Syrian Kurdish media reports say at least one Russian soldier who was part the military police (MP) patrol was injured after the convoy came under fire by Turkish artillery fired from Turkey’s side of the border in an area called Derbisiye. A senior foreign correspondent for the Telegraph also posted a video of the attack’s aftermath:

Early unconfirmed reports say there may be other casualties including two journalists and four civilians possibly injured in the attack on the Russian police convoy.

Kurdistan24 News journalist Akram Salih described of the incident that the Turkish army entered the Syrian side of the border at which point the mortar was fired at the Russian side.

Local reports say Turkish sources are angered they were not informed about a Russian military police visit to the border, while Turkish media is denying that any mortar shelling took place altogether.

Following the White House’s ordered draw down of US forces from border areas where they were embedded with Syrian Kurdish forces earlier this month, Russian military patrols moved in, as part of a Turkish ‘safe zone’ agreement brokered between Putin and Erdogan.

*Russian military police patrol in northern Syria. Image source: AP*

Turkish forces now no doubt see the Russian patrols as ‘protecting’ the Kurdish militias, just as the US did before, resulting in high tensions – including this latest reported mortar attack – whether intentional or inadvertent.

Ankara is controversially pushing to carve out a 30km buffer zone in northeast Syria. Ironically, though Erdogan has claimed the Turkish military will root out ISIS, it must be remembered that this weekend ISIS terror leader Abu Bakr al-Baghdadi was killed merely 7km from the Turkish border in Idlib.

end

LEBANON

(zerohedge)

“We Need A Shock”: PM Hariri Resigns Amid Protests, Lebanon’s Dollar-Bonds Plunge

After twelve days of massive anti-corruption protests essentially bringing life in Lebanon to a standstill, with banks and schools shuttered and major roads blocked, Lebanon’s Prime Minister Saad Hariri says he is ready to submit his resignation.

In an address to the nation at 4pm Tuesday afternoon (local time), Hariri confirmed he’s submitting his government’s resignation to President Michel Aoun after rumors of his stepping down swirled all day. Hariri said he had “reached a dead end” amid the protests which have reportedly involved one million people, or up to 25% of Lebanon’s total population, and further called on “all Lebanese to protect civil peace”.

*Prime Minister Saad Hariri, via Al Jazeera*

A reform package proposed by the prime minister last week, which promised to enact delayed economic reforms and tackle widespread corruption, failed to appease the cross-sectarian demonstrations that had been sparked earlier this month by a proposed tax increase after public coffers were depleted.

“We have reached a deadlock and we need a shock in order to brave through the crisis,” Hariri said in a televised statement from the capital, Beirut.

“I’m heading to the presidential palace to tender the resignation of the government … This is in response to the will and demand of the thousands of Lebanese demanding change,” he added.

This as a “panic” run on banks looms after the country’s banking association claimed it was necessary for the banks remain shuttered due to “safety concerns” related to the protests. The association has since been reportedly engaged in crisis meetings over how to prevent a simultaneous scramble on the part of the public to remove all deposits.

Lebanon’s central bank governor issued a stark warning Monday, saying a political solution must be found immediately to “restore confidence and avoid any future economic collapse.” It appears the dramatic move of PM Hariri’s resignation is intended to do just that. Lebanon’s sovereign dollar-bonds suffered fresh falls on the news to a new low as a rapid sell-off deepens, accelerating sharply after rumors of Hariri’s stepping down first reached headlines Tuesday.

As a breaking Reuters report notes, “The 2021 issue dropped 1 cent to a record low of 75.29 cents in the dollar, according to Tradeweb data, with yields at 30.1%.” And further:

Yields on some bonds have soared with the 2020 bond issue reaching 37%, indicating borrowing costs are prohibitively expensive for the heavily indebted country.

Over the course of the protests, which have been mostly peaceful but at times involved clashes with police and blockage of major roadways, banking operations have been “limited to paying out customer and employee salaries via ATMs”.

Now twelve days in, banks and public institutions have been completely closed for ten business days, with fears of a dollar cash depletion and collapse amid extreme lack of confidence in the local currency and corrupt officials which oversee the system.

END

6.Global Issues

SWEDEN

Former CEO of trucking company Scania warns that Sweden is now heading for civil war due to uncontrolled mass immigration

(zerohedge)

Former CEO Of Scania Warns Sweden Is Heading For Civil War

Authored by Paul Joseph Watson via Summit News,

The former CEO of trucking company Scania has warned that Sweden is heading towards civil war due to uncontrolled mass immigration.

In an interview with Swebbtv, businessman Leif Östling said that the arrival of so many new migrants who have failed to integrate into Swedish society is creating a fertile ground for violent unrest.

“We’ve taken in far too many people from outside. And we have. Those who come from the Middle East and Africa live in a society that we left almost a hundred years ago,” he said.

Explosions and grenade attacks have skyrocketed in many Swedish cities, with much of the unrest being blamed on migrant gangs. Sexual assaults and violent crime is also on the rise.

Östling underscored problems with integration by highlighting his own experience running Scania, where around 90 out of a hundred Somali migrants hired to work for the company were fired or left because they were unable to arrive on time or work in teams.

Östling believes that the “knowledge transfer” necessary for migrants to cope in Swedish society could take a generation to accomplish.

The businessman said he hoped that the country’s problems could be fixed within 10 years but if not, civil war could ensue, necessitating that the military be called out to deal with violent unrest in migrant areas.

