MARCH 4//GOLD DOWN ONE DOLLAR//SILVER UP 3 CENTS//

GOLD:$1641.85  DOWN $ 1.00   (COMEX TO COMEX CLOSING

 

Silver:$17.24  UP 3 CENTS. (COMEX TO COMEX CLOSING)

 

 

 

Closing access prices:

 

 

COMEX DATA

 

ACCESS MARKETS

 

Gold : 1637.00

SILVER: 17.22

 

the comex data is complete tonight

all dat from 4 pm is acccurate//disregard morning/12 noon data as it is totally inaccurate

 

 

 

final…

 

 

 

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

today RECEIVING: 37/66

DLV615-T CME CLEARING
BUSINESS DATE: 03/03/2020 DAILY DELIVERY NOTICES RUN DATE: 03/03/2020
PRODUCT GROUP: METALS RUN TIME: 21:24:37
EXCHANGE: COMEX
CONTRACT: MARCH 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,642.100000000 USD
INTENT DATE: 03/03/2020 DELIVERY DATE: 03/05/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
435 H SCOTIA CAPITAL 7
657 C MORGAN STANLEY 8
661 C JP MORGAN 37
737 C ADVANTAGE 66 8
905 C ADM 6
____________________________________________________________________________________________

TOTAL: 66 66
MONTH TO DATE: 1,013

we are coming very close to a commercial failure!!

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 66 NOTICE(S) FOR 6600 OZ (0.2052 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1013 NOTICES FOR 101,300 OZ  (3.1508TONNES)

 

 

 

 

SILVER

 

FOR MARCH

 

 

70 NOTICE(S) FILED TODAY FOR 350,000  OZ/

total number of notices filed so far this month: 3331 for 16,655,000 oz

 

BITCOIN MORNING QUOTE  8816 up 82 dollars

 

BITCOIN AFTERNOON QUOTE.: 8781  down 19 dollar

 

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Let us have a look at the data for today

 

 

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IN SILVER THE COMEX OI ROSE  BY A STRONG SIZED 1528 CONTRACTS FROM 195,388 UP TO 196,909 CLOSER TO OUR NEW RECORD OF 744,710, (FEB 25/2020.  THE LOSS IN OI OCCURRED WITH OUR 44 CENT GAIN IN SILVER PRICING AT THE COMEX. WE HAD NO LONG LIQUIDATION JUST A MASSIVE SHORT COVERING PLUS A HUGE EXCHANGE FOR PHYSICAL ISSUANCE

 

 

ISSUANCE OF EXCHANGE FOR PHYSICALS:

 

 

 

ISSUANCE OF EXCHANGE FOR PHYSICALS:

 

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 AN ATMOSPHERIC  SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

; MARCH:  00 AND MAY: 2382 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2382 CONTRACTS. WITH THE TRANSFER OF 2382 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 2382 EFP CONTRACTS TRANSLATES INTO 21.63 MILLION OZ  ACCOMPANYING:

1.THE 44 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

1.480    MILLION OZ FINAL STANDING IN FEB

20.970  MILLION OZ INITIALLY STANDING FOR MAR

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 44 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE PROBABLY UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE  SOME SILVER LONGS. AS WE DID HAVE A NET GAIN OF 3903 CONTRACTS OR 19.52 MILLION OZ.

 

 

 

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

6708 CONTRACTS (FOR 2 TRADING DAYS TOTAL 6708 CONTRACTS) OR 33.54 MILLION OZ: (AVERAGE PER DAY: 3354 CONTRACTS OR 16.77 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR: 33.54 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 3.09% 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:          441.21 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 181.61 MILLION OZ

FEB 2020 EFP’S TOTAL :  ……     259.600 MILLION OZ

MARCH EFP’S SO FAR…..          33.54 MILLION OZ

 

 

RESULT: WE HAD AN GOOD SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1521, WITH THE  44 CENT GAIN IN SILVER PRICING AT THE COMEX /THURSDAY… THE CME NOTIFIED US THAT WE HAD A  VERY STRONG SIZED EFP ISSUANCE OF 2382 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

 

TODAY WE GAINED A STRONG SIZED  SIZED:  3903 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (WITH THE 44 CENT RISE IN PRICE)//

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 2382 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1521 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A  44 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $17.24 // TUESDAY’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 UNDER 1 BILLION oz i.e. 0.9765 BILLION OZ TO BE EXACT or 143% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 130 NOTICE(S) FOR  650,,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//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

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 1.480 MILLION OZ//MAR:20.630 MILLION OZ
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  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 ROSE BY STRONG SIZED 5,971 CONTRACTS TO 691,985 AND MOVING FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE STRONG GAIN COMEX OI OCCURRED WITH OUR HUGE ADVANCE OF 48.55 DOLLARS /// COMEX GOLD TRADING// TUESDAY// WE, MOST LIKELY HAD CONSIDERABLE BANKER SHORT COVERING AND PROBABLY NO LONG LIQUIDATION WITH THAT HUGE RISE IN PRICE.  ON THE TWO EXCHANGES WE GAINED 22,082 CONTRACTS  (68.68 TONNES

 

 

 

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS AND CRIMINALLY SIZED 16,111 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 16,111 JUNE. 0 AND ALL OTHER MONTHS ZERO//TOTAL: 16,111.  The NEW COMEX OI for the gold complex rests at 691,985 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 HUGE INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 22,082 CONTRACTS: 5,971 CONTRACTS INCREASED AT THE COMEX  AND 16,111 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 22,082 CONTRACTS OR 2,208,200 TONNES. TUESDAY, WE HAD A STRONG GAIN OF $48.55 IN GOLD TRADING…...

AND WITH THAT GIGANTIC RISE IN  PRICE, WE STILL HAD A HUGE GAIN IN GOLD TONNAGE OF 68.68  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 $48.55). AND IT SEEMS THAT THEIR ATTEMPT TO FLEECE  APPRECIABLE  GOLD LONGS FROM THE GOLD ARENA WERE UNSUCCESSFUL AS WE HAD A MASSIVE GAIN IN OUR TWO EXCHANGES

BUT  WE HAD  A HUMONGOUS INCREASE IN EXCHANGE FOR PHYSICALS  (16,111) ACCOMPANYING THE STRONG GAIN IN COMEX OI.(5971 OI):  TOTAL GAIN IN THE TWO EXCHANGES:  22,082 CONTRACTS.  WE  PROBABLY HAD HUGE BANKER SHORT COVERING AND NO LONG LIQUIDATION….. JUST A MASSIVE INCREASE IN PAPER OI CONTRACTS ON OUR TWO EXCHANGES.

 

SPREADING OPERATION FOR OUR NEWCOMERS:

WE HAVE NOW COMMENCED IN GOLD 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 APRIL.

 

 

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

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

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX 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 MAR.BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (APRIL), 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 OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAR : 27,571 CONTRACTS OR 2,757,100 oz OR 85.76 TONNES (2 TRADING DAYS AND THUS AVERAGING: 13,786 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 2 TRADING DAY(S) IN  TONNES: 85.76 TONNES

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

THUS EFP TRANSFERS REPRESENTS 85.76/3550 x 100% TONNES =2.41% OF GLOBAL ANNUAL PRODUCTION

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

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   1309.73  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE SO FAR   85.76  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 GOOD SIZED INCREASE IN OI AT THE COMEX OF 5,971 WITH THE HUGE PRICING GAIN THAT GOLD UNDERTOOK MONDAY($48.55)) //.HOWEVER WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 16,111 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX.  I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 16,111 EFP CONTRACTS ISSUED, WE  HAD A HUGE SIZED GAIN OF 22,082 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

16,111 CONTRACTS MOVE TO LONDON AND  5971 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE HUGE GAIN IN TOTAL OI EQUATES TO 22.082 TONNES). AND THIS INCREASE OF DEMAND OCCURRED WITH THE HUGE GAIN IN PRICE OF $48.55 WITH RESPECT TO TUESDAY’S TRADING/// AT THE COMEX.

 

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OUTLINE OF TOPICS TONIGHT

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

1.Today, we had the open interest in SILVER ROSE BY A GOOD SIZED 1521 CONTRACTS FROM 195,388 UP TO 196,909 AND CLOSER TO  OUR COMEX RECORD //244,710 (SET FEB 25/2020).  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.

ALL OF THE GAIN IN COMEX OI WAS DUE TO BANKER SHORT COVERING EXPLAINED ABOVE AND THE ISSUANCE OF HUGE NUMBER OF EXCHANGE FOR PHYSICALS.

(BELOW)

EFP ISSUANCE 2382

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  0:  AND MAY: 2382; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2382 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI GAIN AT THE COMEX OF 5971 CONTRACTS TO THE 2382 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 3903 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  19.52 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: 1.480 MILLION OZ//MAR: 20.965 MILLION OZ

 

 

RESULT: A HUGE SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 44 CENT RISE IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A HUGE SIZED 2382 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. THE ENTIRE LOSS OF COMEX OI WAS DUE TO SPREADER LIQUIDATION AND THAT HUGE ISSUANCE OF EX. FOR PHYSICALS.

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

 

 

 

 

 

(report Harvey)

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 30.52 POINTS OR 1.04%  //Hang Sang CLOSED DOWN 131.51 POINTS OR 0.46%   /The Nikkei closed DOWN 422.94 POINTS OR 1.97%//Australia’s all ordinaires CLOSED DOWN .42%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8807 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8807 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN 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 ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

 

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

iv) Swamp commentaries)

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

 

LET US BEGIN:

 

 

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A STRONG SIZED 5,971 CONTRACTS TO 691,985 MOVING CLOSER TO OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS FALL IN OI WAS SET DESPITE A HUGE  RISE OF $48.55 IN GOLD PRICING //MONDAY’S  COMEX TRADING//). HOWEVER WE ALSO HAD ATMOSPHERIC EFP ISSUANCE,.  THUS WE HAD HUGE BANKER SHORT COVERING AT THE COMEX AND PROBABLY NO LONG LIQUIDATION ……AS OUR TWO EXCHANGES ROSE HUGELY IN  TOTAL OPEN INTEREST..WITH THE MASSIVE GAIN IN PRICE.  BASICALLY LONGS JUST TRANSFERRED OVER TO LONDON COUPLED WITH CONSIDERABLE BANKER SHORT COVERING AND CONSIDERABLE COMEX OI INCREASE.

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF MARCH..  THE CME REPORTS THAT THE BANKERS ISSUED AN ATMOSPHERIC SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 16,111 EFP CONTRACTS WERE ISSUED:

  FEB: 0; MARCH 00 AND APRIL: 16,111,  JUNE : 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 16,111 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 HUGE GAIN OF 22,082 TOTAL CONTRACTS IN THAT 16,111 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 5971 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP ATMOSPHERIC AMOUNTS OF EXCHANGE FOR PHYSICALS COUPLED WITH A HUGE BANKER SHORT COVERING.(AND THE STRONG COMEX OI ADVANCE)

 

 

THE BANKERS WERUNSUCCESSFUL IN LOWERING GOLD’S PRICE DRAMATICALLY //// (IT ROSE BY $48.55). THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL ON THE TWO EXCHANGES ROSE BY A HUGE ….(68.68 TONNES)

 

NET GAIN ON THE TWO EXCHANGES ::  22082 CONTRACTS OR 2,208,200 OZ OR  68.68 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:  691,985 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 69.20 MILLION OZ/32,150 OZ PER TONNE =  2,152 TONNES

THE COMEX OPEN INTEREST REPRESENTS 2,152/2200 OR 97.8% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 

 

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And now for the wild silver comex results

Total COMEX silver OI ROSE BY A GOOD SIZED 1521 CONTRACTS FROM 195,388 DOWN TO 196.909 (AND MOVING CLOSER TO THE NEW ALL TIME RECORD OI FOR SILVER SET ON FEB 25.2020(244,710) ECLIPSING OUR PREVIOUS RECORD, AUGUST 25/2018 RECORD (244,196).  THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9.2018/ 243,411 CONTRACTS) . OUR GOOD OI COMEX GAIN TODAY OCCURRED WITH OUR  STRONG $0.44 INCREASE IN PRICING/TUESDAY.  THE GAIN IN OI WAS DUE TO A HUGE ISSUANCE OF EXCHANGE FOR PHYSICALS COUPLED WITH HUGE BANKER SHORT COVERING .

 

ISSUANCE OF EXCHANGE FOR PHYSICALS

 

 

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF MAR.

MAR ACTIVE DELIVERY MONTH.

 

THE FRONT MONTH OF MAR HAS A TOTAL OPEN INTEREST OF 864 CONTRACTS  WITH A LOSS OF 197 CONTRACTS. WE HAD 130 CONTRACTS SO WE LOST 67 CONTRACTS OR 335,000 OZ WILL NOT  STAND FOR DELIVERY AS THEY ACCEPTED TO MORPH INTO A LONDON BASED FORWARD CONTRACTS AS WELL AS ACCEPTING A FIAT BONUS

 

THE NEXT CONTRACT MONTH OF APRIL SAW A LOSS OF 114 CONTRACTS DOWN TO 559 CONTRACTS. THE BIG CONTRACT OF MAY SAW ITS OI RISE BY 478 DOWN TO 142,856

 

 

We, today, had  70 notice(s)  for 350,000, OZ for the MAR, 2019 COMEX contract for silver

 

Trading Volumes on the COMEX TODAY: 317,312 contracts..

 

 

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  513,358 contracts//high volume

 

 

 

INITIAL standings for  MARCH/GOLD

MARCH 5

 

 

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 XX oz

 

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
66 notice(s)
 6600 OZ
(0.2052 TONNES)
No of oz to be served (notices)
429 contracts
(42,900 oz)
1.334 TONNES
Total monthly oz gold served (contracts) so far this month
1013 notices
101,300 OZ
3.1508 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 XX dealer entry:

We had XX kilobar entries

 

 

 

total dealer deposits:XX oz

total dealer withdrawals: XXX oz

 

we had XX deposit into the customer account

i) Into JPMorgan: XXX  oz

 

ii) Into everybody else XXX

oz

 

 

 

 

 

 

total deposits:  XX  oz

 

 

we had XX gold withdrawals from the customer account:

total gold withdrawals;  XX  oz

 

ADJUSTMENTS: XX

 

 

 

The front month of MARCH saw its open interest register 495 contracts for a gain of 342 contracts.. Surprisingly we had 125 notices filed on TUESDAY so we gained 467 contracts or an additional 46,700 oz will stand on this side of the pond as they refused to morph into London based forwards.  The bankers are seeking rapidly depleting physical supplies of gold.

 

APRIL saw a loss of 5092 contracts down to 460,877 contracts

May saw its initial gain of 18 contracts to stand at 44.

June saw a gain of 10,350 contracts up to 133,641

 

 

We had 66 notices filed today for 6,600 oz

 

 

 

FOR THE  MAR 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 66 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 37 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 March /2020. contract month, we take the total number of notices filed so far for the month (1013) x 100 oz , to which we add the difference between the open interest for the front month of  MAR. (495 contracts) minus the number of notices served upon today (66 x 100 oz per contract) equals 144200 OZ OR 4.4852 TONNES) the number of ounces standing in this  active month of MAR

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

No of notices served (1013 x 100 oz)  + (495 OI for the front month minus the number of notices served upon today (66 x 100 oz )which equals 97,500 oz standing OR 4.4852 TONNES in this active delivery month which is  a great amount for gold standing for a MAR. delivery month.

 

 

 

 

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 37.485 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……………………………………………..                             25.611 tonnes

MARCH………………………………………………………..              4.4852 TONNES

 

total: 160.58 tonnes

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 7 MONTHS OF SETTLEMENTS WE HAVE 25,645 TONNES SETTLED

 

 

IF WE ADD THE 8 DELIVERY MONTHS: 160.585  tonnes

 

Thus:

160.58 tonnes of delivery –

25.645 TONNES DEEMED SETTLEMENT

 

=134.935 TONNES STANDING FOR METAL AGAINST 36.6300 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,353,869.021 oz or  42.111 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:1,177,657.6  (36.6300 tonnes)
true registered gold  (total registered – pledged tonnes  1,177657.6  (36.6300 tonnes)
total registered, pledged  and eligible (customer) gold;   8,663,541.978 oz 269.49 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

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..

