MARCH 10 A//PLUNGE PROTECTION TEAM CALLED INTO TODAY TO DRIVE THE DOW HIGHER: DOW RISES BY 1167 POINTS//NASDAQ UP 393 PTS/ GOLD DOWN $14.95 TO $1660.55//SILVER DOWN 10 CENTS TO $16.96//ITALY STOPS ALL CITIZENS FROM LEAVING AND ARRIVING INTO THEIR COUNTRY//MORE CORONAVIRUS STORIES//SWAMP STORIE//S

GOLD:$1660.65  DOWN $ 14.25   (COMEX TO COMEX CLOSING

 

Silver:$16.96  DOWN 10 CENTS. (COMEX TO COMEX CLOSING)

 

 

 

Closing access prices:

 

 

COMEX DATA

 

ACCESS MARKETS

 

Gold : 1650.00

SILVER: 16.90

 

 

 

 

 

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

today RECEIVING: 5/14

EXCHANGE: COMEX
CONTRACT: MARCH 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,674.500000000 USD
INTENT DATE: 03/09/2020 DELIVERY DATE: 03/11/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 11
661 C JP MORGAN 5
737 C ADVANTAGE 3 3
905 C ADM 6
____________________________________________________________________________________________

TOTAL: 14 14
MONTH TO DATE: 1,499

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 14 NOTICE(S) FOR 1400 OZ (0.0435 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1499 NOTICES FOR 149900 OZ  (4.6625TONNES)

 

 

 

 

SILVER

 

FOR MARCH

 

 

103 NOTICE(S) FILED TODAY FOR 515,000  OZ/

total number of notices filed so far this month: 3556 for 17,780,000 oz

 

BITCOIN MORNING QUOTE  7944 up 16 dollars

 

BITCOIN AFTERNOON QUOTE.:$79233 DOWN 6.00

 

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Let us have a look at the data for today

 

 

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IN SILVER THE COMEX OI FELL BY A HUMONGOUS SIZED 5624 CONTRACTS FROM 195,358 DOWN TO 189,734 AND FURTHER FROM OUR NEW RECORD OF 744,710, (FEB 25/2020.  THE LOSS IN OI OCCURRED WITH OUR 23 CENT LOSS IN SILVER PRICING AT THE COMEX. WE HAD MINIMAL LONG LIQUIDATION.  BUT MOST OF THE LOSS IN OI IS DUE TO  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE

 

 

 

 

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

; MARCH:  00 AND MAY: 2279 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2107 CONTRACTS. WITH THE TRANSFER OF 2279 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 2279 EFP CONTRACTS TRANSLATES INTO 11.395 MILLION OZ  ACCOMPANYING:

1.THE 23 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     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

20.415  MILLION OZ INITIALLY STANDING FOR MAR

 

MONDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 23 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE PROBABLY UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE  CONSIDERABLE SILVER LONGS FROM THEIR POSITIONS. AS WE DID HAVE A NET LOSS OF 3345 CONTRACTS OR 16.725 MILLION OZ ON THE TWO EXCHANGES!

 

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

13,554 CONTRACTS (FOR 7 TRADING DAYS TOTAL 13,554 CONTRACTS) OR 67.770MILLION OZ: (AVERAGE PER DAY: 1936 CONTRACTS OR 9.680 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR: 67.70MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 9.67% 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:          508.91 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…..          67,70 MILLION OZ

 

 

RESULT: WE HAD AN STRONG SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 5624, WITH THE  23 CENT LOSS IN SILVER PRICING AT THE COMEX /MONDAY… THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 2279 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 LOST A CONSIDERABLE SIZED :  2279 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (WITH THE 23 CENT FALL IN PRICE)//

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 2279 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 5624 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A  23 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $17.06 // MONDAY’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. 0.948 BILLION OZ TO BE EXACT or 135% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 103 NOTICE(S) FOR  515,000 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: 20.415 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 FELL BY HUMONGOUS SIZED 18,321 CONTRACTS TO 646,401 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 HUGE LOSS OF COMEX OI OCCURRED DESPITE OUR GOOD GAIN IN PRICE OF $1.50 /// COMEX GOLD TRADING// MONDAY// WE, MOST LIKELY HAD CONSIDERABLE BANKER SHORT COVERING AND PROBABLY MINOR LONG LIQUIDATION COUPLED WITH THAT STRONG RISE IN PRICE.  ON THE TWO EXCHANGES WE GAINED 5059 CONTRACTS  (15.74 TONNES)

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS AND CRIMINALLY SIZED 11,236 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 23,380 JUNE. 1612 AND ALL OTHER MONTHS ZERO//TOTAL: 23,380.  The NEW COMEX OI for the gold complex rests at 646,401 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 5059 CONTRACTS: 18,321 CONTRACTS DECREASED AT THE COMEX  AND 23,380 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 5059 CONTRACTS OR 15.74 TONNES. MONDAY, WE HAD A GOOD GAIN OF $1.50 IN GOLD TRADING……

AND WITH THAT GOOD GAIN IN  PRICE, WE STILL HAD A SMALL SIZED LOSS IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 15.74  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 $1.50). AND IT SEEMS THAT THEIR ATTEMPT TO FLEECE  APPRECIABLE  GOLD LONGS FROM THE GOLD ARENA WERE UNSUCCESSFUL AS WE HAD A STRONG GAIN IN OUR TWO EXCHANGES:

 WE HAD  A HUMONGOUS INCREASE IN EXCHANGE FOR PHYSICALS  (23,380) ACCOMPANYING THE STRONG LOSS IN COMEX OI.(18,321 OI):  TOTAL GAIN IN THE TWO EXCHANGES:  8060 CONTRACTS.  WE  NO DOUBT  HAD HUGE BANKER SHORT COVERING AND NO LONG LIQUIDATION…..COUPLED WITH THAT HUGE COMEX OI FALL

 

 

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 : 103,295 CONTRACTS OR 10,329,500 oz OR 321.29 TONNES (7 TRADING DAYS AND THUS AVERAGING: 14,756 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAY(S) IN  TONNES: 321.29 TONNES

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

THUS EFP TRANSFERS REPRESENTS 321.29/3550 x 100% TONNES =9.05% OF GLOBAL ANNUAL PRODUCTION

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

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   1545.26  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE SO FAR   321.29  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 HUGE SIZED DECREASE IN OI AT THE COMEX OF 18,321 DESPITE THE GAIN THAT GOLD UNDERTOOK MONDAY($1.50)) //.HOWEVER WE ALSO HAD A HUMONGOUS SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 23,380 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 23,380 EFP CONTRACTS ISSUED, WE  HAD A  GOOD SIZED GAIN OF 5059 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

23,380 CONTRACTS MOVE TO LONDON AND  18,321 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE STRONG IN TOTAL OI EQUATES TO 15.74 TONNES). AND THIS INCREASE OF DEMAND OCCURRED WITH THE GOOD GAIN IN PRICE OF $1.50 WITH RESPECT TO MONDAY’S TRADING/// AT THE COMEX.

 

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

1.Today, we had the open interest in SILVER FELL BY A STRONG SIZED 5624 CONTRACTS FROM 195,358 DOWN TO 189,734 AND FURTHER FROM 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 LOSS IN COMEX OI WAS DUE TO BANKER SHORT COVERING EXPLAINED ABOVE AND THE ISSUANCE OF HUGE NUMBER OF EXCHANGE FOR PHYSICALS.

(BELOW)

EFP ISSUANCE 2279

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: 2279; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2279 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI LOSS AT THE COMEX OF 5064 CONTRACTS TO THE 2279 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL LOSS OF 2785 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES  13.93 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: 20.430 MILLION OZ

 

 

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 23 CENT FALL IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A STRONG SIZED 2279 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

)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 53.47 POINTS OR 1.82%  //Hang Sang CLOSED UP 352.05 POINTS OR 1.41%   /The Nikkei closed UP 168.36 POINTS OR 0.85%//Australia’s all ordinaires CLOSED UP   2.98%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9500 /Oil UP TO 33.25 dollars per barrel for WTI and 36.72 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 69500 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9576 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 FELL BY A HUMONGOUS SIZED 18,321 CONTRACTS TO 646,401 MOVING FURTHER FROM 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 GOOD GAIN OF $1.50 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 NEGLIGIBLE LONG LIQUIDATION ……AS OUR TWO EXCHANGES ROSE  IN  TOTAL OPEN INTEREST..WITH THE GOOD GAIN IN PRICE.  BASICALLY LONGS JUST TRANSFERRED OVER TO LONDON COUPLED WITH CONSIDERABLE BANKER SHORT COVERING AND CONSIDERABLE COMEX OI DECREASE.

 

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 23,380 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 23,380,  JUNE : 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 23,380 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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A  GAIN OF 5059 TOTAL CONTRACTS IN THAT 23,380 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 5059 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.(FOLLOWING THE STRONG COMEX OI DECLINE)

 

 

THE BANKERS WERUNSUCCESSFUL IN LOWERING GOLD’S PRICE DRAMATICALLY //// (IT ROSE BY $1.50). THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES 15.74 TONNES WAS MAINLY DUE TO BANKER SHORT COVERING AND EXCHANGE FOR PHYSICAL ISSUANCE. 

 

 

NET GAIN ON THE TWO EXCHANGES ::  5059 CONTRACTS OR 505900 OZ OR  15.74 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:  646,401 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 64.64 MILLION OZ/32,150 OZ PER TONNE =  2,010 TONNES

THE COMEX OPEN INTEREST REPRESENTS 2,010/2200 OR 91.38% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results

Total COMEX silver OI FELL BY A STRONG SIZED 5624 CONTRACTS FROM 195,358 DOWN TO 189,734 (AND MOVING FURTHER FROM 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 CONSIDERABLE OI COMEX LOSS TODAY OCCURRED WITH OUR 23 CENT DECREASE IN PRICING/MONDAY.  THE LOSS 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 639 CONTRACTS  WITH A LOSS OF 110 CONTRACTS. WE HAD 119 CONTRACTS ISSUED YESTERDAY SO WE GAINED 9 CONTRACT OR 45,000 OZ WILL  STAND FOR DELIVERY AS THEY REFUSED TO MORPH INTO LONDON BASED FORWARD CONTRACTS AS WELL AS NEGATING A FIAT BONUS.

 

THE NEXT CONTRACT MONTH OF APRIL SAW A GAIN OF 76 CONTRACTS DOWN TO 658 CONTRACTS. THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 7219 DOWN TO 131,533

 

 

We, today, had  103 notice(s)  for 515,,000, OZ for the MAR, 2019 COMEX contract for silver

 

Trading Volumes on the COMEX TODAY: 384,065 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:

590,008 contracts//

 

 

 

INITIAL standings for  MARCH/GOLD

MARCH 10

 

 

 

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  

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
14 notice(s)
 1400 OZ
(0.0435 TONNES)
No of oz to be served (notices)
87 contracts
(8700 oz)
0.2706 TONNES
Total monthly oz gold served (contracts) so far this month
1499 notices
149900 OZ
4.6625 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 101 contracts for a GAIN of 4 contracts.. Surprisingly we had 19 notices filed on MONDAY so we gained 23 contracts or an additional 2300 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 27, 443 contracts DOWN to 389,702 contracts

May saw its ANOTHER gain of 25 contracts to stand at 145.

June saw a GAIN of 8774 contracts up to 151,828

 

 

We had 19 notices filed today for 1,900 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 14 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 6 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 (1499) x 100 oz , to which we add the difference between the open interest for the front month of  MAR. (101 contracts) minus the number of notices served upon today (14 x 100 oz per contract) equals 158,600 OZ OR 4.933 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 (1499 x 100 oz)  + (101 OI for the front month minus the number of notices served upon today (14 x 100 oz )which equals 158,600 oz standing OR 4.933 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………………………………………………………..              4.933 TONNES

 

total: 160.883 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: 160.883  tonnes

 

Thus:

160.882 tonnes of delivery –

25.645 TONNES DEEMED SETTLEMENT

 

=135.237 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 10/2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory

XX

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
XXX
No of oz served today (contracts)
103
CONTRACT(S)
(515,000 OZ)
No of oz to be served (notices)
536 contracts
 2,680,000 oz)
Total monthly oz silver served (contracts)  3556 contracts

17,780,000 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

**

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the MAR 2020. contract month is represented by 103 contract(s) FOR 515,000 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 3556 x 5,000 oz = 17,780,000 oz to which we add the difference between the open interest for the front month of MAR. 639) and the number of notices served upon today 103x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 3556 (notices served so far) x 5000 oz + OI for front month of MAR (639)- number of notices served upon today (103) x 5000 oz equals 20,460,000 oz of silver standing for the MAR contract month.

