MAY 26/OUR USUAL AND CUSTOMARY MONTHLY RAID ON GOLD/SILVER ON COMEX OPTIONS EXPIRY TODAY//GOLD DOWN $23.05 YO $1712.20//SILVER DOWN 9 CENTS TO $17.14//CORONAVIRUS UPDATES FROM SATURDAY THROUGH TO TODAY//HUGE PROTESTS IN HONG KONG//COMMENTARIES ON THE HONG KONG SITUATION//TRUMP CONTEMPLATING TRANSACTION CONTROLS ON CHINESE OFFICIALS FROM THE MAINLAND ON THE HONG KONG CRACKDOWN//DEUTSCHE BANK HAS ASKED TOP MANAGERS TO TAKE ZERO SALARY THIS MONTH AS FINANCES TIGHTEN//ECB IS PREPARED TO DO QE WITHOUT THE BUNDESBANK: THAT SHOULD BE INTERESTING//HERTZ FINALLY GOES INTO RECEIVERSHIP//MORE SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1712.20  DOWN $23.05   The quote is London spot price

 

 

 

 

 

Silver:$17.14  DOWN  9 CENTS (London spot closing price

 

 

OTC/LBMA OPTIONS EXPIRY FRIDAY MAY 29

 

The reason for the raid today is the comex expiry IS TODAY.

Expect gold/silver to be subdued in price until after first day notice.

Closing access prices:  London spot

 

 

i)Gold : $1709.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.11//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

MAY COMEX GOLD:  XXX

 

JUNE GOLD:  $1712.00  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $0.//PREMIUMS WENT UP AGAIN

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:                          $17.58//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      44 CENTS PER OZ//

 

 

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: 0

none issued

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 0 NOTICE(S) FOR nil OZ (0 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  10262 NOTICES FOR 1026200 OZ  (31.912 TONNES)

 

 

SILVER

 

FOR MAY

 

 

9 NOTICE(S) FILED TODAY FOR  45,000  OZ/

total number of notices filed so far this month: 8919 for 44,595,000 oz

 

BITCOIN MORNING QUOTE  $8860 DOWN 37

 

BITCOIN AFTERNOON QUOTE.: $9169 UP 103

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $23.05 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

 

NO CHANGES IN GOLD INVENTORY AT THE GLD:

 

GLD: 1,116.71 TONNES OF GOLD//

 

WITH SILVER DOWN 9 CENTS TODAY: AND WITH NO SILVER AROUND

NO CHANGES IN SILVER INVENTORY AT THE SLV///

RESTING SLV INVENTORY TONIGHT:

 

SLV: 455.817  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

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IN SILVER THE COMEX OI ROSE  BY A STRONG SIZED 1252 CONTRACTS FROM 155,485 UP TO 156,737 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH  OUR VERY LARGE 22 CENT GAIN 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, ACCOMPANYING  A SMALL DECREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2571 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUMONGOUS 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:  MAY: 0 AND JULY: 1186  AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1186 CONTRACTS. WITH THE TRANSFER OF 1120 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 1186 EFP CONTRACTS TRANSLATES INTO 5.93 MILLION OZ  ACCOMPANYING:

1.THE 22 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.240 MILLION OZ INITIALLY STANDING FOR MAY

 

FRIDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 22 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY AMOUNT OF SILVER LONGS FROM THEIR POSITIONS. THE SMALL GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL LOSS IN SILVER OZ STANDING FOR MAY,3) CONSIDERABLE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 2438 CONTRACTS OR 12.19 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

 

 

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

13,219 CONTRACTS (FOR 17 TRADING DAYS TOTAL 13,219 CONTRACTS) OR 66.070 MILLION OZ: (AVERAGE PER DAY: 777 CONTRACTS OR 3.887 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 66.07 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 9.43% 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:          1,054.92 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                               95.355 MILLION OZ.  (EX. FOR PHYSICALS BECOMING A LOT LESS)

MAY EFP SO FAR:                   66.07 MILLION OZ

EXCHANGE FOR PHYSICAL ISSUANCE FOR THE PAST 30 DAYS 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 STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1252, WITH OUR CONSIDERABLE 22 CENT GAIN IN SILVER PRICING AT THE COMEX ///FRIDAY THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1186 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:  2438 CONTRACTS (WITH OUR 22 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1186 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 1252 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A STRONG 22 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.23 // FRIDAY’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: 9 NOTICE(S) FOR  45,000 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  45.240 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 3071 CONTRACTS TO 527,723 AND FURTHER FORM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL SIZED LOSS OF COMEX OI OCCURRED DESPITEOUR STRONG COMEX GAIN IN PRICE  OF $13.05 /// COMEX GOLD TRADING// FRIDAY// WE  HAD STRONG BANKER SHORT COVERING ,COMMENCEMENT OF SPREADER COMEX GOLD LIQUIDATION, A SMALL SIZED DECREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A HUGE  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR LARGE GAIN IN THE PAPER PRICE OF GOLD.

WE HAD A VOLUME OF 0  4 -GC CONTRACTS//OPEN INTEREST  10

 

WE GAINED A STRONG SIZED 2836 CONTRACTS  (8.821 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 5907 CONTRACTS:

CONTRACT. MAY: 0, AND JUNE 5230.; AUG 677 AND ALL OTHER MONTHS ZERO//TOTAL: 5907.  The NEW COMEX OI for the gold complex rests at 527,723. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A  STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2836 CONTRACTS: 3071 CONTRACTS DECREASED AT THE COMEX (MOSTLY FROM SPREADER LIQUIDATION) AND 5907 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2836 CONTRACTS OR 8.821 TONNES. FRIDAY, WE HAD A GAIN OF $13.05 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A VERY STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 18.821 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WEE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $13.05).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

4 GC VOLUME: 0  // open interest 10 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A HUGE SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (5907) ACCOMPANYING THE SMALL SIZED LOSS IN COMEX OI  (3071 OI): TOTAL GAIN IN THE TWO EXCHANGES:  2836 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)A SMALL DECREASE IN OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT MAY MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI LOSS,5) COMMENCEMENT OF GOLD COMEX SPREADER LIQUIDATION  AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//FRIDAY//$13.05

 

SPREADING OPERATIONS

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO GOLD…..

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 SILVER AS THEY NOW BEGIN TO MORPH INTO GOLD AS WE HEAD TOWARDS THE NEW FRONT MONTH WILL BE JUNE.

 

 

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

 

MODUS OPERANDI OF THE CORRUPT BANKERS AS TO HOW THEY HANDLE THEIR SPREAD OPEN INTERESTS:

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX SILVER OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF MAY HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF JUNE FOR GOLD:

 

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

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 59,356 CONTRACTS OR 5,935,600 oz OR 184.62 TONNES (17 TRADING DAYS AND THUS AVERAGING: 3491 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAY(S) IN  TONNES: 184.62 TONNES

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

THUS EFP TRANSFERS REPRESENTS 184.62/3550 x 100% TONNES =5.20% 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   2750.97  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)

MAY TOTAL EFP ISSUANCE:                     184.62 TONNES (EFP ISSUANCE STILL LOW// PREMIUM COST TO THE BANKERS IS HUGE..SO ISSUANCE IS 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 STRONG SIZED 1252 CONTRACTS FROM 155,485 UP TO 156,737 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) CONSIDERABLE BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A TINY DECREASE IN SILVER OZ STANDING AT THE COMEX FOR MAY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 1186 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: 0 JULY: 1186 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1186 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 1252 CONTRACTS TO THE 1186 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  STRONG GAIN OF 2438 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 8.8521 MILLION  OZ!!! OCCURRED WITH THE 22 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 22 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A STRONG SIZED 1186 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)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 28.58 POINTS OR 1.01%  //Hang Sang CLOSED UP 432.42 POINTS OR 2.55%   /The Nikkei closed UP 529.52 POINTS OR 2.55%//Australia’s all ordinaires CLOSED UP 2.79%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1302 /Oil UP TO 34.03 dollars per barrel for WTI and 36.05 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1302 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1411 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST  FELL BY A SMALL SIZED 3071 CONTRACTS TO 527,723 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 CONSIDERABLE GAIN OF $13.05 IN GOLD PRICING /FRIDAY’S COMEX TRADING//). WE ALSO HAD A VERY STRONG EFP ISSUANCE (5907 CONTRACTS),.  THUS WE HAD 1) STRONG BANKER SHORT COVERING AT THE COMEX AND 2)   ZERO  LONG LIQUIDATION AND 3)  ANOTHER DECREASE IN GOLD OZ STANDING AT THE COMEX//MAY DELIVERY MONTH , THE COMMENCEMENT OF SPREADER LIQUIDATION, AND A SMALL COMEX OI LOSS//  …  AS WE ENGINEERED A STRONG GAIN ON TWO EXCHANGES OF 2836 CONTRACTS WITH GOLD’S RISE. DUE TO THE PREMIUM ON THE FUTURE GOLD TO THE SPOT GOLD HAS DISAPPEARED, THE CROOKS DO NOT HAVE THE HUGE EXPENSE CARRYING EXCHANGE FOR PHYSICALS AND THUS THEIR RISE IN USAGE.

AND THE USAGE OF THESE FICTITIOUS 4 GC CONTRACTS GO DOWN TO NIL USAGE.

WE AGAIN HAD 0    4 -GC VOLUME//open interest remains at 10

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF APRIL..  THE CME REPORTS THAT THE BANKERS ISSUED A STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 5907 EFP CONTRACTS WERE ISSUED:

 FEB: 0; MARCH 00 AND APRIL: 0, MAY: 0  JUNE : 5230 AND 677 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 5907 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:  2438 TOTAL CONTRACTS IN THAT 5907 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 3071 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A HUGE AMOUNT OF EXCHANGE FOR PHYSICALS WITH CONSIDERABLE BANKER SHORT COVERING, COMMENCEMENT OF SPREADER LIQUIDATION ACCOMPANYING A TINY DECREASE IN COMEX OI  AND A STRONG DECREASE IN GOLD  TONNAGE STANDING FOR DELIVERY (SEE CALCULATIONS BELOW)… ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A CONSIDERABLE RISE  IN PRICE

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE BY $13.05)AND, THEY WERE  UNSUCCESSFUL IN FLEECING ANY LONGS, AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A CONSIDERABLE 10.587 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 2836 CONTRACTS OR 283,600 OZ OR 8.821 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:  527,723 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 52.77 MILLION OZ/32,150 OZ PER TONNE =  1641 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1641/2200 OR 74.60% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 445,072 contracts//volume higher than normal//SPREADERS LIQUIDATION

CONFIRMED COMEX VOL. FOR YESTERDAY272,155 contracts// volume still very low

MAY 26 /2020

MAY GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
11,992.85 oz
HSBC ENHANCED
Deposits to the Dealer Inventory in oz 305,455.733 oz

Brinks

 

 

 

Deposits to the Customer Inventory, in oz  

503,359.600

OZ

BRINKS

HSBC ENHANCED

 

 

 

No of oz served (contracts) today
0 notice(s)
 nil OZ
(0 TONNES)
No of oz to be served (notices)
5 contracts
(500 oz)
0.0155 TONNES
Total monthly oz gold served (contracts) so far this month
10,262
notices
1,026,200 OZ
31.919 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposits into the dealer

I) Into Brinks: 303,455.733 oz

 

 

 

total dealer deposits:  305,455.733 oz

 

total dealer withdrawals: nil oz

we had 2 deposits into the customer account

 

i) HSBC ENHANCED: 111,606.000 oz  ????  400  oz bars exact weight?? what a fraud

ii) Brinks: 391,753.600 oz

 

 

 

 

 

total deposits: 503,359.600    oz

 

 

we had 1 gold withdrawals from the customer account:

 

i) Out of  (HSBC enhanced)..  11,992.85 oz

 

 

 

 

 

 

total gold withdrawals;  11,992.85   oz

We had 1  kilobar transactions  +

 

We had 0  4 KC bar volume transactions/10 contracts oi

 

 

 

 

ADJUSTMENTS: 2 //    

 

customer account to dealer//JPM  and  BRINKS

i)  9,645.300 oz 30  kilobars//JPM

AND

II) BRINKS:  105,517.45 OZ

 

 

 

 

 

The front month of May registered a total of 5 oi contracts for a LOSS of 440 contracts. We had 440 notices filed upon yesterday so we LOST 0 contracts or an additional NIL oz will stand as these guys refused to morph into London based forwards and thus negated a fiat bonus.  There is basically no gold to be found over here as well as London.

The next delivery month after May is the huge delivery month of June.  Here June saw a LOSS OF 33,482 contracts DOWN to 167,816 contracts. July had a GAIN of 60 OI contracts  and thus 638 contracts  outstanding.  Next comes August another strong delivery month and here the OI ROSE by 26,657 contracts up to 246,798 contracts.

June is not falling in OI fast enough.  It looks like we are going to have another dilly amount of gold oz standing for June. We have 3 more reading days before first day notice Friday, May 29.2020

 

 

We had 0 notices filed today for 00 oz

 

FOR THE  MAY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the MAY /2020. contract month, we take the total number of notices filed so far for the month (10,262) x 100 oz , to which we add the difference between the open interest for the front month of  May. (xx CONTRACTS ) minus the number of notices served upon today (0 x 100 oz per contract) equals 1,026,700 OZ OR 31.934 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 (10,262)x 100 oz + (xx OI) for the front month minus the number of notices served upon today (0) x 100 oz which equals 1,026,700 oz standing OR 31.934 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.

We lost 70 contracts or an additional 7,000 oz will seek out metal on the side of the pond as no gold could be found over here.

 

 

NEW PLEDGED GOLD:  BRINKS

3027.500 OZ  REMOVED TO THE PLEDGED ACCOUNT JAN 10.2020/Brinks//Manfra .553 tonnes removed may 26

144,088.952 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 TONNES

322,144.443 oz PLEDGED  MARCH 2020  JPMORGAN:  10.020 TONNES

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

19,290.600 oz Pledged May 8/2020   INT DELAWARE:  .600 TONNES

 

 

TOTAL PLEDGED GOLD NOW IN EFFECT:  528,072.303  OZ OR 16.425  TONNES

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 264.20 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 31.934 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  9,021,943.550 oz or 280.62  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)
d) pledged gold at Manfra:  DELETED TODAY MAY 26.2020
e) pledged gold at int.Del.    19,290.600 oz  which cannot be settled:   (.600 tonnes)
total weight of pledged:  528,072.303 oz or 16.425 tonnes
thus:
registered gold that can be used to settle upon: 8,490,387.12  (264.20 tonnes)
true registered gold  (total registered – pledged tonnes  8,490,387.12 (264.20 tonnes)
total eligible gold:  17,022,136.67 oz (529.46 tonnes)

total registered, pledged  and eligible (customer) gold;   26,044,080.226 oz 810.08 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   127.05 tonnes

total gold net of 4 GC:  683.03 tonnes

 

end

 

I have compiled  data with respect to registered (or dealer) gold taken on first day notice for each of the past 24 months

The data begins on first day notice for the May month taken on the last day of April 2018. and it continues to present day.  Thus 24 data entry points.

 

I then took, how many deliveries were recorded by the CME for each and every month.  I also included for reference the price of gold on first day notice.

 

The first graph is a logarithmic  graph and the second graph, linear.

You can see the huge explosion of registered gold at the comex along with deliveries.  Gold owners are very clear people.  They would know full well that

the gold at the comex is unallocated and that they would not be stupid enough to keep their gold at the comex especially in the registered category once deliveries are asked upon. If physical gold was present it would be have removed from the comex… It shows there is no gold at the comex.  They are just trading in sticky paper.

 

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

END

MAY 26/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 1252 CONTRACTS FROM 155,485 UP TO 156,737(AND CLOSER 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) . THE STRONG OI COMEX GAIN TODAY OCCURRED WITH OUR VERY CONSIDERABLE 22 CENT GAIN IN PRICING//FRIDAY. WE GAINED A TOTAL OF 2438 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL DECREASE IN SILVER OZ STANDING AT THE COMEX, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) ZERO LONG LIQUIDATION,5) STRONG COMEX GAIN IN OI AND ALL OF THIS OCCURRED WITH OUR STRONG 22 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MAY

THE FRONT DELIVERY OF MAY SAW  138 OPEN INTEREST CONTRACTS STANDING  AND THUS WE HAD A LOSS OF 10 CONTRACTS.  We had 0 notices filed yesterday so we LOST 10 contracts or an additional 50,000 oz will NOT stand at the comex as these guys morphed into London based forwards and thus they accepted  a fiat bonus for their efforts.. It sure looks like the boys cannot find any silver over on this side of the pond.

 

 

AFTER MAY WE HAVE THE NON ACTIVE MONTH OF JUNE.  HERE JUNE SAW A GAIN OF 5 CONTRACTS RESTING AT 444.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI gained 411 CONTRACTS up TO 117,048 CONTRACTS

 

 

We, today, had  9 notice(s) FILED  for 45,000 OZ for the APRIL, 2020 COMEX contract for silver

 

MAY 26/2020

MAY SILVER COMEX CONTRACT MONTH

 

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 613,543.100  oz
Brinks
Delaware

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
583,555.800 oz
Loomis
No of oz served today (contracts)
9
CONTRACT(S)
(45,000 OZ)
No of oz to be served (notices)
129 contracts
 545,000 oz)
Total monthly oz silver served (contracts)  8919 contracts

44,595,000 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
We had 0 deposit into the dealer:

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   0

ii)into Loomis;   584,555.800 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 51.22% of all official comex silver. (160.819 million/314.220 million

 

total customer deposits today: 583,555.800    oz

we had 2 withdrawals:

 

i) Out of Brinks:  611,543.100 oz

ii) Out of Delaware:  2,000.000 oz exact weight??

 

 

 

total withdrawals; 613,543.100    oz

We had 1 adjustments

Scotia: customer to dealer:  337,903.6 oz

total dealer silver: 91.455 million

total dealer + customer silver:  310.453 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the MAY 2020. contract month is represented by 9 contract(s) FOR 45,000 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 8919 x 5,000 oz = 44,595,000 oz to which we add the difference between the open interest for the front month of MAY.(138) and the number of notices served upon today 9 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 8919 (notices served so far) x 5000 oz + OI for front month of MAY (138)- number of notices served upon today (9) x 5000 oz of silver standing for the MAY contract month.equals 45,240,000 oz.

We LOST 10 or an additional 50,000 oz will seek out metal on the London side of the pond as they ACCEPTED a London based forward contract.. PLUS A FIAT BONUS FOR THEIR EFFORT.

 

TODAY’S ESTIMATED SILVER VOLUME: 80,830 CONTRACTS //volume very high

 

 

FOR YESTERDAY: 56,213 CONTRACTS..,CONFIRMED VOLUME//

 

 

YESTERDAY’S CONFIRMED VOLUME OF 56,213  CONTRACTS EQUATES to 281 million  OZ 40.15% 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- 0.87% ((MAY 26/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO +0.11% to NAV:   (MAY 26/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.98%

(courtesy Sprott/GATA

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

NAV 16.19 TRADING 16.16///NEGATIVE 0.18

END

 

 

And now the Gold inventory at the GLD/

MAY 26//WITH GOLD DOWN $23.05//NO CHANGES IN GOLD INVENTORY://RESTS TONIGHT AT 1116.71 TONNES

MAY 22//WITH GOLD UP $13.05//A BIG CHANGE IN GOLD INVENTORY:: A PAPER ADDITION OF 3.93 TONNES//INVENTORY RESTS THIS WEEKEND AT:  1116.71 TONNES

MAY 21//WITH GOLD DOWN $26.70//NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1112.32 TONNES

MAY 20/WITH GOLD UP $7.20: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 1.46 TONNES FROM THE GLD////INVENTORY RESTS TONIGHT AT 1112.32 TONNES

MAY 19//WITH GOLD UP $10.60//NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1113.78 TONNES

MAY 18/WITH GOLD DOWN $15.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A PAPER DEPOSIT OF 9.06 TONNES./INVENTORY RESTS AT 1113.78 TONNES

MAY 15.WITH GOLD UP $16.30 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 12.58 TONNES/  INVENTORY RESTS AT 1104.72 TONNES

MAY 14//WITH GOLD UP $19.25 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1092.14 TONNES

MAY 13//WITH GOLD UP $9.05 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 11.07 TONNES/INVENTORY RESTS AT 1092.14 TONNES

MAY 12//WITH GOLD UP $6.60 TODAY; A SMALL CHANGES IN GOLD INVENTORY AT THE GLD/: A WITHDRAWAL OF .58 TONNES FROM THE GLD///INVENTORY RESTS AT 1081.07 TONNES

MAY 11/WITH GOLD DOWN $12.65 TODAY: NO CHANGES IN GOLD INVENTORY: //INVENTORY RESTS AT 1081.65 TONES..

MAY 8/WITH GOLD DOWN $7.00 TODAY; A BIG CHANGE IN GOLD INVENTORY: A PAPER ADDITION OF 5.85 TONNES/INVENTORY RESTS AT 1081.65 TONNES

MAY 7/WITH GOLD UP $29.65 TODAY : A SMALL CHANGE IN GOLD INVENTORY AT THE GLD//A PAPER ADDITION OF .41 TONNES/INVENTORY RESTS AT 1075.80 TONNES

MAY 6//WITH GOLD DOWN $17.00 TODAY/ A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A PAPER ADDITION OF 3.68 TONNES/INVENTORY RESTS AT 1075.39 TONES

MAY 5/WITH GOLD DOWN $1.65 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER ADDITION OF 3.81 TONNES//INVENTORY RESTS AT 1071.71 TONNES

MAY 4//WITH GOLD UP $12.00 TODAY//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MASSIVE PAPER DEPOSIT OF 11.4 TONNES INTO THE GLD////GOLD INVENTORY RESTS AT 1067.90 TONNES

MAY 1/WITH GOLD UP $8.45 NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1056.50 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at

MAY 26/ GLD INVENTORY 1116.71 tonnes*

LAST;  827 TRADING DAYS:   +169.94 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 727 TRADING DAYS://+345.09  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

MAY 26//WITH SILVER DOWN 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/// INVENTORY RESTS AT 455.817 MILLION OZ//

MAY 22/WITH SILVER UP 22 CENTS TODAY/ A HUGE PAPER WITHDRAWAL OF 1.864 MILLION OZ//INVENTORY RESTS AT 455.817 MILLION OZ/

LAST 5 DAYS: SILVER UP 60 CENTS: INVENTORY  UP A WHOOPING 23.767 MILLION OZ///

MAY 21/WITH SILVER DOWN 50 CENTS TODAY: A HUGE PAPER DEPOSIT OF 7.923 MILLION OZ///INVENTORY RESTS AT 457.681 MILLION OZ//

MAY 20//WITH SILVER UP ANOTHER 11 CENTS TODAY: A HUGE CHANGE IN SLV INVENTORY: A HUGE PAPER DEPOSIT OF 9.601 MILLION OZ INTO THE SLV// //INVENTORY RESTS AT 449.758 MILLION OZ

MAY 19/WITH SILVER UP ANOTHER 29 CENTS TODAY:  NO CHANGES IN SILVER INVENTORY AT THE SLV////INVENTORY RESTS AT 440.157 MILLION OZ//

MAY 18/WITH SILVER UP ANOTHER 48 CENTS TODAY: TWO BIG CHANGES IN SILVER INVENTORY AT THE SLV I.E. 2 PAPER DEPOSIT OF ( I) 8.39 MILLION OZ AND THEN ( 2) 8.109 MILLION OZ//INVENTORY RESTS AT 432.048 MILLION OZ// (TOTAL DEPOSITS 16.500 MILLION OZ///)

MAY 15/WITH SILVER UP 81 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV: /INVENTORY RESTS AT 423.65 MILLION OZ.

MAY 14//WITH SILVER UP 33 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV.//INVENTORY RESTS AT 423.65 MILLION OZ

MAY 13/WITH SILVER UP 2 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.79 MILLION OZ INTO THE SLV..//INVENTORY RESTS AT 423.65 MILLION OZ//


MAY 12/WITH SILVER UP 5 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.076 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 420.861 MILLION OZ//

MAY 11.WITH SILVER DOWN 5 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 417.785 MILLION OZ//

MAY 8/WITH SILVER UP 11 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MONSTER DEPOSIT OF 4.661 MILLION OZ OF SILVER INTO THE SLV..///INVENTORY RESTS AT 417.785 MILLION OZ//

MAY 7/WITH SILVER UP 45 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.124 MILLION OZ//

MAY 6/WITH SILVER DOWN 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.124 MILLION OZ//

MAY 5/WITH SILVER UP 17 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 413.124 MILLION OZ///

MAY 4//WITH SILVER DOWN 5 CENTS TODAY:2 HUGE PAPER CHANGES IN SILVER INVENTORY AT THE SLV.i).A  LARGE 1.399 MILLION OZ OF PAPER SILVER REMOVED FROM THE SLV//..//INVENTORY RESTS AT 411.427 MILLION OZ and ii) A LARGE 1.647 MILLION OZ OF PAPER SILVER ADDED TO THE SLV//  INVENTORY RESTS AT 413.124 MILLION OZ//


MAY 1/WITH SILVER FLAT IN PRICE: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 412.826 MILLION OZ///

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.

 

 

MAY 26.2020:

SLV INVENTORY RESTS TONIGHT AT

455.817 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 3.13/ and libor 6 month duration 0.57

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

GOLD LENDING RATE: -2.56%

NEGATIVE GOLD LEASING RATES INCREASING//GOLD SCARCITY AND CENTRAL BANKS CALLING IN ALL OF THEIR GOLD LEASES

 

XXXXXXXX

12 Month MM GOFO
+ 2.09%

LIBOR FOR 12 MONTH DURATION: 0.68

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.41%

NEGATIVE GOLD LEASING RATES  INCREASING//GOLD SCARCITY AND CENTRAL BANKS CALLING IN ALL OF THEIR GOLD LEASES

 

end

 

 

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

Gold Lower Despite Massive Risks as Tensions with China Grow and OECD Countries Economic Growth Collapses

Gold in USD – 3 Days

◆ Gold and silver prices are marginally lower after seeing gains overnight in Asian trading. An escalation of hostilities between the US and China had initially seen investors seek refuge in the safe haven prior to profit taking set in as stocks globally rose as economic lockdowns began to ease.

NEWS and COMMENTARY

 

Gold eases as equities rally; Hong Kong woes limit losses

OECD countries log worst quarterly contraction in GDP since the financial crisis

U.S. should not ‘indulge in fantasies’ that China will cave in to pressure

China is moving in with national security law as Hong Kong legislature ‘has failed to deliver,’ official says

Dow futures surge more than 500 points on “hopes of a coronavirus vaccine”

World shares reach 10-week high, S&P 500 eyeing 3000

Remembering The Biggest Empires In Human History

Why the Gold Price Should Be Much Higher

Silver: The Big Shorts

 

Watch and Read Other Key Points From Interview Here

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

22-May-20 1732.45 1733.55, 1421.99 1423.59 & 1588.83 1590.71
21-May-20 1732.80 1724.90, 1417.78 1410.45 & 1580.49 1571.04
19-May-20 1735.25 1737.95, 1416.14 1418.34 & 1584.11 1589.01
15-May-20 1734.85 1735.35, 1422.06 1427.67 & 1604.39 1602.60
14-May-20 1716.40 1731.60, 1403.67 1420.09 & 1587.84 1603.98
13-May-20 1699.85 1708.40, 1383.85 1394.74 & 1568.11 1573.09
12-May-20 1703.45 1702.40, 1381.84 1379.80 & 1574.50 1565.87
11-May-20 1698.80 1702.75, 1375.35 1378.55 & 1570.20 1571.81
07-May-20 1688.65 1704.05, 1366.29 1387.78 & 1565.21 1582.38
06-May-20 1698.90 1691.50, 1373.56 1366.73 & 1574.71 1564.13
05-May-20 1696.30 1699.55, 1363.83 1363.72 & 1566.36 1562.91
04-May-20 1703.70 1709.10, 1371.14 1374.63 & 1558.72 1563.83
01-May-20 1673.05 1686.25, 1332.08 1347.15 & 1523.14 1536.68

30-Apr-20 1716.75 1702.75, 1373.92 1361.69 & 1577.86 1568.91
29-Apr-20 1706.00 1703.35, 1371.97 1368.64 & 1569.69 1568.10

 

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We have resumed buying non stored bullion again and are buying gold and silver coins and bars at attractive premiums. Please email us for shipping instructions to vaults: support@goldcore.com

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Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Gillian Tett: Federal Reserve’s swaps intervention will preserve dollar’s reach

 Section: 

By Gillian Tett
Financial Times, London
Thursday, May 21, 2020

When Jay Powell, U.S. Federal Reserve chair, was grilled in Congress this week, the focus was on how the central bank has helped American companies and consumers during the pandemic. Senators should have also asked — but did not — what the Fed has done recently to help dollar markets outside U.S. shores.

That was a big oversight. When future financial historians study the Covid-19 shock, they will conclude that the Fed’s intervention in offshore dollar markets via swaps deals with other central banks was one of its most significant policy moves. Not only has the Fed’s action calmed markets, it has shored up the hegemony of the dollar-based global financial system for years to come.

To understand all this, some history is required. The concept of central bank swaps, in which two institutions exchange currencies, is not new. Such central bank co-operation had a “sustained pre-history from 1962-1998,” according to a Bank for International Settlements paper. But their use faded in the early 21st century as the Fed focused on onshore dollar markets and the American economy.

That changed abruptly in the 2008 crisis. Historian Adam Tooze notes that policymakers suddenly realised that non-U.S. financial companies, particularly in the eurozone, had built up massive, unbalanced dollar exposures. They owed dollars to investors but were unable to obtain enough of the currency in private markets, sparking panic. …

… For the remainder of the analysis:

https://www.ft.com/content/df9e34aa-9b5c-11ea-adb1-529f96d8a00b

From: Robert Lambourne <robert.lambourne@icloud.com>
To: Chris Powell <cxpowell@yahoo.com>
Sent: Tuesday, May 19, 2020, 2:19:33 PM EDT
Subject: BIS dollar swap lines with the US Federal Reserve

Chris,

Some light reading for you is on the link below. This research paper has accessed internal documents from the BIS and others and it emphasises the close co-operation between most central banks and the BIS. I believe these notes have not been published before.

My primary conclusion is that the Fed appears very dominant and was continually worried about events in the Eurodollar market spilling over into the domestic US market for dollars. After reading it I would say that the Fed has more control over the BIS than I had realised.

I am not expecting you to read through this paper, but it is quite revealing. There is little in it about gold per se, but as the paper goes through some of the dollar swap lines set up between the Fed and the BIS and European central banks in the last 60 years, it spells out that on occasions swap lines have been backed up by gold being used as security.