 

 

end

 

And now for silver

AND NOW THE  DELIVERY MONTH OF MARCH.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
MARCH 4//2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 301,895.740 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,134,863.019 oz
CNT
Delaware
Scotia
No of oz served today (contracts)
70
CONTRACT(S)
(350,000 OZ)
No of oz to be served (notices)
794 contracts
3,970,000 oz)
Total monthly oz silver served (contracts)  3351 contracts

16,655,000 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 XX inventory movement at the dealer side of things

 

 

total dealer deposits: XXX oz

total dealer withdrawals: XX oz

i)we had  XX deposits into the customer account

into JPMorgan:   xx

into everybody else:  xxx

 

 

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

JPMorgan now has 160.84 million oz of  total silver inventory or 49.92% of all official comex silver. (161.3 million/323.167 million

 

 

 

 

total customer deposits today:  xxx   oz

 

we had xx withdrawals out of the customer account:

 

 

 

 

 

 

 

 

 

 

total withdrawals; xxx  oz

We had xx adjustment:

 

 

total dealer silver:  81.922 million

total dealer + customer silver:  323.167 million oz

 

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The total number of notices filed today for the MAR 2019. contract month is represented by 70 contract(s) FOR 350,000 oz

To calculate the number of silver ounces that will stand for delivery in MAR we take the total number of notices filed for the month so far at 3331 x 5,000 oz = 16,655,000 oz to which we add the difference between the open interest for the front month of MAR. (864) and the number of notices served upon today 70x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 3331 (notices served so far) x 5000 oz + OI for front month of MAR (864)- number of notices served upon today (70) x 5000 oz equals 20,725,000 oz of silver standing for the Feb contract month.

WE LOST 67 CONTRACTS OR 335,000 OZ WILL NOT STAND FOR DELIVERY

 

 

 

 

 

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

 

 

 

TODAY’S ESTIMATED SILVER VOLUME: 68,715 CONTRACTS //volume extremely high

 

 

CONFIRMED VOLUME FOR YESTERDAY: 126,060 CONTRACTS..,,volume extremely high

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 126,060 CONTRACTS EQUATES to 630 million  OZ  90.04% 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 -2.88% ((MARCH 4/2020)

2. Sprott gold fund (PHYS): premium to NAV FALLS TO -2.36% to NAV MAR 4/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 2.88%

(courtesy Sprott/GATA

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

NAV 15.77 TRADING 15.42///DISCOUNT 2.22

 

END

 

 

And now the Gold inventory at the GLD/

MARCH 4//WITH GOLD DOWN 1 DOLLAR: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 934.23 TONNES//

MARCH 3//WITH GOLD UP 48.55 TODAY; NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 934.23 TONNES

MARCH 2//WITH GOLD UP $27.00// no change in gold inventory at the gld//inventory remains  at 934.23 tonness

FEB 28/WITH GOLD DOWN $73.00 WE LOST NO GOLD FROM THE GLD/INVENTORY REMAINS 934.23 TONNES

FEB 27/WITH GOLD DOWN $3.45: A HUGE WITHDRAWAL OF 5.86 TONNES FROM THE GLD

FEB 26./WITH GOLD DOWN  TODAY/ GOLD INVENTORY INCREASES BY 6.15 TONNES//GLD INVENTORY AT 640.09 TONNES

FEB 24/with gold up $28.40//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 933.94 TONNES

FEB 21/WITH GOLD UP $28.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A HUGE PAPER DEPOSIT OF:2.34 TONNES   //INVENTORY RESTS AT 933.94 TONNES

FEB 20/WITH GOLD UP $9.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A HUGE 1.76 TONNES OF GOLD DEPOSIT//INVENTORY RESTS AT 931.60 TONNES

FEB 19/WITH GOLD UP $8.25 TODAY//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 5.85 TONNES//GOLD INVENTORY RESTS AT 929.84 TONES

FEB 18. WITH GOLD UP $17.00//A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.76 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 923.99 TONNES

FEB 14/WITH GOLD UP $6.80 NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 922.23 TONNES

FEB 13/WITH GOLD UP $8.00 TODAY:NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 922.23 TONNES

FEB 12/WITH GOLD UP $1.80 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 6.15 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 922.23 TONNES

FEB 11/WITH GOLD DOWN $9.30 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 916.08 TONNES

FEB 10/WITH GOLD UP $6.10 TODAY:A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.17 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 916.08 TONNES

FEB 7/WITH GOLD UP $3.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS THIS WEEKEND AT; 914.91 TONNES

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

 

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MARCH 4/2019/Inventory rests tonight at 934.23 tonnes

*IN LAST 774 TRADING DAYS: -3.00 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 674 TRADING DAYS: A NET 16313. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 4/SILVER SILVER UP 3 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.880 MILLION OZ//

MARCH 3/WITH SILVER UP 44 CENTS//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: A LOSS OF 5.75 MILLION OZ FROM THE SLV../INVENTORY RESTS AT 361.880 MILLION OZ

MARCH 2//WITH SILVER UP 18 CENTS//NO CHANGE IN SILVER INVENTORY AT THE SLV..INVENTORY RESTS AT 367.632 MILLION OZ//

FEB 28/ WITH SILVER DOWN 18 CENTS: a loss of 1.867 million oz//inventory rests at 367.632 million oz

FEB 27/WITH SILVER DOWN TODAY: A STRONG GAIN OF 747000 OZ OF SILVER INTO THE SLV

FEB 26\WITH SILVER DOWN TODAY,A HUGE GAIN OF 5.319 MILLION OZ OF SILVER INTO THE SLV//INVENTORY RESTS AT 368.752 MILLION OZ

FEB 24/WITH SILVER UP 35 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 TONNES

FEB 21//WITH SILVER UP 22 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 TONNES

FEB 20/WITH SILVER DOWN 7 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 TONNES

FEB 19/WITH SILVER UP 23 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 363.433 MILLION OZ//

FEB 18/. WITH SILVER UP 42 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.433 MILLION OZ.

FEB 14/WITH SILVER UP 10 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 746,000 FROM THE SLV///INVENTORY RESTS AT 363.433 MILLION OZ.

FEB 13/WITH SILVER UP 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 364.179 MILLION OZ/

FEB 12//WITH SILVER DOWN 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 364.179 MILLION OZ/

FEB 11/ WITH SILVER DOWN 19 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 1.166 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 364.179 MILLION OZ//

FEB 10/WITH SILVER UP 8 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF //INVENTORY RESTS AT 363.013 MILLION OZ//

FEB 7/WITH SILVER DOWN 11 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV A DEPOSIT OF 701,000//INVENTORY RESTS THIS WEEKEND AT 363.013 MILLION OZ//

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//

MARCH 4.2020:  SLV INVENTORY

361.880 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.35/ and libor 6 month duration 1.25

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

G0LD LENDING RATE: – .06

 

XXXXXXXX

12 Month MM GOFO
+ 1.27%

LIBOR FOR 12 MONTH DURATION: 1.24

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.03

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.8807/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8834   /shanghai bourse CLOSED DOWN 30.52 POINTS OR 1.04%

HANG SANG CLOSED DOWN 131.51 POINTS OR 0.46%

 

2. Nikkei closed DOWN 422.94 POINTS OR 1.97%

 

 

 

 

3. Europe stocks OPENED ALL MIXED/

 

 

 

USA dollar index UP TO 97.24/Euro FALLS TO 1.1219

3b Japan 10 year bond yield: FALLS TO. –.13/ !!!!(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:: 57.21 and Brent: 64.13

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.32%/Italian 10 yr bond yield DOWN to 1.53% /SPAIN 10 YR BOND YIELD DOWN TO 0.39%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.09

3k Gold at $1421.50 silver at: 16.13   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 57 dollar handle for WTI and 64 handle for Brent/

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

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

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9875 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1077 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.32%

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 2.05% early this morning. Thirty year rate at 2.57%

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

6.  TURKISH LIRA:  UP  TO 5.6988..

The Biden Bounce: Dow Futures Up 666 As Traders Forget About Panicking Fed

Futures have staged a miraculous recovery after yesterday’s historic drop – the biggest ever on a day when the Fed cut rates, and are up some 70 points from yesterday’s close…

… and Dow futures were up a delightfully appropriate 666 points…

… as investors decided to forget all about the Fed’s panicked emergency rate cut and instead took solace from the surprising “Biden Bounce” during Super Tuesday which saw Bernie’s odds for re-election crash, shelving risks of a socialist America, while expectations of an even more forceful global policy responses to the coronavirus kept hopes alive that central banks are just getting started.

Biden, a non-socialist moderate seen as less likely to raise taxes and impose new financial regulations, won primaries in nine states. That set up a one-on-one battle for the Democratic presidential nomination with democratic socialist Bernie Sanders.

In Europe, the STOXX 600 gained 1.5%, on course for a third straight days of gains. Markets in Frankfurt, London .FTSE and Paris gained a similar amount. “After the action from the Fed the market is very, very watchful now for potential moves from other central banks,” said CIBC FX strategist Jeremy Stretch. On Wall Street, S&P 500 futures climbed 1.8% on Biden’s showing, after falling on Tuesday overnight despite the Fed’s rate cut.

The European moves built on gains in Asia, where MSCI’s broadest index of shares ex-Japan rose 0.3%. Asian stocks had a volatile trading session, while purchasing managers’ indexes for Hong Kong and China fell to record lows as the novel coronavirus curtailed business activity.

Markets in the region were mixed, with Jakarta Composite and South Korea’s Kospi gained 2% on a $9.8 billion government stimulus package to mitigate the coronavirus impact. Australia’s S&P/ASX 200 and India’s S&P BSE Sensex Index fell. The Federal Reserve’s emergency interest-rate cut buoyed some markets. Still, the slide in Hong Kong and China PMIs to new lows last month underscored the extent that the public-health emergency may erode company earnings. The Topix declined 0.2%, with Aeon Hokkaido and Usen-Next falling the most. The Shanghai Composite Index rose 0.6%, with Nanjing Chixia Development and Baoding Tianwei Baobian Electric posting the biggest advances

The Fed’s surprise move followed a shift in money market pricing late last week. Futures swung rapidly to anticipate such a cut at the Fed’s March meeting. Now, they imply another 50 basis points of easing by April, even though investors and the Fed itself raised doubts that easing will help deal with a public health crisis.

“If you’re in China and you can direct liquidity exactly where you need to, and have rate cuts where you want them to be, monetary policy is very effective,” said Sebastien Galy, senior macro strategist at Nordea Asset Management. “In the West, in a democracy, monetary policy is less effective – you need to incentivise banks to do what is in to the benefit of the whole.”

Overall, the MSCI world equity index which tracks shares in 49 countries, gained 0.2%. It is still down around 10% falling a brutal sell-off last week as fears over economic damage from the coronavirus gripped markets.

“They’re pushing on a string,” said veteran emerging-markets investor Mark Mobius in a Bloomberg TV interview. “The problem is not so much interest rates, which are already very low globally. The problem is the supply chain coming out of China.” Markets will worsen “unless China can ramp up production,” he said.

As global markets and US rebounded, 10-year Treasury yields slipped even more after breaking below 1% for the first time in 150 years, however they have since posted a bit of a rebound and after hitting 0.93% around the European open, are back above 1.000%.

Eurozone bond yields also held near record lows on Wednesday, with Germany’s benchmark 10-year Bund yield around -0.64%, near six-month lows set on Monday. Some saw the Fed’s extraordinary move as a decision to move hard and early because it expected further economic damage from the spread of the coronavirus.

“They have signalled willingness to take further action, which is why we are seeing a further rally in bonds,” said Tim Drayson, head of economics at Legal & General Investment management. “Some argue that monetary policy can’t fight the supply shock – but it will support demand and confidence.”

Investors were also watching the Bank of England for signs it would follow the Fed. Money markets have moved to fully price in a BoE rate cut of 25 basis points at its next meeting, up from a chance of 80% before the Fed move. Sterling dipped 0.1% against the U.S. dollar and slipped 0.3% against the euro before clawing back some ground.

Elsewhere in FX, the dollar was little changed as Antipodean and Scandinavian currencies advanced as European stock markets rebound after opening lower; the euro erased losses after London came into the market and bunds gave up an early gain, underperforming bonds in the European periphery. Japan’s currency fell against all its major peers, erasing an earlier gain against the dollar, as leveraged accounts covered short positions in dollar-yen after the Nikkei 225 index reversed losses. The Australian dollar extended an advance after growth data for the fourth quarter last year beat estimates.

Looking at the day ahead now, and the data highlight will be the release of the services and composite PMIs for February from around the world. In addition, there’ll be German retail sales for January, the final reading of Italian Q4 GDP and Euro Area retail sales for January. Over in the US there’ll be the ISM non-manufacturing index for February, the ADP employment change for February, and weekly MBA mortgage applications. From central banks, the Bank of Canada will be deciding on rates and the Federal Reserve will be releasing their Beige Book. There’ll also be remarks from incoming BoE Governor Bailey, BoE Deputy Governor Broadbent, and St. Louis Fed President Bullard.

Market Snapshot

  • S&P 500 futures up 1.7% to 3,049.25
  • STOXX Europe 600 up 1% to 384.85
  • MXAP up 0.3% to 157.58
  • MXAPJ up 0.4% to 519.73
  • Nikkei up 0.08% to 21,100.06
  • Topix down 0.2% to 1,502.50
  • Hang Seng Index down 0.2% to 26,222.07
  • Shanghai Composite up 0.6% to 3,011.67
  • Sensex down 0.8% to 38,307.99
  • Australia S&P/ASX 200 down 1.7% to 6,325.40
  • Kospi up 2.2% to 2,059.33
  • German 10Y yield fell 0.3 bps to -0.628%
  • Euro down 0.09% to $1.1163
  • Italian 10Y yield fell 14.7 bps to 0.822%
  • Spanish 10Y yield fell 2.4 bps to 0.164%
  • Brent futures up 1.6% to $52.70/bbl
  • Gold spot down 0.2% to $1,637.18
  • U.S. Dollar Index up 0.1% to 97.26

Top Overnight Headlines from Bloomberg

  • The European Central Bank said it would restrict all non- essential travel until April 20, Japan’s Olympics minister said it would be possible to delay the summer games to later in the year
  • Joe Biden cemented a remarkable comeback on the biggest primary night of the Democratic presidential campaign with victories in nine states across the country, including upsets in Texas and Massachusetts, even as Bernie Sanders took the biggest prize of the night, California
  • China’s car sales fell 80% in February, according to preliminary numbers from the China Passenger Car Association released Wednesday, the biggest monthly plunge on record. Average daily sales improved toward the end of the month compared with the first three weeks, PCA said
  • The European Union imposed five-year tariffs on steel road wheels from China in a dispute that will ease concerns by manufacturers in Europe about whether revamped EU trade- protection rules are strong enough
  • Expectations for rate cuts have climbed in Japan and New Zealand in the wake of Federal Reserve’s emergency interest-rate cut, and in Australia there are now signs that traders are starting to prepare for quantitative easing
  • At Sweden’s central bank the newest policy maker said monetary easing is the wrong way to fight the fallout of the coronavirus while the governor of Norway’s central bank said a “significant” slump in trade triggered by the coronavirus might force him to reassess the outlook for interest rates

Asian bourses traded somewhat mixed following from the weak rollover from Wall St. where all major indices slumped around 3% despite the Fed delivering an emergency rate cut of 50bps, as this failed to alleviate the slowdown concerns from the coronavirus outbreak and the G7 statement on coordinated policy action also provided little in terms of details in which it did not commit to any monetary or fiscal action. Nonetheless, US equity futures partially nursed losses overnight as focus turned to Super Tuesday Democrat Primary results which showed former VP Biden performed well although there was still far to go with the biggest states California and Texas still up for grabs. ASX 200 (-1.7%) and Nikkei 225 (U/C) were lacklustre with Australia pressured by underperformance in tech and the top-weighted financials sector due to virus fallout concerns and the lower interest rate environment, while the Japanese benchmark was indecisive amid a choppy currency and uncertainty regarding the Tokyo Olympics after a minister suggested the event could be held back although Chief Cabinet Secretary Suga later reiterated they will continue to move ahead with preparations. Elsewhere, Hang Seng (-0.2%) and Shanghai Comp. (+0.6%) were temperamental despite speculation the PBoC could lower rates this month and after the HKMA moved in lockstep with the Fed through a 50bps rate cut, as participants also digested further weak data in which Chinese Caixin Services and Composite PMIs printed record lows. Finally, 10yr JGBs surged above the 154.00 level as they tracked the upside in T-notes following the Fed’s emergency rate cut and with the BoJ also in the market for over JPY 800bln in up to 5yr JGBs.

