FEB 6//CORONAVIRUS PANDEMIC SPREADS//CORONAVIRUS NIGHTMARE ON THE SEAS//GOLD UP $8.80 TO $1566.80//SILVER UP 24 CENTS TO $17.85//REPO MESS CONTINUES UNABATED//

GOLD:$1566.80 UP $8.80    (COMEX TO COMEX CLOSING

 

 

Silver:$17.84 UP 24 CENTS  (COMEX TO COMEX CLOSING) :

Closing access prices:

 

GOLD: 1566.95

 

SILVER: 17.83

 

 

 

 

 

 

 

COMEX DATA

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

today RECEIVING: 355/5471

EXCHANGE: COMEX
CONTRACT: FEBRUARY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,557.800000000 USD
INTENT DATE: 02/05/2020 DELIVERY DATE: 02/07/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
355 C CREDIT SUISSE 26
435 H SCOTIA CAPITAL 3
624 C BOFA SECURITIES 20
657 C MORGAN STANLEY 10
661 C JP MORGAN 25 242
661 H JP MORGAN 322
685 C RJ OBRIEN 1
686 C INTL FCSTONE 1
690 C ABN AMRO 1
732 C RBC CAP MARKETS 1
737 C ADVANTAGE 6 26
800 C MAREX SPEC 1 8
880 C CITIGROUP 17
____________________________________________________________________________________________

TOTAL: 355 355
MONTH TO DATE: 5,471

we are coming very close to a commercial failure!!

 

 

NUMBER OF NOTICES FILED TODAY FOR  DEC CONTRACT: 355 NOTICE(S) FOR 35500 OZ (1.1042 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  5471 NOTICES FOR 547100 OZ  (17.017 TONNES)

 

 

 

 

SILVER

 

FOR DEC

 

 

5 NOTICE(S) FILED TODAY FOR 25,000  OZ/

total number of notices filed so far this month: 208 for 1.040,000 oz

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 9750 UP 118 

 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 9770 UP 156

 

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL A CONSIDERABLE SIZED 1463 CONTRACTS FROM 224,936 DOWN TO 223,473 DESPITE OUR 6 CENT GAIN IN SILVER PRICING AT THE COMEX.

 

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

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

; FEB 0; MARCH:  690 AND MAY: 0 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  690 CONTRACTS. WITH THE TRANSFER OF 690 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 690 EFP CONTRACTS TRANSLATES INTO 3.45 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)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.170    MILLION OZ INITIALLY STANDING IN FEB

 

WEDNESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO CONTAIN SILVER’S PRICE…AND THEY WERE  UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 6 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE  SOMEWHAT SUCCESSFUL IN THEIR ATTEMPT TO FLEECE  SOME SILVER LONGS AS THE TOTAL LOSS IN OI ON BOTH EXCHANGES TOTALED A SMALL 773 CONTRACTS. OR 2.520 MILLION OZ….. WE MAY HAVE ALSO HAD SOME BANKER SHORT COVERING

 

WE HAVE NOW COMMENCED IN SILVER THE ILLEGAL SPREADING OPERATION.  FOR NEWCOMERS, HERE ARE THE DETAILS:

 

SPREADING LIQUIDATION HAS NOW STOPPED IN GOLD AS THEY NOW BEGIN TO MORPH INTO SILVER AS WE HEAD TOWARDS THE NEW FRONT MONTH WILL BE MARCH.

 

 

FOR THOSE OF YOU WHO ARE NEW, HERE IS THE MODUS OPERANDI OF THE SPREADERS AND THE CRIMINAL ELEMENT BEHIND IT:

 

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 SILVER 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 FEB HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF MARCH FOR SILVER:

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 FEB .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 (MAR), 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 FEB:

3155 CONTRACTS (FOR 4 TRADING DAYS TOTAL 3155 CONTRACTS) OR 15.775 MILLION OZ: (AVERAGE PER DAY: 788.75 CONTRACTS OR 3.943 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF FEB: 15.775 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 1.760% 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 2020 TO DATE SILVER EFP’S:          197.38 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 181.61 MILLION OZ

FEB 2020 EFP’S TOTAL SO FAR:  ……     15.775 MILLION OZ

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1463, DESPITE THE 6 CENT GAIN IN SILVER PRICING AT THE COMEX /MONDAY THE CME NOTIFIED US THAT WE HAD A VERY  STRONG SIZED EFP ISSUANCE OF 690 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  SIZED: 773 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 690 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 1463 OI COMEX CONTRACTS.AND ALL OF THIS   DEMAND HAPPENED WITH A 6 CENT RISE IN PRICE OF SILVER AND A CLOSING PRICE OF $17.61 // WEDNESDAY’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. 1.117 BILLION OZ TO BE EXACT or 159% of annual global silver production (ex Russia & ex China).

FOR THE NEW  FEB DELIVERY MONTH/ THEY FILED AT THE COMEX: 5 NOTICE(S) FOR  25,000 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 $14.70

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.970 MILLION OZ; JAN:  5.075 MILLION OZ.//FEB 1.170 MILLION OZ//
  2. THE  RECORD WAS SET IN AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT)

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A HUGE SIZED 4,180 CONTRACTS TO 650,392 AND MOVING AWAY FROM OUR  NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE CONSIDERABLE FALL IN COMEX OI OCCURRED DESPITE OUR GAIN OF $6.25 IN PRICING /// COMEX GOLD TRADING// WEDNESDAY// THERE IS NOW , NO DOUBT THAT THE LOSS IN COMEX OPEN INTEREST WAS DUE TO BANKER SHORT COVERING// BUT ALSO SOME LONGS ARE EXITING THE CASINO EVE THOUGH PHYSICAL DEMAND IS OVERTAKING THE HUGE INFLUX OF SHORT PAPER. TO FURTHER BOOST OUR CONTENTION ON THIS, THE EXCHANGE FOR PHYSICALS WAS STRONG…. 

 

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A VERY STRONG SIZED 6,432 CONTRACTS:

CONTRACTS, FEB>  0 CONTRACTS; MARCH 00 APRIL: 6432; JUNE. 0 AND ALL OTHER MONTHS ZERO//TOTAL: 6432.  The NEW COMEX OI for the gold complex rests at 650,392,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2252 CONTRACTS: 4180 CONTRACTS DECREASED AT THE COMEX  AND 6432 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2252 CONTRACTS OR 225,200 OZ OR 7.00 TONNES.  WEDNESDAY WE HAD A CONSIDERABLE GAIN OF $6.25 IN GOLD TRADING.

AND WITH THAT GAIN IN  PRICE, WE  HAD A STRONG GAIN IN GOLD TONNAGE OF 7.00  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (GAIN $6.25).  IT SEEMS THAT THEIR ATTEMPT TO FLEECE  GOLD LONGS FROM THE GOLD ARENA FAILED AS ALMOST ALL LOSS IN COMEX OI WAS DUE TO BANKER SHORT COVERING AND WE HAD A STRONG INCREASE IN EXCHANGE FOR PHYSICALS  (6432)

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEB : 53,573 CONTRACTS OR 5,357,300 oz OR 166.63 TONNES (4 TRADING DAYS AND THUS AVERAGING: 13,393 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 4 TRADING DAY(S) IN  TONNES: 166.63 TONNES

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

THUS EFP TRANSFERS REPRESENTS 166.63/3550 x 100% TONNES =4.60% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL /GOLD HAS EXPLODED THIS MONTH.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:    736.87  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; SO FAR: 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE SO FAR:            166.63  TONNES

 

 

 

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

 

Result: A CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 4180 DESPITE THE  PRICING GAIN THAT GOLD UNDERTOOK WEDNESDAY($6.25)) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 6432 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 TH GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 6432 EFP CONTRACTS ISSUED, WE  HAD A GOOD SIZED GAIN OF 2252 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

6480 CONTRACTS MOVE TO LONDON AND 4180 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 7.00 TONNES). ..AND THIS  INCREASE OF DEMAND OCCURRED WITH THE GAIN IN PRICE OF $6.25 WITH RESPECT TO WEDNESDAY’S TRADING/// AT THE COMEX.

 

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

GLD...

 

 

WITH GOLD $8.80  TODAY

A HUGE CHANGE : A DEPOSIT OF 2.33 TONNES

 

 

FEB 6/2020/Inventory rests tonight at 914.91 tonnes

 

 

 

 

 

SLV/

 

 

WITH SILVER UP 24 CENTS TODAY

A SMALL CHANGE IN SILVER INVENTORY AT THE SLV:

A WITHDRAWAL OF 154,000 OZ AND GENERALLY THIS IS TO PAY FOR FEES.

 

FEB 6/INVENTORY RESTS AT 362.312 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 CONSIDERABLE SIZED 1463 CONTRACTS from 227,886 DOWN TO 223,473 AND FURTHER FROM OUR 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 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

 

EFP ISSUANCE 690

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

 FOR FEB. 0; FOR MAR  690:  AND MAY: 0; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 690 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 1463  CONTRACTS TO THE 690 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL LOSS OF 773 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 3.865 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: 7.32 MILLION OZ//NOV 2.63 MILLION OZ//DEC: 20.970 MILLION OZ//JAN: 5.075 MILLION OZ//FEB: 1.170 MILLION OZ//

 

 

RESULT: A GOOD SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 6 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A STRONG SIZED 690 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

 

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 48.42 POINTS OR 1.72%  //Hang Sang CLOSED UP 706.96 POINTS OR 0.46%   /The Nikkei closed UP 554.03 POINTS OR 2.38%//Australia’s all ordinaires CLOSED UP .96%

/Chinese yuan (ONSHORE) closed UP  at 6.9695 /Oil UP TO 51.30 dollars per barrel for WTI and 55.46 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9695 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8834 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL//PHASE I COMPLETE..TRUMP  RAISED RATES TO 25%

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

i)CHINA/WUHAN/DRONE FOOTAGE

 

Just take a look at the footage of Wuhan: it is a ghost town of 11 million inhabitants

(zerohedge)

ii)China/USA

Conditions inside China must be really bad as China now slashes USA TARIFFS by 50%.  The stock markets around the world skyrocket on news of tariff reduction without understanding the real reason for the move.

(zerohedge)

iii)More on the coronavirus pandemic: it is spreading violently inside China and also outside of China

(zerohedge)

4/EUROPEAN AFFAIRS

GERMANY

German industry orders slump on weak euro zone demand, outlook subdued

German industrial orders slump on terrible euro zone demand.. Germany is the strength of Europe and to see if industrial orders slump is not a good sign

(Reuters)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)TURKEY/USA/ISRAEL/PALESTINIANS//

Erdogan states that Trump threatened him after he rejected the “deal of the Century”. The big question was what did he threaten him with.  Erdogan is demanding that Jerusalem be given to the Palestinians and that is a non starter

(zerohedge)

ii)A super commentary from Victor Davis Hanson from the Hoover Institute as he describes Trump’s brilliance in Middle east policies..

a must read
and special thanks to Robert H for sending this to us
(courtesy Victor Davis Hanson

6.Global Issues

JAPAN, HONG KONG, TRAVELERS OF MANY NATIONS

Yes, this is a nightmare at sea as more than 7,000 travelers are quarantined on two cruise ships.  More have tested positive for the coronavirus.

This will do wonders for the cruise  line industry..

(zerohedge)

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

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

iii) Important USA Economic Stories

the Fed keeps piling money into hedge funds criminally as they have no jurisdiction to do so.  No doubt many of these hedge funds are massively short gold and silver and need the repo money to stay afloat.

(zerohedge)

iv) Swamp commentaries)

Grassley and Johnson seeks Hunter Biden’s dtravel records from the secret service. They want to now whether Biden travelled on Air Force 2 with his father and then conducted private business.

(Sara Carter)

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 STRONG SIZED 4180 CONTRACTS TO 650,392 MOVING AWAY FROM OUR  RECORD THAT WAS SET LAST WEEK: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS LOSS IN OI WAS SET DESPITE A CONSIDERABLE GAIN OF $6.25 IN GOLD PRICING //WEDNESDAY’S  COMEX TRADING//).  WITH THE STRONG EFP ISSUANCE, THE ONLY ANSWER TO THE LOSS IN COMEX OI IS DUE TO BANKER SHORT COVERING//AND A SMALL LONG LIQUIDATION. PLEASE WITNESS THE LARGE EFP ISSUANCE BELOW…..

 

 

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF FEB..  THE CME REPORTS THAT THE BANKERS ISSUED A ,STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 6432 EFP CONTRACTS WERE ISSUED:

  FEB: 0; MARCH 00 AND APRIL: 6432,  JUNE : 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 6432 CONTRACTS.

THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER OUR LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A GOOD SIZED 2252 TOTAL CONTRACTS IN THAT 6432 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A STRONG SIZED 4180 COMEX CONTRACTS. ALL OF THE LOSS IN COMEX OI WAS DUE TO  BANKER SHORT COVERING//AND A SMALL LONG COMEX LIQUIDATION AS THEY ARE NOW IN PANIC MODE.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD.  THE BANKERS WERE  SOMEWHAT UNSUCCESSFUL IN LOWERING GOLD’S PRICE //// (IT ROSE BY $6.25). AND THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, WITH ALMOST ALL OF THE LOSS IN COMEX DUE TO THE   BANKER SHORT COVERING OPERATION..AND IN TOTAL ON THE TWO EXCHANGES, WE GAINED A GOOD SIZED 2252 CONTRACTS ON OUR TWO EXCHANGES….(7.00 TONNES)

 

NET GAIN ON THE TWO EXCHANGES ::  2252 CONTRACTS OR 225200 OZ OR 7.00 TONNES

 

COMMODITY LAW SUGGESTS THAT COMMODITY FUTURES OPEN INTEREST SHOULD APPROXIMATE 3% OF TOTAL PRODUCTION.  IN GOLD THE WORLD PRODUCES AROUND 3500 TONNES PER YEAR BUT ONLY 2200 TONNES ARE AVAILABLE FROM THE WEST (THUS EXCLUDING RUSSIA, CHINA ETC..WHO KEEP 100% OF THEIR PRODUCTION)

THUS IN GOLD WE HAVE THE FOLLOWING:  653,828 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 65.39 MILLION OZ/32,150 OZ PER TONNE =  2,033 TONNES

THE COMEX OPEN INTEREST REPRESENTS 2,033/2200 OR 92.40% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results

Total COMEX silver OI FELL BY A CONSIDERABLE SIZED 1463 CONTRACTS FROM 227,886 DOWN TO 223,473 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018 (244,196).  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND OUR  OI COMEX LOSS OCCURRED DESPITE A GOOD 6 CENT INCREASE IN PRICING/WEDNESDAY.

 

WE ARE NOW INTO THE  NON-ACTIVE DELIVERY MONTH OF FEB.

FEB IS A NON ACTIVE DELIVERY MONTH.

 

THE FRONT MONTH OF FEBRUARY HAS A TOTAL OPEN INTEREST OF 11 CONTRACTS SHOWING A LOSS OF 73 CONTRACTS//WEDNESDAY TRADING. WE HAD 82 NOTICES SERVED YESTERDAY SO WE GAINED 9 CONTRACTS OR 45,000 OZ OF SILVER WILL STAND FOR DELIVERY OVER HERE AND NOT MORPH INTO LONDON BASED FORWARDS.

 

March is a very active month and here we witness a LOSS of 2697 contracts  DOWN TO 147,405

APRIL saw a gain of 7 contracts up to 62.

MAY had a good 1395 gain in oi to stand at 39,414.

 

 

We, today, had  5 notice(s)  for 25,000, OZ for the FEB, 2019 COMEX contract for silver

Trading Volumes on the COMEX TODAY: 221,740 contracts??  low volume   

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  325,730 contracts

 

 

 

INITIAL standings for  FEB/GOLD

 

 

 

Let us head over to the comex:

 

 

FEB 6/2020

 

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

 

Delaware

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
335 notice(s)
 33,500 OZ
(1.1042 TONNES)
No of oz to be served (notices)
2048 contracts
(204800 oz)
6.3701 TONNES
Total monthly oz gold served (contracts) so far this month
5471 notices
547,100 OZ
17.017 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

we had 0 dealer entry:

We had  0 kilobar entries

 

 

 

total dealer deposits:nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan: nil  oz

 

ii) Into everybody else: 0

 

 

 

 

 

 

total deposits:  nil oz

 

 

 

 

we had 0 gold withdrawals from the customer account:

 

 

total gold withdrawals;  nil oz

 

ADJUSTMENTS:  0

 

 

 

 

 

 

The front month of February saw its open interest fall by 399 contracts down to 2383 contracts.  We had 97 notices filed upon yesterday, so we lost a strong 302 contracts or 30200 oz will move to London as they received London based forwards as well as accept fiat bonus for their efforts. The March non active contract month saw its OI FALL by 11 contracts up to 3008.  The big April contract month saw its OI fall by 5823 contracts down to 476,346.

 

We had 355 notices filed today for 35,500 oz

 

 

 

FOR THE  FEB 2020 CONTRACT MONTH)Today, 322 notice(s) were issued from JPMorgan dealer account and 25 notices were issued from their client or customer account. The total of all issuance by all participants equates to 355 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 242 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

To calculate the INITIAL total number of gold ounces standing for the FEB /2020. contract month, we take the total number of notices filed so far for the month (5471) x 100 oz , to which we add the difference between the open interest for the front month of  FEB. (2383 contracts) minus the number of notices served upon today (335 x 100 oz per contract) equals 751,900 OZ OR 23.39 TONNES) the number of ounces standing in this  active month of FEB

Thus the INITIAL standings for gold for the FEB/2020 contract month:

No of notices served (5471 x 100 oz)  + (2083)OI for the front month minus the number of notices served upon today (335 x 100 oz )which equals 751,900 oz standing OR 23.39 TONNES in this  active delivery month of FEB. which is a still a great opening for gold // amount standing.

We lost 305 contracts or 30,500 oz left USA shores to visit the Queen in London.  They received London based gold forwards as well as accepting a fiat bonus for their travels.

 

NEW PLEDGED GOLD:  BRINKS

3027.500 OZ  REMOVED TO THE PLEDGED ACCOUNT JAN 10.2020/Brinks

176,211.457 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 TONNES

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE ONLY 42.14 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS.

HERE IS WHAT STOOD DURING THESE PAST 7 MONTHS:  AUGUST 27.153 TONNES

SEPT:                                                                      5.4525 TONNES

OCT…………………………………………………………………………..   37.99 TONNES

NOV……                                                                5.3841 tonnes

DEC………………………….                                              45.912 TONNES

JAN……………………                                                    8.448 TONNES

FEB……………………………………………..                                23.39 tonnes

 

total: 153.719 tonnes

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 7 MONTHS OF SETTLEMENTS WE HAVE 20.055 TONNES SETTLED

 

IF WE ADD THE FIVE DELIVERY MONTHS: 153.719  tonnes

 

Thus:

153.719 tonnes of delivery –

20.055 TONNES DEEMED SETTLEMENT

=133.664 TONNES STANDING FOR METAL AGAINST 42.149 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,531,305.105 oz or  47.630 tonnes
which  includes the following:
a) pledged gold held at HSBC + BRINKS  which cannot settled upon   176,211.457 oz x ( 5.4807 TONNES)//
b)registered gold that can be used to settle upon:1,355,093.7  (42.149 tonnes)
true registered gold  (total registered – pledged tonnes  1.355,093.7  (42.149 tonnes)
total registered, pledged  and eligible (customer) gold;   8,714,273.64 oz 271.05 tonnes

 

 

THE GOLD COMEX IS NOW IN STRESS AS
1. GOLD IS LEAVING THE COMEX 
2. GOLD IS LEAVING THE REGISTERED CATEGORY OF THE COMEX.
3. NO GOLD IS ENTERING THE COMEX

 

THE GOLD COMEX IS NOW IN STRESS AS
1.

GOLD IS LEAVING THE COMEX 

2. GOLD IS LEAVING THE REGISTERED CATEGORY OF THE COMEX.
3. NO GOLD IS ENTERING THE COMEX

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..

We had 355  notices served upon today for 35,500 oz

 

end

 

And now for silver

AND NOW THE  DELIVERY MONTH OF FEB.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
FEB 6 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,699492.78 oz
Brinks
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil
No of oz served today (contracts)
5
CONTRACT(S)
(25,000 OZ)
No of oz to be served (notices)
6 contracts
 30,000 oz)
Total monthly oz silver served (contracts)  208 contracts

1,040,000 oz)

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

**

 

 

we had 0 inventory movement at the dealer side of things

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

i)we had  0 deposits into the customer account

into JPMorgan:   0

 

ii) Into everybody else; 0

 

 

 

 

 

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

JPMorgan now has 161.3 million oz of  total silver inventory or 50.77% of all official comex silver. (161.3 million/317.74 million

 

 

 

 

total customer deposits today:  0  oz

 

we had 2 withdrawals out of the customer account:

i) Out of Brinks: 598,164.280 oz

ii) Out of Scotia: 1,101,328.500 oz

 

 

 

 

 

 

total withdrawals; 1,699,492.789  oz

We had 1 adjustment:

i) Out of CNT:

610,140.272 oz was adjusted out of the dealer and this landed to the customer and we will deem this a settllemtn

 

 

 

 

total dealer silver:  79.528 million

total dealer + customer silver:  320.181.669 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the FEB 2019. contract month is represented by 5 contract(s) FOR 25,000 oz

To calculate the number of silver ounces that will stand for delivery in FEB, we take the total number of notices filed for the month so far at 208 x 5,000 oz = 1,040,000 oz to which we add the difference between the open interest for the front month of FEB. (11) and the number of notices served upon today 5 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the FEB/2019 contract month: 208 (notices served so far) x 5000 oz + OI for front month of Feb (11)- number of notices served upon today (5) x 5000 oz equals 1,070,000 oz of silver standing for the Feb contract month.

 

We gained 9 contracts or an additional 45,000 oz will stand at the comex as they refused to morph into London based forwards. 

 

 

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

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 5 notice(s) filed for 25,000 OZ for the DEC, 2019 COMEX contract for silver

 

 

TODAY’S ESTIMATED SILVER VOLUME:  62,853 CONTRACTS //

 

 

CONFIRMED VOLUME FOR YESTERDAY: 68,464 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 68,464 CONTRACTS EQUATES to 342 million  OZ 48.9% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

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NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.58% ((FEB 6/2019)

2. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.53% to NAV FEB 6/2019 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.58%

(courtesy Sprott/GATA)

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

NAV 15.50 TRADING 15.17///DISCOUNT  2.17

 

END

 

 

And now the Gold inventory at the GLD/

FEB 6/WITH GOLD UP $8.80: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.33 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 914.91 TONNES

FEB 4//WITH GOLD DOWN $26.10: A VERY STRANGE PHENOMENA: A MONSTROUS DEPOSIT OF 9.38 TONNES//INVENTORY RESTS AT 912.58 TONNES

FEB 3/WITH GOLD DOWN $5.40 TODAY: A SMALL CHANGE: A TINY WITHDRAWAL OF .29 TONNES OF GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 903.21 TONNES( TO PAY FOR FEES LIKE STORAGE INSURANCE ETC)

JAN 31/WITH GOLD DOWN  $0.95 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 903.50 TONNES

JAN 30/WITH GOLD UP $13.05 TODAY: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 4.09 TONNES INTO THE GLD/INVENTORY RESTS AT 903.50 TONES

JAN 29/WITH GOLD UP 0.40 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 899.41 TONNES

JAN 28/WITH GOLD DOWN $6.70 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 1.17 TONNES FROM THE GLD////INVENTORY RESTS AT 899.41 TONNES

JAN 27//WITH GOLD UP $6.15 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 900.58 TONNES

JAN 24//WITH GOLD UP $6.65 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.76 TONNES INTO THE GLD//INVENTORY RESTS AT 900.58 TONNES

JAN 23/WITH GOLD UP $8.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 898.82 TONNES

JAN 22/WITH GOLD DOWN $1.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MAMMOTH 19.33 TONNES OF PAPER GOLD ADDED//INVENTORY RESTS AT 898.82 TONES

JAN 21/2010//WITH GOLD DOWN $2.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 879.49 TONNES

JAN 17/WITH GOLD UP $9.60 TODAY: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: ANOTHER PAPER DEPOSIT OF 1.17 TONNES//INVENTORY RESTS AT 879.49

JAN 16//WITH GOLD DOWN $3.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.80 TONNES OF GOLD INTO THE GLD./INVENTORY RESTS AT 878.32

JAN 15/WITH GOLD UP $9.55 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 874.52 TONNES

JAN 14/WITH GOLD DOWN $5.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 874.52 TONNES

JAN 13/WITH GOLD DOWN $8.75 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 7.6 TONNES OF GOLD WHICH WAS USED IN THE RAID TODAY////INVENTORY RESTS AT 874.52 TONNES

JAN 10/WITH GOLD UP $5.80 TODAY:NA HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 4.69 TONNES//INVENTORY RESTS AT 882.12 TONNES

JAN 9/WITH GOLD DOWN $5.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 886.81 TONNES

JAN 8/WITH GOLD DOWN $14.10 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 9.37 TONNES FROM THE GLD//INVENTORY RESTS AT 886.81 TONNES

JAN 7/WITH GOLD UP $7.00 A GOOD INVENTORY PAPER DEPOSIT OF 0.88 TONNES  IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 896.18 TONNES

JAN 6/WITH GOLD UP #15.40 NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 895.30 TONNES

JAN 3/WITH GOLD UP $24.60: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.05 TONES INTO THE GLD../INVENTORY RESTS AT 895.30

JAN 2/2020//WITH GOLD UP $5.20: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 893.25

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

FEB 6/2019/Inventory rests tonight at 914.91 tonnes

*IN LAST 756 TRADING DAYS: 22.547 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 656 TRADING DAYS: A NET 144.52. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

FEB 6//WITH SILVER UP 24 CENTS TODAY:A SMALL  CHANGE IN SILVER INVENTORY: A WITHDRAWAL OF 154,000 OZ AT THE SLV/INVENTORY RESTS AT 362.312 MILLION OZ// AND GENERALLY THIS IS TO PAY FOR FEES LIKE INSURANCE/STORAGE

FEB 4//WITH SILVER DOWN 9 CENTS TODAY: NO CHANGE IN SILVER INVENTORY//SLV INVENTORY RESTS AT 362.466 MILLION OZ//

FEB 3/WITH SILVER DOWN 30 CENTS TODAY; A SMALL DEPOSIT OF 560,000 OZ INTO SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 362.466 MILLION OZ/

JAN 31/WITH SILVER UP 5 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV; A WITHDRAWAL OF 840,000 OZ FROM THE SLV//INVENTORY RESTS AT 361/906 MILLION OZ//

JAN 30/WITH SILVER UP 47 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 1.027 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 362.746 MILLION OZ

JAN 29/WITH SILVER UP 2 CENTS TODAY: A BIG  CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 1.587 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 361.719 MILLION OZ//

 

JAN 28//WITH SILVER DOWN 59 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 360.132 MILLION OZ

JAN 27//WITH SILVER DOWN 3 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 327,000 OZ INTO THE SLV..//INVENTORY RESTS AT 359.805 MILLION OZ//

JAN 24//WITH SILVER UP 27 CENTS TODAY: A HUGE PAPER DEPOSIT OF 5.975 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 359.805 MILLION OZ//

JAN 23/WITH SILVER UP ONE CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 353.830 MILLION OZ..