It’s fairly clear that the links between the Fed and the BIS are very strong and that during all of this time the Fed seems to have been very worried about keeping US dollar interest rates in the domestic market as low as possible and wanted the offshore US Eurodollar market not to become a source of demand for dollars from the domestic market.

One subsidiary point this paper makes is just how prevalent window dressing is at quarter ends by both commercial and central banks. So much so at times that the rush by banks to appear to be lending and borrowing less at quarter ends actually affected money market liquidity and borrowing costs. The Fed seems to have always seen smoothing this over as one of its roles.

The BIS paper is here:

https://www.bis.org/publ/work851.pdf

Best wishes,

Bob

end

Sprott expects fireworks in the gold/silver arena

(Sprott/GATA/CraigHemke)

 

Fireworks soon in the monetary metals, Sprott says

 Section: 

10:32p ET Saturday, May 23, 2020

Dear Friend of GATA and Gold:

Monetary metals supplies are tight, mining entrepreneur Eric Sprott tells Craig Hemke in their weekly interview for Sprott Money, and he expects fireworks in the sector very soon. Sprott also details his belief in the prospects of several mining companies in which he recently has invested. The interview is 23 minutes long and can be heard at Sprott Money here:

https://www.sprottmoney.com/Blog/all-hell-could-break-loose-the-current-…

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

“All Hell Could Break Loose”: The Current Precious Metals Shortage – Weekly Wrap Up (May 22, 2020)

“All Hell Could Break Loose”: The Current Precious Metals Shortage - Weekly Wrap Up (May 22, 2020)
By Craig Hemke 2 days ago 202474 ViewsNo comments

May 22, 2020

With physical shortages and a tight market, things are getting exciting on the precious metals front. Host Craig Hemke and Eric Sprott break down all the gold and silver news you need as we head into a three-day weekend.

In this edition of the Weekly Wrap-Up, you’ll hear:

  • The burgeoning story in silver
  • Why gold is in a similar position
  • Plus: the stock Eric thinks is “highly undervalued”

“Suffice to say that most of the economic data is not even worth analyzing anymore, because it’s just a disaster… The only thing the pundits seem to do from time to time is to say, “Oh, the job losses were only 2.2 million when the estimate was 2.4 million, therefore it’s great.” Now, we have no idea where this thing is going to bottom out. There was actually a study done by one of these economic institutes suggesting that Covid-19 could cost somewhere between 3.3 trillion and 82 trillion…. There are so many unknowns about how this is going to work out.”

Listen to the Weekly Wrap-Up on: iTunesSoundCloudSpotifyYouTube

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.


Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities. Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.You may copy, link to or quote from the above for your use only, provided that proper attribution to the source and author is given and you do not modify the content. Click Here to read our Article Syndication Policy.

end

Patrick Heller of Liberty Coin notes huge amount of misinformation surrounding the gold/silver markets.  He even states that official data cannot be trusted.  And he is perfectly correct.

Heller takes note of our questions to the CFTC .  These questions have so far not been answered.

a very important read..

please take note of the last query that Chris Powell posed to the CFTC

(Heller/GATA)

Patrick Heller: Monetary metals market data can’t be trusted

 Section: 

11:08a ET Saturday, May 23, 2020

Dear Friend of GATA and Gold:

Writing this week for Numismatic News, Patrick Heller of Liberty Coin Service in Lansing, Michigan, notes the huge amount of misinformation surrounding the monetary metals markets. The situation is so bad, Heller writes, that even official data cannot be trusted.

… 

Heller cites the most recent questions put by GATA to the U.S. Commodity Futures Trading Commission, including whether the commission has ever audited the gold kept in vaults approved by the New York Commodities Exchange and reported to the commission as registered or eligible for sale and delivery. Those questions, like others GATA has put to the commission, have yet to be answered.

Heller’s commentary is headlined “What Is Really Happening in Precious Metals Markets” and it’s posted at Numismatic News here:

https://www.numismaticnews.net/article/what-is-really-happening-in-preci…

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

end

Egon Von Greyerz is in our camp with respect to China’s official gold.  We are of the belief that they own north of 20,000 tonnes of gold

a must read…

(Kingworldnews/GATA)_

China likely has more official gold than U.S., von Greyerz tells KWN

 Section: 

6:35p ET Sunday, May 24, 2020

Dear Friend of GATA and Gold:

Swiss gold fund manager Egon von Greyerz tells King World News today that China likely has more official gold reserves than the United States and that Switzerland remains the best place for private party gold storage. Von Greyerz’s analysis is posted at KWN here:

https://kingworldnews.com/greyerz-jim-sinclair-87000-gold-and-chinas-200…

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

END

Kitco finally believes that there is manipualtion in the gold/silver markets? My goodness!

(Chris Powell/Kitco)

Cats and dogs living together! Kitco leads with gold market manipulation

 Section: 

8:13p ET Monday, May 25, 2020

Dear Friend of GATA and Gold:

“Fire and brimstone coming down from the skies! Rivers and seas boiling! … Forty years of darkness! Earthquakes, volcanoes! … The dead rising from the grave! … Human sacrifice, dogs and cats living together! … Mass hysteria!”

Not even that evaluation from the movie “Ghostbusters” —

https://www.youtube.com/watch?v=-sED4fzIV0k

— can do justice to tonight’s lead news item at Kitco.com, headlined “Why Is Gold Not Rallying? This Research Points to ‘Market Manipulations on a Scale Rarely Seen Before,'” by Anna Golubova.

… 

Has Golubova been left alone with the Kitco internet servers on this long holiday weekend? Was there no one to tell her that complaints of gold market manipulation are never to be given the time of day on Kitco, much less any credibility?

What’s next — the Financial Times refusing to parrot central banking’s mantra of the moment, and instead putting actual critical questions to central bankers?

Gold market manipulation by governments is an old story — really, an old policy of Western central banking, for which extensive documentation is available, much of it at government archives themselves:

http://gata.org/taxonomy/term/21

The study cited in Golubova’s report is itself 11 days old, conveyed to you by GATA on May 15, the day after it was published:

http://gata.org/node/20146

Better late than never, but could Kitco’s abrupt change of position on gold market manipulation be explained by anything beyond a rookie’s being left in charge of the news desk over a holiday weekend? Has Kitco concluded that gold market manipulation has become so obvious that even those who have dismissed it can deny it no longer?

Of course many cats and dogs have been living together for a long time, if surreptitiously. Could Kitco and GATA now peacefully cohabitate the monetary metals sector? Now that Kitco seems to have capitulated on the point, will GATA be able to move on to other subjects lately untouchable in polite company, like UFOs, Bigfoot, and the Loch Ness Monster?

Before contemplating that world-historical question, check out the Kitco home page to see Golubova’s story leading the page before it disappears:

https://www.kitco.com/

Then read her rewrite of GATA’s dispatch here:

https://www.kitco.com/news/2020-05-25/Why-is-gold-not-rallying-This-rese…

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

iii) Other physical stories:

 

Why The Gold/Silver Ratio Is A Useful Indicator

Authored by John Rubino via DollarCollapse.com,

There’s a debate in gold bug circles over whether the price difference between gold and silver – the gold/silver ratio – tells us anything useful.

Some skeptics, for instance, view the original gold/silver ratio of 15 – from America’s 18th century bi-metallic system – as just a political number pulled more-or-less out of thin air by Alexander Hamilton and therefore useless today. Others note that gold is a purely monetary metal and silver is part industrial, part monetary, and conclude that it’s apples to oranges – and therefore not an indicator of future prices.

Both points are factually defensible, sort of. But they’re also irrelevant. The real reason the gold/silver ratio has tended to fluctuate within a broad but well-defined range is that humans have a vivid visual imagination.

Here’s how it works:

Early in a precious metals bull market, people are skeptical of the need for safe-haven assets, so the money that flows into the sector goes mostly to the big-name, super-safe choice, which is gold. Gold goes up relative to silver, and the gold/silver ratio expands.

Gold keeps rising and new money – much of it attracted by the metal’s newfound price momentum rather than an understanding of the nature of money – flows in, pushing gold even higher.

The early gold investors register big gains and begin to feel smart and therefore more willing to take on a bit of extra risk in return for potentially even bigger gains. They look around for “the next gold” and find silver, the other monetary metal, languishing at a relatively low price.

Then they start thinking in images. First, they picture a single one-ounce gold coin and consider what it would cost. At gold’s new, higher price, this seems like a lot of money for such a small, though admittedly pretty, thing.

Next, they consider the price of silver and envision how many – also very pretty – one-ounce coins they can buy for the price of a single ounce of gold. And their imagination conjures up something like this:

Suddenly, silver looks extremely cheap. For the price of a single Gold Eagle, one can get two heaping handfuls of shiny, heavy silver ounces.

A bit more consideration reveals that in a SHTF scenario, silver coins are actually more useful than gold because their smaller denominations allow them to function as $20 bills rather than gold’s illiquid $1,000 +. You can buy groceries and bullets with silver coins.

Suddenly aware of silver’s advantages, investors conclude that at current relative prices, the choice is a no-brainer. Silver is the precious metal to load up on.

So what happens now? Historically, both precious metals keep rising, with silver rising faster than gold until the imagined pile of silver required to buy a single ounce of gold looks something like this:

Then the process shifts into reverse, with a single gold coin looking better in the mind’s eye than a paltry few bits of silver.

We are nowhere near that point, so expect investor imaginations to work in silver’s favor for years to come.

end
Perth Mint reports silver and gold bullion sales surging
SRSRocco

Australian Perth Mint Silver & Gold Bullion Sales Surge In April

By SRSrocco on May 25, 2020

Due to investor fears stemming from the global contagion, demand for Perth Mint silver and gold bullion products surged in April.  According to CoinNews.net, the Perth Mint’s gold bullion sales in April were the highest since the website started collecting data in February 2013, while silver bullion sales were in second.

The Perth Mint gold bullion bar and coin sales reached 120,504 troy ounces in April, while silver bullion sales were 2.1 million oz.  Thus, the Perth Mint sold 17 times more silver bullion than gold last month.  Figures in the chart below are shown in troy oz.

For the first four months of the year, the Perth Mint sold 5.9 million oz of silver bullion products and 285,500 oz of gold bullion.  Compare that to the total U.S. Mint Silver Eagles sold during the same period of 10.7 million and 323,500 oz for Gold Eagles.

It will be interesting to see what the level of gold and silver bullion products will be for the rest of the year as investors become more concerned about the financial system as the Fed and central banks continue printing money hand- over-fist.

In 2019, total investment silver billion demand was 186 million oz (Moz), according to the data in the Silver Institute’s 2020 World Silver Survey.  The highest physical silver investment demand reached was 300 Moz in 2013, due to the huge sell-off in the silver price.

I believe the only way for physical silver investment demand to overwhelm the market would be something north of 500 Moz in a year.  Maybe even 600 Moz.  However, I believe that won’t be that much of an issue when just 1% more of investors decide to purchase physical silver investment.

-END-

May 26.2020

Traders Beware: U.S. taps new tools to find fraud in volatile commodities market

WASHINGTON (Reuters) – When the U.S. Department of Justice charged a handful of JP Morgan Chase & Co (JPM.N) traders in 2018 and 2019 with alleged commodities futures manipulation, it wasn’t the first time the government had probed the bank’s metals trading activities.

FILE PHOTO: The U.S. Department of Justice building is bathed in morning light at sunrise in Washington, U.S., February 14, 2020. REUTERS/Mary F. Calvert/File Photo

The Commodity Futures Trading Commission (CFTC) investigated the same business as part of a similar probe of the silver market years earlier, but it was not able to build a case with the data it had at the time, according to U.S. court filings and a person with knowledge of the aborted probe.

Since then, leaps in the agencies’ data analysis capabilities have enabled them to detect and prosecute increasingly sophisticated forms of manipulation in the commodities futures markets which for decades have gone under-surveilled, according to ten officials and industry experts.

The Justice Department fraud division is beefing up with the creation of a sub-unit specializing in combating commodities fraud overseen by Avi Perry, a trial attorney who has prosecuted high-profile cases involving trading powerhouse Tower Research Capital, Merrill Lynch Commodities Inc, and the ongoing JPMorgan probe, according to two sources.

The unit is also hiring a handful of additional trial attorneys, according to the sources and online job postings. A Justice Department spokesman said the agency intends to fill the positions “promptly”.

The unit is part of a broader Justice Department initiative to dramatically expand the scope of market manipulation the agency targets for criminal prosecutions, beyond traditional insider trading and futures manipulation into a range of asset classes, sources told Reuters.

The effort, if successful, raises the stakes for traders with potential jail-time, while banks, brokers and prop trading firms could face chunky fines and business curbs as the agency gets better at detecting potential misconduct across institutions.

The new-found expertise may also give the agencies an edge as they scrutinize extreme market volatility sparked by the novel coronavirus disruption, including last month’s historic oil price crash. The CFTC is reviewing how the U.S. crude oil benchmark fell below $0 a barrel for the first time ever.

“There is just a wealth of information there, which is going to give us years and years of cases to come, I would expect,” Robert Zink, chief of the Justice Department’s fraud section, a unit of the agency’s criminal division, said of the data in an interview.

The Justice Department’s commodities crackdown has recently targeted “spoofing,” whereby futures traders falsely create the impression of strong demand or supply and then capitalize upon the market reaction.

Congress identified spoofing as market manipulation following the 2008 financial crisis. But it wasn’t until years later, when Zink joined the team investigating the 2010 “Flash Crash” which briefly wiped nearly $1 trillion off U.S. stock markets, that the fraud division learned how widespread the practice was and decided to go after it.

As seasoned prosecutors of healthcare fraud, the team believed they could apply the tools they had used to build those cases to the futures markets. That project began as an experiment in combing government data to sniff out suspicious patterns, such as doctors repeatedly overbilling hours, and has led the agency to bring charges against over 4,200 defendants, Justice Department data show.

“The idea was: let’s mine this data source to see who the worst actors are. Let’s not wait for walk-ins or whistleblowers and the like to make our own cases,” said Zink.

Around 2017, the fraud unit began developing those tools to spot known suspicious trading patterns and learn new ones by scanning a range of exchange data on bids and offers and trades, he said.

That led the agency to charge about more than a dozen current and former traders at banks including Deutsche Bank (DBKGn.DE), UBS UBSAG.UL and Bank of Nova Scotia (BNS.TO) from 2017 to 2019.

To be sure, proving criminal charges is tough and the Justice Department has had setbacks convincing juries with reams of data that traders intended to manipulate the market when cancelling orders.

“Juries don’t understand the data and in a trial they hear competing narratives from experts, and the burden of proof is high. The government has an uphill battle when they only have pattern evidence,” said Clifford Histed, an attorney with K&L Gates.

Still, lawyers say the threat of criminal prosecution is a strong deterrence which has surfaced witnesses who can help the agencies refine their data tools and build other cases.

For example, Navinder Sarao, who pleaded guilty to spoofing trades that helped cause the “Flash Crash,” gave the agencies extensive information on such tactics.

“We could identify a pattern that led us down a road to potential criminality, and then we could close alternative avenues for explanation through cooperation,” Zink said of Sarao.

CFTC COLLABORATION

As part of its initiative, the Justice Department has increasingly worked in parallel with the CFTC, a civil agency, which over the past three years has gathered more detailed daily trading data from the exchanges it supervises, officials said.

The CFTC brought a record 16 parallel enforcement actions with criminal authorities in its fiscal 2019.

CFTC director of enforcement James McDonald declined to comment on potential probes of recent market volatility, but said the data expertise put the agency on a stronger footing than following the previous financial crisis.

“As we bring more cases in these areas and as our surveillance efforts (and companies’) improve, we should expect spoofing strategies to continue to evolve in an effort to evade detection,” McDonald said. “Our job is to keep pace with this evolution.”

Traditionally, spoofing involved placing one large bid or offer and then swiftly cancelling it, but CFTC’s McDonald said regulators have seen new patterns emerge.

These include traders coordinating strategies, with one placing the bogus spoof order and one the genuine order, or placing spoof orders in one market to allow them to execute genuine orders in correlated markets.

Most recently, the CFTC has detected traders placing bogus orders and genuine orders on the same side of the market and then abruptly canceling the spoof orders to create the impression of a major change in buying or selling interest.

The CFTC brought its first ever case alleging this “vacuuming” strategy against Chicago trading firm Hard Eight Futures LLC and its founder Igor Chernomzav last year. The parties agreed to pay $2.5 million to settle the civil charges.

A representative for Hard Eight did not respond to a request for comment.

The Justice Department’s JPMorgan probe highlights the risks for companies as the agency scans for a broader range of misconduct. It has charged six JPMorgan traders for manipulating metals futures between 2008 and 2016. Authorities recently began probing “similar” practices in its treasuries business, according to company filings.

A spokesman for JP Morgan declined to comment.

Brian Benczkowski, assistant attorney general for the Justice Department’s criminal division, declined to comment on specific probes, but said that the agency’s software could lead it to widen investigations where it initially appeared a handful of traders were breaking the rules.

“The more widespread the behavior the more likely [we are] to proceed against the institution and seek a criminal resolution.”

Reporting by Chris Prentice; editing by Michelle Price and Edward Tobin

end

This hurts our banker friends badly: no gold coming to market!!
World’s deepest gold mine shut down due to COVID- 19

May 25, 2020 AngloGold Ashanti is the third-largest gold producer globally and the largest on the African continent, producing 3.3Moz and employing 34,263 people in 2019, according to information on its website.
end

Rigged: Exposing the Largest Financial Fraud in History with Stuart Englert

from Financial Survival Network

Stuart Englert is the author of Rigged: Exposing the Largest Financial Fraud in History. The largest financial fraud in history wasn’t Enron’s colossal accounting crimes, Bernie Madoff’s record-setting Ponzi scheme or the Libor scandal, in which some of the world’s biggest banks conspired to profit by manipulating interest rates. No, the largest financial fraud in history is one most Americans know little to nothing about. It isn’t mentioned by politicians, reported on the nightly news or discussed by coworkers during lunch break. The biggest fraud in history is a financial scheme perpetrated by the U.S. government and its banking accomplices. Over the last century, they’ve used coercion, deception and market manipulation to convince Americans the U.S. dollar is as good as gold and silver. The truth is, it’s not.

For the audio:

http://financialsurvivalnetwork.com/2020/05/rigged- exposing-the-largest-financial-fraud-in-history-with- stuart-englert/

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.1302/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1411   /shanghai bourse CLOSED UP 28.58 POINTS OR 1.01%

HANG SANG CLOSED  UP 432.42 POINTS OR 1.88%

 

2. Nikkei closed UP 529.52 POINTS OR 2.55%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 99.20/Euro RISES TO 1.0960

3b Japan 10 year bond yield: FALLS TO. –.00/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.52/ 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:: 34.03 and Brent: 36.05

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

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

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

3h Oil 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 RISES TO -.44%/Italian 10 yr bond yield DOWN to 1.57% /SPAIN 10 YR BOND YIELD DOWN TO 0.69%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.03: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.64

3k Gold at $1727.50 silver at: 17.37   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 80/100 in roubles/dollar) 70.84

3m oil into the 34 dollar handle for WTI and 36 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.52 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 .9672 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0602 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 0.44%

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 0.69% early this morning. Thirty year rate at 1.40%

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

6.  TURKISH LIRA:  UP  TO 6.7413..

MONDAY NEWS

Top Overnight News

  • China’s Foreign Minister warned the US not to try and change China and said some Americans were risking a “new cold war”
  • Hong Kong protesters held their biggest rally in months following China’s dramatic move to crack down on dissent in the city as lawmakers are set to consider legislation that would punish anyone who disrespects China’s national anthem
  • China Investment Corp. is looking for more resilient assets as the nation’s $941 billion sovereign wealth fund seeks to boost long-term returns
  • Germany’s 9 billion-euro ($9.8 billion) bailout of Deutsche Lufthansa AG is being slowed by discussions meant to ensure the rescue plan receives swift European Union approval once it’s finalized, people familiar with the matter said. Bild am Sonntag reported earlier that Lufthansa would face a three- year deadline for repayment of the aid package to save the ailing airline
  • U.K. Prime Minister Boris Johnson put his own authority on the line as he fought to save his most senior aide Dominic Cummings in the face of growing demands to fire the adviser for allegedly breaking lockdown rules
  • The Japanese government was set to end its nationwide state of emergency by lifting the order for Tokyo, its surrounding areas and Hokkaido on Monday, allowing more parts of the economy to re-open as new coronavirus cases tail off

TUESDAY 

Futures Soar Above 3,000, Dollar Tumbles On Vaccine Hopes, Reopening Optimism

S&P futures continued their Memorial Day surge, rising 2% and breached the key 3,000 level on Tuesday morning as global easing of lockdowns, hope over new vaccines and business restarts boosted optimism about economic recovery among investors returning from a long weekend while putting concerns over a Hong Kong crackdown on the backburner. The Bloomberg dollar index concurrently tumbled below the key 1,240 level while 10Y yields jumped to 0.70%.

Following disappointing news from Remdesivir late on Friday, Merck has become the new vaccine darling du jour, jumping in pre-market trading after it unveiled development plans on both a treatment for Covid-19 and a vaccine against it. Beaten down travel-related stocks gained in premarket trading with United Airlines Holdings, Expedia, and Marriott all up about 8% each. This is a continuation of the trends seen last week, when indexes ended mixed on Friday as China-U.S. tensions heated up, but still managed to log more than 3% gains for the week, fueled by hopes of an eventual coronavirus vaccine and easing of virus-related curbs.

Europe’s Stoxx 600 Index jumped, with travel stocks surging on reports that Berlin plans to lift travel warnings for 31 European countries from June 15. The Stoxx 600 Travel & Leisure Index jumped 5.7% to the highest since April 30. Package holiday company TUI was the biggest gainer, up 37%; British Airways parent IAG gains 18%, EasyJet +9.8% and Intercontinental Hotels +9.6%. Deutsche Lufthansa, which rose 7.5% Monday after Germany reached agreement on a bailout, gains 6%.

Also on the reopening front, Spain urged foreign holidaymakers to return from July as it eases one of Europe’s strictest curbs, while Britain was looking to reopen thousands of High Street shops, department stores and shopping centers next month, sending the pound up by the most in almost a month.

In Asia, Japan led the equity advance as the world’s third-largest economy reopened, and shares rose in Hong Kong, which showed signs of stabilizing after weekend unrest. Asian stocks gained, led by materials and industrials, after rising in the last session. Most markets in the region were up, with Australia’s S&P/ASX 200 gaining 2.9% and Japan’s Topix Index rising 2.2%, while India’s S&P BSE Sensex Index dropped 0%. The Topix gained 2.2%, with J-Lease and Nippon Chemi-Con rising the most. The Shanghai Composite Index rose 1%, with Panda Financial Holding and Shanghai Fenghwa Group posting the biggest advances.

Largely locked down investors have come out of the holiday weekend in a swinging risk-on mood, even as tensions between Washington and Beijing continue to flare. Over the weekend, China condemned the U.S. for adding 33 Chinese entities to a trade blacklist, but without announcing any retaliatory steps even as it accused the US of being a paper tiger and one unwilling to intervene in Hong Kong due to its own pandemic problems. Meanwhile, Beijing sought to reassure Hong Kong that its judiciary would remain independent under a new national security law.

Offsetting geopolitical tensions are mounting signs that coronavirus infection rates are moderating. The Japanese government ended its nationwide state of emergency Monday, while Germany recorded a decline in the number of new virus cases. Signs that more euro area stimulus is on the way is also helping support the appetite for risk.

According to Marc Ostwald, chief economist at ADM Investor Services, “the narrative for markets is shifting somewhat, with hopes associated with the easing of lockdown measures in many countries and still very exaggerated hopes of a vaccine being found short-term, needing to be balanced against escalating U.S./China tensions.”

In rates, Treasuries begin holiday-shortened U.S. week under pressure as bear-steepening left yields cheaper by 1bp to 3bp ahead of $127 billion auction cycle consisting of 2-, 5- and 7-year notes this week. Treasury 10-year yields around 0.687%, cheaper by nearly 3bp vs Friday’s close, with 2s10s steeeper by ~2bp, 5s30s by ~ 1bp. Bunds cheaper by 2.5bp vs U.S. 10year, gilts by ~2bp. Auction cycle begins Tuesday with $44b 2-year note sale at 1pm ET, followed by $45b 5-year and $38b 7-year Wednesday and Thursday. The German government’s 2-year debt auction received bids worth more than 3 times the amount on offer. Germany currently pays around -60bps to borrow money for two years. “That and the demand at auction speak volumes”, according to BMO strategist Stephen Gallo.

In FX, the broad USD declined sharply as risk appetite rallied while commodity-related currencies paced gainers vs the USD (NOK, NZD, AUD, ZAR & MXN jumping from +1.0% to +1.7%).

The dollar fell against all peers except for the yen, while commodity currencies rallied as oil prices advanced following a prediction from Russia that the market may rebalance as early as next month after historic output cuts from global producers to drain a glut. The euro rallied after touching more than a one-week low against the dollar on Monday; German bonds fell, extending declines and underperformance against Treasuries as haven demand was unwound; Italian bonds rallied, tightening the spread over Bunds. The pound rose against the dollar and the euro, helped by news that restrictions on U.K. retailers will begin to ease next week. Australia and New Zealand’s currencies advanced as the end of a nationwide emergency in Japan and a slowdown of U.S. virus infections bolstered risk sentiment. According to Stephen Gallo, “a close in the BBDXY below the 1,240 level – which looks increasingly likely – could cement near-term USD weakness. When deciding whether this is a positioning story for FX or a realignment, we would err on the side of realignment. This move in the USD should not be fought (yet).”

In commodities, WTI crude oil advanced to around $34 a barrel on hopes the market may rebalance after historic output cuts. WTI and Brent front month futures continue to post gains, albeit the benchmarks have waned off highs in recent trade. Eyes remain on the wider implications on global trade and sentiment from the fallout of the US-Sino trade spat threatening a cold war, whilst investors must not be distraction from the prospects of reinstated lockdowns should COVID-19 cases rise again. On the supply front- Russian Energy Minister Novak is to reportedly meet with Russian oil majors to discuss an extension of current cuts past the end of June – the checkpoint for OPEC to reduce output curbs.

Looking at today’s calendar, the expected data include new home sales and consumer confidence. AutoZone is reporting earnings.

Market Snapshot

  • S&P 500 futures up 1.8% to 3,006.00
  • STOXX Europe 600 up 0.9% to 348.43
  • MXAP up 1.9% to 148.89
  • MXAPJ up 1.8% to 473.73
  • Nikkei up 2.6% to 21,271.17
  • Topix up 2.2% to 1,534.73
  • Hang Seng Index up 1.9% to 23,384.66
  • Shanghai Composite up 1% to 2,846.55
  • Sensex up 0.02% to 30,678.38
  • Australia S&P/ASX 200 up 2.9% to 5,780.05
  • Kospi up 1.8% to 2,029.78
  • German 10Y yield rose 4.9 bps to -0.445%
  • Euro up 0.4% to $1.0944
  • Italian 10Y yield fell 2.2 bps to 1.403%
  • Spanish 10Y yield fell 1.2 bps to 0.6%
  • Brent futures up 1.6% to $36.11/bbl
  • Gold spot down 0.3% to $1,727.40
  • U.S. Dollar Index down 0.5% to 99.41

Top Overnight News from Bloomberg

  • Sterling traders look set to face heightened uncertainty on multiple fronts next month — the end-June deadline to extend the Brexit transition period, the possibility of negative interest rates in the U.K. and the economy’s tentative exit from the pandemic lockdown
  • A German Ifo gauge measuring trade expectations among manufacturers jumped by a record but remained below zero, indicating that pessimism receded even though it was still the prevailing sentiment
  • Wuhan found 206 asymptomatic patients from 6.68 million people as it concluded a campaign to test the entire population after several infections prompted fears of a second wave
  • With inflation low, there is room for the ECB to innovate and act “rapidly and powerfully,” Bank of France Governor Francois Villeroy de Galhau told a conference in Paris on Monday. He also signaled that he’d like to see even looser limits on the 750 billion-euro ($817 billion) plan
  • Singapore’s economy is facing its worst contraction since independence more than a half-century ago as the coronavirus outbreak and measures to contain it pummel the trade-reliant city state
  • Dominic Cummings, one of Boris Johnson’s closest allies, refused to quit his job in the U.K. government, refuting claims he flouted lockdown rules that he had helped to draft. Japan ended its state of emergency everywhere in the country and made reviving the economy its top priority. The World Health Organization temporarily halted tests on hydroxychloroquine
  • China sought to reassure Hong Kong that its judiciary would remain independent under a new national security law, as concerns grow that the city may lose one of its key selling points for international companies
  • People’s Bank of China Governor Yi Gang said the domestic economy is improving despite global uncertainty, and indicated the bank will continue with the current targeted easing approach.
  • The Bank of Japan would consider changing interest rates for its yield curve control program if it were necessary, Governor Haruhiko Kuroda told lawmakers in parliament Tuesday
  • England’s outdoor markets and car showrooms will be able to re-open from June 1, as soon as they are able to meet the coronavirus guidelines to protect shoppers and workers, Prime Minister Boris Johnson said on Monday. All other non-essential retail outlets including shops selling clothes, shoes, toys, furniture will be expected to be able to reopen from June 15 if the government can control the spread of the virus
  • Oil rose above $34 a barrel following a prediction from Russia that the market may rebalance as early as next month after historic output cuts from global producers to drain a glut

Asian equity markets were higher across the board and US equity futures also extended on gains in which the E-mini S&P prodded the 3000 focal point, as trade picked up from the holiday lull and given the lack of fresh catalysts to force a shift in the recent constructive narrative. ASX 200 (+2.9%) was lifted as all sectors traded positive and with notable gains seen in both financials and energy, while Nikkei 225 (+2.6%) outperformed as exporters cheered a weaker currency and after PM Abe formally lifted the nationwide state of emergency. Hang Seng (+1.8%) and Shanghai Comp. (+1.0%) also conformed to the positive tone with the surge in Hong Kong attributed to dip buying and with sentiment underpinned after the PBoC injected liquidity through reverse repos for the first time in almost 2 months, while PBoC Governor Yi reiterated that prudent monetary policy will be more flexible and that they will strengthen macro policy, as well as counter cyclical adjustments. Finally, 10yr JGBs were range bound with prices marginally higher amid mixed results at the 40yr JGB auction and despite the gains in stocks, while there were comments from BoJ Governor Kuroda who reiterated the central bank stands ready to act further through various policy tools and suggested that they will conduct appropriate easing measures after the coronavirus is contained.

