JUNE 2// A LITTLE RAID ON EXTREMELY LIGHT VOLUME (HAS SOME OF OUR MAJOR TRADERS LEFT FOR LONDON?)//GOLD DOWN $11.20 TO $1726.40//SILVER DOWN 31 CENTS TO $17.95//CLOSE TO 150 TONNES OF GOLD STANDING AT THE GOLD COMEX//2.0 MILLION SILVER OZ STANDING AS WELL//CORONAVIRUS UPDATES//TED BUTLER…IMPORTANT PIECE///UPDATES ON THE VIOLENCE INSIDE THE USA//

GOLD:$1726.40  DOWN $11.20   The quote is London spot price

 

 

 

 

 

Silver:$17.95 DOWN 31 CENTS//LONDON SPOT PRICE

 

Closing access prices:  London spot

 

 

 

i)Gold : $1727.80  LONDON SPOT  4:30 pm

 

ii)SILVER:  $18.08//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

JUNE GOLD:  $1724  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE JUNE: $-2.40.//(BACKWARDATION)

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $1826//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      31 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: 2988

issued: 500 contracts

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,737.800000000 USD
INTENT DATE: 06/01/2020 DELIVERY DATE: 06/03/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 3183 33
072 H GOLDMAN 1122
099 H DB AG 144
104 C MIZUHO 20
118 H MACQUARIE FUT 243
132 C SG AMERICAS 26
152 C DORMAN TRADING 6
159 C ED&F MAN CAP 1
167 C MAREX 9
190 H BMO CAPITAL 51
323 H HSBC 30
355 C CREDIT SUISSE 29
357 C WEDBUSH 13
363 H WELLS FARGO SEC 100
365 C ED&F MAN CAPITA 1
555 C BNP PARIBAS SEC 90
555 H BNP PARIBAS SEC 2000
624 C BOFA SECURITIES 128
657 C MORGAN STANLEY 14 314
657 H MORGAN STANLEY 737
661 C JP MORGAN 500 2716
661 H JP MORGAN 272
685 C RJ OBRIEN 15 14
686 C INTL FCSTONE 13 42
686 H INTL FCSTONE 125
690 C ABN AMRO 91 193
709 C BARCLAYS 2
732 C RBC CAP MARKETS 10 22
737 C ADVANTAGE 18 26
800 C MAREX SPEC 61 47
878 C PHILLIP CAPITAL 2 3
880 C CITIGROUP 16 6
905 C ADM 40 32
____________________________________________________________________________________________

TOTAL: 6,280 6,280
MONTH TO DATE: 42,016

 

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 6280 NOTICE(S) FOR 628,000 OZ (19.533 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  42,016 NOTICES FOR 4,201600 OZ  (130.6874 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

10 NOTICE(S) FILED TODAY FOR  50,000  OZ/

total number of notices filed so far this month: 387 for 1,935,000 oz

 

BITCOIN MORNING QUOTE  $10120 DOWN $74

 

BITCOIN AFTERNOON QUOTE.: $9519  DOWN 671

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $11.20 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD// A PAPER DEPOSIT OF 5.26 TONNES OF GOLD INTO THE GLD//

 

GLD: 1,128.40 TONNES OF GOLD//

 

WITH SILVER DOWN 31 CENTS TODAY: AND WITH NO SILVER AROUND

 

A HUGE CHANGES IN SILVER INVENTORY AT THE SLV//

A HUMONGOUS 6.686 MILLION OZ OF SILVER ADDED TO THE SLV//

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 473.315  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A EXTREMELY STRONG SIZED 3754 CONTRACTS FROM 166,442 UP TO 170,099 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH  OUR VERY STRONG 38 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 GOOD EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A HUGE INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 4044 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: 290  AND DEC 0 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  290 CONTRACTS. WITH THE TRANSFER OF 290 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 290 EFP CONTRACTS TRANSLATES INTO 1.450 MILLION OZ  ACCOMPANYING:

1.THE 38 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

45.220 MILLION OZ FINAL STANDING FOR MAY

2.000  MILLION OF INITIALLY STANDING FOR JUNE

 

MONDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 38 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 GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A HUGE INITIAL  SILVER OZ STANDING FOR JUNE,3) CONSIDERABLE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 4069 CONTRACTS OR 20.345 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

SPREADING OPERATIONS

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO SILVER…..

SPREADING OPERATION FOR OUR NEWCOMERS:

 

FOR NEWCOMERS, HERE ARE THE DETAILS:

 

SPREADING LIQUIDATION HAS NOW COMMENCED IN SILVER  AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF JULY.

 

 

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

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

 

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

 

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

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

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

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF JUNE. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (JULY), 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

JUNE

 

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

1433 CONTRACTS (FOR 2 TRADING DAY(S) TOTAL 1433 CONTRACTS) OR 7.165 MILLION OZ: (AVERAGE PER DAY: 717 CONTRACTS OR 3.5825 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 7.165 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 1.023% 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:          1,073.28 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 FINAL:                     77.27 MILLION OZ

JUNE EXP SO FAR                   7.165 MILLION OZ.

EXCHANGE FOR PHYSICAL ISSUANCE FOR THE PAST 60 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 AN EXTREMELY STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 3754, WITH OUR VERY STRONG 38 CENT GAIN IN SILVER PRICING AT THE COMEX ///FRIDAY THE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 290 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:  4044 CONTRACTS (WITH OUR 38 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 290 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 3754 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A STRONG 38 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $18.26 // MONDAY’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. 0.8316 BILLION OZ TO BE EXACT or 118.7% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JUNE  DELIVERY MONTH/ THEY FILED AT THE COMEX: 10 NOTICE(S) FOR  50,000 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  45.220 MILLION OZ//JUNE: 2.000 MILLION OZ//
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE SIZED 5,311 CONTRACTS TO 482,179 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 CONSIDERABLE SIZED LOSS OF COMEX OI OCCURRED DESPITE OUR GAIN IN PRICE  OF $1.30 /// COMEX GOLD TRADING// MONDAY// WE  HAD STRONG BANKER SHORT  COVERING,ANOTHER GIGANTIC SIZED  INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH SOME LONG LIQUIDATION ACCOMPANYING A FAIR  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR GAIN IN PRICE OF $1.30 .

 

WE HAD A VOLUME OF 0  4 -GC CONTRACTS//OPEN INTEREST  11

 

WE LOST A SMALL SIZED 2,921 CONTRACTS  (9.0855 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 2390 CONTRACTS:

CONTRACT  JUNE 0.; AUG 2390 AND ALL OTHER MONTHS ZERO//TOTAL: 2390.  The NEW COMEX OI for the gold complex rests at 482,179. 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 CONSIDERABLE SIZED DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2,8 CONTRACTS: 5,263 CONTRACTS DECREASED AT THE COMEX AND 2390 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 2,921 CONTRACTS OR 9.085 TONNES. MONDAY, WE HAD A  GAIN OF $1.30 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A SMALL SIZED LOSS IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 9.085 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $1.30).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS SOMEWHAT  SUCCESSFUL  (SEE BELOW).

4 GC VOLUME: 0  // open interest 11 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A FAIR SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (2390) ACCOMPANYING THE CONSIDERABLE SIZED LOSS IN COMEX OI  (5311 OI): TOTAL LOSS IN THE TWO EXCHANGES:  2921 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)ANOTHER STRONG INCREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH,  3) SOME LONG LIQUIDATION; 4) CONSIDERABLE COMEX OI LOSS..  AND  …ALL OF THIS WAS COUPLED WITH OUR GAIN IN GOLD PRICE TRADING//MONDAY//$1.30

WE ARE BEGINNING TO WITNESS A LACK OF EXCHANGE FOR GOLD PHYSICALS UNDERWRITTEN DUE TO PREMIUMS STARTING TO REAPPEAR IN THE FUTURE PRICE OF GOLD VS LONDON SPOT. THE COST TO THE BANKERS IS JUST TOO GREAT TO ENGAGE IN THESE VEHICLES ONCE THIS OCCURS.

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

JUNE

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JUNE : 3179 CONTRACTS OR 317,900 oz OR 9.88 TONNES (2 TRADING DAY(S) AND THUS AVERAGING: 1589 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 2 TRADING DAY(S) IN  TONNES: 9.88 TONNES

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

THUS EFP TRANSFERS REPRESENTS 9.88/3550 x 100% TONNES =7.00% 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   2824.91  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:                     248.68 TONNES (EFP ISSUANCE STILL LOW// PREMIUM COST TO THE BANKERS IS HUGE..SO ISSUANCE IS LESS)

JUNE TOTAL EFP ISSUANCE:                     9.88 TONNES

 

 

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 VERY STRONG SIZED 3776 CONTRACTS FROM 166,345 UP TO 170,099 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.

 THE HUGE GAIN IN OI SILVER COMEX WAS DUE TO;   1) CONSIDERABLE BANKER SHORT COVERING , 2) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) ANOTHER STRONG INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 290 CONTRACTS

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

JULY: 290 CONTRACTS   AND DEC: 00 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 290 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 3776 CONTRACTS TO THE 290 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  STRONG GAIN OF 4044 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 20.22 MILLION  OZ!!! OCCURRED WITH THE 38 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 38 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD A STRONG SIZED 290 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 5.97 POINTS OR 0.20%  //Hang Sang CLOSED UP 263.42 POINTS OR 1.11%   /The Nikkei closed UP 263.22 POINTS OR 1.19%//Australia’s all ordinaires CLOSED UP .37%

/Chinese yuan (ONSHORE) closed UP  at 7.1063 /Oil UP TO 36.30 dollars per barrel for WTI and 39.13 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.1063 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8834 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC//  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST  FELL BY A CONSIDERABLE 5,311 CONTRACTS TO 482,179 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 ALL OF THIS  COMEX LOSS  OCCURRED DESPITE OUR  GAIN OF $1.30 IN GOLD PRICING /MONDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (2390 CONTRACTS),.  THUS WE HAD 1) HUMONGOUS BANKER SHORT COVERING AT THE COMEX AND 2)   SMALL  LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS INCREASE IN  GOLD OZ STANDING AT THE COMEX//JUNE DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A CONSIDERABLE LOSS ON OUR TWO EXCHANGES OF 2921 CONTRACTS DESPITE GOLD’S  RISE IN PRICE.  

 

 

WE AGAIN HAD 0    4 -GC VOLUME//open interest remains at 11

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF APRIL..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 2390 EFP CONTRACTS WERE ISSUED:  2390 FOR AUG AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2390 CONTRACTS.

YOU WILL FIND THAT WHEN WE HAVE A PREMIUM IN THE FUTURES/SPOT, THEN THE NUMBER OF EXCHANGE FOR PHYSICALS DECLINE IN NUMBERS.  THE COST IS JUST TOO MUCH FOR THEM TO ISSUE.

 

ON A NET BASIS IN OPEN INTEREST WE LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  2921 TOTAL CONTRACTS IN THAT 2390 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 5,311 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A SMALL  AMOUNT OF EXCHANGE FOR PHYSICALS WITH STRONG BANKER SHORT COVERING, ACCOMPANYING THE CONSIDERABLE COMEX OI LOSS,  ANOTHER HUMONGOUS INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND SOME LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A GAIN  IN COMEX PRICE OF 1.30 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $1.30)AND, THEY WERE  SOMEWHAT SUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED A GOOD 9.085 TONNES.

 

 

NET LOSS ON THE TWO EXCHANGES :: 2921 CONTRACTS OR 292100 OZ OR 9.085 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:  482,179 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 48.21 MILLION OZ/32,150 OZ PER TONNE =  1500 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1500/2200 OR 68.18% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 71,121 contracts//volume extremely low //

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY155,198 contracts// volume still very low

JUNE 2 /2020

JUNE GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz 682.814 oz

MALCA

Withdrawals from Customer Inventory in oz
26,520.482 oz
BRINKS
SCOTIA
MANFRA
Deposits to the Dealer Inventory in oz 53,449.150 oz

INCLUDES

750 KILOBARS

AND  900

KILOBARS

 

 

 

Deposits to the Customer Inventory, in oz  

128,604.000

OZ

MALCA

INCLUDES 4,000 KILOBARS

 

 

No of oz served (contracts) today
6280 notice(s)
 628,000 OZ
(19.533 TONNES)
No of oz to be served (notices)
6044 contracts
(604,400 oz)
18.799 TONNES
Total monthly oz gold served (contracts) so far this month
42016 notices
4,201,600 OZ
130.6874 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 2 deposits into the dealer

I) Into Brinks: 24,113.25  OZ (750 kilobars)

ii) Into Manfra: 28,935.900 oz (900 KILOBARS)

 

 

 

total dealer deposits:  53,049.150  oz

 

total dealer withdrawals: 682.814 oz (Manfra)

we had 1 deposits into the customer account

i) Into MALCA: 128,604.0000 OZ  ( 4,000 KILOBARS)

 

 

total deposits: 128,604.0000    oz

 

 

we had 3 gold withdrawals from the customer account:

i) Out of  BRINKS: 23,430.435 OZ

ii) Out of Manfra:  2990.043 oz

iii) Out of Scotia: 100.004 oz

 

 

total gold withdrawals;  26,520.482

We had 3  kilobar transactions  +

 

We had 0  4 KC bar volume transactions/11 contracts oi

 

 

 

 

ADJUSTMENTS: 2 //    

 

customer to dealer: JPMorgan

331,574.641 oz was adjusted up to the dealer

dealer to customer

 

i) from Int  Delaware: 3665.214 oz

 

 

 

 

 

 

 

 

The front month of JUNE registered a total of 12,324 oi contracts of a loss of 6881 contracts.  We had 7361 notices filed on MONDAY so we gained 480 contracts or an additional 48,000 oz of gold (1.502 TONNES) will stand in this very active delivery month of June.

After June we have the non active delivery month of July and here we had a LOSS of 29 contracts down to 3182 contracts.

Next comes August another strong delivery month and here the OI ROSE by 979 contracts up to 344,267 contracts.

 

We had 6280 notices filed today for 628,000 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 500 notices were issued from their client or customer account. The total of all issuance by all participants equates to 6280 contract(s) of which 272 notices were stopped (received) by j.P. Morgan dealer and 2716 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 1409 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JUNE /2020. contract month, we take the total number of notices filed so far for the month (42,016) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (12,327 CONTRACTS ) minus the number of notices served upon today (6280 x 100 oz per contract) equals 4,806,000 OZ OR 149.49 TONNES) the number of ounces standing in this active month of JUNE

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

No of notices served (42,016)x 100 oz + (12,327 OI) for the front month minus the number of notices served upon today (6280) x 100 oz which equals 4,806,000 oz standing OR 149.49 TONNES in this  active delivery month. This is a HUGE record amount for gold standing for a JUNE delivery month or any active/non active delivery month.

We gained an additional 480 contracts or 48000 oz will stand on this side of the pond.  Issuance of exchange for physicals is again small.  It is just too costly for our crooked bankers to carry.

 

 

 

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 330.22 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 149.49 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  11,144,679.515 oz or 346.64 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: 10,616.607  (330.22 tonnes)
true registered gold  (total registered – pledged tonnes  10,616.607 (330.22 tonnes)
total eligible gold:  16,899,494.350 oz (525.64 tonnes)

total registered, pledged  and eligible (customer) gold;   28,044,173.865 oz 872.29 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   127.05 tonnes

total gold net of 4 GC:  745.24 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

JUNE 2/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY AN EXTREMELY STRONG SIZED 3754 CONTRACTS FROM 166,345 UP TO 170,099(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 38 CENT GAIN IN PRICING//MONDAY. WE GAINED A TOTAL OF 4069 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) ANOTHER STRONG INCREASE IN  SILVER OZ STANDING AT THE COMEX FOR THE JUNE DELIVERY MONTH, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) ZERO LONG LIQUIDATION,5) STRONG COMEX GAIN IN OI AND ALL OF THIS OCCURRED WITH OUR GOOD 52 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE

THE FRONT DELIVERY OF JUNE SAW 23 OPEN INTEREST CONTRACTS STANDING FOR A LOSS OF 103 CONTRACTS.  WE HAD 115 NOTICES SERVED ON FRIDAY SO WE GAINED ANOTHER 12 CONTRACTS OR AN ADDITIONAL 60,000 OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JUNE.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI GAINED 1050 CONTRACTS UP TO 122,862 CONTRACTS. AUGUST SAW ANOTHER GAIN OF 5 CONTRACTS TO 7 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 2036 CONTRACTS UP TO 27,328

 

 

We, today, had  10 notice(s) FILED  for 50,000 OZ for the JULY, 2020 COMEX contract for silver

 

JUNE 2/2020

JUNE SILVER COMEX CONTRACT MONTH

 

<

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 999.824 oz
Delaware

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
 942,383.110 oz
CNT
Loomis
No of oz served today (contracts)
10
CONTRACT(S)
(50,000 OZ)
No of oz to be served (notices)
13 contracts
 65,000 oz)
Total monthly oz silver served (contracts)  387 contracts

1,935,000 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 2 deposits into the customer account

into JPMorgan:   0

ii)into CNT:  600,597.110 oz

iii) Into Loomis: 341,786.00000 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: 942,383.110    oz

we had 1 withdrawals:

 

 

i) Out of Delaware: 999.824 oz

 

 

 

 

 

 

 

total withdrawals; 999.824   oz

We had 1 adjustment

Brinks: dealer to customer:

20,052.04 oz

 

total dealer silver: 85.781 million

total dealer + customer silver:  312.928 million oz

 

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The total number of notices filed today for the JUNE 2020. contract month is represented by 10 contract(s) FOR 50,000 oz

 

To calculate the number of silver ounces that will stand for delivery in JUNE we take the total number of notices filed for the month so far at 387 x 5,000 oz = 1,935,,000 oz to which we add the difference between the open interest for the front month of JUNE.(23) and the number of notices served upon today 10 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 387 (notices served so far) x 5000 oz + OI for front month of JUNE (23)- number of notices served upon today 10) x 5000 oz of silver standing for the JUNE contract month.equals 2,000,000 oz.