JAN 22/WITH SILVER DOWN ONE CENT: A HUGE CHANGE IN SILVER INVENTORY: A WITHDRAWAL OF 1.027 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 353.830 OZ

JAN 21/WITH SILVER DOWN 24 CENTS TODAY: NO CHANGES IN SILVER INVENTORY FROM THE SLV//INVENTORY RESTS AT 354.437 MILLION OZ//

JAN 17/WITH SILVER UP 12 CENTS TODAY: A SMALL WITHDRAWAL OF 420,000 OZ FROM THE SLV//INVENTORY RESTS AT 354.437 MILLION OZ.

JAN 16/WITH SILVER DOWN 2 CENTS TODAY: A CONSIDERABLE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 840,000 OZ FROM THE SLV//INVENTORY RESTS AT 354,857 MILLION OZ//

JAN 15/WITH SILVER UP 21 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 355.697 MILLION OZ//

JAN 14/WITH SILVER DOWN 23 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 355.697 MILLION OZ//

JAN 13/WITH SILVER DOWN 10 CENTS TODAY: A HUGE  CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.261 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 355.697 MILLION OZ//

JAN 10/WITH SILVER UP 16 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 356.958 MILLION OZ//

JAN 9/WITH SILVER DOWN 24 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 3.268 MILLION OZ////INVENTORY RESTS AT 356.958 MILLION OZ///

JAN 8/WITH SILVER DOWN 21 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 360.226 MILLION OZ//

JAN 7.//WITH SILVER UP 23  CENTS TODAY: ANOTHER MASSIVE PAPER WITHDRAWAL OF 1.214 MILLION OZ IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 360.226 MILLION OZ..

JAN 6/WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.440 MILLION OZ///

JAN 3/2020//WITH SILVER UP 12 CENTS TODAY: ANOTHER HUGE PAPER WITHDRAWAL OF 1.176 MILLION OZ  IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.440  MILLION OZ///

SINCE DEC 23 WE HAVE HAD A 94 CENT GAIN CORRESPONDING TO A 2.39 MILLION OZ OF PAPER WITHDRAWALS..AN ABSOLUTE FRAUD!

JAN 2/2020/WITH SILVER UP 12 CENTS TODAY: A HUGE PAPER WITHDRAWAL OF 1.214 MILLION OZ FROM THE SLV INVENTORY: INVENTORY RESTS AT 362.616 MILLION OZ

FEB 6.2020:  SLV INVENTORY

362.312 MILLION OZ

 

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.74/ and libor 6 month duration 1.76

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

G0LD LENDING RATE:  +02

 

XXXXXXXX

12 Month MM GOFO
+ 1.82%

LIBOR FOR 12 MONTH DURATION: 1.831

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.01

end

 

 

end

 

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

“Smart Move” By Prudent Investors Is To Diversify Into Gold

Investors Are Shifting Back Into Gold. It Looks Like a Smart Move

by Randall W. Forsyth via Barron’s

◆ With no opportunity cost to holding a zero-yield asset such as gold, investors increasingly are adding it to their portfolios as a hedge.

◆ Gold retains its intrinsic value, something no paper currency has managed to do over history.

◆ Gold is insurance. Insurance isn’t supposed to make you rich; it’s supposed to keep you from being poor. The best thing to happen is your insurance never pays off because nothing bad happens.

◆ Hope for the best, but better to prepare for the worst. A nice rock can help.

“Nice rock.”

That was the dismissive assessment of gold by a snarky investor in a recent television advertisement for a cryptocurrency fund.

She apparently was unperturbed by the massive, 50%-plus drop in Bitcoin from its peak in late 2017, and equally oblivious to the bull market in the ‘barbarous relic’ the past couple of years.

In fact, there has been a stealth move to gold in the past year, both by investors buying exchange-traded funds that hold the metal and central banks, which have been shifting a portion of their reserves from traditional paper currencies, notably the U.S. dollar, to the monetary metal, according to J.P. Morgan’s global markets strategy team led by Nikolaos Panigirtzoglou.

Despite the U.S. stock market’s ascent to records, mutual fund investors have been surprisingly cautious. They have yanked money from equity funds and poured $1 trillion into bond funds despite historically low yields in 2019, a pace that appears to have continued in the new year, the JPM analysts write in a client note. They have also poured money into gold ETFs, boosting the ETFs’ assets back to their highs of 2012 (see chart above), shortly after bullion peaked near $1,900 an ounce.

Since late 2018, when Barron’s published a bullish cover story on gold investing, the metal is up more than 30%, with the front-month futures contract settling Tuesday at $1,569.20. In the final installment of this year’s Barron’s Roundtable, Sonai Desai, portfolio manager and chief investment officer for fixed income at Franklin Templeton, endorsed gold ETFs, such as SPDR Gold Shares (ticker: GLD), as a hedge against the risk of market and geopolitical volatility.

Full article here

 

Watch Podcast Here

NEWS and COMMENTARY

Gold rebounds on bargain hunting, bets for loose central bank policy

China drafts banks, brokerages and funds into war on virus

Yields rise on reports of coronavirus treatment, job gains

Fedcoin? The U.S. central bank is looking into it

Cyprus gets euro zone OK for early repayment of IMF

Gold Could Reach $2,000 as Early as This Year

Exclusive Gold Offer – For Retail, Pension and HNW Investors

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GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)
03-Feb-20 1578.85 1574.75, 1207.98 1209.41 & 1426.65 1425.46
31-Jan-20 1580.85 1584.20, 1205.24 1204.63 & 1433.51 1431.96
30-Jan-20 1580.40 1578.25, 1213.75 1206.41 & 1435.16 1431.31
29-Jan-20 1571.20 1573.45, 1207.31 1209.20 & 1428.38 1429.95
28-Jan-20 1579.60 1574.00, 1212.19 1211.04 & 1433.33 1430.77
27-Jan-20 1583.45 1580.10, 1209.28 1210.04 & 1436.66 1433.94
24-Jan-20 1561.85 1564.30, 1192.63 1194.19 & 1415.04 1418.04
23-Jan-20 1554.05 1562.90, 1182.94 1191.24 & 1401.91 1411.77

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ii) Important gold commentaries courtesy of GATA/Chris Powell

SEE THE BLOOMBERG ARTICLE BELOW///VERY IMPORTANT:

 

JPMorgan’s role in metals spoofing said to be under criminal probe

 Section: 

From Bloomberg Law, New York
Wednesday, February 5, 2020

U.S. authorities that accused six JPMorgan Chase & Co. employees of rigging precious-metals futures are building a criminal case against the bank itself, two people familiar with the situation said.

The previously unreported investigation of the global bank’s parent company, part of a wide-ranging federal clampdown on market manipulation, raises the prospect of criminal charges and significant fines against America’s largest bank.

No formal accusations have been made against JPMorgan.

… For the remainder of the report:

https://news.bloomberglaw.com/banking-law/jpmorgans-role-in-metals-spoof…

iii) Other physical stories:

Your big story of the day:  Now prosecutors are going after JPMorgan corporation on RICO.  They are also investigating co conspirators.

(zerohedge/Bloomberg)

 

US Launches Criminal Probe Into JPMorgan For Gold Price Manipulation

There was a time when the merest mention of gold manipulation in “reputable” media was enough to have one branded a perpetual conspiracy theorist with a tinfoil farm out back… and immediately banned from social media.

That was roughly coincident with a time when Libor, FX, mortgage, and bond market manipulation was also considered unthinkable, when High Frequency Traders were believed to “provide liquidity”, or when the stock market was said to not be manipulated by the Fed, and when the ever-confused media, always eager to take “complicated” financial concepts at the face value set by a self-serving establishment, never dared to question anything.

That has now changed…

In November 2018, a former JPMorgan precious-metals trader admitted he engaged in a six-year spoofing scheme that defrauded investors in gold, silver, platinum, and palladium futures contracts.

John Edmonds, 36, of Brooklyn, New York, pleaded guilty under seal on Oct. 9 in the District of Connecticut to commodities fraud, conspiracy to commit wire fraud, commodities price manipulation, and spoofing. As Justice notes in a statement:

From approximately 2009 through 2015 John Edmonds engaged in a sophisticated scheme to manipulate the market for precious metals futures contracts for his own gain by placing orders that were never intended to be executed,” said Assistant Attorney General Benczkowski.

“The Criminal Division is committed to prosecuting those who undermine the investing public’s trust in the integrity of our commodities markets through spoofing or any other illegal conduct.”

That was followed, a year later, by the DOJ charging the entire precious-metals trading desk at JPMorgan of being deeply involved in what prosecutors described as a “massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.”

The DoJ charged Michael Nowak, a JPMorgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPM’s metals desk, in the probe. (Blythe Masters was somehow omitted).

“Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period — that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told reporters.

Here’s where it gets extra interesting: according to Bloomberg, the unusually aggressive language language embraced by prosecutors reminds legal experts of indictments utilizing the RICO Act – a law allowing prosecutors to take down ‘criminal enterprises’ like the mafia by charging all members of the organization for any crimes committed by an individual on behalf of the organization.

Prosecutors charged the head of JP Morgan’s global metals trading operation and two other traders with “conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity” – language that is typically used to describe a RICO charge.

And now, 5 months later, Bloomberg reports that things have escalated even further.

According to two people familiar with the matter, Bloomberg reports that U.S. authorities that accused six JPMorgan Chase & Co. employees of rigging precious-metals futures are building a criminal case against the bank itself.

So more than 11 years after the farce began, this previously unreported investigation of the global bank’s parent company – part of a wide-ranging federal clampdown on market manipulation – raises the prospect of criminal charges and significant fines against America’s largest bank.

Additionally, Bloomberg notes that, according to a third person familiar with the matter, authorities are conducting a similar racketeering investigation of a second financial firm involving spoofing.

And all of this is occurring as more and more investors realize the value of gold as a hedge against the idiocy of politicians and policy-makers… in other words, just as manipulating precious-metals prices lower would be at its most use to the banking elites.

Conspiracy theory becomes conspiracy fact… and we wonder whether any of this would be public had Twitter’s newly-minted “censor anything we don’t like” policies been in place?

END

Pam and Russ Martens talking about the criminal organization known as JPMorgan

(Wall Street on Parade)

JPMorgan Chase Is Under Fourth Criminal Probe after Pleading Guilty to Three Prior Felony Counts

By Pam Martens and Russ Martens: February 6, 2020 ~

JPMorgan Chase Bank BuildingYesterday, Bloomberg News reporters Tom Schoenberg and Liam Vaughan broke the story that JPMorgan Chase is under a criminal probe by the U.S. Department of Justice (DOJ) over charges of rigging gold, silver and other precious metals markets. Six traders who worked on the precious metals desk at JPMorgan Chase have been indicted thus far but this is the first report that the bank itself is also under a criminal investigation. This marks the fourth criminal probe of the bank in the past 8 years by the U.S. Department of Justice with the bank pleading guilty to three felony counts in two of the prior criminal investigations.

Throughout this serial crime wave, the Board of Directors of JPMorgan Chase has kept Jamie Dimon in his seat as Chairman and CEO. Despite knowing that three of the bank’s traders had been charged under the criminal RICO statute and that the investigation could very likely result in criminal charges against the recidivist bank itself, the Board recently awarded Dimon a pay package of $31.5 million for last year – buttressing presidential candidate Bernie Sanders’ message that the business model of Wall Street is fraud.

There was a time in America when a criminal probe of the nation’s largest bank, which holds $1.6 trillion in the life savings of moms and pops at more than 5300 bank branches across the country, would have been worthy of a front-page headline. Not today. Crime and fraud are so de rigueur at the bank led by Dimon that not one major newspaper ran the headline on the front page or anywhere else in the paper.

Corporate media is, in fact, complicit in letting Dimon and his Board off the hook. Dimon’s public relations flacks have teamed up with mainstream media to create the false narrative that Dimon is some kind of economic genius and a Wall Street superstar. Bloomberg News itself has perpetuated that myth by portraying Dimon as the man whose greatest mission is to take good care of his customers – despite the hard fact that federal regulators are perpetually documenting how the bank is ripping its customers off in brazen fraudulent actions. As recently as November 10 of last year, Lesley Stahl of the CBS investigative news program, 60 Minutes, interviewed Dimon and strolled through the bank’s trading floor without ever asking Dimon about the unprecedented felony charges the bank has been forced to plead guilty to under his tenure.

