APRIL 22//GOLD REBOUNDS UP $40.75 TO $1714.75//SILVER UP 42 CENTS TO %15.14//COMEX GOLD TONNAGE STANDING; 96 TONNES//CORONAVIRUS UPDATES FROM AROUND THE GLOBE//SWAMP STORIES//OIL STILL IS MORIBUND//MANY STORIES ON WHAT HAPPENED YESTERDAY//

GOLD:$1714.75  UP $40.75   The quote is London spot price

 

 

 

 

 

Silver:$15.14  UP 42 CENTS

 

Closing access prices:  London spot

 

i)Gold : $1715.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $15.15//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

APRIL comex gold price CLOSE 1.30 PM:  $1725.20

MAY COMEX GOLD:  1727.20 1:30 PM

JUNE GOLD:  $1739.10  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE JUNE: $25.//PREMIUMS WENT UP AGAIN

 

CLOSING SILVER FUTURE MONTH

SILVER APRIL COMEX CLOSE: XXX

SILVER MAY COMEX CLOSE;   $15.28-…1:30 PM.//SPREAD SPOT/FUTURE MAY:  20 CENTS  PER OZ//PREMIUMS UP AGAIN

 

 

the gold market continues to be broken as future prices are much higher than spot prices.  The comex is desperate to fix things but they have no available gold.

If one is to buy gold and or gold coins, the price is around $2800. usa per oz

and silver; $31.00 per oz//

 

LADIES AND GENTLEMEN: YOU ARE NOW WITNESSING FIRST HAND THE DIFFERENCE BETWEEN PAPER GOLD/SILVER AND THE REAL PHYSICAL STUFF!!

DO NOT PAY ANY ATTENTION TO WHAT THE CROOKS ARE DOING AT THE COMEX AND LONDON LBMA..PHYSICAL IS THE NAME OF THE GAME AND NOTHING ELSE

 

COMEX DATA

 

 

 

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

today RECEIVING: 158/826

issued 632

EXCHANGE: COMEX
CONTRACT: APRIL 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,678.200000000 USD
INTENT DATE: 04/21/2020 DELIVERY DATE: 04/23/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
132 C SG AMERICAS 56
657 C MORGAN STANLEY 35
657 H MORGAN STANLEY 448
661 C JP MORGAN 632 158
685 C RJ OBRIEN 3
686 C INTL FCSTONE 2 15
690 C ABN AMRO 192 68
737 C ADVANTAGE 6
800 C MAREX SPEC 2
905 C ADM 35
____________________________________________________________________________________________

TOTAL: 826 826
MONTH TO DATE: 30,575

NUMBER OF NOTICES FILED TODAY FOR  APRIL CONTRACT: 826 NOTICE(S) FOR 82600 OZ (2.5692 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  30,575 NOTICES FOR 3,057,500 OZ  (95.10 TONNES)

 

 

SILVER

 

FOR APRIL

 

 

0 NOTICE(S) FILED TODAY FOR  nil  OZ/

total number of notices filed so far this month: 806 for 4,025,000 oz

 

BITCOIN MORNING QUOTE  $6955 UP  112 

 

BITCOIN AFTERNOON QUOTE.: $7091 UP $249

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $40.75: AND NO PHYSICAL TO BE FOUND ANYWHERE:

WITH ALL REFINERS CLOSED//MEXICO ORDERING ALL MINES SHUT:   WHERE ARE THEY GETTING THE “PHYSICAL”?

WE HAD TWO HUGE TRANSACTIONS AND BOTH ARE DEPOSITS:

A) A HUGE 3.8 TONNES OF GOLD IS ADDED TO THE GLD//THE ADDITION IS NOTHING BUT A PAPER TRANSACTION//NO PHYSICAL GOLD ENTERED.//

B)  A HUGE 9.07 TONNES OF PAPER GOLD ADDED TO THE GLD///

TOTAL FOR TODAY: 12.87 TONNES

 

GLD: 1,042.46 TONNES OF GOLD//

 

 

WITH SILVER UP 42 CENTS TODAY: AND WITH NO SILVER AROUND

 

 

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV

 

SURPRISINGLY: A PAPER WITHDRAWAL OF 1.865 MILLION OZ FROM THE SLV..

 

RESTING SLV INVENTORY TONIGHT:

SLV: 410.774  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL  BY A STRONG SIZED 2542 CONTRACTS FROM 142,149 DOWN TO 139,607 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE GOOD SIZED LOSS IN OI OCCURRED WITH  OUR CONSIDERABLE 60 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS DUE TO SOME  BANKER SHORT COVERING PLUS A CONSIDERABLE EXCHANGE FOR PHYSICAL ISSUANCE, SOME LONG LIQUIDATION ALONG WITH OUR ZERO GAIN IN SILVER OZ STANDING. WE HAD A SMALL NET LOSS IN OUR TWO EXCHANGES OF 1302 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A STRONG AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A  STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   MARCH:  00 AND MAY: 945 AND JULY: 70  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1015 CONTRACTS. WITH THE TRANSFER OF 1015 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 1015 EFP CONTRACTS TRANSLATES INTO 5.075 MILLION OZ  ACCOMPANYING:

1.THE 60 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.145  MILLION OZ INITIALLY STANDING FOR APRIL

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 60 CENTS).. BUT, OUR OFFICIAL SECTOR/BANKERS WERE SOME WHAT SUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME  SILVER LONGS FROM THEIR POSITIONS, AS WE DID HAVE A NET LOSS OF 1525 CONTRACTS OR 7.635 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO SILVER…..

SPREADING OPERATION FOR OUR NEWCOMERS:

WE HAVE NOW COMMENCED IN SILVER 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 MAY.

 

 

FOR THOSE OF YOU WHO ARE NEW, HERE IS THE MODUS OPERANDI OF THE SPREADERS AND THE CRIMINAL ELEMENT BEHIND IT:

 HERE IS A BRIEF SYNOPSIS OF HOW THE CROOKS FLEECE UNSUSPECTING LONGS IN THE SPREADING ENDEAVOUR;

 

THE SPREADING LIQUIDATION OPERATION IS NOW OVER FOR GOLD..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR SILVER.  THEY WILL ACCUMULATE CONSIDERABLE AMOUNT OF THE CONTRACTS AND THEN LIQUIDATE ONE WEEK PRIOR TO FIRST DAY NOTICE

 

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 SILVER 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 APRIL HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF MAY FOR SILVER:

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF APRIL. 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 (MAY), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

 

 

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

14,476 CONTRACTS (FOR 14 TRADING DAYS TOTAL 14,476 CONTRACTS) OR 72.38 MILLION OZ: (AVERAGE PER DAY: 1034 CONTRACTS OR 5.170 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF APRIL: 72.38 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 10.34% 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:          965.87 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 181.61 MILLION OZ

FEB 2020 EFP’S TOTAL :  ……     259.600 MILLION OZ

MARCH EFP’S …..                     452.280 MILLION OZ  //TOTALS//AND A NEW RECORD FOR THE MONTH)

APRIL EFP SO FAR                   72.38 MILLION OZ.  (EX. FOR PHYSICALS BECOMING A LOT LESS)

EXCHANGE FOR PHYSICAL ISSUANCE THIS MONTH IS A LOT LESS.  NO DOUBT THAT THE COST TO CARRY THESE THINGS HAS EXPLODED AND AS SUCH CANNOT BE DONE AS FREQUENTLY AS BEFORE.

 

RESULT: WE HAD A GOOD SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2542, WITH THE CONSIDERABLE 60 CENT LOSS IN SILVER PRICING AT THE COMEX /TUESDAY THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 1015 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE LOST A SMALL SIZED OI CONTRACTS ON THE TWO EXCHANGES:  1525 CONTRACTS (WITH OUR 60 CENT LOSS IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1015 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG DECREASE OF 2542 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 60 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $14.72 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.7050 BILLION OZ TO BE EXACT or 100.7% of annual global silver production (ex Russia & ex China).

FOR THE NEW  MAR DELIVERY MONTH/ THEY FILED AT THE COMEX: NOTICE(S) FOR   nil 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: 23.005 MILLION OZ/APRIL 4.145 MILLION OZ//
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A GOOD SIZED 3513 CONTRACTS TO 493,158 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 LOSS OF COMEX OI OCCURRED WITH OUR COMEX LOSS IN PRICE  OF $21.60 /// COMEX GOLD TRADING// TUESDAY// WE  HAD CONSIDERABLE BANKER SHORT COVERING , A GOOD INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH  OUR STRONG LOSS IN THE PAPER PRICE OF GOLD.

WE HAD NO ISSUANCE OF OUR NEW 4 GC CONTRACT

 

WE GAINED A GOOD 1255 CONTRACTS  (3.906 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 4768 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 4768.; DEC 0 AND ALL OTHER MONTHS ZERO//TOTAL: 4768.  The NEW COMEX OI for the gold complex rests at 493,158. 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 FAIR SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1255 CONTRACTS: 1255 CONTRACTS DECREASED AT THE COMEX AND 4768 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 1255 CONTRACTS OR 3.903 TONNES. TUESDAY, WE HAD CONSIDERABLE LOSS OF $21.60 IN GOLD TRADING……

AND DESPITE THAT  LOSS IN  PRICE, WE HAD A FAIR SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 3.903 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 (FELL $21.60). AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WERE UNSUCCESSFUL  (SEE BELOW).

4 GC ISSUANCE:  ZERO

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD  A GOOD SIZED INCREASE IN EXCHANGE FOR PHYSICALS  (4768) ACCOMPANYING THE LOSS IN COMEX OI  (3513 OI): TOTAL GAIN IN THE TWO EXCHANGES:  2495 CONTRACTS.  WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)A STRONG INCREASE IN  STANDING AT THE GOLD COMEX FOR THE FRONT APRIL MONTH,  3) ZERO LONG LIQUIDATION AND  …ALL OF THIS WAS COUPLED WITH THAT STRONG LOSS IN GOLD PRICE TRADING//TUESDAY

 

 

 

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 APRIL : 63,297 CONTRACTS OR 6,329,700 oz OR 196.88 TONNES (14 TRADING DAYS AND THUS AVERAGING: 4521 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 14 TRADING DAY(S) IN  TONNES: 196.88 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2019, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS 196.88/3550 x 100% TONNES =5.54% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS DISSIPATED THIS MONTH…THE COST TO THE BANKERS TO CARRY THESE CONTRACTS IN LONDON IS BECOMING TOO GREAT FOR THEM.

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   2519.78  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

 

MARCH TOTAL EFP ISSUANCE                1,098.93  TONNES  (*AND A NEW ALL TIME RECORD ISSUANCE//22 DAYS)

APRIL TOTAL EFP. ISSUANCE:               196.88  TONNES  (EFP ISSUANCE BECOMING A LOT LESS)

 

 

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 at the comex, in SILVER, FELL BY A STRONG SIZED 2542 CONTRACTS FROM 142,149 DOWN TO 139,607 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) SOME BANKER SHORT COVERING , 2) THE ISSUANCE OF A GOOD SIZED NUMBER OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A ZERO INCREASE IN SILVER OZ STANDING AT THE COMEX FOR APRIL AND 4) SOME LONG LIQUIDATION

 

 

EFP ISSUANCE 1015 CONTRACTS

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: 945; JULY: 70 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1015 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE STRONG COMEX OI LOSS  OF 2542 CONTRACTS TO THE 1015 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL LOSS OF 1525 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES  7.635 MILLION  OZ!!! WITH THE STRONG LOSS IN PRICE///

 

 

RESULT: A GOOD SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 60 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A GOOD SIZED 1015 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.

 

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

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 16.97 POINTS OR 0.60%  //Hang Sang CLOSED UP 99.81 POINTS OR 0.42%   /The Nikkei closed DOWN 142.83 POINTS OR 0.74%//Australia’s all ordinaires CLOSED DOWN .09%

/Chinese yuan (ONSHORE) closed UP  at 7.0826 /Oil UP TO 11.28 dollars per barrel for WTI and 19.20 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0826 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0983 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

COMEX DATA//AMOUNTS STANDING//VOLUME OF TRADING/INVENTORY MOVEMENTS

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A FAIR 3513 CONTRACTS TO 493,158 MOVING FURTHER FROM OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS FAIR COMEX OI LOSS WAS SET DESPITE OUR STRONG LOSS OF $21.60 IN GOLD PRICING //TUESDAY’S  COMEX TRADING//). WE ALSO HAD A GOOD EFP ISSUANCE (4768 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)   ZERO LONG LIQUIDATION AND 3)  ANOTHER STRONG INCREASE IN GOLD OZ STANDING AT THE COMEX WITH THAT HUGE STANDING  APRIL/GOLD…  AS WE ENGINEERED A GOOD GAIN ON TWO EXCHANGES OF 1255 CONTRACTS.

WE AGAIN HAD ZERO 4- GC CONTRACT ISSUANCE

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF APRIL..  THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4768 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 4768 AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 4768 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:  1255 TOTAL CONTRACTS IN THAT 4768 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A FAIR SIZED 3513 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD AMOUNT OF EXCHANGE FOR PHYSICALS WITH A HUGE BANKER SHORT COVERING, ACCOMPANYING OUR STRONG COMEX GOLD TONNAGE STANDING FOR DELIVERY……(SEE CALCULATIONS BELOW)

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL BY A CONSIDERABLE $21.60).  AND, THEY WERE UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED 3.903 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 1255 CONTRACTS OR 125,500 OZ OR 3.903 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:  493,158 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 49.31 MILLION OZ/32,150 OZ PER TONNE =  1533 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1533/2200 OR 69.86% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 191,743 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY267,991 contracts//

APRIL 22

APRIL GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz 64,237.698 oz

Brinks

 

 

 

Deposits to the Customer Inventory, in oz  

104,458.599

OZ

BRINKS

HSBC

 

 

 

No of oz served (contracts) today
826 notice(s)
 82600 OZ
(2.5692 TONNES)
No of oz to be served (notices)
279 contracts
(27900 oz)
0.8678 TONNES
Total monthly oz gold served (contracts) so far this month
30,575 notices
3,057,500 OZ
95.10 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 1 deposits into the dealer

I) Into the dealer Brinks:  64,237.698 oz

 

total dealer deposits: 64,237.698  oz

total dealer withdrawals: NIL oz

we had 2 deposit into the customer account

i) Into Brinks:  81,695.691 oz

 

ii) Into HSBC:: 22,762.908 oz

 

 

 

 

total deposits:  104,458.439   oz

 

 

we had 1 gold withdrawals from the customer account:

i) Out of Brinks: 32.151 oz  (one kilobar)

 

 

total gold withdrawals; 32.151   oz

We had 1  kilobar transactions

 

We had zero  4 KC bar transaction

 

ADJUSTMENTS: 1

i) Out of Brinks:  786.571 oz was adjusted out of the customer and this lands into the dealer Brinks

 

The front month of APRIL saw its open interest register 1105 contracts for a GAIN of 328 contacts. We had 8 notices filed yesterday so we GAINED A VERY STRONG 336 contracts or AN ADDITIONAL 33,600 oz will  stand at the comex as these guys refused to morph into London based forwards and they also negated a fiat bonus

 

 

May saw its ANOTHER GAIN of 259 contracts to stand at  6546.