* * *

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7. OIL ISSUES

8 EMERGING MARKET ISSUES

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

Euro/USA 1.1219 DOWN .0008 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 /MIXED

USA/JAPAN YEN 107.85 DOWN 0.074 (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 1.2485 DOWN 0.0052 (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3059 UP .0005 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS MONDAY morning in Europe, the Euro FELL BY 18 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1080 Last night Shanghai COMPOSITE CLOSED DOWN 25.87 POINTS OR 0.87%

//Hang Sang CLOSED DOWN 104.50 POINTS OR 0.39%

/AUSTRALIA CLOSED UP 0,09%// EUROPEAN BOURSES ALL RED

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 106.50 POINTS OR 0.39%

/SHANGHAI CLOSED DOWN 25.87 POINTS OR 0.87%

Australia BOURSE CLOSED UP. 09%

Nikkei (Japan) CLOSED UP 106.86 POINTS OR 0.47%

INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: 1488.00

silver:$17.71-

Early TUESDAY morning USA 10 year bond yield: 1.83% !!! DOWN 1 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 2.32 DOWN 2 IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 97.86 UP 6 CENT(S) from MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.23% DOWN 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.10% UP 2 BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.29%//DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.98 DOWN 2 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 –.35% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.33% 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 TUESDAY

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

Euro/USA 1.1114 UP .0016 or 16 basis points

USA/Japan: 108.84 DOWN .136 OR YEN UP 14 basis points/

Great Britain/USA 1.2893 UP .0038 POUND UP 38 BASIS POINTS)

Canadian dollar DOWN 24 basis points to 1.3079

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The USA/Yuan,CNY: AT 7.0658 ON SHORE (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE: 7.0646 (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA: 5.7294 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

Your closing 10 yr US bond yield DOWN 1 IN basis points from MONDAY at 1.83 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.33 DOWN 1 in basis points on the day

Your closing USA dollar index, 97.66 DOWN 11 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 TUESDAY: 12:00 PM

London: CLOSED DOWN 30.97 0.42%

German Dax : CLOSED UP 6.41 POINTS OR .05%

Paris Cac CLOSED UP 10.34 POINTS 0.18%

Spain IBEX CLOSED DOWN 43.40 POINTS or 0.63%

Italian MIB: CLOSED DOWN 3.62 POINTS OR 0.02%

WTI Oil price; 55.62 12:00 PM EST

Brent Oil: 61.55 12:00 EST

USA /RUSSIAN / RUBLE FALLS: 63.87 THE CROSS HIGHER BY 0.10 RUBLES/DOLLAR (RUBLE LOWER BY 10 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO –.35 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 : 55.42//

BRENT : 61.47

USA 10 YR BOND YIELD: … 1.83…..DOWN 1 BASIS PT

USA 30 YR BOND YIELD: 2.33..DOWN 0 BASIS PTS…

EURO/USA 1.1112 ( UP 14 BASIS POINTS)

USA/JAPANESE YEN:108.84 DOWN .132 (YEN UP 13 BASIS POINTS/..

USA DOLLAR INDEX: 97.68 DOWN 8 cent(s)/

The British pound at 4 pm Britain Pound/USA:1.2863 UP 8 POINTS

the Turkish lira close: 5.7434

the Russian rouble 63.94 DOWN 0.17 Roubles against the uSA dollar.( DOWN 17 BASIS POINTS)

Canadian dollar: 1.3094 UP 39 BASIS pts

USA/CHINESE YUAN (CNY) : 7.0658 (ONSHORE)/

USA/CHINESE YUAN(CNH): 7.0665 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,-0.35%

The Dow closed DOWN 19.91 POINTS OR 0.07%

NASDAQ closed DOWN 49.13 POINTS OR 0.59%

VOLATILITY INDEX: 13.53 CLOSED DOWN .44

LIBOR 3 MONTH DURATION: 1.935%//libor dropping like a stone

USA trading today in Graph Form

Stocks Slide Ahead Of Fed Amid Trade-Fade, Brextension Bounce

The market is priced for a rate-cut tomorrow (94% odds and The Fed has never disappointed when priced this high)…

Source: Bloomberg

But, what stocks won’t like is that Fed Funds appear to be pricing a cut-and-pause…

Source: Bloomberg

And that could be a problem as stocks appear to be demanding almost 3 more rate-cuts…

Source: Bloomberg

But then again, Powell knows, “the show must go on!”

China was ugly overnight…

Source: Bloomberg

Spanish stocks were the big laggard in European markets

Source: Bloomberg

US stocks were mixed on the day with Alphabet dragging down Nasdaq but squeezefests pushing Small Caps higher (S&P hit a new intraday record high early)… Dow, S&P, and Trannies lost their gains into the close…

NOTE the 1200ET drop on a trade-related headline talking down the deal…

The weak open was bid/squeezed but after 1400ET, “Most Shorted” stocks started to accelerate lower into the close…

Source: Bloomberg

Yuan and stocks tumbled on the trade deal headlines but the machines were quick to bid back stocks… but were unable to hold them against the reality that yuan was signaling…

Source: Bloomberg

After rallying for 7 of the last 8 days, AAPL tumbled (on trade talk) – its worst day in 4 weeks…

GrubHub gagged…

Source: Bloomberg

Beyond Meat barfed (on lock-up expiration fears after putting up big numbers last night)…

