MARCH 18//EVERYTHING DOWN IN PRICE: GOLD, SILVER, BONDS, EURO THE POUND, THE CDN DOLLAR, ETC/ ONLY USA DOLLAR UP AND VIX// GOLD DOWN $48,00 TO $1477.20//SILVER DOWN 75 CENTS TO $11.74//DOW DOWN 1338.46 POINTS

GOLD::$1477.20  DOWN $48.00

 

 

Silver:$11.74//DOWN 75 CENTS (COMEX TO COMEX CLOSING)

 

A FUNNY CLIP ON THE CORONAVIRUS

Closing access prices:

 

 

 

Gold : $1485.00

 

SILVER:  $11.97

 

 

 

 

COMEX DATA

 

 

 

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

today RECEIVING: 0/3

DLV615-T CME CLEARING
BUSINESS DATE: 03/17/2020 DAILY DELIVERY NOTICES RUN DATE: 03/17/2020
PRODUCT GROUP: METALS RUN TIME: 22:17:00
EXCHANGE: COMEX
CONTRACT: MARCH 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,524.900000000 USD
INTENT DATE: 03/17/2020 DELIVERY DATE: 03/19/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
435 H SCOTIA CAPITAL 1
657 C MORGAN STANLEY 2
800 C MAREX SPEC 3
____________________________________________________________________________________________

TOTAL: 3 3
MONTH TO DATE: 1,788

 

 

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

TOTAL NUMBER OF NOTICES FILED SO FAR:  1788 NOTICES FOR 178800 OZ  (5.614 TONNES)

 

 

 

 

SILVER

 

FOR MARCH

 

 

60 NOTICE(S) FILED TODAY FOR 300,000  OZ/

total number of notices filed so far this month: 4055 for 20,275,000 oz

 

BITCOIN MORNING QUOTE  $5129 DOWN $135 

 

BITCOIN AFTERNOON QUOTE.:$5339 UP 49

GLD AND SLV INVENTORIES:

 

GLD: 929.84 TONNES OF GOLD//NO  CHANGES:

 

MY GOODNESS:  THE SLV BOYS MUST BE CLAIRVOYANT

A MONSTROUS 12.035 MILLION OZ WAS ADDED WITH SILVER DOWN 75 CENTS

SLV: 365.238 MILLION OZ./

 

 

 

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Let us have a look at the data for today

 

 

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IN SILVER THE COMEX OI FELL BY A STRONG SIZED 2061 CONTRACTS FROM 168,743 DOWN TO 166,682 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020.  THE LOSS IN OI OCCURRED WITH OUR HUGE 20 CENT LOSS IN SILVER PRICING AT THE COMEX. WE HAD ZERO LONG LIQUIDATION,  AS ALL OF THE LOSS IN OI IS DUE TO  BANKER SHORT COVERING PLUS AN ATMOSPHERIC EXCHANGE FOR PHYSICAL ISSUANCE AND A STRONG INCREASE IN AMOUNT STANDING AT THE COMEX. WE HAD A HUGE NET GAIN IN OUR TWO EXCHANGES OF 7370 CONTRACTS  (SEE CALCULATIONS BELOW)

 

 

 

 

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

; MARCH:  00 AND MAY: 9268 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  9268 CONTRACTS. WITH THE TRANSFER OF 9268 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 9268 EFP CONTRACTS TRANSLATES INTO 28.25 MILLION OZ  ACCOMPANYING:

1.THE 20 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

21.57  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 20 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE   UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE  SILVER LONGS FROM THEIR POSITIONS. AS WE DID HAVE A HUGE NET GAIN OF 7370 CONTRACTS OR 36.85 MILLION OZ ON THE TWO EXCHANGES!

 

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

52,987 CONTRACTS (FOR 13 TRADING DAYS TOTAL 52,987 CONTRACTS) OR 264.935 MILLION OZ: (AVERAGE PER DAY: 4075 CONTRACTS OR 18.216 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR: 264.935 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 31.22% 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:          706.145 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…..          264.935 MILLION OZ (13 TRADING DAYS AND ALREADY SURPASSED FEB AND JAN MONTHLY TOTALS)

 

 

RESULT: WE HAD A STRONG SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2061,  WITH THE $0.20 LOSS IN SILVER PRICING AT THE COMEX /TUESDAY… THE CME NOTIFIED US THAT WE HAD AN ATMOSPHERIC SIZED EFP ISSUANCE OF 9,268 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 AN ATMOSPHERIC :  7157 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (WITH THE 20 CENT FALL IN PRICE

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 9268 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 2061 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A  20 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $12.49 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY AS WELL AS A HUGE INCREASE IN QUEUE JUMPING!! 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.8340 BILLION OZ TO BE EXACT or 119% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 60 NOTICE(S) FOR  300,000 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: 21.57 MILLION OZ
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A CONSIDERABLE BUT SMALLER THAN EXPECTED 2747 CONTRACTS TO 573,925 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  LOSS OF COMEX OI OCCURRED WITH OUR MONSTROUS GAIN IN PRICE OF $37.60 /// COMEX GOLD TRADING// TUESDAY// WE,  HAD CONSIDERABLE BANKER SHORT COVERING ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING AN ATMOSPHERIC  EX. FOR PHYSICAL ISSUED AND YET THIS WAS COUPLED WITH THAT STRONG RISE IN PRICE.  ON THE TWO EXCHANGES DESPITE THE HUGE FALL IN PRICE, WE GAINED A HUMONGOUS 17,831 CONTRACTS  (55.46 TONNES)

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS AND CRIMINALLY SIZED 15,084 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 15,084. MAY: 0, AND JUNE. 0 AND ALL OTHER MONTHS ZERO//TOTAL: 15,084.  The NEW COMEX OI for the gold complex rests at 573,925. 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 STRONG INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 17,831 CONTRACTS: 2747 CONTRACTS INCREASED AT THE COMEX  AND 15,084 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 17,831 CONTRACTS OR 55.46 TONNES. TUESDAY, WE HAD A HUGE GAIN OF $37.60 IN GOLD TRADING.…..

AND WITH THAT HUMONGOUS GAIN IN  PRICE, SURPRISINGLY WE STILL HAD A HUGE SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 55.46  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (GAIN $37.60). AND IT SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WERE UNSUCCESSFUL AS WE HAD A STRONG GAIN IN OUR TWO EXCHANGES:

SEE BELOW:

 WE HAD  A HUMONGOUS INCREASE IN EXCHANGE FOR PHYSICALS  (15,084) ACCOMPANYING THE SMALLER THAN EXPECTED GAIN IN COMEX OI.(2747 OI):  TOTAL GAIN IN THE TWO EXCHANGES:  17,831 CONTRACTS.  WE NO DOUBT HAD HUGE BANKER SHORT COVERING AND NO LONG LIQUIDATION…..COUPLED WITH THAT  COMEX OI GAIN

 

 

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.”

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAR : 242,596 CONTRACTS OR 24,259,600 oz OR 754.57 TONNES (13 TRADING DAYS AND THUS AVERAGING: 18,661 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 13 TRADING DAY(S) IN  TONNES: 754.57 TONNES

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

THUS EFP TRANSFERS REPRESENTS 754.57/3550 x 100% TONNES =21.26% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS EXPLODED THIS MONTH.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   1978.54  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE SO FAR   754.57  TONNES  (//(13 TRADING DAYS//AND A NEW ALL TIME RECORD ISSUANCE)

 

 

 

 

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

 

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

1.Today, we had the open interest in SILVER FELL BY A STRONG SIZED 2061 CONTRACTS FROM 168,978 DOWN TO 166,682 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 1) BANKER SHORT COVERING , 2) THE ISSUANCE OF AN ATMOSPHERIC NUMBER OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A HUGE INCREASE IN SILVER OZ STANDING AT THE COMEX WITH SOME AMOUNT OF LONG LIQUIDATION

 

EFP ISSUANCE 9268

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: 9268; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 9268 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 1898 CONTRACTS TO THE 9268 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A MONSTROUS GAIN OF 7370 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  36.85 MILLION OZ!!! AND 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: 21.57 MILLION OZ

 

 

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 20 CENT FALL IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD AN ATMOSPHERIC SIZED 9,268 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)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 50.88 POINTS OR 1.83%  //Hang Sang CLOSED DOWN 971.91 POINTS OR 4.18%   /The Nikkei closed DOWN 284.98 POINTS OR 1.68%//Australia’s all ordinaires CLOSED DOWN 6.26%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0394 /Oil UP TO 24.35 dollars per barrel for WTI and 37.07 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0394 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0534 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

 

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

iv) Swamp commentaries)

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

 

LET US BEGIN:

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A SMALLER THAN EXPECTED 2,747 CONTRACTS TO 573,925 MOVING CLOSER TO OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS RISE IN OI WAS SET WITH A STRONG GAIN OF $37.60 IN GOLD PRICING //TUESDAY’COMEX TRADING//). HOWEVER WE ALSO HAD AN ATMOSPHERIC EFP ISSUANCE (15,084 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2) ZERO LONG LIQUIDATION ……AS OUR TWO EXCHANGES ROSE HUGELY IN TOTAL OPEN INTEREST..WITH THE HUGE GAIN  IN PRICE.  BASICALLY LONGS JUST TRANSFERRED OVER TO LONDON COUPLED WITH CONSIDERABLE BANKER SHORT COVERING AT THE COMEX

 

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 15,084 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 15,084, MAY: 0  JUNE : 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 15,084 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:  17,831 TOTAL CONTRACTS IN THAT 15,084 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 2747 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  COMEX OI DECLINE)

 

 

THE BANKERS WERUNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE BY $37.60). THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES 55.46 TONNES WAS MAINLY DUE TO BANKER SHORT COVERING AND ISSUANCE OF EXCHANGE FOR PHYSICAL ISSUANCE. 

 

 

NET GAIN ON THE TWO EXCHANGES ::  17,891 CONTRACTS OR 1,78,9100 OZ OR  55.46 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:  573,925 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 57.39 MILLION OZ/32,150 OZ PER TONNE =  1785 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1785/2200 OR 81.13% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 255,901 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:

524,009 contracts//

 

 

 

INITIAL standings for  MARCH/GOLD

MARCH 18

 

 

 

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
2,418.997 oz
Brinks
Deposits to the Dealer Inventory in oz nil oz

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
3 notice(s)
 300 OZ
(0.0093 TONNES)
No of oz to be served (notices)
81 contracts
(8100 oz)
0.2615 TONNES
Total monthly oz gold served (contracts) so far this month
1788 notices
178800 OZ
5.5614 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

we had 0 dealer entry:

We had 1 kilobar entries

 

 

 

total dealer deposits:nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan: 0  oz

 

ii) Into everybody else: 0

 

 

 

 

total deposits:  0  oz

 

 

we had 1 gold withdrawals from the customer account:

i) Out of Brinks: 2418.947 oz

 

 

total gold withdrawals;  2418.947   oz

 

ADJUSTMENTS: 

Out of JPM:  48,225.000 oz was adjusted out of the CUSTOMER and this lands into the DEALER account of JPM
THIS IS A KILOBAR ENTER AND A PHONY!!

 

this is a phony settlement using phony kilobars.

 

 

 

 

The front month of MARCH saw its open interest register 84 contracts for a GAIN of 20 contracts.. Surprisingly we had 60 notices filed on TUESDAY so we gained 80 contracts or an additional 8000 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 HAD  a LOSS of 8038 contracts DOWN to 235,683 contracts

May saw its ANOTHER LOSS of 319 contracts to stand at 308.

June saw a GAIN of 10,120 contracts up to 226,357

 

 

We had 3 notices filed today for 300 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 0 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 (1788) x 100 oz , to which we add the difference between the open interest for the front month of  MAR. (84 CONTRACTS ) minus the number of notices served upon today (3 x 100 oz per contract) equals 186,900 OZ OR 5.8134 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 (1788)x 100 oz)  + (84 OI for the front month minus the number of notices served upon today (3 x 100 oz )which equals 186,900 oz standing OR 5.8134 TONNES in this active delivery month which is  a great amount for gold standing for a MAR. delivery month.

We gained 80 contracts or 8000 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

380,014.443 oz PLEDGED  MARCH 2020  JPMORGAN:  11.8200 TONNES

TOTAL PLEDGED GOLD NOW IN EFFECT:  556,225.90  OZ OR 17.3007  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 37.149 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………………………………………………………..              5.8134 TONNES

 

total: 161.73 tonnes

 

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 9 MONTHS OF SETTLEMENTS WE HAVE 25,709 TONNES SETTLED

 

 

IF WE ADD THE 9 DELIVERY MONTHS: 161.73  tonnes

 

Thus:

161.73 tonnes of delivery –

25.709 TONNES DEEMED SETTLEMENT

 

=136.02 TONNES STANDING FOR METAL AGAINST 39.209 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,768,581.625 oz or  55.01 tonnes
which  includes the following:
a) pledged gold held at HSBC   which cannot settled upon   176,211.457 oz x ( 5.4807 TONNES)//
b) pledged gold held at JPMorgan (added March 2020) which cannot be settled upon:  380,014.443 oz (or 11.820 tonnes)
total pledged gold:  508,000.900 oz or 17.30 tonnes
thus:
registered gold that can be used to settle upon:1,260,598.0  (39.209 tonnes)
true registered gold  (total registered – pledged tonnes  1,260,598.0  (39.209 tonnes)
total registered, pledged  and eligible (customer) gold;   8,661,900.593 oz 269.421 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

 

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..

 

 

end

And now for silver

And now for the wild silver comex results

Total COMEX silver OI FELL BY A CONSIDERABLE SIZED 2061 CONTRACTS FROM 168,743 DOWN TO 166,682 (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 20 CENT DECREASE IN PRICING/TUESDAY.  THE LOSS IN OI WAS MITIGATED WITH 1)  A HUGE ISSUANCE OF EXCHANGE FOR PHYSICALS 2) HUGE INCREASE IN SILVER OZ STANDING AT THE COMEX, 3)  HUGE  BANKER SHORT COVERING COUPLED WITH WE ZERO LONG LIQUIDATION. 

 

 

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 319 CONTRACTS  WITH A LOSS OF 56 CONTRACTS. WE HAD 24 CONTRACTS ISSUED YESTERDAY SO WE LOST 32 CONTRACTS OR 160,000 ADDITIONAL OZ WILL NOT STAND FOR DELIVERY AS THEY  MORPHED INTO LONDON BASED FORWARD CONTRACTS AS WELL AS ACCEPTING A FIAT BONUS. THEY GAVE UP TRYING TO FIND PHYSICAL SILVER ON THIS SIDE OF THE POND.