June saw a  LOSS OF 4284 contracts DOWN to 337,073

 

 

We had 826 notices filed today for 82,600 oz

 

FOR THE  APRIL 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 632 notices were issued from their client or customer account. The total of all issuance by all participants equates to 826 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 158 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 APRIL /2020. contract month, we take the total number of notices filed so far for the month (30,575) x 100 oz , to which we add the difference between the open interest for the front month of  APRIL. (1105 CONTRACTS ) minus the number of notices served upon today (826 x 100 oz per contract) equals 3,085,400 OZ OR 95.968 TONNES) the number of ounces standing in this  active month of APRIL

thus the INITIAL standings for gold for the APRIL/2020 contract month:

No of notices served (30575)x 100 oz + (1105 OI) for the front month minus the number of notices served upon today -(826) x 100 oz which equals 3,085,400 oz standing OR 95.968 TONNES in this active delivery month which is  a great amount for gold standing for a APRIL. delivery month.

THIS GREATLY SURPASSES THE PREVIOUS RECORD OF 42. TONES OF GOLD STANDING IN ANY MONTH

We gained 336 contracts OR an additional 33,600 OZ WILL  STAND AT THE COMEX as these guys decided it best to look for metal on the this side of the pond, first before travelling to London..

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

322,144.443 oz PLEDGED  MARCH 2020  JPMORGAN:  10.02 TONNES

42,548.308.00 PLEDGED  APRIL 3/2020: SCOTIA:            1.3234 tonnes

TOTAL PLEDGED GOLD NOW IN EFFECT:  540,194.208  OZ OR 16.824  TONNES

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 133.57 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 95.868 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  4,835,374.269 oz or 150.400  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:  322,144.443 oz (or 10.0200 tonnes)
total pledged gold:
c)  pledged gold at Scotia: 1.3234 tonnes or 42,548.308 oz which cannot be settled  (1.3234 tonnes)
total weight of pledged:  540,904.208 oz or 16.824 tonnes
thus:
registered gold that can be used to settle upon: 4,294,470.0  (133.57 tonnes)
true registered gold  (total registered – pledged tonnes  4,294,470.0 (133.57 tonnes)
total eligible gold:  14,289,658.320 oz (444.46 tonnes)

total registered, pledged  and eligible (customer) gold;   19,481,273.867 oz 605.949 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   138.03 tonnes

total gold net of 4 GC:  467.919 tonnes

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

END

April 21/2019

And now for the wild silver comex results

Total COMEX silver OI FELL BY A STRONG SIZED 2542 CONTRACTS FROM 141,181 DOWN TO 139,607 (AND FURTHER FROM  OUR 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 STRONG OI COMEX LOSS TODAY OCCURRED WITH OUR HUGE 60 CENT DECREASE IN PRICING/TUESDAY.  THE LOSS IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) ZERO INCREASE IN SILVER OZ STANDING AT THE COMEX, 3)  SOME BANKER SHORT COVERING AND SOME LONG LIQUIDATION OCCURRING WITH OUR CONSIDERABLE SILVER GAIN IN PRICE. 

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF APRIL

.APRIL ACTIVE DELIVERY MONTH.

 

THE FRONT MONTH OF APRIL HAS A TOTAL OPEN INTEREST OF 23 CONTRACTS, AND AS SUCH WE LOST 0 CONTRACTS.  WE HAD 0 NOTICES SERVED UPON YESTERDAY SO WE GAINED 0 CONTRACTS OR 0 ADDITIONAL OZ WILL STAND AT THE COMEX AS THEY REFUSED TO MORPH INTO LONDON BASED CONTRACTS AS THEY LOOK FOR METAL ON THIS SIDE OF THE POND.

 

THE BIG CONTRACT OF MAY SAW ITS OI FALL  BY 3986  DOWN TO 38,193.

JUNE SAW A GAIN OF 34 CONTRACTS RISING TO 136.

 

 

We, today, had  0 notice(s) FILED  for NIL, OZ for the APRIL, 2019 COMEX contract for silver

April 22/2019

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 301,895.740 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,134,863.019 oz
CNT
Delaware
Scotia
No of oz served today (contracts)
0
CONTRACT(S)
(NIL OZ)
No of oz to be served (notices)
23 contracts
 115,000 oz)
Total monthly oz silver served (contracts)  806 contracts

4,025,000 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

finally we get a proper silver inventory report

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

i)we had 0 deposits into the customer account

into JPMorgan:   0

ii)into everybody else;  0

 

 

 

*** 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 50.04% of all official comex silver. (160.819 million/321.170 million

 

total customer deposits today: 0   oz

we had 1 withdrawals:

i Out of Delaware: 15,975.900 oz

 

 

total withdrawals;  15,975.900   oz

We had 2 adjustments: and all from the dealer to the customer:

i)  from CNT:  297,364.546 oz

ii) Out of Int. Delaware:  4908.485

 

total dealer silver:  81.434 million

total dealer + customer silver:  317.337 million oz

 

 

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The total number of notices filed today for the APRIL 2020. contract month is represented by 0 contract(s) FOR nil oz

 

To calculate the number of silver ounces that will stand for delivery in APRIL we take the total number of notices filed for the month so far at 806 x 5,000 oz = 4,025,000 oz to which we add the difference between the open interest for the front month of APRIL.(23) and the number of notices served upon today 0 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the APRIL/2019 contract month: 806 (notices served so far) x 5000 oz + OI for front month of APRIL (23)- number of notices served upon today (0) x 5000 oz of silver standing for the APRIL contract month.equals 4,145,000 oz.

WE GAINED 0 CONTRACTS OR AN ADDITIONAL NIL OZ OF SILVER WILL STAND AT  THE COMEX.

 

TODAY’S ESTIMATED SILVER VOLUME: 55,051 CONTRACTS //

 

 

 

 

FOR YESTERDAY:  91,446 CONTRACTS..,CONFIRMED VOLUME

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 91,446 CONTRACTS EQUATES to 457 million  OZ  65.3% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.

The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42. The previous record was 224,540 contracts with the price at that time of $20.44

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV FALLS TO -0.35% ((APRIL 22/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO +0.15% to NAV:   (APRIL 22/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.35%

(courtesy Sprott/GATA

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

NAV 15.63 TRADING 15.42///DISCOUNT 1.33

END

 

 

And now the Gold inventory at the GLD/

APRIL 22/WITH GOLD UP $40.75 TODAY:; TWO HUGE CHANGES IN GOLD INVENTORY AT THE GLD//A)A MONSTROUS  3.8 PAPER TONNES WERE ADDED TO THE GLD INVENTORY AND B) ANOTHER HUGE 9.07 TONNES OF PAPER GOLD ADDED LATE IN THE DAY//INVENTORY RESTS AT 1042.46 TONNES

APRIL 21/WITH GOLD DOWN $21.60 TODAY: A HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A MONSTROUS ADDITION OF 7.9 PAPER TONNES TO THE GLD INVENTORY//INVENTORY RESTS AT 1029.59 TONNES

APRIL 20//WITH GOLD UP $10.00 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1021.69 TONNES

APRIL 17/WITH GOLD DOWN $27.80 TODAY: SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS AT 1021.69 TONNES TONNES..THE STRING OF 12 STRAIGHT STRONG DEPOSITS ENDS..

APRIL 16/WITH GOLD DOWN $4.50 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG DEPOSIT OF 4.10 TONNES WAS ADDED TO THE GLD INVENTORY//INVENTORY RESTS AT 1021.69 TONNES/12TH STRAIGHT STRONG DEPOSIT

APRIL 15//WITH GOLD DOWN $19.10 TODAY; ANOTHER HUGE CHANGE IN GOLD INVENTORY; A STRONG 7.89 TONNES WAS ADDED TO THE GLD INVENTORY//INVENTORY RESTS AT 1117.59 TONNES.//11TH STRAIGHT STRONG DEPOSIT

APRIL 14/WITH GOLD UP $23.55 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG 15.51 TONNES WAS ADDED TO THE GLD INVENTORY/INVENTORY RESTS AT 1009.70 TONNES//THIS IS THE 10TH STRAIGHT STRONG DEPOSIT//THIS IS A FRAUDULENT VEHICLE..THEY HAVE NO PHYSICAL GOLD IN THE TRUST..

APRIL 13//WITH GOLD UP $27.65 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG 5.36 TONNES WAS ADDED TO THE GLD//INVENTORY RESTS AT 994.19 TONNES

APRIL 9 WITH GOLD UP $37.30 TODAY: ANOTHER HUGE CHANGE IN GOLD INVENTORY: A STRONG 2.92 TONNES WAS ADDED TO THE GLD//GOLD INVENTORY RESTS TONIGHT AT..988.63 TONNES

APRIL 8/WITH GOLD DOWN $.60//ANOTHER HUGE CHANGE IN GOLD INVENTORY/;; A STRONG 1.45 TONNES WAS ADDED TO THE GLD/GOLD INVENTORY RESTS AT 985.71 TONNES

APRIL 7/WITH GOLD UP $.30: ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 5.27 TONNES OF GOLD INTO THE GLD INVENTORY//INVENTORY RESTS AT 984.26 TONNES

APRIL 6//WITH GOLD UP $32.00//ANOTHER STRONG DEPOSIT INTO THE GLD; A HUGE 7.02 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT : 978.99 TONNES

APRIL 3//WITH GOLD UP $7.80 TODAY//ANOTHER STRONG DEPOSIT OF 3.22 TONNES INTO THE GLD/INVENTORY RESTS AT 971.97 TONNES

APRIL 2//WITH GOLD UP $31.80 TODAY: ANOTHER STRONG DEPOSIT OF 1.75 TONNES INTO THE GLD//INVENTORY RESTS AT 968.75 TONNES

APRIL 1/WITH GOLD DOWN $7.70 TODAY: ANOTHER CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.62 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 967.00 TONNES

MARCH 31//WITH GOLD DOWN $32.70//A MONSTROUS PAPER DEPOSIT OF 10.84 TONNES INTO THE GLD//INVENTORY RESTS AT 964.38 TONNES

MARCH 30/WITH GOLD DOWN $6.10 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 953.54 TONNES

MARCH 27.WITH GOLD DOWN $16.40: A BIG  CHANGE IN GOLD INVENTORY AT THE GLD  A HUGE DEPOSIT OF 4.39 TONES INTO THE GLD/INVENTORY RESTS AT 953.54 TONES

MARCH 26//WITH GOLD UP $24.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 13.17 TONNES INTO THE GLD/INVENTORY RESTS AT 949.15 TONNES

MARCH 25/WITH GOLD DOWN $11.40 TODAY//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 11.99 TONES INTO THE GLD INVENTORY////INVENTORY RESTS AT 935.98 TONNES

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//

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Inventory rests tonight at

APRIL 22/ GLD INV 1042.46 tonnes*

IN LAST 804 TRADING DAYS:   +96.12 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 704 TRADING DAYS;+271.10  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

APRIL 22/WITH SILVER UP 42 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY: A PAPER WITHDRAWAL OF 1.865 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 410.774 MILLION OZ//

APRIL 21//WITH SILVER DOWN 60 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER ADDITION OF 1.398 MILLION OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 412.639 MILLION OZ//

APRIL 20//WITH SILVER UP 16 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.797 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 414.038 MILLION OZ//

APRIL 17/WITH SILVER DOWN 24 CENTS TODAY; A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.3999 MILLION OZ FROM THE SLV////INVENTORY RESTS AT 415.437 MILLION OZ//

APRIL 16/WITH SILVER UP 5 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV////INVENTORY RESTS AT 415.437 MILLION OZ//

APRIL 15//WITH SILVER DOWN 45 CENTS TODAY: TWO HUGE CHANGES IN SILVER INVENTORY AT THE SLV TWO HUGE DEPOSITS: A DEPOSIT OF 1.679 MILLION OZ AND ANOTHER 5.222 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 415.437 MILLION OZ//

APRIL 14./WITH SILVER UP 51 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A MASSIVE PAPER DEPOSIT OF XXX MILLION OZ//INVENTORY RESTS AT 408.536 MILLION OZ//

APRIL 13//WITH SILVER DOWN 29 CENTS TODAY;  A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MASSIVE PAPER DEPOSIT OF 6.155 MILLION OZ////INVENTORY RESTS AT 408.536 MILLION OZ//

APRIL 9/WITH SILVER UP 60 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A HUGE DEPOSIT OF 1.84 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 402.381 MILLION OZ.

APRIL 8//WITH SILVER DOWN 21 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 401.541 MILLION OZ///

APRIL 7/WITH SILVER UP 26 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 5.766 MILLION OZ INTO THE SLV..//INVENTORY RESTS AT 395.826 MILLION OZ

APRIL 6/WITH SILVER UP 50 CENTS TODAY: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 395.826 MILLION OZ.

APRIL 3//WITH SILVER DOWN 15 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 746,000 OZ INTO THE SLV//INVENTORY RESTS AT 395.826 MILLION OZ

APRIL 2/WITH SILVER UP 65 CENTS;  A SMALL CHANGE TODAY..A WITHDRAWAL OF .335 MILLION OZ TO PAY FOR FEES//INVENTORY RESTS AT 394.826 MILLION OZ/

APRIL 1/WITH SILVER DOWN 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 395.181 MILLION OZ//

MARCH 31/WITH SILVER UP 2 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY: A DEPOSIT OF 1.679 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 375.181 MILLION OZ//

MARCH 30/WITH SILVER DOWN 44 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 393.502 MILLION OZ.