We gained 12 contracts or an additional 60,000 oz will stand for delivery as they refused to morph into London based forwards as well as negating a fiat bonus.

 

TODAY’S ESTIMATED SILVER VOLUME: 28,003 CONTRACTS //extremely low

 

 

FOR YESTERDAY: 75,321 CONTRACTS..,CONFIRMED VOLUME//

 

 

YESTERDAY’S CONFIRMED VOLUME OF 75,321  CONTRACTS EQUATES to 376 million  OZ 53.8% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 1.54% ((JUNE 2/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.08% to NAV:   (JUNE 2/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.54%

(courtesy Sprott/GATA

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

NAV 16.57 TRADING 16.45///NEGATIVE 0.55

END

 

 

And now the Gold inventory at the GLD/

JUNE 2//WITH GOLD DOWN $11.20 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 5.26 TONNES OF GOLD INTO THE GLD////INVENTORY RESTS AT 1128.40 TONNES

JUNE 1//WITH GOLD UP $1.30//A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.06 TONNES OF GOLD//GLD INVENTORY RESTS TONIGHT AT 1123.14 TONNES

MAY 29/WITH GOLD UP $19.40 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD///GLD INVENTORY RESTS THIS WEEKEND AT 1119.05 TONNES

MAY 28//WITH GOLD UP $4.00 TODAY/NO CHANGES IN GOLD INVENTORY TO THE GLD//INVENTORY RESTS  AT 1119.05 TONNES

MAY 27/WITH GOLD UP $.10 TODAY: A STRONG 2.34 TONNES OF GOLD ADDED TO THE GLD//INVENTORY RESTS AT 1119.05 TONNES

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

JUNE 2/ GLD INVENTORY 1128.40 tonnes*

LAST;  831 TRADING DAYS:   +181.31 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 731 TRADING DAYS://+356.46  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 2//WITH SILVER DOWN 31 CENTS TODAY; A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A HUMONGOUS 6.686 MILLION OZ ADDED TO THE SLV////INVENTORY RESTS TONIGHT AT 473.315 MILLION OZ//

JUNE 1//WITH SILVER UP 38 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.56 MILLION OZ INTO THE SLV////INVENTORY RESTS TONIGHT AT 466.629 MILLION OZ//

MAY 29//WITH SILVER UP 52 CENTS TODAY: A MASSIVE DEPOSIT OF 2.796 MILLION OZ INTO THE SLV//INVENTORY RESTS THIS WEEKEND AT 463.273 MILLION OZ//

MAY 28//WITH SILVER UP 9 CENTS TODAY: A MASSIVE  CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 4.660 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 460.477 MILLION OZ//

MAY 27/WITH SILVER UP 13 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 455.817 MILLION OZ//

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.

 

 

JUNE 2.2020:

SLV INVENTORY RESTS TONIGHT AT

473.315 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.87/ and libor 6 month duration 0.50

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

GOLD LENDING RATE: -2.37%

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

 

XXXXXXXX

12 Month MM GOFO
+ 1.94%

LIBOR FOR 12 MONTH DURATION: 0.64

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.30%

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

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

This seems to be what is going on in silver and it is totally criminal..

(Ted Butler//GATA)

Ted Butler: Falling into place

 Section: 

8:35p ET Monday, June 1, 2020

Dear Friend of GATA and Gold:

Silver market analyst Ted Butler tonight elaborates on his belief that JPMorganChase & Co. has cornered the gold and silver markets and is turning the screws on other bullion banks it cleverly maneuvered into going short, and going more short in silver than there is available to cover. Butler’s commentary is headlined “Falling into Place” and it’s posted at GoldSeek’s companion site, SilverSeek, here:

https://silverseek.com/article/falling-place

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

 

Falling Into Place

One wants to be careful about seeing things as previously predicted, but not so careful so as to not recognize when things seem to be playing out exactly as expected. Recent news stories and events seem to be in accord with a number of my central themes, but I’ll present the case as I see it and let you decide.

Put simply, in addition to alleging a multi-decade price manipulation in COMEX silver (and gold), I have claimed that JPMorgan attained the role of chief manipulator as a result of its takeover of Bear Stearns in 2008, in which JPM ascended to the role of largest COMEX short seller/manipulator. Then in 2011, as silver prices neared $50, JPMorgan set about to not only abort the rally in silver and gold that year, but to immunize itself from future worry about its massive COMEX short position put at risk when prices rose again. It did so by beginning to accumulate more physical gold and silver than anyone in modern times. All told, I estimate that JPMorgan has managed to accumulate 25 million oz of physical gold and 1 billion oz of physical silver from 2011 thru the present.

A little over a year ago, I began alleging that JPMorgan started to position itself so as to massively double cross its former big commercial short partners in crime who had always worked collusively with JPM in continuously hoodwinking the managed money traders, their main COMEX counterparties over the decades. Finally, nearly a year ago I began to calculate, twice a week, the running open losses to the 8 big shorts in COMEX gold and silver, first by estimating the open losses of the 7 biggest shorts net of JPMorgan’s short position (since JPM was more than protected by its massive physical positions), but more recently just on the basis of the 8 biggest shorts – since JPMorgan completely covered its COMEX short positions.

All that was left for gold and, particularly for silver prices to explode upward was JPMorgan putting on the finishing touches and deciding when the moment of lift-off would be. Whether these premises turn out to be correct or incorrect, I reached them independently as time evolved, as I’m sure that subscribers would attest. Certainly, if I’ve misrepresented anything, please let me hear from you, as that would be the last thing I would intend. Oh, and along the way, I petitioned (some might say badgered) the regulators at the Justice Department, CFTC, CME Group and JPMorgan itself.

With that backdrop, I can’t help but feel recent news articles and developments seem to confirm the premises laid out above. Certainly, all the recent stories on bank losses in precious metals trading are very much in synch with my running calculations of growing open losses to the biggest short sellers in gold and silver. It’s no wonder Scotiabank is tripping over itself in trying to beat it out the door from precious metals trading. And it’s certainly not confined to Scotia, but includes HSBC and a new name, CIBC.

https://www.kitco.com/news/2020-05-29/Canada-s-CIBC-lost-64-million-in-a-day-on-paper-in-gold-market-turmoil.html

What’s interesting about the CIBC story is the acknowledgement that the $60 million loss occurred on March 24.  Previously, HSBC was reported to have lost $200 million on one day in late March, but the exact day was not mentioned. What’s interesting is that on March 24, gold rocketed around $85 that day in COMEX trading and surged another $90+ the next day, March 25. You may recall that this stunning $180 two day rally in gold (and $1.80 rally in silver) came shortly after the deliberately rigged $230 plunge in gold prices over the 9 trading days until March 24 (silver had fallen $5.50 in the days into March 24).

Shortly after the early-March plunge and sharp snapback in gold and silver prices and based upon COT report data flow, I reported that the principal architect and beneficiary of the price plunge and snapback appeared to be none other than JPMorgan, which along with the smaller commercials (which I refer to as the raptors), were the main buyers on the price plunge, essentially shutting out the 8 or so biggest shorts. It was this egregious and deliberate price plunge that enabled JPMorgan to completely buy back its entire COMEX silver and gold short position, at the expense of its former big short accomplices. Never was JPMorgan in a better position to double cross its former comrades in collusion.

I can’t help but feel that recent events and news stories largely confirm, essentially, all my premises. Slowly, but surely, news is starting to emerge of large losses to a number of banks due to precious metals trading. I would remind you that the genesis of the losses was a year ago, when the big commercials waded onto the short side of gold and silver aggressively, just as they had done on numerous occasions over the past few decades.

But instead of quickly ringing the cash register as they had always done in the past for say a few hundreds of millions of dollars by rigging prices lower and inducing managed money selling, the managed money selling never materialized. Instead, the big commercials found themselves stuck in a position that continued to generate ever larger open losses.

At least the commercials could count on the help of JPMorgan which held large gold and silver positions for much of the time until mid-March. But having engineered and orchestrated the sharp and near unprecedented price smash of mid-March, JPMorgan rid itself of its COMEX gold and silver short positions, leaving the big remaining shorts to fend for themselves. The record would seem to indicate that the big commercial shorts aren’t fending particularly well.

Now it would seem that JPMorgan has employed the knockout double cross punch by allowing a few unsuspecting banks to “borrow” physical silver from JPM to provide to the silver ETFs on a non-recourse basis to the ETFs, but very much on a recourse basis from the borrowing banks to JPM. Unwittingly to the borrowing banks, but very much appreciated by JPM is that the banks borrowing physical metal have just entered into a deal they would be much better off having made with the devil himself.

More than 100 million ounces of physical silver have been purchased and deposited into the world’s silver ETFs, mostly into SLV, over the past two months. It is impossible that such a large purchase would not have had a much more dramatic upward impact on price if the metal wasn’t being “leased” into the market. No other explanation could explain the lack of price response to such a large quantity of physical silver. And JPMorgan is the only entity capable of such a transaction. It knows, but likely not the borrowing banks, that those borrowing the silver are now short in a manner that will cause great financial damage when silver prices rise.

One question that might arise is the extent of JPMorgan’s potential additional “leasing” of physical metal to other banks. Why would JPM stop at 100 million oz when they still have 900 million oz of physical silver remaining? Why would it not put the borrowing banks even deeper into the potential abyss by lending and creating silver short positions on hundreds of millions more ounces? I would contend that JPMorgan has some very practical limits on how deeply it allows the unsuspecting banks to dig a further short hole for themselves.

The success of any great financial scam, such as the scams that JPMorgan has pulled off to this point in both its illegal accumulation of physical metals and now in the leasing of some of that physical accumulation to create short positions from which there is no easy escape, rests on the victims remaining largely unaware that they have been criminally scammed. If it becomes too obvious that fraudulent means were deployed, that might provide a legitimate basis for reneging on the transaction. The trick is to take as much from the mark as is possible without alerting him that he has been scammed. As my dear departed silver mentor and friend, Izzy Friedman, would say – you have to think like a criminal when studying criminals.

What I have described above are the makings for the most bullish case possible for silver. Up until now, it has largely been a gold show, with the big losses to the commercial shorts coming overwhelmingly from gold and not silver. Certainly, gold has climbed several hundred dollars from last summer, while silver has just recently started to move higher and is still largely unchanged from yearend.

But whereas enough physical gold exists in the world to make delivery at least plausible to close out the big short positions, that same equation wouldn’t appear to exist in silver. With the 8 big shorts holding close to 400 million oz short on the COMEX and what now appears to be a separate short position of 100 million oz created over the past two months from leasing, it’s hard to see where the 500 million oz of silver necessary for actual delivery to close out the short position could come from. I suppose it could eventually come from JPMorgan – but at what price?

At the risk of tempting the deity of humiliation for retribution and comeuppance, it seems things have been falling into place until this point and I would be surprised if things further falling into place don’t include sharply higher silver prices ahead.

end

Gold intervention by BIS held steady in March and April as study hints it’s done for Fed

 Section: 

By Robert Lambourne
Tuesday, June 2, 2020

According to its recently published March and April statements of account —

https://www.bis.org/banking/balsheet/statofacc200331.pdf

https://www.bis.org/banking/balsheet/statofacc200430.pdf

— the Bank for International Settlements, which acts as an agent for most central banks, appears to have made little change in its use of gold swaps. The BIS is estimated to have increased its position in gold swaps and gold-related derivatives by 6 tonnes in March to 332 tonnes, and then to have decreased it by 4 tonnes in April to 328 tonnes.

Since May 2019, when it stood at 78 tonnes, the bank’s use of gold swaps and derivatives has risen by more than 300 percent.

end

iii) Other physical stories:

 

“This Is The Perfect Environment For Gold To Take Center-Stage”

Excerpted from Grant’s Interest Rate Observer (via Sprott.com),

Changing Monetary Places

The price of gold peaked at $1,900 an ounce in September 2011. Nine years and many radical monetary-policy experiments later, it trades at $1,702. That it ought to move higher, and will move higher, is the theme of this analysis.

If we’re repeating ourselves, it’s in the noble cause of protecting the wealth of the readers of Grant’s. The sheer brute force of pandemic public policy is tilting the balance of financial risk. History can’t exactly predict the outcome of the Federal Reserve’s unprecedented jag of money creation (never mind the humane reasons why those dollars were set afloat). But as to the perishability of paper money, the record is unarguable.

“[T]he French people,” pronounced the Bank for International Settlements in 1949, four years after the end of World War II, “remembering the old gold franc introduced by Napoleon in 1803 (the so-called franc germinal), which maintained its value intact up to 1914, and thus withstood the strain of two lost wars—1814 and 1871—as well as a number of other vicissitudes, cannot help thinking that, compared with the paper franc which since 1914 has lost 99% of its purchasing power, gold, irrespective of any short-term fluctuations in the price paid for it, is in the long run a trustworthy basis for savings.”

Even so, it’s not gold but bonds that investors crave.

They are grateful to purchase, for instance, the brand new triple-B-plus-rated PayPal 3¼s of 2050. How will the online money-transfer pioneer fare in the next 30 years? Could it be disrupted? What will become of the dollar, and interest rates, along the way? Is today’s buyer being compensated for these risks? Good questions, but, to yield-famished fiduciaries, not the most relevant ones. They need basis points, not monetary theory, and they draw confidence, rightly or wrongly, from the long-running decline of interest rates.

Gold may boast a multi-millennial record of honorable monetary service, but bond prices have been rallying for 39 years.

For all that gold is the epitome of money, and for all that Wall Street worships money, gold is unrespectable.

Mention it in most any institutional setting, and people wince, though perhaps we overanalyze. Asset managers want the prices of their assets to rise, and QE answers that need. The kind of money the beneficiaries of radical monetary policy want is the kind you mine on a keypad.

Yet now comes BofA Securities with a $3,000-per-ounce price target and persuasive supporting analysis under the very headline, “The Fed can’t print gold.” The seven authors—Michael Widmer leads the cast—make their case with the opening contention that gold is “the ultimate store of value.”

Amen to that, though you have to take the long view. In January 1980, the gold price briefly touched $850 an ounce. Nineteen years later, the same ounce fetched but $250. The dollar that you entrusted to the ultimate store of value had dwindled to 30 cents.

And if you had only bought a dollar’s worth of the S&P 500 instead, you’d have had $24.02. It was enough to turn the French peasantry to paper.

Gold promoters are therefore understandably more partial to the past 20 years than to the two decades preceding them. Since the peak of the dot-com stock market in early 2000, gold has handily outperformed equities and bonds alike.

It would be something to brag about if gold were an investment asset.

It is no such thing. Gold is a monetary asset (if the central banks didn’t think so, they wouldn’t be buying it). Under a gold standard, its value is fixed. Under no standard does it pay interest or retain earnings. Stocks and bonds are regenerative. Gold, being money, is as sterile as a dollar bill. Buying it, one incurs an opportunity cost in the shape of foregone interest, rent or dividends.

As money, gold competes with dollars. It likewise competes with credit, the promise to pay dollars. Thus, as the dollar strengthens, as real rates rise, so paper prospers. What sent gold into the investment wilderness in the 1980s and 1990s were high real rates, an improving U.S. government fiscal position and the oftrepeated incantation of Robert Rubin, Bill Clinton’s secretary of the Treasury, “A strong dollar is in the U.S. interest.”

Now that the length of the Treasury yield curve is pitched below the pre-lockdown inflation rate of 2%, the fiscal position is an even bigger shambles than it was before the bug bit. Black Sox–fashion, the government is trying to lose the monetary competition. If it wants it, gold is welcome to the title of the hardest and most value-retaining money under the sun. No central bank wants it…

*  *  *

In the final year of the 1929–32 bear market, the investor Bernard M. Baruch was buying gold rather than orphaned stocks and cast-off credit instruments. Long after the fact, Franklin D. Roosevelt’s Treasury secretary, Henry Morgenthau, Jr., asked him why. It was no innocent question, as the government had outlawed private gold holdings in 1933 and pre-1933 “hoarders” were still under a retrospective cloud. “[B]ecause I was commencing to have doubts about the currency,” the investor and elderstatesman-without-portfolio forthrightly replied.