Top Asian News

  • Wuhan Tests Millions in 12 Days as China Fears Second Virus Wave
  • Singapore Slashes Growth Target With 7% Contraction Possible
  • Indonesia Deploys Army to Enforce Lockdown Before Reopening
  • Speculators Target Hong Kong’s Currency on Outflow Concern

European indices have extended on yesterday’s gains (Eurostoxx 50 +0.8%) with the FTSE 100 (+1.4%) top of the pile as UK participants return from their extended weekend. In terms of over-arching macro themes, there hasn’t been much in the way of fresh fundamental catalysts since yesterday’s close, however, from a technical perspective, market participants may seek some encouragement from the e-mini moving back above the psychological 3000 mark. Additionally, looking at some of the top gainers thus far, the reopening narrative appears to be playing a key role once again. The main source of traction thus far has been in the travel & leisure sector with UK-listed IAG (+15.4%), Intercontinental Hotels (+12.4%), easyJet (+11.6%) and Ryanair (+7.6%) all showing substantial gains from Friday’s close with optimism for the sector buoyed by ongoing border reopenings across the continent, whilst Deutsche Lufthansa (+5.3%) shares remain elevated after agreeing to a rescue deal with the German government. Asides from the travel & leisure sector, reopening optimism can also be seen in names such as Cineworld (+18.7%), JD Sports (+9.7%) and Hammerson (+7.9%) with UK PM Johnson’s latest update noting that the government plans to allow car showrooms and outdoor markets to reopen from June 1st and will allow all non-essential retail to open from June 15th. Elsewhere, other notable movers include Rolls-Royce (+11.4%), who, asides from benefiting from recent optimism surrounding travel, are looking to negotiate price cuts with certain supplier. Finally, Wirecard (-1.6%) are off worst levels but lower nonetheless after delaying their earnings from 4th June to the 18th June on the basis that audits of annual financial statements for 2019 will not be completed by the planned date.

Top European News

  • ECB’s Villeroy Says More Stimulus Is Probably on the Way
  • Dominic Cummings Refuses to Quit in Row Over U.K. Lockdown; U.K. Minister Quits in Protest as Johnson Refuses to Fire Aide
  • Macron Set to Unveil Aid for Embattled French Auto Industry
  • JDE Peet’s Sets Price Range for $2.5 Billion Amsterdam IPO

In FX, the Dollar continues its pullback early EU-doors, with little by way of fresh fundamental catalysts, but some estimates of month-end FX flows favour modest USD selling heading into the May 29th month-end fix.  Looking ahead to the session, month-end factors are likely to influence the Buck in the current absence of fresh macro developments. Meanwhile, State-side data is unlikely to sway the Dollar much, but Fed’s Kashkari (2020 vote) is slated for 1800BST – who stated two weeks ago that there is unanimous opposition against NIRP, but refrained from ruling it out in the future. DXY has retreated further below the 99.500 mark (vs. high 99.979), with its 21 DMA coinciding with the psychological 99.000 mark.

  • CNH, HKD – Notwithstanding Dollar softness, little action is seen in the currencies thus far. Political tensions remain elevated as Hong Kong’s special status assessment deadline at month-end, and with China threatening retaliation should US impose HK-related sanctions. Meanwhile, PBoC opted for another softer CNY fixing which participants should keep on the radar amid the looming US Currency Manipulation report. Offshore Yuan trades flat around 7.1450 vs. the USD and within a tight band. USD/HKD dipped below yesterday’s low at 7.7530 in early trade.
  • EUR – EUR gains remain dimmed after dovish Villeroy alluded to a longer period of negative rates and posited possible further measures – ahead of the June 4th meeting. EUR/USD keeps its head above 1.0900 and eyes its 21 DMA at 1.0958 to the upside, having found an overnight base at 1.0890. Option expiries see EUR 720mln at 1.0900 and a some 1.3bln between 1.0935-45. Traders eye comments from ECB’s Chief Economist Lane (1345BST) and VP de Guindos (1630BST) for signs of agreement with Villeroy’s remarks.
  • GBP, AUD, NZD, CAD – All beneficiaries of the USD pullback but the Aussie, Kiwi and Sterling outpace as risk appetite intensifies.  Cable topped 1.2300 (vs. low 1.2175), after taking out its 50 DMA at 1.2275, 55 DMA at 1.2288 and a Fib 1.2292 (38.2% of the Apr-May fall) on the back of source reports that EU are preparing to drop its “maximalist” approach to negotiations on fisheries with Britain in the next round of negotiations. Furthermore, BoE’s Haldane said the UK economy likely contracted by over 20% in Q2, “just a shade” better than BoE’s scenario of around 25%. The MPC member said the BoE has not reached remotely yet a view on NIRP. Elsewhere Aussie and Kiwi extended on APAC gains and surpassed 0.6600 and 0.6150 against the USD respectively vs. lows of 0.6535 and 0.6092 apiece. CAD meanwhile lags its high-beta peers but remains underpinned on favourable oil prices. USD/CAD gave up 1.3900 to the downside with support seen around the 1.3860 mark for the pair – whilst BoC’s outgoing Governor Poloz and Deputy Governor Wilkins are slated for a text release at 2200BST.
  • CHF, JPY – Mixed trade among the safe-haven FX – the Yen fails to benefit from the Dollar descend as risk appetite prompts haven outflows, whilst BoJ Governor Kuroda sung from the same hymn sheet regarding readiness to further loosen policy. USD/JPY failed to breach its 50 DMA (107.91) overnight but remains underpinned by the risk-on tone as focus remains on reopening economies and vaccine hopes in the absence of fundamental developments. The Franc ekes modest gains in a consolidation of yesterday’s weakness, USD/CHF dipped below 0.9700 and eyes its 55 DMA (0.9684) to the downside.

In commodities, WTI and Brent front month futures continue to post gains, albeit the benchmarks have waned off highs in recent trade. Eyes remain on the wider implications on global trade and sentiment from the fallout of the US-Sino trade spat threatening a cold war, whilst investors must not be distraction from the prospects of reinstated lockdowns should COVID-19 cases rise again. On the supply front- Russian Energy Minister Novak is to reportedly meet with Russian oil majors to discuss an extension of current cuts past the end of June – the checkpoint for OPEC to reduce output curbs. Aside from that, news flow for the complex remained light in early EU hours. On the data front, the weekly Private inventories will be watched tomorrow – particularly in regards to Cushing storage. WTI and Brent July remain north of USD 34/bbl and USD 36/bbl respectively having printed bases at USD 32.50/bbl and USD 35.50/bbl apiece. Spot gold succumbs to the risk appetite and see modest outflows, with losses cushioned by the weaker Buck as the yellow metal straddles USD 1725/oz. Copper prices post decent gains amid the risk tone and softer Dollar – with prices eyeing USD 2.45/lb to the upside.

US Event Calendar

  • 8:30am: Chicago Fed Nat Activity Index, prior -4.2
  • 9am: S&P CoreLogic CS 20-City MoM SA, est. 0.3%, prior 0.45%; S&P CoreLogic CS 20-City YoY NSA, est. 3.4%, prior 3.47%
  • 9am: House Price Purchase Index QoQ, prior 1.3%
  • 10am: New Home Sales, est. 480,000, prior 627,000; New Home Sales MoM, est. -23.44%, prior -15.4%
  • 10am: Conf. Board Consumer Confidence, est. 87, prior 86.9; Expectations, prior 93.8; Present Situation, prior 76.4
  • 10:30am: Dallas Fed Manf. Activity, est. -62, prior -73.7

DB’s Jim Reid concludes the overnight wrap

There was a remarkable press conference yesterday here in the U.K. by PM Boris Johnson over his top aide Dominic Cummings. Lockdown has meant different things to different people but this story has whipped the U.K. up into a frenzy the likes of which I can’t remember witnessing for a very long time. Our lockdown has had its dramas but not quite on this scale. One such drama was that my wife decided that she’d spend any spare time she had during it planting all sorts of new plants and shrubs around the garden. A massive effort. However she didn’t count on only having one day of rain in 10 weeks and now has to spend 60-90 minutes each day watering the plants or risk them dying in the extreme unseasonal heat. We’ve even trained the kids to do it although this invariably ends up in a water fight and tears.

While we were watering the plants, yesterday was a quiet day for markets with the US and the U.K. on holiday. However the mood was good as more global progress was made towards reopenings and no notable new escalations between the US and China have emerged over the last few days. On these types of days the market gladly sucks up the liquidity that central banks and governments have injected. The Stoxx 600 closed +1.47% led by the DAX (+2.87%) which saw Bayer (+7.77%) outperform as they were said to have settled a substantial amount of legal claims hanging over the company. Lufthansa (+7.57%) was also up after reports that the German government is proposing taking a €9bn stake in the company – albeit one that has to go through EU approval. US equity futures remained up during the afternoon session and are +1.62% this morning.

Asian bourses are also trading up this morning with the Nikkei (+2.27%), Hang Seng (+1.83%), Shanghai Comp (+0.71%) and Kospi (+1.57%) all advancing. Elsewhere, the USD is a shade weaker while yields on 10y USTs are up +1bps. WTI oil prices are also up +2.83% to $34.18.

In terms of newsflow, Hong Kong’s Carrie Lam has voiced support of China’s moves to impose sweeping national security laws in the territory saying it was untrue that the new security law would ban street protests or calls for her dismissal, and pledged that Hong Kong’s freedoms would be preserved. China has also said that the new legislation “will not change the one country, two systems policy, Hong Kong’s capitalist system, high degree of autonomy, nor will it change the legal system in Hong Kong SAR, or affect the independent judicial power, including the right of final adjudication exercised by the judiciary in Hong Kong.”

There’s not a lot of top tier data over the remainder of the week (see the day by day calendar at the end) but highlights will include continued discussions on a European recovery fund, remarks from Fed Chair Powell (Friday), alongside with a few remaining earnings releases. Furthermore, the Fed will be releasing their Beige Book on Wednesday, which provides information on current economic conditions in the different Federal Reserve districts.

Tomorrow we’ll hear from European Commission President von der Leyen, who’ll be presenting the revised Multiannual Financial Framework and recovery plan proposals to the European Parliament. This follows the Franco-German proposal announced last Monday by Chancellor Merkel and President Macron for a €500bn recovery fund for the EU. However, these are still early days, since unanimity among the 27 member states is required, and a number of countries have voiced their opposition to the idea of joint debt issuance. The news flow over the last few days hasn’t been great. As DB’s Mark Wall outlines in a blog over the weekend, on Saturday the Frugal Four (FF) member states (Netherlands, Austria, Denmark and Sweden) issued a counter-proposal to the Merkel-Macron (MM) plan. If the intention of the MM proposal was to force some concessions from the FF, it failed according to Mark. In summary there is no additional envelop of resources, no grants and a fair amount of ambiguity on conditionality to access the fund As Mark suggests, with no concessions from the Frugal Four, it may be all the more difficult for the European Commission to issue a credible proposal tomorrow. There appears to be no common ground between the MM and FF proposals, no basis for consensus. The risk of not having an agreement at the 18/19 June EU leaders’ meeting could be rising. However Mark continues to believe there will be a Recovery Fund but that it’ll just take longer to agree. See his weekend blog here.

Yesterday we also heard from the Bank of France Governor Villeroy and he signalled that the ECB is very likely to boost its emergency bond-buying program to fight the coronavirus pandemic. He also said that he would like to see limits on the EUR 750bn PEPP plan to be loosened even more while adding that, “it is in the name of our mandate that we will very probably need to go even further. It is its very flexibility that should make the pandemic emergency purchase program our preferred marginal instrument for dealing with the consequences of the crisis.”

For those that were on holiday yesterday a quick recap of last week now. Global equities were mostly higher as hopes of a successful global reopening and of a near-term vaccine grew. The rise in risk assets was despite consistent escalation of US-China tensions and a continuous drumbeat of negative economic data, mostly backward looking but some forward looking as well. The S&P 500 rose +3.20% last week (+0.24% Friday), erasing the prior week’s loss and closing at its highest weekly close since the first week of March. The S&P 500 is now +32.09% off the March lows and just -8.52% down YTD, while actually up +3.47% over the last 52 weeks. The rally was more diversified last week as Energy stocks joined Technology in outperforming. With tech still leading, the NASDAQ rose +3.44% on the week (+0.43% Friday). European equities also rallied on the week, in a fairly correlated fashion with every major country’s index higher as the Stoxx 600 was up +3.63% (-0.03% Friday) over the five days. The DAX rallied +5.82% (+0.07% Friday), while the Italian FTSE MIB rose +2.75% (+1.34%), and the CAC gained +3.90% (-0.02% Friday). Asian indices were more mixed than their European and American counterparts. The Nikkei was up +1.75% over the week (-0.80% Friday) while the CSI 300 lost -2.27% (-2.29% Friday), and the Kospi rose +2.22% (-1.41% Friday). In other risk assets, oil continued its recovery, rallying for a fourth week in a row. WTI futures rose +13.46% (-1.98% Friday) to $33.25/barrel and Brent crude rose +8.34% on the week (-2.58% Friday) to $35.13/barrel.

The VIX fell -3.8pts to 28.1 last week (-1.4pts Friday), which is not as low as the index fell 2 weeks ago even with equity prices higher. With oil prices rallying and equities continuing to improve, credit spreads tightened on the week. US HY cash spreads were -72bps tighter (-2bps Friday), while IG tightened -24bps on the week (-1bp Friday). In Europe, HY cash spreads were -37bps tighter (-3bps Friday), while IG tightened -11bps (-1bp Friday).

With equities rallying core sovereign bonds yields rose slightly. US 10yr Treasury yields were up +1.6bps (-1.3bps Friday) to finish at 0.659%. Meanwhile, 10yr Bund yields rose +4.4bps over the course of the week (+0.8bps Friday) to -0.49%. Peripheral debt tightened as Chancellor Merkel and President Macron agreed to support a €500bn recovery fund, which Merkel said would have the ability to borrow money. Spanish 10yr yields tightened -18bps to Bunds over the 5 days, while Italian BTPs were -31bps tighter.

 

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 28.58 POINTS OR 1.01%  //Hang Sang CLOSED UP 432.42 POINTS OR 2.55%   /The Nikkei closed UP 529.52 POINTS OR 2.55%//Australia’s all ordinaires CLOSED UP 2.79%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1302 /Oil UP TO 34.03 dollars per barrel for WTI and 36.05 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1302 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1411 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

SATURDAY//HUAWEI/CHINA

Huawei forges new alliances with rival chipmakers after Washington crackdown.  However China’s main problem will be consumers shying away from Chinese products..punishing China for the coronavirus…

(zerohedge)

 

“They Saw This Day Coming” – Huawei Forges Alliances With Rival Chipmakers As Washington’s Crackdown Intensifies

The US Commerce Department’s latest move to block companies from selling products to Huawei that were created with American technology, equipment or software has undoubtedly hurt the Chinese telecoms giant. But it won’t be nearly enough to take it down.

Since Washington launched its campaign against Huawei two years ago (when the trade tensions between the US and China started to heat up, as President Trump started slapping more tariffs on foreign goods) the company has been strengthening ties with contract chipmakers in Taiwan and elsewhere, while ramping up its own microchip-technology arm, known as HiSilicon Technologies.

On Friday, Nikkei reported that Huawei had initiated conversations with other mobile chipmakers to try and figure out where it might source certain essential components for its handsets (remember, Huawei is the second-largest cellphone maker by sales volume) and other products.

Of course, the crackdown cuts both ways, as several American companies relied heavily on Huawei’s business (they can still apply for licenses to continue selling to Huawei…so long as Commerce approves).

As we reported earlier this week, it’s not just American chipmakers that are distancing themselves from Huawei: some Taiwan-based chipmakers are also dropping the telecoms giant for fear of being targeted by Treasury sanctions, including TSMC, the world’s largest contract chipmaker.

Now, Huawei is reportedly in talks with MediaTek, the world’s second-largest contract chip producer.

Huawei Technologies is seeking help from rival mobile-chip makers to withstand a U.S. clampdown aimed at crippling the Chinese company, sources familiar with the matter told the Nikkei Asian Review.

Huawei is in talks with MediaTek, the world’s second-largest mobile chip developer after Qualcomm of the U.S., and UNISOC, China’s second-largest mobile chip designer after Huawei’s HiSilicon Technologies unit, to buy more chips as alternatives to keep its consumer electronics business afloat, the sources said.

To work with a contract chipmaker, Huawei would still need to design its own chips. Over the past two years, Huawei has expanded its team of engineers working on chip design to more than 10,000, Nikkei said.

To be sure, MediaTek already makes low- and medium-end chips for Huawei, evidence that the company, which was founded by a veteran of China’s PLA, and purportedly maintains strong links to the Chinese military, has been bracing for the other shoe to drop.  MediaTek, meanwhile, is still trying to figure out if it can meet Huawei’s latest bid.

“Huawei has foreseen this day coming. It started to allocate more mid- to low-end mobile chip projects to MediaTek last year amid its de-Americanization efforts,” one of the sources said. “Huawei has also become one of the key clients for the Taiwanese mobile chip developer’s mid-end 5G mobile chip for this year.”

MediaTek is evaluating whether it has sufficient human resources to fully support Huawei’s aggressive bid, as the Chinese company is asking for volume 300% above its usual procurement in the past few years, another source familiar with the talks said.

The situation has also created an opportunity for small Chinese chipmakers (working, we imagine, mostly with technology stolen from American and Taiwanese companies) to expand.

Huawei also seeks to deepen its collaboration with UNISOC, a Beijing-backed mobile chip developer that relies mostly on smaller device makers as customers and mainly supports entry-level products and devices for emerging markets. Previously, Huawei used only very few UNISOC chips for its low-end smartphone and tablet offerings, sources said.

“The new procurement deals would be a great boost to help UNISOC further upgrade its chip design capability,” said a chip industry executive. “In the past, UNISOC was struggling quite a bit, because it could not really secure big contracts with global leading smartphone makers as these top smartphone makers could find better offerings elsewhere. This time could be an opportunity that it could really seek to match the international standard.”

UNISOC last year accelerated its 5G chip development to catch up with Qualcomm and MediaTek, Nikkei has reported. More recently, the company received 4.5 billion yuan ($630 million) from China’s national integrated circuit fund, the so-called Big Fund.

UNISOC is preparing to list on the Shanghai STAR tech board, the Chinese version of Nasdaq, later this year. Qualcomm has needed a license from the U.S. Department of Commerce to supply Huawei since mid-May of 2019.

Huawei has already expanded production of in-house mobile processors for its smartphone business to 75%, up from 69% in 2018 and 45% in 2016, according to to data from GF Securities cited by Nikkei. Huawei shipped 240 million smartphones in 2019. And with China now throwing caution to the wind and cracking down on Hong Kong, we wouldn’t be surprised to see more Huawei drama in the headlines next week, with serious market repercussions for the US semiconductor industry.

end
CHINA/USA/SATURDAY
USA sanctions Chinese surveillance companies for human rights abuses against the Uighurs
(zerohedge)

US Sanctions Chinese Surveillance Companies For Human Rights Abuses Against Uighurs

With both the US and China poking the geopolitical hornets’ nest that is Hong Kong on a daily if not hourly basis, as both sides appear content with the lack of tangible response from the other side to escalate actions in an apparent political race who has more global clout, after the close on Friday the US Department of Commerce said it would sanction a Chinese government institute and eight Chinese companies, mostly involved in “high-technology surveillance” for human rights abuses against Uighurs and other minorities in the country’s western Xinjiang region. As a result these entities “will face new restrictions on access to U.S. technology.”

The US identified China’s Ministry of Public Security’s Institute of Forensic Science and Aksu Huafu Textiles Co. for engaging in human rights violations and abuses in the Xinjiang Uighur Autonomous Region. An additional seven commercial entities made the list for enabling China’s high-technology surveillance in the XUAR: CloudWalk Technology; FiberHome Technologies Group and the subsidiary Nanjing FiberHome Starrysky Communication Development; NetPosa and the subsidiary SenseNets; Intellifusion; and IS’Vision.

“These nine parties are complicit in human rights violations and abuses committed in China’s campaign of repression, mass arbitrary detention, forced labor and high-technology surveillance against Uighurs, ethnic Kazakhs, and other members of Muslim minority groups in the Xinjiang Uighur Autonomous Region,” the Commerce Department said in a statement.

The Entity List additions restrict the export of U.S items subject to the Export Administration Regulations (EAR) to persons or organizations reasonably believed to be involved, or to pose a significant risk of being of becoming involved, in activities contrary to the national security or foreign policy interests of the United States. The EAR imposes additional license requirements on, and limits the availability of most license exceptions for, exports, re-exports, and transfers (in-country) to listed entities.

With the US starting to crack down on Chinese surveillance companies, in addition to telecom giants like Huawei, it is only a matter of time before the Trump administration also throws Hikvision, which has been a supplier to hundreds of government-led surveillance projects in major cities including Shanghai, Hangzhou and Urumqi, under the bus as well. For Beijing that may be a step too far, as Hikvision has morphed from a former Chinese government research institute since its 2001 founding into a $39 billion business specializing in professional video surveillance cameras. In fact, it is surprising this hasn’t already happened: around 42% of the company is controlled by state-owned enterprises, with China Electronics Technology HIK Group owning 39.6% of the company as the biggest shareholder.

China’s professional video surveillance equipment market, which accounts for 44% of all global revenue, grew by 14.7% in 2017, outpacing the rest of the world, which grew by only 5.5%. Hikvision had a leading share of 21.4% for the global closed-circuit television and video surveillance equipment market in 2017, according to IHS Markit

The meteoric rise of Hikvision comes amid booming demand for public surveillance by the Chinese government. China’s Skynet Project – it’s real name – a national surveillance system aimed at “fighting crime and preventing possible disasters”, according to authorities, had more than 20 million cameras installed in public spaces in Chinese cities in 2017, while the Sharp Eye Project has extended the watch to rural areas across China, according to state media.

IHS Markit estimated that China had 176 million surveillance cameras in public and private areas in 2017, compared to only 50 million cameras in the US. The researcher expects China to install about 450 million new cameras by 2020.

Hikvision’s products are in use in more than 150 countries and regions globally including the US and the United Kingdom. Some of its major overseas projects include the surveillance systems in Philadelphia Safe Communities in the US, Nuremberg railway station in Germany and a Brazilian World Cup stadium.

The US Senate passed the 2019 National defence Authorisation Act in August under which the US government will be banned from buying Chinese-made surveillance equipment from several Chinese firms including Hikvision and Hangzhou-based Zhejian Dahua Technology. Hikvision has previously supplied equipment to the US Army to monitor its base in Missouri and to the Memphis police department, according to The Wall Street Journal.

In September, Australian media reported that devices from Hikvision and Dahua were being used for spying in the country. The two companies supply most of the surveillance cameras installed in Australia, according to the report.

END

HONG KONG/CHINA/SATURDAY

It begins: Massive protests/tear gas deployed as thousands fill the streets opposing China’s National Security Law

(zerohedge)

Hong Kong Erupts: Tear Gas Deployed As Thousands Fill Streets To Oppose China’s National Security Law

After months of relative quiet amid the coronavirus pandemic, thousands of protesters flooded the streets of Hong Kong, defying the city’s ban on gatherings to voice their opposition to a new “national security” law proposed by Beijing which would threaten the city’s autonomy and the civil liberties of its residents.

The protesters, most of whom could be seen donning masks, were hit with tear gas less than an hour after the start of the demonstrations which resulted in at least 120 arrests – including 40 of which were people accused of blocking Gloucester Road. A water cannon truck was also deployed according to SCMP.

The first rounds of tear gas were fired around 1:30 p.m. local time outside  Causeway Bay shopping mall. 20 minutes later, the first arrest was made, according to the Epoch Times.

 

Via @CP24

Beijing unveiled details of the law on Friday, which would most likely grant the Chinese Communist Party (CCP)’s security services jurisdiction over matters in Hong Kong – which drew condemnation from Taiwan, the United Kingdom, the EU, Australia, Canada and the United States, according to the report.

Shortly after the announcement, Hong Kong residents took to social media to organize a march on Hong Kong Island from Causeway Bay to Wan Chai at 1 p.m. local time on Sunday.

end

HONG KONG/SUNDAY

Lawmakers from 23 countries unite against China’s assault on Hong Kong democracy.

(zerohedge)

200 Lawmakers From 23 Countries Unite To Resist China’s Latest “Comprehensive Assault” On Hong Kong’s Autonomy

As the Politburo Standing Committee prepares to weave a new “National Security” law banning all “subversive” activities linked to “foreign” influences or “terrorism” – a popular byword for the pro-democracy movement on the mainland – into Hong Kong’s Basic Law, 200 lawmakers from nearly two dozen countries have spoken up to condemn the decision, which was set in motion during China’s two-day National Party Congress, which was held in Beijing this past week 2 months after it was initially scheduled to take place.

The letter reads:

We, the co-signed, write to express grave concerns about the unilateral introduction of national security legislation by Beijing in Hong Kong.

This is a comprehensive assault on the city’s autonomy, rule of law, and fundamental freedoms. The integrity of one-country, two systems hangs by a thread.

It is the genuine grievances of ordinary Hong Kongers that are driving protests. Draconian laws will only escalate the situation further, jeopardizing Hong Kong’s future as an open Chinese international city.

If the international community cannot trust Beijing to keep its word when It comes to Hong Kong, people will be reluctant to take its word on other matters. Sympathetic governments must unite to say that this flagrant breach of the Sino-British Joint Declaration cannot be tolerated.

The list includes several prominent members of the Senate from both parties, including Ted Cruz, Marco Rubio, Sen Bob Menendez and others. As we noted in our initial coverage, the party congress voted to approve a resolution calling for the Standing Committee to make the necessary constitutional changes just a day after the Senate voted unanimously to approve a new bill threatening to de-list Chinese companies from American securities exchanges if they don’t comply with US auditing standards, which Chinese companies have heretofore refused, creating tremendous opportunities for people like Carson Block to get tremendously rich, while the retail bagholders who invest in companies like Luckin Coffee.

Last week, the US added more than 30 new Chinese companies to a blacklist over human rights abuses, then an ‘independent’ security firm leaked a report revealing how many of America’s largest tech companies were providing services for these firms (despite Google employees qualms about the company’s work for the Defense Department being “amoral”).

But we digress.

China’s crackdown, coming in the middle of the coronavirus outbreak that Beijing (either wittingly or unwittingly) unleashed upon the world, is a brazen gesture that President Xi has no intentions of “playing nice” with the West – at least, not anymore. While some might blame President Trump for opening “Pandora’s Box” by starting the bilateral trade war, others, including the last British governor of Hong Kong – who was present when the British flag was lowered for the last time over the city-state’s seat of government back in 1997 – insist that the West has been chasing a “pot of gold” – unfettered access to Chinese markets – that never really existed.

Chris Patten, the former HK governor, claimed during a recent interview that he has believed for years that Beijing never had any intention of “liberalizing” its economy, or its political system, as the British hoped when they initially decided to hand Hong Kong back to the CCP.

Now, with President Trump cancelling arms control treaties and plotting the first US nuclear test in 30 years, investors like David Tepper now see an armed conflict between the US and China as a tail risk that – however remote – may be worth hedging against.

In Hong Kong, hundreds of pro-democracy protesters hit the streets on Sunday, though their numbers were much smaller than the crowds that battled with police last fall.

We suspect there’s more to blame than just the coronavirus for that.

end
HONG KONG/CHINA/SUNDAY:
China has no intention of changing as they warn the USA of meddling in Hong Kong and Taiwan affairs..in other words we have our new cold war(zerohedge) 

“China Has No Intention Of Changing” – Foreign Minister Warns US Meddling In Hong Kong, Taiwan Risks “A New Cold War”

In an interview published yesterday, the last British governor of Hong Kong warned that the West “must stop kowtowing to Beijing”, particularly when China’s Communist government flouts international law and agreements. Since the earliest days of the Jiang Zemin era, which saw China transform into an industrialized superpower, Beijing has facetiously talked a good game on economic and political liberalization, but only as a ruse to mollify the West, allowing corporate interests to cement China’s status as a critical component of the global financial and trade system, even if its currency, the yuan, has yet to truly take off as an international currency.

Perhaps inspired by President Trump’s aggression, Beijing has officially dumped these pretenses as President Xi moves to crack down on widespread political dissent in Hong Kong. And in keeping with this newfound posture of aggression,one of China’s most senior foreign policy officials – Foreign Minister Wang Yi – warned on Sunday that the US and its allies should abandon their “wishful thinking” about liberalizing China, while threatening to respond with violence should any foreign government interfere with China’s assertions of sovereignty in Hong Kong and Taiwan,a de facto independent state that Beijing nonetheless views as a rebellious province.

“China has no intention to change the U.S., nor to replace the U.S. It is also wishful thinking for the U.S. to change China,” Wang said Sunday during his annual news briefing on the sidelines of National People’s Congress meetings in Beijing. He also criticized the U.S. for slowing its nuclear negotiations with North Korea and warned it not to cross Beijing’s “red line” on Taiwan.

Many Americans don’t understand the level of resentment Hong Kongers feel toward the Communist government in Beijing. Even many Hong Kongers who assiduously avoid controversy still see Beijing as an oppressor; on the other side of the fence, conservative Communists inside the party have criticized Hong Kong’s ‘poor social foundation’, and advocated for Beijing to take swift action to “correct” this. These clashing attitudes have stirred fears of PLA tanks rolling through the streets of what was once considered a truly “international” city in a bloody re-run of the Tienanmen Square massacre.

Wang Yi

As Bloomberg explains, “the U.S.-China relationship has worsened dramatically in the past few months as America became one of the countries worst hit by the coronavirus pandemic, which was first discovered in the Chinese city of Wuhan. The world’s two biggest economies have clashed on a range of issues from trade to human rights, with Beijing’s latest move to tighten its grip on Hong Kong setting up another showdown between U.S. President Donald Trump and China’s Xi Jinping.”

Beijing was alarmed by Secretary of State Mike Pompeo’s decision to congratulate Tsai Ing-wen won a second term as Taiwan’s president (a government that Beijing doesn’t recognize, and has effectively shut out from international organizations like the UN, WHO etc.). Since President Nixon met with Mao in the early 70s, kick-starting China’s opening to the world, the US has observed the “One China” policy of respecting Beijing’s view that Taiwan is a part of China. In recent years, Beijing has increasingly used its legal might to punish companies – especially airlines – if they neglected to note that Taiwan and Hong Kong were “part of China” on maps and company websites and official literature.

During his speech, Wang warned the US not to interfere with China’s new National Security law in Hong Kong, while reiterating warnings that the reunification of China and Taiwan is “historically inevitable” and that by meddling in the relationship, the US is risking “a new Cold War”, and perhaps even an armed confrontation.

“Some U.S. political forces are taking hostage of China-U.S. relations, attempting to push the ties to the brink of so-called ‘new Cold War,'” Wang said. “This is

dangerous and will endanger global peace.”