Source: Bloomberg

Treasury yields ended the day practically unchanged ahead of tomorrow’s FOMC, but bonds rallied from weakness overnight…

Source: Bloomberg

The Dollar ended lower for the second day in a row…

Source: Bloomberg

Cable bounced on election headlines and Brexit delays but faded back into the close…

Source: Bloomberg

Most cryptos were flat today but Bitcoin Cash soared overnight…

Source: Bloomberg

Bitcoin flatlined for another day…

Source: Bloomberg

Copper managed very modest gains on the day but PMs and crude ended marginally lower…

Source: Bloomberg

Choppy day in oil-land as WTI rejected a $54 handle ahead of tonight’s API inventory data…

Gold remained below $1500 as Silver bounced off $17.60…

Finally, as stocks hit new record in intraday highs, the last six months has been dominated by defensive positioning as cyclicals remain lower…

Source: Bloomberg

With US Macro data dumping in October (down 10 days in a row) after Q3’s “use it or lose it” panic…

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

Stocks, Yuan Tumble On US-China Trade Headlines

After President Trump spent several weeks creating an economic narrative of an imminent trade deal will be signed with China on November 17 at the Asia-Pacific Economic Cooperation (Apec) summit in Santiago, Chile, all to pump the stock market to record highs, there are new headlines from a US Administration official that specify a trade deal might not be signed in the coming weeks.

EXCLUSIVE-US-CHINA ‘PHASE ONE’ TRADE AGREEMENT MAY NOT BE SIGNED AT CHILE APEC MEETING IN NOVEMBER, BUT PROGRESS IS BEING MADE -U.S. ADMINISTRATION OFFICIAL
IF A DEAL IS NOT SIGNED IN CHILE, THAT DOES NOT MEAN US-CHINA TALKS HAVE FALLEN APART, JUST THAT MORE TIME IS NEEDED -U.S. ADMINISTRATION OFFICIAL IF A DEAL IS NOT SIGNED IN CHILE, THAT DOES NOT MEAN US-CHINA TALKS HAVE FALLEN APART, JUST THAT MORE TIME IS NEEDED -U.S. ADMINISTRATION OFFICIAL

Initial reports of a trade deal possibly falling apart before the Apec meeting slammed E-Mini Dow Futures lower.

Offshore Yuan strengthened to 7.064 level.

Market-Implied Odds of a US-China Trade Deal turn lower on the news. It seems that “trade optimism” sparked by weeks of President Trump tweeting about an imminent trade deal are finally starting to fade.

end

ii)Market data/USA

Hard data major city home price growth slumps to its weakest level in 7 years. This is a vital component of GDP growth.

(zerohedge)

US Major City Home Price Growth Slumps To Weakest In 7 Years

For the 17th month in a row – the longest streak since 2008 – US home price growth (in 20 major cities) has been unable to re-accelerate.

S&P CoreLogic’s (Case-Shiller) 20-City Composite home price index rose 2.03% YoY in August and flat to a downward-revised July print…

Source: Bloomberg

This is the weakest growth since August 2012, and biggest MoM drop since March 2012…

Source: Bloomberg

All 20 cities in the index, with the exception of San Francisco, showed year-over-year gains. Prices there fell 0.1% from August 2018.

Prices in 17 cities rose from the prior month on a seasonally adjusted basis. In New York, home prices fell 0.4% from July, while in Las Vegas, they dropped 0.1%. In Detroit, prices were unchanged month over month.

As Bloomberg notes, although mortgage rates are hovering near a three-year low, tepid wage gains are limiting buyer enthusiasm in markets such as Las Vegas and New York. Meanwhile a shortage of affordable inventory is keeping prices elevated.

end

Not good: This is a vital part of GDP, the USA consumer and today’s USA confidence number tumbles to a 7 moth low

(zerohedge)

US Confidence Tumbles To 7-Month Lows As ‘Hope’ Evaporates

After plunging in September, Conference Board confidence was expected to rebound but, thanks to a small upward revision, October confidence slipped to its lowest since March with expectations weakest since January.

Consumer confidence in October fell to 125.9 vs 126.3 in prior month – lowest since March
Present situation confidence rose to 172.3 vs 170.6 last month – small bounce
Consumer confidence expectations fell to 94.9 vs 96.8 last month – lowest since January

Source: Bloomberg

The labor differential (plentiful vs hard-to-get) rebounded modestly in October from 33.5 to 35.1.

Under-35s confidence tumbled in October with Over-55s improving modestly

While plans to buy a home ticked up in October, plans to buy a car slipped notably.

iii) Important USA Economic Stories

In this latest report we are witnessing the consumer finally cracking as witnessed by the huge defaults in auto loans. The total of all 3 credit loans: 1) auto, 2) student 3) credit card totals $13,460 per person. That is no doubt a huge drag on spending

(zerohedge)

Consumers Will Be Next Domino To Fall, Signaling Broader Economic Slowdown Ahead

We’re beginning to see more evidence that suggests the consumer is the next domino to fall.

Cracks are developing across the auto loan spectrum as subprime defaults accelerate at rates not seen since the dark days of 2008.

The whole mid-cycle narrative is nothing more than a fairytale, as Wall Street’s big bet on a healthy consumer might only end in disaster.

Wall Street has overlooked the cyclical downshift in employment, which started in January 2019, has caught many analysts off guard, despite the stock market hitting new all-time highs thanks to President Trump’s tweeting.

The downshift in employment could spook analysts later this week and through year-end. This alarming trend has forced companies in the last several months to stop hiring and halt wage increases.