Those doubts were surely well founded. Roosevelt did devalue the dollar, and he did commandeer the gold (paying the citizens $20.67 an ounce before marking it up to $35 an ounce), but reasoned doubts about the quality of the currency are perhaps as warranted today as they were in the final year of the Hoover administration. And the opportunity cost of owning a safe full of bullion is arguably lower today than it was even then.

Gold holders in 1932 passed up an average high-grade tax-exempt yield of 4.33%, more than double the one on offer today. In January 1932, the Dow Jones Industrial Average had fallen by 81% from its 1929 peak; within six months, the blue chips would hit bottom at 11% of the top index value. At this writing, the Dow has declined by 20% from its February 12 high and trades at 17.55 times trailing earnings (don’t ask about future ones). The Nasdaq is knocking on the door of a new high. “[S]ound investment securities are selling at prices lower perhaps than we shall see again,” Baruch observed in a January 1932 oped in the old New York Evening Post. Few would make that claim for today’s Fedsponsored opportunity set.

What makes the gold price go, according to the BofA analysts, is a conflation of real interest rates, the dollar exchange rate, volatility in the financial markets and commodity prices. We would add to that list a single word, “trust.” The greater the confidence in the words and deeds of the central bank, the weaker the gold price. Apropos of which, respondents to a Gallup poll conducted in the first two weeks of April said they had “a great deal” or a “fair amount” of confidence in Jay Powell to do right by the American economy. It was the highest such reading in 15 years.

We wonder what 1,000 random investors would tell Gallup if asked whether the Fed has abolished bear markets. To judge by the BofA’s conclusions as to speculative gold-positioning, replies would lean to the affirmative. Thus, Widmer et al. report, “momentum players” in gold futures “are currently holding 5.7% of their maximum allocations, well below the historical 99th percentile in history of 48%.”

As for gold-mining shares, John Hathaway, co-portfolio manager of the $1 billion-plus Sprott Gold Equity Fund, reports that interest is exactly nil. The Sprott bullion business is jumping, but not the mining-stock investment business. Blame previous poor performance, he says, or long memories of mine mismanagement around the time of the 2011 gold-price high, or the inherent risks of digging for a vanishingly scarce metal in inhospitable places. But for whatever set of reasons, he goes on, gold shares, in relation to bullion, are the cheapest they’ve been in his 20 years in the business: “What astonishes me—I’m an old value investor—is that so many companies are generating free cash flow, and it is not hard to find companies with free cash flow yields of 10% or better.”

There are finer judges of confidence in the stewards of paper money than this publication, which has had so little confidence, but we can read as well as the next person. And, in reading, we mark a new comment by Michael Arone, chief investment strategist of State Street’s American SPDR business.

“[G]overnment deficits funded by massive central bank balance sheets have distorted markets and the economy,” Arone says. “Also, the Fed’s failure to reduce monetary policy accom modation in better economic times has likely encouraged investors to take excessive risks, laying the groundwork for future asset price bubbles.”

Writing under the headline “Moral Hazard: Are Risky Bonds the New Treasurys?,” Arone concludes with a kind of resigned yes:

The disconnect between an investment’s underlying fundamentals and its price makes investors uneasy. As a result of the Fed’s new programs, this tension is now most evident in the credit markets. Sadly, investors may have no choice but to dive in.”

Some do have a choice, though, and for those with the flexibility to choose we commend the words of Rick Rieder.

“[T]he monetary policy endgame may well be monetary debasement,” BlackRock, Inc.’s chief of global fixed income speculated in early September, months before the lockdown-induced monetary onslaught began.

“Under the gold standard this would not have been possible…but today money is created by printing presses, or even a few computer keystrokes.”

What to do? Seek protection in “equities, real estate and even hard assets that have historic value-relevance, such as gold.

Perhaps the monetary seed that bloomed at BofA, and that has produced green intellectual shoots at State Street and BlackRock, holds the promise of a more open-minded investment establishment. Paul Singer, founder and president of Elliott Management Corp., a different, nonconforming kind of Wall Street establishmentarian, bangs the nail on the head in “Perspectives,” his new investment comment:

This is a perfect environment for gold to take center stage. Fanatical debasement of money by all of the world’s central banks, super-low interest rates and gold mine operation and extraction issues (to a large extent related to the pandemic) should create a fertile ground for this most basic of all money and stores of value to reach its fair value, which we believe is literally multiples of its current price. In recent months, gold has gone up in price to some degree, but we think that it is one of the most undervalued investable assets existing today…

[It] is the answer to the question: Is there an asset or asset class which is undervalued, underowned, would preserve its value in a severe inflation, and is not adversely affected by Covid-19 or the destruction of business value that is being caused by the virus?

If Singer is right (strength to his arm!), it won’t be because of any change in the nature of gold, but on account of a belated realization of the change in the quality of its competitors.

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.1063/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1181   /shanghai bourse CLOSED UP 5.97 POINTS OR 0.20%

HANG SANG CLOSED UP 263.42 POINTS OR 1.11%

 

2. Nikkei closed UP 263.42 POINTS OR 1.19%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 97.56/Euro FALLS TO 1.1219

3b Japan 10 year bond yield: RISES TO. +.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.12/ 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:: 36.30 and Brent: 39.13

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

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

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

3h Oil UP for WTI and UP FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.40%/Italian 10 yr bond yield U0 to 1.45% /SPAIN 10 YR BOND YIELD UP TO 0.54%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.49

3k Gold at $1737.70 silver at: 18.17   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 29/100 in roubles/dollar) 68.74

3m oil into the 36 dollar handle for WTI and 39 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 108.12 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 .96730 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0749 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.40%

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 0.68% early this morning. Thirty year rate at 1.49%

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

6.  TURKISH LIRA:  UP  TO 6.7742..

Shorts Looted As Global Markets Hit 3-Month High After Nationwide Riots Turn Deadly

The Fed’s “administered market” just refuses to stop.

Global stocks and S&P futures rose to three-month highs as central banks looted shorts and as investors looked past the worst social unrest in decades and the risk of a second round of corona virus infections, to signs on even more fiscal and monetary stimulus propping up what BofA called “fake markets.” The dollar fell for a fourth straight day, and yields rose.

S&P 500 futures surged alongside European stocks after initially dropping in the wake of President Donald Trump’s vow to deploy large numbers of troops if cities and states don’t act to contain violence from the ongoing riots, and reports China had ordered U.S. soybean purchases to be halted but Europe got the bulls back on track.

The European STOXX 600 index jumped over 1% to a fresh 12-week high as German Chancellor Angela Merkel sought to thrash out a second package to help the country’s economy. Germany’s DAX surged nearly 3% on news Lufthansa’s board had approved its government bailout and as Volkswagen and BMW shares rose as much as 7% at the prospect of a 5 billion- euro government-funded scheme to boost sales. Deutsche Lufthansa AG surged after the airline overcame most of the barriers to receiving a 9 billion euro ($10 billion) bailout from the government.

“In a way, it is remarkable that the market remains in this positive mood,” said Elwin de Groot, head of macro strategy at Rabobank. “Even with these rising protests in the U.S. and the situation in Hong Kong at the moment, the market is pushing on and seeing room for optimism.”

Asian stocks also gained, led by finance and industrials, after rising in the last session. Trading volume for MSCI Asia Pacific Index members was 27% above the monthly average for this time of the day. Japan’s Nikkei rose 1.2% to its highest since late February in Asia and the Topix gained 1.2%, with Sysoft and DLE rising the most. The Shanghai Composite Index rose 0.2%, with Silvery Dragon and Beijing Jingyuntong Tech posting the biggest advances. Markets in Seoul, Taipei and Hong Kong also gained.

“This optimistic read for risk can only persist if measures like orders and employment continue to improve month to month,” said Alan Ruskin, chief international strategist at Deutsche Bank. “Early setbacks would be a very poor sign, but are not expected in the period immediately following the end of lockdowns.”

World stock markets have rallied nearly 36% from March lows on hopes for a swift recovery from a pandemic that has killed nearly 375,000 people and crushed global growth as countries shut down to try and slow the virus’ spread. May Purchasing Managers Index data pointed to a fragile but encouraging recovery in global manufacturing, raising hopes that the worst is over.

The rally has come despite a slew of risks still on the horizon, including tense U.S.-China relations that may jeopardize a hard-won trade deal. The increasingly violent demonstrations across U.S. cities are another worry traders appear to be taking in stride.

“The main focus once again appears on the longer-term prospects of the easing of lockdowns across the world, though if the violence on U.S. streets continues for much longer, U.S. investors might have to cope with a lockdown of a different kind, imposed by the National Guard,” said Michael Hewson, an analyst at CMC Markets.

Bunds traded mixed amid a modest rise in the front end of the curve and an decline in the long end; ECB’s PEPP breakdown is due later Tuesday.

In FX, the Bloomberg Dollar index fell a fourth consecutive day and was at multi-month lows against most major currencies following a 5% drop for its main index in recent weeks. The euro got as high as $1.1160 on Tuesday, Britain’s pound topped $1.2530 for the first time in over a month and the Canadian and Australian dollars both rose around 0.4% as commodity markets continued their recoveries.

The Australian dollar held near a four-month high after the central bank left rates unchanged and indicated the impact from the coronavirus may not be quite as bad as earlier expected. The euro neared 1.12 against the dollar as equity markets rallied; The pound advanced to a month high following a report the U.K. may be willing compromise with the European Union in trade negotiations that resume on Tuesday. New Zealand dollar hovered around an almost 2-month high versus the greenback; the nation could remove most of its remaining restrictions on people and businesses as soon as next week after successfully wiping out the coronavirus. Oil edged higher toward $36 a barrel as the market waited to see if OPEC and its allies will extend record production curbs. The yen was sold in response to gains in Japanese stocks as the currency remains vulnerable to any increase in risk-on sentiment.

In commodities, Brent rose another 2% to just over $39 a barrel as traders expected major producers to extend output cuts at an OPEC+ meeting later in the week. U.S. crude was up 1% at $35.86 a barrel. Copper prices were at their highest in nearly three months on signs that demand from top metals consumer China was recovering. Stockpiles dropped at the fastest pace last week since September 2017, data showed. Aluminum producer Rusal said its customers were gradually returning after a major slump in April.

“This is real demand. Domestic investment is booming,especially in infrastructure. Supply and transport slowdowns from South America are also supporting prices,” said a copper trader in China.

Looking ahead, some of the key events coming up include the ECB which is expected to top up its rescue program with an additional 500 billion euros of asset purchases at a meeting on Thursday. Anything less than an expansion would be a big shock, Bloomberg Economics said. On Friday, the U.S. labor market report on Friday will probably show American unemployment soared to 19.6% in May, the worst since the Great Depression.

There is no major economic reports today, CrowdStrike and Zoom Video are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 0.3% to 3,064.50
  • STOXX Europe 600 up 1.5% to 359.32
  • MXAP up 1% to 154.77
  • MXAPJ up 0.9% to 492.78
  • Nikkei up 1.2% to 22,325.61
  • Topix up 1.2% to 1,587.68
  • Hang Seng Index up 1.1% to 23,995.94
  • Shanghai Composite up 0.2% to 2,921.40
  • Sensex up 1.5% to 33,802.34
  • Australia S&P/ASX 200 up 0.3% to 5,835.09
  • Kospi up 1.1% to 2,087.19
  • German 10Y yield fell 1.7 bps to -0.419%
  • Euro up 0.3% to $1.1165
  • Italian 10Y yield rose 1.1 bps to 1.316%
  • Spanish 10Y yield fell 2.4 bps to 0.553%
  • Brent futures up 2.1% to $39.11/bbl
  • Gold spot up 0.1% to $1,741.77
  • U.S. Dollar Index down 0.3% to 97.57

Top Overnight News from Bloomberg

  • President Donald Trump threatened to deploy the U.S. military to end “riots and lawlessness” across the country in a Rose Garden address punctuated by the sound of explosions as federal officers dispersed peaceful demonstrators just outside the White House gates
  • Boris Johnson plans to re-set his government’s agenda with a major speech and a financial statement to prepare the U.K. for the new reality after the coronavirus pandemic. Amid forecasts of the worst recession in 300 years, Chancellor of the Exchequer Rishi Sunak is drawing up options to bolster the economy after the government withdraws its vast package of financial support in the months ahead, according to people familiar with the matter
  • New York Governor Andrew Cuomo warned that mass protests against police violence risked accelerating the spread of coronavirus and could undo weeks of social- distancing efforts. The state imposed an overnight curfew Monday even as deaths there fell to their lowest daily level since March. Gilead Sciences Inc.’s treatment remdesivir showed only a limited benefit in a large trial
  • Oil traded without direction for a second day as the market waited to see if OPEC and its allies will extend record production curbs
  • German Chancellor Angela Merkel will seek to broker a compromise Tuesday on a second stimulus package to help Europe’s biggest economy recover from the deep recession caused by the coronavirus
  • Amid forecasts of the worst recession in 300 years, the U.K. Chancellor of the Exchequer Rishi Sunak is drawing up options to bolster the economy after the government withdraws its vast package of financial support in the months ahead, according to people familiar with the matter
  • U.K. house prices fell 1.7% m/m in May, the most in more than a decade as the coronavius lockdown shuttered the housing market, according to Nationwide Building Society
  • France’s Finance Minister Bruno Le Maire said the economy will shrink 11% this year, more than the 8% previously predicted, and that it means France must continue with emergency support and pro-business reforms, and not raise taxes that could choke off growth

Asian equity markets traded with cautious gains following the positive performance on Wall St but with upside limited after US President Trump’s announcement that he will deploy military forces in response to the riots which triggered a mild pull-back in US equity futures. ASX 200 (+0.3%) and Nikkei 225 (+1.2%) were positive but with the gains in Australia capped by weakness in mining names and amid a largely uneventful RBA rate decision where the central bank kept rates unchanged and provided no major fireworks as expected, while Japanese exporters were bolstered by recent favourable currency flows. KOSPI (+1.1%) was also underpinned despite the weak Final Q1 GDP data which was revised higher from the preliminary reading but still showed the worst contraction since 2008 with Q/Q at -1.3%, although notable strength was seen in the top shipbuilders after Qatar Petroleum signed  a KRW 23.6tln agreement with Daewoo Shipbuilding, Hyundai Heavy Industries and Samsung Heavy Industries for more than 100 ships. Elsewhere, Hang Seng (+1.1%) and Shanghai Comp. (+0.2%) were mixed with the mainland indecisive after the PBoC liquidity drain and due to ongoing US-China tensions, although it was also reported that the PBoC will purchase some bank loans issued to small firms in an effort to bolster lending, which it expects could spur about CNY 1tln of new unsecured loans. Finally, 10yr JGBs were initially marginally higher after a rebound off support near 152.00 and amid a similar recovery observed in T-notes from the prior session’s bear steepening and Amazon’s USD 10bln offering where the order book rose to above USD 30bln, although weaker results from the 10yr JGB auction later hampered prices.

Top Asian News

  • Abu Dhabi Said to Near Pipeline Deal With GIP-Backed Group
  • Bain Capital, Cyrus Emerge as Final Virgin Australia Suitors
  • ‘New Era’ for China-Japan Ties Dissipates Over Trump-Xi Fight

Europe stocks continue to plough higher [Euro Stoxx 50 +3.6%] as the region built on the positive APAC handover, and with sentiment somewhat underpinned by the Foreign Ministry stating that they have no information regarding the US soybean halt leaked by sources yesterday. Europe sees more noticeable gains now that the DAX (+3.9%) joins the fray following a long weekend, and with US riots somewhat hampering gains in US futures. Cash bourses have tested several key levels, with DAX briefly breaching 12k, FTSE 100 topping 6200, Euro Stoxx 50 trading above 3150 and IBEX rising above 7400 in a fleeting move. German specifically, awaits updates from Chancellor Merkel this afternoon who is looking to agree a compromise around a second stimulus package. Sectors are mostly in the green with cyclicals heavily outpacing defensives. Energy outperforms whilst Healthcare and Consumer Staples lag. The breakdown also sees risky sectors topping the charts with Auto, Insurance, Banks and Oil & Gas among the top performers. Meanwhile, Travel & Leisure descended from its earlier top spot but remains in firm positive territory. In terms of individual movers, Lufthansa (+5.8%) opened higher by almost 9% amid the Co’s board approving revised terms for their EUR 9bln bailout. Bayer (+5.0%) remains supported this morning with the Co’s Glyphosate dispute progressing to the next phase today, with the first hearing before the Court of Appeals to occur today in San Francisco at 17:00BST. Elsewhere, Airbus (+5.1%), Safran (+3.6%), Thales (+2.2%) all glean support from an anticipated support package for the French aeronautical sector.