Wang cautioned the U.S. “not to challenge China’s red line” on Taiwan, after Secretary of State Michael Pompeo broke with tradition last week and congratulated the island’s President Tsai Ing-wen on her second-term inauguration. Beijing considers Taiwan a province.

“Reunification between the two sides of the Strait is an inevitable trend of history, no one and no force can stop it,” Wang said.

And he blamed Washington for the stall in historic negotiations between the U.S. and North Korea, saying China hoped to see continued interaction between the two sides. The comments came after North Korean leader Kim Jong Un – who has faced questions about his health – made his first public statement in three weeks, ordering military leaders to increase the country’s “nuclear war deterrence.”

If that’s not enough reason to believe the unraveling of the US-China relationship has passed a point of no return, the US Department of Transportation accused its counterpart in Beijing of making it purposefully difficult for American airlines to resume operations in China. President Trump imposed a ban on Chinese travelers that he has repeatedly praised as a critical component of the administration’s response. Since the beginning, Beijing has criticized these travel restrictions, and is now taking steps to exact its revenge on the US by lashing out at American companies.

Here’s more on that from Bloomberg:

The DOT late on Friday announced that China had violated a bilateral agreement allowing airline service between the two countries by failing to respond to requests by Delta Air Lines Inc. and United Airlines Holdings Inc.

China “impaired the operating rights of U.S. carriers and denied them the fair and equal opportunity to exercise their operating rights,” the department said in a notice posted to a government website.

The order stopped short of imposing any restrictions or penalty on the four airlines from China serving U.S. markets, but is a warning after repeated objections by the U.S. failed to get action, the government said. It requires the Chinese carriers to notify the department of their schedules and any proposed changes they intend. China’s embassy in Washington didn’t immediately respond to an email requesting comment.

[…]

“The department is taking this step because Chinese aviation authorities have imposed restrictions on U.S. carriers that are making it impossible for them to resume passenger services between the US and China and operate those services at levels that they have a right to operate under the U.S.-China air transport agreement,” the department said in a statement on Saturday.

None of the major airlines opted to comment for the Bloomberg story, but given the precarious state of business right now, this is probably one more problem that they don’t need.

United had no comment on the DOT order, spokesman Frank Benenati said in an email. “We look forward to resuming those flights — to the benefit of our customers and communities in the U.S. and China — when the regulatory environment allows us to do so,” he said.

Delta didn’t immediately respond to a request for comment.

At least US airlines – which received some federal bailout money over the objections of some respected investors – can rest assured that the White House is going to bat for them and their bottom line.

END
CHINA/MONDAY
To further annoy Trump, China sets its yuan at its weakest level since 2008
(zerohedge)
Monday morning trading in the yuan:
Onshore: 7.1362
Offshore: 7.1519

China Sets Yuan Fix At Weakest Since 2008

Just hours after China’s Foreign Minister Wang Yi warned that “some” in America were pushing relations to a “new Cold War”, Beijing made it clear how it intends to retaliate in this new paradigm: by doing the one thing that infuriates Trump more than anything, devaluing its currency.

After the PBOC fixed the yuan at 7.0939 on Friday, the PBOC set the Monday USDCNY midpoint at 7.1209, which was not only weaker than the expected fix of 7.1205 but the weakest fixing since 2008.

Zooming in on the past 10 days shows the sharp bounce in the past three days in both the fixing, the onshore and the offshore yuan, the last of which is now just shy of the lows hit during the March crash, if still below the all time lows hit on Sept 2, 2019 when the USDCNH spiked as high as 7.1940 in response to the escalating trade war.

That said, some – such as Bloomberg – had a different expectation for the fixing, which they saw as 7.1220, which would in turn mean a stronger than expected fixing, and one suggesting that the PBOC has activated its countercyclical buffer to slow the drop of the onshore yuan as the offshore yuan slumps. Their conclusion, which is counter to sellside expectations, is that this marks a shift in the PBOC’s countercyclical adjustments and “could be seen as a warning shot toward speculators betting on a weaker yuan.”

Whether Bloomberg’s fixing model is correct, or consensus expectations for a stronger fix are right, remains to be seen however if indeed it is China’s stance to devalue the yuan in response to the sharp deterioration in Sino-US relations then expect the offshore yuan to take the lead and to keep sliding, giving the PBOC cover for further devaluation and telegraphing how it plans on responding to the “cold war” and any future escalations by the US.

Ironically, the very same Bloomberg, in a different report, notes that “the spread between spot USD/CNH and USD/CNY is likely to become more volatile in coming days, driven by a widening bias. A combination of U.S.-China political tension and unrest in Hong Kong will provide a negative feedback loop into the offshore yuan.”

The PBOC can be expected to maintain a tight grip on the daily yuan fixing and enforce the 2% fluctuation range. But there is no such constraint for the offshore yuan, which is free to roam, only being pulled back into line by FX arbitrageurs or in response to speculation about central bank intervention.

As author Mark Crankfield writes, “the CNH forwards curve can also be expected to see an upward trajectory. The spread spiked to more than 10 big figures several times during previous periods of yuan turbulence. A similar outcome is likely in the near term, as investors consider what the threat of a new cold war will mean for risk assets.

One thing to note: the last time the offshore yuan was here, the S&P was at 2,300.

Finally, here is a reminder from Rabobank’s Michael Every why in the current environment of escalating hostility between the US and China, the only thing that matters is the Yuan, and why in the not too distant future, the Chinese currency may have a 10-handle in front of it.

This time last year, when we were all still going abroad regularly (right now just ‘outside’ is becoming a psychological barrier if I am honest) I was traveling with a presentation titled “Clause is Cause”. This argued that from a geostrategic ‘Von Clausewitz’ perspective, not a neoliberal “Let’s assume world peace” version, the US would at some point realise the USD/Eurodollar was a weapon it could wield vs. China, and when it did we would see three key strings cut: trade; tech; and then capital flows. The first was evident during the trade war – which has not been concluded is likely to get far worse soon; the second is also abundantly clear on a variety of fronts, much to Silicon Valley’s chagrin; and potentially, now we see the start of that third step – because if the US does block this first USD50bn going in, other such steps will follow, just as they did on the previously unthinkable idea of US tariffs on China.

CNH is right to be selling off, albeit in a traditionally limited fashion, because if you don’t buy from China and you don’t help China up the value-chain and you don’t invest in China then China is not going to be getting much USD liquidity at all. The US hawks probably don’t get the Eurodollar iron logic there; they are likely just pressing buttons in anger. The outcome would be the same nonetheless.

I can hear the market bulls and technocrats of the world saying “But China has USD3 trillion in reserves!” Perhaps. Most think it’s far lower than that. And not earning USD means you have to dig into that stockpile. And when you do, the PBOC either has to contract the local money supply (because every USD is backed by 7.xx CNY on the other side of the balance sheet) or it just creates new CNY anyway and supply-demand sees CNY move sharply lower – as we have been seeing in all other EM FX. Looking at the drop in BRL, ARS, ZAR, TRY, etc., or even THB,this would be how we would get to the ‘unthinkable’ 8 (9? 10?) handle in CNY. That would also crush those other EM crosses in tandem – and AUD and NZD, as the former tries to navigate its own geopolitical spat with Beijing.

And so with the Fed having taken over most US capital markets which have now lost most if not all of their discounting and signaling capabilities, keep an eye on that USDCNH: ironically, it may be the last true market stress indicator left.

end
CHINA/TUESDAY
A very interesting read:  Is Trump too weak to respond to the crisis in Hong Kong?
(zerohedge)

“The US Is Bluffing”: China Claims Trump Too “Weakened” By Pandemic To Intervene In Hong Kong

In his overnight market commentary, Rabobank’s Michael Every laid out an interesting hypothesis why markets continue to fade the risk of a serious escalation in tensions between the US and China: “within serious HK money circles there is absolute certainty that the US is now an EU-style paper tiger and has no stomach for a real fight, and that Trump is so beholden to Wall Street that he won’t dare act.

And while Every himself disagrees with this sanguine assessment, saying this stance “captures the self-confidence in Beijing but utterly fails to capture the bipartisan anger in DC, or the fact that both sides are using Beijing as a stick to beat each other with in the 2020 presidential election, or that the US has financial weapons as fearsome as its military, or that the Fed is there to prop up the stock market anyway”, he appears to have a point regarding China’s “self-confidence.”

In an editorial published in China’s Global Times, the authors claim that Trump is indeed nothing but a paper tiger and that “US talk of Hong Kong a nothingburger” in response to Beijing’s formulation of a national security law. To be sure, the article is filled with the usual jingoist allegations, first claiming that “the US is again leading the Western camp in besieging China” a stance that is driven by the “compression of Western values”, resulting from “the rise of emerging markets and developing countries becoming increasingly independent.”

The editorial then makes a rather valid point that how China frames national security in the context of Hong Kong is entirely its own matter and not that of the US:

Fighting the national security law for Hong Kong is not a universal value and cannot withstand serious scrutiny. Isn’t national security the top priority for each and every country? Washington has always used national security as an excuse to suppress normal commercial activities. Saying that the national security law in Hong Kong hinders the city’s high degree of autonomy and ends its freedom will hardly fool all Westerners, let alone manipulate the whole international community.

China indeed has every right to pursue whatever it sees as its national interest; the real question is who will suffer more from the explicit return of Hong Kong under China rule. And while Trump has claimed that Hong Kong will be crippled as a financial gateway to China should it lose its special trade status with the US, China counters that the US is no longer a critical partner, real source of foreign funds (a curious position considering China’s capital account is about to turn negative and will, more than ever, rely on outside sources of capital). Instead, the Global Times argues that as Hong Kong’s relationship with the US fades, it will be replaced by a more powerful one with China:

The biggest pillar for Hong Kong’s status as an international financial center is its role as a window to the Chinese mainland as well as its special relationship with the mainland economy.

The special trade status given by the US is important, but is not a decisive factor to determine whether Hong Kong is a financial center or not. As long as the economy in the Chinese mainland keeps booming, Hong Kong will not decline. If the US changes its policy toward Hong Kong, that will result in a lose-lose situation. But Hong Kong will be able to adjust and maintain its prosperity with the support of the Chinese central government.

But what is most remarkable about the op-ed is the view that as a result of the US being “entangled” with the coronavirus epidemic, which has claimed 100,000 American lives, Trump will be unable to mobilize the “tools and resources” he needs to intervene externally:

As the US is entangled in the COVID-19 epidemic, its actual ability to intervene externally is weakening. The White House claimed it would impose sanctions on China, but the tools and resources at its disposal are fewer than those it could mobilize before the outbreak. It is only bluffing.   

If this is indeed the fundamental position of China’s leadership re Covid-19 which just “slipped” through in an op-ed written by a state-owned newspaper – that the US’ own fight with the pandemic has left it too weak to respond to foreign policy challenges – it would provide China with a convenient motive to make sure the pandemic which started in Wuhan goes global and cripples any ability by the US to oppose China’s imminent intervention in Hong Kong.

The entire Western world will not follow the US. China is a huge market and the US is unable to provide enough compensation to offset the losses if Western countries become alienated from China. Values still have a strong appeal, but they cannot replace the fundamental interests of a country in pursuit of development. Besides, China has not intervened in the way of life of Western countries. Taking sides based on values at a disproportionate economic cost is not supposed to be the logic of international relations in the 21st century.

Judging by how most European countries have acted vis-a-vis China in recent years, vocally objecting to this and that in the front while assuring Beijing that nothing will change in the back, not to mention countless US tech firm just begging for access to the Chinese market, this observation is spot on.

The author then writes that “as long as China acts based on facts, resolutely formulates the national security law for Hong Kong, strictly limits the law’s scope to ensure both national security and the city’s stability under the “one country, two systems” principle, while safeguarding the basic rights and interests of the Hong Kong people”, which of course is all just the propaganda strawman that Xi Jinping is using to justify a historic move in Hong Kong, “China will take the initiative in Hong Kong affairs” and “the US stirring of Western public opinion will lead to nothing.”

 end
Michael Every..

Rabobank: “Public Anger Is As High In Many Other Countries As It Is In The UK”

Submitted by Michael Every of Rabobank

“Still arrogant and offensive”.Not today’s Daily – again, or not not deliberately and/or any more than yesterday.

Rather those four words reflect the entire British media’s response to PM Boris Johnson’s special advisor Dominic Cummings, who clearly broke the lockdown rules, but who then refused to apologise in a car-crash surreal press conference held in the sunny Downing Street rose garden, instead creating various excuses to justify his behaviour.

Indicative of how the public anger over Covid-19 and the lockdown has been channelled into this issue, the on-line version of the pro-Conservative Daily Telegraph has Cummings as the first TEN stories, including “Do not drive to test your eyesight like Dominic Cummings, police warn” and, more worryingly, “Beach-goers cite Dominic Cummings breaches as reason for packed resort”; he is the first SEVEN stories in the left-leaning Guardian; and via Twitter I even received a cut-out wearable Cummings face mask, with instructions that using it gives one license to break the lockdown rules at will.

All of this pushed news that “Project Birch” will now see the UK government take equity stakes in key industries, as in France and Germany, starting with carmakers and airlines right off the front pages. Somehow this Rubicon-crossing return to industrial policy in Britain was far less newsworthy on a quiet Bank Holiday/Memorial Day. The public and press both wanted to vent instead.

I would imagine that public anger is probably as high in many other countries as it is in the UK: the shock and strain of lockdown; the fear and/or reality of actual and looming economic deprivation; the lingering danger of the virus itself – all of this needs an outlet. In country after country we will likely see governments either be the conduit for this anger, or provide one externally, with unpredictable political and geopolitical consequences.

An obvious example is still the US and China. Yesterday US National Security Advisor O’ Brien publicly repeated reports that China has been engaging in espionage on US virus vaccine efforts. This generated a Chinese Ministry of Foreign Affairs tweet with equal politesse that read:

Interesting to hear some US official talking about the story of the vaccine. Is this the new normal logic that if anyone has something better than mine then it must be stolen from me? Remember, China has 5000 years of history while the US has less than 250.

More importantly, China’s acerbic Global Daily has just called US threats to impose sanctions on Hong Kong and China or to remove the territory’s special status a “nothingburger. This is because “as the US is entangled in the COVID-19 epidemic, its actual ability to intervene externally is weakening…it is only bluffing”. Moreover, “the entire Western world will not follow the US. China is a huge market and the US is unable to provide enough compensation to offset the losses if Western countries become alienated from China.” A more conciliatory approach was being taken by China this morning, promising that Hong Kong’s judiciary would remain independent under the new proposed legislation – to much scepticism from critics. However, we won’t have to wait long to see if the US is bluffing or not – and the market risks are still all in one direction.

One area where the Global Times may be right, however, is on the West not necessarily following the US. Yesterday saw the EU’s top diplomat Josep Borrell call for a “more robust strategy” towards Beijing. However, he also chose Memorial Day, which commemorates the many lives the US sacrificed to free Europe, to note “analysts have long talked about the end of an American-led system and the arrival of an Asian century. This is now happening in front of our eyes….pressure to choose sides is growing.” No doubt who the EU sees as ascendant in this struggle. Moreover, rather than going with the US, the EU should “follow our own interests and values and avoid being instrumentalised by one or the other.

This sounds rather like wanting to be a giant European Rick’s Café in ‘Casablanca’ as the rest of the world goes mad around it. Yet who is it who physically defends Europe in an uncertain world? It appears good ol’ mercantile Europe is unable to recall, even on US Memorial Day. Importantly, Borrell also noted that for the EU to successfully stand up to China it will require internal unity. How is that working out on the debt-sharing issue? “Play it again, Sam.

Indeed, is it realistic to say ‘not with the US or China’ when this is a binary choice both sides can impose? Consider that the Global Times just published another editorial for Australia stating: “If the Trump administration plunges the world into a ‘new Cold War,’ forcing China to take countermeasures against the US and its allies, it would be extremely dangerous for Canberra to become a player in a diplomatic club led by the US, given Australia’s high dependence on the Chinese economy. Once Australia is regarded as a supporter of the US in a ‘new Cold War,’ China-Australia economic ties will inevitably suffer a fatal blow.” When does the EU get the same missive?

The time for pretending that these binary geopolitical threats to markets–which are like a series of ‘Brexit votes’ waiting to happen–is over’; unless one thinks that both the US AND Beijing are bluffing despite the rise in public anger, arrogance, and offense.

end
Robert to me:
re Washington times article
This drive to war is insane. If it goes hot, Gates will get his wish of a 15%+ reduction in population.
We are already at war as the West recognizes the folly of making China the factory to tHe world. Even in a time when PPE is needed China cannot be depended on as a reliable supplier of quality much like their failures in many other areas.
War is being fought with redirected supply chains to other nations including consuming ones to shorten supply lines and gain stability in quality and supply which in turn causes new industries to return home. Having factories to make masks is fine but it becomes necessary to have the actual cloth manufacturing locally of in other lands for supply people are learning. Much of new industries and thus new efficiencies Will result from this. If England or Spain can make cloth for suits they can make cloth for PPE. The same as India will become a main supplier of cloth repurposed from cloth for shirts and dresses to alternative purposes creating new opportunities for business growth which China will resist. The fight for base supply will intensify, especially as countries seize the opportunity to add value to products. There is no reason why many factories in Central America cannot be repurposed to supply value added products instead of sweat shirts and the like. They have a ready supply of young cheap labor already accustomed to similar work. These countries will have an edge now on China as new competition. I would not discount Russia and other surrounding countries to get on on the act of component supply as they all seek to grow and will seize opportunities seen. In this regard, there is potential for new supply chain development in Eastern Europe to serve as a bridging supply line to the West. There is already evidence of this  in food supply. This will grow offering both packaging and commodity trade opportunities.
This struggle will cross over into technology where the likes of Huawei will find challenge not in just getting chips but customers as companies redirect purchases. This will affect even simple blueberry producers in Argentina who will fund China less of a market as new markets develop as a result of shifting wealth. Perhaps, some of the biggest losers in this fight will be commodity players, be they companies or countries who sole focused their efforts on China. Bad time to be a coal supplier to China as sales will be trimmed and profits lost. And it is not say that this slack will be picked up by other emerging Nations as their power needs are not as base. This will allow many new opportunities for growth which will be seized by western nations far faster than China who is now evolving a defensive strategy. In part due to the reality of a shortage of USD caused by lessened sales needed to fuel debt service and empty promises across the globe of Chinese mirage wealth.
And many a island or port centric nation who based a future on China container travel is in search of a new strategy.https://www.washingtontimes.com/news/2020/may/24/us-china-brink-new-cold-war-beijing-warns/
end
CHINA/USA//LATE TONIGHT

S&P Drops Below 3,000 On Report US Considering “Transaction Controls, Asset Freezes” On Chinese Officials, Firms

In the latest rehash of the exact same headline a variation of which we have seen every single day for the past two weeks, moments ago Bloomberg reported that The Trump administration is considering “a range of sanctions on Chinese officials, businesses and financial institutions” over Beijing’s accelerating effort to crack down on Hong Kong.

While there was nothing materially new in this particular Bloomberg report that other newswires did not already report previously, it claims that the Treasury could impose controls on transactions and freeze assets of Chinese officials and businesses for implementing a new national security law that would curtail the rights and freedoms of Hong Kong citizens.

On the other hand, and feeding the growing speculation we discussed yesterday that the “bluffing” US has become a paper tiger and will not actually do anything besides jawbone, the report also notes that while discussions are ongoing “no decision has been made on whether or how to employ the sanctions.”

Earlier in the day, White House press secretary Kayleigh McEnany said that Trump is “displeased” with China’s efforts and “that it’s hard to see how Hong Kong can remain a financial hub if China takes over.” She also declined to elaborate about specific actions the president was considering, because so far it really has been just non stop chatter.

4/EUROPEAN AFFAIRS

GERMANY/DEUTSCHE BANK//SATURDAY

Deutsche bank is now asking its top managers to skip this month’s salary as an act of solidarity.

(zerohedge)

“The Latest Stage In Our Descent To The Bottom”: Deutsche Bank Asks Top Managers To Skip Month’s Salary In Act Of “Solidarity”

Last week we reported that Wall Street bonuses are expected to drop by up to 30% this year due to the deep cuts to revenues recorded by banks and hedge funds earlier this year as a result of the coronavirus pandemic. For some (still employed) Deutsche Bank traders the news is even worse: they may have to go without a monthly paycheck too.

According to the FT, the German bank which has teetered on the verge of failure since 2016, has asked hundreds of its top managers to waive a month’s salary in an act of “solidarity” to help “share the pain” as coronavirus wreaks historic damage on the German economy. The bank is reportedly conscious of the optics of large pay packets at a time when millions are losing their jobs or being furloughed.

In a conference call on Thursday, several hundred of the bank’s designated “leaders”, including many of those one level below the senior management committee, were urged to take the voluntary pay cut, people familiar with the matter told the Financial Times.

“As our restructuring plans progress, the management board and the group management committee have decided to lead by example and give a broader group of senior managers the opportunity to be part of this initiative,” said Deutsche in a statement as it “volunteered” senior managers to agree (not that they have any choice once singled out) to a one month pay cut. “This is a voluntary measure in the entrepreneurial spirit and discipline [with which] we are running our company.”

So far the bank does not know how many will participate in the voluntary program; and since there is practically no reward besides some truly pointless “virtue signaling” for any workers who agree to skip a month’s wage – especially since all DB employees are unlikely to get any material bonus this year again – we doubt the uptake will be significant.

Which is not to say there will be no volunteers at all: the nine members of Deutsche’s management board, as well as those on the group management committee, have already agreed to forgo one month of their fixed pay. Of course, they are doing so purely for optical reasons so they have some ammunition for the time when Deutsche Bank requests a bailout and the bank can demonstrate its “solidarity” with the suffering German people.

Chief executive Christian Sewing told investors at the bank’s annual shareholder meeting on Wednesday that the decision was part of an acceleration of its cost-cutting programme. “We act in this way because we in the management . . . see ourselves as responsible business owners,” he said. What he really meant is that the voluntary wage cuts will soon be involuntary…  and far more widespread as the German lender proceeds with another round of mass layoffs in the coming months.

In the first quarter, Deutsche recorded yet another loss after tripling reserves for bad loans, as Europe’s economy entereed a deep recession amid the lockdown to slow the pandemic. It won’t be the last. Despite a one-time jump in investment bank trading revenue, executives admitted their ambition to finally reach a pre-tax profit this year would be difficult to achieve.

One of the managing directors asked to take a pay cut summarized it best: “Staff are unhappy at this latest stage in our steady descent to the bottom,” while a second person familiar with the internal discussions said that such a voluntary move would be “akin to a gift to the bank.”

END

GERMANY/LUFTHANSA

German government has now offered a $10 billion bailout for Lufthansa

(Freightwaves/Kulish)

German Government Offers Lufthansa $10 Billion Bailout

Authored by Eric Kulisch of FreightWaves

After fully privatizing Deutsche Lufthansa AG a quarter-century ago, the German government will become a minority owner in an effort to rescue the country’s largest airline from economic devastation wrought by coronavirus travel restrictions.

The airline group, which includes Lufthansa Airlines, SWISS International Air Lines and Austrian Airlines, agreed Monday to a 9 billion euro ($9.8 billion) bailout package in which the federal government will receive a 20% stake in the company in return for two board seats and veto power over any hostile takeover bid. Lufthansa agreed to limit dividends and management pay.

The government will also give Lufthansa 5.7 billion euros in nonvoting capital, part of which could be converted to an additional 5% stake in the event of a hostile takeover or the company is unable to make coupon payments. The loan carries interest of 4% through 2021 and increases to 9.5% by 2027.

Lufthansa will separately receive a 3 billion-euro three-year loan from a quasi-private lender and private banks.

Germany  said it planned to sell its shares by the end of 2023.

The deal, which is designed to preserve thousands of jobs, still requires approval by Lufthansa shareholders and the European Commission.

Lufthansa has been negotiating for weeks with the government on an emergency aid package. Meanwhile, it has taken drastic self-help measures such as slashing about 95% of its schedule, encouraging workers to take unpaid leave and accept fewer hours, cutting training, decommissioning aircraft, terminating aircraft operating leases with third-party carriers, and halting other discretionary expenses. It also is converting passenger planes for dedicated cargo operations to earn revenue.

The German aid represents the largest rescue for any airline so far. The U.S. government has approved $25 billion in direct grants for domestic passenger carriers to prevent involuntary furloughs through September, with another $25 billion in loans also available. American Airlines is the largest recipient of U.S. aid at $5.8 billion, followed by Delta Air Lines at $5.4 billion.

The International Air Transport Association has estimated airlines are on track for revenue to be $314 billion lower than budgeted this year. It has urged governments to provide cash infusions, loans and tax relief for the industry, saying it is a foundational part of the global economy and will be essential to restarting economic activity once the pandemic calms down.

Some airlines are already in trouble. Virgin Australia and Latin American carrier Avianca recently filed for bankruptcy protectionEl Al warns it could fold without a bailout from Israel’s government, and U.K. regional carrier Flybe has ceased operations.

end
ECB//THIS IS BIG
Potential problems if the ECB is prepared to run QE without the Bundesbank. Maybe Germany leaves the Euro?
(zerohedge)

“A Moment Of Truth For The Euro”: ECB Preparing To Run QE Without Bundesbank

The shape of Europe’s massive monetary injection may change dramatically in the coming months. According to Reuters, citing four sources, the ECB has drafted contingency plans to carry out its multi-trillion QE programme without the Bundesbank in case Germany’s top court forces the main participant in the scheme to quit.

Not only is the European central bank planning on how to continue QE without German – mostly by having other European central banks step in although it is unclear just how effective this would be – but, in a worst-case scenario, the ECB would also launch an “unprecedented legal action against the German central bank, its biggest shareholder, to bring it back into the program.”

According to Reuters, such a moves would mark a moment of truth for the euro”, testing Germany’s commitment to a currency it played the biggest role in creating (for a simple reason: Germany was the primary beneficiary for years as eliminating the chronically strong Deutsche Mark allowed German exports to flourish), and forcing it to tackle some deep-seated reservations within the country about ECB policies.

As reported earlier this month, Germany’s constitutional court gave the ECB an ultimatum until early August to justify its massive buying of government bonds or continue the scheme without the Bundesbank, which carries out more than a quarter of the bond purchases. Without the Bundesbank, the ECB’s QE is effectively done.

While consensus remains optimistic, expecting the legal challenge from the court in Karlsruhe to be resolved by the Bundesbank itself by demonstrating that the policy was appropriate and addressing concerns about its side effects, staff at the ECB and the euro zone’s national central banks are preparing for what one source described as the “unbelievable”: a scenario in which the court bans the Bundesbank from taking part in the purchases.

In that case, the ECB, or less likely the other euro zone central banks, would take up the Bundesbank’s quota in the Public Sector Purchase Programme (PSPP) and buy German bonds, although with far fewer non-German bonds in private hands in Europe, the European QE program would have to be forcibly shrunk on very short notice.

There is one loophole: to allow other central banks to buy Bunds, Europe’s “no risk sharing” principle – one which the Bundesbank itself insisted upon when the programme was launched in 2015 – would have to be broken. Until now each national central bank bought its own government’s bonds and the risk is shared over the limited amount of debt bought by the ECB itself.

The ECB has slowed down German bond purchases since the start of the coronavirus pandemic to focus its firepower on Italy, which has come under pressure in the bond market as the outbreak has savaged its already shaky public finances. Indeed, according to Reuters, Bundesbank purchases of German sovereign debt, or Bunds, totaled just 628 million euros ($688 million) in April, or just 2.3% of the government bonds bought under the PSPP that month.

There is a bigger problem: even if the Bundesbank quits the scheme, leaving Germany’s Bunds out is “not an option” given that they serve as the de facto euro zone benchmark for private investors thanks to their top-notch credit rating and ample availability. Nobody would buy Italian debt just because German bonds were not available.

But the biggest risk should this plan be activated is that cutting off Germany from the ECB’s flagship stimulus program would invite speculation about a euro zone break up, which the ECB has been trying to quash since the euro crisis of 2010-12. In the meantime, the ECB would probably launch an infringement procedure against the German central bank for failing to fulfil its obligation as a member of the Eurosystem if it has to stop buying bonds, the sources said.

If the Bundesbank then failed to comply, the ECB could take the matter to European Court of Justice (ECJ), in what would be the first such case since the euro was created in 1999. The ECJ has already upheld the ECB’s QE but its ruling was disregarded by Germany’s constitutional court, opening a further conflict German and European Union institutions.

All of this is a worst case scenario: the German government has shown optimism that any such scenario can be avoided. Chancellor Angela Merkel told senior officials from her party earlier this month that the issue was “solvable” if the central bank explained the plan.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISRAEL

tensions explode as Israel blocks the Aqsa Mosque during a Covid lockdown

(zerohedge)

Watch: Tensions Explode As Israel Blocks Aqsa Mosque On Eid Holiday During COVID-Lockdown

The Muslim holy day of Eid comes at the end of Ramadan, and could be somewhat comparable to Easter for Christians in terms of importance on the Islamic calendar.

The eve of Eid fell on Saturday, creating tensions at al-Aqsa Mosque in Jerusalem as worshipers pressed their way into the area which sits atop Temple Mount, given Israeli police attempted to prevent a mass gathering amid national coronavirus lockdown measures.

The situation turned explosive in East Jerusalem as Palestinians were prevented from entering, leading to running violent clashes with police.

It comes also amid growing Palestinian anger at Israeli PM Netanyahu’s plans to push forward in annexing large parts of the West Bank, notably the Jordan Valley, as part of Trump’s ‘deal of the century’.

And there’s already been running clashes with police in and around Jerusalem related to Israeli authorities closing down places of worship – mosques, churches, and synagogues alike – amid the coronavirus pandemic.

In many places across the Gaza Strip and occupied West Bank over the weekend Palestinians reportedly performed what’s called Eid al-Fitr prayers marking the holiday in open squares and streets due to pandemic safety measures.

Though the Muslim holiday is typically festive, it was a different story in East Jerusalem, were scores were reportedly arrested amid the clashes with Israeli police.

After Israeli authorities have declared one of Islam’s holiest sites “closed” – along with local Muslim clerics – Palestinian activists declared the Israelis didn’t have the authority to do so:

The whole region is on edge as both Hamas and PA leadership under Abbas have hinted at preparations for a new intifada, after rejecting the Trump ‘peace plan’ and Tel Aviv’s push to annex parts of the occupied West Bank as part of the deal, which the Palestinians complain they weren’t privy to in the first place in terms of negotiations and discussions.

After running clashes in East Jerusalem a number of people were seen doing prayers at gates and checkpoints outside the Temple Mount area while face-to-face with Israeli police lines.