What could happen in the next several quarters is a rollover in consumer sentiment, that is what generally happens when the employment cycle moves lower. This will affect retail sales and probably lead to a rather poor holiday season for retailers.

Wall Street’s massive bet on the consumer this late in the cycle is a fool’s errand, that is because the consumer has already cracked, and it’s the recent explosion of serious auto delinquencies has marked the death of the US consumer as the economic downturn is expected to broaden through 2020.

The most troublesome part is that when the consumer disappears, it’ll significantly drag GDP lower.

“We’re in a more fragile situation where consumers are more skittish,” said Diane Swonk, chief economist at Grant Thornton. “They’re more susceptible to negative news shocks even though we’ve got what should be these great underlying fundamentals.”

While JPMorgan CEO Jamie Dimon has been whistling the same tune as President Trump, in calling the economy “quite strong.”

Dimon has been secretly preparing for a consumer bust cycle as the bank increased money for loan losses to $1.3 billion, from $980 million in 2018, reported Bloomberg.

American Express and Discover Financial Services have been setting aside more and more loan loss funds in the last three months as the auto bust continues to gain momentum in 4Q19.

A recent NY Fed report showed for the three months ended in June, auto loans that were +90 days delinquent made up 4.6% of total balances, levels not seen since 2011. In credit card lending, 5.17% of loans became delinquent in the same period, the fastest rate since 2012.

Given the consumer deterioration backdrop, corporate executives in food and services have been warning that consumers pulled back on spending in the last three months.

Gene Lee, CEO of Olive Garden parent Darden Restaurants Inc., warned in a recent investor call that “there’s some uncertainty entering into the consumer” despite a robust economy.

Cracker Barrel Old Country Store Inc.’s CEO Sandra Cochran warned consumers are becoming “more cautious.”

We noted last week that UBS analyst Matthew Mish said 44% of consumers don’t make enough money to cover their expenses.

The big trend to unfold through 2020 is the implosion of the consumer and a broadening economic downturn.

END

Texas

(zerohedge)

Texas Could Be The Epicenter Of The Next Subprime Auto Crisis

In a recent report, we outlined how the largest subprime auto lender, Santander, is currently experiencing one of the most significant accelerations in subprime auto loan delinquencies, not seen since the dark days of 2008. Now, in a separate report via the Federal Reserve Bank of Dallas, there is new evidence that the epicenter of the next auto loan meltdown could start in Texas.

The Texas auto subprime market began experiencing a troughing event in serious auto delinquencies in 2015, with a rapid turn up in 2016. By the end of 2018, the serious auto delinquency rate was at 16.7%, approaching 2010 levels of 18.2%. Despite the “greatest economy ever,” the Dallas Fed admits rising wealth inequality could be responsible for the growing delinquencies in Texas.

“It’s clear something is going on,” said Emily Ryder Perlmeter, an adviser for the Dallas Fed and one of the report’s authors. “The economy may not be working as well for everyone.”

Michael Carroll, an economist at the University of North Texas, suggests the report is a clear indication that consumers in easy money times took on too much auto debt. Carroll also said consumer distress in Texas could be a bellwether for the broader economy and a warning sign that the consumer is weakening.

Perlmeter said rising auto loan delinquencies across the country is a severe problem, but the meltdown unfolding in Texas is much worse than any other major metropolitan area.

The Dallas Morning News noted the average auto loan in the state is $23,500 as of late 2018.

“The reality is we have too many low-paying jobs,” said Woody Widrow, executive director of Raise Texas, a nonprofit group that lobbies for anti-poverty policies. “Just because we have a low unemployment rate doesn’t mean that people have enough money to pay for the things they need.”

For all of 2017, nearly one-third of the jobs in the state paid less than $24,300 per year, which is about the poverty line for a family of four.

Average auto loans have been extended past 69 months to make it more affordable for the lower-income part of the population.

But what happens when the economy falters, and the oil and gas industry in Texas plunges? Consumers lose their jobs, develop a credit crunch, and are unable to service their insurmountable debts.

About 21% of Texans in 2018 had one credit account that was 90 days past due, said Prosperity Now. That was a one percentage point increase from 2017 and is the highest level among large states.

Rising auto loan delinquencies in Texas stem from the 2015/16 oil bust, Perlmeter said.

Many Texans have insurmountable debts (auto loans, credit cards, student debts, and mortgages), depressing incomes, no savings, and are working in the gig economy, can barely make ends meet in an economy that is rapidly slowing. So when the next recession strikes, could be as early as next year, consumers in Texas could be very screwed.

Residents in El Paso will likely be the most screwed in the next economic downturn. Already, the county’s delinquency rate on auto loans doubled from 2014 to 2018 and broke to new highs not seen since the last financial crisis. Other counties have also seen a meteoric rise in auto delinquencies since the oil bust.

“Of the Texas counties in this report, El Paso County experienced a particularly steep rise in serious auto debt delinquencies, with its rate nearly doubling from 2014 to 2018. Unlike other counties and the state at large, El Paso’s serious delinquency rate is currently past its peak during the Great Recession. A few possible factors are at play. First, the average car loan carried in El Paso County is higher than the other four counties, despite El Paso’s relatively low median household income. Secondly, since mid-2017, the performance of auto debt for prime borrowers in El Paso has worsened, while prime performance in other counties has remained relatively stable,” Dallas Fed wrote.