Top Asian News

  • Netanyahu Camp’s Lead Narrows, Encumbering Coalition Building
  • Desperate for Debt Relief, Lebanon Hatches Plan to Avoid Default
  • Rare Default on Green Bond in India Flags Broader Credit Strains
  • India’s Sensex Extends Decline on Reports of New Virus Cases

European equities saw a relatively shaky start to the session before eventually moving back into positive territory (Eurostoxx 50 +0.5%) as markets attempt to gauge the efficacy of recent and potential upcoming stimulus efforts from global authorities. Stateside, futures markets are indicating the likelihood of a positive open on Wall St., however, it remains to be seen whether this is a result of genuine optimism over recent policy responses or merely a fleeting paring back of some of yesterday’s declines. Furthermore, attention in the US will also partially be placed on the fallout from the Democratic “Super Tuesday” which saw a stellar performance for former VP Biden who now holds a total of 320 delegates (at the latest count) vs. 252 for Sanders. In terms of how this will effect the broader performance for stocks going forward, analysis is mixed. Some argue that Biden is more market-friendly than Sanders and thus his success should be seen as a positive, whereas others argue that even though Sanders would be detrimental for markets (should he enter the White House), Trump would be more likely to beat him, with Trump viewed by most as the overall most market-positive candidate. Sectoral performance in Europe is higher across the board with outperformance for material, healthcare and consumer staples. Individual movers include Eurofins Scientific (+7.8%) at the top of the Stoxx 600 post-earnings, Dialog Semiconductor (+3.6%) shares have been supported after posting favourable revenue guidance, whilst Rio Tinto (+3.6%) trade higher after a broker upgrade at SocGen. To the downside, the clear outlier is Intu Properties (-20%) after abandoning its equity placement, whilst Metro AG (-4.2%) are lower following reports of a potential tie-up with Sysco; reports that were later rebuffed.

Top European News

  • Virus Takes Aim at $1.7 Trillion Industry as Tourists Stay Home
  • Day of Reckoning Nears for Intu After It Pulls Share Sale
  • Coronavirus Disrupts Johnson’s Bounce as U.K. Services Slow
  • Billionaire Agnellis Sells PartnerRe to Covea for $9 Billion

In FX, the index and Greenback in general have regained some composure after Tuesday’s slide in wake of the Fed’s early or emergency March policy easing, with the former back above the 97.000 handle within a 97.423-104 range vs yesterday’s 96.926 base. However, Usd/major and EM pairs are mostly softer after FOMC Chairman Powell refrained from signalling that the 50 bp inter-meeting rate cut would likely suffice to protect the US economy from nCoV contagion, leaving the door ajar for more stimulus if necessary.

  • AUD/NZD/CAD/CHF/SEK/NOK – The Aussie appears to be building a firmer base on the 0.6600 handle vs its US peer on the back of firmer than forecast Q4 GDP data that will feed the notion of no back-to-back or follow up action from the RBA after its ¼ point reduction even though Deputy Governor Debelle warns that the bushfires and coronavirus will have more of an adverse impact on the economy in Q1. This has also lifted Aud/Nzd back above 1.0500 as the Kiwi continues to trail behind awaiting the RBNZ’s response to the COVID-19 outbreak later this month, with Nzd/Usd still struggling to advance beyond 0.6300. On that note, the Loonie is deriving some traction from another rebound in crude prices ahead of the BoC, albeit not as much as the Norwegian Crown given Eur/Nok rooted towards the base of a 10.3045-3730 band, as Usd/Cad pivots 1.3350. In terms of market pricing, -25 bp is baked in, but the probability of a like-for-like Fed move is also high at around 80%, hence options assigning a wide 75 pip break-even for the event. Elsewhere, while the SNB sits tight pending its quarterly review next week, Usd/Chf is holding circa 0.9550 and hardly acknowledging Swiss CPI slipping below zero y/y again, but the Swedish Krona has gleaned support from another upbeat PMI to straddle 10.5500 vs the Euro.
  • GBP/EUR/JPY – All on the back foot as the Buck regroups, with Cable still unable to sustain gains above 1.2800 and respecting the 200 DMA (1.2830) amidst heightened BoE policy stimulus calls, while Eur/Usd has faded ahead of 1.1200 and hefty option expiries between 1.1200-05 in 1.6 bn as the coronavirus spreads and especially in Italy. Lastly, the Yen has pared gains around 107.00 following comments from BoJ Governor Kuroda indicating a higher level of vigilance for Chinese epidemic effects and a potentially lower bar for a policy response.
  • EM – Broad recoveries across the region, and with the Lira also acknowledging positive comments from Turkish President Erdogan contending that a ceasefire can be forged at Thursday’s meeting with Russia to try and resolve the ongoing stand-off in Syria.

In commodities, WTI and Brent prices are firmer this morning, following yesterday’s emergency stimulus action by the Fed as markets are firmly on the look-out for action elsewhere, but more pertinently for the complex itself is reports pertaining to OPEC, as the JMMC meeting gets underway today. Comments this morning point towards Russia and Saudi holding bilateral discussions but reports note that Russia are likely to make their decision on cuts at the last moment. In terms of the magnitude of cuts sources point towards a cut around the 1mln mark, but that any figure above the 600k BPD initial JTC recommendation must be considered. These reports have coincided with upside in the crude complex, which saw WTI briefly surpass the USD 48/bbl mark; however, this upside has occurred alongside a general grinding higher in risk sentiment so its unclear how much of the move can be directly attributed to the OPEC commentary. Indicative scheduling for this week’s OPEC events saw the JMMC commence from around 11:00GMT today, with OPEC set to meet tomorrow before the entire OPEC+ committee convenes on Friday. As well as a decision on any additional cuts, focus will be placed on remarks around compliance as countries such as Russia are still not meeting their quota. Looking ahead, today sees the EIA weekly release, which is expected to see a build of 3.333mln barrels which, if correct, is just shy of double yesterday’s API crude build at 1.7mln. In terms of metals, it has been a relatively steady day for spot gold that is currently just shy of the USD 1650/oz mark, which appears to be capping price action and is in proximity to yesterday’s high; after the metal was supported on the emergency FOMC cut.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 1.5%
  • 8:15am: ADP Employment Change, est. 170,000, prior 291,000
  • 9:45am: Markit US Services PMI, est. 49.4, prior 49.4
  • 9:45am: Markit US Composite PMI, prior 49.6
  • 10am: ISM Non-Manufacturing Index, est. 54.9, prior 55.5
  • 2pm: U.S. Federal Reserve Releases Beige Book

DB’s Jim Reid concludes the overnight wrap

From my calculation that’s the 8th emergency inter-meeting Fed cut in my 24.5 years of working in financial markets so it feels like a landmark event especially as the other six have occurred in three clusters (98, 01, and 07/08). Yesterday afternoon we looked at what happened to the S&P 500 in the week, six months, and one year after these last 7 emergency cuts. The medium price move after these cuts were +2.8% (1w), -4.3% (6m) and -9.2% (1yr). When you consider the average 1yr price return (excluding dividends) for the S&P 500 is around 6% then that is a considerable 6 months and one year under-performance when the Fed deems it necessary to do an emergency cut. We’ve put the table in the pdf if you click the full link. 1998 was the big positive outlier as you didn’t see a subsequent recession and we moved into maximum bubble phase with the extra stimulus. That would be the bull hope. However for now the market will debate whether they have fired too much of their armoury too early. With Fed Funds now in the 1-1.25% range it feels a little like the flood defences to zero have seen a big erosion over the last 24 hours. Long-term readers will know that I think the Fed balance sheet will explode in the years ahead with the forward debt profile of the US (and other countries to be fair). I suspect this accelerates that move. To be fair to the Fed they were probably damned if they did and damned if they didn’t.

After the 50bp cut around at 10am EST the Fed said the move was unanimous and mentioned in their statement afterwards that “the coronavirus poses evolving risks to economic activity.” In his press conference, Chair Powell acknowledged the economic implications, saying that “the virus, and the measures that are being taken to contain it, will surely weigh on economic activity, both here and abroad for some time.” He also left open the prospect of further easing, saying that “we will use our tools and act as appropriate to support the economy”. This is the first 50bps move in either direction since the GFC and the market closed pricing in 3.01 25bp cuts, to lower rates a further 75.2bps by the January 2021 meeting, relative to yesterday’s 2.98 cuts and 74.6bps. So the 50bps cut has just led to the market pricing an extra 50bps anyway over the last 24 hours. In response, our US Economics team have accelerated this timeline and now expect another 50bp cut at the March meeting, a move that would be consistent with the historical experience of inter-meeting actions. The situation remains highly fluid, however, and positive developments related to financial markets or the coronavirus spread could justify a delay in any further easing. They will reassess this call ahead of the March meeting. See more at the link here.

Looking at the market reaction, it wasn’t encouraging that the S&P 500 fell sharply after the move. To be fair we went from -1% to just shy of +1.5% in the three minutes after the move, before fading for the rest of the session to be down -3.68% at one point and then settling to -2.81% at the close. We still closed +4.26% above levels before the Fed statement on Friday night for reference. With S&P futures up +1.27% this morning on a stunningly good night for Biden (more below), that gap from the lows has edged a bit wider for now.

10yr Treasuries surged following the decision, with yields falling -16.4bps on the day to another record low of 0.999% yesterday, while the 2s10s curve steepened for a 7th consecutive session, ending up a further +3.8bps. Treasuries are at 0.972% as we type. With US rates hitting new lows across the curve bank stocks led losses yesterday followed by technology stocks. Gold was the major beneficiary following the decision though, ending the session up +3.24%, its largest daily advance since the day after the Brexit referendum. The VIX climbed 3.40 points to finish at 36.82, its 4th close in a row over 30 – the first time that’s happened since November 2011 on the US credit downgrade. US HY spreads widened +8.7bps, at their widest closing levels since 2016.

Overnight in Asia markets are trading mixed with continued high volatility. The Kospi (+2.20%) is leading the gains on the back of the announcement of KRW 11.7tn stimulus by the government and expectations of a rate cut from the BoK at its unscheduled emergency meeting today which is currently underway. Meanwhile, the Nikkei (+0.08%) is trading flat but the Hang Seng (-0.11%) and Shanghai Comp (-0.39%) are down. The Japanese yen is down -0.24% this morning after being up by +1.12% yesterday.

As for overnight data releases, China’s February Caixin services PMI came in at a shocking 26.5 against expectation of 48 (which may not have fully adjusted after the weekend’s numbers), marking the lowest reading (by a very long way) since the series began and in turn bringing the composite PMI to 27.5 (vs. 51.9 last month) also the lowest since the series began. Japan’s final February services PMI came in one tenth higher than flash read at 46.8 while composite PMI was in line with flash read at 47.0. We also have the Bank of Canada rate decision today and markets are now pricing in a 66% chance of a 50bps cut which is substantially up from the start of trading yesterday when markets were expecting just a 25bps cut.

In other news, Bloomberg is reporting overnight that the BoJ is likely to consider downgrading its economic assessment this month due to the expected impact from the coronavirus outbreak. The BoJ meeting is due on March 18-19th. Elsewhere, the latest on the virus is that the WHO head has said that the coronavirus doesn’t transmit as efficiently as influenza but the fatality rate is higher at 3.4%, based on reported cases. Earlier, the fatality rate was assumed to be around 2%.

Turning to super Tuesday, Former Vice President Joe Biden solidified the idea that this might rapidly become a two person race now and he may well be the clear frontrunner again after turning party endorsements and a big South Carolina outperformance into a successful Super Tuesday. It continues to be likely that no one will win a majority of pledged delegates according to fivethirtyeight.com’s model, but now Joe Biden looks to have path to a plurality of delegates. This could lead to the nomination, especially because he would likely get a majority of super delegates on the second ballot. The concern for Biden coming into the night was that Sanders would build too large of a lead in states like California and Texas, the biggest and third-biggest delegate prizes of the night. However while Biden may still end the night with less overall delegates than Sanders – based on what the California and Texas vote counts ends up as – there is now a clear path forward for Biden that may not have existed a week ago in a field with a divided moderate vote. There is now renewed pressure on Joe Biden to continue performing both electorally and on the debate stage (next one is 15-Mar) as we move forward, because he was in the presumptive winner position before and then fell off that perch.

Joe Biden started the night well by building on his strength in South Carolina over the weekend into winning more Southeastern states, picking up Virginia, North Carolina, Alabama, Oklahoma, Arkansas, and Tennessee. Overall Biden has now officially won 8 states. Biden won Minnesota, a state Sanders won 4 year ago. Until recently Minnesota was expected to vote for their home Senator Klobuchar and Biden was not particularly close, but following her dropping out and endorsing of Biden, he was able to win it. This shows just how important the last few days were as the moderate wing came together behind Biden. Biden showed strength in the northeast where he won Massachusetts, Senator Warren’s home state – who has indicated she will not drop out yet, but that is a very disappointing result for her and she may still yet in coming days. He is currently leading in Maine, which would be an upset considering Sanders is the neighboring Senator. Biden is slightly up in Texas and gaining, which would be a major upset as Sanders was banking on running up the vote there.

Senator Sanders has officially won 3 states and will likely win in California which is the biggest prize of the night. At first glance it doesn’t look promising for Michael Bloomberg. Anyway overall Super Tuesday has been a big win for Biden with Sanders being dealt a notable blow. He is still in the race but is now having to catch up against the moderates rallying behind Biden.

Before all this and completing the picture from yesterday, European equities closed half way between the 3 minute Fed rally and the bulk of the US declines and so held on to gains with the STOXX 600 up +1.37%, its strongest day in a month. European sovereign debt also seemed to benefit from the Fed’s surprise move, with the spread of Italian 10yr-bunds falling by -14.6bps yesterday, in its largest move tighter in nearly six months. That came in spite of the fact that the number of Italian cases of the coronavirus has risen to more than 2,000. 10yr bunds yields were relatively unchanged on the day themselves, down -0.1bps. EURUSD strengthened beyond 1.12 for the first time since early January, before paring back some gains to close at 1.118. Even as risk assets were selling off hard, Oil stayed fairly unchanged (Brent -0.08%) and is up c.+1.40% this morning on news that an OPEC+ committee is recommending virus-related cuts of their own ahead of the meeting tomorrow/Friday to try and boost slumping oil prices.

The decision from the Fed came after the conference call earlier in the day between G7 finance ministers and central bank governors. In their subsequent statement, it said that “we reaffirm our commitment to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks.” On the fiscal side, it also said that “G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase.” However, the policymakers didn’t lay out any specific moves for what they’d do next.

