APRIL 30//GOLD CLOSED DOWN $15.95 TO $1685.40//SILVER DOWN 26 CENTS TO $14.86//FIRST DAY NOTICE: GOLD TONNAGE STANDING FOR MAY; 25.007 TONNES (A RECORD FOR A NON ACTIVE MONTH)//FOR SILVER: 52.7 MILLION OZ//A RECORD FOR ANY MONTH//CORONAVIRUS UPDATES //JUDY SHELTON..PLANNING TO CONFIRM TO THE FED (SHE IS A STAUNCH GOLD BUG)//TRUMP CONSIDERING WAYS TO PUNISH CHINA FOR THE CORONAVIRUS/ANOTHER 3.8 MILLION AMERICANS SEEK UNEMPLOYMENT BENEFITS//CONSUMER SPENDING CRASHES//HUGE NUMBER OF SWAMP STORIES FOR YOU TONIGHT///

GOLD:$1685.40  DOWN $15.95   The quote is London spot price

 

 

 

 

 

Silver:$14.86  DOWN 26 CENTS

This Thursday is OTC/LBMA options expiry//EXPIRED TODAY AT 10 AM

 

 

Closing access prices:  London spot

 

i)Gold : $1686.80  LONDON SPOT  4:30 pm

 

ii)SILVER:  $15.00//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  1686.80 1:30 PM

JUNE GOLD:  $1693.70  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE JUNE: $8.30.//PREMIUMS WENT DOWN AGAIN

 

CLOSING SILVER FUTURE MONTH

SILVER APRIL COMEX CLOSE: XXX

SILVER MAY COMEX CLOSE;   $14.90…1:30 PM.//SPREAD SPOT/FUTURE MAY:  4 CENTS  PER OZ//PREMIUMS DOWN 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:  765/1833

issued:  1157 and 500  =  1657

EXCHANGE: COMEX
CONTRACT: MAY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,703.400000000 USD
INTENT DATE: 04/29/2020 DELIVERY DATE: 05/01/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 25
099 H DB AG 48
118 H MACQUARIE FUT 218
132 C SG AMERICAS 80
135 H RAND 3
152 C DORMAN TRADING 23
323 H HSBC 52
355 C CREDIT SUISSE 19 52
357 C WEDBUSH 1
624 C BOFA SECURITIES 31
657 C MORGAN STANLEY 1 91
661 C JP MORGAN 1157 763
661 H JP MORGAN 500
685 C RJ OBRIEN 4
686 C INTL FCSTONE 24 39
690 C ABN AMRO 380
732 C RBC CAP MARKETS 17
737 C ADVANTAGE 20
800 C MAREX SPEC 28
880 C CITIGROUP 18
905 C ADM 2 70
____________________________________________________________________________________________

TOTAL: 1,833 1,833
MONTH TO DATE: 1,833

 

NUMBER OF NOTICES FILED TODAY FOR  may CONTRACT: 1833 NOTICE(S) FOR 183300 OZ (5.701 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  1833 NOTICES FOR 183300 OZ  (5.701 TONNES)

 

 

SILVER

 

FOR may

 

 

3670 NOTICE(S) FILED TODAY FOR  18,350,000  OZ/

total number of notices filed so far this month: 3670 for 18,350,000 oz

 

BITCOIN MORNING QUOTE  $8879 UP  122 

 

BITCOIN AFTERNOON QUOTE.: $8,750 DOWN $33

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $15.95: AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

 

 

GLD: 1,056.50 TONNES OF GOLD//

 

 

WITH SILVER DOWN 26 CENTS TODAY: AND WITH NO SILVER AROUND

 

NO SILVER OZ ADDED/OR REMOVED FROM THE SLV

 

 

RESTING SLV INVENTORY TONIGHT:

SLV: 412,826  MILLION OZ./

 

 

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE  BY A GOOD SIZED 677 CONTRACTS FROM 138,349 UP TO 139,026 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE GOOD SIZED GAIN IN OI OCCURRED WITH  OUR 1 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION,  CONSIDERABLE SPREADING LIQUIDATION AND WE  A HUMONGOUS  SILVER OZ STANDING AT THE COMEX FOR MAY. WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 1594 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: 150 AND JULY: 720  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  870 CONTRACTS. WITH THE TRANSFER OF 870 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 870 EFP CONTRACTS TRANSLATES INTO 4.350 MILLION OZ  ACCOMPANYING:

1.THE 1 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

4.660  MILLION OZ FINAL STANDING FOR APRIL

52.725 MILLION OZ INITIALLY STANDING FOR MAY

 

WEDNESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 1 CENT).. BUT, OUR OFFICIAL SECTOR/BANKERS  WERE NOT  SUCCESSFUL IN THEIR ATTEMPT TO FLEECE A TINY AMOUNT OF  SILVER LONGS FROM THEIR POSITIONS AS THE GAIN AT THE COMEX WAS DUE TO FINAL SPREADING LIQUIDATION, ON TOP OF THE STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS AND THE GIGANTIC AMOUNT OF SILVER OZ STANDING FOR MAY.  WE HAD ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 1547 CONTRACTS OR 7.74 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:

19,071 CONTRACTS (FOR 20 TRADING DAYS TOTAL 19,071 CONTRACTS) OR 95.355 MILLION OZ: (AVERAGE PER DAY: 953 CONTRACTS OR 4.767 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF APRIL: 95.355 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 12.60% 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:          988.85 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                   95.355 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 INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 677, DESPITE OUR 1 CENT LOSS IN SILVER PRICING AT THE COMEX ///WEDNESDAY THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 870 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  1547 CONTRACTS (WITH OUR 1 CENT LOSS IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 870 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A GOOD SIZED INCREASE OF 677 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 1 CENT LOSS IN PRICE OF SILVER/ AND A CLOSING PRICE OF $15.12 // WEDNESDAY’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: 3670 NOTICE(S) FOR  18,360,000 OZ OF SILVER.

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018. AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.70//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.970 MILLION OZ; JAN:  5.075 MILLION OZ.//FEB 1.480 MILLION OZ//MAR: 23.005 MILLION OZ/APRIL 4.660 MILLION OZ//MAY  52.725 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 SMALL SIZED 1176 CONTRACTS TO 499,640 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 SMALL LOSS OF COMEX OI OCCURRED DESPITE OUR CONSIDERABLE COMEX LOSS IN PRICE  OF $7.65 /// COMEX GOLD TRADING// WEDNESDAY// WE  HAD CONSIDERABLE BANKER SHORT COVERING , A  VERY STRONG INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED DESPITE  THE LOSS IN THE PAPER PRICE OF GOLD.

WE HAD 0 ISSUANCE OF OUR NEW 4 GC CONTRACT

 

WE GAINED A SMALL 473 CONTRACTS  (1.471 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 1510 CONTRACTS:

CONTRACTS, FEB>  CONTRACTS; MARCH 00 APRIL: 0. MAY: 0, AND JUNE 1510.; DEC 0 AND ALL OTHER MONTHS ZERO//TOTAL: 1860.  The NEW COMEX OI for the gold complex rests at 499,779. 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 SMALL SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 334 CONTRACTS: 1176 CONTRACTS DECREASED AT THE COMEX AND 1510 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 334 CONTRACTS OR 1.038 TONNES. WEDNESDAY, WE HAD A  LOSS OF $7.65 IN GOLD TRADING..….

AND WITH THAT LOSS IN  PRICE, WE HAD A SMALL SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 1.038 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 (IT FELL $7.65). AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WERE UNSUCCESSFUL  (SEE BELOW).

4 GC ISSUANCE:  ZERO

 

END

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD  A GOOD SIZED INCREASE IN EXCHANGE FOR PHYSICALS  (1510) ACCOMPANYING THE SMALL LOSS IN COMEX OI  (1176 OI): TOTAL GAIN IN THE TWO EXCHANGES:  334 CONTRACTS.  WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)A HUMONGOUS INCREASE IN OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT MAY MONTH,  3) ZERO LONG LIQUIDATION AND  …ALL OF THIS WAS COUPLED WITH THAT LOSS IN GOLD PRICE TRADING//WEDNESDAY

 

 

 

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 : 78,272 CONTRACTS OR 7,827,200 oz OR 243.45 TONNES (20 TRADING DAYS AND THUS AVERAGING: 3913 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 20 TRADING DAY(S) IN  TONNES: 243.45 TONNES

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

THUS EFP TRANSFERS REPRESENTS 243.45/3550 x 100% TONNES =6.85% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS DISSIPATED THIS MONTHTHE 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   2566.35  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:               243.45  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, ROSE BY A GOOD SIZED 677 CONTRACTS FROM 138,349 DOWN TO 139,073 AND CLOSER TO 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 GAIN IN COMEX OI WAS DUE TO 1) STRONG BANKER SHORT COVERING , 2) THE ISSUANCE OF A GOOD SIZED NUMBER OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A HUMONGOUS INCREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY  4) ZERO LONG LIQUIDATION AND 5) HUGE SPREADING LIQUIDATION

 

 

EFP ISSUANCE 870 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: 150 JULY: 720 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 870 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI GAIN  OF 677 CONTRACTS TO THE 870 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 1547 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 7.735 MILLION  OZ!!! WITH THE 1 CENT LOSS IN PRICE///

 

 

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 1 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A GOOD SIZED 870 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)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 37.64 POINTS OR 1.33%  //Hang Sang CLOSED UP 67.63 POINTS OR 0.28%   /The Nikkei closed UP 424.50 POINTS OR 2.14%//Australia’s all ordinaires CLOSED UP 2.45%

/Chinese yuan (ONSHORE) closed UP  at 7.0489 /Oil UP TO 17.35 dollars per barrel for WTI and 26.45 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED UP // LAST AT 7.0489 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0594 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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 SMALL 1176 CONTRACTS TO 499,640 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 SMALL COMEX OI LOSS WAS SET WITH OUR LOSS OF $7,65 IN GOLD PRICING /WEDNESDAY’S COMEX TRADING//). WE ALSO HAD A GOOD EFP ISSUANCE (1510 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 //  APRIL/GOLD…  AS WE ENGINEERED A SMALL GAIN ON TWO EXCHANGES OF 473 CONTRACTS.

WE AGAIN HAD ZERO 4 GC 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 1510 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 1510 AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1510 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:  334 TOTAL CONTRACTS IN THAT 1510 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A TINY SIZED 1176 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 $7.65).  BUT, THEY WERE UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED 1.038 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 334 CONTRACTS OR 33400 OZ OR 1.038 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:  499,640 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 49.96 MILLION OZ/32,150 OZ PER TONNE =  1554 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1554/2200 OR 70.68% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 230,575 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY169,576 contracts// volumes very low

APRIL 30//FIRST DAY NOTICE

MAY 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 101,035.842 oz

Brinks

Manfra

 

 

 

Deposits to the Customer Inventory, in oz  

952,707.714

OZ

BRINKS

HSBC ENHANCED INVENTORY

JPMORGAN

JPMORGAN ENHANCED INVENTORY.

 

 

 

 

 

No of oz served (contracts) today
1833 notice(s)
 183300 OZ
(5.701 TONNES)
No of oz to be served (notices)
6206 contracts
(620600 oz)
19.303 TONNES
Total monthly oz gold served (contracts) so far this month
1833 notices
183300 OZ
5.701 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 2 deposits into the dealer

I) Into the dealer Brinks: 32,118.849 OZ

ii) Into Manfra: 68,916.993 oz

 

 

total dealer deposits: 101,035.842   oz

total dealer withdrawals: NIL oz

we had 4 deposit into the customer account

i) Into Brinks:  209,012.774 oz

ii) Into HSBC (Enhanced) inventory:  15,796.300 oz

iii) 726,998.312  JPMorgan

iv) 900.228 oz JPMorgan (enhanced)

 

 

 

 

 

total deposits:  952,707.714   oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of Brinks: 69,785.07 oz

ii) Out of Manfra: 309,906.72 oz

 

 

total gold withdrawals; 379,691.790   oz

We had 0  kilobar transactions  +

 

We had zero  4 KC bar transaction

 

 

 

ADJUSTMENTS: 3  

FIRST: DEALER TO CUSTOMER

FROM BRINKS:    5772.124 oz was removed from the DEALER and this traveled to the CUSTOMER account of BRINKS.

NEXT TWO: CUSTOMER TO DEALER

FROM INT. DELAWARE:  43,693.209 oz was removed from the CUSTOMER and this lands into the DEALER account of INT DELAWARE

FROM SCOTIA:  19,932.017 OZ  was removed from the customer account and this lands into the DEALER SCOTIA

 

 

The front month of May registered a GIGANTIC total of 8,039 oi contracts. And this is a non active delivery month!!

Thus by definition:  the initial amount of gold oz standing in this non active month of May is as follows:

8039 contracts x 100 oz  per contract  =  803,900 oz of a huge 25.004 tonnes

This sets a record for the highest amount of gold oz standing in a non active month.

 

 

The next delivery month after May is the huge delivery month of June.  Here June saw a  LOSS OF 2078 contracts DOWN to 335,105 contracts. July has 0 OI contracts outstanding so far.  Next comes August another strong delivery month and here the OI rose by 503 contracts up to 75,379 contracts.

 

 

We had 1833 notices filed today for 183,300 oz

 

FOR THE  MAY 2020 CONTRACT MONTH)Today, 500 notice(s) were issued from JPMorgan dealer account and 1157 notices were issued from their client or customer account. The total of all issuance by all participants equates to 1833 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 763 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 may /2020. contract month, we take the total number of notices filed so far for the month (1833) x 100 oz , to which we add the difference between the open interest for the front month of  May. (8039 CONTRACTS ) minus the number of notices served upon today (1,833 x 100 oz per contract) equals 803,900 OZ OR 25.004 TONNES) the number of ounces standing in this  non active month of May

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

No of notices served (1833)x 100 oz + 8039 OI) for the front month minus the number of notices served upon today (1833) x 100 oz which equals 803,900 oz standing OR 25.004 TONNES in this non active delivery month. This is  a record amount for gold standing for any May delivery month or any non active delivery month.

 

NEW PLEDGED GOLD:  BRINKS

3027.500 OZ  REMOVED TO THE PLEDGED ACCOUNT JAN 10.2020/Brinks

144,088.952 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:  508,78,.743  OZ OR 15.825  TONNES

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 169.67 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 25.007 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  5,963,653.179 oz or 185.494  tonnes
which  includes the following:
a) pledged gold held at HSBC   which cannot settled upon   144,088.952 oz x ( 4.4817 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:  508,781.703 oz or 15.825 tonnes
thus:
registered gold that can be used to settle upon: 5,45487,15  (169.67 tonnes)
true registered gold  (total registered – pledged tonnes  5,45487.15 (169.67 tonnes)
total eligible gold:  14,398,965.515 oz (447.868 tonnes)

total registered, pledged  and eligible (customer) gold;   20,362,618.694 oz 633.62 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   127.92 tonnes

total gold net of 4 GC:  505.70 tonnes

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

END

April 30/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A GOOD SIZED 677 CONTRACTS FROM 138,349  UP TO 139,026(AND FURTHER TO 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  OI COMEX GAIN TODAY OCCURRED WITH OUR TINY 1 CENT DECREASE IN PRICING//WEDNESDAY.  THE LOSS IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG INCREASE IN SILVER OZ STANDING AT THE COMEX, 3)  HUGE BANKER SHORT COVERING , 4)ZERO LONG LIQUIDATION, BUT 5) A CONSIDERABLE SPREADING LIQUIDATION OCCURRING WITH OUR SMALL SILVER LOSS IN PRICE.

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW A WHOPPING 10,543 OPEN INTEREST CONTRACTS STANDING AND THIS IS A NEW RECORD OF INITIAL AMOUNT OF SILVER STANDING.

THUS BY DEFINITION THE INITIAL AMOUNT OF SILVER OZ STANDING IS AS FOLLOWS:

10,543 X 5000 OZ PER CONTRACT =  52,715,000 OZ

 

AFTER MAY WE HAVE THE NON ACTIVE MONTH OF JUNE.  HERE JUNE SAW A GAIN OF 9 CONTRACTS RISING TO 251.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI ADVANCED BY 3906 CONTRACTS UP TO 100,312 CONTRACTS

 

 

We, today, had  3670 notice(s) FILED  for 18,360,000, OZ for the APRIL, 2019 COMEX contract for silver

 

April 30/2020

MAY SILVER COMEX CONTRACT MONTH

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 620,007.636 oz
CNT
DELAWARE

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
614,846.900 oz
CNT
Delaware
No of oz served today (contracts)
3670
CONTRACT(S)
(18,350,000 OZ)
No of oz to be served (notices)
6873 contracts
34,365,000 oz)
Total monthly oz silver served (contracts)  3670 contracts

18,350,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

total dealer deposits: nil oz

total dealer withdrawals: nil oz

i)we had 2 deposits into the customer account

into JPMorgan:   0

ii)into CNT;  599,437.400 oz

iii) Into Delaware: 15,409.500 oz

 

 

 

 

 

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 50.78% of all official comex silver. (160.819 million/316.64 million

 

total customer deposits today: 620,007.636    oz

we had 2 withdrawals:

i) Out of Delaware:  19,989.146 oz

ii) Out of CNT:  600,019.490 oz

 

 

total withdrawals;  620,007.636   oz

We had 3 adjustments: first two: dealer to the customer:

from Brinks:  1,305,994.432 oz

and second: CNT:  1,304,634.770 oz

and the third lot:

: customer to dealer:

from Scotia:  1,557,678.770 oz

 

 

total dealer silver:  88.754 million

total dealer + customer silver:  316.634 million oz

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 3670 contract(s) FOR 18,360,000 oz

 

To calculate the number of silver ounces that will stand for delivery in MAY we take the total number of notices filed for the month so far at 3670 x 5,000 oz = 18,350,000 oz to which we add the difference between the open interest for the front month of MAY.(10,543) and the number of notices served upon today 3670 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 3670 (notices served so far) x 5000 oz + OI for front month of MAY (10,543)- number of notices served upon today (3670) x 5000 oz of silver standing for the MAY contract month.equals 52,715,000 oz.

