MARCH 11 DOW DOWN 1400 PLUS POINTS//GOLD DOWN $14.95//SILVER DOWN 16 CENTS//CORONAVIRUS IS TAKING ITS TOLL ON THE GLOBE//

 

 

 

GOLD: $1645.60  DOWN $14.95

 

 

Silver: $16.80//DOWN 16 CENTS

 

 

 

 

Closing access prices:

 

 

 

 

 

 

 

Gold : $1636.00

 

SILVER:  $16.65

 

COMEX DATA

 

 

 

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

today RECEIVING: 1/3

EXCHANGE: COMEX
CONTRACT: MARCH 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,659.100000000 USD
INTENT DATE: 03/10/2020 DELIVERY DATE: 03/12/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 1
737 C ADVANTAGE 3
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 3 3
MONTH TO DATE: 1,502

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 3 NOTICE(S) FOR 300 OZ (0.0093 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1502 NOTICES FOR 150200 OZ  (4.6718TONNES)

 

 

 

 

SILVER

 

FOR MARCH

 

 

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

total number of notices filed so far this month: 3559 for 17,795,000 oz

 

BITCOIN MORNING QUOTE  7898 up 3 dollars

 

BITCOIN AFTERNOON QUOTE.:$79233 DOWN 6.00

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A HUGE SIZED 2674 CONTRACTS FROM 189,734 DOWN TO 187,060 AND FURTHER FROM OUR NEW RECORD OF 744,710, (FEB 25/2020.  THE LOSS IN OI OCCURRED WITH OUR 10 CENT LOSS IN SILVER PRICING AT THE COMEX. WE HAD NO LONG LIQUIDATION.  AS LL 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 HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

; MARCH:  00 AND MAY: 4086 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  4086 CONTRACTS. WITH THE TRANSFER OF 4086 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 4086 EFP CONTRACTS TRANSLATES INTO 20.43 MILLION OZ  ACCOMPANYING:

1.THE 10 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

 

TUESDAY, 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 10 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. AS WE DID HAVE A NET GAIN OF 1412 CONTRACTS OR 7.060 MILLION OZ ON THE TWO EXCHANGES! (DESPITE THE LOSS IN PRICE)

 

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

17,640 CONTRACTS (FOR 8 TRADING DAYS TOTAL 17,640 CONTRACTS) OR 88.20 MILLION OZ: (AVERAGE PER DAY: 2205 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: 88.20 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 12.6% 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:          529.41 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…..          88.20 MILLION OZ

 

 

RESULT: WE HAD AN STRONG SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2674, WITH THE  10 CENT LOSS IN SILVER PRICING AT THE COMEX /TUESDAY… THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 4086 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A CONSIDERABLE SIZED :  1412 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (WITH THE 10 CENT FALL IN PRICE)//

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 4086 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 2674 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A  10 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $16.66 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY!! 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.938 BILLION OZ TO BE EXACT or 134% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 3 NOTICE(S) FOR  5,000 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: 20.735 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 A CONSIDERABLE SIZED 12,931 CONTRACTS TO 633,470 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 STRONG LOSS IN PRICE OF $14.25 /// COMEX GOLD TRADING// TUESDAY// 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 2004 CONTRACTS  (6.23 TONNES)

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS AND CRIMINALLY SIZED 14,935 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 14,935 JUNE. 1612 AND ALL OTHER MONTHS ZERO//TOTAL: 14,935.  The NEW COMEX OI for the gold complex rests at 633,470. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2004 CONTRACTS: 12,931 CONTRACTS DECREASED AT THE COMEX  AND 14,935 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2004 CONTRACTS OR 9.233 TONNES. TUESDAY, WE HAD A STRONG LOSS OF $14.25 IN GOLD TRADING.…..

AND WITH THAT STRONG LOSS IN  PRICE, SURPRISINGLY WE STILL HAD A GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 6.233  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (LOSS $14.25). 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  (14,935) ACCOMPANYING THE STRONG LOSS IN COMEX OI.(12,931 OI):  TOTAL GAIN IN THE TWO EXCHANGES:  2,004 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 : 118,230 CONTRACTS OR 11,823,000 oz OR 367.74 TONNES (8 TRADING DAYS AND THUS AVERAGING: 14,778 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 8 TRADING DAY(S) IN  TONNES: 367.74 TONNES

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

THUS EFP TRANSFERS REPRESENTS 367.74/3550 x 100% TONNES =10.35% OF GLOBAL ANNUAL PRODUCTION

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

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   1591.71  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE SO FAR   367.74  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

 

 

14,935 CONTRACTS MOVE TO LONDON AND  12,931 CONTRACTS DECREASED AT THE COMEX. (IN TONNES,  TOTAL OI IN TWO EXCHANGES EQUATES TO 6.233 TONNES). AND THIS INCREASE OF DEMAND OCCURRED WITH THE STRONG LOSS IN PRICE OF $14.25 WITH RESPECT TO TUESDAY’S TRADING/// AT THE COMEX.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

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 2674 CONTRACTS FROM 189,734 DOWN TO 187,060 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 4086

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: 4086; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 4086 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 2674 CONTRACTS TO THE 4086 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 1412 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  7.06 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: 20.935 MILLION OZ

 

 

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 10 CENT FALL IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A HUGE SIZED 4086 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON. THE ENTIRE LOSS OF COMEX OI WAS DUE TO SPREADER LIQUIDATION AND THAT HUGE ISSUANCE OF EX. FOR PHYSICALS.

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

<

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 28.24 POINTS OR 0.94%  //Hang Sang CLOSED DOWN 179.18 POINTS OR 0.71%   /The Nikkei closed DOWN 451.06 POINTS OR 2.77%//Australia’s all ordinaires CLOSED DOWN 3.44%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9466 /Oil UP TO 34.16 dollars per barrel for WTI and 37.04 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9525 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9466 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/CORONAVIRUS  : /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 CONSIDERABLE SIZED 12,931 CONTRACTS TO 633,470 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 WITH A STRONG LOSS OF $14.25 IN GOLD PRICING //TUESDAY’S  COMEX TRADING//). HOWEVER WE ALSO HAD AN ATMOSPHERIC EFP ISSUANCE (14,935 CONTRACTS),.  THUS WE HAD HUGE BANKER SHORT COVERING AT THE COMEX AND ZERO LONG LIQUIDATION ……AS OUR TWO EXCHANGES ROSE IN TOTAL OPEN INTEREST..DESPITE THE LOSS PRICE IN PRICE.  BASICALLY LONGS JUST TRANSFERRED OVER TO LONDON COUPLED WITH CONSIDERABLE BANKER SHORT COVERING AND A 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 14,935 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 14,935,  JUNE : 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 14,935 CONTRACTS.

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

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  2004 TOTAL CONTRACTS IN THAT 14,935 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON BUT WE LOST A CONSIDERABLE SIZED 12,931 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 FELL BY $14.25). THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES 6.233 TONNES WAS MAINLY DUE TO BANKER SHORT COVERING AND EXCHANGE FOR PHYSICAL ISSUANCE. 

 

 

NET GAIN ON THE TWO EXCHANGES ::  2004 CONTRACTS OR 200400 OZ OR  6.233 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:  633,470 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 63.34 MILLION OZ/32,150 OZ PER TONNE =  1970 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1970/2200 OR 89.55% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results

Total COMEX silver OI FELL BY A STRONG SIZED 2674 CONTRACTS FROM 189,652 DOWN TO 187,060 (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 10 CENT DECREASE IN PRICING/TUESDAY.  THE LOSS IN OI WAS DUE TO A HUGE ISSUANCE OF EXCHANGE FOR PHYSICALS COUPLED WITH HUGE BANKER SHORT COVERING .

 

 

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 563 CONTRACTS  WITH A LOSS OF 76 CONTRACTS. WE HAD 103 CONTRACTS ISSUED YESTERDAY SO WE GAINED 27 CONTRACT OR 135,000 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 LOSS OF 63 CONTRACTS DOWN TO 595 CONTRACTS. THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 2930 DOWN TO 126,603

 

 

We, today, had  3 notice(s)  for 5,,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 11

 

 

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
3 notice(s)
 300 OZ
(0.00933 TONNES)
No of oz to be served (notices)
98 contracts
(9800 oz)
0.3048 TONNES
Total monthly oz gold served (contracts) so far this month
1502 notices
150200 OZ
4.6718 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 104 contracts for a GAIN of 3 contracts.. Surprisingly we had 19 notices filed on TUESDAY so we gained 22 contracts or an additional 2200 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 27,621 contracts DOWN to 362,081 contracts

May saw its ANOTHER gain of 409 contracts to stand at 554.

June saw a GAIN of 11,914 contracts up to 163,242

 

 

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 3 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 1 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 (1502) x 100 oz , to which we add the difference between the open interest for the front month of  MAR. (563 CONTRACTS ) minus the number of notices served upon today (3 x 100 oz per contract) equals 160,000 OZ OR 4.977 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 (1502x 100 oz)  + (563 OI for the front month minus the number of notices served upon today (3 x 100 oz )which equals 160,000 oz standing OR 4.977 TONNES in this active delivery month which is  a great amount for gold standing for a MAR. delivery month.

We gained 22 contracts or 2200 oz will stand for delivery at the comex.

 

 

 

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………………………………………………………..              4.977 TONNES

 

total: 160.8874 tonnes

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 8 MONTHS OF SETTLEMENTS WE HAVE 25,645 TONNES SETTLED

 

 

IF WE ADD THE 8 DELIVERY MONTHS: 160.8874  tonnes

 

Thus:

160.8874 tonnes of delivery –

25.645 TONNES DEEMED SETTLEMENT

 

=135.243 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 11/2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 301,895.740 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,134,863.019 oz
CNT
Delaware
Scotia
No of oz served today (contracts)
3
CONTRACT(S)
(15,000 OZ)
No of oz to be served (notices)
560 contracts
 2,800,000 oz)
Total monthly oz silver served (contracts)  3559 contracts

17,795,000 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 3 contract(s) FOR 5,000 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 3559 x 5,000 oz = 17,795,000 oz to which we add the difference between the open interest for the front month of MAR. 563) and the number of notices served upon today 3x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 3559 (notices served so far) x 5000 oz + OI for front month of MAR (563)- number of notices served upon today (3) x 5000 oz equals 20,765,000 oz of silver standing for the MAR contract month.

WE GAINED 27 CONTRACT OR 135,000 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 RISES TO -3.40% ((MARCH 11/2020)

2. Sprott gold fund (PHYS): premium to NAV FALLS TO -6.47% to NAV MAR 9/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 3.40%

(courtesy Sprott/GATA

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

NAV 15.62 TRADING 15.00///DISCOUNT 3.97

 

END

 

 

And now the Gold inventory at the GLD/

 

MAR 11/WITH GOLD DOWN $14.95?/A HUGE WITHDRAWAL OF 10.53 TONNES//INVENTORY RESTS AT 953.26 TONNES

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 11/2020/Inventory rests tonight at 953/26 tonnes

*IN LAST 776 TRADING DAYS: +15.82 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 676 TRADING DAYS: A NET 181.95. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 11/SILVER DOWN 16 CENTS:  A SMALL WITHDRAWAL OF .467 MILLION OZ AT THE SLV/INVENTORY RESTS AT 360.947 MILLION OZ//

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 11//2020:  SLV INVENTORY

360.947 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 0.67/ and libor 6 month duration 0.77

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

G0LD LENDING RATE: – .10

 

XXXXXXXX

12 Month MM GOFO
+ .65%

LIBOR FOR 12 MONTH DURATION: 0.79

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.14

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

(GATA) BIS gold market intervention increased again in February

Submitted by cpowell on 01:24PM ET Tuesday, March 10, 2020. Section: Daily Dispatches

By Robert Lambourne

Tuesday, March 10, 2020

According to its recently published February statement of account, the Bank for International Settlements, which represents most central banks, appears to have increased its position in gold swaps and gold-related derivatives by 6 tonnes over its position at the end of January, bringing it to an estimated 326 tonnes.

