MARCH 19/ANOTHER HUGE VOLATILE DAY: GOLD DOWN 90 CENTS TO $1476.30//SILVER UP 38 CENTS TO $12.12//BIG DISCONNECT BETWEEN PHYSICAL SILVER AND PAPER SILVER//CORONAVIRUS UPDATE//LAGARDE FIRES HER BAZOOKA OF A HUGE 750 BILLION QE AND GOLD FALLS//BANK OF ENGLAND LOWERS ITS DISCOUNT RATE TO .10//MUNI MARKET CRASHES//

GOLD::$1476.30  DOWN $0.90

 

 

 

Silver:$12.12//UP 38 CENTS (COMEX TO COMEX CLOSING)

 

 

 

 

Closing access prices:

 

 

 

Gold : $1474.00

 

SILVER:  $12.08

 

 

 

COMEX DATA

 

 

 

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

today RECEIVING: 0/62

DLV615-T CME CLEARING
BUSINESS DATE: 03/18/2020 DAILY DELIVERY NOTICES RUN DATE: 03/18/2020
PRODUCT GROUP: METALS RUN TIME: 22:21:07
EXCHANGE: COMEX
CONTRACT: MARCH 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,477.300000000 USD
INTENT DATE: 03/18/2020 DELIVERY DATE: 03/20/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
435 H SCOTIA CAPITAL 44
657 C MORGAN STANLEY 24
737 C ADVANTAGE 18 11
800 C MAREX SPEC 5
905 C ADM 22
____________________________________________________________________________________________

TOTAL: 62 62
MONTH TO DATE: 1,850

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 62 NOTICE(S) FOR 6200 OZ (0.1928 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1850 NOTICES FOR 18500 OZ  (5.7542 TONNES)

 

 

 

 

SILVER

 

FOR MARCH

 

 

86 NOTICE(S) FILED TODAY FOR 430,000  OZ/

total number of notices filed so far this month: 4141 for 20,705,000 oz

 

BITCOIN MORNING QUOTE  $5567 UP $206 

 

BITCOIN AFTERNOON QUOTE.: $6134 UP 776

GLD AND SLV INVENTORIES:

 

GLD: 929.69 TONNES OF GOLD//NO  CHANGES:

 

 

 

A MONSTROUS 5.597 MILLION OZ WAS ADDED WITH SILVER UP 38 CENTS

 

SLV: 370.835 MILLION OZ./

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A CONSIDERABLE SIZED 2643 CONTRACTS FROM 166,682 DOWN TO 164,039 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020.  THE LOSS IN OI OCCURRED WITH OUR HUGE 75 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 8,102 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: 10,745 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  10,745 CONTRACTS. WITH THE TRANSFER OF 10,745 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 10,745 EFP CONTRACTS TRANSLATES INTO 40.51 MILLION OZ  ACCOMPANYING:

1.THE 75 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

21.705  MILLION OZ INITIALLY STANDING FOR MAR

 

WEDNESDAY, 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 75 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 8429 CONTRACTS OR 42.145 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:

63,732 CONTRACTS (FOR 14 TRADING DAYS TOTAL 63,732 CONTRACTS) OR 318.660 MILLION OZ: (AVERAGE PER DAY: 4552 CONTRACTS OR 22.76 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR: 318.660 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:          759.67 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…..          318.66 MILLION OZ (14 TRADING DAYS AND ALREADY SURPASSED FEB AND JAN MONTHLY TOTALS)

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2643, WITH THE $0.75 LOSS IN SILVER PRICING AT THE COMEX /WEDNESDAY… THE CME NOTIFIED US THAT WE HAD AN ATMOSPHERIC SIZED EFP ISSUANCE OF 10,745 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 :  8102 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (WITH THE 75 CENT FALL IN PRICE

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 10,745 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 2643 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A  75 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $11.74 // WEDNESDAY’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. 0.8240 BILLION OZ TO BE EXACT or 117% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 86 NOTICE(S) FOR  430,000 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: 21.705 MILLION OZ
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE BUT SMALLER THAN EXPECTED 8363 CONTRACTS TO 565,562 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 LOSS IN PRICE OF $48.00 /// COMEX GOLD TRADING// WEDNESDAY// 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 FALL IN PRICE.  ON THE TWO EXCHANGES DESPITE THE HUGE FALL IN PRICE, WE GAINED A HUMONGOUS 10,414 CONTRACTS  (32.39 TONNES)

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS AND CRIMINALLY SIZED 18,777 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 17,748. MAY: 0, AND JUNE. 1029 AND ALL OTHER MONTHS ZERO//TOTAL: 18,777.  The NEW COMEX OI for the gold complex rests at 565,562. 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 10,414 CONTRACTS: 8239 CONTRACTS DECREASED AT THE COMEX AND 18,777 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 10,414 CONTRACTS OR 32.39 TONNES. WEDNESDAY, WE HAD A HUGE LOSS OF $48.00 IN GOLD TRADING…...

AND WITH THAT HUMONGOUS LOSS IN  PRICE, SURPRISINGLY WE STILL HAD A HUGE SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 32.39  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (LOSS $48.00). 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  (18,777) ACCOMPANYING THE SMALLER THAN EXPECTED LOSS IN COMEX OI.(8102 OI):  TOTAL GAIN IN THE TWO EXCHANGES:  10,414 CONTRACTS.  WE NO DOUBT HAD HUGE BANKER SHORT COVERING, STRONG INCREASE IN GOLD OZ STANDING AT THE COMEX, AND NO LONG LIQUIDATION…..COUPLED WITH THAT HUGE  LOSS IN PRICE

 

 

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 : 261,373 CONTRACTS OR 26,137,300 oz OR 812.97* TONNES (14 TRADING DAYS AND THUS AVERAGING: 18,669 EFP CONTRACTS PER TRADING DAY  (*NEW ALL TIME RECORD FOR A MONTHLY EX. FOR PHYSICAL ISSUANCE)

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 14 TRADING DAY(S) IN  TONNES: 812.97 TONNES

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

THUS EFP TRANSFERS REPRESENTS 812.97/3550 x 100% TONNES =23.90% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS EXPLODED THIS MONTH.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   2036.96  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE SO FAR   812.97  TONNES  (//(14 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

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 2643 CONTRACTS FROM 166,682 DOWN TO 164,039 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 ZERO AMOUNT OF LONG LIQUIDATION

 

EFP ISSUANCE 10,745

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: 10,745; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 10,745 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 2643 CONTRACTS TO THE 10,745 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A MONSTROUS GAIN OF 8102 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  42.145 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: 21.705 MILLION OZ

 

 

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 75 CENT FALL IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD AN ATMOSPHERIC SIZED 10,745 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON. THE ENTIRE LOSS OF COMEX OI WAS DUE TO SPREADER LIQUIDATION AND THAT HUGE ISSUANCE OF EX. FOR PHYSICALS.

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

 

(report Harvey)

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 26.63 POINTS OR 0.98%  //Hang Sang CLOSED DOWN 582.69 POINTS OR 2.61%   /The Nikkei closed DOWN 173.72 POINTS OR 1.04%//Australia’s all ordinaires CLOSED DOWN 3.79%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1202 /Oil UP TO 22.44 dollars per barrel for WTI and 25.99 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1202 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1633 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

 

4/EUROPEAN AFFAIRS

i)ECB

Lagarde fires her Bazooka, promising to purchase 750 billion euros worth of European bonds in a Pandemic purchase program

It will also fail

(zerohedge)

ii)ITALY/ THE GLOBE//CORONAVIRUS/UPDATE

(zerohedge)

iii)GERMANY

Germany is now ready to suspend its “debt brake” on this coming Monday as they will then go on a spending spree trying to save Europe
(zerohedge)

iv)UK

England joins the panic parade with another emergency rate cut to .1% and also boos QE by 200 billion pounds to 645 billion pounds
(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN/USA

Iran badly needs help as they do not have the equipment to fight the Coronavirus.  The USA initially offered to help but that was turned down by the Mullahs.  Now the USA increases their sanctions against Iran

(zerohedge)

6.Global Issues

i)No question about it:  the Covid 19 virus could bankrupt almost all airlines in two months.

(zerohedge)

ii)Michael Every on why the USA dollar is soaring and how it affect the globe’s finances

(Michael Every)

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

a)I never thought that this would happen:  all treasury bills up to 3 months are now negative and that is why gold is now backward three months out

(zerohedge)

b)Kudlow says that the USA may take equity positions as part of the coming bailouts

(zerohedge

c)Thursday morning/

Fearing that investors may not get their money back in mutual funds, the Fed announced another bailout to prevent this sector from “breaking the buck”
(zerohedge)

d)Then this Thursday morning:  The Fed expands its dollar swap lines with nine more central banks with an unprecedented dollar short squeeze(zerohedge)

e)The next company to draw down their entire credit line facility is Ford…they suspended their dividend and withdrew any guidance..they are close to a default

(zerohedge)

f)Philly fed crashes

(zerohedge)

g)Trump deploys Navy floating hospital to the New York habour as virus cases soar(zerohedge)

iv) Swamp commentaries)

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

 

LET US BEGIN:

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A SMALLER THAN EXPECTED 8363 CONTRACTS TO 567,951 MOVING FURTHER FROM OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS FALL IN OI WAS SET WITH A STRONG LOSS OF $48.00 IN GOLD PRICING //WEDNESDAY’S  COMEX TRADING//). HOWEVER WE ALSO HAD AN ATMOSPHERIC EFP ISSUANCE (18,777 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..DESPITE THE HUGE LOSS  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 18,777 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 17,748, MAY: 0  JUNE : 1029 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 18,777 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:  10,745 TOTAL CONTRACTS IN THAT 18,777 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 8363 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 WERE  SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL BY $48.00). THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES 32.39 TONNES WAS MAINLY DUE TO BANKER SHORT COVERING AND ISSUANCE OF EXCHANGE FOR PHYSICAL ISSUANCE. 

 

 

NET GAIN ON THE TWO EXCHANGES ::  10,745 CONTRACTS OR 1,074,500 OZ OR  32.39 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:  565,562 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 56.55 MILLION OZ/32,150 OZ PER TONNE =  1758 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1758/2200 OR 79.90% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 197,177 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:

522,066 contracts//

 

 

 

INITIAL standings for  MARCH/GOLD

MARCH 19

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz nil oz

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
62 notice(s)
 6200 OZ
(0.1928 TONNES)
No of oz to be served (notices)
71 contracts
(7100 oz)
0.2208 TONNES
Total monthly oz gold served (contracts) so far this month
1850 notices
185,000 OZ
5.7542 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 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 0 gold withdrawals from the customer account:

 

 

total gold withdrawals;  nil   oz

 

ADJUSTMENTS: 

Out of International Delaware:  5,787.18 oz was adjusted out of the DEALER and this lands into the CUSTOMER account of INT DELAWARE

and this is a deemed settlement:  .1800 tones

 

 

The front month of MARCH saw its open interest register 133 contracts for a GAIN of 49 contracts.. We had 3 notices filed on WEDNESDAY so we gained 52 contracts or an additional 5200 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 8258 contracts DOWN to 227,425 contracts

May saw its ANOTHER LOSS of 5 contracts to stand at 303.

June saw a GAIN of 517 contracts up to 225,850

 

 

We had 62 notices filed today for 6200 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 62 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 (1850) x 100 oz , to which we add the difference between the open interest for the front month of  MAR. (133 CONTRACTS ) minus the number of notices served upon today (62 x 100 oz per contract) equals 192,100 OZ OR 5.9750 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 (1850)x 100 oz)  + (133 OI for the front month minus the number of notices served upon today (62 x 100 oz )which equals 192,100 oz standing OR 5.975 TONNES in this active delivery month which is  a great amount for gold standing for a MAR. delivery month.

We gained 52 contracts or 5200 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 37.529 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………………………………………………………..              5.975 TONNES

 

total: 161.89 tonnes

 

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 9 MONTHS OF SETTLEMENTS WE HAVE 25.88 TONNES SETTLED

 

 

IF WE ADD THE 9 DELIVERY MONTHS: 161.89  tonnes

 

Thus:

161.89 tonnes of delivery –

25.88 TONNES DEEMED SETTLEMENT

 

=136.01 TONNES STANDING FOR METAL AGAINST 37.529 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,762,794.455 oz or  54.83 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:  556,225.900 oz or 17.30 tonnes
thus:
registered gold that can be used to settle upon:1,206,568.5  (37.529 tonnes)
true registered gold  (total registered – pledged tonnes  1,206,568.5  (37.529 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..

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..

And now for the wild silver comex results

Total COMEX silver OI FELL BY A CONSIDERABLE SIZED 2643 CONTRACTS FROM 166,682 DOWN TO 164,039 (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 75 CENT DECREASE IN PRICING/WEDNESDAY.  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 286 CONTRACTS  WITH A LOSS OF 33 CONTRACTS. WE HAD 60 CONTRACTS ISSUED YESTERDAY SO WE GAINED 27 CONTRACTS OR 135,000 ADDITIONAL OZ WILL STAND FOR DELIVERY AS THEY REFUSED TO  MORPH INTO LONDON BASED FORWARD CONTRACTS AS WELL AS NEGATING A FIAT BONUS. THEY AGAIN ARE TRYING TO FIND PHYSICAL SILVER ON THIS SIDE OF THE POND TO WHICH THERE IS NONE.

 

THE NEXT CONTRACT MONTH OF APRIL SAW A LOSS OF 47 CONTRACTS DOWN TO 398 CONTRACTS. THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 3245 DOWN TO 104,613

 

 

We, today, had  86 notice(s)  for 420,000, 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 19/2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,816,714.114 oz
BRINKS
SCOTIA

 

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
556,207.600 oz
Scotia
No of oz served today (contracts)
86
CONTRACT(S)
(430,000 OZ)
No of oz to be served (notices)
200 contracts
 1,000,000 oz)
Total monthly oz silver served (contracts)  4141 contracts

20,705,000 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: 556,207.600 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: 556,207.600   oz

we had two withdrawals:

i) Out of CNT:  1,216,093.346 oz

ii) Out of Scotia:  600,620.770  oz

 

 

 

 

 

 

total withdrawals; 1,816,714.114  oz

We had 0 adjustments:

total dealer silver:  80.212 million

total dealer + customer silver:  320.723 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the MAR 2020. contract month is represented by 86 contract(s) FOR 430,000 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 4141 x 5,000 oz = 20,705,000 oz to which we add the difference between the open interest for the front month of MAR.( 286) and the number of notices served upon today 86 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 4141 (notices served so far) x 5000 oz + OI for front month of MAR (286)- number of notices served upon today (86) x 5000 oz equals 21,705,000 oz of silver standing for the MAR contract month.

WE GAINED 27 CONTRACTS OR 135,000 OZ WILL STAND FOR DELIVERY ON THIS SIDE OF THE POND

 

 

 

 

<

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

 

TODAY’S ESTIMATED SILVER VOLUME: 42,022 CONTRACTS //

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 137,698 CONTRACTS..,

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 137,698 CONTRACTS EQUATES to 688 million  OZ  98.3% 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 +1.17% ((MARCH 19/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.62% to NAV:   MAR 19/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into POSITIVE/ 1.17%

(courtesy Sprott/GATA

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

NAV 13.19 TRADING 12.49///DISCOUNT 5.28

END

 

And now the Gold inventory at the GLD/

MARCH 19/WITH GOLD DOWN 90 CENTS: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 929.84 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

MARCH 19/2020/Inventory rests tonight at 929.84 tonnes

*IN LAST 782 TRADING DAYS: -7.54 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 682 TRADING DAYS;+ 158.59. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 19/WITH SILVER UP 38 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: ANOTHER 5.597 MILLION OZ OF SILVER VAPOUR ADDED TO THE SLV INVENTORY//INVENTORY RESTS AT 370.835 MILLION OZ/

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.

 

 

MARCH 19.2020:

SLV INVENTORY RESTS TONIGHT AT  370.835 MILLION OZ.

 

END

LIBOR SCHEDULE AND GOFO RATES:

6 Month MM GOFO 0.85/ and libor 6 month duration 0.88

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

G0LD LENDING RATE: + .03

 

XXXXXXXX

12 Month MM GOFO
+ 0.89%

LIBOR FOR 12 MONTH DURATION:0.86

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.03

end

 

 

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

ECB Creates EUR 750 Billion To Buy ‘Safe Haven’ Bonds; Pound Falls To Near Record Low in Gold

◆ “There are no limits to our commitment to the euro,” ECB President Christine Lagarde pronounced as the ECB began to create an additional EUR 750 billion in order to buy government and corporate debt in an emergency move overnight.

◆ Gold prices in euros are marginally higher at €1,369/oz and in British pounds gold has gained another 0.5% to £1,289/oz very close to the all time record nominal high of £1,304.50/oz (See charts and table below).

◆ Gold in pounds has surged over 8.4% since Monday; Sterling is coming under massive selling pressure yesterday and fell to multi decade lows due to deepening concerns about the impact of the virus and the lock down of London on the City of London, UK financial markets and banks the economy.

◆ The ECB’s drastic move to “QE to infinity” was prompted by sharply slowing EU economies, the collapse of European and global stock markets and European bond markets beginning to come under pressure with yields moving higher.

◆ The move has seen Italian and other vulnerable European bonds move higher overnight and yields move lower in the short term …

◆ Stock markets globally saw more massive falls yesterday prior to Asian and European markets appearing to stabilise this morning

◆ Oil prices crashed another 13% yesterday, the 3rd largest fall in history which pushed prices to 20 year lows; Demand is falling due to massive contraction in the aviation, tourism and associated industries and the coming massive economic contraction.

◆ Demand for gold and silver bullion remains near record highs and supply is anemic at best. We have suspended deliveries but clients can still secure bullion in GoldCore Secure Storage. We continue to see assets moving to our vaults from digital gold platforms and investors concerned about gold ETFs viability in the event of the many custodians and sub custodians getting into difficulty or in the event of another systemic crisis.

Gold in Euros (15 Years)
Gold in GBP (15 Years)
Watch interview here

NEWS and COMMENTARY

Massive Surge in Silver Bullion Buying: Totally Distorted & Broken Markets

ECB announces €750bn pandemic purchase programme

European markets shun ECB stimulus package and head for lower open

Wall Street extends recent selloff, puts Dow on course to erase ‘Trump-bump’

Pressure growing for U.S. Federal Reserve to lend directly to U.S. businesses: sources

U.S. oil plunges to 18-year low as lockdowns trigger market meltdown

Bullion bank and central bank precious metals collusion

Analyst doesn’t get it but at least silver coin premiums astound him

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

18-Mar-20 1506.00 1498.20, 1254.50 1271.22 & 1367.00 1378.04
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

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Mark O’Byrne

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Silver prices are now spot plus $8.00//some dealers are now asking 2 x spot or a premium of $12.00

Heller/Street.com

Another analyst doesn’t get it but at least silver coin premiums astound him

 Section: 

There’s an Interesting Situation Playing Out in the Silver Markets

By Jonathan Heller
TheStreet.com, New York
Wednesday, March 18, 2020

https://realmoney.thestreet.com/investing/there-s-an-interesting-situati…

Asset repricing is in full swing as uncertainty pushes Treasuries higher and stocks lower. In this environment, precious metals are getting crushed — it’s not the type of “uncertainty” that bodes well for metals.

Yet there’s an interesting situation playing out in the silver markets, as the spot price of “poor man’s gold” has fallen 34% since topping out at $18.99/ounce on February 24. Currently trading at $12.57 as I write this, that’s an 11-year low that occurred during the 2008/2009 market meltdown.

… 

Seems like it could be an interesting entry point, especially if you believe that the “correction” in the spot price has gone too far to the downside.

However, if it’s physical silver you wish to purchase, good luck finding it anywhere near the spot price. At two renowned precious metals dealers I surveyed this morning, physical silver is selling at massive premiums to the spot price.

What is known as “junk silver,” primarily 90% pure silver coins minted in the U.S. prior to 1965, with no numismatic value, can be had for about $20.62/an ounce ($1,475 for a $100 face value bag of junk silver that contains 71.5 ounces of silver). That’s a premium of nearly $8, or a whopping 63% above silver’s current spot price.

One-ounce Silver American Eagle coins have even higher spreads to the spot price. In lower quantities it can be $12/ounce, a 95% premium to spot.

Business is brisk and inventories are low or empty, as consumers clamor for physical metal they can hold in their hand. I’ve never seen premiums this high, which is an indicator of the fear that is so prevalent.

Silver is especially popular because it can be purchased in very small increments. In the doomsday scenario, silver dimes, quarters, half dollars, silver dollars, and even nickels minted between 1942 and 1945, which contained 35% silver are small enough that they could be exchanged for smaller goods.
That’s one of the draws here, but the disconnect between the spot price and physical silver is astounding.

There are other ways to get exposure to silver. The iShares Silver Trust (SLV), for instance, somewhat closely tracks the price of an ounce of silver. While the trust does hold physical silver, it has continued to follow the spot price lower.

Clearly there’s a huge disconnect between the price of spot silver and physical silver, the latter in high demand as fear runs rampant. It’s a good representation of the adage that “a bird in the hand is worth two in the bush.”

When the fear subsides, however, I’d expect the premium over spot to decline sharply and the price of spot silver to rise, closing the gap between the two. When that could happen is up in the air, however.

—–

Jonathan Heller is president of KEJ Financial Advisors.

end

Torgny Persson: The window to purchase precious metals with fiat currency is closing

 Section: 

By Torgny Persson
Bullion Star, Singapore
Wednesday, March 18, 2020

More and more refineries, mints and fellow bullion dealers are suspending their operations indefinitely. At Bullion Star we are facing significant operational and stock inventory challenges. There’s an acute shortage for, particularly, gold coins, silver bars, and silver coins.

For gold bars, some of the private refineries are still open and take orders but have long backlogs.

… 

What does this mean for price premiums?

Due to the paper spot and futures precious metals markets not reflecting the demand and supply for physical precious metals, premiums are high and are fluctuating a lot.

The precious metals price premium mechanism is there to balance physical demand and physical supply of precious metals.

Despite higher-than-normal premiums, demand for physical precious metals continues to be overwhelming. We receive several hundred orders each day. We’ve had two-hour waiting times in the shop even though we just expanded the shop to five counters and even though we have an extremely efficient system for serving customers. At BullionStar we currently have about eight customer buy orders for every customer sell order, which is the highest we have seen in years. …

… For the remainder of the report:

https://www.bullionstar.com/blogs/bullionstar/bullionstar-update-the-win…

end

Stefan Gleason: Is this what peak fear looks like?

 Section: 

By Stefan Gleason
Money Metals News Service, Eagle, Idaho
Tuesday, March 17, 2020

The last few days have been like nothing most of us have ever experienced — or are likely to experience again in our lifetimes.

Panic has spread from the streets of Wuhan to the grocery stores of America’s heartland, from nursing homes to the Federal Reserve Board, from the stock market to the gold and silver markets.

Like other asset classes, the precious metals space is being rocked by rapidly accelerating developments, some of which haven’t occurred for decades and some of which haven’t occurred ever.

… 

.These unprecedented times are testing the mettle of precious metals investors like never before.

Gold and silver are meant to provide safe haven from financial turmoil. Safe haven demand for physical bullion has indeed surged. The pace of buying has been so furious in recent days that some dealers are literally running out of product to sell, and the scarcity has driven premiums are sharply higher.

So why haven’t gold prices skyrocketed? For one thing, the bullion market is relatively small compared to the highly leveraged futures market that sets spot prices. Gold can get pulled down on any given day for no other reason than panicked traders need to sell it in order to raise cash.

When comparing gold to other assets, however, the monetary metal is performing exactly as it should during a time of crisis. Gold has risen strongly when measured against a crashing stock market over the past few weeks. It has spiked to multi-decade highs versus both crude oil and silver.
The gold:silver ratio has now entered previously uncharted territory. On Monday it spiked to 116:1. Put another way, a single ounce of gold could buy a staggering 116 ounces of silver. …

… For the remainder of the commentary:

https://www.moneymetals.com/news/2020/03/17/this-is-what-peak-fear-looks…

.end

Astounding gold-silver ratio discussed by GATA chairman with Arcadia Economics

 Section: 

8:58p ET Wednesday, March 18, 2020

Dear Friend of GATA and Gold:

The astounding gap in the gold-silver ratio is discussed at length in GATA Chairman Bill Murphy’s interview today with Chris Marcus of Arcadia Economics. Silver coin premiums, Murphy notes, have exploded and shortages have developed even as the silver futures price has plunged. The interview is not quite 19 minutes long and can be viewed at YouTube here:

https://www.youtube.com/watch?v=YKHp-ColHqI

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

end

iii) Other physical stories:

Visualizing Central Bank Gold Buying And Gold Repatriation

Submitted by BullionStar.com,

Gold buying by the worlds’ central banks is now at a 50 year high, with sovereign gold buyers having added a net 650 tonnes of physical gold to their strategic monetary reserves in each of the years 2018 and 2019.

Central banks purchase gold for a number of reasons, chief among them being that gold provides protection in times of acute market crisis and stress.

Gold is “a major line of defense under extreme market conditions”, says the Hungarian central bank.

Gold provides a kind of anchor of trust, especially in times of stress and crisis”, states the Polish central bank.

According to the German Bundesbank, gold is a type of emergency reserve which can also be used in crisis situations”.

With the entire financial and monetary system currently undergoing monumental dislocations across all asset classes, the gold accumulation and holding strategies of these central banks look more shrewd now than ever. If/when the monetary system is collapsing, gold will most likely be the anchor in the monetary reset stemming from the collapse.

Many influential central banks have also been withdrawing thousands of tonnes of gold from the Bank of England and US Federal Reserve vaults and flying it back to the security and safety of their home countries.

But why are central banks buying more gold bars than at any time since 1971? And what has spooked countries such as Germany, the Netherlands, Poland and Hungary that they no longer have confidence in holding their sovereign gold reserves at custodian vaults in London and New York?

With this visually impressive new infographic from BullionStar, you can now find the answers, including:

  • Which central banks in the world are leading the gold buying scramble?
  • How central bank gold buying mirrors the flow of gold from west to east?
  • What are the motivations of these countries in buying vast quantities of gold?
  • Which leading central banks have airlifted gold back to their home countries?
  • How much gold in total have these repatriating central banks brought back?
  • Why has trust eroded towards the Bank of England and New York Fed vaults?
  • Why gold is likely the strategic anchor of a new future monetary system?

 

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 THURSDAY 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: 7.1202/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1633   /shanghai bourse CLOSED DOWN 26.63 POINTS OR 0.98%

HANG SANG CLOSED DOWN 582.69 POINTS OR 2.61%

 

2. Nikkei closed DOWN 173.72 POINTS OR 1.04%

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 102.12/Euro FALLS TO 1.0735

3b Japan 10 year bond yield: RISES TO. +.09/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.89/ 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:: 22.44 and Brent: 25.99

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 DOWN to 1.69% /SPAIN 10 YR BOND YIELD DOWN TO 0.80%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.96: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.20

3k Gold at $1473150 silver at: 12.00   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 38/100 in roubles/dollar) 80.69

3m oil into the 22 dollar handle for WTI and 25 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 109.89 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 .9795 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0539 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

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

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 1.13% early this morning. Thirty year rate at 1.72%

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

6.  TURKISH LIRA:  UP  TO 6.5378..HOPELESSLY INSOLVENT

 

Sheer Panic: Futures Surge, Tumble, Surge, Tumble...

First the good news: for the first time in a week, there were no overnight limit up/down trigger halt in the S&P500 future.

Now, the not so good news: the global dollar margin call/short squeeze escalated even more overnight, resulting in total chaos in Asia, as multiple regional indices hit circuit breakers, the Korean Kospi was halted after falling more than 8%, Indonesian stocks triggering limit down at 5% and the Philippines market reopened only to drop 24% on the open triggering a circuit breaker. The panic dollar scramble also led to a flash crash in the Aussie, Kiwi and various other EM currencies as reported overnight.

Worse, this happened even as the Fed stepped in with yet another Lehman-era facility, a Money Market backstop (MMLF), which however did nothing to convince panic-stricken equity markets that a coronavirus-driven global recession could be averted, or to ease the record $12 trillion dollar funding squeeze, as measured by the surge in the FRA/OIS…

… or the Bloomberg dollar index, which just hit a new all time high.

The result was chaos in US futures, which while not trading outside the +/- 5% band got close, and after initially surging, they then tumbled, reversed and surged again, then tumbled some more, as traders weighed the growing likelihood of a global recession and a cascade of corporate defaults triggered by unprecedented lockdowns and supply-chain disruption. Overall, the S&P has now traded in a “narrow” 200 point sinewave for the past 3 days.

“It’s a good start and a step in the right direction with the tools that they have available, but they can still do more,” Sue Trinh, global macro strategist at Manulife Asset Management in Hong Kong, told Bloomberg TV. “There’s much more need for U.S. dollar liquidity to get to where it’s needed the most,” she said. “At the moment the markets are screaming it’s not enough — we need to see more of that.”

The latest plunge took place even though earlier on Wednesday the U.S. Senate cleared the second major bill responding to the coronavirus pandemic and White House economic adviser Larry Kudlow said the government might take equity positions as part of corporate rescues.

The meltdown in global markets, which has brought back memories of the 2008 financial crisis, has pushed Wall Street’s three main indexes down about 30% from their record closing highs last month and erased the Dow Jones Industrials’ .DJI gains since the President Donald Trump’s 2017 inauguration.

There was some more good news in the euro zone, where sovereign bonds soared from France and Italy to Greece after the region’s central bank boosted its efforts to stabilize the economy and capital markets, by announcing a €750BN “pandemic” QE, coupled with a commercial paper purchasing facility. The move rippled across debt markets, with the cost of insuring high-yield bonds in Europe dropping from a seven-year high, and peripheral bond yields tumbled.

Unfortunately whatever firepower the ECB deployed only made its way to bonds, with European stock markets staging a feeble attempt to rebound only to sink shortly after the open.

And speaking of recession, Europe is already in it with German business confidence in free fall, as the March Ifo index fell to 87.7 in March from 96 in Feb, the lowest level since 2009 (Ifo expectations dropped to 82.0 from 93.2, while current conditions to 93.8 from 99).

Even as Donald Trump dubbed himself a “wartime president” and joins foreign policy makers in hurrying to counter an abrupt economic shock, investors seemed largely underwhelmed by many of the actions taken so far. The rush into cash and havens has battered risk assets almost everywhere, particularly equities, high-yield bonds and non-dollar currencies.

There were more bizarre moves: the yen, often a haven amid market stress, slumped in a sign of the extraordinary demand for the greenback, which strengthened for an eighth day versus a basket of its major peers to its highest in at least 15 years. Of course, the dollar was untouchable, rising against virtually every currency in the world.

In commodities, WTI oil futures rebounded after their 24% drop in prices in the prior session – with underlying themes still failing to fade but with sentiment supported by the ECB’s PEPP announcement. WTI has clambered of its near-multi-decade low after testing USD 20/bbl to the downside, whilst its Brent counterpart drifts closer to the USD 25/bbl, albeit ultimately in positive territory on the day. Meanwhile, spot gold remains sub-1500/oz with prices subdued amid the flight for cash. The yellow metal meanders around 1475/oz in early EU trade and sees a recent low at USD 1452/oz. Finally, copper prices see detrimental downside amid the overall demand implications of the virus and a firmer Buck. The red metal briefly gave up the USD 2/bl level during overnight trade before trimming some losses as European players entered the market.

Market Snapshot

  • S&P 500 futures up 0.1% at 2,403.75
  • STOXX Europe 600 up 1.3% to 283.20
  • MXAP down 2.5% to 123.18
  • MXAPJ down 3.9% to 391.94
  • Nikkei down 1% to 16,552.83
  • Topix up 1% to 1,283.22
  • Hang Seng Index down 2.6% to 21,709.13
  • Shanghai Composite down 1% to 2,702.13
  • Sensex up 0.02% to 28,875.07
  • Australia S&P/ASX 200 down 3.4% to 4,782.94
  • Kospi down 8.4% to 1,457.64
  • German 10Y yield fell 8.0 bps to -0.315%
  • Euro down 0.4% to $1.0877
  • Brent Futures up 6.8% to $26.57/bbl
  • Italian 10Y yield rose 7.9 bps to 2.254%
  • Spanish 10Y yield fell 41.8 bps to 0.803%
  • Brent Futures up 6.8% to $26.57/bbl
  • Gold spot down 0.4% to $1,479.80
  • U.S. Dollar Index up 0.2% to 101.42

Top Overnight News

  • The economic impact of the growing coronavirus outbreak is shifting from service-driven industries like hotels and restaurants to the manufacturing sector on both sides of the Atlantic, leading to a synchronized shutdown of heavy industry that historians and industry experts say is unlike any seen since the 1940s
  • Boris Johnson’s U.K. government is mobilizing military personnel and preparing to put London in lockdown as it battles to slow the spread of the coronavirus
  • The global currency market appears at breaking point yet there is a tool that could help. Trading currencies through the spot market seems pointless and options may present the best choice. Even though hedging costs have risen, volatility is coming up from record lows. That means in comparison to historical levels and to gauges in other asset classes, currency turbulence remains inexpensive on a relative basis
  • A sell-off in the supposedly safe government bond market this week has unnerved investors looking for a haven amid the risk-asset storm. A slump in open positions in bond futures suggests a rush to meet margin calls may be partly responsible
  • In a sign of the daunting challenges authorities face as the coronavirus pandemic fuels a stunning surge in financing costs, spreads on even the safest corporate bonds in dollars in Asia blew out the most in seven years. The price of insuring against default in the region jumped to the highest since 2016

Asian equity markets extended on losses with price action turbulent as ongoing coronavirus fears and disruptions, which now threatens to lockdown New York and London, offset the various global policy efforts to tackle the fallout including the ECB announcement of a EUR 750bln Pandemic Emergency Purchase Programme and RBA rate cut with QE. The announcement by the ECB initially boosted US equity futures and propelled Euro Stoxx 50 futures higher by over 3%, although the momentum then waned which fully wiped out the earlier gains. ASX 200 (-3.4%) swung between gains and losses heading into the off-schedule RBA monetary policy announcement which despite the RBA actions, did little to support the Australian benchmark which was heavily pressured by a collapse in the real estate sector, energy and financials. Nikkei 225 (-1.0%) also gave back opening gains with Tokyo exporters weighed by the safe haven flows into the domestic currency and with participants diminishing risk ahead of tomorrow’s holiday closure. Hang Seng (-2.6%) and Shanghai Comp. (-1.0%) were subdued as the coronavirus jitters continue to ruffle markets and as earnings also entered the fray including Hong Kong heavyweight Tencent which missed on its Q4 net. Finally, 10yr JGBs were subdued and continued to test support at 151.00 where prices have found a base. The BoJ were also active in the market today in which it announced 2 unscheduled special operations to purchase a total of JPY 1.3tln of JGBs although this only briefly underpinned prices, while Japanese CPI data and outdated BoJ minutes from the January meeting were largely ignored given that the data was mixed and meeting was prior to the blow up of the coronavirus pandemic.

Top Asian News

  • Thailand’s Biggest Jump in Virus Cases Fans Fear of Outbreak
  • Philippines Cuts Interest Rate by Half Point Amid Lockdown
  • Indonesia Cuts Rate for Second Month to Counter Virus Blow
  • A Coronavirus Explosion Was Expected in Japan. Where Is It?

Major European bourses trade mixed having waned off earlier highs [Eurostoxx 50 Unch] after sentiment in the equity sphere was bolstered by ECB’s EUR 750bln PEPP announcement, which at the time prompted European stock futures high and US futures to follow suit, although the latter failed to climb to positive territory. UK’s FTSE 100 (-1.7%) lags despite the GBP weakening to multi-decade lows, as the announced European package failed to reverberate into the sentiment across the channel. Meanwhile the DAX 30 (-0.6%) lost steam amid a bleak Ifo Survey and a string of downbeat economic forecasts from various institutes, all forecasting a 2020 German recession. Italy’s FTSE MIB (+2.1%) remains underpinned by the 3-month long short ban sale coupled with the ECB announcement. European sectors are all higher and largely reflect risk appetite, although Consumer Staples and Telecoms outperform given as the ongoing lockdown prompts additional broadband usage and stockpiling of staple goods. Swiss Banks meanwhile received a fleeting boost in light of the SNB monetary policy announcement in which it sweetened its tiering terms to a multiple of 30x from 25x, Swiss Banks remain supported with UBS higher to the tune of 7%. In terms of individual movers, Next (+13.0%) shares are supported post-earnings.

Top European News

  • Europe Can’t Stop Pandemic From Rocking Its Very Foundations
  • Babylon Testing Chat Room for Doctors to Track Symptoms
  • Johnson Urged to Support Pay, Benefits to Ease U.K. Virus Shock
  • Prudential Signs $753 Million Thai Deal With Tycoon Li’s FWD
  • Virus Cuts Burberry Sales in Half as Next Withholds Guidance

In FX, In spite of concerted if not quite coordinated attempts to intervene, the Greenback remains on an upward trajectory and extending gains vs all G10 counterparts plus the bulk of EM currencies, with very few exceptions, like the Rouble that has clawed back some losses following CBR buying aimed at preventing Brent and Ural crude from caving too far below Usd25/brl. Indeed, the DXY has just posted a new ytd peak at 102.020 and closer to the next bullish technical objective at 102.260.

  • NZD/JPY/EUR/AUD/CHF/GBP – All trailing further behind the Buck, as the Kiwi lags within a gaping 0.5472-0.5748 range and Yen loses even more of its safe-haven premium alongside Gold between 109.55-107.87 parameters. Meanwhile, the Euro is testing bids/support around the 1.0800 handle in wake of another bleak German business survey (Ifo echoing downbeat ZEW sentiment readings) and multi GDP downgrades via economic institutes, and the Aussie is languishing just above 0.5700 after RBA QE and more emergency funding, albeit off worst levels close to 0.5500 at one stage overnight. Elsewhere, the Franc is still mixed around 0.9750 and 1.0550 against the single currency following the SNB maintaining policy and only reinforcing NIRP intentions alongside stronger FX interventions despite upgrading its valuation of the unit to even more high from high. Last, but by no means least, scant reprieve for Sterling as Cable only clambers back from circa 1.1475 lows to 1.1500 awaiting a probable London lockdown and a likely further delay to Brexit negotiations resuming given that the EU’s chief representative Barnier contracting COVID-19.
  • CAD/SCANDI/EM – The Loonie is doing better than most to resist its US peer’s advances, but still prone either side of 1.4500 if oil prices tank again and/or risk aversion really picks up, in the same vein as the Norwegian and Swedish Crowns as the former has only gleaned a degree of support from the Norges Bank hinting an direct intervention to supplement increased regular daily foreign currency purchases announced yesterday. As noted above, the Rub is the notable ‘outperformer’, though not before more pronounced weakness that triggered CBR action, while the Zar is trading defensively in the run up to the SARB that is expected to cut rates by 50 bp.

In commodities, WTI and Brent front-month futures experience a day of reprieve in the aftermath of the 24% drop in prices in the prior session – with underlying themes still failing to fade but with sentiment supported by the ECB’s PEPP announcement. WTI has clambered of its near-multi-decade low after testing USD 20/bbl to the downside, whilst its Brent counterpart drifts closer to the USD 25/bbl, albeit ultimately in positive territory on the day. Meanwhile, spot gold remains sub-1500/ozwith prices subdued amid the flight for cash. The yellow metal meanders around 1475/oz in early EU trade and sees a recent low at USD 1452/oz. Finally, copper prices see detrimental downside amid the overall demand implications of the virus and a firmer Buck. The red metal briefly gave up the USD 2/bl level during overnight trade before trimming some losses as European players entered the market.

US Event Calendar

  • 8:30am: Current Account Balance, est. $108.6b deficit, prior $124.1b deficit
  • 8:30am: Revisions: Jobless Claims
  • 8:30am: Philadelphia Fed Business Outlook, est. 8, prior 36.7
  • 8:30am: Initial Jobless Claims, est. 220,000, prior 211,000; Continuing Claims, est. 1.74m, prior 1.72m
  • 9:45am: Bloomberg Economic Expectations, prior 57.5; Bloomberg Consumer Comfort, prior 62.7
  • 10am: Leading Index, est. 0.1%, prior 0.8%

DB’s Jim Reid concludes the overnight wrap

Over the past three weeks I’ve kept light hearted introductions to a minimum as I’m sure you’ve got more important things to worry about. However I must tell you about the stresses of working from home yesterday and also highlight that I’ll be live from home on Bloomberg TV this morning at 9am GMT assuming I can keep the twins at bay and my Wi-Fi works. Last night my wife helped me replace all the sports and music books with business ones on the shelves behind my desk. I’ve left one rogue book. See if you can spot it. Anyway, yesterday my mobile reception suddenly decided to die at home and I got kicked off an internal conference call and couldn’t get back in as I had no reception. With an hour to go until my client credit conference call with nearly 1500 registered I realised I couldn’t do the call. We don’t have a landline so my wife offered to drive to buy a phone. On returning 20 minutes before the call we realised that the builders hadn’t created the phone port properly. We found that the only available socket was in our boiler cupboard where all the electrics and internet/phone line come in. With 10mins to go we unwrapped the phone and discovered it needed 16 hours of charge! So we put it on charge and I used my wife’s mobile instead. Reception cut out just as I started the call. So I then had to tuck myself into the boiler cupboard and gamble that one bar of battery was enough. I also had to turn the central heating off so it didn’t fire up during the call. My family froze for the benefit of our clients. I’m not sure other brokers can match that for commitment. It was a very stressful hour. Anyway if you want to hear the replay, register here to get the number. See you live from my home at 9am.

The main news overnight is that after an emergency ECB phone meeting last night they’ve agreed to launch a temporary APP of private and public sector securities worth €750bn and named the Pandemic Emergency Purchase Program (PEPP). The program, which will run until the end of this year, is equivalent to 6 to 7% of GDP – that is on the scale of what was seen during the last systemic crisis. The fact that they have the ability to buy over the year, means that they will purchase as and when is needed giving it an important element of flexibility. The ECB basically said that it would do all it could under its mandate – increase size, adjust the security mix, continue as long as necessary and would tolerate any impediments. The capital key is still the PSPP benchmark rate, however the language suggests that there is very flexible implementation. Eligible CSPP assets will also be extended to commercial papers of sufficient credit quality while Greek government debt will also be included for PSPP under a waiver from current rules. Following the announcement, Lagarde said that “there are no limits to our commitment to the euro”.

Just hours after the ECB statement, the Fed announced that it is launching a program to support money market mutual funds called the Money Market Mutual Fund Liquidity Facility. Like the CP facility, the treasury department will provide $10bn of credit protection towards it. The Fed stated that “The MMLF will assist money market funds in meeting demands for redemptions by households and other investors, enhancing overall market functioning and credit provision to the broader economy.” A similar version of the facility was set up during the global financial crisis.

Despite the announcements, there is little sign that sentiment has started to turn overnight in markets. In fact the price action would suggest the opposite with early gains for futures fading with the S&P 500 now down -3.89% as we go to print while Stoxx 50 and DAX futures are down -4.22% and -4.16% respectively. Asian equity markets are also continuing through their downward spiral with the Nikkei (-1.54%), Shanghai Comp (-2.14%), Hang Seng (-2.74%) and Kospi (-7.99%) all at their lows for the session. The ASX is also down -3.44% after the RBA cut rates by 25bps and introduced yield curve control by setting a target for the yield on 3y AGGBs of around 0.25%. Earlier, trading on the Kospi had got halted after it reached the limit down of -8%. Meanwhile, stocks in the Philippines slumped -24% after reopening markets following a controversial market shutdown move earlier in the week. In FX, the US dollar is continuing its unabated march up with the dollar index up a further +0.18% this morning. Yields on 10y USTs are also up +5.5bps as we type to 1.250%. In commodities, Brent crude oil prices are up +3.30% this morning to 25.69 after sliding to lowest level since September 2003 yesterday. Elsewhere, most base metals are down with iron ore trading down as much as -4.35%.

Also worth noting this morning, the BoJ has also offered to buy JPY 1tn ($9.2bn) of JGBs in an unscheduled operation while the central bank of Brazil also reduced rates by 50bps overnight. On the fiscal side, South Korea’s President Moon Jae-in has announced a KRW 50tn ($38bn) package to aid small businesses facing a credit crunch triggered by the coronavirus outbreak. At a more micro level, Qantas Airlines announced that it has furloughed two-thirds of its 30,000-strong workforce and scrapped all international flights as travel demand dried up while its CEO said in a note that “We have no work for most of our people.”

This follows another remarkable day in markets with global equity markets falling to their lowest levels of the crisis so far in spite of the continued policy response from governments. Even with a late rally the S&P 500 fell a further -5.18% to put the index just under -30% down from its closing peak on 19th February and seeing the 4th circuit breaker level breach over the last two weeks. It is the 4th worst day of the overall selloff, and it could have been worse – with just under a half hour left to trade in the US session the index was down -8.82%. However news right at the end of the day that the Senate was passing the House bill that was agreed to last week and also that a Gilead Covid-19 drug may get FDA approval sent US stocks 4% higher into the close. Not sure I would get too excited just yet on the latter.

Meanwhile in Europe the STOXX 600 shed a further -3.92% as it reached levels not seen since June 2013 in the aftermath of the taper tantrum. Was it really that long ago? Elsewhere the US dollar has surged amidst the turmoil with the US dollar index up +3.15% over the last 2 days, making this its second highest 2-day gain based on daily data back to January 1971.

Given all the market dislocations, last night we put out a quick note looking at the times through history markets that have closed. It has in the past due to things like natural disasters, terrorism and wars. Given that many politicians are saying we’re on a war footing it’s not impossible this topic will linger. Keeping markets open while you close economies is pretty one-sided. There are very valid arguments to keep them open too but food for thought. See the note here. Even if exchanges do not close people may not be there as after the NY close the NYSE announced that it will temporarily close its trading floor and move fully to electronic trading after traders tested positive for Covid-19.

Overnight, the US President Donald Trump has signed an executive order giving the federal government broad powers to direct the production and distribution of health protective gear, ventilators and other supplies if the coronavirus outbreak in the US gets far worse. The White House cited the Defense Production Act of 1950, as a legal basis for the new authority. The US economic adviser, Larry Kudlow later said in a Fox News interview that the administration was already in discussions with General Motors Co. and other automakers to start producing ventilators vital to treating people affected by the virus. So remarkable times. He also added in the interview that the administration may consider asking for an equity stake in corporations that want help from taxpayers but cautioned that the idea was one of many, and the ultimate form of the coronavirus stimulus legislation would depend on negotiations with Capitol Hill. Meanwhile, yesterday President Donald Trump declared that he has become a “wartime president” leading the fight against an “invisible enemy” in the virus.

Speaking of wars, a reminder that we published a piece ( link here) on Tuesday looking at war deficits and the likelihood of exploding central bank balance sheets as a result of this crisis. As we discuss, deficits are going to balloon, with war time annual deficits typically over 10%. It seems yesterday that government bonds increasingly priced this in. Europe saw the biggest swings, with 10yr bund yields ending the session up +19.9bps, their biggest daily move upwards since November 2011 and their 7th successive move higher (which itself follows a run of 8 moves lower). Spreads also had a volatile day, with the Italian 10yr spread over bunds widening to over 320bps (from 279bps at the open) at one point in trading, before actually ending the session tighter at 267bps, which just shows you how large the swings were. After the ECB announcement overnight expect to see Italy tighten today. Over in the US, 10yr Treasury yields actually ended the day up +11.3bps at 1.19%, though the 2s10s curve steepened by 7.8bps to its steepest since February 2018. Treasuries hit a low of 0.33% a week before so in one of the worst weeks for risk in financial market history (if not the worst), it has been stunning to see a near +90bps rise in US yields (+123bps intraday trough to peak on the 30yr). This move may also hint at liquidations and deleveragings. Overall this will be a worry for the authorities. There’s little doubt that this will ultimately lead to QE and helicopter money, but it shows that the aggressive supply of bonds down the line is starting to be priced in. The ECB move overnight is another step towards monetising debt in my opinion.

Talking of deleveraging, credit had another brutal day with HY cash spreads in the US +63bps wider to 904bps and IG +31bps wider to +303bps and now just wider than what we thought were incredibly bearish forecasts. In Europe cash HY spreads widened by +64bps to +819bps and IG spreads were +24bps wider at 225bps. Euro IG has held in better than most in this sell-off – partly because of the CSPP. Like Italy there will be hope the new ECB money will help. As we’ve been saying in recent days, IG is getting closer to our bearish targets and if the plumbing is increasingly being sorted out we move more onto the economic impact of this crisis. That might be worse from this starting point for HY than IG.

Over in oil, Brent Crude fell a further -13.40% to close at its lowest level since September 2003, at just $24.88/barrel, while WTI was down -24.42% at $20.37/barrel. It came as Saudi Arabia showed no sign of stopping their price war, with a statement from the Saudi Ministry of Energy saying that it “directed Saudi Aramco to continue to supply crude oil at a level of 12.3 million barrels a day over the coming months”. The oil moves meant it was another rough day for energy companies, with the Stoxx Oil & Gas index down by -9.42% to its lowest level since 1996 yesterday, while in the US the S&P 500 Energy index fell by -14.3% to its lowest level since 2003. The Norwegian Krone was hammered yet again as a result, weakening by -7% against the US dollar yesterday, which is its biggest one-day fall against the dollar in data we have going back to 1971. Looking at other commodities, silver was down (-5.03%) for a 9th consecutive session, reaching its lowest since April 2009.

Speaking of multi-decade FX records, the British pound fell to its lowest level against the dollar since 1985, surpassing any lows we saw during the Brexit crisis, even if much of the story this time around is a result of dollar strength. UK gilts also saw a selloff larger than their continental peers, with 10yr gilt yields up +24.2bps yesterday. It came as the Telegraph reported that the London mayor’s office expected there to be a shutdown of the capital over the coming days, while it was also announced that schools throughout the country would be closing from Friday. Overnight, Transport for London has decided to close as many as 40 London Underground stations that don’t interchange with other lines and added that public transit should only be used for essential journeys. The release further said that from March 20, there will be no service on the Waterloo & City line and from March 23, the frequency of other services will be gradually reduced.

Here at DB the latest developments on the coronavirus have led us to substantially revise down our global growth forecasts in the first half of the year, and we now see a severe global recession in H1 2020. The coronavirus has spread further and more rapidly than was expected just a few weeks ago, and the early evidence of negative impact on the Chinese economy has been far in excess of our initial projections. The quarterly declines in GDP growth we expect will substantially exceed anything seen since WWII, and given the degree of uncertainty it is easy to imagine that the outcome will be worse still. You can find the latest report here link here.

Meanwhile on fiscal policy, as mentioned briefly above the US Senate passed the House bill from last week providing paid sick leave, food assistance and financial help for coronavirus testing. This occurred in the last few minutes of the US session – the motion passed with a 90-8 vote count showing how strong bi-partisan support is to get a fiscal package out to Americans. Senate Majority leader McConnell and Minority leader Schumer were already working on the nearly $1.3tn bill that has been mentioned this week with checks being sent directly to the populace. Some Senators indicated that a vote could take place this weekend.

Backward-looking data seems increasingly redundant at the moment, though we did get new car registrations in the EU27, which fell by -7.4% yoy in February, and the STOXX 600 automobiles and parts index lagged the overall index yesterday to fall -6.75%. Over in the US meanwhile, February’s housing starts rose to 1599k (vs. 1500k expected), down from an upwardly revised 1624k in January, with that January number being the highest since 2006. Building permits fell however, down to 1464k (vs. 1500k expected). Finally, Canadian CPI fell to 2.2% in February (vs. 2.1% expected).

To the day ahead now, and there are a number of data releases out, of which the highlight may well be weekly initial jobless claims from the US. Is it too early to see a virus lay-off spike? From the US we’ll also get March’s Philadelphia Fed business outlook, the Q4 current account balance and the February leading index, while there’ll also be the Euro Area’s construction output for January. From central banks today, we’ll get rate decisions from Switzerland, South Africa and Indonesia.

END

 

3A/ASIAN AFFAIRS

I)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 26.63 POINTS OR 0.98%  //Hang Sang CLOSED DOWN 582.69 POINTS OR 2.61%   /The Nikkei closed DOWN 173.72 POINTS OR 1.04%//Australia’s all ordinaires CLOSED DOWN 3.79%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1202 /Oil UP TO 22.44 dollars per barrel for WTI and 25.99 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1202 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1633 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA AFFAIRS

 

4. EUROPEAN AFFAIRS

ECB

Lagarde fires her Bazooka, promising to purchase 750 billion euros worth of European bonds in a Pandemic purchase program

It will also fail

(zerohedge)

Lagarde Fires Bazooka #2: ECB Announces €750BN Pandemic Purchase Program

Earlier this afternoon we said that because “the Fed’s Bazooka #1 was an epic dud. Here comes Bazooka #2”, and this time it is the ECB that will try to fire.

Sure enough, almost three hours later, and just before 1am CET, the ECB announced plans to buy a whopping €750bn in more bonds in the delightfully named Pandemic Emergency Purchase Program (because we clearly needed another alphabet bailout soup) after holding an emergency call of its rate-setting committee on Wednesday evening in response to the Global Covid Crisis and resulting financial market turmoil.

The central bank said the additional asset purchases – as a reminder last week the ECB expanded its baseline QE – would be carried out by the end of this year, cover both sovereign bonds and corporate debt, and would last until the coronavirus crisis is over.

“The Governing Council will terminate net asset purchases under PEPP once it judges that the coronavirus Covid-19 crisis phase is over, but in any case not before the end of the year.”

 

Because the European Central Bank of Virologists is clearly able to predict that the pandemic will not fade away until at least 2021.

The ECB said that purchases will be conducted in “flexible manner” allowing fluctuations over time, across asset classes and among jurisdictions, and unlike prior QE episodes, this time purchases under PEPP will include Greek debt.

Just like the Fed, the ECB also expanded the range of eligible assets to non-financial commercial paper and to ease the collateral standards to allow banks to raise money against more of their assets, including corporate finance claims. For those wondering if the ECB would limit itself to A1 and higher CP, like the Fed, the answer is clearly no as per the following: “all commercial papers of sufficient credit quality eligible for purchase under CSPP.” What is sufficient? Anything that the ECB says.

It was a bit surprising that the ECB has yet to announce it is buying equities, but we expect that will come in a few days when the STOXX 600 crashes another 20%.

The Governing Council of the ECB is committed to playing its role in supporting all citizens of the euro area through this extremely challenging time. To that end, the ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that enable them to absorb this shock. This applies equally to families, firms, banks and governments.

Then, the central bank which will be directly monetizing even more of Europe’s deficit and engaging in state monetary financing which is expressly forbidden by the EU, decided to make a mockery of its permissions, and said that “the Governing Council will do everything necessary within its mandate”, which apparently is the new code word for “whatever it takes.” This includes increasing “the size of its asset purchase programmes and adjust their composition, by as much as necessary and for as long as needed. It will explore all options and all contingencies to support the economy through this shock.”

In recent days, economists have been calling for the ECB to increase its bond-buying programme in particular since the borrowing costs of southern European countries, such as Italy and Greece, rose sharply to levels not seen for more than a year, because somehow the ECB, which is now the world’s largest hedge fund and owns billions of Italian and Greek debt, doesn’t own enough Italian and Greek debt.

Translation: do the same idiotic thing over and over and hope that this time – just because it is super, turbo huge – it will work.

And just to let the market know it means business, the ECB left off with the following implicit threat to shorts:

To the extent that some self-imposed limits might hamper action that the ECB is required to take in order to fulfil its mandate, the Governing Council will consider revising them to the extent necessary to make its action proportionate to the risks that we face. The ECB will not tolerate any risks to the smooth transmission of its monetary policy in all jurisdictions of the euro area.

In other words, taking a page out of the Elon Musk “burn the shorts”playbook, just because we are not allowed to do something, doesn’t mean the ECB won’t do it.

And speaking in a Thursday morning conference call, Lagarde just trademarked her own version of Draghi’s “whatever it takes”:

  • LAGARDE SAYS NO LIMITS TO ECB COMMITMENT TO EURO

Alas, nearly 8 years after Draghi’s ridiculous threat, the ECB’s power to influence markets is almost gone, and after an initial futures spike that sent the Dow sharply higher, and above 20,000, the market is starting to once again sell into the ECB announcement, as the surge is now halfway gone.

The full ECB statement is below:

ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP)

The Governing Council decided the following:

(1) To launch a new temporary asset purchase programme of private and public sector securities to counter the serious risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the outbreak and escalating diffusion of the coronavirus, COVID-19.

This new Pandemic Emergency Purchase Programme (PEPP) will have an overall envelope of €750 billion. Purchases will be conducted until the end of 2020 and will include all the asset categories eligible under the existing asset purchase programme (APP).

For the purchases of public sector securities, the benchmark allocation across jurisdictions will continue to be the capital key of the national central banks. At the same time, purchases under the new PEPP will be conducted in a flexible manner. This allows for fluctuations in the distribution of purchase flows over time, across asset classes and among jurisdictions.

A waiver of the eligibility requirements for securities issued by the Greek government will be granted for purchases under PEPP.

The Governing Council will terminate net asset purchases under PEPP once it judges that the coronavirus Covid-19 crisis phase is over, but in any case not before the end of the year.

(2) To expand the range of eligible assets under the corporate sector purchase programme (CSPP) to non-financial commercial paper, making all commercial papers of sufficient credit quality eligible for purchase under CSPP.

(3) To ease the collateral standards by adjusting the main risk parameters of the collateral framework. In particular, we will expand the scope of Additional Credit Claims (ACC) to include claims related to the financing of the corporate sector. This will ensure that counterparties can continue to make full use of the Eurosystem’s refinancing operations.

The Governing Council of the ECB is committed to playing its role in supporting all citizens of the euro area through this extremely challenging time. To that end, the ECB will ensure that all sectors of the economy can benefit from supportive financing conditions that enable them to absorb this shock. This applies equally to families, firms, banks and governments.

The Governing Council will do everything necessary within its mandate. The Governing Council is fully prepared to increase the size of its asset purchase programmes and adjust their composition, by as much as necessary and for as long as needed. It will explore all options and all contingencies to support the economy through this shock.

To the extent that some self-imposed limits might hamper action that the ECB is required to take in order to fulfil its mandate, the Governing Council will consider revising them to the extent necessary to make its action proportionate to the risks that we face. The ECB will not tolerate any risks to the smooth transmission of its monetary policy in all jurisdictions of the euro area.

END
ITALY/ THE GLOBE//CORONAVIRUS/UPDATE
(zerohedge)

Covid-19 Deaths In Italy On Track To Pass China As More Countries Close Borders; Confirmed US Cases Climb 50%: Live Updates

Following a barrage of easing measures by global central banks overnight, and more talk of German fiscal stimulus Thursday morning, stock futures have sunk back into the red as promising gains from overnight fizzled.

It seems the world is finally waking up to some disappointing realities: In many places around the US, and around the world, millions of people simply aren’t heeding advisories – and, in some cases, emergency declarations – pertaining to avoiding.

In California, the backlash against Elon Musk and Tesla has intensified as the billionaire openly beckoned employees of his Fremont, Calif. factory back to work despite a ‘shelter in place’ order requiring everyone to stay home to avoid the virus. Now that testing is finally ramping up around the country, with New York State taking the lead with its aggressive drive-thru push, the total number of cases confirmed in the US climbed to 9,415 (according to Johns Hopkins data), an increase of roughly 50% overnight.

It’s becoming increasingly clear that President Trump’s decision to stop travel from China, although prescient, was clearly not enough to stop the virus’s spread in the US. Officials squandered the entire month of February, and the Trump Administration is finally beginning to realize just how far it has fallen behind.

The biggest news overnight was out of Italy, which has been reporting record numbers of newly confirmed cases and deaths, as well as a surprising number of young and healthy people hospitalized in serious condition. Italian PM Giuseppe Conte said Thursday that the government would extend the nation-wide lockdown beyond April 3 because too many Italians are disregarding the orders. The extension comes as Italy faces an alarming milestone: On Thursday, Italy is very likely to officially overtake China as the country with the largest number of deaths from the virus. 475 people lost their lives on Wednesday, the largest daily jump yet, taking the total in Italy to 2978. Officially, China’s death toll is 3,231, according to the WHO, though many suspect the real death toll is much, much higher.

As of Thursday morning in New York, Italy has recorded 35,713 cases, along with 2,978 deaths.

After pleading with Schengen Zone members to keep their borders open, the EU has closed its external borders to non-EU citizens as a growing number of countries close their borders. In the South Pacific, Australia and New Zealand, members of the British Commonwealth, have barred non-resident, non-citizens from entry. The closures will take effect on Friday, local time.

China again tightened its restrictions on foreign nationals traveling to the country by requiring airlines to “reduce” international flights.

In other news, Michel Barnier, the EU’s chief Brexit negotiator, announced on twitter Thursday that he had tested positive.

Michel Barnier

@MichelBarnier

I would like to inform you that I have tested positive for . I am doing well and in good spirits. I am following all the necessary instructions, as is my team.

For all those affected already, and for all those currently in isolation, we will get through this together.

By now, we’ve heard dozens of dire predictions from Wall Street banks about the economic fallout from the crisis. At this point, a recession is virtually assured, and an all-out global depression – the likes of which haven’t been seen for nearly a century in the developed world – could arrive by the second quarter, according to JPM Morgan and Mohammed El-Erian.

Now, Germany’s Ifo Institute forecast a 1.5% contraction in the German economy after one of its preliminary gauges released on Monday showed a sharp drop in sentiment.

Yesterday, we saw some rumblings about Russian disinformation campaigns targeting the West, as Vladimir Putin seizes the opportunity to destabilize the West after taking steps to fortify Russia from the onslaught (by being one of the first major countries to close its border with China, among other measures).

A document sent to European lawmakers Monday by EU officials asserted that Russia is carrying out a “significant disinformation campaign” in an effort to sow discord and panic in Western nations over the coronavirus, according to a Reuters report. Reuters apparently got its hands on the 9-page memo, and now a handful of left-wing media organizations like Axios and the Daily Beast are spreading the news.

How much longer until the West blames the severity of the “Chinese Virus” outbreak on Vladimir Putin? At any rate, despite Russia’s lockdown measures, the country recorded its first virus-related death on Thursday. A 79-year-old woman died in a Moscow hospital, the country’s pandemic response agency said on Thursday.

Yesterday, we shared a report published by the Telegraph claiming that PM Boris Johnson had asked his cabinet heads to draw up plans for a total lockdown in London, with hefty criminal penalties for all those who disobey. Dozens of reports across social media showed how millions of Londoners appear to be ignoring the government’s advice, prompting the NHS to prepare to be overwhelmed by cases. Some have warned that tens of thousands could die in the UK thanks to Johnson’s perhaps misguided hope that he could shield the British economy from the worst of the fallout by simply focusing on containing the sick. Unfortunately, one of the themes of this outbreak has been millions of people putting their own petty wants and desires above protecting the public health.

Wash Your Hands Charley Grant

@CGrantWSJ

Good morning to everyone who isn’t actively interfering with the public health effort.

Florida and Texas have finally shut down most of the beaches where thousands of undaunted spring breakers have continued to party.

It’s likely this crisis won’t truly be over until a vaccine is mass-produced. And looking forward, headlines pertaining to drug trials for treatments and vaccines might be some of the only positive news investors get. Unfortunately, the opposite happened on Thursday, when the first scientifically controlled clinical trial of existing antiviral drugs to treat Covid-19 has delivered disappointing results.

As the FT reminds us, the next important controlled clinical trial result to look out for involves remdesivir, a drug originally developed by Gilead Sciences of the US to treat Ebola. That trial is also taking place in Wuhan. Meanwhile, in the US, a vaccine trial is underway in the Pacific Northwest.

Though the trials are continuing in Wuhan, the epicenter of the crisis, which has been struggling against the virus since it first emerged in early December, finally saw a day where no new coronavirus cases were reported. While it’s important to take this news with a grain of salt, the city has pretty much reopened for business.

A few days ago, the NYT ran a story praising India’s response to Covid-19, which had kept the number of confirmed cases down. Unfortunately, the good times couldn’t last forever, and the Indian people are finally getting a taste of the hoarding and panic that has come to dominate life in the US. After Prime Minister Modi announced plans to deliver a televised address on Thursday, which prompted Indians to scramble to stock up on essentials as they feared a national lockdown order could be delivered during that speech.

In the US, Amazon announced that it had closed one of its warehouses in New York for deep cleaning after a worker tested positive for coronavirus. This is a major threat to the US, since Amazon has emerged as a last lifeline for US consumers. If its warehouses are sidelined by the virus, the gears of consumption could truly come to a screeching halt, per Bloomberg.

Bafin, the German financial regulator, joined Italy’s Consob and a handful of other European regulators by imposing restrictions on short-selling. Though the West has been reluctant to adopt the heavy handed measures imposed on China’s population, when it comes to markets, China style crackdowns on shortsellers are apparently more palatable. Handelsblatt reported Thursday morning that Germany could move ahead with suspending its constitutional ‘debt brake’ as soon as Monday.

After UK PM Boris Johnson announced earlier this week that he would close UK schools for all except the children of essential workers and those who wouldn’t have access to food otherwise, Gavin Williamson, his education secretary, said there are “certainly no plans” at this stage to force the closures of bars and restaurants, even as speculation about a possible London lockdown continues to grow. Another government spokesperson said Thursday that there is a “zero chance” of a London lockdown.

A few minutes ago, Spain reported another alarming jump in deaths and confirmed cases that was on par with the figures coming out of Italy. Spanish Covid-19 cases rose to 17,147 (prev. 13,716) and deaths climbed to 767 (prev. 558):

Back in the US, the state of Connecticut on Thursday confirmed its second virus-linked death as health officials rush to prevent an outbreak in a nursing home near the Massachusetts border, where the patient who became the state’s first casualty had lived before being hospitalized.

Meanwhile, as millions of young people brush off the risks to their personal health due to the virus, Bloomberg has some disappointing news: New evidence from Europe and the US suggests that younger adults aren’t as impervious to the virus as they would like to think.

Before we go, we’d like to leave readers with a rare bit of positive corporate news, courtesy of last night’s FedEx earnings report:

Jeffrey Kleintop

@JeffreyKleintop

Is China a leading indicator for the rest of the world as COVID-19 runs its course?
*FEDEX SAYS CHINA DEMAND HAS REBOUNDED MORE THAN EXPECTED
*FEDEX SAYS 90-95% OF LARGE CHINESE MANUFACTURERS BACK OPERATING
*FEDEX SAYS 65-70% OF SMALL BUSINESSES IN CHINA OPERATING AGAIN

View image on Twitter
end
GERMANY
Germany is now ready to suspend its “debt brake” on this coming Monday as they will then go on a spending spree trying to save Europe
(zerohedge)

Germany To Suspend ‘Debt Brake’ On Monday, Clearing Way For Covid-19 Spending Spree

As German’s industrial auto giants shutter production at their domestic factories as the number of confirmed cases in Deutschland climbs into 5-digit territory, domestic newsmagazine Handelsblatt revived reports about a coming suspension of Germany’s constitutional ‘debt break’, which would allow Europe’s largest economy to deliver its first major fiscal boost to the economy since 2013, when Europe was reeling from the aftermath of the periphery debt crisis.

That Angela Merkel is planning to invoke a ‘crisis’ clause in the debt-brake provision is hardly a surprise. Both Merkel and her finance minister, Olaf Scholz, have warned that if Berlin dithers, the economic fallout for Europe could be almost unimaginably brutal.

Like many other European officials, Merkel has promised to do “whatever it takes” to fight the virus.

According to Handelsblatt, the Germany government could approve the exception to the debt break at a Monday Cabinet meeting, according to anonymous sources ‘familiar’ with the talks.

The cabinet’s decision must them be approved by a majority of the Bundestag, Germany’s parliament. Officials are also discussing direct aid for small businesses.

Germany’s aversion to deficit spending is reportedly rooted in the hyperinflation caused by Weimar-era money printing, and that quality helped shape the EU’s strict fiscal spending rules, which bar countries from running massive deficits like the US does.

Yesterday, Merkel said Germany is facing its biggest challenge since World War II – an odd choice of examples. But the gravity of her warning was clear to all, especially as the number of cases confirmed in Berlin continues to accelerate.

Germany’s goal is to make sure firms have sufficient liquidity to get through the crisis unleashed by the outbreak, Scholz and Economy Minister Peter Altmaier said in a joint statement released late last week. Scholz additionally said there will be “no limit” to the money available, and that Germany may need to take on additional debt to finance the spending spree.

end

UK
England joins the panic parade with another emergency rate cut to .1% and also boos QE by 200 billion pounds to 645 billion pounds
(zerohedge)

Bank of England Joins Panic Parade With Emergency Rate Cut To 0.1%, Boosts QE By £200

If traders are looking for central bankers to calm nerves they will have to wait, because in the past two days not an hour seems to pass without some central bank freaking out and announcing an emergency easing measure, many of which pulled right out of the global financial crisis playbook. And sure enough, moments ago the Bank of England – in its second emergency move of the Global Covid Crisis – joined the overnight parade of similarly panicking RBA, ECB, BOJ and Fed, when it announced that as part of its covid-19 response it would cut rates to 0.1% from 0.25% in a unanimous emergency move, and boost QE, increasing its holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by £200 billion to a total of £645 billion.

As FX strategist Viraj Patel notes, the “BoE previously saw QE as a credit-easing measure too at times of market stress. So makes sense. BoE have now laid their cards on the table. Not a lot left in the monetary tank”

Viraj Patel@VPatelFX

Go big or go home from Bank of England. 15bps cut & £200bn QE (mainly govt bonds). Big purchases. BoE previously saw QE as a credit-easing measure too at times of market stress. So makes sense. BoE have now laid their cards on the table. Not a lot left in the monetary tank

View image on Twitter

Perhaps in this context, it is not that strange that this announcement had virtually no effect on either the GBP, which remains depressed after its fastest drop in history, or on asset prices.

Monetary Policy Summary for the special Monetary Policy Committee meeting on 19 March 2020

The spread of Covid-19 and the measures being taken to contain the virus will result in an economic shock that could be sharp and large, but should be temporary.  The role of the Bank of England is to help to meet the needs of UK businesses and households in dealing with the associated economic disruption.

On 11 March, the Bank of England’s three policy committees announced a package of measures to support UK businesses and households through this period.  In his Budget on the same day, the Chancellor of the Exchequer announced a number of fiscal measures with the same aim.  On 17 March, this combined package of measures was complemented by the announcement by HM Treasury of the Covid-19 Corporate Financing Facility (CCFF), for which the Bank will act as HM Treasury’s agent.  By purchasing commercial paper, the CCFF will provide funding to non-financial businesses making a material contribution to the UK economy to support them in paying salaries, rents and suppliers while experiencing the likely disruption to cashflows associated with Covid-19.

In light of actions to tackle the spread of the virus, and evidence relating to the global and domestic economy and financial markets, the Monetary Policy Committee (MPC) held an additional special meeting on 19 March.  Over recent days, and in common with a number of other advanced economy bond markets, conditions in the UK gilt market have deteriorated as investors have sought shorter-dated instruments that are closer substitutes for highly liquid central bank reserves.  As a consequence, UK and global financial conditions have tightened.

At its special meeting on 19 March, the MPC judged that a further package of measures was warranted to meet its statutory objectives.  It therefore voted unanimously to increase the Bank of England’s holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by Stg 200 billion to a total of Stg 645 billion, financed by the issuance of central bank reserves, and to reduce Bank Rate by 15 basis points to 0.1%.  The Committee also voted unanimously that the Bank of England should enlarge the TFSME scheme, financed by the issuance of central bank reserves.

The majority of additional asset purchases will comprise UK government bonds. The purchases announced today will be completed as soon as is operationally possible, consistent with improved market functioning.  The Bank will issue further guidance to the market in due course.

We wonder which central bank will panic next, and if the market will actually notice this time.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/USA

Iran badly needs help as they do not have the equipment to fight the Coronavirus.  The USA initially offered to help but that was turned down by the Mullahs.  Now the USA increases their sanctions against Iran

(zerohedge)

US ‘Help’ To Virus-Stricken Iran Comes In The Form Of… More Sanctions Of Course!

What does Washington do on the very day that a top Iranian health official predicted “millions” inside the country could die and pleaded for external help? Slap on some new sanctions and tighten the economic blockade further of course!

It appears the State Department is always ready and willing to set aside time for coming up with new creative ways to economically punish Tehran, widescale coronavirus panic and markets in free-fall notwithstanding:

Pompeo on Tuesday said the State Department is blacklisting nine entities based in South Africa, Hong Kong and China, as well as three Iranian individuals, for engaging in “significant transactions” to trade in Iranian petrochemicals.

While he did not name them, Pompeo said the step included blacklisting Iran’s armed forces social security investment company and its director for investing in sanctioned entities.

Reuters

@Reuters

The United States imposed fresh sanctions on Iran, keeping up its economic pressure campaign despite an earlier offer to help Tehran cope with the pandemic https://reut.rs/33oMYCu

Embedded video

This included sanctions and travel restrictions on five Iranian nuclear scientists to boot.

Over the past month leaders in Tehran have been pleading for greater outside humanitarian assistance, while also consistently pointing out that the US sanctions regimen is making the pandemic worse, restricting the medicines and equipment crucial to both treating Covid-19 and mitigating the spread.

Even as the world is in a crisis not seen since WWII, Trump and Pompeo’s “maximum pressure” campaign is on, apparently. And the Secretary of State’s rhetoric was more heated and insulting than ever, declaring “The Wuhan virus is a killer and the Iranian regime is an accomplice.”

“Instead of focusing on the needs of the Iranian people and accepting genuine offers of support, senior Iranians lied about the Wuhan virus outbreak for weeks,” Pompeo said in a press briefing at the Department of State.

“The Iranian leadership is trying to avoid responsibility for their grossly incompetent and deadly governments. The Wuhan virus is a killer and the Iranian regime is an accomplice,” he added.

This prompted a number of angry analysts and journalists to charge Pompeo with ‘weaponizing’ the deadly coronavirus:

Trita Parsi

@tparsi

Iran is one of the countries most devastated by the Coronavirus. And sanctions have made the situation much worse.

So what does Pompeo and his crew of warmongers do?

They impose more sanctions.

You can’t make this inhumanity up. https://twitter.com/arjunsethi81/status/1240307992551096325 

Arjun Sethi

@arjunsethi81

The United States is imposing fresh sanctions on Iran. We are literally weaponizing the Corona virus.

Embedded video

The administration did last month unveil an initiative to open up the ability of Iran to obtain limited humanitarian supplies via Europe, but it’s unclear the degree to which this has actually helped common Iranians on the ground.

Meanwhile, Iran on Wednesday reported a huge single-day jump in fatalities, reportedly the biggest within a single 24-hour period thus far in the country as another 147 people died.

Rania Khalek

@RaniaKhalek

The ongoing sanctions on Iran amid the coronavirus outbreak is mass murder

Embedded video

This brings the official death toll in Iran to 1,135 and a total of 17,361 confirmed cases, amid dire reports that “millions” are expected to be infected before the pandemic dissipates.

end

 

6.Global Issues

No question about it:  the Covid 19 virus could bankrupt almost all airlines in two months.

(zerohedge)

Covid-19 Could Bankrupt Most Airlines By End Of May

Sydney-based consultancy CAPA Centre for Aviation warned in a statement on Monday morning that most of the world’s airlines will be bankrupt by the end of May.

Airline carriers are suspending routes for March, April, and May, and full grounding of fleets have yet to be ruled out as flight restrictions have been placed across the world, spurring a collapse in demand, due to the Covid-19 pandemic. 

“As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants. Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full,” CAPA said.

CAPA said, “demand is drying up in ways that are completely unprecedented. Normality is not yet on the horizon.” It said cancellations among global carriers had been seen in more significant amounts with new flight restrictions coming online.

Henry Harteveldt, a travel industry analyst in San Francisco, tweeted on Sunday evening that a “Growing number of sources within #airlines & DC telling me the WH giving serious consideration to grounding all passenger flights for 14-30 days (cargo would be exempted).”

Henry Harteveldt@hharteveldt

Growing number of sources within & DC telling me the WH giving serious consideration to grounding all passenger flights for 14-30 days (cargo would be exempted).

Part of me hopes it is not true, the other part understands why it may need to happen.

Ugh.

Treasury Secretary Steven Mnuchin was heard on Saturday, indicating that the Trump administration is laser-focused on providing relief for airlines and other industries affected by the groundings.

CAPA said, “coordinated government and industry action is needed” to avoid a collapse of the airline industry. Otherwise, “emerging from the crisis will be like entering a brutal battlefield, littered with casualties.”

Airlines, cruise ships, hotels, casinos, and other industries have been the most impacted as the virus outbreak threatens to grind the global economy to a halt.

Pekka Henttu@PekkaHenttu

I wouldn’t be suprised of total grounding of the fleets within couple of weeks. https://twitter.com/eurocontrolDG/status/1239123501791002625 

Eamonn Brennan@eurocontrolDG

#COVID19 – Sat 14 March – significant reductions by airlines across their networks, e.g. AZ -77%, LH – 37%, FR – 29%, EZ – 23%, AF – 22%, BA -14%. Will worsen as the air travel restrictions kick-in over the coming days. @A4Europe @IATA @ECACceac @Transport_EU @ACI_EUROPE

View image on Twitter

Global airline stocks are crashing below 2016 lows.

Is it time for President Trump to start bailing the American travel industry?

As an aside, Boeing’s default risk has exploded in recent days to a 1 in 3 chance of bankruptcy…

END

 

Michael Every on why the USA dollar is soaring and how it affect the globe’s finances

(Michael Every)

Rabobank: “We Warned The Dollar Would Go Up, Up, Up – And Then Up. Well… Here We Are”

Submitted by Michael Every of Rabobank

Dollar Kebab

We have repeatedly warned in recent years that systemic crises would re-emerge because the global economy was so unbalanced, so unequal, and based so much on so much USD debt in so many places; and that when they did, USD would go up, up, up – and then up. Nothing else, no-one else would be able to replace it, or to stand in the way of that armour-plated steamroller. Of course, it was always impossible to say exactly when the crises would occur – it was just inevitable that something, at some point, would trigger it.

Well, here we are.

As I type, AUD/USD is trading at 0.5574, down from 0.70 at the start of the year and a 17-year low; NZD/USD is at 0.5548, down from 0.6740 and an 11-year low; USD/THB is at 32.68, down from 29.7; USD/MYR is at 4.40, down from 4.09; USD/INR is at 74.95, down from 71.38; and USD/IDR is at 15,135, down from 13,866. Oh, and a more global EM FX benchmark, USD/MXN is at 24.35, down from 19!

Even USD/CNY is at 7.11, down from 6.96 – and if you think China is going to be able to hold it currency peg when the USD is on a rampage like this, you are wrong. If you think it can, please explain how an economy that relies on a bottom layer of USD to prop up its tottering debt pyramid; which it faces a world where nobody will buy its exports as demand collapses just as local supply comes back on line to some extent; which is now suddenly 10%-plus more expensive vs. neighbours that were already poaching parts of its industrial base; and where the political atmosphere between Washington DC and Beijing continues to deteriorate does not ultimately go the same way.

“But it’s a reserve currency!” some might say. China is certainly saying it. Indeed, in yesterday’s Global Times there was a threat that “Weaker dollar may lead China to dump US Treasuries.” Who says the Chinese media don’t have a sense of humour? The same treasuries that, while hugely volatile, have soared in value? The same treasuries that selling will involve the PBOC contracting its balance sheet? The same USD that China is desperately short of, and which is currently ‘weakening’ oh so much?

Meanwhile, actual reserve currencies are behaving like EM FX. GBP/USD, for example, is currently under 1.15 having started 2020 at 1.3257 – and we haven’t even mentioned Brexit. That is a 35-year low. USD/CAD is at 1.4619, down from 1.2990 – even though crude is up slightly today. Even more tellingly, USD/JPY is at 108.91, which is where we started the year – despite the fact that risk could not really be more off. Likewise, USD/CHF is at 0.9685 vs. 0.9666 – no safe haven evident then vs. the greenback.

What of EUR/USD, as the ECB announces an emergency EUR750bn expansion of QE–literally pandemic bond buying–to last until this crisis is over? Well, it is at 1.0898,down from 1.1213, which somewhat amazingly given how deeply the virus is hitting the now locked-down economy makes it a star performer, relatively. Which also means, of course, that European exporters who already have fewer customers to export to, if they can physically export at all, are now much more expensive to boot: the Aussie cheese in Thai supermarkets is going to be a lot cheaper than the French, as just one example of many.

Overall, staying with food analogies, the USD is shoving a sharp spike through all other FX: it’s a Dollar Kebab; and, just like the real thing, it can either be delicious or give you heartburn, depending on if your timing was right.

As we continue to be buffeted by COVID-19, and the global recession and financial storm that is has triggered, what else to report?

In Australia, the RBA cut rates again to 0.25%, even as the most ridiculous jobs number of all time (up 26.7K, and unemployment down from 5.2% to 5.1%, hit the screens), reaching the terminal zero-bound OCR floor. It made clear that rates won’t rise again until Australia is making moves back towards full employment and that inflation will be sustainably in the 2-3% range. Who knew the RBA could speak Japanese? Indeed, Governor Lowe has just said he expects rates to remain where they are for “some years”: I thought the virus was supposed to be over in months?

Moreover, and more Japanese, the Bank has introduced a target for 3-year bond yields of 0.25%, meaning we also have yield curve control in place, to be managed by RBA government bond purchases – or QE, albeit buying from the secondary market at the short end of the curve to pretend that it isn’t. The long end of the curve is also likely to have to be addressed soon, however, given whipsaw action there – although let’s wait for the dust to settle, as 10-years have been sold most everywhere in the last few days as everyone moves to cash – and to the USD.

There was also an AUD90bn term funding facility for Aussie banks to support SMEs; Aussie lenders will effectively get AUD1 of RBA funding for each new AUD1 of new lending, and AUD5 for each new AUD1 of lending to SMEs. The Reserve Bank will also be encouraging banks to draw from its term deposit facility, despite the stigma; and we will get AUD15bn of RMBS purchases from small banks and non-bank lenders. How long until that particular part of the package goes up and up and up – and what will it mean for that Dollar Kebab when it does?

Elsewhere, a staggering 475 Italians died yesterday; more borders are closing today – now Australia and New Zealand too, with the former suggesting it could be for six months; British schools are closed indefinitely; 10,000 troops are to join the UK’s COVID-19 support force, doubling it to the kind of force that could actually take over a small country; and up to 40 London tube stations are to close, with rumours of a total citywide lockdown.

In terms of the fiscal response: watch this space. The US has passed a USD100bn fiscal package to expand Medicaid and unemployment benefits, mandate paid sick leave, and childcare for some employees, as well as free virus testing for all; and work continues on a large USD 1.2 trillion package that includes two months of USD 1,000 handouts at a cost of USD 500bn. Australia is going to do more fiscally too. Everyone is going to do more.

And the USD is going to keep doing more, it would seem.

end

Michael Snyder..

7. OIL ISSUES

Oil Soars 24% In Biggest One-Day Surge On Record

One day after oil crashed by a near record 25%, a move which made some sense in light of the historic dollar short squeeze and surge to all time highs in the Bloomberg dollar index, today oil has rebounded violently, and after rising as much as 26%, WTI settled up $4.85 at $25.22, or 23.81% higher…

… its biggest one day move on record!

There was no actual catalyst, although some oil traders cited a rogue rumor that emerged just before the big spike according to which “Putin has instructed Novak to engage the #Saudis 🇸🇦 to resume #OPEC+ supply cuts.”

Yesar Al-Maleki@yesar

prices are green again.

Why?

🔴 🇷🇺 Rumors has instructed Novak to engage the 🇸🇦 to resume + supply cuts.

🔴 🇺🇸 DoE announced tender for 30 million barrels stocks. All from small & mid sized producers.

View image on Twitter

Remarkably, today’s record surge took place even as the dollar index continued to soar, suggesting the move was most likely a counter-trend short squeeze.

That said, putting the move in context, despite today’s record surge, oil is still down 17% for the week.

END

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0735 DOWN .0200 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 109.89 UP 1.540 (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 1.1552   DOWN   0.0054  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4577 UP .0099 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//OIL PRICE DROP KILLING THE OIL STANDS)

Early THIS  THURSDAY morning in Europe, the Euro FELL BY 200 basis points, trading now BELOW the important 1.08 level FALLING to 1.0735 Last night Shanghai COMPOSITE CLOSED DOWN 26.53 POINTS OR 0.98% 

 

//Hang Sang CLOSED DOWN 582.69 POINTS OR 2.61%

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

 

Trading from Europe and ASIA

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 582.69 POINTS OR 2.61%

 

 

/SHANGHAI CLOSED DOWN 26.63 POINTS OR 0.98%

 

Australia BOURSE CLOSED DOWN. 3.79% 

 

 

Nikkei (Japan) CLOSED DOWN 173.72  POINTS OR 1.04%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1478.70

silver:$12.00-

Early WEDNESDAY morning USA 10 year bond yield: 1.13% !!! DOWN 6 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.72 DOWN 5  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 102.12 UP 96 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.08% DOWN 40 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.09%  UP 3   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.89%//DOWN 30 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,80 DOWN 50 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 91 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.19% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.99% 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 THURSDAY

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

Euro/USA 1.0694  DOWN     .0250 or 250 basis points

USA/Japan: 110.09 UP 1.732 OR YEN DOWN 173  basis points/

Great Britain/USA 1.1657 UP .0046 POUND UP 46  BASIS POINTS)

Canadian dollar DOWN 4 basis points to 1.4475

 

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The USA/Yuan,CNY: AT 7.1086    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1467  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.5389 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +.09%

 

Your closing 10 yr US bond yield DOWN 7 IN basis points from WEDNESDAY at 1.11 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.79 DOWN 4 in basis points on the day

Your closing USA dollar index, 102.45 UP 129  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 THURSDAY: 12:00 PM

London: CLOSED UP 92.93  1.83%

German Dax :  CLOSED UP 206.27 POINTS OR 2.44%

 

Paris Cac CLOSED UP 99.02 POINTS 2.64%

Spain IBEX CLOSED UP 122.30 POINTS or 1.95%

Italian MIB: CLOSED UP 393.38 POINTS OR 2.39%

 

 

 

 

 

WTI Oil price; 23.94 12:00  PM  EST

Brent Oil: 27.04 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    80.00  THE CROSS LOWER BY 1.04 RUBLES/DOLLAR (RUBLE HIGHER BY 104 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.19 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 :  25.41//

 

 

BRENT :  28.25

USA 10 YR BOND YIELD: … 1.13  down 5 basis pts…

 

 

 

USA 30 YR BOND YIELD: 1.77  down one basis point

..

 

 

 

 

 

EURO/USA 1.0678 ( down 266   BASIS POINTS)

USA/JAPANESE YEN:110.86 up .2.50 (YEN down 250 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 102.72 up 156 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.1529 down .0079 OR 79 BASIS POINTS

 

the Turkish lira close: 6.5421

 

 

the Russian rouble 78.80   UP 2.23 Roubles against the uSA dollar.( UP 223 BASIS POINTS)

Canadian dollar:  1.4510 DOWN 31 BASIS pts

USA/CHINESE YUAN (CNY) :  7.1076  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 7.1582 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.19%

 

The Dow closed UP 188.27 POINTS OR 0.95%

 

NASDAQ closed UP 160.73 POINTS OR 2.31%

 


VOLATILITY INDEX:  72.00 CLOSED DOWN 4.45

LIBOR 3 MONTH DURATION: 1.157%//libor dropping like a stone

 

USA trading today in Graph Form

The Median US Stock Is Now Down 50% From Its Highs As World Loses $25 Trillion In A Month

Global stock and bond markets have seen $25 trillion of ‘paper’ wealth erased in the last month, wiping out all the gains from the Dec 2018 crash lows….

Source: Bloomberg

Global bonds are actually still up around $5 trillion while global stocks have lost around $5 trillion since the Dec 2018 lows, and a lot of those losses come from the US markets where the median stock is now down 50% from its highs… (because the Value Line index below is based on a geometric average the daily change is closest to the median stock price change)

Source: Bloomberg

As Washington signs and promises more and more bailouts and helicopter money drops, USA sovereign risk is starting to get a little spooked…

Source: Bloomberg

Systemic risk remains extremely elevated…

Source: Bloomberg

Which makes sense when the world’s largest banks are seeing their credit risk explode like it did ahead of the Lehman crisis…

Source: Bloomberg

And despite the endless liquidity from global central banks and polititicians, financial conditions are tightening at their fastest rate ever…

Source: Bloomberg

And the real ‘fear’ trade is now at its most extreme since the peak of the Lehman crisis…

Source: Bloomberg

Policy Fail – The Dollar rallied for the 8th straight day, soaring to a new record high despite The Fed opening unlimited FX Swap Lines…

Source: Bloomberg

This is the largest 8-day rally in the DXY Dollar Index… ever! Greater even than when Soros broke The Bank of England in Sept 1992…

Source: Bloomberg

But The Fed will “never give in”…

Since the COVID-19 Malrarkey began, Chinese stocks remain the leaders (down only 12%), while Europe is the laggard…

Source: Bloomberg

US equity markets soared today (thanks to the biggest short-squeeze in 7 years), but failed to erase yesterday’s gains… (NOTE Nasdaq just tagged unch from Tuesday and then rolled over – algo-tom-foolery)…

On the week, it’s still a shitshow with The Dow worst, down 13%…

Today saw “Most Shorted” stocks soar 8% – the biggest short-squeeze since August 2013

Source: Bloomberg

Directly virus-affected sectors rebounded today…

Source: Bloomberg

VIX fell notably today, testing below 70 ahead of tomorrow’s Quad-Witch option expiry…

Meanwhile, Boeing credit risk continues to soar (as questions rise about whether they should be bailed out or not)…

Source: Bloomberg

And Ford suspended its dividend and withdrew its guidance sending its credit risk soaring…

Source: Bloomberg

Credit markets were not buying what stocks were selling today…

Source: Bloomberg

Treasury yields were mixed with the long-end higher and rest of the modestly lower (despite a huge range)… (10Y yields briefly dipped below 1.00% today)

Source: Bloomberg

Another late-day purge in yields pushed 30Y to end higher on the day…

Source: Bloomberg

Munis were massacred today – 10Y yield spiking 47bps!! (MUNI-BOND OUTFLOW ALMOST THREE TIMES PREVIOUS RECORD)

Source: Bloomberg

EUR tumbled today to 3 year lows today in biggest loss since Jan 2001 (bigger than Jun 2016 Brexit vote loss)

Source: Bloomberg

And Cable crashed to the weakest since 1985…

Source: Bloomberg

Cryptos had a big day with Bitcoin Cash outperforming…

Source: Bloomberg

Today’s commodity markets were dominate by oil’s biggest rally ever…however, given the carnage in crude, WTI is still down 20% on the week…

Source: Bloomberg

Today was oil’s biggest daily gain… ever. Bouncing off a $20 handle and helped by talk of Trump intervention, WTI was up around 25%!! However, in context, it doesn’t look like much (apart from the insane $2 spike at settlement for a 35% surge intraday)…

Oil and the dollar both rallied together late on…

Source: Bloomberg

Gold was modestly lower on the day but silver actually managed gains, bouncing off $12 again..

And on a somewhat related note, is this the other reason why gold has been sold?

Source: Bloomberg

Volatile day in PMs with Palladium best and Platinum worst…

Source: Bloomberg

Finally, as Bloomberg notes, anyone referring to the past month’s plunge in U.S. stocks as a crash has history on their side. The S&P 500 Index’s volatility for the 10 trading days ended Wednesday was 122%, according to data compiled by Bloomberg.

Source: Bloomberg

Only two periods have produced higher readings: the aftermath of the 1929 Black Tuesday crash and the 1987 Black Monday crash. The volatility gauge climbed more than 17-fold from Feb. 19, when the S&P 500’s latest bull market ended, through Wednesday.

The FRA-OIS spread spiked once again today signaling major tensions in the liquidity markets remain…

Source: Bloomberg

And global basis swaps spiked again (led by JPY) as the dollar shortage worsened today…

Source: Bloomberg

In other words – whatever The Fed is doing – “It’s Not Working!”

END

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Dow Futures Crash Near Limit-Down As Global Dollar Buying Panic Sparks AsiaPac FX Collapse

Update (2305ET): Dow futures losses have accelerated, plunging over 1000 points limit-down…

S&P and Nasdaq futures are also crashing…

Additionally, South Korea’s KOSPI is halted after triggered circuit-breakers down 8% on the day

Platinum and Palladium are plunging…

And Copper has succumbed to the liquidation…

 

The global scramble for dollars amid a massive shortage has rolled around the AsiaPac time-zone and is leaving a bloody trail across every asset-class.

FX is in freefall with Aussie collapsing at the fastest rate since Lehman…

Source: Bloomberg

Kiwi is back to its weakest since 2009…

Source: Bloomberg

Yen is tumbling once again…

Source: Bloomberg

Won is getting whacked…

Source: Bloomberg

And Aussie has crashed to its weakest against the offshore yuan ever and weakest against onshore yuan since Dec 1993

Source: Bloomberg

And overall, AsiaPac FX is crashing to its weakest against the USDollar since 2004…

Source: Bloomberg

And the liquidation continues in US equity markets with Dow futures down over 800 points, erasing the after ramp in stocks…

And losses in AsiaPac stocks are accelerating…down 27% from January highs

Source: Bloomberg

And JPY Basis-Swaps are signaling extreme dollar shortage continues…

Source: Bloomberg

This all has the smell of a massive global macro fund liquidation and the contagious impact of that leveraged unwind across the global risk markets.

As Bloomberg’s Stephen Spratt details, desks continue to speak of the “sell everything” mentality in markets with huge liquidations and de-leveraging taking place everywhere.

The data stacks up. Looking at the three-day change in open interest across major June bond futures as of close of play Tuesday, the reduction in positions is the equivalent to $150 billion in 10-year cash Treasury bonds ($140m/dv01*). Here’s 3-day open interest change:

  • Schatz: -135,295
  • Bobl: -45,931
  • Bund: -178,221
  • Buxl: -17,566
  • OATs: -41,475
  • BTPs: -41,176
  • Gilts: -28,055
  • US 2y: -158,991
  • US 5y: -44,059
  • US 10y: -129,381
  • US 20y: -60,865
  • US 30y: -26,798
  • JGBs: -36,534

As one veteran Aussie trader exclaimed (who happened to be on the right side of the collapse in the currency):

“I love the smell of global macro fund liquidations in the morning…”

With currencies flash crashing across Asia on Thursday, central bankers may be looking back at the remedies used then.

As Bloomberg’s Mike Wilson suggests, the tear the U.S. dollar was on back in 1985 was brought to an end when five central banks gathered in New York’s Plaza Hotel and came up with what became known as The Plaza Accord.

Source: Bloomberg

That sent the dollar into a steep slide that lasted until about the end of 1987.

With the Aussie, kiwi and won just free-falling, it looks like a similar sort of coordinated intervention may be needed to stop the dollar now, especially until the world is deemed free of coronavirus impacts.

b)MARKET TRADING/USA/THIS MORNING

Fed Boosts Daily QE By 66% Overnight To Record $75 Billion In One Day

Overnight saw the addition of yet another four-letter-acronym bailout fund from The Fed but signals from the market suggest that they are once again losing control of the dollar-shortage-driven liquidity crisis as the FRA-OIS spread has started to rise sharply once again...

So, what does The Fed decide to do?

Simple – increase its daily QE buying of bonds by 66%, buying a record $75 billion of US Treasury bonds each of today and tomorrow.

The bank had initially planned to purchase $50b of Treasuries on those days.

The buying is spread across 7 operations as listed below:

  • 9:40 – 10:00 am: Treasury Coupons 7 to 20 year sector, for around $6 billion
  • 10:30 – 10:50 am: Treasury Coupons 4.5 to 7 year sector, for around $11 billion
  • 11:20 – 11:40 am: Treasury Coupons 2.25 to 4.5 year sector, for around $17 billion
  • 12:10 – 12:30 pm: Treasury Coupons 0 to 2.25 year sector, for around $25 billion
  • 1:00 – 1:20 pm: Treasury Coupons 20 to 30 year sector, for around $9 billion
  • 1:50 – 2:10 pm: TIPS 1 to 7.5 year sector (Thursday)/TIPS 7.5 to 30 year sector (Friday), for around $7 billion

Just for some context, that is more than one month of ‘old QE’ in one day!!

END
MARKET TRADING THIS AFTERNOON:
Muni bond market is a bloodbath//yields on treasuries suddenly tumble

Treasury Yields Suddenly Tumble As Muni Massacre Accelerates

As The Fed continues its massive Daily QE, yields across the Treasury market are suddenly tumbling but the Muni market is a bloodbath...

30Y Yields just puked 20bps lower…

10Y Treasury yields dropped back below 1.00%…

As 10Y Muni yields spike a stunning 48bps…

Extending the recent massacre…

ii)Market data/USA

iii) Important USA Economic Stories

I never thought that this would happen:  all treasury bills up to 3 months are now negative and that is why gold is now backward three months out

 

(zerohedge)

All Bills Up To Three Months Now Have Negative Yields

With the Fed Funds rate now at the lowest possible positive level (0-25bps) and supported by the zero lower bound at least until the Fed cuts rates to negative as most other central banks, today’s historic scramble to obtain dollars which send the Bloomberg Dollar Index to an all time high manifested itself in the furious buying of one particular instrument: no not coupon Treasuries, which tumbled again amid widespread liquidations that sent the 10Y and 30Y yields to 1.192% and 1.787% respectively despite breakevens plunging to all time lows…

… we are talking about T-Bills to the 3 month mark,whose yields slumped below zero today, where they have remained all day in a harbinger of what is coming to the rest of the curve.

Should this unprecedented dollar squeeze become even more exacerbated overnight, look at first 6, then 12M bills, eventually 2Y coupons (and so on), also have a negative yield in the coming weeks as the US slowly but surely becomes Japan.

END
Kudlow says that the USA may take equity positions as part of the coming bailouts
(zerohedge)

Kudlow Says US “May Take Equity Position” As Part Of Coming Bailouts

At this point, the White House has reportedly discussed bailouts for the shale industry, the airlines, cruise lines, Boeing and a non-specific bailout allotment worth hundreds of billions in the second economic relief package.

So it should hardly come as a surprise that Larry Kudlow said Wednesday – after the market closed off the lows following an afternoon ramp – that the White House might consider outright purchases of equities as part of its corporate bailout plan.

“One of the ideas is, if we provide assistance, we might take an equity position,” Kudlow said Wednesday during a brief huddle with reporters at the White House.

Those who remember the last crisis should recognize the creeping nationalizations similar to what the US did with Citi and various other insolvent banks in 2008.

He added that the 2008 bailout of GM had been “a good deal” for the federal government (though the same cannot be said for all of the government’s GFC-era bailouts, air travel certainly isn’t going anywhere, and we suspect there aren’t too many eager entrepreneurs looking to start an airline right now).

But Kudlow cautioned that the idea was just one of many, and that the ultimate form of the coronavirus stimulus legislation would depend on negotiations on Capitol Hill.

“This thing is one day at a time,” Kudlow said.

Just as he said earlier during an earlier interview with Fox News before his huddle with the rest of the White House pool, Kudlow reiterated that the administration could “up the ante” beyond its $1.3 trillion stimulus proposal if the economic impact of the coronavirus is more severe than anticipated.

“We’ll do whatever it takes,” Kudlow said.

He also made a few other interesting claims during that interview, such as the notion that furloughed auto workers would return to work just to build ventilators to combat the crisis without compensation.

Aaron Rupar

@atrupar

“They might even ask them to do it on a voluntary basis, for civic & patriotic reasons” — Larry Kudlow just tried to tell a feel-good story on Fox News about how a major car company plans to call furloughed workers back to the factory to make ventilators without compensation 😳

Embedded video

Bottom line: The US has “enormous resources” to deal with the economic fallout, Kudlow said.

END
Thursday morning/
Fearing that investors may not get their money back in mutual funds, the Fed announced another bailout to prevent this sector from “breaking the buck”
(zerohedge)

Lehman Playbook Continues: Fed Unveils Another Bailout Fund To Avoid Money Market Funds ‘Breaking The Buck’

The four-letter acronyms for ‘bailout’ continue to play out exactly like during the Lehman crisis (as we previewed here), as The Fed desperately tries to hold the backbone of the entire global financial markets together with whack-a-mole buying programs to avoid investors seeing behind the curtain of the whole Potemkin Village.

Earlier this week we previewed all this, noting that, in addition to the revival of the PDCF, we may also see the return of AMLF and MMIFF…

The second (MMIFF) was designed to provide liquidity for money market mutual funds, stimulating them to extend the term of their money market investments.

Instead of scrambling for overnight assets because of liquidity fears, this would help maintain demand for term securities in the money market. Although no loans were made under the MMIFF, the facility could be useful this time. While CPFF helps issuers of commercial paper, money market mutual funds are still in need of liquidity.

A related facility, which peaked at $140bn in 2008, was the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) which provided funding for depository institutions purchasing asset-backed commercial paper from money market mutual funds.

As if one needs reminding, one of the more dramatic events from the 2008 crisis was the sight of mutual funds trading below $1 – so-called ‘breaking the buck’.

When money-market investors fear they won’t get back their capital it will make a bad situation into a real crisis.

The Fed has enough to deal with without a run on mutual funds by retail investors, and so, sure enough, in addition to unlimited repo, CPFF, TALF, and PDCF, The Fed has just announced  the establishment of a Money Market Mutual Fund Liquidity Facility, or MMLF.

As the biggest buyers of commercial paper, this bailout facility is clearly aimed, once again, at being another effort to reduce the spiking risks (and freeze) in the critical short-term liquidity markets.

While yields did compress a little (positive) today, risk increased notably despite CPFF…

And so, paging through the “OMFG, what do we do now that didn’t work in the past”-playbook, this new facility will  make loans available to eligible financial institutions secured by high-quality assets purchased by the financial institution from money market mutual funds.

We wait to see how effective this latest four-letter-word will be in calming the savage beast of a global dollar shortage.

*  *  *

Full Details below:

The Federal Reserve Board on Wednesday broadened its program of support for the flow of credit to households and businesses by taking steps to enhance the liquidity and functioning of crucial money markets.

Through the establishment of a Money Market Mutual Fund Liquidity Facility, or MMLF, the Federal Reserve Bank of Boston will make loans available to eligible financial institutions secured by high-quality assets purchased by the financial institution from money market mutual funds.

Money market funds are common investment tools for families, businesses, and a range of companies. The MMLF will assist money market funds in meeting demands for redemptions by households and other investors, enhancing overall market functioning and credit provision to the broader economy.

The term sheet below details the types of assets, including unsecured and secured commercial paper, agency securities, and Treasury securities, that are eligible, as well as additional information. The MMLF program will purchase a broader range of assets, but its structure is very similar to the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, or AMLF, that operated from late 2008 to early 2010. The MMLF is established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary. The Department of the Treasury will provide $10 billion of credit protection to the Federal Reserve in connection with the MMLF from the Treasury’s Exchange Stabilization Fund.

Term Sheet:

Money Market Mutual Fund Liquidity Facility

Facility: To provide liquidity to Money Market Mutual Funds (“Funds”), the Federal Reserve Bank of Boston
(“Reserve Bank”) would lend to eligible borrowers, taking as collateral certain types of assets purchased by
the borrower from Funds (i) concurrently with the borrowing; or (ii) on or after March 18, 2020, but before
the opening of the Facility.

Borrower Eligibility: All U.S. depository institutions, U.S. bank holding companies (parent companies
incorporated in the United States or their U.S. broker-dealer subsidiaries), or U.S. branches and agencies of
foreign banks are eligible to borrow under the Facility.

Funds: A Fund must identify itself as a prime money market fund under item A.10 of Securities and Exchange
Commission Form N-MFP.

Advance Maturity: The maturity date of an advance will equal the maturity date of the eligible collateral
pledged to secure the advance made under this Facility except in no case will the maturity date of an advance
exceed 12 months.

Eligible Collateral: Collateral that is eligible for pledge under the Facility must be one of the following types:

1) U.S. Treasuries & Fully Guaranteed Agencies;

2) Securities issued by U.S. Government Sponsored Entities;

3) Asset-backed commercial paper that is issued by a U.S. issuer, is rated at the time purchased from the
Fund or pledged to the Reserve Bank not lower than A1, F1, or P1 by at least two major rating agencies
or, if rated by only one major rating agency, is rated within the top rating category by that agency; or

4) Unsecured commercial paper that is issued by a U.S. issuer, is rated at the time purchased from the
Fund or pledged to the Reserve Bank not lower than A1, F1, or P1 by at least two major rating agencies
or, if rated by only one major rating agency, is rated within the top rating category by that agency.

In addition, the facility may accept receivables from certain repurchase agreements.

Rate: Advances made under the Facility that are secured by U.S. Treasuries & Fully Guaranteed Agencies or
Securities issued by U.S. Government Sponsored Entities will be made at a rate equal to the primary credit
rate in effect at the Reserve Bank that is offered to depository institutions at the time the advance is made.
All other advances will be made at a rate equal to the primary credit rate in effect at the Reserve Bank that is
offered to depository institutions at the time the advance is made plus 100 bps.

Fees: There are no special fees associated with the Facility.

Collateral Valuation: The collateral valuation will either be amortized cost or fair value. For asset-backed
and unsecured commercial paper, the valuation will be amortized cost.

Credit Protection by Department of the Treasury: The Department of the Treasury, using the Exchange
Stabilization Fund, will provide $10 billion as credit protection to the Reserve Bank.

Non-Recourse: Advances made under the Facility are made without recourse to the Borrower, provided the
requirements of the Facility are met. For avoidance of doubt, borrowers under the MMLF will bear no credit
risk.

Regulatory Capital Treatment: Separately and consistent with the purposes of the MMLF, the Board, the
OCC, and FDIC will act to fully neutralize the impact of a depository institution holding company or depository
institution’s participation in the facility for purposes of regulatory capital requirements, including risk-based
capital and leverage requirements. The Board, OCC, and FDIC will fully exempt from risk-based capital and
leverage requirements (i) any asset pledged to the MMLF and (ii) any asset purchased from a Fund on or after
March 18, 2020 that the firm intends to pledge to the MMLF upon opening of the Facility.

Program Termination: No new credit extensions will be made after September 30, 2020, unless the Facility is
extended by the Board of Governors of the Federal Reserve System.

*  *  *

So this better all be fixed by September?

The market for now was completely unimpressed by this latest effort:

end

Then this Thursday morning:  The Fed expands its dollar swap lines with nine more central banks with an unprecedented dollar short squeeze

(zerohedge)

Fed Expands Dollar Swap Lines With Nine More Central Banks Amid Unprecedented Dollar Short Squeeze

As we reported yesterday, one of the recommendations proposed by repo “god” Zoltan Pozsar to restore dollar liquidity and eliminate funding and market stress, was for the Fed to effectively become banker to the entire world in the form of unlimited, 24/7 swap lines with every central bank, not just the current G7, to wit:

The Fed needs to broaden access to the swap lines to other jurisdictions as dollar funding needs are large in Scandinavia, Southeast Asia, Australia and South America, not just in the G-7.

Well, after an overnight session that saw currencies flash crash across Asia, notably the Aussie…

… and Kiwi…

… demonstrating just how urgently instant dollar access is needed at a time of the biggest dollar margin call in history, the Fed relented, and on Thursday morning the Federal Reserve announced the establishment of temporary U.S. dollar liquidity arrangements (swap lines) with:

  • the Reserve Bank of Australia
  • the Banco Central do Brasil
  • the Danmarks Nationalbank (Denmark)
  • the Bank of Korea
  • the Banco de Mexico
  • the Norges Bank (Norway)
  • the Reserve Bank of New Zealand
  • the Monetary Authority of Singapore
  • and the Sveriges Riksbank (Sweden).

According to the release, “these facilities, like those already established between the Federal Reserve and other central banks, are designed to help lessen strains in global U.S. dollar funding markets, thereby mitigating the effects of these strains on the supply of credit to households and businesses, both domestically and abroad.”

How much dollars will be available? As per the release, the Fed will release up to $60 billion each for the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Korea, the Banco de Mexico, the Monetary Authority of Singapore, and the Sveriges Riksbank and $30 billion each for the Danmarks Nationalbank, the Norges Bank, and the Reserve Bank of New Zealand.

Finally, the Fed announced that these U.S. dollar liquidity arrangements will be in place for at least six months.

In kneejerk response, the dollar sold off sharply with the BBDXY sliding from record highs, although the move appears far less than what the Fed may have wanted as the market realizes there is little any central bank can do in a world where virtually every corporation is now facing the risk of bankruptcy in the coming months.

If this turns out to be insufficient, the Fed may have to follow up on Pozsar’s other, far more draconian recos, including backstopping virtually every asset.

end

The next company to draw down their entire credit line facility is Ford…they suspended their dividend and withdrew any guidance..they are close to a default

(zerohedge)

Ford Suspends Dividend, Draws-Down $15bn Credit Line Fully, Withdraws Guidance

A day after the Big 3 shutdown factories amid the virus lockdown, Ford is out with a kitchen sink 8K as it braces to ride out the worsening economic situation in the US (and worldwide):

  • $15.4 billion of additional cash on balance sheet, drawing from two credit lines
  • Dividend suspension to preserve cash and provide additional flexibility in the current environment
  • Withdrawal of company guidance for 2020 financial performance

Full Press Release:

Ford Motor Company is taking a series of initiatives to further bolster the company’s cash position amid the coronavirus health crisis, maintain strategic flexibility on behalf of its team and customers, and set up Ford to separate itself from competitors when the global economy emerges from the current period of acute uncertainty.

“Like we did in the Great Recession, Ford is managing through the coronavirus crisis in a way that safeguards our business, our workforce, our customers and our dealers during this vital period,” said Ford CEO Jim Hackett.

“As America’s largest producer of vehicles and largest employer of autoworkers, we plan to emerge from this crisis as a stronger company that can be an engine for the recovery of the economy moving forward.”

The company today notified lenders that it will borrow the total unused amounts against two lines of credit: $13.4 billion under its corporate credit facility and $2 billion under its supplemental credit facility. The incremental cash from these borrowings will be used to offset the temporary working capital impacts of the coronavirus-related production shut downs and to preserve Ford’s financial flexibility.

“While we obviously didn’t foresee the coronavirus pandemic, we have maintained a strong balance sheet and ample liquidity so that we could weather economic uncertainty and continue to invest in our future,” Hackett said.

“Our Ford people are extremely resilient and motivated, and I’m confident in the actions we are taking to navigate the current uncertainty while continuing to build toward the future.”

Ford has regularly described targets of having $20 billion in cash and $30 billion in liquidity heading into an economic downturn.  At the end of 2019, those levels were $22 billion and $35 billion, respectively.

At the same time, Ford announced it has suspended the company’s dividend, prioritizing near-term financial flexibility and continued investments in an ambitious series of new-product launches in 2020 and long-term growth initiatives.

Also, Ford said it is withdrawing the guidance it gave on Feb. 4 for 2020 financial performance, which did not factor in effects of the coronavirus, given uncertainties in the business environment.  The company will provide an update on the year when it announces first-quarter results, which is currently scheduled for April 28.

Ford this week announced plans to temporarily stop production at its plants in North America and Europe starting today.  The actions were taken to protect the health and safety of employees and respond to issues with the supply chain and other constraints. The company will work with labor representatives to safely and effectively restart production in the weeks to come.

Hackett noted China was the first country to face the virus and is now emerging from the coronavirus crisis and showing improvements in automobile demand. This news on the China recovery should be a source of optimism about the overall economic recovery as the virus abates, he said.

 

Why this is all a problem? Because CDS markets are now pricing a 45% chance of the automaker defaulting…

How long before they demand a government bailout too?

 end
Philly fed crashes
(zerohedge)

Philly Fed Crashes By Most On Record To 9 Year Lows

After soaring unexpectedly to two-year highs in February (as stocks ignored the global disruptions), Philly Fed’s Business Outlook Survey has collapsed in March. From 36.7 in February, Philly Fed plunged to -12.7 (massively worse than the +8 estimate from clearly cognitively challenged analysts). That is the weakest level since September 2011…

Source: Bloomberg

This is the biggest drop in Phily Fed… ever…

Source: Bloomberg

Under the hood – everything tumbled…

  • March prices paid fell to 4.8 vs 16.4
  • New orders fell to -15.5 vs 33.6
  • Employment fell to 4.1 vs 9.8
  • Shipments fell to 0.2 vs 25.2
  • Delivery time fell to -9.1 vs 2.7
  • Inventories fell to 1.7 vs 11.8
  • Prices received fell to 6.8 vs 17.1
  • Unfilled orders fell to -7.4 vs 7.4
  • Average workweek fell to 0.5 vs 10.3

And worse still, the outlooks plunged…

  • Six-month outlook fell to 35.2 vs 45.4
  • Six-month outlook for capex fell to 12.0 vs 29.8

New Orders crashed and jobs are set to fall further…

So the question is – WTF were people thinking in February?

end

Trump deploys Navy floating hospital to the New York habour as virus cases soar

(zerohedge)

Trump Deploys Navy Floating Hospital To NYC Harbor As Virus Cases Soar

New York is experiencing an exponential rise in confirmed Covid-19 cases requiring hospitalization. The problem is when hospital beds and ICU level care capacity is exhausted, treatment for the most vulnerable is not seen, and that is the point when mortality rates surge. To mitigate an Italy-style crisis, President Trump is set to deploy two hospital ships, which could provide several thousand additional hospital beds to New York City’s capacity, reported CNN.

“I have directed, as the President has mentioned, the hospital ships Mercy and Comfort to be prepared to deploy to increase the nation’s medical capacity and we’ve also alerted a variety of field and expeditionary hospitals to be prepared to deploy as well as needed,” Defense Secretary Mark Esper said at the White House on Wednesday.

 

Hospital Ship USNS Comfort

Pentagon Spokesman Jonathan Hoffman told reporters on Wednesday that USNS Comfort is currently undergoing maintenance in Virginia and would be ready to set sail and anchor in the New York Harbor in mid-April.

 

Jeff Myers@wavyphotog

WAVY’s Chopper 10 over the USNS Comfort. The Norfolk based “floating hospital” will be heading to New York City to give aid during the outbreak. It will be used for patients not diagnosed with the Coronoavirus the Navy emphasized. More info on http://Wavy.com @WAVY_News

Embedded video

Hoffman said USNS Mercy, its sister ship, will accompany the USNS Comfort, and both are being sent to New York because that is a region where the federal government believes the hospital system could soon be overwhelmed by Covid-19 patients. The vessel’s personnel are trained to handle combat-related injuries and are not trained in treating infectious diseases. This suggests that the ships would be used to treat non-Covid-19 patients.

“Our understanding is that the intent is the ships will be used to take non-coronavirus patients, which is what our staffs are best assigned and organized to do,” Brigadier General Paul Friedrichs said at a news conference Wednesday.

The Pentagon confirmed to CNN that the ships would provide 2,000 additional hospital beds to the city’s capacity. New York Governor Andrew Cuomo said Wednesday that 50,000 extra hospital beds are needed.

Ed Serrano@edserra8

Governor Cuomo: Trump dispatching USNS Comfort to NY: ‘It’s literally a floating hospital’ | https://video.foxnews.com/v/6142590522001

By Thursday morning, New York has seen an exponential rise in confirmed cases, now at 3,074, with 8 deaths. The mortality rate is low at the moment because the hospital system can handle the influx of patients.

END

Here comes the next stimulus deal: a rapid injection of cash for small business

(zerohedge)

iv) Swamp commentaries)

Schiff Lawyers Claim “Sovereign Immunity” In Lawsuit Over Doxing Of GOP Phone Records

House attorneys for Rep. Adam Schiff (D-CA) and the Intelligence Committee he chairs asked the US District Court for the District of Columbia to toss out a lawsuit against them for obtaining phone records of high-profile conservatives which resulted in the ‘doxing’ of their non-public private information.

The impeachment-related subpoenas resulted in the publication of the private phone numbers for Rudy Giuliani, Rep. Devin Nunes (R-CA), journliast John Solomon, Trump attorney Jay Sekulow, attorney Victoria Toensing and others, according to Judicial Watch.

In their 14-page motion Schiff and the Committee claim “sovereign immunity;” “Speech or Debate Clause” privilege; immunity from FOIA and transparency law; that the records are secret; and that Judicial Watch and public do not need to see them.

Judicial Watch filed its lawsuit under the public’s common-law right of public access to examine government records after it received no response to a December 6, 2019, records request (Judicial Watch v. v Adam Schiff and U.S. House Permanent Select Committee on Intelligence (No. 1:19-03790)):

  • All subpoenas issued by the House Permanent Select Committee on Intelligence on or about September 30, 2019 to any telecommunications provider including, but not limited to AT&T, Inc., for all records of telephone calls of any individuals
  • All responses received to the above subpoenas. –Judicial Watch

Schiff is being sued in his capacity as Chairman of the House Intelligence Committee. According to the lawsuit:

  • The records are of critical public importance as the subpoenas were issued without any lawful basis and violated the rights of numerous private citizens.
  • Disclosure of the requested records would serve the public interest by providing information about the unlawful issuance of the subpoenas.
  • The requested records fall within the scope of the public’s right of access to governmental records as a matter of federal common law.

“Schiff’s new court filing to try to avoid disclosing his abusive subpoenas of confidential phone records suggests he and Congress can secretly subpoena and publish the phone records of any American with zero accountability under law to the people,” said Judicial Watch president Tom Fitton, adding “Speaker Pelosi and every House member should be asked if they agree that they are above the law and can spy on any American.”

END

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

Coronavirus: South Korea fears worst is not over as new clusters emerge – SCMP

spate of new cases near densely populated Seoul is raising concerns of runaway cases nationwide

https://www.scmp.com/week-asia/health-environment/article/3075776/coronavirus-south-korea-fears-worst-not-over-new

Italy reported 4,207 new coronavirus cases and 475 new deaths.

Belgium enters lockdown over coronavirus crisis – The Guardian

@ScottGottliebMD: The number of confirmed cases in New York has risen 1,008 in one day to a total of 2,382. The City is hitting the steeper part of its epidemic curve and case counts will rise more quickly as screening is widely deployed. [We warned that cases would increase as testing increased.]

Die Welt’s @Schuldensuehner: Germany… number of COVID-19 cases is rising rapidly and has now overtaken South Korea’s…Germany has a total number of confirmed cases of 9,360 and 26 deaths.

     Another Bund auction failed. Germany sold  €1.176bn in 30y bonds at 0.01%. Overall volume of bids w/€1.347bn remained below the offer volume of €1.5bn.

BBG’s @lisaabramowicz1: U.S. junk-bond spreads have now exceeded the 2016 highs and are the highest since 2011. 8.46 percentage points over benchmark rates.  Italian bond yields surge to the highest in more than a year. U.S. yields keep selling off. It seems like bond vigilantes are waking up as governments prepare to print money.

Bank of Italy buying domestic bonds as ECB steps in to stabilise markets – source

The Bank of Italy is buying Italian paper as the European Central Bank steps in to counter a rout in euro zone government bond markets…   https://www.reuters.com/article/italy-bonds-bank-of-italy-idUSL8N2BB4G9

@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!

Surging U.S. Dollar Is Next Big Headache for World Economy (Most world debt is $-denominated)

Emerging markets are suffering record capital outflows [The world is massively short the $ via debt)

https://www.bloomberg.com/news/articles/2020-03-18/surging-u-s-dollar-is-next-big-headache-for-the-world-economy

GnS Economics: The coming crisis will be a different “beast” altogether, even without the virus outbreak.  The biggest reason behind is the mispricing of risk. When central bankers forced interest rates to zero and below, and began to push artificial liquidity into the financial markets through QE-programs, they started to undermine the ability of markets to allocate resources effectively by distorting market prices.  The world will pay a steep price for the arrogance and errors of global central bankers. The ‘everything bubble’ they have blown has also made hedging especially challenging this time around…

https://gnseconomics.com/en_US/2020/03/12/preppers-bunker-coronavirus-update/

Mark Cuban says bailed out companies should never be allowed to buy back their stocks ever again

“Whatever we do in a bailout, make sure that every worker is compensated and treated equally — in that the executives don’t get rewarded extra to stick around because they got nowhere else to go.”…

https://www.cnbc.com/2020/03/18/mark-cuban-says-bailed-out-companies-should-never-be-allowed-to-buy-back-their-stocks-ever-again.html

Jeffrey Gundlach @TruthGundlach: I don’t think government bailouts of over leveraged companies that got over leveraged via share buybacks at all-time highs, enriching executives and hedge fund investors, will sit well with the American people.

@JackPosobiec: University of Southampton: If China had not covered up the Wuhan outbreak and intervened 3 weeks earlier, it would have reduced cases by 95% and greatly limited the geographic spread.  Now it is a global pandemic. China Lied People Died  https://southampton.ac.uk/news/2020/03/covid-19-china.page

World Health Organization (WHO) @WHO Jan 14Preliminary investigations conducted by the Chinese authorities have found no clear evidence of human-to-human transmission of the novel coronavirus (2019-nCoV) identified in Wuhan, China [WHO enabled the crisis!]

@paulsperry_: China pressured the WHO to play down the seriousness of COVID-19 in January & WHO has praised China’s response while steering blame from it. Why? China’s WHO contributions have grown by 52% since 2014 to $86 mil & so has China’s influence over WHO

NYT’s @AnaSwanson: “China did not just stop selling masks — it also bought up much of the rest of the world’s supply. … On Jan. 30, the last day for which data is available, China managed to import 20 million respirators and surgical masks in just 24 hours.”

Evidence Shows Director General of World Health Organization Severely Overstated the Fatality Rate of the Coronavirus Leading to the Greatest Global Panic in History

    The controversial Ethiopian politician and Director General of the World Health Organization (WHO), Tedros Adhanom Ghebreyesus, claimed in a press conference in early March that the fatality rate for the coronavirus was many multiples that of the fatality rate of the common flu… Globally, about 3.4% of reported COVID-19 cases have died. By comparison, seasonal flu generally kills far fewer than 1% of those infected.  This statement led to the greatest panic in world history as the media all over the world shared and repeated that the coronavirus was many, many times more deadly than the common flu

    The actual data shows that the mortality rate for those who had the flu (10%) is almost twice as high than for those with the coronavirus (3.8%)… Current data shows that if you have no pre-existing conditions, your fatality rate if you contract the coronavirus is .9% (and what proportion of these cases are the elderly)…   https://www.thegatewaypundit.com/2020/03/exclusive-evidence-shows-director-general-of-world-health-organization-severely-overstated-the-fatality-rate-of-the-coronavirus-leading-to-the-greatest-global-panic-in-history/

A fiasco in the making? As the coronavirus pandemic takes hold, we are making decisions without reliable data – We don’t know if we are failing to capture infections by a factor of three or 300. Three months after the outbreak emerged, most countries, including the U.S., lack the ability to test a large number of people and no countries have reliable data on the prevalence of the virus in a representative random sample of the general population… The one situation where an entire, closed population was tested was the Diamond Princess cruise ship and its quarantine passengers. The case fatality rate there was 1.0%, but this was a largely elderly population, in which the death rate from Covid-19 is much higher… Projecting the Diamond Princess mortality rate onto the age structure of the U.S. population, the death rate among people infected with Covid-19 would be 0.125%…

https://www.statnews.com/2020/03/17/a-fiasco-in-the-making-as-the-coronavirus-pandemic-takes-hold-we-are-making-decisions-without-reliable-data/

Yet, the MSM, virtue signalers and other Trump-haters are incensed that Trump says ‘Chinese virus’!

Trump called it the ‘Wuhan coronavirus’ for a legal — and commonsensical — reason

The manufactured controversy is as transparently political as it is ill-conceived… it is a relevant consideration in the federal government’s legal authority to respond…

     Sensibly, it could not have been otherwise. Wuhan province was the epicenter of the outbreak. The major story at the start involved suppression by the authoritarian communist regime in Beijing of news and vital information about it…But there is a Republican in the White House, so what was mundane yesterday is racist today… Not only did history and common sense justify the administration (among others) in noting the origin of the Wuhan coronavirus. Doing so was a legal necessity if the imperative of federal support for beleaguered state governments was to be fulfilled…

https://thehill.com/opinion/white-house/487931-trump-called-it-the-wuhan-coronavirus-for-a-legal-and-commonsensical

@seanmdav: The same people who falsely claimed for years that Trump was a treasonous Russian agent, and that anyone who questioned the collusion hoax were Russian agents, would now like you to believe it’s racist to say a virus that originated in China is a virus that originated in China.

@IngrahamAngle: DO NOT FORGET: The Chinese doctor who tried to warn others about coronavirus was threatened, made to sign confession, then died after being infected himself… Our entire country is in lockdown, economy tatters because of the lies and deception of China about COVID-19.

With the growing anger at China over the historic damage done to economies and people, we cannot fathom why Trump haters think that it’s a good idea to side with China over Trump.  It’s another symptom of TDS – Trump Derangement Syndrome.

@DVATW: Many Italians in Northern Italy sold their leather goods and textiles companies to China. Italy then allowed 100,000 Chinese from Wuhan/Wenzhou to move to Italy to work in these factories, with direct Wuhan flights. Result: Northern Italy is Europe’s hotspot for Wuhan Coronavirus

Iran and Italy Are Paying a Hefty Price for Close Ties with Communist China – primarily through the “One Belt and One Road” (OBOR) initiative… China and country X agree to do an infrastructure project in country X. Country X has to borrow from a Chinese bank to finance the project. A contract is always awarded to Chinese companies, which then bring supplies and Chinese employees to country X to build the project… Iranian health officials trace the country’s coronavirus outbreak to Qom, a city of a million people… “China Railway Engineering Corp. is building a $2.7 billion high-speed rail line through Qom…”  https://thefederalist.com/2020/03/17/iran-and-italy-are-paying-a-hefty-price-for-close-ties-with-communist-china/

More than 300,000 Chinese people from Zhejiang live in Italy…

https://www.straitstimes.com/asia/east-asia/china-offers-medical-aid-to-italy-to-fight-coronavirus-chinese-foreign-minister

Sen. Blackburn says American drug companies must return to US after Chinese threats to withhold medicine – She said the bill, Securing America’s Medicine Cabinet, which is co-sponsored by Sen. Bob Menendez, D-N.J., will encourage drug companies to bring manufacturing their products back to the U.S.

https://www.toddstarnes.com/values/blackburn-says-american-drug-companies-must-return-to-us-after-chinese-threats-to-withhold-medicine/

Daniel Horowitz @RMConservative: I kid you not. Jared is pushing expanding EB-5 visas to bring in more Chinese nationals to further buy up America in the very package supposedly designed as Chinese Virus response!

@MichaelCoudrey: There is an anti-malaria drug called Hydroxychloroquine that looks to be highly effective at treating Coronavirus. Initial tests show that on a dose of 600mg, 90% of infected COVID-19 patients tested negative in just 6 days.

@realDonaldTrump: The DNC will have gotten their fondest wish and defeated Bernie Sanders, far ahead of schedule. Now they are doing everything possible to be nice to him in order to keep his supporters. Bernie has given up, just like he did last time. He will be dropping out soon! MAGA/KAG

 

When Rosenstein appointed Mueller as Special Counsel, we published the litany of his misdeeds.

 

Prosecutors Surrender in another Humiliating Defeat for Mueller

There’s a lot of mud on Robert Mueller’s face these days.  His mug is caked with it.

    All of the named individual defendants –more than a dozen Russians– were beyond U.S. jurisdiction.  There would be nothing but empty chairs in the courtroom and no one to challenge the purported evidence.  No real trial would ever occur.  It was a guaranteed victory by forfeit.  Or so Mueller and Rosenstein assumed.  But a funny thing happened on the way to securing their convictions “in absentia.”  Concord hired a team of skilled American lawyers who demanded to examine the actual evidence.  Prosecutors balked and stalled.  A two-year legal battle ensued.  Now, a mere two weeks before jury selection is set to begin, the DOJ has thrown in the towel by asking the judge to dismiss the case…

    Mueller and his team of partisans wasted 22 months and squandered more than $30 million on an investigation of Russian “collusion” that never existed.  They knew it the moment the probe began…

https://thegreggjarrett.com/prosecutors-surrender-in-another-humiliating-defeat-for-mueller/

 

@JonathanTurley: MSNBC Legal Analyst: Trump’s must Be Investigated For Negligent Homicide https://jonathanturley.org/2020/03/18/msn

     Kirschner’s theory is not “nuanced.” It is nonsense. If this is an example of how Kirschner continually found “novel ways to apply homicide liability” as a prosecutor, it is a chilling prospect for anyone who values the rule of law.

 

CBS Baltimore: Baltimore Mayor Begs Residents to Stop Shooting Each Other so Hospital Beds Can Be Used for Coronavirus Patients   https://baltimore.cbslocal.com/2020/03/18/we-need-those-beds-baltimore-mayor-urges-people-to-put-down-guns-after-violence-continues-during-covid-19-pandemic/

END

 

SEE YOU TOMORROW

 

H

One comment

  1. R. Japp · · Reply

    HARVEY, THE FATALITY RATE FOR THE COMMON FLUE IS APPROX. 0.1%, THE FATALITY RATE FOR CORRONA EXCEEDS 1%, SO AT A MINIMUM CORRINA IS AT LEAST 10X HIGHER THAN THE FLUE..

    Please dont propagate biased misinformation..!!!

    Like

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