Top European News

  • Merkel Lines Up as Much as 100 Billion Euros More in Stimulus
  • France Says Virus Recession Will Be Deeper Than Expected
  • World’s Biggest Jewelry Firm Moves to Recycled Gold, Silver
  • Boris Johnson Revamps Agenda for Worst Recession in 300 Years

In FX, AUD/GBP/NZD – The Aussie has now extended its rally to fresh multi-month highs in wake of the RBA’s latest policy meeting that reaffirmed wait-and-see guidance and was accompanied by a less downbeat economic outlook based on some sectors re-opening from COVID-19 lockdown sooner than previously envisaged. Moreover, the Q1 current account surplus beat consensus and net export contribution firmer than forecast, suggesting an upside bias for Wednesday’s GDP data and all helping to lift Aud/Usd through 0.6865, while Aud/Nzd has rebounded over 1.0800 again and towards 1.0875 amidst various offers in Nzd/Usd just above 0.6300. Note also, the Kiwi has been hampered by a bigger than expected decline in NZ Q1 terms of trade and further, albeit less pronounced weakness in building consents. Conversely, the Pound continues to claw back May’s largely seasonal losses with Cable now above 1.2550 and testing the 200 DMA (1.2571 vs 1.2575 at best thus far), but Eur/Gbp retreating further from yesterday’s 0.9000+ peaks to sub-0.8900 at one stage on the back of some positive reports indicating leeway on the UK side of the Brexit divide on fishing and the level playing field if the EU softens its stance on regulatory alignment and fishery access.

  • EUR/CAD/DXY – The Euro and Loonie are taking advantage of deeper US Dollar depreciation, as the index clearly breaches Fib support (97.837), the psychological 97.500 level and the next downside chart target at 97.446 (March 16 low) before finding a few underlying bids ahead of 97.400. In contrast, Eur/Usd has now overcome resistance between 1.1163-67 and eyeing 1.1200, while Usd/Cad is testing 1.3500 with some assistance from crude climbing on OPEC+ output cut extension momentum, though oil prices paring back from circa Usd36.50 and Usd39.50 for WTI and Brent respectively on talk that Russia and other producers prefer 1 month on top of the current 2 that expires at the end of June.
  • CHF/JPY/SEK – Relative G10 underperformers or laggards, as the Franc retreats below 0.9600 vs the Buck and under 1.0750 against the Euro after a sharp fall in Swiss retail sales, modest recovery in the manufacturing PMI and fairly tame rises in weekly sight deposits. Similarly, the Yen has reversed from 107.50+ to within a whisker of Monday’s 107.85 low amidst a broad recovery in risk sentiment after China denied knowledge of any suspension of soy purchases from the US under the terms of the Phase 1 trade deal, while the Swedish Crown has faded into 10.4190 vs the Euro following a downbeat NIER business survey.
  • NOK/EM – The Norwegian Krona is outpacing its Scandi and Eurozone counterparts due to the aforementioned buoyancy in oil and with the manufacturing PMI not far from the key 50.0 level, while EM currencies are firmer across the board on a combination of renewed risk appetite and the ongoing Greenback weakness noted above.

In commodities, WTI and Brent futures extend on gains amid the broader risk appetite coupled with USD softness heading into the OPEC+ confab, albeit a date and timing are yet to be confirmed.  Participants will be eyeing whether OPEC continues its current deal of tapering cuts from July or extend this. Saudi is reportedly vying for current cuts of around 10mln BPD to be extended to year-end, while Russia is opting for a one-month extension to the existing curbs, according to sources. Many believe that middle ground is likely to be found between the two nations at the next meeting. Some also advise on keeping US influence on the radar, given how the US President and oil-state Republicans welcomed Saudi’s over compliance. “We do not entirely rule out that OPEC+ could extend the 9.7 mb/d cut for the duration of 2020, especially if President Trump makes the specific ask and offers sufficient inducements”, RBC writes. WTI July eyes USD 36.50/bbl (vs. low 35.28/bbl) whilst the Brent August takes aim at USD 40.0/bbl, having printed a base at 38.26/bbl. Elsewhere spot gold does not see much action despite the DXY’s continuing decline amid fighting forces with investors shifting to riskier assets whilst a weaker USD keeps the yellow metal buoyed around USD 1740/oz. In terms of base metals, copper tracks stocks higher with participants also noting that focus for the metals remain on the demand prospect from reopening economies.

US Event Calendar

  • Wards Total Vehicle Sales, est. 11.1m, prior 8.58m

DB’s Jim Reid concludes the overnight wrap

In spite of what was some generally negative newsflow yesterday, global markets continued to climb as hopes for further economic recovery gathered more momentum. Indeed, by the end of the session, the S&P 500 was up a further +0.38% at its highest level since the pandemic hit, while the NASDAQ was up +0.66%, a move that left the tech index less than 3% off its all-time closing high back in February. Similar to last week, some industries that underperformed early in the pandemic were the top performing industries in the S&P 500 with Autos up +3.25%, Real Estate up +2.10% and Banks up +1.96%. This comes as some higher-growth industries like Pharmaceutical Biotech (-1.51%) and Semiconductors (-1.16%) lagged on the day.

This is a continuation of the rotation out of “growth” stocks and into more “value” oriented securities that we saw last week. Our Head of Asset Allocation, Binky Chadha, highlighted this in a report last week looking at the strength of the mega-cap growth stocks through the last two months. These 10 Mega-cap growth stocks (MCG) make up 27% of the S&P 500’s market cap and have surpassed their pre-Covid-19 peak. MCG stocks are those with a market cap over $150bn today and returning more than 20%+ annually for the last 5+ years. They are Microsoft, Apple, Amazon, Google, Facebook, Visa, Mastercard, Netflix, Nvidia and Adobe. Year-to-date MCG stocks are up roughly 15% through the end of last week, compared to the S&P 500 ex-MCG which is down around 15% and had been range-bound since mid-April before a small pick up last week. Meanwhile, the large cap growth stocks continued rallying during that period, having also outperformed on the way down (-26% compared with – 36% for the rest). These ten stocks that have buoyed the S&P 500 have benefitted from the pandemic as we’ve seen accelerating trends towards e-commerce, cloud migration, digital payments and online content production. However Binky has moved from an implicitly overweight position on MCG in his sector allocations, to neutral as the valuations are now fully pricing the upside. Specifically he has moved Tech from overweight to neutral, while also increasing exposure to cyclical growth by moving the Financials, Industrials, and Energy sectors to overweight. See the full piece here.

Back to markets and Europe out-performed yesterday even as a number of countries including Germany were closed. The FTSE 100 (+1.48%) and the CAC 40 (+1.43%) managed to start the month with strong performances. Interestingly the pound gained +1.26% against the dollar, its best day since the 27 March. Along similar lines 10yr Gilt yields rose +4.7bps to 0.23%, the largest one day rise since early April. Sterling has now risen in 5 of the previous 6 sessions, and is nearly at 4 week highs ahead of another round of Brexit negotiations today between the UK and the EU on their future relationship. The rally coincided with news that PM Johnson is going to unveil a major fiscal event in the coming weeks. So maybe markets liked the potential growth element of what that might mean rather than how it might be paid for.

A quick check on markets this morning shows the Nikkei (+1.09%), Hang Seng (+0.38%) and Kospi (+0.75%) all up while bourses in China are flattish. Futures on the S&P 500 are down -0.54% however after President Trump called on governors and mayors to “dominate the streets” and announced that he was sending thousands of heavily armed military personnel into the nation’s capital to quell the unrest.

In other overnight news, Bloomberg reported that the OPEC+ is likely to discuss a short extension of their production cuts to maintain record output curbs for an extra one to three months, a proposal favoured by Saudi Arabia and its Gulf allies. However, the delegates are still wrangling to settle on a new date for meeting after the idea of bringing forward the meeting by a few days to June 4 was first floated. WTI oil prices are trading up +0.51% this morning at $35.62. Meanwhile, the PBOC said overnight that it will temporarily purchase loans made to small businesses from some local banks, a new policy to aimed boost the supply of lending to the real economy.

Back to yesterday, and as markets continued to rally it was interesting that Gilead fell -3.43% as they announced results from a Phase 3 trial of remdesivir for patients with moderate Covid-19. While they found that patients in the 5-day treatment group “were 65 per cent more likely to have clinical improvement at Day 11 compared with those in the standard care group”, it was also the case that the group receiving the 10-day treatment course didn’t see a statistically significant improvement.

The other story in the background in recent days has been the increase in tensions between the US and China, and yesterday Bloomberg reported that Chinese government officials had told state-owned traders Cofco and Sinograin to stop their purchases of some US farm goods as China took stock of the current escalation in tensions. The decision certainly raises questions as to the fate of the Phase One trade deal between the two, which was only signed in January, and follows President Trump’s criticisms of China on Friday. Speaking of trade, it is worth highlighting that the US trade representative Robert Lighthizer is scheduled to speak on Thursday June 4 at the Economic Club of New York (2pm to 2:45pm). The topic is “next steps and potential outcomes for trade talks around the world in the midst of the Coronavirus pandemic”. So one to watch.

Elsewhere in Europe, we got two notable reports from MNI. The first was on this week’s ECB meeting, where they reported sources who said that many members of the Governing Council would oppose adding to their €750bn Pandemic Emergency Purchase Programme. There seemed to be an acknowledgement that it would eventually get extended, but a senior Eurosystem official said that doing so just 3 months into a programme due to last for 9 would appear “a little bit panicky”. The other report was on the European Commission’s proposal for a €750bn recovery fund, which said that the so-called “Frugal Four” member states (Austria, Denmark, the Netherlands and Sweden) would issue a list of their objections in the coming days. The plan would need to be decided by unanimity, so these states clearly have a potential role to play here.

Against this backdrop sovereign debt sold off across Europe, with yields on 10yr bunds climbing +4.5 bps to close at around -0.40% for the first time since mid-April. It was a milder move for US Treasuries, with 10yr yields rising by +0.7bps to 0.659%. Even with the MNI stories there was a further narrowing in peripheral spreads, with those on 10yr Italian and Spanish debt tightening by -3.5bps and -3.1bps respectively.

What might have encouraged optimism yesterday were the manufacturing PMI numbers, which showed some improvement from the dire numbers back in April. The overall number for the Euro Area was revised down a tenth from the flash reading to 39.5, but this was still up from the 33.4 reading back in April. In addition, all the other European countries reporting showed an improvement into May. Rather surprisingly, the strongest European reading was actually in Italy, where the PMI rose to 45.4 (vs. 36.8 expected). Nevertheless, it’s worth bearing in mind that 45.4 is still below the 50-mark that separates expansion from contraction, so we shouldn’t get too excited yet. It was also the country that had the worst starting point. We also saw the ISM manufacturing number from the US yesterday, which rose to 43.1 in May, up from 41.5 in April. However, as with the PMIs this is still pretty bad in absolute terms, even if it’s an improvement from April.

It’s a pretty quiet schedule over the day ahead, with much of the attention on the aforementioned Brexit talks. Data includes UK mortgage approvals and consumer credit for April.

 

3A/ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 5.97 POINTS OR 0.20%  //Hang Sang CLOSED UP 263.42 POINTS OR 1.11%   /The Nikkei closed UP 263.22 POINTS OR 1.19%//Australia’s all ordinaires CLOSED UP .37%

/Chinese yuan (ONSHORE) closed UP  at 7.1063 /Oil UP TO 36.30 dollars per barrel for WTI and 39.13 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.1063 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8834 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC//  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CORONAVIRUS/CHINA/GLOBE/UPDATE

China Finds 300 ‘Asymptomatic’ Infections After Testing Entire Population Of Wuhan; Cases Jump In Hong Kong, Tokyo

Summary:

  • China finds 300 asymptomatic cases after testing all 10 million people in Wuhan
  • Tokyo reports another jump in cases
  • Hong Kong extends some restrictions by 2 weeks after finding new cluster
  • Singapore plans to roll back strict lockdown
  • India, Russia, Brazil report thousands of new cases
  • WHO pushes back against Italy’s top viral expert

* * *

The US was convulsed by another night of violence on Monday, with more than a handful of fatalities recorded mostly among the police officers responding to the violence. Meanwhile, in Asia, Singapore announced plans to reopen its economy after a 2-month lockdown, while Hong Kong expressed concerns that its latest cluster of nine new case might be the beginning of a second wave.

According to Nikkei Asian Review, Hong Kong’s chief executive Carrie Lam has expressed concern over a cluster of nine coronavirus infections linked to the first local case discovered in the territory in more than two weeks. Just in case, Lam said Hong Kong would extend its social distancing measures, which had been due to end on June 4, for an additional two weeks.

On Tuesday, public health officials reported another 6 cases of the virus, including four from one housing bloc, bringing the total number of cases in HK to 1,094, along with 4 deaths.

In Wuhan, the epicenter of the global outbreak, an army of Chinese testers and health workers have found no new symptomatic COVID-19 cases after testing the city’s entire population of nearly 10 million, per the NAR. However, they did discover a total of ~300 asymptomatic cases, which shows that even 6 weeks after declaring the city safe and beginning the process of reopening (which is not yet complete), infections still remain.

Elsewhere, Singapore is taking steps to reopen its economy after an outbreak prompted a two-month lockdown that throttled the city-state’s economy. Select businesses and schools resumed operations on Tuesday in a move authorities said would reignite 75% of the economy and bring a third of Singapore’s workers back to their offices and factories.

As more critics slam regulators in the US for trying to push through Gilead’s remdesivir without sufficient testing, India has approved the drug for emergency use to treat COVID-19 patients, following the lead of the US and Japan.

Last night, Brazil reported 11,598 new cases and 623 deaths, bringing its total to 526,447 cases and 29,937 deaths. Russia reported 8,863 new cases of the novel coronavirus, pushing its nationwide total to 423,741, while deaths rose to 5,037 with 182 deaths confirmed in the last 24 hours, the FT reports.

Tokyo confirms 34 new cases of coronavirus infections as schools, shopping malls and gyms reopened after the state of emergency was lifted on May 25. It is the first time since May 14 for the daily number to reach 30 or more. Gov. Yuriko Koike said the Tokyo government will consider issuing its own alerts including measures asking some businesses to close again.

India confirms 8,171 new cases, bringing its total even closer to 200k (198,706) and marking the third straight day of more than 8,000 infections. India’s death toll will hit 5,598 deaths, up 204 over the past 24 hours.

Finally, after one of Italy’s top viral expert declared the outbreak finished in Europe’s third-largest economy, the WHO clapped back that there is no evidence that coronavirus is losing its potency. “We need to be careful. This is still a killer virus,” said Dr. Michael Ryan of the WHO’s Health Emergencies Program at a WHO press briefing late Monday. “There are thousands of people dying every day because of this virus. We need to be exceptionally careful not to create a sense that all of a sudden, the virus has decided of its own volition to be less pathogenic.” His comments came after Dr. Alberto Zangrillo, head of intensive care at Italy’s San Raffaele Hospital in Lombardy, said the latest swabs taken from patients had such low evidence of the presence of the virus that the new coronavirus “clinically no longer exists”.

END

CHINA/TAIWAN

This does not look good:  China has a full scale model of Taiwan’s presidential palace

(AlMasdarNews)

Ready For War? Largest Chinese Base Has Full-Scale Model Of Taiwan’s Presidential Palace

Via AlMasdarNews.com,

Satellite photos released over the weekend revealed the presence of a full-scale model of the Taiwanese presidential palace at a Chinese military baseThe Drive reported.

In the satellite photos, the images revealed that China’s Zhurihe Combined Tactics Training Base, which is the largest of its kind, has a replica of Taiwan’s presidential palace so that the soldiers of the People’s Liberation Army (PLA) could conduct storming exercises.

 

Mock Taipei Presidential Office Building as previously seen in Chinese state media. 

While conducting urban warfare in mock towns is standard procedure for most militaries, the replica of the Taiwanese presidential palace appears to have a more nationalistic twist, as tensions remain high between Beijing and Taipei.

The model of the of the presidential palace even has the red and white facade of the building from which Taiwanese President Tsai Ing Wen runs the autonomous island.

 

The real Presidential Office building in Taipei, via Wiki Commons.

The front of the mock-up can also be seen very briefly in the below promotional video from 2015 which, according to The War Zone, would have been two years after the structure was built.

Here’s the prior archived state media footage:

Since the election of Tsai in 2016, the Taiwanese government has drifted further away from any potential reunification between Taiwan and China.

This has culminated in strained ties between the two governments, with Taiwan increasing its military capabilities, thanks in large part to the United States.

Satellite photos recently captured by Planet Labs and republished in The Drive:

At the start of 2020, the Taiwanese military carried out a large-scale exercise on island against a potential Chinese invasion force.

This exercise sent a message to Beijing that Taipei is prepared for a potential war with China, should diplomatic efforts collapse.