WE GAINED 9 CONTRACT OR 45,000 OZ WILL  STAND FOR DELIVERY ON THIS SIDE OF THE POND

 

 

 

 

 

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: 76,481 CONTRACTS //

 

 

CONFIRMED VOLUME FOR YESTERDAY: 144,477 CONTRACTS..,,volume extremely high

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 144,477 CONTRACTS EQUATES to 722 million  OZ  103.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV FALLS TO -5.17% ((MARCH 9/2020)

2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.50% to NAV MAR 9/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 5.17%

(courtesy Sprott/GATA

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

NAV 15.76 TRADING 15.07///DISCOUNT 4.35

 

END

 

 

And now the Gold inventory at the GLD/

MARCH 10/WITH GOLD DOWN $14.25//A HUGE 8.00 TONNES OF PAPER GOLD DEPOSIT INTO THE GLD//INVENTORY RESTS AT 963.79

MARCH 9//WITH GOLD UP $1.50 : NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 955.60 TONNES

March 6/WITH GOLD UP $6.25 A MASSIVE 21.37 PAPER TONNES OF GOLD INTO THE GLD INVENTORY//INVENTORY RESTS AT 955.60 TONNES

MARCH 5/WITH GOLD UP $25.40//NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS TONIGHT AT 934.23 TONNES

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)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

MARCH 10/2020/Inventory rests tonight at 963.79 tonnes

*IN LAST 775 TRADING DAYS: +26.37 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 675 TRADING DAYS: A NET 192.50. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 10/WITH SILVER DOWN 10 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.414 MILLION OZ//

MARCH 9/NO CHANGE IN INVENTORY LEVELS: SLV INVENTORY RESTS AT 361.414 MILLION OZ//

MARCH 6//WITH SILVER DOWN 10 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.414 MILLION OZ

MARCH 5//WITH SILVER UP 15 CENTS TODAY; A SMALL WITHDRAWAL DUE TO FEES ETC//INVENTORY RESTS TONIGHT AT 361.414 MILLION OZ..

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/

 

 

 

MARCH 10//2020:  SLV INVENTORY

361.880 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 0.79/ and libor 6 month duration 0.74

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

G0LD LENDING RATE: – .05

 

XXXXXXXX

12 Month MM GOFO
+ 0.64%

LIBOR FOR 12 MONTH DURATION: .74

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.10

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

CFTC refuses to say if it has jurisdiction over manipulative futures trading by government

 Section: 

The commission won’t say even if it knows of any futures trading by government, though such trading is public record.

* * *

12:48p ET Tuesday, March 10, 2020

Dear Friend of GATA and Gold:

Does the U.S. Commodity Futures Trading Commission have jurisdiction over manipulative futures trading by the U.S. government, other governments, or brokers acting for them?

Is the commission aware of futures trading by governments?

In a letter to U.S. Rep. Alex Mooney, R-West Virginia, dated January 28 and released to GATA yesterday, the commission’s chairman, Heath P. Tarbert, refused to say.

… 

GATA put those questions and others to the CFTC in 2018 but could get no response:

http://www.gata.org/node/18685

At GATA’s behest, Mooney put those questions and others to the CFTC a year ago in February:

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

He too got no response but kept pressing.

Tarbert’s January 28 letter to Mooney, posted here —

http://gata.org/files/CFTC-to-Mooney-01-28-2020.pdf

— contains an attachment prepared by commission staff that acknowledges the key questions but fails to answer them.

Question 5 in the attachment, asking whether the commission’s jurisdiction covers manipulative trading by the government itself, is a yes-or-no question.

But the reply says only: “The CFTC has exclusive jurisdiction over futures trading on trading facilities registered with the commission as designated contract markets.”

Question 6 in the attachment, asking if the commission is aware of trading by the U.S. government or other governments, is also a yes-or-no question. Instead the commission’s reply says: “The commission may not publish ‘data and information that would separately disclose the business transactions or market positions of any person and trade secrets or names of customers.'”

But the commission’s admission of simple awareness of trading by governments would not disclose any transactions or market positions, and official filings and statements by CME Group, operator of the major U.S. futures exchanges, explicitly acknowledge that governments are secretly trading futures under CME Group’s Central Bank Incentive Program:

http://www.gata.org/node/18925

Chairman Tarbert’s reply to Representative Mooney is also misleading in at least two other respects.

First, Mooney questioned how the commission’s years-long investigation of silver futures market manipulation found no actionable misconduct even though a subsequent investigation by the U.S. Justice Department, covering the same period investigated by the commission, managed to find such misconduct, prosecute it, and obtain confessions.

Instead of accounting for his commission’s inability to find misconduct on its own, Tarbert’s reply simply notes fines imposed by the commission following the Justice Department’s investigation.

And second, responding to Representative Mooney’s conveying GATA’s question about the huge increase in the emergency “exchange for physicals” mechanism of settling gold futures contracts on the New York Commodities Exchange, Tarbert dismisses the increase as a function of increased trading in gold futures generally. But that doesn’t explain what the EFPs are doing and are meant to accomplish. That could be explained without revealing any particular trader’s positioning.

GATA long has maintained that the U.S. government construes the Gold Reserve Act of 1934, as amended, which establishes the Treasury Department’s Exchange Stabilization Fund, to authorize the government to intervene secretly in and manipulate any market in the world:

https://home.treasury.gov/policy-issues/international/exchange-stabiliza…

Indeed, at a hearing in U.S. District Court in Boston in 2001 in the case of Howe vs. Bank for International Settlements et al., a lawsuit charging the BIS and U.S. government with illegally rigging the gold market, your secretary/treasurer heard an assistant U.S. attorney argue for dismissal of the suit on the grounds that the Gold Reserve Act conferred on the government the power to do exactly what the suit complained of:

http://www.gata.org/node/4211

So if the Commodity Futures Trading Commission cannot plainly answer whether it has jurisdiction over manipulative futures trading by or at the behest of the U.S. government — a question of how the commission construes the law — it may be concluded that such trading is indeed being undertaken and that markets are being manipulated by the government far more than is generally understood.

All that is needed now is some courageous financial journalism to tell the world about it. But these days courageous financial journalism is rarer than gold.

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

* * 

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.9500/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9570   /shanghai bourse CLOSED UP 53.47 POINTS OR 1.82%

HANG SANG CLOSED UP 352.05 POINTS OR 1.41%

 

2. Nikkei closed UP 168.36 POINTS OR 0.85%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 95.85/Euro FALLS TO 1.1349

3b Japan 10 year bond yield: RISES TO. –.07/ !!!!(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:: 33.28 and Brent: 36.72

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.75%/Italian 10 yr bond yield DOWN to 1.31% /SPAIN 10 YR BOND YIELD DOWN TO 0.29%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.46

3k Gold at $1658.50 silver at: 17.08   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 288/100 in roubles/dollar) 72.00

3m oil into the 33 dollar handle for WTI and 36 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 104.795 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 .9353 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0601 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.75%

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 0.71% early this morning. Thirty year rate at 1.19%

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

6.  TURKISH LIRA:  UP  TO 6.1106..

S&P Futures Soar, Hit ‘Limit Up’ In Frenzied Rebound On Trump Stimulus Hopes

Just how illiquid and volatile is this market? Consider this: one day after the S&P Emini future was locked limit down for hours on Monday morning tumbling 5%, on Tuesday the same futures contract initially tumbled 1.9%, dipping below 2,700, before soaring higher by an unprecedented 180 points, and moments ago hit the “limit up” level of 2,879, established each day by the Chicago Mercantile Exchange, while Dow futures were up almost 1,000 points, cutting yesterday’s record point drop in half.

One day earlier, the S&P 500 tumbled 7.6% during Monday’s cash session and the Dow Jones plunged more than 2,000 points – its biggest drop since the Financial Crisis – weighed down by a crash in oil prices following a price war between Saudi Arabia and Russia in markets already rattled by the spreading coronavirus. In fact shortly after Monday’s close, S&P futures contracts briefly slipped to 20% below their high – signaling a bear market.

It wasn’t just S&P futures that hit circuit breakers: the 10Y Treasury future likewise hit a limit down on Tuesday, after surging limit up the day before, demonstrating the wild gyrations that have gripped the market.

As a result, the 10Y yield was just shy back to its Friday closing level of 0.76% after crashing as low as 0.31% on Monday.  Elsewhere, Japanese government bonds also tumbled after an auction of five-year debt flopped.

What sparked the overnight euphoria? Why, “hope” of course. Speaking at a White House news conference, Trump late on Monday said he plans to announce “major” actions to support the economy including a payroll-tax cut and “very substantial relief” for businesses hit by the virus at a press conference on Tuesday following discussions with lawmakers.

“Looks like it includes a possible payroll tax cut,” said Matt Maley, an equity strategist at Miller Tabak & Co. “We might need to see more details before any rally gains any sustainability, but this should at least stabilize things overnight.”

Oil also recouped some losses from its biggest one-day decline since the Gulf War in 1991, supported by expectations for a settlement to the price war and potential U.S. output cuts. Following a record plunge in Brent and WTI which dragged the price of US oil down to $30.37, WTI rebounded more than 10%, rising to $34.22, even as Saudi, the world’s biggest oil exporter, escalated tensions with plans to supply 12.3 million barrels per day (bpd) in April, well above current production levels of 9.7 million bpd, Saudi Aramco CEO Amin Nasser said on Tuesday.

Brent futures also rose more than 10%, hitting a session high of $37.75 a barrel. Both benchmarks plunged 25% on Monday, dropping to their lowest levels since February 2016 and recording their biggest one-day percentage declines since Jan. 17, 1991, when oil prices fell at the outset of the first Gulf War.

As a result of the sharp Tuesday rebound, oil majors Exxon Mobil and Chevron both climbed more than 7% in premarket trading, while Occidental Petroleum, Apache and Marathon Oil all jumped between 20% and 29%.

The euphoria spilled over across the globe, with Europe’s Stoxx 600 Index also jumping, though most benchmarks weren’t close to recovering their historic losses from Monday. The Stoxx 600 Oil & Gas index rises as much as 8.1%, extending an earlier recovery from Monday’s plunge as crude prices rise. Index heavyweights Shell (+12%), Eni (+11%) and Total (+9.3%) lead the gains. The index dropped the most on record on Monday after the breakdown of OPEC+ talks on supply cuts triggered a price war between Saudi Arabia and Russia.

Earlier in the session Asian stocks rebounded after their worst sell-off since 2011 as a series of government actions boosted market sentiment on riskier assets. The benchmark MSCI AsiaPacific Index erased an earlier decline and most markets in the region climbed after U.S. President Donald Trump said he will seek a payroll tax cut and “very substantial relief” for industries that have been hit by the coronavirus. China President Xi Jinping’s visit to the virus epicenter of Wuhan showed the government’s confidence that the epidemic is contained. In Japan, optimism over government measures to combat the economic impact of the outbreak helped the Topix index erase a slide of as much as 4.2% and post its best day in a month. The nation’s central bank purchased a total of 101.4b yen of exchange-traded funds, matching record daily purchases it made on March 2, March 6 and March 9.

Also on Tuesday, Japan announced a second package of measures worth about $4 billion in spending to cope with the fallout to the economy of the coronavirus outbreak, focusing on support for small and mid-sized firms. The package, totalling 430.8 billion yen ($4.1 billion) in spending, shows how much pressure policymakers are under to bolster fragile growth and stem the risk of corporate bankruptcies, as event cancellations and a slump in tourism threaten to hit the broader economy hard.