 

TODAY’S ESTIMATED SILVER VOLUME: 68,120 CONTRACTS //

 

 

FOR YESTERDAY: 50,738 CONTRACTS..,CONFIRMED VOLUME

 

 

YESTERDAY’S CONFIRMED VOLUME OF 50,738 CONTRACTS EQUATES to 253 million  OZ 46.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV RISES TO +0.72% ((APRIL 30/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO +1.16% to NAV:   (APRIL 30/2020 )

Note: Sprott silver trust back into POSITIVE territory at +%-/Sprott physical gold trust is back into POSITIVE/ 0.72%

(courtesy Sprott/GATA

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

NAV 15.41 TRADING 15.50///POSITIVE 0.59

END

 

 

And now the Gold inventory at the GLD/

APRIL 30/WITH GOLD DOWN $15.95 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1056.50 TONNES

APRIL 29/WITH  GOLD DOWN $7.65/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 8.19 TONNES OF GOLD INTO THE GLD////INVENTORY REST AT 1056.50 TONNES//

APRIL 28/WITH GOLD DOWN $4.50//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1048.31 TONNES

APRIL 27/WITH GOLD DOWN $12.75//A HUGE  CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 5.85 TONNES INTO THE GLD////INVENTORY RESTS TONIGHT AT 1048.31 TONNES

APRIL 24/WITH GOLD DOWN $4.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS TONIGHT AT 1042.46 TONNES

APRIL 23/WITH GOLD UP $10.00 TODAY:  NO CHANGES IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS TONIGHT AT 1042.46 TONNES

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//

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at

APRIL 30/ GLD INV 1056.50 tonnes*

IN LAST 810 TRADING DAYS:   +110.16 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 710 TRADING DAYS;+285.14  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

APRIL 30/WITH SILVER DOWN 26 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ//

APRIL 29/WITH SILVER DOWN ONE CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ//

APRIL 28 /WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ..

APRIL 27/WITH SILVER UP ONE CENT TODAY: TWO SMALL  CHANGE IN SILVER INVENTORY AT THE SLV: a) A WITHDRAWAL OF 373,000 OZ FORM THE SLV// b) A SECOND WITHDRAWAL OF 466,000: ////INVENTORY RESTS AT 412.826 MILLION OZ//

APRIL 24//WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.665 MILLION OZ

APRIL 23/WITH SILVER UP 0 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.891 MILLION OZ INTO THE SLV/////INVENTORY RESTS AT 413.665 MILLION OZ//

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 30.2020:

SLV INVENTORY RESTS TONIGHT AT

412.826 MILLION OZ.

END

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.59/ and libor 6 month duration 0.80

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

G0LD LENDING RATE: – 1.79

 

XXXXXXXX

12 Month MM GOFO
+ 1.53%

LIBOR FOR 12 MONTH DURATION: 0.89

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.64

end

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

South Africa has given a strong response to the virus and cut the amount of workers allowed into the deep mines.  Output is thus cut from South Africa

(Bloomberg/GATA)

Deepest gold mines are on a ‘cliff’ as virus cuts output

 Section: 

No problem. The paper mills are still operating and people are still buying paper gold.

* * *

By Felix Njini
Bloomberg News
Wednesday, April 29, 2020

South Africa’s gold industry output has dwindled to a fifth of its 1970s’ peak as ever-deepening shafts and higher costs take their toll. The coronavirus may pose an even bigger threat.

The pandemic jeopardizes the future of a 134-year-old industry that once employed more than half a million workers on the world’s biggest gold field. While Cyril Ramaphosa’s government has been praised for its rapid response to the health crisis, the country’s five-week lockdown and the strict conditions attached to reopening gold mines risk undermining their viability.

… 

To ensure the social distancing needed to safeguard tens of thousands of workers in the world’s deepest mines, the nation’s gold producers will be allowed to operate only with half their normal employees. That may make them unprofitable, even as they struggle with the added burden of screening workers for virus symptoms and testing of those who display them.

“They are pretty much on a cliff,” said Rene Hochreiter, an analyst at Noah Capital Markets Ltd. “Nobody is going to make money at 50 percent.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2020-04-29/world-s-deepest-gold-…

END

With the Fed promising to buy corporate jun, we now see bids coming back into this market and thus helping the Dow

(Pam and Russ Marten/Wall Street on Parade/GATA)

 

Pam and Russ Martens: How the Fed manipulated junk bonds to help the Dow

 Section: 

By Pam and Russ Martens
Wall Street on Parade
Wednesday, April 29, 2020

Thus far the highly controversial corporate bond buying programs that the Federal Reserve first announced on March 23 have yet to spend a dime according to a spokesperson for the New York Fed, the regional Fed bank that is overseeing almost all of Wall Street’s emergency bailout programs today as well as during the financial crash of 2007 to 2010.

But as the chart posted with this column indicates, just a promise from the Fed to spend billions removing toxic waste from Wall Street’s mega banks is enough to put a bid back in the junk bond market.

… 

Here’s the skinny on how the Fed propped up both the Dow and the junk bond market with its well-timed announcements on March 23 and April 9.

From the close on March 4 to the close on March 23, the junk bond exchange-traded fund (ETF) that goes by the fancy title of “iShares iBoxx High Yield Corporate Bond ETF,” or symbol HYG, lost 21 percent of its value. But that weakness in the junk bond market did even worse damage to the Dow Jones Industrial Average. Over those same trading days the Dow lost 8,498.93 points or a stunning 31 percent of its value in just 14 trading sessions. That had apocalyptic overtones for what lie ahead for the balance of the year.

There are two key reasons for the correlations between the junk bond market and the Dow.

The first is that two of the Wall Street banks that were a regular presence in the Wall Street syndicate that underwrote these junk bond offerings are components of the Dow’s 30 stocks. Those two banks are Goldman Sachs and JPMorgan Chase.
The second key reason is that if Goldman Sachs and JPMorgan Chase are tanking, they will inevitably bring down the share price of every other major Wall Street bank because of their heavy interconnections as derivative counterparties to each other. …

… For the remainder of the report:

https://wallstreetonparade.com/2020/04/this-chart-shows-how-the-fed-mani…

END

The short squeeze on our precious metals is now beginning and thus the years gold suppression by derivatives is coming to an end.

(Alasdair Macleod/Kingworldnews/GATA)

Short squeeze is ending gold suppression by derivatives, Macleod tells KWN

 Section: 

12:50p ET Wednesday, April 29, 2020

Dear Friend of GATA and Gold:

With infinite money now being created by the Federal Reserve, GoldMoney research director Alasdair Macleod tells King World News, bullion banks that are typically short gold are striving to close their positions and restricting their trading desks.

“The consequences for liquidity in gold and silver derivative contracts are dire,” Macleod writes. “The means by which demand for gold and silver was diverted into infinitely expandable futures and over-the-counter markets to put a lid on their prices has finally run out of road.”

A short squeeze, Macleod concludes, has begun.

His comments are posted at KWN here:

https://kingworldnews.com/alasdair-macleod-this-is-why-london-gold-pool-…

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

END

Russia’s central bank sees no need to restart its gold buying spree

Reuters/GATA)

Russian central bank sees no need to restart gold buying

 Section: 

From Reuters
Wednesday, August 29, 2020

MOSCOW — Russia’s central bank sees no current need to restart purchases of gold for its reserves, it said in a letter to an association of Russian banks, a copy of which was seen by Reuters today.

The association previously asked the central bank to resume buying gold as, it said, exports of the precious metal were hobbled by the coronavirus outbreak that has grounded passenger flights used to transport the metal.

… 

The central bank suspended gold buying for its reserves on April 1, when it held 73.9 million troy ounces of gold with a value of $120 billion. …

… For the remainder of the report:

https://www.reuters.com/article/health-coronavirus-russia-gold/update-1-…

END

iii) Other physical stories:

GOLD TRADING THIS MORNING//OPTIONS EXPIRE AT 11 AM THIS MORNING

It’s Gold-Smashing Time…

For the fifth day in a row, gold has been clubbed like a baby seal on heavy volume in the pre-US-equity-market-open…

Over 15,000 contracts were pushed through in those few minutes with 8,500 on the downside (around $1.5 billion notional)

Silver is also getting hit…

Notably, Bitcoin has soared higher in the last few days, playing catch up to gold from the “sell everything” move in March…

As a reminder, as BofA recently noted, The Fed can’t print gold (or Bitcoin).

END

Senate panel planning to approve Slehton

 

(Wasson/Bloomberg)

Senate Panel Planning to Approve Stalled Fed Nominee Shelton

Judy Shelton
Judy Shelton Photographer: Andrew Harrer/Bloomberg

The Senate Banking Committee is preparing to approve the stalled nomination of Judy Shelton to be a member of the Federal Reserve Board next week, according to two Republicans familiar with the planning.

A formal announcement of a committee vote has not been made, and a committee spokeswoman declined to comment Tuesday. The names of Shelton and another Fed nominee, Christopher Waller, were not on the committee’s calendar for consideration next week. Action by the panel would send the nomination to the floor for a confirmation vote by the GOP-controlled Senate.

President Donald Trump’s nomination of Shelton for the Fed had been held up by reservations among some senators over her views on monetary policy. In the past she has advocated returning the dollar to the gold standard and expressed skepticism about the relevance of the Fed’s congressional mandate to pursue maximum employment and stable prices.

In February, shortly before the Covid-19 crisis put the Senate into a prolonged recess, Alabama Senator Richard Shelby, a GOP Banking Committee member, told reporters he wouldn’t stand in the way of the nomination.

“If the committee, the majority of the committee, I’m talking about Republicans, want to support her, I would do it too,” Shelby said, adding, “She wouldn’t be my number one choice.”

Republican Committee member Pat Toomey of Pennsylvania had also been undecided on the nomination, saying he was concerned about her past comments indicating she supports the Federal Reserve devaluing the dollar in response to devaluations of other currencies. In February, he said that a letter from Shelton cleared up his concerns.

Senator John Kennedy of Louisiana remains undecided on the Shelton nomination, according to spokesperson Jess Andrews. A single Republican “no” on the panel would be enough to block her, with Democrats on the panel likely united in opposition.

(Updates with Banking Committee schedule, in second paragraph)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0489/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0596   /shanghai bourse CLOSED UP 37.64 POINTS OR 1.33%

HANG SANG CLOSED UP 67.63 POINTS OR 0.28%

 

2. Nikkei closed DOWN 424.50 POINTS OR 2.14%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 99.45/Euro FALLS TO 1.0873

3b Japan 10 year bond yield: RISES TO. –.04/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.53/ 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:: 17.35 and Brent: 26.45

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 UP for WTI and UP FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.54%/Italian 10 yr bond yield DOWN to 1.77% /SPAIN 10 YR BOND YIELD DOWN TO 0.77%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.31: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.16

3k Gold at $1706. silver at: 15.10   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 48/100 in roubles/dollar) 73.49

3m oil into the 17 dollar handle for WTI and 26 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 106.53 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 .9707 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0557 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 0.54%

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 0.61% early this morning. Thirty year rate at 1.24%

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

6.  TURKISH LIRA:  UP  TO 6.9883..

S&P Futures Reverse Rally On Poor European Earnings As Oil Rebound Continues

US equity futures dipped on Thursday, reversing an overnight rally that pushed the S&P just shy of 3,000 as traders turned nervous at the end of the strongest month for stocks in 50 years with investors awaiting the weekly jobless claims data, while Nasdaq futures rose after upbeat earnings from Facebook and Tesla.

Futures for the S&P 500 turned lower on Thursday following a drop in European shares after a three-day surge as investors weighed corporate results, more dismal data and the latest virus news. Despite the wobble in the Emini, the underlying S&P index remains on track for its best month since 1974.

Nasdaq 100 futures clung to the green following strong results from Microsoft, Facebook and Tesla after the Wednesday close. Crude futures jumped for a second day after gasoline consumption started to recover in the world’s biggest economies.

Facebook rose 8.6% after beating analysts’ estimates for first-quarter revenue and saying it had seen “signs of stability” for ad sales in April after a plunge in March. Tesla gained 8.5% after posting its first ever GAAP quarterly profit, taking investors by surprise as its automaker peers were hit by a slump in consumer demand and factory shutdowns. Investors will now focus on the two remaining FAANG stocks – Apple and Amazon.com – which report results after markets close.

Europe’s Stoxx 600 Index also gave up an early gain to trade lower after Societe Generale SA posted a surprise first-quarter loss and Royal Dutch Shell cut its dividend for the first time since World War II. The ECB did not expand its pandemic bond-buying program in the wake of data showing the French and Spanish economies plunging into record contractions and German unemployment surging, however it did launch a new series of non-targeted pandemic emergency longer-term refinancing operations (PELTROs) which will be conducted to “support liquidity conditions in the euro area financial system and contribute to preserving the smooth functioning of money markets by providing an effective liquidity backstop.”

Earlier we found that the eurozone’s economy shrank by the fastest rate on record in the first quarter of 2020 as measures to contain the coronavirus pandemic froze business and household activity, according to figures published on Thursday. The GDP of the eurozone fell by 3.8% in the first quarter compared with the previous quarter, preliminary estimates from Eurostat found. This is the largest drop since the series began in 1995, and larger than seen in the worst of the financial crisis.

Earlier in the session, Asian stocks gained, led by energy and materials, after rising in the last session. The Topix gained 1%, with MS Consulting and TechnoPro rising the most. The Shanghai Composite Index rose 1.3%, with Routon Electronic and Shanxi Coal posting the biggest advances.

As Bloomberg notes, investors continue to weigh a brutal global recession against hopes for a coronavirus treatment and an eventual end to lockdown measures across the world. The U.S. government’s top infectious-disease expert, Anthony Fauci, said early results from the Gilead drug trial offered “quite good news,” while results from tech giants show some parts of the economy have remained resilient. That’s even as many firms slash dividends and data shows Europe slumped into a recession last quarter alongside America.

Although today’s data is likely to show weekly jobless claims stabilized around 3.5 million after scaling record highs in March, other numbers have shown that the U.S. economy is set for its sharpest contraction since the Great Recession. On Wednesday, the Federal Reserve pledged on Wednesday to expand emergency programs to revive growth but dashed hopes for a fast rebound, saying the economy could feel the weight of consumer fear and social distancing for a year.

In FX, the dollar gauge headed for its first monthly loss in four months following a recovery in global risk appetite. The Bloomberg Dollar Spot Index slipped and the dollar weakened against most Group-of-10 peers. Norway’s krone advanced, tracking gains in oil prices. The yen pared gains amid month-end flows and positioning related to Japan’s Golden Week holiday; traders digested reports that Prime Minister Shinzo Abe will extend a national state of emergency by a month.

In rates, Treasuries and U.S. equity futures edged up, while the euro slipped and German bonds gained after the European Central Bank’s policy decision disappointed some traders who were hoping for more.

In commodities, oil advanced a second day on signs fuel consumption is starting to recover in the world’s biggest economies

Looking at the day ahead, the ECB decision and President Lagarde’s subsequent press conference are likely to be the highlight. There’ll also be a number of data releases, including both Q1 GDP and April’s CPI for the Euro Area, France and Italy. There’ll also be the Euro Area and Italian unemployment rate for March, the Germany change in unemployment for April and Canadian GDP for February. And from the US we have March’s personal income, personal spending, the core PCE deflator, as well as weekly initial jobless claims, April’s MNI Chicago PMI and Q1’s employment cost index. Finally, earnings releases include Apple, Amazon, Visa, Comcast, McDonald’s, Amgen, Gilead Sciences and Twitter.

Top Overnight News

  • Coronavirus upheavals and wider credit premiums are stoking a shift toward medium-length tenors in the euro corporate bond market. The proportion of deals maturing in five years to seven years has doubled since the outbreak
  • China’s first official data for April suggest the economy has split into two tracks as weak overseas demand contrasts with a domestic rebound
  • A recovery in emerging-market assets has failed to bring much relief for governments sweating the risk of default
  • In the simmering contest to succeed German Chancellor Angela Merkel, Bavarian Premier Markus Soeder has emerged as the uncrowned king of the crisis. His hard line to clamp down on the spread of the disease in the wealthy southern state has propelled him to the forefront of Germany’s conservative bloc
  • Gilead Sciences Inc. said there are more than 50,000 courses of the company’s experimental Covid-19 therapy, packed in vials and ready to ship as soon as the drug is authorized for emergency use by U.S. regulators
  • Coronavirus patients who remain positive weeks after diagnosis may harbor dead virus particles that can’t be distinguished from infectious ones in standard tests, scientists in South Korea found

Asian equity markets traded positively as the region took impetus from the gains on Wall St where sentiment was underpinned by coronavirus treatment hopes after preliminary results from Gilead’s Remdesivir drug trial showed a 31% faster recovery time and lower mortality rate compared to patients that were given a placebo. Furthermore, the Fed reiterated to keep supporting the economy as necessary and encouraging earnings from several tech heavyweights after-market briefly added fuel to the momentum for US index futures. ASX 200 (+2.4%) was lifted by strength in the energy sector as oil prices continued to make up ground and with a slew of corporate updates in focus. Nikkei 225 (+2.1%) outperformed as it played catch up on return from the holiday closure and as a weaker currency provided an uplift to exporter sentiment, while Industrial Production and Retail Sales data were not as bad as had been feared despite both printing in contraction territory. Shanghai Comp. (+1.3%) was also positive ahead of the extended 5-day weekend in the mainland for Labor Day holidays and amid several blue chip earnings, although gains were somewhat capped by the absence of Hong Kong participants and following mixed Chinese PMI data in which official Manufacturing and Caixin Manufacturing PMIs fell short of estimates but Non-Manufacturing and Composite PMIs both improved. Finally, 10yr JGBs were lacklustre with demand subdued by gains in riskier assets and following a similar uninspired tone in T-notes, while the absence of the BoJ in the market today and resistance ahead of the 153.00 level also ensured the mundane price action.