 

THE NEXT CONTRACT MONTH OF APRIL SAW A LOSS OF 4 CONTRACTS DOWN TO 445 CONTRACTS. THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 2585 DOWN TO 107,854

 

 

We, today, had  60 notice(s)  for 300,000, OZ for the MAR, 2019 COMEX contract for silver

THE  DELIVERY MONTH OF MARCH.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
MARCH 18/2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 727,669.500 oz
BRINKS
CNT

 

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
662,466.08 oz
Scotia
No of oz served today (contracts)
60
CONTRACT(S)
(300,000 OZ)
No of oz to be served (notices)
259 contracts
 1295,000 oz)
Total monthly oz silver served (contracts)  4055 contracts

20,275,000 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: 0 oz

total dealer withdrawals: 0 oz

i)we had  1 deposits into the customer account

into JPMorgan:   0

into Scotia: 662,466.08 oz

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 49.62% of all official comex silver. (160.819 million/323.442 million

 

 

 

total customer deposits today: nil   oz

 

we had 2 withdrawals out of the customer account:

i) Out of CNT:  619,969.01 oz

ii) Out of Brinks: 107,700.490  oz

 

 

 

 

 

 

total withdrawals; 727,669.500  oz

We had 0 adjustments:

 

total dealer silver:  80.212 million

total dealer + customer silver:  321.983 million oz

 

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The total number of notices filed today for the MAR 2020. contract month is represented by 60 contract(s) FOR 300,000 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 4055 x 5,000 oz = 20,275,000 oz to which we add the difference between the open interest for the front month of MAR.( 319) and the number of notices served upon today 60 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 4055 (notices served so far) x 5000 oz + OI for front month of MAR (319)- number of notices served upon today (60) x 5000 oz equals 21,570,000 oz of silver standing for the MAR contract month.

WE LOST 32 CONTRACTS OR 160,000 OZ WILL NOT 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: 112,994 CONTRACTS //extremely high

 

 

CONFIRMED VOLUME FOR YESTERDAY: 130,205 CONTRACTS..,

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 130,205 CONTRACTS EQUATES to 651 million  OZ  93.1% 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

NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV RISES TO +3.67% ((MARCH 18/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO+3.67% to NAV:   MAR 18/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 3.67%

(courtesy Sprott/GATA

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

NAV 13.24 TRADING 12.50///DISCOUNT 5.61

 

END

 

 

And now the Gold inventory at the GLD/

MARCH 18/WITH GOLD DOWN $48.00: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 929.84 TONNES

MARCH 17/WITH GOLD UP $37.60: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.75 TONNES FROM GLD INVENTORY//INVENTORY RESTS AT 929.84 TONNES

MARCH  16/WITH GOLD DOWN $30.00/ A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 12.59 TONNES/INVENTORY RESTS AT 931.59 TONNES

MARCH 13//WITH GOLD DOWN $73.60: A HUGE WITHDRAWAL OF 9.02 TONNES OF PAPER GOLD FROM THE GLD//

INVENTORY RESTS AT 944.18 TONNES

MARCH 12/WITH GOLD DOWN $55.05 TODAY:  NO CHANGE IN GOLD INVENTORY AT THE GLD/953.26 TONNES

 

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)

 

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MARCH 17/2020/Inventory rests tonight at 929.84 tonnes

*IN LAST 781 TRADING DAYS: -7.54 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 681 TRADING DAYS;+ 158.59. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

Now the SLV Inventory/

MARCH 18//WITH SILVER DOWN 75 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MONSTROUS 12.035 MILLION PAPER OZ ADDED INTO INVENTORY//INVENTORY RESTS AT 365.238 MILLION OZ//

MARCH 17/WITH SILVER DOWN 20 CENTS TODAY; A BIG CHANGES IN SILVER INVENTORY AT THE SLV; A WITHDRAWAL OF 3.735 MILLION OZ FROM THE SLV INVENTORY: INVENTORY RESTS AT 353.203 MILLION OZ///

MARCH 16/WITH SILVER DOWN 177 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESETS AT 356.938 MILLION OZ//

MARCH 13//WITH SILVER DOWN 155 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.893 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 356.938 MILLION OZ;

MARCH 12/WITH SILVER DOWN 77 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.119 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 359.828 MILLION OZ

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 18.2020:

SLV INVENTORY RESTS TONIGHT AT  365.238 MILLION OZ.

 

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END

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 0.77/ and libor 6 month duration 0.91

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

G0LD LENDING RATE: – .04

 

XXXXXXXX

12 Month MM GOFO
+ 0.76%

LIBOR FOR 12 MONTH DURATION: 0.86

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.10

end

 

 

end

 

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

Gold and Silver Prices Fall Despite Bullion Shortages and Rising Premiums

Gold in USD – 15 Years (including the brief Lehman sell off in October 2008)

◆ Gold and particularly silver prices have fallen sharply in recent days due to massive concerted selling in the futures market which is being attributed to margin call selling.

◆ Gold and silver prices are down by 4.5% and 24% respectively in March despite unprecedented demand for gold and silver bullion globally which is leading to a shortage of gold and silver coins and bars, delivery issues and to sharply rising premiums on coins and bars.

◆ The real world forces of limited physical supply of and significant global demand for precious metals versus the selling of electronic futures is resulting in a growing divergence between the spot price and the actual price that coins and bars are sold at. Hence, premiums on gold and particularly silver coins and bars are rising significantly.

◆ Depending on whether it is gold or silver, what type of coin or bar and indeed the weight, there are varying premiums and in recent days due to massive demand and limited finite supply, premiums have increased significantly across the board as the physical market disconnects from the make believe electronic and paper gold and silver markets

◆ Most brokers have been cleaned out of supplies and are desperately trying to source in the secondary market and from clients. With the result that premiums on the sell side are also rising significantly as brokers are willing to pay higher premiums to buy back in stock.

◆ Most refineries and government mints have also seen a massive depletion of their coin and bar inventories and are now working hard to mint and fabricate the next batch or runs of coins and bars.

◆ The U.S. Mint has announced that they effectively sold out of Silver Eagles and their silver bullion coins inventory and are going to have to ship out what can be made in the next fabricating and minting runs. Hence why there are massive delays in delivering and some dealers have suspended deliveries and sales.

◆ We have seen silver bullion coins with premiums as high as 50% to 100% over spot with spot prices at $13/oz and silver bullion coins being sold for over $22/oz.

◆ As an example of this, many of the wholesalers have been cleaned out of all inventories of the popular gold bullion coins. There are limited supplies of certain coins and premiums have gone up very significantly. An example of this is wholesale premiums on Gold Eagles and Gold Buffalo’s have moved up to 4% and Krugerrand’s are at 3% with major dealers.

◆ Due to our extensive network of relationships with government mints and refineries, we are still able to source most gold bullion coins (1 oz) and indeed gold bars in 1 oz, 1 kilo and 400 oz formats. However, demand remains very high and this could change in the coming days.

Watch interview here

NEWS and COMMENTARY

Gold reverses course to fall 1% as flight for cash resumes

New York Fed pledges to Daily Offer $1 TRILLION in overnight repo loans this week

Stock futures plummet, triggering a trading halt amid uncertainty at government reaction to virus outbreak

ECB says it has more firepower to fight crisis, European Stability Mechanism has a 410 billion euro capacity

Italian 10-year bond yields jump over 60 basis points, above 3% w/ spreads spiking spiked to 315 bps to German 10-year

Gold is setting records dating back over 5,000 years — against silver

Violent price divergences between physical and metal futures prices

GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)

17-Mar-20 1472.35 1536.20, 1212.04 1275.66 & 1331.00 1400.40
16-Mar-20 1504.65 1487.70, 1223.28 1210.54 & 1346.36 1338.93
13-Mar-20 1588.15 1562.80, 1258.61 1248.83 & 1422.66 1407.30
12-Mar-20 1636.65 1570.70, 1284.28 1246.35 & 1457.11 1410.96
11-Mar-20 1662.50 1653.75, 1284.78 1279.01 & 1468.65 1462.25
10-Mar-20 1657.40 1655.70, 1269.40 1273.23 & 1460.00 1455.86
09-Mar-20 1676.60 1672.50, 1280.75 1272.94 & 1469.04 1462.10
06-Mar-20 1687.00 1683.65, 1296.80 1290.85 & 1490.13 1484.31
05-Mar-20 1647.45 1659.60, 1274.47 1284.70 & 1474.63 1482.69
04-Mar-20 1644.80 1641.85, 1286.73 1281.63 & 1475.06 1477.83

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ii) Important gold commentaries courtesy of GATA/Chris Powell

The big story last night

London’s Financial Times/GATA)

Fed will monetize stocks for its primary dealer banks

 Section: 

Fed to Lend Against Stocks and Bonds in Bid to Stabilize Markets

By James Politi, Brendan Greeley, Colby Smith, and Joe Rennison
Financial Times, London
Tuesday, March 17, 2020

The US Federal Reserve took new action tonight to shore up financial markets by allowing approved dealers in government debt to borrow cash secured against some stocks, municipal debt, and higher-rated corporate bonds.

The Fed said in a statement that the facility would “allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households” in the face of the coronavirus outbreak.

… 

The new facility will offer funding with maturities up to 90 days starting on March 20 and be in place for at least six months. Credit extended under the new facility for primary dealers would be collateralised by a “broad range” of investment grade debt, including commercial paper, municipal bonds, and equities. The interest rate charged would be the discount rate of 25 basis points.

The new facility was established with the approval of Steven Mnuchin, the US Treasury secretary. “The global coronavirus outbreak has contributed to significant financial market volatility,” Mr. Mnuchin said in a statement, adding that the move would “help address illiquidity, mitigate disruptions in funding markets, support smooth market functioning, and help facilitate the availability of credit to American workers and businesses.” …

… For the remainder of the report:

https://www.ft.com/content/cf485398-689d-11ea-800d-da70cff6e4d3

end

New York Fed pledges $1 trillion a day in overnight repo loans

 Section: 

By Jonnelle Marte
Reuters
Tuesday, March 17, 2020

https://www.reuters.com/article/us-health-coronavirus-repo-daily/new-yor…

The New York Federal Reserve said it will make up to $1 trillion a day available for loans in the repo market for the remainder of this week.

The Fed said it will offer up to $500 billion in overnight repo loans each morning and an additional $500 billion in overnight repo loans each afternoon.

This is the latest effort from the central bank to keep markets operating smoothly despite volatility related to the coronavirus pandemic. Earlier today the Fed said it would reinstate a funding facility used during the 2008 financial crisis to get credit directly to businesses and households.

On Sunday the U.S. central bank slashed rates to near zero and announced it would purchase $700 billion in Treasuries and mortgage-backed securities.

end

Crooks!!
(courtesy Pam and Russ Martens)//GATA..a must read..

Fed Announces Program for Wall Street Banks to Pledge Plunging Stocks to Get Trillions in Loans at ¼ Percent Interest

By Pam and Russ Martens
Wall Street on Parade
Wednesday, March 18, 2020

The Federal Reserve Board of Governors announced at 6 p.m. last evening that it is following the direction of Steve Mnuchin, the former foreclosure king who now serves as U.S. treasury secretary, and authorizing the reinstatement of a hideously operated, multi-trillion-dollar bailout program for Wall Street’s trading houses known as the Primary Dealer Credit Facility (PDCF).

Veterans on Wall Street think of it as the cash-for-trash facility, where Wall Street’s toxic waste from a decade of irresponsible trading and lending will be purged from the balance sheets of the Wall Street firms and handed over to the balance sheet of the Federal Reserve — just as it was during the last financial crisis on Wall Street.

… 

The Fed fought for years in court to keep the details of the PDCF and its sibling Wall Street bailout programs a secret from the American people. Thanks to an amendment attached to the Dodd-Frank financial reform legislation of 2010 by Sen. Bernie Sanders, the Government Accountability Office was instructed to conduct an audit of the PDCF and the rest of the alphabet soup of programs the Fed set up to secretly funnel $29 trillion to Wall Street, the foreign banks that were counterparties to their failing derivative trades, central banks, and even a hedge fund that was shorting the Wall Street banks’ own stocks.

We learned from the GAO audit that the Primary Dealer Credit Facility was the largest Wall Street bailout program during the financial crisis. …

… For the remainder of the report:

https://wallstreetonparade.com/2020/03/fed-announces-program-for-wall-st…

iii) Other physical stories:

Robert to me:

The virus and the panic and hysteria is destroying capital markets

While it maybe callous to say, so what of reported numbers of virus infections and resultant deaths; the reality is that more people die from the common 🤧 flu each year and we do not go into isolation. So why now?
Sorry 😐 I do not buy this hysteria being flaunted by the media as being real or deadly enough or a reason to destroy the capital markets and thereby country economies and people’s lives.
In real time, one can see occurring losses on correlation desks, in hedge funds, and relative value funds are now several $100B and climbing fast. And that is nothing to the carnage in stocks where I am seeing household name companies trade at less than 50% of book value, being multiples down from where they were 2 weeks ago. Banks have started to say no to both private and public companies on credit line drawdowns. People forget banks provide fair weather umbrellas ☂. Liquidations of sellable assets in capital markets is now a daily occurrence.
It almost smells like actions to create a deliberate power grab of some kind while Central banks parade their lack of ability on a public stage. Zero rates are meaningless when there is no confidence. In Europe, the years of non existent interest rates has not only devastated Pension funds it has created a huge mess for banks and insurers alike. One might think people learn, and businesses have been starved of capital for growth and development. And now travel restrictions are in place so even if you have a business in Europe that needs personal attention, you cannot get there. Not what I call a confidence booster to cause one invest. Which perhaps explains the mass exodus from the Euro into USD which is driving up the value of the dollar making American goods more expensive and thus damping external export sales. Right now in all currencies, all moves are to the dollar. This is a time when a margin call is being made on the world to pay both interest and principal on USD denominated debt at a time of declining sales. This is causing an absolute bloodbath with companies having to pay in scarce dollars which are becoming more expensive by the day.
At the same time, we see whining companies looking for salvation after enriching shareholders with debt financed buybacks. Is there not a price to pay for such actions that took jobs and new developments away from economies and employees and other related stakeholders while enriching the executive and shareholders? Perhaps the same banks who lent such funds should pay the dues of being greedy and stupid to do so in the first place. Misguided corporate actions are not a reason to encourage or reward.
Next week, could well see a bank holiday in Europe as they move to a digital currency, as the real financial pain will come in April in the west.
And as I watch the little guy angst, be it the coffee shop or dry cleaner or restaurant struggle, if you can spare a dime, spent a dollar and help them out by buying from them. They are on the front line and both them and their employees will suffer the most, and they are grateful if you can give, in these times. And do not forget the homeless, who just found leaner times.Cheers
Robert
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:7.0354/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  7.0534   /shanghai bourse CLOSED DOWN 50.88 POINTS OR 1.83%

HANG SANG CLOSED DOWN 971.91 POINTS OR 4.18%

 

2. Nikkei closed DOWN 284.98 POINTS OR 1.68%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 100.34/Euro FALLS TO 1.0928

3b Japan 10 year bond yield: RISES TO. +.07/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.85/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 24.35 and Brent: 27.07

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.26%/Italian 10 yr bond yield UP to 2.61% /SPAIN 10 YR BOND YIELD DOWN TO 1.31%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.87: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 4.09

3k Gold at $1507.50 silver at: 12.13   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 423/100 in roubles/dollar) 79.69

3m oil into the 24 dollar handle for WTI and 27 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.73 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 .9670 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0564 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.26%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 1.12% early this morning. Thirty year rate at 1.71%

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

6.  TURKISH LIRA:  UP  TO 6.4505..

The Insanity Continues: Futures Crash Limit Down, S&P Indicated 6% Lower

After surging 6% yesterday, with the Dow briefly rising more than 1,000 point, traders once again got a reminder of what record high VIX means when overnight futures crashed again – despite the Fed’s launch of two Lehman-era crisis facilities, the PDCF and the CPFF – this time the selloff sparked by Mnuchin’s dire warning that the unemployment rate could hit a depression-era 20% in the absence of government intervention – and again plunged limit down with the SPY ETF currently hinting at a -6% open.