Measures to contain the coronavirus continue to undermine prospects for corporate earnings, and raise the danger of a funding crisis, while the oil price crash threatens a swath of defaults among producers. Italy added nationwide travel restrictions to its effective lockdown of the northern region of the country.

“While things feel like the end-of-days I’d stay risk averse in the near-term, but expect bear market rallies,” Chris Weston, head of research at Pepperstone Group, said.

In FX,the dollar staged a strong rebound, as safe havens were sold off. The yen dropped by more than 2% against the dollar and Treasuries were sold amid a global bond selloff as expectations grow that governments will introduce stimulus to combat the coronavirus outbreak. Sterling halted five days of gains and the euro fell for the first time in four days as gilts and bunds sold off. The U.K. government is due to unveil its budget on Wednesday, a major fiscal set piece that’s now likely to unleash some short-term stimulus to combat the coronavirus.

Market Snapshot

  • S&P 500 futures up 3.9% to 2,850.75
  • MXAP up 0.6% to 150.63
  • MXAPJ up 1.2% to 493.26
  • Nikkei up 0.9% to 19,867.12
  • Topix up 1.3% to 1,406.68
  • Hang Seng Index up 1.4% to 25,392.51
  • Shanghai Composite up 1.8% to 2,996.76
  • Sensex down 5.2% to 35,634.95
  • Australia S&P/ASX 200 up 3.1% to 5,939.60
  • Kospi up 0.4% to 1,962.93
  • STOXX Europe 600 up 1.9% to 346.02
  • German 10Y yield rose 10.0 bps to -0.756%
  • Euro down 0.5% to $1.1392
  • Italian 10Y yield rose 34.7 bps to 1.253%
  • Spanish 10Y yield rose 5.4 bps to 0.318%
  • Brent futures up 4.9% to $36.04/bbl
  • Gold spot down 1.1% to $1,662.66
  • U.S. Dollar Index up 1% to 95.83

Top Overnight News

  • Italy became the first country to attempt a nationwide lockdown as cases topped 9,000 overnight and officials said the government may try to boost a planned stimulus package in Europe’s worst-hit nation. Spain shuttered schools in Madrid after infections surged; China reported 19 new infections, the lowest since Jan. 18, and President Xi Jinping visited Wuhan in a sign the country sees the outbreak is under control
  • New Zealand central bank Governor Adrian Orr said the country is in a strong position to weather a global economic shock, including the ability to cut interest rates
  • Orders for Japanese machine tools fell last month to the lowest level in seven years, signaling that already-weak manufacturing investment has taken another hit from the coronavirus
  • The Bank of Russia said it would begin selling foreign currency on Tuesday ahead of schedule after the rout in oil prices made the ruble the worst-performing currency in the world
  • Sweden’s Riksbank signaled it’s preparing liquidity measures to protect the largest Nordic economy from the fallout of the coronavirus, but said interest-rate cuts aren’t likely to play a role in any emergency package
  • At least three buyers of Saudi Arabian oil requested between 30% and 50% more supplies than they had originally planned in April after the world’s biggest exporter slashed its prices, according to people familiar with the matter
  • A Deutsche Bank AG employee in Frankfurt and another at KKR & Co. in London contracted the coronavirus, setting off swift measures to contain potential outbreaks

Asian equity markets eventually traded mostly higher as markets began to pick up the pieces from the recent oil-triggered devastation, which resulted in losses of over 7% among most major US indices for the worst performance on Wall St. since 2008. Nonetheless, US equity futures found some reprieve overnight despite briefly dipping into bear market territory with the rebound helped by hopes of policy action with President Trump set to discuss payroll tax relief with congress and to hold a press conference on economic measures to respond to the coronavirus which he suggested will be major steps, while Japanese is to submit a 2nd package of steps on coronavirus to parliament. ASX 200 (+3.1%) and Nikkei 225 (+0.9%) gained in which the former shrugged off opening losses of around 4% led by the recovery in the energy and financials sectors, while the Japanese benchmark also nursed losses helped by favourable currency moves. Hang Seng (+1.4%) and Shanghai Comp. (+1.8%) were initially indecisive after continued PBoC liquidity inaction but eventually surged following a further reduction in China’s additional coronavirus cases and President Xi’s visit to the Wuhan coronavirus epicentre for the first time since the outbreak which was seen to be symbolic of China’s progress in its battle against the epidemic. Finally, 10yr JGBs slipped below 155.00 as it tracked the pullback in USTs after the recent safe-haven surge and as equity markets stabilized, while prices were also pressured after weaker results at the 5yr JGB auction.

Top Asian News

  • Korea Extends Ban to 10 Days for ‘Overheated’ Short Sale Stocks
  • Wake-Up Call For Rich Buyers as Asia Bank Bond Goes to Zero
  • China Biologic, Suitor Said in Advanced Talks on Take- Private

European stocks consolidate [Eurostoxx 50 +4.0%] following the prior session’s detrimental sell-off sparked by further coronavirus woes and considerable downside in energy markets. Overnight, APAC bourses reflected a similarly conciliatory tone as stocks recovered following a mixed open – with desks pointing to hopes of US stimulus announcements in the form of payroll tax relief. European bourses got off to a shaky start with futures erasing a chunk of its overnight gains ahead of the cash open before reversing course to fresh session highs at the time of writing. The Italian bourse is conforming to the broad gains in the region despite Italy’s country-wide lockdown. The index remains buoyed by a raft of Italian stimulus including a ramp-up in measures to EUR 10bln from EUR 7.5bln. Meanwhile, sectors trade in positive territory and reflect a “risk-on” mood as cyclicals fare better than defensive. The energy sector outperforms following the prior session’s hefty losses and as the oil complex rebounds, with similar action seen in financials. Stoxx 600 movers largely reflect an inverse of yesterday. Oil giants Shell (+12.5%), Total (+9.0%) and BP (+8.5%) amongst the top gainers. On that front, Exane BNP remains of the view that cash dividends will continue to see support despite yesterday’s sharp sell-off in oil and energy names, with preferred names remaining BP, Total and Equinor. In terms of more micro-movers, Deutsche Post (+6.3%) shares are supported amid an increase in YY Q4 revenue and a reaffirmance of its 2022 guidance. Italian-listed Diasorin (+17.4%) rose to the top of the FTSE MIB as the Co. completed its studies regarding a launch of coronavirus tests by end-March.

Top European News

  • M&G Clients Pull Cash as It Begins Life Without Prudential
  • Riksbank Targets Liquidity Aid, Not Rate Cuts, as Virus Spreads
  • Germany Won’t Blink on Fiscal Easing Until Crisis Hits Home
  • Bank of Russia to Sell Foreign Currency After Oil Plunge

In FX, still flanking the G10 ranks, but the Norwegian Krona is now in pole position and Yen at the back of the pack in contrast to Monday when oil prices were tanking and risk aversion rife. Eur/Nok has recoiled further from nigh on 11.0000 to sub-10.7550 at one stage and almost oblivious to significantly weaker than expected inflation data or a downbeat regional survey even before the full extent of the coronavirus contagion has been taken into consideration. Conversely, Usd/Jpy has rebounded from near 101.00 yesterday to just over 105.00 as broad sentiment stabilises alongside crude, despite more exchanges between Saudi Arabia and Russia on the supply front.

  • USD – The Dollar has benefited from the relative calm in financial markets, partly instilled by US pledges via President Trump and Treasury Secretary Mnuchin to unveil big fiscal support measures, which in turn have flipped Treasuries back into bear steepening mode and eroded some appeal from safer currency and other havens. Hence, the DXY has pared losses from yesterday’s new 94.650 ytd base and briefly topped 96.000 within a 96.006-95.199 range.
  • CHF/EUR/GBP/NZD/AUD – All softer vs the Greenback due to the aforementioned turnaround in mood from extreme depression, with the Franc below 0.9300 again, Euro sub-1.1400, Cable under 1.3100 and Antipodeans losing a degree of their yield appeal from 0.6600+ and 0.6350+ respectively overnight. The Aussie also had drops in NAB business conditions and confidence to digest, while the Kiwi is absorbing comments from RBNZ Governor Orr indicating that there is more room to reduce the OCR (to zero or even negative if needed) rather than resorting to unconventional policy easing.
  • CAD/SEK -The Loonie is deriving some comfort from oil finding a base (for the time being at least) between 1.3706-1.3608 extremes vs its US counterpart and the Swedish Crown has regrouped amidst more Riksbank guidance steering away from a reversal in the repo rate in favour of QE if it need to take emergency policy action. Eur/Sek hovering around 10.7200 from 10.8100+ earlier and like the Nok cross not unduly bothered about data (household consumption).
  • EM – Respite after the rout, and with the Rouble not just gleaning traction from Brent clawing back outsize declines, but also the CBR’s intervention to stop the Rub depreciating in line with other regional Central Banks and bodies attempting to stem the tide.

In commodities, a day of respite, consolidation and potential short covering in the energy markets following yesterday’s violent Saudi-induced sell-off. WTI front month futures found an overnight base at ~USD 30/bbl and Brent April contracts touched APAC lows of just under USD 33.50/bbl – ahead of Saudi-fuelled lows around USD 27.40/bbl and USD 31.45/bbl respectively. Prices could also be experiencing some underlying support from OPEC delegates downplaying the expanding rift between Saudi and Russia, as they noted it is too early to give up on the alliance. That being said, Saudi Aramco’s CEO stated that it will supply its customers with 12.3mln BPD of oil starting April 1st – a number higher than the touted step-by-step increase as per sources, which noted the Kingdom could raise output to 11mln BPD before ramping production. As such, energy futures came under belated pressure and have been pushed to session lows of USD 30.20/bbl for WTI and USD 35.00/bbl for Brent, but nonetheless remain in positive territory following the gap higher at the reopen of electronic trade. Prices then found mild reprieve amidst comments from the Russian Energy Minister as he noted Moscow does not rule out join action with OPEC, despite also noting that Russian companies may boost oil output by up to 300k BPD and has potential to increase by 500k BPD – in fitting with comments from Russia’s Rosneft yesterday. Novak also noted of the next joint meeting to take place in May/June; OPEC’s website has scheduled this for June 10th. Sources stated that Russian Energy Ministry has called a meeting with Russian oil companies for tomorrow which is expected to discuss future co-operation with OPEC. Elsewhere, it’s worth noting that the monthly EIA STEO has been delayed to tomorrow to incorporate the recent oil market events. Onto metals, spot gold remains under pressure amid the overall risk tone in the market and as the Buck recoups some of its recent losses, with the yellow metal still above 1650/oz but notably below the USD 1680/oz overnight high. Copper prices meanwhile rebound with a vengeance after the prior session’s aggressive downside amid the risk tone and APAC stimulus measures (specifically from Japan), with the red metal back on a 2.5/lb handle.

US Event Calendar

  • 6am: NFIB Small Business Optimism, actual 104.5, est. 102.8, prior 104.3

DB’s Jim Reid concludes the overnight wrap

That we were in some kind of mini crisis yesterday was confirmed by the sheer fact that the S&P 500 hit a down -7% circuit breaker only shortly after opening. For context, the last time the S&P 500 circuit breaker was triggered was December 1st 2008 and then the index finished down -8.93%. Yesterday, the index recovered after trading resumed before selling off again in the afternoon to close at -7.60%, which was the worst day since that last circuit breaker day on December 1st 2008. In the daily history of the S&P back to 1928, there have only been 18 worse days than yesterday out of 24,501 trading sessions. The index is now down -18.9% from the all time highs and even a small move by recent standards could end up taking us into the 20% “bear market” levels that some use. This would grab a few headlines.