Top Asian News

  • Japan’s Abe Set to Extend Virus Emergency Into June, Reports Say
  • Malaysia May Skip Spot LNG Sales With Prices at Record Lows
  • Tokyo Steel Warns of Slump in Profit This Quarter as Virus Bites
  • BlackRock Buys India Sovereign Debt as Others Head for Exit

European equities waned off highs since the cash open (Euro Stoxx 50 -0.2%) and failed to sustain the momentum from a positive APAC handover, as markets digest a slew of earnings and sets sights on the ECB’s policy announcement later . Overall, bourses trade mixed with mild outperformance in the CAC 40 (+0.1%) – aided by the likes of Safran (+1.7%) post-earnings and Airbus (+5.4%) as shares are underpinned after its CEO noted the group is in talks with French states – yesterday Finance Minister Le Maire said the gov’t could aid Airbus if the time is right. Sectors remain mixed and do not reflect a clear risk tone. Energy is the clear laggard as Shell (-6.3%) plumbs the depths post-earnings, afflicting the FTSE 100, after the group cut dividends for the first time since 1945 amid the oil price slump. The sector breakdown is similarly diverse but sees Travel & Leisure as the top amid hopes of looser global lockdown measures. Individual movers again largely consist of post-earning action; Lloyds (-5.9%) remains pressured after reporting a slump in Q1 pre-tax profit alongside a rise in impairments of around GBP 1.2bln YY. BASF (-1.0%) is lower after missing on Adj, EBITDA expectations, and cutting Q1 EPS to EUR 0.96/shr from EUR 1.53/shr whilst withdrawing guidance. Orange (+1.1%) holds onto opening gains as the group does not expect to significantly deviate from its FY targets. BBVA (-1.5%) holds onto losses after reporting an impairment charge of over EUR 2bln. Other earnings-related movers include Swiss Re (-2.5%), Deutsche Boerse (+2.6%), Nokia (+3.7%) and Danske Bank (-1.8%)  Elsewhere, Wirecard (+4.8%) rises as its chairman does not see CEO Braun behind replaced, which follows activist Hohn’s call to remove the CEO. Finally, AstraZeneca (+3.3%) sees upside after the Co. and Oxford Uni announce landmark agreement for a COVID-19 vaccine, aims to secure CHADOX1 vaccine potential to patients. Co. would, under this agreement, be responsible for the worldwide manufacturing and distribution – with the CEO stating it should have a good idea in June or July whether its COVID-19 vaccine works.

Top European News

  • Homebuilders Cancel Land Purchases as U.K. Economy Shrinks
  • Transport Giant DSV to Cut 3,000 Jobs as Crisis Upends Business
  • SocGen Posts Loss as Equities Trading Wiped Out in Rout
  • Lloyds Books 1.4 Billion-Pound Charge and Scraps Targets

In FX, the Dollar is holding up relatively well in wake of the FOMC and presser from Fed Chair Powell that was forthright in terms of appraising the sever economic impact of the coronavirus containment efforts and the high probability that even more stimulus will be required, monetary and fiscal, to try and ensure a robust post-pandemic recovery. Moreover, the Greenback remains prone to further month-end outflows for rebalancing purposes and erosion of safe-haven premium given buoyant risk sentiment based on hopes for an anti-COVID-19 treatment and/or vaccine. However, the DXY is managing to stay within proximity of the 99.500 level that has been pivotal within recent ranges and is still keeping the index resistant on approach towards 99.000

  • CHF/GBP – The major “outperformers”, albeit amidst quite restrained parameters overall, as the Franc inches closer to 0.9700 and further away from 1.0600 vs. the Euro, while Cable rebounds towards 1.2500 and Eur/Gbp recoils towards 0.8700 on a mix of month end demand and technical factors. Note, one bank model is pointing to outsize Sterling demand vs. the Buck and especially from 1500BST to 1600BST when fund managers re-hedge stock portfolios, while the cross is back below the 200DMA again.
  • CAD/EUR – Another upturn in oil prices has helped the Loonie consolidate gains above 1.3900 and almost match the current mtd peak not far from 1.3850 ahead of Canadian data comprising monthly GDP and PPI, while the Euro is still meeting resistance ahead of 1.0900 and last week’s apex just shy of the round number, though also finding underlying bids on dips despite more downbeat Eurozone data in the run-up to ECB
  • JPY – The Yen also looks locked between decent option expiries and a key chart level that was marginally breached on Wednesday, while many Japanese participants were otherwise engaged given a market holiday on the penultimate trading session of April, but did not trigger stops to test 106.00. Subsequently, Usd/Jpy is meandering between 106.87-42 and back above the aforementioned technical mark (50% Fib retracement at 106.45)
  • AUD/NZD – Aud lost impetus around 100 DMA at 0.6567, and mega 2.7 bn expiry at 0.6570. Nzd hampered by bleak NBNZ Biz survey.
  • New Zealand ANZ Business Confidence (Apr) -66.6% (Prev. -63.5%). (Newswires) New Zealand ANZ Activity Outlook (Apr) -55.1% (Prev. -26.7%)

In commodities, Energy contracts wane off best levels as European trades goes underway, but nonetheless remain firmly in positive territory, with WTI June +14% just above USD 17/bbl (intraday range USD 15.45-17.75/bbl) while the Brent July contract sees gains of around 8%, with prices just north of USD 26/bbl (intraday range USD 24.41-26.66.bbl). In terms of fresh developments, Norway Oil Ministry said Norway will be cutting oil output by 250k BOE/D in June and then lowered to 134k BPD in H2 until year-end, while the start-up of production at several fields will be delayed until 2021 and that production in December 2020 will be 300k BPD less than originally planned. Meanwhile, over in the US, Texas regulators released details on a proposed order to cut Texan output by around 1mln BPD, with a potential vote next week. Albeit, Texas Railroad Commission Chairman Christian said he still opposes mandated oil production cuts to address global oil curb. Elsewhere, US President Trump said they will have a plan to support oil companies soon. Other reports also noted the Trump administration is close to rolling out new lending facilities to help oil and gas companies struggling from a collapse in prices. Amongst all this, IEA’s Chief Birol warned that global storage could be full by mid-June and called on OPEC+ to mull further cuts, with the initial pact set to officially come into effect tomorrow. Elsewhere, spot gold sees modest gains as equities pull back from highs, with the yellow metal towards the top of its daily band of USD 1709.79-1719.66/oz. Base metals focus on lower mining output and the prospect of economies reopening for business, with Copper prices firmer on the day, albeit off highs, as the red metal meanders around mid-range at USD 2.4/lb and Zinc rallying some 2% in overnight trade.

US Event Calendar

  • 8:30am: Personal Income, est. -1.5%, prior 0.6%; Personal Spending, est. -5.0%, prior 0.2%
  • 8:30am: Real Personal Spending, est. -5.7%, prior 0.1%
  • 8:30am: PCE Deflator MoM, est. -0.3%, prior 0.1%; PCE Deflator YoY, est. 1.3%, prior 1.8%
  • 8:30am: Initial Jobless Claims, est. 3.5m, prior 4.43m; Continuing Claims, est. 19.5m, prior 16m
  • 8:30am: Employment Cost Index, est. 0.6%, prior 0.7%
  • 9:45am: MNI Chicago PMI, est. 37.7, prior 47.8
  • 9:45am: Bloomberg Consumer Comfort, prior 41.4

DB’s Jim Reid concludes the overnight wrap

One has to be so careful that you’re own biases don’t influence you’re own thinking. After an awful few days at home where the twins are going through their terrible two stage together (biting, punching, scratching, hysterical crying etc) and my four year old is bored without school my wife continues to be at the end of her tether. I hide out in my office as much as I can but it’s not pleasant seeing her so frazzled when I go down to make a coffee or get lunch. So when I saw a U.K. Telegraph article overnight that no child has been found to have passed coronavirus to an adult I immediately showed it to my wife and we did a little jig. Who knows if it will ever be peer reviewed but the study did involve a partnership with the Royal College of Paediatricians.

We can only hope but there is more and more evidence that children do not have a big role to play in transmitting the virus which given the person hygiene of my twins sounds very strange.

Anyway more hope was in the air as it was a bumper day for financial markets yesterday before, and especially after, Gilead Sciences (+5.68%) announced that early results from a clinical trial showed that the remdesivir drug helped patients recover more swiftly from the coronavirus. At the White House Anthony Fauci, the government’s top infectious-disease specialist and head of NIAID confidently pronounced that this shows a “drug can block the virus”. Fauci has been relatively circumspect to date so this was an encouraging departure in tone. The New York Times reported later in the US session that the FDA was looking at granting emergency authorization for the drug soon. Gilead Sciences CEO Daniel O’Day said overnight that there are more than 50,000 courses of the company’s experimental Covid-19 therapy, packed in vials and ready to ship as soon as the drug is authorized for emergency use by the FDA. Later in the day, President Trump announced “Operation Warp Speed”, a program that will try to organize private pharmaceutical companies, government research agencies, and the military to try to cut vaccine development time down to under 8 months. While we’re on the virus, today’s CCD has a couple of graphs on NYC fatalities which add to yesterday’s UK demographic data (in the CCD), and also show what percentage had underlying health conditions. See that for more.

After all that excitement the Fed unsurprisingly announced that they voted to keep IOER and forward guidance unchanged and that they would keep them so until the economy was “on track”. The committee said that they believe the virus will continue to heavily effect economic activity, employment, and inflation in the short term, while also posing “considerable risks to the economic outlook over the medium term.” This could imply that the governors do not believe a true V-shaped recovery is in the works and that their accommodative monetary policy may be in place for longer. In the press conference, Chair Powell said that he expects reopening will boost consumption but not to prior levels and that there are concerns about ‘scarring’ that the crisis may have caused leading to a longer period of adverse conditions. Please see our US Economists full recap of the meeting here.

In terms of the broader market performance yesterday, the news from Gilead sent equities higher, with the S&P 500 ending the session up +2.66%, withstanding a little more two-way trading during Fed Chair Powell’s press conference. This means that the index is now over 30% above the lows reached back on 23 March, an astonishing rise in such a short space of time given the circumstances. The index is ‘only’ just over 13% down from February all-time highs. In further positive news, the VIX index of volatility also declined further to 31.23pts yesterday, its lowest level in over two months, while Bloomberg’s financial conditions index for the US eased to its most accommodative level in nearly 8 weeks. Over in Europe, equities were similarly buoyant, with the STOXX 600 (+1.75%) and the DAX (+2.89%) both advancing strongly.

After hours earnings supported the buoyant mood. Microsoft rose over 5% in extended trading before settling at +2.15% as cloud services and internet-based software demand has seen a sharp increase with companies shifting to work-from-home practices. Facebook rose +10.49% in after-hours trading, with the social media company reporting a +18% increase in Q1 revenue with sales coming in at $17.7bn (vs. $17.3bn consensus). The company has seen an uptick in engagement with more and more customers confined to their homes – daily users of all Facebook-owned apps was 2.36bn in March vs. 2.26bn in December.

The positive sentiment has continued in Asia but before detailing that China PMIs have come out overnight with the state manufacturing PMI printing at 50.8 (vs. 52 last month and 51.0 expected) while non-manufacturing PMI rose to 53.2 (vs 52.3 last month and 52.5 expected) bringing the composite PMI print to 53.4 (vs. 53.0 last month). In the details for the manufacturing PMI, new export orders plunged to 33.5 (vs. 46.4 last month), the second largest drop on record, suggesting the lack of external demand as much of the external world remained in lockdown. Meanwhile, the unexpected rise in the non-manufacturing PMI could be largely because the respondent believe that the situation has improved viz-a-viz the previous two months as on ground cinema halls are still closed and inter-city travel is still limited. So whilst encouraging the reading seems to be over-stating the recovery and a problem that diffusion indices are likely to suffer until the global situation normalises. The National Bureau of Statistics said alongside the release that “Some manufacturing companies said newly signed export contracts have dropped sharply, and some existing orders were cancelled.” Separately, China’s Caixin manufacturing PMI, which is more biased towards export oriented SME slipped back into contractionary territory with a reading of 49.4 (vs. 50.1 last month and 50.5 expected). Elsewhere, China and South Korea have agreed to ease quarantine requirements for business travellers under the so-called “fast-track” entry scheme which will take effect from May 1.

Bloomberg has also reported overnight that the Trump administration may today announce a plan to offer loans to the ailing oil industry possibly in exchange for a financial stake. Earlier, at the White House press conference Treasury Secretary Mnuchin had said that “This is not going to be a bailout,” and added that a team at both the Treasury and the Energy department are talking with people around the world and are considering “a lot of different strategies.” Another interesting bit which Mnuchin mentioned at the conference was that the administration has been considering a way around the storage capacity issue by buying undeveloped oil reserves and making them part of the U.S. emergency stockpile. Under the approach, the government would also effectively pay some domestic drillers to halt production indefinitely — or at least until prices rebound. So, one to watch. Elsewhere, Reuters reported overnight that Trump said that he thinks that China is determined to see him lose the November election based on Beijing’s response to the coronavirus and he was considering various ways to punish the Chinese government. He added that the US trade deal with China has been “upset very badly” by the economic fallout from the pandemic.

Asian markets are trading up this morning with the Nikkei (+2.83%), Shanghai Comp (+1.30%) and ASX (+2.34%) all advancing. Markets in Hong Kong and South Korea are closed for a holiday. Futures on the S&P 500 are up +0.48% overnight while those on the Nasdaq are up +0.83% on the after hours earnings beat by Microsoft, Facebook and Tesla. Elsewhere, WTI oil prices are up a further +15.74% this morning to $17.44 while most base metals are also trading up with iron ore being up +2.18%.

In other overnight news, the Nikkei is reporting this morning that Japan will extend a national state of emergency over the coronavirus by a month to June with the report adding that the final decision will be made after a meeting of experts tomorrow.

With the Fed now out of the way, attention will turn to the ECB’s latest monetary policy decision today, along with President Lagarde’s press conference afterwards. In their preview (link here ), our European economists write that they think an increase in the Pandemic Emergency Purchase Plan (PEPP) is becoming more likely as the downside economic scenario becomes more realistic. However, they note that size is not a constraint yet, as by today the ECB may only have spent around €100bn of the total €750bn commitment. The more relevant question in the near term would be a signal of a stronger PEPP reaction function to rising yields, something that could be done with a verbal signal or indirectly through the ECB’s market activities. Separately, they also think that the composition of the PEPP could be adjusted today, as following last week’s decision to suspend the minimum credit rating rules for collateral they think it’s possible that the Governing Council harmonises the collateral rules with the asset eligibility rules for the asset purchase programmes. So for credit investors will they grandfather fallen angels? From our side on balance probably not today but the prospect is getting more likely over time given the recent Fed move.

Elsewhere, sovereign debt generally had a good day, with bund yields falling -2.6bps. Italian BTPs were the exception however, which sold off following the ratings downgrade from Fitch to BBB-. The spread of yields on 10yr BTPs over bunds was up +5.4bps by the end of the session, bringing to an end a 5-day run of narrowing Italian spreads. To be fair they opened over 10bps wider and spent the risk-on session slowly recouping around half their losses. US 10yr Treasuries were slightly weaker, with yields up by 1.4bps to 0.627%.

Other risk assets performed strongly as well on the back of the Gilead news, with oil also surging higher. WTI was up +22.04% to $15.06/barrel, while Brent Crude was up +10.17% to $22.54/barrel, in turn seeing energy stocks outperforming on both sides of the Atlantic, and sending the Russian ruble up +1.51% against the US dollar. The oil complex was helped by some better inventory data, especially demand for motor gasoline. Could it also be that the recent evidence from mobility data that more drivers are back on the road is increasing demand a little? US gasoline inventories fell by 3.67mm barrels compared to a build of 2.49million. A demand indicator, weekly gasoline supplied, rose by 549k barrels a day. The Mnuchin news mentioned above may have helped as it is in the Asia session.

As well as the ECB, attention today will also be on the advance reading of Q1 GDP for the Euro Area in March, which will give us a first indication of how output has fared with the lockdowns. The Bloomberg consensus is expecting a -3.8% quarter-on-quarter decline, which if realised would be the worst single quarter since the single currency’s formation back in 1999. While we’re on the Q1 GDP readings, we should mention that the US number released yesterday saw an annualised contraction of -4.8%, (vs. -4.0% expected), which was the biggest quarterly contraction since Q4 2008. As we all know Q2 will be worse given the lockdowns. They’ll give analysts a starting point to adjust Q2 numbers though.

For those seeking out more high frequency data, all eyes will once again be on the latest weekly initial jobless claims later today from the US, covering the week ending April 25. Our economists are looking for a 3.7m reading, which would be the 4th consecutive weekly decline. Although that would be a positive in that we appear to be past the most rapid period of job losses, that shouldn’t make us lose sight of the fact that the last 5 weeks’ readings have been the worst 5 in the data series going back to the late-1960s, with job losses of an unprecedented speed and scale, as over 26m initial jobless claims have been made.

Wrapping up with yesterday’s other data points, the European Commission’s economic sentiment indicator fell to 67.0 (vs. 73.1 expected) in April, its lowest level since March 2009. However, M3 money supply growth for the single currency bloc rose by 7.5% yoy in March, its fastest growth since December 2008, mostly driven by the increase in QE. Finally, US pending home sales in March fell -20.8% (vs. -14.3% expected), the largest monthly decline since May 2010.

To the day ahead now, and as mentioned the ECB decision and President Lagarde’s subsequent press conference are likely to be the highlight. There’ll also be a number of data releases, including both Q1 GDP and April’s CPI for the Euro Area, France and Italy. There’ll also be the Euro Area and Italian unemployment rate for March, the Germany change in unemployment for April and Canadian GDP for February. And from the US we have March’s personal income, personal spending, the core PCE deflator, as well as weekly initial jobless claims, April’s MNI Chicago PMI and Q1’s employment cost index. Finally, earnings releases include Apple, Amazon, Visa, Comcast, McDonald’s, Amgen, Gilead Sciences and Twitter.

 

3A/ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 37.64 POINTS OR 1.33%  //Hang Sang CLOSED UP 67.63 POINTS OR 0.28%   /The Nikkei closed UP 424.50 POINTS OR 2.14%//Australia’s all ordinaires CLOSED UP 2.45%

/Chinese yuan (ONSHORE) closed UP  at 7.0489 /Oil UP TO 17.35 dollars per barrel for WTI and 26.45 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED UP // LAST AT 7.0489 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0594 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/USA

Truce over:  Trump is now considering how to punish China.  He claims Beijing will do anything to make him lose his re election bid

(zerohedge)

“The Truce Is Over”: Trump Considering Ways To Punish China, Convinced Beijing “Will Do Anything” To Make Him Lose Re-election

And to think just three months ago things between the US and China, which had just signed ‘Phase 1’ of the long-awaited trade deal were going “so well.”

In an Oval Office interview with Reuters published Wednesday night, Trump said he thinks that China is determined to see him lose the November election based on Beijing’s response to the coronavirus, and that he is considering various ways to punish the Chinese government which he he again blamed for allowing the virus to spread across the world.

“China will do anything they can to have me lose this race,” Trump said in the interview and said he was looking at different options in terms of consequences for Beijing over the virus. “I can do a lot,” he said.

Trump has heaped blame on China for a global pandemic that has killed at least 60,000 people in the United States and thrown the U.S. economy into a deep recession, putting in jeopardy Trump’s hopes for another four-year term.

Worried that an attempt to reopen the economy would be hindered by a second infection wave in the fall, forcing the US to shutter again and sending the economy into an even deeper depression, Trump said he believed China should have been more active in letting the world know about the coronavirus much sooner.