MARCH 27/WITH SILVER DOWN 5 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MONSTROUS PAPER DEPOSIT OF 8.115 MILLION OZ INTO THE SLV../INVENTORY RESTS AT 393.502  MILLION OZ//

MARCH 26/WITH SILVER DOWN 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 385.387 MILLION OZ///

MARCH 25/WITH SILVER UP 44 CENTS TODAY: TWO HUGE CHANGES IN SILVER INVENTORY AT THE SLV: TWO DEPOSITS OF 7.369 MILLION OZ AND 2.239 MILLION OZ OF PAPER SILVER INTO THE SLV////INVENTORY RESTS AT 385.387 MILLION OZ//

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

 

 

APRIL 22.2020:

SLV INVENTORY RESTS TONIGHT AT

410.774 MILLION OZ.

END

 

 

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.69/ and libor 6 month duration 1.02

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

G0LD LENDING RATE: – .67

GOLD UNAVAILABLE//CENTRAL BANKS CALLING IN THEIR GOLD LEASES.

 

XXXXXXXX

12 Month MM GOFO
+ 0.96%

LIBOR FOR 12 MONTH DURATION: 0.99

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.03

end

 

 

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

Gold Will Reach $3,000/oz: “Fed Can’t Print Gold” and Is “Ultimate Store Of Value” – Bank of America

Gold in USD – 3 DaysGold prices are 0.7% higher today after falling just 0.3% yesterday as traders sought refuge in safe haven gold as oil prices collapsed lower again.Oil slumped to nearly $15 a barrel, its lowest since 1999 as the economic fallout from government lockdowns and the shutting down of entire economies impacts risk assets and commodities dependent on economic growth. WTI crude is now down 81% and Brent crude down 71% so far in 2020.Gold price forecasts are being revised higher by banks and gold analysts. Bank of America raised its 18-month gold-price target from $2,000 to $3,000 an ounce — more than 50% above the existing nominal record price – in a report titled “The Fed Can’t Print Gold.”Gold is the ultimate store of value according to BofA. Gold should reach these levels due to a few factors including the unprecedented lockdown and shutdown of most economies of the world, interest rates at zero or below zero, expected double-digit GDP contractions and exploding budget deficits globally.

The shortage of small and large gold bullion coins and bars continues and may deepen as prices move higher and we enter the next phase of the crisis – a massive economic crisis.

Due to our direct relationships with leading refineries and as Authorised Distributors of government mints, we continue to sell gold bars (1 oz, kilo and 400 oz) and silver bars (1,000 oz) and gold coins including Gold Sovereigns and Britannias (late May delivery) and Gold Nuggets or Kangaroos in volume. Online trading is suspended and you must call our trading trade to order coins and bars for delivery and storage. Our premiums have risen to reflect the rise in wholesale premiums from our mint and refinery partners, but we continue to have some of the most competitive premiums in the world.

NEWS and COMMENTARY

Gold to Reach $3,000—50% Above Its Record, Bank of America Says

“Fed Can’t Print Gold”: BofA Calls Gold “Ultimate Store Of Value”, Raises Price Target To $3,000

London, Gold Hub for Centuries, Eyes Delivery ‘Around the World’

Billionaire Ray Dalio says coronavirus marks the start of a technology driven ‘Brave New World’

Central Banks Have Pumped An Annualized $23.4 Trillion Into The Financial System

US Oil Fund drops 25% after changing structure again as popular ETF tries to stave off collapse

How could a futures contract for crude oil fall to minus $37 a barrel?

The Experts Have No Idea How Many COVID-19 Cases There Are

Gold Price Rising Due to Government Overreaction Which Is Crashing Our Economies and Making a Depression “Much Worse” – Dr Ron Paul

 

“Yes It Will. The Only Question Is When” – WATCH HERE

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

21-Apr-20 1678.60 1682.05, 1328.16 1364.82 & 1548.00 1547.82
20-Apr-20 1684.95 1686.20, 1349.14 1355.70 & 1547.63 1551.98
17-Apr-20 1693.15 1692.55, 1362.48 1354.04 & 1564.47 1555.79
16-Apr-20 1717.85 1759.50, 1378.57 1382.91 & 1581.45 1589.06
15-Apr-20 1712.25 1718.65, 1367.92 1377.33 & 1566.02 1580.99
14-Apr-20 1715.85 1741.90, 1367.36 1383.07 & 1567.91 1588.26
09-Apr-20 1662.50 1680.65, 1339.48 1348.22 & 1529.00 1538.13
08-Apr-20 1649.05 1647.80, 1328.27 1330.27 & 1517.00 1513.14
07-Apr-20 1652.20 1649.25, 1344.23 1333.75 & 1519.53 1511.21
06-Apr-20 1636.60 1648.30, 1330.72 1341.06 & 1515.49 1526.66

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Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Most analysts are looking for a drop in the value of the dollar

London’s Financial Times/GATA)

Dollar’s long-term prospects turn gloomy, analysts say

 Section: 

By Eva Szalay and Colby Smith
Financial Times, London
Tuesday, April 21, 2020

The U.S. dollar is heading for a drop toward the end of this year, according to strategists, in what would mark a reversal from a record-breaking surge when coronavirus first washed over markets.

The world’s most important currency shot higher in March, reaching its strongest ever point when stock and bond markets suffered the most intense phase of the pandemic’s impact. A month later, the dollar — widely considered a haven in times of stress — remains unusually strong.

But some analysts and investors are confident that the tide will soon shift, after central banks around the world acted to ease the flow of dollars around the financial system. Big cuts in U.S. interest rates, which are much larger than those in other big economies, are also likely to drag down the dollar in the coming months, they say.

“The most bearish outcome for the dollar is that the global economy recovers as expected and the U.S. Federal Reserve stays dovish,” said Eric Stein, a portfolio manager at Eaton Vance. “We are seeing some of the conditions for a weaker dollar slotting into place.” …

… For the remainder of the report:

https://www.ft.com/content/3e994fd6-4dd2-4f0e-97bc-462aad04fafc

END

Believe it or not but the huge demand for gold and silver coins only represents 8% of demand

(Jan Nieuwenhuijs/GATA)

Jan Nieuwenhuijs: Coin demand of little relevance to the gold price

 Section: 

12:21p ET Tuesday, April 21, 2020

Dear Friend of GATA and Gold:

Voima Gold researcher Jan Nieuwenhuijs writes today that demand for gold and silver coins has little influence on the price of the monetary metals because coins constitute only about 8 percent of demand, far less than the institutional demand for metal in the wholesale market.

Of course institutional demand in the wholesale market is enormously distorted by the fractional-reserve gold and silver banking system, in which a vast imaginary supply is created, a supply many times larger than the actual metal available. Nieuwenhuijs’ commentary today disparaging the regard for coin prices does not acknowledge this.

… 

So which prices are more distorted — retail coin prices or wholesale prices for gold not actually delivered? What is the real price of real gold?

Voima is in the gold business, so one can always contact the company to see if it’s selling at the “spot” price anything you can hold in your hand that feels more like metal than paper.

Nieuwenhuijs’ commentary is headlined “Coin Demand of Little Relevance to the Gold Price” and it’s posted here:

https://www.voimagold.com/insight/coin-demand-of-little-relevance-to-the…

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

END

Craig Hemke correctly stated that oil went no bid.  He questions whether gold will go no offer..that is nobody will want to part with physical gold

(Courtesy Craig Hemke/Sprott)

Craig Hemke at Sprott Money: Oil went no bid, so can gold go no offer?

 Section: 

5:20p ET Tuesday, April 21, 2020

Dear Friend of GATA and Gold:

Yesterday the oil futures market went no bid, apparently for the first time in history, and with oil storage facilities full everywhere, trapped longs who weren’t ready to take delivery had to pay others to do so. With the world’s economy crippled by virus epidemic regulations, nobody wanted what used to be called black gold. You had to pay people to take oil off your hands.

… 

Today the TF Metals Report’s Craig Hemke, writing at Sprott Money wonders if another unprecedented phenomenon could happen in the gold futures market — wonders if, amid increasing signs of scarcity of metal as world money supplies explode to infinity, the gold futures market could go no offer, with nobody willing to sell, or at least not to sell anywhere near current prices.

Hemke writes: “We now know that quite literally anything is possible in 2020 — from global pandemics to economic collapse to QE to infinity to -$40 crude. As such a complete implosion and restructuring of the global pricing scheme for precious metal is not out of the question in the weeks and months ahead.”

Hemke’s analysis is headlined “Crude Collapse Concerns Comex” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/crude-collapse-concerns-comex-craig-hem…

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

end

Butler angry at the CME and CFTC for allowing the banks to win on that huge oil fall

(Courtesy Ted Butler)

Ted Butler: Common sense and the CME Group

 Section: 

By Ted Butler
SilverSeek.com
Tuesday, April 21, 2020

Monday’s spectacular and unprecedented collapse of oil prices is, rightly so, the subject of nonstop commentary. Already considered depressed on Friday’s close, at $18.27 per barrel, the he May NYMEX crude oil futures contract, at Monday’s official settlement price, had fallen to negative $37.63, down $55.90.

Most observers asked how the heck this was possible — how could a futures contract for crude oil fall to minus $37 a barrel?

… 

The process by which the negative price was determined was illegitimate, as is the exchange on which it trades, the NYMEX, as well as the owner-operator of the exchange, the CME Group (which also owns and operates the COMEX).

Yes, I’m fully-aware that the CME Group runs the largest energy and precious metals derivatives exchanges in the world, but since when did size alone guarantee integrity and legitimacy? …

… For the remainder of the analysis:

http://silverseek.com/commentary/common-sense-and-cme-group-17911

Common Sense and the CME Group

Theodore Butler

|

April 21, 2020 – 1:21pm

 

Monday’s spectacular and unprecedented collapse of oil prices is, rightly so, the subject of non-stop commentary. Already considered depressed on Friday’s close, at $18.27/bbl., the May NYMEX crude oil futures contract, at Monday’s official settlement price, had fallen to negative $37.63, down $55.90.

Most observers asked was how the heck was this possible – how could a futures contract for crude oil fall to minus $37 a barrel?  The process by which the negative price was determined was illegitimate, as is the exchange on which it trades, the NYMEX, as well as the owner-operator of the exchange, the CME Group (which also owns and operates the COMEX). Yes, I’m fully-aware that the CME Group runs the largest energy and precious metals derivatives exchanges in the world, but since when did size alone guarantee integrity and legitimacy?

On Friday’s close, the May crude oil contract had 108,593 open contracts (1000 barrels per contract). On Monday’s close, 13,044 contracts remained open, meaning 95,549 contracts were closed out in Monday’s trading. While it’s impossible to determine from public data how many of those contracts were closed out at negative prices, clearly the longs got crushed and the short holders raked in profits. In trying to determine who was long and short going into Monday’s spectacular price collapse, data from the exchange and CFTC, in the form of the Commitments of Traders and Bank Participation reports are the best source.

Data from the most recent April Bank Participation Report (for positions as of April 7), indicate that 4 US commercial banks held a gross short position of 323,674 contracts or 13.8% of total NYMEX crude oil open interest. In addition, 20 foreign banks held a gross short position of 284,069 contracts or 12.1% of total open interest. Combined, US and foreign commercial banks held a gross short position of 607,743 contracts or 25.9% of total open interest. Since commercial banks held such a large share of the short position in NYMEX crude oil contracts, it is reasonable to conclude they were among the biggest winners in the spectacular oil collapse. The question is whether the big banks were just lucky to be in the right place at the right time, or had much to do with the spectacular collapse?

https://www.cftc.gov/MarketReports/BankParticipationReports/deaapr20f

A week or so ago, on April 8, the CME Group announced that it was prepared for the possibility of crude oil prices going negative and was making appropriate arrangements. Appropriate arrangements? What could possibly be appropriate about negative prices?  Negative commodity prices are never legitimate, regardless of the stories concocted to explain them away. Next thing we’ll hear from the CME is why gold and silver prices could trade at less than zero. I doubt that would occur if the exchange’s big insiders weren’t short.

https://www.cmegroup.com/notices/clearing/2020/04/Chadv20-152.html#pageNumber=1

The real culprits are those who have sold us a bill of goods, particularly the exchange operators (the CME Group) and those profiting from the phony computer-generated high frequency trading that has come to dominate the price discovery process. Particularly shameful has been the role of the CFTC, which sits by and lets the CME and the banks (especially JPMorgan) do whatever they want.

This move to negative oil prices (which undoubtedly benefitted JPM again) should concern just about everyone. There is absolutely nothing legitimate about negative oil prices and all the soothing stories about there being no storage only makes negative prices legitimate if we suspend our common sense. It was essentially a less than one day phenomenon that caught unsuspecting longs out of position and unprepared for the impossible to imagine. That’s not legitimate price discovery; that’s little more than highway robbery. It’s time we demand that the CFTC get off its butt and put an end to the phony pricing.

Ted Butler

April 21, 2020

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0826/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0983   /shanghai bourse CLOSED UP 16.97 POINTS OR 0.60%

HANG SANG CLOSED UP 99.81 POINTS OR 0.42%

 

2. Nikkei closed DOWN 142.83 POINTS OR 0.74%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 100.00/Euro RISES TO 1.0874

3b Japan 10 year bond yield: FALLS TO. –.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.66/ 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:: 11/28 and Brent: 19.20

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 -.45%/Italian 10 yr bond yield UP to 2.19% /SPAIN 10 YR BOND YIELD UP TO 1.11%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.64: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 2.53

3k Gold at $1701.80 silver at: 14.94   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 62/100 in roubles/dollar) 76.47

3m oil into the 11 dollar handle for WTI and 19 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.66 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 .9685 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0528 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 0.45%

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

4. USA 10 year treasury bond at 0.59% early this morning. Thirty year rate at 1.16%

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

6.  TURKISH LIRA:  UP  TO 6.9941..

S&P Futures Rebound As Oil Buyers Emerge

&P futures rebounded alongside European and Asian stocks on Wednesday as oil pared its recent historic losses and upbeat quarterly earnings reports lifted investor sentiment following a two-day selloff due to a record crash in oil prices, even as companies warned of more pain in the coming months. Treasurys and the dollar dropped while gold gained, rising above $1700.

Emini futures climbed after the cash index dropped more than 3% a day earlier, when investors shrugged off the progress of a fresh relief package to counter the economic hit from the coronavirus. The Stoxx Europe 600 Index rose broadly in the wake of Tuesday’s slump.

Earlier in the session, Asian stocks gained, led by energy and communications, after falling in the last session. Markets in the region were mixed, with India’s S&P BSE Sensex Index and Jakarta Composite rising, and Japan’s Topix Index and Australia’s S&P/ASX 200 falling. The Topix declined 0.6%, with Istyle and Financial Products Group falling the most. The Shanghai Composite Index rose 0.6%, with Junzheng Energy and Ningbo Construction posting the biggest advances

The S&P 500 index fell nearly 5% in the first two days of the week as May WTI contracts plunged below zero for the first time ever, and the benchmark Brent hovered near 1999-lows, triggering alarm about the hit to the global economy from a near halt in business activity.