The bank’s use of gold swaps and derivatives has risen by more than 300 percent since May 2019, when it stood at 78 tonnes.

http://www.USAGold.com

The BIS uses gold swaps and other gold derivatives to gain access to gold held by commercial banks.

There is not enough information in the BIS’ monthly reports to calculate the exact amount of swaps, but based on the information in its statement for February, the bank’s month-end gold swaps were about 326 tonnes, compared to 320 tonnes at January 31, 2020, 313 tonnes at December 31, 2019, 250 tonnes at November 30, 2019, 186 tonnes at October 31, 2019, 128 tonnes at September 30, 2019, 162 tonnes at August 31, 2019, 95 tonnes at July 31, 2019, 126 tonnes at June 30, 2019, 78 tonnes at May 31, 2019, 88 tonnes at April 30, 2019, 175 tonnes at March 31, 2019, 303 tonnes at February 28, 2019, 247 tonnes at January 31, 2019, 275 tonnes at December 31, 2018, and, previously in 2018, 308 tonnes in November, 372 tonnes in October, 238 tonnes in September, and 370 tonnes in August.

More background on the bank’s medium-term history of using gold swaps is available here:

http://www.gata.org/node/18825

On February 3, 2019, GATA published comments from a former gold industry executive describing the activities of the BIS in gold swaps in earlier decades:

http://www.gata.org/node/18828

The former executive wrote: “Effectively this process created a supply of ‘paper gold’ — sometimes but not always marked to market — that had a depressing effect on the gold price.”

The BIS refuses to explain its activity in the gold market — its objectives and underlying parties in interest —

http://www.gata.org/node/17793

— and financial news organizations don’t ask about it or call attention to it, though it seems to signify an intense interest in what some market analysts disparage as a “pet rock.”.

—–

Robert Lambourne, a retired business executive in the United Kingdom, is a GATA consultant.

***

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.94466/ 

 

//OFFSHORE YUAN:  6.9526   /shanghai bourse CLOSED DOWN 28.24 POINTS OR 0.94%

HANG SANG CLOSED DOWN 179.18 POINTS OR 0.71%

 

2. Nikkei closed DOWN 451.06 POINTS OR 2.27%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 96.21/Euro UP TO 1.1315

3b Japan 10 year bond yield: FALLS TO. –.07/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.05/ 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:: 34.16 and Brent: 37.04

3f Gold UP/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 -.77%/Italian 10 yr bond yield DOWN to 1.24% /SPAIN 10 YR BOND YIELD DOWN TO 0.35%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.28

3k Gold at $1661.00 silver at: 17.03   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 4/100 in roubles/dollar) 71.44

3m oil into the 34 dollar handle for WTI and 37 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 105.05 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 .9350 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0591 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 0.77%

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 0.70% early this morning. Thirty year rate at 1.77%

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

6.  TURKISH LIRA:  UP  TO  6.1396..

 

Market Rollercoaster Returns: Futures Crash As Stimulus Hope Fade

First the good news: after S&P futures crashed limit down on Monday, then rebounded limit up on Tuesday, on Wednesday the market volatility has been more contained and futures have so far failed to drop or surge by the 5% limit. Now the bad news: after yesterday’s tremendous surge after Trump promised late on Monday that he would unveil a “major” stimulus package on Tuesday, only to be a no-show yesterday and failing to outline any tangible steps, the futures rollercoaster is back, with the Emini down sharply overnight, sliding by over 2.6% and cutting yesterday’s gains in half.

“Despite the hopes for fiscal stimulus everywhere, we see significant downside risks,” said Guillaume Tresca, a strategist at Credit Agricole SA in Paris. “As long as uncertainties remain on the number of cases, and central banks’ actions and fiscal stimulus plans are not lifted, we see few reasons for a protracted and long-term rebound.”

As Reuters puts it, the latest plunge was due to “investors growing frustrated about the lack of details on fiscal stimulus floated by President Donald Trump to combat the coronavirus epidemic.” Investors also realized that any plan the White House introduces will need to be approved by both houses of the U.S. Congress, a proposition that may be challenging as flashbacks of the (first) failure of the TARP bailout, which unleashed a historic crash in 2008, floated through their heads.

Futures also shrugged off a surprise move by the Bank of England to cut interest rates by 50bps and support bank lending, which had lifted sentiment in Europe and Asia overnight, as central bank credibility rapidly fades. At 7:31 a.m. ET, Dow e-minis were down 570 points, or 2.4%. S&P 500 e-minis were down 66 points, or 2.5% and Nasdaq 100 e-minis were down 184 points, or 2.2%.

On Monday, the three main indexes came within a hair’s breadth of confirming bear market territory, implying a drop of 20% from record highs, following a collapse in oil prices. The S&P 500 is now about 15% below its all-time high hit just three weeks earlier.

In Europe, the Stoxx 600 gained as the European Central Bank indicated it may act as soon as this week and the Bank of England BoE which — on the day that Britain’s budget is set to open the taps on spending — announced an emergency 50bps rate cut and revealed measures to support bank lending, lifting shares after a lacklustre session in Asia. The BoE did not announce new quantitative easing measures but it did launch a new scheme to support lending to small businesses.

But the Stoxx 600 trimmed much of its gains as travel and leisure shares dropped and Adidas SA slumped after warning the coronavirus would cut profit. Earlier in the session, most Asian benchmarks fell amid growing disappointment with the lack of stimulus, while the yen rallied.

The BOE’s emergency move came a week after the Federal Reserve slashed its main rate, and as ECB President Christine Lagarde warned of an economic shock similar to the financial crisis unless leaders act urgently – comments which suggest the bank may join the wave of crisis easing when it sets policy on Thursday. The U.K. is expected to unveil an expansionary budget later Wednesday, and Germany and Italy have also announced fiscal support.

“It is the only thing central banks can do in a public health crisis,” said Neil Dwane, global strategist and portfolio manager at Allianz Global Investors. “They are trying to take the shackles off the banks to ensure we don’t get a cash crunch.”

But after a decade of extraordinary monetary policy, investors say the impact of easier policy has clear limits and increased government spending must bear the brunt of the policy response to the economic consequences of the outbreak.

“For the ECB their problem is that there is even more pressure because they face the third-largest euro zone economy — Italy — in dire straits,” Dwane said. As of Tuesday’s close, $8.1 trillion in value has been erased from global stock markets in the recent rout. The MSCI all-country index has lost more than 15% of its value since it peaked on Feb. 12, and was 0.13% lower on Wednesday.

In FX, sterling initially fell sharply following the BoE decision before rebounding. It was last up 0.4% at $1.2925 but down 0.3% versus the euro at 87.66 pence. The dollar resumed its decline against the yen, the Swiss franc and the euro, weighed down by uncertainty about the U.S government’s response and the drop in U.S. Treasury yields. The greenback remained significantly above levels seen on Monday, however.

In rates, U.S. 10-year Treasury yields fell 5 basis points to 0.7035%, more than double Monday’s record low yield of 0.3180%. Market participants largely expect the Fed to cut rates for the second time this month at next week’s scheduled policy meeting, after it surprised investors with a 50-basis-point cut last week.  German government bond yields rose after the BoE cut supported sentiment, while Italian yields — which had shot up on worries the country with Europe’s worst outbreak of the virus is sliding into a recession — tumbled 20 basis points as bets on ECB stimulus grow.

In commodities, WTI slid 2.5% to $33.49 per barrel, while Brent crude dropped 2.31% to $36.36 after Saudi Aramco announced plans to raise its production capacity at the same time as the coronavirus was set to weaken demand. On Monday, oil prices plunged as Saudi Arabia and Russia clashed openly over management of supply. Spot gold rose 1% to $1,665 per ounce as investors sought safety in the precious metal.

To the day ahead now, where data releases include January industrial production and trade data for the UK, as well as the February CPI report and monthly budget statement in the US. The aforementioned UK budget will be a focus while the OPEC monthly oil market report will be released.

Market Snapshot

  • S&P 500 futures down 1.7% to 2,816.50
  • STOXX Europe 600 up 1.5% to 340.70
  • MXAP down 1.6% to 148.53
  • MXAPJ down 1.1% to 488.53
  • Nikkei down 2.3% to 19,416.06
  • Topix down 1.5% to 1,385.12
  • Hang Seng Index down 0.6% to 25,231.61
  • Shanghai Composite down 0.9% to 2,968.52
  • Sensex up 0.5% to 35,811.98
  • Australia S&P/ASX 200 down 3.6% to 5,725.87
  • Kospi down 2.8% to 1,908.27
  • German 10Y yield rose 3.5 bps to -0.755%
  • Euro up 0.4% to $1.1327
  • Italian 10Y yield fell 9.5 bps to 1.158%
  • Spanish 10Y yield fell 0.3 bps to 0.341%
  • Brent futures down 2.1% to $36.43/bbl
  • Gold spot up 0.6% to $1,658.94
  • U.S. Dollar Index down 0.2% to 96.23

Top Overnight News

  • The global death toll from the coronavirus climbed above 4,000, and the director of the Centers for Disease Control and Prevention said some parts of the U.S. are now beyond containment efforts. Italy cases topped 10,000 as it attempted a nationwide lockdown, while a U.K. health minister tested positive for the disease
  • Donald Trump told Republican senators on Tuesday that he wants a payroll tax holiday through the November election so that taxes don’t go back up before voters decide whether to return him to office, according to three people familiar with the president’s remarks
  • The Bank of Japan is considering expanding its annual purchases of exchange-traded funds from the current target of 6 trillion yen ($57 billion), Kyodo News reported, without attribution
  • U.K. Chancellor of the Exchequer Rishi Sunak will promise record spending on infrastructure across the country, as the government is set to use a huge increase in borrowing to end the era of austerity
  • Prime Minister Giuseppe Conte is preparing to increase Italy’s fiscal stimulus program for the fourth time in a month, officials said, after the European Union agreed to stretch its budget rules to the limit to help member states fight the coronavirus
  • Oil extended a rebound from its biggest crash in a generation as the prospect of U.S. stimulus to shield against the fallout from the coronavirus tempered fears over an unprecedented supply-demand shock
  • RBA Deputy Governor Guy Debelle signaled in a speech that following the Bank of Japan’s QE method, which sets a target for government bond yields — known as yield curve control — rather than buying a certain amount of bonds a month is the preferred approach
  • Joe Biden won the Michigan primary over Bernie Sanders, taking the biggest prize in Tuesday’s six-state round of primaries and further widening his lead in the Democratic nomination race

Asia-Pac stocks were lower as the prior session’s firm rebound on Wall St that was spurred by stimulus hopes, failed to resonate across the region and US equity futures also pulled back after the White House press conference provided very few details regarding economic measures and where President Trump was a no-show, which overshadowed the Democrat Primaries where mainstream candidate and former VP Biden is set for another decisive victory. ASX 200 (-3.6%) and Nikkei 225 (-2.2%) were lower with the former dragged by heavy losses in gold miners and its largest weighted financials sector to finish in bear market territory, while the Japanese benchmark extended its retreat from the 20k level to reach its lowest level since 2018 as USD/JPY slipped back below 105.00. Hang Seng (-0.6%) and Shanghai Comp. (-0.9%) were indecisive amid a lack of fresh catalysts and as the PBoC continued to withhold from liquidity operations, while the latest update from mainland China showed a slight pick-up in the number of additional coronavirus cases and related deaths although this was only marginal and in-fitting with the stabilization narrative. Finally, 10yr JGBs traded slightly higher amid weakness in Tokyo stocks and following the swings in T-notes, while the BoJ were also present in the market today for JPY 430bln of JGBs mainly concentrated in the belly.