Equally outrageous, Dimon was allowed to serve as Chairman of the Business Roundtable for the past three years. His Chairmanship expired this past December 31. The Board of the Business Roundtable includes the CEOs of some of the largest corporations in America and is supposed to set the tone for ethical corporate conduct.

The precious metals case against traders at JPMorgan Chase became public on November 6, 2018 when John Edmonds pleaded guilty to charges brought by the U.S. Department of Justice. Edmonds admitted that from approximately 2009 through 2015, he conspired with other precious metals traders at JPMorgan Chase to manipulate the markets for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange (NYMEX) and Commodity Exchange Inc. (COMEX).

According to the statement given to the DOJ by Edmonds, his motive was “to make money and avoid losses for himself, his co-conspirators, and the Bank” and he “learned this deceptive trading strategy from more senior traders at the Bank, and he personally deployed this strategy hundreds of times with the knowledge and consent of his immediate supervisors.”

On August 24, 2019, another trader at JPMorgan Chase, Christian Trunz, pleaded guilty to the DOJ for manipulating the precious metals market from approximately July 2007 and August 2016.

Then on September 16, 2019 the DOJ dropped its bombshell. It charged three more traders on the precious metals desk at JPMorgan Chase under the Racketeer Influenced and Corrupt Organizations Act (RICO) – the same statute that was used to indict members of the Gambino crime family in 2017. The trading desk, itself, was named a racketeering enterprise. The traders were charged with rigging the precious metals market during a period spanning more than eight years – from May 2008 to August 2016. One of those charged in that action was Michael Nowak, a Managing Director at the bank and the head of its Global Precious Metals Desk. The other two traders indicted were Gregg Smith and Christopher Jordan.

Curiously, two trial lawyers had previously raised the idea of JPMorgan Chase being prosecuted under the RICO statute in their book JPMadoff: The Unholy Alliance Between America’s Biggest Bank and America’s Biggest Crook. The trial lawyers are Helen Davis Chaitman and Lance Gotthoffer. In chapter 5 of the book, they write as follows: (JPMC stands for JPMorgan Chase.)

“In Chapter 4, we compared JPMC to the Gambino crime family to demonstrate the many areas in which these two organizations had the same goals and strategies. In fact, the most significant difference between JPMC and the Gambino Crime Family is the way the government treats them. While Congress made it a national priority to eradicate organized crime, there is an appalling lack of appetite in Washington to decriminalize Wall Street. Congress and the executive branch of the government seem determined to protect Wall Street criminals, which simply assures their proliferation.”

On November 15, 2019, the DOJ charged yet another precious metals employee at JPMorgan Chase, bringing the total to six. This time it was a salesperson involved with precious metals at JPMorgan Chase, Jeffrey Ruffo, whose sales clients were hedge funds. The DOJ indictment alleges the following:

“…one of the reasons the defendants and their co-conspirators used Deceptive Orders in their trading was to service and benefit key clients, including Ruffo’s hedge fund clients, which were important sources of revenue and market intelligence for the precious metals desk at Bank A [JPMorgan Chase].  For example, as alleged in the superseding indictment, if a hedge fund client wished to purchase gold, Ruffo would receive the order and communicate it to Smith, who, with Ruffo’s knowledge and encouragement, would then place Deceptive Orders to sell gold futures contracts in order to artificially lower the price at which the hedge fund could buy (or the defendants and their co-conspirators could buy on the hedge fund’s behalf).  By passing along the lower price, the superseding indictment alleges, the defendants and their co-conspirators hoped to retain that hedge fund’s business for the precious metals desk at Bank A.”

In other words, in August, September and again in November of last year, the Board of Directors of JPMorgan Chase were put on notice that the bank they were overseeing under their designated leader, Jamie Dimon, was accused of running a criminal enterprise out of its precious metals desk. They were also aware that at least two of those indicted are cooperating with the DOJ in the ongoing investigation. And yet, they still awarded Jamie Dimon a pay package of $31.5 million and allowed him to announce that he planned to remain at the bank for another five years.

Adding to the DOJ’s likelihood of bringing criminal charges against the bank is the fact that when all six of the traders/salesman were indicted, JPMorgan Chase was still under probation in its own plea agreement for its role in rigging the foreign exchange market. It entered into that plea agreement on May 20, 2015 but a Federal District court did not approve the deal until 2017. This meant that its three-year probation period did not end until January 2020. JPMorgan Chase pleaded guilty to one criminal felony count in that matter and agreed to two criminal felony counts in the Bernie Madoff matter in 2014. (It held the business bank account for Madoff for decades and did not report flagrant money laundering red flags to law enforcement. It did, however, tell U.K. regulators that it thought Madoff was likely running a Ponzi scheme. According to a report from the Government Accountability Office, JPMorgan’s own customers lost $5.4 billion in the Madoff scheme.)

The fourth criminal probe of JPMorgan Chase, which did not end in DOJ charges, resulted from the infamous London Whale scandal at the bank in 2012. Using hundreds of billions of dollars from its federally-insured bank, traders for JPMorgan Chase in London lost $6.2 billion trading exotic derivatives. The bank paid over $1 billion to settle charges in that matter. (See Looking Back on JPMorgan’s London Whale Saga.)

This is demonstrably a criminally recidivist bank. Dimon and the Board need to be removed. The bank needs to be broken up with the federally-insured bank placed under a sane, ethical, competent Board of Directors.

https://www.jsmineset.com/2020/02/06/precious-metals-are-trading-in-the-green/

On Thu, Feb 6, 2020 at 7:17 AM

Precious Metals Are Trading In The Green

Great and Wonderful Thursday Morning Folks,

      Gold is in the green with the trade at $1,568.60 up $5.80 after hitting a high of $1,571.30 with the low at $1,556.00. Silver is leading the early morning charge with its trade at $17.755 up 15.3 cents with the high at $17.820 and a low at $17.575. The US Dollar’s rally seems to have stalled, for now, with its value pegged at 98.16 up 0.002 after reaching 98.21 with the low, that needs to go, at 98.075. Of course, all of this happened while we slept, before 5 am pst, the Comex open, the London close, and after the predicted minority split in the acquittal of President Trump on 2 counts, and as we proceed to look into the Biden Ukrainian link of deceits involving Deep State actors appointed by a past president.

      The Emerging markets currency watch is “all in the green” with the Venezuelan Bolivar now pricing Gold at 15,666.39 regaining 108.86 Bolivar with Silver at 177.328 Bolivar putting back 1.748 into the price. Argentina’s Peso now has Gold valued at 94,996.46 putting back more Peso’s into the price than was taken during the previous days write up with Silver now trading at 1,074.53 Peso’s more than doubling the take away from yesterday. Over in Turkey, Gold is valued at 9,395.01 Lira adding back 69.85 with Silver regaining

1.099 T-Lira’s with the price at 106.341. It seems that the uptrend is stronger than the pullbacks, maybe this will lead into the primaries soon enough.

      February Silver Delivery Demands now shows a post of 11 fully paid for contracts with no trades yet suggesting a drop in count of 73 proving nothing. Once again, because Comex math decided to use Common Core Logic as we are lead to believe receipts might have been given here, or sent to London, or it’s simply another ledgering trick inside a criminal element still allowed to steal, even though the banks management is now being looked at as the investigations are expanded. Silver’s Overall Open Interest remains over weighted in paper but that too is starting to show lack of enthusiasm for the shorts with the count at 223,742 Overnighters proving a reduction of 1,538 Obligations offering up the idea that the shorts see more upside pricings instead of returns.

      February Gold’s Delivery Demands now stand at 2,380 fully paid for contracts waiting for receipts and with a Volume of 66 posted up on the board with a trading range between $1,565.50 and $1,551.60 with the last trade at $1,565.30. The delivery count has been reduced by 402 contracts as we undoubtably know these numbers won’t jive either with any other numbers given by Comex. Gold’s Overall Open Interest is now calculated at 653,828 Overnighters showing the shorts removing 1,483 contracts as we wait for more unsettling news from China and its weaponized coronavirus outbreak devastating its population and quite possibly many other nations as well. If this outbreak gets worse, we expect China may shut down its international stock and commodity trading hubs, and as of our early morning report, these exchanges are still producing numbers (Thank God).

      Accounting practices have been destroyed by computer algos and bad actors to the point that no one below the canopy of criminals in government and banking, knows what the real numbers are. Even the Baltic Dry Index is trying to reach a new low. What’s worse (maybe) is the Velocity of Money, which has made a New All Time Low (since the first quarter of 1959) and while we’re observing the Federal Reserve print machines churning in overdrive at the same time the 2 other most populated nations are doing the same.

      This will end badly for those not prepared for the currency correction of our lifetime. We remain diligent and strong because we think we are prepared as we hold on tight to our beliefs with Silver and Gold in our possession, a smile on our face and a positive attitude in our heads no matter what. We hope you too, are prepared for tomorrow. Hang in there and keep the faith, and as always …

Stay Strong!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early FRIDAY 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: 6.9695/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9691   /shanghai bourse CLOSED UP 48.42 POINTS OR 1.72%

HANG SANG CLOSED UP 706.96 POINTS OR 2.04%

 

2. Nikkei closed UP 554.03 POINTS OR 2.38%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 98.31/Euro FALLS TO 1.1001

3b Japan 10 year bond yield: RISES TO. –.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.85/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 51.30 and Brent: 55.46

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.36%/Italian 10 yr bond yield UP to 1.00% /SPAIN 10 YR BOND YIELD UP TO 0.39%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.36: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.16

3k Gold at $1564.70 silver at: 17.77   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

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

3m oil into the 51 dollar handle for WTI and 55 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 109.90 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 .9745 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0721 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.36%

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 1.65% early this morning. Thirty year rate at 2.12%

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

6.  TURKISH LIRA:  UP  TO 5.9876..

Futures Hit All Time High On Trade, Virus Optimism

And just like that, US equity futures hit an all time high of 3,357.75 overnight on a combination of trade and virus optimism.

Contracts on all main US equity indexes pointed to record highs and a fourth day of gains after China said it will lower levies on $75 billion of U.S. goods next week, likely satisfying part of the interim trade deal. And not just the US: stock markets across the world gained on Thursday, with MSCI’s world equity index rising 0.5%, boosted by the unexpected announcement by China to cut tariffs on some U.S. goods by as much as half (even as Beijing plans to invoke the emergency clause in the Tariff 1 deal to limit its purchases of US goods), amid renewed “coronavirus is contained” optimism (even as China reports numbers that look increasingly manipulated) as investors press their bets that the global economy would avoid long-term damage from the coronavirus (even as Goldman cuts Q1 GDP growth by 2% and Fitch says if the epidemic is not contained into Q2, China’s GDP growth in Q1 could be closer to 3%).

Following yesterday’s blistering move higher in US stocks, as both the S&P and Nasdaq reached record highs after jobs and service sector indicators suggested the economy could continue to grow this year even as consumer spending slows, propelling the Dow almost 500 points higher also following an unconfirmed report that a cure for the coronavirus is in the works (even as the WHO denied all such speculation), momentum from Wall Street spilled from Asia into European markets, gathering pace as investors assessed prospects for help to the global economy in the form of government stimulus and looser policy from central banks.

Europe’s Stoxx STOXX 600 index gained 0.4% to a record high, amid a handful of strong earnings reports helping, even as a 2.1% decline in German factory orders in December – the fastest pace in more than a decade – undermined recent data suggesting that manufacturing is slowly recovering.

Indexes in Frankfurt, Paris and London all made solid gains, rising between 0.3% and 0.7%. Italy’s biggest bank UniCredit rose 5% after it posted a lower-than-expected fourth-quarter net loss. ArcelorMittal SA jumped the most since 2016 after expressing optimism on the outlook for steel demand this year, and Societe Generale SA rose after pledging to boost shareholder returns.

Earlier in the session, Asian stocks pushed higher, not only on US momentum, but also after China said it would halve tariffs on some U.S. goods, which traders interpreted as potentially improving negotiating conditions for a second phase of a trade accord after the two countries signed off on an interim deal last month. In reality it just means China is desperate to obtain goods cheaper, and also means that Beijing will most likely be unable to satisfy the terms of the Phase 1 deal as there is now way its slowing economy and collapsing supply chains will be able to buy up to $200BN in US goods over the coming year. In any case, the announcement, which came after China’s central bank eased policy last weekend, helped MSCI’s broadest index of Asia-Pacific shares outside Japan jump 1.6% as bluechip Chinese shares gained 1.9%.

Before China’s announcement, markets were already beginning to emerge from safe-haven assets and bet on the virus being a short-term shock, paradoxically even while the human toll continues to grow.

As we reported last night, another 73 people on the Chinese mainland died on Wednesday from the virus, the highest daily increase so far, bringing the total death toll to 563, the country’s health authority said on Thursday. Statistics from China indicate that about 2% of people infected with the new virus have died, suggesting it may be deadlier than seasonal flu but less deadly than SARS, another reason that investors remain relatively calm. Of course, Coronavirus is now vastly more widespread than SARS ever was and it is still spreading at an exponential pace, but the algos were far less concerned about this.

“The market is looking through the near-term disruption to activity and seeing potential for quite a sharp rebound later this year on the back of even looser policy,” said Tim Drayson, head of economics at Legal & General Investment Management.