Texas Instruments headed higher in thin premarket trading as it reported better-than-expected first-quarter results and said a strong inventory allowed it to be prepared for the disruptions caused by the pandemic. Netflix deemed a “stay-at-home” stock as the wide restrictions boost demand for online streaming services, more than doubled its own projections for new customers in the first quarter. However, its shares fell 2% as the company failed to translate the subscriber surge into additional revenues, while forecasting a weaker second half if the lockdown measures were to be lifted. Chipotle reported soaring digital and home delivery sales and said it had enough cash and liquidity to get through the next year.

Trader attention remains glued to oil, with Brent crude erasing a tumble that reached as much as 17% overnight, while West Texas oil also pared most of its slide, even though the June contract was trading just above single digits.

Yesterday, OPEC Delegates discussed the oil market crisis within a conference call; although the call was reportedly not designed to make a new oil decision and they were said to consider a May 10th meeting for further production cuts. Furthermore, Saudi, UAE, and Kuwait did not take part in the call and a delegate noted that OPEC+ members will be unable to start production cuts earlier because April’s oil production is already committed for export contracts. Meanwhile, the Iraq Energy Minister said OPEC+ could take additional steps to absorb the oil surplus but added that taking further measures by producer countries depends on global market development and compliance by other OPEC+ and other non-member producers with the oil cut deal. Russia again downplayed the gravitas of the oil market situation. Elsewhere, the fallout from the Texas Railroad Commission meeting saw two out of three Texas Oil and Gas regulators stated they are not ready to vote on oil output cuts today and they are to revisit the issue on May 5th. Sticking with North America, sources stated that producers in Alberta, Canada have reportedly already voluntarily cut 400k-700k BPD, according to Energy Intel. The contracts saw further downside as EU trade got underway, with WTI June resided under USD 11/bbl whilst Brent held onto losses of over 10% and eyed USD 17/bbl to the downside; however, since then we have recovered somewhat in what has been choppy trade for the complex but, ultimately, are in proximity to the lows – particularly for WTI, which ekes mild gains at the time of writing

The one thing that can definitively send oil sharply higher is a reopening in the global economy, and to this end, governments are devising ways to return people to work even as they discover infections are more extensive than they insisted only weeks ago. The coronavirus killed two people in California in early and mid-February, suggesting the pathogen was circulating in the U.S. weeks earlier than health officials thought. While Germany and a few other countries are moving to relax lockdown measures to contain outbreaks, Singapore – a global standard bearer for taming the deadly illness early on – has now become home to Southeast Asia’s largest recorded outbreak and is racing to regain control.

Meanwhile, corporate earnings have been mixed. Consumer-goods companies from brewers to paint-makers sounded notes of caution on spending. Heineken NV canceled its interim dividend, while Kering said it doesn’t see a recovery in the U.S. or Europe before at least June or July after sales at its flagship brand Gucci tumbled.

“There’s no way you can predict earnings right now,” Michael Cuggino, portfolio manager at Pacific Heights Asset Management LLC, said on Bloomberg TV. “It’s virtually impossible until we have more visibility with respect to how to world comes out of the coronavirus on the other side.”

Treasuries edged lower along with the dollar and European bonds fell. As Bloomberg reported yesterday, European policymakers plan to hold a call on Wednesday evening where they may discuss whether to accept junk-rated debt as collateral from lenders. Related to that, Italian bond yields and the risk premium the sovereign pays on its debt rose on Wednesday as the funding of the already heavily indebted country’s coronavirus stimulus plans remained uncertain. It may take European Union countries until the summer or even longer to agree on how to finance an economic recovery from the coronavirus pandemic as major disagreements still persist, an official with the bloc said on Wednesday.

“What we’re generally seeing is that there is less possibility that we are going to get some sort of conclusion on Thursday and even beyond that,” said Peter McCallum, rates strategist at Mizuho, referring to an EU summit on Thursday where measures to support coronavirus-hit economies will be discussed.

Yields across Italy’s curve rose, with the 10-year yield up as much as 10 basis points to 2.27%, a new peak since March 18, when the ECB announced its emergency purchase programme after trading hours. The gap between its 10-year bond yield and Germany’s – effectively the risk premium Italy pays – rose as high as 271 basis points, just five basis points away from touching their highest since the announcement of the emergency measures.

Spanish bonds extended declines and underperformed euro-area debt after the nation’s Treasury launched a massive 10-year syndicated debt sale.

In FX, a dollar gauge snapped two days of gains as European stock markets and U.S. equity futures rebounded. The dollar slipped versus all G10 peers;  The Australian dollar advanced against its Group-of-10 peers after leveraged funds covered short positions exposed by better-than- expected retail sales data. Japan’s government bonds rose as the slump in oil prices raised concern about the global economic outlook, prompting demand for haven assets; the yen advanced for the first time in three days. Economic data include mortgage applications. AT&T, Thermo Fisher and Biogen are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 1.2% to 2,764.25
  • STOXX Europe 600 up 1.1% to 327.88
  • MXAP up 0.2% to 141.41
  • MXAPJ up 0.7% to 457.74
  • Nikkei down 0.7% to 19,137.95
  • Topix down 0.6% to 1,406.90
  • Hang Seng Index up 0.4% to 23,893.36
  • Shanghai Composite up 0.6% to 2,843.98
  • Sensex up 1.9% to 31,216.92
  • Australia S&P/ASX 200 unchanged at 5,221.25
  • Kospi up 0.9% to 1,896.15
  • Brent Futures down 9.2% to $17.56/bbl
  • Gold spot up 0.6% to $1,695.43
  • U.S. Dollar Index down 0.1% to 100.16
  • German 10Y yield rose 2.0 bps to -0.457%
  • Euro down 0.02% to $1.0856
  • Brent Futures down 9.2% to $17.56/bbl
  • Italian 10Y yield rose 21.4 bps to 1.978%
  • Spanish 10Y yield rose 10.4 bps to 1.108%

Top Overnight News

  • Singapore reported more than 1,000 new cases for the third straight day. New coronavirus cases in Germany stayed close to a three-week low as the country begins gradually lifting lockdown measures
  • The U.K. bond market looks set to face a flood of bond sales that dwarfs the current record for government borrowing set during the global financial crisis
  • ECB policy makers will hold a call on Wednesday evening where they may discuss whether to accept junk-rated debt as collateral from lenders
  • The euro area’s run of record-breaking government bond sales has continued in Spain, highlighting that demand for the region’s higher-yielding securities remains robust, when the price is right
  • Global funding markets are beginning to diverge — easing in the U.S. while still showing signs of stress in Europe
  • Oil’s plunge below zero for the first time in history has broken the models that many traders rely on to calculate risk. For Wall Street’s biggest banks, that has meant a franticscramble over the past 24 hours to recalculate the value and riskiness of their trading books

Asian equity markets initially extended on losses as the subdued tone rolled over once again from Wall St where sentiment was pressured by the continued oil market rout, but initially finished relatively mixed. Price action included the WTI June contract prices briefly slipping to single digits and with underperformance in tech amid President Trump’s plans for an immigration ban given the sector’s reliance on foreign talent. ASX 200 (U/C) and Nikkei 225 (-0.7%) were weaker with Australia dragged lower by the mining related sectors and as corporate updates trickled in with Beach Energy also suffering from softer quarterly production, while the Japanese benchmark briefly fell below 19k as the recent detrimental currency flows reverberated across exporter names. Hang Seng (+0.4%) and Shanghai Comp. (+0.6%) conformed to the subdued global risk tone but with losses in the mainland limited by anticipation of further support after Chinese President Xi pledged stronger macro policy tools to soften the epidemic fallout and the State Council noted that China will boost targeted assistance to those in need, as well as small businesses. Finally, 10yr JGBs advanced as the took advantage of the weakness in stocks and amid the BoJ’s presence in the market today for JPY 710bln of JGBs heavily concentrated in 3yr-10yr maturities.

Top Asian News

  • China’s Banks Hit by Increase in Bad Loans in First Quarter
  • India Eases Up on Currency Intervention, Protecting Reserves
  • Bank Indonesia Says IDR Exchange Rate Stability Maintained
  • Bank Indonesia Makes First Direct Purchase of Government Bonds

European equity futures see tailwinds from the turnaround in sentiment at the end of the APAC session (Euro Stoxx 50 +1.1%), with US equity futures also posting gains in excess of 1% in early trade. Sectors see broad-based gains, albeit energy lags as the complex remains under pressure from storage scarcity. In term of the breakdown, Tech names lead the gains following earnings from STMicroelectronics (+6.2%), whilst the sector also sees tailwinds from Texas Instruments (+3.0% pre-mkt), with the former, despite misses on its metrics, noted that Q1 was exited with stable net financial position, over USD 2.5bln in liquidity and available credit facilities above USD 1bln. Looking at other movers, Roche (+1.7%) is supported post earnings in which it topped estimates and pharma sales rose 7% YY. The Co. also stated that Clinical Phase III study to evaluate the safety and efficacy of Actemra/Roactemra in severe COVID-19 pneumonia is ongoing in several countries, with results expected in early summer, adding there is capacity for a rapid increase of production. On the flip side, Credit Suisse (+0.4%) is hampered vs. the region after it stated it is to take an additional EUR 900mln loan loss provisions in Q1. Finally, other earnings-related movers include Akzo Nobel (+7.9%), Ericsson (+6.4%) and Kering (-5.42), the latter reported a decline in Gucci sales of 23.2% YY.

Top European News

  • Spain Follows Italy With Record-Setting Bond Demand at Sale
  • EU Braces for Tense Call as Leaders Given No Plan to Work On
  • Heineken Pulls Payout, Kering’s Gucci Sales Slump: Earnings Wrap

In FX, another swing in broad risk sentiment amidst less pronounced pressure on oil and other commodities has aided the latest Aussie, Kiwi and Loonie recovery, but with the former also benefiting from a short squeeze in wake of a record rise in retail sales per preliminary data for March. Aud/Usd took some time to digest the release and acknowledge the fact that stock-piling for COVID-19 boosted consumption, but subsequently breached 0.6300 on the way to circa 0.6350 with stops tripped above 0.6325 and macro fund offers over 0.6340 absorbed along the way. Meanwhile, Nzd/Usd retested 0.6000, albeit with a lag as Aud/Nzd rebounded from sub-1.0550 to around 1.0580, and Usd/Cad has retreated between 1.4237-1.4139 parameters on the aforementioned relative stability in crude prices ahead of Canadian CPI.

  • GBP/SEK/NOK  – Sterling has unwound some of its recent underperformance on technical rather than fundamental grounds given Cable remaining above the 30 DMA (1.2257) and revisiting 1.2300+ levels, while Eur/Gbp has reversed towards 0.8800 as the DXY meanders within a tight band on the 100.000 handle and single currency continues to straddle 1.0850. Similarly, the Scandis are seeing some reprieve from oil and pandemic risk aversion, with Eur/Nok and Eur/Sek both off highs near 11.5950 and 10.9700 respectively and the Swedish Krona weighing up more unconventional Riksbank easing in the form of municipal QE in the run up to next week’s official policy meeting.
  • JPY/EUR/CHF – All sticking to pretty narrow and well trodden recent confines vs the Dollar, as the Yen flits from 107.86 to 107.52, Euro hovers below 1.0900 and above 1.0800 amidst decent option expiry interest at the former (1.5 bn) and 1.0825 (1 bn), and Franc pivots 0.9700.
  • EM – Softer than expected SA CPI has not hindered the Rand amidst the overall upturn in risk appetite, but the Lira is treading more cautiously into the CBRT even though the Central Bank has already lifted FX swap limit transactions to 30% from 20% in what may be an effort to keep Usd/Try under 7.0000 in the event that rates are cut again, as widely expected, but perhaps more than the -50 bp consensus. On that note, the Mexican Peso seems to have taken Banxico’s emergency ½ point ease in stride or at least lubricated by the less fractious state of trade in crude markets.
  • Australian Retail Sales (Mar P) 8.2% (Prev. 0.5%); largest increase on record. ABS said the March sales data indicated unprecedented demand for food retailing industry. (Newswires)

In commodities, WTI and Brent front month futures remain choppy, but ultimately mixed this morning, with WTI swinging between gains and losses whilst Brent remained in the red for the entirety of the session thus far. Yesterday, OPEC Delegates discussed the oil market crisis within a conference call; although the call was reportedly not designed to make a new oil decision and they were said to consider a May 10th meeting for further production cuts. Furthermore, Saudi, UAE, and Kuwait did not take part in the call and a delegate noted that OPEC+ members will be unable to start production cuts earlier because April’s oil production is already committed for export contracts. Meanwhile, the Iraq Energy Minister said OPEC+ could take additional steps to absorb the oil surplus but added that taking further measures by producer countries depends on global market development and compliance by other OPEC+ and other non-member producers with the oil cut deal. Russia again downplayed the gravitas of the oil market situation. Elsewhere, the fallout from the Texas Railroad Commission meeting saw two out of three Texas Oil and Gas regulators stated they are not ready to vote on oil output cuts today and they are to revisit the issue on May 5th. Sticking with North America, sources stated that producers in Alberta, Canada have reportedly already voluntarily cut 400k-700k BPD, according to Energy Intel. The contracts saw further downside as EU trade got underway, with WTI June resided under USD 11/bbl whilst Brent held onto losses of over 10% and eyed USD 17/bbl to the downside; however, since then we have recovered somewhat in what has been choppy trade for the complex but, ultimately, are in proximity to the lows – particularly for WTI, which ekes mild gains at the time of writing. Looking at the metals market, spot gold benefits from the Dollar pullback and reclaimed its USD 1700/oz handle. While copper trades subdued around USD 2.25/bbl, with miner Antofagasta stating that Q1 copper production rose almost 5% YY.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 7.3%
  • 9am: FHFA House Price Index MoM, est. 0.3%, prior 0.3%

DB’s Jim Reid concludes the overnight wrap

Markets stuck to the risk-off theme once again yesterday, as a negative cocktail of oil market turmoil, weak corporate earnings and concerns about Europe conspired to make this a more difficult week so far for equities. Indeed, with the S&P 500 down a further -3.07% yesterday, that means the index has had its worst start to a week for 5 weeks, back when markets were at their most tumultuous. And in another warning sign, the VIX index has also had its largest 2-day increase since it hit its peak back in mid-March.