Putting the latest market move in context… well, see for yourself:

  • March 12: Limit Down
  • March 13: Limit Up
  • March 16: Limit Down
  • March 17: Limit Up
  • March 18: limit Down

“A rise of 1,000 points in Dow is something you see only during a financial crisis. It is not a good sign,” said Tomoaki Shishido, senior fixed income strategist at Nomura Securities. “A rise of 100 points would be much better for the economy.”

“Another remarkable day in what is clearly fin-de-regime,” Rabobank’s global strategist Michael Every wrote. “Things have already irrevocably changed and whipsaw market action reflects that this is the case. The only issue is how much further they change from here, and hence where markets settle.”

With the market rejecting both the Trump admin’s latest $1.3TN fiscal stimulus proposal and the Fed’s panicked attempts to restore stability, there was no place to hide and European stocks (which at least were not halted) plunged alongside US futures: the Euro Stoxx 50 plunged -5.2%, Dax -4.6%, FTSE 100 -5.1% with industrial-goods and construction companies leading the decline and telecoms the only sector in the green. The Stoxx Europe 600 Index fell 4.6% as of 10:30am in London, reaching a new session low, as miners, constructors and industrial stocks drop more than 6%.

Asian stocks also plunged, led by energy and finance, after ending flat in the last session. Most markets in the region were down, with Australia’s S&P/ASX 200 dropping 6.4% and South Korea’s Kospi Index falling 4.9%, while Thailand’s SET gained 0.2%. The Topix gained 0.2%, with Fuji Pharma and Fuso Pharma rising the most. The Shanghai Composite Index retreated 1.8%, with HNA Innovation and Shanghai Guangdian Electric Group posting the biggest slides.

Overnight, Britain launched a 330 billion pounds ($400 billion) rescue package for businesses threatened with collapse while France, which went into lockdown on Tuesday, is to pump 45 billion euros ($50 billion) of crisis measures into its economy to help companies and workers. 

Still, forecasters at banks are projecting a steep economic contraction in at least the second quarter as governments take draconian measures to combat the virus, shutting restaurants, closing schools and calling on people to stay home.

In rates, Treasury and European bond yields higher everywhere as markets price in the coming MMT “helicopter money” apocalypse, with the U.S 10-yr yield surging as much as +16bps at 1.23%, as the curve continues to steepen sharply; German yields jumped from +8bps to 19bps, and also steepened.

“While markets react to positive news on stimulus, that doesn’t last long. I think there are a lot of banks and investors whose balance sheet was badly hit and they still have lots of positions to sell,” said Shin-ichiro Kadota, senior currency and rates strategist at Barclays.

The planned U.S. stimulus could amount to as much as $1.3 trillion, meant to stave off the worst impact of a crisis that already looks set to plunge many of the world’s economies into recession. Meantime, the Federal Reserve reintroduced additional crisis-era tools to stabilize financial markets. Those responses came after stresses appeared in the short-term funding markets.

“I don’t think we’re out of the woods yet in terms of liquidity,” Mark Konyn, chief investment officer at AIA Group in Hong Kong, told Bloomberg TV. “It’s a question of when the fiscal measures will have the most efficacy.”

In Europe, speculation grew around the issuance of joint euro zone “coronavirus” bonds or a European guarantee fund to help member states finance urgent health and economic policies. That lifted high-grade euro zone government bonds yield, led by Germany, where yields rose nine basis points to the highest level in over a month at -0.342%.

In Italy, bond yields exploded 53bps-48bps higher across the curve, with 10-yr yield highest since Dec. 2018 amid fears of a bond issuance spree coupled with concerns that the ECB is losing control of the bond market.

As Bloomberg put it “with about $1.14 trillion in fiscal support pledged or under consideration to offset the economic shock from the pandemic, investors are pricing in the risk of a surge in government borrowing.” Another way of putting it is that helicopter money has always been the beginning of the end, as both stocks and bonds crater.  The Trump administration is moving toward a big fiscal package, while nations from the U.K. to France and Italy also unveiled plans to spend their way out of the crisis. Meanwhile, countries continue to ramp up measures to limit travel in a bid to contain the spreading virus.

“The missing fundamental ingredient for a sustainable recovery in risk appetite is some evidence that the growth of global Covid-19 infection rates is peaking,” said Paul O’Connor, head of multi-asset at Janus Henderson Investors. “Clearly, we are not there yet.”

In FX, the dollar surge is unstoppable and the Bloomberg USD index rose +0.5% to 1,2763 with G-10 gains led by JPY and CHF on haven demand, NZD and AUD the biggest laggards.

Traditional safe-haven assets such as gold were also under pressure as battered investors looked to unwind their damaged positions. Meanwhile, oil prices fell for a third session with U.S. crude futures tumbling to a 17-year low as Goldman cut its Brent price target to $20.

“Another remarkable day in what is clearly fin-de-regime,” Rabobank’s global strategist Michael Every wrote in a note.

 

 

Market Snapshot

  • S&P 500 futures down 3.7% to 2,403.50
  • STOXX Europe 600 down 2.7% to 283.30
  • MXAP down 2.5% to 127.34
  • MXAPJ down 3.9% to 410.50
  • Nikkei down 1.7% to 16,726.55
  • Topix up 0.2% to 1,270.84
  • Hang Seng Index down 4.2% to 22,291.82
  • Shanghai Composite down 1.8% to 2,728.76
  • Sensex down 4.4% to 29,238.22
  • Australia S&P/ASX 200 down 6.4% to 4,953.20
  • Kospi down 4.9% to 1,591.20
  • German 10Y yield rose 13.5 bps to -0.299%
  • Euro down 0.2% to $1.0981
  • Brent Futures down 1.5% to $28.30/bbl
  • Italian 10Y yield rose 18.8 bps to 2.175%
  • Spanish 10Y yield rose 16.4 bps to 1.197%
  • Brent Futures down 1.5% to $28.30/bbl
  • Gold spot down 1.9% to $1,499.03
  • U.S. Dollar Index up 0.1% to 99.69

Top Overnight News

  • The Trump administration is discussing a plan that could amount to as much as $1.2 trillion in spending — including direct payments of $1,000 or more to Americans within two weeks — to blunt some of the economic impact of the widening coronavirus outbreak
  • Leaders around the world escalated their efforts to limit travel and stop the virus’s spread. European countries agreed to shut their borders to foreigners and Prime Minister Scott Morrison told Australian citizens not to travel abroad
  • Angela Merkel wouldn’t rule out joint European Union debt issuance to help contain the impact of the coronavirus, an apparent softening of German opposition that could transform the finances of the 27-nation bloc
  • Oil briefly traded below its lowest settlement price in almost 17 years as the pandemic threatens to bring the global economy to a standstill
  • Japanese trade figures for February showed a continued slide in exports and a sharp plunge in Chinese imports as the virus outbreak slammed supply chains, choking off the flow of components feeding Japan’s factories and products for its stores
  • Joe Biden won the Democratic presidential primaries in Florida and Illinois Tuesday, as he looked to achieve amulti-state sweep that would give him a commanding lead over Bernie Sanders in the battle to secure the party’s presidential nomination
  • It is said that liquidity is a coward, it disappears at the first sign of trouble. What happened in Treasuries last week was one example of this, as problems in one small corner of the bond market helped spark a liquidity crisis in another that lead to a $5 trillion Federal Reserve promise to calm markets
  • Germany is standing by plans to invest record sums, even as the economic impact of coronavirus risks causing “considerable” disruption to the country’s budget prospects
  • The dramatic break below 60 U.S. cents for the Australian and New Zealand dollars is an ominous sign of deeper losses as two of the last major holdouts against quantitative easing race toward it.
  • Japan’s interest-rates swaps are seeing a mass exodus of foreign funds. The nation’s 30-year swap rate surged by more than 20 basis points, the most since 2008, on Wednesday, dramatically underperforming cash bonds.

Asian equity markets were indecisive as the region failed to sustain the rebound on Wall St from its worst sell-off since 1987, where sentiment was underpinned by efforts to address the coronavirus fallout including reports US plans stimulus of as much as USD 1.2tln consisting of a USD 300bln deferral in IRS payments and sending checks to citizens within 2 weeks, while the Fed also announced it will establish a commercial paper funding facility to support credit flow. ASX 200 (-6.4%) underperformed amid heavy losses in the tech and energy sectors, as well as a retreat in US equity futures after-hours which hit limit down, while Nikkei 225 (-1.6%) was initially positive following better than expected trade data despite Exports remaining at a contraction for the 15th consecutive month but the pared gains heading into the close. In terms of the notable stock movers, Fujifilm Holdings hit limit up after reports that China said the Co.’s influenza medicine was effective against coronavirus and are said to plan officially recommending the drug’s use for treatment, while SoftBank shares were at the other side of the spectrum on news it is backing away from part of the planned WeWork bailout. Hang Seng (-4.1%) and Shanghai Comp. (-1.8%) also conformed to the indecision and ahead of key earnings from Hong Kong heavyweight Tencent with broad selling later triggered after US equity futures hit limit down. Finally, 10yr JGBs declined as they tracked the recent losses in T-noted, and although prices initially rebounded off their lows after finding support at 152.00 and with the BoJ in the market for nearly JPY 1.2tln of JGBs heavily concentrated in 1yr-10yr maturities, this was short-lived and selling was then exacerbated on a break below the aforementioned support.

Top Asian News

  • China May Help Struggling Carmakers by Relaxing Emission Curbs
  • IndusInd Plunges by Record as Reassurances Fail to Calm Market
  • Wall Street’s New Virtual Workplace May Outlast the Virus
  • Japan’s Swap Rates Jump the Most Since 2008 as Funds Bail Out

Further detrimental losses seen in the European equity space [-5.9%] as optimism surrounding yesterday’s US intervention faded in overnight trade as virus fears continue to materialise, with Western countries’ operations coming to halt amid lockdown procedures in an attempt to slow the spread. Meanwhile, US equity futures have been locked in limit down since late-APAC trade following yesterday’s fleeting reprieve. Italy’s FTSE MIB (-2.5%) cushions some losses after Italy implemented a carpet ban on short-selling Italian stocks for three months. France’s CAC (-5.5%) fails to derive much support from its one-month short-sell ban. European sectors are mostly in the red, albeit defensives fare slightly better than cyclicals. Telecom names outperform drastically as consumers confined work-from-homes and self-quarantines exercise broadband use- with BT (+3.8%), Telecom Italia (+5.0%), and Orange (+5.1%) all benefitting as such. Energy meanwhile lags in the region, in-fitting with price action in the complex. Individual story-driven movers prove to be futile at this stage, although MTU Aero Engines (-17.9%), Rolls-Royce (-13.6%) experiences extra downside from broker downgrades.

Top European News

  • Italy’s Coronavirus Lockdown Came Only After a Tragic Denial
  • U.K. Grocers Ration Buying and Bulk Up Online to Deal With Virus
  • Europe Autos Fall as Feb. Sales Plunge Hints at FY Drop on Virus
  • Turkish Stocks Rise After Report of Erdogan Meeting With Bankers

In FX, demand for the Dollar is becoming insatiable and the scramble is stretching well beyond the realms of the currency markets, as stocks, bonds and commodities are dumped in near fire sale fashion. As a result, the index has posted a marginal new 2020 peak at 99.917 and it almost seems inevitable or destined to cross the 100.000 barrier at some stage.

  • NZD/CAD/AUD/GBP – The weakest G10 links and worst performers vs the Greenback as the funding and liquidity squeeze is compounded by renewed risk aversion, with the Kiwi now down under 0.5900, Loonie approaching 1.4350 and Aussie below 0.5950. Meanwhile, Sterling only gleaned brief support from the UK Government’s whopping additional coronavirus economic support package as Cable relinquished more big figures on the way through the psychological 1.2000 level, while Eur/Gbp has extended its rally beyond 0.9100 to circa 0.9175.
  • JPY/CHF/EUR – All displaying a degree of resilience and resistance to the general attraction of the Buck, but not impervious by any means with the Yen straddling 107.00, Franc pivoting 0.9600 and still wary of the SNB either sticking to its quarterly policy review timetable or deciding to strike early. On that note, the Euro has already digested the ECB’s latest policy measures and is now taking on board what EZ Governments have (left) to offer while keeping tabs on 1.1000.
  • SCANDI/EM – No surprise that the Scandinavian Crowns have fallen prey to the latest bout of risk aversion, while the Nok is also watching the steeper slide in crude prices anxiously along with the Mxn and Rub that has Brent weakness and spread to WTI convergence to contend with. However, some retracement in Eur/Nok after the Norges Bank more than trebled daily FX purchase on behalf of the Government and also noted that more oil revenue will have to be converted for financing anti-COVID-19 initiatives. Elsewhere, the Rand appears vulnerable to a test of 17.0000 ahead of SA retail sales data and post-CPI that was firmer than forecast, but not sufficient to alter consensus for a 50 bp SARB rate cut tomorrow. Sticking with Central Bank easing, not much respite for the Try from cheaper crude costs after the full point intermeeting CBRT move on Tuesday.
  • Norges Bank are to increase currency sales on behalf of the Norwegian Government; from NOK 500mln to an amount equivalent to NOK 1.6bln. (Newswires)

In commodities, WTI and Brent front-month futures continue to slide with both contracts bleeding below the USD 30/bbl mark – with the former declining below its YTD low of ~USD 27.40 and ts 2016 low of USD 26.06/bbl. Brent meanwhile sees its 2016 low of USD 27.10/bbl, having tested levels close to USD 28/bbl in early EU trade. Underlying themes remain unchanged, with the demand picture further deteriorates as the number of countries implementing lockdowns stack up in a bid to slow down virus contagion. Elsewhere, the breakdown amongst OPEC members provides further pressure for the complex, with ING expecting weak oil prices for a prolonged time as Saudi and Russia do not show signs of backing away from production hikes. Elsewhere, spot gold meanders around the USD 1500/oz mark as it clocks in losses of over USD 30/oz amid the ongoing liquidating issues. Finally, copper prices see further detrimental losses amid demand concerns, a firmer Buck, traders on the sidelines and the overall sentiment, with the red metal approaching USD 2/lb vs. Monday’s USD 2.52/lb high.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 55.4%
  • 8:30am: Housing Starts, est. 1.5m, prior 1.57m; Housing Starts MoM, est. -4.28%, prior -3.6%
  • 8:30am: Building Permits, est. 1.5m, prior 1.55m; Building Permits MoM, est. -3.23%, prior 9.2%

DB’s Jim Reid concludes the overnight wrap

As Prime Minister Boris Johnson said yesterday, “We must act like any wartime government and do whatever it takes to support our economy”. As more and more Governments use the war footing analogy, yesterday we published a short note looking at deficits in war time through history. During times of war over the last 200-300 years (there have been more than you’d think) annual deficits in the US and UK grew to over 10%. In WWI and WWII they were often 20% plus. If shutdowns of major economies continue for as long as is starting to be feared then governments are going to see deficits of war time magnitude due to fiscal injections, automatic stabilisers and loss of revenues. We would expect that the only way of calming people and markets around this would be for pure helicopter money where central bank’s balance sheets balloon to absorb the increased debt. This was always going to happen in the years ahead for reasons we’ve discussed in recent years but this crisis will likely accelerate this. See the full report here.