Controversially, it appears the Muslim clerics overseeing al-Aqsa have complied with the ban on large worship gatherings there.

This after even Mecca in Saudi Arabia closed its doors to Muslim pilgrims over the past two months for what’s believed to be the first such instance in history.

END

TURKEY/GREECE

Turkey invades a small section of land on the Turkey/Greece border

(AlmasdarNews)

Greece Charges Turkey With ‘Land Invasion’ After Troops Cross River, Raise Turkish Flag

Via AlmasdarNews.com,

The Greek government recently accused Turkey of seizing some of its territory along its eastern border.

Turkey responded on Saturday by stating that it would not allow de facto borders after Athens complained to Ankara that Turkish forces had seized land at the course of the Evros River that separates the two countries.

 

Clashes involving refugees/migrants at Turkey’s Pazarkule border crossing with Greece’s Kastanies, near Edirne, Turkey in prior months, via Reuters.

A statement by the Turkish Foreign Ministry said, “Ankara informed Greece that the river course has changed significantly for natural and artificial reasons, since 1926 when the borders were established, and that the solution requires technical coordination.”

The Daily Mail described of the crisis:

Turkish troops have invaded and occupied a small patch of Greek land Greece on their contested border. 

Around 35 soldiers marched on to a floodplain site on the east bank of the River Evros at Melissokomeio yesterday.

Turkish soldiers and police special forces now have a solid presence within the Greek territory and have camped in the pocket of Apiary at Feres, reports Greek site Army Voice.

At the camp there is now a small Turkish flag flying from a tree. Troops have rejected Greek demands to withdraw. It comes weeks after thousands of Syrian refugees failed to break through into Greece.

 

Via The Daily Mail

The Turkish ministry said, “The dispute can be resolved through talks between the technical delegations of the two countries, which is a proposal submitted by Ankara to Athens, adding,” We will not allow any form of de facto on our borders.”

For his part, Greek Foreign Minister Nikos Dendias said last Wednesday that “the course of the river has changed”, indicating that there was tension between the two countries for this reason.

Greek media reported on Friday that Turkish forces occupied a piece of land that is usually submerged in water at this time of the year, located on the Greek side of the border.

end

6.Global Issues

Coronavirus update//Sunday morning

Portuguese Enjoy “First State-Sanctioned Beach Day” Since COVID-19 Outbreak Started: Live Updates

Summary:

  • Beaches reopen in Portugal as lockdown slowly eased
  • Kuwait raises fine for not wearing facemask to 16k
  • WaPo cites study claiming 24 states at risk for ‘second wave’
  • Italy weighs reopening different regions at different speeds
  • Many more young people dying in Brazil, developing world vs. US
  • PM Johnson pressured to fire top advisor for ‘violating’ quarantine rules
  • Japan to completely lift state of emergency nationwide on Monday
  • Cali court upholds state order to close churches
  • Brazil, Russia in No.2, No.3 spots after US
  • Russia case total tops 335k
  • New York reports fewer than 100 deaths for 1st time since March
  • Long Island might reopen as soon as Wednesday
  • Nearly 9% of prisoners in Michigan test positive

* * *

Update (1415ET): While millions of Americans spend MDW trapped inside, the Portuguese are enjoying their first weekend back at the beach.

Reuters reports that families and friends flocked to the country’s beaches with surfboards and picnic baskets in tow on Saturday for the first “officially state sanctioned beach weekend” of the year.

Portugal, with its 10 million pop., reported just 30,500 cases, and 1,300 deaths. In both cases, it’s outbreak wasn’t nearly as devastating as neighboring Spain.

Portugal’s state of emergency began on March 18, and after six weeks, the government started lifting restrictions in 15-day intervals earlier this month.

Beach- goers interviewed by Reuters claimed that “most [people] are behaving” though, of course, they managed to find someone who went on the record with their worries about the possibility of the lockdown being reimposed in June.

“It’s so great to see the sea and get some sun after two months,” said Catarina, who arrived to Carcavelos Beach, half an hour from Lisbon, at 9 a.m. with her husband and daughter.

But despite her relief, Catarina wasn’t sure this newfound freedom could last long.

“Most are behaving … but there are a lot of groups, and that’s what causes contagion, isn’t it? I don’t know, by next month I think we’ll all be back in our homes,” she said.

The government, for its part, has promised to continue with the reopening so long as the numbers keep falling. So far, instances where lockdowns have been reimposed are rare – but it has happened.

* * *

Update (1300ET): As the outbreak in Iran wanes, Gulf States, including tiny Kuwait, are having a surprisingly hard time keeping the virus from spreading, despite strict curfews and mandatory mask laws. On Saturday, Kuwait recorded 900 new cases of the novel coronavirus, raising the country’s infection tally to 20,464, the Kuwaiti news agency KUNA reported. The Health Ministry also announced 10 more deaths from COVID-19, raising Kuwait’s death toll to 148. Meanwhile, not wearing a facemask is punishable by jail, or a fine up to $16k.

Meanwhile as the number of new cases in Italy ticked higher, the government is weighing whether the next phase in Italy’s relaxation of emergency measures may proceed at different speeds in various zones, with some northern areas temporarily excluded from a reopening.

* * *

We begin what looks to be a dreary Memorial Day Weekend with a new study amplified by the Washington Post claiming that roughly half of US states actually remain at risk for a serious rebound, as critics seize on the jump in new cases seen in Texas as justification that the state re-opened too early, even as the measures remain broadly popular within the state.

Georgia, too, has largely avoided the disastrous consequences promised by Dr. Fauci and many of the doctors and scientists regularly appearing as ‘independent analysts’ on MSNBC and CNN (while the doctors and scientists on Fox News largely praised what has turned out to be a winning political gamble by Georgia Gov. Brian Kemp.

A new model produced by researchers at Imperial College London estimated that the “R” figure – an estimate of the rate at which the virus is spreading in a given county or state – is above 1 (meaning the virus is still expanding) in 24 states. As some might remember, Imperial College’s models have already been proven to be flawed (not just incorrect, but critics have taken issue with certain parameters they argued were unrealistic).

Even WaPo acknowledges that the risk of a second wave of infections projected by the model fails to factor in social distancing, the wearing of masks, and other factors that might impact the spread of the virus. As Nicolas Kristof said earlier this week, “epidemiology is full of puzzles”.

In New York, Gov Cuomo announced during Saturday’s press briefing…

…that for the first time since March, his state has reported fewer than 100 virus-linked deaths, with 84 confirmed over the last 24 hours. That’s compared with 109 yesterday, as hospitalizations and ICU admissions also continued to decline.

“It’s a sign we’re making real progress and I feel good about that,” Mr Cuomo said, adding that earlier in the crisis a doctor had told him “if you can get under 100, I think you can breathe a sigh of relief.”

Cuomo said during the briefing that Long Island – ie Suffolk and Nassau Counties – could start reopening as soon as Wednesday as he pleaded with more younger people to get tested.

Over in the UK, where lockdowns have been much more strictly enforced than in the US, PM Boris Johnson is facing pressure to fire one of his most trusted advisors, Dominic Cummings, after Cummings purportedly violated the lockdown rules (according to reports in the famously pugnacious British tabloid press) to visit his parents. Cummings insists that he acted “reasonably” and didn’t violate the rules.

With Japan’s state of emergency nearing its end as the number of new coronavirus cases dwindles to mere dozens per day, scientists are wondering how PM Shinzo Abe managed to reap so much success with so littler effort. After imposing the order months after the rest of the US, Europe and China, Japan’s “State of Emergency” was always fairly lax since the constitution can’t prohibit businesses from operating or Japanese people from leaving their homes.

According to Japanese media reports, Abe is planning to lift the last remnants of his state of emergency order, which mostly affected the country’s worst-hit areas like Tokyo and nearby prefectures, as well as Hokkaido.

Per the Japan Times:

After observing the situation over the weekend and hearing opinions from health experts, Prime Minister Shinzo Abe will formally decide what to do with the emergency for Tokyo and Hokkaido, as well as Kanagawa, Chiba and Saitama prefectures, the last remaining areas under the measure among the country’s 47 prefectures, officials said Friday.

As a reminder, here’s how Japan’s approach compared with the US and Europe:

No restrictions were placed on residents’ movements, and businesses from restaurants to hairdressers stayed open. And even as nations were exhorted to “test, test, test,” Japan has tested just 0.2% of its population — one of the lowest rates among developed countries. Yet the curve has been flattened, with deaths well below 1,000, by far the fewest among the G7 nations. While the possibility of a more severe second wave is ever-present, Japan is set to leave its emergency in just weeks, and likely to exit completely as early as Monday.

As Japan prepares to exit its state of emergency and shift its focus to reviving its moribund economy and preparing for next year;s “2020 Games”, China reportedly confirmed zero new coronavirus cases for the entire mainland yesterday, according to data released Saturday morning in Beijing. This is the first time the country hasn’t reported a single new case – foreign or domestically infected – since the beginning of the outbreak.

Meanwhile, officials in Wuhan told Reuters that the CCP had conducted 1.5 million coronavirus tests on Friday, a staggering number, putting the city well on its way to testing all 11 million residents over an outbreak that local officials insist involved just 6 cases.

As we noted yesterday, Brazil is now home to the second-largest outbreak besides the US, though, given the lax containment measures applied across the country and the fact that testing is only just ramping up, many suspect that the real total probably is far higher than that of the US.

In the latest sign of just how devastating the outbreak has become in Brazil, where health-care resources are being increasingly stretched, and in some areas – particularly in Amazonas, where reports of mass graves and corpses languishing in homes and on sidewalks have made their way into the western press, just like the stories of the dead bodies littering the streets in parts of Ecuador.

After surpassing Russia yesterday, Brazil and Russia now hold the No. 2 and No. 3 spots for most confirmed cases:

One indication of just how widespread the virus has already become in Brazil is the surprising number of young, healthy people who are experiencing severe symptoms requiring hospitalization, and often resulting in death. The rates of healthy young people succumbing to the virus are much higher in the developing world, where access to potentially life-saving care is more limited, as WaPo reported

Circling back to the US, as President Trump called for all states to immediately allow the resumption of church services, a federal appeals court on Friday declined to lift California Gov. Gavin Newsom’s temporary restrictions on in-person church services during the coronavirus pandemic, with the court ruling they did not selectively target religious activities. We suspect a more conservative federal judge will reverse this ruling somewhere along the line.

As we pointed out earlier this week, thanks to Brazil, the US is no longer the biggest contributor to the number of new cases reported each day.

Source: CNBC

As we also reported yesterday, Dr. Birx said the Washington DC metro area has the highest rate of infected people in the country, the latest example of how the coronavirus can be confusing. Washington DC and the surrounding area have imposed some of the tightest and longest restrictions in the entire country, yet the rate remains the highest, much lower than the rate in Georgia, which has aggressively reopened.

The coach of Georgetown men’s basketball team, Patrick Ewing, has tested positive for the virus, the schools said.

Finally, in Michigan, nearly 9% of prisoners in the state DoC system have tested positive for the virus already, with thousands of tests waiting to process.

end
CORONAVIRUS UPDATE//SUNDAY AFTERNOON

US Expected To Pass 100k Deaths Sunday; Oxford Vaccine Trial Faces Major Setback: Virus Updates

 

  • US nears 100k deaths
  • Russia sees new cases below 10k for 9 straight days
  • Brazil sees new cases, deaths rise at alarming rate
  • Mexico reports another daily record jump of ~3,300
  • UK furor over Dominic Cummings grows
  • Oxford vaccine trial sees new obstacles

* * *

Sunday’s New York Times front page says it all…

…By midnight ET on Sunday, many expect the number of confirmed coronavirus-linked deaths in the US will have passed the critical 100k milestone, a number that’s represents not only a critical psychological milestone but an upper limit on the death toll promised by President Trump.

With the growing focus on the death toll and doubts emerging about the effectiveness of remdesivir and the progress made by Moderna,  the Telegraph published a report in Sunday’s paper claiming that an Oxford University-affiliated vaccine trial, which one overly-enthusiastic scientist once claimed might produce substantial quantities of a “safe” vaccine by the fall – potentially enough to start administering the vaccine to the most vulnerable health-care workers, actually hasn’t made much progress at all, and only has a ~50% chance of success, according to scientists affiliated with the project.

This is the same vaccine that AstraZeneca struck a $1.2 billion deal with the US government to produce 400 million doses of the unproven vaccine as part of President Trump’s operation “Warp Speeds”, which is looking increasingly like a moonshot, big-swing on a few untested therapies and vaccines in the hope that at least one might pan out.

Elsewhere, in the UK, the press remains fixated on the scandal over whether Boris Johnson senior advisor Dominic Cummings violated quarantine rules to visit several family members. As calls for Johnson to fire Cummings over the transgression intensify, Cummings and the administration have insisted that he acted “reasonably” and have so far refused to set him adrift, even amid growing backlash to Johnson’s leadership as deaths continue to pile up.

Johnson has announced that he will host Sunday’s Downing Street press conference, replacing Housing Secretary Robert Jenrick. The briefing has also been delayed to 5pm London Time (12pmET). Watch it live below:

New York Gov Andrew Cuomo will also deliver his daily briefing starting at noon.

Health officials in Moscow just revealed on Sunday that 12.5% of Muscovites may have already been infected with the virus, or nearly 1.5 million people.

Additionally, Brazil reported 16,508 new cases of the virus and 965 new deaths as the country remained the largest single contributor to the global total for the day. Across the massive nation, 347,398 cases and 22,013 deaths have been confirmed. Mexico reported 3,329 new cases of coronavirus on Saturday, bringing its total to 65,856 cases after what was the US southern neighbor’s largest daily jump yet.

Russia confirmed 8,599 new coronavirus infections on Sunday, bringing the country’s total to 344,481. Russia has the third-highest number of infections behind the US and Brazil, though in a promising sign, the number of new cases reported has lingered below 10,000 for nine days in a row, a sign that the lockdown is finally starting to work, despite the virus’s deep penetration of Russian society.

END
CORONAVIRUS MONDAY//UPDATE

Media Exposes 100s Of Uncounted COVID-19 Fatalities As Japan Lifts State Of Emergency; US Death Toll Just 700 Shy Of 100k: Live Updates

Summary:

  • Nikkei finds 100s of unreported COVID-19 deaths
  • Japan lifts state of emergency
  • Spain to end quarantine restrictions for travelers on July 1
  • Videos of US partiers in the Ozarks spark outrage
  • Dominic Cummings faces the music
  • US just a few hundreds deaths away from 100k

* * *

As Japanese PM Shinzo Abe lifts his state of emergency order in Tokyo and the last remaining prefectures where the order remains in effect, the Nikkei Asian Review has published a story claiming that Japan’s “miraculous” (according to Bloomberg) handling of the coronavirus outbreak wasn’t as effective as the official numbers might suggest.

This isn’t the first time Japan has been accused of massaging the numbers to make its outbreak appear less serious than it actually is. Japanese officials excluded numbers from the “Diamond Princess”, and have been criticized for under-counting early coronavirus cases and deaths.

By now, readers should be familiar with the concept of counting “excess deaths”. The FT was one of the first English-language media organizations to apply the concept to British stats, but the Washington Post, NYT and other organizations have followed with their own reports on excess deaths for the US, NYC etc.

During its analysis of recent Japanese mortality data, reporters at Nikkei discovered that Tokyo may have suffered as many as 200 additional coronavirus-related deaths than what’s reflected in the official data, which show just 16 deaths for all of Tokyo. What’s more, this analysis only covers the first five weeks of the outbreak, meaning the undercounting likely continued in April and May.

Source: NAR

Experts have offered various explanations for Japan’s surprisingly low counts of coronavirus cases and deaths, especially considering Japan’s demographics, which heavily skew older thanks to decades of low birthrates. Some have alleged that “Japanese culture is a form of social distancing” , citing the tendencies toward bowing, preserving personal space and other notably hygienic cultural practices”. Others have claimed that arguments like this leave Japan vulnerable to not taking the virus seriously enough.

What’s more, Abe has become embroiled in a scandal similar to that plaguing UK PM Boris Johnson after Abe’s office sacked an advisor accused of flouting state of emergency restrictions.

To try and save its flailing tourism industry, Spain announced on Monday that it would end mandatory quarantines for foreign tourists beginning July 1, BBG reports.

Spain will stop enforcing mandatory quarantine for foreign tourists from July 1, as the country prepares to reboot its key tourism industry.

In the US, the death toll stands just 700 shy of 100k deaths, with many expecting the grim milestone to finally be reached on Monday after a narrow miss on Sunday.

Meanwhile, confirmed cases in the US are closing in on 1.75 million, while the global outbreak approaches 5.5 million.

And as Americans look for the next source of outrage, media reports have seized on a series of large beach parties in the Ozarks as partiers largely ignored Missouri’s social distancing recommendations to party like it was 2019.

Actress Patricia Arquette squawked that these parties would inevitable lead to the deaths of “hundreds of thousands of people” while others complained – without any hint of self-awareness- about the dangers of “misinformation”.

Here’s a local news report on the parties…

…and readers can find some more reporting on the holiday weekend parties here.

On a relatively quiet day, the biggest story is probably the upcoming press conference involving Dominic Cummings, the senior advisor to BoJo who is facing tremendous pressure to resign after allegedly flouting lockdown restrictions.

END
This is obvious:  global tourism will suffer a crushing blow in 2002 and if lockdown continue until the end of the year then total international tourist arrivals will plummet from 1.5 billion people to 300 million
(zerohedge)

Global Tourism To Suffer Crushing Blow In 2020

While few industries have been spared by the impact of the COVID-19 pandemic, even fewer have been hit harder than the tourism sector. And while it is impossible to gauge the full extent of disruption brought on by COVID-19, Statista’s Feliz Richter notes that the World Tourism Organization (UNWTO) published estimates on how the pandemic will affect international tourist arrivals in 2020 under three different scenarios.

Unfortunately, the pandemic’s impact on the tourism industry is expected to be devastating, even under the most optimistic of the three scenarios.

Infographic: Global Tourism to Suffer Crushing Blow in 2020 | Statista

You will find more infographics at Statista

Assuming the opening of borders and the gradual lifting of travel restrictions begins in early July, the UNWTO expects international tourist arrivals to drop by 58 percent to 610 million this year. That would set the global travel industry back to 1998, when the number of international travelers was last so low.

It could get worse, however, if travel restrictions remain in place until later in the year.

Prior to the coronavirus outbreak, the global tourism industry had seen almost uninterrupted growth for decades. Since 1980, the number of international arrivals skyrocketed from 277 million to nearly 1.5 billion in 2019.

As our chart shows, tourist numbers only dipped twice in the past two decades: in 2003, when the SARS outbreak led to a 0.4 percent drop in arrivals, and in 2009, when the global financial crisis caused a 4 percent drop in international travel.

end
Global anger spreaders across the globe as quarantine rules are broken
(zerohedge)

Global Anger Builds As Elites Worldwide Break Quarantine Rules

“One rule for me, and another for thee” appears to be the politically-prone mantra rapidly spreading around the world.

Opposition parties take shots at one another with America‘s left decrying President Trump’s maskless-golfing escapades…

…and the right exposing Virginia Governor Northam’s recent non-socially-distanced, maskless-beach visit.

Japanese authorities are also under pressure with Japanese Prime Minister Shinzo Abe’s cabinet approval rating fell 4 ppts to 29%, lowest since the start of his second administration in Dec. 2012, after a wave of condemnation involving a man that his administration took great pains to defend: Hiromu Kurokawa, head of the Tokyo High Public Prosecutor’s Office. On Thursday, Kurokawa stepped down after a tabloid expose said he had gambled on mahjong with journalists twice this month despite the state of emergency requesting that nonessential outings be avoided.

And the icing on the global anger cake is occurring in Britain after UK Prime Minister Boris Johnson came out in support of top aide Dominic Cummings Sunday despite his his chief aide allegedly violating the national lockdown rules that he helped to create by driving the length of England to his parents’ house while he was infected with COVID-19.

Defying a growing clamor from public and politicians, AP reports that Johnson said Dominic Cummings had acted “responsibly, legally and with integrity” when he drove 250 miles from London to Durham, in northeast England, with his wife and son at the end of March.

Cummings said he traveled to be near extended family because his wife was showing COVID-19 symptoms, he correctly thought he was also infected and he wanted to ensure that his 4-year-old son was looked after.

However, as AP notes, critics of the government expressed outrage that Cummings had broken strict rules

Labour leader Keir Starmer said Johnson’s defense of Cummings was “an insult to sacrifices made by the British people.”

“The prime minister’s actions have undermined confidence in his own public health message at this crucial time,” he said .

Former Labour lawmaker Helen Goodman, whose father died in a nursing home during the outbreak, said Cummings’s behavior was “repellent.”

Whether you’re repelled or not, most ironically, Cummings “is the inventor of these three-word slogans: ‘Stay at Home,’ ‘Protect the NHS’ and ‘Save Lives.'”

As a reminder, elsewhere in Britain, so-called epidemiologist Neil Ferguson stepped down as government scientific adviser earlier this month after a newspaper disclosed that his girlfriend had crossed London to stay with him during the lockdown. In April, Catherine Calderwood resigned as Scotland’s chief medical officer after twice traveling from Edinburgh to her second home.

Still, it seems the elites’ ongoing belief in ordering the “better safe than sorry” lockdown of entire nations is facing a breaking point among the stuck-at-home, increasingly welfare-dependent average joe around the world.

end

Mexican Exports Plunge Most On Record Despite Historic Peso Rout

the Mexican peso plummets but also its exports and imports due to the virus

(zerohedge)

Mexican Peso

 

Last Updated: May 25, 2020 9:44 a.m. EDT
Mexican peso/usa dollar

$22.6258

 

The plunge in the Mexican peso in March and April was, in theory, supposed to boost Mexican exports. That did not happen and instead this morning the National Statistics Institute of Mexico reported that April exports crashed 41% Y/Y, the most on record to $23.38BN, while imports slumped $26.5 billion, as the Mexican economy followed the rest of the world into a state of self-induced shutdown.

The result was an April trade deficit of $3.09 billion, significantly worse than consensus expectations for +US$2.0bn surplus and the +US$1.51bn print a year ago.

It was also a mirror image of the March $3.4BN surplus and far below the $2.0BN surplus consensus estimate. In fact, the reported deficit was below the worst forecast among all economists. The April deficit was the worst going back to the financial crisis if one excludes the seasonally poor January when the Mexican economy has posted a substantial deficit every year.

The deterioration in the trade balance from a year ago was driven exclusively by the non-oil balance (-US$1.8bn vs. +US$3.6bn a year ago) since the oil balance improved (-US$1.3bn from -US$2.1bn a year ago). The -39.4% yoy (-37.5% mom sa) variation in non-oil exports exceeded the also poor performance of non-oil imports (-27.6% yoy; -20.4% mom sa).

Crude oil export revenue declined 73.6% yoy in April, driven by a combination of lower export prices (-77.1%) but higher volumes (+15.2% yoy). The price of Mexican crude oil averaged $14.18 last month, down from $61.86 in April of 2019. Crude exports by volume increased to 1.18 million barrels per day from 1.02 million barrels per day a year before. The drop in oil prices also contributed to a 53% decrease in petroleum imports to $2.04 billion.

More ominously, non-oil exports declined by a large 39.4% yoy in April, with manufacturing exports down 41.9% yoy (auto exports -79.1% yoy and non-auto manufacturing exports -20.9% yoy). Non-oil imports declined 27.6% yoy in April: imports of non-oil intermediate goods declined 26.3% yoy and of non-oil consumer goods 37.9% yoy. Finally, as Goldman points out, imports of capital goods declined by 26.7% yoy in April (-17.4% yoy during Jan-Apr 2020). Finally, imports of capital goods declined by a large 7.4% mom sa in April (fifth consecutive monthly decline averaging -5.1% mom sa). The weakness of non-oil imports and of capital goods in particular do not bode well for near-term activity.

Going forward Goldman expects to see “weak exports and imports driven by the sharp contraction of both global and domestic demand, lower commodity prices, and some supply chain disruptions due to extensive lockdown protocols”, even though the Mexican auto industry was changed to essential as of May 18, and plants were allowed to start reopening once they have new health and safety protocols in place.

What is concerning is that if the Mexican economy posted a record drop in exports when the peso tumbled to record lows, what happens now that the Peso has stormed higher from recent levels in anticipation of a V-shaped global economy recovery even as the central bank has been aggressively cutting rates and is expected to cut by a further 125bps in the coming 12 months?

end
CORONAVIRUS UPDATE// Tuesday morning

Confirmed Coronavirus Infections Pass 5.5 Million Worldwide As UK Nears 50k Deaths: Live Updates

Summary:

  • NYSE floor trading reopens
  • Global COVID-19 cases top 5.5 mil
  • Montenegro now ‘coronavirus-free’
  • Tory junior minister resigns over Cummings scandal
  • UK nears 50k deaths
  • UK plans to reopen car showrooms
  • US death toll: 99,800
  • Merck buys Austrian biotech company
  • Novovax announces start of human trial in Australia
  • CDC estimates infection mortality rate at less than 0.3%
  • Millions of Wuhan residents tested over past week
  • Germany to lift travel warnings on June 15

* * *

Update (0820ET): A few weeks ago, Slovenia became the first European nation to announce zero new coronavirus cases. Now, nearby Montenegro has declared the country “coronavirus-free”.

An editor at Insider tweeted that the suspiciously low number of deaths reported yesterday might have been the result of “underreporting” related to holiday weekends in the US, UK and Brazil. A bounceback this week wouldn’t be a surprise.

* * *

US equity futures pointed to a sharp jump at the open on Tuesday, with the Nasdaq eying a return to the old highs, as traders celebrated the return of floor traders to the New York Stock Exchange as a symbol of the resilience of the capitalist system – or maybe it was the latest suspiciously preliminary vaccine news.

Two days after the NYT published the names of American coronavirus dead on the front page of its Memorial Day Weekend edition in solemn remembrance of the 100k milestone, the US still hasn’t actually crossed the threshold. Virginia became the latest state to report a one-day record jump in new cases over the weekend after the US saw a jump in cases and a slight uptick in hospitalizations last week.

Experts expected a jump in cases and hospitalizations as states adjusted to the first few weeks of ‘Phase 1’ reopening. Most hope that a ‘seasonal effect’ will help offset the increase in social interaction

An uptick in new cases was expected, due to the inevitable increase in interactions as restrictions are lifted. States have also expanded testing access as they’ve loosened restrictions.

With Brazil and Russia still accounting for ~1/5th of all new cases reported on Monday, the global total number of confirmed cases has broken above 5.5 million, though many experts believe the roughly 330k confirmed cases in Brazil represents just a quarter of the total infections in the country.

as we noted earlier, over the weekend, the CDC released its first official estimate of the overall infection fatality rate (IFR). The number? Just 0.26% – a full 3.2 percentage points below the WHO’s official estimate of 3.4%. The CDC also estimated the rate of “asymptomatic” infection (patients who showed few or no symptoms) at 35%.

I NYC alone, 0.3% of all city residents have died from the virus (more than 30k have died in the US alone). “According to some surveillance studies using antibody tests, roughly a quarter of NYC residents have been infected. This would suggest the mortality rate might be closer, or just above, 1%, but still well below the WHO number that unleashed a wave of panicked lockdowns across the world.

Source: WorldoMeter

To be sure, roughly 50% of deaths across the US have occurred in nursing homes. This alarmingly high rate is due in part to certain Democratic governors instituting obviously dangerous policies allowing COVID-19-positive patients to be returned to the managed-care facilities where they lived. Some have suggested that better protecting the most vulnerable patients might greatly mitigate the mortality rate. But we digress…

As the WHO warns that the world remains mired in the ‘first wave’ of the outbreak, the AP reported Tuesday that states are scrambling to spend billions of dollars on PPE and medical supplies to replenish depleted stockpiles. But more than 2 months into the supply scramble, few states are sharing information about what they’re buying and how much they’re paying (remember, reports about states and cities being swindled have proliferated during the crisis). While many states have obscured their spending, Illinois has released a detailed database that can be accessed by the public.

With the US inching ever-closer to the 100k fatality mark, the UK’s Department of Health and Social Care said the country had surpassed 47,000 deaths on Tuesday, coming ever-closer to the 50k mark which Boris Johnson’s government had once said would be a ‘worst-case’ scenario for the outbreak. Meanwhile, Tory Junior minister Douglas Ross resigned on Tuesday, saying Dominic Cummings’ interpretation of the lockdown guidelines weren’t shared by the majority of Britons.

As the UK plods through an extremely gradual reopening, Johnson revealed on Tuesday that HMG plans to allow car showrooms and outdoor markets to reopen on June 1, while allowing all non-essential retail to open from June 15.

The ONS said 42,173 people had died in England and Wales with suspected COVID-19 as of May 15, bringing the UK total to 47,343 – which includes earlier data from Scotland, Northern Ireland, plus recent hospital deaths in England, Reuters reports. Chatter about Johnson being “replaced” – not unlike his predecessor, Theresa May – as Tories begin to see him as a liability has intensified.

As scrutiny of the EU’s paycheck subsidies intensifies, the bloc’s global campaign to fund the development of vaccines and therapies against COVID-19 has so far raised $10.4 billion, according to European Commission President Ursula von der Leyen.

On Tuesday, as images of packed Ozark beaches lingered in the minds of Americans, the WHO warned of the risks of an “immediate second peak” as Europe, the US and others ease up on lockdown conditions, while urging countries to step up surveillance, testing and tracking.

After a flurry of overhyped reports about various vaccine trials, Pharmaceutical giant Merck – which has “largely kept to the sidelines” of the vaccine race according to Reuters – has unveiled plans to buy privately-held Austrian vaccine maker Themis Bioscience. Merck also said it plans to collaborate with research nonprofit IAVI to develop two separate vaccines.

Merck also announced a partnership with privately-held Ridgeback Biotherapeutics to develop “an experimental oral antiviral drug” to help patients infected with the virus.

Maryland-based biotech firm Novovax announced early Tuesday that it had begun injecting its experimental coronavirus vaccine candidate into test subjects in Australia on Tuesday, CNBC reports.

The company hopes to release a vaccine by the end of the year if its early studies find success. Novavax will inject 131 volunteers in the first phase of the trial testing the safety of the vaccine and looking for signs of its effectiveness, the company’s research chief Dr. Gregory Glenn said. At this point, roughly a dozen experimental vaccines are in early stages of testing, or are poised to start in the near future; most of these are based in China, the US and Europe.

“We are in parallel making doses, making vaccine in anticipation that we’ll be able to show it’s working and be able to start deploying it by the end of this year,” Glenn told a virtual news conference in Melbourne from Novavax’ headquarters in Maryland.