Indeed, futures markets had shown the S&P 500 trading in a bear market very early this morning, however, markets have since made a u-turn. S&P 500 futures are now up +3.06% as we go to print while the likes of the Nikkei (+0.39%), Hang Seng (+1.81%) Shanghai Comp (+1.33%) and Kospi (+0.32%) have also reversed heavy losses at the open. Oil has also rebounded with WTI and Brent prices up +7.71% and +7.55%, respectively, while in rates 10y yields are up +13.5bps. Typical safe havens like the Yen, which were very strong yesterday, are also weaker. It’s not entirely clear what’s driving the rebound, however, last night President Trump suggested that he would seek fiscal measures which are likely to include a payroll tax cut and “very substantial relief” for industries that have been hit by the virus. He also said that he wants to help hourly wage earners who could lose pay by staying home.

Back to yesterday where energy and specifically HY energy was the other big talking point. Cash HY spreads in the US finished +104bps wider. To put that into context, since 1996 there have only been 2 more worse days. HY energy spreads were +333bps wider alone and are now at 1,432bps. The peak they reached in 2016 was 1,984bps and spreads started this year at 714bps. It’s liquidity that is now the biggest concern though and it’s worth highlighting that HY ETFs were hit by the circuit breaker yesterday as well. Given that credit ETFs have been defended by some as liquidity enhancers and not destroyers then this would have shocked a few. As for IG, it’s more insulated from the energy issues, however, cash spreads were still +39bps wider in the US. In Europe, HY and IG cash was 94bps and 29bps wider, respectively. In CDS, CDX IG and HY also widened 28bps and 108bps, respectively, the most since September 2011 and August 2012 up to which point data is available in the Bloomberg. EU crossover and main widened 82bps and 25bps and since 2013 they have only been wider for a day or so in early 2016.

Yesterday, Craig and Nick published a note questioning whether the latest oil news is a Minsky moment for HY. With energy the largest sector in US HY, huge stress raises the overall risk profile of the asset class, especially for more passive funds. This leads to outflows, which subsequently forces funds to raise cash, which is typically focused on easier to sell credits, which tend to be larger and in some cases more defensive, thus leading to a broader sell-off across other sectors. Charter – a very large BB+ telco – was a good example of that yesterday, where 10y bonds fell 3pts. This liquidity concern raises the risk HY spreads could blow a lot wider than even our bearish forecast of 750bps (360 at the start of the year, 356 before the last two week sell-off and 668 now). See the full note from yesterday here and our latest spread forecasts view from last week here.

In terms of other stats from yesterday, the NASDAQ (-7.29%) and DOW (-7.79%) also had their worst days since December 1st 2008 (-8.93%) and October 15th 2008 (-7.87%) respectively. In Europe, the moves were even more severe. The FTSE MIB for example was hit to the tune of -11.17%, which was the worst day since June 24th 2016 (-12.48%) – the only time the index has fallen more. The DAX (-7.94%) and CAC (-8.39%) had their worst days since September 11th and October 6th 2008 respectively, while the FTSE 100 (-7.69%) had its worst day since October 15th 2008, when it tumbled -7.16%. Meanwhile, the VIX touched as high as 62.12 before closing at 54.46 – albeit still the highest since the financial crisis. As for oil itself, Brent closed -24.10% and WTI -24.59%. In fairness both were off their early intraday lows of over -30%, however these were still the worst days since January 17, 1991, when Operation Desert Storm began, with US-led coalition forces bombing Iraq. Given the move in oil, it follows that the Oil and Gas sector of the STOXX 600 was the worst performer, down -16.83%. Banks were the second largest laggard, down -10.72%, as yields across the continent drove lower. It was a similar story in the US, with Energy the worst performing industry, down -20.1%, followed by Banks down -14.4%. Similarly the best performing sector in both regions were Retail in Europe and Food & Staples Retail in the US, both were still down over 2% to show how broad-based the selloff was. In fact, in the US only 9 constituents of the S&P 500 finished up on the day.

In terms of rates yesterday the -22.2bps rally for 10y Treasuries means yields closed at 0.54% and have effectively halved from last Wednesday. That was also the biggest rally for 10y Treasuries since August 8th 2011 even if at one point we were down -44.8bps to 0.31% on the day. 2yr and 30yrs notes finished the day down -12.5bps and -29.2bps, respectively, at 0.38% and 0.995. Yesterday was the first time in history that the entire US yield curve traded below 1%. 10yr and 2yr Bunds yields both fell -14.6bps to all-time lows at -0.86% and -1.00%, respectively. 10yr BTPs rose +35bps as markets worry about the extreme intention levels.

Further to our comment on oil and inflation expectations from yesterday EU and US 5yr5yr inflation swaps fell -8.9bps and 17.8bps to 0.95% and 1.52% yesterday – clearly the lowest on record. Central banks are going to have an impossible job lifting this on their own. Perhaps the only way is fiscal stimulus and ultimately helicopter money.

Talking of stimulus, as we approach the ECB meeting on Thursday our economists have adjusted their expectations. They continue to expect a new targeted liquidity facility (e.g., a short-term LTRO aiming to boost SME lending in affected regions) but they have brought forward the 10bp deposit rate cut from April to March. They expect the “or lower” guidance to remain, signalling that rates could fall further. They also now expect a policy to supplement general liquidity conditions. The signs of rising bank funding costs in an environment of supposedly high excess liquidity increases the risk of tighter lending conditions. What is less clear is how the ECB does this. A TLTRO-based policy may be easier, but a passive means of expanding the ECB balance sheet may be less effective. Private asset purchases might be more effective, but their costs bring limits. Low yields mean sovereign purchases are not obviously needed, but would inject market confidence if seen as policy coordination.

The greatest market impact would come from “fiscally-equivalent” policy options, such as taking more risk by expanding private asset purchases or coordinating monetary and fiscal policy. To do either, Lagarde may have to sacrifice Council unity. That is possibly a step too far. If the ECB under-delivers, markets will have to wait until the Eurogroup on 16 March to judge whether we have policy rotation (a positive outcome) or a combined policy disappointment (a negative outcome). See their report here for more.

In terms of the latest on the coronavirus, Italy is in complete lockdown now as the number of confirmed coronavirus cases in the country reached 9,172 with fatalities now at 463. Italian PM Conte said at an unscheduled news conference yesterday evening that it is the country’s “darkest hour,” and ordered the nation to “stay at home” as he explained that “we are forced to impose sacrifices.” Now the restrictions will affect 60mn citizens viz a viz 16mn on Sunday and just 50,000 before that. However, how effectively such measures can be implemented remains a question with the initiatives in the north appearing to have yielded limited results as people are still able to move around freely. Elsewhere, Santa Clara County in California announced that its public health officer has issued a mandatory ban on gatherings with more than 1,000 people in an attempt to protect the community from the spread of the virus. It’s set to take effect on Wednesday and last for three weeks. The decision is likely to disrupt National Hockey League and Major League Soccer games in the coming weeks, likely the first time that the coronavirus will impact events in the major US sports leagues. In a sign that travel companies are continuing to reel under the virus fallout, Qantas announced overnight that it has cut almost a quarter of its international flights for six months, grounded most of its giant A380 jets and slashed management pay.

If you’re looking for some good news the virus outbreak in Korea may be slowing in a manner similar to what we have seen in China (outside of Hubei where the data is likely cleaner). Over the past the week the daily growth in cases has been 19%, 14%, 11%, 8%, 9%, 8%, and 5%. We saw a similar slowdown at a similar part of the outbreak curve in China. This could show that Korea’s containment practices and aggressive testing are working to stunt the wider passage of the coronavirus. Whether the western world can match their progress remains to be seen. We’re probably 10-14 days behind them so we’ll soon see.

In terms of the day ahead, data couldn’t be much more of an afterthought at the moment however for completeness we’ll get January industrial production prints in France and Italy this morning as well as the final Q4 GDP revisions for the Euro Area. There’s no data due in the US. Clearly all the focus is on how the market functions following the moves yesterday.

 

3A/ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 53.47 POINTS OR 1.82%  //Hang Sang CLOSED UP 352.05 POINTS OR 1.41%   /The Nikkei closed UP 168.36 POINTS OR 0.85%//Australia’s all ordinaires CLOSED UP   2.98%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9500 /Oil UP TO 33.25 dollars per barrel for WTI and 36.72 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 69500 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9576 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/USA/Italy

Airport Says DHS Not Screening People Coming Into US From Virus-Stricken Italy Or South Korea

Authored by Steve Watson via Summit News,

A major airport in Atlanta has admitted that neither its own officials, nor the Department of Homeland Security are screening travellers arriving from Italy or South Korea, two countries where the coronavirus has hit the hardest outside of China.

Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia announced that while the CDC has demanded screening of passengers from China and Iran, no such screening is taking place for those coming in from Italy/South Korea, “because those countries are doing exit screenings.”

Andy Trieu@andytru999

@ATLairport please do thorough screening of people who come from coronavirus infected countries such as Italy , china. @POTUS

Atlanta Airport

@ATLairport

As per the CDC, In the US, airports are conducting entry screening for travelers from China and Iran.
People aren’t being screened when they arrive from Italy/South Korea, because those countries are doing exit screenings.
For more info, please visit: https://bit.ly/2vvCMeQ *NA

Coronavirus Disease 2019 (COVID-19)

Coronavirus disease 2019 (COVID-19) is a virus (more specifically, a coronavirus) identified as the cause of an outbreak of respiratory illness first detected in Wuhan, China.

cdc.gov

See Atlanta Airport’s other Tweets

So, essentially, officials in the US are relying on the word of their foreign counterparts that sufficient screening is happening before people leave.

This jives with reports from those entering the US after returning from Italy, confirming that they were not stopped or screened.

Italy was yesterday placed on complete lockdown after deaths increased by nearly 60 percent overnight. From today, the movement of Italy’s population of 60 million has been severely limited by the government there, with travel only being permitted for “urgent, verifiable work situations and emergencies or health reasons”.

In South Korea there are almost 8000 cases of infections.

On Friday, President Trump told the media that “The tests are all perfect”:

Aaron Rupar

@atrupar

“Who are you from by the way? I don’t watch CNN. That’s why I don’t recognize you. I don’t watch CNN because CNN is fake news” — Trump insults a CNN reporter

Embedded video

Aaron Rupar

@atrupar

“The [coronavirus] tests are all perfect. Like the letter was perfect. The transcription was perfect. This was not a perfect as that, but pretty good.” — is Trump referring to the transcript of his phone call with the Ukrainian president here?

Embedded video

1,387 people are talking about this

 

b) REPORT ON JAPAN

 

3 C CHINA AFFAIRS

CHINA/CORONAVIRUS/

“Mission Accomplished”?: President Xi Declares Victory Over Coronavirus In Visit To Wuhan

Almost exactly one month ago, President Xi, clad in a facemask and protective gear, ventured out of the Imperial City and out into the Beijing neighborhoods where he visited with hospital workers and posed for photos for the state-run media. Looking back, his decision to show up in person and visit with doctors and nurses probably accomplished what he intended: it gave the Chinese people hope that the leadership had not forgotten them, and that while the quarantine measures might seem draconian and overly punitive at times, the Communist Party would continue to do what it feels it must to maintain social order and protect the Chinese people.

One month later, President Xi is making his second major public visit since the outbreak began in late December. This time, he’s traveling to Wuhan – the epicenter of the outbreak – in what appears to be a “Mission Accomplished” moment for the leader of the world’s largest country in its battle against the novel coronavirus and Covid-19.

Since the beginning of the outbreak, Xi has left the on-the-ground work to his No. 2, Premier Li Keqiang. On Tuesday, while Chinese state media touted the visit as a sign that “victory is near”, Xi stopped at Huoshenshan, one of two hastily-built “hospitals” (quarantine center/prison) built in under two weeks between January and February, during the worst of the outbreak in Wuhan.

Presumably to maximize the potency of the propaganda visit, the announcement was closely followed by numerous articles highlighting China’s growing success in containing the coronavirus, as the SCMP pointed out.

State financial news wire Xinhua published testimonials from some of the female nurses – female nurses being a heavily leaned-upon trope for the government during its propaganda war – sent to Wuhan to help alleviate the massive shortage of personnel and supplies.