Economic data releases have understandably taken a back seat over the last 24 hours, but we did get some key Euro Area data, with the flash CPI reading falling to 1.2% as expected, while the core CPI reading rose to 1.2%, also in line with expectations. The releases coincided with inflation expectations for the Euro Area coming off their record lows, with five-year forward five-year inflation swaps moving up +4.42bps to 1.152%. Meanwhile the Euro Area unemployment rate remained at 7.4% as expected, remaining at its joint lowest since April 2008. Finally, the UK construction PMI surprisingly rose to 52.6 (vs. 49.0 expected), its highest level since December 2018.

To the day ahead now, and the data highlight will be the release of the services and composite PMIs for February from around the world. In addition, there’ll be German retail sales for January, the final reading of Italian Q4 GDP and Euro Area retail sales for January. Over in the US there’ll be the ISM non-manufacturing index for February, the ADP employment change for February, and weekly MBA mortgage applications. From central banks, the Bank of Canada will be deciding on rates and the Federal Reserve will be releasing their Beige Book. There’ll also be remarks from incoming BoE Governor Bailey, BoE Deputy Governor Broadbent, and St. Louis Fed President Bullard.

END

 

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 30.52 POINTS OR 1.04%  //Hang Sang CLOSED DOWN 131.51 POINTS OR 0.46%   /The Nikkei closed DOWN 422.94 POINTS OR 1.97%//Australia’s all ordinaires CLOSED DOWN .42%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8807 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8807 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN 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 ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

1000s Wait For Hospital Beds In South Korea, US Test Shortage Forces Patients To “Sweat It Out”

As the novel coronavirus tears through South Korea’s hot zones, accelerated by the cult members who resisted getting tested after the first few cases emerged, scenes at some of the advanced capitalist economy’s hospitals are beginning to resemble the crowded hallways and demoralizing refusals that were hallmarks of the “bad old days” of mid-January through mid-February, when the novel coronavirus outbreak was at its most severe in Wuhan.

On Wednesday, Reuters reported that hospitals in SK’s hardest-hit areas have been scrambling to accommodate a surge in patients as thousands worried about having the virus crowd into hospitals and beg to be tested. In Daegu alone, 2,300 people were waiting to be admitted to hospitals and temporary facilities retrofitted to treat the massive influx of patients, Vice Health Minister Kim Gang-lip said. A 100-bed military hospital is being outfitted with 200 additional beds.

South Korean President Moon Jae-in on Thursday declared “war” on the virus, apologized for shortages of face masks and promised more support for the worst-hit areas. His office has cancelled a trip to the UAE, which has closed schools for four weeks and cancelled large events to contain the virus as the outbreak in Iran rages out of control. 27 cases have been confirmed in the tiny principality. He also cancelled plans to Egypt (which reported the first cases in Africa) and Turkey (which is in the middle of a nasty spat with Russia).

At least 92 countries have imposed some form of entry restrictions on arrivals from South Korea, including, as VP Pence said earlier, the US.

We’re not certain what the South Korean’s are planning next, but the country’s prime minister highlighted a planned $10 billion stimulus package.

“We need special measures in times of emergency,” South Korean Prime Minister Chung Sye-kyun told a cabinet meeting, referring to extra medical resources for hotspots and economic measures including a $9.8 billion stimulus.

“In order to overcome COVID-19 as quickly as possible and minimize the impact on the economy, it is necessary to proactively inject all available resources.”

To be sure, if there’s one thing South Korea is getting right, it’s the testing: the country has ramped up testing capacity to 10,000 tests a day. In the US, hundreds, if not thousands, of paranoid patients in the Seattle suburbs and other affected areas are being left on their own as their conditions don’t yet qualify for one of a limited number of tests, according to Bloomberg.

The virus, which is striking in the middle of flu season, has killed at least 9 people in the US. It’s also prompted many who have recently traveled to hot spots – and are now feeling ill (which is not uncommon among travelers) to freak out about the possibility that they may have contracted ‘the virus’. For days, Americans have been taking to Reddit, Twitter, FB etc. to share their frustrating stories about being denied a coronavirus test.

One woman who lives in the Seattle area with her husband and kids said she called the hotline after her entire family fell seriously ill all at once. But they weren’t tested because they didn’t fit the criteria which required that people had traveled to a hot spot to warrant testing. These restrictions, implemented to conserve tests as the government tries to bolster supply, delayed diagnosis of a couple of cases in Washington State.

Soon after spending the day in a Seattle suburb where coronavirus spread, Linda Backstrom began feeling sick herself.

Her twin sons fell ill, too, as did her husband, who has multiple sclerosis. They had fever, sore throats and aches. But when she called a hotline run by the Pierce County health department, Backstrom was told her family didn’t qualify for testing because no one had traveled to an affected country, had direct contact with an infected person or developed pneumonia.

“I don’t think I have the coronavirus,” said Backstrom, 58. “But, as a citizen, I’m wondering why this government doesn’t have access to testing. It doesn’t make any sense.”

Coronavirus struck at the height of regular flu season. It has killed at least nine Americans and also has fed a mounting frustration and even panic among feverish, sniffly citizens – most of whom likely don’t have the novel virus. People want to get assessed, jamming hotlines, creating competition for scarce tests and prompting jealous comparisons to other countries where testing has been ubiquitous.

Dr. Scott Gottlieb said yesterday that the administration was “catching up”, despite evidence showing it’s on track to fall well short of its promise to distribute 1 million tests by week’s end. President Trump’s political rivals have seized the opportunity to accuse him of botching the outbreak response.

“The lack of test kits is a national disgrace,” San Francisco Mayor London Breed wrote in a letter to Vice President Mike Pence on Tuesday. “We will not be able to contain, treat, or mitigate the effects of the virus if we cannot diagnose infection.”

At this point, Trump has gone on record to dismiss the outbreak threat enough times that, if the outbreak is worse than expected, or if it succeeds in crashing the economy, he will have only himself to blame if he loses the general to Joe Biden.

b) REPORT ON JAPAN

 

3 C CHINA

“Ground Zero For Trade” – Port Of Long Beach Warns Of Shipping Slump From China

Investors are grossly underestimating the potential economic impact of Covid-19 as the first signs of China’s supply chain meltdown are now washing ashore on US West Coast ports.

The Port of Long Beach, the second-largest containerized port in the US, has had two top officials warn in the last several weeks of chilling effects of supply chain disruptions from China.

Last week, the Deputy Executive Director of Administration and Operations for the Port of Long Beach Noel Hacegaba warned China’s economic paralysis led to the increase of blank sails between China and the US. He said port activity plunged in January and February, with expected weakness to continue through March.

Hacegaba said the slowdown at Long Beach is starting to hit the local economy around the port. He said it could only be a matter of time before it triggers a broader slowdown in the region, and even maybe in the overall US economy.

As we’ve noted in many pieces of creaking global supply chains fast emerging in China and spreading outwards, Deutsche Bank’s senior European economist Clemente Delucia last month pointed out in a report titled “The impact of the coronavirus: A supply-chain analysis” that the US is overly exposed to a crashing China economy.

As for the second Long Beach official, Bloomberg quoted Mario Cordero, executive director of the port, who said cargo volumes are expected to slump 9% YoY in February due to declining shipments from China.

Cordero said February’s YoY loss is nearly double of 2019’s decline of 5.4%, which has already resulted in a 50% reduction in labor at the port. He said the East Asia shipping route accounts for 90% of shipments through the port.

“The port of Long Beach is ground zero for trade,” warns Cordero. “There was uncertainty with the trade war, but the coronavirus has taken it to chaotic.”

Downward pressure from supply chain disruptions in China has now spilled over into the rest of the world. The transmission mechanism to the US is West Coast ports. The port Long Beach handles $200 billion in trade annually and supports 2.6 million trade-related jobs across the country, including almost 600,000 in Southern California.

As for other West Coast ports, reports of a containerized volume declines from China are inevitable. These ports are a critical artery of the US economy’s transportation infrastructure and essential for the flow of imports and exports, representing about 12.5% of US GDP.

A slowdown of containerized volume at Long Beach and other West Coast ports could suggest a broader economic downturn is ahead for the US economy.

end

China Composite PMI Crashes To Record Lows As Services Economy Implodes

Stagnating consumption amid the coronavirus epidemic has had a great impact on China’s service sector in February, as one would expect.

February PMI data signalled the first reduction in business activity across China’s service sector on record due to restrictions implemented to contain the recent coronavirus outbreak. Firms across all sectors reported on the damaging effect that the virus was having on the economy via company closures and travel restrictions, with total new orders also falling at a record pace. Restrictions around travel also impacted firms’ ability to source workers, leading a renewed fall in staff numbers. Consequently, backlogs of work rose at a substantial pace.

Commenting on the China General Services and Composite PMI data, Dr. Zhengsheng Zhong, Chairman and Chief Economist at CEBM Group said:

“The Caixin China General Services Business Activity Index fell to 26.5 in February, about half the reading of the previous month, marking its first drop into contractionary territory since the survey launched in November 2005. Stagnating consumption amid the coronavirus epidemic has had a great impact on the service sector.

1) Demand for services shrank sharply. Both the gauges for total new business and new export business dropped to their lowest levels on record.

2) It was difficult for service providers to recruit workers, and backlogs of work climbed. The drop in the employment gauge was relatively small, but its February reading marked the lowest point on record. The measure for outstanding orders surged to a record high. Supply capacity across the service sector was insufficient amid restrictions on the movement of people.

3) The measure for input costs dropped at a steeper rate than that for prices companies charged customers, because of a sharp decline in supply capacity.

4) Business confidence also fell to a record low. Although policies have been introduced to provide tax and financing support for industries and small businesses heavily impacted by the epidemic, service companies were still concerned about uncertainties resulting from the epidemic.

In sum, Goldman concludes that the Caixin and NBS PMI surveys suggest activity growth in February was extremely weak. We expect service activity to partially recover in March, but in absolute level, it might take longer for services activities to normalize than manufacturing activities.

Additionally, the Composite Output Index signaled the sharpest decline in total Chinese business activity on record in February, as company closures and travel restrictions were put in place due to the coronavirus outbreak.

“The Caixin China Composite Output Index dropped to 27.5 in February from 51.9 in the previous month. While the gauges for new orders, new export orders and employment all weakened to their lowest levels on record, the gauge for backlogs of work rose to a record high. The decline in input costs was greater than that in output prices because upstream industries’ supply capacity was less affected.

“The coronavirus epidemic has obviously impacted China’s economy. It is necessary to pay attention to the divergence of business sentiment between the manufacturing and the service sectors. While recent supportive policies for manufacturing, small businesses and industries heavily affected by the epidemic have had a more obvious effect on the manufacturing sector, it is more difficult for service companies to make up their cash flow losses.

And as China’s Composite PMI collapses, US and Japan are also in contraction with Europe – for now – somehow managing to cling to expansion…

But the funniest thing of all is the fact that Chinese stocks are dramatically outperfoming US and European since the start of the crisis…

Thanks National Team for making it all seem awesome!

END
I was right all along:  the Covid 19 is a bioweapon and the seafood market theory has now been officially demolished.  As i stated in previous commentaries, the virus was stolen out of Winnipeg lab and arrived at the Wuhan facility. They probably injected the HIV sequence.
(zerohedge)

Wuhan Seafood Market, Ground-Zero For Coronavirus Outbreak, Demolished

A seafood market at the heart of the coronavirus outbreak has been demolished two months after it was closed down, according to journalist Jennfer Zeng.

曾錚 Jennifer Zeng@jenniferatntd

Just learned it was demolished yesterday. 有人说确实是昨天在拆了。 https://twitter.com/jenniferatntd/status/1234835463350910979 

曾錚 Jennifer Zeng@jenniferatntd

#Wuhan Huanan Seafood Market was claimed to be the origin of #COVID2019 #Coronavirus #CoronavirusOutbreak, although we may never be able to find out, as the market was closed and everything cleaned up on Jan 1. It was said that this market is now going to be demolished.

Embedded video

According to a scientific study published in The Lancet66% of patients admitted to Wuhan hospitals (27 out of 41) as of January 2nd had been exposed to the Huanan seafood market.

And as Botao Xiao of the South China University of Technology notes, the market was just 918 feet from a Wuhan level-4 biolab conducting experiments on bat coronavirus.

Of course, China denies that the4 virus originated at the seafood market – publishing via CCP mouthpiece The Global Times a report titled: “New Chinese study indicates novel coronavirus did not originate in Huanan seafood market.”

According to the brand new study by Chinese researchers published on Feb 21,  the novel coronavirus may have begun human-to-human transmission in late November from a place other than the Huanan seafood market in Wuhan. Of course, we already knew that, but what is critical is that until now, Beijing was adamant in sticking to the official narrative that it was the Huanan seafood market in Wuhan where the disease emerged, despite not providing any information on what animal was the vector, or who was patient zero.

The study suggests that patient zero – who has not yet been identified, and whose identity holds the key to unraveling the mystery of the coronavirus source – transmitted the virus to workers or sellers at the Huanan seafood market. The crowded market facilitated the further transmission of the virus to buyers, which caused a wider spread in early December 2019. According to the researchers, the new coronavirus experienced two sudden population expansions, including one on January 6, 2020, which was related to the Chinese New Year’s Day holiday.

So, COVID-19, which is 96% identical to bat coronavirus, didn’t escape from a level-4 biolab that was experimenting on bat coronavirus, located 918 feet from the first cluster of cases – according to China. And now, the seafood market at the heart of the outbreak which has killed over 3,000 globally and continues to rapidly spread, is no more.

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/CORONAVIRUS

Iran Temporarily Frees 54,000 Prisoners As Covid-19 Devastates Overcrowded Jails

In under two weeks Iran’s leaders have gone from denial, to a seeming attempt at cover-up, to in some cases getting sick themselves to now talking a major military and volunteer mobilized response. This as the official death toll as of Wednesday has risen to 92, including 2,922 confirmed cases as overnight 586 new cases were reported.

And in the latest sign that desperation and panic have kicked in as coronovirus victims’ bodies pile up at local morgues, Tehran is actually freeing prisoners on a mass scale in what appears a sign that Covid-19 is rapidly spreading among the country’s crowded prison population.

“Iran has temporarily released more than 54,000 prisoners in an effort to combat the spread of the new coronavirus disease in crowded jails,” the BBC reports.

 

Evin prison in Tehran, via The Mirror.

The stipulation, according to a statement from Iran’s judiciary, is that inmates post bail but more importantly that they test negative for Covid-19.

Importantly, this could potentially lead to the freedom of some political prisoners and foreigners from the West who’ve long been languishing in Iranian jails, including the infamous Evin political prison in Tehran.

The deadly virus is reportedly spreading among the close-quartered inmate population, threatening at least one American detainee, as NBC reports:

The lawyer for an American held in Iran said on Monday that his client is at “serious risk” of contracting the coronavirus after another inmate held near his cell tested positive for the illness.

A detainee held in the same prison ward as Iranian-American Siamak Namazi was diagnosed with coronavirus and has been removed, Jared Genser, a U.S. lawyer working on behalf of Namazi, said in a statement.

Namazi has been held since 2015 after being charged with “collaboration with a hostile government,” the United States. His lawyer said further: “To keep Siamak at Evin prison in the midst of a coronavirus outbreak and without access to testing or even basic medicines constitutes cruel, inhuman, or degrading treatment in violation of Iran’s obligations under the Convention Against Torture,” according to the report.

There’s also growing concern in the UK over British detainees at the prison, with a Foreign Office spokesman saying Tuesday“We call on the Iranian government to immediately allow health professionals into Evin prison to assess the situation of British-Iranian dual nationals there.”

 

Evin prison, file image.

Concern is focused on British-Iranian charity worker Nazanin Zaghari-Ratcliffe, also jailed five years ago after allegations of espionage, which she had denied. According to the BBC:

Tulip Siddiq cited the Iranian ambassador to the UK as saying that Ms Zaghari-Ratcliffe “may be released on furlough today or tomorrow”.

Her husband said on Saturday that he believed she had contracted Covid-19 at Tehran’s Evin prison and that authorities were refusing to test her.