After releasing its first testing update on Friday, Wuhan, the epicenter of China’s coronavirus outbreak, affirmed on Tuesday that it has tested nearly seven million people in 12 days, concluding a campaign to test the entire population after several infections prompted fears of a second wave. And as Beijing scrambles to test millions in Wuhan and China’s northeastern Jilin Province, Taiwan on Tuesday announced plans to lift its coronavirus-related restrictions on mass gatherings and the sale of masks next month as China’s ‘wayward province’ has nearly stamped out the virus.

 

As more European nations lift, or plan to lift, limitations on inter-EU travel, Germany said Tuesday it plans to lift travel warnings for 31 European countries per June 15, DPA reports, citing a government draft.

On seemingly every cable news channel, pundits are bemoaning the ‘politicization’ of the coronavirus pandemic. While their conclusion is typically to blame the president, we suspect there might be another reason why it sometimes seems like red states and blue states are experiencing different versions of the same reality.

Because they, effectively, are.

END

7. OIL ISSUES

This is how poor countries that produce some oil is having trouble.  He has receive loans from Glencore, Trifigura et al and these loans were to be repaid in oil  But now oil is in huge susrplus and countries just cannot pay back the oil.

(zerohedge)

Poor Countries Borrowed Billions Using Their Oil As Collateral And Are Now Struggling To Pay

Smaller countries that have taken out billions of dollars in loans that they have promised to pay back in oil are starting to fall behind on their payments.

The deals are structured so that countries are advanced money from trading houses that will be paid back in future oil shipments. These types of loans have become popular with smaller African and Middle Eastern nations as the only way to raise money. But when oil prices tank – as they did over the last several weeks – the loans become difficult to repay. 

As the price of oil plunges, countries have to divert more oil to keep up with their paymentsNow the Kurdistan region in Northern Iraq is having trouble repaying a $500 million loan from Glencore.

U.S. investors find themselves with exposure to $500 million in Kurdistan-based loans, as U.S. pension funds bought half a billion dollars worth of notes “known as Oilflow SPV 1 DAC linked to the loans”. Glencore has said it plans on formally restructuring the deal.

These notes have plunged in value due to the potential restructuring,falling to 80 cents on the dollar and a yield of more than 40% (the yield at par was 12%). 

Glencore, along with Trafigura Group, are also together in talks to restructure a total of $1.5 billion in oil-for-cash loans from the Republic of Congo. It had been trying to restructure its loans for a year but the deal fell through when oil prices crashed in late 2019.

Additionally, Chad, one of the poorest countries in the world, is using a clause in its contract to reduce payments on the $1 billion it has borrowed, according to Bloomberg. It is allowed to reduce its payments when oil falls under $42 per barrel. Chad has already restructured the loans twice after they were first subscribed in 2013. 

One non-governmental organization called Global Witness simply called the loans a “gamble on the future oil price” and warned countries they could become “an open ended liability for future government and generations”.

In many cases, commodity traders will syndicate the loans to banks and buy credit insurance, but they are still exposed to the plunge in commodity prices.

Oil’s plunge over the last couple months can be attributed to the deadly combination of the global economy shutting down due to the coronavirus and Saudi Arabia and Russia collectively flooding the market with supply.

end

8 EMERGING MARKET ISSUES

VENEZUELA//IRAN// USA//

Iran’s first tanker arrives in Venezuela’s territorial waters yet this is far from over.  What will be the USA’s next move?

(zerohedge)

Iran & Venezuela Hail Victorious ‘Defiance’ Over US As 1st Tanker Is Escorted By Maduro Forces

The first among five Iranian fuel-laden tankers has arrived in gasoline-starved Venezuela amid US threats to intervene against the ‘sanctions-busting’ activity by two official Washington enemies. 

Reuters reports: “The tanker, named Fortune, reached the country’s waters at around 7:40 p.m. local time (1140 GMT) after passing north of the neighboring dual-island Caribbean nation of Trinidad and Tobago, according to vessel tracking data from Refinitiv Eikon.”

 

Multiple tanker tracking monitoring sites have confirmed the arrival of the ‘Fortune’ off Venezuela’s coast last Saturday.

Maduro’s economy vice president and recently named oil minister celebrated on Twitter:  “The ships from the fraternal Islamic Republic of Iran are now in our exclusive economic zone,” amid broader claims of ‘victory’ on state media.

And per Reuters“Venezuelan state television showed images of a navy ship and aircraft preparing to meet it.”

The other trailing tankers are also expected to enter Venezuela’s Exclusive Economic Zone (EEZ), or within 200 miles of the coast, in the coming days.

Iran’s IRGC-aligned Tasnim media hailed the safe arrival of the first tanker as “A turning point for Venezuela’s sovereignty and independence,” according to a state media report.

Over the past month Tehran and Caracas have become aggressively vocal in touting their “brotherhood” and joint defiance of Trump administration sanctions, for which US officials have recently threatened response, including the possibility of military intervention against the vessels in the Caribbean. Trump months ago reportedly ordered more Navy ships to the area to crackdown against what was dubbed the Maduro regime’s alleged narcotrafficking.

Iran-Venezuela cooperation has also included stepped-up flights from Iran via sanctioned Mahan Air, which has lately delivered crucial supplies to bring some of Venezuela’s derelict refining plants back online, amid a national gas shortage.

But as The Jerusalem Post underscores, the saga is far from over, but may have just begun:

 

There are still chances for the US to make trouble for Iran’s tanker fleet. More ships will arrive in the coming days and then they have to go back to Iran. The port they came from was sabotaged by a cyber attack recently. US media pointed the finger at Israel for that incident. It’s unclear what the ships will do next. Furthermore, Venezuela is holding two Americans it accuses of being part of an ill-planned coup.

Maduro officials days issued an emergency notice to the United Nations of what they called an illegal “threat of imminent use of military force by the United States.”

Simultaneously, Iran’s President Hassan Rouhani put Washington on notice that his armed forces can create “trouble” – no doubt a reference to ability to choke key Persian Gulf transit points – should their be any attempt to thwart the tankers’ movement.

“If our tankers in the Caribbean or anywhere in the world face trouble caused by the Americans, they [the United States] will also be in trouble,” Rouhani told the Emir of Qatar in a phone call, Tasnim News reported earlier.

end

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

Euro/USA 1.0960 UP .0058 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//PANDEMIC/CORONAVIRUS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 107.52 DOWN 0.170 (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 1.2329   UP   0.0129  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3865 DOWN .01056 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro ROSE BY 58 basis points, trading now ABOVE the important 1.08 level RISING to 1.1219 Last night Shanghai COMPOSITE CLOSED UP 28.58 POINTS OR 1.01% 

 

//Hang Sang CLOSED UP 432.42 POINTS OR 1.88%

/AUSTRALIA CLOSED UP 2,79%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 432.42 POINTS OR 1.88%

 

 

/SHANGHAI CLOSED UP 28.58 POINTS OR 1.01%

 

Australia BOURSE CLOSED UP 2.79% 

 

 

Nikkei (Japan) CLOSED UP 529.52  POINTS OR 2.55%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1725.30

silver:$17.26-

Early TUESDAY morning USA 10 year bond yield: 0.69% !!! UP 3 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.40 UP 2  IN BASIS POINTS from FRIDAY night.

USA dollar index early TUESDAY morning: 99.20 DOWN 67 CENT(S) from  FRIDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.68% DOWN 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.00%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.69%//UP 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,56 DOWN 4 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 87 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.43% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.00% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.0984  UP     .0043 or 43 basis points

USA/Japan: 107.68 DOWN .073 OR YEN UP 7  basis points/

Great Britain/USA 1.2355 UP .0153 POUND UP 153  BASIS POINTS)

Canadian dollar UP 168 basis points to 1.3803

 

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The USA/Yuan,CNY: AT 7.1362    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1401  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.710 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.00%

 

Your closing 10 yr US bond yield UP 4 IN basis points from FRIDAY at 0.70 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.43 UP 5 in basis points on the day

Your closing USA dollar index, 98.98 DOWN 88  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 65.70  1.10%

German Dax :  CLOSED UP 145.27 POINTS OR 1.28%

 

Paris Cac CLOSED UP 72.99 POINTS 1.61%

Spain IBEX CLOSED UP 156.70 POINTS or 2.29%

Italian MIB: CLOSED UP 281.85 POINTS OR 1.60%

 

 

 

 

 

WTI Oil price; 33.89 12:00  PM  EST

Brent Oil: 35.69 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    70.70  THE CROSS LOWER BY 0.95 RUBLES/DOLLAR (RUBLE LOWER BY 95 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.43 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 :  34.12//

 

 

BRENT :  36.14

USA 10 YR BOND YIELD: … 0.70.. up 4 basis points…

 

 

 

USA 30 YR BOND YIELD: 36.14.. up 6 basis  points

 

 

 

 

 

EURO/USA 1.0986 ( UP 84   BASIS POINTS)

USA/JAPANESE YEN:107.47 UP .211 (YEN UP 21 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 98.98 DOWN 89 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2332 UP 102  POINTS

 

the Turkish lira close: 6.7339

 

 

the Russian rouble 70.80   UP .0084 Roubles against the uSA dollar.( UP 84 BASIS POINTS)

Canadian dollar:  1.3790 UP 101 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.44%

 

The Dow closed UP 529.95 POINTS OR 2.17%

 

NASDAQ closed UP 15.53 POINTS OR 0.17%

 


VOLATILITY INDEX:  28.30 CLOSED UP .14

LIBOR 3 MONTH DURATION: 0.369%//libor dropping like a stone

LIBOR/OIS:  .309%

TED SPREAD (LIBOR VS 3 MONTH TREASURY BILL) =  .242%

 

USA trading today in Graph Form

Vaccine Vacillation Sparks Stock Surge, Dollar Purge

US equity markets roared higher overnight on several vaccine-related headlines (but repeated China sanctions headlines – especially at the close, took the shine off the ball, especially for tech stocks)…

Shrugging off Gilead’s Remdesivir “statistically insignificant” results and Moderna’s reality checks in favor of Merck and Novavax…

NOTE – Moderna is now 20% below its secondary offering levels.

Novavax soared early on the back of an announcement that it was planning on starting a phase 1 trial in Australia… no results at all… But the market didn’t hold all those gains…

It appears Dr.Fauci’s optimism was unfounded… just as his pessimism was too…

Of course, US equity markets are not alone in their irrationality. Nothing says bid the yuan like Washington threatening China with sanctions and capital controls…

Source: Bloomberg

And nothing says Buy Hong Kong stocks like the cavalcade of freedom-crushing new laws and headlines unleashed from the mainland this weekend…

Source: Bloomberg

While the Nasdaq (blue) lagged on the day it was still higher on the day BUT just look at Trannies (green) and Small Caps (red). Dow broke above 25k and S&P above 3,000 before the whole fragile facade fell apart on repeated headlines on China sanctions…

The S&P 500 broke above its 200-DMA and Small Caps tested their 100DMA (as The Dow got close) but the late-day China sanctions headlines spoiled the party…

But it was a different crowd leading the day with FANG stocks back at one-week lows…

Source: Bloomberg

As FANGs faltered, Bank stocks soared…

Source: Bloomberg

But the “virus fear” is fading fast once again…

Source: Bloomberg

“Most Shorted” Stocks extended their fourth squeeze leg higher…

Source: Bloomberg

Treasury yields were higher across the curve with the long-end notably underperforming (2Y +1bps, 10Y +7bps)…

Source: Bloomberg

The Dollar dumped notably today – biggest daily drop in 2 months…

Source: Bloomberg

Breaking below critical support…

Source: Bloomberg

Cryptos have slipped lower since Friday…

Source: Bloomberg

Oil and copper ended the day higher but, despite the dump in the dollar, precious metals ended the day down…

Source: Bloomberg

Finally, you have to laugh really… The last 16 trading days have seen the S&P rise 163.0 points from the US day session close to the open the next day… and fall 4.3 points from the open of the US day session to the close.

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/FRIDAY NIGHT/USA//FUTURES

Saturday: futures//retail investors face another rout as Hertz prepares to file

(zerohedge)

Retail Investors Face Another Rout As Daytrader Favorite Hertz Prepares To File

Here’s some bad news for all the Robinhood day traders indiscriminately buying Hertz Global Holdings as it crashed during coronavirus lockdowns — a CNBC report indicates the distressed rental car company is preparing to file for bankruptcy as soon as Friday night.

Minutes after the news hit the wires, Hertz’s stock extended its recent bloodbath…

The upcoming bankruptcy filing reportedly comes after the company failed to reach a deal with its top lenders. The company missed a lease payment last month, and the bankruptcy could be one of the most high-profile defaults during coronavirus lockdowns. Hertz has approximately $19 billion debt (about $4.3 billion of corporate bonds and loans, $14.4 of vehicle-backed debt).

In recent days, realizing the ends was inevitable, the company resorted to dumping a fleet of sports cars on the used-car market to build liquidity and avert bankruptcy, but according to this evening’s report, it seems after years of trying to restructure its business — the rental car company has likely met its fate thanks to a Chinese virus crushing the global travel and tourism industry.

It would not shock us if Hertz was forced to dump more of its fleet on the used car market during bankruptcy proceedings – thus crashing used car prices even further.

As for the Robinhood day traders using their stimulus checks to lever up in trades — well, a whole bunch of them piled into the stock ahead of the upcoming bankruptcy.

And another one bites the dust. As for those day traders trying to buy every dip — well, many of them are about to have a crappy Memorial Day weekend… (a 50% collapse after-hours)

…and so are the bond-holders who bought $900 million of 6% notes issued last November…

…which are about to join Movie Gallery, MF Global, Just for Feet and Ameriserve in defaulting before paying investors a single coupon payment.

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

US Home Prices Surged In March, But…

Home prices in the top 20 cities in America rose at a stunning 3.92% YoY in March (according to the admittedly lagged latest data from S&P Case-Shiller). This is the fastest acceleration in home prices since Dec 2018.

Overall home prices rose at 4.35% YoY with Phoenix, Seattle, Charlotte reported highest year-over-year gains among 19 cities surveyed.

That prices are continuing to rise may provide solace for some but we note that S&P CoreLogic removed the data for Detroit for virus-related reasons… which is likely to dramatically skew the data.

end

The big Fed’s National Activity Index crashes by the most in 50 yeaers;

(zerohedge)

Fed’s “National Activity Index” Crashes By Most In At Least 50 Years

Just another macro data point for so-called investors to ignore

US economic activity collapsed in April, according to the Chicago Fed. The national index, which draws on 85 economic indicators, crashed to a record low -16.74 in April versus -4.97 in March (and massively worse than the expected level of -3.50).

  • 6 of the 85 monthly individual indicators made positive contributions
  • 79 of the 85 monthly individual indicators made negative contributions

If that does not provide some context for the level of carnage imposed on the US economy, we do not know what does.

end

US Consumer Confidence Stops Collapsing As Hope Rebounds

Consumer confidence in May rose to 86.6 vs. 85.7 prior month, according to The Conference Board, with “expectations” rising as the current situation worsens…

  • Present situation confidence fell to 71.1 vs. 73.0 last month.
  • Consumer confidence expectations rose to 96.9 vs. 94.3 last month.

Source: Bloomberg

Current Business Conditions are seen as their worst ever (blue) but according to the survey, expectations for better business ahead are also at record highs…

Source: Bloomberg

Presumably, if you’re told enough times that there will be a ‘v’-shaped recovery, you start believing it, but we do note that the modest rise in the headline confidence data pales in terms of the liquidity puked into the markets to keep the stock market dream alive.

Notably, it is the youngest households that are the least confident…

Source: Bloomberg

Maybe ‘hope’ is a strategy after all?

END

iii) Important USA Economic Stories

The tsunami begins: as we warned you the big shoe to drop is commercial real estate.  Now these landlords are desperate as most tenants are just not paying their rent.  They have flooded their tenants with default notices.  However these buys have bill to pay as well including debt owed to leveraged loan  operators.

(zerohedge)

Bankruptcy Tsunami Begins: Thousands Of Default Notices Are “Flying Out The Door”

Two weeks ago, when showing the uncanny correlation between defaults and the unemployment rates, we predicted that the number of Chapter 11 filings that is about to flood the US will be nothing short of biblical.

All that was missing was a catalyst… and according to Bloomberg that catalyst arrived in the past week or so, as retail landlords have been sending out thousands of default notices to tenants, who in turn have experienced a collapse in foot traffic, sales and cash flow due to the COVID-19 pandemic, and are simply unable to pay their debt obligations.

According to Bloomberg, restaurants, department stores, apparel merchants and specialty chains have been receiving notices from landlords – some of whom have gone as long as three months without receiving rent.

“The default letters from landlords are flying out the door,” said Andy Graiser, co-president of commercial real estate company, A&G Real Estate Partners. “It’s creating a real fear in the marketplace.”

Pressure from default notices and follow-up actions like locking up stores or terminating leases was cited in the bankruptcies of Modell’s Sporting Goods and Stage Stores Inc. Many chains stopped paying rent after the pandemic shuttered most U.S. stores, gambling that they could hold on to some cash before landlords demanded payment.

The stakes are enormous, and landlords are suffering, too.An estimated $7.4 billion in rent for April hasn’t been paid, or about 45% of what’s owed, according to a recent analysis by CoStar Group, which also found that just a quarter of of expected rent payments have been received by landlords.

“If the landlords don’t put a pause on their actions, you’re going to see more bankruptcies.”

The question then becomes who will bail out the landlords, and whether their creditors will be just as generous in accepting forbearance.

That said, receipt of a default notice don’t necessarily mean  retailers will get booted anytime soon, especially since there is nobody waiting in line for the real estate: some landlords are merely sending letters to preserve their legal rights while discussing the situation with tenants, and to assure their spot as a pre-petition creditor once the default tsunami begins in earnest.

One such company, Simon Property Group Inc., says it’s in active negotiations with merchants at its malls, and has been taking their tenants’ financial status into account. “The bottom line is, we do have a contract and we do expect to get paid,” said CEO David Simon during the company’s May 11 earnings call.

“The landlords do have the legal contract,” said Green Street Advisors senior analyst, Vince Tibone. However, from a practicality standpoint, a lot of these retailers are on the brink of bankruptcy and simply cannot pay right now.”

However, as noted above, landlords are of course still stuck with their own bills – including bank debts which they’re expected to pay. On Thursday we reported that US malls are in a crisis which started in January as vacancies hit a record high.

And earlier Friday we reported that US retailers have accounted for the bulk of defaults over the past two months, as they were forced to temporarily close stores in response to the COVID-19 pandemic.

Retailers Neiman Marcus Group, J.Crew and J.C. Penneyhave already filed for Chapter 11 bankruptcy protection this month in the United States. But the real bankruptcy wave was just waiting for the unspoken covid-related grace period to end, and for the default notices to start flying.

The letters began arriving in March and early April, “but the rate of such notices picked up materially in late April and early May,” Stage Stores said. Some landlords began locking the company out “and threatened to evict the debtors and dispose of the in-store inventory.” The company also said that “responding to and managing these default notices and related litigation outside of Chapter 11 would have been a monumentally difficult task.”

“It’s not like there’s a lot of investors out there looking to buy retailers in a Chapter 11,” said Grasier, adding “Landlords and retailers need to really come together and realize that this a shared pain.”

Some landlords get it, according to Tom Mullaney, managing director of restructuring at real estate services firm Jones Lang LaSalle. Retailers he represents are getting default letters that are understanding and sympathetic; other landlords strike a more combative tone.

What’s more interesting is the action, or lack of it, by the landlords afterward, Mullaney said. “In a lot of cases, the letters that are being sent aren’t being followed up on,” he said – the landlords are simply preserving their legal rights. Maybe they just don’t have the funds to retain lawyers?

Others, meanwhile, are just taking the law into their own hands: some property owners have run out of patience and have locked out Mullaney’s clients. “The environment is getting pretty testy and emotional on both sides of the table,” he said. “The only thing worse than being a retailer right now is being a retail landlord.”

END

Cuomo is now owning up to his decision to sent COVID 19 patients back to nursing homes in New York that had tested positive

(zerohedge)

“Grandma Killer” Cuomo Sent 4,300 Patients Back To Nursing Homes Despite Positive COVID-19 Tests

Earlier this month, a reporter at one of NY Gov Andrew Cuomo’s daily press briefings asked the governor about reports that the state issued guidance calling for hospitals to return thousands of patients who had tested positive for COVID-19 to nursing homes or long-term care facilities where they lived.

Somehow, despite the horrifying notion that Cuomo deliberately sent patients back to nursing homes where they unleashed some of the deadliest outbreaks in the country, the governor readily owned up to the decision, and insisted public health officials believed this to be the best option to prevent the patients from just hanging around the hospital.

With the benefit of hindsight, we now see that the hospital bed shortages that the US had prepared for never came to pass. So, not only did this decision lead to thousands of deaths, it was also totally unnecessary.

Because as the Associated Press reported Friday morning, an investigation discovered that more than 4,000 nursing home patients who had tested positive for COVID-19 were returned to their care facilities due to this state order.

More than 4,300 recovering coronavirus patients were sent to New York’s already vulnerable nursing homes under a controversial state directive that was ultimately scrapped amid criticisms it was accelerating the nation’s deadliest outbreaks, according to a count by The Associated Press.

AP compiled its own tally to find out how many COVID-19 patients were discharged from hospitals to nursing homes under the March 25 directive after New York’s Health Department declined to release its internal survey conducted two weeks ago. It says it is still verifying data that was incomplete.

The issue has become a huge problem for Cuomo, who has been labeled “the grandma killer” by critics. When confronted with the data by the AP, the state health department declined to comment. One individual quoted by the AP called it “the single dumbest decision” made during the response to the pandemic.

And guess what – this decision had nothing to do with President Trump. While Cuomo of course tried to deflected criticism to the Trump administration by claiming that the decision stemmed from federal guidance, the AP pointed out that “few states went as far as New York and neighboring New Jersey, which has the second-most care home deaths, in discharging hospitalized coronavirus patients to nursing homes. California followed suit but loosened its requirement following intense criticism.”

Whatever the full number, nursing home administrators, residents’ advocates and relatives say it has added up to a big and indefensible problem for facilities that even Gov. Andrew Cuomo — the main proponent of the policy — called “the optimum feeding ground for this virus.”

“It was the single dumbest decision anyone could make if they wanted to kill people,” Daniel Arbeeny said of the directive, which prompted him to pull his 88-year-old father out of a Brooklyn nursing home where more than 50 people have died. His father later died of COVID-19 at home.

“This isn’t rocket science,” Arbeeny said. “We knew the most vulnerable – the elderly and compromised – are in nursing homes and rehab centers.”

Told of the AP’s tally, the Health Department said late Thursday it “can’t comment on data we haven’t had a chance to review, particularly while we’re still validating our own comprehensive survey of nursing homes admission and re-admission data in the middle of responding to this global pandemic.”

Cuomo didn’t reverse the order until May 10. According to the directive, nursing homes could “refuse” to take in the patients if they weren’t “equipped” to handle them. But unsurprisingly, no nursing homes did so – since this would be tantamount to admitting that the facilities weren’t safe.

Cuomo, a Democrat, on May 10 reversed the directive, which had been intended to help free up hospital beds for the sickest patients as cases surged. But he continued to defend it this week, saying he didn’t believe it contributed to the more than 5,800 nursing and adult care facility deaths in New York — more than in any other state — and that homes should have spoken up if it was a problem.

“Any nursing home could just say, ‘I can’t handle a COVID person in my facility,'” he said, although the March 25 order didn’t specify how homes could refuse, saying that ”no resident shall be denied re-admission or admission to the (nursing home) solely based” on confirmed or suspected COVID-19.

Over a month later, on April 29, the Health Department clarified that homes should not take any new residents if they were unable to meet their needs, including a checklist of standards for coronavirus care and prevention.

And according to the AP, even the most well-equipped nursing homes in the state saw the trickle of COVID patients turn into a flood that quickly overwhelmed their ability to cope. Across the country, thousands of nursing home residents and staff have succumbed to the illness.

Gurwin Jewish, a 460-bed home on Long Island, seemed well-prepared for the coronavirus in early March, with movable walls to seal off hallways for the infected. But after the state order, a trickle of recovering COVID-19 patients from local hospitals turned into a flood of 58 people.

More walls were put up, but other residents nonetheless began falling sick and dying. In the end, 47 Gurwin residents died of confirmed or suspected COVID-19.

The state order “put staff and residents at great risk,” CEO Stuart Almer said. “We can’t draw a straight line from bringing in someone positive to someone catching the disease, but we’re talking about elderly, fragile and vulnerable residents.”

Nationally, over 35,500 people have died from coronavirus outbreaks at nursing homes and long-term care facilities, about a third of the overall death toll, according to the AP’s running tally.

Bottom line: Irony of ironies, the most sanctimonious blue-state governors, who used every conceivable pretext to bash President Trump, also allowed the largest numbers of vulnerable patients to die because of what amounts to sheer bureaucratic idiocy.

The scandal has earned Cuomo a new nickname that has been heavily suppressed by the likes of Google, Facebook and Twitter: The “Grandma Killer”.

end

Hertz files for bankruptcy protections as the lockdowns crush the rental car industry..

(zerohedge)

Hertz Files For Bankruptcy As Lockdowns Crush Rental Car Industry

As if 44,354 Robin Hood traders suddenly cried out in terror and were suddenly silenced.

 

What one world war, one Great Depression and numerous oil price shocks couldn’t do, the coronavirus did in less than three months and late on Friday, auto rental giant Hertz which was founded in 1918 when it set up shop with a dozen Ford Model Ts, quietly filed for Chapter 11 bankruptcy protection struggling under a massive debt load after its business was brought to a grinding halt during the coronavirus pandemic and talks with creditors failed to result in much needed relief.

The company had a total of 568,000 vehicles and 12,400 corporate and franchise locations worldwide at the start of this year. About a third of those locations are at airports.

By declaring bankruptcy, Hertz said it intends to stay in business while restructuring its debts and emerging a financially healthier company. The board of Hertz, whose org chart listed dozens of debtor and non-debtor affiliates…

 

… earlier on Friday approved the company’s Chapter 11 filing in a U.S. bankruptcy court in Delaware, according to court records, news of which was promptly leaked and sent the stock – which had in recent days become a darling for retail daytraders on Robinhood and elsewhere who expected a swift rebound in the price and BTFD – crashing . Its international operating regions including Europe, Australia and New Zealand were not included in the U.S. proceedings.

“The impact of COVID-19 on travel demand was sudden and dramatic, causing an abrupt decline in the company’s revenue and future bookings,” said the company’s statement adding that while it took immediate action in response to the crisis, “uncertainty remains as to when revenue will return and when the used-car market will fully re-open for sales, which necessitated today’s action.”

“With the severity of the Covid-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery,” Hertz’ new CEO Paul Stone said in a statement.

The firm, which already was suffering from a decline in demand as a result of the ubiquity of cheaper car-hailing services,  and whose largest shareholder is billionaire investor Carl Icahn with a nearly 39% ownership stake…

 

… was left reeling after government orders restricted travel and ordered citizens to remain home. A large portion of Hertz’s revenue comes from car rentals at airports, which have all but evaporated as potential customers eschew plane travel.

Then there is the debt: with nearly $19 billion of debt and roughly 38,000 employees worldwide as of the end of 2019, Hertz was among the largest companies to be undone by the pandemic.

Hertz had $18.8 billion of debt on its books as of March 31, up $1.7 billion from the end of last year. Most of that debt, $14.4 billion, is backed by its vehicles. That includes the debt for which it missed the payment in April the prompted this latest crisis.

 

Hertz’s woes are compounded by the complexity of its balance sheet, which includes more than $14 billion of securitized debt. The proceeds from those securities finance purchases of vehicles that are then leased to Hertz in exchange for monthly payments that have risen as the value of cars fall. Hertz also has traditional credit lines, loans and bonds with conditions that can trigger defaults based on missing those lease payments or failing to meet other conditions, such as delivering a timely operating budget and reimbursing funds it has borrowed.

The public health crisis has also caused a cascade of bankruptcies or Chapter 11 preparations among companies dependent on consumer demand, including retailers, restaurants and oil and gas firms. And while US airlines had so far avoided a similar fate after receiving billions of dollars in government aid, Hertz was unable to get a government handout and this is the result.

The Estero, Florida-based company, which operates Hertz, Dollar and Thrifty car-rentals, had been in talks with creditors after skipping significant car-lease payments due in April. Forbearance and waiver agreements on the missed payments were set to expire on May 22. Hertz has about $1 billion of cash, which is why it won’t need a debtor in possession loan. The company said it might need to raise more, perhaps through added borrowings while the bankruptcy process moves forward.

The company listed total assets of $25.8 billion and total debt of $24.4 billion on its bankruptcy petition, estimating more than 100,000 total creditors, of which IBM and Lyft were listed as the biggest.

The size of Hertz’s lease obligations have increased as the value of vehicles declined because of the pandemic. In an attempt to appease creditors holding asset-backed securities that finance its fleet of more than 500,000 vehicles, Hertz proposed selling more than 30,000 cars a month through the end of the year in an effort to raise around $5 billion, a person familiar with the matter said; that effort was seen as insufficient.

Just four days before the filing, the Hertz board appointed executive Paul Stone to replace Kathryn Marinello as CEO. Earlier notified 12,000 employees in North America that that they were losing their jobs, and another 4,000 are on furloughs. Its US workforce stood at 38,000 employees at the start of the year, with about a quarter of them represented by unions.

After the coronavirus pandemic decimated revenue, the car renter sought relief from lenders and a bailout from the U.S. Treasury Department. But while it managed to negotiate a short-term reprieve from creditors, it wasn’t able to work out longer-term agreements. A trade group representing Hertz, the American Car Rental Association, has asked Congress to do more for the industry by expanding coronavirus relief efforts and advancing new legislation targeting tourism-related businesses.

Even before the pandemic, Hertz and its peers were under financial pressure as travelers shifted to ride-hailing services such as Uber. To combat Uber, Hertz had adopted a turnaround plan, aiming to modernize its smartphone apps and improve management of its fleet of rental cars.

The filing has been the highest-profile bankruptcy of the COVID-19 crisis so far, which has prompted bankruptcies by national retailers like JCPenney, Neiman Marcus and J.Crew, along with some energy companies such as Whiting Petroleum and Diamond Offshore Drilling. But none of the companies to file so far have had such as large a share of their industry as does Hertz, which along with rivals Avis Budget and privately held Enterprise dominate the rental car industry.

The entire rental car industry has been devastated by the plunge in travel since the pandemic hit earlier this year.

Nearly two-thirds of its revenue comes from rentals at airport locations, and air travel has fallen sharply. Since the start of April, the number of people passing through TSA checkpoints at US airports has plummeted 94% compared with a year ago.