China Xinhua News

@XHNews

Tens of thousands of female medics have worked at the heart of the outbreak in Wuhan. Take a look at what they do, through their eyes…

Embedded video

41 people are talking about this

In one piece of commentary, Xinhua ‘explained’ the importance of Xi’s visit with a syllogism.

“A victory in Wuhan is a victory for Hubei, a victory in Hubei is a victory for China,” the commentary said, repeating a phrase that has been used previously in official party media. “The battle continues, but victory is near,” said another commentary published by Xinhua on Tuesday morning.

State media reported that during his visit to Wuhan, Xi “would inspect the prevention and control work” in the city and visit medical workers, military commanders, community workers, public security officers, grass-roots and frontline cadres, as well as volunteers, patients and residents.

Of course, some questioned whether he was ever there, though the state press released photos that showed Xi in a mask visiting what appeared to be Huoshenshan.

Eunice Yoon

@onlyyoontv

President Xi made a special trip to ’s first pre-fab hospital (火神山) right off the plane, state media say, to review operations, visit with patients, rally medical workers to overcome the epidemic.

View image on Twitter
31 people are talking about this

To be sure, there’s little doubt that the situation in China is improving, clearly due to their draconian lockdowns that left up to half the country at one point living in zones where their movements were strictly curtailed. Recent days have seen a further downturn in the number of new cases announced by China’s National Health Commission, not that experts ever really trusted the data. Of the 19 new infections reported by the NHC early Tuesday, 17 were in Wuhan, while the remaining two were “imported” cases of the disease, or at least that would seem to fit with the new focus of the regime’s propaganda: tightening restrictions on visitors from the US, Italy and other countries impacted by the virus, while complaining that the west hasn’t shown China appropriate deference for its “sacrifice” in containing the outbreak…

Eunice Yoon

@onlyyoontv

ramps up steps to prevent reintroduction of infections from overseas travelers. Beijing airport allocates special area to process flights from affected regions/countries, state TV says. (Beijingers: Zone D at T3!)http://app.cntv.cn/special/cportal/detail/arti/index.html?id=ArtiYCTQpVCUYoha9mGdO7lm200310&fromapp=cctvnews&version=803&version=803&allow_comment=1 

…as CNBC’s Eunice Yoon reminds us.

4. EUROPEAN AFFAIRS

ITALY/CORONAVIRUS//GLOBAL INFECTIONS

Italy shuts the country down where the entire 60 million citizens cannot leave the country.  Nobody can enter the country.  Israel also does a bold move as they now rule that all incoming passengers must go through a 14 day quarantine

(zerohedge)

Coronavirus: Italy extends emergency measures nationwide

(COURTESY BBC)

Italy has extended its emergency coronavirus measures, which include travel restrictions and a ban on public gatherings, to the entire country.

On Monday, Prime Minister Giuseppe Conte ordered people to stay home and seek permission for essential travel.

He said the measures were designed to protect the most vulnerable. “There is no more time,” he said in a TV address.

Italy’s coronavirus death toll jumped from 366 to 463 on Monday. It is the worst-hit country after China.

The number of confirmed infection also increased by 24% from Sunday, official figures showed.

Cases of the virus have been confirmed in all 20 Italian regions.

 

What did Mr Conte say?

Mr Conte said the best thing was for people to stay at home. “We’re having an important growth in infection… and of deaths,” he said in an evening address.

“The whole of Italy will become a protected zone,” he added.

Banner image reading 'more about coronavirus'
Banner

“We all must give something up for the good of Italy. We have to do it now.

“This is why I decided to adopt even more strong and severe measures to contain the advance… and protect the health of all citizens.”

In an earlier interview with La Repubblica newspaper, Mr Conte said of the outbreak: “I have been thinking about the old speeches of [Winston] Churchill – it is our darkest hour, but we will make it”.

What are the restrictions?

Mr Conte described the measures as “I stay home” – with people forbidden to gather in public. “No more nightlife; we can’t allow this anymore since they are occasions for contagion,” he said.

All sporting events – including football matches – are suspended nationwide. Schools and universities will remain closed until 3 April.

The government said only those with a valid work or family reason that cannot be postponed will be allowed to travel.

Passengers departing on flights will have to justify themselves, as will all those who arrive by plane.

There are controls at train stations to check the temperatures of passengers. Cruise ships are also forbidden to dock at various ports.

How have people reacted?

Earlier on Monday, seven inmates died amid riots at prisons across the country after authorities suspended all visits as part of attempts to control the spread of the disease.

The trouble began in the northern city of Modena at the Sant’Anna prison.

It is thought that at least two of the dead lost their lives to drug overdoses after they raided a prison hospital for the heroin substitute methadone.

Relatives of inmates protest as law enforcement officers stand outside the Rebibbia prison in Rome, where a riot earlier broke out, 9 March 2020Image copyrightEPA
Image captionRelatives of inmates at the Rebibbia prison in Rome protest at being denied entry

At San Vittore prison in Milan, detainees set fire to a cell block, then climbed onto the roof through windows and started waving banners, officials said.

At a prison in the southern city of Foggia, dozens of inmates broke out of the building during protests. Many were quickly recaptured, Italy’s Ansa news agency reported. Nine are still missing.

There were also riots at other prisons in northern Italy and at facilities in Naples and Rome.

At least six people were killed at a prison in Italy's Modena as inmates' relatives protest outside over coronavirus measures, 9 March 2020I

 

How about the rest of the world?

The number of infections worldwide is now more than 111,000, with about 3,890 deaths.

Everyone arriving in Israel will be required to self-quarantine for 14 days, Prime Minister Benjamin Netanyahu announced.

Iran has reported 43 new deaths related to the disease in the past 24 hours. At least 237 people have died and 7,161 have been infected across the country since mid-February, although the real figures are believed to be far higher.

China, which has recorded the highest number of fatalities, reported just 40 new cases of Covid-19, the lowest since 20 January.

Although this indicates that the spread there is slowing, senior officials warned against reducing vigilance.

Presentational white space
Cases of coronavirus in Europe
Presentational white space
Cases of coronavirus outside China
Presentational white space

In other developments:

  • The World Health Organization (WHO) has warned that the threat of a pandemic is “very real”
  • Canada has confirmed the first death related to the virus – an elderly male patient in a care home in Vancouver, British Columbia
  • In France, Culture Minister Franck Riester has become the first member of the government to be infected with the virus. His team said he had spent several days of the past week in parliament, where a number of other cases have been confirmed
  • In the US, the number of confirmed cases now exceeds 500
  • A cruise ship carrying thousands of people who were stranded for days due to a coronavirus outbreak has docked at the port of Oakland, near San Francisco
  • Shares around the world had their worst day since the financial crisis amid concerns about the economic cost of the outbreak

end

IRELAND

Ireland cancels all St patrick’s day parades because of the coronavirus

(zerohedge

Ireland Cancels All St. Patrick’s Day Parades Amid Virus Fears

With European stocks crashing into a bear market on Monday, closing the session on the worst declines since the 2008 financial crisis, pandemic fears across the continent are surging.

The plunge in Europe’s financial markets comes as investors reprice assets as a recession could be imminent for the continent.

More than ten thousand confirmed cases are now in Europe, with deaths around 400. The bulk of the breakout is in Italy, France, Germany, Spain, Switzerland, Netherlands, Belgium, and Sweden.

At least 21 cases have been confirmed in Ireland, prompting authorities to cancel all Saint Patrick’s Day parades this month.

Irish Prime Minister Leo Varadkar said Monday that people should “limit the number of social gatherings they are involved in.” Varadkar is suggesting or at least hinting that mandatory quarantines could be next if cases increase.

Varadkar said contingency funds for the private sector set aside for Brexit are now being used to combat the fast-spreading virus. He added that all sick pay and illness benefits would be covered in a 2.4 billion Euro emergency package.

Richard Ramsey, the Ulster Bank Chief Economist, Northern Ireland, warned that the virus threatens to push the global economy into recession.

Ramsey said the economic situation in Ireland has deteriorated in the last month:

“The accelerated spread of the coronavirus beyond China into Europe, the Middle-East and the Americas threatens a global recession.”

“China’s manufacturing PMI signaled its deepest contraction on record. This has severely disrupted global supply chains with the hospitality, tourism, and airline industries hit by a slump in demand.”

“Indeed, one leading UK regional airline has gone into administration. Economic conditions for all economies, including Northern Ireland, are expected to get worse before they get better.”

With the European economy grinding to a halt, public events are now being canceled, and the threat of a recession nearing, it’s only a matter of time before this is seen in America.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

a must read..

Meijer

The Virus Is A Time Machine

Authored by Raul Ilargi Meijer via The Automatic Earth blog,

Around mid-January I started including coronavirus news in the daily Automatic Earth “Debt Rattle” news aggregators, and wrote the first essay on the topic on January 29. Tons of people since have asked why, but I thought the virus had “potential”. Though not everybody would agree, I still think that. So the Debt Rattles are full of coronavirus these days.

For a proper understanding, we must remember that China was 4-5 weeks too late in reporting the disease, and after that the west was 4-5 weeks late in acting on the news. This happens simply because a politician who cries wolf will have a short career, and reporters, certainly today, follow that same model.

I explained 5 weeks ago why this happens the way it does in China in The Party and the Virus, but western countries’ political and media systems are structured very much the same way. Being early to warn does not help your job prospects. Unless you’re 100% sure, but then you won’t be alone and there’s nothing left to warn about. So might as well stay mum.

Until you must speak, and then you’re way behind, and you’ll be as wrong as you are late. Cast in stone. Bias “R” Us. But then, that’s why there’s the Automatic Earth. The Matrix is never perfectly sealed.

In the case of COVID19, the story is not about the numbers of cases or fatalities at any given point after two months and change, it’s about the disruption it will cause. We have a highly contagious virus that can cause death. That is all you need to know really. Feel free to claim that reactions and measures are over the hill, but no government has the option to say things are not all that bad and it’s business as usual.

They all tried again though. It’s in their job description. One of their tasks is to prevent panic, and yes, they use that to hide their ignorance behind, but they still must do it. But that’s alright, because all halfway smart people know what to do when a politician says not to panic.

However, they will still quarantine you and close borders, no matter what you think. Politicians are dead set to react too late, and then when they do, to order measures that are over the top and at best partly effective. But it’s not them, it’s the model they function within.

I first said this days ago, that it’s easy for people to look past that reality, but it’s always good to see Nassim Taleb share that view, that what you think about your own situation is not an option for politicians:

Nassim Nicholas Taleb

@nntaleb

Saying the coronavirus panic is dumb is dumb. https://twitter.com/elonmusk/status/1236029449042198528 

Nassim Nicholas Taleb

@nntaleb

If the word “panic” means “exaggerated” reaction, could be so at the individual level but NOT at the collective one.
We MUST reduce connectivity for 20 d to avert a serious problem.
We have survived for zillion years thanks to “irrational” “panics”.
https://twitter.com/nntaleb/status/1235663235573067777?s=20 

Nassim Nicholas Taleb

@nntaleb

Why it is SELFISH to not worry more about the virus than other sources of risk even if it does not affect you as much.

Individual precaution does not scale to collective precaution.
[Adding to PRINCIPIA POLITICA]

View image on Twitter

1

 

And people comparing COVID 19 to seasonal flu are therefore way off base. It’s not apples and oranges, it’s apples and baseballs -if not baseball bats-. Both are round but they have little else in common. The seasonal flu has been around since at least 1899, when the first epidemic was reported, what ever that meant back then.

The COVID19 virus is, far as we know, 3 months and change old. So any numbers you can toss around, of so many people killed by one and not the other, are pretty much meaningless. They are completely different entities that just happen to perhaps look alike if you don’t look to close. You can bring up the comparison, but you don’t say a thing about COVID19 if you do.

There are more interesting things to say about COVID 19. Unlike seasonal flu (largely), this one is not standing still. That means it will take 12-18 months to develop a vaccine, while any given year’s vaccine vs that year’s “normal” flu takes a few weeks. That difference may not say it all, but it comes close.