“Companies are going to continue to struggle in the short term” with disruptions and forgone business due to the virus, said Joe Zidle, chief investment strategist at Blackstone Group Inc. But China’s moves in recent days to reopen markets and inject stimulus “gave global investors a degree of confidence that the Chinese policy makers had at least taken the worst-case scenario off the table,” he said, despite zero evidence to suggest that the pandemic is even remotely close to being contained.

In FX, investors also pursued risk-on bets as China’s onshore yuan climbed 0.2% to its strongest level since Jan. 23 after the tariff cuts were announced. The Australian dollar also gained. The safe-haven Japanese yen slipped to a two-week low against the dollar.  Other major currencies were largely quiet. The euro stood flat at $1.0996 while the dollar against a basket of six major currencies slipped a fraction to 98.262. The pound dropped in London morning hours as Brexit worries continued to weigh in low-volatility markets.

Rates were mixed: after initially bond yields rose, with 10-year U.S. Treasury yields climbing to 1.68% from a five-month low touched on Friday, the yield has since dropped back to 1.64%. Euro zone bond yields told a similar story, with German bund yields initially climbing to their highest in almost two weeks before fading.

“The coronavirus is continuing to spread so we need to remain cautious. But markets now appear to think that there will be a quick economic recovery after a short-term slump,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

In commodities, oil futures rose for a second day amid what Reuters dubbed “investor optimism over unconfirmed reports of possible advances in combating the coronavirus outbreak in China, which could cause fuel demand to rebound in the world’s biggest oil importer.” Brent rose by 66 cents, or 1.2%, to $55.97 a barrel having risen 2.4% in the last session. Despite the move, it is still down about 15% so far this year.

Of note, OPEC+ reportedly recommend an output cut of 600k BPD, according to OPEC delegates, but the meeting broke without resolution. This follows earlier source reports that the JTC could today agree on the need for a deeper oil reduction of at least 500k bpd, according to sources. Russian Energy Minister Novak said Russia is not yet ready to announce its position on the OPEC+ action related to the coronavirus outbreak, notes that time is needed to assess the impact, added that it is premature to talk about decisions.

Copper, after suffering the longest decline on record, showed some signs of stabilization although it remained depressed overall. Shanghai copper extended its rebound into the third day, rising 1.4% from 33-month low hit earlier this week.

To the day ahead now, we’ll get Q4’s unit labour costs and nonfarm productivity, as well as weekly initial jobless claims. From central banks, ECB President Lagarde will be appearing before the European Parliament’s Economic and Monetary Affairs Committee, while the ECB will also be releasing their Economic Bulletin. Elsewhere, we’ll hear from the ECB’s Villeroy and Dallas Fed President Kaplan. Finally, earnings releases to watch out for today include Twitter, L’Oréal and Philip Morris International. Finally, EU trade chief Phil Hogan will be in the US today to meet with the US officials including Trade Representative Robert Lighthizer. The trip comes as the US and EU are seeking a trade agreement, so expect some headlines on that front.

Market Snapshot

  • S&P 500 futures up 0.2% to 3,343.25
  • MXAP up 1.8% to 170.63
  • MXAPJ up 1.6% to 551.41
  • Nikkei up 2.4% to 23,873.59
  • Topix up 2.1% to 1,736.98
  • Hang Seng Index up 2.6% to 27,493.70
  • Shanghai Composite up 1.7% to 2,866.51
  • Sensex up 0.4% to 41,322.51
  • Australia S&P/ASX 200 up 1.1% to 7,049.20
  • Kospi up 2.9% to 2,227.94
  • STOXX Europe 600 up 0.2% to 424.64
  • German 10Y yield rose 1.4 bps to -0.345%
  • Euro up 0.05% to $1.1005
  • Brent Futures up 0.7% to $55.64/bbl
  • Italian 10Y yield rose 1.3 bps to 0.798%
  • Spanish 10Y yield rose 1.9 bps to 0.319%
  • Brent futures up 0.1% to $55.36/bbl
  • Gold spot up 0.5% to $1,563.29
  • U.S. Dollar Index down 0.05% to 98.25

Top Overnight News from Bloomberg

  • Health officials raced to develop treatments and improve testing for the new coronavirus that has claimed 563 lives in China, though the World Health Organization cautioned a vaccine is a long way off
  • The U.K. will pursue an “early trade deal” with Australia as Prime Minister Boris Johnson seeks to deliver on his promise of a boost to the country’s fortunes after it leaves the European Union
  • Chancellor of the Exchequer Sajid Javid’s ambition to lift U.K. economic growth toward itspost-war average of almost 3% a year is “quite unrealistic.” warned the National Institute of Economic and Social Research
  • The Bank of Japan shouldn’t hesitate to bolster monetary easing if price momentum faces greater risks, board member Takako Masai says in a speech to local business leaders in Nara, Japan
  • Pete Buttigieg was clinging to a narrow lead over Bernie Sanders in the Iowa caucuses as the state’s Democratic Party continued to struggle Wednesday with releasing long-delayed results. The former South Bend, Indiana, mayor had 26.5% of state delegate equivalents, barely besting the Vermont senator’s 25.6%, with 92% of more than 1,700 precincts reporting results
  • The U.S. Senate voted to acquit President Donald Trump on charges he abused his power and obstructed Congress, ending a historic, bitterly partisan fight and leaving the final judgment on his actions up to voters in November
  • A 2.1% decline in German factory orders in December — the fastest pace in more than a decade — undermined recent data suggesting that manufacturing is slowly recovering; Germany January construction PMI separately rose to 54.9 from 53.8 in December
  • EU Trade Commissioner Phil Hogan will be in Washington on Thursday for the second time in less than a month, as the 27- nation bloc seeks to revive a transatlantic commercial truce
  • India’s central bank left interest rates unchanged for a second straight meeting, while keeping the door open for more easing to support the economy when inflation eases

Asia-Pac equity markets got a lift on the tailwinds from Wall St. where S&P 500 and Nasdaq posted record closes with sentiment underpinned by US data and hopes of a coronavirus treatment in the works despite the World Health Organization denying any breakthrough. ASX 200 (+1.1%) was led higher by outperformance in energy amid a rebound in crude prices and strength in the largest weighted financials sector to reclaim the 7000 level, while Nikkei 225 (+2.4%) received an additional boost from favourable currency flows, as well as a deluge of earnings including Toyota. Elsewhere, Hang Seng (+2.6%) and Shanghai Comp. (+1.7%) conformed to the heightened global risk appetite after unverified reports that a Chinese university research team found an “effective” drug to treat people with Coronavirus and as several mainland pharmaceutical stocks hit limit up, with gains later exacerbated after China announced to cut tariffs by as much as 50% on USD 75bln of US goods effective February 14th. Finally, 10yr JGBs were subdued in which prices declined below 152.50 amid the lack of demand for safe havens and after reports of China’s move to reduce tariffs on US goods which nullified the slightly improved 30yr JGB auction results.

Top Asian News

  • Singapore to Exempt Listed Local Developers From Home-Sale Rule
  • India’s ECB-Like Move to Inject Cash Stokes Short-Term Bonds
  • Philippines Central Bank Cuts Key Rate Amid Coronavirus Risk

European equity markets have waned off highs [Eurostoxx 50 +0.4%] seen since the cash open as sentiment turned more cautious in early EU trade. This follows on from a solid APAC lead where investors cheered China’s surprise rollback in USD 75bln worth of US goods in the hope of a reciprocal move by the US to help ease some of the burden arising from the coronavirus outbreak. Nonetheless, major bouses are still in positive territory although the FTSE 100 (+0.1%) modestly lags its peers amid losses in some of its large-cap stocks including some miners amid a decline in base metal prices. Sectors are largely mixed with no clear reflection of the current risk sentiment – financial names modestly outperform amid a higher-yield environment. In terms of individual movers, triple-listed ArcelorMittal (+9.3%) rose post-earnings topping EBITDA expectations whilst also reporting a decent YY increase in iron-ore shipments and noting that the supportive inventory environment leads to expectations of growth in steel consumptions. Total (+1.6%) shares rose in light of its Q4 adj. net income topping estimates, an increase in FY dividend, a USD 2bln share buyback programme and a target of over USD 5bln in cumulative savings this year – albeit shares could be underpinned by price action in the energy complex. On the flip side, Royal Mail (-8.3%) shares slumped to the foot of the Stoxx 600 post-earnings amid the assessment of a challenging outlook.  Other earnings-related movers include Unicredit (+5.8%), Publicis (+4.5%), Nordea Bank (+4.8%), Sanofi (+2.4%), Dassault Systemes (-3.1%), ICA Gruppen (-7.1%), and Assa Abloy (-3.1%). Elsewhere, NMC Health (+5.6%) sees a day of reprieve after sources noted that the Co’s founder would be returning with an “active position” and separate source reports that Private Equity firms, including Apollo, circled the Co. in the past. Finally, Deutsche Bank (+6.0%) shares extended on its gains after Capital Group Companies disclosed a 3.1% stake in the Co.

Top European News

  • Swiss Risk Repeat of History as Trump Sets Sights on Europe
  • Lagarde Says ECB Running Out of Room to Fight Global Threats
  • Stock Values in Johannesburg Are So Low They’re Tough to Resist
  • Surprise Drop in German Factory Orders Shows Slump Isn’t Over

In FX, the Buck remains bolstered by firm US Treasury yields, albeit off best levels in relatively rangebound trade, as the index consolidates above 98.000, but fails to derive enough momentum independently or indirectly to extend gains beyond the next upside chart objective ahead of 98.500 (98.402 Fib). However, the Dollar may glean more bullish impetus if today’s domestic data in the form of Challenger lay-offs, initial claims and Q4 labour costs or productivity is upbeat awaiting Friday’s NFP release.

  • NZD/GBP/AUD – In contrast to other G10 currencies that are largely meandering vs the Greenback, Cable has drifted back below 1.3000 again and the Kiwi has retreated further below the 0.6500 handle amidst Waitangi holiday-thinned volumes and more underperformance against the Aussie. Indeed, Aud/Nzd is holding ‘comfortably’ above 1.0400 even though Aud/Usd has slipped back under 0.6750 where hefty option expiry interest resides (1.3 bn) in wake of sub-forecast trade and retail sales overnight. Back to Sterling, Wednesday’s EU MiFID revelations are still reverberating, while the UK Trade Department announces to implement a most favoured country tariff system post-Brexit transition on January 1 next year.
  • EUR/JPY/CAD/CHF/NOK/SEK – All on a more even keel vs their US counterpart, as the Euro pivots 1.1100 amidst conflicting vibes via significantly worse than expected German factory and VDMA engineering orders in contrast to an upbeat ECB President Lagarde and monthly bulletin echoing signs of economic stabilisation. Meanwhile, broadly, but less pronounced risk-on sentiment continues to hamper the Yen and Franc just shy of 110.00 and 0.9750 respectively, though the Loonie is not really benefiting within tight 1.3275-88 confines in the run up to tomorrow’s Canadian jobs data. Elsewhere, the Scandi Kronas have both waned after yesterday’s decent recovery gains, with Eur/Nok back up near 10.1500 and Eur/Sek close to 10.5600 against the backdrop of sagging crude and a drop in Swedish house prices.
  • EM – Although many regional currencies are down vs the Dollar, reports about China cutting US import tariffs by up to 50% on February 14 have kept the Yuan afloat, while the Real could get a boost from the BCB signalling that last night’s 25 bp rate cut may be the last in the current cycle. Conversely, the Rand has been undermined by a deterioration in SA business sentiment on top of the aforementioned general Greenback bid.

In commodities, WTI and Brent front-month futures have given up a bulk of their overnight gains as risk aversion crept into the markets in early EU trade. Furthermore, OPEC’s JTC has extended its meeting to three days from the originally scheduled two. Sources noted that the technical committee could agree on a total reduction of at least 500k BPD – in fitting with some of the prior sources which noted the JTC would be assessing several scenarios that have cut options between 500-900k BPD. Later, a delegate noted of an agreement of 600k BPD cut but disagreement on whether to hold an emergency meeting. Russian Energy Minister Novak played down the reports and noted that Russia is not yet ready to announce its position on the OPEC+ action and that it is premature to talk about decisions. Russia has been historically adamant to commit to deeper cuts as Russia’s economy is more resilient to lower oil prices. WTI and Brent reside just above USD 51/bbl and USD USD 55/bbl respectively, having retreated from current intraday highs of USD 52.15/bbl and ~USD 56.50/bbl. Elsewhere, spot gold has been supported by the aforementioned shift in sentiment, with the yellow metal decoupling itself from a rising USD and residing just above its 21 DMA at ~USD 1563/oz (vs. low ~USD 1552/oz). Elsewhere, copper prices conformed to the abated risk appetite, with prices now back below USD 2.6/lb vs. an overnight high of USD 2.6144/lb. Finally, Dalian iron ore closed the session higher by almost 1% following three consecutive sessions of losses as China’s surprise tariff rollback announcement underpinned prices.