A significant portion of Hertz’s nonairport business is renting cars to people who are having their vehicles repaired after accidents. But with so many people out of work or working from home, the miles being driven and the number of car accidents are down significantly. Car insurers are voluntarily returning more than $7 billion, or between 15% to 25% of premiums, to their customers.

Hertz was founded in Chicago just more than a century ago by Walter Jacobs, who sold the company in 1923 to John Hertz, who renamed it and expanded the fleet to 600 cars. He began the nation’s first national rental network in 1925 and opened its first airport location at Chicago Midway Airport in 1932.

Hertz has had a number of high-profile corporate owners, including RCA, United Airlines, and most recently Ford, which sold it to a group of private equity firms in 2005 for $5.6 billion. It was taken public a year later.

Its primary shareholder today is activist investor Carl Icahn, who owns about 38% of its shares outstanding. He continued to increase his stake in the company all the way through mid-March. Those shares, which increased the size of his stake by 26%, have lost more than 60% of their value in the two months since his most recent purchases.

The company’s legal and financial advisors are White & Case and FTI Consulting , while Moelis is its investment banker. The case in 20-11218 in the District of Delaware.

end
The Fed is the proud owner of bankrupt Hertz bonds and they will engage in the bankruptcy process.
(zerohedge)

The Fed Is Now The Proud Owner Of Bankrupt Hertz Bonds

On March 23 – the day the S&P dropped to its cycle low of 2,237 –  the Fed stunned capital markets when it announced it would purchase investment grade corporate bonds, traversing a Rubicon into secondary market intervention that not even  Ben Bernanke had dared to cross. A few weeks later, on April 9, the Fed doubled down by announcing it would purchase not only junk bonds from “fallen angel” issuers (an announcement which came just days after a quarter in which a record $150BN in investment grade bonds were downgraded to junk, starting the long awaited tsunami of “fallen angels”), but would also buy junk bond ETFs such as HYG and JNK.

This is what the Fed’s Secondary Market Corporate Credit Facilities term sheet said on this topic:

The Facility also may purchase U.S.-listed ETFs whose investment objective is to provide broad exposure to the market for U.S. corporate bonds. The preponderance of ETF holdings will be of ETFs whose primary investment objective is exposure to U.S. investment-grade corporate bonds, and the remainder will be in ETFs whose primary investment objective is exposure to U.S. high-yield corporate bonds

Naturally, the news cheered beaten down markets, and was enough to send junk bond ETFs such as JNK and HYG soaring.

One month later, following a surge in inquiry including from the bond king Jeff Gundlach as to when the Fed would actually start buying corporate bond ETFs, the Fed realized it would not be able to jawbone markets any more and would have to put its money where its term sheet was, and on May 11 the NY Fed said it would “begin purchases of exchange-traded funds (ETFs) on May 12.”

And while the central bank said the focus of its ETF purchases would be on IG-focused ETFs, the New York Fed also disclosed it would start buying junk bonds ETFs as well:

As specified in the term sheet, the SMCCF may purchase U.S.-listed ETFs whose investment objective is to provide broad exposure to the market for U.S. corporate bonds. The preponderance of ETF holdings will be of ETFs whose primary investment objective is exposure to U.S. investment-grade corporate bonds, and the remainder will be in ETFs whose primary investment objective is exposure to U.S. high-yield corporate bonds.

Then, last Thursday, we reported that as part of the Fed’s record balance sheet, which for the first time ever surpassed $7 trillion, the Fed disclosed that it also held $1.8 billion under Corporate Credit Facility holdings, the line item that include purchases of both investment grade (LQD) and junk bonds ETFs (HYG, JNK, etc).

This came two days after Powell defended the Fed’s program to buy junk bonds during his testimony before the Senate Banking Committee, which asked how purchases of junk bonds is “helping folks on Main Street.” Powell flagged that the Fed allowed for buying bonds from so-called “fallen angels” to ensure there is “no cliff” between the two lending markets (even though as we pointed out previously, a clear cliff has formed), saying “we don’t want to have a cliff there to where investment grade markets are working well, but the leveraged markets are not, non-investment grade markets are not.”

He then added that “we made a very limited, narrow set of actions to support market function in these markets, including buying ETFs, and that’s had an effect to improve market function there.”

Powell concluded by saying “we’re not buying junk bonds generally across the board at all,” which of course is correct: he is merely buying ETFs that have junk bond constituents.

And this is where the Fed’s first major test of directly manipulating and intervening in market functioning is about to take place.

While the Fed’s H.4.1 statement does not breakdown how much of the $1.8 billion in ETF holdings is allocated to  investment grade and how much is junk, it is safe to say that at least $1 dollar of that amount has been allocated to purchases of Junk ETFs.

That will be a problem for Powell, because a quick scan of the holdings of both HYG and JNK reveals that these junk bonds ETFs own, among the hudnreds of other securities, several bonds from the just defaulted rental giant, Hertz.

Here are HYG’s holdings of HTZ bonds: they amount to just over $50MM in face value across 4 bonds (out of a total of $23.3BN in holdings across just over 1,000 bonds).

And here is JNK: just under $$30MM in notional across 3 CUSIPs out of a total of $11.55BN in total assets in the ETF.

And yes, for those asking, both ETFs hold that infamous Hertz bond that was issued last November and that will default before paying a single coupon.

To be sure, we can only extrapolate but it is safe to say that the Fed’s holdings of both these ETFs are modest for the time being, and we assume that the bulk of ETF purchases have targeted the investment grade, LQD ETF; still the fact is that as of this moment, the Fed is a holder, via BlackRock and via HYG and JNK, of bonds which are in default, and which make the Fed a part of the Hertz post-petition equity once it emerges from bankruptcy!

This means that unless the Fed somehow manages to divest of Hertz bonds that comprise its HYG and JNK holdings, the US central bank is as of this moment a stakeholder in the Hertz bankruptcy process, and assuming there is no liquidation, will end up owning a pro-rata stake of the post-petition equity once the company emerges from bankruptcy in the not too distant future.

What happens then nobody knows: will the Fed take a vocal position in the company’s future? Can the Fed even own equities via a debt-to-equity swap? What happens when hundreds of other junk bonds default and the Fed ends up owning billions in post-petition equity pro forma for equitization?

We don’t know; we doubt anyone on Wall Street or in Congress knows. And we are certain that the Fed itself doesn’t know, because in its scramble to stabilize the bond market, it forgot that once companies file for bankruptcy (certainly there is no discussion in the Fed’s term sheets of what happens once its corporate bond holdings default) the Fed will – sooner or later – end up being an equityholder.

As a reminder, the ECB was faced with a similar scandal in Dec 2017 when it ended up holding bonds of insolvent Steinhoff, but back then Mario Draghi quickly liquidated the bonds and the market pretended nothing ever happened. The problem for Powell is that one look at the HYG and JNK holdings reveal dozens if not hundreds of companies which will file for bankruptcy within months if not weeks, suggesting the Hertz debacle is just the start of a bankruptcy flood in which the Fed will emerge as a key actor in bankruptcy court and Powell will have to explain away why it is now an equity stakeholder of bankrupt companies.

We eagerly look forward to Powell answering all these questions, hopefully as soon as this Friday when the Fed chair holds yet another video conference.

end

Michael Snyder describes the USA’s worst unemployment in History.  We now have 1/4 workers who have filed for unemployment benefits in 0202

(Michael Snyder)

 

Worst Unemployment Spike In History – 1 In 4 American Workers Has Filed For Unemployment Benefits In 2020

Authored by Michael Snyder via TheMostImportantNews.com,

Even though most U.S. states have begun the process of “reopening” their economies, the unprecedented tsunami of job losses that we have been experiencing just continues to roll on.  On Thursday, we learned that another 2.4 million Americans filed initial claims for unemployment benefits during the previous week, and that brings the grand total for this pandemic to a whopping 38.6 million.  To get an idea of just how badly this swamps what we witnessed during the last recession, take a look at this chart.  This is the biggest spike in unemployment in all of U.S. history by a very wide margin, and analysts are expecting another huge number once again next week.

After my father got out of the U.S. Navy, he worked as a math teacher for many years, and throughout my life I have always had a deep appreciation for numbers.

And in this case, the numbers are telling us that we are facing something truly horrific.

During the month of February, the number of Americans that were currently employed peaked at 152,463,000.

If you take the 38.6 million workers that have filed for unemployment benefits during this crisis and divide it by 152,463,000, you will find that it gives you a figure of more than 25 percent.

In other words, more than one out of every four jobs in the United States is already gone, and more job losses will be coming week after week.

And of course not everyone that loses a job actually files a claim for unemployment benefits.  So the true percentage of Americans that have lost a job would be even higher.

It had been hoped that the unemployment numbers would begin to normalize once states began “reopening” their economies, but so far that is not really materializing.

For example, Georgia was one of the first states to begin lifting restrictions, but that state also “now leads the country in terms of the proportion of its workforce applying for unemployment assistance”

Georgia’s early move to start easing stay-at-home restrictions nearly a month ago has done little to stem the state’s flood of unemployment claims — illustrating how hard it is to bring jobs back while consumers are still afraid to go outside.

Weekly applications for jobless benefits have remained so elevated that Georgia now leads the country in terms of the proportion of its workforce applying for unemployment assistance. A staggering 40.3 percent of the state’s workers — two out of every five — has filed for unemployment insurance payments since the coronavirus pandemic led to widespread shutdowns in mid-March, a POLITICO review of Labor Department data shows.

Our politicians really didn’t understand what they were doing when they started locking down state after state.  Coming into 2020, the U.S. economy was in an extremely fragile state and was already moving rapidly toward recession territory, and now fear of COVID-19 has burst all of our economic bubbles.

The U.S. economy is now in a death spiral, and a survey that was just conducted by the Census Bureau came up with some numbers that are simply eye-popping

Nearly half of Americans say that either their incomes have declined or they live with another adult who has lost pay through a job loss or reduced hours, the Census Bureau said in survey data released Wednesday.

More than one-fifth of Americans said they had little or no confidence in their ability to pay the next month´s rent or mortgage on time, the survey found.

Already, we are beginning to see mortgage delinquencies rise to very alarming levels.

In fact, in April we witnessed the largest single month jump that has ever been recorded

Mortgage delinquencies surged by 1.6 million in April, the largest single-month jump in history, according to a report from Black Knight, a mortgage technology and data provider. The data includes both homeowners past due on mortgage payments who aren’t in forbearance, along with those in forbearance plans and who didn’t make a mortgage payment in April.

At 6.45%, the national delinquency rate nearly doubled from 3.06% in March, the largest single-month increase recorded, and nearly three times the prior record for a single month during the height of the financial crisis in late 2008, Black Knight said.

Sadly, the truth is that this is only going to get worse.

The “enhanced unemployment benefits” that Congress recently passed have been helping many unemployed Americans to pay their mortgages, but now it appears that President Trump and Senate Majority Leader Mitch McConnell do not intend to extend those benefits past the July deadline.  They are concerned that those benefits have been so generous that they have been discouraging many Americans from going back to work, and they are quite right about that.

Unfortunately, it isn’t just homeowners that have been missing payments.

At this point, the entire commercial real estate industry is on the precipice of a meltdown as rent payments and mortgage payments are being “skipped” all over the nation on a widespread basis.  On Thursday, we learned that even the owners of The Mall of America have been skipping their mortgage payments

The mall, operated by private developers Triple Five Group, skipped mortgage payments in April and May, according to Trepp, a New York-based research firm that tracks the commercial mortgage-backed securities, or CMBS, market.

Unless Congress steps in and showers the entire commercial real estate industry with giant mountains of cash, I don’t see how an unprecedented meltdown can be averted.

It is going to be horrifying to watch, and it is going to absolutely dwarf anything that we witnessed in 2008.

Of course similar things can be said about the economy as a whole.  At this point, Bank of America is projecting that U.S. GDP will fall 40 percent on an annualized basis during the second quarter of this year…

Now that banks have had a chance to evaluate the collapse in the economy in the post-covid world, a new round of GDP forecast revisions is coming, and it’s a doozy, with Bank of America spearheading the latest effort by slashing its Q2 GDP forecast from -30% to -40%.

Not without a trace of irony, BofA’s chief economist Michelle Meyer writes that “words cannot describe” the loss in economic output, which is “unlike anything we have seen in modern history.”

When Bank of America starts sounding like The Economic Collapse Blog, that is a clear sign that things are really starting to fall apart in a major way.

Now that restrictions are being lifted all over the nation, the number of confirmed COVID-19 cases is starting to rise again, and fear of this virus is going to paralyze economic activity for the foreseeable future.

And what most Americans still don’t understand is that what we have experienced so far is just the beginning…

end
Brandon Smith provides an alternative view on what is happening and what to expect
(Brandon Smith)

The Economic “Reopening” Is A Fake Out

Authored by Brandon Smith via Alt-Market.com,

How does one define an economic “reopening”? I think most people would say that a reopening means that everything goes back to the way it was before the crisis; or at least as close as possible.  Most people would also say that a reopening is something that will last.  Simply declaring “America has reopened” while keeping many restrictions in place in certain parts of the country is a bit of a farce.  And, reopening with the intention of implementing lockdowns again in a matter of weeks without explaining the situation to the public is a scam of the highest order.

For example, states like New York, California, Illinois and New Jersey have extended their lockdowns; with LA’s extension remaining ambiguous after they initially declared restrictions for another 3 months. New York’s lockdown is extended to the end of May (so far). This is the case in many US states and cities, while rural areas are mostly open. This is being called a “partial reopening”, but is there a purpose behind the uneven approach?

As I predicted in my article ‘Pandemic And Economic Collapse: The Next 60 Days’, the restrictions will continue in major US population centers while rural areas have mostly opened with much fanfare. The end result of this will be a flood of city dwellers into rural towns looking for relief from more strict lockdown conditions. In about a month, we should expect new viral clusters in places where there was limited transmission. I suggest that before the 4th of July holiday, state governments and the Federal government will be talking about new lockdowns, using the predictable infection spike as an excuse.

This is happening in Northeast China right now – another resurgence has occurred and 100 million people are now subject to quarantine restrictions. China’s reopening is barely two weeks old, and concerns of infection “flare ups” were widespread when the announcement was made. Now the mainstream media seems to be confused; is China open, or locked down? Of course, we may never know how bad the problem is and was in China as their numbers have been shown to be utterly rigged and suppressed from the beginning, but the point is that the phrase “reopening” is meaningless there, just as it will be meaningless here in the US.

This is part of the plan. The farce of reopenings does indeed have a purpose. I discuss this in great detail in my article ‘Waves Of Mutilation: Medical Tyranny And The Cashless Society’ published in April. The globalists are clearly the only beneficiaries of this event; with a world-wide surveillance state now openly on the table along with an accelerated shift into digital currency systems, the globalists are either taking advantage of this crisis to push their agenda, or they ENGINEERED the virus and caused the crisis to push their agenda.

In white papers published by globalists at the Imperial College of London as well as MIT, the plan is openly admittedThey suggest using “waves” of economic openings and then lockdowns to control the spread of the virus. The timelines seem to vary, but in general the models call for a one month open, two months closed cycle. The goal is to deliberately increase infections every couple of months in specific regions of a country, then declare economic shutdown and quarantine measures once the spread reaches a certain level; this is meant to continue until a vaccine is developed, which could take years.

When the globalists at MIT say “We are not going back to normal”; this is what they mean. Right now, the general public (at least in some parts of the country) is cheering the reopenings, but what they don’t realize is that the reopenings are an illusion. Restrictions are going to remain in place in many states and cities, while they will be lifted and then re-instituted in others. In fact the situation is going to become much worse over time, by design.

The next lockdown, whenever it is announced, will be absolutely devastating to the US economy which is already in a downward spiral.The mitigating factors will be how effective central bank stimulus is at stalling the freefall (not very effective so far).  Other factors include the percentage of small businesses that survive the first lockdown and how many jobs those businesses can bring back to the economy. The first lockdown may be survivable for a large percentage of Americans and businesses; the second lockdown will financially destroy all but the most prepared. And make no mistake, there WILL be many more lockdowns over the next couple years.

In the meantime, international banks like Wells Fargo and JP Morgan have seen to it that small businesses are hit hard by the crisis by funneling bailout money and paycheck loans to their larger clients over the smaller businesses that the money was intended to go to. Of the 300,000 clients of JP Morgan that applied for an emergency loan through the government bailout program, only 18,000 actually received one and many of these clients were NOT small businesses.

If the cycle of lockdowns continues, small businesses will be wiped off the map. The elites have rigged the economic game; they control where every dollar of the bailout money goes, and many of their corporations are the only institutions that are equipped to survive the onslaught. Some of these companies will go down, but in the long run the goal, in my view, is total centralization of production and distribution.

This is exactly what happened during the Great Depression when JP Morgan and other major banks devoured thousands of small local banks across the country and removed them as competitors from the system. After the depression, banking was completely centralized into the hands of a select few mega-companies. Today, they are attempting to erase all localized small business competition to international corporations.

Taking over the business infrastructure of entire nations and removing all independent competition is only one incentive for the lockdowns to continue. There is also the process of acclimating the public to the idea that lockdowns are the “new normal”. While I do see resistance in certain parts of the world, including the US, many countries in Asia and Europe have witnessed a rather sheepish response to the idea of medical tyranny. I also see an immense wildfire of unconstitutional legislation and illegal state measures being rolled out in the US while the public is distracted by financial circumstances and the virus threat.

Certainly, it appears that most Americans hate the lockdowns. But will they be fooled by the “reopening” into complacency for the next several weeks while the government gets ready to hit them with the next round of restrictions? Will they be so caught off guard they won’t know how to react? Imagine the economic devastation of just one more nationwide lockdown event? It will be carnage, and a lot of hope within the population will be lost.

This will lead to two possible paths: Submission, or rebellion. Either the majority of the American people will accept the lockdowns as a new fact of everyday life, or they will become so enraged by the destruction of their economy that they will revolt.

If the intent is to keep the cycle going until a vaccine is introduced as elitist publications assert, then we have a LONG way to go and this first lockdown was child’s play compared to what comes next.

The excuse for the wave model will be that they need to control and slow the spread of infection over time to avoid overwhelming our medical infrastructure. But this makes very little sense to me at this stage. Perhaps within the first month or two of the pandemic this was somewhat logical, so that we could gauge the threat of the virus. What we know right now is that the virus is at least three times more deadly that the average annual flu; which is something to be concerned about, but not something we should be destroying our economy over.

Frankly, there’s no logic to the wave model unless the agenda is to destroy the economy. If the goal is to continue infecting the population until everyone has developed an immunity or a vaccine is offered, then why not simply remove all the lockdowns permanently and get it over with now? This would result in far less deaths in the long run compared to economic collapse. If the goal is so-called “herd immunity”, then we can achieve that much faster through viral transmission than waiting years for a vaccine that may or may not work.

But the elites don’t care about “herd immunity”; what they care about is is control. The vaccine narrative itself is a form of control. You have to wait for the establishment to save you. You have to wait for them to allow the economy to be opened, even for a short period of time, so that you can then be allowed to work or run your business. You have to wait for permission to live your normal life. And, if the elites get their way, you won’t be given permission until you accept immunity passports, tracking apps and a vaccine.

I will be covering the vaccine issue in a future article, but the underlying message that the public is hearing daily is that you no longer have the power to make decisions for yourself, you must wait for instructions. While the coronavirus is something that should be taken seriously (to a point), the wave model is not an acceptable solution to the problem.

And while many conservatives are looking to Trump to obstruct lockdowns in the future, I would recommend they not hold their breath.  Trump has flip-flopped many times on these issues, including his position on whether or not lockdowns should be left to the states.  With a cabinet overflowing with globalists and banking elites, I would not put much hope in intervention from the White House.

Do not be fooled by the reopening. It is not real because it is not meant to last. It is a steam valve to calm public outrage and to condition us to periodic tyranny. The elites believe that we will eventually acclimate to lockdowns as long as we have a reopening to look forward to a couple months down the road. They believe that our tendency to rebel will be suppressed by false hopes that the next reopening will be a permanent reopening. They believe that after 18 months or more of the wave model we will be so desperate for normalcy that we will do anything to get it, including willingly giving up every last ounce of freedom we have left. This is the true purpose of the pandemic.

*  *  *

If you would like to support the work that Alt-Market does while also receiving content on advanced tactics for defeating the globalist agenda, subscribe to our exclusive newsletter The Wild Bunch Dispatch.  Learn more about it HERE.

end

The closures of restaurant is causing very aggressive rodent behaviour in NY and Baltimore

(zerohedge)

CDC Warns Of “Unusual Or Aggressive Rodent Behavior” Due COVID Lockdowns 

In a follow-up piece to “NYC’s Rat Population Hit With Hunger Crisis During Lockdowns,” the Centers for Disease Control and Prevention (CDC) has published a new warning that rats across the country are becoming hangry as they scavenge for food amid the closure of restaurants triggered by COVID-19 lockdowns.

“Community-wide closures have led to a decrease in food available to rodents, especially in dense commercial areas. Some jurisdictions have reported an increase in rodent activity as rodents search for new sources of food. Environmental health and rodent control programs may see an increase in service requests related to rodents and reports of unusual or aggressive rodent behavior,” the CDC warning read.

The CDC said some regions have reported “an increase in rodent activity” and cautioned about their aggressive behavior.

An urban rodentologist recently said NYC rats have become hostile and are resorting to cannibalism as food becomes scarce with restaurants closed.

“All of a sudden New York City to some degree is cleaner than ever before,” said urban rodentologist Bobby Corrigan. “You end up with this group of disoriented, stressed rats foraging about.”

And it’s not just NYC rats posing problems amid the virus pandemic, Washington, D.C., saw an explosion of calls to the city about rat problems between March and April. Baltimore saw nearly 11,000 calls or online 311 requests about rats during the same period.

Stressed-out and aggressive rats in major US cities could become a regular occurrence until the rat population normalizes, considering our report from several weeks ago that suggests 25% of U.S. restaurants will go out of business.

END

iv) Swamp commentaries)

Wray is a deep stater:  and he will do everything possible not to release Flynn documents.  What a crook

(Sara Carter)

Wray’s Review Of FBI’s Flynn Probe “Is The Fox Guarding The Hen House”

Authored by Sara Carter,

FBI Director Christopher Wray announced Friday that he has ordered the bureau to conduct an internal review of its handling of the probe into former national security adviser Michael Flynn, which has led to his years long battle in federal court.

It’s like the fox guarding the hen house.

Wray’s decision to investigate also comes late. The bureau’s probe only comes after numerous revelations that former senior FBI officials and agents involved in Flynn’s case allegedly engaged in misconduct to target the three star general, who became President Donald Trump’s most trusted campaign advisor.

Despite all these revelations, Wray has promised that the bureau will examine whether any employees engaged in misconduct during the court of the investigation and “evaluate whether any improvements in FBI policies and procedures need to be made.” Based on what we know, how can we trust an unbiased investigation from the very bureau that targeted Flynn.

Let me put it to you this way, over the past year Wray has failed to cooperate with congressional investigations. In fact, many Republican lawmakers have called him out publicly on the lack of cooperation saying, he cares more about protecting the bureaucracy than exposing and resolving the culture of corruption within the bureau.

Wray’s Friday announcement, is in my opinion, a ruse to get lawmakers off his back.

How can we trust that Wray’s internal investigation will expose what actually happened in the case of Flynn, or any of the other Trump campaign officials that were targeted by the former Obama administration’s intelligence and law enforcement apparatus.

It’s Wray’s FBI that continues to battle all the Judicial Watch Freedom of Information Act requests regarding the investigation into Flynn, along with any requests that would expose  information on the Russia hoax investigation. One in particular, is the request to obtain all the text messages and emails sent and received by former Deputy Director Andrew McCabe.

The FBI defended itself in its Friday announcement saying that in addition to its own internal review, it has already cooperated with other inquiries assigned by Attorney General William Barr. But still Wray has not approved subpoena’s for employees and others that lawmakers want to interview behind closed doors in Congress.

The recent documented discoveries by the Department of Justice make it all the more imperative that an outside review of the FBI’s handling of Flynn’s case is required. Those documents, which shed light on the actions by the bureau against Flynn, led to the DOJ’s decision to drop all charges against him. It was, after all, DOJ Attorney Jeffery Jensen who discovered the FBI documents regarding Flynn that have aided his defense attorney Sidney Powell in getting the truth out to they American people.

Powell, like me, doesn’t believe an internal review is appropriate.

“Wow? And how is he going to investigate himself,” she questioned in a Tweet. “And how could anyone trust it? FBI Director Wray opens internal review into how bureau handled Michael Flynn case.”

Last week, this reporter published the growing divide between Congressional Republicans on the House Judiciary Committee and Wray. The lawmakers have accused Wray of failing to respond to numerous requests to speak with FBI Special Agent Joe Pientka, who along with former FBI Special Agent Peter Strzok, conducted the now infamous White House interview with Flynn on Jan. 24, 2017.

Further, the lawmakers have also requested to speak with the FBI’s former head of the Counterintelligence Division, Bill Priestap, whose unsealed handwritten notes revealed the possible ‘nefarious’ motivations behind the FBI’s investigation of Flynn.

“Michael Flynn was wronged by the FBI,” said a senior Republican official last week, with direct knowledge of the Flynn investigation.

“Sadly Director Wray has shown little interest in getting to the bottom of what actually happened with the Flynn case. Wray’s lackadaisical attitude is an embarrassment to the rank and file agents at the bureau, whose names have been dragged through the mud time and time again throughout the Russia-gate investigation. Wray needs to wake up and work with Congress. If he doesn’t maybe it’s time for him to go.

Powell argued that Flynn had pleaded guilty because his former Special Counsel Robert Mueller, along with his prosecutors, threatened to target his son. Those prosecutors also coerced Flynn, whose finances were depleted by his previous defense team. Mueller’s team got Flynn to plead guilty to lying to the FBI about a phone conversation he had with the former Russian ambassador Sergey Kislyak during the presidential transition period. However, the agents who interviewed him did not believe he was lying.

Currently the DOJ’s request to dismiss the case is now pending before federal Judge Emmet Sullivan. Sullivan has failed to grant the DOJ’s request to dismiss the case and because of that Powell has filed a writ of mandamus to the U.S. D.C. Court of Appeals seeking the immediate removal of Sullivan, or to dismiss the prosecution as requested by the DOJ.

end

Strange: Flynn;s Judge Sullivan outsources a high profile lawyer to explain to the appellant court why he will not dismiss his case.

very weird..

(zerohedge)

 

Flynn Judge Outsources High-Profile Lawyer To Explain Why He Won’t Dismiss Case

The Obama-appointed activist judge holding up the dismissal of the Michael Flynn case can’t be bothered – or simply doesn’t have the skillset required, to defend his decision not to grant the Justice Department’s request to drop the case.

In a reminder that the ‘swamp’ has many tentacles, the Post (tentacle-ception) a Saturday report in the Washington Post that District Judge Emmet G. Sullivan has retained Beth Wilkinson to represent him after the U.S. District Court of Appeals for the District of Columbia ordered him to explain what on God’s green earth he’s up to, after refusing to grant the DOJ’s request to drop the Flynn case in light of evidence revealing that the FBI obtained a guilty plea as part of a scheme to entrap the former Trump Director of National Intelligence.

According to the report, “The U.S. District Court of Appeals for the District of Columbia Circuit is now examining the judge’s actions and the larger case against Flynn after lawyers for President Trump’s former national security adviser asked the court to force Sullivan to toss Flynn’s guilty plea.”

Wilkinson, known for her top-notch legal skills and get-results style, is expected to file a notice with the court in the coming week about representing the judge. She declined to comment when reached Friday evening. Sullivan also declined to comment through his office.

A federal judge doesn’t typically hire private counsel to respond to an appeals court, and yet so much about Flynn’s case has been a departure from the norm. A defendant doesn’t normally plead guilty under oath and then try to withdraw that admission, as Flynn did. The Justice Department almost never drops a case once it has essentially won a conviction, a signed guilty plea, as Attorney General William P. Barr ordered earlier this month. –Washington Post

Wilkinson notably represented Supreme Court Justice Brett Kavanaugh amid accusations of sexual assault during his nomination, as well as a Clinton lawyer during the investigation into whether she mishandled classified information by using a home-brew server.

Apparently, Sullivan needs Wilkinson’s help to explain what he’s up to – and why he isn’t simply the deep state’s bitch.

 

end
No wonder Biden will be soft on China; questions are now being raised on Chinese donations to Biden charitable organizations..they refuse to disclose funding.
(zero hedge)

Questions Over Chinese Influence Emerge After Biden Charitable Organizations Refuse To Disclose Funding

Following his departure from the Obama administration in 2017, former Vice President Joe Biden established three charitable organizations; the Penn Biden Center for Diplomacy and Global Engagement, the Biden Institute at the University of Delaware, and the Biden Cancer Initiative.

And as the Washington Free Beacon notes, many of Biden’s nonprofits have become landing spots for his former – and potentially future – White House aides.

The Penn Biden Center, which had a “soft opening” in March 2017 and officially opened its doors in February 2018, has served as a national security council-in-waiting for Biden, employing his top White House foreign policy advisers Colin Kahl, Michael Carpenter, and Jeffrey Prescott. –Free Beacon

Yet, when asked about their sources of funding, the Biden entities have been anything but transparent. For example, when the Free Beacon asked a Biden Center spokesman about its funding, they said it was “a question for my colleagues at main university.” Penn spokesman Stephen MacCarthy simply blew off multiple requests for comment, as did the Biden campaign.

The Biden Cancer initiative, which had $2.1 million in assets in 2018 before suspending operations last year, similarly declined to provide a list of donors.

And the Biden Institute at the University of Delaware has also refused requests for transparency by the Free Beacon.

What we do know, however, is that the University of Pennsylvania received a 300% increase in donations since the Biden Center’s soft opening – from $31 million in 2016 to $100 million last year, according to records from the Department of Education. The largest contributor?China – which contributed $61 million in gifts and contracts between March 2017 and the end of last year. In the preceding four years – before the Biden Center opened, Penn took in just $19 million from China.

The donations included a $502,750 “monetary gift” in October 2017 from the State Administration of Foreign Experts Affairs, a Chinese government agency that helps administer the regime’s “Thousand Talents Plan.” Federal prosecutors claim the program is linked to Chinese espionage operations at American universities and have prosecuted academics for hiding their involvement in it. Other contributors included China’s Zhejiang University, the China Merchants Bank, and the China Everbright Group, a state-owned investment group, according to federal records. –Free Beacon

Is this why Joe Biden has been soft on China?

Or was Biden downplaying China due to the $1.5 billion private equity deal his son Hunter inked in 2013, weeks after the two Bidens flew to China on Air Force Two?

Back to the lecture at hand, many of the Chinese contributions to the University of Pennsylvania were listed as coming from “anonymous” donors – which experts have called an “easy tactic” which allows the Chinese to penetrate the US education system.