Asked whether he was considering the use of tariffs or even debt write-offs for China, Trump would not offer specifics. “There are many things I can do,” he said. “We’re looking for what happened.”

“They’re constantly using public relations to try to make it like they’re innocent parties,” he said of Chinese officials.

One example is Global Times Editor in Chief who is engaged in a daily stream of propaganda on twitter, vilifying Trump and the US as the following example demonstrates:

Hu Xijin 胡锡进

@HuXijin_GT

Already fell 4.8% in Q1, will definitely be worse in Q2. How will President Trump explain? I guess he would say the figure is better than expected and is so much better than any other country in the world.When China sees positive growth rate in Q2,he would say the number is fake.

View image on Twitter

“China will do anything they can to have me lose this race,” said Trump. He said he believes Beijing wants Joe Biden to win the race to ease the pressure Trump has placed on China over trade and other issues.

A senior Trump administration official told Reutersthat an informal “truce” in the war of words that Trump and Xi essentially agreed to in a phone call in late March now appeared to be over.

Earlier Wednesday, Secretary of State Michael Pompeo said that China posed a threat to the world by hiding information about the origin of the coronavirus: “The Chinese Communist Party now has a responsibility to tell the world how this pandemic got out of China and all across the world, causing such global economic devastation,” Pompeo told Fox News on Wednesday morning, during an interview in which he repeatedly criticized China’s government. “America needs to hold them accountable.”

The comments came after China Central Television’s top evening news program on Wednesday questioned the transparency and accuracy of U.S. data on Covid-19 infections; they also followed a US government report which concluded that the Wuhan lab is the “most likely source” of the coronavirus outbreak.

 

END

CHINA/USA/WUHAN LAB

Pottinger, the White House’s most influential China hawk now suspects COVID 19 was leaked from the Wuhan lab

(zerohedge)

The White House’s Most Influential China Hawk Suspects COVID-19 Leaked From Wuhan Lab

Casual readers of American political reporting probably wouldn’t recognize the name, but Washington reporters and other “insiders” almost certainly know not only his name, but his reputation for being perhaps the most influential White House figure that most Americans haven’t heard of.

His name is Matthew Pottinger, and in addition to serving as Deputy National Security Advisor in the Trump Administration, he has served as a top advisor on China policy and “the White Houses foremost China expert”, an expertise Pottinger honed while reporting for the Wall Street Journal from Beijing, where he learned the perfected his language skills.

And in a profile published in Wednesday’s paper, the Washington Post explored Pottinger’s rise to becoming one of the most influential foreign policy voices in the West Wing began in the late 1990s, when he moved to Beijing to cover a rising China as a foreign correspondent.

After 9/11 and the start of the wars in Iraq and Afghanistan, Pottinger decided to leave WSJ  at the age of 31 to enlist in the Marines.

He was modestly older than many of his fellow recruits, but in an op-ed published explaining his decision, Pottinger recounted how seeing up close how Beijing treats its citizens helped instill in him a newfound respect for the US, and an intense wariness of the CCP. In one incident, Pottinger said, he was punched in the face by a government goon who attacked him while he was reporting on some sketchy business dealings involving a Chinese company.

He also covered the SARS outbreak in 2003-2004.

But living in China also shows you what a nondemocratic country can do to its citizens. I’ve seen protesters tackled and beaten by plainclothes police in Tiananmen Square, and I’ve been videotaped by government agents while I was talking to a source. I’ve been arrested and forced to flush my notes down a toilet to keep the police from getting them, and I’ve been punched in the face in a Beijing Starbucks by a government goon who was trying to keep me from investigating a Chinese company’s sale of nuclear fuel to other countries.

To give credit where credit is due, WaPo was one of the first MSM organizations to seriously consider the possibility that the novel coronavirus could have leaked from a lab in Wuhan, a theory that Pottinger has been investigating since the outbreak began. Surprisingly, the paper reports that Pottinger was one of the first Trump Administration officials to push the president to call the virus the “Wuhan Virus” instead of the coronavirus, a move that was blasted as “racist” by both China and many American leftists. That recommendation, WaPo said, was based on intel obtained by Pottinger claiming Beijing was in the early stages of a misinformation campaign to try and deflect blame for the outbreak to the US.

Pottinger’s push to use the term “Wuhan virus” has reverberated. Trump, eager to deflect blame of his own handling of the virus, escalated the rhetoric by using “Chinese virus.” Secretary of State Mike Pompeo angered allies in March when he pressured Group of Seven nations to sign a collective statement employing “Wuhan virus,” a demand they refused. Liberals called the language racist.

To Pottinger, the critics missed the point: China’s state media had named the virus for Wuhan for weeks before suddenly pressuring the World Health Organization to formally name it covid-19. Beijing needed to own it.

And while Pete Navarro is still unquestionably the administration’s most visible China hawk, Pottinger is heavily involved in the Trump Administration’s plan to chart a new course for the US-China relationship that would take us closer to a “decoupling”. Globalists cringe at the thought of untangling the complicated web of interconnected economic interests tying the two countries together. But the virus has undermined the view that globalization is inevitable and de-globalization would be inherently catastrophic.

When asked who is responsible for the severity of the global coronavirus outbreak, Pottinger insists that China is to blame. Because by the time the US was receiving the first information about the virus from China in January, it was already likely too late – something that surveillance testing, as well as reports that the earliest COVID-19 death might have happened as early as Feb. 6, seem to suggest.

Pottinger believes Beijing’s handling of the virus has been “catastrophic” and “the whole world is the collateral damage of China’s internal governance problems,” said a person familiar with his thinking, who, like others, spoke on the condition of anonymity to discuss his views.

After first joining the Trump administration in 2017 as senior director of the National Security Council’s Asia division, Pottinger, 46, is now a pivotal player in the Trump administration’s attempts to reorient U.S. policy on China toward a more confrontational approach, according to multiple people familiar with his role.

WaPo noted in a lengthy piece explaining the ‘failings’ of the Trump Administration during the early days of the outbreak that Pottinger was the first to push for travel bans from China and Europe. Trump’s decision to drag his feet on the European bans might have directly contributed to the explosion of cases in New York. One study found similarities between the coronavirus strain spreading in New York, and a strain spreading in Northern Italy that researchers said could explain the excessive mortality in both areas.

Most importantly, Pottinger has pushed intelligence agencies to explore the theory that the virus may have been accidentally released from a Wuhan lab, a suspicion that was borne out in a recent government report.

Behind the scenes, Pottinger has pushed intelligence agencies to explore the theory, popular among conservatives, that the pathogen was accidentally released by a virology lab in Wuhan, rather than a wild animal market. So far, that theory has not been proved, but Pottinger believes there is more circumstantial evidence in favor of the lab explanation, said people with knowledge of his views.

He and like-minded State Department aides have warned outside China experts, who had criticized the administration’s use of “Wuhan virus,” that they should remain skeptical of Beijing’s motives. Their message amounted to a warning that more damaging information would come out about Beijing’s handling of the pandemic, according to four people on the calls.

Long before the outbreak, Pottinger reportedly kept a ‘scorecard’ in his office with a ‘highly detailed’ accounting of all the ways China is undermining the US.

As Asia director, Pottinger kept in his office a large whiteboard mapped out with a highly detailed accounting of China’s growing global influence. The diagram was labeled with military-style buzzwords such as “Lines of Effort” and “Strategic Goals,” according to people who saw it.

A former NSC colleague called it a scorecard of all the ways “the Chinese Communist Party was attacking the West — and how we could fight back.”

During a recent security forum, Pottinger was asked to explain why he supports ‘decoupling’ the US and China. His answer:

“Decoupling,” he replied, “is when you have a Great Firewall where not a single Western Internet company has been able to prosper or survive in China, by design. When Christian churches are torn down and ethnic minorities are put into reeducation camps, that’s ‘decoupling.’ So the ‘decoupling’ is something that’s been underway for quite a long time – and it is not driven by the United States.”

For all the pro-China liberals in the US, the message from Pottinger is clear: If you spend more time criticizing ‘oppression’ by the US government, you should try living in Beijing for a few years. That should be enough to change your mind.

END

The Chinese communist party knew that their biolabs were a ticking time bomb in October and in need of safety upgrades according to documents

(Watson/Summitnews)

Chinese Communist Party Knew That Their Bio-Labs Were A Ticking Time Bomb In October

Authored by Steve Watson via Summit News,

The communist Chinese government was painfully aware that bio-labs including the Wuhan Institute of Virology, where it is thought the coronavirus could have originated, were in desperate need of safety upgrades to prevent accidental leaks.

An article in Asian Review notes that Chinese President Xi Jinping has been discussing the need for “biosafety” improvements for the past year.

“Beijing had been preparing biosecurity law, but not fast enough,” the report notes, adding that “China has been preparing for it carefully for quite a long time, conscious of how the country was perceived overseas.”

The report goes on to explain that France, a country instrumental in the construction of the lab, found a significant flaw in the framework for ensuring the safety of virus research in China.

“China wanted to catch up with advanced countries in biotech research as soon as possible. To that end, it needed to establish related laws on par with those in countries like France, the U.S. and Germany.” the report continues.

A report was received by the Chinese parliament last October, detailing 8 points where safety needed to be upgraded:

1) The prevention and control of major emerging infectious diseases, animal and plant epidemics.

2) Research, development and application of biotechnology.

3) Ensuring biosecurity in laboratories.

4) Ensuring the security of China’s biological resources and human genetic resources.

5) Preventing the invasion of alien species and protect biodiversity.

6) Dealing with microbial drug resistance.

7) Preventing bioterrorism attacks.

8) Defending against the threat of biological weapons.

The report notes that “the measures were not introduced in time for China to prevent the Wuhan outbreak. Instead, information was initially covered up and China’s first steps were delayed.”

In February, when it was clear that the outbreak was spreading, “Xi urged top leaders to enhance the country’s governance capacity for biosafety and to enact “a biosecurity law” at the earliest possible date,” according to the report.

This only enhanced the suspicions of those who believe the virus leaked from the lab.

Since that time, China has denied the US access to the Wuhan lab, according to US Secretary of State, Mike Pompeo. The facility has come under increased scrutiny after it was revealed that the US government under the Obama administration funded research there for a number of years.

In addition, a world renowned Russian microbiologist claimed last week that the novel coronavirus responsible for the COVID-19 pandemic was the result of Wuhan scientists doing “absolutely crazy things” in their lab.

Furthermore, a University of Texas Medical Branch lab director who visited the Wuhan institute in 2017 says that it would be foolish to dismiss the idea that the coronavirus escaped from the facility, and that “Accidents happen” in such labs.

Footage from inside the lab, broadcast in 2018, showing scientists working on coronavirus in bats, has increased scrutiny on the lab even further.

end

CHINA/CRAPPY DATA

Do not believe a word coming from the mouths of the Chinese as the spill out garbage

(zerohedge)

China PMIs Expand For 2nd Month After February Crash, But Real-Time Indicators Paint Different Picture

And just like that, China’s February swoon is ancient history.

After Beijing reported a dramatic rebound in March PMIs from the February crash which saw both the manufacturing and service PMIs tumble to record lows, it was virtually guaranteed that the April data would confirm a continuation of China’s “solid recovery” trend.

After all, it has now become a political race between China and the US over whose economy is more unscathed as a result of the coronavirus pandemic as the Global Times editor in chief Hu Xijin made abundantly clear today when in response to the latest US GDP print, tweeted “Already fell 4.8% in Q1, will definitely be worse in Q2. How will President Trump explain? I guess he would say the figure is better than expected and is so much better than any other country in the world.When China sees positive growth rate in Q2,he would say the number is fake.”

Hu Xijin 胡锡进

@HuXijin_GT

Already fell 4.8% in Q1, will definitely be worse in Q2. How will President Trump explain? I guess he would say the figure is better than expected and is so much better than any other country in the world.When China sees positive growth rate in Q2,he would say the number is fake.

View image on Twitter

Well, Trump certainly wouldn’t be the first to accuse China of fabricating numbers, especially in light of the latest official PMI numbers of out China which showed manufacturing dip from 52.0 to 50.8, missing expectations of 51.0 yet still in expansion territory; at the same time the Nonmanufacturing PMI printed at 53.2, up from 52.3, and well above the 52.5 consensus estimate.

But would Trump be right if accusing China of also fabricating its PMIs which show the economy now well in expansion territory for a second month? For the answer we go to real-time activity trackers which have become so popular ever since the breakout of the coronavirus pandemic. What they show is anything but an economy that is expanding.

First, according to channel checks, we can clearly see that the latest activity in such sectors are hotels, catering and entertanment is running far below indicative 2019 levels, with just mining and real estate roughly comparable to year ago levels.

To be sure, while daily coal consumption is indeed on par with 2019…

… transportation – both ground and by air – across China remains a pale shadow of 2019 levels.

More ominously, the all-important for China’s trade economy container throughput at major port appears to still be far below last year levels.

And most concerning of all for the country that still barely has a functioning bankruptcy process, is that the number of bankruptcies filings is surging:

Superimposing China and the US in industrial and consumer activity shows that while China is well ahead in terms of activity recovery, it has a ways to go before it catches up to 2019 levels. As for the US, it certainly has a ways to go.

The final proof that China has a ways to go before it recovers, let alone is in “expansion”, come from a handful of other high-frequency indicators as shown below.

Conclusion: China’s official PMI numbers are about as credible as its coronavirus “data.

END
A Chinese official collectedly states that the uSA dollar is a weapon for them and he calls on the world to dethrone the dollar
(Peter Schiff/SchiffGold.com)

“It’s A Weapon For The US” – China Official Renews Calls To Dethrone The Dollar

Via SchiffGold.com,

Last year, we reported extensively on a push toward de-dollarization by countries like Russia and China and their desire to undermine the ability of the US to weaponize the dollar as a foreign policy tool. Europe was even starting to push to dethrone the dollar as the reserve currency.

With the Federal Reserve running the dollar printing press at full speed and the US government expanding the national debt into the stratosphere, there are renewed calls for a currency to replace the dollar as the world reserve.

This week, Shanghai Gold Exchange (SGE) President Wang Zhenying called for a new super-sovereign currency to replace the greenback.

Reuters reports:

Concern has mounted among some market participants over the dollar-denominated system as the US Federal Reserve cut interest rates to near-zero and embarked on unlimited quantitative easing to contain the economic damage of the coronavirus pandemic.”

Wang said that the Fed’s monetary policy in response to COVID-19 would eventually tank the dollar even though the current crisis has triggered a scramble for greenbacks.

When the Fed turns on the liquidity tap, the US dollar will, in theory, be in a long-term depreciatory trend.”

Peter Schiff has been predicting that the dollar is going to tank for quite some time. It’s a matter of when, not if.  As the coronavirus crisis began to unfold and the Fed fired up the printing press, Peter said that with the central bank and government response to the coronavirus, hyperinflation has gone from being the worst-case scenario to the most likely scenario.

Peter has also said he thinks people will eventually start dumping dollars.

Nobody can hold dollars. Nobody can hold any bonds denominated in dollars. This is now like a game of musical chairs where nobody wants to get caught with dollars when the music stops playing.”

Wang not only expressed concern about the long-term stability of the dollar; he also echoed an oft-repeated criticism of the US controlling the reserve currency. America uses the privilege as a foreign policy tool. For instance, in 2014 and 2015, the blocked several Russian banks from SWIFT as relations between the two countries deteriorated. Last fall, the US threatened to lock China out of the dollar system if it didn’t follow UN sanctions on North Korea. Wang said this needs to end.

It is a weapon for the US, but a source of insecurity for other countries. The currency the world ultimately chooses for global trade must not be one that gives someone privilege, while exposing others to insecurity.”

A gold standard that prevented central banks from manipulating the money supply would be ideal. Peter has said that the US went off the gold standard in 1971, but he thinks the world is going to go back on it.

The days where the dollar is the reserve currency are numbered and we’re going back to basics. You know, everything old is new again. Gold was money in the past and it will be money again in the future.”

Regardless of what form it takes, it seems likely that efforts to push the dollar off its perch will only increase. The powers that be in America should be concerned about their currencies future as the world reserve. And Americans should be concerned about the future purchasing power of their dollars.

end

4/EUROPEAN AFFAIRS

ECB

TODAY, ECB keeps rates unchanged and launches its 750 billion euro new pandemic refinancing operations for the banks

(zerohedge)

 

ECB Keeps Rates, QE Unchanged, Launches New Pandemic Refinancing Operation For Banks

As expected, there were no changes to either the ECB’s rates or purchase program, or its €750BN expanded QE, aka the pandemic emergency purchase programme, with the ECB reiterating its willingness to do more, and clarifying that “the Governing Council will conduct net asset purchases under the PEPP until it judges that the coronavirus crisis phase is over, but in any case until the end of this year.”

The central bank also said the asset purchase programme plan will continue at a monthly pace of €20BN, together with the purchases under the additional €120BN temporary envelope until the end of the year, adding that “the Governing Council continues to expect monthly net asset purchases under the APP to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates.”

Separately, the ECB made the conditions for the previously announced TLTRO slightly more favorable by cutting the lowest interest rate on the TLTRO: “Specifically, the Governing Council decided to reduce the interest rate on TLTRO III operations during the period from June 2020 to June 2021 to 50 basis points below the average interest rate on the Eurosystem’s main refinancing operations prevailing over the same period.”

“Moreover, for counterparties whose eligible net lending reaches the lending performance threshold, the interest rate over the period from June 2020 to June 2021 will now be 50 basis points below the average deposit facility rate prevailing over the same period.”

Last but not least, the ECB also announced “a new series of non-targeted pandemic emergency longer-term refinancing operations (PELTROs)” which will be conducted to support liquidity conditions in the euro area financial system and contribute to preserving the smooth functioning of money markets by providing an effective liquidity backstop.

The PELTROs consist of seven additional refinancing operations commencing in May 2020 and maturing in a staggered sequence between July and September 2021 in line with the duration of the collateral easing measures. They will be carried out as fixed rate tender procedures with full allotment, with an interest rate that is 25 basis points below the average rate on the main refinancing operations prevailing over the life of each PELTRO.

While the introduction of the PELTROs was as some had expected, the lack of a more aggressive expansion in the QE may have come as a disappointment to some, and likely explains why the DAX and German bund yields dipped modestly lower on the news.