But Mr Esmaili insisted on Monday that Ms Zaghari-Ratcliffe had subsequently been in contact with her family and “told them about her good health”.

Iranian officials began sounding the alarm last month over the vulnerable prison population as a key demographic through which the virus could spread rapidly.

 

Nazanin Zaghari-Ratcliffe, who has been held at Evin for five years, via The Guardian.

“Addressing prison wardens across the country Ali-Asghar Jahangir said prisoners should not be sent to courts unnecessarily and without due coordination,” US media wing Radio Farda earlier reported. “He also said all visits to prisons except for judicial and health officials should stop, prisoners should not be transferred between prisons and family visits to take place behind glass barriers.”

Sanctions-wracked Iran has the worst coronavirus outbreak outside the disease’s believed origin point in China, at a moment the majority of Covid-19 deaths have been reported to be outside China for the first time.

Media reports have lately suggest the true number of infected inside Iran is actually closer to 20,000 with no signs of stopping in the near term.

END

6.Global Issues

FEMA Is Preparing For Coronavirus “Emergency Declaration”

Authored by Mac Slavo via SHTFplan.com,

As Americans scramble to prepare themselves for the possibility that the coronavirus outbreak becomes a pandemic, FEMA (Federal Emergency Management Agency) is also preparing.  FEMA is “aware of the gravity of the situation” and ready to assist in a coronavirus response.

FEMA officials are preparing for an “infectious disease emergency declaration” by the president that would allow the agency to provide disaster relief funding to state and local governments, as well as federal assistance to support the coronavirus response, according to agency planning documents reviewed by NBC News.

The Trump administration would have to use the 1988 Stafford Act to enable FEMA to provide such disaster assistance. Emergency declarations are most often used in the event of natural disasters but can be used to help manage disease outbreaks.

“To me, this is another indication that the president and the White House are finally aware of the gravity of the situation,” said Michael Coen, who was FEMA chief of staff during the Obama administration.

“They need to consider all tools available to them and have contingencies for action.”

But it isn’t immediately clear just what all of that could mean.

“I actually find this reassuring,” said Tim Manning, who was a FEMA deputy administrator under President Barack Obama.

“I hope this discussion has been happening continuously over the last couple of months.”

An emergency declaration would allow FEMA to provide disaster medical assistance teams, mobile hospitals, and military transport, among other kinds of federal support, Manning said.

FEMA’s disaster relief fund has a current balance of $34 billion, according to the latest agency update. “It’s money that’s sitting there and ready,” said another former FEMA official, who declined to be identified. –NBC News

END

end

CORONAVIRUS UPDATE//

US House Passes $8.3 Billion Virus-Fighting Bill As New York Case Total Climbs To 11: Live Updates

Summary:

  • New York has reported another 5 case, raising the total to 11.
  • Pence says US death toll has climbed to 10
  • The US House has passed an $8.3 billion to fight the virus.
  • Italy finally confirms school closure
  • Italy will ban public events, and close cinemas and theaters even though the government denied an earlier ANSA report that the country would also close schools & universities momentarily
  • Fla reports 4th case
  • CDC investigating cruise ship ‘Grand Princess’ linked to cluster of cases in NorCal
  • Italy urges elderly people to stay indoors if possible
  • Irag confirms 3rd death
  • Slovenia confirms 1st case
  • Brazil records 3rd case
  • Ecuador confirms 3 new cases, raising total to 10
  • Pence confirms after meeting airline execs that travelers from Italy & SK would be tested multiple times
  • German finance minister declares outbreak “a global pandemic”
  • Russia blames “enemies” for spreading fake news about outbreak
  • Israel urges people to stop shaking hands, will quarantine travelers from most of Europe
  • EU reports a second coronavirus case at its headquarters in Brussels
  • France has reported 28 new coronavirus cases, bringing the total to 285
  • UK cases surge by 34 to a total of 85 – a 66% surge.
  • China reported 119 additional coronavirus cases and 38 additional deaths
  • South Korea reported 809 additional coronavirus cases and 4 additional deaths; has carried out 136,000 tests
  • Israel quarantines group of soccer fans
  • “Official” Iranian death toll hits 92
  • Saudi suspends Umra pilgrimage
  • Japan confirms 3 more cases from Osaka

* * *

Update (1650ET)The House passed a roughly $8.3 billion emergency spending package for combating the coronavirus outbreak, sending the legislation to the Senate as lawmakers raced to respond to the quickly spreading disease.

As The Wasll Street Journal reports, the bill provides more than $3 billion for developing treatments for the disease and allocates $2.2 billion for the Centers for Disease Control and Prevention to contain the disease, among other measures. Under the legislation, which the Senate will also likely pass this week, more than $1 billion will go overseas, while $20 million will be made available to fund administrative expenses for loans to U.S. small businesses.

The final deal includes $300 million for the government to purchase the vaccine and other therapeutics and make them available to the public.

It calls on Health and Human Services Secretary Alex Azar to use currently available authority to ensure the price is “affordable in the commercial market,” while additionally stating that he shouldn’t delay the drug’s development.

The legislation, crafted by top Republicans and Democrats, caps less than two weeks of negotiations that began when the White House said it planned to spend roughly $2.5 billion on fighting the disease, an amount lawmakers said was too low. President Trump has subsequently said he would sign whatever package Congress approves.

* * *

Update (1615ET): Slovenia has joined Hungary in confirming its first case of coronavirus.

The Balkan nation is best-known to Americans as the birth country of First Lady Melania Trump.

Meanwhile, here’s a smattering of other corona-related news:

  • STUDENT IN DUBAI INFECTED WITH CORONAVIRUS: ARABIYA
  • UNITED AIRLINES TO REDUCE FLIGHTS, FREEZE HIRING ON CORONAVIRUS
  • AIRBUS IS SAID TO WEIGH A330 OUTPUT CUT AS VIRUS HITS CUSTOMERS
  • CORONAVIRUS CAUSING RECONSIDERATION OF AIR TRAVEL: DOT’S SZABAT
  • GLOBAL AIR PASSENGERS MAY FALL 6%, SZABAT SAYS CITING ANALYSTS
  • ABOUT 15K AIR PASSENGERS CAME FROM CHINA/DAY BEFORE VIRUS: DOT
  • FEWER THAN 1K AIR PASSENGERS TO U.S. FROM CHINA PER DAY: DOT
  • CDC’S ESTIMATED COVID-19 FATALITY RATE IS .05%-1.0%, REDD SAYS
  • CORONAVIRUS CAN SURVIVE ON SURFACES FOR UP TO 1 DAY: CDC’S REDD
  • APPLE HAS RE-OPENED 38 OF 42 RETAIL STORES IN MAINLAND CHINA

* * *

Update (1545ET): New York Gov. Andrew Cuomo confirmed 5 more cases in Westchester, raising the state’s total to 11, during his third press conference on the outbreak in less than 24 hours.

Last time we checked, the family members of infected Westchester lawyer Lawrence Garbuz had also all tested positive. Now, it appears a friend of Garbuz, and that friend’s whole family, have also tested positive. This second infected family is also situated in Westchester County.

* * *

Update (1535ET): Brazil reports a third case, a 46-year-old Colombian national.

* * *

Update (1530ET): Health officials in Baghdad have reported their second death in the capital city; it marks the first death in Iraq as a whole (a death was also reported in the town of Sulaimanyah).

Raveen Aujmaya@raveenaujmaya

cases in :

Baghdad: 14
Kirkuk: 5
Sulaymaniyah: 5
Najaf: 4
Wasit: 2
Diyalah: 2
Babil: 1
Maysan: 1
Karbala: 1

Total: 35

Deaths: 2

As readers can see, the number of cases in the country has more than doubled in recent days as the virus seeps across the border…

* * *

Update (1440ET): Italy has ordered sporting events to continue without fans until April 3, the AP reports.

As we head toward the Euro 2020, get ready to see more of this.

And the UAE just barred people from attending soccer games.

And now that Japan has started the conversation about a possible delay of the Olympics…it’s looking increasingly likely that it will be delayed, if not cancelled outright.

Back in Seattle, NYT has more information about the latest rash of cases:

A high school in the Seattle suburbs was closed on Wednesday through the end of the week, after a student tested positive for the virus. The Renton School District said it had learned of the test result for a student at Hazen High School late on Tuesday and had closed the school on the advice of county health officials.

The student was at home recovering, the district said. County health officials were tracing all those who had come into contact with the student in recent days.

Also on Tuesday, Amazon emailed its staff in the Seattle area saying that it had learned that an employee in one of its buildings in the South Lake Union neighborhood had tested positive. The employee had not been to work since Feb. 25, the email said.

US lawmakers have reportedly reached a deal on $8.3 billion in emergency coronavirus spending bill, which includes nearly $8 billion in funding for agencies fighting the virus, and $500 million to allow Medicare providers to administer tele-health services better suited to the elderly.

Racing to confront a growing public health threat, key lawmakers in the House and Senate reached a deal on Wednesday to provide $8.3 billion in emergency aid to combat the novel coronavirus, and the House planned a vote later Wednesday to approve it, according to three officials familiar with the negotiations.

The bipartisan package, which includes nearly $7.8 billion for agencies dealing with the virus and came together after days of rapid negotiations, is substantially larger than what the White House initially proposed in late February.

It also authorizes roughly $500 million to allow Medicare providers to administer tele-health services so that more elderly patients, who are at greater risk from the virus, can receive care at home, according to two of the officials. They spoke on condition of anonymity in advance of a formal announcement.

Meanwhile, some more information about Cali’s first death: The elderly patient had tested positive Tuesday and was in “critically ill” condition at Kaiser Permanente in Roseville.

* * *

Update (1425ET): Minutes after Washington confirmed US death No. 10, California has reported its first coronavirus-linked death, the 11th in the country.

The death was reported in Placer County, which had reported two cases, including an older adult who was “critically ill” late Tuesday.

According to the Sacramento Bee, Placer County reported that the critically ill patient was in isolation at a local hospital, becoming that county’s second reported case of the virus, while Contra Costa Health Services said it confirmed the first locally originating case of COVID-19 involving a resident of the East Bay Area county. Both were “presumptive” positives as of last night.

Placer County officials said the critically ill patient was likely exposed to the virus while on a Grand Princess cruise ship that traveled from San Francisco to Mexico between Feb. 11 and Feb. 22. Another case linked to the cruise ship was reported by Sonoma County health officials earlier.

So, it’s possible that Cali’s first virus-linked death caught the virus aboard the Grand Princess.

Meanwhile, up in Washington, the number of cases in the two counties in suburban Seattle that have reported all of Washington State’s cases has risen to 39, along with 10 deaths, up from 27 and 9 deaths.

* * *

Update (1420ET): The New York Times reports that roughly 100 households in and around New Rochelle, a small city in New York’s Westchester County, are under self-quarantine after five of the state’s six confirmed cases involved a local family.

* * *

Update (1400ET): Washington State officials have reported another death, though it’s unclear if this is the same death that VP Pence was referring to when he said earlier that the US death toll had climbed to 10.

Algeria has reported nine new cases, according to the health ministry.

* * *

Update (1340ET): France reports another 28 cases, raising its national total to 285. Deaths remained steady at 8.

Officials in Iraq are reporting a death in Baghdad; it’s unclear if this is the same case from earlier, or a different case.

* * *

Update (1325ET): The US CDC has investigated “small clusters” of coronavirus cases linked to previous journey of the Grand Princess cruise ship. The cruise ship is skipping a planned stop in Mexico and will return to SF on Thursday. All passengers who have been aboard the ship since Feb. 21 have been asked to stay in their rooms.

The small cluster of cases in NorCal has been linked to ship.

Here’s the statement from the company to guests:

Dear Princess Guest:

I wish to advise you that today we have been notified by the United States Centers for Disease Control and Prevention (CDC) that they are investigating a small cluster of COVID-19 (coronavirus) cases in Northern California connected to our previous Grand Princess voyage that sailed roundtrip San Francisco from February 11 to February 21. We are working closely with our CDC partners and are following their recommendations.

For those guests who sailed with us on our previous voyage and may have been exposed, in an abundance of caution, the CDC requires you to remain in your stateroom until you have been contacted and cleared by our medical staff. A member of our medical team will be calling you between the hours of 8:00 AM and 11:00 AM this morning. You may order room service while you wait for the medical screening to be completed, and we apologize for any inconvenience.

Here we go again…

* * *

Update (1300ET): As the White House coronavirus meeting in front of a bevy of TV cameras continues, VP Pence has just confirmed that the death toll in the US has climbed to the US, though he didn’t say where the new death has been counted.

The latest total case count in the US is 137, according to BNO. Of those, 48 were repatriated during the evacuations of Wuhan and the Diamond Princess. Only 89 were diagnosed in the US.

This would suggest a mortality rate of roughly 10% if you only count the domestic cases. Since the WHO yesterday confirmed that the latest data would put the rate at 3.4%, this would suggest that thousands of cases haven’t yet been identified in the US.

Over in Europe, Hungary has just confirmed its first case of the virus, becoming the latest country to confirm the virus. Meanwhile, here’s the latest breakdown for Italy.

Norbert Elekes@NorbertElekes

Coronavirus update, Italy:

– 587 new cases today
– 3,089 cases in total
– 1,346 hospitalized
– 276 recovered
– 107 deaths
– 295 in intensive care

In South Korea, government officials have carried out 136,000 tests.

* * *

Update (1240ET): Fla. Gov. Ron DeSantis has confirmed that a fourth person has tested positive for the novel coronavirus in his state.

* * *

Update (1220ET): Italian public health officials have confirmed plans to keep schools closed until March 15.

Italy, the epicenter of the outbreak in Europe, is reportedly preparing to take restrictions to the next level and close all schools and universities in the country for at least two weeks. This comes as the total case count has climbed above 3k, while the death toll has climbed to 107, according to health officials.

Over in the US, reports from Capitol Hill claim the bill to approve emergency coronavirus funding might be ready for a vote Wednesday evening. Reports yesterday claimed the vote wouldn’t come until next week.

* * *

Update (1140ET): During a press conference that they announced last night, LA County public health officials have reported another rash of cases, and declared a local emergency, according to media reports. Meanwhile, the CDC said 40 cases are under investigation.

Watch live below:

LA County declared its first case back in January, but that case has since recovered. With the six new cases, the total in the county has risen to seven. One person is hospitalized, but the other six are being isolated and closely monitored at home.

Here’s more on the announcement, courtesy of ABC 7:

 Los Angeles County officials on Wednesday declared a state of emergency as they confirmed six new cases of novel coronavirus in the county.

The county Board of Supervisors and Department of Public Health made the announcement alongside L.A. Mayor Eric Garcetti and public health officials from Long Beach and Pasadena, which both have their own public health department.

County Supervisors and the Los Angeles City Council are both expected to hear reports during their Wednesday meetings about the status of the illness locally.

The county’s second case of COVID-19 was confirmed on Tuesday by Kaiser Permanente who is overseeing the care of the patient, currently in self-isolation and being treated as an outpatient, a spokesperson said. Additional details regarding the case were not available.

In Orange County, two people tested positive for the novel coronavirus, though the diagnoses were described as “presumptive positive,” pending final confirmation from the Centers for Disease Control and Prevention.

County health officer Dr. Nichole Quick said the county recently improved its ability to perform COVID-19 testing and therefore “we expect to see more cases here in Orange County.”

None of the new cases are of unknown origin: Three of the six recently returned from northern Italy, two were exposed to infected family members in a different county, and another worked in an environment that brought him into contact with travelers.

Over in Washington, a damning insider report from Stat News, it appears that researchers in Washington State have managed to start uncovering the true extent of the outbreak until local officials found a way to get around the CDC.