The most striking characteristic of the virus may be, if not should be, its exponential (or quadratic, if you will) progress once it gets hold. Ben Hunt tweeted earlier today, in reaction to Rome shutting down a quarter of the entire country, that “Italy is a time machine that shows us our future. Why do we ignore it?” But it’s not just Italy. It’s a pattern, it’s a dynamic, it’s motion. All things that regular flu is not.

And here’s what that dynamic looks like:

First, South Korea till March 4. when it had 5,621 cases. Today it has 7,313. But it is suspicious; they have very few deaths AND very few recovered cases. Well over 90% of cases are unresolved, way more than in other countries. It also has by far the largest numbers infected per million people.

Italy till March 4. when it had 3,089 cases. Today it has 7,375. 1,492 new cases today, and 133 new deaths (366 total). Ouch. 25% more cases, 57% more deaths.

China may have leveled off a little (who knows, really?), but the rest of the world is just getting started.

The US is starting to get in line:

And this pair of graphs from Worldometer just keeps going as well:

COVID19 is not a point in space, it’s not standing still. You can’t look at it and compare it to anything else around today, because it moves much faster. Let’s try this vein:

I would suggest we’re looking at something like this:

  • Wave 0: Wuhan/Hubei (11/58.5 million people)
  • Wave 1: Rest of China (1.375 million people, total China 1,435)
  • Wave 2: Italy, South Korea, Iran (59, 51 and 81 million people)

And the next wave could well be, given their development in new cases, countries that are following the early phases of the graphs for Italy and South Korea above:

  • Wave 3: US, Germany, France, Spain (?!) (330, 83, 67, 47 million people)

The UK is a candidate with its 66.8 million people, but it’s either cheating (don’t test) or it may “have to wait” for Wave 4. Note: the US doesn’t have all that many cases either, but its death rate is high.

I mention the numbers of inhabitants because Wave 3 may also include some countries with fewer people (Wave 3.5?):

Switzerland, Sweden, Belgium, Netherlands (8.5, 10.1, 11.5 and 17.1 million people) are all countries with relatively small populations and relatively high numbers of new cases that may well contain the same sort of clusters that have caused the explosion in cases in Wave 1 countries. We can not predict excatly what happens, but we can see trendlines.

The virus is a time machine in the sense that whereas we can -in theory- assume that the regular flu moves in human time, COVID19 very much appears to move in virus time. Almost something you would ask a quantum theorist to look into.

Meanwhile of course you can theorize about the possibility that this is a bioweapon, but first of all that doesn’t help any patients right now, and second it’s only interesting if you can find out whether it was made on purpose or by accident, released by accident or on purpose, and was it the Chinese, the Americans, the Russians, the British, or someone else, why did they do it, why does it target which group, etc etc.

This thing plays out today, not in an imaginary future where you may have found out the who what and why. In the meantime, people are dying.

If you look at the graphs for Italy and South Korea above, you can see your future. Not in a precise way, but certainly in a general one. You can see ahead. Time machine.

end

Covid-Contagion Spreads: American, Delta, Spirit, & United All Pull Guidance, Slash Flights

Hundreds of thousands of flights across the world have been canceled amid Covid-19 nearing pandemic status.

Airlines are slashing routes on a weekly basis, mainly to Asia Pacific countries and now Italy. The latest airline to announce cutbacks is American Airlines on Tuesday morning.

American started cutting flights in late January as confirmed virus cases and deaths soared in China. It has also reduced international seat capacity by 10% for the summer season, including a massive 55% reduction in flights to Asia Pacific countries.

American will slash domestic seat capacity by 7.5% in April, as many airports across the country are ghost towns as people stay home to avoid being infected. The issue with Covid-19 is that it can remain in the air for upwards of 30 minutes and travel 14 feet. This would suggest that anyone in confined spaces like airports or the cabin of a narrow-body aircraft, could have a high probability of contracting the infection. People are waking up that Covid-19 is much more dangerous than the flu, as it appears airports across the country are empty:

Joseph Kilcullen@Joekilcullen

ATL Airport – empty

View image on Twitter

John Hairabedian@johnhaira

I have never seen the Montreal airport this empty. This is the new post-apocalyptic world we live in

View image on Twitter
See John Hairabedian’s other Tweets

Sarah A.@sarahgalore

I’ve been in four different US airports in the last 24 hours and they’ve all been super empty. Not saying it’s a good idea to travel now but not saying it’s that bad either 😂🤷🏾‍♀️

View image on TwitterView image on TwitterView image on Twitter

Colin@clnbrns

DFW Airport is a ghost town. Never seen it this slow. No one was in Admiral’s Club, all the restaurants were empty. No lines at TSA. Staff confirmed “lots of cancellations”.

View image on Twitter

We noted several days ago that the global air travel industry is in crisis, expected to experience the biggest shock in demand not seen since the 2001 terrorist attacks and the 2008 financial crisis. “It’s unprecedented,” said Jefferies analyst Sheila Kahyaoglu.

The steep decline in passengers prompted American, Delta, and Spirit Airlines to all withdraw FY 20 outlooks on Tuesday morning. United Airlines withdrew its 1Q20 guidance on declining demand. Despite the gloomy forecasts, all four airlines are up premarket on expectations of a relief package from the Trump administration to cushion the demand shock.

Leslie Josephs

@lesliejosephs

Delta CEO says he thinks “no question” we’ll see government intervention with airlines because of

Earlier this month, we pointed out how plunging demand and canceled flights across the world triggered a crash in jet fuel prices.

And as a result of declining flights, the global travel industry is now headed for a “great crisis” with several hundred million jobs at risk and at least 10% of global GDP in jeopardy.

end

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1349 DOWN .0050 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 104.79 UP 1.715 (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 1.3049   DOWN   0.0025  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.3670 UP .0008 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  TUESDAY morning in Europe, the Euro FELL BY 50 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1349 Last night Shanghai COMPOSITE CLOSED UP 53.47 POINTS OR 1.82% 

 

//Hang Sang CLOSED UP 352.05 POINTS OR 1.41%

/AUSTRALIA CLOSED UP 2,98%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 168.36 POINTS OR 0.85%

 

 

/SHANGHAI CLOSED UP 53.47 POINTS OR 1.82%

 

Australia BOURSE CLOSED UP 2.98% 

 

 

Nikkei (Japan) CLOSED UP 168.36  POINTS OR 0.85%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1659.10

silver:$17.07-

Early TUESDAY morning USA 10 year bond yield: 0.71% !!! UP 14 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.19 UP 17  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 95.85 UP 95 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.48% UP 10 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.15%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.34%//UP 8 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,33 DOWN 10 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 99 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.80% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.13% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1305  DOWN     .0094 or 94 basis points

USA/Japan: 105.35 UP 2.304 OR YEN DOWN 230  basis points/

Great Britain/USA 1.2904 DOWN .0167 POUND DOWN 167  BASIS POINTS)

Canadian dollar DOWN 85 basis points to 1.3747

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9572    ON SHORE  (DOWN)..

 

THE USA/YUAN OFFSHORE:  6.9543  (YUAN DOWN)..

 

TURKISH LIRA:  6.1593

EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.15%

 

Your closing 10 yr US bond yield UP 23 IN basis points from MONDAY at 0.80 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.31 UP 28 in basis points on the day

Your closing USA dollar index, 96.45 UP 155  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 5.54  0.09%

German Dax :  CLOSED DOWN 149.53 POINTS OR 1.41%

 

Paris Cac CLOSED DOWN 71.30 POINTS 1.51%

Spain IBEX CLOSED DOWN 247.30 POINTS or 3.21%

Italian MIB: CLOSED DOWN 667.75 POINTS OR 3.32%

 

 

 

 

 

WTI Oil price; 34.57 12:00  PM  EST

Brent Oil: 37.88 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    71.49  THE CROSS LOWER BY 3.38 RUBLES/DOLLAR (RUBLE HIGHER BY 338 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.80 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 :  34.57//

 

 

BRENT :  37.88

USA 10 YR BOND YIELD: … 0.80..plus 23 basis pts…

 

 

 

USA 30 YR BOND YIELD: 1.31..plus 29 basis pts..

 

 

 

 

 

EURO/USA 1.1305 ( down 94   BASIS POINTS)

USA/JAPANESE YEN:105.35 up 2.304 (YEN down 231 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.45 up 155 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2904 down 167  POINTS

 

the Turkish lira close: 6.1593

 

 

 

German 10 yr bond yield at 5 pm: ,-0.80%

 

The Dow closed UP 1167.14 POINTS OR 4.89%

 

NASDAQ closed UP 393.58 POINTS OR 4.95.%

 


VOLATILITY INDEX:  46.72 CLOSED DOWN 7.74

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

MARKET TRADING//USA//IN GRAPH FORM/TODAY’S TRADING

Stocks & Oil ‘Dead Bat Bounce’ On Fiscal Dreams, But Credit Crash Continues

 

A Bounce today was expected… as Bloomberg details, prior to Monday’s steep decline, the S&P 500 had plunged by 5% or more to start the week on nine occasions since 1955.

On each of the following Tuesdays, the benchmark bounced back by 2% or more, data compiled by Bloomberg show.

Which means that a red close for stocks today would have been unprecedented in market history (and for a few brief minutes this morning, stocks went red). But as positive stimulus headlines struck, stocks accelerated higher… Dow ended over 1100 points higher and this was the S&P’s biggest day since Dec 2018.

Confirming that…”all is well”

European stocks followed the US and bounced hard from yesterday’s losses, but by the close had erase all those gains  as early optimism faded about measures to contain the coronavirus outbreak and provide economic stimulus to counter its impact.

Source: Bloomberg

The Stoxx Europe 600 Index fell 1.1% by the close to the lowest level since January 2019, wiping out gains of as much as 4.1%.

Source: Bloomberg

That turnaround was the biggest intraday reversal since August 2011.

While today’s bounce was very exciting, in context with yesterday’s drop, it;s not quite as impressive…

Be very careful trusting this as sustainable – one look at the level at which the machines ramped to suggests this move was extremely technical/algo-driven…

US markets all remain below their 200DMAs…

Bank stocks bounced along with everything else but remain well below Friday’s close…

Source: Bloomberg

Virus-related sectors rebounded hard today with Airlines erasing yesterday’s losses…

Source: Bloomberg

Factor-wise, markets were relatively untilted today – i.e. it was just systemic buying…

Source: Bloomberg

The energy sector ended green… but given oil’s rebound, the bounce was barely notable..

Source: Bloomberg

FANG Stocks rallied back but failed to clear yesterday’s losses…

Source: Bloomberg

Options markets ‘broke’ today, which briefly triggered a ramp in the underlying indices…

Source: Bloomberg

And before we all get too excited about today’s bounce, remember – fun-durr-mentals…

Source: Bloomberg

VIX pushed back below 50 today (after testing positive on the day briefly), but remains extremely elevated…

US credit markets were not playing along with stocks at all today… And despite VIX’s explosive move, credit protection costs have moved even more…

Source: Bloomberg

And just to ensure readers are not paying attention to malarkey like this overheard on CNBC: “IG bond yields have fallen which is the opposite of what happens in a crisis” – said in a way that was supposed to reassure you that everything is fine… except IG credit spreads are utterly exploding higher (even as yields slide due to the collapse in risk-free rates)…

Source: Bloomberg

Treasury yields exploded higher today, with dramatic steepening of the curve (30Y +29bps, 2Y +11bps)

Source: Bloomberg

10Y surged back to breakeven from Friday’s close…

Source: Bloomberg

The yield curve steepened dramatically – back to erase yesterday’s flattening…

Source: Bloomberg

The dollar soared higher today, erasing its losses since The Fed did an emergency 50bps rate-cut…

Source: Bloomberg

USDJPY also erased its drop from the weekend…

Source: Bloomberg

Cryptos were relatively flat on the day…

Source: Bloomberg

Bitcoin briefly pushed back above $8000, but quickly fell back…

Source: Bloomberg

Commodities were mixed today with PMs lower and crude and copper making gains…

Source: Bloomberg

Gold slipped lower today, with futures finding support at $1650…

And WTI soared 11%  – though in context it’s got a long way to go…

Finally, US markets are now screaming for more than 3 rate-cuts by the time of the March meeting (in 10 days)…

Source: Bloomberg

And for a sense of the panic – the implied correlation of the S&P’s 500 components has soared to its highest since Nov 2011 – signaling ‘correlation-one’ regime is here, just as it was during the Lehman crisis and the European crisis.