Full statement below:

At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:

(1) The conditions on the targeted longer-term refinancing operations (TLTRO III) have been further eased. Specifically, the Governing Council decided to reduce the interest rate on TLTRO III operations during the period from June 2020 to June 2021 to 50 basis points below the average interest rate on the Eurosystem’s main refinancing operations prevailing over the same period. Moreover, for counterparties whose eligible net lending reaches the lending performance threshold, the interest rate over the period from June 2020 to June 2021 will now be 50 basis points below the average deposit facility rate prevailing over the same period.

(2) A new series of non-targeted pandemic emergency longer-term refinancing operations (PELTROs) will be conducted to support liquidity conditions in the euro area financial system and contribute to preserving the smooth functioning of money markets by providing an effective liquidity backstop. The PELTROs consist of seven additional refinancing operations commencing in May 2020 and maturing in a staggered sequence between July and September 2021 in line with the duration of the collateral easing measures. They will be carried out as fixed rate tender procedures with full allotment, with an interest rate that is 25 basis points below the average rate on the main refinancing operations prevailing over the life of each PELTRO.

(3) Since the end of March, purchases have been conducted under the Governing Council’s new pandemic emergency purchase programme (PEPP), which has an overall envelope of €750 billion, to ease the overall monetary policy stance and to counter the severe risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the coronavirus pandemic. These purchases will continue to be conducted in a flexible manner over time, across asset classes and among jurisdictions. The Governing Council will conduct net asset purchases under the PEPP until it judges that the coronavirus crisis phase is over, but in any case until the end of this year.

(4) Moreover, net purchases under the asset purchase programme (APP) will continue at a monthly pace of €20 billion, together with the purchases under the additional €120 billion temporary envelope until the end of the year. The Governing Council continues to expect monthly net asset purchases under the APP to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates.

(5) Reinvestments of the principal payments from maturing securities purchased under the APP will continue, in full, for an extended period of time past the date when the Governing Council starts raising the key ECB interest rates, and in any case for as long as necessary to maintain favourable liquidity conditions and an ample degree of monetary accommodation.

(6) The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.50% respectively. The Governing Council expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2% within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics.

The Governing Council is fully prepared to increase the size of the PEPP and adjust its composition, by as much as necessary and for as long as needed. In any case, it stands ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry.

Further details on the amendments made to the terms of TLTRO III and on the new PELTROs will be published in dedicated press releases this afternoon at 15:30 CET.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.

And now all eyes on Lagarde’s press conference at 830am ET.

end

 

EU/RECORD DROP IN EUROZONE ECONOMY//GERMANY

The virus lockdown is smashing German jobs big time:  leads to record drop in total Eurozone economy

(zerohedge)

Virus Lockdowns Smash German Jobs, Lead To Record Drop In Eurozone Economy

German unemployment soared in April, while the Eurozone economy contracts the quickest on record as coronavirus lockdowns inflict severe economic damage across the continent.

Germany, the world’s fourth-largest economy and Europe’s largest, experienced a sharp increase in the number of people out of work in April, rising by 373,000 to 2.639 million, the Federal Labor Office reported on Thursday (April 30). The forecast among 20 economists was between 10,000 and 350,000, which over exceeded their expectations. The result was a bump higher in the unemployment rate to 5.8% from 5.0% in March, reported Reuters.

 

h/t Reuters’ Riham Alkousaa

Reuters’ Riham Alkousaa tweeted, “So 10.1 mln people on short-time work in Germany, 373,000 more unemployed in April and the unemployment rate is now 5.8% from previous 5.0% The virus is taking its toll on the German job market.” 

Riham Alkousaa@RihamKousa

So 10.1 mln people on short-time work in , 373,000 more unemployed in April and the unemployment rate is now 5.8% from previous 5.0%
The virus is taking its toll on the German job market

Data from the Federal Labor Office also showed a plunge in retail sales of 5.6% in March, which was a slightly smaller dip than what analysts were predicting around -7.3%. Retail sales have been widely depressed in the country since COVID-19 cases and deaths started to appear as early as February. The lockdowns, which began in mid-March, have taken a drastic economic toll on households as the economy grinds to a halt. Government data shows higher retail sales at supermarkets that offset some of the losses elsewhere.

The German economy is expected to contract 6.3% this year as a recession could trough in the second quarter and surge after lockdowns are lifted. Some businesses reopened last week, but threats of a second coronavirus wave have left much of the economy in economic paralysis.

For the continent, well, lockdowns have led to the fastest rate of economic decline on record. Eurozone GDP for the first quarter fell by 3.8% compared with the previous quarter. This is the most significant collapse in economic growth since the data series began in 1995.

Jessica Hinds, a European economist at Capital Economics, suggests the plunge in economic activity is not over. She said the first quarter “will pale in comparison with the complete collapse that will surely be recorded in Q2.” Meanwhile, stocks around the world have been rallying as if the crisis is over, even though the economic damage is only starting to be realized.

END
UK
I was afraid of this: A UK study now shows that it will have an extra 18,000 cancer deaths due to non treatment
(Watson/SummitNews)

UK Study Shows 18,000 Extra Cancer Deaths Possible Within A Year Due To COVID-19 Focus

Authored by Paul Joseph Watson via Summit News,

A new study concludes that there could be 18,000 extra cancer deaths in the UK within a year because victims are not able to get screenings and treatment due to the focus on COVID-19.

“Delays in diagnosing and treating cancer could hurt the survival chances of thousands of people across England, joint research by University College London (UCL) and the Health Data Research Hub for Cancer (DATA-CAN) suggests,” reports RT.

“Scientists analyzed data from more than 3.5 million patients and discovered that the Covid-19 outbreak could indirectly lead to more than 17,900 extra cancer deaths within a year, including 6,270 fatal cases in newly diagnosed cancer patients.”

The study discovered an 76 per cent average drop in early cancer diagnosis referrals and a chemotherapy attendance reduction of 60 per cent in England.

Cancer patients are avoiding hospitals partly due to fears over catching COVID-19 and partly because they were told health workers would be “overwhelmed” by coronavirus, something that never happened.

Indeed, acute hospital beds in the UK are four times emptier than normal and overspill hospitals are being being used.

Many stroke and heart attack victims are also routinely waiting 2 hours for an ambulance to arrive while 2,300 cancer diagnoses are being missed each week because they are not being referred for urgent scans and tests.

As we previously highlighted, Richard Sullivan, professor of cancer at Kings College, London, also warned that excess cancer deaths could eventually outstrip COVID-19 deaths.

The number of deaths due to the disruption of cancer services is likely to outweigh the number of deaths from the coronavirus itself over the next five years,” he said.

“The cessation and delay of cancer care will cause considerable avoidable suffering,” said Sullivan. “Cancer screening services have stopped, which means we will miss our chance to catch many cancers when they are treatable and curable, such as cervical, bowel and breast.”

*  *  *

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end

UK/BANKERS

As the UK mortality rate spikes higher, UK bankers will not return to London any time soon

(zerohedge)

As Mortality Rate Spikes, Bankers In UK Won’t Return To ‘The City’ Any Time Soon

From the very beginning, Wall Street banks were reluctant to let their most-critical front office employees – especially traders – work from home despite the obvious risks presented by the coronavirus. Even after a whole floor of JPM traders in New York were infected by a couple of coworkers, Goldman and JPM were rumored to still be pressuring employees to make sometimes illicit appearances in the flesh, and when working from home has been the only option, bankers have reportedly been putting in more additional hours as managers assume they’re available at all hours.

While the Wall Street culture that revolves around ‘the floor’ will likely endure once the lockdowns are lifted in the US, some of the largest banks in the UK are insisting that they won’t recall employees to the office until things are 100% safe. And some may never return, having proved that they’re equally efficient working from home. As Bloomberg put it in its headline: “Bankers Aren’t Returning To Skyscrapers Any Time Soon, If Ever.”

The reason for this? During Barclays post-earnings call earlier, CEO Jes Staley said warehousing thousands of workers in office buildings and skyscrapers might be a “thing of the past” – especially if social distancing means only two people can ride an elevator at a time for the next 2 years.

Staley’s concerns echoed those of several rivals, Bloomberg said.

“There will be a long-term adjustment about how we think about our locations,” Staley said on a conference call after the bank reported earnings on Wednesday. Branches might work as alternative sites for investment bankers once staff are cleared to stop working from home, he said.

It’s possible this is a function of the UK’s significantly-higher mortality rate, which just took another tick upward on Wednesday after thousands of new home deaths were reported, as well as the political backlash over Boris Johnson’s initial response (based on recommendations from government scientists that were later determined to be flawed) which has made the PM reluctant to release concrete guidelines about his plans to reopen the economy.

Because in New York City and most places, financial services employees – from analysts, to traders to bank tellers – are considered essential. And while many of the white collar workers in the industry have been working from home with little issue, traders in NYC have discussed being pressured to take the subway to the office and take other steps that the employees said would leave them at risk of being infected.

JP Morgan said earlier this month that it had developed a plan to start returning some staff to its offices. The bank has said it’s exploring the idea of hiring “door attendants” to push elevator buttons and open doors for employees.

Meanwhile, Goldman is reportedly trying to develop a system for employees to open doors without actually touching them, perhaps by stocking towelettes.

Regardless of what happens in Europe and the US, right now, the first global financial hub to reopen will probably be Hong Kong, where most shops and bank branches have reopened, and life is rapidly settling back into its normal rhythms.

It’s also one reason to suspect that the slump in London’s commercial property market might be even more disastrous than in the US, although granted financial services is just one industry.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

MOSCOW/CORONAVIRUS UPDATE

Moscow is being hit pretty hard as they now have over 100,000 COVID cases surpassing Iran

(zerohedge)

Moscow Hospitals Overwhelmed As Russia Hits 100,000 COVID Cases, Surpassing Iran & China

Russian state media reports a grim milestone for a country which though early on reported cases months ago, appears to be peaking late, following officials initially downplaying the pervasiveness of the disease.

From Tuesday into Wednesday over the course of a mere 24 hours new coronavirus cases rose by 5,841 to 99,399 – TASS reports. The prior day, Tuesday, the country reported 6,411 new infections, now the single-day record increase thus far.

This puts the country on track to hit 100,000 by Thursday or at least by end of the week, meaning Russia has this week surpassed Iran and China, and now has the eighth highest count of infections globally.

 

Via The Moscow Times

“A total of 99,399 coronavirus cases have so far been recorded in 85 Russian regions (up by 6.2%). As many as 1,830 people were discharged from hospitals in the past 24 hours, bringing the total number of recoveries to 10,286. As many as 972 people have died,” a statement from Russia’s anti-coronavirus crisis center reads.

Very alarmingly, the center further detailed that 44.9% of the new cases recorded (2,624) have no symptoms.

“Another 2,220 patients have been confirmed in Moscow, bringing the number of cases in the city to 50,646,” TASS says further of the nation’s epicenter. The situation in Moscow strongly suggests the entirely state-run national health system (which is “free” to all citizents) is fast becoming overwhelmed, as the independent Moscow Times notes:

At least 170 doctors and patients at a hospital in central Russia have tested positive for coronavirus in preliminary tests, the state-run RIA Novosti news agency reported.

Meanwhile, the mayor of Moscow Sergei Sobyanin has indicated that construction is underway of temporary hospitals with the combined capacity for 10,000 beds.

Chart & data via The Moscow Times

And in another sign that hospitals, woefully short on personal protective equipment (PPE) like many Western nations, are collapsing under the strain, there’s at least one instance of an entire medical building being placed under quarantine:

City hospital No. 1 was placed under quarantine after 78 of its doctors and patients tested positive for the virus, Kuyvashev said on social media. Most of them are asymptomatic, he added, while one patient is in critical condition.

More and more doctors are said to be self-reporting their own coronavirus infections. Amid the sharp daily rises President Putin extended the “non-working” month at least through May 11.

Sarah Rainsford@sarahrainsford

Chief doc at Hospital 15 in Moscow recorded this video warning: ‘We’re being brought an increasing no of young patients in a really bad way who need ventilating. Our ER is under pressure. There’s lots of patients, more & more each day. Esp aged c. 40, brought in in a bad way.’

Embedded video

 

 

Further, the Kommersant business daily has reported authorities are set to take drastic measures to track foreigners’ movements in the country utilizing smartphone geolocation technology.

This after earlier this month the Kremlin controversially locked down the borders to all non-commerce related transit.

end

Russian Prime Minister Tests Positive For Coronavirus

Russian Prime Minister Mikhail Mishustin has tested positive for COVID-19, according to a report in Russian newswire Interfax.

Amichai Stein

@AmichaiStein1

: Russian PM Mikhail Mishustin diagnosed with the new Coronavirus

View image on Twitter

Yesterday, Russia saw its total number of confirmed cases eclipse 100k, placing Russia in the ranks of the 10 biggest outbreaks around the world (at least going by the number of ‘confirmed’ cases)

The PM has told Russian President Vladimir Putin, who delivered a televised address earlier this week about the country’s intensifying outbreak, which is centered around the capital of Moscow, that he will isolate until he tests negative, in accordance with the standard procedures.

First Deputy Prime Minister Andrei Belousov will fill in for Mishustin while he recovers.

Mishustin, 54, was named prime minister in January, just as the virus was beginning to spread beyond China, after Putin pushed out his longtime deputy and former “tandem-ocracy” leader Dmitry Medvedev after a series of gaffes and corruption scandals.

It’s not clear how Mishustin acquired the virus, or whether he might have exposed other high-ranking Russian officials, possibly even Putin, though the president has appeared to keep his distance since the outbreak began.

6.Global Issues

CORONAVIRUS/UPDATE

Now scientists are finding that the coronavirus can linger in the air of crowed spaces a lot longer than previously thought

(zerohedge)

Scientists Find Coronavirus Can Linger In The Air Of Crowded Spaces Longer Than We Thought

As the novel coronavirus pandemic draws inexorably closer to the 3 million mark, scientists are scrambling to understand the mechanics that drive viral transmission from person to person. Unfortunately, studies have produced sometimes conflicting results.

Yesterday, we noted a study by an Italian researcher who found evidence of coronavirus genetic material on tiny air pollution particles, raising questions about how far the virus can travel through the air, and whether higher air pollution levels might be correlated with deeper viral penetration in a given community.

Previously, scientists suspected that only relatively large globules of saliva – like those produced by a spit-talker – could easily infect another individual since they’re too large to get caught up in natural air flow and will likely land on a person’s clothes, or the floor. Smaller particles, known as ‘aerosols’, were likely too small to successfully transmit the virus to another person, according to a NYT rundown of possible means of infection.

As confusion about the virus and its behavior reigns, Bloomberg reported on a new study by a pair of Chinese scientists showing that the virus appears to linger in the air longer than previously thought. If these findings are eventually confirmed, they would directly contradict a WHO ‘recommendation’ that only health-care workers need to wear facemasks – guidance that has already been dismissed by the US and other member states.

Studies carried out at two hospitals in Wuhan found the largest concentrations of the virus in the hospital toilets and in rooms where nurses and doctors change out of their medical scrubs. But scientists detected at least some ambient levels of the virus in most of the hospital rooms it examined. The study was published Monday in the journal Nature Research. Like with other ‘aerosol’ studies involving SARS-CoV-2, researchers didn’t seek to establish whether the airborne particles could cause infections.

The study was published in the Journal of Natural Research.

At two hospitals in Wuhan, China, researchers found bits of the virus’s genetic material floating in the air of hospital toilets, an indoor space housing large crowds, and rooms where medical staff take off protective gear. The study, published Monday in the journal Nature Research, didn’t seek to establish whether the airborne particles could cause infections.

The question of how readily the new virus can spread through the air has been a matter of debate. The World Health Organization has said the risk is limited to specific circumstances, pointing to an analysis of more than 75,000 cases in China in which no airborne transmission was reported.

To create a point of reference for the hospital studies, researchers also measured ambient aerosol virus levels in places like supermarkets or Chinese apartment buildings. Here, they found, concentrations of the virus were much lower.

If there’s anything that can be extrapolated in terms of recommendations for public behavior, it’s that next time you use a public restroom, be absolutely sure to wash your hands thoroughly and avoid touching your face after.

Amercans’ No. 1 complaint about the government’s response to the outbreak has been confusion as experts and officials make different – sometimes contradictory – recommendations. One of the most controversial pieces of advice is the recommendation that people wear masks out in public, as people struggle to grasp that the initial recommendation not to wear masks was made to preserve dwindling stocks for health-care workers.

While there’s no direct evidence from this study about whether these particles are infectious, we suspect most people would rather not be exposed to potentially dense quantities of virus-carrying aerosols without wearing an N95.

END

Coronavirus update//Michael Snyder…

All Of The Coronavirus Models Were Wrong

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

How is it possible that all of the coronavirus models could have been so completely and utterly wrong about what was going to happen?

Very early in this pandemic, some models that were predicting millions of deaths caused quite a bit of panic all over the globe.  In fact, a projection done by researchers at the Imperial College of London warned that 40 million people could die from COVID-19 this year alone.  Obviously that estimate was dead wrong, and it has become quite clear that this pandemic is not an “end of the world” scenario.

But on the other extreme, there have been a lot of models that were forecasting a relatively low death toll, and those models have been proven to be completely wrong as well.

For example, the Los Angeles Times just published a story that discussed the fact that a number of models had projected that the U.S. would not reach 60,000 deaths until “late summer”…

The death toll from COVID-19 reached nearly 60,200 in the United States on Wednesday, and confirmed cases surpassed 1 million, according to Johns Hopkins University. Some models had suggested the U.S. would not reach this milestone until late summer.

Well, we just blew by that figure and we are rapidly moving up toward 70,000 deaths.

During the 24 hour period that just ended, another 2,390 Americans died from COVID-19, and the number of daily deaths is likely to escalate as some states attempt to “reopen” in the weeks ahead.

But a prominent model that the Trump administration has been relying on very heavily had been projecting that there would not be a single U.S. death from the coronavirus after June 21st…

An influential model cited by the White House predicts that coronavirus deaths will come to a halt this summer, with zero deaths projected in the United States after June 21.

Not a single person will die in the ensuing month and a half, according to the model, which makes predictions until August.

Obviously some U.S. officials must strongly disagree with that sort of a projection, because the Wall Street Journal is reporting that the federal government just ordered 100,000 more body bags…

The federal government ordered 100,000 new Covid-19 body bags, in what officials described as preparations for a “worst case” scenario.

The giant order last week for “human remains pouches” comes as more than 58,000 Americans have died from Covid-19, according to data from Johns Hopkins University.

That would seem to be a tremendous waste of money if this pandemic is essentially going to be over in June.