Consumer credit trends in Texas are an eye-opener of what’s to come for the broad consumer in the US. The next recession will especially leave the millennial, which is currently strapped with insurmountable debts, financially paralyzed for a generation to come.

end

California/PG and E

These rolling blackouts will be devastating to the California’s economy and also will have an effect on GDP numbers

(ZEROHEDGE)

PG&E’s Rolling Blackouts Could Leave 1.8 Million Californians Without Power

Parts of California are seriously starting to behave like a third world country. No, we’re not talking about the poop, homeless, and opioid crisis on the streets of San Francisco, we’re talking about rolling blackouts from the state’s electric company, PG&E Corp.

The next round of blackouts are expected on Tuesday, as 1.8 million Californians will experience their fourth planned power shutoff this month.

The warning of the next big blackout came late Monday as PG&E restored electricity to nearly one million residents after the company cut power over the weekend to prevent windstorms from knocking over its powerlines and sparking fires, reported Bloomberg.

With another windstorm expected for Tuesday, PG&E will reduce power to 605,000 homes and businesses in the Bay Area, California’s wine country, and several regions around Sacramento to minimize powerline accidents that could spark wildfires.

The Kincade Fire, currently burning in Sonoma County, started last Wednesday after a PG&E high-voltage transmission line was blown over by a windstorm.

PG&E has been routinely criticized for its faulty equipment sparking a string of wildfires in 2017 and 2018 that killed dozens of people and destroyed hundreds of structures with estimated damage of $30 billion. PG&E has since filed for bankruptcy as its stock has crashed 95% in 25 months.

Bloomberg notes that 3 million Californians are still recovering from last week’s blackout, with at least half of those folks without power through Monday night. Most of these folks without power will likely remain in the dark as the next round of blackouts starts Tuesday morning.

“This event will start to impact the same people again in certain areas,” PG&E utility chief Andy Vesey told journalist Monday. “It is the weather — it’s not something we can control.”

Fires have also erupted in Southern California, affecting the ultra-wealthy in their upscale neighborhoods in Los Angeles.

“Leave,” Los Angeles Mayor Eric Garcetti told residents Monday. “The only thing you cannot replace is you and your family. So get your loved ones, your pets, and leave.”
*map

As fires rage across the state and power is shutoff to millions of residents and businesses, the loss of economic activity could start weighing down on the state’s GDP. The economic losses over the last several years are expected to be in hundreds of billions of dollars.

end

OH!oh!! You know that something is up!! Jamie Dimon wants that Feds to loosen out on liquidity requirements. If they do so then the banks have increased risks. That is the reason that the repo market eased up sharply today.

(zerohedge)

Mission Accomplished JPMorgan: Repo Market Eases Sharply As Mnuchin Says May Loosen GSIB Regs

Just days after the Fed’s most oversubscribed term repo operation since the peak of the repo crisis in mid-September, coupled with the most overallotted T-Bill POMO as part of “Not QE”, the funding pressures in the interbank market appear to have eased somewhat based on the latest developments in the Fed’s “temporary” liquidity injections, where today’s first term repo saw “only” $47.9BN in dealer demand for the maximum $45 billion in liquidity, making it “just” 1.06x oversubscribed, the least since Oct 17…

… while today’s overnight repo saw $59.5BN in collateral submitted ($50.4BN in TSYs, and $9BN in MBS), more than 50% below the maximum $120BN available on the recently upsized operation.

Meanwhile, today’s “permanent” liquidity injection in the form of the 5th consecutive Bill POMO saw the lowest overallotment since “Not QE” restarted, with just $24.1BN in demand for the $7.5BN in Fed liquidity, the resulting 3.21x oversubscription the lowest yet.

One possible reason why the market may have reassessed its liquifity posture is because as Bloomberg reports, Treasury Secretary Steven Mnuchin is said to be open to easing crisis-era regulations “that have stiffened liquidity rules for big banks to relieve possible cash crunches in short-term funding markets.”

Mnuchin said that he had spoken to JPMorgan CEO Jamie Dimon, and other banks about how to avoid liquidity problems such as those observed in September: their answer – in addition to boosting reserves, the Treasury should eliminate liquidity buffers the banks need to hold as precaution for a possible crisis.

“The banks have raised an issue around intra-day liquidity, and that is something that makes sense for regulators to look at,” Mnuchin said in Tel Aviv, on day one of his 11-day trip through the Middle East and India, adding that there may be a way around current regulations that creates more intra-day liquidity without raising risks, according to Mnuchin.

While Mnuchin said he believes the Fed resolved the technical issues that caused the glitch and he doesn’t expect them to happen again, with consensus emerging that the liquidity squeeze was the result of too few reserves (even though the system currently has roughly $1.5 trillion in excess reserves, which apparently are not enough), while issues with regulations are separate.

Specifically, banks point to a strict liquidity requirement instituted after the financial crisis is also a contributing factor, and one meant to keep GSIB, or Global Systematically Important Bank, supported with excess liquidity. As part of the overhaul of financial regulations in the post-Lehman word, financial institutions are meant to hold more cash and cash-like assets as a buffer against times of stress. Systemically important banks – JPMorgan is the largest in the U.S. – face year-end reviews to determine how much more common equity they must carry.

As usual passing the buck and putting the blame for JPM stepping away from the repo market – and catalyzing the Sept 16 repo rate explosion – on regulators, Dimon said his firm had the cash and willingness to calm repo markets when they went haywire in September, but regulations held it back.