Top Asian News

  • China’s Credit Growth Slumps as Virus and Holidays Cut Lending
  • Over 100 Homebuilders Go Bust in China as Virus Strains Deepen
  • Indonesian Stocks Fall After 1st Reported Death From Coronavirus
  • Abe Faces Rising Calls for More Stimulus as Virus Hits Economy

Sentiment has recovered from the downbeat tone in the APAC regions as futures resurfaced into positive territory following the surprise BoE rate reduction in a bid to cushion the impacts of the virus outbreak. Cash markets also opened higher to the tune of ~2% [Eurostoxx 50 +1.8%] with broad-based gains seen across the board, but with UK’s FTSE choppy and moving from the top gainer to the laggard on Sterling action ahead of the UK budget unveiling later today (Full preview available on the Newsquawk Research Suite). Sectors are mostly in the green with the exception of the energy sector given the decline in prices in the oil complex whilst financials lead the gains. Unsurprisingly, UK banks have received a tailwind from the BoE cut – with Barclays (+1.5%), Lloyds (+2.0%), Standard Chartered (+3.3%) and HSBC (+1.6%) all in firm positive territory. However, analysts at Goldman Sachs see the announcement of the New Term Funding Scheme as a positive for smaller banks and negative for larger banks as it reduces the latter’s potential hedge from mortgage pricing. Elsewhere, Adidas (-6.4%) shares plumbed the depths post-earnings after noting that the virus outbreak had a material negative impact on China revenues – which are expected to be between EUR 0.8-1.0bln below the prior year’s levels. Similarly, Puma (-3.3%) also issued a negative warning regarding virus impacts, as such these cautious comments have brought down the likes of Kering (-0.7%) and Richemont (-1.1%) in sympathy. Other earnings-related movers include Clas Ohlson (-4.4%) and Mediaset (-0.1%). Meanwhile State-side, desks note US democratic candidate Sanders’ poor performance on Super Tuesday is a mild positive for stocks, although Biden could eventually prove to be a headwind to stocks as the market would prefer a second Trump term.

Top European News

  • Telecom Italia Jumps as Carrier Ends Six-Year Dividend Drought
  • European Stocks Climb With U.K. After BOE Cuts Rates on Virus
  • Europe Isn’t Ready for a Full Work-From-Home Lockdown
  • Swedbank Gains Amid ‘Relief’ On Scale of Potential U.S. Sanction

In FX, not the biggest net mover by any means, but the Pound has been among the liveliest majors following the pre-Liffe, UK Budget and timetabled March MPC policy meeting ½ point rate cut. The emergency action induced all round Sterling weakness akin to the Dollar’s post-50 bp FOMC ease decline last Tuesday, as Cable recoiled from 1.2900+ to sub-1.2850 and Eur/Gbp jumped to circa 0.8840 from just under 0.8800. However, as the BoE statement and subsequent presser underscored the coordinated nature of measures taken, including funding for SMEs and a 1% reduction in counter-cyclical buffers for banks to zero, and fiscal loosening to come from the Chancellor, Cable and the cross retraced all and more of their initial moves while largely if not totalling shrugging off data in the form of January GDP, IP and output plus trade.

  • NZD/JPY/AUD/EUR/CAD/NOK – All firmer vs the Greenback, as the DXY fades alongside recovering risk sentiment partly due to the lack of anything material from the US in terms of major steps to counter the adverse economic/social impact of COVID-19, not to mention a degree of disappointment that President Trump was conspicuously absent from the official White House event. The Kiwi is currently top G10 performer, albeit consolidating gains on the 0.6300 handle with the aid of favourable Aud/Nzd tailwinds as the Aussie lags in wake of dovish sounding remarks from RBA Assistant Governor Debelle (underlining QE and forward guidance as potential anti-nCoV contagion tools). Aud/Usd is pivoting 0.6500 and the cross is hovering just above 1.0300, both some distance from recent peaks. Elsewhere, the Yen has pared losses between 105.67-104.11 parameters on the aforementioned flagging risk appetite after Tuesday’s part revival as the Japanese Government prepares supplementary budget initiatives, but the Euro has retreated further from Monday’s near 1.1500 highs to straddle 1.1300 awaiting tomorrow’s ECB meet and the bloc’s fiscal response to the coronavirus. Conversely, the Loonie continues to nurse losses around 1.3700 in the run up to Canadian Q4 cap u that is due alongside US CPI, but also eyeing crude prices like the Norwegian Krona and Russian Rouble that are losing momentum due to crude topping out – Eur/Nok back above 10.8500 and Usd/Rub over 71.5000 again.
  • RBA Deputy Governor Debelle said coronavirus is causing large increase in risk aversion and uncertainty, while he added the global economy will be materially weaker in Q1 and period ahead but also noted lower interest rates will help offset demand shock from virus. Furthermore, Debelle also stated that there are scenarios where QE would have to be considered and that they would also consider forward guidance as well as keeping bond yields low. (Newswires)

In commodities, another wild ride so far in the energy complex with WTI and Brent front month-futures sliding from overnight highs in wake of further supply prospects and the readying from major oil producers for a prolonged period of low energy prices. Saudi Aramco has received a directive from the Energy Ministry to increase maximum sustainable capacity from 12mln BPD to 13mln BPD, with oil production capacity to be raised to 13mln BPD as soon as possible. This follows yesterday’s Aramco announcement that it will be supplying customers with 12.3mln BPD starting April 1st – the timeframe for 13mln BPD output is unclear thus far. Furthermore, Saudi Arabia has asked government departments to submit proposals for 20-30% cuts to their budgets, according to sources. This alludes to the Kingdom readying for a longer period of low energy prices to balance its books. Meanwhile, Russia has shown no signs of caving in – the Finance Ministry highlighted that Moscow is better prepared than any other country with oil revenues. That said, Energy Minister Novak stated that dialogue with OPEC will continue and representatives will be present at the March 19th JTC meeting. UAE has also become the latest producer to increase output, with ADNOC stating that they are in a position to supply markets with 4mln BPD in April and will accelerate to 5mln BPD capacity target, brought forward from 2030. As mentioned above, the contracts have wiped up overnight gains with WTI Apr’20 slipping from USD 36.28/bbl to a current low of ~USD 33.08/bbl whilst Brent Apr’20 similarly declined from a high of USD 39.60 to a low of ~USD 35.73/bbl. Subsequently, UBS lowered its Brent price forecast for end-June to USD 30/bbl vs. Prev. USD 40/bbl & WTI to USD 28/bbl vs. Prev. USD 37/bbl. Elsewhere, spot gold retains an underlying bit given the weaker Buck, with the yellow metal drifting further north of USD 1650/oz. Copper prices meanwhile remain within yesterday’s range and above USD 2.5/lb as the red metal bides time for fresh macro news-flow.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 15.1%
  • 8:30am: US CPI MoM, est. 0.0%, prior 0.1%;CPI YoY, est. 2.2%, prior 2.5%
  • 8:30am: US CPI Ex Food and Energy MoM, est. 0.2%, prior 0.2%;CPI Ex Food and Energy YoY, est. 2.3%, prior 2.3%
  • 8:30am: Real Avg Weekly Earnings YoY, prior 0.0%; Real Avg Hourly Earning YoY, prior 0.6%
  • 2pm: Monthly Budget Statement, est. $236.8b deficit, prior $234.0b deficit

DB’s Jim Reid concludes the overnight wrap

This morning we are launching our latest monthly investor survey. Given the market turmoil it will be fascinating to see whether you all see risk recovering soon or not, whether the ECB will disappoint tomorrow, if 10yr Treasuries yields could go negative and also a repeat of a couple of questions about your own attitude towards the virus that we asked you in last week’s flash survey to see if much has changed. Given the volatile markets we’ll close the survey earlier than normal sometime late today or tomorrow morning. We would be grateful if as many of you as possible could take part. I appreciate markets are consuming your time but the results will be fascinating this month and we’ll share the results tomorrow. So appreciate all your support. The link is here.

Markets yesterday saw massive intraday moves while the prospect of fiscal stimulus first disappointed and then hope came back into town late in the US session. However hopes have again faded in the Asian session with another wild ride in prospect today. To take you on a recap of the rollercoaster, early yesterday it looked like markets would stage a significant recovery and reverse over half of Monday’s selloff with S&P 500 futures up as much as +5.25% at their peak before the open. However not long after the US walked in markets quickly nosedived and went down to erase the entire day’s gain, before headlines came out of a President and Senator meeting surrounding a tax holiday for consumers and targeted fiscal stimulus to industries most affected by the virus. There was also news of a more joined up response from EU leaders and signs of big infrastructure spend in the UK budget today which we will discuss below.

The S&P 500 ended +4.94% but the futures contract are now down -3% as we type. Who knows where it will be between pressing send and you reading this. There were similar swings for the DOW (+4.89%) and NASDAQ (+4.95%) yesterday while in Europe we saw the STOXX 600 closing -1.14% which shows how much it missed the boat before the late US rally. At the highs it was up +4.09%. It was a similar story in credit where CDX HY opened some -60bps tighter in spread terms before ending the session only -15bps tighter, while Cash HY spreads ended +14bps wider which puts the overall spread level at 647bps with a three-day move of +102bps. Energy spreads were +56bps wider and now sit at 1,488bps.

This morning Asian markets are also trading lower with the Nikkei (-1.52%), Hang Seng (-0.60% ), Shanghai Comp (-0.02% ), CSI (-0.50%) and Kospi (-2.75%) all seeing losses. As we go to print, the Australia’s ASX has closed down -3.60% today and has entered what many see as bear market territory as its now down more than 20% from its peak. As for FX, all the G10 currencies except for the Australian dollar are up against the greenback with the Japanese yen (+1.38%) leading the advances.The US dollar index is down -0.43% after advancing by +1.60% yesterday. Also, as volatility continues to remain high, yields on 10y USTs are back down -14.5bps this morning to 0.660% while those on 30y are down -13.1bps to 1.15%. In commodities, brent oil prices are up a further +2.53% this morning with gold +0.88%.

The latest on the virus is that the total number of confirmed cases in the US has now reached 1,001 according to the John Hopkins University tally which includes 67 cruise ship cases. These tend to be well ahead of the official WHO numbers who have a stricter criteria. As the number of cases in the US grow, Robert Redfield, director of the US CDC said that the US had lost valuable time tracking the virus and some regions now can merely try to cope with its spread rather than stop it. My favourite headline yesterday was that the Council on Foreign Relations canceled a “Doing Business Under Corunavirus” conference this Friday due to the spread of the virus.