Of course the truth is that this pandemic is not going to end any time soon, and every day we continue to get more indications that it is going to be much more grisly than many had originally anticipated.  For instance, on Wednesday police in New York found dozens of dead bodies stored in trucks outside a funeral home…

Police found dozens of bodies being stored in unrefrigerated trucks outside a Brooklyn funeral home and lying on the facility’s floor Wednesday, law enforcement sources told The Post.

Between 40 to 60 bodies were discovered either stacked up in U-Haul box trucks outside Andrew Cleckley Funeral Services in Flatlands or on the building’s floor, after neighbors reported a foul odor around the property, sources said.

And the entire nation was stunned to learn that almost 70 people have died at a home for aging veterans in Massachusetts

Nearly 70 residents sickened with the coronavirus have died at a Massachusetts home for aging veterans, as state and federal officials try to figure out what went wrong in the deadliest known outbreak at a long-term care facility in the U.S.

While the death toll at the state-run Holyoke Soldiers’ Home continues to climb, federal officials are investigating whether residents were denied proper medical care and the state’s top prosecutor is deciding whether to bring legal action.

While it is true that this pandemic is not “the end of the world”, nobody out there should be attempting to claim that it is a “nothingburger” either.  Just check the carnage that authorities in Ecuador have been dealing with

Front line medics in one of Latin America’s coronavirus epicenters are lifting the lid on the daily horrors they face in an Ecuadoran city whose health system has collapsed.

In one hospital in Guayaquil overwhelmed by COVID-19 patients, staff have had to pile up bodies in bathrooms because the morgues are full, health workers say.

In another, a medic told AFP that doctors have been forced to wrap up and store corpses to be able to reuse the beds they died on.

The only reason why we haven’t seen a lot of other health systems around the world get overwhelmed is because most of the planet is shut down right now.

As some parts of the globe attempt to “reopen”, it is inevitable that cases will start to surge again in those areas.  In fact, that is precisely what is starting to happen in Germany.

Sadly, this pandemic has become highly politicized at this point, and there are many out there that would love to exploit it for their own nefarious purposes.  For example, Hillary Clinton told Joe Biden during an online town hall that “this would be a terrible crisis to waste”

This is a high-stakes time, because of the pandemic. But this is also a really high-stakes election. And every form of health care should continue to be available, including reproductive health care for every woman in this country. And then it needs to be part of a much larger system that eventually — and quickly, I hope — gets us to universal health care. [Biden nods] So I can only say, “Amen,” to everything you’re saying, but also to, again, enlist people that this would be a terrible crisis to waste, as the old saying goes. [Biden nods] We’ve learned a lot about what our absolute frailties are in our country when it comes to health justice and economic justice.

Instead of dividing us even more deeply as a nation, this pandemic should be bringing us together.  And hopefully that will happen, because even greater challenges are in our future.

But for now, we still have a very long battle with this virus ahead of us.

Many more Americans are going to get sick and many more Americans are going to die, and we really don’t have any idea what the final numbers are going to look like because all of the “scientific models” have been dead wrong so far.

end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0873 DOWN .0004 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 /ALL RED

 

 

USA/JAPAN YEN 106.53 DOWN 0.073 (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 1.2516   UP   0.0006  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3865 UP .0010 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  THURSDAY morning in Europe, the Euro FELL BY 4 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED UP 37.64 POINTS OR 1.33% 

 

//Hang Sang CLOSED UP 67.63 POINTS OR 0.28%

/AUSTRALIA CLOSED DOWN 2,45%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 67.63 POINTS OR 0.28%

 

 

/SHANGHAI CLOSED UP 37.64 POINTS OR 1.33%

 

Australia BOURSE CLOSED UP 2.45% 

 

 

Nikkei (Japan) CLOSED UP 424.50  POINTS OR 2.14%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1714.70

silver:$15.27-

Early THURSDAY morning USA 10 year bond yield: 0.61% !!! DOWN 2 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.24 DOWN 1  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 99.45 DOWN 12 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing  THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.81% DOWN 9 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.04%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.71%//DOWN 8 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,77 DOWN 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 106 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.59% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.36% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.0929  UP     .0053 or 53 basis points

USA/Japan: 106.92 UP .313 OR YEN DOWN 31  basis points/

Great Britain/USA 1.2585 UP .01152 POUND UP 115  BASIS POINTS)

Canadian dollar UP 42 basis points to 1.3934

 

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The USA/Yuan,CNY: AT 7.0623    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  67.0802  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.9892 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.04%

 

Your closing 10 yr US bond yield DOWN 4  IN basis points from MONDAY at 0.59 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.23 DOWN 2 in basis points on the day

Your closing USA dollar index, 99.15 DOWN 42  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 214.04  3.50%

German Dax :  CLOSED DOWN 246.10 POINTS OR  2.22%

 

Paris Cac CLOSED DOWN 98.93 POINTS 2.12%

Spain IBEX CLOSED DOWN 133.40 POINTS or 1.89%

Italian MIB: CLOSED DOWN 376.80 POINTS OR 2.09%

 

 

 

 

 

WTI Oil price; 17.66 12:00  PM  EST

Brent Oil: 25.69 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    74.52  THE CROSS HIGHER BY 1.50 RUBLES/DOLLAR (RUBLE LOWER BY 150 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.59 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 :  19.13//

 

 

BRENT :  26.68

USA 10 YR BOND YIELD: … 0.64…plus one basis point…

 

 

 

USA 30 YR BOND YIELD: 1.287..plus 4  basis points..

 

 

 

 

 

EURO/USA 1.0953 ( UP 72   BASIS POINTS)

USA/JAPANESE YEN:107.21 up .515 (YEN down 52 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.01 DOWN 50 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2596 UP 112  POINTS

 

the Turkish lira close: 6.9901

 

 

the Russian rouble 74.26   down 1.17 Roubles against the uSA dollar.( down 117 BASIS POINTS)

Canadian dollar:  1.3919 down 44 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.32%

 

The Dow closed DOWN 288.14 POINTS OR 1.17%

 

NASDAQ closed DOWN 25.16 POINTS OR 0.28%

 


VOLATILITY INDEX:  34.15 CLOSED UP  2.92

LIBOR 3 MONTH DURATION: 0.686%//libor dropping like a stone

LIBOR/OIS//  .632%

TED SPREAD//.582%

 

USA trading today in Graph Form

Stocks Scream To “Most Expensive Ever” In Greatest Month Since ’87

US stocks have exploded higher in April… (ended weak on what many suspect is simple rebalance flows)

This is the best month for the S&P 500 since January 1987 (and was the best since 1974’s 13.17% gain until today’s drop)

Despite the loss of over 30mm jobs…

Despite the collapse in economic data (far worse than expected)…

Source:Bloomberg

Despite a plunge in earnings expectations…

Source:Bloomberg

Oh and Despite an ongoing surge in COVID Deaths…

Source:Bloomberg

As Avenue Capital’s Marc Lasry shockingly told CNBC:

“none of this [equity rally] is based on fundamentals, this is all about what The Fed is doing… and sooner or later reality will reassert itself.”

Source:Bloomberg

So, everything is awesome?

Well, Jim Bianco warns  that any recovery from here will be “slow and long” and adds that:

“I understand the market has been up a lot since the March low. But what I see in the market is a retracement rally that looks very similar to the first type of rallies that you get in protracted bear markets.”

Bianco added, ominously that:

“we’ll revisit the 2,200 S&P low, if not make a lower low – probably by late summer,” he said.

“That’s going to come because we’re going to find out now is a critical time for the market.”

Oh and in case you were thinking of buying the dip, Warren Buffett’s favorite stock market indicator is signaling “sell, mortimer, sell” as it pushes to its most expensive ever…

The Dollar is unch in April, bonds are barely higher (in price), Gold showed some gains (as oil crashed), but stocks were panic-bid…

Source:Bloomberg

After a mid-month meltdown after earnings, bank stocks all managed gains in April…

Source:Bloomberg

Virus-impacted sectors were mixed with airlines ugly but cruise lines positive…

Source:Bloomberg

Overall, the “virus-fear” trade eased off in April…

Source:Bloomberg

Despite stock market gains, bonds ended the month lower in yield, led by the long-end (all despite massive Fed-sponsored corporate issuance)…

Source:Bloomberg

However, today’s late-day spike in rates, once again recoupled them with stocks briefly…

Source:Bloomberg

The Dollar ended the month lower, thanks to 5 straight down days…

Source:Bloomberg

And as the dollar dipped, Bitcoin soared to test $9,500 intraday today…

Source:Bloomberg

It was a big month for all of crypto with Ethereum best…

Source:Bloomberg

Commodities were mixed with crude collapsing (chart shows the June contract – the May contract was down 300% at its worst) as gold, silver, and copper rallied in April…

Source:Bloomberg

Gold futures were clubbed back below $1700 as the end of month gold-dump played out once again…

Silver was also hit today to end the month on the downswing…

WTI was a bloodbath…

It would appear the new normal post-COVID is an economy that does not require commodities…

Source:Bloomberg

Finally, as Bloomberg notes, the Nasdaq Stock Market’s biggest companies may have reached a “major top” relative to the smaller ones that make up the Russell 2000 Index, according to David Halloran, director of portfolio strategies at Greenwood Capital Associates LLC.

Source:Bloomberg

Halloran cited the ratio between the Invesco QQQ exchange-traded fund, tracking the Nasdaq-100 Index, and the iShares Russell 2000 ETF in an email Wednesday. The ratio fell 11% between April 16 and Wednesday after surging 42% earlier in the year, according to data compiled by Bloomberg. At its high, the ratio came within 4% of a record set in September 2000.

As The Fed continues to taper its bond-buying (quietly), we enter the month of May with nothing but hope holding stocks up. We give Jim Bianco the last words…

“What the market seems to be thinking is we’re going to restart, and we’re all going to pretend that it’s 2019,” said Bianco.

“And, we’re all going to stand on the subway platform with 500 other people waiting for the next train.”

“We are moving to a lower growth environment, and I think the market is a little ahead of itself right now in what that means,” Bianco said.

“There’s going to be more changes and more evolution that the economy is going to have to go through before we’re ready to start a full on bull market.”

It seems for now that the Boomers are panicking…

Oh and one more thing – AAPL tonight… and it’s all about fundamentals, NOT!

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

This week:  3.84 million Americans have filed for unemployment.  In the past 6 weeks: 30 million Americans

(zerohedge)

Over 30 Million Americans Have Lost Their Jobs In The Last Six Weeks

In the last week 3.839 million Americans filed for unemployment benefits for the first time.

Source: Bloomberg

That brings the six-week total to 30.31 million, which is over 12 times the prior worst five-week period in the last 50-plus years.

And of course, last week’s “initial” claims and this week’s “continuing” claims… the highest level of continuing claims ever

Source: Bloomberg

A breakdown by states shows that claims generally declined, with the biggest drops in California, Florida and Connecticut, while Washington, Georgia and New York saw a continue pick up.

And as we noted previously, what is most disturbing is that in the last six weeks, far more Americans have filed for unemployment than jobs gained during the last decade since the end of the Great Recession… (22.13 million gained in a decade, 30.3 million lost in 6 weeks)

Worse still, the final numbers will likely be worsened due to the bailout itself: as a reminder, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed on March 27, could contribute to new records being reached in coming weeks as it increases eligibility for jobless claims to self-employed and gig workers, extends the maximum number of weeks that one can receive benefits, and provides an additional $600 per week until July 31. A recent WSJ article noted that this has created incentives for some businesses to temporarily furlough their employees, knowing that they will be covered financially as the economy is shutdown. Meanwhile, those making below $50k will generally be made whole and possibly be better off on unemployment benefits.

As Mises’ Robert Aro noted earlier in the week, the stimulus packages being handed out across this world provide us with an opportunity to document the anticapitalist process as it unfolds in real time, keeping in mind that when these inflation schemes fail, it will likely be blamed on capitalism.

The combination of increasing the money supply in order to pay people not to produce goods or services has consequences that not a lot of people are talking about.

It flies in the face of the free market and is as nonsensical as a negative interest rate. A loan that is forgivable is unconventional to say the least, because a loan is normally defined as an amount borrowed that is expected to be paid back with interest. When a loan is given on a first-come-first-served basis for the purpose of paying people not to work and is forgivable because it’s guaranteed by the United States government, we shouldn’t call it a loan.

It may be called socialism, maybe interventionism, and some may still prefer the term statism; but one thing is certain when it comes to the Paycheck Protection Program: it’s not capitalism!

Welfare cliffs are of course not the only reason so many capable Americans languish in partial dependency on government assistance. Dreadful government schools in poor areas and systematic obstacles to getting a job, such as minimum wage laws and occupational licensing laws, are also to blame. But the perverse incentives of America’s welfare system really hurt, and the CARES Act may have been a serious tipping point.

But, hey, there’s good news… well optimistic headlines as Treasury Secretary Steven Mnuchin said he anticipates most of the economy will restart by the end of August.

Finally, it is notable, we have lost 434 jobs for every confirmed US death from COVID-19 (60,999).

Was it worth it?

END

This hurts USA GDP:  Consumer spending collapses by the most on record:  7.3%

(zerohedge)

US Consumer Spending Collapses By Record, Worse Annual Drop Than Peak Of Lehman Crisis

Given the headline data from yesterday’s GDP print, this should not be a total surprise but Americans’ spending crashed in March.

After adjusting for inflation, spending slumped 7.3%, also the most ever and underscoring data out Wednesday that showed the sharpest drop in consumer spending since 1980 during the first quarter.

The report also showed nominal incomes dropped the most since January 2013. reflecting a 3.1% decrease in wages and salaries as a result of the pandemic.

Source: Bloomberg

This sparked the biggest annual contraction in US spending ever – larger than at the peak of the Lehman crisis

Source: Bloomberg

If there is any silver lining, Americans are “living within their means” like never before as the savings rate explodes from 8.0% to 13.1% of disposable income… the highest since 1975

The numbers are the latest tally of how the shutdown was bearing down on a U.S. economy that’s all but officially in a recession… which can only means more gains for stocks, right?

Think of all that “pent-up” spending demand!!

END

iii) Important USA Economic Stories

Homeless are finding their way into subway cars and this posses a huge problem

(zerohedge)

Watch: ‘Underground Hazard’ Exposed As NYC Homeless Fill Up Subway Cars Amid Pandemic

“I got to send this to the governor, let him see this shit,” a 25-year veteran of New York City’s Metropolitan Transportation Authority said when posting an now viral video clip depicting a growing crisis in the city’s subways.

The employee, subsequently confirmed in media reports as Torry Chalmers, offered video proof that throngs of the city’s homeless are now filling up empty train cars on a regular basis.

Chalmers and other employees are demanding “hazard pay” given that the rising number of homeless filling the subways they interact with are a huge risk amid the coronavirus pandemic, also given the Big Apple has for weeks now been the global epicenter.

“This is what I got to do. I got to go to work in this,” he said in the video. “It’s not making any sense. It’s nasty, nasty.”

“People are scared when the train comes in the station,” Chalmers added. “If one car looks bad, they’ll run to another — but it’s the same problem in every car.”

“We’re out there every day putting our lives on the line… We should get hazard pay,” he asserted.

New York Gov. Andrew Cuomo addressed the growing crisis in the wake of growing outrage over the alarming underground hazard conditions, calling the situation “disrespectful to the essential workers who need to ride the subway system.”

Cuomo said Tuesday, “We have to have a public transportation system that is clean, where the trains are disinfected,” and added: “It’s not even safe for the homeless people to be on trains,” Cuomo added.

“We’re concerned about homeless people so we let them stay on the trains without protection in this epidemic of the COVID virus? No, we have to do better than that and we will,” the governor said.

New York and other cities, especially L.A. and San Francisco have for weeks been attempting to get a handle on the homeless crisis amid the pandemic. Recently photos of Las Vegas casino parking lots which served as makeshift homeless ‘social distancing’ outdoor sleeping venues went viral.

NY Mayor Bill de Blasio has this week called on the MTA to close subway terminals to ensure homeless don’t congregate there, and for the purpose of nightly deep disinfecting.

And Interim New York City Transit President Sarah Feinberg commented:

“Our customers shouldn’t have to board a car that multiple people using it as a shelter and as a trash receptacle or toilet.”

Since the crisis began the MTA has greatly reduced its service, also as hundreds of its personnel have been out sick with coronavirus, compounding the risk to the mass transit service and broader public; however, it’s considered that the city’s subway system which has never completely closed in the century of its existence is vital for daily transporting ‘essential’ workers.

END
Beef prices soar on meatpacking plants shuttering their doors
(zerohedge)

Beef Prices Soar To Record High As Meatpacking Plants Shutter

Wholesale American beef prices jumped 6% to a record high of $330.82 per 100 pounds, a 62% increase from the lows in February, according to Bloomberg, citing new USDA data.

The surge in beef prices comes at a time when the nation’s food supply chain network has been severely damaged by meatpacking plants going offline due to virus-related shutdowns and worker shortage. Bloomberg highlights the latest plant closures in the map below:

Soaring food inflation came one day after President Trump said he would be issuing an executive order  to address meat shortages.

“Because of the virus, meat slaughtering is 40% below where it needs to be to handle all of the animals coming to market, said Arlan Suderman,” chief commodities economist at INTL FCStone.

“Processing plants were generally in favor of the executive order that would give them liability cover when reopening,” Suderman said. “Yet, the order still does not solve the problem of employee absenteeism.” At least 20 workers in meat and food processing have died and 5,000 have tested positive or forced to self-quarantine due to coronavirus, according to the United Food and Commercial Workers International union.

Just days ago, Tyson Foods warned in a full-page ad in the New York Times on Sunday that the “food supply chain is breaking.”

And with tens of millions of Americans out of work, a crashed economy that is plunging into depression, and rapid food inflation — this could all suggest that the evolution of the virus crisis is not just an economic crisis but also social instabilities are ahead.

 end

Fed Expands Scope, Eligibility For Main Street Lending Program, Adds New Option For Heavily Indebted Firms

As Steven Mnuchin previewed last week when he said he’s considering an additional lending facility for troubled U.S. energy companies, at 10am on Thursday the Fed – which is now joined at the hip with the Treasury – announced that it is expanding the scope and eligibility for the Main Street Lending Program which was developed “as part of its broad effort to support the economy” and “to help credit flow to small and medium-sized businesses that were in sound financial condition before the pandemic.”

Specifically, the central bank said businesses with up to 15,000 employees or up to $5 billion in annual revenue are now eligible, compared to the initial program terms which were for companies with up to 10,000 employees and $2.5 billion in revenue, doubling the revenue limit from previous guidelines and raising the employee limit by 5,000.