US Event Calendar

  • 7:30am: Challenger Job Cuts YoY, prior -25.2%
  • 8:30am: Nonfarm Productivity, est. 1.6%, prior -0.2%; Unit Labor Costs, est. 1.25%, prior 2.5%
  • 8:30am: Initial Jobless Claims, est. 215,000, prior 216,000; Continuing Claims, est. 1.72m, prior 1.7m
  • 9:45am: Bloomberg Consumer Comfort, prior 67.3

DB’s Jim Reid concludes the overnight wrap

Whether it’s the worst of the coronavirus fears being behind us, US politics or solid economic data, the risk-on mood in markets appears to be showing little sign of running out of steam yet. The reality is that it’s probably a combination of all of these factors and with the diary fairly thin on important events today the likely next hurdle for markets to jump is the US employment report tomorrow.

We’ll have a full preview of that in tomorrow’s EMR but in the meantime a quick update on markets. Last night the S&P 500 closed up +1.13% to make a new all-time high and thus more than wipe out the coronavirus driven move lower last month. As it stands the week-to-date return for the index is +3.39% which is the best first three days to start a week since November 28, 2018. In contrast to previous sessions though it was energy stocks that were actually the main driver, supported by the resurgent oil price, with WTI (+2.30%) and Brent crude (+2.45%) both moving higher on hopes of resilient economic demand and it’s worth noting that both are up a similar amount this morning. This drove a rotation into energy stocks, while the tech sector lagged, however the NASDAQ did still edge up +0.43% to a new high also. Similarly, in Europe the STOXX 600 rallied +1.23% and equity vol fell on both sides of the Atlantic with the VIX down 0.9pts to 15.15 and VSTOXX down 0.9pts to 13.60.

It was another decent day for credit too with EUR and USD HY spreads -6bps and -9bps tighter, respectively. Metals also got another lift, most notably copper up another +1.28%. So that makes two days of gains following 13 consecutive daily declines. As to be expected, bond markets have struggled with this risk on spell. Indeed 10y Treasury yields were up +4.8bps yesterday (and +2.2bps this morning) and are up +16.1bps this week while the 2s10s curve has steepened back above 20bps and up about 5bps from the recent lows. In Europe yields were up anywhere from 1-5bps.

The news overnight that China is to halve tariffs rates on $75bn of imports from the US beginning on February 14 has seen markets in Asia push on further this morning. That being said it shouldn’t be surprising news as this comes after both nations had agreed in Phase 1 negotiations that they would reduce tariffs on each other’s goods as part of the deal. The Nikkei (+2.72%), Kospi (+2.82%) and Hang Seng (+2.78%) in particular have seen the biggest moves with the Shanghai Comp up +1.18%. The onshore Chinese yuan is also up +0.18% to 6.962 while the Japanese yen is down -0.12%. Elsewhere, futures on the S&P 500 are up +0.59%.

Just on the latest on the coronavirus, the number of cases and deaths as of this morning has been recorded at 28,018 and 563 respectively. That compares to 24,324 cases and 490 deaths yesterday. It’s worth noting that the improved sentiment yesterday followed a story from Sky News which suggested that testing on animals for a vaccine could start as soon as next week, ahead of possible human studies in the summer. That said, others played down hopes of progress, with an executive director of the World Health Organization’s Health Emergencies Program telling a press conference that “there are no proven, effective therapeutics” for the virus. Also remember that the expert on our DB Research-led conference call earlier this week said that any true vaccine was still months – or more likely years – from being produced at scale.

Staying on the topic, looking at the impact beyond Wuhan, our Asia economics team put out a note yesterday (link here) looking at the potential economic impact across the wider region. For China, they now expect full-year GDP growth will be +5.8% this year, 0.3ppts lower than previously forecast.

Moving on. As noted at the top the data also played a part in yesterday’s moves. Ahead of tomorrow’s jobs report in the US, the ADP’s report of private payrolls rose by +291k (vs. +157k expected) in its strongest month since May 2015. Nevertheless, the ADP report has been wide of the private payrolls figures lately, with December’s ADP report overestimating private payrolls by +60k, while November’s reading came in -122k beneath private payrolls. Elsewhere, the ISM non-manufacturing index rose to 55.5 in January (vs. 55.1 expected) and its highest level since August, though unlike with the ADP, the employment index actually fell to 53.1, the weakest since September. Finally from the US, the annual trade deficit narrowed to $617bbn, the first reduction in the annual trade deficit since 2013, though the monthly figure for December had a slightly larger deficit than expected, at $48.9bn (vs. $48.2bn expected).

Staying with the US, our economics team put out a note yesterday (link) updating their 2020 outlook – specifically when considering the Phase 1 trade deal, Coronavirus, and Boeing headwinds. They now estimate that growth in the first half will average 1.9% but activity should accelerate to 2.5% in the back half, leaving full year growth (Q4/Q4) at 2.2%. In addition our global economists see a hit to world real GDP in the current quarter as a result of the coronavirus of -2%pts for q/q growth at an annual rate. (or one fourth that for the four-quarter growth rate). For the year as a whole they expect growth to be reduced by only 0.2%, with some of that loss being made up in 2021. See the link here.

Over in Europe, the main data came from the PMI releases, where the UK in particular outperformed expectations following the country’s December election. The composite PMI rose to 53.3, up from the flash reading of 52.4 and the strongest reading since September 2018, while the services PMI was also up to 53.9 (vs. flash 52.9). Others also saw upward revisions, with the Euro Area composite PMI up to 51.3 (vs. flash 50.9), adding to signs that the economy has turned a corner, and Germany’s composite PMI was up to 51.2 (vs. flash 51.1). The question will be whether this positive momentum can be maintained if the coronavirus outbreak starts to affect the global economy.

In other news, the US impeachment saga came to an end yesterday as the Senate voted to acquit President Trump. The move was widely expected, as it would have required a two-thirds majority in the Republican-controlled chamber to convict the President. Republican Senator Mitt Romney voted to convict the president on one of the two charges, breaking ranks with his party.

To the day ahead now, and data releases include German factory orders for December, as well as the country’s construction PMI for January. From the US, we’ll get Q4’s unit labour costs and nonfarm productivity, as well as weekly initial jobless claims. From central banks, ECB President Lagarde will be appearing before the European Parliament’s Economic and Monetary Affairs Committee, while the ECB will also be releasing their Economic Bulletin. Elsewhere, we’ll hear from the ECB’s Villeroy and Dallas Fed President Kaplan. Finally, earnings releases to watch out for today include Twitter, L’Oréal and Philip Morris International. Finally, EU trade chief Phil Hogan will be in the US today to meet with the US officials including Trade Representative Robert Lighthizer. The trip comes as the US and EU are seeking a trade agreement, so expect some headlines on that front.

 

3A/ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 48.42 POINTS OR 1.72%  //Hang Sang CLOSED UP 706.96 POINTS OR 0.46%   /The Nikkei closed UP 554.03 POINTS OR 2.38%//Australia’s all ordinaires CLOSED UP .96%

/Chinese yuan (ONSHORE) closed UP  at 6.9695 /Oil UP TO 51.30 dollars per barrel for WTI and 55.46 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9695 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8834 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL//PHASE I COMPLETE..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/WUHAN/DRONE FOOTAGE

Just take a look at the footage of Wuhan: it is a ghost town of 11 million inhabitants

(zerohedge)

Eerie Drone Footage Of Wuhan Reveals China’s Real “Ghost City”

In its latest video on the Wuhan coronavirus outbreak, the New York Times managed to fly a drone over the city of Wuhan, which has been under quarantine/lockdown orders from Beijing for more than a week.

The footage is haunting – like something out of an apocalyptic horror movie.

Roughly 80% of virus-related deaths have occurred in Wuhan since the outbreak began. But there’s reason to believe the death toll – particularly in Wuhan – might be much higher.

END

China/USA

Conditions inside China must be really bad as China now slashes USA imports by 50%.  The stock markets around the world skyrocket on news of tariff reduction without understanding the real reason for the move.

(zerohedge)

China To Slash Tariffs On Some U.S. Imports By 50%

While global equity futures continue to soar amid a return of the coronavirus is contained” following reports that new drugs are in the pipeline to treat the deadly disease on Wednesday, China’s economy is expected to print sub-5% GDP in Q1. This has forced an increasingly desperate Beijing to unexpectedly announce on Thursday that it will slash tariff levied on 1,717 U.S. goods by up to 50%. 

China’s finance ministry stated that on Feb. 14, additional tariffs levied on some goods will be reduced from 10% to 5%, and others lowered from 5% to 2.5%, reported Reuters. The finance ministry didn’t explicitly state the value of goods affected by tariff reductions.

In a separate statement, the ministry said tariff reductions would mostly be for products announced during the trade war. They said further tariff adjustments could depend on the bilateral economic and trade situation.

The ministry said soybean tariffs would be reduced from 30% to 27.5%. Tariffs on crude will be halved from 5% to 2.5% after Feb. 14.

 

“Any move to de-escalate is always good. Especially when the market is overwhelmed by the news about virus, good news about tariff is refreshing,” said Tommy Xie, head of Greater China research at OCBC Bank in Singapore.

“The announcement shows China’s commitment to implement the phase one trade deal despite the disruptions from the recent virus outbreak,” said Xie.

Hu Xijin, the editor from the China Global Times, tweeted Wednesday asking the U.S. to give China some slack in the phase one trade agreement. This could mean China’s expected $200 billion in U.S. purchases over the next two years might not happen.

China’s planned tariff reductions come as the coronavirus outbreak continues to broaden with more than 28,000 cases and 565 deaths globally. Much of the epidemic is centered in China.

Two-thirds of China’s economy is offline, which will produce an economic “shock” that will send GDP tumbling sub-5% in 1Q.

An economic “shock” in China will likely spill over into the rest of the world in the quarter. The reason: China’s economy has significantly increased in importance since the 2003 SARS epidemic because of the breathtaking growth of the Chinese economy over the past two decades.

 

Finally, those wondering why China would hint at major weakness by proactively pursuing such a move that puts it at a tactical disadvantage with the US, well that’s the $64 trillion question, and the answer appears to be viral.

Sven Henrich

@NorthmanTrader

How long before people realize that China proactively capitulating on tariffs is a sign of how serious the economic impact of this virus situation actually is?

END

More on the conronavirus pandemic: it is spreading violently inside China and also outside of China

(zeorhedge)

“We’d Rather Die At Home” – Chinese Citizens Rebel Against Mandatory Quarantine As Lockdown Expands

Thousands of athletes around the world breathed a sigh of relief on Thursday when Japanese Prime Minister Shinzo Abe confirmed that the Summer Olympics in Tokyo won’t be delayed. Then again, if the outbreak continues to worsen in Japan and the broader region, who is going to want to come if they don’t feel safe?

As the second week of global pandemic panic comes to a close, China, increasingly frustrated that their ruse with the WHO didn’t manage to calm the international community, again registered its “strong objections” to the growing number of travel bans directed at its citizens.

The warning followed a decision by Taiwan’s health authority to ban all international cruise ships from docking at the island from Thursday as the number of suspected outbreaks aboard cruise ships grows.

The global death toll has ticked higher, reaching 566 overnight, while the total number of confirmed cases has broken above 28,000 to 28,384.

More than a dozen countries have imposed some kind of restriction on foreigners who have recently visited China. Within China, images of police clad in hazmat suites and touting infrared thermometers have become frighteningly common. Many airlines cancelled passenger routes to China, and some are extending those cancellations out to March or April.

“China is strongly concerned and dissatisfied,” said a spokeswoman for China’s Foreign Ministry. “We hope relevant countries will bear in mind overall relations and people’s interests and resume normal operation of flights to guarantee normal people-to-people exchange and cooperation.”

“I must stress that certain countries’ ill-advised decisions to suspend flights to and from China are neither cool-headed nor rational,” she added.

But while Beijing tries to spin the narrative to accuse other countries of racism, some brave journalists have shared the stories of families brave – or foolish – enough to speak out against the regime.

One resident of Wuhan who has been stuck in the city since the quarantine told the BBC that his uncle died in a quarantine because of supply shortages.

The image of life in Wuhan is every bit as bad as the most chilling conspiracies would have you believe.

“My uncle actually died in one of the quarantine points because there are no medical facilities for people with severe symptoms. I really hope my father can get some proper treatment but no-one is in contact with us or helping us at the moment.”

“I got in touch with community workers several times, but the response I got was, ‘there’s no chance of us getting a bed in the hospital.'”

Beijing, which just announced a spate of new treatment-related projects in Wuhan and the surrounding area, seemingly can’t get beds online fast enough. Because the government is literally condemns some elderly patients to die in their homes.

But for people like us, we can’t even get a bed now, let alone get one in the new hospitals.

If we follow the government’s guidelines, the only place we can go now is to those quarantine points. But if we went, what happened to my uncle would then happen to dad.

So we’d rather die at home.

Many are saying that if they knew authorities would lock down Wuhan last week, they would have left for the holiday earlier.

What I want to say is, if I knew they were going to lock down the city on 23 January, I would have definitely taken my whole family out, because there’s no help here.

If we were somewhere else, there might be hope. I don’t know whether people like us, who listened to the government and stayed in Wuhan, made the right decision or not.

In news from outside China, Indonesia is reportedly planning to build a quarantine center on an uninhabited island to isolate coronavirus victims, even though Indonesia has yet to record a single case of the virus, though 243 have been quarantined on the island of Natuna.

Across the globe, health officials are racing to develop treatments and testing methods for the virus. Wuhan, ground zero of the outbreak, opened an emergency test laboratory on Wednesday to begin human trials.

Over in Hong Kong, a top public health official has declared a community outbreak, according to the SCMP.