Indeed it was a day of helicopter hints with Trump’s administration wanting to give citizens $1000 (more below) and Mrs Merkel suggesting European finance ministers are considering joint debt issuance – something Germany has been perennially resistant to. One would imagine the ECB would be only too happy to buy such bonds. There’s no further news so far but it looks like we’re heading for the printing presses and looking for potential pilots. If you’re looking to be really positive longer-term then maybe this crisis brings European integration sooner than anyone could have imagined. A long way off for now but it’s easy to see how this virus will be an era defining moment for many things.

Indeed longer-term there’s part of us that wonders whether all these operations and eventual helicopter money will be inflationary when the dust settles. That’s another story for another day but the authorities have got the perfect excuse to try to create it as they’ll hardly be blamed for doing too much to help people over the duration of this crisis. As we discussed yesterday all moral hazard concerns will be firmly set aside due to the circumstances.

Back to the US and in terms of what we heard yesterday, the White House originally planned to push an $850bn stimulus package, but by the end of the day Treasury Secretary Mnuchin was discussing a plan worth up to $1.2tn. The biggest and potentially quickest form of stimulus would come from sending checks in excess of $1000 directly to people, with a potential overall cost of over $500bn in total. The checks, amounting to helicopter money, would see $250bn sent by the end of April, with a second wave of $250bn a month later if the national emergency order is not lifted. The secretary noted that they wanted to target the checks to those that needed them, but also stressed urgency. The proposed legislation also includes $300bn of provisions for small business loans, $200bn in stabilization funds, and tax deferrals for individuals and corporates making up the rest of the $1.2tn price tag. It should be noted this is an additional stimulus bill on top of the House approved one that made its way to the Senate yesterday. Mnuchin also warned that the US unemployment rate could hit 20% without the virus stimulus bill.

Speaking of stimulus, Japan’s government is considering a cash handout of at least JPY 12,000 ($112) per person. As a reminder, a similar handout was given during the financial crisis by the Japanese government. Meanwhile, Bloomberg is reporting that Canada will today unveil a package of c.CAD 30bn (about 1% of GDP). Canada’s PM Trudeau has said that the fiscal stimulus program will likely inject cash into businesses to keep employees on the payroll even if they aren’t working, as well as bolstering government benefits and unemployment programs. Meanwhile, to arrest the continued decline in stock prices Italy’s market watchdog banned short selling on all Milan stock markets for 3 months while regulators in Belgium banned short selling on Euronext Brussels until April 17. The measure is only applicable to companies listed on Euronext Brussels and Euronext Growth. South Korea has also eased the cap on banks’ FX forward positions by 25% beginning March 19 as part of measures to expand foreign currency liquidity and ease the demand and supply imbalance in the local swap market.

Despite the various announcements, futures on the S&P 500 are again trading down -3.70% this morning. Asian equity markets are a bit more mixed with the Nikkei (+0.97%) and Shanghai Comp (0.69%) up while the Hang Seng (-0.42%) and Kospi (-1.52%) are down. The US dollar index is trading down -0.30% overnight after yesterdays +1.54% advance while, yields on 10y USTs are down -8.1bps to 0.997%. Elsewhere, Brent crude oil prices are up +1.08% this morning to $29.04. Earlier this morning WTI oil prices had traded at $26.20 (-2.8%), the lowest since May 2003 but have recovered since then to trade flat at 26.96.

As the virus continues to spread, the New York Times has reported overnight that the pandemic could last 18 months or longer citing a federal government document laying out options for countering the coronavirus. The plan, dated Friday, said there could be “multiple waves” during the outbreak and could cause widespread shortages. The newspaper cited the document saying that one option for President Donald Trump to deal with shortages would be to invoke the Defense Production Act of 1950, which allows the White House to force US companies to boost production of critical supplies and equipment..

On the monetary policy side of the equation, liquidity concerns have been mounting on an almost exponential curve lately and a big focus in recent days was the rapid rise of yields on commercial paper – the instruments typically used to meet near-term operational needs of companies. The Fed moved to alleviate strain in the c. $1.1tn market by announcing the establishment a Commercial Paper Funding Facility (CPFF). If that sounds familiar then it’s because the Fed did something similar in 2008. In a statement the Fed announced that the Treasury will provide $10bn of credit protection to the Fed in connection with CPFF from the Treasury’s ESF. The Federal Reserve will then provide financing to the SPV under the CPFF. Its loans will be secured by all of the assets of the SPV. Pricing is based on 3-month OIS plus 200bps, which compares to 100bps in 2008 but also with a 100bp fee for credit enhancement surcharge.

Secretary Mnuchin added that “we have the ability to have the Fed purchase up to $1tn of commercial paper as need”. It’s worth noting that in 2008 the facility topped out at around $350bn however the CP market was almost twice as big then as it is now for context. While the facility’s pricing appears less generous than it was in 2008 – clearly the Fed isn’t today targeting ultra-cheap funding – the fact that the Fed has moved to provide a backstop and provide a means of liquidity for short-term funding again is a step in the right direction. The coming days will be important in that sense. On a related note yesterday Craig published a note looking at the recent underperformance of very short dated USG IG bonds (maturing in 12 months or less). This $500bn market has been the weakest relative part of the IG market which goes to show the liquidity concerns the market has. The note has a full breakdown of debt due in the next 12 months by sector and the largest issuers, and highlights the most significant price drops in the last 10 days. For more, see Craig’s note linked here.

After the bell the Fed also relaunched the 2008 Primary Dealer Credit Facility (PDCF) which will offer overnight and term funding with maturities up to 90 days and will be available from the end of this week. It will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under this facility may be collateralized by a broad range of investment grade debt securities, including commercial paper and municipal bonds, and a broad range of equity securities. The interest rate charged will be the primary credit rate, or discount rate, at the Federal Reserve Bank of New York.

Back to markets. Credit spreads continued to widen both here in Europe and in the US yesterday though but these interventions started to bring in some stabilisation and will help create a bit more pricing tension going forward. In Europe HY cash spreads were +42bps wider, while IG spreads widened +12 bps, while in the US HY spreads increased to 841bps widening +3bps and IG widened +17bps to 272bps. We’re now getting pretty close to what we thought were pretty aggressive bearish targets in IG. HY still has at least a couple of hundred basis points to go and will be much more about the economy and fund outflows than facilities the Fed can put in place.

And it wasn’t just the Fed announcing measures yesterday, with the global flow of monetary stimulus continuing. These included the Turkish central bank cutting rates by 100bps to 9.75%, Pakistan cutting by 75bps to 12.5%, Morocco cutting 25bps to 2%, Tunisia cutting 100bps to 6.75% and Poland cutting 50bps to 1%. Also the BoE announced that like the Fed, they would be buying commercial paper up to one-year in maturity issued by those firms that are making “material contribution to the U.K. economy”. This will be called the Covid Corporate Financing Facility.

In terms of new virus cases, in today’s pdf version of this note we show how there are tentative signs that case growth in Italy, France and Spain are slowing. This should be as expected given the extreme measures put in place. They’ll need to be there for much longer if they want to continue to reduce this but progress is being made and we’ll publish the table and graphs (data up to 5am) daily.

Positive newsflow and increasing hopes of a fiscal policy response supported a rebound in global markets yesterday, with the S&P 500 rising through the session to close up +6.00%, while the VIX index came down from its record high the previous day (when it rose above even its 2008 levels) to fall back -6.8pts to 75.9pts. In spite of the optimism pervading markets again yesterday, we shouldn’t get too ahead of ourselves, as the S&P was coming off its worst day since 1987, and the index is still down -25.31% from its peak just under a month ago. In Europe the STOXX 600 recovered from its earlier losses to close up +2.26%, which still leaves the index down by -32.92% since its peak on February 19th. However, the STOXX 600 Travel and Leisure index saw another day of falls in spite of the rebound elsewhere, closing down a further -5.41% after closing lower in 18 of the last 19 trading sessions. Airlines are continuing to struggle, with the Dow Jones index (+5.20%) lagging the S&P 500 and the NASDAQ yesterday thanks to Boeing’s poor performance, falling -4.22% (though up from its stunning intraday low of -21.86%). The best performing sectors were the defensive utilities and consumer staples companies as well as high growth semiconductors, all up near or over 9%. The worst performers were the consumer services industry (including hotels and restaurants) and autos just like in Europe.

Sovereign bonds continued to sell off, particularly in Europe, where peripheral spreads widened further yesterday. Fiscal concerns are slowly starting to come into pricing for strong and weaker countries alike. The spread of Italian 10yr yields over bunds were up a further +16.2bps to 279bps, their highest level since last June. Notably the issue wasn’t just confined to Italy, with both the 10yr Spanish and even French spread over bunds both reaching their widest level since April 2017. So certainly a sign of stresses in sovereign bond markets and perhaps reflecting the continued fallout from ECB President Lagarde’s remarks last week that “we are not here to close spreads.” German 10yr bund yields rose for the 6th straight day, up +3bps to -0.43%. In the US, we saw sovereigns sell off rapidly as the promise of increasing stimulus came through. The 10yr Treasury yield rose +36.0 bps to raise the benchmark yield over 1%, while 30yr Treasuries rose +40.0bps to 1.68%

The positive risk newsflow didn’t provide much help to commodities though, where Brent Crude closed -4.39% to $28.73. Silver (-2.29%) fell to its lowest level since May 2009 after an 8th consecutive decline, though gold did manage to snap a run of 5 successive declines to gain +0.94%.

Here in the UK, Chancellor Sunak announced £330bn of government-backed loans to keep business afloat through this virus-borne crisis. He promised to go further if more support is needed and reiterated the familiar refrain of doing “whatever it takes.” The £330bn of government-backed loans would amount to 15% of the UK’s GDP. The Chancellor also announced 20bn of tax cuts and grants for businesses, and a new lending facility that was agreed to with the BoE to increase the availability of low-cost commercial paper as we mentioned above. Shops and restaurants will not have to pay business rates this year, and mortgage lenders will now give a three month payment holiday to all borrowers affected by the virus.

Amidst the coronavirus situation, we also found out yesterday that the Brexit talks scheduled for today between the UK and the EU on their future relationship have been delayed. We also got a potentially interesting development on the Brexit transition from the Daily Telegraph’s Europe Editor, Peter Foster, who tweeted yesterday that there was “now top-level acceptance that UK WILL seek extension”. The government up to now have insisted they won’t extend the Brexit transition beyond the end of 2020, but under the Withdrawal Agreement they have until the end of June to decide on whether to go for an extension. The news was little respite for sterling, which fell for a 6th consecutive session against the US dollar, the first time that’s happened since May.

Somewhat down the headlines this morning, but the results from the Democratic primaries saw Joe Biden continue to pull away from the Senator Bernie Sanders. The former Vice President won in Florida, Arizona and Illinois early in the night, and it would seem like the math going forward means that there is not a path for the Vermont Senator. With Covid-19 spreading through the US and delaying primaries, including the Ohio primary that was supposed to be held tonight, there is a chance that Sanders will drop out. If Sanders does not drop out, it is most likely not to try and comeback, but rather to continue pulling Joe Biden further to the left ahead of the general election.

Wrapping up with the data, and in a sign that the virus is already wreaking economic havoc, the German ZEW survey saw the expectations reading falling to -49.5 in March (vs. -30.0 expected), which is the weakest reading since December 2011. Meanwhile the current situation reading also fell to -43.1, the lowest reading since March 2010. Over in the US, the data was from February, though retail sales that month unexpectedly fell by -0.5% (vs. +0.2% expected) in the biggest monthly fall since December 2018, while the retail sales ex auto and gas reading was down -0.2% (vs. +0.3% expected). Industrial production was up by +0.6% however (vs. +0.4% expected), while the number of job openings in January rebounded to 6.963m (vs. 6.4m expected). Finally for completion, the UK unemployment rate in the 3 months to January rose a tenth to 3.9% (vs. 3.8% expected).

To the day ahead now, and data releases include the final CPI and core CPI readings for the Euro Area in February, along with January’s trade balance. Meanwhile from Italy we’ll get January’s industrial sales and industrial orders, before the US reports February’s housing starts and building permits, weekly MBA mortgage applications, and we also get Canada’s CPI reading for February. Finally tonight, there’ll be a decision from the Brazilian central bank.

 

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 50.88 POINTS OR 1.83%  //Hang Sang CLOSED DOWN 971.91 POINTS OR 4.18%   /The Nikkei closed DOWN 284.98 POINTS OR 1.68%//Australia’s all ordinaires CLOSED DOWN 6.26%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0394 /Oil UP TO 24.35 dollars per barrel for WTI and 37.07 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0394 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0534 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA AFFAIRS

 

4. EUROPEAN AFFAIRS

ITALY
Despite the rout on all exchanges including the Italian stock exchange yields are soaring.  The Italian 10 yr bond yield rose from 1.00% to 2.99% although the ECB intervened.  It has run out of ammunition.
(zerohedge)

Italian Debt Crashes Prompting ECB Intervention

Welcome to the brave new world of a helicopter money, aka the Magic Money Tree (MMT), where everything is crashing and nowhere more so than in Europe, which having made a dramatic U-turn on its historic fiscal stinginess, and where a flood of debt is now expected, bond yields across the continent are soaring even as European stocks crater, and nowhere more so than in Italy where the 10Y bond yield, which was trading below 1% as recently as one month ago, exploded as high as 2.99% this morning, before easing some of the rout following media reports that the ECB is intervening via the Bank of Italy.

Earlier in the session, Italy’s 10-year yield climbed as much as 64bps to 2.99%, pushing the BTP-bund spread up to 44bps wider to 323bps, the most since 2018 after a La Stampa report that Rome may extend the nationwide lockdown to beyond April 3.

Then shortly after 6am ET, Italian bonds trimmed declines after Radiocor reported the ECB was invervening in the domestic market through the Bank of Italy. “Moves are flexible in terms of timing and of markets targeted, and can continue as long as needed”, Radiocor news agency reported, citing central banking sources.

Even that, however, barely made a dent, with Italy’s 10-year yield still almost 40bps higher at 2.72% after earlier climbing to 2.99%.

There was no ECB intervention in other European bonds, although they certainly also need it, with Bunds suffering sharp losses as the 10Y Bund yield surged as high as -0.20%…

… although paring some losses following reports Germany was softening opposition to Italy’s proposal for joint EU bond issuance: German’s 30-year swap spread narrows 11bps to 0bps, the tightest since 2014, amid concerns that any fiscal loosening will lead to more bond issuance.

The most notable however may be in 30Y Bund yields, which emerged back in positive territory, trading at 0.04% this morning, up from -0.5% less than a week ago.

The irony is that until last week, the ECB was urging European government to stimulate, stimulate, stimulate as it was “out of ammo.” Well, Europe is finally doing as requested, which has sent yields soaring to dangerous levels, which is now forcing the ECB to intervene to push yields lower!

How soon until Lagarde wave a white flag and demands that the Fiscal stimulus tsunami which we summarized here last night…

… be immediately halted as the ECB simply does not have a large enough trading floor to buy everything that is suddenly breaking courtesy of helicopter money?

end
Late this afternoon:

Here Comes Bazooka #2: ECB Is Holding An Emergency Call

Bazooka #1 was an epic dud. Here comes Bazooka #2.