All eyes were on oil once again yesterday, where governments tried unsuccessfully to contain the rout. Brent Crude fell below $20/barrel for the first time since 2002 and down -24.40% on the day. Things haven’t gotten any better overnight where it’s down another -12.62% to $16.89/bbl. May WTI settled yesterday at $10.01 but the previous day’s shenanigans (lows of -$37.63) extended into the June contract which was down -43.37% to $11.57 and is trading at $10.90 this morning. As our oil analyst Michael Hsueh pointed out the previous evening, negative pricing could extend into the June contract so the sharp move wasn’t a surprise.

OPEC ministers did not decide on any new policy measures on an unscheduled call last night, which followed reports earlier in the day that they’d start their planned output cuts immediately rather than waiting until the start of May. In a joint closing statement the ministers said that they should “continue holding such consultations”, but it remains unclear if any country has the ability or the inclination to cut further than what is expected to come on May 1. Meanwhile President Trump tweeted that “We will never let the great U.S. Oil & Gas Industry Down”, and that he’d instructed the Energy and Treasury Secretaries “to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!” Unsurprisingly, oil-producing currencies took a hit once again, with the Russian Ruble (-2.00%) and the Norwegian Krone (-1.85%) both suffering against the US dollar.

Other global equity markets joined the S&P lower, with the NASDAQ (-3.48%), the STOXX 600 (-3.39%) and the DAX (-3.99%) all seeing major declines. One sector that had a bad day were European banks, with the STOXX Banks index down -4.60% at its lowest ever level since the index began in the late 1980s, having now lost almost half its value since the start of this year. The overall risk-off came against the backdrop of some weak corporate earnings. Netflix surged +12% right after the closing bell, but within 2 hours had given the entire post-market rally to be back near unchanged. The online streaming company announced nearly 16 million subscribers (nearly double consensus estimates of 8.47 million), but the company’s guidance did not deliver as the company is forecasting a number of subscriptions will be cancelled when confinement ends. Going through the other highlights, Coca Cola (-2.24%) said that they’d experienced a global volume decline of around 25% since the start of April with sales outside the home suffering thanks to the pandemic. Lockheed Martin (-2.32%) lowered their sales outlook, while HCA Healthcare (-4.50%) withdrew their 2020 guidance and suspended their quarterly dividend programme. In Europe, PSA (+0.26%) said that they expected the European vehicle market to shrink by 25% this year, as they announced a 15.6% decline in their Q1 sales.

The overnight session has seen markets in Asia follow Wall Street’s lead however the good news is that the declines are more modest. Indeed the Nikkei (-1.06%), Hang Seng (-0.50%), Shanghai Comp (-0.16%), ASX (-0.14%) and Kospi (-0.81%) are all posting small declines. Elsewhere, futures on the S&P 500 are up +0.30% while yields on 10y USTs are down -1.8bps to 0.553%.

In other news, the US senate passed $484bn in new pandemic relief funds yesterday. President Trump said soon after that he would sign the legislation and then turn to the next round of stimulus which is said to include aid to state and local governments and coronavirus caregivers, amongst others. The bill is likely to be voted on in the House today before it moves to President Trump’s desk. Trump also said in an overnight press conference that he’ll ask larger companies to return money they accessed from the federal stimulus package because it was intended to help small businesses while at the same conference Treasury Secretary Mnuchin threatened “severe consequences” for such companies. Trump also gave clarity on his decision on stopping immigration, saying the pause will be in effect for 60 days and will apply only to individuals seeking permanent residency with some exceptions and he will likely sign the order today.

Ahead of tomorrow afternoon’s European Council videoconference, there was a Reuters story yesterday which said that EU member states were moving closer to an agreement that would see the next long-term budget used for a stimulus package, rather than being done through coronabonds or some other form of joint debt issuance. However, the report also said that leaders continue to disagree on the implementation and “seem virtually certain to defer any final decision”. This was later backed up by Italian Prime Minister Conte, who said he didn’t think that leaders would manage to reach a “definitive solution” tomorrow. However he did say he was ready to work with the EU on a new ESM line which was seen as conciliatory.

The spread of 10yr Italian yields over bunds was up by +24.6bps to 263bps, its highest level since 18 March, though still below the intraday highs of 320bps reached that day. A large €16bn syndicated deal was successfully launched but likely led to indigestions across other parts of the curve. A reminder that S&P will likely opine on their review of Italy’s BBB rating by Friday. Late in the session Bloomberg reported that the ECB will hold a call tonight to discuss whether to allow junk rated debt as collateral. They’ve already done this for Greece and they might be preparing the way for Italian debt if the need arises over the coming weeks or months.

Meanwhile Spanish (+14.2bps), Greek (+31.3bps) and Portuguese (+13.9bps) spreads all saw sizeable moves wider as well, with the Spanish spread over bunds actually closing at its highest level since April 2017. Outside of southern Europe, sovereign debt actually performed much stronger, with US 10yr Treasury yields closing just above their lowest ever level, at 0.569%. 10yr bund yields also saw a fall of -2.9bps, while gilt yields were down -4.0bps.

Wrapping up with the data releases, there wasn’t a great deal out yesterday, though the ZEW survey from Germany saw the current situation reading fall to -91.5 in April (vs. -77.5 expected), which was its lowest level since May 2009. Nevertheless, the expectations reading actually surprised, coming in at (28.2 vs. -42.0 expected), its highest level since July 2015. We are going to get some choppy diffusion indices over the next couple of months as they measure activity relative to the previous month so it’s easy to have bigger swings in both directions than even the likely volatile nature of the data would suggest. Over in the US, existing home sales in March fell by -8.5% month-on-month, which was their largest monthly decline since November 2015. Finally in the UK, before the pandemic hit in the December-February period, the employment rate hit a record high of 76.6%.

To the day ahead, and data releases include March CPI readings from both the UK and Canada, the European Commission’s advance Euro Area consumer confidence reading for April, Italian industrial sales and industrial orders for February, along with weekly MBA mortgage applications and the FHFA house price index for February from the US. From central banks, Turkey will be deciding on rates and we’ll also hear from the ECB’s Rehn. Finally, earnings out today include AT&T and Thermo Fisher Scientific.

 

3A/ASIAN AFFAIRS

WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 16.97 POINTS OR 0.60%  //Hang Sang CLOSED UP 99.81 POINTS OR 0.42%   /The Nikkei closed DOWN 142.83 POINTS OR 0.74%//Australia’s all ordinaires CLOSED DOWN .09%

/Chinese yuan (ONSHORE) closed UP  at 7.0826 /Oil UP TO 11.28 dollars per barrel for WTI and 19.20 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0826 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0983 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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

NORTH KOREA

The story behind the illness of Kim..

(zerohedge)

Pyongyang Reportedly ‘On Lockdown’ As Trump Admits ‘We Don’t Know What’s Going On’ With Kim Jong Un

Months ago, as the novel coronavirus was still barrelling across China during the early days of the outbreak, we reported on rumors about an outbreak inside North Korea. The regime has gone to great lengths to suppress any and all information about how quickly the virus is spreading within NK’s borders. Only a handful of stories – including a horrifying rumor about the country executing a quarantine violator with an anti-aircraft gun – based on little more than rumor managed to trickle out.

At the time, we joked that we probably wouldn’t hear much more out of North Korea unless KJU managed to catch the virus. Of course, in this time when truth is stranger than fiction (who ever thought producers would effectively be paying buyers to take delivery of West Texas crude) the notion that this joke has now become a reality is hardly a surprise. So, when we saw the headlines last night about KJU potentially being on his death bed, we were inclined to take them seriously.

When South Korea’s Yonhap reported that it had seen no evidence to support the story, we suspected this wouldn’t be the end of it. Crucially, Yonhap didn’t deny the claims, it merely reported that South Korean Intelligence had nothing to back them up. One would think if there truly was something seriously wrong with Kim, that his neighbors to the South would be among the first to know.

 

Whatever the reason for Yonhap’s denial, we received more clarity from President Trump last night: During a Q&A with reporters, the president said he “doesn’t know” whether Kim is ill, but nevertheless, wished him luck in dealing with any ailment.

“We don’t know,” Trump said at the briefing. “I can only say this, I wish him well,” adding that he and the Communist Dictator had gotten along well while working together. However, Trump added that he “wouldn’t place much credence” in the report.

Still, as US Intelligence ponders the question ‘where in the world is KJU’, the Nikkei Asian Review has offered a quick guide to a subject that is rarely discussed in the west: the North Korean line of succession.

The Kim family dynasty is known as the “Mt. Paektu bloodline.” Here’s more from NAR:

The Kim family asserts the legitimacy of its rule by citing family lineage – the Mount Paektu bloodline – that goes back to Kim Il Sung, the country’s founding father. Since then, the country’s leadership has been passed down to his son Kim Jong Il and later his grandson Kim Jong Un.

The Kim family asserts the legitimacy of its rule by citing family lineage – the Mount Paektu bloodline – that goes back to Kim Il Sung, the country’s founding father. Since then, the country’s leadership has been passed down to his son Kim Jong Il and later his grandson Kim Jong Un.

Given the importance of this family lineage, Kim Jong Un’s sister, Kim Yo Jong, could be handed over power in the event of an emergency. Kim Yo Jong, 31, vice director of the Propaganda and Agitation Department of the Workers’ Party of Korea, was reinstated as an alternate Politburo member of the party on April 11, solidifying her position as the de facto No. 2.

Kim also has an older brother, Kim Jong Chul, who was passed over for the leadership. The father, Kim Jong Il, considered Kim Jong Chul “girlish” and not fit to lead the country, the family’s former Japanese sushi chef Kenji Fujimoto wrote in an autobiography.

CNN reported Monday that Kim was in critical condition, eliciting a flood of ‘fake news’ accusations to pile on top of CNN’s coverage of Chris Cuomo emerging from quarantine ‘for the first time in weeks’. Yonhap cited a senior SK official saying Kim was likely recovering from a heart procedure in a remote village after visiting a hospital used only by the Kim family. But others, including intelligence officials from the Japanese government, have pushed back on this, saying nobody knows what’s going on, and the situation is being closely monitored, with another SK official relaying reports that Pyongyang was put on lockdown on Friday, for a reason that wasn’t immediately made clear.

Kim is thought to be staying in a provincial region together with close aides, Yonhap News reported, citing a senior South Korean official.

Meanwhile, Yoon Sang-hyun, chairman of the South Korean National Assembly’s foreign affairs committee, told reporters that North Korea’s secret police completely locked down Pyongyang several days ago. He said there are signs of an abnormal situation involving Kim Jong Un.

“I know about the reports,” said Japanese Chief Cabinet Secretary Yoshihide Suga of the news about Kim’s health. “We will gather and analyze information while working closely with the U.S. and others.”

This isn’t the first KJU death rumor, as Nikkei reports.

Since Kim Jong Un became supreme leader in 2012, he has gained weight, and there has been frequent speculation about his poor health. In September 2014, reports of his activities were suspended and rumors that he was brain dead emerged. South Korea’s National Intelligence Service eventually said a cyst was surgically removed from his left ankle.

Kim’s last activity to be reported by North Korean media was his attendance of meeting of the Politburo of the Worker’s Party on April 11. On April 15, Kim Il Sung’s birthday, rumors about Kim Jong Un’s ill health became rampant after there was no report of him attending a ceremony at Kumsusan Palace of the Sun in Pyongyang, where his grandfather’s body lies in state. Kim Jong Un had not missed the ceremony there before.

Daily NK, a South Korean online news outlet focused on the North, reported Monday that Kim received a cardiovascular procedure on April 12 at a special hospital exclusively used by the Kim family located north of Pyongyang. Kim is recovering, with his medical team returning to the capital, Daily NK reported.

“No unusual signs have been identified inside North Korea,” South Korean presidential spokesman Kang Min-seok said Tuesday. “There is nothing we can confirm with regard to Chairman Kim’s alleged health problem.”

So, is KJU still alive? Probably, but nobody outside NK can say for sure.

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA

Pompeo says multiple labs in China must be investigated for Covid 19 origns

(zerohedge)

Pompeo Says “Multiple Labs” In China & Not Just Wuhan’s Must Be Investigated For COVID-19 Origins

In a new exclusive interview with UAE’s The National on Wednesday, Secretary of State Mike Pompeo said the US is demanding of Beijing access to all major Chinese bio-research virology labs.

“We, collectively the world, still has not had access to the Chinese labs,” the top US diplomat said. Crucially, The National reports of the new statements:

“For the first time, he mentioned multiple labs beyond Wuhan’s Institute of Virology (WIV) that would be critical to access to determine the origin of the virus.”

 

Getty Images/The Hill

Reiterating that the virus originated in China while calling into doubt the official WHO narrative and assertion that coronavirus originated in animals Pompeo further said:

“These labs in China, not just the WIV, there are multiple labs that where the Chinese Communist Party is working on various levels of pathogens,” Mr Pompeo told The National. “It is important that there would be a global effort that those people working with dangerous substances have the capability to prevent accidental release.”

The new statements will no doubt be taken as another Washington provocation in Beijing’s eyes, coming as speculation goes full mainstream that the deadly virus actually originated at either the Wuhan Institute of Virology (8 miles from the Wuhan wet market where cases first popped up last year) or the nearby Wuhan Center for Disease Control and Prevention (a mere 300 yards from the wet market).

Pompeo said US allies like Germany and Australia have voiced support to US administration efforts to get the bottom of it, and said further in the interview it “would be important to the question presented [determining the origin of the virus] and it’s important we get the answer, not just as a historical matter, but so we can prevent such a thing from happening again… it is time that there would be transparency and access so that the world can respond.”

Since last week the mainstream media, including CNN, began taking seriously outbreak origin theories centering on Wuhan’s high-level research labs. For example Gordon G. Chang is a columnist for The Daily Beast, a publication which elsewhere mocked “conspiracy theories” centered on an accidental or purposeful release:

Gordon G. Chang@GordonGChang

It is becoming increasingly clear that the escaped from one of the two bio labs in , probably the Wuhan Institute of Virology. Patient Zero is almost certainly a worker there. See: https://fxn.ws/3elXXBM. @FoxNews

Sources believe coronavirus outbreak originated in Wuhan lab as part of China’s efforts to compete…

There is increasing confidence that COVID-19 likely originated in a Wuhan laboratory not as a bioweapon, but as part of China’s effort to demonstrate that its efforts to identify and combat viruses…

foxnews.com

He simultaneously slammed Chinese officials’ latest statements blaming the US for the spread of COVID-19, specifically calling out “their disinformation campaigns that it began in Europe or brought by US soldiers.”