A day after the city government revealed that it would impose a mandatory 14-day quarantine on anybody crossing into Hong Kong from China, the city government has provided some more details on how it will combat the crisis. Most of the new cases in the city are being caused by human-to-human transmission. Six people have been diagnosed with the coronavirus over the past few days, five of whom had not left the city recently. Of the 21 cases in total, eight are believed to have no travel history relevant to the coronavirus.

Circling back to the mainland, local authorities in the city of Tianjin announced on Thursday that it would ban the exit and entry of its villages and compounds, becoming the latest city to essentially quarantine its entire population. Over in Wuhan, authorities are now demanding that all residents report their temperatures at least once per day.

So, that’s 60+ million people under quarantine in China. And though the pace of new cases in the country has slowed slightly, the virus is accelerating, especially in Asia.

 

 

4/EUROPEAN AFFAIRS

GERMANY

German industry orders slump on weak euro zone demand, outlook subdued

German industrial orders slump on terrible euro zone demand.. Germany is the strength of Europe and to see if industrial orders slump is not a good sign

(Reuters)

BERLIN (Reuters) – German industrial orders unexpectedly plunged in December on weaker demand from other euro zone countries, data showed on Thursday, suggesting that a manufacturing slump would continue to hamper overall growth in Europe’s largest economy.

Contracts for ‘Made in Germany’ goods fell 2.1% from the previous month, the Statistics Office said. That was the biggest drop since February and compared with the Reuters consensus forecast for a 0.6% rise.

“The orders situation remains terrible,” said Bankhaus Lampe economist Alexander Lampe. “The coronavirus means that we’ll probably have to keep waiting for a turning point.”

Responding to the potential impact of the outbreak of the virus in China, financial analysts have cut their growth outlook for the country, the world’s second-largest economy, with ratings agency Moody’s pointing to a risk to auto sales and production.

In a report entitled ‘Consequences of the coronavirus could cost Germany growth,’ economic institute Ifo said a 1-percentage-point slowdown in Chinese growth due to the virus would reduce German growth by 0.06 point – if the epidemic were to develop similarly to the SARS epidemic in 2003.

“However, there is some evidence that the corona epidemic could be more serious. In this case, the German economy would also be more severely affected,” Ifo added.

The German orders reading for November was revised to a smaller drop of 0.8% from a previously reported fall of 1.3%.

Commenting on the figures, the Economy Ministry said major fluctuations in foreign demand for large transport equipment accounted for about a third of the drop in demand in December.

“Overall, the outlook for the industrial economy remains subdued,” the ministry added.

Highlighting the slowdown, Siemens (SIEGn.DE) on Wednesday reported first-quarter results that missed forecasts after a slowdown in its industrial automation business and problems in its power and gas and wind power operations.

The German economy narrowly dodged recession last year, and the Ifo institute’s monthly survey last week showed business morale weakening, suggesting the economy got off to a slow start in 2020.

Germany’s export-dependent manufacturers are struggling with sluggish demand from abroad as well as business uncertainty linked to trade disputes and Britain’s decision to leave the European Union. The services sector is in better shape.

Chancellor Angela Merkel’s ruling coalition is at odds over how to spend the federal government’s budget surplus of 13.5 billion euros. Her conservatives are calling for corporate tax cuts, while center-left Finance Minister Olaf Scholz favors more public investment.

-END-

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/USA/ISRAEL/PALESTINIANS//

Erdogan states that Trump threatened him after he rejected the “deal of the Century”. The big question was what did he threaten him with.  Erdogan is demanding that Jerusalem be given to the Palestinians and that is a non starter

(zerohedge)

Trump Admin “Threatened Me” After Rejecting Peace Plan: Erdogan

We noted that immediately after President Trump and Israeli Prime Minister Netanyahu’s roll out of the ‘deal of the century’ Mideast peace plan on January 28, Turkey was the first country to condemn it internationally, and just days ago Erdogan’s director of communications, Fahrettin Altun, called it “a declaration of war, not a peace plan”.

In a stunning revelation Wednesday, Bloomberg now reports that President Erdogan says the US is threatening him and Intelligence Chief Hakan Fidan over Turkey’s rejection of the plan.

“Turkey rejected U.S. Middle East plan, which stands for occupation of Palestine and usurping Jerusalem. I talked to Mahmoud Abbas over the phone and met Hamas Leader Ismail Haniyeh face to face in Istanbul” Erdogan said in Ankara, as quoted by Bloomberg.

 

Presidents Trump and Erdogan file image.

“Turkey’s strong reaction forced some Arab countries to step back from their support for the plan. Unfortunately now, U.S. threatens me and my intelligence chief. In addition, some financial institutions in Turkey under threat. Do whatever you can, you won’t succeed,” Erdogan said, underscoring the nature of it as a direct personal threat.

For any proposed peace plan past or present it’s always been crucial that leading Arab nations in the region like Egypt or Jordan be on board. President Trump had initially initially touted support from some Gulf Arab states like Bahrain and United Arab Emirates.

But the Arab League on Saturday declared its official rejection of the plan as bragged about by Erdogan this week.

The pan-Arab bloc said as a result of the emergency session that it “rejects the US-Israeli ‘deal of the century’ considering that it does .  Erdogan is demanding Jerusalem be given to the palestininansnot meet the minimum rights and aspirations of Palestinian people.” Mahmoud Abbas also announced in a scathing speech before the assembly of Arab leaders that the Palestinian Authority (PA) is cutting all ties with the US and Israel.

From the start both the PA and Hamas indicated the plan would be dead on arrival as they were not even privy to negotiations related to key components of the plan, especially the crucial part of the White House plan giving Israel ‘annexation’ rights over at least 30% of West Bank territory.

Erdogan had previously called the plan “absolutely unacceptable” and was quoted in CNN Turk as saying “Jerusalem is sacred for Muslims. The plan to give Jerusalem to Israel is absolutely unacceptable. This plan ignores Palestinians’ rights and is aimed at legitimizing Israel’s occupation.”

end
A super commentary from Victor Davis Hanson from the Hoover Institute as he describes Trump’s brilliance in Middle east policies..
a must read
and special thanks to Robert H for sending this to us
(courtesy Victor Davis Hanson

6.Global Issues

JAPAN, HONG KONG, TRAVELERS OF MANY NATIONS

Yes, this is a nightmare at sea as more than 7,000 travelers are quarantined on two cruise ships.  More have tested positive for the coronavirus.

This will do wonders for the cruise  line industry..

(zerohedge)

Nightmare At Sea – More Than 7,000 Quarantined On Two Cruise Ships Amid Virus Outbreak

Thousands of people are trapped on two cruise ships where coronavirus is quickly spreading. Already, tests are coming back positive, with more expected in the coming days.

More than 7,300 people have been quarantined on two cruise liners, one off Japan and another off Hong Kong, for fears that the deadly virus has infected passengers and crew.

SCMP News

@SCMPNews

20 coronavirus infections have been confirmed on a cruise ship in Japan as thousands remain under quarantine on the vessel.

Embedded video

A total of 3,700 passengers and workers are quarantined on Princess cruise ship, owned by Carnival Corporation & plc., which is moored off Yokohama, Japan.

Twenty passengers have already tested positive for coronavirus, with more expected to test positive in the coming days.

Infected passengers include three Americans, two Australians, seven Japanese, one from Taiwan, two Canadians, one New Zealander, and three Hong Kong citizens. One Filipino crew member is also sick, Carnival said in a statement.

Japan’s Health Ministry said a total of 20 had been infected with the deadly virus on the vessel. It said the rest of the passengers would remain in quarantine for two weeks.

The second ship is the World Dream, a cruise ship operated by Dream Cruises, currently moored in Hong Kong’s Victoria Harbor as a precautionary measure. All 4,000 passengers are undergoing testing after three former passengers tested positive for coronavirus.

RT

@RT_com

Cruise ship under quarantine in , tests for conducted as 30 crew members have fever

MORE: https://on.rt.com/aag1 

Embedded video

Edith Poon, a spokesperson for Genting Hong Kong Limited, the holding company that owns Dream Cruises, confirmed that 30 crew members had symptoms of the virus.

“We are currently waiting for the results to come in,” Poon told USA TODAY. “Upon availability of the results, we shall comply with the Department of Health’s instruction on the next step forward. Until then, as advised by the Department of Health, all passengers of the cruise ship are to remain on board.”

Last week, there was a false alarm aboard the Costa Smeralda, when a female Chinese passenger displayed symptoms of the deadly virus. The ship was in quarantine off the coast of Italy, while health officials conducted tests. It was later discovered she had the “common flu,” and the ship was allowed to embark on the rest of its journey.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1001 UP .0004 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 109.90 UP 0.084 (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/

 

USA/CAN 1.2966 DOWN .0029 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  THURSDAY morning in Europe, the Euro FELL BY 4 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1001 Last night Shanghai COMPOSITE CLOSED UP 48.42 POINTS OR 1.72% 

 

//Hang Sang CLOSED UP 796.96 POINTS OR 2.04%

/AUSTRALIA CLOSED UP 0,96%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 706.96 POINTS OR 2.04%

 

 

/SHANGHAI CLOSED UP 48.42 POINTS OR 1.72%

 

Australia BOURSE CLOSED UP. 96% 

 

 

Nikkei (Japan) CLOSED UP 554.03  POINTS OR 2.38%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1564.40

silver:$17.76-

Early THURSDAY morning USA 10 year bond yield: 1.65% !!! DOWN 1 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.12 DOWN 2  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 98.31 UP 1 CENT(S) from  THURSDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.34% DOWN 0 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.02%  UP 2   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.30%//DOWN 0 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.96 DOWN 0 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 66 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.37% 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 FRIDAY

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

Euro/USA 1.0979  DOWN     .002 or 21 basis points

USA/Japan: 109.94 UP .120 OR YEN DOWN 120  basis points/

Great Britain/USA 1.2935 DOWN .0061 POUND DOWN 61  BASIS POINTS)

Canadian dollar DOWN 2 basis points to 1.3287

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9708    ON SHORE  (UP)..

 

THE USA/YUAN OFFSHORE:  6.9735 (YUAN UP)..

 

TURKISH LIRA:  5.9885 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.02%

 

Your closing 10 yr US bond yield UP 0 IN basis points from THURSDAY at 1.65 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.12 DOWN 2 in basis points on the day

Your closing USA dollar index, 98.44 UP 14  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 FRIDAY: 12:00 PM

London: CLOSED UP 22.31  0.30%

German Dax :  CLOSED UP 96.49 POINTS OR .72%

 

Paris Cac CLOSED UP 52.79 POINTS 0.88%

Spain IBEX CLOSED UP 93.70 POINTS or 0.96%

Italian MIB: CLOSED UP 253.72 POINTS OR 1.09%

 

 

 

 

 

WTI Oil price; 50.92 12:00  PM  EST

Brent Oil:  55.01 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    63.32  THE CROSS HIGHER BY 0.41 RUBLES/DOLLAR (RUBLE LOWER BY 41 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.37 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 :  51.05//

 

 

BRENT :  55.11

USA 10 YR BOND YIELD: … 1.64..down one basis pt…

 

 

 

USA 30 YR BOND YIELD: 2.11..down 3 basis pts..

 

 

 

 

 

EURO/USA 1.0981 ( DOWN 19   BASIS POINTS)

USA/JAPANESE YEN:109.98 UP .162 (YEN DOWN 16 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 98.48 DOWN 19 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2924 DOWN 71  POINTS

 

the Turkish lira close: 5.9879

 

 

the Russian rouble 63.35   DOWN 0.44 Roubles against the uSA dollar.( DOWN 44 BASIS POINTS)

Canadian dollar:  1.3291 DOWN 5 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9708  (ONSHORE)/w

 

 

USA/CHINESE YUAN(CNH): 6.9788 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.32%

 

The Dow closed UP 88.92 POINTS OR 0.30%

 

NASDAQ closed UP 63.47 POINTS OR 0.67%

 


VOLATILITY INDEX:  14.87 CLOSED DOWN .28

LIBOR 3 MONTH DURATION: 1.741%//libor dropping like a stone

 

USA trading today in Graph Form

Traders Buy Everything On Hopes That Virus “Contained” – Stocks, Bonds, Gold, & USD Jump

Stocks were bought with both hands and feet once again overnight, surging to new record highs because the virus is “contained”…

And, reportedly, this is the chart that many suggest shows that ‘peak virus’ has passed as the total number of virus cases shifts from exponential to quadratic…

However, what many do not fully understand about the chart is the policy change that China instigated, locking down homes and telling citizens to only come to hospital if they are severely sick… meaning there are plenty of cases locked up at home, afraid to leave the house as they have seen what happens in many of the leaked videos we see.

No matter that, investors, traders, and the machines bid for stocks, bonds, the dollar, precious metals, copper, and crude.