According to Bloomberg, the ECB has been officially called into action to save the day following a day of unprecedented risk losses and when the Dollar went all “Volkswagen” as the BBDXY hit a record high, and is currently holding an emergency meeting just moments after France’s finance minister urged the central bank to intervene quickly and massively.

The imminent emergency announcement comes shortly after reports that the EU is preparing a rescue fund, or as Bloomberg’s Andrew Cinko in-house permabull puts it, “the dam may be breaking on truly pulling out all the stops in order to stem the bleeding.”

It sure is Andrew, but woe to the bulls if Bazooka #2 also turns out to be a water pistol, because there won’t be a third attempt.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/RUSSIA/SYRIA

These poor souls: Russia is behind an airstrike that killed 34 Turkish troops in Idlib.  Erdogan is absolutely brain dead for fighting this war

(courtesy AlMasdarNews)

Pompeo Says Russia Behind Airstrike That Killed 34 Turkish Troops In Idlib

Via Al-Masdar News,

U.S. Secretary of State Mike Pompeo said on Tuesday that he believed that the Russian military was behind the killing of dozens of Turkish soldiers during an attack in Idlib earlier this month.

According to statement from Pompeo, he said he believes Russia was likely behind the killing of the Turkish soldiers, which was later blamed on the Syrian Armed Forces.

“We believe Russia has killed dozens of Turkish military personnel in Syria,” U.S. Secretary of State Mike Pompeo told Reuters Tuesday evening.

This attack later resulted in a large-scale retaliatory assault that was carried out by the Turkish military against the Syrian Arab Army (SAA) in the Idlib, Aleppo, and Latakia governorates.

Furthermore, Pompeo vowed to provide aid to Turkey after the killing of its soldiers.

Turkey launched Operation Spring Shield on Feb. 27 after at least 34 Turkish soldiers were killed in an airstrike in Idlib province and after repeated violations of previous cease-fires…

Turkey and Russia, which back opposing sides in Syria’s war, agreed on March 5 to halt military activity in the northwestern Idlib region after an escalation of violence displaced nearly a million people and brought the two sides close to confrontation. — Daily Sabah

“We are looking to provide aid to Turkey after the killing of dozens of its soldiers in Syria,” Pompeo added in his Tuesday statements.

 

Russian Su-34 dropping a KAB-500S-E guided bomb in Syria, via Wiki Commons.

He also issued the announcement of new sanctions against the Syrian Defense Minister Ali Abdullah Ayoub, among the highest ranking individuals in the Syrian government to be sanctioned thus far.

end

6.Global Issues

CANADA /USA//CORONAVIRUS/UPDATE

Trump closes the Canadian border with the resurgence of the coronavirus in Asia

(ZEROHEDGE)

 

Trump Closes Canadian Border As Outbreak Sees Sudden Resurgence In Asia: Live Updates

Update (0940ET): President Trump just tweeted that the US will be closing the Canadian border “by mutual consent” – adding that trade and other “essential” traffic wouldn’t be interrupted.

Donald J. Trump

@realDonaldTrump

We will be, by mutual consent, temporarily closing our Northern Border with Canada to non-essential traffic. Trade will not be affected. Details to follow!

Since the order comes via “mutual consent”, American citizens won’t be able to cross into Canada. This comes after PM Trudeau closed the country’s borders to all foreigners except Americans earlier this week.

In other news, NYC Mayor de Blasio said the city needs the military’s help to combat the virus, eliciting mental images of phalanxes of soldiers walking down Fifth Avenue, like something out of a disaster movie.

As we wait to see if the rest of the Olympic Committee will take the advice of Spanish Olympic Committee head Alejandro Blanco and push to cancel the games…especially as quarantines make it impossible for athletes to train.

In the UK, a reporter for the London-based ‘City AM’ business newspaper said she’d heard that the government is planning in order to ban nonessential traffic in and out of London. The quarantine order would also shutter all stores besides groceries and pharmacies.

*  *  *

With US equity futures limit-down again overnight, the novel coronavirus outbreak is beginning to feel like ‘Groundhog Day’.

And if the market’s performance isn’t enough to get readers doubting their own sanity, some of the novel coronavirus headlines hitting in the early morning and overnight just might do the trick. One day after Chinese health officials reported just a single case of Covid-19 that was transmitted domestically, President Xi has warned that “inbound” cases of the virus – ie foreigners traveling to China who are already infected – are placing China at risk for reinfection. So, after China infected the world, President Xi is warning that the world might soon reinfect China.

Overnight, Hong Kong reported 14 new confirmed cases – its largest single-day jump – after new cases slowed to a trickle in recent weeks. According to the SCMP, all except one of those cases was a foreigner bringing the virus back to HK.

Singapore and Taiwan, which were widely praised for acting swiftly to stamp out the virus via mandatory closures, travel restrictions and – as the NYT explained in a story published Wednesday morning – swiftly tracing and isolating contacts of the recently diagnosed. In South Korea, a spate of new clusters around densely populated Seoul has raised fears about another runaway outbreak, per the SCMP.

The KCDC reported 93 new cases on Wednesday, up from 84 a day earlier and 74 on Monday. The new cases took the total infection caseload to 8,413.

As Republican “deficit-hawks” like Lindsey Graham pushed back against the Trump Administration’s latest ‘helicopter money’ stimulus plan yesterday that will inject $1 trillion into the economy (on top of $300 billion in deferred tax payments), Treasury Secretary Steven Mnuchin took a page out of the ‘TARP’ playbook and warned a group of GOP senators during a closed-door meeting on Tuesday that the unemployment rate in the US could soar to depression levels of around 20% if they failed to pass the legislation, then promptly leaked his comments to Reuters, with the stipulation that Mnuchin’s comments didn’t represent an official “forecast”, merely one of many worst-case scenarios that could come to pass if the federal government continues to sit on its hands.

In the Middle East, Iran reported another 147 deaths from the virus on Wednesday, bringing its death toll to 1,135. Elsewhere, the Sultanate of Oman entered an almost full lockdown beginning at noon local time on Wednesday as the sultanate imposes the most restrictive measures across the Gulf states to limit the spread of coronavirus after the region recorded its first death outside Iran two days ago.

In the UK, Sainsbury’s supermarket chain said Wednesday that it would begin limiting customer purchases to between 2-3 items to combat hoarding.

Globally, the total number of Covid-19 cases passed 200,000 overnight – more than doubling over two weeks – after health officials around the world reported the largest jump in cases yet, with an additional 15,615 confirmed on Tuesday, and even more confirmations following overnight.

So far, the US has confirmed  6498 deaths. In Italy, the second worst-hit country after China (and likely Iran, which lags Italy on the official death toll but likely has thousands of dead or deathly ill who aren’t being counted. In Italy, infections topped 31,500 and deaths reached 2,503 by Wednesday morning.

END
CANADA
The two black swans, the coronavirus and the drop in oil is certainly having a devastating effect on the fiances in Canada. Now the PM unveiled a massive 82 billion package to help companies. He has delayed income tax filing until Aug 2020.
(zerohedge)

Canada Unveils Stimulus Package Worth 3% Of GDP

When discussing the most important hypothetical question facing traders today, namely what size of fiscal stimulus would be sufficient to put a floor in the market, yesterday we showed charts from JPMorgan economists estimating the amount of fiscal thrust in crises over the past 20 years expressed as a percentage point of real GDP growth. The data highlighted the following principle: Fiscal thrust in the DM economies has tended to aim for 1% to 2% of GDP during recessions, and so far the closest to hit that number are the UK and Australia.

 

And as we wait to see what the final terms of what the fluid US fiscal stimulus will be, which at last count was said to approach an impressive $1.3 trillion, moments ago Canada’s Prime Minister Trudeau surprised – hopefully to the upside – when he announced a C$82BN stimulus package as part of the government’s fiscal measures to deal with coronavirus impacts on the Canadian economy, one which amounts to roughly 3% of GDP.

As part of the stimulus, the government will “provide up to $27 billion in direct support to Canadian workers and businesses, plus $55 billion to meet liquidity needs of Canadian businesses and households through tax deferrals to help stabilize the economy.”

Additionally, Canadian will have until August 2020 to pay taxes.

Alas, the kneejerk response to the stimulus appears underwhelming, as the loonie, already plunging ahead of the announcement, has accelerated its slide, tumbling to 1.4494 against the dollar, with the USDCAD rising to the highest level in 4 years.

Perhaps, taking a page out of Trump’s playbook, Trudeau can watch the market’s reaction, and announce additional C$10BN stimulus increments until the CAD finally stops plunging.

END
GLOBAL BANKS/SIMON BLACK
A MUST MUST READ….
(courtesy Simon Black)

Banks Are Going To Drown In An Ocean Of Defaults

Authored by Simon Black via SovereignMan.com,

On November 6, 2000, then US presidential candidate George W. Bush told a crowd of cheering supporters, “they misunderestimated me.”

Now, if English is not your native language, allow me to clear the air: ‘misunderestimate’ is not a word. But then again, George W. Bush was legendary for hilarious slip-ups like this.

There are entire books dedicated to his ‘Bushisms,’ the ridiculous made-up words and incomprehensible sayings that became routine for the 43rd US President.

‘Misunderestimate’ seems to be a conflation of the words ‘misunderstand’ and ‘underestimate’. And while that was utterly hysterical 20 years ago when Bush first said it, ‘misunderestimate’ may be the most appropriate word of today.

The entire world has completely ‘misunderestimated’ the Coronavirus.

In terms of misunderstand– that’s obvious. There’s so much that we don’t know about the virus (officially known as SARS-CoV-2) and the disease that it causes (COVID-19).

For example, a group of researchers published a “peer-reviewed” research paper earlier this month stating that the virus had split into multiple strains.

(Peer-reviewed is a type of self-regulation among academics; it means the paper had been evaluated by other experts before it was published.)

But other specialists in the field strongly disagreed with the paper’s conclusions.

Swiss biologist Richard Neher described the research as, “wrong, misleading. . . downright dangerous inferences,” while Australian virologist Ian Mackay called it a “weak paper and poor science.”

Another peer-reviewed study released in the Journal of Medical Virology concluded that the virus originated from snakes. But plenty of experts disagreed with that assertion too.

The scientific community has learned so much about SARS-CoV-2 since it first surfaced a few months ago.

But there’s still so much that’s unknown– and that makes perfect sense given that this virus is brand new. They’re trying to figure it out as quickly as possible, but that’s naturally going to lead to some disagreements and conflicting conclusions.

But then the Internet takes over, and suddenly everyone’s an expert. People who have no background in medicine and biology Tweet with a level of certainty about the virus that’s just plain silly.

US television personality Jimmy Kimmel joked about this last week, saying, “I speak [about the virus] as if I’ve been a professor of immunology at Stanford for 35 years…”

There’s still so many things that the experts don’t understand, or don’t agree on. The answers are coming, but it’s still early days.

But in addition to misunderstanding, the world has also totally underestimated this virus… and continues to do so.

It started in China back in December, with the government trying to keep the outbreak quiet and taking steps to silence the first whistleblower.

As the virus began to spread, Western nations complacently shrugged it off and assumed it would remain in Asia.

Even the World Health Organization refused to call this a ‘pandemic’ until March 11… only a week ago.

Investors around the world ignored this for months, completely underestimating the massive, worldwide economic impact the virus would have.

Even now, after one of the worst stock market crashes in history, people are still woefully underestimating the effects.

And I’m not talking about the stock market (though there could easily be more losses ahead). I’m talking about something far more serious: banks.

Banks are about to drown in an ocean of defaults. I’ll talk about this a lot more in the coming days, but briefly:

  • There’s $250 TRILLION in global debt right now– mortgages, credit card debt, business loans, government debt, etc.
  • And banks own a large portion of that debt.
  • This virus crisis is going to trigger a wave of defaults from consumers, businesses, and even governments.
  • Think about it: tourism alone makes up 10% of global GDP. Revenue in that entire sector– hotels, airlines, cruise ships, etc. has collapsed, and many of those companies aren’t going to survive.
  • The crash in oil prices is going to wipe out countless oil companies.
  • Many large retail chains, which were already struggling in the age of e-commerce, will likely declare bankruptcy.
  • Countless businesses around the world have ‘temporarily’ closed due to public health policies, and many of them will go out of business entirely.
  • MOST of these businesses owe lots of money to the banks, whether it’s a small business working line, or the $34 billion in debt that American Airlines owes. So the defaults are going to be massive.
  • On top of that, millions of people are going to lose their jobs and be unable to make payments on their credit card debt, auto loans, and even mortgages.
  • Again, there’s $250 trillion in global debt right now. Total bank capital worldwide is less than $10 trillion.
  • So if the coming defaults trigger a mere 4% loss in total debt, it will exceed the entirety of global bank capital.
  • And this doesn’t even take into consideration the impact of the $1 QUADRILLION derivatives exposure.

Misunderestimate? Absolutely.

This looming wave of loan defaults over the next few months could spark a crisis in the global financial system that completely dwarfs what happened back in 2008.

I desperately want to be wrong.

And it’s possible that public health officials radically shift their positions in the coming weeks and tell all the young, healthy people in the world to go back to work, get infected, and start developing immunity.

They may be forced to do this to avoid destroying the global economy.

But at this point, every possible scenario is on the table. Nothing is out of the question… especially when the arithmetic is so obvious.

And continuing to misunderestimate the effects of this virus could be far more dangerous than the virus itself.

We’ll talk about this more in the coming days, along with some sensible suggestions to reduce risk.

*  *  *

And to continue learning how to ensure you thrive no matter what happens next in the world, I encourage you to download our free Perfect Plan B Guide.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0929 DOWN .0086 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 /RED

 

 

USA/JAPAN YEN 107.73 UP 0.253 (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 1.1846   DOWN   0.0270  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4388 UP .0146 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 86 basis points, trading now ABOVE the important 1.08 level FALLING to 1.0928 Last night Shanghai COMPOSITE CLOSED DOWN 50.98 POINTS OR 1.83% 

 

//Hang Sang CLOSED DOWN 971.91 POINTS OR 4.18%

/AUSTRALIA CLOSED DOWN 6,26%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 971.91 POINTS OR 4.18%

 

 

/SHANGHAI CLOSED DOWN 50.88 POINTS OR 1.83%

 

Australia BOURSE CLOSED DOWN.6.26% 

 

 

Nikkei (Japan) CLOSED DOWN 284.98  POINTS OR 1.68%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1497.80

silver:$12.06-

Early WEDNESDAY morning USA 10 year bond yield: 1.12% !!! UP 4 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 1.71 UP 2  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 100.34 UP 76 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: 1.44% UP 17 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.07%  UP 6   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 1.19%//UP 16 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:2.29 DOWN 8 points in basis points yield from yesterday./ECB INTERVENTION

 

 

the Italian 10 yr bond yield is trading 110 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.24% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.53% 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 1.0853  DOWN     .0163 or 163 basis points//EURO BLOWING UP

USA/Japan: 108.17 UP .779 OR YEN DOWN 78  basis points/

Great Britain/USA 1.1767 DOWN .0349 POUND DOWN 350  BASIS POINTS)

Canadian dollar DOWN 302 basis points to 1.4544

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0475    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0787  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.4795 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +.07%

 

Your closing 10 yr US bond yield UP 1 IN basis points from TUESDAY at 1.08 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.73 UP 4 in basis points on the day

Your closing USA dollar index, 100.98 UP 141  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 201.32  3.80%

German Dax :  CLOSED DOWN 443.63 POINTS OR 4.96%

 

Paris Cac CLOSED DOWN 256.56 POINTS 6.43%

Spain IBEX CLOSED DOWN 273.20 POINTS or 4.20%

Italian MIB: CLOSED DOWN 163.76 POINTS OR 1.07%

 

 

 

 

 

WTI Oil price; 22.87 12:00  PM  EST

Brent Oil: 26.20 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    80.01  THE CROSS HIGHER BY 4.87 RUBLES/DOLLAR (RUBLE LOWER BY 487 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.24 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  22.53//

 

 

BRENT :  26.23

USA 10 YR BOND YIELD: …1.18  UP 10 BASIS PTS…

 

 

 

USA 30 YR BOND YIELD: 1.75..UP 5 BASIS POINTS..