Eric Umansky

@ericuman

Jesus, the outbreak around Seattle was only found bc enterprising researchers found a way to *get
around the CDC.*https://www.statnews.com/2020/03/03/washington-state-risks-seeing-explosion-in-coronavirus-without-dramatic-action-new-analysis-says/ 

View image on Twitter

As the Trump-Pence-CDC presser continues, Trump hinted at a possible quarantine by saying the US might “close up” areas that become a “problem.” Trump also said that airlines hadn’t yet asked for any financial aid.

  • TRUMP: AS CERTAIN AREAS BECOME A PROBLEM, WE MIGHT CLOSE THEM UP
  • TRUMP SAYS AIRLINES HAVE NOT ASKED FOR ANY U.S. FINANCIAL SUPPORT, HAVEN’T DISCUSSED THAT YET
  • WHITE HOUSE MEETING ON CORONAVIRUS EXPECTED TO INCLUDE AIRLINE REPRESENTATIVES FROM SOUTHWEST, ALASKA AIR, UNITED, JETBLUE, REPUBLIC AIRWAYS, HAWAIIAN

Meanwhile, after Jim Bullard said during an interview that he feels monetary policy is “in the right place,” S&P Global cut its GDP forecast for the eurozone to 0.5% from 1%, and 0.8% for the UK, down  from 1%.

* * *

Update (1130ET): During a press conference on Wednesday following a meeting between President Trump and VP Pence and the leaders of the airline industry, Pence confirmed earlier reports that travelers from Italy and SK would be subjected to multiple tests before boarding a plane to the US, and multiple times after landing.

Pence also praised the FDA’s decision to expand testing to university labs and other state labs. Trump blamed the Obama Administration for a vague ‘decision’ that Trump blamed for slowing down testing. Trump has now undone that decision.

Here are some of the headlines from the presser:

  • AIRLINE CEOS TELL TRUMP THEY STEPPED UP CLEANING EFFORTS
  • PENCE: NEW PRIORITIES ON INSPECTIONS TO BE RELEASED TODAY
  • PENCE SAYS ALL PASSENGERS FROM ITALY, SOUTH KOREA ARE BEING SCREENED MULTIPLE TIMES FOR CORONAVIRUS

Earlier, HHS Secretary Azar told Fox News during an interview that the administration is working with the private sector to develop a better coronavirus test.

  • U.S. HEALTH SECRETARY AZAR SAYS ADMINISTRATION IS WORKING WITH PRIVATE SECTOR SO THEY DEVELOP CORONAVIRUS TEST WITHOUT FDA APPROVAL -FOX NEWS INTERVIEW
  • SEC. AZAR SAYS 12-18 MONTHS BEFORE POSSIBLE VACCINE: FOX NEWS

In Italy, government officials are still weighing whether to close all schools, while also shutting all events, sports games and cinemas.

* * *

Update (1120ET): This video of Chinese doctors and patients “square dancing” at a “shelter hospital” in Wuhan is going viral on the Chinese Internet.

Sixth Tone

@SixthTone

Videos of medical staff and patients square dancing together in several “shelter hospitals” in have gone viral on Chinese social media.

“Square dancing helps to cheer them up and improve their immunity, which is beneficial for their recovery.”

Embedded video

* * *

Update (1110ET): The WHO is running a live Q&A session at the moment. Check it out below:

Lancashire County Council

@LancashireCC

Two linked cases of have been confirmed in South Ribble, Lancashire.

The two people had recently travelled to Italy and are currently isolating themselves at home. Our Director of Public Health and Wellbeing Dr Sakthi Karunanithi explains more. 1 of 2….

Embedded video

57 people are talking about this

* * *

Update (1050ET): It appears the tables have turned – or at least that’s what we imagine members of the #resistance will say when they see this headline.

According to the Guardian, Russia has been targeted by “enemies” spreading fake news about the coronavirus to sow panic and discord across the country, President Vladimir Putin said.

His remarks came as Russia’s communications regulator said it had shut down access to some social media posts containing falsehoods about the virus outbreak.

“The Federal Security Service reports that they (the fakes) are mainly being organised from abroad. But unfortunately this always happens to us,” Putin said on Wednesday, in televised remarks at a government meeting.

“The purpose of such fakes is clear: to sow panic among the population.”

Reuters reports that a Russian cyber security company, Group-IB, on Monday identified what it said were thousands of fake news posts on messaging services and social networks such as Russia’s VK alleging that thousands of Muscovites have caught the virus.

In other news, the Irish Times reports that the Chinese ambassador to Ireland He Xiangdong advised the government to make a speedy decision about banning mass gatherings as the number of coronavirus cases climbs (health officials reported the country’s second case last night).

In other news: Twitter said Wednesday that it will block advertisers from using the coronavirus outbreak to send inappropriate advertisements to its users.

Twitter has said it will stop any attempt by advertisers to use the coronavirus outbreak to send inappropriate advertisements to its users.

And more cases have been confirmed in the UK as the two people who traveled to Italy are currently isolating themselves at home.

Lancashire County Council

@LancashireCC

Two linked cases of have been confirmed in South Ribble, Lancashire.

The two people had recently travelled to Italy and are currently isolating themselves at home. Our Director of Public Health and Wellbeing Dr Sakthi Karunanithi explains more. 1 of 2….

Embedded video

To be sure, the latest numbers out of the UK, where the total number of cases has jumped to 85, does not suggest the country is past the stage where the containment approach is no longer valuable, according to a senior microbiology expert.

* * *

Update (1040ET): As deaths mount in Iran and Italy, Al Jazeera reminds us that Poland, Morocco, Andorra, Armenia and Argentina have all confirmed their first cases of the virus over the last 24 hours.

Ecuador has just confirmed three new cases, bringing its total to 10.

* * *

(Update 0950ET): A Yeshiva University student who is the son of the Westchester County man infected by the coronavirus, has also been diagnosed with the illness, the school announced Wednesday. “We have unfortunately received news this morning that out student has tested positive for COVID-19. Our thoughts are with him and his family as well as to all those affected,” Yeshiva said in a statement. “We are taking every precaution by canceling all classes on Wilf Campus in Washington Heights. This includes all in-person graduate courses on that campus as wall as the boys’ high school,” it added.

The student’s father, attorney Lawrence Garbuz, 50, runs a boutique law firm with his wife that also employs one of their four kids as a paralegal, according to information posted online. The seven-lawyer practice, Lewis & Garbuz, is located across the street from Grand Central Terminal.

In addition to the son. Garbuz’s wife and daughter, as well as a neighbor who drove the man to the hospital, are among the new cases confirmed in the state.

According to Governor Cuomo, this means that there are now 6 confirmed cases of coronavirus in New York State.

Zack Fink

@ZackFinkNews

There are now 6 confirmed cases of in New York State, per information from @NYGovCuomo

* * *

(Update 0940ET): PM Netanyahu has told Israelis that while it is not openly spoken of as such, the coronavirus epidemic is a global-scale pandemic and it could “possibly be among the worst diseases in this century.”

He asked Israelis to avoid handshakes and suggested greeting one another using the Indian greeting of namaste while keeping one’s hand clasped together.

Additionally, all travelers will be quarantined from these nations: France, Germany, Spain, Austria, Switzerland

* * *

(Update 0935ET): France has reported 45 new coronavirus cases, bringing the total to 257.

* * *

(Update 0920ET): In addition to general de-socialization across Italy, the new decree urges elderly people to stay indoors if possible. It seems Italy is resorting to China’s strategy to stall the exponential spread of the virus.

* * *

(Update 0917ET)UK health authorities have just announced that the number of virus cases soared overnight, jumping by 34 to 85 total cases (16,659 people have been tested)

* * *

(Update 0905ET): While we wait to see if Italy will close all schools and universities as the country’s coronavirus pandemic gets worse, Reuters reported that the country is now planning a decree banning public events as well as close cinemas and theaters across the country.

Meanwhile, AFP reported that there has been a second case of coronavirus found at the EU office in Brussles.

* * *

Update (0835ET): The outbreak in Osaka is expanding: Kyodo just reported three more confirmed cases from a concert that also sickened a McDonald’s worker mentioned below. The total from the concert is now 14.

 

Update (0820ET): The Italian education ministry said Wednesday morning that “no decision has yet been made” regarding whether to close schools, or not. The decision has apparently been delayed for a few hours, the minister added. The headline about the school closures took a little bit of the momentum out of markets earlier, but stock futures in the US have rallied back.

* * *

Update (0800ET): Italian newswire ANSA reports that the Italian government will move ahead with plans to close all schools and colleges in the country for two weeks.

Norbert Elekes@NorbertElekes

BREAKING: Italy closes all schools and universities nationwide to stop coronavirus

Until now, only schools in Italy’s virus-plagued northern region had been closed due to the outbreak, even as the death toll from the virus nears 80. France has also closed some 120 primary and secondary schools near Paris as cases in France have surged, a decision that’s impacting about 35,000 kids.

Meanwhile, the Global Times can’t help but gloat…

Global Times

@globaltimesnews

Some mainstream media calls for learning from ’s experiences in the fight against as the epidemic situation is gradually improving in China.

Embedded video

…Even as school closures in China will enter their 7th week next week.

Eunice Yoon

@onlyyoontv

to close all schools and universities around the country until mid March because of outbreak, local news outlet Ansa reports. ( school closures heading into 7th week next week…)

In other news, the Israeli government has quarantined a group of soccer fans who attended a match last week in Tel Aviv after a teenager in the crowd tested positive for the virus. He’s believed to have contracted the virus from the manager of a toy store who recently visited Italy, according to the BBC.

In other news, after religious authorities in Saudi Arabia banned foreigners from traveling to the holy land last week, the Saudi government said Wednesday that it would temporarily suspend a lesser Muslim pilgrimage called the Umra for both foreigners and citizens, the BBC reports.

The Umra is an optional pilgrimage that includes some of the rituals of the most important pilgrimage, the Hajj, though they are shortened and there are fewer rituals.

* * *

Update (0740ET): German Finance Minister Olaf Scholz has been pushing for Germany to defy its constitutional “debt break” and bolster spending. Now, he’s taking his rhetoric up a notch and defying the WHO to declare the coronavirus outbreak a “global pandemic.”

  • GERMAN FINANCE MINISTER SCHOLZ TELLS LAWMAKER GERMANY WOULD HAVE “ALL THE STRENGTH” TO COUNTER IMPACT OF CORONAVIRUS IF EPIDEMIC PLUNGED WORLD ECONOMY INTO CRISIS – SOURCES
  • GERMANY’S SCHOLZ TELLS LAWMAKERS GOV’T IS PREPARED AND READY TO ACT DECISIVELY TO COUNTER CORONAVIRUS – SOURCES
  • GERMANY’S SCHOLZ TELLS LAWMAKERS ANY FISCAL MEASURES TO COUNTER CORONAVIRUS IMPACT WOULD BE “TIMELY, TARGETED, TEMPORARY” – SOURCES

The FinMin has encountered resistance from within the ruling coalition, and if he’s going to succeed in delivering the fiscal stimulus that Europe so desperately needs, he’s going to need to outmaneuver his rivals.

* * *

Update (0722ET): Japan has confirmed 9 more cases in Osaka.

Cookie Trader@cookie_trader

JAPAN CONFIRMS NINE NEW CORONAVIRUS CASES IN OSAKA AND FIRST IN MIYAZAKI PREFECTURE – KYODO

And Nikkei rising.. ridiculous.

* * *

As we reported last night, Tuesday marked a major shift in the coronavirus outbreak: For the first time, more deaths were reported outside China than inside. And already on Wednesday, we’ve seen some unfortunate firsts: Iraq reported its first death after the virus leaked across the border from Iran.

The EU’s decision not to close borders and impose travel restrictions has come back to bite it: Just a few minutes ago, the European Union confirmed the first case of the virus at EU offices in Brussels. It appears to be tied to the European Defense Agency.

EURACTIV

@EURACTIV

First case of in the EU institutions: the European Defence Agency has cancelled all meetings until 13 March after a senior official tested positive for , according to an internal mail seen by EURACTIV.@gerardofortuna reports.https://bit.ly/2TmG51h

First confirmed case of COVID-19 in the EU institutions

In an internal mail seen by EURACTIV, the European Defence Agency (EDA) confirmed that one of its staff members has tested positive for novel coronavirus (COVID-19) and it therefore cancelled all…

euractiv.com

Brussels only confirmed its first case in the city a couple of days ago.

Last night, China reported 119 additional coronavirus cases and 38 additional deaths for March 3. That’s compared with 125 additional cases and 31 new deaths the previous day. The new cases bring the total number of mainland cases to 80,270 and death toll at 2,871.

South Korea reported 809 additional coronavirus cases and 4 additional deaths, bringing its total cases to 5,621 and death toll to 32, while Italy’s total cases rose to 2,502 from 2036, and its death toll increased to 79, up from 52 earlier in the day on Tuesday.

Meanwhile, over in Japan, a part-time worker at a McDonald’s in Kyoto has tested positive, prompting the restaurant to close. The cashier attended music events in Osaka on Feb. 15 and Feb. 16, where investigators believe he may have been infected.

Last night, Japanese officials raised the possibility of delaying the Olympics. NTV reports Wednesday morning in the US that Japan would scale back Olympic Torch relay events.

Unsurprisingly, an a global Ipsos poll highlighted by the Guardian showed that a majority of Italians would accept quarantines of cities and towns, though that number climbed to 74% for the UK and 91% for Vietnam.

Ben Quinn

@BenQuinn75

Q. Are you willing to accept quarantines of cities and towns to manage risk?

Agree:
Vietnam 91%
UK 74%
Italy 60%

View image on Twitter

As we reported yesterday, Ireland has recorded a second case of coronavirus. However, officials are still planning to go ahead with St. Patrick’s Day festivities when the holiday arrives in a couple of weeks.

While the WHO has embraced alternative greetings, Public Health England, the agency in charge of the UK outbreak, said that while it might recommend people stop shaking hands, “we’re not there yet.

Over in Iran, the health ministry said the coronavirus had killed 92 people, up from 77 the day before, while the number of infections rose to 2,922, Al Jazeera reports. To be sure, reports last week claimed the true death toll had surpassed 200 – and that was a week ago.

Elsewhere in Europe, Bloomberg reports that Italy’s government is weighing a closure of all schools nationwide to contain the coronavirus outbreak. A closure could last 15 days and start this coming Monday, or the Monday following. This comes after officials reportedly considered cancelling all sports games in the country for a month.

Over at the ECB, the central bank has cancelled travel for all members of the Christine Lagarde-led executive board, as well as other employees judged to be non-essential, until 20 April 2020, at which time the central bank will reassess the situation.

END

CANADA

Canada Shock And Awe: BOC Unexpectedly Cuts By 50bps, Most Since Crisis; “Ready To Adjust Further”

With Wall Street consensus expecting nothing from the Bank of Canada today, and even money markets were at beast hoping for a modest easing, moments ago the Bank of Canada “pulled a Fed” when it shocked traders after cutting rates by an unexpected 50bps, from 1.75% to 1.25% (with expectations for an unchanged print), citing the COVID-19 virus as “a material negative shock to the Canadian and global outlooks,” and as a result “monetary and fiscal authorities are responding.”

The 50bps rate cut was the biggest since the financial crisis.

If that wasn’t enough of an easing shock, in an even more foreceful dovish surprise, the bank said that “in light of all these developments, the outlook is clearly weaker now than it was in January. As the situation evolves, Governing Council stands ready to adjust monetary policy further if required to support economic growth and keep inflation on target. While markets continue to function well, the Bank will continue to ensure that the Canadian financial system has sufficient liquidity.