Source: Bloomberg

a)Market trading/LAST NIGHT/USA

Markets rise with Trump promising very dramatic action to support the economy

(zerohedge)

Oil, Stocks Rip Higher After Trump Promises “Very Dramatic” Actions To Support The Economy

After almost the biggest single-day drop since Black Monday, it is hardly surprising that markets are bouncing back a little and all it took was the promise of ‘very very substantial’ relief to hard-working Americans hurt by the impact of the virus.


During the daily virus update press conference, President Donald Trump said his administration will discuss a possible payroll tax cut with the U.S. Senate, saying they would seek “very very substantial relief” for the economy that has been roiled by the outbreak of coronavirus.

Trump, speaking at a White House news conference, added his administration plans to speak with lawmakers on Tuesday, seeking the aid to help hourly wage earners “so they don’t get penalized for something that’s not their fault.”

The president also said he that he plans to announce “very dramatic” actions to support the economy at a press conference on Tuesday.

And just like that WTI is up 4%…

And Dow futures are up over 400 points…

We wouldn’t hold our breath however, as we noted previously, the idea that Democrat-controlled Congress would ‘help’ is beyond a joke and in fact it could corner the President. If he comes asking for a payrolls tax-cut “for the people,” Democrats can easily respond “sure, just unwind the corporate tax cuts to pay for it and it’s a done deal.”

But of course that will crush the stock market – which is the only thing really matters – and so Trump will refuse and Dems can play the “see, he doesn’t work for the ‘little people’ card.”

Meanwhile, Daily Caller reporter Chuck Ross asked an excellent question:

Confused why, from an expectations management standpoint, the White House isn’t letting public know that there will be a spike in COVID cases as testing ramps up.”

We can only imagine what that sudden jump will do markets.

Additionally, it appears Mnuchin ‘made the call’ again…

As CNBC’s Wilfred ZFrost reports that I can confirm that the White House meeting with bank CEO’s will be on Wednesday at 3p ET. The nation’s biggest 7 banks have all been invited – maybe more too. I know at least 2 will send their CEO – I imagine all (other than JPM) will do so. Some industry bodies like ABA invited.

end

b)MARKET TRADING/USA/AFTERNOON

Stocks Tumble After Trump Claims Pelosi “Won’t Be Ready This Week” To Meet On Fiscal Plans

Markets reacted negatively to a tweet from President Trump claiming that “Do Nothing Democrats” will be unable to meet this week to discuss possible fiscal stimulus plans.

Nancy Pelosi just said, “I don’t know if we can be ready this week.”

In other words, it’s off to vacation for the Do Nothing Democrats. That’s been the story with them for 1 1/2 years!

Donald J. Trump

@realDonaldTrump

Nancy Pelosi just said, “I don’t know if we can be ready this week.” In other words, it’s off to vacation for the Do Nothing Democrats. That’s been the story with them for 1 1/2 years!

And the reaction was swift…

Trump did try and ring a positive tone though with a follow-up tweet claiming how well this virus team is doing…

Donald J. Trump

@realDonaldTrump

Our CoronaVirus Team has been doing a great job. Even Democrat governors have been VERY complimentary!

END
THEN:

Stocks Plunge Into Red After Trading Limit-Up Overnight, TSY Yields Lower

US equity markets have tumbled back into the red for the day – after briefly touching limit-up levels overnight. The driver appears to be a loss of faith (or hope) that fiscal stimulus is coming anytime soon.

Everything is red but Small Caps notably underperforming…

And Treasury yields are rolling over…

Notably, as Bloomberg details, prior to Monday’s steep decline, the S&P 500 had plunged by 5% or more to start the week on nine occasions since 1955.

On each of the following Tuesdays, the benchmark bounced back by 2% or more, data compiled by Bloomberg show.

So… if we close red after yesterday’s collapse, that would be unprecedented in market history.

END
\
then
:

Stocks Jump After Mnuchin Says There Is “Bipartisan Urgency” For Fiscal Package, Italy Stimulus May Reach €16BN

After dipping in the red earlier after reports that a US fiscal package is nowhere near ready, stocks have burst higher after earlier vague news of a $300 billion proposal for a fiscal package, and more recently, a Bloomberg report that Italy’s government is considering raising its deficit as much as just under 3% of GDP, which would grant leeway for a stimulus package of as much as €16 billion. Overnight reports speculated that the budget deficit would rise between 2.2% and 2.8% of GDP, indicating that Italy is hoping to push through as much stimulus as it can get away with under the EU’s framework.

Separately, and further fueling the rally, Treasury Secretary Mnuchin said after meeting House Speaker Pelosi, that there is Bipartisan urgency to pass a relief package, adding that there are some things Treasury can do on its own to provide relief which are being explored.

Finally, wires reported that Senator Shelby said options were being mulled to buffer US oil producers could include longer-term loans.

As noted above, this barrage of favorable stimulus news and speculation has helped stock ramp almost back to session highs, with the Dow trading over 600 points higher at last check.

 

end

 

ii)Market data/USA

iii) Important USA Economic Stories

Scientists warn about the dangerous tipping d\point where the Covid 19 is moving from mild to deadly

(zerohedge)

Scientists Warn About Dangerous “Tipping Point” Where Covid-19 Goes From Mild To Deadly

As researchers, doctors and epidemiologists spend more time studying the coronavirus under a microscope, as well as in the 100k+ infections that have yielded reams of useful data, a troubling trend has emerged: researchers have identified a “tipping point” at which the virus goes from dangerous to deadly in extremely susceptible patients.

According to research, while many patients experience nothing more than a mild cold, one in seven patients develops difficulty breathing and other “severe” complications, while 6% become critically ill and require hospitalization to stabilize their condition, risking death if they can’t receive the highest level of care.

Patients in these life-threatening situations typically suffer from respiratory and other vital system failures, according to the report by a team of WHO researchers delivered last month. Sometimes, sufferers can even experience sceptic shock.

Since roughly 10-15% of mild-to-moderate patients progress to this next severe state, it’s important for hospitals and doctors to understand which patients are at highest risk of a worsening infection so they can factor this into their risk assessments and direct resources and attention accordingly. Because of these 10-15%, 15% to 20% of that group may progress to critically severe infection stage requiring the highest level of attention and care to save a life.

Patients at highest risk include people at age 60 and older and those with pre-existing conditions such as hypertension, diabetes and cardiovascular disease.

This type of triage should at least be familiar to most doctors since it resembles the infection profile of the seasonal flu, albiet with more patients progressing to the final most critical stage, said Jeffery K. Taubenberger.

When everything goes well, white blood cells attack the virus and lock the infection down within a few days.

Infection generally starts in the nose. Once inside the body, the coronavirus invades the epithelial cells that line and protect the respiratory tract,said Taubenberger, who heads the viral pathogenesis and evolution section of the National Institute of Allergy and Infectious Diseases in Bethesda, Maryland. If it’s contained in the upper airway, it usually results in a less severe disease.

But if the virus treks down the windpipe to the peripheral branches of the respiratory tree and lung tissue, it can trigger a more severe phase of the disease. That’s due to the pneumonia-causing damage inflicted directly by the virus plus secondary damage caused by the body’s immune response to the infection.

“Your body is immediately trying to repair the damage in the lung as soon as it’s happening,” Taubenberger said. Various white blood cells that consume pathogens and help heal damaged tissue act as first-responders. “Normally, if this goes well, you can clear up your infection in just a few days.”

But if this doesn’t happen, if the virus persists, and continues to attack the tissue of the nose and throat, at some point, it will become more difficult for the body to fight off a secondary bacterial infection. Such secondary bacterial infections are particularly dangerous because they can damage the stem cells in the lungs, basically making it impossible for a patient’s lungs to heal.

Secondary bacterial infections represent an especially pernicious threat because they can kill critical respiratory tract stem cells that enable tissue to rejuvenate. Without them, “you just can’t physically repair your lungs,” Taubenberger said. Damaged lungs can starve vital organs of oxygen, impairing the kidneys, liver, brain and heart.

“When you get a bad, overwhelming infection, everything starts to fall apart in a cascade,” said David Morens, senior scientific adviser to the director of the National Institute of Allergy and Infectious Diseases. “You pass the tipping point where everything is going downhill and, at some point, you can’t get it back.”

That tipping point probably also occurs earlier in older people, as it does in experiments with older mice, said Stanley Perlman, a professor of microbiology and immunology at the University of Iowa in Iowa City, who has studied coronaviruses for 38 years.

But this isn’t the only way things can go wrong. Even healthy younger adults have succumbed to the virus, including Dr. Li Wenliang, the 34-year-old ophthalmologist who was one of the first to warn about the coronavirus in Wuhan. He died after receiving antibodies, antivirals, antibiotics, oxygen and having his blood pumped through an artificial lung. Scientists have theorized that some people have more of the distinctly shaped protein receptors in their respiratory epithelial cells that the virus targets.

end
DANGEROUS!! coronavirus infested cruise ship docks in Oakland after being turned away from Sn Francisco
(zerohedge)

Coronavirus-Infested Cruise Ship Docks In Oakland After Being Turned Away From San Francisco

After being turned away from a port call in San Francisco on Thursday, the ‘Grand Princess’ cruise ship has docked at the Port of Oakland early Monday afternoon.

Already, at least 21 passengers and crew (mostly crew) have tested positive for the virus. Passengers and crew from 54 countries are on the ship, according to the cruise line. Many others have reported feeling ill via social media, where many passengers have been posting.

Though most passengers won’t exit for at least a day or two as the cruise line and local health officials process passengers and scan them for signs of the virus, at least they will no longer be drifting listlessly at sea. Many passengers were already beginning to get a little antsy over the weekend.

gadgetgirl6@gadgetgirl6

We are being involuntarily held on Grand Princess currently cruising just outside San Francisco. We are confined to our cabins and given limited options for meals. Apart from the original 45 people tested Thurs (2 days ago), no one we know of has been tested. What is happening???

ess’ cruise ship was quarantined in Japan for two weeks, creating a diplomatic hot potato between Japan and the many countries, including the US, who pushed to evacuate their citizens from the ship.

Notably, scientists who submitted a sample of the virus found on the ship discovered similarities with the strain isolated in Washington State, which seems to support the company’s claim that the former passenger who succumbed to the virus in Cali – becoming the state’s first confirmed coronavirus death – might have caught the virus before boarding the cruise.

Charles Chiu@cychiu98

Hi all, we submitted the genome sequence from the viral strain linked to the cruise ship off coast of San Francisco to . Phylogenetic analysis shows that it clusters with the outbreak clade circulating in Washington State. @UCSF

Footage of the ship passing under the Golden Gate Bridge has gone viral already, courtesy of ABC News.

ABC News

@ABC

The Grand Princess cruise ship passes under the Golden Gate Bridge as it prepares to dock in Oakland amid coronavirus outbreak. https://abcn.ws/2TDwymx

Embedded video

President Trump infamously said he would rather have kept the ship out at sea for fear of his ‘numbers’ (the number of confirmed coronavirus cases) doubling.

 end
Now New Jersey and New York see their cases of coronavirus triple. New Jersey Governor declares a state of emergency
(zerohedge)

New Jersey Declares State Of Emergency As Coronavirus Cases Triple In Greater New York

NYC-based bankers better have a bugout base in Antarctica, because all the suburban bedroom communities preferred by wealthy financiers have already been infected with the coronavirus: Westchester, New Jersey, Fairfield County and Long Island (though thankfully not the Hamptons) have all reported cases of the virus (even scarier: a handful of infections have no clear connection to another case, potentially offering a glimpse into what might be a much wider ‘community outbreak’).