However, the buy-both-bonds-and-stocks trade has been going on all year (and bonds are outperforming)…

Source: Bloomberg

Chinese stocks shot up again with small-cap-tech in ChiNext leading the charge (up massively)…

Source: Bloomberg

European stocks also extended the week’s gains…

Source: Bloomberg

But US stocks were mixed today – all gapping higher at the open but with small caps and trannies lower…

Record closes for S&P, Dow, and Nasdaq

But everything still up large on the week…

 

Thanks to yet another short-squeeze (the biggest 4-day squeeze in 5 months)…

Source: Bloomberg

Casper IPO’d at 12, opened at $14.50, briefly popped.. then dropped…

Momo and Value resumed their trend after yesterday’s breakdown…

Source: Bloomberg

Cyclicals were flat today as defensives rallied…

Source: Bloomberg

Treasuries were mixed today with yields dropping at the long-end for the first time in 4 days (30Y -3bps, 2Y unch)…

Source: Bloomberg

30Y reversed across the virus gap…

Source: Bloomberg

The Dollar extended its spike above 2-month highs…

Source: Bloomberg

Yuan slipped lower…

Source: Bloomberg

Bitcoin rallied further today, testing $9850 intraday…

Source: Bloomberg

Precious metals rallied on the day but copper leads the week…

Source: Bloomberg

While stocks rallied, gold has been bid the last two days…

WTI ended higher but well off the highs after OPEC+ hopes faded…

Copper was up today but remains notably decoupled from stocks…

Source: Bloomberg

 

 

 

Finally, in case you hadn’t seen this before – we have shown numerous times in the last few years – the real way to make money in US equity markets is simple – Buy the close and sell the open…

WTF!!

The Dow is trading on fun-durr-mentals…

Source: Bloomberg

Still, for now it’s Y2K-deja-vu all over again…

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

Dow Dumps Into Red – Gives Up Overnight Trade/Virus Hope Gains

Well that didn’t last long…

From record high to red in minutes.

S&P and Nasdaq are holding their gains for now…

end

 

ii)Market data/USA

iii) Important USA Economic Stories

the Fed keeps piling money into hedge funds criminally as they have no jurisdiction to do so.  No doubt many of these hedge funds are massively short gold and silver and need the repo money to stay afloat.

a must read..

(zerohedge)

Another Massively Oversubscribed Term Repo Confirms Persisting Liquidity Woes

Two days after dealers unexpectedly flooded the first reduced term-repo (from $35BN previously to $30BN) offered by the Fed, the liquidity shortage in the repo market – which was supposed to be temporary and few if any strategists said would continue beyond year-end – persists, and today the Fed announced that in its latest 2-week term repo (maturing Feb 20), it was $57.25BN in submissions ($35.75BN in TSYs, $21.5BN in MBS) for a maximum $30BN in available reserves.

This means that for the second time in three days, the term repo operation saw a massive oversubscription, which at 1.9x was the 4th highest ever since the Fed restarted term-repos in late September, and just shy of the 2.0x submitted-to-accepted ratio recorded on Monday.

As we concluded on Monday, “the massive demand for term repo today means that the liquidity crisis that continues to percolate just below the surface of the market and has clogged up the critical plumbing within the US financial system, is getting worse, not better, and today’s massive oversubscription indicates that one or more entities continues to face a dire shortage of reserves, i.e., cash.”

We hope that eventually someone at the Fed will address this ongoing issue which was supposed to be resolved over a month ago.

iv) Swamp commentaries)

Grassley and Johnson seeks Hunter Biden’s dtravel records from the secret service. They want to now whether Biden travelled on Air Force 2 with his father and then conducted private business.

(Sara Carter)

Grassley, Johnson Seek Hunter Biden’s Travel Records From Secret Service

Via SaraACarter.com,

Two top Republican Senators are expanding their probe into potential conflicts of interest “posed by the business activities of Hunter Biden” as the Senate investigative committees continue to probe former Vice President Joe Biden’s son’s business activities overseas during his father’s tenure in the Obama Administration.

Sen. Chuck Grassley, Chairman of the Finance Committee, and Sen. Ron Johnson, who already have an ongoing investigation into numerous White House meetings during the Obama Administration with senior Ukrainian officials, sent a letter Wednesday to Secret Service Director James M. Murray requesting information “about whether Hunter Biden used government-sponsored travel to help conduct private business, to include his work for Rosemont Seneca and related entities in China and Ukraine.”

 

Grassley and Johnson say they want the information no later than February 19, according to the letter sent to Murray.

“The Committee on Finance and Homeland Security and Governmental Affairs (“the committees”) are reviewing potential conflicts of interest posed by the business activities of Hunter Biden and his associates during the Obama administration, particularly with respect to his business activities in Ukraine and China,” the letter states.

The two powerful GOP chairmen want “Hunter Biden’s travel arrangements to conduct business related to his dealings in Ukraine and China, among other countries, while he received a protective detail.”

  1. Please describe the protective detail that Hunter Biden received while his father was Vice President.
  2. Please provide a list of all dates and locations of travel, international and domestic, for Hunter Biden while he received a protective detail.
  3. Please provide a list o f all dates and locations o f travel, international and domestic, for Hunter Biden while he received a protective detail. In your response, please note whether his travel was on Air Force One or Two, or other government aircraft, as applicable and whether additional family members were present for each trip.

The Senators also stated in the letter that they have sent other letters to other government agencies questioning ‘potential conflicts of interest’ regarding the deal during the Obama Administration’s Committee on Foreign Investment in the United States (CFIUS) approval to sell off 20 percent of U.S. uranium from the Canadian company that had assets in the U.S. to to the Russian energy giant Rosatom.

The transaction required the the approval of CFIUS, the multi-agency approval committee. At the time Hillary Clinton was head of the State Department, which was a voting member of the CFIUS board.

“In addition to several letters that the committees have sent to other agencies as part of that inquiry, the Committee on Finance also has written to the Department of Treasury regarding potential conflicts of interest in the Obama-era CFIUS- approved transaction which gave control of Henniges, an American maker of anti-vibration technologies with military applications, to a Chinese government-owned aviation company and China-based investment firm with established ties to the Chinese government.

That transaction included Rosemont Seneca Partners, a company formed in 2009 by Hunter Biden, Christopher Heinz, and others.”

The letter goes on to state that “in December of 2013, one month after Rosemont Seneca’s joint venture with Bohai Capital to form BHR, Hunter Biden reportedly flew aboard Air Force Two with then-Vice President Biden to China. While in China, he helped arrange for Jonathan Li, CEO of Bohai Capital, to “shake hands” with Vice President Biden.

Afterward, Hunter Biden, met with Li for reportedly a “social meeting.” After the China trip, BHR’s business license was approved.6 Then, in 2015, BHR joined with Aviation Industry Corporation of China (AVIC) to acquire Henniges, which was the “biggest Chinese investment into US automotive manufacturing assets to date,” Johnson and Grassley’s letter revealed.

 

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

As expected, the Senate acquitted Trump on Wednesday. Willard ‘Mitt’ Romney, who has a seething hatred for Trump, voted with Democrats to convict Trump of abuse of power.  On the second article of impeachment, obstruction of Congress, the vote went along party lines (53-47 to acquit).  Romney becomes first senator in history to vote to convict a president from his own party.

Romney was savaged on social media.  People noted that Mitt employed a fake Twitter account (Pierre Dilecto) to boost his image and he didn’t seek the Bidens as witnesses because he had a Ukraine tie.  In his Senate floor speech before the vote, Romney said Trump’s attorneys provided no evidence that the Bidens committed crimes with Burisma.

Top Romney Adviser Worked With Hunter Biden On Board of Ukrainian Energy Company

https://thefederalist.com/2019/09/26/top-romney-adviser-worked-with-hunter-biden-on-board-of-ukrainian-energy-company/

Former Romney campaign spokesman says conviction decision is “motivated by bitterness and jealousy” http://hill.cm/Qi8wpba

@Peoples_Pundit: Need to correct some people. Mike Kennedy was a strong and viable candidate in Utah. The state party did not want Mitt Romney. Mitt lost the runoff vote at the state party’s convention in West Valley City. But Trump endorsed him and now he has to live with that consequence.

@realDonaldTrump: @MittRomney has announced he is running for the Senate from the wonderful State of Utah. He will make a great Senator and worthy successor to @OrrinHatch, and has my full support and endorsement!  Feb 19, 2018

    @RyanGirdusky: Trump should fire his entire political staff who told him to endorse Romney in 2018

Now that impeachment is over, the Senate will conduct Ukraine and impeachment-related investigations.

@CBS_Herridge: Senators Grassley and Johnson today requested Hunter Biden’s official travel records from the US Secret Service as a part of their ongoing probe into potential conflicts of interest…“whether Hunter Biden used government-sponsored travel to help conduct private business…related entities in China and Ukraine…reportedly flew aboard Air Force Two” @ChuckGrassley  @SenRonJohnson

https://grassley.senate.gov/sites/default/files/documents/2020-02-05%20CEG%20RHJ%20to%20Secret%20Service%20%28Biden%20Travel%29.pdf

@CBS_Herridge: FBI Director Wray on FISA accountability during house judiciary hearing: “The vast majority of the people involved in the conduct you are describing are no longer with the FBI, so they are not subject to our disciplinary process in the first place.  Wray added “there is, of course as you know, the ongoing John Durham investigation. We have been cooperating fully…so I look forward to hopefully having another hearing with you at some point where we can have a very different kind of exchange about the FBI.

Wray: FBI Agents Involved in FISA Debacle Have Been Referred to Bureau’s Disciplinary Office

https://dailycaller.com/2020/02/05/christopher-wray-fisa-discipline/

@AnnCoulter: Pelosi just violated protocol by not giving traditional State of Union introduction: “Members of Congress, I have the high privilege and distinct honor of presenting to you the President of the United States.”  She said: “Members of Congress, the president of the United States”

Parkland father removed from State of the Union speech after shouting at Trump

Guttenberg…was invited to the speech by House Speaker Nancy Pelosi…

https://amp.miamiherald.com/news/politics-government/article239976003.html

SOTU Speeches are theatre and a campaign event for presidents.  Trump not only brazenly made his State of the Union Speech on Tuesday a paean of his [mostly economic] accomplishments, he metaphorically kept spiking the football in Dems’ faces and doing sack dances.  If Schumer delayed the Trump trial vote to embarrass Trump at the SOTU, the scheme backfired bigly.  Like a professional wrestling heel, Trump trolled Pelosi into performing a senseless, self-destructive act.

After Trump concluded his SOTU Speech, Pelosi dramatically tore up her copy of the speech.

https://twitter.com/LizRNC/status/1224898842992283648

NYT: Trump Shares Dozens of Posts Attacking Pelosi’s ‘Tantrum’

https://www.nytimes.com/2020/02/05/us/politics/trump-pelosi.html?smid=tw-nytimes&smtyp=cur

Pence: Not Sure if Pelosi “Was Ripping up the Speech or Ripping up the Constitution,”…

https://www.realclearpolitics.com/video/2020/02/05/pence_not_sure_if_pelosi_was_ripping_up_the_speech_or_ripping_up_the_constitution.html

Nancy Pelosi ‘pre-ripped’ pages of Trump’s SOTU speech, video shows

https://nypost.com/2020/02/05/nancy-pelosi-pre-ripped-pages-of-trumps-sotu-speech-video-shows/

@HolmesJosh: A small and petty move by Pelosi that will rightly disgust most Americans. Trump delivered a banger tonight. Best political week of his presidency.

@Peoples_Pundit: I can’t help but to think that he has broken Nancy Pelosi.  Does she realize how badly America is going to view her tonight? That entire performance was embarrassing.

Chicago Tribune’s @John_Kass: Defining moment: As her impeachment gambit goes down in flames, Nancy Pelosi revealed herself to be an angry child, ripping up Trump’s SOTU speech. Rage isn’t a good look, Madam Speaker.

Liberal Law Prof @JonathanTurley: Pelosi’s act dishonored the institution and destroyed even the pretense of civility and decorum in the House… it is a disgrace that should never be celebrated or repeated.  In a single act, she obliterated decades of tradition.

    There has long been a revered SOTU tradition that the Speaker of the House does not exhibit opposition or ridicule for the remarks of a president… Pelosi is shattering that tradition by nodding in the negative and shaking her head.  The facial expressions and head shaking is a new low for the House. Moreover, the protests of members were incredibly inappropriate… Pelosi demolished decades of tradition in this ill-considered, ill-tempered moment. Many will celebrate her conduct and be thrilled by the insults….if she cannot apologize and maintain this tradition, Pelosi should resign as Speaker.

@ABCPolitics: When asked after SOTU why she ripped up Trump’s speech, Nancy Pelosi told reporters it was “because it was a courteous thing to do considering the alternative. It was such a dirty speech.”

Fox’s Marisa Schultz: Pelosi on ripping up Trump speech: “I tore it up. I was trying to find one page with truth on it. I couldn’t.”

Carville Rips Democratic Party, Biden: “We’ve Got To Snap Back” Or We Have Four More Years Of Trump – We’re like talking about people voting from jail cells. We’re talking about not having a border. I mean, come on, people. Every day there are people out there struggling…”  https://www.realclearpolitics.com/video/2020/02/04/carville_rips_democratic_party_biden_weve_got_to_snap_back_or_we_have_four_more_years_of_trump.html

@Barnes_Law: Past nominee finishes in Iowa who competed in Iowa:

Carter 1st

Ford 1st

Reagan 2nd

Mondale 1st

Bush 3rd

Dukakis 3rd

Dole 1st

Bush 1st

Gore 1st

Kerry 1st

Obama 1st

Romney 2nd

Trump 2nd

Hillary 1st

No one who tried to win Iowa won nomination without top-3 Iowa finis

Well that is all for today

I will see you Friday night.

 

 

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