Joyce Karam

@Joyce_Karam

From the conversation, US is not buying WHO’s statement yesterday that virus originated from animals, not a lab.

Pressure growing (US & some EU countries) for access to *multiple labs* in China but no sign that Chinese gov will grant, or @who will push…

“This is dangerous,” Pompeo said, adding: “this is not political, you have to know the nature and the pathway that the virus took in order to save lives, and that didn’t happen, they were too slow.”

He also again went after the WHO in the new remarks, in a now familiar administration refrain highlighting the global health body’s failures and slowness to act. This means the WHO itself is unlikely to assist with US demands to access China’s virology labs, making it a distant prospect in practical terms.

END

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN

This should be interesting  Trump orders navy to shoot down and destroy Iranian gunboats

(zerohedge)

Trump Orders Navy To “Shoot Down And Destroy” Iranian Gunboats

Ever the showman, and a practiced master of distraction, President Trump has just lobbed another smokebomb at the MSM by tweeting that he has ordered Navy ships to fire on Iranian gunboats if they “harass” US ships.

Donald J. Trump

@realDonaldTrump

I have instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea.

The Iranian military has on occasion harassed US servicemen station in the area, and back in 2016, there was a brief but intense international when Iran detains US sailors and 2 ships, one of which had reportedly broken down. Both ships had accidentally floated into Iranian waters, according to the Iranians.

So far, Trump’s tweet doesn’t appear to be getting too much attention. The Iranian regime is struggling with a brutal coronavirus outbreak that has forced the regime to start reopening its economy for fear of an all-out collapse. The US’s push to enforce sanctions and add further strain has appalled some European allies, who have moved to try and shore up the regime via a facility that bypasses the dollar-based financial system to transact directly with the Iranians.

For everybody wondering ‘why now?’, Trump’s command follows the release of footage showing Iranian ships harassing Navy warships.

Matt A US military statement condemned what it called “dangerous and harassing” approaches of six American vessels in international waters by nearly a dozen Iranian fast boats.

Watch the video of that incident below:

 

6.Global Issues

CORONAVIRUS//GLOBE/UPDATE

Is The “Second Wave” Of The COVID-19 Pandemic Already Here? (And Is It Worse Than The First?)

Authored by Michael Snyder via The End of The American Dream blog,

Top health officials and the mainstream media keep insisting that “the worst is behind us”, but is that actually true?  According to Worldometers.info, 2,804 new coronavirus deaths were added to the U.S. total during the 24 hour period that just ended, and that was a huge increase over the 1,939 new deaths from the previous 24 hour period.  In addition, we are seeing an alarming explosion in the number of newly confirmed coronavirus cases in Singapore, Pakistan, Saudi Arabia, Peru, India, Brazil and Russia.

So while it is true that the lockdowns have temporarily slowed down the spread of the virus in some areas of the globe, it appears that we are witnessing the emergence of a “second wave” in other areas.  And of course the countries that have been successful in slowing down this pandemic could see another huge surge in cases once their lockdowns are ended.  Sadly, the truth is that we are still in the early stages of this crisis, but most people don’t seem to realize that.

On Tuesday, CDC Director Robert Redfield made headlines all over the globe when he warned that there could be a “second wave” of COVID-19 next winter…

A second coronavirus outbreak could emerge this winter in conjunction with the flu season to make for an even more dire health crisis, the director of the Centers for Disease Control and Prevention told The Washington Post in an interview.

“There’s a possibility that the assault of the virus on our nation next winter will actually be even more difficult than the one we just went through,” CDC Director Robert Redfield said in a story published Tuesday.

“And when I’ve said this to others, they kind of put their head back, they don’t understand what I mean.”

But what if he is completely wrong and the “second wave” is already here?

Or perhaps it may be more accurate to say that the first wave has never ended.

If you go to the Johns Hopkins dashboard for this pandemic, you will notice that the global curve of confirmed cases has not “flattened” much at all even though much of the planet has been “locked down” for weeks.

And the antibody data is telling us that virtually the entire global population is still vulnerable.  According to the WHO, only 2 to 3 percent of the entire global population has developed antibodies for this virus…

The head of the World Health Organization on Monday said that likely no more than 2% to 3% of the global population have developed antibodies for COVID-19.

Here in the United States, a study of adults in L.A. County found thatonly 4 percent of them had developed antibodies for this virus…

Four percent of adults in Los Angeles County tested positive for COVID-19 antibodies in a recent study, suggesting hundreds of thousands of people might have actually been infected in early April when only 8,000 cases had been confirmed.

So what this means is that we are a long, long, long way from herd immunity.

More than 95 percent of the population is still vulnerable, and that means once the lockdowns are lifted this virus could start spreading like wildfire inside the U.S. once again.

In fact, the number of confirmed cases in Georgia is soaring just as that state is preparing to end the current restrictions…

The number of coronavirus deaths and infections in Georgia has spiked over a 24 hour period as the state prepares to partially lift lockdown restrictions this week – and cases across the country have doubled in two weeks to more than 200,000.

The death toll in the state increased by 85 in 24 hours, bringing the total number of fatalities to 772. Infections spiked by more than 1,000, bringing the number of cases in the state to more than 19,300.

And in Massachusetts, authorities are warning that the death toll in that state will likely double “in less than a week”

Massachusetts has quickly become a hot spot of coronavirus infections with the state’s death toll expected to double in less than a week.

COVID-19 deaths are expected to surpass 2,000 this week in Massachusetts where officials are scrambling to boost hospital capacity and trace new infections to curb the spread of the disease.

That certainly doesn’t sound like “the worst is behind us” to me.

And I don’t even know what to make of this story from Philadelphia

The horror of the coronavirus pandemic took an especially macabre turn on Sunday afternoon when a Ford pickup truck pulled up behind the Philadelphia Medical Examiner’s Office with five or six bagged bodies stacked in its open cargo bed.

The driver got out, spoke briefly to a medical examiner’s employee who seemed unnerved by the delivery, and then climbed onto the cargo bed, walking on bodies that initially had been covered by mats, according to an Inquirer photographer who was working near the site in University City.

Look, I understand that a lot of people out there are still mocking this pandemic and are absolutely convinced that it is a “nothingburger”.

One of those skeptics was 60-year-old John McDaniel

On March 15, he seemingly commented on Ohio governor Mike DeWine’s stay-at home order, which required shops, bars and restaurants to close.

“If what I’m hearing is true, that DeWine has ordered all bars and restaurants to be closed, I say bulls***!,” the post reads.

“He doesn’t have that authority. If you are paranoid about getting sick just don’t go out. It shouldn’t keep those of us from living our lives.”

Now he is dead, and it was the virus that he mocked that killed him.

And even if you get this virus and survive, it can permanently scar your lungs and leave you with “breathing difficulties for months”.

So please don’t mock this virus, because if you get hit really hard by COVID-19 it will be one of the worst experiences of your life even if you live through it.

For those that believe that a vaccine will be the golden ticket that gets us out of this mess, I am afraid that you may be setting yourself up for disappointment.  There has never been a successful vaccine developed for any coronavirus, and one leading expert is openly warning that it is possible that “we will never get a coronavirus vaccine”.

And if things weren’t already complicated enough, now a new study has discovered that there are “at least 30 different variations” of COVID-19.

A new study in China has found that the novel coronavirus has mutated into at least 30 different variations.

The results showed that medical officials have vastly underestimated the overall ability of the virus to mutate, in findings that different strains have affected different parts of the world, leading to potential difficulties in finding an overall cure.

So not only do scientists have to come up with a successful vaccine for a coronavirus for the first time in history, they also have to hope that they are targeting the correct strain.

Good luck with all that.

Unfortunately, the truth is that this pandemic is going to be with us for a long time to come, and what we have experienced so far is just the very beginning of our problems.

Even if all of the lockdowns around the world were kept in place for the foreseeable future, this virus would continue to spread.

And in the long run, approximately the same number of people are going to catch this virus and approximately the same number of people are going to die no matter what restrictions are instituted.

This pandemic is not going to be over until COVID-19 roars through most of the population and herd immunity is achieved, and the numbers are telling us that we are a long, long way from that point.

END

Michael Every…a good explanation of where we are standing right now!

Rabobank: It Is Understandable Why Some Are Wondering When We Get Hyper-inflation And Currency Collapse

Submitted by Michael Every of Rabobank

With so much liquidity being thrown into so many markets by so many so fast, it is perhaps understandable that some are wondering when we get inflation, hyper-inflation, and/or currency collapse. However, given we are riddled with World War Two analogies at the moment, allow me to do two Churchill impressions: “Never was so much owed by so many to so few” – and “Never was so much owned by so few. (Yes, one does not need to read Piketty to know that wealth and income inequality under the Pharaohs was even more unfair than it has been trending under every US President since Nixon, but you hopefully get the point.)

in short, global debt levels are at records and rising – which is where some see the inflation coming from; and yet wealth and income inequality are also at staggering levels – and rising as mind-blowing liquidity flows not into many pockets but into relatively few.

For all of the staggering scale of fiscal stimulus packages–20% of GDP in Japan, 15% and rising in the UK, and who even knows in the US?–ask yourself this: is the ordinary working family feeling better or worse off right now? Unemployment is soaring but you are lucky enough to get furloughed with 80% pay – isn’t that a 20% pay cut? And is a pay-rise now waiting for you in 2021? And good luck if you own a small business as most of most of the fiscal packages we see are going out in loan support to larger firms. Yet if you give USD1m to a private firm whose revenue has collapsed by USD1m, is this actually stimulus at all? It leaves you at an expensive stand-still – and also means more debt to carry post virus, dragging growth lower.

If that kind of “too much to too few” stimulus worked properly then QE would have worked and we would already be in wonderful hyperinflation: is there really *more* money flowing around than before in *real* economy?

Yes, as we have stressed before, the world is changing very rapidly from the pre-COVID status quo. Taboos against state spending and state aid are collapsing the same way Churchill’s public support did when he won World War Two but then lost in a landslide election favouring socialism, free healthcare, and nationalised industry. Yet the economic damage being wrought by this virus still lies ahead of us long before we suddenly arrive in a promised land of recovery, inflation, and bolshie workers. We are, at worst, at the Dunkirk stage of the war against COVID-19, where a lucky escape means the hard fighting is still ahead of us; or, more optimistically, we are just after the Battle of Stalingrad, where the war’s momentum has decisively shifted but massive pain still lies ahead.

A report in the South China Morning Post today quotes Chinese scientists as saying that they believe the virus has mutated rapidly, and that this explains the apparent discrepancy in the severity of the symptoms and the mortality rates being seen around the world: in short, the European and New York versions may be a different, more lethal strain than those on the US West Coast and in some other countries. If so, what does that imply for lockdown lifting – or for a workable vaccine?

Meanwhile the UK government, for just one example, still can’t give find it within its collective intelligence to tell people to wear masks, despite clear evidence that if both sides in an interaction wear a mask, the potential infection rate plummets; and the same government still can’t manage to source enough masks (or gowns) from anywhere in the world for key health workers – the Health Secretary last night revealing the brilliant innovation of now “talking to manufacturers directly and not middle-men”.

Let’s actually look at “markets”, parts of which can still send signals worth listening to. What is oil saying about where we are along the World-War-Two-to-post-World-War-Two-social-nirvana spectrum? As I type,Brent Crude for June delivery was trading down 16% on the day at a 21-year low while the June WTI contract was -9% after losing half its value on Tuesday – but at least it isn’t massively negative yet. This is even despite President Trump tweeting: “We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!” All very Churchillian – but in a 1942 not a 1945 kind of way.

Likewise, 10-year US Treasuries, which until we get full Fed yield curve control are still a valuable indicator, are trading at 0.55%, down 2bp, and hovering around record lows. They don’t smell socialism in the air.

Yet as for emerging markets, even despite low US bond yields all we see is more pain. Mexico surprised with an emergency 50bp cut yesterday taking rates down to 6% and has promised additional liquidity measures. Only another 575bp to go to catch up to where economic reality is for the US, one might say. Indeed, many EM appear to be happily cutting away as inflation disappears – which obviously means much, much more downside for their currencies, even from depleted levels. Turkey is the next to do so today, most likely, where the consensus is a 50bp cut to 9.25%. So only 900bp left to go to catch up to the US, one might say. In turn, this naturally means an even stronger USD – and so lower commodity prices, and weaker EM economies, which are already running to the IMF in record numbers, and lower global growth, and lower global inflation.

Yes, folks, at some point we will all be celebrating in Times Square. It will happen. At some point afterwards the many will then be wanting to ensure that capital does not only flow to the too few – and the reckoning will be awesome for markets to behold.

But for now at least all oil and Treasuries can offer us is blood, sweat, and tears – and not enough protective equipment to deal with them.

7. OIL ISSUES

Bill Holter explains beautifully the problem of negative oil and what it means..

(courtesy Bill Holter)

“Negative” oil?

Bill Holter

I made the comment on Saturday’s call, “we had negative interest rates, now we wait for negative oil prices”.  I received a few questions because the negative price of anything makes no sense right?  Well actually it does.  Because demand has dropped so precipitously and production has continued unabated, supply is piling up.  In the real world this is a huge problem because the oversupply must be stored somewhere.  Oil is now being stored on previously empty tankers because land based storage facilities are overflowing.

It is now estimated that in roughly 30 days there will be no more spare capacity for storage.  It will be at this point producers will need to “pay” (as in accept a negative price) for produced oil.  Crazy yes but also reality.  Beyond the obvious that low (or negative) oil prices will destroy individual companies and thus the entire industry, there are other ramifications more nuclear to the financial and real economic systems.

First, think of the unemployed.  The oil patch will be forced to let several hundred thousand workers go …and then of course the ripple effects.  But the bigger hit will be the ripples financially.  Think of all the debt that will default?  The producers themselves will struggle and many will fail.  When they fail, payments will also to various areas including and specifically on their debt.  Who owns the debt?  It is spread far and wide but these bondholders who previously believed they sat on secure assets will find out they are also the big losers.

Another death will be the “petro” dollar.  The dollar has been supported from oil revenues being reinvested into Treasuries since 1973.  Yes the Fed will step in to replace the demand but this is outright monetization and anyone with half a brain knows where this will end up.  In fact, oil nations who previously supported the petrodollar will likely be seen as sellers of US Treasuries just to stay afloat adding more pressure to bond prices and thus interest rates!