 

 

 

 

 

EURO/USA 1.0909 ( DOWN 108   BASIS POINTS)

USA/JAPANESE YEN:108.13 UP .748 (YEN DOWN 75 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 100.89 UP 131 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.1595 DOWN 519  POINTS

 

the Turkish lira close: 6.4758//THEY ARE TOAST

 

 

the Russian rouble 81.03   DOWN 5.59 Roubles against the uSA dollar.( DOWN 559 BASIS POINTS)

Canadian dollar:  1.4494 DOWN 252 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0474  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 7.0752 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.24%

 

The Dow closed DOWN 1338.46 POINTS OR 6.30%

 

NASDAQ closed DOWN 344.94 POINTS OR 4.70%

 


VOLATILITY INDEX:  76.45 CLOSED  up .54

LIBOR 3 MONTH DURATION: 1.051%//libor dropping like a stone

 

USA trading today in Graph Form

“We’re About Halfway There” – Historic Carnage Everywhere Sparked By Dollar Margin Call Panic

It’s definitely a ‘deer in headlights’ day…

Stocks down, Bonds down, credit down, gold down, oil down, copper down, crypto down, global systemically important banks down, and liquidity down

Today was the worst day for a combined equity/bond portfolio… ever…

Source: Bloomberg

Crushing risk-parity funds as bond-stock correlation soars unnaturally…

Source: Bloomberg

Jeff Gundlach predicted during his DoubleLine call yesterday that “the U.S. national debt likely to grow to $30 trillion in two or three years as spending explodes in response to the crisis”, which means about $3-4 trillion in net issuance per year, and that upcoming supply tsunami is certainly sending bond prices lower, potentially dealing a deathly blow to the risk-parity/balanced “60/40” portfolio model. 

…and only two things up – Dollar and VIX hit record highs.

VIX surged over 85 intraday and closed at a new record high…

Source: Bloomberg

And Treasury VIX also hit a record high…

Source: Bloomberg

The dollar exploded to a new record high today…

Source: Bloomberg

..as the global dollar short margin call came due…

Source: Bloomberg

Beyond the traditional “safe haven” role of US Treasuries, Goldman notes that the Dollar has a number of features which help explain its behavior during economic downturns and periods of extreme market volatility:

1. Denominator of US capital markets. The Dollar denominates US equity and bond markets, the world’s largest important capital markets. Because of the large size of US markets, international investors tend to hold many more US assets than domestic investors hold of international assets. This imbalance can have implications for currency markets. For instance, many non-US investors own US equities on an FX-hedged basis. When equity market cap declines they are left with over-sized hedges, and bringing the notional value of hedges down therefore generates USD buying. Because the US market is so large, these flows tend to dominate any USD-selling flows by US investors. Research from the BIS suggests this was one factor behind the Dollar’s appreciation during the Global Financial Crisis. Some of the issues playing out in money markets— especially wide cross-currency basis—reflect similar underlying imbalances.

2. Intervention currency. When central banks intervene to defend against excessive depreciation, they most often sell US Dollars to buy their domestic currency. All else equal this slows the Dollar appreciation against that cross. But for the broad Dollar often more important is what comes next: selling USD changes the currency composition of reserve assets, so reserve managers may take rebalancing operations, buying USD vs other reserve currencies like EUR or GBP to replenish supply of the preferred intervention currency. As a result, FX intervention may paradoxically boost the Dollar vs certain G10 crosses.

3. Global invoice and lending currency. The Dollar denominates most global commodity trade, most cross-border lending to emerging markets, and an outsized share of global trade volumes (see here for more background). In an economic downturn: (i) commodity prices fall, resulting in lower USD revenues for producers; (ii) trade volumes fall, resulting in lower USD revenues for other exporters, and (iii) cross-border lending dries up, resulting in lower USD assets for borrowers. Exactly how these factors effect FX spot markets is a source of debate. But, in our view, they may create Dollar scarcity in some parts of the global economy, resulting in selling of non-USD assets to accumulate USD balances.

Said simply: the USD is the world’s reserve currency, which while a huge benefit to the US when times are good, is an unbearable burden during crashes such as this one. While there is no simple solution, the legendary inventor of the MOVE index did propose a brilliant solution back in 2016: the Fed can always crush the dollar by buying gold in the open market, effecting another FDR-like devaluation of the dollar. Because as J.P.Morgan famously said in 1912,  “Money is gold, nothing else.” One year later the Fed was born.

But for now, gold is being puked (to raise dollars) along with every other asset…

Source: Bloomberg

In other ominously concerning news, global systemically important banks have collapsed…

Source: Bloomberg

As Deutsche Bank counterparty risk is exploding to record highs…

Source: Bloomberg

Globally, stocks were notably lower today but China continues to magically outperform Europe and US massively…

Source: Bloomberg

US futures were limit-down overnight, ETFs signaled more selling pressure but ramped at the open as the algos kicked in… but that didn’t last… markets rallied in the last few minutes as Senate passed the first bailout bill (but that did not last)…

Small Caps were the worst on the day, Nasdaq best, but everything was crushed…

Source: Bloomberg

Intraday, Dow futures were lifted to VWAP 3 times after the cash open… and sold twice…

Source: Bloomberg

The Dow crashed back into the red since Trump’s inauguration today…

Source: Bloomberg

Directly virus-affected sectors continued to collapse…

Source: Bloomberg

US bank stocks are now unchanged since 1996…

Source: Bloomberg

 

Source: Bloomberg

Credit markets continue to collapse with IG worst…

Source: Bloomberg

But HY is a bloodbath too (HY CDX +130bps to its highest since 2011)…

Source: Bloomberg

Treasury yields were higher on the day, but came well off the highest yields into the close as 30Y was bid…

Source: Bloomberg

The daily ranges in bond yields is just stunning – 30Y yields traded in a 35bps range today (for a 1.8% yield – not an 18% yield!!)

Source: Bloomberg

The dollar exploded today – its 7th straight day of gains and biggest jump since June 2016’s Brexit vote flight to safety… (NOTE the dominant dollar buying trend appears to come from the European session)…

Source: Bloomberg

As the dollar exploded higher so its fiat peers collapsed (except the Shekel which was bid?)…

Source: Bloomberg

With cable crashing to its lowest since 1985!!

Source: Bloomberg

Crypto was modestly lower on the day…

Source: Bloomberg

Total and utter carnage in commodity-land today with WTI crashing 25% at one point…

Source: Bloomberg

Gold outperformed its peers on the day but was still lower…

Silver was slammed, sending the Gold/Silver ration to yet another record high…

Source: Bloomberg

WTI Crude was devastated, crashing to just above $20 ($20.06 intraday lows) – NOTE, WTI traded as high as $65.65 in January after the Soleimani assassination and Iran missile strike…

WTI is at its lowest since 2002…

Source: Bloomberg

This is by far the worst price action of any oil price war…

Finally, as one trader told us, “we’re only about halfway there” in stocks as the central-bank-sponsored delusion of the last few years is wiped away…

Source: Bloomberg

US equity markets have merely fallen to the same level of valuation at the peak in 2007…

Source: Bloomberg

So, you can’t print your way to prosperity after all? As Bill Ackman so ominously warned:

“You cant borrow your way out of the problem, you can’t lend your way out of the crisis.. you have to kill the virus.”

And if you’re being told “buy the dip”, “buy and hold”, “long-term value”… ask the Japanese how that worked out for them when The BoJ finally lost control…

Source: Bloomberg

Is the world losing faith in global central banks?

They failed…

Source: Bloomberg

Bank of Japan stock (yes it trades publicly) crashed to a record low…

Source: Bloomberg

And Japanese sovereign risk is soaring…

Source: Bloomberg

As is USA sovereign risk as MMT reality starts to dawn on markets…

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

US Equity Futures Are Plunging… Again

It is unclear what the immediate catalyst is this time – aside from the fact that we are now outside of the stock-trading-machines reach – but US equity futures are plunging in early Asia trading.

Dow futures are down 650 points…

Erasing most of the day’s gains…

 

“…and suddenly millions of bailout-demanding voices cried out in terror and were suddenly silenced. I fear something terrible has happened.”

Some have suggested that Treasury Secretary Mnuchin’s warning of 20% unemployment spooked some traders.

 

b)MARKET TRADING/USA/THIS MORNING

Pre-Market Trading Chaos After Trump Tweets On “Very Important News” From FDA

With futures stuck limit-down, our only indication of trading sentiment is the pre-market-open ETFs and they are volatile this morning.

Shortly after Trump tweeted that he has “very important news” from The FDA…

Donald J. Trump

@realDonaldTrump

I will be having a news conference today to discuss very important news from the FDA concerning the Chinese Virus!

 

It seems even good news is no longer enough – the market is demanding its free, unencumbered, helicopter money or else!

END

Dow Drops Below 20k, Circuit-Breakers Imminent

After yesterday’s hope-filled day of gains on massive monetary and fiscal largesse, futures traded limit-down overnight and ETFs signaled a 6.5-7% loss in the pre-market but bounced to the futures-limit-down level at the open…

The Dow traded back below 20k…

Nasdaq is modestly outperforming but everything is down hard…

During US trading hours (Cash), these are the levels for the various circuit-breakers to hit:

  • Level 1: 7% fall to 2352.14 before 15:25EDT/19:25GMT will prompt a 15-minute pause.
  • Level 2: 13% drop to 2200.39 before said time will introduce another 15-minute pause.
  • Level 3: 20% decline to 2023.35 within the time will shut the markets

Will we see the first Level 2 trigger today?

end
THIS AFTERNOON

This Is What A $12 Trillion Dollar Margin Call Looks Like

‘Mystery Chart’ time…

No, it’s not Volkswagen, or even Tesla.

This is the world’s reserve currency soaring to an all-time record high…

…and this is what happens when a global margin call reveals there is a $12 trillion short squeeze.

 

This is the biggest 7-day gain for the USDollar since Black Wednesday in 1992 when George Soros “broke The Bank of England,”  crashing the pound and forcing Britain to withdraw from the European Exchange Rate Mechanism.

It is also on par with October 1978’s surge in the dollar when the Fed clamped down hard on monetary policy – after the signing of the Full Employment and Balanced Growth Act, better known as the Humphrey-Hawkins Act, mandating The Fed to crack down on inflation (which Volcker then did by drastically raising rates) – sending the stock market into the infamous “October massacre.”

As a reminder, according to JPMorgan’s calculations – the global dollar short that has doubled since the financial crisis and was $12 trillion as of this moment, some 60% of US GDP.

And, as we noted previously, the events of last week so ominously demonstrated, the dollar shortage is back with a vengeance, as confirmed by last week’s concurrent surge in both the Bloomberg Dollar index and the FRA/OIS spread, a closely followed indicator of interbank dollar funding availability.

And it may come as a shock to some but ever since the financial crisis nothing has been actually fixed, and instead the Fed stepped in at every market stress event to inject more liquidity, aiding the issuance of even more debt, and kicking the can while while helping mask the symptoms of the crisis, only made the underlying financial instability even more acute. Meanwhile conventional wisdom that the US banking system was rendered more stable now are dead wrong, with the public and countless financial professionals fooled by the nearly two trillion in excess reserves (we all saw what happened when this number dropped to a precarious “low” of “only” $1.3 trillion in September of 2019) injected by the Fed in recent years. All this liquidity upon liquidity has only made the system that much more reliant on the Fed’s constant bailouts and liquidity injections.

One thing of note, the intraday timing of the dollar’s surge strongly suggests whatever is dominating this dollar margin call appears to be emanating from Europe…

Your guess is as good as ours on the specifics…

Is that the bottomless pit that continues to suck up every drop of liquidity any central bank can spew with seemingly no interruption in the crisis.

 END
WHICH CAUSED THIS:

Stocks Slump Triggers Market-Wide Trading Halt

The dollar is screaming higher as stocks crash, triggering a Level 1 circuit breaker and a market-wide trading halt…

During US trading hours (Cash), these are the levels for the various circuit-breakers to hit:

  • Level 1: 7% fall to 2352.14 before 15:25EDT/19:25GMT will prompt a 15-minute pause.
  • Level 2: 13% drop to 2200.39 before said time will introduce another 15-minute pause.
  • Level 3: 20% decline to 2023.35 within the time will shut the markets

Will we see the first Level 2 trigger today?

The Dow is down 8% today…

The demand for dollars is going exponential…

As the global dollar margin calls come due.

 

ii)Market data/USA

iii) Important USA Economic Stories

Fed to launch helicopter money as they begin to purchase stocks

(zerohedge_

Fed Launches Primary Dealer Credit Facility Which Will Accept Stocks As Collateral

Earlier today, when discussing the launch of the “Lehman crisis playbook” in response to the Global Covid Crisis, we listed the alphabet soup of measures the Fed may launch which are a replica of the measures adopted in the aftermath of the Lehman collapse. These included the AMFL, the MMIFF, the TAF and last but not least, the PDCF, or Primary Dealer Credit Facility, which as Rabobank said “would provide overnight funding to primary dealers, similar to the way the discount window provides a backup source of funding for depository institutions.”

Just three hours later, at 6pm ET, the Fed, as expected, announced the establishment of a Primary Dealer Credit Facility (PDCF) “to support the credit needs of households and businesses.” What the Fed really meant is that it is now launching a way for dealers to monetize the stocks they own, as the facility will be collateralized, among others, by “equity securities.”

As the Fed announced, the PDCF “will offer overnight and term funding with maturities up to 90 days and will be available on March 20, 2020” and will be in place for at least six months and may be extended as conditions warrant.

But here is the punchline:

Credit extended to primary dealers under this facility may be collateralized by a broad range of investment grade debt securities, including commercial paper and municipal bonds, and a broad range of equity securities.

This means that as of this moment, equities – which are worth zero in a worst case scenario – are eligible collateral for Fed liquidity.

Here are some more details on the eligible collateral:

Collateral eligible for pledge under the PDCF includes all collateral eligible for pledge in open market operations (OMO); plus investment grade corporate debt securities, international agency securities, commercial paper, municipal securities, mortgage-backed securities, and asset-backed securities; plus equity securities.

Who will determine the value of the soon-to-be-bankrupt stocks pledged as collateral?