Away from the virus and on to the democratic primaries held yesterday, Joe Biden continued with his new found momentum as he won the primaries in Mississippi, Missouri, and Michigan – the biggest delegate prize of the night which Sanders had won in his 2016 presidential bid. The results from primaries held in North Dakota, Idaho and Washington are still awaited. Meanwhile, the RealClearPolitics is now showing that Biden is set to win the democratic presidential nomination as he polls at 53.5% vs. 35.5% for Sanders. PredictIt now have Biden at over 90% probability with Hillary Clinton now above Sanders.

Back to yesterday and it was hope of emergency fiscal spending that fueled both the early optimism during the Asian session and the late NY trading rally. However the initially underwhelming announcements and a walk back by the Trump administration quickly caused markets to reassess in the early US session. CNBC headlines mid-way through the day suggested that White House was not ready to roll out “specific economic proposals”. Germany’s Minister for Economic Affairs & Energy, Peter Altmaier, was also quoted as saying that government measures to cushion the impact of the coronavirus are worth several billion euros. That is equivalent to ‘only’ around 0.2% of GDP though. Chancellor Merkel was also reported as telling lawmakers that Germany does not need a stimulus plan now but rather liquidity injections. That didn’t suggest imminent meaningful activity. European Commission President Ursula von der Leyen said that “we will make full use of the flexibility which exists in the Stability and Growth Pact”. The Commission President also confirmed that rules will be clarified for member states and guidelines issued by the end of the week.

Markets turned when President Trump tried to offer more details by stating that he wants a payroll holiday through to the US elections. This was followed by some US Senators, especially Texas Senior Senator John Cornyn (representing his constituent’s oil fields), advocating for targeted subsidies for virus and oil affected companies. House Speaker Pelosi also met with Secretary of Treasury Mnuchin and indicated that “more would need to get done” to address the virus. Following Merkel’s comments, Italian Prime Minister Conte spoke on a call with other EU leaders on the need for coordinated fiscal and monetary stimulus and for Lagarde and the ECB to do “whatever it takes”. He was discussing stimulus leeway of up to EUR 16 billion, which would be roughly 0.9% of GDP, and would be just north of EUR 100bn if replicated across Europe. We’re a long way from that but as Mark Wall told me last night the post GFC European fiscal package was around $150bn for context.

Staying with stimulus, today, here in the UK Chancellor Sunak will deliver one of the most highly anticipated budgets since the financial crisis. See our economists full preview here. There were headlines across the board last night of a likely plan to increase infrastructure investments by £100bn over the next 5 years which would be more aggressive than most people’s expectations.

However the reason for much of this stimulus talk across the globe is that activity is soon going to see serious downside. Indeed as an example, Merkel said yesterday to lawmakers that “everything non-essential should be canceled” according to Reuters. That’s pretty aggressive language and the worry is that large parts of Europe will mirror the rise in new cases seen in Italy over the next 5-10 days and will also impose economically stringent containment and delay measures. As we said yesterday there is hope from what has happened in South Korea where although case numbers now stand at 7531, according to WHO, the rate of growth over the last 7 days are 11%, 8%, 9%, 8%, 5%, 3%, and 2% and clearly slowing for now. The same pattern has been seen in China outside of Hubei. So if Europe follows that model we will get the rate of case growth slowing by month end. By then the streets might be ghost towns anyway.

Back to yesterday where oil staged a rebound with Brent up +8.32% to 37.22$/bbl, just off the highs of the session of 38.34$/bbl. The S&P 500 Energy sector also bounced back +5% on the commodity move. In bond markets 10y Treasury yields were up +26.2bps and finished higher than they closed last Friday, up to 0.803%. Yields in Europe rose, but in a slightly more muted fashion. 10 year Bund yields were up +6.6bps to -0.79%, the first day they finished higher on the day since 26 February and only the 3rd in the last 19 sessions. Italy actually saw its 10yr yields fall -9.6bps, only the 2nd time yields fell in the last 12 sessions. With the market finishing in a risk-on fashion gold fell -1.85%, even as the VIX finished over 40 points for the second day in a row, which is the first time it has done that since March 2009.

In other news, with the ECB meeting now the next point of call for most looking for a central bank response, an MNI story out yesterday suggested that the ECB was looking at a package that could include a 10bps cut and targeted loans. The story also suggested that officials were looking at more asset purchases but further debate was needed. Meanwhile, former senior official in the ECB’s supervision arm, Ignazio Angeloni, said that the ECB could decide not to increase banks’ capital requirements on virus related new loans for a certain period of time.

To the day ahead now, where data releases include January industrial production and trade data for the UK, as well as the February CPI report and monthly budget statement in the US. The aforementioned UK budget will be a focus while the OPEC monthly oil market report will be released.

END

 

3A/ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 28.24 POINTS OR 0.94%  //Hang Sang CLOSED DOWN 179.18 POINTS OR 0.71%   /The Nikkei closed DOWN 451.06 POINTS OR 2.77%//Australia’s all ordinaires CLOSED DOWN 3.44%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9466 /Oil UP TO 34.16 dollars per barrel for WTI and 37.04 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9525 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9466 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/CORONAVIRUS  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA AFFAIRS

 

4. EUROPEAN AFFAIRS

EUROPE/CORONAVIRUS UPDATE

Europe poses a bigger coronavirus risk to the U.S. than China, CDC chief says

March 10, 2020 at 12:50 p.m. ET

Jeffry Bartash
MarketWatch

WHO says 99% of new COVID-19 cases originate outside China

People traveling to and from Europe have now become a bigger coronavirus threat to the U.S. than China, the chief of the Centers for Disease Control said Tuesday.

CDC Director Robert Redfield told a House committee that 99% of new COVID-19 cases are occurring outside China, where intense efforts to slow the spread of the illness appear to be working. He said that helps explain why there’s been a spike in cases in New York.

“Europe is the new China. There’s a lot of people coming back and forth from Europe,” Redfield said in a hearing to discuss the agency’s annual budget. The CDC has recommended that older Americans with health conditions limit their travel for the time being.

The novel coronavirus has especially pummeled Italy, a country to which many Americans travel each year. The country has quarantined tens of millions of people in the northern part of the country. The number of cases is also growing in France and Germany.

The World Health Organizations latest daily report showed that 3,993 new cases were reported overnight, but only 45 were in China.

Some 1,492 cases were reported in Italy, 743 in Iran, 410 in France, 317 in Germany, 248 in South Korea and 159 in Spain.

New cases in the U.S. were listed at 213, but that’s probably too low given the paucity of testing so far. Only about 5,000 people have been tested, compared to tens of thousands in other countries.

The Atlanta-based CDC has been heavily criticized for being too slow to come up with its own test and produce them in sufficient numbers. Redfield said the problem is being rectified and millions of tests will be available this week. Almost anyone who wants to be tested, he said, can be tested soon if their physician deems it necessary..

Repeatedly asked about the delays in testing, Redfield blamed the process for getting regulation approval. The Food and Drug Administration is responsible for approving new treatments.

At the same time, Redfield called for more funding for federal, state and local health laboratories to deal with similar threats in the future. He asserted that public health labs are underfunded, lacking the people and equipment to rapidly produce tests on a mass scale.

“These public health labs need redundancy. We don’t have it,” he said.

Redfield also urged the creation of regional CDC centers to help detect the outbreak of new infectious diseases and intervene more quickly before they spread.

The Trump administration’s budget has repeatedly called for CDC budget cuts, but Congress has increased spending each year.

“I’m sure we won’t be cutting the CDC’s budget anytime soon,” said Tom Cole, the top Republican on the House Appropriations panel that has jurisdiction over the agency.

-END-

ECB/LAGARDE/EUROPEAN ECONOMY

Lagarde is a non trained banker. She warns that the European economy faces a 2008 style crisis due to the coronavirus/oil plunge black swan events. She will have no idea what to do

(zerohedge)

Lagarde Warns European Economy Faces ‘2008-Style Crisis’ Without ‘Coordinated’ Government Action’

There’s been a lot of central bank news this morning. We’re not sure if you heard, but the Central Bank of Iceland cut its benchmark lending rate by 50 bps to its lowest level ever. That, and BoE Governor Mark Carney simultaneously handed over the reins to his successor and emptied the central bank’s stimulus hopper with an emergency 50 bp rate cut of its own.

Now, ECB Governor Christine Lagarde, who left her perch at the IMF to take over the central bank late last year despite having little in the way of experience with monetary policy, has delivered her most dramatic warning yet about the potential risks to the European economy – and the global economy – if governments fail to act (we’re looking at you, Germany).

According to Bloomberg, Lagarde said Europe risks a major economic shock on par with the global financial crisis if its leaders fail to act, and signaled that the central bank will follow the Fed and BoE with a monetary policy bombshell of its own on Thursday, when it delivers its latest decision on interest rates and policy following the conclusion of its two-day policy meeting.

During a conference call with European Union leaders late Tuesday, Lagarde reportedly said that without coordinated action Europe “will see a scenario that will remind many of us of the 2008 Great Financial Crisis,” according to a source familiar with what was said on the call. But with the proper response, the shock will likely prove temporary, she added.

The message that Europe needs governments to abandon austerity and ignore the bloc’s strict limitations on deficit spending to save the economy isn’t a new message. Lagarde’s predecessor Mario Draghi made several allusions during ECB meetings that the central bank had reached the limits of its monetary policy abilities, and that governments would need to take the baton and start ramping up spending, or watch the eurozone’s deflationary malaise metastasize into a full-blown recession.

This is merely that same rhetoric, repackaged with an additional dose of urgency due to the coronavirus.

Economists who spoke with Bloomberg said the ECB still has ‘a number’ of options for the measures Lagarde hinted at, including ramping up purchases of corporate debt (since there’s no more government debt left to buy) and more TLTROs (TLTRO IV anyone?), or possibly tweaking its response to focus on supporting small businesses who are already hurting from the outbreak.

Whatever she decides, Bloomberg noted that Lagarde’s ‘message’ was both a “dire warning” and a “dramatic plea”: monetary policy failed, negative interest rates don’t kill germs, and its now governments’ turn to pick up the slack.

As one Twitter wit pointed out, there’s a certain irony in hearing this message from Lagarde.

Lorcan Roche Kelly@LorcanRK

Kinda ironic that when Lagarde is finally faced with a crisis where the solution Is Mostly Fiscal, she finds herself the head of a monetary institution

Adding yet another layer to the irony onion: German Chancellor Angela Merkel said during a press conference on Wednesday that Germany would do “whatever it takes” to tackle the virus – echoing the infamous words of Lagarde’s predecessor. Unfortunately, whether that includes abandoning the ‘debt break’ that many lawmakers still view as sacrosanct remains unclear.

Merkel has also warned that as many as 70% of Germans – more than 53 million people – could be infected with the virus, according to the worst-case scenarios provided by epidemiologists.

END

GERMANY/CORONAVIRUS
Merkel expects 60 to 70% of Germans to be infected with the coronavirus
(courtesy Watson)

Merkel Expects 60-70% Of Germans To Be Infected With Coronavirus

Authored by Paul Joseph Watson via Summit News,

Angela Merkel says she expects around 60-70 per cent of Germans will be infected with the coronavirus, which equates to about 53 million people.

Reportedly, the German Parliament fell completely silent when Merkel stated the number.

News outlet Bild reported the German Chancellor’s comments, which echoed numbers forecast by Berlin virologist Christian Drosten, who added that such a total could take 2 years or longer to reach.

Given the fact that coronavirus has a mortality rate of around 1 per cent, this could equate to over half a million deaths, although new methods of fighting the virus could reduce this number.