$11 oil is not sustainable and will destroy the entire industry if not the entire financial system … but we very well may see negative prices before the anomaly ceases.  Negative interest rates and negative oil prices make no sense whatsoever, negative rates have already occurred, negative oil prices are the other shoe to drop.

For those who believe the ESF and PPT can rig all prices all the time, what is happening in oil should show you there are loose ends or unintended consequences not previously thought of.  “They” have lost control of the car and have only the gas pedal left as the brakes failed and the steering wheel is unattached.  Not that you should forget about everything else but just oil prices alone guarantee massive widespread debt failures/bankruptcies.  “Someone” loses and loses huge which spills over in a massive ripple effect.  The problem now is that ripples are coming from all directions like a kid just who threw a handful of stones into a pond.  …Oil is certainly one of the larger more important stones!

Standing watch,
Bill Holter

end

Craig Hemke explains the mechanics of how we got negative oil and how this can happen to gold in the reverse:

Crude Collapse Concerns COMEX – Craig Hemke

April 22, 2020

 

2

A complete implosion and restructuring of the global pricing scheme for gold & silver is not out of the question in the weeks and months ahead…

 by Craig Hemke via Sprott Money News

After watching front month NYMEX crude oil futures collapse into negative pricing on Monday, you should be sure to consider the possibility of an exact opposite scenario playing out one day soon in COMEX gold futures.

What happened Monday in NYMEX crude oil? It can be summarized this way:

  • The May20 crude oil contract was scheduled to go off the board and into delivery on Tuesday, April 21.
  • Anyone long the contract after Tuesday the 21st would be assumed to stand for delivery through the NYMEX facility in Cushing, Oklahoma.
  • But storage facilities in Cushing are reported to be “full”. As such, there is no need or demand for holding these May20 contracts into delivery. Where would you put it?
  • Those parties that remained long the May20 contract thus needed to sell. However, to sell you also need a buyer—someone interested in adding a long or covering an existing short.
  • And in this case, there were NO BUYERS. Thus, what you saw was a true bidless market.
  • The result?
  • See below:

Without any parties looking to buy creating an actual bid-ask spread, the bidless market is an environment where only sellers exist on the offer. Price then resets lower and lower until buyers finally emerge. In NYMEX crude, that “price” was actually NEGATIVE. Amazing.

And it was all caused by a glut of the physical commodity. With no demand for the underlying physical, the price discovered through derivative trading collapsed.

Consider now the potential for a diametrically opposite situation in COMEX gold. Why and how could this unfold?

  • COMEX gold also has “delivery month” contracts that serve as the “front month” for trading purposes until they go off the board and into delivery—at which time the trading volume rolls into the next scheduled month.
  • In delivery, anyone still long the contract can stand for delivery through the COMEX vaults in New York. (And now might also stand for fractional ownership of bullion bars in London, too.)
  • But global demand for physical gold outstrips supply at present, as many refineries, mines, and mints are closed worldwide due to Covid-19.
  • Thus we are seeing a growing need/demand to hold COMEX contracts into delivery. For the current month of Apr20, total gold deliveries on COMEX exceed 3,000,000 ounces. This is more than 3X the usual demand for a “delivery month”.
  • If an extreme shortage develops—or if any sort of “run” on the bullion bank fractional reserve system begins—demand for delivery through the COMEX and LBMA will soar.
  • Demand for the front/delivery month contract will surge. However, to buy a contract, you will also need a seller—someone interested in adding a short or selling an existing long.
  • And in this case, there may be NO SELLERS. Thus, what you may see is a true offerless market.
  • The potential result? The exact opposite of what you witnessed Monday in NYMEX crude oil.

Could this opposite scenario actually play out in COMEX gold? You may be reluctant to say yes, as this type of situation would seem unlikely and unprecedented. However, prior to Monday, April 20, the idea of negative pricing for the world’s most important commodity was similarly unlikely and unprecedented.

We now know that quite literally ANYTHING is possible in 2020. From global pandemics to economic collapse to QE∞ to -$40 crude. As such, a complete implosion and restructuring of the global pricing scheme for precious metal is not out of the question in the weeks and months ahead.

end

 

The ill fated USO Oil ETF is executing a one for 8 revers slight trying to hide the damage done on Monday. Cushing is still overbooked so expect the same next month.

(zerohedge)

USO Oil ETF To Execute 1-For-8 Reverse Stock Split

With chaos in the crude space getting worse by the day, and with some predicting that oil could plunge as low as negative $100 per barrel, every day is now a scramble for survival for the largest oil ETF, the USO, which is desperate to avoid the liquidation that its smaller peer, the OIL ETN which was fully redeemed, succumbed to yesterday. And to survive, it will succumb to the lowest tricks in the book including puffing up its stock price using such cheap gimmicks as reverse stock splits.

On Wednesday morning, USO manager USCF said in an 8K filing that “it will execute a one-for-eight reverse share split that will be effective for shareholders of the United States Oil Fund.”

Some more details from the 8K:

The reverse share split will reduce the number of USO’s shares outstanding and will result in a proportionate increase in the net asset value per share (“NAV”) of USO. As a result of the reverse share split, USO shareholders on April 28, 2020 will receive one post-split share of USO for every eight pre-split shares of USO they hold. Immediately after the reverse share split is effective, USO’s post-split shares will have an NAV that is eight times higher than that of pre-split shares.

The reverse share split will affect all of USO’s shareholders. The reverse share split will not affect any shareholder’s percentage interest in USO, except to the extent that the reverse share split results in a shareholder receiving cash in the transaction. The NYSE Arca does not permit the trading of fractional shares. As described below, shareholders otherwise entitled to receive fractional shares as a result of the reverse share split will thus receive cash in lieu of such fractional shares.

Considering that the biggest holder of the US are very unsophisticated retail investors, the 8x “jump” in the price of every USO share just may fool the majority of shareholders that the ETF won’t go “….. and it’s gone” next month, should oil really hit -$100.

end

USO shuffles in oil holdings trying to avoid a debacle it endured on Monday.  They reallocated their holdings to future months. What happens if all 4 of these months go negative?

(zerohedge)

In Desperate Scramble To Stay Alive, USO Shuffles Oil Holdings, May Invest In “Other Oil-Related” Assets

The managers of the infamous USO ETF really do not want to be dissolve this “retail killer” which in Kyle Bass’s words has “vaporized billions from unweary investors this week alone.”

Just hours after USCF investments, the managers behind the largest oil ETF announced a 1-for-8 reverse stock split, moments ago the USO – which was briefly halted – unveiled yet another shift to its composition to relieve pressure on the June WTI Futures, and to spread the pain among even more forward months. Specifically, the USO announced that it would reallocate as follows:

  • June: 40% down to 20%
  • July: 55% down to 50%
  • August: 5% up to 20%
  • Sept: 0% up to 10%

Why is the USO doing this? To avoid a repeat of the May WTI implosion, and to prevent a crash on May 19 when the June WTI contract expires. Now that we have seen what happens on maturity day, when on Monday the maturity of the May contract sparked a liquidation wave as nobody wanted to take delivery, traders were preparing to frontrun the USO getting delivery next month by shorting the hell out of the June contract. And since, it is all so very circular, by removing selling pressure on the front contract, the USO may fight to live another day.

That was not all, however, because separately the USO also announced it may “also invest in other oil-related investments such as cash-settled options on Oil Futures Contracts, forward contracts for oil, cleared swap contracts and non-exchange traded OTC transactions that are based on the price of oil, other petroleum-based fuels, Oil Futures Contracts and indexes based on the foregoing”

“USO intends to attempt to continue tracking USO’s benchmark as closely as possible, however significant tracking deviations may occur above and beyond the differences described herein.”

It wasn’t clear just what other oil-linked assets the USO may invest in, however by now it is clear that the best return it can hope for is to merely be long puts on the USO itself.

In short – anything to if not avoid, then at least delay liquidation.

And while we admire the USCF’s efforts to keep the USO alive, what would be very bad is if all 3 or now 4 WTI futures in which it has positions, were to turn negative. That’s when the USO would have no choice but to finally fold.

end

My goodness:  oil stored at sea accelerates to a jaw dropping 250 million barrels

(zerohedge)

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0874 UP .0018 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 107.66 DOWN 0.048 (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 1.2372   UP   0.0071  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.4155 DOWN .0037 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED UP 16.97 POINTS OR 0.60% 

 

//Hang Sang CLOSED UP 99.81 POINTS OR 0.42%

/AUSTRALIA CLOSED DOWN 0,09%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 99.81 POINTS OR 0.42%

 

 

/SHANGHAI CLOSED UP 16.97 POINTS OR 0.60%

 

Australia BOURSE CLOSED DOWN. 09% 

 

 

Nikkei (Japan) CLOSED DOWN 142.83  POINTS OR 0.74%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1697.90

silver:$14.89-

Early WEDNESDAY morning USA 10 year bond yield: 0.59% !!! UP 2 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.18 UP 2  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 100.00 DOWN 26 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.27% UP 12 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.01%  DOWN 2   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 1.14%//UP 15 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:2.10 DOWN 7 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 96 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.41% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.51% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.0831  DOWN     .0025 or 25 basis points

USA/Japan: 107.81 UP .090 OR YEN DOWN 9  basis points/

Great Britain/USA 1.2330 UP .0029 POUND DOWN 29  BASIS POINTS)

Canadian dollar UP 54 basis points to 1.4137

 

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The USA/Yuan,CNY: AT 7.0842    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1008  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6/9941 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.01%

 

Your closing 10 yr US bond yield UP 4 IN basis points from TUESDAY at 0.61 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.21 UP 5 in basis points on the day

Your closing USA dollar index, 100.43 UP 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 WEDNESDAY: 12:00 PM

London: CLOSED UP 129.60  2.30%

German Dax :  CLOSED UP 165/18 POINTS OR 1.61%

 

Paris Cac CLOSED UP 54.34 POINTS 1.25%

Spain IBEX CLOSED UP 84.90 POINTS or 1.28%

Italian MIB: CLOSED UP 314.43 POINTS OR 1.91%

 

 

 

 

 

WTI Oil price; 14.41 12:00  PM  EST

Brent Oil: 20.35 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    76.02  THE CROSS LOWER BY 1.07 RUBLES/DOLLAR (RUBLE HIGHER BY 107 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.241 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 :  13.95//

 

 

BRENT :  20.64

USA 10 YR BOND YIELD: … 0.61…up 4 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.22..up 5 basis points..

 

 

 

 

 

EURO/USA 1.1818 ( down 38   BASIS POINTS)

USA/JAPANESE YEN:107.70 DOWN .014 (YEN UP 2 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 100.38 UP 12 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2320 UP 19  POINTS

 

the Turkish lira close: 6.9898

 

 

the Russian rouble 75.89   UP 1.19 Roubles against the uSA dollar.( UP 119 BASIS POINTS)

Canadian dollar:  1.4176 UP 16 BASIS pts

 

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

 

The Dow closed UP 456.94 POINTS OR 1.99%

 

NASDAQ closed UP 232.15 POINTS OR 3.84%

 


VOLATILITY INDEX:  41.57 CLOSED DOWN 3.84

LIBOR 3 MONTH DURATION: 1.043%//libor dropping like a stone

LIBOR/OIS:  .9800//DROPPING AS WELL

 

USA trading today in Graph Form

Bonds Dumped As Gold, Stocks, Crude, Crypto, & The Dollar Jump

After two days of carnagery, everything (almost) was up today…

Oil futures rallied across the complex led by the June contract that ripped higher across the US cash equity market open…

June WTI managed to squeeze up to $14…

But, in another lesson for the retail bagholder, as they ate the contango losses, USO (the Oil ETF), plunged 9% today…

Gold futures surged 3% higher – tagging $1740…

Silver also soared…

US equities managed gains on the day – after two ugly down days – with Nasdaq (again) squeezed over 3% higher as Trannies were unable to hold green… (weak close, perhaps after an unexpected jump in California COVID deaths)

But none of it was enough to get green on the week…

The Dow bounced 500 points hihger but was unable to get back to its critical 50% retrace levels…

The S&P 500 was unable to reach its 50DMA once again…

VIX was down on the day but held above 40 and remains in backwardation with a kink in the curve around the election…

Source: Bloomberg

Traders were very excited at NFLX streaming subs last night but as they realized the malarkey that saw subs double expectations but revenues only meet, they sold… (as someone said this morning, forgive us for not remembering – “if they only got an extra7MM subs during the biggest pandemic of all time, their growth is over…”

The Dollar rebounded notably intraday, higher for the 3rd days in a row…

Source: Bloomberg

Cryptos all rallied strongly on the day…

Source: Bloomberg

But…

Bonds were lower (in price) with 2Y, 5Y, and 7Y yields now flat on the week (30Y was worst performer on the day, up 6bps)…

Source: Bloomberg

10Y bounced off recent lows again…

Source: Bloomberg

Gold is at a record high against the yuan…

Source: Bloomberg

And extends its record run against the euro…

Source: Bloomberg

Finally, we note that the S&P 500’s dividend yield has never been so high relative to 10Y TSY Yields…

Source: Bloomberg

Are dividends all about to be slashed? Or are yields just too damn low?

And while stocks may have bounced recently, implied correlations suggest systemic risks remain extremely high…

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

These guys are the first to be carried out on a stretcher:  Interactive brokers are stuck with 88 million dollar loss in the negative oil pricing Monday night

(zerohedge)

Interactive Brokers Stuck With $88 Million Loss After Oil-Trading Clients Bust

We said there will be blood” after yesterday’s historic collapse in crude futures prices… and now we know where the first blood is.

In a statement from Interactive Brokers Group, they admit some of their clients faced losses that were not covered (remember, futures are not like stocks where a $0 price is the biggest loss you can face)…

“…as has been widely reported, the energy markets yesterday exhibited extraordinary price activity in the New York Mercantile Exchange (NYMEX) West Texas Intermediate Crude Oil contract. The price of the May 2020 contract dropped to an unprecedented negative price of $37.63. This price was the basis for determining the settlement price for cash-settled contracts traded on the CME Globex and also on a separate, expiring cash-settled futures contract listed on the Intercontinental Exchange Europe (“ICE Europe”).

Several Interactive Brokers LLC (“IBLLC”) customers held long positions in these CME and ICE Europe contracts, and as a result they incurred losses in excess of the equity in their accounts.

IBLLC has fulfilled the firm’s required variation margin settlements with the respective clearinghouses on behalf of its customers.

As a result, the Company has recognized an aggregate provisionary loss of approximately $88 million.