The pledged collateral will be valued by Bank of New York Mellon according to a schedule designed to be similar to the margin schedule for lending by the Discount Window, to the extent possible.

This means that dealers can now buy stocks at what are still massively overinflated valuations thanks to trillions in central bank liquidity, knowing they can then turn around and pledge them to the Fed at a collateral value that is determined after several rounds of single malt between the fund and some NY Mellon back-office lackey who will write down pretty much anything in exchange for a free dinner, and even if the stocks crashes the Fed will still assign whatever value BNY Mellon decides it is “worth”, basically giving the dealers not only a costless purchase but also a free put option!

That said not all equities are eligible as collateral: “the following equities would not be eligible: exchange traded funds (ETFs), unit investment trusts, mutual funds, rights and warrants”

For those who many not remember, the PDCF was one of the biggest bailout abortions of the financial crisis, one which we discussed extensively in describing how dealers abused the Fed as they pledged totally worthless stocks for which they got “par” value. For more see:

We now look forward to Congress never asking Powell the only question that matters: how on earth are stocks “money good” securities and hard value collateral.

We also look forward to the market asking just which Primary Dealer(s) is in such dire financial straits that it now needs what is effectively a bailout from the Fed (we have a few ideas).

The 2-page term sheet of the PDCF is below (pdf link).

Mnuchin starts the stampede out of stocks when he states that 33 million jobs will be lost.  Mnuchin tells Congress that they need bailouts
(zerohedge)

33 Million Jobs Lost: Mnuchin Tells Congress That Without Bailouts, Depression Era Unemployment Awaits

As Treasury Secretary Steve Mnuchin pitched his trillion-dollar-plus bailout for Americans (and their companies) struggling during the  Covid-19 crisis, it appears he has ripped a page right out of the TARP playbook… scare the Senators to death about the consequences of not approving the funds.

Bloomberg reports, according to sources familiar with the matter, that Mnuchin warned the Senate GOP members that without action, the US unemployment rate could spike to a stunning 20%.

With a total labor force or around 160 million, that would mean a sudden spike to over 30 million unemployed Americans

Those are depression-era levels of job losses… which prompted the New Deal and the welfare state the last time it happened…

This time – MMT, UBI, and socialized losses for everyone.

He may well be right, with New York’s unemployment claims website crashing and the chief economist of a multi-billion macro hedge fund advising us that they are now modeling approximately 10 million job losses over the next two to three months.

We leave it up to readers to decide if Mnuchin’s projection too little, too much, or just right.

Time to start the presses…

END

Good question:  did the Fed purposely try to crash the stock market

are they incompetent or is this their strategy

(zerohedge)

Did The Fed Just Purposely Try To Crash The Stock Market?

Authored by Michael Snyder via The Economic Collapse blog,

Unless the Federal Reserve is purposely attempting to spread panic on Wall Street, the decisions that the Fed just made don’t make any sense at all.  Back on March 3rd, the Federal Reserve announced an unscheduled emergency interest rate cut for the very first time since 2008.  Wall Street immediately interpreted that as a “panic move” and the Dow Jones Industrial Average ended the session down 785 points.  So Fed officials had to know what was going to happen once they announced an even bigger unscheduled emergency interest rate cut on Sunday.  Predictably, stock futures hit “limit down” very rapidly, and now investors are bracing for a week of tremendous carnage.

But this didn’t have to happen.  Yes, we witnessed three of the worst trading days in U.S. stock market history last week, but on Friday the Dow Jones Industrial Average was up 1,985 points.  It was an absolutely epic rally, and if the Fed had not caused so much panic there may have been a good chance that the rally could have continued into next week.

In other words, U.S. stocks just had one of their best days ever, and there didn’t appear to be a need for any “emergency intervention” by the Fed.

If the Federal Reserve had just waited a couple of days until their normally monthly meeting, and if the Fed had just cut rates a quarter point, that would have likely been greeted by the markets with warm enthusiasm.

But instead, Fed officials decided to load up their bazooka and go for broke on Sunday.  In addition to using up all of their “interest rate ammunition” in one epic volley, the Fed also officially restarted quantitative easing

The Federal Reserve, saying “the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” cut interest rates to essentially zero on Sunday and launched a massive $700 billion quantitative easing program to shelter the economy from the effects of the virus.

The new fed funds rate, used as a benchmark both for short-term lending for financial institutions and as a peg to many consume rates, will now be targeted at 0%-0.25% down from a target range of 1% to 1.25%.

These moves have “panic” written all over them, and investors immediately responded accordingly

Stock market futures hit “limit down” levels of 5% lower, a move made by the CME futures exchange to reduce panic in markets. No prices can trade below that threshold, only at higher prices than that down 5% limit.

Dow Jones Industrial average futures were off by more than 1,000 points, triggering the limit down level. S&P 500 and Nasdaq 100 futures were also at their downside limits.

As I mentioned above, Fed officials saw what happened immediately after their March 3rd emergency rate cut, and so this sort of response by the markets should have been foreseeable.

As Wolf Richter has noted, these latest moves by the Fed were “the opposite of being confidence inspiring”…

The whole Sunday afternoon maneuver, on top of the mega shock-and-awe maneuvers Thursday and Friday reek of sheer and outright panic – and they’re the opposite of being confidence inspiring. That stock futures plunged after the Fed had effectively put its biggest tools to work shows how obvious this panic is.

So then why did the Fed pull the trigger if this was going to be the result?

It would seem that there are two obvious conclusions.

  • Either Fed officials are completely and utterly incompetent,
  • or they were purposely trying to crash the stock market.

And now that the Federal Reserve is completely out of interest rate ammunition to fight any future economic downturn, the only weapon they have left is “helicopter money”.

As economic activity comes to a grinding standstill due to fear of the coronavirus, it appears to be inevitable that we will see tremendous inflation as the Fed floods the system with money.

In other words, there is going to be a whole lot more money chasing a lot fewer goods and services in the months to come.

Meanwhile, we are already starting to see a run on U.S. banks.  On Thursday, so many people were taking money out of a Bank of America branch in midtown Manhattan that it actually ran out of cash

As the stock market was having its worst day in 30 years on Thursday, customers at a Bank of America branch in Midtown Manhattan, the financial heart of New York, were lining up to take cash out of their accounts — sometimes tens of thousands of dollars at a time.

So many people sought huge sums that the bank branch, at 52nd Street and Park Avenue, temporarily ran out of $100 bills to fulfill large withdrawals, according to three people familiar with the branch’s operations. The shortage hit after a rash of requests for as much as $50,000, said two people who witnessed the rush.

And according to Zero Hedge, wealthy individuals in the Hamptons are doing the same thing…

As the ultra rich Snake Plisken out of the soon-to-be quarantined Manhattan – where at least one bank has are already run out of $100 bills – to fortify themselves against the viral zombie peasant hordes in their impregnable castles in the Hamptons, one thing they’re looking to hoard is cash, which has caused some substantial pressure on financial institutions in the area, according to Bloomberg. At least one New Yorker had his $30,000 cash withdrawal request denied at a Chase bank after being told the limit was $10,000. Meanwhile, bank employees said they were waiting on a “shipment of cash” to fulfill other requests that have been made exceeding the $10,000 amount.

Other branches in the area were unable to help in fulfilling the request, with the East Hampton branch reportedly telling the Southampton branch that it had “two massive withdrawal orders” of its own that it was trying to deal with.

Hopefully we won’t see similar scenes all over the country in the weeks ahead.

But without a doubt, panic continues to spread all over the globe.  The following examples come from CNN

A woman at an Australian supermarket allegedly pulls a knife on a man in a confrontation over toilet paper. A Singaporean student of Chinese ethnicity is beaten up on the streets of London and left with a fractured face. Protesters on the Indian Ocean island of Reunion welcome cruise passengers by hurling abuse and rocks at them.

The coronavirus risks bringing out the worst in humanity.

Yes, this virus is definitely bringing out the worst in humanity.

Here in the United States, two “panic shoppers” became so enraged with one another that they began hitting each other with broken wine bottles

A brawl erupted in a Georgia Sam’s Club packed with shoppers during which two feuding men slashed each other with broken wine bottles.

A second incident in a Costco in Brooklyn saw an employee pleading with two women to calm down after a screaming match began when carts collided in the mobbed store.

This is why it was so important to get prepared in advance.

For years I have been mocked for telling my readers to “get prepared”, but now those that did are going to be very thankful for the things that they have stored up.

If you are not prepared, you can go brave the giant crowds storming the stores if you wish, but at this point the big stores are going to be one of the very best places in the entire country to catch the virus.

I don’t know about you, but I am not eager to experience the “blinding pain” that survivors of COVID-19 have told us about.  So I would highly recommend avoiding big stores and other major public gathering places as much as possible.

We need to accept that life has changed for the foreseeable future.  According to Newt Gingrich, it is time for us to adopt a wartime mindset…

We should be planning for a worst-case pandemic and using the kind of intensity of implementation which served us so well in World War II. Getting enough ventilators, masks, intensive care units, treatment medications and aggressive community-wide testing are the minimum steps to saving lives and stopping the pandemic.

The Pence-led Coronavirus Task Force has begun to pull things together, but it should have a planning group that creates a worst-case projection and then devises the steps necessary to smother the pandemic and minimize its impact.

And this is also a time for prayer.  In fact, President Trump designated Sunday as a “National Day of Prayer”

President Donald Trump on Saturday declared Sunday, March 15, a “National Day of Prayer for All Americans Affected by the Coronavirus Pandemic and for our National Response Efforts.”

“I urge Americans of all faiths and religious traditions and backgrounds to offer prayers for all those affected, including people who have suffered harm or lost loved ones,” Trump said in his statement announcing the day of prayer.

Let us all hope that this pandemic passes as quickly as possible.

But the CDC just issued new guidelines that recommend that gatherings of 50 people or more not be held for the next eight weeks.

Of course most decision makers in this country will follow those guidelines, and so that means that our lives will not be getting back to normal for at least the next two months.

And it could be a whole lot longer than that.

end

“Checks To Americans On April 6th” But GOP Split Over Virus-Stimulus Package

Treasury Secretary Stephen Mnuchin has summarized the virus aid proposal in a fact sheet which would provide $500 billion in aid checks in two installments; $200 billion in corporate aid and $300 billion for small businesses.

Checks to Americans would come on April 6 and May 18 if approved.

* * *

Senate Republicans are divided over how to structure the coronavirus stimulus package that looks like it may cost nearly $1 trillion, according to The Hill.

Disagreements range from whether to only hand cash to Americans who miss paychecks due to the pandemic, or distribute money to all adults in a bid to stimulate the economy.

Another point of contention is whether economic aid should be delivered through unemployment benefits should go to those whose income has been affected, or whether it should go to businesses in the form of loans or reductions in payroll tax.

Another topic under heated debate is targeted bailouts – such as the $50 billion requested to keep the airline industry afloat.

President Trump and Treasury Secretary Steven Mnuchin favor a generous economic assistance package, but GOP lawmakers are calling for loans instead of direct payments.

Everybody’s got their own idea,” Sen. John Hoeven (R-N.D.) said after his conference met with Mnuchin and National Economic Council Director Larry Kudlow. “Everybody wants to make sure we get the help out to people that need it. There are different ideas on how best to do it.”

In a sign of the difficulties to come, the Senate as of Tuesday evening could not agree on how to proceed to a vote on a much simpler $104 billion coronavirus relief bill already approved by the House. The $1 trillion package will be a tougher battle. –The Hill

The Senate, which Majority Leader Mitch McConnell (R-KY) has pledged won’t leave town until it passes the bill, may delay the bill into next week or longer to hammer out the massive stimulus package.

As we reported last week, Sens. Mitt Romney (R-UT) and Tom Cotton (R-Ark) have advocated for direct payments to adult Americans, including those who don’t miss paychecks – as it will be stimulative to the economy.

Romney, who favors sending out $1,000 checks, says it will help families meet their short-term financial obligations and ease the burden on students entering the workforce.

Cotton has a slightly different idea. He wants the Treasury Department to cut tax-rebate checks of $1,000 for every adult tax filer making less than $100,000 per year and an extra $500 for each claimed dependent. –The Hill

Mnuchin and Kudlow proposed a $250 billion first round of direct checks, followed by another $250 billion in a second round if needed.

That said, several GOP Senators are opposed to cash handouts, with Judiciary Committee Chairman Lindsey Graham (R-SC) calling direct checks “money wasted.”

“It won’t help the economy just throwing money at a problem,” Graham told reporters following a Senate Republican lunch meeting last Tuesday, at which Mnuchin and Kudlow were present. “I don’t know why giving a thousand dollars on top of their paycheck makes any sense now because there’s no economy to participate in. I’d rather take that money and shore up health care systems,” he added.

Indiana Senator Mike Braun (R) said on Tuesday that cutting the payroll tax makes “more sense” than “cash payments or this stipend idea,” adding that he wouldn’t rule out supporting direct payments as long as they are limited to hourly workers directly affected by the pandemic.

Further debate has been had over whether to increase loans and grants to small businesses, or beef up unemployment insurance.

Braun, a former small business owner, says it’s better to beef up unemployment insurance benefits, but other Republicans are pushing for pouring hundreds of billions of dollars into direct assistance for small businesses.

Mnuchin on Tuesday proposed $250 billion in assistance for small businesses, according to Hoeven. –The Hill

Florida Senator Marco Rubio (R), who chairs the Small Business Committee has been pushing for direct assistance to small businesses.

There’s strong conviction and belief that we’re going to have to step up, using the local banks and all the banks to participate in a program guaranteed by the [Small Business Administration] to provide immediate cash availability to businesses in order to be able to maintain workers,” he said, adding that the administration wants to utilize an existing Small Business Administration (SBA) loan program which guarantees loans to small businesses.

Sen. Susan Collins (R-Maine) is working with Rubio and Mnuchin on a plan to give cash-flow assistance to employers who agree not to lay off workers. Her program would consist of a forgivable loan contingent upon employers continuing to pay employees.

Finally, debate over how to provide assistance to major corporations and industries has been raging.

Mnuchin warned on Tuesday that airlines are in danger of grinding to a halt and said he has been in conversations “around the clock” with airline CEOs.

“We’re going big,” Trump told reporters Tuesday morning. “We don’t want airlines going out of business. We don’t want people losing their jobs and not having money to live.

But Republican senators are warning they will not support a bailout of the airline industry similar to what happened in 2009, when President Obama’s administration pumped tens of billions of dollars into ailing banks during the financial crisis. –The Hill

A lot of us our against a bailout,” said Senate Appropriations Committee Chairman Richard Shelby (R-AL), who would instead back business loans.

And Sen. Josh Howley (R-MO) says that any industry seeking significant economic aid should prepare to agree to concessions that would bring jobs back to the United States.

“I will say this about industries who come to us and want significant relief: For those that have significant supply chains in China, I want to see some commitments they’ll move those supply chains out of China and back to the United States,” said Howley – adding that industries under consideration for benefits should be selected on a “case-by-case basis.”

“What is the overall economic distress? What will it do for actual workers?” he added.

END
Some good and some bad news today:
The good: commercial paper rates are sliding with the Fed intervention
The bad:  FRA-OIS which is a measure of dollar scarcity continues to blow up
the latter one is the more impt. number
(zerohedge)

Finally Some Good News: Commercial Paper Rates Slide, FX Basis Improves

After the Fed went into full panic mode, unleashing at least two of the crisis measures that were first launched in the depth of the Global Financial Crisis, which however failed to ease either the dollar shortage, with the Bloomberg dollar index surging to 3 year highs and the FRA/OIS blowing up again…

… or investor fears, as can seen in the crashing stock market after Mnuchin bizarrely decided to terrify everyone with his prediction of a 20% unemployment rate, we do note two tentative signs of improvement: first and foremost, three-month AA rated commercial paper rates for financial and non-financial companies eased on Wednesday after the Fed announced it would restart the CPFF crisis-era program to ease strain in credit markets. To wit:

  • Three-month AA financial CP rate fell to 1.25% on March 17, from 1.35% a day earlier
  • Three-month A2/P2 non-financial CP fell to 2.53%, from 3.04% a day earlier

It wasn’t all good news, and confirming that the Fed’s money has yet to reach all parts of the paralyzed Commercial Paper market, 3-month AA non-financial CP rose to 1.65% on March 17, from 1.34% a day earlier, indicating that money markets remain are still on the verge.

Also overnight we received confirmation of FX swap line usage, with global central banks announcing take-up as the BoJ provided $30BN in its 84-day operation and $2BN in its 7-day operation while the ECB provided $76bn in its 84-day operation and another $36bn in its 7-day. This substantial take-up, coupled with various banks announcing they were willing to access the Fed’s discount window, resulted in a sharp drop tightening in yet another key funding stress indication, i.e., the FX basis, with 3M FX OIS in both EURUSD and USDJPY tightening dramatically.

And while there has been some improvement in CP and FX swaps, stress still remains in the system with both FRA/OIS and LIBOR still rising (potentially on counterparty worries).

 

Commenting on the reversal, hopeful Wall Street analysts predicted that the most acute pressures on the FX basis have likely passed, absent another large shock to the system. The question is when will this easing in funding stress finally spill over to the broader market.

END

MARK CUBAN IS perfectly correct.

a must view

Mark Cuban On Virus-Bailouts: “No More Buybacks. Not Now, Not A Year From Now. Not Ever.”

Mark Cuban appeared on CNBC this morning to talk about the idea of the Fed and the Treasury collectively bailing out the entire economy. Ostensibly still disgusted from The Great Recession, where zero executives were held accountable and most of the Fed’s TARP money went to line the pockets of executives and widen the inequality gap, Cuban had some choice words – and some good ideas – for what life should be like post-bailouts and after the coronavirus crisis ends.

Speaking to Andrew Ross Sorkin, Cuban lamented bailouts in the past that have ignored the middle class and sought to place accountability on the executives that have put their companies in such precarious positions, mostly through buybacks, that they can’t weather the storm of an economic slowdown on their own.

“We already know what’s going to happen,” Cuban said.

“A year after this plays out, and it will, we’ll look back and say why didn’t we consider the workers? The everyday hourly worker. The people making minimum wage. Why didn’t we reward them as well?” 

He continued:

“And so let’s get ahead of it and whatever we do in a bailout, make sure that every worker gets compensated and is treated equally and that the executives don’t get rewarded extra to stick around, because they have nowhere else to go.”

“The government has taken their risk out of their equation, so let’s treat all workers equally,” Cuban said.

“How do we do that?” Sorkin asked.

Cuban responded:

“Two different things. Getting money into the system is a function of the Fed. And they’re obviously taking those steps right now. Two, when there is a bailout, when a government comes in and offers assistance to an organization or a public company – whether its an airline or whatever it may be. There are most likely going to be steps taken by the company, and historically this is what has taken place, where they reward the executives. They reprice their options, they give them more stock, they give them warrants.”

He continued:

“Whatever it is that a company does for their executives, they should be required to proportionally do the same thing for everyone else that works for the company. Period, end of story.” 

“No buybacks. Not now, not a year from now, not 20 years from now. Not ever,” Cuban concluded.

“Effectively you’re spending taxpayer money to buy back stock and for me, that’s just the wrong way to do that.”

Even Jim Cramer weighed in on Twitter, supporting Cuban’s views:

Jim Cramer

@jimcramer

@mcuban It is very rare that i read something that i totally and unequivocally agree with. Below is one of those reads. I am so tired of the rich profiting from every cataclysm. This is the time to reset the system in favor of the working person. Right Now! https://twitter.com/mcuban/status/1239901248167522304 

Mark Cuban

@mcuban

I know this is early but wanted to get ahead of the politics. If we are going to bailout companies we need to make sure all employees benefit from a turn around, not just execs. ⁦@jimcramer⁩ ⁦@CNBC⁩ ⁦@CNBCFastMoney⁩ ⁦@ScottWapnerCNBC

View image on Twitter

Here’s the video of Cuban’s interview:

Squawk Box

@SquawkCNBC

“No buybacks. Not now, not a year from now, not 20 years from now. Not ever.” @mcuban on attaching terms to companies that need a government bailout during the outbreak.

Embedded video

END
this is good for business:  The Big 3 automakers shutter all domestic manufacturing over virus concerns
(zerohedge)

‘Big 3’ Detroit Automakers Shutter All Domestic Manufacturing Over Virus Concerns

At the urging of UAW leaders, all three of Detroit’s “Big 3” automakers announced around midday on Wednesday that they would shutter all domestic production. The decision follows Daimler, BMW and a handful of other car makers in Europe and Asia shuttering factories to combat the coronavirus outbreak – and to prevent a glut of supply.

END

“It’s Getting Worse” – Hoarding Panic Forces Supermarkets To Impose Buying-Limits

Panic hoarding food and supplies by British and American shoppers has surged in recent weeks, as social distancing policies enforced by their respected governments to flatten the curve to slowdown infections are leading to mass quarantines.

Consumers are stocking up on food and supplies, as they have no idea when the quarantines will end. They see the fast-spreading virus leading to increased cases and deaths, and this has triggered fear about a pandemic, leading many to stockpile nonperishables, wiping store shelves clean, prompting supermarkets and pharmacies in both countries to impose buying-limits on goods.

On Wednesday, Prime Minister Boris Johnson said there was no reason for consumers to stockpile supplies. It has become evident that rising cases and deaths in the UK has led to mass panic.

ITV News Meridian

@itvmeridian

Supermarkets in the are struggling to keep up with the growing demand as customers stock up on essentials.

Some of the shelves in this store in were left empty.

UK retailers are urging customers to be considerate and shop responsibly.

Embedded video

A source at the country’s top supermarket told Reuters, “it’s getting worse.”

Sainsbury’s, the second-largest chain of supermarkets in the UK, had to place restrictions on certain products to keep store shelves stocked. Tesco, another major supermarket in the country, told customers this week that they could only purchase two packs of dried pasta, toilet paper, and milk.

Sainsbury’s, Tesco, Asda, Morrisons, Aldi, and Lidl have all placed some form of buying restrictions on certain products while struggling to keep store shelves stocked.

John Payne@JohnPay81177462

On TV this morning they put their that there is no need to to panic and Rush out to buy toilet paper because it is made in the UK I have been to 7 local shopping stores and none of them have got any toilet paper as you can see this is my local store ASDA

Embedded video

“We are currently facing unprecedented challenges and uncertainty dealing with COVID-19,” Morrisons chairman Andrew Higginson, and its CEO David Potts said.

The same panic has swept across the Atlantic into the US for about a month. Supermarkets and pharmacies from coast to coast have placed purchase restrictions on water, toilet paper, hand sanitizer, medicine, and masks.

We’ve documented the mayhem that has unfolded at Costco stores over the last three weekends. Now the panic hoarding has gravitated to weekdays, outlining how the crisis is worsening. Social distancing policies in the US could soon limit how many customers are in stores, which could create massive lines that would take hours before one stepped into a store. Many are worried that several states closing down restaurants and bars could lead to Italy-style shutdowns in New York, California, and Washington.

Evelyn pavane@EvelynPavane

This is two seperate incidents.
The first one ended in a knife fight while the second was about carts touching.
The fact it happened in Costco and Sam’s Club is no shock..
It’s like Walmart on black Friday.
It’s ridiculous.

Embedded video

NJ.com says grocery stores across New Jersey have seen store shelves stripped bare. Cleaning supplies, over-the-counter medicines, toilet paper, water, and other critical products for survival have been limited per customer.

Aldi CEO Jason Hart announced over the weekend that limits would be placed on certain products across the US. Hart said stores would see a reduction of operating hours “to accommodate restocking and cleaning.”

Costco has placed two purchase limits on toilet paper, reported AdAge. We’ve noted this on several occasions as social media users have posted pictures of the limitations.

Target announced last week that certain products would be limited per person though the limit could vary depending on the store.

Walgreens recently said that purchase limits had been enforced at all stores on certain products to “improve inventory and to help ensure products can be more widely available.”

Walmart has announced per customer product limits, a reduction of operating hours, and closure of certain stores, along with specific shopping hours for the elderly.

Stop & Shop is another retailer that has reserved special shopping hours for the elderly. Anyone who is 60 and over can shop at any one of its stores in the Northeast between 6 am and 7:30 am, without worrying about the chaos from younger shoppers.

Whole Foods has placed buying restrictions on hand sanitizer, disinfectant, cleaning wipes, toilet paper, and water purchases.

We noted earlier this week that if panic continues in the UK, the odds of troops deployed to hospitals, supermarkets, and on streets, will dramatically increase in the weeks ahead.

So far, the Pentagon has mobilized 1,500 troops across the US to combat the virus. It’s only a matter of time before troops could be deployed outside grocery and other big-box retailers to keep the peace as the virus crisis is expected to deepen in weeks ahead.

end

 

iv) Swamp commentaries)

 

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

Fed to Reinstate Commercial Paper Fund Facility

https://www.reuters.com/article/health-coronavirus-commercialpaper/fed-to-reinstate-commercial-paper-funding-facility-source-idUSL1n2BA0NQ

Statement from Secretary Steven T. Mnuchin on the Establishment of a Commercial Paper Funding Facility to Support the Flow of Credit to Households and Businesses

The vehicle would purchase commercial paper that is currently rated A-1/P-1/F1 by a nationally recognized statistical rating organization (NRSRO) and, if rated by multiple major NRSROs, is currently rated at least A-1/P-1/F1 by two or more major NRSROs…  https://home.treasury.gov/news/press-releases/sm944

White House eyes massive $850B stimulus package next, as Senate moves on latest coronavirus bill

Roughly $500 billion of this would be tied to a payroll tax cut, while $250 billion would come in the form of Small Business Administration loans and another $58 billion would be directed to the airline industry, among other measures…

https://www.foxnews.com/politics/as-senate-moves-on-second-coronavirus-bill-lawmakers-eye-big-money-for-third-pandemic-fighting-package

The Fed did $189B of repos on Tuesday: $46.6B in term, $142.65B O/N

For the second consecutive session, the NY Fed announced an afternoon repo of $500B.

https://www.newyorkfed.org/markets/opolicy/operating_policy_200317

Three-month dollar LIBOR had its biggest surge (16.25 bps to 1.05188%) since October 2008.

The dollar jumped 1.7% while gold soared as much as 4.5%.  This is unusual activity – but conflated with the LIBOR surge, we can surmise that Europe is very sick.

Mnuchin said, “We are looking at sending checks to Americans immediately.”  Individuals can delay, for 90 days, up to $1m of taxes due, corporations up to $10m.  Details of the stimulus package will appear Tuesday evening.

NYC Mayor de Blasio killed the afternoon rally.  @CBSNews: NYC Mayor Bill de Blasio says “New Yorkers should be prepared for the possibility of ashelter-in-place order.”  A decision is expected to be made in the next 48 hours https://cbsn.ws/2vxOZ2S

Citigroup contributed to the afternoon decline, sinking as much as 5%.  A rally appeared during the final 25 minutes because the Fed said it will conduct two $500B overnight repo operations each day for the rest of this week.  https://www.cnbc.com/2020/03/17/fed-announces-another-500-billion-operation-for-overnight-repo-funding-markets.html

US Retail Sales declined 0.5% m/m in February; +0.2% was expected.  However, January was revised to +0.6%from 0.3%.  Ex-Auto sales fell 0.4%; +0.1% was expected.  January was revised to 0.6% from 0.3%.  Ex-Auto & Gas sales declined 0.2%; +0.3% was expected.  Jan revised to 0.7% from 0.4%.

Israeli Nobel Laureate: Coronavirus spread is slowing [He simply crunched the numbers...]

Michael Levitt praised Israel for its preventative measures. He said most people are naturally immune, and that since the infection rate in China is slowing down, “the end of the pandemic is near.”

https://www.jpost.com/HEALTH-SCIENCE/Israeli-nobel-laureate-Coronavirus-spread-is-slowing-6211

The monumental risk remains that the Fed has lost control of the stock market because it spent its heavy weaponry for nothing.  There is little the Fed can do, except to go Weimar lite.

What is truly different from the past 75 years is that large chunks of the global economy are shutdown.

This is uncharted territory.  No one knows the extent of damage to economies, companies and citizens.

Last night, the Fed said it will open an emergency lending program for primary dealers.  The Fed will provide overnight and term funding for dealers.  This is necessary with bonds in collapse.

BBG’s @SalehaMohsin: Mnuchin warned the U.S. could see 20% unemployment in a meeting with Republican senators on Tuesday…@TreasurySpox Monica Crowley: “During the meeting with Senate Republicans today, Sec. Mnuchin used several mathematical examples for illustrative purposes, but he never implied this would be the case.” Mnuchin didn’t predict unemployment would reach 20% per say but told the senators that he believes the economic fallout from the Coronavirus Outbreak is potentially worse than the 2008 financial crisis.

@realDonaldTrump: We have to get tough with China before they destroy us. 2:29 PM · Aug 21, 2012

@realDonaldTrump: China is not our friend. They are not our ally. They want to overtake us, and if we don’t get smart and tough soon, they will. 2:35 PM · Feb 21, 2013

Ex-NSC official @RichHiggins_DC: We’ve been in a state of conflict with China for a long time.  Our “elites” were fighting for their side.Many still are.  I can’t speak to the intentionality of the original release of the “crown pneumonia” (what they call it) but their actions since its release speak volumes.

National Review: China Boomerang – Its bad behavior in the wake of COVID-19 will leave it in its weakest global position in memory. And the U.S. will emerge stronger.

 “Call it paradox, irony, karma, or even tragedy, but China emerges from its deceit about the coronavirus outbreak in its weakest position since its Westernization began under Deng Xiaoping

https://www.nationalreview.com/2020/03/coronavirus-china-response-will-weaken-it-on-world-stage/

Barr: FBI probing if foreign gov’t behind HHS cyber incident

There would be swift and severe action if a foreign government is behind disinformation campaigns aimed at spreading fear in the U.S… https://apnews.com/25dfa8052209e1970db7f5a58913657b

WaPo’s Jennifer Rubin: More Republicans than Democrats Will Die Because Right-Wing Media Is Downplaying Coronavirus https://www.realclearpolitics.com/video/2020/03/15/jennifer_rubin_more_republicans_than_democrats_will_die_of_coronavirus_because_right_wing_media_is_downplaying_threat.html

END

WELL THAT IS ALL FOR TODAY

I WILL SEE YOU TOMORROW

H

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