Meanwhile, as part of stepping away from the repo market, JPMorgan succeeded in forcing the Fed to restart not only repo operations, but also QE. As a result, the Fed began daily liquidity injections, and even as repo rates have since returned to more normal levels, the Fed has also resumed purchases of Treasuries to bolster bank reserves.

And so as JPMorgan – the bank with the largest US balance sheet – is building its case for eased regulatory requirements, analysts, starting with BofA’s Mark Cabana who first correctly predicted last month’s repo fireworks, are warning that money-market stress is likely to get much worse despite the Fed’s attempts to fix the problem. Conviction is also lacking that the central bank has resolved the issues in the funding markets. “It’s a reasonable question: Have we gone too far in the other direction in requiring the banks to maintain this excess liquidity for intra-day operations?” Mnuchin said.

Which brings up the real reason why JPM is hoping to ease GSIB regulations: as BofA notes, as of Q2 ’19, four of the eight GSIBs were in a higher GSIB surcharge bucket versus 2018 year end.

The fact that there are four US GSIBs running high in their surcharge bucket as of Q2 ’19 stands in stark contrast to the fact that there was only 1 US GSIB that was running high in its target range as of Q2 ’18. This, to BofA’s Mark Cabana, suggests “there will likely be greater year-end funding strains in ’19 vs ’18 regardless of how the Fed manages their reserves.”

It’s also why Jamie Dimon is hoping to fully deregulate the financial system, so that he has no longer has any constraints on what his balance sheet should look like. And if regulators needs a little more “convincing”, JPM is happy to crash the repo market as many times as is necessary.

And while undoing post-crisis GSIB regulations will mean that banks earn more – even if it infuriates Liz Warren to no end – it will also make the financial system once again prone to bank failure, as the big systematically important banks are no longer penalized if they don’t have enough liquidity on their balance sheet. None of that matters to Dimon, however, who has just one mission: to be allowed to do whatever he wants, again. If and when this leads to another global financial crisis, well Jamie will be long retired. Plus the Fed will simply bail out everyone again.

Incidentally, the only hope that the Treasury will prevent this major regulatory overhaul, is Democratic presidential candidate Elizabeth Warren, who last week waded into the debate around last month’s repo turmoil, warning Mnuchin not to use the incident as a rationale for weakening post-crisis regulations. Ironically, just a few days later, that’s precisely what Mnuchin is doing.

iv) Swamp commentaries)

This is a riot..it looks like our next witness Vindman is a double agent. He works for the ukraine as well as the uSA

this is nuts..

(zeorhedge)

Double Agent? Dem’s Latest Impeachment Witness ‘Advised Ukrainian Government’

The latest in a growing line of witnesses in the Democrats’ impeachment probe has revealed himself: The New York Times reported last night that Lt. Col. Alexander Vindman, an Iraq War veteran and top Ukraine expert on the National Security Council, is planning to tell House impeachment investigators that he heard President Trump offer an explicit quid pro quo to the Ukrainian president.

It’s amazing that the Dems are calling more witnesses to testify to this fact – and, of course, leaking every “top secret” development to the New York Times – since the White House has already released a transcript of the July 25 call with Ukrainian President Volodymyr Zelensky. We can all determine for ourselves whether we thought Trump crossed the line, or not.We don’t need Witnesses to relay their opinion.

Alex Vindman

Already, many officials, including Zelensky himself, have said there was no quid pro quo.

But that apparently doesn’t matter to the NYT, or its MSM compatriots.

Vindman reportedly told the Times that he was on the call, and that he was so “sickened” by Trump’s behavior, he “twice registered internal objections about how Trump and his inner circle were treating Ukraine. He said he did this out of a sense of duty.

On Tuesday, he will become the first sitting White House official to testify in the impeach inquiry involving the country of his birth, as the NYT’s Sheryl Gay Stolberg points out.

In a draft of his opening statement before the top-secret impeachment committee that was leaked to the NYT, Vindman claims that he is a “patriot”, and that he didn’t think Trump’s conduct was “proper.”

“I am a patriot and it is my sacred duty and honor to advance and defend our country irrespective of party or politics,” Vindman said.

“I did not think it was proper to demand that a foreign government investigate a U.S. citizen, and I was worried about the implications for the U.S. government’s support of Ukraine,” Colonel Vindman said in his statement. “I realized that if Ukraine pursued an investigation into the Bidens and Burisma it would likely be interpreted as a partisan play which would undoubtedly result in Ukraine losing the bipartisan support it has thus far maintained.”

Vindman reportedly moved to the US as a child from Ukraine, and as a result speaks Russian, Ukrainian and English fluently. Arriving as a refugee, he eventually served in the military, rising through the ranks, then achieving a Master’s Degree from Harvard in Russian, Eastern Europe and Central Asian Studies. He has an identical twin brother, Yevgeny Vindman, who is also a Lieutenant Colonel.

But lower down in the story, NYT investigative reporter Danny Hakim includes an interesting, unexplained, detail.

“While Colonel Vindman’s concerns were shared by a number of other officials, some of whom have already testified, he was in a unique position. Because he emigrated from Ukraine along with his family when he was a child and is fluent in Ukrainian and Russian, Ukrainian officials sought advice from him about how to deal with Mr. Giuliani, though they typically communicated in English.”

It’s something that Fox News host Laura Ingraham first pointed out on her show Monday night.