4/EUROPEAN AFFAIRS

Italy//Coronavirus

You will recall that Dr Luc Montagnier stated that the Covid 19 is man made.  However he also states that the virus will mutate to its original form,..the common cold

Looks like Italy is already there.

(zerohedge)

 

Virus “No Longer Exists” In Italy, Top Italian Doctor Sees COVID Potency Plunge

The global case tally for COVID-19 continues to inch higher, now at 6.19 million on Monday, according to data aggregated by Johns Hopkins University. As the virus rages in South America and India, infections in the US and Europe continue to wane.

On Monday morning, there were 232,997 confirmed cases and 33,415 virus-related deaths in Italy, according to official government data. There is good news; the pandemic curve is mostly flattening in the European country after months of strict social distancing and lockdowns. Though, the trade-off was a collapse in the country’s economy.

Recently, the EU Commission published new guidelines on how to “reboot” the continent’s tourism industry in 2020 and beyond. The new guidelines state: “principle of non-discrimination,” member states should “allow travel from all areas, regions or countries in the EU with similar epidemiological conditions.” While we noted some member states had a conflict with reopening and allowing cross-border activity, it appears Italy is now prepared to reopen its travel and tourism industry.

Ahead of Italian officials reopening the country’s resort towns and beaches, a top Italian doctor was quoted Sunday by Reuters as saying the deadly virus is “losing its potency” and has become much less lethal.

“In reality, the virus clinically no longer exists in Italy,” said Alberto Zangrillo, head of the San Raffaele Hospital in Milan, which was one of the hardest-hit areas during Italy’s COVID-19 outbreak.

“The swabs that were performed over the last ten days showed a viral load in quantitative terms that was infinitesimal compared to the ones carried out a month or two months ago,” Zangrillo said.

Zangrillo’s comments come as new infections and fatalities declined in May, and the country is easing restrictions ahead of the summer season, a move that could potentially restart the crashed economy.

He said many experts were “alarmist” about the prospect of a second coronavirus wave, and government officials need to take into account the new reality of a less potent virus.

“We’ve got to get back to being a normal country,” he said.

Zangrillo triggered disbelief among health officials who said it was too early to say the virus has been completely eradicated.

“Pending scientific evidence to support the thesis that the virus has disappeared, I would invite those who say they are sure of it not to confuse Italians,” Sandra Zampa, an undersecretary at the health ministry, said in a statement.

Franco Locatelli, president of the Superior Health Council, said he was absolutely “baffled” by Zangrillo’s comments:

“It’s enough to look at the number of new positive cases confirmed every day to see the persistent circulation in Italy of the new coronavirus,” Locatelli said.

In a bid to thwart a second wave, Italy launched a contact-tracing app on Monday in 20% of the country, with more of the country to come online in the coming weeks.

It wasn’t just Zangrillo who said the virus has weakened; a second doctor told ANSA news agency:

“The strength the virus had two months ago is not the same strength it has today,” said Matteo Bassetti, head of the infectious diseases clinic at the San Martino hospital in the city of Genoa.

“It is clear that today the COVID-19 disease is different.”

And for those returning to Italian beaches, you might want to read our recent piece titled “Italian Beachtowns Plan “Plexiglass Cages” To Enforce Safe-Sunbathing This Summer” to get a view of what beaches could look like in a post-corona world.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

Michael Every..

 

Rabobank: The 1968 Riots Were A Significant Factor To The Election Of Richard Nixon

Submitted by Michael Every of Rabobank

In the face of yet more US protests/riots in defiance of curfews, US President Trump last night threatened to bring in the military to maintain control. How things change. We have moved on from an era in which an army was seen of little practical use, and defence budgets slashed; entered one where an army is accepted as needed at some point for looming national security threats, and defence budgets raised; just left one where an army was relied on to deliver logistical support during a county-wide virus lockdown; and are stumbling into one where an army is required to keep control of a liberal democracy. There are, of course, an army of commentators discussing this one way or the other: it’s Law & Order; its’s fascism; it’s about time; it’s the end of US global leadership (which has huge long-term implications for markets if true). US voters will get their say in November.

Yet on the latter point we have seen sympathy protests in the UK, Europe, and even as far away as New Zealand. That does not suggest people no longer care about the US, even if they abhor what has triggered these protests. Not caring would be to shrug, as the same protestors have done about many other major human rights abuses taking place globally – but quite the opposite is happening. Yes, we saw some heavy USD selling yesterday: but it is very unlikely tied to a market walk-away from the US due to this unrest, however serious it is. Indeed, while the USD was having a bad day US stocks still had a reasonably good one, showing US assets are not being dumped even as lock-down fears turn to burn-down and quarantine to curfew. Likewise nobody was running from US Treasuries, even if ‘risk on’ ironically meant 10-yer yields drifted up around 4bp at one point during the day.

In many respects the rise in stocks when the military are about to be called in is odd. True, one can argue this just a case of ***trigger warning for a certain section of the readership of this Daily*** Baron Rothschild’s infamous quote “the time to buy is when there’s blood in the streets.” However, those in markets know who is to ‘blame’ for stocks shrugging off riots; and economic weakness; and geopolitical risks – central banks. Their ongoing largesse ensures it is almost impossible to repress asset prices.

Unfortunately, as the US is now showing, this is a policy doomed to end in failure, just as it has on the inflation front.

For *years* our research team has been arguing about the dangers of socio-economic inequality caused by a globalised, financialised economy, with the US pursuing it most aggressively of all. We live in an asset-rich, income-poor world – and one where this was not decried, but celebrated by politicians, central bankers, and most of the financial press.

Moreover, every time the system looks like it is about to reset due to its own inherent contradictions and stupidities, and so asset prices move lower, central banks increase QE again –and now even outright monetise debt– to ensure that this cannot happen. And markets cheer it on.

I am far from the first to say it, but this is socialism for the rich and raw capitalism for everyone else. As such, the results are obvious. Even during Covid-19, which is devastating the economy, pushing unemployment to depression levels, slashing incomes, destroying small businesses, and upending global supply chains, the rich and powerful have got vastly richer and more powerful in both nominal and relative terms. Heads they win; tails you lose. Until we all lose.

There is an emergent view, strongly supported by Turchin’s use of cliodynamics to quantitatively model how countries move from inclusive economic growth and social stability to civil breakdown, that at least one common denominator to both the Hong Kong protests and those in the US is a feeling of bitter disenfranchisement as glittering designer shops and media extolling them spring up next to unsung millions struggling to make ends meet. In that regard, the more QE we get from here, the worse things get in social and political terms. It will be a red flag to a bull, even if it is bullish for assets.

The only logical exception is if that QE becomes MMT and is spent on ordinary people by the government. The other alternative is raw capitalism for everyone, major trust-busting, and an epic asset-price reset: but that Austrian cure is probably going to kill the patient at this stage. On MMT, imagine if the USD2.1 trillion bailout package and USD3.8 trillion fiscal deficit now expected for 2020 were directed mostly into ordinary people’s pockets instead of special interests. Do you think we would be facing an economic slump, or an economic boom? Even the psychological recognition that the government was prepared to think and act like that would be extremely positive. (“A word about my personal philosophy. It is anchored in optimism. It must be, for optimism brings with it hope, a future with a purpose, and therefore, a will to fight for a better world.” ***Trigger warning for a certain section of the readership of this Daily*** Saul Alinsky)

Yes, if we were to see MMT really embraced then it changes domestic political dynamics; we can burn the economics textbooks – which we should be burning anyway; and it opens up a host of geopolitical problems, as has been explored here many times before. (See Moody’s latest downgrade of Indian sovereign debt rating, for example; and note the rumours that China is going to pause US agri purchases.) However, if the alternative is social breakdown and the army on the streets, which one looks more attractive? Sadly, perhaps still that status quo:

  • US Republicans are already talking about dealing with the federal debt, as if that were possible, and many Democrats feel the same.
  • The UK has had to disavow rumors of public-sector austerity ahead – but it’s coming if certain factions of the Tories get their way. Talk Radio is now asking how the debt will be dealt with.
  • In Australia there is talk of a public-sector pay freeze and handing out AUD20,000 to new home buyers despite ‘tradies’ being so busy they don’t bother answering the phone: taxpayers need to ensure Aussie houses are more expensive as wages freeze or fall in other sectors. (The RBA flagged the worst downturn since the 1930s as it left rates on hold today, albeit “it is possible that the depth of the downturn will be less than earlier expected.”)
  • Need I add that Europe and austerity usually go together like love and marriage? There is still no agreement from the Frugal Four on the proposed, mildly-expansionary EU budget.

As a final historical heuristic, and with 2020 elections looming in the US, note that historians see the 1968 riots were a significant contributing factor to the election of the socially-conservative Richard Nixon; and economic historians know this marked the start of the subsequent US economic policy shift towards the market-centred neoliberalism that has ended up with us all relying on QE.

Have we come full circle, or are we about to take things to the next level?

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

India

India is still facing major problems due to the coronavirus.  It’s electricity generation plunges as it suffers its worst economic downturn in decades.

(zerohedge)

India’s Electricity Generation Plunges As Worst Economic Downturn In Decades Unfolds 

India has announced plans to ease a strict national lockdown even as the spread of COVID-19 shows no signs of abating. Restaurants, hotels, malls, and places of worship could reopen in the near term. Despite reopening plans, India’s economy is rapidly deteriorating, which has led to a significant decline in electricity generation.

Even before the two-month lockdown, India’s economy was decelerating and now faces the worst recession in four decades. The country’s economy could contract by at least 5% this fiscal year.

Economic paralysis has led to a collapse in electricity generation across the country, plunging 14.3% in May, compared with a 24% decline in April, a new Reuters analysis of government data showed.

The report said electricity demand was higher among households, as consumption among industries and commercial places was still widely depressed. Factories account for 50% of India’s annual electricity demand, which suggests operating capacity is still low.

India’s economic downturn will result in a decline in the country’s electricity demand for the next several years. Global rating and research agency CRISIL recently said it could take upwards of three years for the economy to get back to growth activity seen in 2019. This means India will not see a V-shaped economic recovery, but rather one that is more of a U or L-shaped.

CRISIL believes India’s economy will suffer a 10% permanent loss to real GDP thanks to the pandemic-induced downturn.

India will need fiscal support from the government this year to counter the recession. If policy support is limited, it means the downturn will increasingly get worse in the back half of 2020.

Here’s what a recent UBS note said about India’s troubling situation:

“While there is no doubt that India is facing a significant economic shock, the pace of recovery, if any, will be determined by the economic policy choices taken to ensure that the significant secondary impacts (job losses, reduced income levels, corporate defaults, rising NPLs (non-performing loans), rating downgrade, etc.,) can be contained,” UBS said in a report.

A few months before the virus outbreak spread across the world, we noted in late 2019 that India’s economy was collapsing in a piece titled “India In “Very Deep Crisis,” Witnessing “Death Of Demand,” Warns Former Indian FM.”

It just so happens that the global economy was slowing before the pandemic began — which has allowed governments and central banks to scapegoat the virus and deflect any attention from their failed policies to boost economic growth.

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 1.1175 UP .0049 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS/PANDEMIC/USA BURNS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 108.12 UP 0.568 (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 1.2539   UP   0.0053  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3522 DOWN .0059 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 49 basis points, trading now ABOVE the important 1.08 level RISING to 1.1175 Last night Shanghai COMPOSITE CLOSED UP 5.97 POINTS OR 0.20% 

 

//Hang Sang CLOSED UP 263.22 POINTS OR 1.19%

/AUSTRALIA CLOSED UP 0,37%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 263.42 POINTS OR 1.11%

 

 

/SHANGHAI CLOSED DOWN 30.52 POINTS OR 0.20%

 

Australia BOURSE CLOSED UP. 37% 

 

 

Nikkei (Japan) CLOSED UP 263.32  POINTS OR 1.11%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1740.30

silver:$18.24-

Early TUESDAY morning USA 10 year bond yield: 0.68% !!! UP 2 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.49 UP 4  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 97.56 DOWN 27 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.51% UP 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.01%  UP 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.56%//DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,51 UP 7 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 95 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.02% 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 1.1179  UP     .0054 or 54 basis points

USA/Japan: 108.67 UP 1.106 OR YEN DOWN 111  basis points/

Great Britain/USA 1.2553 UP .0066 POUND UP 66  BASIS POINTS)

Canadian dollar UP 77 basis points to 1.3505

 

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The USA/Yuan,CNY: AT 7.1014    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1061  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.7077 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield UP 2 IN basis points from MONDAY at 0.68 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.49 UP 3 in basis points on the day

Your closing USA dollar index, 97.60 DOWN 23  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 29.96  0.88%

German Dax :  CLOSED UP 434.43 POINTS OR 3.75%

 

Paris Cac CLOSED UP 96.19 POINTS 2.02%

Spain IBEX CLOSED  UP 186.70 POINTS or 2.59%

Italian MIB: CLOSED UP 447.38 POINTS OR 2.42%

 

 

 

 

 

WTI Oil price; 36.54 12:00  PM  EST

Brent Oil: 39.32 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    67.07  THE CROSS LOWER BY 0.24 RUBLES/DOLLAR (RUBLE HIGHER BY 24 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.41 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 :  36.89//

 

 

BRENT :  39.63

USA 10 YR BOND YIELD: … .68…UP 2 BASIS POINTS…

 

 

 

USA 30 YR BOND YIELD: 1.48…UP 3 BASIS POINTS..

 

 

 

 

 

EURO/USA 1.1167 ( UP 42   BASIS POINTS)

USA/JAPANESE YEN:108.67 UP 1.118 (YEN DOWN 112 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.71 DOWN 12 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2546 UP 60  POINTS

 

the Turkish lira close: 6.7032

 

 

the Russian rouble 68,71   UP 0.32 Roubles against the uSA dollar.( UP 32 BASIS POINTS)

Canadian dollar:  1.3520 UP 62 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.41%

 

The Dow closed UP 267.63 POINTS OR 1.05%

 

NASDAQ closed UP 56.33 POINTS OR 0.59%

 


VOLATILITY INDEX:  26.79 CLOSED DOWN 1.44

LIBOR 3 MONTH DURATION: 0.337%//libor dropping like a stone

LIBOR/OIS:  .275%

TED SPREAD: (LIBOR VS 3 MONTH TREASURY BILL YIELD)  =  .190%

 

USA trading today in Graph Form

Dead Cops, Looted Shops, Cities Burning, Buy Stocks!

While we are constantly told that Black Lives Matter, Blue Lives Matter; in fact, truth be told, ALL LIVES MATTER; but, there is one thing that matters more… higher stock market prices…

Trannies led the day… (there was a blip lower around 1030ET when NYC announced its extended curfew – but that was bid) but another major buy on close imbalance sent everything rallying into the close…

Another night of utter carnage across the nation and global pandemic number starting to re-accelerate suggesting a second wave more likely – so of course, buy stocks!

US equity markets played deja vu all over again in the early going with overnight gains fading into pre-open weakness leading to panic-buying shortly after the dump…

The Nasdaq 100 is now 1.2% below its record high…

 

Treasury yields were higher across the curve, but the long-end steepened most…

Source: Bloomberg

But while stocks have soared, yields have gone nowhere off the lows…

Source: Bloomberg

The dollar continued its slide lower, breaking below its 200DMA…

Source: Bloomberg

Bitcoin puked in one big move today after lurching higher yesterday…

Source: Bloomberg

The rest of the crypto space was also slammed at around 1045ET…

Source: Bloomberg

Oil prices extended their surge with July WTI approaching $37, ready to cross above its 100DMA and fill the February gap…

Source: Bloomberg

Gold was punched back below $1750…

But, for once, silver notably underperformed…

The Gold/Silver ratio rose for the first time in 6 days (and only the 4th time in the last 21 days)…

Source: Bloomberg

And finally, in case you were unclear on just how this farce is occurring…

Source: Bloomberg

As Mohamed El-Erian diplomatically pointed out this morning:

I understand people who bet on moral hazard. I understand people who bet on The Fed backstop. I don’t do it. I don’t think that’s a good way to invest… I’d rather invest on the basis of fundamentals”

He continued…

“This notion that it doesn’t matter what happens to fundamentals. It doesn’t matter what happens to corporate earnings. It doesn’t matter what happens to economic growth… because The Fed will buy what I want to buy… that’s the mindset of the market right now.”

Trade accordingly.

END

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

MARKET TRADING//USA

a)Market trading/LATE MORNING/USA

Market Tumbles As De Blasio Announces NYC Curfews Will Extend All Week

NYC Mayor Bill de Blasio, fresh off abusing his police force for defending themselves, has announced that the curfew in New York City (from 8pm to 5am) is extended through Sunday.

And that – yep that – has triggered selling in the stock market…

President Trump added somewhat to the anxiety by tweeting:

Donald J. Trump

@realDonaldTrump

NYC, CALL UP THE NATIONAL GUARD. The lowlifes and losers are ripping you apart. Act fast! Don’t make the same horrible and deadly mistake you made with the Nursing Homes!!!