The maximum loan size would be limited to 4x adjusted 2019 EBITDA while the minimum loan size was lowered to $500,000 from $1 million.

The Fed also added a third loan option for companies was higher debt. Under the new loan option, lenders would retain a 15% share on loans that when added to existing debt do not exceed 6x EBITDA. This compares to the existing loan options where lenders retain a 5% share on loans, but have different features.

Under all of the loan options, lenders will be able to apply their industry-specific expertise and underwriting standards to best measure a borrower’s income. All the loans will have a 2-4 years term and pay interest at a rather high Libor+3% rate (on the flipside, there are no covenants).

In total, three loan options—termed new, priority, and expanded—will be available for businesses. The chart below summarizes the different loan options.

It wasn’t immediately clear if the adjustments on the Fed facility are meant to make it easier for energy companies to access the Fed’s loans. Previously, the Fed’s reading of its emergency lending authority has been that it doesn’t permit the central bank to erect a facility to support a specific industry.

The unspoken message here is that with every passing day, the Fed is expanding its various bailout programs suggesting that demand for Fed backstops is far greater than expected, which then also means that the economic damage is much broader than the Fed anticipated just weeks ago.

END
Crisis time:  Commercial backed Mortgage securities are in trouble as new delinquencies surge
(zerohedge)

CMBS Implosion: Unprecedented Surge In New Delinquencies Heralds Commercial Real Estate Disaster

Yesterday’s news that Saks Fifth Avenue parent Hudson’s Bay had missed its April payment on at least two commercial-mortgage backed securitiesprompted us to take a look at the current state of the CMBS market and, boy, was it ugly.

According to the latest remittance data compiled by Morgan Stanley, a record 66 loans totaling $1.0bn became newly delinquent in April, which is the greatest month-over-month change. In total, 324 loans with a total balance of $4.8bn are currently delinquent, which is also an all time high.

The resulting delinquency rate increased by 19bp month over month, to 1.31%, and the 1-year CAGR increased to 45.3%.

The 2015, 2014 and 2017 vintages increased the most by 48bp, 47bp and 37bp, respectively. The 2016 vintage was the only vintage that declined at -21bp MoM. At 3.39%, the 2014 vintage continues to have a meaningfully higher delinquency rate than the other vintages, with the 2015 vintage standing second-highest at 2.02%, followed by the 2013vintage at 1.52%. The 2016, 2012and 2010 vintages also stand above 1%,at 1.22%, 1.33% and 1.01%, respectively.

But what is far more troubling than the plain vanilla surge in delinquencies is the coming deluge of defaults. Recall that a CMBS loan becomes delinquent after it misses two consecutive payments. Loans that have missed just one month of interest are classified as “late but within grace period” or “late beyond grace period”. It is this measure that spiked 600bp MoM to ~8.5%, led by hotel, which rose 19% points to 21.6%, followed by retail, which increased 774bp,and multifamily, which was 308bp higher. Across vintages, ‘grace’ loans increased, ranging from a maximum 852bp for the 2012 vintage to a minimum of 416bp for the 2020 vintage.

Looking further up the delinquent pipeline, 134 loans totaling $2.4bn were newly transferred to special servicing in April. In total, 521 loans with a balance of $8.9bn are specially serviced. The resulting specially serviced rate increased by 62bp month over month, to 2.40%,and the 1-year CAGR increased to 63.1%. Every vintage experienced an increase in the special servicing rate, led by the 2016 vintage, which rose by 117bp. The 2010 vintage has the highest special servicing rate,at 10.5% (driven by negative selection as loans pay off).

Meanwhile, 922 loans totaling $14.1bn were added to the watchlist in April. In total,a record 3,316 loans with a record balance of $51.4bn are currently on the watchlist. The resulting watchlist rate increased by 261bp, to 13.89%,and the 1-year CAGR also increased to 31.6%. Every vintage experienced MoM increases in the watchlist rate, ranging from a minimum of 0.81% to a maximum of 5.62%. The 2010 vintage has the highest watchlist rate,at 31.03%, followed by the 2011 vintage at 21.13%

Conclusion: while the retail sector is a disaster with a barrage of , hotels are just as bad, while multifamily CMBS (i.e., rentals) are close behind.

In other words, while Carl Icahn has made like a bandit on his CMBX “big short 2.0” bet, something we discussed last month in “Jackpot: The “Big Short 2” Trade Has Absolutely Crushed It” and which Bloomberg picked up with a one month delay yesterday profiling the collapse of the infamous CMBX Series 6 BBB- tranche…

… the real story is that the default tidal wave has now spread to most other commercial real estate sectors with a record 6% in loans about to be delinquent in May once they fail to make an interest payment for two months in a row. Said otherwise, the CRE bubble that the nervous Fed had been warning about for so long, has now burst and the full extent of the collapse will become evident over the next 30 days.

end

we are preparing to shit shiva for J Crew as they are preparing to file for bankruptcy protection this weekend

(zerohedge)

 

J. Crew Preparing To File For Bankruptcy As Soon As This Weekend

Apparel company J. Crew may file for bankruptcy as soon as this weekend, according to CNBC, which notes that the privately held company is scrambling to secure $400 million in financing to fund operations after filing.

CNBC‘s sources, which spoke on condition of anonymity due to the disclosure of confidential information, say the plans are not yet finalized, and that the timing of the filing could change.

The New York-based retailer had already been struggling under a heavy debt load and sales challenges, as it suffered criticism that it fell out of touch with its once-loyal customers. In the past few years, the brand lost both its longtime design chief, Jenna Lyons, and famed retail executive Mickey Drexler.

Those challenges have been exacerbated by the coronavirus pandemic that has forced stores to shutter, throwing the retail industry into a state of disarray. –CNBC

The company currently operates 182 J. Crew retail stores and 140 Madewell stores aimed at a younger demographic, which was launched four years ago in the hopes of spinning it off in an IPO which could have helped surmount its crippling debt. The company faced pushback from creditors.

J Crew stunned Wall Street when it swung to a profit of $1.5 million for the fiscal year ended Feb. 1, compared with a $74.4 million loss a year earlier. Total revenues increased 2% to $2.54 billion, though gains were largely driven by the company’s Madewell denim-focused brand, while sales at J Crew have mostly languished.

According to Moody’s, J. Crew had roughly $2.5 billion in sales for its year ending Feb. 1, and an estimated $93 million in total liquidity as 2021 debt maturities approach. In 2011, the company was acquired by TPG Capital and Leonard Green & Partners for $3 billion.

The preppy retailers now-former CEO and longtime creative engine Mickey Drexler stepped aside in 2017 follow a debt swap that staved off a bankruptcy filing, and although his successors have at least managed to wring more growth out of Madewell, the leverage buyout that took the company private more than ten years ago left it with more debt than it can reasonably manage: A nearly $1.7 billion albatross.

Like every other US retailer, J Crew shut its stores in March along with most of its competitors. Sales have plunged, though some see green shoots in some preliminary foot-traffic data.

The company has laid off tens of thousands of workers, and it’s unclear how many of its stores will be operational when all of this is over.

When it became clear in March that the Madewell IPO wasn’t going to happen, J Crew started negotiating with a group of lenders as it scrambled to find capital to pay off a loan maturing later in 2020.

The company, which has been working with advisers from investment bank Lazard and law firm Weil Gotshal & Manges, has a $4 million payment due at the end of April which it says it cannot make.

The company restructured its debt outside of bankruptcy in 2017 in a controversial deal that swapped $500 million of bonds due in 2019 for new securities backed by the intellectual property behind the J.Crew brand. Its lenders include Anchorage Capital Group LLC and Blackstone Group Inc.’s GSO Capital Partners LP.

The company, which was founded in the early 1980s as a catalogue retailer, has long been synonymous with the preppy look in the US.

Of course, this is just the latest bad news for the commercial real estate market and, by extension, the CMBX market which has already been battered by the crisis, making one newly minted Florida billionaire even richer.

While J Crew is more of a specialized retailer, mall anchor tenants – Neiman Marcus, JC Penny –  have been hit especially hard by the outbreak, as malls are transformed into ghost towns as whether or not they can reopen after the crisis will depend entirely on the government. Neiman Marcus is reportedly also in the process of finalizing talks with lenders to allow its stores to continue operating as it prepares a bankruptcy filing. And JC Penney, which is also reportedly preparing to file, is in talks for $1 billion in bankruptcy financing.

But as one twitter wit joked, the company might want to consider updating its website.

Gaius Valerius Catullus@cryptocatullus

J Crew might want to update their site 😬

View image on Twitter
end

iv) Swamp commentaries)

The operation to nail Flynn was code named “OPERATION RAZOR”.  He was set up  by Strzok and Lisa Page.

They will go down with this

(zero hedge)

“Don’t Close RAZOR”: Flynn FBI Setup Continues To Unravel As Texts Reveal Strzok Went Off The Rails

After a US District Court Judge unsealed four pages of FBI emails and handwritten notes which provided the strongest evidence of a perjury trap, attorney and journalist @Techno_Fog has just connected two more damning dots.

According to a new filing in Flynn’s case, the FBI investigation into Trump’s former National Security Adviser was called “Crossfire Razor.”

Notably, on January 1, 2017, the FBI’s Washington DC field office recommended closing the case against Flynn after finding “no derogatory information” against him.

“The goal of the investigation was to determine whether [Flynn], associated with the Trump campaign, was directed and controlled by and/or coordinated activities with the Russian Federation in a manner which is a threat to the national security and/or possibly a violation of the Foreign Agents Registration Act,” reads an FBI memorandum.

“Following the initiation of captioned case, the [Crossfire Hurricane] team conducted a check of logical databases for any derogatory information on [Flynn],” it continues, concluding: “No derogatory information was identified in FBI holdings.”

Text messages sent by former FBI official Peter Strzok the same dayreveal his intent to continue his pursuit of Flynn.

Techno Fog@Techno_Fog

🚨🚨BREAKING

The operation that targeted Flynn: CROSSFIRE RAZOR

1/4/17: FBI field office found “No derogatory information” on Flynn and decided to close RAZOR.

1/4/17: FBI leadership (STRZOK) went off the rails and targeted Flynn: “Don’t close RAZOR”

View image on TwitterView image on Twitter

Techno Fog@Techno_Fog

FBI Washington Field Office Report:

FBI and US Govt (CIA?) databases showed “no derogatory information” on Flynn.

Flynn determined to be “no longer a viable candidate” as part of the Crossfire Hurricane case.

View image on TwitterView image on Twitter

Techno Fog@Techno_Fog

Peter Strzok texts to the FBI Case Manager handling the Crossfire Razor (Flynn) case.

Strzok: “If you haven’t closed RAZOR, don’t do so yet”

Strzok: “7th floor involved” (FBI Leadership)

(Possible use of Logan Act “violations” to keep investigation open)

View image on Twitter

To review, as Sara Carter detailed last night, the FBI emails and handwritten notes revealed that the retired three-star general was being targeted for prosecution according to Flynn’s attorney, Sidney Powell.

As we noted earlier Thursday:

***

In one of the emails dated Jan. 23, 2017, FBI lawyer Lisa Page, who at the time was having an affair with Strzok and who worked closely with him on the case discussed the charges the bureau would bring on Flynn before the actual interview at the White House took place. Those email exchanges were prepared for former FBI Deputy Director Andrew McCabe, who was fired by the DOJ for lying multiple times to investigators with DOJ Inspector General Michael Horowitz’s office.

Former FBI Director James Comey, who was fired by President Trump for his conduct, revealed during an interview with Nicolle Wallace last year that he sent the FBI agents to interview Flynn at the White House under circumstances he would have never done to another administration.

“I probably wouldn’t have done or maybe gotten away with in a more organized investigation, a more organized administration,” Comey said. “In the George W. Bush administration … or the Obama administration, two men that all of us, perhaps, have increased appreciation for over the last two years.”

In the Jan 23, email Page asks Strzok the day before he interviews Flynn at the White House:

“I have a question for you. Could the admonition re 1001 be given at the beginning at the interview? Or does it have to come following a statement which agents believe to be false? Does the policy speak to that? (I feel bad that I don’t know this but I don’t remember ever having to do this! Plus I’ve only charged it once in the context of lying to a federal probation officer). It seems to be if the former, then it would be an easy way to just casually slip that in.

“Of course as you know sir, federal law makes it a crime to…”

Strzok’s response:

I haven’t read the policy lately, but if I recall correctly, you can say it at any time. I’m 90 percent sure about that, but I can check in the am.

In the motion filed earlier this week, Powell stated “since August 2016 at the latest, partisan FBI and DOJ leaders conspired to destroy Mr. Flynn. These documents show in their own handwriting and emails that they intended either to create an offense they could prosecute or at least get him fired. Then came the incredible malfeasance of Mr. Van Grack’s and the SCO’s prosecution despite their knowledge there was no crime by Mr. Flynn.”

Attached to the email is handwritten notes regarding Flynn that are stunning on their face. It is lists of how the agents will guide him in an effort to get him to trip up on his answers during their questioning and what charges they could bring against him.

“If we get him to admit to breaking the Logan Act, give facts to DOJ & have them decide,” state the handwritten notes.

“Or if he initially lies, then we present him (not legible) & he admits it, document for DOJ, & let them decide how to address it.”

The next two points reveal that the agents were concerned about how their interview with Flynn would be perceived saying “if we’re seen as playing games, WH (White House) will be furious.”

“Protect our institution by not playing games,” the last point on the first half of the hand written notes state.

From the handwritten note:

Afterwards:

  • interview
  • I agreed yesterday that we shouldn’t show Flynn (redacted) if he didn’t admit
  • I thought @ it last night, I believe we should rethink this
  • What is (not legible) ? Truth/admission or to get him to lie, so we can prosecute him or get him fired?
  • we regularly show subjects evidence, with the goal of getting them to admit their wrongdoing
  • I don’t see how getting someone to admit their wrongdoing is going easy on him
  • If we get him to admit to breaking the Logan Act, give facts to DOJ & have them decide
  • Or if he initially lies, then we present him (not legible) & he admits it, document for DOJ, & let them decide how to address it
  • If we’re seen as playing games, WH will be furious
  • Protect our institution by not playing games

(Left column)

  • we have case on Flynn & Russians
  • Our goal is to (not legible)
  • Our goal is to determine if Mike Flynn is going to tell the truth or if he lies @ relationship w/ Russians
  • can quote (redacted)
  • Shouldn’t (redacted

Review (not legible) stand alone

It appears evident from an email from former FBI agent Strzok, who interviewed Flynn at the White House to then FBI General Counsel James Baker, who is no longer with the FBI and was himself under investigation for leaking alleged national security information to the media.

END

“I Don’t Need A Lecture”: Pelosi Praises Biden For His Response To Sexual Assault Allegations Despite Biden Not Responding

Authored by Jonathan Turley,

Speaker Nancy Pelosi went on CNN to praise former Vice President Joe Biden for his response to the sexual assault allegations by former Biden staffer Tara Reade.

Biden however has not personally responded to the allegations and continues to refuse to release his Senate documents being kept under key by the University of Delaware.

We previously disclosed the glaring disconnect in the positions of Democrats like Pelosi in prior demands that women “must be believed” when the allegations were directed by Justice Brett Kavanaugh.

Pelosi also supported Bill Clinton through his various allegations by multiple women ranging from sexual harassment to rape.

Pelosi told CNN:

Well, I have great sympathy for any women who brings forth an allegation; I’m a big strong supporter of the #MeToo movement. I think it’s made a great contribution to our country and I do support Joe Biden. I’m satisfied with how he has responded, I know him, I was proud to endorse him Monday, very proud to endorse him, so I’m satisfied with that.”

Pelosi was praising Biden for his response as even liberal media outlets are running editorials  and columns calling for Biden to respond rather than continue his silence.

More importantly, Pelosi is not calling upon Biden to release his official papers and the media is not pressing her on these points.

Once again, I have always maintained that women need to be heard and taken seriously in raising these allegations.  I have also objected to those who would toss aside due process and simply accept accusations without investigation. Notably, while most are remaining silent and refusing to respond to media inquiries, some Democrats are now adopting that approach for Biden and, rather than saying that Reade must be believed, they are now saying that she must be heard.

Biden supporter Alyssa Milano tweeted out “I hear and see you, Tara.”  She notably did not say “I believe you,” in sharp contrast with the Ford allegation. 

During the Kavanaugh hearing, some of us were slammed for not treating the Ford allegations as per se dispositive.  Now Pelosi is adopting the same position that accusers deserve to be heard and taken seriously but not categorically believed.

In the meantime, when Chris Hayes asked for a response from Biden on the sexual assault allegation, MSNBC viewers have called for him to be fired

The Hill

@thehill

trends after MSNBC host covers Biden sexual assault allegations http://hill.cm/a8WTr2g 

View image on Twitter

There is nothing more jarring in echo journalism than a dissonant note, even when asking for a simple direct response from a politician accused of rape.

However, when finally confronted on the story during her weekly press conference, Pelosi snapped “I don’t need a lecture.”

“I respect your question and I don’t need a lecture or a speech,” Pelosi said.

“I have complete respect for the whole #MeToo movement… there’s also due process Joe Biden is Joe Biden… There was never any record… I am so proud, the happiest day for me this week was to support Joe Biden for president of the United States.”

Peak hypocrisy?

end

Steele Admits Hillary Clinton, Susan Rice Knew About His Anti-Trump Research

Authored by John Solomon via JustTheNews.com,

The documents underlying his now infamous Russian dossier are long since destroyed, but Christopher Steele’s recollections of his political opposition research on President Trump nearly four years later are poised to create new heartburn for Democrats.

Steele recently testified in a British court that he believed both then-Democratic presidential nominee Hillary Clinton and then-Obama National Security Adviser Susan Rice were aware of his dossier research as it was going on in summer 2016.

The testimony makes his most direct link yet between his Russia collusion research and the top of the Clinton campaign and Obama White House.

Steele told a British court he believed he had been hired by the Fusion GPS firm owned by Glenn Simpson through the Democratic National Committee-linked law firm Perkins Coie to assist the Clinton campaign during the election, according to a transcript of the testimony.

“I presumed it was the Clinton campaign, and Glenn Simpson had indicated that. But I was not aware of the technicality of it being the DNC that was actually the client of Perkins Coie,” Steele testified in March under questioning from lawyers for Russian bankers suing over his research.

“You knew it was the leadership of the Clinton presidential campaign didn’t you?” a lawyer for the businessmen asked.