Stanford Law Professor and former Bush Administration lawyer John Yoo agrees this is suspicious: It almost sounds as if Vindman is acting as a double-agent for the Ukrainians and advising them against his own boss’s interests?

Read his testimony below:

Full by Zerohedge on Scribd

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

Looks like Pelosi has heard, like we have, that Horowitz’s report will arrive on Friday. So, she’s trying to get ahead of its release and the possible official announcement of plea deals with Durham.

OAN’s @ChloeSalsameda: The House will vote this week on a resolution [Thursday] to formalize the next steps of the impeachment inquiry into Pres. Trump.

The MSM produced copious fake news about Pelosi’s vote call. It’s a vote about impeachment procedures. It is not an impeachment vote. “The resolution establishes the procedure for hearings that are open… authorizes the disclosure of deposition transcripts, outlines procedures to transfer evidence to the Judiciary CMTE…” Pelosi is trying to purify Schiff’s Star Chamber and his past secret hearings.

CBS’s @RebeccaRKaplan: Speaker Pelosi, asked by @AlexNBCNews to comment on the impeachment resolution: “It’s not an impeachment resolution.”https://twitter.com/RebeccaRKaplan/status/1188933086387593217

Kevin McCarthy @GOPLeader: It’s been 34 days since Nancy Pelosi unilaterally declared her impeachment inquiry. Today’s backtracking is an admission that this process has been botched from the start. We will not legitimize the Schiff/Pelosi sham impeachment.

@RepMarkMeadows last night: We’ve just learned House Democrats are moving the public impeachment hearings to the Intelligence Committee — taking it out of the normal jurisdiction (Judiciary Committee), cutting out GOP members who have spent the majority of time questioning witnesses till now. This is a sham. [It’s Pelosi in a frenzy because her DoJ ‘contacts’ told her what’s coming.]

Biden claims [on “60 Min.”] he asked Obama not to endorse him for president https://trib.al/3NQ4iMK

@FoxFriendsFirst: A former Bill Clinton adviser says Hillary believes “God put her on the Earth” to be President.

How the Obama Administration Set in Motion Democrats’ Coup against Trump

Rep. Devin Nunes realized the purpose of Obama’s dossier. ‘Devin figured out in December what was going on,’ says Langer. ‘It was an operation to bring down Trump.’

Obama’s biggest move against Trump was to order CIA director John Brennan to conduct a full review of all intelligence relating to Russia and the 2016 elections. He requested it on December 6 and wanted it ready by the time he left office on January 20. But the sitting president already knew what the intelligence community assessment (ICA) was going to say, because Brennan had told him months before…

On his way out of the White House, Obama instructed Brennan to stamp the CIA’s imprimatur on the anti-Trump operation. As Fusion GPS’s smear campaign had been the source of the preelection press campaign, the ICA was the basis of the postelection media frenzy. It was tailored to disrupt the peaceful transition of power and throw the United States into chaos…

“If it weren’t for President Obama,” said James Clapper, “we might not have done the intelligence community assessment . . . that set off a whole sequence of events which are still unfolding today.”

Nunes agrees. “The ICA,” he says, “was Obama’s dossier.”…

https://thefederalist.com/2019/10/28/how-the-obama-administration-set-in-motion-democrats-coup-against-trump/

The Dems’ impeachment push is a counter against Barr/Durham probe that could reveal Obama’s ploy.

Attorney General Barr defends Durham probe, rips Comey’s FBI leadership in exclusive interview

“That’s completely wrong and there is no basis for it, and I act on behalf of the United States,” Barr said.

“I felt there was a failure of leadership at the bureau in 2016 and part of 2017… Since Director Wray and his team have taken over there’s been a world of change. I think that he is restoring the steady professionalism that’s been a hallmark of the FBI”…

http://inbox.foxnews.com/t?r=6053&c=947&l=1&ctl=1637:40002E40A1953E99E4EA387D4F6C4E4667ADE39EE60F83FA&

@JakeBGibson: My exclusive interview with AG Barr. He says Durham investigation “making great progress” with “outstanding support” from Chris Wray and FBI.

ISIS broken, but leader slipped away due to [NYT/Team BHO] leak, says key general Sept. 27, 2017

Thomas appeared to be referring to a New York Times report in June 2015 that detailed how American intelligence agencies had “extracted valuable information.”

https://www.foxnews.com/us/isis-broken-but-leader-slipped-away-due-to-leak-says-key-general

Fox’s @LucasFoxNews: Secretary Pompeo on criticism from some Democrats about being left in dark about op to kill ISIS leader: “There were only a handful of us that were dialed into this operation: myself and a handful of others …we wanted to take no risk that anyone would compromise the operation.”

Remarks by President Trump before Air Force One Departure October 28, 2019

Q Mr. President, are you concerned that Nancy Pelosi and others can’t be trusted with this kind of information?

THE PRESIDENT: Well, I guess the only thing is they were talking about why didn’t I give the information to Adam Schiff and his committee. And the answer is: Because I think Adam Schiff is the biggest leaker in Washington. You know that. I know that. We all know that. I’ve watched Adam Schiff leak. He’s a corrupt politician. He’s a leaker like nobody has ever seen before… So, in a nutshell, a whistleblower wrote a false narrative of the conversation. Now they don’t want to talk about the whistleblower because they didn’t think I was going to release the conversation. When I released the conversation, I blew up Schiff’s act…

https://www.whitehouse.gov/briefings-statements/remarks-president-trump-air-force-one-departure-joint-base-andrews-md/

Because Schiff’s whistleblower scam has blown up, Schiff is now trying to sell the refusal of witnesses to appear before his Star Chamber as ‘obstruction of justice’. The House must vote for impeachment and then ask a court to approve subpoenas that force witnesses to appear. Otherwise, the Constitution is clear on ‘Separation of Powers’. Pelosi is trying to accomplish with her vote on Thursday. But it is unclear if it will be an official impeachment vote or just a vote on excusing what Schiff has done.