The World Health Organization’s director general, Dr Tedros Adhanom Ghebreyesus claimed that the death rate was higher at 3.4 per cent, although this has been disputed.

Germany, which has recorded 1,565 coronavirus cases and two deaths so far, has yet to impose the kind of quarantine measures seen in Italy, where the entire country has been placed on lockdown.

German health authorities have said that people should avoid attending concerts, clubs or football games to limit the spread of the illness.

*  *  *

My voice is being silenced by free speech-hating Silicon Valley behemoths who want me disappeared forever. It is CRUCIAL that you support me. Please sign up for the free newsletter here. Donate to me on SubscribeStar here. Support my sponsor – Turbo Force – a supercharged boost of clean energy without the comedown.

end

ITALY

Italy’s luxury goods operations plunge as demand for these have hit zero amid the nationwide lockdown

(zerohedge)

Orders Plunge For Italy’s Luxury Suppliers Amid Nationwide Lockdown

Industry sources told Reuters on Tuesday that global luxury brands, including Louis Vuitton, Parada, and others, have significantly reduced orders with top Italian suppliers as Covid-19 disruptions are seen across the world.

Italy has imposed unprecedented travel restrictions on 60 million of its people to contain the fast-spreading virus, which has so far resulted in 9,172 confirmed cases, with 463 deaths.

Reuters spoke with high-end clothing suppliers in Veneto, an area nearby Tuscany and affected by the new travel restrictions. Suppliers said a perfect storm of factors has been building since late January, as demand for luxury goods from China crashed, and Italian suppliers are suspending operations or running at less than full capacity because of a nationwide lockdown to contain the virus.

“We were producing 800-1,000 handbags a month for Gucci. In February we made 450 and we have no orders for March,” said the operator of a small handbag supplier in Scandicci, an area outside Florence that is home to a major hub for leather goods production. “We don’t have orders for April or May either. The company has been brought to a standstill and we are having to put our workers on temporary redundancy schemes.”

The virus has severely damaged the global luxury goods industry, already dealing with waning demand that started with the Hong Kong riots in the second half of 2019. Then the virus outbreak in China at the start of the year delivered an even larger blow to the industry as the world’s largest consumer was forced into quarantine.

Flavio Cereda, an industry analyst at Jefferies, noted on Monday that he slashed his 2020 sales forecast for the global luxury goods market because of the virus outbreak in China, the Middle East, Europe, and the Americas.

Cereda expects luxury goods sales will decline 3% on the year, as opposed to his earlier forecast of 1% growth.

“Prolonged disruption of economic activity may well result in supply chain issues for most brands,” he said, adding, however, that he had no evidence of that happening yet.

The Scandicci manufacturing hub is an area home to top suppliers for LVMH, Kering, and Prada has had strict travel restrictions go into effect to start the week, which has forced some companies to operate at less than full capacity.

Massimiliano Guerrini is the owner of Almax, a Scandicci-based luxury goods supplier for top luxury brands, said orders noticeably decreased when China started shutting down in late January due to the virus outbreak.

“I thought things were not too bad given the circumstances, but now this new alarm in Italy risks making more casualties among businesses than among people and disrupting the supply chain for the orders that are still in the pipeline,” he said.

“We have 270 employees and have diversified our customers, so we managed to mitigate the impact so far. But some of the smaller suppliers are not going to make it.”

Reuters spoke with an operator of another supplier in Veneto, who reported a 30% slump in orders from Louis Vuitton.

Claudio Marenzi, President of Confindustria Moda, a trade organization in Italy, said the Italian textiles industry could see rapid consolidation this year as the virus crisis across the world is causing severe demand shocks that are also resulting in supply shocks as suppliers in Italy idle plants on a nationwide lockdown.

“Since the virus emerged in China we knew there was going to be a slowdown in the first quarter. But now the whole year risks going up in smoke for us,” Marenzi said.

Italy is Europe’s third-largest economy, and the lockdown across the country could result in a recession.

END

ITALY 

Mortgage payments suspended s businesses in Italy are dying..panicked residents hoard supermarkets for food.

(zerohedge)

Italy Suspends Mortgage Payments, Businesses Dying As Panicked Residents Hoard Food

Italy has suspended payments on mortgages due to the coronavirus outbreak as more than 9,000 people have been infected and over 460 have died, the government announced on Tuesday.

When asked about halting mortgage payments on Radio Anch’io, deputy economic minister Laura Castelli said “Yes, that will be the case, for individuals and households,” according to The Independent.

Meanwhile, panicked residents crammed into supermarkets to stock up as the entire country entered a lockdown on Tuesday morning, while Italian streets were virtually empty after the government ordered people to avoid travel except for “urgent, verifiable work situations and emergencies or health reasons,” according to the Daily Mail.

Tourist favourites including Milan’s shopping galleries, Rome’s Spanish Steps and Vatican’s St Peter’s Square were all but deserted today after the drastic coronavirus measures were extended to the entire country last night.

Panic-buyers were packing into supermarkets this morning with queues stretching outside because of a rule that demands a 3ft gap between shoppers – meaning only a limited number can go inside at once.

In Naples, police were roaming the streets with a loudhailer last night to warn people to ‘stay indoors, avoid unnecessary outings and avoid crowded places’ because of the ‘coronavirus emergency’.

Prime minister Giuseppe Conte declared last night that ‘everyone must give up something to protect the health of citizens.’ –Daily Mail

 

The Galleria Vittorio Emanuele II in Milan – one of the city’s famous shopping galleries – is nearly deserted today with Italy beginning an unprecedented nationwide lockdown to tackle the coronavirus outbreak (via the Daily Mail)

Businesses are obviously suffering from the impact of the lockdown, as the empty streets of Rome have turned quiet. Bars and restaurants are only allowed to be open between 6am and 6pm, and must keep customers a minimum distance of 1 meter (3.2 feet) apart, according to SBS. Moreover, museums and cultural venues are closed, along with nightclubs, cinemas, theaters and casinos. Department stores must close on public holidays and the day before public holidays.

The flow-on effect has been immediate.

Raffaello Sasson’s family has owned a clothing shop in Rome since 1970 but he says conditions have never been so dire.

This is right now much worse than 11th of September and Chernobyl put together. This is the worst we have seen, right now.” –SBS

The last two weeks have been tragic, in the historic centre here, not even a single tourist. We have been here for 15 years and it’s never happened,” said restaurant owner Francesco Massotte, whose high-end eatery typically books people months in advance.

Outside Trevi Fountain, tourists saw signs warning of interactions with others.

“I was eating lunch today and in the restaurant, there was a sign saying ‘stay away from people, sit a metre away from other people’,” one man told SBS.

At least they won’t have to pay their mortgages for a while.

END
UK/CORONAVIRUS/UPDATE
EMERGENCY 1/2% CUT IN INTEREST RATES DUE TO CORONAVIRUS
(ZEROHEDGE)

UK Government Unveils “Corona Budget” After BoE Follows Fed With “Emergency” 50bp Rate Cut

Six months ago, it seemed almost unimaginable that anything would replace Brexit as the biggest ambient risk for the UK economy. But after six deaths and hundreds of confirmed infections, the coronavirus has accomplished this seemingly impossible task. And after publishing a litany of screeds warnings about the impending Brexit fallout, the BoE decided to serve up a 50bp emergency rate cut to save the British economy from the looming viral threat.

Two days after UK stocks faced their worst shellacking since the financial crisis, the BoE slashed rates in what appears to be the first part of a one-two punch that will also include Boris Johnson’s first budget. Chancellor Rishi Sunak, who took over from his predecessor Sajid Javid just three weeks ago, has been thrust into the spotlight Wednesday morning as he prepares to unveil what’s become known as the “coronavirus budget”, according to the BBC.

The MPC voted unanimously to reduce the main lending rate by half a percentage point on Tuesday, but potentially more important than the rate cut itself was its decision to offer banks four years of cheap funding so that they could continue to lend during the coronavirus crisis and bridge a potentially challenging period.”

The central bank also slashed requirements to hold capital buffers to allow them to take temporary losses without curtailing lending. The decision to let banks draw on the so-called “countercyclical buffer” would allow them to lend an additional £200 billion in corporate credit, “exactly the kind of drawdowns that would be required in this kind of situation.”

During a post rate-cut press conference, BoE Governor Mark Carney said the coronavirus will cause “an economic shock that could prove large and sharp, but should be temporary.”

Carney also said the BoE is “coordinating actions with those to be outlined in the Chancellor’s budget later today.”

Bloomberg Brexit

@Brexit

BOE Governor Mark Carney says coronavirus will cause “an economic shock that could prove large and sharp, but should be temporary”

More on U.K. emergency rate cut: https://trib.al/EBj70Ha 

Embedded video

52 people are talking about this

The cut – the largest since March 2009, when the British economy was still reeling from the financial crisis – reduced Britain’s benchmark overnight rate to just 25 basis points.

The BoE wasn’t alone on Wednesday: The Central Bank of Iceland lowered its benchmark interest rate by 50bps on Wednesday, bringing the bank’s 7-day term deposit rate to new all-time low of 2.25%.

Outgoing governor Carney on Wednesday also formally handed the reins to his successor, deputy governor Andrew Bailey. During Bailey’s remarks, the new BoE governor said the central bank had used ‘roughly half’ of its policy ammunition on Wednesday, but caveated that this could change depending on how effective forward guidance is.

As FX analyst Viraj Patel pointed out, if Rishi’s coronavirus budget includes significant short-term support for workers and businesses, the UK will become the first developed country (ignoring China) to deliver a comprehensive economic response to the viral crisis (compare this to what’s going on in the US). He added that unlike the Fed, market’s are pricing in a “one and done” approach from the BoE, which followed the Fed and BoC with the 50bp cut.

Viraj Patel@VPatelFX

Markets pricing in very little additional stimulus from BoE now. Bank have been clear on ZLB being just above zero (anti-negative rates) which gives them little scope to cut further without changing their ZLB stance. With this floor – should stay supported as other CBs ease

View image on Twitter
See Viraj Patel’s other Tweets

The pound dipped on the news, but has since rebounded.

The response for the FTSE was muted as investors await the government’s March budget, which is expected around noon GMT (7 amET.

As investors look ahead to the budget, here are five elements that could be included in the package, per the BBC.

  • Emergency money for the NHS
  • A cut to VAT
  • Waive or reduce business rates
  • Support for gig economy workers
  • Hardship fund for small businesses

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

CORONAVIRUS/UPDATE//MORNING

Double Whammy Of Shocks Plagues Companies Across World As Virus Spreads  

As Covid-19 grinds the world’s economy to a halt and supply-chains break, anxieties flourish among multinationals, AP news reports.

Millions of businesses are reeling from virus impacts as supply-chain disruptions have triggered one of the most massive economic shocks since the last financial crisis.

Jay Foreman, CEO of the toy company Basic Fun in Boca Raton, Florida, told AP that his Chinese suppliers have dramatically reduced output because of the shutdowns, and this means his imports are significantly reduced. Foreman said he would layoff 10% of his 175-person global staff.

“I am getting vendors who are actually encouraging me to (make smaller) orders because they’re trying to spread out the capacity,” Foreman said. “I don’t want lower orders. I want higher orders.”

Sondra Mansfield, who owns Chalk of the Town in New York City, which makes T-shirts and tote bags, told AP that the “virus is going to go on, and it’s going to impact a lot of countries and economies.”

Mansfield stressed her access to foreign suppliers has come to a pause, and that could start affecting US operations.