“I believed it was the campaign. Yes,” he answered.

“The leadership of the Clinton campaign?” he was asked.

“Fine, the leadership of the campaign,” Steele conceded.

The lawyer persisted.

“You also understood that Hillary Clinton herself was aware of what you were doing?” the lawyer asked.

“I think Glenn had mentioned it, but I wasn’t clear,” Steele answered.

Then Steele was confronted with what lawyers said were notes he took at a meeting with the FBI in 2016 in which he purported to tell agents that Clinton was aware of his research. The lawyers read from those notes during the court proceedings.

The notes, according to the transcript, read:

“We explained that Glenn Simpson/GPS Fusion was our commissioner but the ultimate client were the leadership of the Clinton presidential campaign and that we understood the candidate herself was aware of the reporting at least, if not us.”

The lawyers prodded: “It’s your note, so we assume it’s accurate?”

“Yes,” Steele answered during the March 17 testimony.

You can read that testimony here:

Messages seeking comment that were left Tuesday at Hillary Clinton’s office and the Clinton family library were not returned.

A day later in additional testimony, Steele was asked how he came to present some of his dossier findings to the U.S. State Department during an October 2016 meeting with then-Deputy Assistant Secretary of State Kathleen Kavalec.

The former British MI6 agent turned private intelligence investigator said his meeting was set up by State officials Jonathan Winer and Victoria Nuland after longtime Clinton adviser and friend Strobe Talbott had reached out to him.

“The meeting was set up by a State Department official called John Winer,” Steele explained.

“At your request?” the lawyers asked.

“No, at his request, his suggestion. He invited us into meet, as I understood it, at her request, Assistant Secretary of State Nuland,” Steele answered.

The lawyers asked whether Talbott opened the door in October.

“I think Strobe Talbott had gotten in touch with us much earlier than that,” Steele answered.

“I remember taking a phone call from him, your lordship, earlier in the summer in which he said that he was aware that I had — he spoke in fairly cryptic terms — but he was aware that we had material of relevance to the U.S. election.

“A little bit of background, if I may, your lordship on that,” Steele added.

“Both National Security Advisor at the time Susan Rice and Åssistant Secretary of State Victoria Nuland, who were the key policymakers on Russia, had been colleagues of Mr. Talbott. And I had, although he didn’t state it explicitly, one or either or both of them had briefed him on the work we had been doing.”

You can read that part of the testimony here.

Winer has acknowledged having contact with Steele in the summer of 2016, and Nuland has also acknowledged she was aware State officials met with the British operative. Erin Pelton, a spokeswoman for Rice, told Just the News on Tuesday that Steele’s claim was “utterly and completely false.”

Steele’s testimony provides other insights key to the ongoing investigation of the investigators in the Russia collusion probe.

Steele often disputed negative or contradictory accounts offered by other Russia case figures about his work, suggesting Kavalec’s notes of his meeting contained some “fairly odd things” and that Justice Department Inspector General Michael Horowitz’s account of an interview with him was at times inaccurate.

“All I know is they got some of it wrong,” Steele said of the IG report.

As for senior Justice Department official Bruce Ohr’s account of one of their meetings, Steele added:

“I think Bruce Ohr has misreported it … or misremembered it.”

He also revealed that one piece of anti-Trump information he obtained in 2016 — a since-debunked claim that Trump secretly may have communicated with Russia through a computer server at the Alfa Bank — didn’t come from a Russian intelligence source but rather was brought to his attention by one of the lawyers at Perkins Coie.

And Steele divulged he paid some of his sources of information as much as $3,000 to $5,000 a month, prompting the lawyers for the plaintiffs to ask whether that might have compromised some of the information he got.

“So they had a financial incentive to feed you stuff that was interesting, right?” a lawyer asked.

“Yes, that is true,” Steele answered. “But they were paid also to do other project work.” Steele added he didn’t think his sources would mislead him because they could be terminated if they did so.

Steele also told the court that most of his emails and other documents related to the dossier were destroyed by early January 2017 after he completed the project.

The British lawsuit is being brought under the Data Protection Act of 1998 by three international businessmen from Russia, arising out of the processing of their personal data in the Steele dossier.

end

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

Two weeks ago, someone leaked a report that Gilead’s remdesivir was successful in treating Covid-19 cases.  We noted that this was old news; reports that doctors were successfully using remdesivir, and hydroxychloroquine, had circulated for months.  If fact, there was a run on tonic water because it contains quinine.  We further opined that the Gilead lead was part of the expiry manipulation.

The remdesivir leak worked so well to aid and abet the expiry manipulation, it appears that someone decided to use it again – this time for the manipulation to embellish April performance – and to obfuscate a horrid Q1 GDP (-4.8%) report.

DJT didn’t pull hydroxychloroquine out of thin air.  Over two months ago, a family member that has been taking the drug for years was told to get her prescription filled for 3 months because there was a run on the drug.  Per reports, doctors were prescribing it for family members even though they had no need for it.

US doctors claim that Trump’s controversial hydroxychloroquine drug DOES help 91% of coronavirus patients and argue we should not wait for ‘controlled trials’

https://www.dailymail.co.uk/health/article-8266737/Doctors-group-claims-hydroxychloroquine-helps-91-coronavirus-patients.html

Gilead says early results of coronavirus drug trial show improvement with shorter remdesivir treatment – at least 50% of patients treated with a five-day dosage of remdesivir improved…

https://www.cnbc.com/2020/04/29/gilead-reports-positive-data-on-remdesivir-coronavirus-drug-trial.html

Dr. Fauci Praises New Tests on Expensive Gilead Drug Remdesivir but Sneered at Less Expensive and More Effective Hydroxychloroquine!  https://www.thegatewaypundit.com/2020/04/stunning-reported-dr-fauci-praises-new-tests-expensive-gilead-drug-remdesivir-sneared-less-expensive-effective-hydroxychloroquine/

Stocks soar after positive Gilead news on potential coronavirus treatment, Dow up 500 points

https://www.cnbc.com/2020/04/28/stock-market-futures-open-to-close-news.html

Gilead stock pops 8% after report says coronavirus drug trial shows encouraging early results

PUBLISHED THU, APR 16 2020 5:10 PM ED

https://www.cnbc.com/2020/04/16/gilead-stock-surges-after-report-says-coronavirus-drug-trial-shows-encouraging-early-results.html

The manipulation to game April performance pushed the S&P 500 Index well above it 61.8% Fibonacci Retracement level (2934.49) at midday.  In technical theory, this implies that the rally from the low has changed from a corrective rally to a new rally structure.

As we noted in our previous two missives, traders wanted to be long into the release of FOMC Communiques.  This pattern was a big reason for the rally in ESMs that commenced on Tuesday night.

After the FOMC Communique was released, and it was dovish as expected, ESMs declined.

Fed pledges to keep rates near zero until full employment, inflation come back

“The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals…and will use its tools and act as appropriate to support the economy.”…   https://cnbc.com/id/106512372

The Fed rightfully refrained from issuing forward guidance on the US economy.

The decline ended when the Powell press conference began.  This is also an ingrained trading pattern.  Powell did not disappoint.  The Fed Chair Powell asserted that the economy will likely need more support from the Fed for the recovery to be ‘robust’.  ESMs and stocks rallied.

Powell Press Conference Highlights

  • The April unemployment rate may show ‘double digits’
  • Economic activity in Q2 will fall at an unprecedented rate
  • There are medium-term economic risks; medium term means next year or so
  • The Fed cannot lend to insolvent companies
  • Corporate credit facilities are being finalized
  • The Fed is close to issuing new term sheet on Main St. facility (helicopter money)
  • The Fed is mindful of damage done to the productive capability of the economy
  • Reopening the economy will boost consumption but not back to prior level
  • It will take time to get back to normal employment
  • The Fed will not be in a hurry to halt is promiscuous credit schemes and QE
  • Economic forecasts are “unusually uncertain today
  • Hard to be precise when the economy will rebound

Powell begged Congress for more fiscal spending, which implies the trillions spent to date are inadequate.

This is the time to use the great fiscal power of the United States to do what we can to support the economy and try to get through this with as little damage to the longer-run productive capacity of the economy as possible… This is not a time to act on federal debt concerns…” – Jerome Powell

Once again, people aggressively bought ESMs and stocks because the economy will be so bad – for a year or so – that the Fed must effectively nationalize bond, credit and money markets!!!

ESMs and stocks peaked at 15:28 ET.  They then slid into the close.

Trump administration asks intelligence agencies to find out whether China, WHO hid info on coronavirus pandemic – A specific “tasking” seeking information about the outbreak’s early days was sent last week to the Defense Intelligence Agency. The CIA got similar instructions..

https://www.nbcnews.com/politics/national-security/trump-administration-asks-intelligence-agencies-find-out-whether-china-who-n1194451

BEA Reports that First Quarter 2020 GDP Contracted at a -4.79% Rate [comprehensive review]

http://www.consumerindexes.com/2020-04-29_commentary.html

@HowleyReporter: BUSTED: One of the authors of the “study” saying Hydroxychloroquine doesn’t work at VA hospitals got research grant from Gilead, making a competitor drug.  For Hydroxychloroquine plus azithromycin, deaths not substantial enough to rule out other factors.

https://nationalfile.com/busted-media-uses-va-study-to-launch-easily-debunked-attack-on-hydroxychloroquine/

COVID-19: Seven facts that tell us Illinoisans can and must get back to work

Nearly 1,950 Illinoisans have died of the virus as of April 26th. Of those victims, 85 percent of them were age 60 or older… Nearly 35 percent of COVID-19 victims were retirement home residents Cook and the collar counties have the vast majority of cases and deaths… Soon nearly a million Illinoisans will be unemployed… Recessions and depressions cause deaths of their own…

https://wirepoints.org/covid-19-seven-facts-that-tell-us-illinoisans-can-and-must-get-back-to-work-wirepoints/

NYT: ‘Life Has to Go On’: How Sweden Has Faced the Virus without a Lockdown

The country was an outlier in Europe, trusting its people to voluntarily follow the protocols. Many haven’t, but it does not seem to have hurt them Gatherings of more than 50 people are banned. Museums have closed and sporting events have been canceled. At the end of March, the authorities banned visits to nursing homes.  That’s roughly it…

[With layoffs hitting the MSM, an attitude change about shutdowns and virtually house arrest!]

https://www.nytimes.com/2020/04/28/world/europe/sweden-coronavirus-herd-immunity.html

GOP senators warn jobless benefit change will ‘push unemployment higher,’ as many paid more not to work – “Under the current setup, some people’s wages could actually be temporarily increased by 150 percent by leaving the workforce.  This is a perverse incentive which needs to be fixed.”  Sen. Rick Scott also told Fox news that his office is hearing from small businesses across the nation “who want to re-open their doors, but can’t because their employees are getting paid more by the federal government through the CARES Act to not work than they would receive if they were back on the job.”…

https://www.foxnews.com/politics/gop-senators-warn-jobless-benefit-change-will-push-unemployment-higher-as-many-paid-more-not-to-work

Depending on the state and number of dependents, unemployment benefits are now between $900 and $1.3k (3 or more dependents) per week – and free of FICA and Medicare taxes.

Senators want Cyber Command and CISA to do more to deter coronavirus-focused hackers

The senators recommend that the unit “[e]valuate further necessary action to defend forward in order to detect and deter attempts to intrude, exploit, and interfere with the healthcare, public health, and research sectors.”…  https://www.cyberscoop.com/coronavirus-cisa-cyber-command-senate-letter/

FCC Scrutinizes Four Chinese Government-Controlled Telecom Entities

Agency Issues Show Cause Orders to China Telecom Americas, China Unicom Americas, Pacific Networks, and ComNet Demanding Explanation of Why the FCC Should Not Initiate Proceedings to Revoke their Authorizations… https://www.fcc.gov/document/fcc-scrutinizes-four-chinese-government-controlled-telecom-entities

White House aides torn over trade hawk’s proposal as President Trump weighs action on China

Trump adviser Peter Navarro says China “spawned” pandemic, but Mnuchin…and Trump’s son-in-law and senior adviser, Jared Kushner… caution about Navarro’s push to do this executive order at this time… https://www.washingtonpost.com/business/2020/04/29/white-house-aides-torn-over-trade-hawks-proposal-president-trump-weighs-action-china/

Once again it’s Jared and some ex-Goldman guy advocating for globalism and China – and working against Trump’s base.  You’d think that after 3+ years as president, a guy would figure out that he is NOT still running a family-centric business!

Marriage rates in the US plunge to the LOWEST on record with only 6.5 unions formed for every 1,000 people as couples opt to cohabitate and save money instead – ‘Millennials are in peak marriage years, their 20s and 30s, and it’s still dropping,’…

https://www.dailymail.co.uk/news/article-8269309/US-marriage-rate-plunges-lowest-level-history.html

Demographics is destiny [sic]!”  Who is going to pay for our Medicare and Social Security?

WSJ: Joe Grogan to Resign as Top White House Domestic Policy Adviser – The head of the president’s Domestic Policy Council has played a key role in the coronavirus response

    “He previously served as a lobbyist for the drug company Gilead Sciences Inc.”…

https://www.wsj.com/articles/joe-grogan-to-resign-as-top-white-house-domestic-policy-adviser-11588204403

Emails Show Extensive Communications between Senior Defense Official and Columnist Who Published Leaked Info on Flynn Calls with Russian Ambassador

    Judicial Watch released 143 pages of new records today from the U.S. Department of Defense, showing extensive communications between the Pentagon’s Director of the Office of Net Assessment James Baker and Washington Post reporter David Ignatius…“These records confirm that Mr. Baker was an anonymous source for Mr. Ignatius,” said Judicial Watch President Tom Fitton. “Mr. Baker should be directly questioned about any and all leaks to his friend at the Washington Post.”…

https://www.judicialwatch.org/press-releases/flynn-dodofficial-columnist/

Solomon: FBI notes detail effort to catch Flynn in lie to ‘get him fired’ as Trump adviser

‘What is our goal? Truth/Admission or to get him to lie, so we can prosecute him or get him fired?’

Handwritten FBI notes from the earliest days of the Trump administration detail a tortured debate among officials on whether to use a bureau interview of then-National Security Adviser Michael Flynn to get him to lie so he could be prosecuted or fired. [“Truth, justice and the American way?”]

    The notes and other emails have been provided belatedly to Flynn’s lawyers under seal and are expected to be release by court order to the public by week’s end… 

https://justthenews.com/accountability/russia-and-ukraine-scandals/breaking-fbi-notes-detail-effort-catch-flynn-lie-get-him#.XqoA5KxnaQU.twitter

John Solomon @jsolomonReports: BREAKING: Officials confirm that the handwritten notes about catching Flynn in lie belong to Former FBI Counterintelligence Chief William Priestap and more explosive documents to be released in next few days.

Fox’s Tucker Carlson: “If they can do this to the National Security Adviser, what chance do the rest of us have if we find ourselves crossways with the FBI?”

The WaPo Editorial Board slams the MSM and Dems over ignoring the Biden allegations:

Democrats react to Biden assault allegation with pleas for explanation — or with silence – Biden has not addressed the accusations and has not been asked about them in any of the several television interviews he has done since Reade’s accusations gained significant public attention.  Biden has declined a request for an interview. He also has declined to release his Senate papers, which are being held at the University of Delaware and could shed light on personnel issues. His campaign has forcefully denied Reade’s claims… The Washington Post reached out to numerous Biden supporters, top endorsers and potential running mates. Many chose neither to defend him nor to call on him to further explain

https://www.washingtonpost.com/politics/democrats-react-to-biden-accusations-with-pleas-for-an-explanation–or-silence/2020/04/28/b07ff9da-8967-11ea-ac8a-fe9b8088e101_story.html

What Biden’s possible running mates said about Kavanaugh case and what they are saying about Tara Reade’s claims – Dem VP shortlisters condemned Kavanaugh: Here’s their response to Biden accusation…    https://www.foxnews.com/politics/vp-kavanaugh-biden-accusation

@DonaldJTrumpJr: OMG! Looks like Biden fell asleep during Hillary’s rant endorsement. He’s truly the gift that keeps on giving.   https://twitter.com/DonaldJTrumpJr/status/1255472801638690819

De Blasio Threatens “Jewish Community” With Mass Arrests after Funeral Gathering

https://www.thegatewaypundit.com/2020/04/de-blasio-threatens-jewish-community-arrests-funeral-gathering/

Mayor Bill de Blasio @NYCMayor: My message to the Jewish community, and all communities, is this simple: the time for warnings has passed. I have instructed the NYPD to proceed immediately to summons or even arrest those who gather in large groups. This is about stopping this disease and saving lives. Period.  8:35 PM · Apr 28, 2020

NYPD Union President Calls de Blasio ‘An Idiot’ for Asking Officers to ‘Violate People’s Rights’

The grand rabbi from Williamsburg passed awayThe community followed all guidance & wore masks. The Shomrim was there giving out masks if they saw somebody on the street without a mask. They did an excellent job. The only issue is your incompetent and targeted people of faith…”

https://saraacarter.com/exclusive-nypd-union-president-calls-de-blasio-an-idiot-for-asking-officers-to-violate-peoples-rights/

Mayor Bill de Blasio @NYCMayor April 23, 2020To the Muslim New Yorkers beginning their celebrations tonight who need halal meals, we have them across our 400+ grab and go meal sites, and are bringing hundreds of thousands more to the 32 sites most frequented by our Muslim communities. Go to http://nyc.gov/getfood  for more.

Woman Who Blamed Trump after Giving Her Husband Fish-Tank Cleaner Now Under Investigation for Murder – She had a troubling relationship with her husband that included a previous domestic assault charge… “What bothers me about this is that Gary was a very intelligent man, a retired [mechanical] engineer who designed systems for John Deere…”…

https://www.nationalreview.com/news/woman-who-blamed-trump-after-giving-her-husband-fish-tank-cleaner-now-under-investigation-for-murder/

Politico Quietly Admits Their ‘Trump Owes China Millions’ Article Was Fake News with Midnight Correction   https://truepundit.com/politico-quietly-admits-their-trump-owes-china-millions-article-was-fake-news-with-midnight-correction/

Belated kudos to NFL Commissioner Roger Goodell for staging a terrific NFL Draft under tough circumstances – and for ignoring the pearl-clutchers and virtue signalers in the MSM that wanted the NFL Draft delayed.  PS – Goodell said he will forfeit his $40m salary due to NFL staff furloughs.

Well that is all for today

I will see you FRIDAY night.

 

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