Schiff warns Trump is inviting impeachment by blocking witnesses

https://www.politico.com/news/2019/10/28/adam-schiff-donald-trump-impeachment-blocking-witnesses-059847

Remember, Jeff Sessions stated after he became AG that he was going to vigorously investigate the endemic Deep State lies that plagued the early days of the Trump administration. Congressional testimony shows that Durham began investing leaks as early as September 2018. Schiff, Sen. Feinstein and Sen. Warner (D-VA) could be vulnerable.

Ex-Senate Intel staffer James Wolfe was at center of FBI FISA leak inquiry, Justice Dept. says

Wolfe served for 29 years as the SSCI’s security director, and he has received letters of support in advance of his sentencing not only from Burr and Warner, but also from California Democratic Sen. Dianne Feinstein, who previously chaired the SSCI…

https://www.foxnews.com/politics/ex-senate-intel-staffer-james-wolfe-was-at-center-of-fbi-fisa-leak-inquiry

Rep. Steve Scalise @SteveScalise [who survived an assassination attempt] : Every day The Washington Post uses harsher words against @realDonaldTrumpthan they do in writing about one of the world’s most evil terrorists. Yet we’re supposed to take them at face value. Let that sink in

Attachments area

END

TOMORROW, I will provide only the morning data but all of the comex data

On Thursday I will provide a truncated report but it will contain all the comex data

Friday’s report will be done on either Saturday or Sunday

OCT 29/GOLD DOWN $5.00 TO $1488.45//SILVER DOWN 6 CENTS TO $17.82//CONSUMER CONFIDENCE DOWN IN THE USA//HOUSE PRICES DOWN/MANY SWAMP STORIES FOR YOU TONIGHT//

NUMBER OF NOTICES FILED TODAY FOR OCT CONTRACT: 214 NOTICE(S) FOR 21400 OZ (0.6656 tonnes)

61 NOTICE(S) FILED TODAY FOR 305,000 OZ/

Bitcoin: OPENING MORNING TRADE : $ 9420 UP 206

Bitcoin: FINAL EVENING TRADE: $ 9352 UP 140

3. ASIAN AFFAIRS

3A//NORTH KOREA/ SOUTH KOREA

3b) REPORT ON JAPAN

3C CHINA

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6.Global Issues

7. OIL ISSUES

8 EMERGING MARKET ISSUES

9. PHYSICAL MARKETS

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

Let us head over to the comex:

Trading Volumes on the COMEX TODAY: 303,017 CONTRACTS

CONFIRMED COMEX VOL. FOR YESTERDAY: 329,053 contracts

FINAL standings for OCT/GOLD

And now for silver

AND NOW THE DELIVERY MONTH OF OCT.

FINAL standings/SILVER

Inventory 376.525 MILLION OZ

ii) Important gold commentaries courtesy of GATA/Chris Powell

Russian central bank creating a financial settlements system with China and India

Pam and Russ Martens: Fed fears an explosion on Wall Street, and JPM lit the fuse

The Fed Fears an Explosion on Wall Street: Here’s How JPMorgan Lit the Fuse

Ted Butler: The return of the silver whale?

The Return of the Silver Whale?

iii) Other physical stories:

Palladium Shortage Offers No Easy Resolution

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

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

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

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

Record Rally Fizzles As Fed Meeting Begins, Investors Look For Reasons To Keep Buying

3A/ASIAN AFFAIRS

3 a./NORTH KOREA/ SOUTH KOREA

b) REPORT ON JAPAN

3 C CHINA

HSBC CEO Vows To “Remodel” Bank After Profits Plunge 24%

Beijing Bars Student Activist Leader Joshua Wong From District Council Race

4/EUROPEAN AFFAIRS

Italy: Mass Legalization Of Migrants Is Suicidal

Cable Spikes As Labour Backs Johnson’s Bid For December Election

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Russian Patrol Comes Under Turkish Mortar Attack In Northern Syria

“We Need A Shock”: PM Hariri Resigns Amid Protests, Lebanon’s Dollar-Bonds Plunge

6.Global Issues

Former CEO Of Scania Warns Sweden Is Heading For Civil War

7. OIL ISSUES

8 EMERGING MARKET ISSUES

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

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

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

USA trading today in Graph Form

Stocks Slide Ahead Of Fed Amid Trade-Fade, Brextension Bounce

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

Stocks, Yuan Tumble On US-China Trade Headlines

US Major City Home Price Growth Slumps To Weakest In 7 Years

US Confidence Tumbles To 7-Month Lows As ‘Hope’ Evaporates

Consumers Will Be Next Domino To Fall, Signaling Broader Economic Slowdown Ahead

PG&E @PGE4Me

Mission Accomplished JPMorgan: Repo Market Eases Sharply As Mnuchin Says May Loosen GSIB Regs

Double Agent? Dem’s Latest Impeachment Witness ‘Advised Ukrainian Government’

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