“I think it will get worse before it gets better,” she warned.

Jacob Kirkegaard, a senior fellow at the Peterson Institute for International Economics, said the fast-spreading virus is now becoming a global issue.

The virus has now spread across South Korea, Japan, Iran, Italy, other countries in Europe, and the Americas, with the possibility of a “global pandemic” in the near term.

Last month Michael Every of Rabobank laid out his four scenarios for the virus’ economic and market impact: “The Bad,” “The Worse,” “The Ugly,” and “The Unthinkable.”

In an updated post on March 4, Every said, “It’s Getting ‘The Ugly,'” as this scenario foresees “the US, UK, and Europe were infected too. Naturally, this implied a deep global recession.” It appears the world is just one step away from “The Unthinkable,” Every describes this scenario as a global pandemic that has only been seen in Hollywood movies.

We’ve laid out four scenarios of how the virus impact could affect the global economy. At the moment it appears scenario four could be playing out, indicating a massive economic shock could tilt the world into recession. Global growth rates could be headed to zero on the year with a $2.7 trillion hit in global output.

Business travel across the world has crashed. Big tech firms, including Amazon, Google, Apple, Microsoft, and others, have restricted employees from traveling overseas. Many of these employees are being sent home for the next month. Similar restrictions are being seen with major US banks. As a result of reduced travel by corporate America and consumers as a whole, the travel industry is headed for a crash, which means airlines, hotels, restaurants, cruise ships, and casinos are going to see a sharp decline in traffic for the next several months.

Executives of Salus Brands, an Arizona-based company, that sells swimming-pool accessories, said its Chinese shipments for the summer vacation season will likely be missed.

“If we can’t get the product in stores by Memorial Day week or shortly after, we lose our season,” said Salus Brands CEO Dave Balkaran.

Andrew Shoyer, a former US trade official who is a partner at the law firm Sidley Austin, said the “small and medium-sized enterprise will get hurt the most and the soonest.” He noted larger companies are more flexible with larger stockpiles of goods and can easily switch suppliers.

We’ve noted on several occasions that West Coast port activity has plunged over the first quarter. Specifically, year over year volume at the Port of Los Angeles, the busiest seaport in the US – could see upwards of a 15% decline this quarter.

And to make matters worse for companies already suffering from supply shocks, the next shock could be a demand one. The director of the National Institute of Allergy and Infectious Diseases, Dr. Anthony Fauci, recommended all baby boomers on Sunday to avoid travel and large crowds in the US. This would effectively mean that one of the wealthiest generations could be removed from spending money in the economy as the virus outbreak worsens in the weeks ahead.

END

A must read…

In a nutshell…there is no pan by anybody and the entire globe financial markets will implode

Bill Blain..

Blain: “There Just Isn’t A Plan!!”

Authored by Bill Blain via MorningPorridge.com,

“In terms of unconvincing rallies, yesterday takes the Tunnock’s Caramel Wafer – Scotland’s National Biscuit.” 

During the last crisis we reassured ourselves there was a firm hand on the tiller, that the great ship of the global economy was being steered away from the rocks and the lee shore on which it so nearly beached itself.  Experts from the central banks, governments, finance and regulators pulled together with common purpose and steered us through – not without significant consequences, which we still suffer from today in terms of market distortions.

So…. does an emergency 50 bp rate cut by the Bank of England to “support business and consumer confidence” fill you with confidence all is well with the World and we are going to miss the sharp pointy rocks? Are you going to put your buying boots on because the BoE has made stocks look relatively better return value than Gilts… or are you going to critically consider the risks, shake your head and sell?

I shall watch today’s UK budget with interest…

Surprisingly, I’m still getting emails and being sent “news” articles explaining why the Coronavirus is not a threat, how it’s been hyped and vastly over-exaggerated, and is only mildly dangerous to a very few elderly patients with pre-existing conditions. Its, apparently, Fake News. 

Your call.

You’d have to be completely blind to the very real economic effects now making themselves increasingly apparent across the global economy. The Italians are not only struggling with a massive medical crisis, but are juggling their options on how to put their economy on hold for however long the crisis lasts by declaring some kind of moratorium on all domestic mortgage and debt repayments.

That’s pretty fundamental in terms of how money works, circulates and flows within an economy. But what else can they do to avoid a massive escalating financial implosion cascading through the economy except pull out the control rods to stop circulation?

Problem is Italy is not a sovereign borrower and can’t just print money to pay for it. It uses someone else’s currency – and even worse, the Euro is a committee currency. Anyone buying Italian bonds is taking a big gamble on the ECB and Europe agreeing to step up with an essentially unlimited ticket for an Italy bailout. Based on our previous experience why would you think that’s going to happen?

There might not be any choice but to bail them out – that’s the bet!

And its not just Italy in trouble. This is where globalisation and the complexity of modern financial markets comes back to bite us with a vengeance…

Suddenly, the virus has coalesced into crisis. Now we find ourselves at the epicentre of a massive and expanding economic conflaguration. Any firm or individual relying on income to service debt is unquestionably going to face crisis as cashflow dries up. We are likely to see cascading consequences as one missed payment becomes many, and one defaults sets the dominos tumbling.

As cash deteriorates on the balance sheet, you are nailed-on to see dozens if not hundreds of firms downgraded to junk triggering a massive enforced corporate sell-off.  If you are still long corporate debt.. good luck with that one. I was emailing with an ETF dealer y’day on Fixed Income EFTs and he neatly turned round the liquidity promise.. “It’s unfair to say its Junk and Crossover ETF’s that are illiquid.. their liquidity is simply a function of underlying liquidity”.. which is why you can’t get a meaningful bid on any position. Try explaining that one to your investment committee.

If that’s not a problem.. then go buy the market. 

And, that would be a mistake – because I’m pretty sure the market is not as cheap as its going to get…

Even as money stops, we’re going to see sentiment and hope driven lower as economic expectations on future earnings, default rates, and particularly the efficacy of support mechanisms come under increasing downwards pressure. Yesterday’s rally – such as it was – will stumble even more as it becomes clear… THERE JUST ISN’T A PLAN. 

We all know that cutting interest rates is unlikely to persuade anyone to get on a plane, or help a corporate struggling to make this month’s payroll and rent. Yet the market buys the expectation central banks and the authorities are going to sort this, and will do whatever it takes. 

What if there isn’t much that can be done?

At some point in the future, someone is going to pull all the data together. They will closely examine the hospital logs, analyse the transmission number and the infection rate, and do a cost-benefit analysis of the efforts to contain the virus. They may well conclude Governments over-reacted and the damage to the global economy exceeded the economic costs in terms of the virus mortality. That’s a nasty, inhumane calculation to make – but it’s one that is repeatedly made in emergency triage and wartime.

It’s not a calculation any politician in a democracy is going to admit making. The virus controls the headlines and the political options.  Politicians have to be seen to be reacting. 

There are lots of articles out there comparing this crash to previous crashes. The general perception – nicely encapsulated by Mo-the-Tash in How this market crash is different from 2008, and the same – is its different but similar. Yep.. we’ve been here before.

But this time it is different. 

We naturally assume our Governments know what they are doing, and our financial leadership is fully informed. They are advised by the brightest, smartest and most informed scientists, technocrats, economists and industrial leaders. They will have analysed the way in which the virus is spreading, understood the transmission rate, the likelihood of mass infection, plotted where health resources are likely to be most efficiently targeted, figured out the areas of likely economic weakness, examined the policy options and concluded the right way to address crisis with well-timed fiscal policies, supported by accommodation across the market.

BUT… 

It’s as clear as a bell that Trump had no plan to address the Coronavirus before he was finally forced to say something Monday. Until then it was a “fake-news” distraction. He made a political gamble: that the virus would recede before it became a crisis, making him look smart and a market genius for calling it.

As the market went into freefall he was forced to play to it off-the-cuff. He spouted out what he thought the market wanted to hear in terms of measures, not because of concern about the virus, infection and mortality, but because a tumbling stock market will crucify him at the polls.

He promised us a full package – which he singularly failed to expand upon at his no-show press conference last night. On Monday he was flolloping around, throwing out crazy ideas like a payroll tax cut (effectively helicopter money) to trigger a demand side economic boost, talked about direct support for shale oil producers and airlines, and further threats about the Fed playing its part. He caught the market and his staff – such as they are, his trusted family members and carefully chosen anodyne yes-men unlikely to trigger a twitter storm – by surprise.

The market took it at face value.  It heard what it wanted to hear. The most powerful man on the planet has a plan. Yippee!  Marvellous! It’s bound to be a good one, because he is the US president. Yep, but he is also Donald Trump. There isn’t a plan. There are tweets.

In the past Donald has proved lucky. Napoleon said he didn’t care about how good a general was, only that he was lucky. Donald was lucky in his roll of the dice against Iran, and despite the dangers, his ham-fisted approach to trade, tax and the economy, his gambles haven’t resulted in complete disaster. I suppose that’s his “art of the deal”: gamble big and bluff it out.

But now it’s increasingly clear there is no real plan for the consequences of the virus on America. He’s barely speaking to the Fed and the other economic and financial advisors. Still he’s got economic geniuses like Mike Pence, Larry Kudlow, Steve Mnunchin and Jared Kushner telling him how brilliant his “not-a-plan” is.

We are so Rubber Ducked. 

Without a deliverable plan, without clear and deliverable policies to support America through the crisis, the market is going to fade. Fact.

When the US economy weakens, then this crisis becomes full blown Global Depression and a Global Market Reset. At that point we’ll know who to blame…  

7. OIL ISSUES

a good discussion on how the all out oil war could lead to the collapse of the Saudi kingdom itself

(south front)

Saudi-Initiated All-Out Oil War Could Lead To Collapse Of Kingdom Itself

Submitted by South Front,

Saudi Arabia launched an all-out oil war offering unprecedented discounts and flooding the market in an attempt to capture a larger share and defeat other oil producers. This “scorched earth” approach caused the biggest oil price fall since the war in the Persian Gulf in 1991.

It all began on March 8 when Riyadh cut its April pricing for crude sales to Asia by $4-$6 a barrel and to the U.S. by $7 a barrel. The Kingdom expanded the discount for its flagship Arab Light crude to refiners in northwest Europe by $8 a barrel offering it at $10.25 a barrel under the Brent benchmark. In comparison, Russia’s Urals crude trades at a discount of about $2 a barrel under Brent. These actions became an attack at the ability of Russia to sell crude in Europe. The Russian ruble immediately plummeted almost 10% falling to its lowest level in more than four years.

Another side that suffered from Saudi actions is Iran. The Islamic country is facing a strong US sanctions pressure and often selling its oil via complex schemes and with notable discounts already.

Saudi Arabia is planning to increase its output above 10 million barrel per day. Currently, it pumps 9.7 million barrels per day, but has the capacity to ramp up to 12.5 million barrels per day. According to OPEC and Saudi sources of The Wall Street Journal, Riyadh’s actions are part of an “aggressive campaign” against Moscow.

The formal pretext of this campaign became the inability of the OPEC+ (a meeting of representatives of member states of the Organization of the Petroleum Exporting Countries and non-OPEC members) to extend output agreements.

Saudi Arabia was seeking up to 1.5 million b/d in further oil production cuts, but this proposal was rejected by Russia. After the inability to reach the new OPEC+ deal, Saudi Arabia became the frist and only power that took aggressive actions on the market. However, it is hard to imagine that Saudi Arabia would go for such an escalation without at least an order or approval from Washington.