“Anonymous giving to universities is an easy tactic the Chinese Communist Party can use to further its pernicious influence in American universities,” said Indo-Pacific studies fellow at the American Foreign Policy Council, Michael Sobolik.

Between March 2017 and the end of 2019, Penn received $21 million from China spread across 23 anonymous gifts. In the preceding four years, the university had just five donations from China totaling under $5 million.

“Policymakers should investigate this vulnerability further and take necessary steps to close the loophole,” said Sobolik. “If universities and professors are lax in their reporting, the Department of Education, and when appropriate the Department of Justice, should hold them accountable.”

Government watchdog group, The National Legal and Policy Center, filed a complaint with the Department of Education on Wednesday requesting an investigation into Penn’s anonymous Chinese funding, according to the Beacon, which received a copy.

“Joe Biden’s affiliation with the Penn Biden Center further raises concerns of foreign influence not unlike those raised when the Clinton Foundation received millions of dollars in donations while Hillary Clinton was running for president,” reads the complaint, which asks the DoE to “refer the matter to the Department of Justice for civil enforcement in federal court, and seek recoupment of all costs to the U.S. government for investigating and enforcing the reporting and disclosure laws of China monetary gifts and contracts.”

The anonymous contributions could also run afoul of federal law that requires universities to disclose the source of any foreign donation or contract over $250,000, according to the NLPC.

“The reporting and disclosure violations of gifts from China to U of Penn and its Penn Biden Center are both numerous and flagrant,” said Paul Kamenar, counsel for NLPC. “The Department of Justice should take swift enforcement action in federal court and recoup all costs getting them to comply with the law.”

The NLPC said in its letter the University of Pennsylvania and the Penn Biden Center were “particularly vulnerable to China government influences due to the large amounts of China donations and contracts” at the school.

Penn’s investment in the Penn Biden Center has been significant: a luxe D.C. office directly across from the U.S. Capitol Building in addition to employment for Biden’s longtime foreign policy aides; highly promoted conferences featuring Biden conversing with foreign leaders; and a total of $900,000 in payments to the former vice president, according to his tax records. –Free Beacon

The website for the Biden Center – which is part of the University of Pennsylvania’s “Penn Global” department – features photos of Biden meeting with Chinese president Xi Jinping and other world leaders. It handles the university’s foreign research and outreach programs, which have become increasingly focused on China in recent years, according to the report.

According to the Penn Global website, the university has “over 20 international partnerships with Chinese institutions” and has conducted “over 350 research projects and instructional activities in China.”

In 2015, a $10 million research-matching funding program was launched. The China Research and Engagement fund was designed to fund Penn medical research in China – which has included studies to improve the country’s pork production – as well as aeronautical engineering projects to help China reach its national aviation goals.

You don’t say?

END

DOJ Closes Insider Trading Investigations Into Three Senators, Keeps Burr Probe Going

The Department of Justice is closing investigations into three US senators accused of trading stocks based on privileged coronavirus briefings right before the market tanked due to pandemic, however a fourth investigation into Sen. Richard Burr will continue, according to the Journal, citing people familiar with the matter.

Defense attorneys for Republican Senators James Inhofe (OK) and Kelly Loeffler (GA), as well as Democrat Dianne Feinstein (CA) were notified by prosecutors on Tuesday that they are closing investigations into their trades.

All of the lawmakers denied wrongdoing – with Inhofe and Loeffler saying their financial advisers made the trades which they had no knowledge of until after the fact.

The FBI began investigating the trades two months ago after lawmakers learned of the threat of coronavirus during closed-door briefings. In some cases, the trades saved lawmakers up to hundreds of thousands of dollars in losses as stocks tanked into mid-March.

Burr, meanwhile, has temporarily stepped down as Chairman of the Senate Intelligence Committee. The FBI seized the cell phone of the North Carolina Republican, who had more of a direct involvement in his trades.

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

Another wave of bad news appeared on Friday.

Hong Kong braces for turmoil over new China law as stocks slide on risk of ‘strong’ Trump reaction – The draft law bans “treason, secession, sedition and subversion.”… Full details of the law have not been released. However, critics say it will curb freedoms and puts Hong Kong’s pro-democracy activists on a dangerous collision course with China’s central government in Beijing…

https://www.usatoday.com/story/news/world/2020/05/22/hong-kong-turmoil-china-set-impose-national-security-law-trump-reaction/5242220002/

Pompeo condemns China’s proposed Hong Kong national security law

“Any decision impinging on Hong Kong’s autonomy and freedoms as guaranteed under the Sino-British Joint Declaration and the Basic Law would inevitably impact our assessment of One Country, Two Systems and the status of the territory,” Pompeo said in a statement Friday…

https://www.newsweek.com/chinas-proposed-security-law-would-death-knell-hong-kong-freedom-us-says-1505963

Robeco’s @jsblokland: Is there a COVID19 proof business model for airlines? Qantas stating airfares could jump nine-fold with social distancing.

Numerous friends, family members and clients have told us that their summer vacations this year will be restricted to loading up the car and driving to Wally World.  Could be a tough summer for airlines!

The ensuing story might be true, but now is not the time for the media to fan the flames of discord and envy in the USA.  There are even more American billionaires that have lost enormous sums of money and are struggling to keep their businesses solvent and their employees active.

IBM is cutting ‘several thousand’ jobs, a month after new CEO Arvind Krishna withdrew its financial outlook   https://www.businessinsider.com/ibm-icutting-several-thousand-jobs-covid-19-2020-5

Ex-Dallas Fed analyst @DiMartinoBooth: The second wave of unemployment among white collar workers continues to build. Silicon Valley, @Dell & now @IBM… the silent wave is pulled job openings. The first wave is directly tied to COVID-19 affected industries.

Fauci says staying closed for too long could cause ‘irreparable damage’ [Ya think!]

Stay-at-home orders intended to curb the spread of the coronavirus could end up causing “irreparable damage” if imposed for too long, White House health advisor Dr. Anthony Fauci said…\

    “But now is the time, depending upon where you are and what your situation is, to begin to seriously look at reopening the economy, reopening the country to try to get back to some degree of normal.”..

https://www.cnbc.com/2020/05/22/dr-anthony-fauci-says-staying-closed-for-too-long-could-cause-irreparable-damage.html

[50-yr MSM icon] Brit Hume @brithume: I watched his WH Covid 19 briefings almost without exception and don’t recall him acknowledging this [damage from long closings] this once. Now he tells us.

Fauci NEVER warned about prolonged closings in March & April.  Why the big change, Dr. Fauci?

Here’s a solid reason why Fauci has changed his stripes, Fed officials are openly gloomy and Buffett sold a chunk of his bank stocks: The US has about two months to get the economy back on its legs or else!

Starting in April and continuing for the past several weeks, banks gave debtors 90-day forbearance.

Sometime in July, really bad stuff could hit the fan.  Businesses that do not reopen or open and soon fail or give up will default.  Then, banks will own a bulging inventory of malls, apartment buildings, equipment, boats, ships, trains, planes and automobiles.  According to bank sources, big banks are doubling and tripling staff that deals in loan defaults, repossessions and distressed assets.

Default Notices Are Piling Up for Retailers Unable to Pay Rent

Retail landlords are sending out thousands of default notices to tenants, a situation that could tip already-ailing retailers into bankruptcy or total collapse.  Department stores, restaurants, apparel merchants and specialty chains have been getting the notices as property owners who’ve gone unpaid for as long as three months lose patience, according to people with knowledge of the matter and court filing… https://www.bloomberg.com/news/articles/2020-05-22/default-notices-are-piling-up-for-retailers-unable-to-pay-rent

GM’s Pickup Plants Are the Latest Victims of Bumpy Auto Reopen

Two pickup plants in Michigan and Indiana as the manufacturer struggles to procure enough parts

https://www.bloomberg.com/news/articles/2020-05-22/gm-s-pickup-plants-are-the-latest-victims-of-bumpy-auto-reopen

Hertz Dumps Fleet of Corvettes While Trying to Avoid Bankruptcy

A tidal wave of supply is hitting the used car market as insolvent rental car companies are forced to liquidate fleets to avert bankruptcy or, if past the default Rubicon, repay creditors during bankruptcy proceedings…   https://www.zerohedge.com/markets/hertz-crushes-used-car-prices-it-dumps-fleet-corvettes-avert-bankruptcy

Hertz shares plummet more than 50% after Dow Jones reports that the company is preparing a bankruptcy filing for a soon as tonight. [How many Hertz bonds does the Fed own?]https://cnb.cx/2zZvn9B

Deutsche Bank Asks Top Managers to Forego a Month’s Pay

https://www.bloomberg.com/amp/news/articles/2020-05-23/deutsche-bank-asks-top-managers-to-forego-a-month-s-pay

De Blasio says shuttered businesses will be able to hang on for months

Mayor Bill de Blasio insists city businesses forced to close because of the coronavirus outbreak are doing just fine and will be able to stay shuttered for months to come … City Councilman Mark Gjonaj blasted the mayor’s remarks“Out of all the things that have come out of his mouth this is the most outrageous. He lives in a de Blasio land. That is the furthest thing from the truth,” said theBronx Democrat, who chairs the council’s small business committee…

https://nypost.com/2020/05/22/de-blasio-says-shuttered-businesses-will-be-able-to-hang-on/

NY outsources jobs to process 2 million unemployment claims [to states with lower minimum wages]

https://nypost.com/2020/05/22/ny-outsources-jobs-to-process-2-million-jobless-insurance-claims/

Gov. Tom Wolf: Pennsylvania Cannot Return to Normal without ‘Foolproof’ Vaccine

California Gov. Gavin Newsom (D) also said the Golden State would not be “going back to normal” until a vaccine is available… “Until a proven vaccine is widely available, we cannot firmly enter the ‘new normal,’ when life will once again return to all our workplaces, downtowns, and main streets,” New Jersey Gov. Phil Murphy (D) stated…

https://www.breitbart.com/politics/2020/05/21/gov-tom-wolf-pennsylvania-cannot-return-normal-without-foolproof-vaccine/

Already facing backlash, Whitmer extends Michigan stay-home order until mid-June

Democratic governor says she knows importance of restarting economy but state ‘not out of the woods yet.’   https://justthenews.com/politics-policy/coronavirus/already-facing-backlash-whitmer-extends-michigan-stay-home-order-until

DOJ warns LA officials stay-home extension may be ‘arbitrary and unlawful’

Came in response to comments from Los Angeles Mayor Eric Garcetti, who had asserted in a “Good Morning America” interview last week that the city will “never be completely open until we have a cure” for the coronavirus, which has claimed more than 3,600 lives in California…

    Dreiband also noted recent remarks by Los Angeles County Public Health Director Barbara Ferrer, who said last week that “with all certainty” a form of stay-home restrictions will remain in place for the county’s 10 million residents “for the next three months.…   

http://www.wicz.com/story/42166108/doj-warns-la-officials-stay-home-extension-may-be-arbitrary-and-unlawful

Justice Department backs lawsuit against Illinois governor’s coronavirus lockdown

https://justthenews.com/government/federal-agencies/justice-department-backs-lawsuit-against-illinois-governors-coronavirus

Illinois construction workers traveling to Wisconsin to work on Pritzker’s farm amid stay-at-home order    https://www.fox32chicago.com/news/illinois-construction-workers-traveling-to-wisconsin-to-work-on-pritzkers-farm-amid-stay-at-home-order

Never mind the courts, says Pritzker. Only his views of the ‘science and data’ matter.

“The judiciary aren’t experts at public health. Taking these things to court does not resolve the public health matter…  https://wirepoints.org/never-mind-the-courts-says-pritzker-only-his-view-of-the-science-and-data-matter-wirepoints/

@toddstarnes: Chicago mayor sends armed police to shut down black Baptist churchThe pastor is calling on the DOJ and @realDonaldTrump for helphttps://bit.ly/3gkQYdq

9 people are dead & at least 27 others wounded so far in weekend shootings in Chicago — the deadliest Memorial Day weekend since 2015 – Chicago Sun Times

Coronavirus resisters could get violent if lockdowns drag on, feds warn

The federal government is warning that essential workers and authority figures — public and private — are at the highest risk of being attacked by stay-at-home resisters as the coronavirus pandemic drags on.

https://nypost.com/2020/05/23/covid-resisters-could-get-violent-if-lockdowns-drag-on-feds/amp/

WaPo: Trump calls on governors to allow places of worship to open this weekend

https://www.washingtonpost.com/nation/2020/05/22/coronavirus-update-us/

@paulsperry_: The median age of COVID-19 fatalities in the U.S. is 81.

We’re old enough to remember when experts said Covid-19 cases were going to overwhelm US hospitals.

$21M Brooklyn field hospital never saw a patient amid coronavirus pandemic https://trib.al/YVLoer3

‘Hundreds of millions of dollars’ lost in Washington to unemployment fraud amid coronavirus joblessness surge – could mean even longer delays for thousands of jobless workers still waiting for legitimate benefits…[Government doing what it does best, squandering money.]

https://www.seattletimes.com/business/economy/washington-adds-more-than-145000-weekly-jobless-claims-as-coronavirus-crisis-lingers/

@HowieCarrShow: Death count in MA rises to 6228, of whom 83 have been under the age of 50. The average age of victims is 82 & 98.4% of all victims had at least one “underlying condition.”  For this Gov. Charlie Parker has destroyed MA’s economy & cost more than 1,000,000 residents their jobs.

The CDC confirms remarkably low coronavirus death rate. Where is the media?

The overall infection fatality rate to just 0.26% — almost exactly where Stanford researchers pegged it a month ago… the 3.4% estimate of the World Health Organization… helped drive the panic and the lockdowns…https://www.conservativereview.com/news/horowitz-cdc-confirms-remarkably-low-coronavirus-death-rate-media/

@paulsperry_: Did we shut down the economy and kill 30 million jobs to save people from basically the equivalent of Legionnaire’s disease?

Oxford University Vaccine Trials Run Into Hurdle

Falling rate of infection means success rate may drop to 50%

It’s a race against the virus disappearing, and against time,” Professor Adrian Hill… told the newspaper. “…But at the moment, there’s a 50% chance that we get no result at all.”…

https://www.bloomberg.com/amp/news/articles/2020-05-24/oxford-university-vaccine-trials-run-into-hurdle-telegraph

HCQ breakthrough: ICMR finds it’s effective in preventing coronavirus, expands its use

Three studies [three central government hospitals in New Delhi.] find that hydroxychloroquine reduces chances of contracting Covid, so ICMR allows more frontline workers to take it as a preventive drug.

https://theprint.in/health/hcq-breakthrough-icmr-finds-its-effective-in-preventing-coronavirus-expands-its-use/427583/

On Monday: Japan moves forward with $1tn in new coronavirus relief

Corporate safety net main focus of second extra budget

https://asia.nikkei.com/Spotlight/Coronavirus/Japan-moves-forward-with-1tn-in-new-coronavirus-relief

On Monday: Abe declares end to Japan’s coronavirus emergency

Prime minister trumpets reopening to counter slumping public approval ratings

https://asia.nikkei.com/Spotlight/Coronavirus/Abe-declares-end-to-Japan-s-coronavirus-emergency

Coronavirus may have been a ‘cell-culture experiment’ gone wrong

The study showed the virus bound more tightly to human-ACE2 than to any of the other animals they tested. “It was like it was designed to infect humans,” he said…https://www.skynews.com.au/details/_6158843835001

Daily Mail Online @MailOnline: COVID-19 patients stop being infectious after 11 days even if they still test positive for the disease, study finds https://trib.al/HpOzS0V

Excess deaths during the Covid-19 pandemic: An international comparison

Conclusion: A substantial proportion of excess deaths observed during the current COVID-19 pandemic are not attributed to COVID-19 and may represent unrecognised deaths due to Covid-19, an excess of deaths due to other causes, or both.   https://www.medrxiv.org/content/10.1101/2020.04.21.20073114v3

California doctors say they’ve seen more deaths from suicide than coronavirus since lockdowns

https://www.washingtonexaminer.com/news/california-doctors-say-theyve-seen-more-deaths-from-suicide-than-coronavirus-since-lockdowns

@Daniilgor: A study in which an asymptomatic carrier failed to infect any of the 455 contacts. Any remaining evidence for C19 panic is unravelling fast

A Study on Infectivity of Asymptomatic SARS-CoV-2 Carriers

In summary, all the 455 contacts were excluded from SARS-CoV-2 infection and we conclude that the infectivity of some asymptomatic SARS-CoV-2 carriers might be weak…

https://pubmed.ncbi.nlm.nih.gov/32405162/?fbclid=IwAR3lpo_jjq7MRsoIXgzmjjGREL7lzW22XeRRk0NO_Y7rvVl150e4CbMo0c

The Remdesivir Study Is Finally Out: Drug Only Helped Those on Oxygen, Finds Mortality too High for Standalone Treatment [So, stocks and Gilead soared twice on BS.  Nice stock market!]

https://www.zerohedge.com/technology/remdesivir-study-finally-out-drug-only-helped-those-oxygen-finds-mortality-too-high

U.S. Hits Back at China’s Alleged Attempts to Restrict Airlines

The DOT late on Friday announced that China had violated a bilateral agreement allowing airline service between the two countries by failing to respond to requests by Delta Air Lines Inc. and United Airlines… https://www.bloomberg.com/amp/news/articles/2020-05-23/u-s-hits-back-at-china-s-alleged-attempts-to-restrict-airlines

US colleges accepted billions in unreported foreign donations from China and Russia

The DOE has so far found $6 billion in unreported donations as a part of House Republicans’ inquiry into U.S. colleges under investigation for violating Section 117 of the Higher Education Act of 1965…

https://www.theblaze.com/news/us-colleges-china-russia-donations

China diplomat says U.S. should not challenge China’s red line on Taiwan

https://uk.reuters.com/article/china-parliament-taiwan/china-diplomat-says-us-should-not-challenge-chinas-red-line-on-taiwan-idUKB9N2A602N

Central banks are creating ‘fake markets,’ Bank of America strategists say [No shirt Sherlock!]

Central banks have deployed a total of around $4 trillion of asset purchases over the past eight weeks, and the global equity market cap has surged by $15 trillion…

https://www.cnbc.com/2020/05/22/central-banks-are-creating-fake-markets-bank-of-america-strategists-say.html

@realDonaldTrump: The United States cannot have all Mail in BallotsIt will be the greatest Rigged Election in history. People grab them from mailboxes, print thousands of forgeries and “force” people to sign. Also, forge names. Some absentee OK, when necessary. Trying to use Covid for this Scam!

@TomFitton: BREAKING: US Post Office founds “three tubs” of absentee ballots for Wisconsin election in Chicago — the day after the Election! 1,600 votes!    https://www.washingtonpost.com/politics/the-pandemic-has-already-altered-how-tens-of-millions-of-americans-can-cast-their-ballots-this-year/2020/05/23/0e3c3bf8-9532-11ea-91d7-cf4423d47683_story.html

President Trump: ‘I have a chance to break the deep state’

‘It’s a vicious group of people. It’s very bad for our country,’ the president says

     “ “I’m fighting the swamp…If it keeps going the way it’s going, I have a chance to break the deep state. It’s a vicious group of people. It’s very bad for our country.”…

https://justthenews.com/politics-policy/all-things-trump/president-trump-i-have-chance-break-deep-state#.XsmQOU5KxvI.twitter

A nation of sheep will beget a government of wolves.” — Edward R. Murrow

Joe Biden on CNBC: “I’m prepared to say that I have a record over 40 years, and that I’m going to beat Joe Biden.”  https://twitter.com/johncardillo/status/1263816200334737408?s=09

Joe Biden: ‘No One Should Be Going to Jail for Drug Crime, Period, Nobody’

“We should wait until the studies are done, and I think science matters,” he said. Charlemagne responded that America already had “decades” of data from the drug’s usage across the country. “I think we got decades and decades of studies from actual weed smokers though,” he said. “Yeah we do,” Biden grinned. “I know a lot of weed smokers.”

https://www.breitbart.com/politics/2020/05/22/joe-biden-no-one-should-be-going-to-jail-for-drug-crime-period-nobody/

Biden: ‘If you have a problem figuring out whether you’re for me or Trump, then you ain’t black’

The remarks from the presumptive Democratic presidential nominee came during an at-times contentious interview on “The Breakfast Club” that aired Friday morning, during which co-host Charlamagne challenged Biden over his decade’s long record on racial issues and current contemplation of a black, female running mate… [Biden said he is considering “multiple” black women to be his VP.]

It was then that an aide to the Biden campaign could be heard interjecting into the conversation, attempting to cut short the interview. “Thank you so much. That’s really our time. I apologize,” the aide said.    “You can’t do that to black media!” Charlamagne retorted.

    “I do that to white media and black media because my wife has to go on at 6 o’clock,” Biden shot back, apparently referring to a subsequent media appearance by Jill Biden, before adding: “Uh oh. I’m in trouble… “You’ve got more questions?” Biden replied. “Well, I tell you what, if you have a problem figuring out whether you’re for me or Trump, then you ain’t black.”

https://www.politico.com/news/2020/05/22/joe-biden-breakfast-club-interview-274490

Due to the outrage from prominent Black Americans, Biden reportedly issued a quasi-apology late Friday afternoon on a call to black business leaders: “I should not have been so cavalier.  I’ve never, never, ever taken the African American community for granted.”

By early Friday night, Team Trump was merchandising “#YouAin’tBlack!”- Joe Biden t-shirts on its website.  https://shop.donaldjtrump.com/products/youaintblack-tee-1

To compensate for his unthinkable gaffe on Friday morning, Joe later went wild with pronouncements.

Biden: “The NAACP’s endorsed me every time I’ve run.”  Derrick Johnson, NAACP President: “The NAACP is a non-partisan organization and does not endorse candidates for political office at any level.

Biden says he would repeal Pres. Trump tax cuts, raise corporate tax rate back to 28% if elected    https://www.oann.com/biden-says-he-would-repeal-president-trump-tax-cuts-raise-corporate-tax-rate-back-to-28-if-elected/

@JoeBiden tweeted at 0:40 PM on Fri, May 22, 2020: I’ve said it before, and I’ll say it again: No company pulling in billions of dollars in profits should pay a lower tax rate than firefighters and teachers.

It’s time for Amazon to pay its fair share

    @amazon_policy: @JoeBiden, We pay every cent owed. You spent 3 decades in the Senate & know that Congress wrote these tax laws to encourage companies to invest in the US economy. We have. 500k jobs w/ a min wage of $15/hr across 40 states. Assume your complaint is w/ the tax code, not Amazon.

Biden: No More Coal Plants, Need System to ‘Transmit’ Coal

Biden said in an interview on CNBC’s Squawk Box on Friday that as president he would move away from domestic fossil fuel production and then went on to call for a nationwide system to distribute coal…

https://www.breitbart.com/2020-election/2020/05/22/joe-biden-no-more-coal-plants-we-need-a-system-to-transmit-coal-and-wind-across-the-country/amp/

Trump says Biden ‘not mentally sharp enough’ to be POTUS: ‘He doesn’t know he’s alive’

“Well… he doesn’t really have experience because I don’t think he remembers what he did yesterday,” Trump said. “…He was never known as a smart person… Think of it. I’m against somebody that can’t answer simple questions. I’ve never seen anything like it, but here’s what I am against.”…  https://www.foxnews.com/politics/trump-says-biden-not-mentally-sharp-enough-to-be-potus-he-doesnt-know-hes-alive

There’s No Longer Any Question: Biden Carried out a Cover-Up in Ukraine

The real Ukrainegate scandal therefore wasn’t over the now-debunked allegations that Trump engaged in a quid pro quo with current Ukrainian President Zelensky in an attempt to reopen this investigation for supposedly political reasons, but over Biden’s attempts to cover up his son’s corruption in Ukraine in order to not hurt the Vice President’s future campaign prospects.

    This is similar in essence to how the real Russiagate scandal wasn’t about Russia allegedly helping Trump, but about Hillary trading the US’ strategic uranium deposits for Clinton Foundation kickbacks… these criminally incriminating leaks could either throw the party further into disarray or present an opportunity for a so-called “dark horse” replacement to be put forth by the party during its summer convention, meaning that they might have been an inside job by disgruntled Democrat “deep state” operatives who don’t believe in Biden’s ability to beat Trump and want to force the party to replace him… Politically speaking, Biden is now a “dead man walking”…  

https://off-guardian.org/2020/05/22/theres-no-longer-any-question-biden-carried-out-a-cover-up-in-ukraine/

@BenKTallmadge May 23, 2020: Ukrainian MP Valeriy Davydenko found dead in own office’s restroom with a gunshot wound to the head.   Davydenko was défendent in several corruption cases including the theft of funds from the country’s Agriculture Fund.  In Feb 2014, Davychenko and another MP Borys Prykhodko were accused of embezzling US$75M while Prykhodko was the First Deputy Governor of the National Bank of Ukraine.  Following Davychenko’s murder, ex-People’s Deputy Ihor Mosiychuk called for immediate arrest of Prykhodko.

Across Biden Charitable Organizations, a Refusal to Disclose Funding – Government watchdog raises questions about Chinese influence at University of Pennsylvania’s Biden Center

https://freebeacon.com/2020-election/watchdog-raises-questions-about-china-influence-as-penn-biden-center-wont-disclose-donors/

Judge Emmett Sullivan from General Flynn Trial, Arranged Speaking Gig for James Comey at Howard University for $100,000    https://www.thegatewaypundit.com/2020/05/exclusive-judge-emmett-sullivan-general-flynn-trial-arranged-speaking-gig-james-comey-howard-university-100000/

Michael Flynn’s judge – 3 possible reasons he hired a defense attorney [instead of appellate attorney]

After the D.C. Circuit Court last week ordered Judge Sullivan to provide his reasoning in writingfor not granting the Justice Department’s motion to dismiss in the Michael Flynn prosecutionthe judge has taken the highly unusual step by hiring a defense attorney to respond for him…

     First, he could be concerned that any response will be used against him in disciplinary action or some adverse consequence… There already appears to be sufficient evidence just in the public record of Sullivan’s actions in the Flynn case that he has violated several of the canons…

    Second, perhaps Sullivan just doesn’t have a solid rationale

    Third, Sullivan could be bribed, is threatened, or is fulfilling a political promise… There is no evidence that I’m aware of to lean toward this possibility over any others, but it’s one explanation for the bizarre behavior… Also, with the onerously politically biased statements already on the record from Sullivan and now dragging this on further by appointing an amicus, he appears to have some vested interest in the outcome of this case beyond his constitutional judicial role…

https://www.foxnews.com/opinion/michael-flynn-judge-3-possible-reasons-hired-lawyer-jenna-ellis

@RoscoeBDavis1 Jan 3, 2019: Who was the director of the DIA at the time Benghazi went down and who was warning HRC and the Sate Dept, & Leon Panetta that an attack was planned? @GenFlynnand now you know why they were so desperate to get Flynn out of the seat of National Security Advisor.

Ex-CBS News President WSJ op-ed: The ‘Liberal Leaning’ Media Has Passed Its Tipping Point

A return to balance would be commercially unviable. The best solution may be an honest embrace of bias.

https://www.wsj.com/articles/the-liberal-leaning-media-has-passed-its-tipping-point-11590430876

WSJ op-ed: Media Cowardice and the Collusion Hoax

What happens when the press becomes an interest group whose interest isn’t the truth?

https://www.wsj.com/articles/media-cowardice-and-the-collusion-hoax-11590186850

end

Let us close out tonight with this offering courtesy of Peter Schiff and Greg Hunter.

Inflationary Depression Coming – Peter Schiff

By Greg Hunter On May 24, 2020

Money printing by the Fed and Congress is off the charts. The Federal Reserve doubled its balance sheet in a matter of months, and Congress is pumping out trillions of dollars in spending bills to fight the economic crisis caused by the Covid 19 lockdown. The really scary thing is not the massive money printing, but the fact that absolutely nobody seems to care about the risk to the U.S. dollar. Money manager Peter Schiff thinks he knows why, and explains, “(Back in 2008-2009,) even Larry Kudlow was worried about what the Fed was doing, but nobody is worried about it now.  The reason is they have been lulled into this false sense of complacency in that we got away with it the last time . . . and there was no negative consequence. We didn’t have runaway inflation and did not have loss of confidence in the dollar. So, there was no price to be paid. . . . Since we got away with it before, they think they will get away with it again, and I think they are completely wrong. . . .All we did was inflate a bigger bubble, but now this bubble has popped, and it found the mother of all pins in the Coronavirus that put a gaping hole in it, so the air is coming out much faster. Now, they are trying to reflate this thing. We are going to suffer the consequences, not only what we are doing now, but what we did back then. . . . When is all this inflation going to move out of the stock market and into the supermarket? I am surprised this has not already happened, but I do think we are at the end of the line. . . . Here’s what is going on. We are going to have this massive inflation tax. We are seeing price increases at the supermarkets.”

What has to break is the U.S. dollar, and that’s coming, according to Schiff, “We are going to overwhelm with dollar supply. We are printing all this money. The Fed is buying all these bonds. . . . This is it. The Fed is going all in on QE. There is no limit. They are printing all this money, and, so, ultimately, the dollar is going to tank. It hasn’t happened yet, but it will. That’s when the party really ends. That’s when there is massive pressure on consumer prices. That’s when there is massive (upward) pressure on interest rates. . . . This could be an inflationary depression. We could have hyper- inflation. We didn’t have anything like that in the Great Depression. During the 1930’s, prices went down, and people got some relief with lower prices. That made the downturn not as bad. Imagine high unemployment with the cost of living skyrocketing. That’s what we are heading for. It’s going to be the 1970’s only on steroids because it’s going to be a much deeper economic contraction with a much bigger increase in consumer prices.”

Schiff says, “When we reopen, nothing will be the same because we will not be able to reflate this bubble.”

So what do you do? Precious metals are a no-brainer investment. Schiff says, “It’s not that gold is gaining in value, it’s that fiat currencies are all losing value. Gold is the one stable factor. It’s the one thing governments can’t create out of thin air. Every currency in the world, except the dollar, are hitting new record lows against gold. You need more Euros, Rands or Aussie dollars to buy an ounce of gold. . . . The U.S. dollar is losing value more slowly, but this is going to change. We are going to win the race to the bottom. . . . People need to convert their dollars now into gold or silver. If you think the price of gold is going up now, wait til the dollar is the weakest of the currencies. . . . That’s going to accelerate the appreciation of gold . . . and that’s going to put gold in the spotlight as the replacement to the U.S. dollar as the main reserve asset for global central banks.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with money manager and economic expert Peter Schiff, founder of Euro Pacific Capital and Schiff Gold.

-END-

Well that is all for today

I will see you WEDNESDAY night.

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