The Company does not believe that any anticipated losses will have a material effect on its financial condition.

As Thomas Peterffy noted later on CNBC, “we had around 15% of the open interest in the May oil contract,” which means other brokers likely have even more dramatic losses as the rest of the open interest faces losses, adding “we are going to have to learn to cope with negative futures prices.”

Forward to around 1:20 for Peterffy’s details:

CNBC: “Across the industry, do you think there is going to be some really serious pain?”

Peterffy: “There is about another half a billion dollars of losses that somebody is sitting on… and I do not know who those folks are.”

Interactive Brokers’ Peterffy on earnings from CNBC.

Additionally, after the close, and following CME’s move yesterday, ICE reports it has taken steps to prepare for negative trading and is closely monitoring the situation. ICE Brent options contracts will switch models to enable trading of negative strikes if there’s market demand to do so, the company said.

END

We now have our 2nd meat company closing shop:  the huge Tyson foods

(zerohedge)

 

Food-Shortage Fears Well-Founded? Tyson Closes Nation’s Largest Pork Plant Over COVID Concerns

Food-security remains a significant problem during coronavirus lockdowns. The next big issue unfolding is the shuttering of the nation’s food plants could drive food inflation sky high.

On Wednesday, Tyson Fresh Meats, the beef and pork subsidiary of Tyson Foods, released a statement that said its plant in Waterloo, Iowa, will suspend operations until further notice. 

The company said the Waterloo location is its largest pork plant, has been running at reduced output “due to worker absenteeism.”

Tyson is planning to test all 2,800 workers for COVID-19 at the facility later this week.

“Protecting our team members is our top priority and the reason we’ve implemented numerous safety measures during this challenging and unprecedented time,” said Steve Stouffer, group president of Tyson Fresh Meats.

“Despite our continued efforts to keep our people safe while fulfilling our critical role of feeding American families, the combination of worker absenteeism, COVID-19 cases and community concerns has resulted in our decision to stop production.”

Stouffer warned that the closure of the pork plant could ripple through the production chain and cause significant disruptions to the “nation’s pork supply:” 

“The closure has significant ramifications beyond our company, since the plant is part of a larger supply chain that includes hundreds of independent farmers, truckers, distributors and customers, including grocers,” Stouffer said. “It means the loss of a vital market outlet for farmers and further contributes to the disruption of the nation’s pork supply.”

The company said workers would be “compensated while the plant is closed.” There was no firm timeline on when the plant would reopen. However, there were several factors, including the “outcome of team member testing for COVID-19.”

We noted over the weekend that meat prices across the country are surging as food processing plants are closing because of the virus.

The latest plant closure was China-owned Smithfield Food’s factory in Sioux Falls, South Dakota, the largest pork processing plant in the US, due to a coronavirus outbreak, could leave Americans without pork products.

Also, health officials in Illinois closed Hormel’s Rochelle Foods plant last Friday, a move that could trigger a shortage of Spam products.

And it appears food inflation could be imminent as coronavirus is leading to the shutdown of food manufacturing plants across the country.

end

iv) Swamp commentaries)

 

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

The King Report April 22, 2020, Issue 6243                                                                                Independent View of the News

 

 

@realDonaldTrump: We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!

Thanks to another government intervention, May WTI oil traded as high as 13.86 yesterday, its final day of trading.  However, June is now the ‘front month’ or lead future contract.  So, fear of delivery in coming weeks pushed the WTI June contract to a low of $6.50, a 66% crash.  July WTI oil bottomed at 17.29.

BBG’s @lisaabramowicz1: This could ignite another round of bankruptcies among US energy producers, which have already had a spate of recent insolvencies. Investors are demanding 9.1 percentage points in extra yield to own energy junk bonds vs non-energy junk, even post-Fed intervention in credit markets

BBG’s @JenniferJJacobs: Trump admin received information that Kim Jong Un had heart surgery last week and if he’s alive, his health is poor, I’m told. KJU hasn’t been seen at key events in recent days. It’s unclear to US officials if he’s dead or alive. (CNN 1st reported his condition’s grave.)

@KatyTurNBC: North Korean leader Kim Jong Un is brain dead, according to two US officials. He recently had cardiac surgery and slipped into a coma, according to one US current and one former US official. @NBCNews confirms and adds to CNN scoop from me, @ckubeNBC @carolelee”

    I’ve deleted that last tweet out of an abundance of caution. Waiting on more info. Apologies.

BBG’s @samkimasia: Yonhap [So. Korean news agency] cites an official as saying there’s no particular sign pointing to Kim Jong Un being in grave dangerThe Korean rumor about a coma is exactly the same as one from 2014. While it’s indeed odd Kim didn’t show up on April 15, we should calm down

Gov. DeSantis: Florida ‘has flattened the curve’ without ‘draconian orders’

https://www.foxnews.com/media/desantis-florida-covid-flattening-curve

Israeli Professor Shows Virus Follows Fixed Pattern

Irrespective of whether the country quarantined like Israel, or went about business as usual like Swedencoronavirus peaked and subsided in the exact same way. In the exact, same, way. His graphs show that all countries experienced seemingly identical coronavirus infection patterns, with the number of infected peaking in the sixth week and rapidly subsiding by the eighth week…

     Professor Yitzhak Ben Israel concludes in his analysis summary paper that the data from the past 50 days indicates that the closure policies of the quarantine countries can be replaced by more moderate social distancing policies. The numbers simply do not support quarantine or economic closure

https://townhall.com/columnists/marinamedvin/2020/04/15/israeli-professor-shows-virus-follows-fixed-pattern-n2566915

@CBSNews: Democratic governors ask White House for help calling off protesters https://cbsn.ws/2yrn2uK

Barr warns of legal action if governors overstep pandemic authority, infringe liberties

https://justthenews.com/government/courts-law/ag-barr-open-taking-action-if-governors-overstep-their-authority#.Xp-Ic597LbM.twitter

The Subways Seeded the Massive Coronavirus Epidemic in New York City

Maps of subway station turnstile entries, superimposed upon zip code-level maps of reported coronavirus incidence, are strongly consistent with subway-facilitated disease propagation. Local train lines appear to have a higher propensity to transmit infection than express lines. Reciprocal seeding of infection appears to be the best explanation for the emergence of a single hotspot in Midtown West in Manhattan. Bus hubs may have served as secondary transmission routes out to the periphery of the city.

http://web.mit.edu/jeffrey/harris/HarrisJE_WP2_COVID19_NYC_13-Apr-2020.pdf

Johns Hopkins Covid-19 cases by US county

Queens (NY) 40,714, Kings (NY) 35,203, Nassau (NY) 30,677, Bronx (NY) 29,505, Suffolk (NY) 28,127, Westchester (NY) 24,306, Cook (Chicago) 22,101, New York 16,987, Wayne (Detroit) 13,912, LA 13,823, Bergen (NJ) 13,011, Hudson (Jersey City)11,150, Essex (NJ) 10,729, Richmond (NY) 9,986, Union (NJ) 9,972, Miami-Dade 9,657, Philadelphia 9,553, Rockland (NY) 9,457, Middlesex (NJ) 8,737, Passaic (NJ) 8,479  https://coronavirus.jhu.edu/us-map

A looming deflation shock is state and municipal debt and budgets.

We opined that the Big Blue states that have unserviceable debt, big budget deficits and are leading the league in taxpayer flight, will face the financial abyss due to Covid-19 and state shutdown costs.  The politics of a federal bailout of profligate states like Illinois and New York are extremely treacherous.  This is not 9/11 when the entire USA rallied behind NYC.  Now, people are facing unimaginable financial hardships from shutdowns due to a Covid-19 crisis that is largely a NY, NJ, Chicago (Cook Cty Jail, some nursing homes) Detroit, Miami and Philly problem.  People are growing irate at totalitarian measures.

WSJ: Escape from New York City – Many New York City residents are packing up their apartments and heading for the hills or suburbs to escape the pandemic—some permanently

https://www.wsj.com/articles/escape-from-new-york-city-11587477601?shareToken=st975c39837a024decba4e885f090a1d6a

New York state’s unemployment system ‘collapsed’ following a surge in claims, Gov. Cuomo says

https://www.cnbc.com/2020/04/21/new-york-states-unemployment-system-collapsed-following-a-surge-in-claims-gov-cuomo-says.html

NYC schools could face 50 percent budget cut without federal aid: Cuomo https://trib.al/DGBkiep

Los Angeles Mayor Declares Fiscal Emergency, Seeks Cuts

Garcetti’s budget would cut spending by about $230 million, with about $80 million of that from furloughing about 15,000 civilian workers…

https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes

New Jersey Leader Preps for Furloughs in Benefit-Boosting Bill

The legislation would save state and local governments in New Jersey $750 million over a three-month period if 25% of 400,000 state and local employees are furloughed, according to a memo summarizing the proposal. The state hasn’t instituted any furloughs as of Monday… The Center on Budget and Policy Priorities projects a historic $500 billion shortfall for states through June 2022, while a survey of 2,400 local officials found nearly all of them expect deficits…

https://www.bloomberg.com/news/articles/2020-04-20/new-jersey-leader-preps-for-furloughs-in-benefit-boosting-bill

[Illinois] State lawmakers seek more than $41B in federal coronavirus aid — including $10B pension bailout – The Illinois Republican Party slammed that request on Twitter, accusing Democrats of “brazenly using a global pandemic as an excuse to ask the [federal government] to bail them out of the fiscal disaster they manufactured over the last two decades.”…

https://chicago.suntimes.com/politics/2020/4/18/21226547/illinois-coronavirus-federal-aid-41-billion

GOP 2024 candidate @NikkiHaley: This is infuriating. We can’t bailout Illinois’s notoriously corrupt and mismanaged pension system. We can’t have Congress going to the trough for things like this. States should not get windfalls. It All has to be paid back.

Washington has no need to fund New York’s wasteful ways

The Empire State will need help closing a deficit of $10 billion to $15 billion…

https://nypost.com/2020/04/20/washington-has-no-need-to-fund-new-yorks-wasteful-ways/

Muni Market Chaos Sparked By Covid Has Potential to Trigger Default Tsunami

https://www.zerohedge.com/economics/muni-market-chaos-sparked-covid-has-potential-trigger-default-tsunami

Michigan Governor Gretchen Whitmer: “In World War II, people weren’t lining up at the capitol to protest that they had to drop everything and build planes or tanks, or to ration food.”

In WWII the economy surged.  Women entered the workforce in mass as many men went off to war.  The economy was not shutdown; it was turbocharged.  This is beyond a false equivalency.

The object of a quarantine is to lockdown infected people; not the general population.

We stated in yesterday’s missive that due to central bank and government intervention, markets are artificial and capricious.  Assets are grossly mispriced to economic and utility values.  When the Fed announced it would buy Investment Grade debt, IG ETFs went to large premiums over net asset value.  The same thing happened to HY (high yield or junk) bonds.  Oil ETFs now sport large premiums to oil.  The XLE (Energy Stock ETF) no longer tracks oil.  Eventually, there will be a jolting readjustment.

John Solomon: How Adam Schiff secretly thwarted efforts to bring transparency in Russia probe

Democrat demanded DNI keep evidence from Trump, holds transcripts that were supposed to be made public… “Under no circumstances shall ODNI, or any other element of the Intelligence Community (IC), share any HPSCI transcripts with the White House, President Trump or any persons associated with the White House or the President,” Schiff wrote in a March 26, 2019 letter to then-Director of National Intelligence Dan Coats. “Such transcripts remain the sole property of HPSCI, and were transmitted to ODNI for the limited purpose of enabling a classification review by IC elements and the Department of Justice,” Schiff added… If Schiff possesses the declassified transcripts, he does not appear to have told Republicans on his committee. Several GOP lawmakers and staff on the committee told Just the News they have never been alerted that ODNI finished its review…

https://justthenews.com/accountability/russia-and-ukraine-scandals/how-adam-schiff-secretly-thwarted-efforts-bring#.Xp7epC-gBMw.twitter

DJT retweeted this yesterday: 7 Devastating Revelations about Crossfire Hurricane in New Releases

  1. The FBI Always Intended to Spy on the Trump Campaign…
  2. FBI Failed to Brief Trump About Its Page Suspicions
  3. The FBI Spied on the Trump Administration
  4. Rep. Adam Schiff Is a Rotten, No-Good, Two-Faced Liar – Rep. Schiff (D-Calif.) lied about everything in his “response memo” to Rep. Devin Nunes’s (R-Calif.) memo on FISA abuse…
  5. FBI Relied Solely on Fake News to Support Portions of the FISA Applications
  6. The Special Counsel Pushed Pathetic Intel Too
  7. Oh, the Sweet Irony – the FBI “notes that Pages continues to be active in meeting with media outlets… to refute claims of his involvement with Russian Government efforts to influence the 2016 U.S. Presidential election.” “This approach is important,” the FBI posits, “because, from the Russian Government’s point-of-view, it continues to keep the controversy of the election in front of the American and world media, which has the effect of undermining the integrity of the U.S. electoral process and weakening the effectiveness of the current U.S. Administration”. https://thefederalist.com/2020/04/20/7-devastating-revelations-about-crossfire-hurricane-in-new-releases/#.Xp5knP8U52J.twitter

@realDonaldTrump on Monday night: In light of the attack from the Invisible Enemy, as well as the need to protect the jobs of our GREAT American Citizens, I will be signing an Executive Order to temporarily suspend immigration into the United States!

USA TODAY POLL: 80% of Americans Want to Limit Immigration during Coronavirus Pandemic

April 13, 2020 https://www.usatoday.com/story/news/politics/2020/04/13/poll-americans-fears-covid-19-explode-four-devastating-weeks/2970032001/

When Trump started to campaign for president in 2015 we told inquirers about his authenticity that ‘we had seen this movie before’.  Every election cycle, Trump implies he will run for president and the news stations, late-night TV shows, Howard Stern and the MSM interview Trump, giving him millions of dollars of free publicity.  Before the 1st GOP Debate, Trump was near the bottom in polls of GOP candidates.  Then, at the first debate, he made a big issue of the woman in SF that was killed by an illegal immigrant.  He jumped to #1 in polls and never looked back.

It eventually dawned on us that Trump was with the majority, according to national polls, on every major issue: immigration, globalization, jobs, NAFTA, etc.  Around that time a top Chicago real estate developer told us that Trump is running on his real estate development experience.  You have to know the area, the trends, the demographics and what people want.  Otherwise, you go broke.  Trump is largely a poll-driven president, even on social issues.

Well that is all for today

I will see you THURSDAY night.

 

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