This came amid the detention of two senior members of the Saudi royal family – Prince Ahmed bin Abdulaziz, the younger brother of King Salman, and Mohammed bin Nayef, the king’s nephew – on March 7. This development took place just ahead of the Saudi offensive on the oil market, and was likely a tip of the ongoing undercover struggle between the pro-US and pro-national factions of the Saudi elites; and the pro-US bloc seems to have the upper hand in this conflict.

In this case, the real goal of the Saudi campaign is not only to secure larger share of the oil market and punish Moscow for its unwillingness to accept the proposed OPEC+ deal, but to deliver a powerful blow to Washington’s geopolitical opponents: Russia and Iran. Pro-Western and anti-government forces existing in both Russia and Iran would try to exploit this situation to destabilize the internal situation in the countries.

On the other hand, Saudi Arabia may soon find out that its actions have backfired. Such economic and geopolitical games amid the acute conflict with Iran, military setbacks in Yemen and the increasing regional standoff with the UAE could cost too much for the Kingdom itself.

If the oil prices fall any further and reach $20 per barrel, this will lead to unacceptable economic losses for Russia and Iran, and they could and will likely opt to use nonmarket tools of influencing the Saudi behavior. These options include the increasing support to Yemen’s Houthis with intelligence, weapons, money, and even military advisers, that will lead to the resumption of Houthi strikes on Saudi oil infrastructure.

On top of these, the Saudi leadership may suddenly find that the internal situation in the Kingdom is being worsened by large-scale protests rapidly turning into an open civil conflict.

Such a scenario is no secret for international financial analysts. On March 8, shares of Saudi state oil company Aramco slumped below their initial public offering (IPO) and closed 9.1% lower. On March 9, it continued the fall plunging another 10%.  There appears to be a lack of buyers. The risks are too obvious.

At the same time, the range of possible US actions in support of Saudi Arabia in the event of such an escalation is limited by the ongoing presidential campaign. Earlier, President Donald Trump demonstrated that a US military base could become a target of direct missile strike and Washington will not order a direct military action in response. Taking into account other examples of the US current approach towards non-Israeli allies, Riyadh should not expect any real support from its American allies in this standoff.

END

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1315 UP .0002 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 105.05 DOWN 0.089 (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 1.2918   UP   0.0012  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

USA/CAN 1.3698 DOWN .0033 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro ROSE BY 2 basis points, trading now ABOVE the important 1.08 level RISING to 1.1315 Last night Shanghai COMPOSITE CLOSED DOWN 28.24 POINTS OR 0.94% 

 

//Hang Sang CLOSED DOWN 179.18 POINTS OR 0.71%

/AUSTRALIA CLOSED DOWN 3.44%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 179.18 POINTS OR 0.71%

 

 

/SHANGHAI CLOSED DOWN 28.24 POINTS OR 0.94%

 

Australia BOURSE CLOSED DOWN 3.44% 

 

 

Nikkei (Japan) CLOSED DOWN 451.06 POINTS OR 2.27%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1661.10

silver:$17.03-

Early TUESDAY morning USA 10 year bond yield: 0.70% !!! DOWN 11 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.17 DOWN 11  IN BASIS POINTS from TUESDAY night.

USA dollar index early MONDAY morning: 96.21 DOWN21 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.39% DOWN 9 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.15%  DOWN 4   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

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

ITALIAN 10 YR BOND YIELD:1,23 DOWN 10 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 98 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.00% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1277  DOWN     .0036 or 36 basis points

USA/Japan: 104.68 DOWN .362 OR YEN UP 36  basis points/

Great Britain/USA 1.2906 UP .0003 POUND UP 3  BASIS POINTS)

Canadian dollar DOWN 9 basis points to 1.3743

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9590    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9608  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.1986 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 4 IN basis points from TUESDAY at 0.77 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1,26 DOWN 2 in basis points on the day

Your closing USA dollar index, 96.34 DOWN 8  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 30.98  0.93%

German Dax :  CLOSED DOWN 12.56 POINTS OR .12%

 

Paris Cac CLOSED DOWN 3.41 POINTS 0.07%

Spain IBEX CLOSED DOWN 56.20 POINTS or 0.75%

Italian MIB: CLOSED DOWN 82.34 POINTS OR 0.46%

 

 

 

 

 

WTI Oil price; 33.34 12:00  PM  EST

Brent Oil: 35.75 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    72.35  THE CROSS HIGHER BY 0.86 RUBLES/DOLLAR (RUBLE LOWER BY 86 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.77 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  55.66//

 

 

BRENT :  62.41

USA 10 YR BOND YIELD: … 2.03…

 

 

 

USA 30 YR BOND YIELD: 2.57..

 

 

 

 

 

EURO/USA 1.177 ( UP 49   BASIS POINTS)

USA/JAPANESE YEN:107.27 DOWN .667 (YEN UP 67 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.69 DOWN 53 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2554 UP 119  POINTS

 

the Turkish lira close: 5.6298

 

 

the Russian rouble 62.86   UP 0.03 Roubles against the uSA dollar.( UP 3 BASIS POINTS)

Canadian dollar:  1.3034 UP 21 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8800  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8740 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.77%

 

The Dow closed DOWN 1400 POINTS 

 

 

NASDAQ closed  DOWN BADLY.

 

 


VOLATILITY INDEX:  54.66 CLOSED UP 11.00

LIBOR 3 MONTH DURATION: 0.784%//libor dropping like a stone

 

USA trading today in Graph Form

 

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

“Dead Bat Bounce” Dies – Dow Futs Down Over 500 Pts, Treasury Yields Are Tumbling

Well that re-escalated quickly…

A disappointing lack of detail -despite promises of unlimited spending – appears to have upset the market’s vibe from a day of panic-buying to very technical level of resistance.

Dow futures are now down 550 points…

And 10Y Treasury yields are down 12bps…

Is anyone really surprised?

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

Liquidity Getting Worse By The Day: Fed Injects Record $132 Billion With Overnight Repo

Mot much new to report this morning regarding the daily Fed’ repo operations that we didn’t already cover extensively yesterday in “Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo“, except to note that while we wait for tomorrow’s upsized term repo operation, today’s overnight repo, which as a reminder was recently upsized from $100BN to $150BN…

… saw the highest amount of both bids and accepted securities since the central bank resumed the offerings in September as the liquidity crisis is clearly getting worse by the day. Specifically, dealers submitted $132.375BN of bids at 1.10% vs a maximum of $150b, which was not only up from Tuesday’s total bids of $124BN, but also the highest in overnight repo history!

The growing funding panic also meant that general collateral has continued to rise, and after dropping to 1.10%, in line with last week’s Fed emergency rate cut, overnight GC has pushed higher, and last traded at 1.23%/1.18% as dealers are once again scrambling for liquidity anywhere they can.

As this latest data merely confirms that the liquidity crisis is getting worse, we have nothing new to add to our conclusion from yesterday so we will just repost it here:

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.

end

US Coronavirus Outbreak Reaches Grim New Milestone As National Guard Arrives In Suburban New York: Live Updates

The global coronavirus outbreak has hit a new milestone: It surpassed 120,000 cases overnight. For anybody who’s still bothering to keep track, that’s 15x the number of cases from the SARS outbreak, which continued for nearly a year before it finally petered out.

In the US, the coronavirus outbreak has reached a grim new milestone. Thanks to the administration’s scramble to bring dozens of private and public labs on-line for testing across the country, the CDC has managed to confirm more than 1,000 cases of the virus. In the Westchester County town of New Rochelle, the epicenter of the outbreak in New York State, and the largest on the east coast, woke up to a 1-mile exclusion zone and national guard soldiers in the streets.

The town now looks like a “ghost town” according to several reports.

As the number of cases topped 1,000, the number of deaths has also climbed: Officially, there are 31 deaths and 1,039 confirmed cases, according to the Washington Post, which is significantly more than the number confirmed by Dr. Anthony Fauci during last night’s press conference.

Across the US, Washington State’s King County remains the epicenter of America’s worst outbreak, with 273 cases . New York is No. 2 with 176 (13 additional cases have just been announced). After hinting about ‘mandatory measures’ last night that set tongues wagging about the possibility of Italy-style travel restrictions, Washington Gov. Jay Inslee is reportedly planning to announce a plan to…ban all events with more than 250 people, according to MyNorthwest.

At a press conference scheduled for Wednesday at 10:15 a.m., it is expected that Gov. Jay Inslee along with regional leaders and city mayors could announce a ban on large gatherings and events of 250 people or more in at least three counties. Any ban would affect upcoming sporting events in the area, including a home game for the XFL’s Seattle Dragons on Sunday.

Inslee has been hinting at this for the past week as a possible preemptive move to curb the spread of coronavirus. Over the weekend, he stated that his office was considering enacting “mandatory measures” in the days ahead.

Monday night on MSBNC, the Washington governor spoke to Rachel Maddow, admitting that soon, the state was “going to have to make some hard decisions.”

He further elaborated on that point during a Tuesday press conference, when he cited the need to “look forward ahead of the curve in Washington state.”

“We need to look at what is coming, not just what is here today,” he detailed, estimating that given limits on testing capacity, experts have told him there could be at least 1,000 untested coronavirus cases across the state.

So much for ‘hard decisions’….

This immense build up, only to announce restrictions that are only ‘slightly’ more comprehensive than the milquetoast event bans embraced by Germany, France, Switzerland and others, brings to mind a tweet we noticed earlier highlighting the sometimes unintended consequences that half-measures can create.

Fat Tail Capital@FatTailCapital

When 90% of Americans get the coronavirus, we’ll look back & say, “Man, that was pretty dumb making all college classes ‘remote’ while airfare and hotels are super cheap. Who would’ve thought 20 yr olds don’t give a fuck and just ended up traveling everywhere spreading disease.”

On the east coast, the State of New York is asking businesses to voluntarily consider having employees work two shifts as well as allowing telework, Gov. Andrew Cuomo said in an interview with CNN, the network that employs his brother, where he has been making near-daily appearances in addition to his daily press conferences.

Gov. Inslee

“This is about reducing the density,” Cuomo said. “The spread is not going to stop on its own.”

He also announced 20 new cases of virus, bringing total in state to about 193, with most of the new cases diagnosed in New Rochelle, where the virus has clearly been circulating for weeks.

Elsewhere, China reported a rise in coronavirus infections imported from abroad, while noting 24 additional cases of coronavirus and 22 additional deaths on March 10, compared with 19 additional cases and 17 additional deaths on March 9, bringing the total number of cases in mainland China to 80,778 and death toll at 3,158. China’s Hubei province said it will mandate a return to work according to different levels of risk in an orderly manner, adding that key areas of the Wuhan economy will be allowed to return.

After 11 days of falling case numbers, South Korea reported 242 additional coronavirus cases early Wednesday, bringing its total to 7,555, and 6 additional deaths, increasing the death toll to 60, reversing a streak of declines that had convinced many that Korea’s outbreak had ended.

The South has made remarkable progress in fighting the outbreak, however, a new mass infection incident has popped up that is jeopardizing the government’s widely praised response. Earlier, South Korean authorities told Reuters that they had tested hundreds of staff at a Seoul call center where the disease broke out this week. 13 of the infected workers at the Seoul call center used public transportation to commute, leading to at least 90 other people who had close contact with them being infected.

The spread has even made it into the armed forces, raising new fears about an outbreak in tightly packed barracks.