But still it’s farcical that after last night’s chaos, this is what triggers a stock selloff.

 

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

Trump demands law and order

Trump: “I Am Your President Of Law And Order”

Update (1850ET): In his brief remarks, Trump said he would deploy military resources to quell violence and unrest – a move with little precedent in the last few decades – and insisted he was an “ally to the peaceful protesters” and that his administration is “committed to justice” for the Floyd family.

  • TRUMP SAYS HIS FIRST DUTY IS TO DEFEND COUNTRY, PEOPLE
  • TRUMP SAYS ADMIN. IS COMMITTED TO JUSTICE FOR FLOYD FAMILY
  • TRUMP SAYS HE’S AN ALLY OF PEACEFUL PROTESTERS
  • TRUMP SAYS VIOLENCE NOT ACT OF PEACEFUL PROTESTS
  • TRUMP SAYS INSTANCES OF VIOLENCE `ACTS OF DOMESTIC TERROR’
  • TRUMP: MOBILIZING CIVILIAN, MILITARY RESOURCES TO STOP RIOTING
  • TRUMP SAYS HE RECOMMENDED GOVERNORS DEPLOY NATIONAL GUARD
  • TRUMP SAYS HE TOLD GOVS. TO DEPLOY GUARD TO `DOMINATE’ STREETS
  • TRUMP SAYS HE WILL DEPLOY MILITARY IF CITIES, STATES WON’T ACT
  • TRUMP SAYS HE’S DISPATCHING `THOUSANDS’ OF ARMED SOLDIERS

*  *  *

Update (1840ET): We suspect the reason for the delays in the remarks are that police have fired tear gas, deployed flash bangs to disperse protest near White House.

*  *  *

In what appears to be a previously unscheduled event, The White House has issued a statement that President Trump will deliver remarks to the nation from The Rose Garden at 1815ET (delayed to 1830ET now according to a Trump tweet).

Donald J. Trump

@realDonaldTrump

I will be delivering brief remarks from the Rose Garden at 6:30 P.M. Eastern to update on the Federal Response.

The remarks come hours after berating governors for taking a “weak” approach to ending the violence and shortly after reports of the possible use of The Insurrection Act…

Watch Live:

ENDDeadly rioting last night:Summary

Multiple Dead/Injured As Rioters Target Cops After Trump’s Threat Of Military Force Fails To Deter 7th Night Of Violence

Summary:

  • President Trump threatens to deploy military
  • At least nine dead, +4,000 arrested, riots rage in 140 cities as riots rage for the seventh day 
  • National Guard deployed in 23 states
  • 40 cities to impose strict curfews

*  *  *

Update (0830ET): Last night saw the worst of the violence aimed at police officers with one dead, at least five shot, and at least four more run over by “protesters.”

At least five U.S. police were hit by gunfire during violent protests over the death of a black man in police custody, police and media said, hours after President Donald Trump said he would deploy the military if unrest does not stop.

  • One US Marshall killed in Las Vegas
  • -Four officers shot in St. Louis
  • -At least two officers run over in Buffalo, NY
  • -One NYPD officer run over in the Bronx
  • -Another run over in Greenwich Village

An emotional St Louis police commissioner, John Hayden, said about 200 protesters were “jumping up and down like crazy people”, looting and throwing fireworks and rocks at officers.

Rachel Olding

@rachelolding

Hard to describe how rampant the looting was tonight in Midtown Manhattan and how lawless it was. Complete anarchy. Literally hundreds of stores up and down Broadway, Fifth Ave, Sixth Ave. Kids ruling the streets like it was a party.

View image on Twitter

 

President Trump on Monday evening threatened to activate federal troops if governors and city mayors did not act to suppress continuing social unrest across major metros over the killing of George Floyd.

After the president spoke, the situation across the country rapidly deteriorated into the evening, as riots continued for the seventh straight day.

Protests were organized in more than 200 cities. Many of the demonstrations began peacefully but turned violent by evening. About 140 cities saw riots, resulting in government officials in 40 metro areas to impose strict curfews. New York City issued its first curfew on Monday, which was the first time an official curfew was imposed in the city since 1943.

At the moment, and growing by the day, 23 states and the District of Columbia have activated National Guard troops to support local law enforcement in restoring order. Customs and Border Protection flew their military surveillance drone on Monday afternoon, though our report didn’t specify if it was monitoring unrest in any city. However, it appeared the drone was conducting a mock surveillance mission of a metro area.

Deaths connected with social unrest continues to grow. Here’s the tally so far according to AP News:

Louisville 

As local police and the National Guard sought to disperse a crowd early Monday, they heard gunshots and returned fire, killing the owner of a barbecue restaurant, David McAtee. The mayor has since terminated the city’s police chief after finding out that officers on the scene did not activate their body cameras. The state police and the U.S. attorney also are investigating.

The 53-year-old McAtee was an African American man known for offering free meals to officers who stopped by.

“We lost a wonderful citizen named David McAtee,” Louisville Mayor Greg Fischer said. “David was a friend to many, a well-known Barbecue man.”

The protests in Louisville have centered not just on Floyd’s killing but also the death of Breonna Taylor, a black woman killed in her home in Louisville in March. The 26-year-old EMT was shot eight times by narcotics detectives who knocked down her front door as they attempted to enforce a search warrant. No drugs were found in the home. – AP 

Oakland

A federal law enforcement officer was providing security at the federal courthouse in Oakland during a protest when someone fired shots from a vehicle.

Dave Patrick Underwood, 53, died and another officer was critically injured in the shooting.

It was not immediately clear if the drive-by shooting was related to the protests, though the federal building’s glass doors were smashed and the front entrance was sprayed with anti-police graffiti.

Underwood, who was black, and the other officer were contracted security officers and employed by the Department of Homeland Security’s Federal Protective Service; they were monitoring a nearby protest.

No one has been arrested and a motive for the shooting has not yet been determined.

Underwood was the brother of Angela Underwood Jacobs, recently a Republican candidate to fill a vacant U.S. congressional district north of Los Angeles. -AP 

Indianapolis

Two people were killed over the weekend amid unrest in Indianapolis, including 38-year-old Chris Beaty, a former offensive lineman for Indiana University.

Beaty was known as “Mr. Indianapolis” and remained involved with the Hoosiers long after his graduation. He also was a prominent businessman in the city and ran multiple nightclubs.

“I am at a loss for words. The news of the passing of Chris Beaty is just devastating,” coach Tom Allen said in a statement. “Since I returned home to coach at Indiana, Chris embraced me, encouraged me and supported me! His passion for life and Indiana Football energized me every time we were together.”

The circumstances of his shooting weren’t immediately clear but some media reports said it happened near an apartment where he lived. It also occurred the same night that an 18-year-old man also was fatally shot as protests broke out in the city. -AP

Minneapolis 

In what is believed to be the first killing since the protests broke out, a 43-year-old black man was fatally shot outside a pawn shop as rioting broke out last week in Minneapolis and then spread nationally.

The owner of the pawn shop, who is white, was arrested in the death of Calvin L. Horton Jr. Police say they are investigating the circumstances surrounding the killing, including whether it was related to protests in the neighborhood.

The shop was described as having been significantly damaged during unrest. – AP

Omaha, Nebraska 

A 22-year-old black man was killed after authorities said he tussled with the owner of two bars in downtown Omaha. Surveillance video of the strip of bars shows a group of people, including James Scurlock, approach bar owner Jake Gardner.

Two people are seen on the video tackling Gardner, who ended up on his back and fired shots in the air. Seconds later, Scurlock is seen tackling Gardner, who then fires the gun over his shoulder, striking Scurlock.

Authorities have declined to press charges, calling the shooting self-defense. -AP 

Detroit 

A 21-year-old man was killed in downtown Detroit after someone fired shots into a vehicle during a protest. According to a police report, the man was sitting in the driver’s seat of a car in a parking lot with two others when someone fired shots into the vehicle and then fled on foot. -AP

Chicago Suburb

Two people were killed during unrest Monday in the Chicago suburb of Cicero, according to a town official. Spokesman Ray Hanania did not provide details about those who were killed but said it happened amid protests there. -AP 

Here are some of the most important developments from the overnight: 

  • President Trump threatens to deploy military if states and cities don’t squash social unrest
  • Washington, Baltimore and New York unrest continues to worsen
  • Helicopters buzz protesters in downtown Washington, DC
  • NYPD officer hit by a car in the Bronx
  • Las Vegas police officer shot during protests
  • Two officers hit by a car in Buffalo during protests
  • Four St. Louis officers shot during protests
  • “This is how nations collapse”: Fox News’ Tucker Carlson slams Trump’s response to protests
  • Pelosi, Schumer condemn President Trump for tear-gassing protesters outside White House
  • National Guard forces activated in 23 states and Washington, DC
  • 40 cities and Washington, DC, have imposed curfews
  • Looting intensifies in Manhattan
  • Protests worsen in Los Angeles and Oakland

In the past seven days, at least nine people have died, +4,000 arrested, riots rage in 140 cities, hundreds (or maybe thousands of stores looted), commercial and government buildings burned, and National Guard deployed in 23 states — here are some of the scenes of the chaos from the overnight:

Looting seen in New York City and Los Angeles as curfew nears and protests/looting spread to the suburbs around the nation. High-end stores like Bloomingdales, Gucci, Nike Soho, Chanel, Tory Burch, Kate Spade were all vandalized. Best Buy in Union Square and several drug stores were also hit.

Shayna Jacobs

@shaynajacobs

Chaos already by Union Square. Looters pouring in and out of boarded up Zumiez apparel store. Nearby, people are jamming sneakers and clothes into their backpacks. It’s like a shopping spree.

Embedded video

The_Real_Fly@The_Real_Fly

FIFTH AVE NIKE STORE LOOTED. LAWLESS

Embedded video

NYPD officer struck by a car

Mihir Jha ✍️@MihirkJha

See how a Car hits a NYPD officer, see how his body flies in air and then falls on the ground.
What kind of justice this is for ?

Embedded video

See Mihir Jha ✍️‘s other Tweets

Possible explosives used to blow apart an ATM machine in Philadelphia

FreeZerohedge@freezerohedge

Rioters blowing up ATMs in Philadelphia

Embedded video

SUV plows into officers in Buffalo 

Amichai Stein

@AmichaiStein1

: Video shows SUV plowing into officers at Floyd protest in Buffalo, New York, running over at least 1, then speeding away

Embedded video

An epic gun battle between police and rioters broke out in St. Louis

Ian Miles Cheong

@stillgray

Police in St. Louis are under live fire from rioters. Four have been shot, sent to hospital.

Embedded video

America is quickly descending into chaos with unrest expected to continue this week.

end

Auto sales plunge 33% in May; its worst reporting since 2009

(zerohedge)

Auto Sales Plunge 33% In May, Set For Worst Year Since 2009

US auto sales are expected to continue their historic plunge in May, further pressuring an industry that is on the brink of all out collapse due to the pandemic lockdowns, plunging used car prices and suffering from a pre-virus recessionary environment.

Sales figures for May are expected to fall 33% to just 1.05 million units, according to Cox Automotive and CNBC. Even worse, data from Bank of America indicates that demand for new vehicles could be dropping off a cliff at the same time the industry is getting ready to ramp up production again.

The numbers show a sequential improvement from April, but still offer an ominous outlook for the auto industry heading into the second half of 2020. Cox Automotive estimates the pace for U.S. car sales to be about 11.4 million units sold by the end of the year, which would make 2020 the worst year for car sales since 2009. These numbers compare to 17.4 million cars sold in 2019.

And it may not be because drivers are staying home anymore. Bank of America data from gas stations shows that drivers are back on the road again. “We estimate that gas consumption (in gallons) was still down about 30% YoY in April, but improved to -14% for the week ending May 23rd (latest available),” the bank wrote in a May 29 note.

May’s numbers are in focus since the month kicks off summer sales season, traditionally the point in the year when dealers try to move inventory to make room for new models. Last weekend, some dealers offered incentives like 0% financing and 84 month financing offers to try and entice buyers into showrooms.

Some of the most generous incentives, offered around the time the virus started, are already being roped in as sales dead-cat bounce off their 2020 monthly lows. Auto analysts are blaming a lack of readily available inventory for the drop in sales, which is hilarious since the country is suffering from an unprecedented glut.

“At a minimum, selection may become more limited as the desired model may be in stock but not in the consumer’s preferred color or trim, potentially resulting in the consumer delaying purchase, switching brands, or moving into the used-vehicle market,” Cox Automotive explains.

Jessica Caldwell, Edmunds’ executive director of insights, said: “We can safely say that April was the bottom for auto sales during the coronavirus pandemic. There’s still a long road to recovery ahead, but May auto sales are a really encouraging sign for the industry.”

But experts that are sure the bottom is in are focused on manufacturing without any regard as to whether or not demand is going to pick up. 

Thomas King, president of the data and analytics division and chief product officer at J.D. Power, said Thursday: “The good news is that in general manufacturing is restarting. Even with our diminished sales pace, we are still in an environment where the industry is selling more vehicles than it produces.”

With manufacturing picking up, we’ll see how long that lasts. Meanwhile, Bank of America notes that spending in auto parts is ramping up, indicating that OEM demand could be slipping as car owners may be more inclined to fix their current cars instead of buying new ones.

The bank thinks that many Americans spend their stimulus checks on fixing their cars:

“This data remained weak in the first two weeks of April, but took a sharp uptick in mid-April as stimulus checks began to reach US consumers. This benefit has lingered since mid-April, and auto parts demand now has additional support from increased driving activity as US markets begin to reopen for business. Daily auto parts spending was up approximately 23% YoY on average during the week ending May 23rd (latest available) according to the aggregated card data.”

The industry is expected to have a lost a total of 1.2 million to 1.6 million total sales as a result of the pandemic. 

King concluded: “Many of those will be recovered in the future, but some of them will be lost. Many consumers have lost the accountability to purchase a new vehicle or no longer need one because they no longer commuting to work.”

We’ll take the “under”…

END

This may be deadly:  California braces for a financial collapse as it allows businesses to walk away from commercial leases

(zerohedge)

California Faces “Financial Collapse” As It Moves To Allow Businesses To Walk Away From Commercial Leases



Mon, 06/01/2020 – 21:54

One of the bedrocks of modern US capitalism – which is now mutating by the day if not hour as the Fed scrambles to preserve at any cost its the towering edifice after decades of malinvestment, even the nationalziation of the very capital markets that made America great – and one of the constants along with death and taxes, is that residential debt is non-recourse, meaning one can simply walk away from one’s mortgage if the bill is untenable, while commercial debt is recourse, or pledged by collateral that has to be handed over to the creditor if an event of default occurs.

However, in the aftermath of the sheer devastation unleashed upon countless small and medium commercial businesses which will be forced to file for bankruptcy by the thousands, this may all change soon.

As the Commercial Observer reports, last Friday, the California Senate Judiciary Committee advanced a bill that would allow small businesses — like cafes, restaurants and bars — to renegotiate and modify lease deals if they have been impacted by shelter-in-place orders and economic shutdowns. If an agreement isn’t reached after 30 days of negotiations, the tenant can break the lease with no penalty, effectively starting a revolution in the world of credit by retroactively transforming commercial loans into non-recourse debt.

Landlord advocates have, predictably, been mobilizing in opposition, arguing that the proposal is unconstitutional, and that it would “upend” leases around the state. Justin Thompson, a real estate partner with Nixon Peabody, told Commercial Observer that it was illuminating to see so many industry organizations come out “so vehemently opposed” in a short period of time. Having heard from industry groups all week, Thompson said the general consensus in the commercial real estate community is that the bill is “overly broad, overreaching, and it is a bit of a sledgehammer” when something less blunt would do.

“Everyone recognizes that restaurant tenants and smaller non-franchise retail tenants in particular really are in dire straits and in need of assistance,” Thompson said. “But I think the implications of SB 939 are really laying it at the feet of landlords, and putting them in the situation where, even if they have tenants that were going to make it through this, they might now rethink that and leave the landlord in the lurch.”

Senate Bill 939 was initially introduced as a statewide moratorium that would prohibit landlords from evicting businesses and nonprofits that can’t pay rent during the coronavirus emergency. But it was amended in the week to also give smaller businesses the ability to trigger renegotiations if they have lost more than 40 percent of their revenue due to emergency government restrictions, and if they will be operating with stricter capacity limits due to continued social distancing mandates.

If the parties do not reach a “mutually satisfactory agreement” within 30 days after the landlord received the negotiation notice, then the tenant can terminate the lease without liability for future rent, fees, or costs that otherwise would have been due under the lease.

One of the bill’s authors, Sen. Scott Wiener, said during the hearing that the bill is focused on the hospitality sector, which has been most devastated. The renegotiation provision will not apply to publicly owned companies or their businesses. The law would be in effect until the end of 2021, or two months after the state of emergency ends, whichever is later.