Some more highlights from the statement:

  • While Canada’s economy has been operating close to potential with inflation at target, the virus is a material negative shock to the Canadian and global outlooks
  • Before the outbreak, the global economy was showing signs of stabilizing. However, COVID-19 represents a significant health threat to people in a growing number of countries
  • Business activity in some regions has fallen sharply and supply chains have been disrupted, reflective in CAD and commodities
  • It is likely that as the virus spreads, business and consumer confidence will deteriorate, further depressing activity
  • Consumption was stronger than expected, supported by healthy labour income growth
  • Residential investment continued to grow, albeit at a more moderate pace than earlier; meanwhile, both business investment and exports weakened
  • Rail line blockades, strikes by Ontario teachers, and winter storms are dampening economic activity in the Q1.
  • In light of all these developments, the outlook is clearly weaker now than it was in January
  • Bank will continue to ensure that the Canadian financial system has sufficient liquidity

While USDCAD sold off very modestly into the announcement to around 1.3330, it then spiked higher on the 50bp cut to 1.3415.

And with the central bank now clearly in dovish mode, the OIS is pricing in over 50% chance of an additional 25bps cut in April as the entire world sinks into a Japanese trap.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1219 DOWN .0008 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /MIXED

 

 

USA/JAPAN YEN 107.85 DOWN 0.074 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

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

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

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED DOWN 30.52 POINTS OR 1.04% 

 

//Hang Sang CLOSED DOWN 131.51 POINTS OR 0.46%

/AUSTRALIA CLOSED DOWN 0,42%// EUROPEAN BOURSES ALL MIXED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL MIXED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 131.51 POINTS OR 0.46%

 

 

/SHANGHAI CLOSED DOWN 30.52 POINTS OR 1.04%

 

Australia BOURSE CLOSED DOWN. 42% 

 

 

Nikkei (Japan) CLOSED DOWN 422.94  POINTS OR 1.97%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1421.10

silver:$16.06-

Early WEDNESDAY morning USA 10 year bond yield: 2.05% !!! UP 1 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.57 UP 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 97.16 DOWN 6 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.47% DOWN 4 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.13%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.41%//DOWN 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,56 DOWN 3 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 111 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.31% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.87% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1276  DOWN     .0008 or 8 basis points

USA/Japan: 107.74 DOWN .199 OR YEN UP 20  basis points/

Great Britain/USA 1.2491 UP .0057 POUND UP 57  BASIS POINTS)

Canadian dollar DOWN 32 basis points to 1.3086

 

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The USA/Yuan,CNY: AT 6.8800    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8872  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.6842 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield UP 1 IN basis points from THURSDAY at 2.06 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.59 UP 3 in basis points on the day

Your closing USA dollar index, 97.15 UP 81  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 42.37  0.56%

German Dax :  CLOSED DOWN 113.18 POINTS OR .92%

 

Paris Cac CLOSED DOWN 21.16 POINTS 0.38%

Spain IBEX CLOSED DOWN 58.50 POINTS or 0.63%

Italian MIB: CLOSED UP 11.43 POINTS OR 0.05%

 

 

 

 

 

WTI Oil price; 54.92 12:00  PM  EST

Brent Oil: 61.83 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    63.05  THE CROSS HIGHER BY 0.15 RUBLES/DOLLAR (RUBLE LOWER BY 15 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.24 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 :  47.20/

 

 

BRENT :  51.59

USA 10 YR BOND YIELD: … 1.06 UP 6 BASIS PTS

 

 

 

USA 30 YR BOND YIELD: 1.71..PLS 10 BASIS PTS..

 

 

 

 

 

EURO/USA 1.1133 ( DOWN 44   BASIS POINTS)

USA/JAPANESE YEN:107.57 UP .499 (YEN DOWN 50 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.38 UP 23 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2868 UP 49  POINTS

 

the Turkish lira close: 6.0763

 

 

the Russian rouble 66.14   UP 0.09 Roubles against the uSA dollar.( UP 9 BASIS POINTS)

Canadian dollar:  1.3386 DOWN 9 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.64%

 

The Dow closed UP 1173.65 POINTS OR 4.53%

 

NASDAQ closed UP 334.00 POINTS OR 3.85%

 


VOLATILITY INDEX:  31.99 CLOSED DOWN 4.83

LIBOR 3 MONTH DURATION: 1.314%//libor dropping like a stone

 

USA trading today in Graph Form

‘Joementum’ Sparks Stock Buying-Panic, Rate-Cut Hopes Soar

Some success, after weeks of doldrums, for Joe Biden’s campaign sparked a massive surge in prediction markets’ view of his likelihood of getting the Democratic nomination surged to record highs (as Bernie and Bloomberg crashed)…

Source: Bloomberg

And it is this phoenix-like rise that is being proposed as driving today’s surge in stocks…

Source: Bloomberg

And intraday, as various results came in with Biden winning, the market legged ever higher…

Source: Bloomberg

Do traders really believe this guy can win?

thebradfordfile™@thebradfordfile

THIS is not “normal.”

The Biden family needs to end this disgusting charade.

Embedded video

Prediction markets disagree, and Trump’s odds of victory actually improved overnight

Source: Bloomberg

So maybe, just maybe, Biden’s gains mean Trump more likely to win… and that’s what sent stocks higher?

But, there is another factor – the market is now demanding almost 2 more rate-cuts in March…

Source: Bloomberg

And an increasing number of traders are betting on The Fed going ZIRP/NIRP soon!

Source: Bloomberg

So maybe – as usual – it’s just the market demanding more liquidity, knowing The Fed will never let it down?

US markets erased yesterday’s losses and gamma lifted them after that…

S&P Futures moved above a key level of support (as Nomura’s Charlie McElligott warned, a close above 3079 today would see the signal go from current “+16%” (long) back to “+100%” signal, leading to further aggressive buying and more shorts squeezed), and that sparked the gamma flip melting futures up towards yesterday’s rate-cut highs…

Dow Desperately wanted 27k…

Another 1000-plus-point range day in the Dow has sent realized vol to its highest since mid-2011 – the heart of the European Financial Crisis…

Source: Bloomberg

Stocks desperately didn’t want to be outdone by gold post-Powell…

Value was monkey-hammered as the equity momentum factor had its best 3-day surge since June 2016 (Brexit vote)…

Source: Bloomberg

Biden’s victory over Bernie did spark a very real resurgence in healthcare stocks however…the biggest daily jump since Nov 2008…

Source: Bloomberg

FANG Stocks managed gains today but only marginal…

Source: Bloomberg

And bank stocks managed gains – after 10 days of carnage…

Source: Bloomberg

VIX tumbled 5 vols today after spiking down yesterday on the rate-cut and then surging higher…

Bonds and stocks continue to decouple… again…

Source: Bloomberg

Treasury yields were very mixed today with the short-end tumbling as the long-end chopper around, ending flat…

Source: Bloomberg

The 2Y Yield plunged again…

Source: Bloomberg

The yield curve steepened significantly – to its steepest since June 2018…

Source: Bloomberg

But, don’t get all excited – Indeed, the last time the curve rose so fast from such a low base was in 1990, 2001, and 2008, months before the U.S. economy entered recession each time…

Source: Bloomberg

And before we leave bond-land, we note that the spread between ‘cheap’ China bonds and ‘expensive’ US bonds is at its highest in 5 years…

Source: Bloomberg

And on the other side, US yields have collapsed relative to German yields…

Source: Bloomberg

The Dollar rallied today, desperately trying to erase the rate-cut crash from yesterday…

Source: Bloomberg

Cryptos legged lower today…

Source: Bloomberg

Commodities were generally unchanged today, but PMs held their post-rate-cut gains…

Source: Bloomberg

Oil surged overnight on OPEC+ hopes, and inventory data, but Russia’s lack of cooperation appeared to spook investors…

Gold future hovered around $1640, holding on to the post-Powell spike…

Gold’s historical vol has exploded to 4 year highs…

Source: Bloomberg

And gold continues to track the global volume of negative yielding debt extremely closely…

Source: Bloomberg

Finally, this could be a problem for the bears… Bloomberg notes that as of March 2, short sellers had increased outstanding contracts to the highest level since June 2014, according to IHS Markit data.

Source: Bloomberg

Which might fit with the bounce we saw in 2000, after The Fed’s Y2K liquidity program ended…

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

Stocks Surge To Erase Yesterday’s Losses But Bond Yields Tumble

…some might say Biden trumps Powell…

The Dow, S&P, and Small Caps have erased all of yesterday’s losses…

But bond yields continue to tumble…

So maybe the market’s demands for more rate cuts trumps Biden’s gains?

ii)Market data/USA

iii) Important USA Economic Stories

This Wasn’t Supposed To Happen: One Day After Fed Rate Cut, Repos Signal Record Liquidity Shortage

Yesterday morning, when we discussed the sudden spike in liquidity shortage that resulted in both a (record) oversubscribed term repo and the first oversubscribed overnight repo since the start of the repo crisis last September that spawned QE4 and helped its culprit, JPMorgan report record annual revenues, we said that “if going solely by the amount of securities submitted between the term and overnight repo, the overall liquidity shortage today was nearly $180BN, the highest since the start of the repo crisis, and a clear signal to the Fed that it needs to do something to further ease interbank lending conditions.

Less than an hour later the Fed cut rates by 50bps in its first emergency intermeeting action since the financial crisis.

So with its emergency action now in the rearview mirror, did the Fed manage to stem the funding panic that has gripped repo markets following last week’s market bloodbath? The answer, if based on the latest overnight repo results, is a resounding no.

Moments ago, the Fed announced that its latest repo operation was once again oversubscribed, with the full $100 million amount of repo accepted.

In other words, for the second day in a row the overnight funding repo operation was oversubscribed (and it is virtually certain that tomorrow’s downsized term-repo will be oversubscribed as well).

What is perhaps more notable is that the amount of securities submitted into today’s repo op was a whopping $111.478 billion, which was not only higher than yesterday’s $108.6 billion, but it was an all time high amount of overnight funding needs expressed by dealers.

Which, stated simply, is rather bizarre as it means that not only did the rate cut not unlock additional funding, it actually made the problem worse, and now banks and dealers are telegraphing that they need not only more repo buffer but likely an expansion of QE… which will come soon enough, once the Fed hits 0% rates in 2 months and restart bond buying.

Will that be enough to stabilize the market? We don’t know, but in light of the imminent corona-recession, overnight Credit Suisse’s Zoltan Pozsar repo guru published a lengthy piece (which we will discuss more in depth later), and whose conclusion – at least on the liquidity front – is that the Fed should “combine rate cuts with open liquidity lines that include a pledge to use the swap lines, an uncapped repo facility and QE if necessary.

In short, a liquidity avalanche is coming to prevent a market crash. It’s only a matter of time.

END

Beige Book Shows Growing Coronavirus Panic Across US Economy

With the release of the March Beige Book, we find that as one bogeyman departs, another arrives.

Nearly two years after Beige Book respondents first mentioned tariffs as an economic concern in April 2018, the number of instances in which tariffs were discussed was just 11 in March – the lowest since the term first emerged. However, as tariffs faded from the public’s consciousness, they were replaced with fears about the coronavirus, a term which was never before used in the beige book and in March saw no less than 48 separate mentions!

Before we look at the detailed contents of the latest Beige Book, here is a quick recap of how the Fed sees the 3 key core pillar of the US economy – overall economic activity, employment and wages, and prices – at this moment.

Overall Economic Activity:

  • Economic activity expanded at a modest to moderate rate over the past several weeks, according to the majority of Federal Reserve Districts. The St. Louis and Kansas City Districts, however, reported no change during this period. And while manufacturing activity expanded in most parts of the country, here is where we got the first mention of supply chain, to wit: “there were indications that the coronavirus was negatively impacting travel and tourism in the U.S. Manufacturing activity expanded in most parts of the country; however, some supply chain delays were reported as a result of the coronavirus and several Districts said that producers feared further disruptions in the coming weeks.
  • While consumer spending generally picked up (if not for long now that millions of Americans will avoid all open areas), growth was uneven across the nation, including mixed reports of auto sales. Looking ahead, the outlook for the near-term was mostly for modest growth with the coronavirus and the upcoming presidential election cited as potential risks

Employment and Wages:

  • Employment increased at a slight to moderate pace, overall, with hiring constrained by a tight labor market, and “insufficient labor lowered growth for many firms and led to delays in construction projects.” Several employers changed from temporary to permanent workers in order to attract talent, and firms made efforts to retain workers such as keeping seasonal workers on staff in the off-season.
  • While employment grew across most sectors, manufacturers, retailers, and transportation companies reported lower demand for labor in some Districts. That said, wages grew at a modest to moderate rate in most Districts, similar to last period, and contacts expected wage growth to continue in this range. Companies also spent more on benefits, as the cost of benefits rose and as employers expanded benefits to attract and retain workers.

Prices:

  • Most Districts reported modest growth in selling prices, as well as in nonlabor input prices. Here was one of the rare mentions of the recent trade deal: “some firms, particularly manufacturers, were optimistic that the Phase One trade deal with China would reduce goods prices, but some still struggled with tariffs and were concerned about how the coronavirus might affect prices.”
  • Meanwhile, oil and gas prices decreased across the country, which was largely attributed to weak demand from China because of the coronavirus. Retail prices were up in much of the country although some retailers had lower costs due to improved trade conditions, while agriculture price changes varied.

Focusing exclusively on the coronavirus case, here is how the global pandemic is impacting business, so much so apparently that the Fed decided to cut rates by an emergency 50bps yesterday to offset the aftereffects of the disease:

  • Most manufacturers experienced revenue increases ranging from mid single-digit percentages to more than 20 percent, but two respondents cited revenue declines, both attributed in part to disruptions related to the coronavirus outbreak in China.
  • Outlooks continued to be positive, with the coronavirus and the presidential election cited as risk factors.
  • One retailer noted that their inventory levels were impacted by the coronavirus in China, which slowed production at some manufacturing plants.
  • A textile manufacturer reported flat sales, and two firms, in advanced sensors and chemicals, pointed to disruptions related to uncertainty and supply chain challenges from the coronavirus as factors leading to their slower 2020 start.
  • Although the retail sector is expected to see further weakness and downside macroeconomic risks were cited in relation to the coronavirus outbreak and the presidential election.
  • One manufacturing contact noted problems with supply disruptions and shipment delays related to the coronavirus.
  • A few New York contacts reported that the coronavirus has deterred visitors, though New York City hotels have continued to report good business.
  • The share of firms reporting increased revenues and new orders rose, and the share reporting decreases in both measures fell significantly. The coronavirus has entered the list of concerns, which still includes tariffs and tight labor markets
  • Most banking contacts were optimistic about the overall health of the U.S. economy going forward but expressed concerns over the potential impact of the coronavirus.

And one amusing twist: according to the Fed, in the Chicago district “contacts expressed frustration” that Chinese purchases of agricultural goods hadn’t happened after Phase One trade deal “and were concerned that the coronavirus outbreak would be used as an excuse for missing future trade targets.”

Of course, this is precisely what China is hoping to do.

That said, with the Fed having slashed rates in response to the coronavirus panic, it is only logical that Fed contacts across the nation would be freaking out about the pandemic.