Vincent Lee

@Rover829

Yonhap: A conscript South Korean Army soldier has been confirmed as a coronavirus patient in Seoul. His mother works at a call center in the city where a mass infection event has been confirmed. https://twitter.com/yonhaptweet/status/1237560423689273344 

연합뉴스

@yonhaptweet

서울서 육군 병사 코로나19 확진…구로 콜센터 직원 가족(종합)https://www.yna.co.kr/view/AKR20200311068951504?input=tw 

군에서는 처음으로 서울에서 신종 코로나바이러스 감염증(코로나19) 확진자가 나왔습니다.
국방부는 11일 “군내 코로나19 확진자가 1명 늘어 누적 확진자가 38명이 됐다”고 밝혔습니다.

\

Elsewhere, Japan is reportedly planning to declare a state of emergency due to the coronavirus outbreak after the number of domestic cases rose by the largest daily number yet, with 59 new cases bringing the total to 1,278, while the total death toll has climbed to 19 and there were 427 discharged from hospital on Tuesday.

Italy’s total coronavirus cases rose to 10,149, from 9172, and the death toll increased to 631 yesterday from 463 in its largest daily jump yet.

end

looks like their are going down!

(zerohedge)

Boeing To Drawdown Full $13.8 Billion Revolver, Hinting At Bank Lending Freeze

For that generation of traders out there who were following the market back in 2007/2008, instead of their high school or college GPA, they will recall that one of the key inflection points in the global financial crisis 12 years ago was when banks started pulling revolvers to preserve liquidity.

Moments ago Boeing suggested that a similar moment is coming again: according to Bloomberg, the struggling aerospace giant which just a few weeks ago obtained an upsized revolver from various Wall Street sources to shore up its liquidity in the aftermath of the 737 MAX crisis, was planning to draw down the full amount of a $13.825 billion loan as early as Friday.

Why is Boeing taking this unprecedented step: after all, the cash is already committed and is far safer if held on bank balance sheets instead of Boeing’s? According to Bloomberg, the full drawdown takes place as Boeing grapples with worldwide travel disruptions from the coronavirus, and “plans to draw the rest of the loan as a precaution due to market turmoil.” That however doesn’t explain why Boeing needs the cash on its balance sheet instead of its lender banks’. The answer – especially for those who recall what happened in 2008 all too well – is simple: Boeing is worried that banks will pull their committed funding, which in turn means that Boeing is either now worried that a 2008-style financial crisis is imminent, or that the company’s own prospects are about to implode, forcing banks to breach their delayed draw credit facility document terms

As Bloomberg reminds us “Boeing obtained the loan from a group of banks last month to help it deal with cash burn while it prepares to return its 737 Max plane to the skies. It initially tapped about $7.5 billion of the debt, and is now expected to draw the rest.” Ironically, while banks scrambled to lend to Boeing, they will now be ruing the day they expanded the revolver facility, because while Boeing may be worried about banks pulling funding, the banks will be just as worried about Boeing’s soaring default probability as the company’s CDS have exploded in recent days.

Another reason why the banks may soon kiss the $14BN goodbye: the loan was made the Covid-19 coronavirus became a global crisis. As such, in addition to its 737 Max woes, the company now faces lost revenue amid falling demand for planes as passengers cancel flights and airlines pull back orders on new jets.

Unfortuantely for the banks, they can’t just turn around and withdraw their commitment. Or rather they can, it would be a scandal, but they can certainly do it. And that’s precisely what Boeing is seeking to anticipate by transfering the cash from bank balance sheets to its own, even as it will be charged the full revolver usage fee (which thanks to the Fed is negligible).

In other words, now that Boeing – one of America’s most valuable companies – has shown which was the wind blows, expect thousands of less creditworthy companies to follow suit as they scramble to cash in on every dollar in available revolver funding before the banks pull it.

iv) Swamp commentaries)

 

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

Trump Vows ‘Dramatic’ Economic Relief to Counter Coronavirus Hit

Trump’s economic plan – which he said could include a payroll tax cut and paid sick leave – does not have buy-in from Congress yet…

Numerous Democrats voiced opposition to a payroll tax cut.

@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!

The NY Fang+ Index soared 5% by the end of the first hour of trading.  Traders, hedgies and PMs flock to trading sardines when they expect rallies – and they need to mark up those positions after huge losses.

Stocks reversed hard after the first hour of US trading.  The European Stoxx 600 rescinded a 4.1% gain by 11:00 ET; the S&P 500 Index fell 62 handles.  After opening sharply lower, IG credit default swaps rallied 13% by 11:00 ET.  HY CDX rallied 18%.

The usual rally into the European close commenced at 11:00 ET.  It ended within 9 minutes.  ESHs and stocks then tumbled into the European close.  The DJIA turned negative, erasing a 945-point gain.

The market is screaming that there is something very wrong in the system – and a payroll tax cut will not resolve the problem!

Funding Freeze Getting Worse: Dealers Demand Record $216BN in Liquidity from Fed Repo

Dealers indicated some $93BN in term repo submissions… for a total of $216BN in indicated liquidity. Of this, $168BN in liquidity was released between the overnight and fully-allotted $45BN term repo facility…  https://www.zerohedge.com/markets/funding-freeze-getting-worse-dealers-demand-record-216bn-liquidity-fed-repo

@ChadPergram: From colleague Sally Persons. Mnuchin after mtg w/Pelosi on coronavirus: I wouldn’t say it’s negotiations. We’re having discussions about various different policies… I think there’s a lot of interest on a bipartisan basis to get something done quickly.

Coronavirus can travel twice as far as official ‘safe distance’ and stay in air for 30 minutes, Chinese study finds

  • Authorities advise people to stay 1-2 metres apart, but researchers found that a bus passenger infected fellow travelers sitting 4.5 metres away
  • The scientists behind the research said their investigation also highlighted the importance of wearing face masks because of the length of time it can linger

https://www.scmp.com/news/china/science/article/3074351/coronavirus-can-travel-twice-far-official-safe-distance-and-stay

How is Germany controlling the coronavirus outbreak?

“Germany (is) working hard to retrace the steps of people who contracted the virus, and their methods of ‘tracking of the infection chains’ are helping in the reduction. All events with more than 1,000 participants are to be canceled,”… the average age rate of those who have died in Italy was 81 thus far, the majority of whom were already suffering underlying health problems.”… The Germans have taken this disease seriously since December…”   https://www.foxnews.com/health/germany-coronavirus-outbreak-no-deaths

OAN’s @RachelAcenas: VP Pence on CoronaVirus: “We want people to get tested. Over a million tests are out… we want the American people to know that they are covered through private insurance, Medicare, Medicaid, and there will be no surprise billing.”

In the meantime, the usual suspects are promoting fear and panic over the virus.

Coronavirus fears could imperil New York’s democracy, lawmakers warn  https://trib.al/tfKR90V

MIT Scientist Claims Coronavirus is a “Deep State Fraud”

“As an MIT PhD in Biological Engineering who studies & does research nearly every day on the Immune System, the coronavirus fear mongering by the Deep State will go down in history as one of the biggest fraud to manipulate economies, suppress dissent, & push MANDATED Medicine!” tweeted Ayyadurai..

https://ussanews.com/News1/2020/03/10/mit-scientist-claims-coronavirus-is-a-deep-state-fraud/

Joe Biden Tells Detroit Auto Worker ‘You’re Full of Sh**’ In Heated Argument over Gun Rights https://saraacarter.com/joe-biden-tells-detroit-auto-worker-youre-full-of-sh-in-heated-argument-over-gun-rights/

CBS News: Biden, accused of wanting to end 2nd Amendment, responds: “You’re full of sh**”

“This is not OK, alright?” the man said, to which Biden replied, “Don’t tell me that, pal, or I’m going to go out and slap you in the face.” “You’re working for me, man!” the worker said.  “I’m not working for you,” Biden said. “Don’t be such a horse’s ass.”…

https://www.cbsnews.com/news/biden-accused-of-wanting-to-end-2nd-amendment-responds-youre-full-of-shit/

We’re old enough to remember when the MSM and Dems told us that Biden would bring civility and decorum back to the presidency.

When asked later about his confrontation with the worker, Biden responded, “I’m surprised that, ah, Sanders is joining Trump.”  Joe’s countenance is alarming.  https://twitter.com/BoKnowsNews/status/1237464286022316033

WaPo: The new Biden: Shorter speeches (and less time for gaffes) (Hillary used the same MO)

His longest speech of the weekend, in the gym of Tougaloo College in Jackson, Miss., didn’t quite make 15 minutes… The less Biden strays from his streamlined and teleprompter-ed remarks, the less likely he is to make a gaffe that could damagingly ricochet around the Internet. Even with his shorter speeches, he’s made an unforced error or two…  https://www.washingtonpost.com/politics/the-new-biden-shorter-speeches-and-less-time-for-gaffes/2020/03/09/b5bacf28-61a9-11ea-845d-e35b0234b136_story.html

@Peoples_Pundit: This is not hyperbole. Joe Biden cannot hold a rally, a campaign event or give a speech without screwing up. The Democrat Establishment — with a heavy handicap from Corporate Big Media — convinced base voters he is more electable than Bernie Sanders.

    Take a look at the voter analysis or exit polls. It’s not at all hard to see. It jumps right out at you in almost every single state, save for states outside the South. Democrat voters do agree more w/ Bernie Sanders than Joe Biden. They were just convinced he could not win.

Joe Biden’s Medical Fitness Summary Released in December DID NOT INCLUDE a Cognitive Functioning Test — His Doctors Omitted It      https://www.thegatewaypundit.com/2020/03/revealed-joe-bidens-medical-fitness-summary-released-in-december-did-not-include-a-cognitive-functioning-test-his-doctors-omitted-it/

Yesterday, the CNN said that there will be no live audience and no spin room at the Arizona debate on Sunday at the request of the campaigns due to Covid-19.  Reporters will not get a chance to quiz Biden or Bernie advisors after the debate.  The campaign is becoming “Weekend at Bernie’s” starring Joe Biden.

Hunter Biden skipped his paternity court appearance citing Covid-19.  The virus is now a convenient excuse to avoid unpleasant or potentially detrimental situations.

Gallup: Approval of U.S. Congressional Republicans Tops Democrats [Due to impeachment]

  • Approval of congressional Republicans is up six points since October to 40%
  • Congressional Democrats’ approval now 35% vs. October reading of 38%
  • Mitt Romney now viewed more favorably by Democrats than Republicans

https://news.gallup.com/poll/287633/approval-congressional-republicans-tops-democrats.aspx

@ChadPergram: Dem NY Rep Grace Meng: I am shocked and dismayed that the GOP Leader in the House of Representatives has referred to the coronavirus as the ‘Chinese coronavirus.’  This labeling of the illness is embarrassing, disrespectful, offensive, and downright disgusting. It is shameful.  This virus is neither the ‘Chinese coronavirus’ nor the ‘Wuhan virus,’ as yet another GOP Mbr called it; it is the coronavirus – or COVID-19, Wrongly inserting ‘Chinese’ into the name of this disease only reinforces the disparaging and negative stereotypes

 

[Rep.] Omar Calls Kevin McCarthy ‘Racist’ for Posting Information about ‘Chinese Coronavirus’

https://hannity.com/media-room/ilhan-erupts-omar-calls-kevin-mccarthy-racist-for-posting-information-about-chinese-coronavirus/

 

WELL THAT IS ALL FOR TODAY

I WILL SEE YOU TOMORROW NIGHT

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: