MARCH 24//PHYSICAL GOLD MARKET DEVIATES FROM THE PAPER GOLD MARKET..PAPER GOLD PRICE BY $67.00// AND THE REAL PHYSICAL GOLD PRICE AT LEAST 100 DOLLARS PER OZ HIGHER//PAPER SILVER UP 1.00 TO $14.11//PHYSICAL SILVER UP TO $26.00//CORONAVIRUS UPDATES/ ITALY IS STILL A MESS//USA CASES RISES EXPONENTIALLY// DANIEL LACALLE: YOUR MUST READ COMMENTARY FOR TONIGHT//SWAMP STORIES

GOLD::$1624.80  UP $67.00

 

 

 

Silver:$14.11//UP $1.00  (COMEX TO COMEX CLOSING)

Closing access prices:

 

 

 

Gold : $1634.00

 

SILVER:  $14.30

 

Today, the gold market was totally broken as future prices were over 100 dollars higher than spot as the banksters were desperate to keep the spot price down.  London has ceased to deliver any physical gold as well as the Swiss refiners.

 

The correct price for physical gold today is spot plus 200.00 dollars

 

for silver: 26.00 dollars per oz

 

 

COMEX DATA

 

 

 

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

today RECEIVING: 0/21

EXCHANGE: COMEX
CONTRACT: MARCH 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,567.000000000 USD
INTENT DATE: 03/23/2020 DELIVERY DATE: 03/25/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
435 H SCOTIA CAPITAL 2
657 C MORGAN STANLEY 5
737 C ADVANTAGE 11 4
905 C ADM 5 15
____________________________________________________________________________________________

TOTAL: 21 21
MONTH TO DATE: 2,147

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 21 NOTICE(S) FOR 2100 OZ (0.0653 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  2147 NOTICES FOR 214700 OZ  (6.67807 TONNES)

 

 

 

 

SILVER

 

FOR MARCH

 

 

59 NOTICE(S) FILED TODAY FOR 295,000  OZ/

total number of notices filed so far this month: 4276 for 21,380,000 oz

 

BITCOIN MORNING QUOTE  $6676 UP $180 

 

BITCOIN AFTERNOON QUOTE.: $6761 UP 283

GLD AND SLV INVENTORIES:

WITH GOLD UP $67.00: WITH NO PHYSICAL TO BE FOUND ANYWHERE: WE HAD A HUGE CHANGE IN GOLD INVENTORY AT THE GLD

 

A PAPER DEPOSIT OF  15.80 TONNES

THIS PROVES THAT THE GLD IS A FRAUD..THERE IS NO REAL GOLD INSIDE THIS FACILITY!!

 

GLD: 923.99 TONNES OF GOLD//

 

 

WITH SILVER UP 100 CENTS TODAY:  no silver deposit at all!!???

 

 

 

RESTING SLV INVENTORY TONIGHT:

SLV: 375.779  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A CONSIDERABLE SIZED 1148 CONTRACTS FROM 157,918 DOWN TO 156,770 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020.  THE LOSS IN OI OCCURRED DESPITE OUR HUGE 71 CENT GAIN 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 1409 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 A HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

; MARCH:  00 AND MAY: 2257 AND JULY: 300 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2557 CONTRACTS. WITH THE TRANSFER OF 2557 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 2557 EFP CONTRACTS TRANSLATES INTO 8.960 MILLION OZ  ACCOMPANYING:

1.THE 71 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

21.705  MILLION OZ INITIALLY STANDING FOR MAR

 

MONDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 71 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 1409 CONTRACTS OR 8.940 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:

76,804 CONTRACTS (FOR 17 TRADING DAYS TOTAL 76,804 CONTRACTS) OR 384.020 MILLION OZ: (AVERAGE PER DAY: 4517 CONTRACTS OR 22.58 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR: 384.020 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 54.86% 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:          825.23 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…..          384.020 MILLION OZ (17 TRADING DAYS AND ALREADY HUGELY SURPASSES FEB AND JAN MONTHLY TOTALS)

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1148, DESPITE THE $0.71 GAIN IN SILVER PRICING AT THE COMEX /MONDAY… THE CME NOTIFIED US THAT WE HAD A HUMONGOUS SIZED EFP ISSUANCE OF 2557 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG :  1409 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (WITH THE 71 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 2559 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 1,148 OI COMEX CONTRACTS.AND ALL OF THIS DEMAND HAPPENED WITH A  71 CENT GAIN IN PRICE OF SILVER/ AND A CLOSING PRICE OF $13.11 // MONDAY’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. 0.7835 BILLION OZ TO BE EXACT or 112% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: 59 NOTICE(S) FOR  295,000 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 ROSE BY A CONSIDERABLE  8167 CONTRACTS TO 561,227 AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE  GAIN OF COMEX OI OCCURRED WITH OUR HUGE RISE IN PRICE OF $76.00 /// COMEX GOLD TRADING// MONDAY// 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 HUMONGOUS RISE IN PRICE ON THE TWO EXCHANGES , WE GAINED A HUGE 18,011 CONTRACTS  (56.02 TONNES)

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS AND CRIMINALLY SIZED 9,844 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 9244. MAY: 0, AND JUNE. 600 AND ALL OTHER MONTHS ZERO//TOTAL: 13,339.  The NEW COMEX OI for the gold complex rests at 561,227. 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 18,011 CONTRACTS: 8167 CONTRACTS INCREASED AT THE COMEX AND 9,844 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 18,011 CONTRACTS OR 56.02 TONNES. MONDAY, WE HAD A HUMONGOUS GAIN $76.00 IN GOLD TRADING…...

AND WITH THAT STRONG GAIN IN  PRICE, SURPRISINGLY WE STILL HAD A HUMONGOUS SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 56.02  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 (GAIN $76.00). AND IT SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WERE UNSUCCESSFUL AS WE HAD A HUMONGOUS GAIN IN OUR TWO EXCHANGES:

SEE BELOW:

 WE HAD  A HUMONGOUS INCREASE IN EXCHANGE FOR PHYSICALS  (9844) ACCOMPANYING THE  STRONG GAIN IN COMEX OI.(8,167 OI):  TOTAL GAIN IN THE TWO EXCHANGES:  18,011 CONTRACTS.  WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)STRONG INCREASE IN GOLD OZ STANDING AT THE COMEX, AND 3) NO LONG LIQUIDATION…..COUPLED WITH THAT HUMONGOUS GAIN 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 : 300,717 CONTRACTS OR 30,071,700 oz OR 935.35* TONNES (17 TRADING DAYS AND THUS AVERAGING: 17,689 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 17 TRADING DAY(S) IN  TONNES: 935.35 TONNES

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

THUS EFP TRANSFERS REPRESENTS 935.35/3550 x 100% TONNES =26.34% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS EXPLODED THIS MONTH.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   2159.32  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE SO FAR   935.35  TONNES  (//(*17 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 FAIR SIZED 1148 CONTRACTS FROM 157,918 DOWN TO 156,770 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 2557

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: 2257; JULY: 300 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2557 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 1148 CONTRACTS TO THE 2557 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A VERY STRONG GAIN OF 1409 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES  7.045 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 FAIR SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 71 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD AN ATMOSPHERIC SIZED 2557 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON. THE ENTIRE LOSS OF COMEX OI WAS DUE TO SPREADER LIQUIDATION AND THAT HUGE ISSUANCE OF EX. FOR PHYSICALS.

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

 

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 62.27 POINTS OR 2.34%  //Hang Sang CLOSED UP 967.36 POINTS OR 4.46%   /The Nikkei closed UP 1,204.57 POINTS OR 7.13%//Australia’s all ordinaires CLOSED UP 4.15%

/Chinese yuan (ONSHORE) closed UP  at 7.0596 /Oil UP TO 24.66 dollars per barrel for WTI and 28.15 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0596 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0763 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

 

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

iv) Swamp commentaries)

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

LET US BEGIN:

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A VERY STRONG 8,167 CONTRACTS TO 563,451 MOVING CLOSER TO OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS STRONG GAIN IN OI WAS SET WITH A HUMONGOUS GAIN OF $76.00 IN GOLD PRICING //MONDAY’COMEX TRADING//). HOWEVER WE ALSO HAD AN ATMOSPHERIC EFP ISSUANCE (9,844 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2) ZERO LONG LIQUIDATION ……AS OUR TWO EXCHANGES ROSE STRONGLY IN TOTAL OPEN INTEREST..WITH OUR HUMONGOUS GAIN  IN PRICE….  BASICALLY LONGS JUST TRANSFERRED OVER TO LONDON COUPLED WITH CONSIDERABLE BANKER SHORT COVERING AT THE COMEX

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF MARCH..  THE CME REPORTS THAT THE BANKERS ISSUED AN ATMOSPHERIC SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 9844 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 9244, MAY: 0  JUNE : 600 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 9844 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:  18,011 TOTAL CONTRACTS IN THAT 9844 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 8,167 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.

 

 

 

THE BANKERS WERE  UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE BY $76.00). THEY WERE MOST DEFINITELY  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES 56.02 TONNES WAS MAINLY DUE TO BANKER SHORT COVERING AND ISSUANCE OF EXCHANGE FOR PHYSICAL ISSUANCE. 

 

 

NET GAIN ON THE TWO EXCHANGES ::  18,011 CONTRACTS OR 1,801,100 OZ OR 56.02 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:  561,227 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 56.12 MILLION OZ/32,150 OZ PER TONNE =  1746 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1746/2200 OR 79.34% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 569,401 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY479,288 contracts//

MARCH 24

 

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
11,381.10 oz
Loomis
Scotia
Deposits to the Dealer Inventory in oz n il oz

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

5787.180 oz

Delaware

 

 

No of oz served (contracts) today
21 notice(s)
 2100  OZ
(0.0653 TONNES)
No of oz to be served (notices)
10 contracts
( 1000 oz)
0.0311 TONNES
Total monthly oz gold served (contracts) so far this month
2147 notices
214700 OZ
6.67807 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 2 kilobar entries

 

i ) We had 0 deposits into the dealer

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

we had 1 deposit into the customer account

i) Into JPMorgan: 0  oz

 

ii) Into . Delaware;:   5787.180 oz

 

 

 

 

 

 

 

total deposits: 5787.180  oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of Loomis  11,52.500 oz  350 kilobars

 

ii) Out of  Scotia:  128.600 oz 4 kilobars

and both of these withdrawals are phony entries

 

total gold withdrawals;  11,381.10   oz

 

ADJUSTMENTS: 

nil

 

The front month of MARCH saw its open interest register 31 contracts for a LOSS of 230 contracts.. We had 260 notices filed on MONDAY so we gained 30 contracts or an additional 3000 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 9452 contracts DOWN to 195,604 contracts

May saw its ANOTHER GAIN of 233 contracts to stand at 862.

June saw a GAIN of 16,186 contracts up to 244,734

 

 

We had 21 notices filed today for 2100 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 21 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 (2147) x 100 oz , to which we add the difference between the open interest for the front month of  MAR. (31 CONTRACTS ) minus the number of notices served upon today (21 x 100 oz per contract) equals 215,700 OZ OR 6.7091 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 (2147)x 100 oz)  + (31 OI for the front month minus the number of notices served upon today (21 x 100 oz )which equals 212,700 oz standing OR 6.7091 TONNES in this active delivery month which is  a great amount for gold standing for a MAR. delivery month.

We gained 30 contracts or 3000 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 38.337 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………………………………………………………..              6.7091 TONNES

 

total: 162.624 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: 162.624  tonnes

 

Thus:

162.624 tonnes of delivery –

25.88 TONNES DEEMED SETTLEMENT

 

=136.744 TONNES STANDING FOR METAL AGAINST 38.557 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,795.846.235 oz or  55.858 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:1,239,620.3  (38.557 tonnes)
true registered gold  (total registered – pledged tonnes  1,239,620.3  (38.557 tonnes)

total registered, pledged  and eligible (customer) gold;   8,734,431.582 oz 271.65 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

end

 

And now for the wild silver comex results

Total COMEX silver OI FELL BY A FAIR SIZED 1148 CONTRACTS FROM 159,682 DOWN TO 156,770 (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 DESPITE OUR 71 CENT INCREASE IN PRICING/MONDAY.  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 124 CONTRACTS  WITH A LOSS OF 63 CONTRACTS. WE HAD 55 CONTRACTS ISSUED MONDAY SO WE LOST 8 CONTRACTS OR 40,000 ADDITIONAL OZ WILL NOT STAND FOR DELIVERY AS THEY  MORPHED INTO LONDON BASED FORWARD CONTRACTS AS WELL AS ACCEPTING 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 GAIN OF 219 CONTRACTS UP TO 647 CONTRACTS. THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 291 UP TO 97,390

 

 

We, today, had  59 notice(s)  for 295,000, OZ for the MAR, 2019 COMEX contract for silver

MARCH 24/2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,241,114.320 oz
CNT
HSBC

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,7,83,075.640 oz
CNT
Scotia
No of oz served today (contracts)
59
CONTRACT(S)
(295,000 OZ)
No of oz to be served (notices)
65 contracts
 325,000 oz)
Total monthly oz silver served (contracts)  4276 contracts

21,380,000, 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  2 deposits into the customer account

into JPMorgan:   0

ii)into Scotia: 585,186.890 oz

iii)  Into CNT: 1197,888.750 oz

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 50.11% of all official comex silver. (160.819 million/320/913 million

total customer deposits today: 556,207.600   oz

we had 3 withdrawals:

 

ii) Out of HSBC 332,493.510

iii) Out of CNT:  314,372.470

 

 

ii) Out of Scotia:  600,153.940  oz

 

 

 

 

 

 

total withdrawals;1,241.114.320  oz

We had 2 adjustments:

i) Out of Delaware:  15,440.652 oz was adjusted out of the dealer and this landed into the customer of Delaware

ii) Out of Scotia: 4999.180 oz was adjusted out of the customer and this landed into the dealer of Scotia

total dealer silver:  82.655 million

total dealer + customer silver:  320.913 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the MAR 2020. contract month is represented by 59 contract(s) FOR 295,000 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 4276 x 5,000 oz = 21,380,000 oz to which we add the difference between the open interest for the front month of MAR.( 124) and the number of notices served upon today 59 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 4276 (notices served so far) x 5000 oz + OI for front month of MAR (124)- number of notices served upon today (59) x 5000 oz equals 21,705,000 oz of silver standing for the MAR contract month.

WE LOST 8 CONTRACTS OR 40,000 OZ WILL NOT STAND FOR DELIVERY ON THIS SIDE OF THE POND

 

 

 

 

 

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

 

TODAY’S ESTIMATED SILVER VOLUME: 115,224 CONTRACTS //

 

 

 

CONFIRMED VOLUME FOR YESTERDAY:86,713 CONTRACTS..,

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 86,713 CONTRACTS EQUATES to 433 million  OZ  61.9% 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 FALLS TO -.79% ((MARCH 24/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.23% to NAV:   MAR 20/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.79%

(courtesy Sprott/GATA

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

NAV 14.87 TRADING 14.63///DISCOUNT 1.61

END

 

And now the Gold inventory at the GLD/

MARCH 24//WITH GOLD UP $67.00 TODAY: A HUGE  CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 15.80 TONNES OF GOLD INTO GLD////INVENTORY RESTS AT 923.99 TONNES..THIS PROVES THAT THE GLD IS A FRAUD AS LONDON SUSPENDED DELIVERY AS WELL AS ALL REFINERS.  THEY HAD NO WAY OF GETTING ANY PHYSICAL OZ INTO ITS INVENTORY//

MARCH 23//WITH GOLD UP $76.00 TODAY: A  HUGE PAPER WITHDRAWAL OF 21.50 TONNES FROM THE GLD////INVENTORY RESTS AT 908.19 TONNES

MARCH 20//WITH GOLD UP $5.50//A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 7.46 TONNES FROM THE GLD////INVENTORY RESTS AT 922.23 TONNES

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 24/2020/Inventory rests tonight at 923.99 tonnes

*IN LAST 785 TRADING DAYS: -20.70 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 685 TRADING DAYS;+ 145.43. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 24//WITH SILVER UP 100 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 375.779 MILLION OZ///

MARCH 23//WITH SILVER UP 70 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 2.332 MILLION OZ OF SILVER INTO THE SLV////INVENTORY RESTS AT 375.779 MILLION OZ

MARCH 20//WITH SILVER UP 39 CENTS TODAY: 2 HUGE CHANGES IN SILVER INVENTORY AT THE SLV; A PAPER WITHDRAWAL OF 1.026 MILLION OZ FROM THE SLV AND THEN A PAPER ADDITION OF 3.638 MILLION OZ INTO THE SLV.////INVENTORY RESTS AT 373.447 MILLION OZ//

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 23.2020:

SLV INVENTORY RESTS TONIGHT AT  375.779 MILLION OZ.

 

END

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.57/ and libor 6 month duration  0.97

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

G0LD LENDING RATE: – .60  (NO PHYSICAL GOLD AT ALL IN LONDON)

 

XXXXXXXX

12 Month MM GOFO
+ 1.18%

LIBOR FOR 12 MONTH DURATION: 0.94

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.24  ( PHYSICAL GOLD NOT AVAILABLE)

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

It’s not just toilet paper — dealers can’t find enough gold either

 Section: 

Gold Bars in Short Supply Due to Coronavirus Disruption

By Henry Sanderson
Financial Times, London
Monday, March 23, 2020

https://www.ft.com/content/81d915e2-6cef-11ea-89df-41bea055720b

Traders have reported a growing global shortage of gold bars as the coronavirus outbreak both disrupts supply and stokes demand, with one business comparing the frenzied buying of the yellow metal with the consumer rush for toilet roll.

Retail investors in Europe and the U.S. have bought up gold and silver bars and coins over the past two weeks in an effort to protect their money from the collapse in global stock prices and many currencies.

… 

But Europe’s largest gold refineries have struggled to keep up because of the region’s widening shutdown. Valcambi, Pamp, and Argor-Heraeus are all based in the Swiss town of Ticino, near the border with Italy. Local authorities announced in recent days that production in the area was to be temporarily halted.

Retailers have already reported shortages and delays of up to 15 days on shipments as demand has surged. Markus Krall, chief executive of German precious metals retailer Degussa, said it was struggling to meet customer appetite for gold bars and coins and had to turn to the wholesale markets. Demand is running at up to five times the normal daily amount, he said.

“We are being creative to find new sources but what is driving it all are the measures by authorities to stop coronavirus. This is so unpredictable,” Mr Krall added.

Rob Halliday-Stein, founder and managing director of Birmingham-based BullionbyPost, said the situation was unprecedented. “Basically we’re selling as soon as we get stock on location in secure vaults — but we’re restricted to what we can get hold of. It’s a bit like toilet roll.”

While London’s gold vaults are full of gold bars, they are of the 400-ounce variety traded by large banks such as HSBC and JPMorgan, not the smaller bars that retail customers buy, which tend to be 1 kilogram (35 ounces) or lighter.

“I don’t think you will find a kilobar presently in Europe and the U.S. for love nor money,” Ross Norman, a veteran gold trader, said. “It’s quite extraordinary.”

Ken Lewis, chief executive of Apmex, a U.S. precious-metals retailer, said in the past week that “product has become increasingly difficult to source as the market becomes more volatile day by day.”

The company said it had purchased more than 1 million ounces of silver grain and bars, more than 20,000 American Gold Eagle coins, thousands of gold bars, and “anything else we can find utilising our many partners and mint relationships.”

JM Bullion, another U.S.-based precious metals retailer, said customer orders would be delayed by 15 days, and the company introduced a minimum order size.

BullionStar, a Singapore-based precious metals retailer, said it is paying a premium to buy back silver and gold coins from customers in an effort to replenish supplies, according to Ronan Manly, one of its analysts. “There’s a disconnect between prices in the physical gold market and the prices you see on your screen,” he said.

end

Michael Hudson: A debt jubilee is the only way to avoid a depression

 Section: 

By Michael Hudson
Washington Post
Saturday, March 21, 2020

Even before the novel coronavirus appeared, many American families were falling behind on student loans, auto loans, credit cards, and other payments. America’s debt overhead was pricing its labor and industry out of world markets. A debt crisis was inevitable eventually, but covid-19 has made it immediate.

Massive social distancing, with its accompanying job losses, stock dives, and huge bailouts to corporations, raises the threat of a depression. But it doesn’t have to be this way.

… 

History offers us another alternative in such situations: a debt jubilee. This slate-cleaning, balance-restoring step recognizes the fundamental truth that when debts grow too large to be paid without reducing debtors to poverty, the way to hold society together and restore balance is simply to cancel the bad debts

… For the remainder of the commentary:

https://www.washingtonpost.com/opinions/2020/03/21/debt-jubilee-is-only-…

end

Physical silver supply squeeze to get worse, First Majestic’s Keith Neumeyer warns

 Section: 

11:06p ET Monday, March 23, 2020

Dear Friend of GATA and Gold:

First Majestic Silver CEO Keith Neumeyer today tells Daniela Cambone of Kitco News that “the paper markets are completely a fallacy” and First Majestic is withholding sales of its metal in anticipation of higher prices. “It’s a very tight market,” Neumeyer adds, “and now you can’t buy any metal at all.”

The interview is 18 minutes long and can be viewed at Kitco News here:

https://www.kitco.com/news/2020-03-23/Physical-silver-supply-squeeze-abo…

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

end

Pam and Russ Martens: The fear chart that Wall Street’s smart money is watching

 Section: 

By Pam and Russ Martens
Wall Street on Parade
Tuesday, March 24, 2020

The chart that tells you how all today’s economic troubles are going to end —

https://wallstreetonparade.com/2020/03/this-is-the-fear-chart-that-the-s…

— is not the bar graph of new deaths from coronavirus in Italy versus deaths in the U.S. It’s the chart that shows the number of potential deaths among the banks and insurance companies that have gorged themselves on risky derivatives and serve as counterparties to each other in a daisy chain of financial contagion.

… 

The chart above is why the Federal Reserve is throwing unprecedented sums of money in all directions on Wall Street. Because despite being a primary regulator to these massive bank holding companies, the Fed has no idea who is actually in trouble on derivative trades, other than looking at a chart like the one above.

The chart above also justifies the Democrats’ refusing to sign off on the fiscal stimulus legislation that would have given U.S. Treasury Secretary Steve Mnuchin a $500 billion slush fund where the names of the recipients of bailouts could be withheld from the public. …

… For the remainder of the analysis:

https://wallstreetonparade.com/2020/03/this-is-the-fear-chart-that-the-s…

* * *

iii) Other physical stories:

A must read…

the gold market broke down this morning as spreads exploded..they just do not have any physical to supply into the market to cover those massive shorts.

They will go down..

rumours have it that both the BIS and UBS will default on their non gold holdings

(zerohedge)

“The Gold Market Is Breaking Down”: Gold Spreads Explode As LBMA Warns Of Liquidity Problems

Last night, when observing the unprecedented “gold run” on precious metals dealers which has left all gold vendors with little to no physical gold, we said that “the price of physical gold has decoupled from paper gold” as a result of paper gold liquidations as leveraged funds scramble to cover margin calls using safe assets…

… resulting in an arbitrage that physical gold buyers, i.e., those who don’t have faith in gold ETFs such as the GDX or simply prefer to have possession of the metal, find especially delightful as it allows them to buy physical gold at lower prices than they would ordinarily have access to.

However, we also noted that whereas in the past such conditions were self-correcting, this time it is not only a record surge in demand for physical gold but also a near shut down in supply as the most productive gold refiners, those located in the southern Swiss town of Ticina, namely Va

lcambi, Pamp and Argor-Heraeus, now appear to be offline indefinitely.

The result is that the spot/futures price divergence discussed last night and further described here,  has exploded…

… and on Tuesday morning the divergence that was barely noticeable late Monday has blown out to unprecedented level, with gold futures decoupling and trading far above spot prices.

The near record spread is the widest seen in four years.

As Kitko notes, just before noon EDT, one price vendor was showing spot metal was trading at $1,612.10 an ounce while at the same time showing the Comex April futures were at $1,654.10 an ounce – a spread of $42 an ounce. It was much wider earlier in the day, when as Kitco adds, “nearby futures were more expensive than deferred, a sign of strong demand in any commodity market.”

“I’ve never seen that before,” said one gold trader who has been in the market for 30-plus years. Some contacts reached by Kitco suggested the discrepancy is an evolving story that is still unfolding, with traders trying to figure out what’s happening.

Earlier in the day, the London Bullion Market Association, the world’s most important authority for physical gold and its transfers, issued this stunning statement to Kitco:

The London gold market continues to be open for business. There has, however, been some impact on liquidity arising from price volatility in Comex 100-oz [ounce] futures contracts. LBMA has offered its support to CME Group to facilitate physical delivery in New York and is working closely with Comex and other key stakeholders to ensure the efficient running of the global gold market.”

In short, the unprecedented scramble for physical metal coupled with continued liquidations among levered players, while refiners remains offline, appears to be fracturing the gold market from within.

Saxo Bank’s head of commodity strategy, Ole Hansen, observed that a lockdown is occurring in two biggest gold hubs in the world, New York and London,  so many traders are working from home. “This has caused a breakdown in the marketplace”, he said.

“There is no price discovery in the market right now,” he said Tuesday morning. “If you need to borrow gold in the OTC [over-the-counter] markets right now, you are going to pay a king’s ransom.”

Picking up on what we said last night, Hansen described the problem as a logistics issue as the coronavirus has decimated supply chains across the world, adding that the gold market has dried up because nobody has access to physical metal.

“We don’t have enough hands to handle all the demand,” he said. “There is plenty of gold in the market, but it’s not in the right places. Nobody can deliver the gold because we are forced to stay home.”

Or, as we put it yesterday, “If You Haven’t Bought Physical Gold Yet, It’s Probably Too Late.”

Speaking to Kitco, Rhona O’Connell, head of market analysis for EMEA and Asia regions at INTL FCStone, said that dislocation in the gold market is the result of nervous trading in an increasingly thin marketplace. Not only is physical demand picking in London up, but three major Swiss refiners are shutting down operations, which is putting a further squeeze on supply.

“I think the price action we have seen is as simple as people guarding their risks,” she said.

O’Connell added that the price difference between North American markets and London markets is also the result of the U.K. market being more of a physical gold market.

“The balance between physical and futures is more geared towards the [over-the-counter] markets in London,” she said.

Speaking to several other traders, Kitco cites Afshin Nabavi, head of trading with MKS, who pointed out that traders from many banks are working from home due to the coronavirus pandemic. Meanwhile, these participants may be trying to limit risk, contributing to the spreads.

Phil Flynn, senior market analyst with at Price Futures Group, suggested some of the reasons for higher futures prices may be because the market is anticipating future demand as a result of all of the quantitative-easing measures and expectations for fiscal stimulus.

“Futures prices may be a leading indicator of what may be a rush into gold,” Flynn said.

* * *

Separately, traders also pointed out that gold futures were in backwardation this morning, with April futures more expensive than the June and December contracts this morning, although that has since reversed with the back months higher again. When nearby are more expensive, the condition is known as backwardation and is the opposite of normal conditions in any commodity market.

During regular times, later months are more expensive due to extra costs such as storage. But when the nearby months are more expensive, this is seen as a sign that traders are paying a premium to get the commodity as soon as possible.

Which anyone who has been to APMEX or any other gold seller in the past few days, has discovered:

Backwardation shows “there is a lot of demand” with market participants worried about the economy and focusing on the response by governments and central bankers, Flynn said. “People are buying gold like it’s going out of style,” he added.

Or, as we first put it, “It’s Selling Like Toilet Paper“, which is ironic because thanks to the Fed, Americans are fleeing the toilet paper money known as the dollar, and rushing into real money… as well as actual toilet paper.

end
A super email to me:

Kevin Wallien

3:44 PM (14 minutes ago)

to me

This is worth passing on to get an educated opinion.

The biggest off all elephants in the room.

Would it be possible that the brokerage houses whose customers own mining shares in street name have lent those securities to Gold Mining ETFs?

Hell every single book entry equity or bond held by the retail investor could be lent out to an ETF and neither the DTCC or the retail client would know any better.

We know this happens with unallocated physical gold why not book entry shares whose certificates are in the name of the broker not the retail client.

Could explain a lot of the synthetic short in dollar too as so many of even these assets are lent out and not hedged.

Kevin Wallien

end
Another Email to Bill Murphy and Chris Powell and I can confirm!

Dear Bill and Chris,
We have now heard from two bullion wholesalers that the London market has suspended delivery of physical gold. That would do it.
Patrick A. Heller

And Peter Spina of GoldSeek…

BREAKING: SPOT GOLD PRICE MARKETS ARE BROKEN GLOBALLY

Posted March 24, 2020 08:34 by goldseek

BREAKING:

PHYSICAL GOLD SPOT MARKETS ARE NOT FUNCTIONING PROPERLY AND THE SPOT GOLD PRICE QUOTE IS IN A HISTORIC BREAKDOWN THIS MORNING. GOLD PRICES ARE NOW VARYING IN PRICE QUOTATIONS DEPENDING ON YOUR LOCATION — IF YOU ARE ABLE TO SOURCE SUPPLIES. GOLD SUPPLIES ARE VERY THIN AND ARBITRAGE ABILITIES ARE NEARLY IMPOSSIBLE WITH A GLOBAL BREAKDOWN IN TRANSPORT.

-END-

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 TUESDAY 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: 7.0596/ GETTING VERY DANGEROUSLY PAST  7:1

//OFFSHORE YUAN:  7.0763   /shanghai bourse CLOSED UP 62.27 POINTS OR 2.34%

HANG SANG CLOSED UP 967.36 POINTS OR 4.46%

 

2. Nikkei closed UP 967.36 POINTS OR 4.46%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 101.08 /Euro RISE TO 1.0884

3b Japan 10 year bond yield: FALLS TO. +.04/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.47/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 24.66 and Brent: 28.15

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

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 FALLS TO -.36%/Italian 10 yr bond yield DOWN to 1.54% /SPAIN 10 YR BOND YIELD UP TO 0.81%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.00: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.43

3k Gold at $1605.50 silver at: 16.15   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 90/100 in roubles/dollar) 78.69

3m oil into the 22 dollar handle for WTI and 28 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 110.47 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 .9754 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0576 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.36%

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 .81% early this morning. Thirty year rate at 1.40%

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

6.  TURKISH LIRA:  UP  TO 6.4758..

S&P Futures Soar Limit Up As Dollar Tumbles, Gold Soars

With the market losing all gains since the Trump election on Monday, on Tuesday – assuming this rally holds – we may again see Dow 20,000 again… for the first time since the start of 2017.

One day after futures hit limit down to start the Monday session, when traders freaked out after Senate failed to pass the virus bailout bill, something it also failed to do on Tuesday, S&P futures have soared on Tuesday in a global relief rally following a delayed reaction from the Fed’s unlimited QE, and rising limit up to 2,333.5.

Boeing rose nearly 9% and was the top gainer among Dow components. Meanwhile, a surge in oil prices lifted energy stocks, with oil majors Exxon Mobil Corp and Chevron rising more than 7%. Big U.S. banks including Goldman Sachs, JPMorgan and Citigroup rose about 6%, tracking a modest increase in the 10-year Treasury yield.

If the overnight carries through to the cash index when it reopens at 930am, it will be the third week running that the S&P 500 has rebounded following a Monday drop.

Four main reasons were cited for Tuesday’s move higher:

  1. Comfort in the Fed unleashing a tsunami of monetary easing which included unlimited QE and corporate bond purchases
  2. A return of liquidity to the funding market, which sent the dollar plunging the most in three years following a 10-day winning streak.
  3. Hope that the Senate will finally pass a deal today as late on Monday night, Politico reported that Treasury Sec. Steven Mnuchin has agreed to “significant oversight” of $500b exchange stabilization fund in proposed coronavirus rescue package
  4. Renewed focus on the slowdown in new coronavirus cases in Italy, where as we reported yesetrday for the 2nd day both new cases and new deaths have declined in Italy and the Lombardy region.

Here is where today’s circuit breaker levels stand during US trading hours

  • Futures have no limit up

Limit Down (M0 Futures)

  • Level 1: 7% fall to 2065.50
  • Level 2: 13% drop to 1931.50
  • Level 3: 20% decline to 1775.00

Europe followed along with the Stoxx Europe 600 Index also soaring, led by insurers and energy companies, even as the latest catastrophic PMI data showed that Europe is now officially in a recession as both manufacturing and service components crash, as a result of the coronavirus pandemic.

Benchmarks in Tokyo, Hong Kong and Sydney all climbed at least 3% while Korean shares soared almost 9% as the government announced measures to stabilize financial markets. Asian markets surged, led by IT and energy, after falling in the last session. Most markets in the region were up, with South Korea’s Kospi Index gaining 8.6% and Singapore’s Straits Times Index rising 5.2%, while Jakarta Composite dropped 1.2%. Japan’s Topix gained 3.2%, with Raccoon Holdings and CKD rising the most, as the BOJ continues to buy record amount of equity ETFs.

The Shanghai Composite Index rose 2.3%, with Eastern Gold Jade and Hefei Metalforming Intelligent Manufacturing posting the biggest advances.

Emerging-market stocks jumped alongside their currencies.

Perhaps the biggest driver for the move was the plunge in the dollar which slumped against developed and emerging currencies for the first time in 11 days amid growing expectations for the U.S. lawmakers to agree on an economic stimulus package…

… in a clear sign the Fed’s tsunami of liquidity has succeeded in reduced stress after the greenback’s steepest appreciation since the global financial crisis and longest winning streak since 2012.

Tuesday’s gain in risk assets follows an unprecedented move by the Federal Reserve to backstop large swaths of the U.S. financial system. Actions on the fiscal side remain pending, with Congress so far unable to agree a compromise spending deal.

“The Fed pulling out all the stops by removing the quantitative cap on QE is a start to a weaker USD and firmer currencies elsewhere,” said Vishnu Varathan, Mizuho’s head of economics and strategy. “Improved risk appetite due to the Fed as well as hopes of the U.S. fiscal stimulus coming together add to the lift in the markets.”

“Sentiment has improved, but to call it a turning point is too strong a word for now,” said James McCormick, global head of desk strategy at NatWest Markets. “It is more of a tug-of-war. Policy bazooka is in place, but will be fighting against very weak data and still worrying trends on Covid-19 data. We are more neutral on risk assets now.”

Treasuries were mixed, with European bonds tracking US paper modestly lower.

In commodities a relief rally swept across the energy complex as prices piggy-back on the overall current market sentiment, with WTI and Brent front-month futures both posting gains in excess of 5%, with the former inching closer to USD 25/bbl and the latter gaining ground north of USD 28/bbl.

Spot gold soared yesterday the most since the financial crisis following the Fed QEternity announcement and the yellow metal continues on its upwards trajectory as USD eases and liquidity concerns fade. The metal extended its gains above USD 1550/oz, having briefly topped its 21DMA (USD 1591.46/oz) to print a current peak above 1600/oz.

Market Snapshot

  • S&P 500 futures up 4.7% to 2,323.25
  • MXAP up 4.8% to 127.37
  • MXAPJ up 5.1% to 406.77
  • Stoxx Europe 600 up 3.3% to 289.70
  • German 10Y yield unchanged at -0.374%
  • Euro up 1.1% to $1.0841
  • Brent Futures up 1.9% to $27.55/bbl
  • Italian 10Y yield fell 5.0 bps to 1.409%
  • Spanish 10Y yield rose 0.2 bps to 0.761%
  • Nikkei up 7.1% to 18,092.35
  • Topix up 3.2% to 1,333.10
  • Hang Seng Index up 4.5% to 22,663.49
  • Shanghai Composite up 2.3% to 2,722.44
  • Sensex up 4% to 27,021.98
  • Australia S&P/ASX 200 up 4.2% to 4,735.66
  • Kospi up 8.6% to 1,609.97
  • Brent Futures up 4.6% to $28.29/bbl
  • Gold spot up 1.8% to $1,581.13
  • U.S. Dollar Index down 0.8% to 101.63

Top Overnight News

  • China’s Hubei province said it will allow transportation to resume for the city of Wuhan on April 8, effectively lifting a mass quarantine over the city where the coronavirus first emerged in December
  • U.K. Prime Minister Boris Johnson’s government has allocated a total of almost 57 billion pounds ($66 billion) in direct support since the Budget on March 11, according to Treasury estimates and calculations by Bloomberg Economics. That’s more fiscal stimulus than during the global financial crisis
  • Chancellor Angela Merkel’s government is evaluating a stimulus program to help revive the German economy after the coronavirus crisis subsides, according to a person close to the discussions
  • Japan’s Government Pension Investment Fund will raise its investment allocation for foreign bonds by 10ppts to 25% as it seeks to boost returns amid Japan’s negative interest rates, Nikkei reports, without attribution
  • Continental Europe’s labor-market model is experiencing rare praise from economists because it may help prevent massive job losses during the coronavirus pandemic
  • With rates near zero already, increasing the speed of the Bank of England’s new 200 billion pounds ($231 billion) of bond purchases is one lever policy makers could pull if they want to boost the impact of the current package of measures, without following the Federal Reserve in moving to unlimited buying
  • The first signs that India’s $790 billion sovereign bond market is cracking under the strain of the coronavirus pandemic showed up on Tuesday. For half an hour after trading started, nobody bought or sold a bond on the Reserve Bank of India’s platform

Asian equity markets were higher across the board as the region received much-needed reprieve from the recent sell-off and reacted to the Fed’s announcement for open-ended Treasury and MBS purchases, despite Wall St failing to sustain the gains amid the ongoing stalemate at the Senate on the coronavirus relief bill. Nonetheless, US equity futures have performed better after-hours with the Emini S&P and DJIA back above the 3k and 19k levels respectively following recent comments by President Trump who suggested that America will be open for business sooner than 3-4 months and as negotiators were said to be near a deal on the coronavirus stimulus bill. ASX 200 (+4.2%) and Nikkei 225 (+7.1%) rallied from the open with Australia led higher by gold miners after the precious metal surged above USD 1500/oz in the wake of the Fed’s QE bazooka, while SoftBank shares extended on the prior day’s outperformance and posted its largest intraday gain of more than 21% amid plans to offload USD 14bln of Alibaba shares. Elsewhere, Hang Seng (+4.5%) and Shanghai Comp. (+2.3%) joined in on the broad rebound with Hong Kong outperforming the mainland as participants also digested earnings releases which was the main catalyst for the biggest moving stocks. Finally, 10yr JGBs are higher and attempted to reclaim the 152.00 level after the bull flattening seen in USTs in the aftermath of the Fed’s asset purchase announcement, while the enhanced liquidity auction for 2-20yr JGBs also attracted greater demand.

Top Asian News

  • China’s Wuhan to Lift Lockdown Measures April 8
  • Infosys Rises After SEC Ends Probe of Whistle-Blower Claims
  • Chinese Beauty Mask Maker Said to Weigh Options Including Sale
  • Hong Kong Expats Point Fingers Over Who’s Spreading Coronavirus

European stocks mimic the stellar performance seen in APAC as stocks feel some reprieve from the global market rout. Participants point to the barrage of global fiscal and monetary efforts in response to the virus outbreak as the catalyst for the gains in the equity complex, although it is too soon to say we are out of the woods. US equity futures overnight extended on gains but stopped short of hitting their respective limit ups at the time, although ES June futures managed to reach the 5% limit to the upside in early European trade. Back to Europe, cash markets are posting broad-based gains, back around its intrday best levels (Euro Stoxx 50 +5.9%) with no clear standout performers. Sectors are higher across the board with some mild underperformance seen in defensives vs. cyclicals – reflecting a “risk-on” mood, whilst the energy sector leads the gains amid the rebound in the oil complex.  Zooming in on the sector breakdowns, basic resources outperform whilst performance across the much-watched Travel & Leisure sector remains somewhat muted as opposed to significant rebound. Individual movers are largely driven by the macro themes – BHP (+11.4%), BP (+13.1%) Shell (+11.8%) are amongst the large-cap movers to the upside. On the flip side, WH Smith (-6.2%) and Marks & Spencer (-0.8%) bare the brunt of non-essential shop closures in the UK.

Top European News

  • AB InBev, Pernod Cut Outlooks as Virus Hobbles Drinks Makers
  • Norwegian Air Buys Time by Unlocking $27 Million of State Aid
  • French Economic Activity Collapses on Coronavirus Containment
  • Austrian Virus Cases Jump With Skiing Area Still the Epicenter

In FX, the Greenback has faded again amidst a broad recovery in risk sentiment and dissipating demand for liquidity as new, enhanced Fed swap lines are tapped on a daily basis and the unlimited QE backstop provides more stimulus awaiting a bumper fiscal boost from the US. As a result, the DXY has pulled back from another test of resistance around the 103.00 level to the benefit of G10 peers and other currencies that depreciated markedly when credit conditions were ultra-tight and assets were being dumped in the dash for cash. Even extremely weak preliminary PMIs have not hampered the recovery against the Buck ahead of the looming US Markit surveys, housing data and a speech from Fed’s Bullard.

  • AUD/GBP/NZD/EUR/CHF/CAD/JPY – As noted above, the receding Usd has helped rival majors nurse losses as the Aussie reclaims 0.5900+ status with an independent impetus from more RBA funding for the banking sector overnight, while Cable is back within striking distance of 1.1800 irrespective of deep sub-50 UK PMIs and Britain now in a virtual 3 week COVID-19 lockdown. Back down under, the Kiwi has rebounded from just shy of 0.5700 towards 0.5850 following NZ Government and RBNZ business finance guarantees and reduced core bank funding ratios. The Euro is hovering close to decent 1.1 bn option expiry interest at 1.0860, and again not unduly unsettled by worrying French, German and pan Eurozone PMIs even though the periphery is almost certain to lead to downgrades in the final reckoning, with the Franc pivoting 0.9750, Loonie back above 1.4400 amidst firmer crude prices and Yen straddling 110.50, but sharply lagging Gold that has breached the Usd1600/oz mark.

In commodities, a relief rally across the energy complex as prices piggy-back on the overall current market sentiment, with WTI and Brent front-month futures both posting gains in excess of 5%, with the former inching closer to USD 25/bbl and the latter gaining ground north of USD 28/bbl. That being said, fundamentals remain relatively unchanged, with the demand prospect still looking bleak amidst economic activities coming to a halt and airlines indefinitely grounding flights. Meanwhile, the supply side fares no better as Russia and Saudi still remain poised to hike production next month and with Moscow’s meeting with oil executives seemingly bearing no fruits. On that front, Energyintel understands that the Russian Energy Ministry will be convening with energy CEOs on a weekly basis, although no production curtailments were discussed at yesterday’s confab. Similarly, spot gold caught a bid yesterday following the Fed announcement and the yellow metal continues on its upwards trajectory as USD eases and liquidity concerns fade. The metal extends its gains above USD 1550/oz, having briefly topped its 21DMA (USD 1591.46/oz) to print a current peak above 1600/oz, ahead of a Fib level at 1607.19/oz. Finally, copper prices were uplifted during APAC trade on the broader risk appetite, aiding the red metal to gain a firmer footing above USD 2/lb – but supply/demand issues for the base metal haven’t subsided.

US Event Calendar

  • 9:45am: Bloomberg Consumer Comfort, prior 63
  • 9:45am: Markit US Manufacturing PMI, est. 43.5, prior 50.7; Services PMI, est. 42, prior 49.4; Composite PMI, prior 49.6
  • 10am: New Home Sales, est. 750,000, prior 764,000; New Home Sales MoM, est. -1.83%, prior 7.9%
  • 10am: Richmond Fed Manufact. Index, est. -15, prior -2

DB’s Jim Reid concludes the overnight wrap

In a parallel universe this wouldn’t be coming from me this week as I would now be on my pre-Easter skiing holiday. However it has obviously been cancelled and we’ve actually been self-isolating over the last few days as the twins have both got coughs. To be fair they have coughs 80-90% of the time anyway so we might be now in self-isolation until humans (or maybe the robots) have cured all known illnesses. We’ve used a slug of the cancelled holiday money to buy a ginormous trampoline for the garden which was supposed to arrive today but I suspect that after the lockdown last night in the U.K., trampoline delivery men will not be seen as essential. With three kids four and under to entertain and me working flat out I’d make a strong case for saying such a service is. We tried to buy a home swing and slide unit but believe it or not people have been panic buying swings given that schools are closed and they’re pretty much all out of stock. I appreciate these are first world problems but I would commit my life savings to ensure we don’t have three kids running amok in the house for the next three months.

Meanwhile markets are continuing to bounce up on the latest policy announcements and then sliding back down as the economic reality of the situation re-emerges. More on this later but a big curiosity today will be the flash PMIs from around the world. While they are unlikely to reflect the full force of the various economic shutdowns around the world to date, the likelihood is that they will show some extremely sharp slowdowns. In February China’s official and unofficial numbers came in between 25 and 40. In a short note released yesterday (link here), we looked at the relationship between PMIs and YoY equity changes seen over the last 20 years, and based on a regression of this relationship, suggested what PMI level is implied given current equity market pricing. To give a spoiler alert we are pricing in high 30s/low 40s today. We also showed where equities should trade if the numbers are 25, 30, 35 and 40.

Ahead of that, in spite of unprecedented monetary action from the Federal Reserve yesterday (details below), the distinct lack of progress on the fiscal side saw US equity markets fall to their lowest levels of the coronavirus crisis yet. With the S&P 500 down -2.93% after yesterday’s session, the index is now over a third lower than its closing peak on 19th February. The Dow Jones Industrial Average fell -3.04% yesterday and is now just over 1% away from where all of its gains since the 2016 Election Day close would be erased. In Europe STOXX 600 closed -4.30% lower after rallying with S&P futures on the news of the Fed stimulus, but then joined US equities lower. Every sector in Europe traded lower, except Oil and Gas.

So with a situation that shows no sign of turning in the short-term, the impasse on stimulus negotiations in the US saw the Senate again fail to garner enough votes Monday afternoon to get a floor vote on the nearly $2tn stimulus package. Minority leader Chuck Schumer noted at the time that while the vote failed, he was still in negotiations with Treasury Secretary Mnuchin and believed that a deal between Schumer’s caucus, the White House, and Senate Republicans would still get passed Monday night. The consensus opinion still remains that a deal will be struck this week, likely in the next couple of days, but the timeline continues to get longer which will be a negative for risk assets, no matter the monetary policy.

In the meantime details have emerged of the House’s counter proposal with a plan that totals $2.5tn. It includes initiatives that would see both retirees and the unemployed receive $1,500, as well as a $600 per week payment to all workers laid off or for self-employed who have lost business due to the coronavirus. The bill also would order the Fed to provide loan services with liquidity to allow borrowers to stop paying their mortgages for up to 360 days. The contents of the bill are more likely going to be demands that get worked into the Senate bill, or that may come as a later stimulus package. The big sticking point was that Democrats want conditions added to the funds provided to airlines and energy corporations, as well as more unemployment funds for workers as well as healthcare costs.

While Congress still couldn’t agree on the overall stimulus package, the US is now home to the largest daily increases in cases amongst the high case countries as confirmed cases passed 40,000, with 20,875 of those in NY State (vast majority of those in NYC). Italy on the other hand, has now seen a declining rate of case growth 5 days in a row and a similar flattening trajectory in announced deaths as the shutdown steps seem to be having an impact as you would expect them to. Elsewhere in Europe there aren’t huge signs at the moment of notable falls in case growth or mortality rates. You would expect this over the next 1-2 weeks as the lagged impact of lockdowns run their course. See the charts and tables in the PDF for the latest. Staying with virus-related news, it’s worth noting that China’s Hubei province has announced that lockdown rules will be lifted including transportation to resume for the city of Wuhan from April 8th.

This morning we’ve already had a few PMI releases out from Asia Pacific. Japan’s preliminary March manufacturing PMI came in at 44.8 (vs. 47.8 last month) while the services reading fell sharply to 32.7 (vs. 46.8 last month) brining the composite PMI to 35.8 (vs. 47.0 last month). Needless to say that is the lowest services reading on record. Meanwhile, Australia’s manufacturing PMI came in at 50.1 (vs. 50.2 last month) while the services PMI fell to 39.8 (vs. 49.0 last month). So, clearly some huge drops in the services readings which shouldn’t be a great surprise.

In terms of how markets are doing, futures on the S&P 500 up +3.84% while most Asian indices have also advanced. The Nikkei (+5.50%), Hang Seng (+3.81%), Shanghai Comp (+1.48%) and Kospi (+6.34%) are all up. The gains for the Kospi come after the government unveiled a $39bn equivalent package to support bond and equity markets including a bond stabilization fund to buy corporate and commercial paper. Elsewhere, the US dollar index is trading down -0.68% this morning after yesterday’s -0.32% decline. Yields on 10y USTs are up c. +3bps to 0.817% and Brent crude oil prices are up +3.03%.

In other news, President Trump said that the American economy can’t remain slowed for too long to fight the coronavirus, declaring that the country “was not built to be shut down.” He added that “America will again, and soon, be open for business. Very soon. A lot sooner than three or four months.” Earlier, the Fed’s Bullard had said that the government should consider shutting down much of the economy for three months to combat the outbreak.

Recapping yesterday, the Fed moved to unlimited QE before the market open, with the FOMC statement saying they “will continue to purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions.” The move comes on top of the already-announced $500bn in purchases of Treasury securities and $200bn of mortgage-backed securities, and the Fed also said in their statement that they’d include purchases of agency commercial mortgage-backed securities. US equity futures rallied sharply into positive territory following the news, though even the promise of unlimited QE wasn’t enough for them to sustain the advance, and once markets had opened an hour and a half later, the S&P 500 was in the red for the entire session.

In terms of the other measures the Fed announced, there were two facilities to support credit to large employers. First, there was a Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance and a Secondary Market Corporate Credit Facility (SMCCF) to provide liquidity for outstanding corporate bonds. This means that the Fed can follow other central banks in making purchases in the corporate bond market for the first time. My colleague Craig published a note on this entitled “A step in the right direction” (link here) where we basically say that this was necessary but not a panacea. The initial reaction was understandably positive with CDX IG -30bps tighter and a massive out-performance of CDX HY which widened +21bps. On a day where IG tightened that much, in normal times you may expect HY to tighten by around 100bps. The IG vs HY reaction was similar to what we saw last week when the ECB implicitly and massively increased their CSPP program.

If you want a flavour for the problems still to come in credit note that Ford was downgraded by Fitch yesterday to BBB-. It means it is now 1 rating notch away (by an average of the 3 rating agencies) from HY. In terms of context, Ford has around 36bn of USD index eligible debt that could fall and become the biggest fallen angel ever and the new largest HY issuer. With a mass of BBB paper this won’t be the last such story. If you’re looking for good news on credit, Nick in my team put out a piece looking at what’s now priced in in terms of default risk. Generally we’re pricing in much worse than the largest cohort of defaults seen through history including our approximations for that seen during the Great Depression. While that won’t stop spreads from widening it gives a sense of the value that’s returning to the asset class. See here for more.

Back to the Fed and they also established the Term Asset-Backed Securities Loan Facility (TALF) which “will enable the issuance of asset-backed securities backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration, and certain other assets.” Finally, they announced they’d expand the Money Market Mutual Fund Liquidity Facility to “include a wider range of securities”, and also expand the Commercial Paper Funding Facility to “include high-quality, tax-exempt commercial paper as eligible securities.”

Fixed income rallied following the Fed’s new facilities, with yields on US 10yr Treasuries ending the day down -5.9bps at 0.786%, bringing the decline in yields since last Wednesday to -40.2bps. Those on 10yr bunds were also down -5.4bps to -0.38%.

With the latest Fed move and the blockbuster German fiscal package that’s going through Parliament this week, yesterday we updated our special report into the different monetary and fiscal policy responses seen so far across the G20 economies and a few others within our coverage universe. It also includes the containment measures that various countries have adopted to fight the virus. You can read the report here.

If you want to know what DB thinks of the interplay between these policy measures and the current economic malaise, we are going to have a client conference call today featuring heads of research (including me) and trading teams on the state of their respective markets. Click here to register and to get the number for the call at 14:00 GMT. If DB staff could not dial in at this time and instead listen to the replay 60 minutes after please. Like swing manufacturers, conference call providers have capacity problems at the moment and for this call we’re limited on lines. I believe we have a solution for subsequent calls.

Elsewhere in Europe, the main potential policy development came via a Bloomberg story, which reported that Germany was ready to back a rescue plan that would help Italy through its current crisis. According to the report, Berlin’s preferred option was that the ESM grant an enhanced credit line with minimal conditionality. In turn, if Italy got a credit line, this would enable it to take advantage of the ECB’s Outright Monetary Transactions program, for which a prerequisite is that a country has a credit line with the ESM. However, the report also said that Germany wasn’t ready when it came to issuing joint coronavirus bonds.

Incidentally, Euro Area inflation expectations fell to yet another record low yesterday, with five-year forward five-year inflation swaps now at 0.72%. The same instrument is now at 1.48% in the US, and up by 25.2bps since its low on 12 March. An interesting divergence.

In terms of yesterday’s data, there wasn’t an awful lot to write about, though the European Commission’s consumer confidence measure for the Euro Area fell to -11.6 (vs. -13.0 expected), the index’s lowest level since November 2014 and the largest monthly decline on record.

In terms of the day ahead, and the aforementioned PMI releases are likely to be the highlight on the data front. Elsewhere, from the UK there’ll be the CBI’s industrial trends survey for March, while from the US we’ll get February’s new home sales and March’s Richmond Fed manufacturing survey.

 

3A/ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 62.27 POINTS OR 2.34%  //Hang Sang CLOSED UP 967.36 POINTS OR 4.46%   /The Nikkei closed UP 1,204.57 POINTS OR 7.13%//Australia’s all ordinaires CLOSED UP 4.15%

/Chinese yuan (ONSHORE) closed UP  at 7.0596 /Oil UP TO 24.66 dollars per barrel for WTI and 28.15 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0596 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0763 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER 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

CHINA//USA UK /ITALY//GLOBE

Chinese factories working overtime to build ventilators for Italy and New York//and the uK

(zerohedge)

Chinese Factories Working 24/7 To Build Ventilators For Italy, New York

Approximately 19% of those who contract coronavirus become seriously ill, according to a large Chinese study, while just under 14% fall into the ‘severe’ category, and 5% become critical – typically requiring a ventilator to breathe while suffering from multiple organ dysfunction.

And while the overall fatality rate is a matter of serious debateas many suspect vast underreporting of cases, for those who fall into the critical category, a shortage of respirators would logically increase fatalities among that demographic.

Indeed there is a critical shortage of medical supplies across the United States, compounded by a drop in exports of masks, gowns, sanitizer, and other items from China as demand has surged across the world.

To that end, there is a serious need for ventilators, which several companies – as well as Tesla CEO Elon Musk, have vowed to solve (a claim which ventilator manufacturers aren’t buying).

Donald J. Trump

@realDonaldTrump

Ford, General Motors and Tesla are being given the go ahead to make ventilators and other metal products, FAST! @fema Go for it auto execs, lets see how good you are? @RepMarkMeadows @GOPLeader @senatemajldr

In Seattle, manufacturer Ventec Life Systems has been ramping up production to fill orders as quickly as possible.

One Chinese company, Beijing Aeonmed Co., has been working around the clock since January 20 to crank out the life-saving machines, according to Bloomberg.

“There’s literally no country in the world that doesn’t want to buy a ventilator from China right now,” said company director Li Kai. “We have tens of thousands of orders waiting. The issue is how fast we can make them.”

The company has been working three shifts to meet demand from international customers, and have been producing ventilators “non-stop” according to the report.

As the global coronavirus death toll inches toward 15,000, doctors from Milan to New York are desperately seeking ventilators. In severe cases, the availability of a ventilator that can help a Covid-19 patient breathe can determine if he lives or dies. Late last week, New York Governor Andrew Cuomo said the state, which has about 5,000 to 6,000 ventilators, might need 30,000 of them. –Bloomberg

“It’s ventilators, ventilators, ventilators,” NY Governor Cuomo told reporters. “That is the greatest need,” he added – saying that he has “people in China shopping for ventilators.”

According to the Society of Critical Care Medicine, up to 960,000 patients may require ventilators due to coronavirus – however there are only around 200,000 such machines. In Italy, doctors have been forced to triage patients due to the severe shortage.

The mad scramble for scarce medical supplies comes as China and the U.S. try to deflect blame for their handling of the disease. China has been seeking to claw back an international leadership role after early cover-ups helped the virus spread well beyond its borders. The country has sought to brand itself as Europe’s savior in the fight against the pathogen, providing masks and other supplies to the region’s virus hot spots. –Bloomberg

All the ventilator factories in China have reached their maximum capacity, occupied fully by foreign demand,” said director of supply chain at Vedeng.com, Wu Chuanpu. Vedeng connects medical equipment suppliers and buyers – and is receiving over 60 orders per day totaling hundreds or thousands of such machines. Many orders are from governments, he said.

According to Wu, the factories need to remain at full capacity until May.

“The expansion of the production line is very time-consuming and resources-intensive,” said Wu, adding that “It also involves personnel training. It is too cumbersome.

END

China/the globe

We must never ever trust data coming from China

(zerohedge)

China Lied, Released Infected COVID-19 Patients Ahead Of Xi Visit To Wuhan: Doctor

China lied about the number of COVID-19 patients in Wuhan, ground zero for the global pandemic, ahead of a visit for President Xi Jinping’s March 10 visit to the region, a local doctor told Kyodo News.

The same day China’s health authorities reported no new cases of coronavirus in Wuhan, several symptomatic patients were released early from quarantine, while health officials suspended a portion of testing, according to the report as relayed by the Japan Times.

Jennifer Zeng 曾錚@jenniferatntd

Hospital refuses to admit patient as they want to keep “zero new case” record. Upset family starts a fight with staff, on Mar. 23, Not sure which hospital.
Click here for more : http://bit.ly/2uBfJPr

Embedded video

According to the doctor – who works at a quarantine facility – the government figures “cannot be trusted,”as the number of patients under treatment is being deliberately reduced to show the CCP’s ‘success’ in getting the epidemic under control.

The doctor, in his 40s, whose responsibilities include determining whether a patient is discharged from a hospital expressed strong concerns that if the truth remains hidden from the public, another outbreak could occur.

Guidelines from the National Health Commission stipulate that patients must test negative for the virus twiceand be cleared for pneumonia via a computerized tomography scan before being discharged.

But according to the doctor, from around the time of Xi’s visit, even though his patients still exhibited signs of pneumonia, the patients were released from quarantine at the discretion of a “specialist” from the epidemic prevention and control authority. –Japan Times

After the government specialist began releasing patients, the criteria for discharge was altered – and a “mass release of infected patients began,” he said.

Meanwhile, interview questions for people exhibiting symptoms were similarly simplified, while a blood test to detect antibodies produced during infection was discontinued – resulting in suspected patients being released back into the community.

end
Late tonight

China Coronavirus Official Warns Of Resurgence; Blames Foreigners

China is facing a new outbreak of COVID-19, and is blaming foreigners for an increasing number of infections detected among those entering the country.

According to one of Beijing’s leading experts handling the crisis, Professor Li Lanjuan, she is “very worried that imported cases could trigger another large-scale epidemic in our country,” reports the Daily Mail.

Her comment came after health officials reported the country’s first case of someone who is believed to have contracted the disease, known as COVID-19, from another person returning from abroad.

It also came as life in former epicentre Wuhan is slowly returning to normal following a two-month draconian lockdown. –Daily Mail

The 73-year-old Prof Li – who led the effort in Wuhan – told China News on Tuesday that controlling and preventing imported cases is an “arduous” task for medical workers, adding “This requires us to continue to intensify our efforts and work tirelessly to prevent the coronavirus pneumonia epidemic from spreading in other cities.”

Of note, Wuhan officials have been accused of lying and manipulating data so that it would appear that they have a handle on the situation, according to a local doctor.

Li also old the CCP-owned People’s Daily in Wuhan “The mission in Wuhan has not been accomplished, and there are still many critical patients. Furthermore, I think the current situation in our country is very tough,” she said, adding “Can we make every effort to guard our country and prevent another epidemic from happening? This is a tough challenge.”

She also demanded officials identify those who were struck down by the virus but have not been officially diagnosed. She warned that they could re-ignite the epidemic.

Doctors in Guangzhou, the provincial capital of Guangdong, have diagnosed a coronavirus patient who fell ill after having close contact with a person entering China from Turkey.

This is the first coronavirus case in the country with a direct link to an imported case. The Guangzhou Municipal Health Commission called it ‘a case related to an imported case’ in a statement yesterday.

The 54-year-old man, known by his surname Jin, experienced muscle pain and a lack of strength on March 17. He was hospitalised on March 20 with a slight fever and tested positive the next day.

Mr Jin was a close contact with another confirmed case, 34-year-old Ms Lin, who stayed in Istanbul from January 22 to March 8 on a business trip.

Ms Lin flew back to Guangzhou on March 9 via Bangkok. She did not show any symptoms upon entering the country and stayed at home most of the time afterwards.

She was diagnosed on March 21 after the city’s infectious disease authority gave her a test. –Daily Mail

“Cases related to imported cases are the second-generation cases brought in from abroad. It means the close contacts of [the imported cases] have been transmitted and fallen ill,” said Li.

According to Chinese health officials, there were no new local cases of COVID-19, but 39 infections brought from overseas.

Can you believe it?

end

4. EUROPEAN AFFAIRS

ITALY

Stock Surge Stalls As Italy Admits 2nd Deadliest Day Of Outbreak

Dow futures have fallen back below 20,000, although still up dramatically on the day, as yesterday’s hopes that Italy had turned a corner in its virus-death-count are dashed after they reported 743 deaths overnight – the second worst count since the outbreak began.

Stocks faded (as Italy dashed the optimism of a two-day streak of declining totals)…

And bonds were bid…

But hope remains of the stimulus bill rescuing everything

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/GLOBE

Trump is trying to knock Iran into submission:  the UK, Europe and the iMF is pressuring Trump to ease sanctions on virus sravaged Iran

(zerohedge)

UK, Europe & IMF Ramp Up Pressure For Trump To Ease Sanctions On Virus-Ravaged Iran

Reports and in some cases video began emerging last week of mass shipments of humanitarian supplies being halted and grounded by skittish EU countries worried about violating US-led sanctions on Iran.

This as Iranian leaders have lashed out at Washington for ensuring a worsening coronavirus death toll through its “inhuman” sanctions. But the White House has also been coming under heightening pressures from European allies as well, including surprisingly by the UK, which has up to this point by and large stood by Trump’s “maximum pressure” campaign aimed at ousting the government in Tehran.

“The U.K. has quietly prodded the Trump administration to ease sanctions because of the crisis, the Guardian reported, without saying where it obtained the information,” Bloomberg writes Monday. “On March 17, Iran granted temporary release to British-Iranian Nazanin Zaghari-Ratcliffe, who has been in jail in Tehran since 2016.” This is being seen as part of a significant broader thawing in UK-Iran relations amid the pandemic crisis.

 

Protests outside the Treasury Department. Image source: Medea Benjamin/Common Dreams

Iran’s recently releasing some 85,000 minor offenders from its packed prisons across the country has resulted in the early good faith return of foreign nationals previously accused of spying.

“On Saturday, a French scholar detained in Tehran was released after he showed signs of the coronavirus, while an Iranian engineer held in France and wanted by the U.S. was released by authorities there,” Bloomberg continues. “The apparent prisoner exchange was denounced by the U.S., which had sought the Iranian engineer’s extradition.”

The US State Department has claimed it does have ‘humanitarian channels’ in place as well as exemptions authorizing US companies to sell and ship select medicines and hospital equipment, however, reports suggest American companies are wary of jumping in and possibly suffering punishment.

tim anderson@timand2037

A great evil is being perpetrated by the regime against the people of . Lorries packed with medical supplies destined for Iran, to fight , are being stopped by & obeying US sanctions & economic warfare on Iran. From @SamiRamadani1

Embedded video

The pressure for some kind of dramatic blanket easing of US sanctions is only set to grow, given that Tehran has for the first time in a half-century turned to the IMF:

Iranians say that their economy is weak and unable to cope with the humanitarian toll because of the U.S. sanctions. Last week, Iran turned to the International Monetary Fund for the first time since the 1960s for aid, though Ali Vaez, the Crisis Group’s Iran project director, said the U.S. may try to block the IMF loan in order to keep up the pressure on the regime.

Should Washington block such crucial aid as more and more Iranians die of Covid-19 amid a devastated health system in the country, it could be the final straw that encourages Britain to finally break from Washington’s Iran policy.

Washington’s growing reputation as a ‘monster’ inflicting unneeded extra punishment on the suffering Iranian people will also be further cemented in the minds of world leaders across the globe.

6.Global Issues

It’s Not “Just The Flu”: Here’s Why You Definitely Don’t Want To Catch COVID-19…

Authored by Michael Snyder via TheMostImportantNews.com,

Can you imagine being in “blinding pain” for weeks, constantly gasping for air as you feel like you are being suffocated, and screaming for mercy because you are in so much constant torment?  As you will see below, coronavirus survivors are telling us about their hellish ordeals, and they are warning us to do everything that we can to avoid this virus.  Of course they are the lucky ones.  As I detailed in another article, the global death toll has doubled over the past six days, and so far the very high death rate in the United States is extremely alarming.  So those that survive should consider themselves to be very fortunate, but many of those same individuals will be left with permanent lung damage.

This virus attacks the respiratory system with a ferocity that is shocking doctors, and those that are still attempting to claim that COVID-19 is “just like the flu” need to stop, because they are just making things worse.

Researchers have found that this virus has an incubation period of up to 24 days, and people can spread it around long before they are showing any symptoms.

And you don’t even have to encounter someone with the virus to catch it.  According to Bloomberg, new research has discovered that this virus can remain on surfaces “for as many as 17 days”…

Traces of new coronavirus were found on surfaces in cruise-ship cabins for as many as 17 days after passengers left, researchers said, though it wasn’t possible to determine whether they caused any infections.

Researchers looked at the rooms of infected passengers aboard the Diamond Princess, both those who showed symptoms and those who didn’t, according to a study Monday in the Centers for Disease Control and Prevention’s Morbidity and Mortality Weekly Report.

When you combine those two factors, it makes COVID-19 nearly impossible to contain.

This is a major emergency, and it makes me angry that there are prominent voices out there that are still trying to downplay this pandemic.  As a result, many people are not taking proper precautions, and a lot of them are going to end up catching the virus.

If you are reading this and you still don’t think that COVID-19 is a big deal, please take a moment to consider the following five stories about coronavirus survivors…

#1 26-year-old Fiona Lowenstein

That night I woke up in the middle of the night with chills, vomiting, and shortness of breath. By Monday, I could barely speak more than a few words without feeling like I was gasping for air. I couldn’t walk to the bathroom without panting as if I’d run a mile. On Monday evening, I tried to eat, but found I couldn’t get enough oxygen while doing so. Any task that was at all anxiety-producing — even resetting my MyChart password to communicate with my doctor — left me desperate for oxygen.

#2 55-year-old Kevin Harris

“Imagine your lungs turning solid. It’s like suffocating without holding your nose,” said Harris, who owns an auto body shop and typically runs 5 miles every day.

“Every time I lay down, my breathing gets lower and lower. I thought my lungs would fail me. I was screaming for mercy and praying to God.”

#3 25-year-old Connor Reed

A Welshman who caught the coronavirus in China has described how the deadly disease hit him “like a train” leaving him “suffocating” and in blinding pain for weeks.

Connor Reed, from Llandudno, got ill while working as an English teacher in Wuhan.

The 25-year-old described how it started as “just a sniffle” on November 25 – a month before authorities officially announced the virus – but over the next three-and-a-half weeks he got increasingly ill and was unable to move.

#4 39-year-old Tara Jane Langston

‘It’s like having glass in your lungs, it’s hard to explain, but every breath is a battle.

‘It’s absolutely horrible and I wouldn’t want to go through anything like this ever again. I’d been ill for about five days before I was taken to hospital in an ambulance.

‘I’d originally been diagnosed with a chest infection and given antibiotics and advised to take ibuprofen and paracetamol. I was taking about eight ibuprofen a day and they now think that that exacerbated the problem.

#5 A 12-year-old girl in Georgia named Emma

Emma, a 12-year-old girl, is “fighting for her life” in an Atlanta hospital after testing positive for the coronavirus, according to her cousin.

Justin Anthony told CNN that Emma was diagnosed with pneumonia on March 15 and tested positive for coronavirus on Friday night. As of Saturday, she was on a ventilator and is currently in stable condition, Anthony said.

As you can see, this virus is not just hitting “old people” extremely hard.

But if you are above the age of 60, please understand that you at very high risk, and you need to stay away from public places for the foreseeable future.

I know that it can be hard to stay home day after day, but this is truly a very, very deadly virus.

At this point, even doctors and nurses are “scared to go to work”

Doctors and nurses on the front lines of the fight against the coronavirus in the United States say it’s “the first time” they’ve been scared to go to work. With a shortage of personal protective equipment, some have resorted to using bandanas to cover their faces.

“It’s the first time we’ve ever been truly scared to come to work, but despite being scared we are trained to save lives and we’re committed to doing that,” Dr. Cornelia Griggs, a surgeon in New York City, told “CBS This Morning.” “I’m embarrassed to say, but prior to this, my husband and I had never gotten around to writing a will, but this weekend that became one of our to-do list items.”

As I have been writing this article, over 2,000 more confirmed cases were added to the rapidly growing total here in the United States.  And as I discussed yesterday, it looks like the U.S. is going to have a very high death rate just like we are seeing in western European countries such as Italy and Spain.

So please take this pandemic very seriously.  A lot of Americans are going to die, and it is going to be a great national tragedy.

Please pray for those that have caught the virus and are deeply suffering.  It is in our darkest moments that we need a miracle the most, and there are a whole lot of people out there that need one right now.

END

The following is a must must read as Dr Lacalle gives the correct response of what governments should do…completely eliminate the tax system for two or three years.  He explains why

a must read…

Dr Daniel Lacalle/Phd.Economics

A More Effective Response To The Crisis – Monetary Insanity Is Not The Solution To Monetary Excess

Authored by Daniel Lacalle,

Before analyzing the emergency plans that the global economy needs, we must remember that, as in the past, the prudence and responsibility of the civil society and businesses will help us to get out of this crisis.

In the face of an unprecedented crisis, we have to be realistic, responsible and cautious.

This is a supply shock added to a mandatory shutdown of the economy. As such, a serious response must be supply-side driven. It is ludicrous to try to stimulate demand with printed money and public spending in a forced lockdown where any extra demand will not drive supply up, even may drive it down.

A mandatory shutdown due to a supply shock is not solved with government spending or demand-side measures. Printing money and lowering rates help the already indebted and governments with already historic-low bond yields, deficits are already going to soar due to automatic stabilizers, so governments need to work on three things:

  • First, make sure that once there is a tested and approved vaccine, the production, distribution, and healthcare networks are going to be adequately prepared to respond to the population requirements.
  • Second, make sure that businesses don’t collapse due to working capital build in a domino of bankruptcies that leads to mass unemployment.
  • Third, eliminate all unnecessary spending to effectively use all fiscal space to mitigate the crisis effects and allow the economy to breathe and recover.

Governments that overspent in growth times, massively increased debt and ignored the pandemic risks only to then create a widespread lockdown cannot present themselves as the solution.

Small and medium enterprises do not need a government to incentivize demand, because this is not a demand problem, the shutdown is imposed by law due to a health epidemic that lawmakers preferred to ignore.

We cannot fall into the trap of believing that what the economy needs is more monetary easing when it fails, and if it does not work then we must try even more monetary insanity.

Monetary insanity is not the solution to monetary excess and lunacy.

It is our duty to warn of the risks of falling into irresponsible optimism, precisely so that we can get out of this crisis sooner and better.

What recovery will there be?

Estimates of economic growth are plummeting at breakneck speed . The closure, albeit temporary, of economic activity, transport and trade, will mean an inevitable recession. The biggest mistake policymakers can make is to believe in a V-shaped recovery. All governments should prepare for an L-shaped recovery. If I am wrong, economies will be stronger anyway, but if I am right, massive stimulus implemented only three weeks after a market all-time high and immense deficit spending policies at the very beginning of a pandemic crisis will cripple the economy to an irreparable situation.

Leading economies have a great capacity to face a shock like this. This is not the case in Italy or Spain. Calculations for the United States indicate that unemployment will skyrocket to 6.5%, in the case of the United Kingdom to 7% and in Germany to 6%. In weak and highly intervened economies, the combination of already high unemployment, high debt, and high government spending can lead to a Greece-style crisis when the measures to address a forced shutdown come from more government intervention.

In the Eurozone, most of the plans announced by governments are based on three important flaws:

  1. Ignore that many countries were already close to a recession in 2019,
  2. assume a low-impact parenthesis and
  3. estimate a rapid and exponential recovery that will inflict no real damage on employment or public and private accounts.

In the eurozone, Germany, France, Italy, and Spain’s fourth-quarter GDP already reflected a significant slowdown, so the European Commission, ECB and governments’ responses start from the wrong diagnosis: that the problem we are facing is one of demand and access to credit and not of sales collapse due to an imposed lockdown, with an accumulation of tax liabilities and fixed costs.

The United States must avoid making the mistakes that the eurozone nations are already starting to make.

Deadlines

European governments are unwillingly creating a worse long-term impact on the economy by giving citizens unrealistic small doses of negative information and extending lockdowns in fifteen days periods. This is leading to massive cash flow problems all over the economy because businesses find that the support mechanisms only last for a few days while the extension of losses destroys cash flow and balance sheets. Businesses are seeing current invoices delayed or unpaid while orders for November and December are being canceled.

Few will deny that it is necessary to take measures to close airspaces and cities, but in that same understanding, governments should allow solutions to real problems. By the time the developed economies’ government plans have completed its period of application, cities, and airspaces in other countries in the world will begin to close, creating a ripple effect. The collapse in activity that today affects mostly China and Europe, is likely going to spread to Latin America and India with a month lag.

Of course, a vaccine will be created, there are already great news from Seattle and twenty possible vaccines being tested, but it will take up to 18 months to approve it and, most importantly, it will take more months to manufacture those vaccines on a global scale. This cost is underestimated.

The vast majority of companies do not face a problem of access to credit (there is ample liquidity and credit supply on solvent demand and at very low rates), they face complete closure and layoffs due to cessation of activity. Zero income, but fixed costs and accumulated taxes. Many businesses will find that delaying tax payments or provide loans doesn’t solve anything.

Most businesses problem is not one of loan guarantees, but of the impossibility of requesting a loan. We are not in a crisis due to lack of access to credit, but rather a crisis due to the disappearance of activity.

The private contribution

Governments expect banks to provide massive relief through more loans, ignoring the fact that banks in the eurozone still have billions of non-performing loans and face a massive increase in delinquencies in Europe but also in their growth subsidiaries, mostly in Latin America and Asia.

Banks are going to face an increase in default on existing assets both in Europe and abroad. Banks can cope with this situation and they have done it well, but they are not going to be able to increase risk by tens of billions while helping their current clients to come out of the crisis Most Europen governments assume a balance sheet strength in private agents that is neither evident in large companies nor is it existent in SMEs (small and medium companies).

Additionally, Europe’s large companies already have high levels of indebtedness, although it has decreased admirably in recent years. Net debt to EBITDA in non-financial companies is already likely to soar due to the downgrades in earnings and cash flow.

Credit, liquidity and short-term aid measures are suitable for those who would have survived anyway before these new central bank and government measures. Liquidity was immense, rates were low and the banks did everything possible to lend.

The losers from this crisis will likely be those who have done their homework and live month by month, without large assets to cover a loan and without muscle to face months of zero income. And those, the ones who are going to suffer the most these months, were already drowned in taxes last year.

My proposals

Some politicians have mentioned the concept of “war economy”. And I think it is a correct one. For a war economy, there can be no bull-market administration.

  • The first thing that the Government should announce in the face of this challenge is a drastic reduction to zero of all the non-essential items of the budget, unnecessary subsidies, duplicate expenses, and a reduction in ministries and senior officials according to the moment.
  • The second is to work with the private sector to guarantee that, once a vaccine is available, all production and distribution channels are well organized so that it can reach the population quickly and efficiently.
  • The third is a complete tax exemption during the crisis period for companies, families and the self-employed. Zero income, zero tax. This will allow, together with liquidity lines at no cost, to survive the lockdown.

Governments are already going to consume all the fiscal space they have and more. The idea is that this enormous liquidity at negative real rates may be used for something effective for once, not to increase structural imbalances in current spending.

This is not asking the state to intervene, it is asking the government to stop intervening so much, stop the tax burden machine during an unprecedented business cataclysm, and unite in responsibility and austerity with those who are fighting every day to survive.

If governments and central banks decide to multiply the previous mistakes adding larger ones, like direct monetization of spending or helicopter money, they will add a monetary crisis to a mandatory supply shock. A mistake is not corrected doing the same but more aggressively.

We must ask the government to stop intervening so much, not to exploit an unprecedented business cataclysm to increase interventionism.

If governments insist on maintaining the few tax revenues they can scratch from the wreckage they will jeopardize the receipts of 2020 and those of 2021 and 2022, because of the massive increase in unemployment and closure of businesses.

Keeping the tax wedge system in a crisis of this magnitude generates a double negative. The domino of business failures and job losses will take years to recover, and with it, tax bases and receipts. Second, the potential growth is curtailed because of disproportionately high regulatory taxation, making it even more difficult to attract the little investment that could come after the recovery.

You cannot do war economics considering that everyone has margin except the enormous administration and political structure.

A widespread economic closure shock is not solved with demand measures or using the private sector balance sheet to add debt and accumulate risk, but with urgent supply measures that respond to the reality of businesses and, with them, of workers and families.

The US and the world will rise from this crisis. What the government has to do is allow it. The government is there to facilitate, not to pick winners and losers.

Here Is Where The World Now Is On The “Corona Curve” At This Moment

With 1.7 billion people in the world under quarantine (and India about to make that 3 trillion) and desperate to find out where on the coronavirus “curve” they are to calculate how much more pain there is, JPM has made an attempt at a (very nonscientific) visual representation of where on the curve the main covid outbreaks in the world currently stand.

The good news, China has is now well into the recovery phase, although since any and every number out of China is a lie, we would ignore any reports that the covid pandemic in China is easing especially after a spate of recent indications that China is openly manipulating its infection numbers. Also good news: Korea is almost “over the hump”, and absent new clusters emerging in the next few days, should be in recovery.

Now the not so good news: both Italy and Iran are in the “late accumulation” phase. If they fail to halt the breakout at this point as the recovery phase approaches, it will get very ugly as much of the local population could then be infected. Behind Italy and Iran is the rest of Europe, with Spain, Germany, France, the UK all in the acceleration phase. The onus in on them to execute successful lockdowns.

Finally, the bad news: both the US and India are at the very start of the curve and things will get much uglier in the coming weeks before they get better.

Some more observations from JPM:

Global infections accelerated 14% d/d or 45,495 new cases over the last 24 hours to 381,499 according to Johns Hopkins, implying the global curve may be gradually shifting toward an early acceleration stage. The US (13,060 d/d), Spain (6,368 d/d), Italy (4,789 d/d) and Germany (4,183 d/d) reported the most new infections. In Asia, China’s Hubei reported one new infection after 5 days of no new increase. As recent infection spike in Hong Kong SAR and Singapore suggests, as long as the global infection curve is developing, premature relaxation of heightened community risk awareness could set off a rebound of a controlled infection curve or a second infection wave. From that vantage, China’s full lift on Wuhan city on 8-Apr bears close watching in our view as infections may appear to persist in society for at least one month. In ASEAN, 212 new cases were reported in Malaysia, taking total infection to 1,518. Our epidemiology model suggests a mid-April infection peak. Our Australian team reviewed the strategy taken by the government and introduced an epidemiology model, forecasting a possible peak in new cases around 15 April.

Finally, as we noted last night, Trump is now eager to recreate China’s experience and reopen the economy in under 2 weeks to avoid a second great depression. Needless to say, this will be problematic unless the US shifts into the recovery phase by then.

END

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

INDIA

The biggest lockdown in world history//India paralyzed

“Biggest Lockdown In World History” – India Paralyzed As COVID-19 Crisis Unfolds 

Indian stocks crashed on Monday, suffering their worst single-day loss on record, as domestic and foreign investors were absolutely terrified that a nationwide lockdown triggered by a COVID-19 outbreak could crash the economy.

The NIFTY 50 is the flagship index on the National Stock Exchange of India, plummeted 12.98% to a near four-year low of 7,610.25 on Monday.

The Indian rupee hit a record low of over 76 against the dollar and puts pressure on the Narendra Modi government and the Reserve Bank of India (RBI) to ramp up emergency response efforts to protect a crashing currency and economy.

Modi’s “Make-in-India” program, an attempt to revive the economy and diversify its manufacturing sector away from automobiles to bolster its aerospace and defense sectors, has miserably failed.

The economy has come to a screeching halt as residents in 75 districts across the country, including in major cities, such as the capital New Delhi, Mumbai, and Bangalore have been forced into mandatory quarantine by the government until March 31.

India is the second-largest country in the world, and has reported only 467 cases and ten deaths.

The lack of test kits has made it virtually impossible for the Ministry of Health and Family Welfare to detect community spreading of the virus. As test kits come online, India could be staring at a pandemic.

Actions by the government already suggest the virus crisis is getting worse. In the last day, India launched the world’s most extensive social distancing lockdown of 1.3 billion people to flatten the pandemic curve to slow down the infection rate.

Al Jazeera English

@AJEnglish

Nearly a billion Indians stayed indoors on Sunday.

India’s 14-hour lockdown — in pictures https://aje.io/psl6g

View image on TwitterView image on TwitterView image on TwitterView image on Twitter

Flight bans and the cancellation of all passenger trains in the country is another attempt to limit the spread. The country’s hospital system is poorly equipped and doesn’t have enough hospital beds and ICU-level treatments to handle a massive influx of virus patients.

“This is the biggest lockdown in world history,” said Raghu Raman, a former soldier with the Indian Army and founder of the National Intelligence Grid, an umbrella database aimed at countering terrorism.

“This strategic pause gives decision-makers more time to arrest the exponential spread of the virus and evaluate tradeoffs.”

Foreign investors aren’t sticking around to see if the virus crisis will abate in the near term – they’re currently dumping Indian assets at an unprecedented pace.

Oxford Economics estimates India’s January-April growth forecast to be around 3%, a level not seen since the global financial crisis.

Bloomberg Economics says that the Indian government needs to spend at least 1% of GDP, or about $30 billion, to respond to the virus outbreak.

India’s manufacturing hubs have ground to a halt as companies have been forced to shutter operations for virus containment purposes. Maruti Suzuki India Ltd., Tata Motors Ltd., Toyota Kirloskar Motor, Hero MotoCorp., Samsung Electronics Co. and LG Electronics Inc., Mahindra Group, TVS Motor Co., Kia Motors Corp., Renault Nissan Automotive India Private Ltd., and Yamaha Motor India are some of the large multinationals that have recently suspended operations.

The government’s principal economic adviser Sanjeev Sanyal warned that “waves of default” of corporate debt could be imminent. There’s a record 5.9 trillion rupees of corporate debt maturing this year.

Finance Minister Nirmala Sitharaman said last week that the government would announce a relief package for companies in the near term. The RBI is expected to slash interest rates and inject 1 trillion rupees into the economy on April 3.

We noted back in December that India’s economy was “in a very deep crisis,” which was a month before the world figured out about a virus outbreak in Wuhan, China. 

It was only earlier this month that India organized a rescue plan for the nation’s fourth-largest private bank as a long-running crisis among shadow lenders threatened to spill over into the banking system.

With a nationwide lockdown underway, India’s economy could be on the brink of a significant downturn that would be absolutely devastating for the Modi government.

END

 

 

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

Euro/USA 1.0884 UP .01188 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 110.47 DOWN 0.336 (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 1.1784   UP   0.01915  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4411 DOWN .0067 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro ROSE BY 112 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED UP 62.27 POINTS OR 2.37% 

 

//Hang Sang CLOSED UP 967.36 POINTS OR 4.46%

/AUSTRALIA CLOSED UP 4,15%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 967.36 POINTS OR 4.46%

 

 

/SHANGHAI CLOSED UP 62.27 POINTS OR 2.34%

 

Australia BOURSE CLOSED UP 4.15% 

 

 

Nikkei (Japan) CLOSED UP 1204.57  POINTS OR 7.13%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1596.80

silver:$14.04-

Early TUESDAY morning USA 10 year bond yield: 0.81% !!! UP 2 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.40 UP 5  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 101.08 DOWN 141 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.04% UP 10 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.07%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.86%//UP 10 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,59 DOWN 4 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 73 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.34% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.96% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.0794  UP   .0031 or 31 basis points

USA/Japan: 111.34 UP .547 OR YEN DOWN 55  basis points/

Great Britain/USA 1.1780 UP .0188 POUND UP 188  BASIS POINTS)

Canadian dollar DOWN 12 basis points to 1.4491

 

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The USA/Yuan,CNY: AT 7.0630    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0832  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.4788 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield UP 8 IN basis points from MONDAY at 0.87 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.42 UP 6 in basis points on the day

Your closing USA dollar index, 101.88 DOWN 61  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 342.09  6.5%

German Dax :  CLOSED UP 773.47 POINTS OR .89%

 

Paris Cac CLOSED UP 255.26 POINTS 6.52%

Spain IBEX CLOSED UP 346.60 POINTS or 5.56%

Italian MIB: CLOSED UP  975.23 POINTS OR 6.27%

 

 

 

 

 

WTI Oil price; 23.54 12:00  PM  EST

Brent Oil: 27.52 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    78.93  THE CROSS LOWER BY 0.65 RUBLES/DOLLAR (RUBLE HIGHER BY 65 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.34 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 :  24.07//

 

 

BRENT :  27.32

USA 10 YR BOND YIELD: … 0.84….plus 5 basis pts..

 

 

 

USA 30 YR BOND YIELD: 1.39…plus 5 basis points..

 

 

 

 

 

EURO/USA 1.0772 ( UP 9   BASIS POINTS)

USA/JAPANESE YEN:111.44 UP .632 (YEN DOWN 63 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 101.99 DOWN 50 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.1736 UP 142  POINTS

 

the Turkish lira close: 6.4382

 

 

the Russian rouble 78.24   UP 1.34 Roubles against the uSA dollar.( UP 134 BASIS POINTS)

Canadian dollar:  1.4496 DOWN 16 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0631  (ONSHORE)/

 

 

USA/CHINESE YUAN(CNH): 7.0860 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.34%

 

The Dow closed UP 2112.98 POINTS OR 11.37%

 

NASDAQ closed UP 557.18 POINTS OR 8.12%

 


VOLATILITY INDEX:  61.67 CLOSED up .08

LIBOR 3 MONTH DURATION: 1.215%//libor dropping like a stone

 

USA trading today in Graph Form

Dow Squeezes To Best Day Since 1933, Gold Soars As Dollar Dips

The day ended with still no Stimulus Bill (the 1100-page plus pork-fest is ‘close’ reportedly), with Italy’s virus-death-count resurgent (dashing optimism that they peaked), no clear indication of when the economy will reopen (despite Trump and Kudlow pushing the narrative), and a total and utter collapse in global PMIs.

So it all makes perfect sense that stocks soared massively today – Dow +11.3% (biggest absolute point gain for The Dow ever)…

…erasing Friday and Monday’s losses…

Futures were limit-up overnight, and extended panic-buy gains – just like last week – at the open and into the close…

For the Dow, this was the best day for The Dow since 1933 (and the heaviest volume ever)

Source: Bloomberg

And here’s what The New York Times said on that day in 1933 – a response after markets were shutdown, massive volume, thanks to President/Congress’ actions, and massive short-squeeze – sounds FAMILIAR!!

Here’s what happened the last time The Dow rallied this much…

Source: Bloomberg

And another huge dead-cat-bounce…

Source: Bloomberg

We’ve seen this before…

Source: Bloomberg

The S&P tested back up to the Dec 2018 lows…

Source: Bloomberg

European stocks explode higher too (Euro Stoxx up 8.4% – the most since Nov 2008) and DAX’s 11% surge is also the biggest since Nov 2008…

Source: Bloomberg

This was the biggest short-squeeze day ever in US markets – with “Most Shorted” stocks soaring 11%!!!

Source: Bloomberg

HYG and LQD were both higher today…

Source: Bloomberg

But, LQD faded notably despite the largest inflows ever in the last two days…

Bonds and stocks have notably decoupled once again this week…

Source: Bloomberg

Treasury yields were higher today, led by the belly (5Y-10Y +9bps, 30Y +2bps) – but 10Y and 30Y yield are still lower on the week…

Source: Bloomberg

30Y Yields outperformed, rallying from around the time of the ugly PMIs…

Source: Bloomberg

The Dollar suffered its first drop in the last 11 days…

Source: Bloomberg

Cryptos extended their post-QEterntity gains…

Source: Bloomberg

Helped by a weaker dollar, commodities were all broadly higher today (with Precious Metals extended their gains today – silver outperforming…

Source: Bloomberg

WTI was unable to hold gains above $24 today, ahead of tonight’s API inventory data…

Gold futures soared once again, almost tagging $1700…

And notably decoupling from spot prices…

Source: Bloomberg

Silver is also rallying hard, back above $14…

 

Finally, we hate to burst everyone’s bubble, but this thing is accelerating dramatically…

 

Source: Bloomberg

end

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Futures Hit Limit Up, Treasuries Extend Drop As $2 Trillion Stimulus Deal Nears

US equities hit ‘limit up’ in pre-market trading on Tuesday on news that the Senate and the White House are close to an agreement on a $2 trillion coronavirus aid package which was delayed after Democrats held it hostage for a wish list of unrelated pork.

It’s unclear on whether they’ve agreed to eliminate the controversial demands – including several ‘Green New Deal’ type emissios restrictions on airlines, funding to keep the JFK Performing Arts Center going, or $7 million for one specific DC charter school with a $180 million endowment – but Nancy Pelosi will be on CNBC this morning to discuss.

House Speaker Nancy Pelosi came out with House Democrats’ $2.5 trillion bill. President Donald Trump, meanwhile, suggested he wants to urge businesses to reopen, sooner rather than later. “I’m not looking at months,” the president said at a news conference Monday evening. –CNBC

The Dow was down 37% from its recent February highs as of Monday’s close.

US Treasuries, meanwhile, extended an overnight drop on news of the impending deal.

According to CNBC, investors have been more concerned about the stimulus package than the Federal Reserve’s Monday announcement of a massive, open-ended asset purchase program.

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

USA services economy collapses the most on record: it signals at least a 5% GDP plunge

(zerohedge)

US Services Economy Collapses At Record Pace, Signal 5% GDP Plunge

Following disastrous PMI prints across Europe (and China last month), preliminary March US Manufacturing and Services data was expected to plunge notably into contraction (having already tumbled in February).. and they both did…

  • US Manufacturing PMI dropped to 49.2 (contraction) – a 127-month low – from 50.7 (dramatically better than the expected drop to 43.5 – thanks to the farcical ‘bullishness’ of longer supplier delivery times).
  • US Services PMI crashed to 39.1 from 49.4 – a record low.

Source: Bloomberg

steep rates of manufacturing contraction were signalled for production and new orders, both of which fell to the greatest extent since 2009, with many firms linking this to the escalation of preventative measures following the outbreak of COVID-19. Some companies have reported having to shutdown and give refunds where orders could not be fulfilled in time.

Driving the downturn in services output was a steep fall in new business. The decrease in sales was the quickest since data collection began in late-2009, as both domestic and foreign client demand weakened. Companies highlighted challenging conditions across the services sector, especially in travel and tourism and other consumer-facing industries.

It’s Global…with the US Composite Index crashing to 40.5 – a record low

Source: Bloomberg

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit, said:

US companies reported the steepest downturn since 2009 in March as measures to limit the COVID-19 outbreak hit businesses across the country. The service sector has been especially badly affected, with consumer-facing industries such as restaurants, bars and hotels bearing the brunt of the social distancing measures, while travel and tourism has been decimated. However, manufacturing is also reporting a slump in demand, with production falling at a rate not seen since 2009, linked to either weak client demand, lost exports or supply shortages.

Jobs are already being slashed at a pace not witnessed since the global financial crisis in 2009 as firms either close or reduce capacity amid widespread cost-cutting.

“The survey underscores how the US is likely already in a recession that will inevitably deepen further. The March PMI is roughly indicative of GDP falling at an annualised rate approaching 5%, but the increasing number of virus-fighting lockdowns and closures mean the second quarter will likely see a far steeper rate of decline.”

Get that bill signed!

END

iii) Important USA Economic Stories

Pelosi’s $2.5 Trillion Corona-Counterproposal Includes Delays For Mortgage, Auto, And Credit Card Payments

The $2.5 trillion economic stimulus plan unveiled by House Speaker Nancy Pelosi (and which is ‘on the 5 yard line’ according to Senate Majority Leader Mitch McConnell) will have significant implications for the financial sector – forcing lenders to grant reprieves from mortgage, car, and credit card payments.

The bill would also order the Federal Reserve to provide loan servicers with enough liquidity to allow borrowers to stop paying their mortgages for up to 360 days, according to Bloomberg, which adds that “Public housing residents would get a temporary reprieve from paying rent, and student loan borrowers would have $10,000 of debt forgiven.

In addition, negative consumer credit would be halted and foreclosures and evictions would be illegal.

There are currently no plans for House members to return to Washington to vote on the bill, and the proposal appears to be a list of demands Democrats want to see included in the Senate bill. Treasury Secretary Steven Mnuchin and Senate Democratic leader Chuck Schumer spent much of Monday negotiating behind closed doors on the Senate proposal, initially introduced last week.

“Secretary Mnuchin just left my office,” Schumer said on the Senate floor shortly after House Democrats introduced their bill. “We are going to work on into the night.”

The GOP controlled Senate is caving to Democrats’ demands amid a 47:47 deadlock, as five GOP Senators are absent due to the coronavirus – including Sen. Rand Paul (R-KY), who has contracted the disease, and four others who are in self-isolation due to exposure.

On Monday, Democrats blocked a second attempt at a procedural vote on a $1.8 trillion Republican plan, arguing that its loan program for companies is corporate welfare that lacks transparency and oversight.

Democrats, on the other hand, have set aside massive funds for NASA, NOAA, $35 million to keep the JFK Performing Arts Center running, and other wish-list items that have nothing do do with coronavirus.

The House bill would require any corporations receiving federal assistance to restrict executive pay, eliminate golden parachutes for departing executives, halt stock buybacks and dividends, and pay a $15 minimum wage while maintaining their workforce and any union agreements.

Anyone with a Social Security number – including unemployed individuals and retirees, would receive $1,500 vs. $1,200 in the Senate GOP bill.

That said, households with income over $150,000 for joint filers, $112,500 for head of household, and $75,000 for a single filer would be required to pay the money back over three years in what would amount to a zero-interest loan.

Both bills will boost unemployment checks to $600 week, as well as expand who qualifies for it, according to Bloomberg.

In addition, the legislation would authorize the Federal Reserve to purchase local and state government bonds to fight the pandemic. Schools and universities would receive $60 billion under the House bill.

Read the rest of the report here.

 

CORONAVIRUS UPDATE USA//GLOBE

US Reports Largest Jump In COVID-19 Cases, Deaths; Japan Delays Tokyo Games Until 2021: Live Updates

Summary:

  • US reports more than 10k new cases in largest daily jump yet
  • Number of new coronavirus cases confirmed over last 2 days largest yet
  • Alaska orders visitors to quarantine
  • US records more than 100 deaths in a day
  • Global case total nears 400k
  • PM Abe, IOC agree to delay Tokyo Games 1 year, Paralympics still set to take place this summer
  • India expands lockdown
  • Italian designers making coronavirus face masks
  • Pakistan deploys army
  • Italy shuts down gas stations
  • Albania imposes 16-hour daily lockdown
  • Myanmar, Laos confirm first cases
  • Thailand to declare state of emergency
  • Macau, Hong Kong tighten restrictions
  • Beijing lifts lockdowns on Hubei, Wuhan
  • Nearly half of UK watched Johnson’s Monday night address
  • Belgium reports 500+ new cases
  • European PMI offer first indicator of economic damage
  • German finance minister says more stimulus to come
  • Hawaii reports first death

*  *  *

Over the past two days, the number of confirmed coronavirus cases and deaths has seen the largest jump on record, even as the number of newly reported cases plateaus in Europe, as New York and a handful of other US states ramp up testing. On Monday, the US was hardest hit, with states adding 10,168 cases, the largest single-day increase for any country outside of China.

And for the first time, the US recorded more than 100 new deaths in a single day, including the first recorded death in Hawaii. The individual, who died on Friday, was an adult from the island of Oahu suffering from “multiple underlying health conditions.”

As a result, at least 16 states have issued stay-at-home orders, which, once in effect, will impact 142 million people, or 43% of the US population, CNN reports.

A consortium of Italian fashion and textile firms will produce 50 million masks per month, covering half of Italy’s needs, said virus czar Domenico Arcuri.

“Italy does not produce masks, except for minimal amounts, we do not yet have the ammunition in our house. But we will and if other companies will join the consortium we could become self- sufficient in two months,” Arcuri said. China has been sending over another 14 million masks.

Alaska has ordered anybody visiting the state to quarantine for two weeks, as President Trump desperately warns that the US “wasn’t built to be shut down” and that extending the shutdown for longer than 2 weeks might do irreparable harm to the economy. German Finance Minister Olaf Scholz hit back at Trump Tuesday morning, telling the German newsmagazine “Bild” that calls to put economic health before protecting human life are “cynical” and “poorly thought out.”

Around the world, there are 387,382 cases of novel coronavirus, according to Johns Hopkins University, which is tracking figures from the World Health Organization and additional sources. On Monday, JH recorded the largest single-day jump in the number of new COVID-19 cases, with 41,371 cases diagnosed. The death toll rose by a record 1,873 – nearly 2k deaths in a single day  – bringing the international total to 16,767 deaths globally.

Meanwhile, in Japan, NHK reported that Japanese PM Shinzo Abe urged the IOC to make a decision on the fate of the games “as quickly as possible”, following reports last night that Japan had agreed to postpone the 2020 games until 2021. Earlier, New Zealand’s athletes joined Australia’s and Canada’s in pulling out of the games unless they’re postponed.

Elsewhere in Asia, India has expanded its mammoth national lockdown to cover about two-thirds of the population, even as the number of confirmed cases remains below 500. Neighboring Pakistan is deploying its army to assist with the outbreak, while tiny Albania is imposing a strict 16-hour daily curfew to combat the outbreak.

After Hong Kong reported its largest daily jump in new cases a few days ago, Singapore confirmed 54 new cases of the coronavirus on Monday, the city’ state’s largest daily jump, even after Singapore, HK, Taiwan and a handful of other Asian economies were praised for their efforts to combat the virus. Even as the number of confirmed cases in Japan remains low – possibly because, as some have noted, close personal contact is often frowned upon in Japanese culture – Tokyo’s governor warned on Tuesday that Japan’s capital could be placed under lockdown if the number of cases spike.

In southeast Asia, the tiny, impoverished nations of Myanmar and Laos have just reported their first two cases.

After a nearly week-long streak where China confirmed almost no new domestically-infected cases, it appears the outbreak in the world’s second-largest economy has finally petered out. Lockdown measures that were imposed on China’s Hubei region and especially its capital city, Wuhan, back in February will be lifted on Wednesday, while additional measures in Wuhan will remain in place until April 8.

“It’s finally over,” overjoyed residents cried with joy after the announcement.

Though other Asian governments were moving in the opposite direction. Thailand said Tuesday that it will declare a state of emergency under a decree giving it broad powers to fight the coronavirus outbreak, including the right to censor media. Meanwhile, Macau, a special administrative region of China, along with Hong Kong, has joined the latter city in demanding all foreign travelers be quarantined for 14 days upon arrival.

Meanwhile, over in Italy, authorities are trying to figure out what to do next as stocks and bonds soared in a torrid rally following signs that the country’s lockdown might finally be helping to slow the outbreak.

Although the data from the last two days has been somewhat encouraging, the head of the Civil Protection Agency, the federal agency that has been tasked with reporting the country’s daily case totals, said that the total number of infected is likely 10x the official number of cases that have been confirmed.

“A ratio of one certified case out of every 10 is credible” Angelo Borrelli, the head of the Civil Protection Agency, told La Repubblica. Borrelli said he believed as many as 640,000 people could have been infected in the country.

Now that the lockdown has been extended to April 3, the country said that it would shut down all motorway and highway petrol stations, making it virtually impossible for people to travel.

In Germany, meanwhile, Finance Minister Olaf Scholz said that his country could push for even more stimulus after announcing plans for a massive fiscal stimulus measure on Tuesday morning, and after the EU states got together to discuss additional assistance for Italy.

Meanwhile, in other news, we wanted to point out that, a few days ago, we shared a report about this phenomenon with our readers. Since then, the information has been even more widely reported: Now, a team of British ear, nose and throat doctors are raising the possibility of a new indicator of the coronavirus, one they say has been observed globally, even in patients who are otherwise asymptomatic: anosmia, a condition that causes the loss of sense of smell. In a statement, they warned that adults experiencing recent anosmia could be asymptomatic carriers of COVID-19, and urged them to consider self-isolation.

“All of this evidence is accumulating very rapidly, but there’s nothing yet robustly in print,” said Claire Hopkins, president of the British Rhinological Society. “Since then, I’ve had colleagues from around the world saying: ‘That’s exactly what we’re seeing.’ They’ve been trying [to raise awareness], but it hasn’t been picked up.”

We also reported a couple of weeks back that Iran was temporarily releasing prisoners and requiring them to help with the country’s relief effort. The government has now extended their supervised release by another 25 days until April 18, Iranian President Hassan Rouhani announced on state TV Tuesday as the country’s death toll continues to rise. And while the country continues to blame the US for the outbreak, even after rejecting aide from President Trump, Iran also said Tuesday it does not need the help of Médecins Sans Frontières – aka Doctors without Borders – to set up makeshift hospitals as the country’s hardliners continue to oppose all forms of foreign help.

Spain, the worst-hit country in Europe after Italy, reported another 514 deaths on Tuesday, raising the death toll to 2,696, while it reported another 6.5k cases, bringing the total to 39,673. Madrid remains the worst-hit region, with 12,352 cases, 1,050 people in intensive care and 1,535 deaths. Spain overall is No. 3 in deaths, behind Italy and China.

The situation is getting so bad in Spain, that the bodies of COVID-19 victims are being delivered to the Palacio de Hielo ice rink, which is being used as a temporary morgue in Madrid. The regional government said it was a “temporary” measure to ease pressure on hospitals in Spain, which has recorded the third-highest death toll outside China and Italy.

In Belgium, there were 4,269 cases of the coronavirus on Tuesday, an increase of 526 in the past day. Deaths have also increased by 34, bringing the total to 122, and there have been 256 new hospital admissions in last 24 hours, lower than reported on Monday and Sunday. In nearby France, the country’s finance minister warned the economic impact of the coronavirus pandemic is “comparable only to the great recession of 1929,” Bruno Le Maire said Tuesday.

Following last night’s speech by UK PM Boris Johnson, where the PM declared a national lockdown and granted police the power to enforce it, another major commonwealth country has followed suit. On Tuesday Australia banned all but essential travel outside of the country after PM Scott Morrison announced similar lockdown measures as the number of cases in the country climbs. Ratings data suggest that nearly half of the UK watched Johnson’s televised speech last night, with ratings agencies giving the speech an 80% market share – roughly 40% of the UK population.

After European PMI data released Tuesday showed business activity in the region has crumbled this month, Goldman Sachs slashed its growth forecast for the eurozone, warning that the region’s coronavirus-crippled economy will see a 9% contraction this year, and that budget deficits are likely to mushroom in many countries. The US investment bank said in a note to clients on Tuesday morning that it expected the eurozone economy to shrink by 4% in the first quarter and 11.4% in the second. Its economists blamed “strict containment measures, anecdotal evidence of steep declines in domestic activity and a global recession” for the sharp decline in forecasts. Slovakia, one of the last countries in Europe to confirm cases of the virus, is set to pass a law allowing the use of data from mobile phones to ensure that citizens are observing the quarantine rules introduced to fight the coronavirus outbreak.

The Arab Gulf states are ramping up enforcement of curfews, quarantine and stay at home edicts as coronavirus cases rise to more than 1,900 in the region. Kuwait on Sunday evening arrested nine expatriates in a suburb of the capital for breaking a daily nationwide curfew, and other states including Saudi Arabia and Bahrain have imposed draconian measures.

Finally, as the WHO said early Tuesday, as the US takes the lead in the number of new cases, the organization warned that it might soon displace Italy as the “new epicenter” of the epidemic.

END

It sure look like Citibank and Deutsche bank are stuck with billions in unsaleable CMBS debt  related to casinos MGM Grand and Mandalay Bay in Las Vegas.  The entire property sector is no doubt in total disarray due to the virus shutting down many businesses.

(zerohedge)

 

As “Big Short 2” Explodes, Citi, Deutsche Bank Stuck With Billions In Unsaleable CMBS Debt

Earlier today we reported that amid a growing investor panic that the Wu Flu will be the final nail in the malls’ coffin, resulting in countless retail outlet closures and a collapse in rental payments crushing the commercial real estate space, the “Big Short 2.0” trade, shorting the CMBX 6 series which has an outlier exposure to malls, finally crashed vindicating long-term bears such as Carl Icahn and a handful of other hedge funds who were not stopped out over the past three years.

This collapse in broader CMBX indexes as “the big short 2.0” gradually comes to fruition, has led to spillover effects across the entire Commercial Mortgage-Backed space, resulting in the first hung deal.

Bloomberg reports that Citigroup and Deutsche Bank – both of which somehow tend to always be involved any time bad debt emerges – are among the bank lenders stuck with billions of dollars of debt backed by MGM Grand and Mandalay Bay properties in Las Vegas, as the coronavirus pandemic shutters casinos across the nation, hampering the banks’ ability to syndicate the loan amid a plunge in investor demand.

 

To help stem the spread of the coronavirus, MGM Resorts International, which continues to operate the MGM Grand and Mandalay Bay, has shuttered operations in Nevada and New Jersey.

A JV of MGM Growth Properties and Blackstone REIT used $3 billion of financing to purchase the casinos last month,and Citigroup, Deutsche Bank, Barclays Plc and Societe Generale had planned to syndicate $1.9 billion of the total as commercial mortgage-backed securities, or CMBS, according to Bloomberg. However, as gambling along with any other activity that involves social interactions has ground to a halt and it is unclear just when it will restart, the efforts to sell the CMBS were met with “tepid demand” and the sale was put on hold, leaving the banks stuck holding on to the billions in debt, although it was not clear now much of the loan each bank holds.

The CMBS facility has a 12 year maturity, with an anticipated repayment date in March 2030, and came to market with an interest rate of 3.308% per year. In light of the recent surge in CMBS yields and spread, that number will have to go sharply higher to spark investor interest unless somehow Jamie Dimon convinces the NY Fed to buy the whole piece.

Pricing of the CMBS was expected during the week of March 9, but obvious those plans collapsed.

When syndication deals are unsuccessful, banks typically retain loans on their balance sheets until market conditions improve and the deal can be brought back. During the financial crisis, banks ended up stuck with hundreds of billions in LBO and M&A bonds and loans and other pipeline jamming securities which they were unable to offload for years.

It remains to be seen just how bad the commercial real estate hit will be during the Global Coronavirus Crises, however if what we described yesterday in “”Widespread Panic” Hits Commercial Property Markets: Deals Implode, Renters Disappear, Businesses Shut Down”, it will get very ugly, fast. For those who missed it, here it is again.

* * *

 

As a result of the coronavirus outbreak, and the ensuing lockdown, the commercial property market has essentially frozen.

Buildings that were used for all types of purposes: offices, diners, restaurants, hotels – they’ve all been shut down. And industries like the travel industry are forgoing $1.4 billion per week in revenue, according to Bloomberg.

Source

The shutdown is also having an effect on apartment buildings and industrial properties. Nothing is off limits, and it’s sending the commercial property market into chaos.

Alexi Panagiotakopoulos, partner at Fundamental Income, a real estate strategy firm, said: “On the investor side, there’s widespread panic. There’s downward pressure on every aspect of every asset class.”

And there’s no way to value a market when you don’t have a bid and an offer – and you’re not sure when the market will “re-open”. Further, there’s no way to try and model the future value of such properties when everyone is unsure of what the real estate landscape will look like when everything is said and done.

Scott Minerd, chief investment officer at Guggenheim Partners said: “There will likely be long-lasting changes.”

It’s estimated that investment activity in the space could fall by 45% this year, which would be further than post-9/11 or the 2008 financial crisis.

The drumbeat of large deals has already gone silent. For example, Bloomberg reports that the Canada Pension Plan Investment Board’s planned sale of a 50% stake in the 900 million pound Nova development in London’s Victoria district collapsed on Friday. Similarly, Singapore-based ARA Asset Management Ltd., which was lined up to purchase the pension fund’s half of Nova, has balked on the deal.

Viacom also announced last week that it’s suspending its plans to sell the Black Rock building in Manhattan because potential buyers can’t visit the property. Simon Property Group’s proposed acquisition of Taubman Centers, Inc., is also now up in the air.

More than $13 billion in funds in the UK has been frozen in property funds while appraisers warn that the virus makes it impossible to assess their value. China’s office market has been devastated with plunging rents and spiking vacancy rates, which could climb as high as 28% next year in Shanghai, according to estimates.

REITs in the U.S. have been destroyed. Names like Brookfield Property Partners, which made a $15 billion bet on malls in 2018, expects “severe consequences” in coming weeks. The company’s CEO says it has $6 billion in undrawn credit lines and cash.

Matthew Saperia, an analyst at Peel Hunt, commented on the potential threat to landlords: “The implications could be far-reaching, but quantifying these is highly speculative at present.”

As the uncertainty grows, the level of credit available begins to shrink. Financing has dried up for hotel, mall and senior living projects and it’s estimated that up to 15% of loans on commercial property could default over the next couple of years if the recession continues.  The value of commercial mortgage-backed securities is collapsing…

Mark Fogel, CEO of Acres Capital, commented: “Nobody knows where deals will be priced and nobody knows just how long this issue is going to affect the world and how much it’ll affect the underlying collateral.”‘

And Minerd believes there won’t be a “back to normal” once this is all over: “I think there’s going to be a permanent change. People are more comfortable at home. Why do they need to commute?”

END

A MUST READ

(courtesy Pat Buchanan)

Must We Kill The Economy To Kill The Virus?

Authored by Patrick Buchanan via Buchanan.org,

“We cannot let the cure be worse than the problem itself,” tweeted the president on Sunday night, adding that, after the current 15-day shutdown, “we will make a decision as to which way we want to go.”

President Trump is said to be privately expressing a deepening concern at the damage the coronavirus shutdown is doing to the U.S. economy and debating whether it can be safely reopened.

Though castigated for his remark, Trump has a point.

 

The U.S. is rightly using extreme measures to meet the threat and control the virus that threatens the lives of millions of Americans, with the elderly sick foremost among them. And we need to do so without killing the economy upon which scores of millions of other Americans depend.

Clearly, America was unprepared for this pandemic.

And there will be time enough to assess responsibility for the lack of surgical masks, medical gowns, rubber gloves, respirators, ventilators and hospital beds.

The immediate imperative is to produce those beds and that equipment and get it delivered to doctors, nurses and hospital staff, the front-line troops in the battle to control the virus.

However, during this shutdown, all “nonessential businesses” are being closed and their workers sent home to shelter in place and to keep “social distance” from friends and neighbors to minimize the risk of spreading this easily transmissible virus.

Unfortunately, what is “nonessential” to some — bars, restaurants, hotels, stores, cruise ships, tourist sites, shops, malls — are places of employment and indispensable sources of income for millions of other Americans.

Close the businesses where these Americans work and you terminate the paychecks on which they depend to pay the rent and buy the food and medicines they and their families need to shelter and live. And if the salaries and wages on which workers depend are cut off, how are these millions of newly unemployed supposed to live?

How do those who follow the instructions of the president and governors to remain in their homes get their prescriptions filled and buy the food to feed their families?

How long can the shutdown be sustained if the necessities of life for the unemployed and unpaid begin to run out? Is it necessary to create an economic and social crisis to solve the medical crisis?

“We had to destroy the village in order to save it,” was a remark attributed to a U.S. Army officer in the Vietnam War. Must we cripple or destroy the economy to rescue the American nation from the coronavirus crisis of 2020?

Then there is the matter of time. Many Americans can survive on what they have on hand for two or four weeks. Far fewer can survive without income for two or four months.

If we shut down the economy, what will we have when the medical crisis passes, be that in May, June, July, August or September?

Will all those nonessential businesses we put to sleep come back to life?

The free market system that is the legacy of Hamilton and the Founding Fathers is the world’s best design for the distribution of goods and services and ensuring prosperity. And in a population where life expectancy is decades beyond what it was in the early 20th century, there are government programs to provide the necessities of life for those who can no longer access or afford them.

But businesses are needed to deliver the goods.

And if, by government command, America’s free economy is partly shut down as unessential in this medical crisis, the government could be responsible for imposing the conditions that lead to social disorder.

At some point, the country is going to have to open up the supply chains and take the risks to let the market work to provide food — or people will engage in panic buying, hoarding and using any means to get what they need for themselves and their families.

Reports of folks in this heavily armed nation stocking up on guns and ammunition suggest a widespread apprehension of what may be coming.

If the medical crisis is allowed to induce an economic crisis that leads to a social crisis, the American political system, our democratic system, may itself be severely tested.

Lest we forget: In the greatest crisis in this nation’s history, in which the issue was whether the American Union would be severed into two nations, Abraham Lincoln suspended the right of habeas corpus, shut down state legislatures, closed newspapers, jailed journalists and was prepared to arrest the chief justice. And for the dictatorial measures he took, and for waging the bloodiest war in U.S. history, against fellow Americans, Lincoln is now regarded by many as our greatest president.

END

Chutzpah plus!! Boeing demands a 60 billion taxpayer bailout even though they spent 100 s of billions on stock buyback

Let them fail…or let me raise money through a bond offering!

(zerohedge)

Boeing, Which Demands A $60BN Taxpayer Bailout, Refuses To Give US An Equity Stake

Here is a snapshot of America’s bailout culture: beggars, and those demanding bailouts, can not only be choosers, but can dictate under what terms they are bailed out.

With populist anger growing in response to Boeing’s demands for a taxpayer-funded bailout (or the employees get it) after it spent over $40BN on buybacks making its shareholders and management richer while burying the company and rank and file employees under a record $25BN in debt, many have asked what form the Boeing bailout will take, and whether the US taxpayers will also be entitled to some or all of the upside in the company they will soon be asked to bailout. In other words, will the US get an equity stake?

We got the answer moments ago, when the company’s new CEO Dave Calhoun confirmed that the disgraced airplane maker – which until recently was best known for making airplanes that were “designed by clowns, who in turn are supervised by monkeys”, at least until it came crawling and demanding a non-recourse bailout -said Boeing does not want the U.S. government to take a stake even as the planemaker seeks assistance to grapple with effects from the new coronavirus.

“I don’t have a need for an equity stake,” Calhoun said in an interviewTuesday with Fox Business. “I want them to support the credit markets, provide liquidity. Allow us to borrow against our future.”

And just in case it wasn’t clear that Boeing is confident it has all the leverage, he added “If they force it, we just look at all the other options and we’ve got plenty of them.”

Well of course he doesn’t want to give equity to those who bail Boeing out: that would cripple his comp for years which would be determine by some Treasury clerk. Instead, what Boeing really wants is to repackage a bailout with no loans and lots of grants (i.e., direct investments) as merely “providing liquidity.”

Note, again, this is the same company that blew $50 billion in “liquidity” repurchasing its stock so that management, which includes Mr. Calhoun, could cash out of their options at record high prices, and pocket millions. And now that the pillage is over, it’s time for a bailout, one where taxpayers inexplicably end up with… nothing?

But nobody wants to see Boeing in Chapter 11, and Calhoun said that if there is “no government support” in the credit markets, Boeing’s cash burn will accelerate. And if this goes on for 8 months, well, that could be a problem, Calhoun said during a separate interview Tuesday on CNBC.

In any case, we now wait to see what form that Boeing bailout will take. Congress has struggled to come to terms on a massive stimulus package to aid businesses and individuals struggling with the economic fallout of the outbreak, although House Speaker Nancy Pelosi said Tuesday she was confident a deal would be reached.

Boeing, which is seeking $60 billion in “aid” – whatever that means – for the aerospace industry, said Monday that it would shut down its Seattle-area manufacturing hub for two weeks after a worker died of coronavirus complications. The company suspended stock buybacks and dividend payments only late last week, while Calhoun and Chairman Larry Kellner have given up all pay until year-end. It is unlcear why Clahoun and Kellner shouldn’t have all their bonuses paid during years they were repurchasing stock clawed back.

Boeing shares surged 16% to above $123 on Tuesday as the market rallied on signs that Congress was near agreement on a stimulus bill. Boeing plunged 68% this year through Monday, the worst performance on the Dow Jones Industrial Average.

end

And now, the next guys at the trough  Amtrak

(zerohedge)

 

Pigs At The Trough: Amtrak Is Latest Company Begging For Bailout As Ridership Plunges 92%

Welcome to the latest episode of our ongoing “Pigs At The Trough” series, documenting how companies who have taken zero financial precautions over the last decade are now rushing to Uncle Sam and the American taxpayer for their “do-overs”.

Next up on the list is Amtrak, who is now apparently banking on a $1 billion bailout, according to the Wall Street Journal.

Like other major businesses, everybody staying home has had a profoundly and disproportionately negative affect on Amtrak, which has seen its ridership plummet. And it apparently comes just before the railroad was going to eek out a profit for the first time in its 50 year history.

That’s a shame. Perhaps the company should have focused on turning a profit at some point over the last 5 decades a little quicker?

But we digress. Bookings on the company’s Acela have fallen 99% through the end of last week as total ridership has fallen 92% across the national railroad system. 

CEO Richard Anderson said: “There’s really no one riding the Acela. There’s no point operating empty trains.”

High speed service between Boston and Washington has been shut down, along with 40% of the railroad’s capacity on the Northeast Corridor. The company is running just 14 trains per day on the Northeast Corridor.

Anderson said on Friday the company needs $1 billion in addition to its annual operating subsidy and that the company is now projecting an $840 million loss for the year ending September 30. That loss will come despite expense reductions of $110 million to $150 million.

Those expense cuts include corporate matching of 401(k) contributions being suspended and the top three bands of management taking pay cuts of 20% or more. Workers are also being asked to take voluntary unpaid leave, as layoffs inevitably loom.

Anderson said: “It’s as dramatic a falloff as you’d see in any business. So we are working very hard to make up $1 billion in cash right now.”

Mark Kenny, the general chairman of the union representing Amtrak engineers said: “We are still a long way from getting back to any degree of normalcy, and things are very likely to deteriorate further before getting better.” 

 

The company is reportedly working with congress to deal with an ”unprecedented reduction in demand and ridership, our ongoing service adjustments and our future financial needs so that we come out of this crisis ready to continue serving the nation.”

A bill making its way through congress right now includes $1.018 billion for Amtrak.

Amtrak spokeswoman Christina Leeds said: “Additionally, it is vital that we continue to advance capital projects that are critical to the safety and long-term operation of passenger rail.”

Meanwhile, DJ Stadtler, the railroad’s chief administrative officer told employees last week: “Amtrak doesn’t have the funding to cover pay and benefits for almost 19,000 employees for an indefinite period of time, during a crisis that is going to cause the company to lose hundreds of millions of dollars. It doesn’t feel good to say that, but this is the hard reality that we and most other employers are facing now. “

end

Shades of 2007-2008//mortgage backed securities are cascading southbound under crushing margin calls

(zerohedge)

$14 Billion Commodity Broker Facing Crushing Margin Calls After Mortgage Hedges Go Terribly Wrong

We warned last week that, despite The Fed’s unlimited largesse, there is trouble brewing in the mortgage markets that has an ugly similarity to what sparked the last crisis in 2007.

For a sense of the decoupling, here is the spread between Agency MBS (FNMA) and 10Y TSY yields…

At that time, WSJ’s Greg Zuckerman reports that the AG Mortgage Investment Trust, a real-estate investment trust operated by New York hedge fund Angelo, Gordon & Co., is among those feeling pressure, the company said, and, in the latest sign of turmoil in crucial areas of the credit markets, is examining a possible asset sale.

“In recent weeks, due to the turmoil in the financial markets resulting from the global pandemic of the Covid-19 virus, the company and its subsidiaries have received an unusually high number of margin calls from financing counterparties,” AG Mortgage said Monday morning.

Well, they are not alone.

As Bloomberg reports, the $16 trillion U.S. mortgage market – epicenter of the last global financial crisis – is suddenly experiencing its worst turmoil in more than a decade, setting off alarms across the financial industry and prompting the Fed to intervene. But, as we previously noted, it is too late and too limited (the central bank is focusing on securities consisting of so-called agency home loans and commercial mortgages that were created with help from the federal government).

And the aftershocks of a chaotic rush to offload mortgage bonds are spilling over to regional broker-dealers facing mounting margin calls.

Flagstar Bancorp, one of the nation’s biggest lenders to mortgage providers, said Friday it stopped funding most new home loans without government backing. Other so-called warehouse lenders are tightening terms of financing to mortgage providers, either raising costs or refusing to support certain types of home loans.

One prominent mortgage funder, Angel Oak Mortgage Solutions, said Monday it’s even pausing all loan activity for two weeks. It blamed an “inability to appropriately evaluate credit risk.”

Things escalated over the weekend, according to Bloomberg,  when some firms rushed to raise cash by requesting offers for their bonds backed by home loans.

“I ran dealer desks for over 20 years,” said Eric Rosen, who oversaw credit trading at JPMorgan Chase & Co., ticking off the collapse of Long-Term Capital Management, the bursting of the dot-com bubble some 20 years ago, and the 2008 global financial crisis. “And I never recall a BWIC on a weekend.”

And now, commodity-broker ED&F Man Capital Markets has been hit with growing demands to post more capital to cover souring hedges in its mortgage division, according to people with knowledge of the matter.

The requests are coming from central clearinghouses and exchanges, forcing the firm to put up almost $100 million on Friday alone, the people said, asking not to be identified because the information isn’t public.

ED&F, whose hedges exceed $5 billion in net notional value, has been in discussions with the clearinghouses and has met all the margin calls, one of the people said.

As a reminder, ED&F Man Capital is the financial-services division of ED&F Man Group, the 240-year-old agricultural commodities-trading house.

It has about $14 billion in assets and more than $940 million in shareholder equity, according to the firm’s website.

Concern about losses in mortgage bonds could feed turmoil in the overall mortgage market that ultimately drives up borrowing costs for consumers looking to buy homes and refinance. Mortgage rates have risen in recent weeks, despite a fall in benchmark rates.

“The Fed is going to do whatever it takes to restore normal functioning in the market,” said Karen Dynan, a Harvard University economics professor who formerly worked as a Fed economist and senior official at the Treasury Department.

“But we need to remember that the root of the problem is that financial institutions and investors are desperately seeking cash, so in that sense the Fed’s announcement is not everything that needs to be done.”

All of which sounds ominously similar to July 2007, when two Bear Stearns hedge funds (Bear Stearns High-Grade Structured Credit Fund and the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund) – exposed to mortgage-backed securities and various other leveraged derivatives on same – crashed and burned and started the dominoes falling…

end
THEN THIS:

Mortgage Massacre Latest Casualty: $10 Billion m-REIT MFA Can’t Meet Margin Calls

First, its was AG Mortgage Investment Trust which on Friday said it failed to meet some margin calls and doesn’t expect to be able to meet future margin calls with its current financing. Then it was TPG RE Finance Trust which also hit a liquidity wall and could not repay its lenders. The, on Monday it was first Invesco, then ED&F Man Capital, and now the mortgage mayhem that erupted as a daisy-chain of mortgage REITs suddenly imploded, has taken down MFA Financial, whose crashing stock was halted after the company reported that “due to the turmoil in the financial markets resulting from the global pandemic of the COVID-19 virus, the Company and its subsidiaries have received an unusually high number of margin calls from financing counterparties, and have also experienced higher funding costs in respect of its repurchase agreements.”

As a result of this liquidity run, at the close of business on March 23, 2020, “the Company did not meet its margin calls.”

Further, on March 23, 2020, the Company notified its financing counterparties that it does not expect to be in a position to fund the anticipated volume of future margin calls under its financing arrangements in the near term as a result of market disruptions created by the COVID-19 pandemic.

How much money are we talking about here? Approximately $10 billion: “The company’s aggregate obligations under its various financing arrangements is about $9.5 billion.”

And since its only other alternative is immediate Chapter 7, the company said that it is in discussions with its financing counterparties with regard to entering into forbearance agreements.

Why is the m-REIT house of cards suddenly tumbling? The simplest answer is that the market is suddenly freaking out that as a result of the coronavirus depression, homeowners will not be able to pay down their mortgages, created a liquidity cascade that goes from debtor, to the various intermediary entities, all the way to the original creditors. And the m-REITs and various other mortgage arrangers, which are some of the key intermediaries, are caught smack in the middle.

As Bloomberg explains, investors in MBS are suddenly facing the perfect storm of collapsing asset values, a frozen market  and panicked client redemptions as “holders of mortgage-backed securities are fielding redemption requests from clients, margin calls from jittery counterparties and drops in their valuations, forcing the funds to solicit offers on billions in assets in emergency sales over the weekend” in the form of numerous BWICs as highlighted earlier.

“The pain continued Tuesday with Invesco Mortgage Capital, a real estate investment trust that invests in mortgage-backed securities, also saying it’s no longer able to fund margin calls. If forced sales accelerate, bond prices could fall and put pressure on other investors to mark down or sell their holdings too.”

Besides crushing those long various MBS, that fallout from the ongoing liquidity squeeze is popping up in far more bizarre ways across the property market, including higher interest rates for home loans “leading listing companies such as Zillow to suspend buying programs and prompting industry players from real estate brokers to mall owners to plead directly to President Donald Trump for relief.”

While the Fed did step in early on Monday, when it surprised markets with its announcement that it is buying unlimited amounts of Treasury bonds and mortgage securities to keep borrowing costs low, the Fed’s intervention has limits, with the “central bank focusing on securities consisting of so-called agency home loans and commercial mortgages that were created with help from the federal government.”

There are about $10 trillion of U.S. mortgage-backed securities, of which about 14% don’t meet that criteria, according to the Securities Industry and Financial Markets Association. According to Bloomberg calculations, when that total is compared to the Fed’s of about $16 trillion in total U.S. mortgages, “the central bank’s announcement suggests that roughly half of all property loans will be eligible for purchase.

And while the Fed is trying to restore order, so far all there is, is panic:

Flagstar Bancorp, one of the nation’s biggest lenders to mortgage providers, said Friday it stopped funding most new home loans without government backing. Other so-called warehouse lenders are tightening terms of financing to mortgage providers, either raising costs or refusing to support certain types of home loans. One prominent mortgage funder, Angel Oak Mortgage Solutions, said Monday it’s even pausing all loan activity for two weeks. It blamed an “inability to appropriately evaluate credit risk.”

Also retreating: A new generation of sophisticated home flippers, who use data and debt to buy and sell homes in quick order. Zillow said Monday it has stopped purchasing homes, following rivals SoftBank-backed Opendoor and Redfin Corp. “No one can say what a fair price is right now, so we’re not making any instant offers,” Redfin Chief Executive Officer Glenn Kelman said last week.

While in normal times banks, who benefit from the Fed’s QE would gladly step in and buy from this firesale, these are anything but normal times, as banks are now also facing liquidity pressures – such as clients drawing down on tens of billions in mortgages – making it hard for them to step in by making or purchasing mortgages others are dumping.

As Bloomberg concludes, for Wall Street, the moment that crystallized the extent of problems in mortgage markets came Sunday, when some firms rushed to raise cash by flooding bank clients with BWICs requesting offers for their bonds backed by home loans. “Eager sellers included investor AlphaCentric Income Opportunities Fund and Annaly Capital Management Inc., a mortgage REIT.”

“I ran dealer desks for over 20 years,” said Eric Rosen, who oversaw credit trading at JPMorgan Chase & Co., ticking off the collapse of Long-Term Capital Management, the bursting of the dot-com bubble some 20 years ago, and the 2008 global financial crisis. “And I never recall a BWIC on a weekend.”

Eric may not, but here at Zero Hedge we do recall weekend BWICs: they took place on September 15, 2008. The next day Lehman filed for bankruptcy.

END

Body bags just keep on coming:

Neiman Marcus in bankruptcy talks with lenders: Bloomberg Law

(Reuters) – Luxury retailer Neiman Marcus Group Inc is in talks with lenders to file for bankruptcy as it struggles to ease its $4.3 billion debt load, Bloomberg reported on Monday, citing people familiar with the matter.

Neiman Marcus has been struggling with the debt load, due mainly to its 2013 leveraged buyout by Ares and Canadian public pension fund CPPIB from other private equity firms.

Bloomberg reported Neiman Marcus has held initials talks with lenders about a potential bankruptcy loan that would help keep the company running while it works out a recovery plan.

Neiman Marcus was not immediately available for a comment.

-END-

SPREADING LIKE CRAZY ON RIKERS ISLAND

(zerohedge)

Situation On Riker’s Island “Unimaginably Bad” As COVID-19 Tears Through Prison

This weekend we reported that Harvey Weinstein had tested positive for coronavirus just days after being transported out of Riker’s Island prison in New York, where 38 people had been infected with COVID-19 and another 58 inmates were under observation.

On Monday, Brooklyn public defender Scott Hechinger reported that conditions at the notorious prison are “unimaginably bad” thanks to the extremely tight quarters, lack of sanitation, and unavailability of protective medical gear.

Scott Hechinger

@ScottHech

PLEASE READ: Conditions on Rikers are unimaginably bad. My colleague has spoken to a few people trapped inside. What they told her is horrifying. Unless @NYGovCuomo, @NYCMayor, & all DAs do something ASAP, we’re looking at mass death. What they’re reporting:

See the rest below, or click above tweet to scroll through thread:

  • People trapped on Rikers right now are sleeping close enough to reach out and touch the next person.
  • People trapped on Rikers right now are being served food on dirty food trays.
  • There is one toilet for every 29 people trapped on Rikers Island right now.
  • People jailed on Rikers right now who are asking to be tested are not getting tested.
  • While eating, people on Rikers are forced to sit four to a table. No possibility of social distancing while sleeping or eating.
  • Those serving the food on Rikers are not wearing masks (and, therefore, possibly contaminating the food). The food also is coming in from other buildings increasing the likelihood of contamination.
  • After one of the people in their dorm tested positive for Coronavirus and was taken out, Rikers staff did not clean the general areas.
  • People are being housed with others with flu-like symptoms and there is no recourse. When people ask to be transferred to correctional health services, they are being told that there aren’t enough escorts.
  • Just spent the last hour talking to another colleague about Rikers conditions. “It is like a fucking slave ship. It makes me want to fucking cry. They can’t even wash their hands. It is insane that this day & age we treat human beings this way. This is shameful.
  • We heard from our social worker colleagues today that videoconferences w/ the people we represent on Rikers have now been suspended indefinitely. Were not allowed on the island. The only way we had to communicate & access information on the inside is now gone. I’m really worried.
  • Right now, there are 5,294 people jailed on Rikers. Mayor de Blasio today announced he agreed to release 75 people. He’s looking at a list (we have no idea who is on this list) of a couple hundred.
  • Imagine the feeling you have these days when you go to the grocery store. I’m wearing gloves & a mask. Even then, I’m keeping my distance. Social distancing in jail is impossible. Sanitation is non-existent. No gloves. No mask. Just hundreds of people coughing on each other.
  • 5,294 humans are locked up on Rikers already at extreme risk of contracting this deadly illness. With no precautions whatsoever. Nearly guaranteed to be exposed. And spreading that deadly illness to guards & other staff, who cycle in & out daily. Our leaders are doing NOTHING.
  • While we are taking steps to prevent COVID-19 infection in our community to stay inside, social distance, and be vigilant with sanitization, these efforts will be worthless if we don’t act rapidly to prevent infection in Rikers.
  • To stem the spread of this deadly virus, we must drastically reduce the number of people in jail and limit new admissions to exceptional circumstances. And we must do so now. This is a matter of life and death.
  • Significantly fewer people in jail (not 75, not hundreds, but thousands) will: Limit spread of COVID-19 infection among people in custody & those who work there. Minimize people in custody who will need medical care. Decrease density of housing areas for people who remain.

Scott Hechinger

@ScottHech

NJ just took decisive action & ordered release 1000 people from jail yesterday: Those held on technical (non-criminal) probation violations & those serving less than a year for low level offenses. The least every jurisdiction should be doing. A no brainer. https://www.nytimes.com/2020/03/23/nyregion/coronavirus-nj-inmates-release.html 

The statewide order was described as a “landmark agreement.”
  • Governor Cuomo could do the same as New Jersey right now. On Rikers: 500+ are serving short jail sentences for low level offenses. He could grant clemency to all. 666 are jailed for technical parole violations. He could order parole to release them. Thats 1000+ like that.
  • Note how I’m not bringing up those jailed pretrial, presumed innocent, charged w/ misdemeanors & non-violent felonies. Why? Bail reform just enacted in January 2020 has kept 1000s charged w/ these low level offenses home w/ their families, jobs & homes, & free from Coronavirus.
  • But what about those jailed pretrial on “violent” felonies? Not one of them would be eligible for death if ever convicted. And no one. I repeat: NO ONE, deserves to be infected by a deadly virus by virtue of the deliberate indifference of those w/ the power to do something.
  • I’m exhausted.
  • I have to wrap this up.
  • If we all have, and most critically right now, our leaders, have the courage to do what is necessary and what is right, at some point, hopefully soon, this pandemic will be behind us. But we cannot then just go back to business as usual.
  • The spread of Coronavirus has exposed the inhumanity, waste, and danger of a criminal legal system that has completely ignored humanity and public.
END

iv) Swamp commentaries)

 

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

On Monday, the Fed waded into the Rubicon to save the stock & credit markets (& Dems) from collapse.

After Pelosi and Schumer blew up the bipartisan-negotiated Covid-19 relief bill, ESMs went limit down.  The world expected the Senate to pass the bill.  So, the Fed once again enabled irresponsible and reckless lawmakers to shirk their responsibilities with a mind-addling bailout scheme.

The Fed’s latest monetization scheme, which sent gold soaring 5%

  • Unlimited, infinite QE for Treasuries, MBS, Munis and Investment-Grade bonds & related ETFs
  • Will buy $250B of MBS and $375B of Treasuries this week
  • A TALF to monetize ABS (Asset-backed stuff), including student loans
  • A $300B facility to bailout corporations, with another $30B from Treasury’s ESF
  • Expand Money Market QE (MMLF) to include ‘wider range of securities’, including CDs
  • Expand the Commercial Paper QE
  • Will soon establish a small & medium-sized business bailout facility
  • Will lower the interest rate on its repo operations to 0% from 0.1%

Only stocks, low-grade corp. debt, commodities and bad NFL contracts remain to be QE-ed by the Fed.

The Fed said corporations who defer interest payments for its new lending program will not be allowed to repurchase shares or pay dividends.

Federal Reserve announces extensive new measures to support the economy

It would purchase at least $500 billion of Treasury securities and at least $200 billion of mortgage-backed securities. In addition, the FOMC will include purchases of agency commercial mortgage-backed securities in its agency mortgage-backed security purchases…will provide up to $300 billion in new financing. The Department of the Treasury, using the Exchange Stabilization Fund (ESF), will provide $30 billion in equity to these facilities…Establishment of two facilities to support credit to large employers – the Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance and the Secondary Market Corporate Credit Facility (SMCCF) to provide liquidity for outstanding corporate bonds…The TALF will enable the issuance of asset-backed securities (ABS) backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration (SBA), and certain other assets….expanding the Money Market Mutual Fund Liquidity Facility (MMLF) to include a wider range of securities, including municipal variable rate demand notes (VRDNs) and bank certificates of depositexpanding the Commercial Paper Funding Facility (CPFF) to include high-quality, tax-exempt commercial paper as eligible securities…

    In addition to the steps above, the Federal Reserve expects to announce soon the establishment of a Main Street Business Lending Program to support lending to eligible small-and-medium sized businesses, complementing efforts by the SBA…  https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm

Details emerged as to why Pelosi and Schumer scuttled the widely anticipated bipartisan Covid-19 bailout bill.  As reported by a few outlets, Dems intend to exploit the crisis to advance their liberal “vision”.

@guypbenson: Via senior GOP aide, Schumer/Pelosi now pushing these demands amid pandemic-fueled economic collapse: 1) Unprecedented collective bargaining powers for unions; 2) Increased fuel emissions standards for airlines; 3) Expansion of wind and solar tax credits

    Source: “Not only are these completely unrelated to the coronavirus epidemic, they could prevent companies from participating in the loan programs altogether—directly causing unnecessary layoffs.”

    Quote over the weekend: “This is a tremendous opportunity to restructure things to fit our vision,” Majority Whip James Clyburn (D-S.C.) told lawmakers, according to a source on the call.

https://thehill.com/homenews/house/488543-house-democrats-eyeing-much-broader-phase-3-stimulus

@DougAndres: McConnell on new Dem asks: “Tax credits for solar energy and wind energy. Provisions to force employers to give special new treatment to Big Labor. And listen to this — new emissions standards for the airlines. Are you kidding me?!”

@bennyjohnson: McConnell: “Democrats are filibustering programs to keep people on the payroll… a huge expansion of unemployment insurance, which they themselves negotiated and put into the bill? Hundreds of dollars extra per week for laid-off workers on top of existing unemployment benefits?”

The Democrat House coronavirus spending bill allows roughly 500,000 college graduate visa-workers from China, India, and elsewhere to stay in their U.S. jobs, regardless of job losses by American graduates in the economic meltdown…

https://www.breitbart.com/economy/2020/03/22/h-1b-lobby-group-house-coronavirus-bill-extends-work-permits-all-visa-workers/

GOP Rep Meadows’ staffer @_WilliamsonBen: How in the WORLD is this quote from the Democrat Majority Whip, Jim Clyburn, not front and center on every news update RE: this Phase 3 delay.  “This is a tremendous opportunity to restructure things to fit our vision.”

WSJ’s @KimStrassel: I hope Republicans put out names of those Dem senators who provided advice and proposals (& support) for this bill, only to duck & run when Warren and progressive crew complained…

McConnell set the procedural vote for the Covid-19 relief bill to occur at 9:45 AM Monday.  McConnell on Sunday night: “Fifteen minutes after the markets open and see whether there’s a change of heart.”

ChadPergram: On the flr, McConnell accuses Schumer/Pelosi “of playing Russian roulette with the market.” McConnell says Schumer prevented an early re-vote on the coronavirus pkg. Says Schumer’s objection “will allow the market to be rattled until noon”

   Schumer on the flr. Says the coronavirus phase 3 bill lacked money to reimburse state/local gov’ts. Says “I think there’s a good chance we will get an agreement.” He objects to McConnell’s request to meet early and have a re-vote in the morning.  Senate out until noon ET on Monday. No agreement. McConnell fails to lock in re-vote on motion to proceed on coronavirus bill. He wanted to vote at 9:45 am ET, just after the markets opened. But there is no agreement yet.

National Review’s @McCormackJohn: Schumer now calling Senate bill a “Republican-only bill.” Schumer Sunday: “to my delight and surprise there has been a great deal of bipartisan cooperation”

Real Estate Billionaire Barrack Says Commercial Mortgages on Brink of Collapse

Barrack… predicted a “domino effect” of catastrophic economic consequences if banks and government don’t take prompt action to keep borrowers from defaulting… a chain reaction of margin calls, mass foreclosures, evictions and, potentially, bank failures due to the coronavirus pandemic and consequent shutdown of much of the U.S. economy… the impact could dwarf that of the Great Depression. https://www.bloomberg.com/news/articles/2020-03-22/colony-s-barrack-says-commercial-mortgages-on-brink-of-collapse

ESMs rallied on Sunday night on this: @realDonaldTrump: WE CANNOT LET THE CURE BE WORSE THAN THE PROBLEM ITSELF. AT THE END OF THE 15 DAY PERIOD, WE WILL MAKE A DECISION AS TO WHICH WAY WE WANT TO GO!

Trump is giving notice that the US economy cannot be allowed to collapse.  This could avert a depression.  MSM and politically-motivated doom purveyors should not force America into a depression – or worse.  DJT and others know that Americans will not tolerate confinement for long – unless fatalities soar.  A widespread rebellion against Draconian government shutdowns and confinement could unleash rioting far worse and far more pervasive that what occurred in the Sixties.

@lloydblankfein: Extreme measures to flatten the virus “curve” is sensible-for a time-to stretch out the strain on health infrastructure. But crushing the economy, jobs and morale is also a health issue-and beyond. Within a very few weeks let those with a lower risk to the disease return to work.

On Monday: Trump Weighs Easing Stay-at-Home Advice to Curb Economic Rout

The advice of the medical professionals has so far formed the foundation of the White House’s coronavirus strategy, frustrating some of Trump’s economic and political advisers who think the president shouldn’t lean so heavily on them, according to two people familiar with the matter…

    Fauci acknowledged that aggressive public health measures can cause too much harm to the economy and “unintended consequences” in an interview with Science magazine published Sunday.

    “There is a discussion and a delicate balance about what’s the overall impact of shutting everything down completely for an indefinite period of time,” he said. “If you knock down the economy completely and disrupt infrastructure, you may be causing health issues, unintended consequences, for people who need to be able to get to places and can’t. You do the best you can.”…

https://www.bloomberg.com/news/articles/2020-03-23/trump-weighs-easing-stay-at-home-advice-to-curb-economic-rout

@guypbenson: NY Gov Cuomo: We have to start thinking about how we restart the economy. This was the thrust behind POTUS tweet last night, too. Excruciating needle to thread: Slowing/beating contagious pandemic on one hand, preventing economic catastrophe on the other. What/when is the tipping point?

@MZHemingway: Our political leaders and their media enablers are truly awful at exit plans. Is it decades of indefinite war that make them think they can do an indefinite suppression model? No reason economy would improve without an exit strategy, much less a quick one.

@johncardillo: These closures and what we’re doing to our economy is sheer insanity.  At this point in its life cycle H1N1 was far worse. This is a power grab pushed by media and statists. Enough is enough. Time for Americans to speak up and demand this all end.

@JoeConchaTV: New York City mortality rate has dropped to .92 percent. Compare to Italy, where its above 9 percent.

States and cities that shutdown businesses will be facing copious and massive lawsuits by individuals and companies that were harmed by shutdowns.

ESMs and stocks rallied sharply on the Fed’s massive new QE schemes.  However, the rally ended within 21 minutes.  This had to shock and alarm the Fed.  At midday stocks and ESMs surged on:

Congress is close to a deal on coronavirus stimulus bill, Schumer says

https://www.cnbc.com/2020/03/23/coronavirus-updates-talks-on-senate-stimulus-bill-continue-vote-pushed-to-noon.html

@ChadPergram [before Monday vote]: Rare to see such over anger on the Senate flr as Dems/GOPers verbally brawl with one another over the coronavirus bill. Tension really high inside the Capitol now

  McConnell: Are you kidding me?  This is not a juicy political opportunity. This is a national emergency.

 

But, once again, Senate Democrats blocked the relief bill.  ESMs and stocks tumbled.

 

Democrats block key vote on $2 trillion coronavirus bill as Senate floor erupts with partisan anger

https://www.washingtonpost.com/us-policy/2020/03/23/trump-coronavirus-senate-economic-stimulus/

@lisaabramowicz1: While another stimulus vote failed, markets are still off session lows. Democratic Senator Schumer said he has had “almost continuous negotiations” with Mnuchin, that they’re close to reaching a deal and his goal is to do so today.

@seanmdav: Trump needs to fire Steve Mnuchin and possibly Anthony Fauci and Robert Redfield. The former for completely botching the stimulus negotiations, and the latter for so mismanaging the U.S. response to the Wuhan virus spread that economic suicide became a preferred remedy.

@ChadPergram: Senior Senate GOP leadership source on where we stand with the coronavirus bill: “As long as the White House [Mnuchin] keeps the checkbook open, Democrats will keep taking things

@amber_athey: A GOP aide tells me Sen. Chuck Schumer is “holding hostage” $50 billion in farm aid on the coronavirus stimulus bill.  Is just the latest item Democrats have raised objections to as they unleash “laundry list” of unrelated policy inclusions

@KevinWGlass: The Senate GOP bill that Dems claimed was bloated with unrelated handouts to special interests is 580 pages long. The Pelosi bill that’s now circulating is more than 1200  pages long.

[Pelosi’s bill includes a provision on corp. board diversity & pay & the return of ‘Obamaphones’]

Here is the Far-Left Wish List Nancy Pelosi Just Blew Everything Up For

-Publication of corporate pay statistics by race and race statistics for all corporate boards

-A bail out on all current debt at the Postal Service

-Required early voting

-Required same day voter registration

-Provisions on official time for union collective bargaining

-Full offset of airline emissions by 2025

-Publication and reporting of greenhouse gas statistics for individual flights

-Retirement plans for community newspaper employees

-Federal $15 minimum wage

-Permanent paid leave   [Also, retirement plans for community newspaper employees per Sen. Cotton.]

https://townhall.com/tipsheet/katiepavlich/2020/03/23/here-are-the-details-of-nancy-pelosis-leftist-wish-list-and-it-has-nothing-to-do-with-wuhan-coronavirus-n2565543

The afternoon declined stalled at 15:30 ET on a report that Schumer and Mnuchin were meeting, again.  ESMs and stocks rallied during the final 15 minutes of the session.  A 40-handle ESM decline occurred during the final 4 minutes of NYSE trading – evidence of a pump & dump scheme to markup stuff.

WSJ’s @KimStrassel: House provisions conditioning loans on minimum wage/permanent paid leave aren’t just extortion, they will make crisis worse. They will discourage companies from taking loans–preferring to shed costs (workers) short-term than accept long-term hurdles to recovery.

GOP @RepGosar: When Democrats call this a slush fund, they’re lying to you.

BBG’s @jeannasmialek: Lots of misconceptions circulating about that $500 billion fund in the Senate bill.  (1) $75b goes to air carriers and security-tied co’s. Mnuchin has a lot of discretion over how that’s used.  (2) $425b would stand up Fed facilities. Mnuchin has much less discretion there.

Ned Nikolov, Ph.D. @NikolovScience: A just published peer-reviewed paper in the International Journal of Antimicrobial Agents confirms the concerns I’ve expressed earlier today: The risk from Coranavirus (a.k.a. SARS-CoV-2) is likely overestimated: https://sciencedirect.com/science/article/abs/pii/S0924857920300972

   Hence, the economic shutdown is UNWARRANTED

Germany’s infection curve could be flattening off, public health chief says   https://www.reuters.com/article/us-health-coronavirus-germany-curve/germanys-infection-curve-could-be-flattening-off-public-health-chief-says-idUSKBN21A19Q

When virus recedes, GOP plans to unleash sweeping health care reform plan – Protecting pre-existing conditions, ensuring easier generics, buying insurance across state lines and empowering doctors are key tenets… Ending the practice of drug companies paying generic manufacturers to make cheaper versions of popular but expensive medicines… Ending hidden/surprise hospital, testing and doctor charges that arrive later in the mail… Getting rid of middlemen in the medical supply chain who drive up the costs of drugs, procedures and equipment or interfere in treatment decisions…

https://justthenews.com/politics-policy/health/when-virus-recedes-republicans-plan-unleash-sweeping-health-care-reform-plan

@charliekirk11: Florida Man is reporting a full recovery from the China Virus after being given a dose of the anti-Malarial drug President Trump has advocated for.  He was near death—had already said goodbye to his family.  And the drug worked. Is this the “false hope” CNN reported on?

 

Florida man with coronavirus says drug touted by Trump saved his life

After more than a week, doctors told him there was nothing more they could do and, on Friday evening, Giardinieri said goodbye to his wife and three children…

https://nypost.com/2020/03/22/florida-man-with-coronavirus-says-drug-touted-by-trump-saved-his-life/

@Jkylebass: A good friend’s relative is a senior exec of a large hospital in NYC. He recently contracted the Wuhan Virus. After 4 days of taking Chloroquine (no Zpack), he tested negative for the disease and recovered. THIS DRUG WORKS

‘Lost’ Actor Who Tested Positive for Coronavirus Says Trump-Touted Drug ‘Secret Weapon’ To His Recovery   https://www.dailywire.com/news/lost-actor-who-tested-positive-for-coronavirus-says-drug-secret-weapon-to-his-recover

 

Why the MSM is so despicable: @ABC: Public health experts warn that Pres. Trump’s claims about hydroxychloroquine may inflate the drug’s price and make it difficult for those who need it to fight malaria to obtain it. [DJT was right; MSM wrong on drug; so, MSM tries a risible way to bash DJT.]

 

61 percent of voters [Hill-HarrisX poll] say Trump is taking strong enough measures to slow or stop coronavirus spread   https://thehill.com/hilltv/what-americas-thinking/489122-poll-61-of-voters-agree-trump-is-taking-strong-enough-measures

Illinois Gov. Pritzker, who has been slamming DJT daily, changed his tuned on Monday.  DJT noted this in his briefing.  You can bet this is due to the polls – his and DJT’s –  and Chgo biz leaders’ warnings.

DJT Daily Covid-19 Briefing Highlights

DJT: “We also have a large team working on what the next steps will be once the medical community gives a region the okay… Our country wasn’t built to be shut down… Businesses will be opened sooner than expected… We are not going to let the cure be worse than the problemHave to stop with the partisan politics…They have to make a deal…This is no time for political agendas…We are going to save American workers… and companies…We are not going to let this turn into a long-lasting financial problemWe are obtaining large quantities of chloroquineIt will be distributed to a lot of people in New York tomorrowThe FDA has been incredible… in getting these drugs…Attorney General Barr will speak about hoarding and price gouging…It will be a crime to stockpile these items (executive order that empowers HHS to declare certain medical supplies as “scarce”)… and to sell them at excess prices…”

Barr thanked law enforcement officials and said that under the Defense Production Act, the president can designate items as ‘scarce’.  “Earlier today the President signed a second executive order providing the authority to address… hoarding that threatens the supply of those necessary health and medical resources.”  Barr said the DoJ will be prosecuting hoarding and gouging, but not businesses for expected transactions or individuals that have larger supplies than normal. “If you have a big supply of toilet paper in your house, this is not something you have to worry about.  If you are sitting on a pile of masks, you will be hearing a knock on your door.”

@Peoples_Pundit: There’s a noticeable anger from the media at the prospect of Trump getting America back to work [at briefing].  It’s not because they’re concerned about saving lives. They want a depression and hope that will help their preferred party politically.

@dbongino: If you’re a media hack, and you think you’re dunking on Trump with a winning issue by demanding he shut the economy down for months, then you REALLY need to get out of your bubbles and talk to real Americans. You’d find out quickly how out of touch you really are.

House members, Senate aides traded stocks in early days of coronavirus https://www.politico.com/news/2020/03/21/coronavirus-trading-house-senate-140260

@ChadPergram [last night]: The battle is joined. House Dems just introduced their own, 1,404 page, $2.5 trillion coronavirus bill: https://appropriations.house.gov/sites/democrats.appropriations.house.gov/files/COVIDSUPP3_xml.pdf

HENDouse Dem Admits They Block Legislation Because ‘We Don’t Want to Give the President a Win’

https://freebeacon.com/politics/house-dem-admits-they-block-legislation-because-we-dont-want-to-give-the-president-a-win/

Los Angeles Times and Bloomberg News: Federal stockpile of N95 masks was depleted under Obama and never restocked    https://www.washingtonexaminer.com/news/los-angeles-times-and-bloomberg-news-federal-stockpile-of-n95-masks-was-depleted-under-obama-and-never-restocked

Biden’s 1st presser to challenge Trump on Covid-19 matters was a disaster.

@TrumpWarRoom WATCH: Joe Biden stumbles, loses his train of thought, and has to signal to staff that he needs help.  https://twitter.com/TrumpWarRoom/status/1242111524937904133

KLAVAN: Is There A Vaccine For Trump Derangement Syndrome?

https://www.dailywire.com/news/klavan-is-there-a-vaccine-for-trump-derangement-syndrome

 

@seanmdav: Nancy Pelosi’s daughter just endorsed the felony assault against Sen. Rand Paul.

Christine Pelosi @sfpelosi: Rand Paul’s neighbor was right [Will the MSM ask Nancy about this?]

@RandPaul Aug 5, 2019: Unfortunately, I will have to limit my August activities. Part of my lung damaged by the 2017 assault had to be removed by surgery this weekend

The chief state judge in New Jersey orders the release of hundreds of inmates in county jails because of dangers posed by coronavirus – CNN [You can’t make this up!  Confine citizens and free criminals that were confined!!!]

end

 

What a day!!

i am very tired but I will see you tomorrow

 

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