Quoted by the Commercial Observer, Wiener argued that the state faces “a mass extinction event of small businesses and nonprofits in every neighborhood,” and the “very real prospect” of them permanently closing due to prolonged mandates that reduce capacity, “chopping in half someone’s business.”

“This would change the face of our state permanently,” he said. “It would severely hamper our ability to recover.”

And while not everyone shares this view, most seem to agree on one thing: one way or another California is screwed. Matthew Hargrove, senior VP of government relations for the California Business Properties Association (CBPA), wrote a letter to the committee saying SB 939 “could cause a financial collapse.”

So, the choice facing California is either a “mass extinction event of small businesses” or “financial collapse.” Sounds about right.

* * *

“This postponement of rents will cause … landlord’s financials to crumble and lead to lenders putting out cash calls to lower loan balance and foreclose when landlords cannot pay, and cripple landlords’ abilities to keep their properties open and maintained,” the letter read. CBPA also argued it is unconstitutional for a state to pass a law impairing the obligation to contracts, and warned it would “allow one party to unilaterally abrogate real estate leasing contracts.”

CBPA is the designated legislative advocate in California for the International Council of Shopping Centers, the California Chapters of the Commercial Real Estate Development Association, the Building Owners and Managers Association of California, the National Association of Real Estate Investment Trusts, AIR Commercial Real Estate Association, and others. Those groups also warned members and clients about the bill, and voiced opposition during the hearing on Friday.

Thompson added that the bill risks crushing foundational landlord-tenant relationships throughout the state. Worse, if it passes in California and is adopted in other states across the country, the very foundations of modern finance would be shaken resulting in catastrophic consequences.

“Everything we do, especially in real estate, runs on relationships,” he said. “I think that when you tip the balance so far in favor of the tenant the way that [SB 939] does, it certainly strikes at the heart of the idea that we are in this together. … This does not make it feel like landlords and tenants are in this together anymore.”

The law firm Buchalter, which has offices in L.A., Orange County, San Francisco and around the West Coast, warned clients that the bill sets a “terrible precedent” that will “upend all your leases.”

“The rights afforded under SB 939 would effectively rewrite every commercial lease in California” other than publicly traded companies, the firm said. It “negates all current commercial leases to the benefit of one business over another.”

Instead, Buchalter said the state should provide assistance to tenants impacted by the stay-at-home orders, and pointed to the “more reasonable” renter relief proposals introduced by Senate Pro Tem Toni Atkins

Wiener said they are sensitive to the needs of property owners in terms of their loan obligations.

“It’s a complicated issue. We don’t want these property owners to default on their loans,” he said. “But we also need to be clear: these landlords aren’t going to be able to collect the pre-COVID rents from these restaurants, bars and cafes. That is not the reality. The choice is not between full rent and reduced rent. The choice is between reduced rent and no rent.”

He argued current leases negotiated before the pandemic reflect a “different financial reality.”

“Restaurants, bars, and cafes are expected, frankly, to just suck it up, and magically come up with the high rent that was obtained in pre-COVID circumstances,” he said. “This provision is not for leases to be terminated. It is to provide space and incentive to actually get the renegotiation done. … We know that overwhelmingly, these businesses don’t want to close down. This is their life’s work, they want to find a way to survive.”

Wiener said many commercial landlords are already working with renters, waiving backrents, and restructuring leases.

“It’s not in anyone’s interest where the landlord gets no revenue,” he said. “Sadly, on the other hand, all too many commercial landlords are refusing to renegotiate; are insisting that the pre-COVID, unrealistic rent be paid; are invoking lease-rent escalators; are imposing late fees on backrent. That is happening all over the state.”

During a press conference Thursday, Roberta Economidis, a partner with GE Law Group hospitality law practice, said that in order to survive, “hospitality-related businesses need long-term rent relief, not simply a deferral of high rents now that will become an insurmountable debt later.”

Governor Gavin Newsom already gave local governments authority to halt commercial evictions, and some cities like San Francisco and Los Angeles quickly did soBut SB 939 would cover all California businesses and nonprofits from eviction, whether their local jurisdictions have acted to do so or not.

SB 939 will be heard in the Senate Appropriations Committee this month; if passed it will trigger the next wave of devastation in the commercial real estate space.

END

Wells Fargo stops making loans to independent car dealer:  brace for a huge default wave here

(zerohedge)

 

Banks Brace For Default Wave: Wells Fargo Stops Making Loans To Independent Car Dealers

Two months ago, we reported that after the largest US bank had quietly exited the new loan issuance market, and hiked mortgage standards, JPMorgan also stopped accepting HELOCs, in what appeared to be a comprehensive withdrawal from the loan market ahead of the coming deluge of corporate bankruptcies spawned by the coronavirus shutdowns. This was confirmed just weeks later when in the latest Senior Loan Officer Survey we found that it has become next to impossible to get a loan as bank lending standards have soared for everything from C&I loans, to mortgages, to consumer loans.

Now, in the latest indication that banks are bracing for even more default pain, this time stemming from what even before the coronavirus crisis was the next subprime disaster-in-waiting, namely auto loans.  According to CNBC, Wells Fargo is hitting the brakes on its auto loan business, until recently a major source of revenue for the company.

The bank, one of the biggest lenders for new and used car purchases in the U.S., sent letters to hundreds of independent auto dealerships last month telling them that the San Francisco-based company was dropping them as a customer, according to people with knowledge of the situation.

Wells Fargo confirmed that the bank, which only makes auto loans through car dealerships, will no longer accept loan applications from most independent shops which typically sell used cars, unlike franchise dealerships that focus on new vehicles from specific manufacturers.

The bank had “an obligation to review our business practices in light of the economic uncertainty presented by COVID-19 and have let the majority of our independent dealer customers know that we will suspend accepting applications from them,” Natalie Brown, the spokeswoman, told CNBC. “The independent dealers we will continue doing business with are those with deep, long-standing relationships with Wells Fargo.”

The move comes just as prices of used cars, which has crashed in late March and early April, had staged a modest rebound. However, with the fleet of 500,000 Hertz rental cars hitting the liquidation block after the company’s bankruptcy, and expect to send used-car prices plunging even more in the coming weeks, it’s not difficult to see why Wells is suddenly getting out of Dodge.

The move also follows Wells Fargo’s retrenchment from the mortgage market as the coronavirus pandemic took hold in the U.S. The bank is operating under a dozen consent orders tied to its 2016 fake accounts scandal, and one of those orders, from the Federal Reserve, limits the bank’s ability to grow its balance sheet until it fixes compliance shortcomings.

Yet the latest move was more related to concern about the credit quality of loans made by independent dealerships rather than the asset cap, a source told CNBC. This means that just like JPMorgan, Wells is now confident that the ‘credit quality’ of US consumers is about to disintegrate, resulting in a flood of defaults, and is trying to quietly eliminate all new loan exposure.

As we had reported previously, before the pandemic took hold, Wells Fargo had actually been growing its auto lending business. The company revamped the unit in 2018 after paying a $1 billion fine to the Consumer Financial Protection Bureau for fraudulently selling customers unnecessary auto insurance.

Since then, the company has steadily expanded the auto loans it held to $48.6 billion at the end of March, the bank’s second biggest category of consumer loans after mortgages. Auto loan origination climbed 19% in the first quarter to $6.5 billion, “reflecting our renewed emphasis on growing auto loans following the restructuring” of that business, the bank said in April. Needless to say, Wells wouldn’t shut off one of its most profitable revenue streams if it didn’t think that the coming losses would drown any possible upside from continued market penetration.

The silver lining is that – for now – the credit crunch focuses on a modest portion of Wells’ overall auto loan business. Independent shops, which as noted above focus on used cars, make up less than 10% of the 11,000 dealers Wells Fargo uses to sell auto loans, according to the person with knowledge of bank operations. However, it is only a matter of time before new car dealerships are swept up by the bank’s boycott of new loans.

Similarly to JPM, Wells Fargo has also been stepping back from parts of the mortgage market since the pandemic began this year. The bank told mortgage personnel that it was “temporarily” halting all new home equity lines of credit after April 30.

When analysts asked CFO John Shrewsberry in April why the bank was pulling back from the market, he said it was “one of the levers that we’re using to manage living under the asset cap” rather than concern about loan defaults.

As today’s action confirms, the CEO was simply lying, and here’s why.

END

Shocking Evidence Suggests Coordinated Effort To Orchestrate An Uprising Inside The United States

Authored by Michael Snyder via TheMostImportantNews.com,

Violence has erupted in major cities all over America yet again today, and we are being told to brace ourselves for more rioting, looting and civil unrest in the days ahead.  The death of George Floyd was a great tragedy, and the vast majority of Americans agree that we do not want to see that sort of police brutality in our nation, and so this should actually be a moment that brings our country together.  But instead, America is being torn apart.  The protests against police brutality have been hijacked by sinister forces, and they are attempting to channel the outrage over George Floyd’s death in a very violent direction.  As you will see below, law enforcement authorities all over the U.S. are telling us that they have identified a highly organized effort to orchestrate violence, and this appears to be happening on a nationwide basis.

Let’s start by looking at what is happening in New York.  According to the top terrorism official in the entire city, “certain anarchist groups”  were making preparations for “violent interactions with police” before protests in the city even began…

Recommended Videos

Unrest over George Floyd killing: ‘Is this the end of the American dream?’

Pause

On Sunday night, New York’s top terrorism cop, Deputy Commissioner for Intelligence and Counterterrorism John Miller, detailed his office’s analysis and investigation into why the New York City protests have become so violent and damaging at times.

“No. 1, before the protests began,” Miller said, “organizers of certain anarchist groups set out to raise bail money and people who would be responsible to be raising bail money, they set out to recruit medics and medical teams with gear to deploy in anticipation of violent interactions with police.”

And once the protests started, these groups used “a complex network of bicycle scouts” to direct rioters to locations where police officers would not be present…

“And they developed a complex network of bicycle scouts to move ahead of demonstrators in different directions of where police were and where police were not for purposes of being able to direct groups from the larger group to places where they could commit acts of vandalism including the torching of police vehicles and Molotov cocktails where they thought officers would not be.”

These are not just mindless angry mobs.  They are being directed with a purpose, and that is very alarming.

In Chicago, Mayor Lori Lightfoot has publicly acknowledged that there has been “an organized effort” to turn the protests over George Floyd’s death “into something violent” in her city…

Speaking at an afternoon news conference today with other officials, Lightfoot didn’t say whether the groups are out-of-state left-wing anti-fascist organizations generally known as Antifa, right-wing agitators, local street gangs or something else. She said she’s asked three federal agencies—the FBI, the Bureau of Alcohol Tobacco Firearms & Explosives and the U.S. Attorney’s office—for help, with a focus on AFT’s bomb and arson unit.

“There is no doubt. This was an organized effort last night,”she said. “There were clearly efforts to subvert the peaceful process and make it into something violent.”

Lightfoot did not really elaborate on why she believes there has been “an organized effort”, but officials in other cities have been willing to give the public more specifics.

For example, law enforcement authorities in Minnesota have discovered “several caches of flammable materials” that were obviously intended to be used for rioting…

Earlier Sunday, state officials said several caches of flammable materials were found both in neighborhoods where there have already been fires and “in cars we’ve stopped as recently as this morning,” said John Harrington, state public safety commissioner. Some of the caches look like they may have been planted days ago and some only in the last 24 hours or so, he said.

Police are also finding stolen vehicles with plates removed that are being used to transport the flammable materials. Looted goods and weapons also have been found in the stolen cars, he said.

And in several other cities around the nation, law enforcement authorities have found bricks staged at or near protest sites.

On Sunday, police in Kansas City announced that they had found “stashes of bricks and rocks in & around the Plaza and Westport to be used during a riot”

Kansas City police officers found bricks and rocks staged near protest sites around the city, stoking concerns that individuals or groups had pre-planned looting and destruction that hit the city over the weekend, the department said Sunday.

“We have learned of & discovered stashes of bricks and rocks in & around the Plaza and Westport to be used during a riot,” the department said in a tweet on Sunday.

And in Baltimore, law enforcement officials were racing to dismantle “mounds of bricks and bottles” that had been staged in downtown Baltimore…

According to sources, mounds of bricks and bottles have been found in Downtown Baltimore.

Baltimore Police confirmed they are working with law enforcement partners to sweep the area.

There are several demonstrations planned for Monday evening. Sources told Fox 45 officers are being briefed on the situation during roll call.

In New York, a “cache of bricks” just happened to be sitting directly in the path of rioters on Sunday evening…

Similarly, in New York City, video captured the moment rioters in Manhattan chanced upon a cache of bricks between St. Marks Place and Seventh Street in the East Village on Sunday evening, though no construction site appeared to be nearby.

Even down in Texas, “a large pile of bricks” was stacked up in front of the courthouse in Dallas and huge stacks of bricks were pre-staged right along a path that protesters would be taking in Frisco.

I don’t know about you, but I have a very hard time believing that all of this is just a giant coincidence.

The fact that huge piles of pre-staged bricks are suddenly showing up at protest locations all over America indicates a level of planning and coordination at a very high level.

Obviously we are dealing with something that is far more complex than just a few thousand angry people letting off some steam.

With the U.S. economy in deep disarray and with a presidential election coming up in November, anger and frustration are likely to remain at very high levels in the U.S. throughout the summer, and that will give those that are organizing these efforts more opportunities to promote violence.

Needless to say, the lawlessness that we are witnessing in the streets of our major cities is greatly alarming millions of ordinary Americans, and gun sales are going through the roof

Gun sales surged in May as shops reported an uptick in interest and demand as the coronavirus pandemic continued and amid national protests after the Memorial Day killing of George Floyd.

“Almost, you couldn’t even keep up with it – that’s how crazy it was,” said Joe Hawk, owner of Guns & Roses in New Jersey. “After Memorial Day, it spiked again – it just went crazy again.”

Small Arms Analytics & Forecasting, a private research firm, estimated that there were more than 1.7 million gun sales in May – an 80% jump from May 2019.

The thin veneer of civilization that we all take for granted on a daily basis is disappearing, and a lot of people believe that a lot more civil unrest is ahead.

Our nation is more deeply divided than it has ever been in my entire lifetime, and that is not likely to change any time soon.

So I would very much encourage you to do whatever you need to do to get yourself and your family prepared for what is coming, because America appears to be on the precipice of complete and utter chaos.

END

Minnesota To Test All 7,000 National Guardsmen Deployed To Quell Riots As First Tests Positive

Offering a preview of what’s likely coming down the pipe over the next few weeks, a local TV station just reported that a member of the Minnesota National Guard who was deployed to clash with rioters and looters over the weekend has tested positive for COVID-19 – likely the first of many.

Theo Keith

@TheoKeith

NEWS: Fewer than 10 Minnesota National Guard members are quarantined after having upper respiratory symptoms, deputy state surgeon Dean Stulz says.

One coronavirus test has come back positive.

All 7,000+ activated
Guard members will be tested after activation orders end.

Several others are reportedly exhibiting symptoms (remember, Floyd was killed 8 days ago and in Minneapolis, demonstrations have been ongoing since the day after his death).

Given that protests and marches, like the demonstration in Madrid commemorating International Women’s Day, have already been blamed for helping to spread the virus earlier during the pandemic, health experts are worried that a second wave of COVID-19 infections could be sparked by the mass gatherings, ABC News reports.

“What we have here is a very unfortunate experiment going on with COVID virus transmission,” said Michael Osterholm, director of the Center for Infectious Disease Research and Policy at the University of Minnesota.

Risks are even higher when factoring in the more than 5,500 who have been arrested, according to the latest AP tally. Jails are typically crowded, poorly ventilated, indoor spaces, and what’s more, some protesters sat in vehicles at close range for an extended period of time, which increases the risk for onward transmission of the virus, Osterholm explained.

Although there’s lower risk for the virus to be spread outdoors, especially in a moving crowd, the use of tear gas and pepper spray, along with the protesters who lit cars and buildings on fire,  could cause coughing, which can help aerosolize the virus, Osterholm added,  increasing the risk that it will spread.

Even the ostensibly healthy can be carriers of COVID-19.

“If people say ‘well, these are healthy folks,’ we know that at least a third of COVID patients are asymptomatic according to the CDC,” added Dr. William Schaffner, medical director of the National Foundation for Infectious Diseases.

During a press briefing on Monday, NYC Mayor Bill de Blasio insisted that “we don’t want people out there where they might catch this disease or spread this disease…[t]here’s no question there’s a danger [that] this could intensify the spread of the coronavirus just at a point when we were starting to beat it back profoundly.”

We imagine more governors will approve plans to start testing all national guard members mobilized to combat the looting and riots.

END
Looks like this takeover will not happen;  LVMH is to decide shortly on whether to continue with the takeover
(zero hedge)

Tiffany Plunges On Report LVMH Takeover “Uncertain”

In what may be the highest profile failed M&A deal to emerge from the coronacrisis, moments ago Women’s Wear Daily reported that the LVMH’s $16.2 billion takeover of jewelry icon Tiffany appears “uncertain”, adding that LVMH has called a meeting in Paris to discuss the deal.