Finally, looking at some choice anecdotes from the various the Fed regions, we find the following picture of the US economy:

  • Boston: “Two firms, in advanced sensors and chemicals, pointed to disruptions related to uncertainty and supply chain challenges from the coronavirus as factors leading to their slower 2020 start. Seven of ten manufacturers did not mention disruptions from the virus to date.”
  • New York: “Tourism activity was mixed. A few contacts reported that the coronavirus has deterred visitors, though New York City hotels have continued to report good business.”
  • Philadelphia: “Inquiries and orders to source parts domestically were increasing because of tariff uncertainty and are continuing because of the coronavirus. Retailers noted no supply disruptions because of the coronavirus.”
  • Cleveland: “Transportation firms expressed concern about the potential for supply-chain bottlenecks as a result of COVID-19. The virus aside, transportation firms expect conditions to improve slightly in the near future as rising consumer spending leads to increases of merchandise shipments.”
  • Richmond: “Sales of both new and used autos were strong, although dealers expressed uncertainty from elections and the coronavirus. In the District of Columbia, some groups canceled travels because of the coronavirus.”
  • Atlanta: “Due to the coronavirus, cancelled flights to China have reduced air cargo capacity significantly, which is expected to negatively affect first quarter revenues.”
  • Chicago: “Some manufacturing contacts reported low inventories of inputs produced in China due to disruptions from the coronavirus outbreak; while most said the impact had been minimal so far, many expected a larger effect if the disruptions continued much longer.”
  • St. Louis: “Contacts were uncertain about the impact of coronavirus on their business; no contacts reported a significant impact, but some have experienced travel and shipment delays.”
  • Minneapolis: “Ice conditions have been less favorable this season in Minnesota and Wisconsin, cutting into spending from fishermen and snowmobilers in areas where trails cross lakes.”
  • Kansas City: “After declining for several months, manufacturing activity appeared to be stabilizing with a slight uptick in activity in February, despite nearly half of firms noting some negative effect from the coronavirus spread.”
  • Dallas: “Overall retail outlooks weakened slightly, with some contacts voicing concern over the coronavirus and its impact on supply chains and overall demand. A railroad contact voiced concern that the coronavirus could reduce shipments from China.”
  • San Francisco: “The COVID-19 outbreak led to decreased aircraft demand from China and Southeast Asia, with one supplier reporting no orders received in January. Solar energy equipment manufacturers also experienced delayed order fulfillment due to supply chain disruptions related to the COVID-19 outbreak.”

iv) Swamp commentaries)

Chief Justice Slams Shumer For Threatening Gorsuch And Kavanaugh Over Abortion Case

First Chuck Schumer threatened President Trump when he said the intelligence community has “six ways from Sunday” of getting back at him. Now it’s Supreme Court Justices Brett Kavanaugh and Neil Gorsuch – who will “pay the price” and “won’t know what hit you” if they rule the wrong way on a landmark abortion case.

Jorge Bonilla@BonillaJL

In which Chuck Schumer threatens TWO sitting Associate Justices of the Supreme Court of the United States.

Embedded video

Schumer was speaking at a rally in front of the Supreme Court, where the justices heard June Medical Service v. Russo – in which an abortion provider has challenged a 2014 Louisiana state law, the “Unsafe Abortion Act,” which requires abortion doctors to hold admitting privileges in a hospital at least 30 miles away from the abortion facility.

His comments drew rebuke from Chief Justice John Roberts, who said that his comments were “not only inappropriate, they are dangerous.

Greg Stohr

@GregStohr

NEW: Chief Justice Roberts chastises Schumer for “threatening” statements about Kavanaugh, Gorsuch.

Opponents argue that the law would limit abortion access across the country – hence the protests against the two recent conservative additions to the Supreme Court. If the law is upheld, all three of Louisiana’s abortion clinics could no longer end the lives of unborn children.

When the law was signed in 2014, only one of the state’s six abortion clinics at the time had a physician who was compliant with its requirements. The law has been largely blocked from implementation, but was briefly allowed to go into effect in early 2016, prompting the closure of two of the state’s remaining clinics.

Today, Louisiana has just three abortion clinics across the state. If the Supreme Court finds Louisiana’s law constitutional, all of them would stop offering the procedure, as first reported by CBS News. The court’s ultimate decision is expected early this summer. –CBS

 

Pro-life advocates also gathered at the Wednesday rally.

Schumer spokesman Justin Goodman put quite the spin on the threat, telling the Daily Caller that the senator’s comments referenced the political price Republicans “will pay for putting them on the court,” as well as “a warning that the justices will unleash major grassroots movement on the issue of reproductive rights against the decision.”

Republican Nebraska Sen. Ben Sasse slammed Schumer, saying that Schumer threatened Gorsuch and Kavanaugh.

“The Democratic Party is so radicalized on abortion politics that today Chuck Schumer threatened Justice Gorsuch and Justice Kavanaugh if they didn’t strike down a simple, common-sense, pro-woman law that simply says that abortion doctors need to have admission privileges at a local hospital,” Sasse said in a statement provided to the DCNF.

The Nebraska senator argued that if a Republican threatened Supreme Court Justices Sotomayor or Ginsburg, “it would be the biggest story not just in Washington but all across America.” –Daily Caller

“But, Chuck Schumer’s bully tactics aren’t getting much air time right now because there’s so many people in bed with his defense of abortion and his attack on an independent judiciary,” Sasse continued. “These bullying tactics need to stop.”

END

Ukrainian Court Throws Wrench Into Joe Biden’s 2020 Election Plans

Authored by John Solomon via JustTheNews.com,

A Ukrainian court has ordered an investigation into whether Joe Biden violated any laws when he forced the March 2016 firing of the country’s chief prosecutor.

The ruling could revive scrutiny of Hunter Biden’s lucrative relationship with an energy firm in that corruption-plagued country just as the former vice president’s campaign for the Democratic presidential nomination is surging after a lackluster start.

Former Prosecutor General Viktor Shokin, who has long alleged he was fired because he would not stop investigating the Burisma Holdings firm that employed Hunter Biden, secured the ruling last month. Ukrainian officials confirmed the State Bureau of Investigation has since complied and initiated the probe.

The Pecherskyi District Court of Kyiv ruled last month that Shokin’s lawyers had provided sufficient evidence to warrant a probe and “obliged the authorized officials of the State Bureau of Investigation” to accept the ex-prosecutor’s complaint and “start pre-trial investigation of the reported data,” according to an official English translation of the ruling provided by Shokin’s attorney.

The ruling does not mention Biden by name, but court filings by Shokin’s lawyers that led to the decision show that the former prosecutor had alleged “the commission of a criminal offense against him by Joseph Biden, a citizen of the United States of America, in Ukraine and abroad: interference in the activities of a law enforcement officer.”

Ukraine officials say the court-ordered investigation could include a review of non-public documents and possibly even interviews.

The court order revives allegations that were at the center of President Trump’s recent impeachment and acquittal, and which have dogged Joe Biden since he boasted in a 2018 video interview that he threatened to withhold $1 billion in U.S.-backed loan guarantees if Ukraine’s then-President Petro Poroshenko did not fire Shokin as the country’s chief prosecutor.

Shokin alleges he was fired on March 29, 2016 specifically because his office refused to shut down a long-running corruption investigation into Burisma, one of Ukraine’s larger natural gas companies.  The firm hired Hunter Biden as a board member in spring 2014, shortly after Joe Biden was named by President Obama to oversee Ukraine-U.S. relations. Records gathered by the FBI show Hunter Biden’s American firm was paid more than $3 million between 2014 and 2016.

President Trump’s private lawyer, Rudy Giuliani, asked the State Department and Ukraine officials back in 2019 to investigate the Bidens, an act which gave rise to the impeachment proceedings,

During impeachment testimony, multiple State Department officials said they believed the Bidens’ arrangement created the appearance of a conflict of interest and that the department even blocked a business deal with Burisma at one point over concerns the company was corrupt.

Joe Biden and his defenders have denied any wrongdoing, saying the vice president sought Shokin’s firing because the prosecutor was ineffective in fighting corruption. His supporters have also claimed that the Burisma investigation was dormant at the time Shokin was fired and therefore not a high priority.

But evidence has emerged in recent weeks that the probe into Burisma, in fact, was heating up when Shokin was fired in spring 2016. The prosecutor’s office had secured a ruling re-seizing assets of Burisma’s owner in early February 2016, and the Latvian government acknowledges it sent a warning to Ukraine officials that same month flagging several Burisma transactions, including payments to Hunter Biden, as “suspicious.”

Documents recently released under the Freedom of Information Act also show Burisma’s lawyers were pressuring the State Department in February 2016 to end the corruption allegations against the firm, even invoking Hunter Biden’s name as the reason.

And Shokin himself says he was making plans to interview Hunter Biden, an act that likely would have garnered major attention in the United States as Democrats were trying to defeat Donald Trump in the 2016 presidential election.

Hunter Biden recently left Burisma’s board and said he believes in retrospect it was bad judgment to join the Ukraine company while his father oversaw U.S.-Ukraine relations. He also acknowledged he likely got the job because of his last name.

Whatever Ukraine’s State Bureau of Investigation does, the emergence of an investigation in Ukraine focusing attention on the Biden’s ethics comes at an unwelcome time for Joe Biden, whose presidential campaign lagged for months but got a jolt over the weekend when he won convincingly in South Carolina’s primary.

Biden’s momentum continued Monday on the eve of the critical Super Tuesday elections when rivals Amy Klobuchar and Pete Buttigieg dropped from the 2020 Democratic presidential race and announced plans to endorse the former vice president.

While the Ukraine probe just gets started, a separate investigation launched by Republicans in the U.S. Senate has been growing for weeks as investigators seek documents on Hunter Biden’s finances, his overseas travels with the vice president and possible interviews with Ukraine officials.

END

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

Liquidity Panic Is Back: Fed’s Repos Massively Oversubscribed amid Market Turmoil

Dealers submitted a record $108.6BN in overnight repo, resulting in the first oversubscribed overnight repo operation since October… if going solely by the amount of securities submitted between the term and overnight repo, the overall liquidity shortage today was nearly $180BN, the highest since the start of the repo crisis, and a clear signal to the Fed that it needs to do something to further ease interbank lending conditions…

https://www.zerohedge.com/health/liquidity-panic-back-feds-term-repo-massively-oversubscribed-amid-market-turmoil

The G7 emergency conference call for the Covid-19 crisis was innocuous, a nothing burger.  But, stocks did not tumble; they sagged.  Apparently a critical mass of traders believed there was more to come.

G7 vows to protect global markets

Statement ‘raises the risk that central banks will disappoint markets’

    “Given the potential impacts of COVID-19 on global growth, we reaffirm our commitment to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against the downside risks,” the leaders said in a statement after a conference call led by U.S. Treasury Secretary Steve Mnuchin and Federal Reserve Chairman Jerome Powell.

The lack of action by the G7, a group of seven of the world’s largest developed economies, prompted a brief drop in equity futures markets, though they quickly rallied. They are now pointing to only a small decline ahead of the opening bell…

https://www.foxbusiness.com/markets/coronavirus-g7-moves-to-reassure-investors

Statement of G7 Finance Ministers and Central Bank Governors

“We, G7 Finance Ministers and Central Bank Governors, are closely monitoring the spread of the coronavirus disease 2019 (COVID-19) and its impact on markets and economic conditions….

    We reaffirm our commitment to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks… G7 Finance Ministers and Central Bank Governors stand ready to cooperate further on timely and effective measures.”  https://home.treasury.gov/news/press-releases/sm927

Shortly after the disappointing G7 Communique, the Fed announced an emergency 50 bp rate cut for Fed Funds.  Trump begged for more rate cuts.  As we have noted for many years, no matter how much the Fed cuts rates or institutes easy credits schemes, some people are never satisfied.  It’s never enough!

@realDonaldTrump: The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!

The Fed Statement: “The fundamentals of the U.S. economy remain strong.  However, the coronavirus poses evolving risks to economic activity… The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.”  https://www.federalreserve.gov/newsevents/pressreleases/monetary20200303a.htm

Powell at his presser:  “We do recognize that the rate cut won’t reduce the rate of infection, won’t fix a broken supply chain. But it will provide a meaningful boost to the economy.”

Powell said the Fed is NOT considering using any other tools for now; the US economy is solid and the rate cuts could be reversed later.  The Fed blackout period for the March 17-18 FOMC begins Friday.

Always when markets are in trouble, the phrases are the same: ‘The economic situation is fundamentally sound’ or simply ‘The fundamentals are good.’ All who hear these words should know that something is wrong.” — John Kenneth Galbraith in his great book “The Great Crash 1929”

Stocks soared on the Fed panicky rate cut; but not for long.  As we warned in Tuesday’s missive: Be ready for a Turnaround Tuesday to the downside after the market digests and reacts to the G7 measures to thwart the negative economic effects of the Covid-19 epidemic.

After a quick retreat, the usual suspects bought the dip and tried to jam ESHs and stocks higher.  Real sellers and traders looking to book profits reappeared.  ESHs and stocks then tumbled until about 15 minutes the VIX Fix.  ESHs then commenced a rally.

The US 10 year note yield traded below 1% for the first time ever.  At the worst of the Crisis of 2008, the US 10-year note hit 2.04%.  Gold rallied as much as 3.5%.

Most importantly, bank stocks tanked.  The KBW Bank Stock Index tumbled as much as 5.5%.  Miniscule interest rates will impair big bank earnings.  Therefore, more rate cuts, will further impact banks negatively.  Powell has entered the Japanese nightmare zone.

BBG’s @lisaabramowicz1: The U.S. is currently trapped in a “quicksand”-like world that will pull Treasury yields down toward zero or negative as soon as this year, regardless of how the domestic economy performs: JPMorgan’s Jan Loeys

Mnuchin: Not Ready to Halt Trading Activity Over Coronavirus, Not Talked with SEC About Halting Trading – Bloomberg

@MooreResearch: Bloomberg Commodity Index just traded at its lowest LOW since March 1976!  Immediate response?  Sharp rallies in multiple markets and emergency FED rate cut in early March.  Check out this history at: https://mrci.com/client/djubs.php.

Trump campaign sues Washington Post for libel over ‘false, defamatory statements’ about Russia ‘conspiracy’   https://www.foxnews.com/media/trump-campaign-sues-washington-post-libel-false-defamatory-statements

 

Biden Campaign Official Rejects James Comey’s Endorsement

https://dailycaller.com/2020/03/03/james-comey-endorses-joe-biden/

@JasonMillerinDC: Biden Says that In-N-Out Is the Whataburger of Delaware, Even Though There Are None There

Joe Biden promises to put Beto O’Rourke in charge of gun control  https://trib.al/hq79A2c

Bloomberg: Bloomberg Concedes Only Way He Can Win Is Contested Convention

The former New York City mayor brushed off questions Tuesday about whether he would drop out of the race… https://www.bloomberg.com/news/articles/2020-03-03/bloomberg-concedes-only-way-he-can-win-is-contested-convention

 

A reporter asks Bloomberg about campaigning in Texas, Mike corrects the report and says, “it pronounced ‘Tay-haz’.  That’s Spanish for Texas and ‘we’re in a Cuban neighborhood’.

https://twitter.com/johncardillo/status/1234897798602141709

 

@fleccas: This was posted by @MikeBloomberg on his Snapchat! Who would admit to licking their fingers like this?! He licks his fingers then touches a piece of pizza he didn’t take!! Very disgusting. Very disrespectful.  https://twitter.com/fleccas/status/1234917181785169921?s=09

 

@realDonaldTrump: Mini Mike, don’t lick your dirty fingers. Both unsanitary and dangerous to others and yourself!

 

Michael Bloomberg says he will eat at Chinese restaurant to show solidarity over coronavirus

[Not a parody!] https://news.yahoo.com/super-tuesday-michael-bloomberg-says-130033578.html

 

NBC News: Mike Bloomberg to reassess his campaign tomorrow

 

Hillary Clinton goes after Bernie Sanders again: His campaign is ‘just baloney’

[Hillary is warming up in the bullpen to replace Biden or to be anointed at a brokered convention.]

https://www.foxnews.com/media/hillary-clinton-bernie-sanders-baloney-good-morning-america-interview-docuseries

@Barnes_Law: Biden is the best opponent Trump could dream of. Joe voted for every war that he possibly could. Joe voted for every bad trade deal he possibly could. Joe embodies Washington insiders whose families enrich themselves at the D.C. trough. A perfect foil for Trump.

Backlash Grows against Denver Democrat Who Supported Spreading Coronavirus at MAGA Rallies – Denver’s Democratic Councilwoman Candi CdeBaca is facing a growing backlash on social media this week after calling for those sick with the deadly Coronavirus to intentionally spread the disease at ‘Make America Great Again’ rallies…

https://hannity.com/media-room/sickening-backlash-grows-against-denver-democrat-who-supported-spreading-coronavirus-at-maga-rallies/

Well that is all for today

I will see you THURSDAY night.

 

 

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