At around 11 pm on Monday, as thousands of financial professionals were probably passed out, exhausted after the most brutal trading day since the financial crisis, New Jersey Gov. and former Goldmanite Phil Murphy declared a state of emergency or some kind of public health emergency in New Jersey, joining Washington, Missouri, Florida, Maryland, New York and others (in Missouri, St. Louis has activated ’emergency operations).

Governor Phil Murphy

@GovMurphy

BREAKING: I’m declaring a State of Emergency for New Jersey amid an outbreak of .

We’ve been ahead of the curve in terms of our preparations, and this declaration will help keep us there.⁰⁰For more information, visit http://nj.gov/healthhttps://nj.gov/governor/news/news/562020/approved/20200309b.shtml 

Embedded video

As President Trump and VP Pence dangle tax cuts and more fiscal stimulus in front of the market and the real economy, state governors and their top public health officials will ultimately be responsible for most of the ‘containment’ activities in their states.

Murphy’s declaration follows an emergency order by Gov. Andrew Cuomo a couple of days ago. Murphy said he based his decision “on the facts on the ground.”

“We are acting based on the facts on the ground and by the latest medical science,” Murphy said in a video statement on his Twitter account.

“We have been ahead of the curve in terms of our whole-of-government preparations and this declaration will help keep is there,” he added.

Since Friday, confirmed cases of the coronavirus in the Tri-State Area have tripled, from 49 to 156. As of Monday afternoon, New York has the most cases of any state in the country, though it hasn’t yet recorded any deaths. These cases include dozens in Westchester County, which has become one of the nation’s biggest hotspots that’s not on a cruise ship.

Among the new cases in NYC is a 7-year-old, an FDNY EMS and, of course, Port Authority executive director Rick Cotton. Department of Health Officials said that some who were in contact with Cotton should adhere to a 14-day quarantine policy, with March 6 being the earliest possibly date of concern for transmission.

As of Tuesday morning, at least 729 people in 36 states and Washington DC have tested positive for coronavirus, according to a new database from the New York Times that is committed to tracking every single confirmed case in the US in detail.

Last night, San Francisco Mayor London Breed confirmed another 5 cases, bringing the country’s total to 13. All five patients know each other and are all quarantining at home, according to local media reports.

end
Wow@#$//funding is getting worse  as dealers demand 216 billion dollars in repo liquidity.  The Fed expanded term and overnight levels yesterday
(zerohedge)

Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo

Yesterday, when showing the sudden spike in the FRA/OIS spread – a key gauge of banking-sector risk which measures dollar shortages – we warned that liquidity in the market is virtually nil quoting a host of traders who confirmed that it was next to impossible to trade without disruptions, while more ominously, the interbank plumbing appeared to be getting clogged up again.

Moments ago we got confirmation when the Fed reported that one day after it expanded its repo operations, there was a record demand for Fed liquidity in both the term and repo operations.

With the term repo expanded from $20BN to $45BN and the overnight repo ceiling also raised from $100 to $150BN, moments ago the Fed announced that it had received the most liquidity demand on record, as Dealers indicated some $93BN in term repo submissions (which thanks to the expanded facility size meant that the oversubscription dropped from a record 3.6x to 2.1x)…

… alongside a fully allotted $123.625BN in overnight repo (out of $150BN eligible)…

… for a total of $216BN in indicated liquidity. Of this, $168BN in liquidity was released between the overnight and fully-alloted $45BN term repo facility.

As we pointed out last week, this continuing liquidity crunch is not only bizarre, but increasingly concerning, 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 funds hits 0% in a few days and is forced to restart bond buying to prevent the next crash.

Will that be enough to stabilize the market? We don’t know, but in light of the imminent corona-recession, on Tuesday Credit Suisse’s Zoltan Pozsar repo guru published a lengthy piece 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

Today was a plunge protection team operation and the reason gold was bombed

(zerohedge)

iv) Swamp commentaries)

The Other Biden Problem: Joe’s Brother Now Facing Allegations Of Influence Peddling

 

If reports are accurate, influence peddling may be something of a family cottage industry. While Congress continues to look at the Hunter Biden contract and his effort to sell his name to foreign companies, the brother of Joe Biden is facing the same allegations in an expanding controversy over his selling of his connection to the former vice president. James Biden was anything but subtle in his pitching his connections to his brother.

While it has received little attention in the media, James Biden has leveraged his connection with his brother for years in open pitches for contracts with major business like Americore (which is now in bankruptcy and the subject of a FBI investigation that is not contacted to Biden). Biden arranged for Americore founder Grant White to meet his brother.

Former Americore executive Tom Pritchard and others allege that Biden promised a large investment from Middle Eastern backers while he openly referenced his access to his brother and his family name. Biden is facing a wide array of litigation over allegedly fraudulent activities as well as a personal loan acquired through Americore before it went into bankruptcy.

The effort of Hunter and James Biden to peddle access and influence with Joe Biden could become an even greater issue in the 2020 election. Joe Biden has bizarrely continued to claim that “no one has suggested that my son did anything wrong.”He seems to be drawing a distinction between what is criminal and what is not — as if the criminal code is the only measure of wrongdoing or unethical conduct. Now a pattern exists of not just his son cashing in on his influence but his brother. That is wrong regardless of whether it is criminal. The expanding litigation surrounding James Biden could force a broader debate about that distinction.

For decades, I have written against this form of corruption as family members receive windfall contracts as a way of circumventing bribery laws. This remains the preferred avenue of the Washington ruling class to cash in on their positions. When confronted, they then (as did Biden) object that critics are attacking their family or their children. For that reason, little has been done to crackdown on such deals. For some in the media, there is a tendency to look the other way when they support the candidate or oppose the other party. The fact is that it is all corruption and influence peddling and it is all perfectly legal . . . and perfectly wrong.\

end

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

BBG: Economic Team Preparing Proposals to Expand Paid Sick Leave, Defer Tax Payments amid Coronavirus Outbreak, Senor Official Says

@realDonaldTrump: Good for the consumer, gasoline prices coming down!  Saudi Arabia and Russia are arguing over the price and flow of oil. That, and the Fake News, is the reason for the market drop!… So last year 37,000 Americans died from the common Flu. It averages between 27,000 and 70,000 per year. Nothing is shut down, life & the economy go on. At this moment there are 546 confirmed cases of CoronaVirus, with 22 deaths. Think about that!

The US 30-year March future contract peaked at 191.22 (3:30 ET), which was +12.00 for the day!!!  WTI oil bottomed at 27.34 (0:28 ET), -$14.15 (-34.9%) from the close on Friday.

I don’t think the heavy stuff is coming down for a while.” – Bill Murray in “Caddyshack

The NY Fed: Beginning with today’s operation and through March 12, 2020, the Desk will increase the amount offered in daily overnight repo operations from at least $100 billion to at least $150 billion. In addition, the Desk will increase the amount offered in the two-week term repo operations on Tuesday, March 10, 2020 and Thursday, March 12, 2020 from at least $20 billion to at least $45 billion

https://www.newyorkfed.org/markets/opolicy/operating_policy_200309

Ex-ECB Official @VMRConstancio: Structural change in energy economics with Russia/Saudi Arabia aiming at US shale oil and expansion of renewables. Deep temporary economic shock from the coronavirus. Markets mistrust of central banks’ firepower and fiscal authorities. Both anchors needed. This not like 2008 because it’s an economic shock that didn’t start in the financial sector. Money markets not frozen, no concerns with banks’ solvency.  Look through to the spread between interbank unsecured rates and the OIS rates as sign of mistrust within the financial system

@epomboy: Deutsche Bank down 38% in last 3 weeks, nearing record low again

@LawrenceLepard: From Crescat: “The ECB, BOJ, RBA, BOC and the Fed have just added a combined $675 billion to their balance sheets in the last 15 days! In one month, PBOC added $380B…”

US economy is dangerously dependent on Wall Street whims [asset inflation]

The Federal Reserve faces pressure to keep cutting rates to keep asset prices high

https://www.ft.com/content/ef3539ec-5f96-11ea-b0ab-339c2307bcd4

Robeco’s @jsblokland: Eurozone stocks enter bear market. Stoxx 50 Index future down 21% from its high just a couple of week ago.

Russia can weather oil prices of $25-30 for 6-10 years: [Finance] ministry [We must throw the bs flag]

The ministry said it could tap into the country’s National Wealth Fund to ensure macroeconomic stability if low oil prices linger. As of March 1, the fund held more than $150 billion or 9.2% of Russia’s growth domestic product, the ministry said…

https://business.financialpost.com/pmn/business-pmn/russia-can-weather-oil-prices-of-25-30-for-6-10-years-ministry

Between Covid-19 and plunging oil prices, Iran is in really big trouble.

Germany Boosts Investment to Protect Economy from Virus Hit

  • Merkel’s coalition to invest 12.4 billion euros until 2024
  • Aid for furloughed workers to be expanded until end of 2020

https://www.bloomberg.com/news/articles/2020-03-09/germany-boosts-investments-to-bolster-economy-amid-virus-fallout

@CNBCnow: White House invites top Wall Street executives to meeting to discuss the impact of coronavirus. (via @eamonjavers) https://t.co/5CX9fXqGLg

@MNINews: Central banks are in talks to facilitate access to liquidity by companies suffering supply chain interruptions, with joint action expected by BoE and UK Treasury on Weds likely to be only one of a raft of initiatives around the world to address the economic impact of coronavirus

https://twitter.com/MNINews/status/1237068694456590339?s=03

Senate Finance Committee chairman exploring ‘targeted tax relief’ as coronavirus response

https://www.marketwatch.com/story/senate-finance-chairman-exploring-targeted-tax-relief-as-coronavirus-response-spokesman-2020-03-09

The above stories, which appeared in the early afternoon, had no impact on equities.  The usual last-hour upward manipulation appeared.  However, ESHs and stocks got slammed during the final 11 minutes.  The S&P 500 Index closed only 12 handles of its low, made at 14:44 ET.

@sentimentrader: For one of the few times in market history, more than 50% of securities on the NYSE fell to a 52-week low while few hit a 52-week high.  In the past four decades, only 1987 and 2008 have exceeded this. https://t.co/F4FZMZzd2H

We said it a few years ago and we will repeat it: Trump’s biggest mistakes were tying himself to the stock market and hiring Dems, RINOs and Never Trumpers early in his term.  They undermined him constantly.

@paulsperry_: BREAKTHROUGH: Chloroquine phosphate — an old anti-malaria drug — has shown apparent efficacy in treatment of COVID-19 associated pneumonia in clinical studies. Chloroquine provides both anti-viral and anti-inflammatory benefits to patients

@SaraCarterDC: A group of Texas scientists claims to have created a vaccine to prevent the coronavirus and it could be approved and available to the public by the end of the year.  https://t.co/1XUsoDdRpS

After the close, Congressmen Collins and Gaetz had contact with Trump before they self-quarantined over coronavirus concerns

https://www.cnbc.com/2020/03/09/collins-gaetz-had-contact-with-trump-before-coronavirus-self-quarantine.html

Gov. Pritzker issued a state disaster declaration as Illinois recorded four new cases of Covid-19.

@dwnews: Italy’s coronavirus restrictions have now expanded to include the whole country.

@JohnRuddick2: Hillary pontificates about how well she dealt with SARS as Secretary of State.

Fact 1. SARS was 2002-2003.  Fact 2. She was Secretary of State from 2009-2013.  Hillary: “The SARS epidemic, which happened in the very beginning of the Obama Administration because I was Secretary of State at the time.”  https://twitter.com/JohnRuddick2/status/1236944247263133696

Bloomberg aides fired despite year-long employment promise [Sometimes, you just know.]

https://www.politico.com/news/2020/03/09/bloomberg-aides-fired-year-124741

James Biden’s health care ventures face a growing legal morass – A mysterious FBI raid. New allegations from former executives. Questions are swirling about the business dealings of Joe Biden’s brother…   https://www.politico.com/amp/news/2020/03/09/james-biden-health-care-ventures-123159

END

That is all for today

I will see you tomorrow night

h

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