From the report:

According to sources, members of the board of LVMH Moët Hennessy Louis Vuitton called a meeting in Paris Tuesday night specifically to discuss the matter amid a deteriorating situation in the U.S. market, Tiffany’s largest.

It is understood board members of the luxury giant are concerned about the impact of not only the coronavirus pandemic, which has claimed more than 100,000 lives in America and wreaked widespread economic damage, but also the growing social unrest over the death of George Floyd at the hands of Minneapolis police.

LVMH board members also voiced concerns about Tiffany’s ability to cover all its debt covenants at the end of the transaction, which was expected to be concluded mid-year.

While no firm decision was made at Tuesday’s meeting, “attendees sent a clear message that the acquisition should be reconsidered”, according to WWD.

TIF stock plunged 15% on the report before recovering some losses.

Will TIF be the latest blown M&A arb, and how many hedge funds that were still long the stock are about to have a catastrophic start to the month of June?

end

iv) Swamp commentaries)

 

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

China Halts Some U.S. Farm Imports, Threatening Trade Deal

https://www.bloomberg.com/news/articles/2020-06-01/china-halts-some-u-s-farm-imports-threatening-trade-deal

Franchisees of iconic American chains are ‘hemorrhaging’ sales, as operators of IHOP, Pizza Hut, and more file for bankruptcy – McDonald’s internally warned franchisees that they may have to downsize or sell locations… [This is before the riots.]   https://www.msn.com/en-us/foodanddrink/restaurantsandnews/franchisees-of-iconic-american-chains-are-hemorrhaging-sales-as-operators-of-ihop-pizza-hut-and-more-file-for-bankruptcy/ar-BB14QeJf

This Port Authority cop makes more than the president

The agency’s highest-paid employee was Regina Womack, a PAPD sergeant who took home $423,467  — after pulling down $259,717 in OT on top of her base pay of $131,843…

https://nypost.com/2020/05/30/this-port-authority-cop-makes-more-than-the-president/

 

Why should Americans bail out state and local politicians’ supremely-paid patronage armies?

From a client: A list of the buildings damaged, looted in Minneapolis and St. Paul

https://bringmethenews.com/minnesota-news/a-list-of-the-buildings-damaged-looted-in-minneapolis-and-st-paul

 

OAN’s @jennfranconews: An independent autopsy commissioned for George Floyd’s family finds that he died of asphyxiation due to neck and back compression.

Well that is all for today

@jlepolastewart: Baltimore police have found mounds of bricks and bottles with potential accelerators in them. Police are currently sweeping the downtown area. There are demonstrations planned for today.

@johncardillo: If these riots come to the suburbs everything changes. Nothing motivates a politician more than angry donors

President Trump last night: “My first and highest duty…is to defend tour great country and the American people… All Americans were rightly sickened and revolted by the brutal death of George Floyd… Justice will be served; he will not have died in vane… The biggest victims of the rioting are peace-loving citizens in our poorest communities.  As there president I will fight to keep them safe… I am your president of law and order…  Our nation has been gripped by professional anarchists, violent mobs, looters, arsonists… Antifa and others.  A number of states and local governments have failed to take necessary actions to safeguard their residents… Innocent people have been savagely beaten… small business owners have seen their dreams utterly destroyed… New York’s finest have been hit in the face with bricks… A federal officer in California, an African American enforcement hero, was shot and killed… I am mobilizing all available federal resources, civilian and military, to stop the rioting and looting, to end the destruction and arson and to protect the rights of law-abiding Americans, including your 2nd Amendment rights.  Therefore the following measures are going into effect immediately.  First, we are ending the riots and lawlessness… I have strongly recommended to every governor to deploy the National Guard in sufficient numbers that we dominate the streets.  Mayors and governors must establishment an overwhelming law enforcement presence until the violence has been quelled.  If a city or state refuses to take the actions necessary to defend the life and property of their residents, I will deploy the Unites States military and quickly solve the problem for themWhat happened in the city [DC] last night was a total disgrace…I am dispatching thousands and thousands of heavily armed soldiers, military personal and le personal to stop the rioting… and the wanton destruction of property… Our seven o’clock curfew will be strictly enforced…America is founded on the rule of law… Where there is no safety there is no future… I take these actions today with firm resolve and a passionate love for our country…  https://twitter.com/realDonaldTrump/status/1267609190140436481

After the speech, DJT, with Bible in hand and accompanied by AG Barr and Secret Service agents, walked to Lafayette Park, the epicenter of Sunday’s rioting.  He visited St. John’s Church, which was torched on Sunday night.  Dems and the MSM were apoplectic after Trump’s law and order speech.

DailyCaller: Tucker Carlson rips into President Trump’s senior adviser Jared Kushner: “The president’s famously sharp instincts, the ones that won him the presidency almost four years, have been since subverted at every level by Jared Kushner.”   https://twitter.com/DailyCaller/status/1267618278991675393

CFD Responds to Dozens [80] of Blazes, More than the 1968 Chicago Riots [36]

https://chicago.cbslocal.com/2020/06/01/cfd-responds-to-dozens-of-blazes-more-than-the-1968-chicago-riots/

Family autopsy: Floyd asphyxiated by sustained pressure – the compression cut off blood to Floyd’s brain, and weight on his back made it hard to breathe… [This is the cause that we opined.]

https://apnews.com/d41cdf6cefbb3e5603a28e6dc07f9589

Celebrity statements on racial matters appeared in abundance on Monday.  Most were trite and smarmy. However, Patrick Mahomes penned the most genuine statement that we read.

Mahomes: “As a kid who was born with a black dad and a white mom, I have been blessed to be accepted for who I am my entire life, but that is not the case for everyone.  The senseless murders that we have witnessed are wrong and cannot continue in our country… All I can think about is how I grew up in a locker room where people from every race, every background and every community came together and became brothers to accomplish a single goal… I hope that our country can learn from the injustices that we have witnessed to become more like the locker room where everyone is accepted. We all need to treat each other like brothers and sisters, and become something better…”

https://www.foxnews.com/sports/patrick-mahomes-george-floyd-death-response

President Obama issued a poignant piece.

How to Make this Moment the Turning Point for Real Change

First, the waves of protests across the country represent a genuine and legitimate frustration over a decades-long failure to reform police practices and the broader criminal justice system in the United States… On the other hand, the small minority of folks who’ve resorted to violence in various forms… are putting innocent people at risk, compounding the destruction of neighborhoods that are often already short on services and investment and detracting from the larger cause. I saw an elderly black woman being interviewed today in tears because the only grocery store in her neighborhood had been trashed. If history is any guide, that store may take years to come back. So let’s not excuse violence, or rationalize it, or participate in it. If we want our criminal justice system, and American society at large, to operate on a higher ethical code, then we have to model that code ourselves…

    But the elected officials who matter most in reforming police departments and the criminal justice system work at the state and local levels

https://medium.com/@BarackObama/how-to-make-this-moment-the-turning-point-for-real-change-9fa209806067

Civil rights atty @TheLeoTerrell: Have you noticed how many white looters there are? This is Antifa and they are setting back black America by decades. democrats where is your outrage??

As a point of politics, not an issue of right or wrong, the more that celebrities & the MSM moralize to the working class, which includes blacks, Latinos and Asians, the better the politics become for Trump.  This is how he became president.  Flyover America and the working class elected him.  Just as whites don’t have blacks’ life experiences; rich celebrities don’t live the working class experience and its burdens.

@bennyjohnson: White ANTIFA terrorist cowards hand out bricks to black rioters.  A furious black woman throws the bricks back at them.  “A white b*tch giving a group of black men a brick? Are you stupid? That shit can get them killed!” ANTIFA is racist.  https://twitter.com/bennyjohnson/status/1267470243758301184

Owner of Gutted Minneapolis Shopping Mall Tells Governor and Mayor: ‘People Will Uprise Over This’ – “What I want to tell people right now is that if the governor and the mayor are not going to take care of this problem — people will. People will uprise over this,”… Those people living, [who] make their business there: they’re Korean, they’re black people, they’re immigrants. They’ve worked their f***ing lives off trying to make this thing happen.” He said the looters have “taken their lives away from them.”…   https://dailycaller.com/2020/05/30/owner-gutted-minneapolis-shopping-mall-governor-mayor-people-uprise-riots-looting/

Police Chief Breaks Down after Describing How Richmond Leftist Rioters Torched Home with Children inside Then Blocked Fire   https://www.thegatewaypundit.com/2020/06/pure-evil-police-chief-breaks-describing-richmond-leftist-rioters-torched-home-children-inside-blocked-fire-department-video/

[Berkley journalist] Zaid Jilani says US cities with riots will see ‘bad outcomes for years to come’

https://www.msn.com/en-us/news/politics/zaid-jilani-says-us-cities-with-riots-will-see-bad-outcomes-for-years-to-come/ar-BB14TfcY

On Tucker Carlson last night, Jilani noted that 96% of Americans wanted the officer that knelt on George Floyd’s neck to be arrest.  So, America is united on this issue.  He also noted that a past poll showed that only 4% of African Americans believe that riots help a cause.

While numerous black leaders and citizens have excoriated the rioters and violence, politicians of both parties have remained mostly silent.  They are conditioned to believe that blacks are monolithic and have predominately the same view on law and order.  There growing schism in the black community over riots and property destruction will be a big factor in coming elections.

@Breaking911: Minneapolis Police: ‘Water bottles filled with gasoline have been found hidden in bushes and throughout neighborhoods in Minneapolis

NYPD’s Terrorism Official Says Unnamed Groups Planned Protest Violence in Advance

These unnamed groups had organized scouts, medics, and supply routes of rocks, bottles and accelerants for breakaway groups to commit vandalism and violence. There are strong indicators they planned for violence in advance using at times encrypted communications, he said…

https://www.nbcnewyork.com/news/local/nypds-terrorism-chief-says-unnamed-groups-planned-protest-violence-in-advance/2440722/

@BoxingKingdom14: All-time great UFC fighter Jon Jones taking spray cans off protestors [3 scrawny young punks in Antifa garb meekly submitted.] https://twitter.com/BoxingKingdom14/status/1267428907386429440

@MrAndyNgo: Antifa are organized in multiple units. Scouts monitor perimeter of an area & provide live audio/text updates. There are street medics, who are trained to get injured comrades out. And there are those who carry out violence w/weapons & firebombs. They use Signal to communicate.

   Antifa are “horizontally” organized, meaning, they don’t have figureheads or leaders. It’s part of their ideology that there should be no authority or state. Mistake to then assume this means they have no organization. It’s a different type of organizing media isn’t used to.

   And all the other protesters/looters/opportunists? They are just human shields for antifa. When police try to make arrests or disperse the mob, these people are usually injured first.  Footage of those injuries (e.g. women, children, black people) are then massively amplified by sympathetic media. This leads to politicians pressuring police to withdraw or scale back response. Who benefits? Antifa

@phillygodfather: The head of Philadelphia ANTIFA has been arrested by the FBI.

What if the Department of Justice finds Antifa had support from some MSM types and Congress people?

Trump unloads on governors over George Floyd protests: ‘Most of you are weak’

“You’ve got to arrest people, you have to track people, you have to put them in jail for 10 years and you’ll never see this stuff again,” Trump said, according to reports…“You have to dominate, if you don’t dominate you’re wasting your time. They’re going to run over you, you’re going to look like a bunch of jerks,” Trump said to the governors, according to audio of the call obtained by CBS News…

https://www.cnbc.com/2020/06/01/trump-unloads-on-governors-over-george-floyd-protests-most-of-you-are-weak.html

Trump, Barr tell governors to ‘dominate’ streets in response to unrest

Trump put blame for the unrest squarely on ‘the radical left.’

    “You have to dominate, if you don’t dominate you’re wasting your time,” Trump said, according to a recording of the call obtained by ABC News. “They’re gonna run over you, you’re gonna look like a bunch of jerks. You have to dominate.”  “You have to know what you’re dealing with,” the president told the nation’s governors. “And it’s happened before, this happened numerous times and the only time it’s successful is when you’re weak and most of you are weak.”…

     The president also said governors were slow to call on the National Guard. “Why you’re not calling them up I don’t know — but you making a mistake and making yourselves look like fools.” “These are terrorists,” President Trump said of the protesters. “Antifa and the radical left.”…

https://abcnews.go.com/Politics/trump-barr-governors-dominate-streets-response-unrest/story

@realDonaldTrump: Sleepy Joe Biden’s people are so Radical Left that they are working to get the Anarchists out of jail, and probably more. Joe doesn’t know anything about it, he is clueless, but they will be the real power, not Joe. They will be calling the shots! Big tax increases for all, Plus!

De Blasio calls for firing of NYPD cop who pulled gun on protesters https://trib.al/N2tGxaz

NYPD sergeants’ union tweets Chiara de Blasio’s full arrest report

“How can the NYPD protect the city of NY from rioting anarchist when the Mayors object throwing daughter is one of them. Now we know why he is forbidding Mounted units to be mobilized and keeping the NYPD from doing their jobs,” read the SBA tweet…

https://nypost.com/2020/06/01/nypd-sergeants-union-tweets-out-chiara-de-blasios-arrest-report/

De Blasio Says He’s ‘Proud’ of Daughter’s Arrest, ‘Admires’ She Was ‘Out There Doing Something’   https://hannity.com/media-room/watch-de-blasio-says-hes-proud-of-daughters-arrest-admires-she-was-out-there-doing-something/

Disaster proclamation issued for Cook CountyGovernor Pritzker issued a disaster proclamation for Cook County to help the city of Chicago keep people safe.

https://www.101wkqx.com/2020/05/31/disaster-proclamation-issued-for-cook-county/

University of Alabama Professor and Guggenheim Fellow Posts Instructions on Twitter on How to Topple Government Monuments – Sarah Parcak posted instructions this past weekend on how to rip down and destroy government monuments.  She felt this was her civic duty…

https://www.thegatewaypundit.com/2020/06/university-alabama-professor-guggenheim-fellow-posts-instructions-twitter-topple-national-monuments/

@marklevinshow: 1There’s an insurrection taking place now.  Anarchy. The governors must send in the National Guard. The president must now lay the legal predicate for potentially sending in the regular military.  2. All leaders of Antifa must be rounded up ASAP.  The citizens in these communities are being terrorized by violent mobs.  It’s also now a national security issue.

Last used during the Rodney King riots in 1992, the Insurrection Act of 1807 governs the ability of the President of The United States to deploy military troops within the United States to put down lawlessness, insurrection, and rebellion…  https://youngconservative.net/2020/05/31/insurrection-act-of-1807-in-effect/

On Sunday night, rioters set fires at multiple locations near the White House, including the historic St. John’s Episcopal Church in Lafayette Square.  It was erected in 1816.  Every US President since Madison worshipped in the church. It was the last church that Lincoln attended.

@PMBreakingNews: The AFL-CIO building in Washington, D.C., has been set on fire by rioters. The AFL-CIO is the largest federation of unions in the United States

@LeighTauss: “I will not put an officer in harm’s way to protect the property inside of a building,” says the Raleigh Police Chief. [Isn’t that why police exist?]   https://twitter.com/LeighTauss/status/1267112477390712834

    @DineshDSouza: Translation: The government will no longer protect your property. You have to do it yourself

Prominent psychologist and author @sbkaufman: Just called the police [Santa Monica, CA] because there was just a dangerous standoff between my neighbor and some protestors and got the response: “Sir, the city is under attack. Do what you have to do. And they hung up. Did that really just happen?

@BillFOXLA: Armed business owners are now stationed outside and on top their properties in Santa Monica. They are taking their protection into their own hands nowhttps://twitter.com/BillFOXLA/status/1267289308756504576

@DigitalForests: Citizens in Bellevue (Seattle suburb) are protecting their neighborhoods from rioters & looters.  https://twitter.com/DigitalForests/status/1267277113524133888

Because law order has broken down and police forces are stretched too thin or are being ordered to stand down by craven politicians, citizens will form groups, even militias, for protection – like humans did when they were living in caves.

   

@ArthurSchwartz: Biden just said that he called for a nationwide lockdown back in January to slow down the spread of COVID. That’s a lie, and it’s not the first time that he has told that same lie. [Everyone knows it’s a lie.  But will the MSM call him on it?]

Joe’s handlers let him out on Monday – and Joe made them pay for the blunder.

CBS’s @BoKnowsNews: @JoeBiden says in first 100 days of his administration he will set up police oversight board… Biden said “there are a lot of different things that can change” about police training. One example he said was if cops rushed by unarmed person, they could “shoot them in the leg instead of the heart is a very different thing.” [The most upset people with the remark were Dems.]

Rod Rosenstein is working with NSO Group, the Israeli firm accused of spying on dissidents https://cyberscoop.com/rod-rosenstein-nso-group-whatsapp/

END

I will see you WEDNESDAY night.

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