JUNE 15//RAID ON GOLD AND SILVER REBUFFED: GOLD STILL DOWN $8.00//SILVER DOWN 14 CENTS//162 TONNES OF GOLD STANDING AT THE COMEX//CORONAVIRUS UPDATE//24 HOUR FITNESS GROUP GOES INTO BANKRUPTCY//FED REHASHES OLD NEWS TO JUMP START THE MARKETS//SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1721.60  DOWN $8.00   The quote is London spot price

 

 

 

 

 

Silver:$17.30  DOWN 14 CENTS//LONDON SPOT PRICE

 

Closing access prices:  London spot

 

 

 

i)Gold : $1725.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.38//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

AUG GOLD:  $1726.90  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE AUGUST: $+4.80

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $17.42//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      12 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:   73/151

issued  74

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,729.300000000 USD
INTENT DATE: 06/12/2020 DELIVERY DATE: 06/16/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 2
072 H GOLDMAN 10
118 H MACQUARIE FUT 58
190 H BMO CAPITAL 2
355 C CREDIT SUISSE 1
357 C WEDBUSH 15
624 C BOFA SECURITIES 3
657 C MORGAN STANLEY 11
657 H MORGAN STANLEY 38
661 C JP MORGAN 74 73
661 H JP MORGAN 7
690 C ABN AMRO 1
737 C ADVANTAGE 1
800 C MAREX SPEC 3 3
____________________________________________________________________________________________

TOTAL: 151 151
MONTH TO DATE: 50,416

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 151 NOTICE(S) FOR 1510000 OZ ( 0.4696 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  50,416 NOTICES FOR 5,041,600 OZ  (156.82 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

5 NOTICE(S) FILED TODAY FOR  25,000  OZ/

total number of notices filed so far this month: 418 for 2,090,000 oz

 

BITCOIN MORNING QUOTE  $9132 DOWN $212

 

BITCOIN AFTERNOON QUOTE.: $9403 UP 63

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $8.80 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

NO CHANGES IN GOLD INVENTORY AT THE GLD//

RESTS TONIGHT AT

GLD: 1,136.22 TONNES OF GOLD//

 

WITH SILVER DOWN A HUGE 14 CENTS TODAY: AND WITH NO SILVER AROUND

NO CHANGES IN SILVER INVENTORY AT THE SLV..

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 481.982  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A HUGE SIZED 2987 CONTRACTSFROM 178,901 DOWN TO 175,914 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED LOSS IN  OI OCCURRED WITH OUR CONSIDERABLE 30 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A FAIR EXCHANGE FOR PHYSICAL ISSUANCE, SOME LONG LIQUIDATION, ACCOMPANYING  A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET LOSS IN OUR TWO EXCHANGES OF 2474 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 FAIR SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 410  AND SEPT 103 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  513 CONTRACTS. WITH THE TRANSFER OF 513 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 513 EFP CONTRACTS TRANSLATES INTO 2.565 MILLION OZ  ACCOMPANYING:

1.THE 30 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.145  MILLION OF INITIALLY STANDING FOR JUNE

 

FRIDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 30 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE SOMEWHAT SUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS FROM THEIR POSITIONS. THE CONSIDERABLE LOSS AT THE COMEX WAS ACCOMPANIED BY : i)  A FAIR ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN SILVER OZ STANDING  CONSIDERABLE BANKER SHORT COVERING  AND 4) SOME LONG LIQUIDATION AS  WE DID HAVE A STRONG  NET LOSS OF 2474 CONTRACTS OR 11.37 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:

5453 CONTRACTS (FOR 12 TRADING DAY(S) TOTAL 5453 CONTRACTS) OR 27.2700 MILLION OZ: (AVERAGE PER DAY: 454 CONTRACTS OR 2.272 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 27.2700 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 3.89% 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:          1,093.30 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                   27.270 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 A LARGE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2987, WITH OUR 30 CENT LOSS IN SILVER PRICING AT THE COMEX ///FRIDAY THE CME NOTIFIED US THAT WE HAD A FAIR SIZED EFP ISSUANCE OF 513 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE LOST A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  2474 CONTRACTS (WITH OUR 30 CENT LOSS IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 513 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A LARGE SIZED DECREASE OF 2987 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 30 CENT LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.44 // FRIDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.846 BILLION OZ TO BE EXACT or 121% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JUNE  DELIVERY MONTH/ THEY FILED AT THE COMEX: 5NOTICE(S) FOR 25,000 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: 2.145 MILLION OZ//
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A SMALL 1119 CONTRACTS TO 485,517 AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE CONSIDERABLE SIZED GAIN OF COMEX OI OCCURRED WITH OUR SMALL LOSS IN PRICE  OF $1.00 /// COMEX GOLD TRADING// FRIDAY// WE  HAD STRONG BANKER SHORT  COVERING, ANOTHER HUMONGOUS SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR SMALL LOSS IN PRICE OF $100 .

 

WE HAD A VOLUME OF 10    4 -GC CONTRACTS//OPEN INTEREST  16

 

WE GAINED A GOOD SIZED 2859 CONTRACTS  (8.89 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 1740 CONTRACTS:

CONTRACT  JUNE 0.; AUG 1640 AND DEC: 100  ALL OTHER MONTHS ZERO//TOTAL: 1740.  The NEW COMEX OI for the gold complex rests at 485.939. 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 GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2859 CONTRACTS: 1119 CONTRACTS INCREASED AT THE COMEX AND 1740 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2859 CONTRACTS OR 10.20 TONNES. FRIDAY, WE HAD A SMALL LOSS OF $1.00 IN GOLD TRADING……

AND WITH THAT LOSSIN  PRICE, WE HAD A GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 8.89 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 FELL $1.00).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (1740) ACCOMPANYING THE GOOD SIZED GAIN IN COMEX OI  (1119 OI): TOTAL GAIN IN THE TWO EXCHANGES:  2859 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)ANOTHER HUMONGOUS INCREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH,  3) ZERO LONG LIQUIDATION; 4) CONSIDERABLE COMEX OI GAIN.. AND  …ALL OF THIS WAS COUPLED WITH OUR SMALL LOSS IN GOLD PRICE TRADING//FRIDAY//$1.00.

 

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.

THE FACT THAT WE ARE CONTINUALLY SEEING A DROP IN COMEX OPEN INTEREST AND VOLUMES COUPLED WITH LESS EXCHANGE FOR PHYSICALS PROBABLY MEANS THAT OUR LONGS ARE ALREADY DEPARTING NEW YORK FOR THE NEW PHYSICAL PLATFORM AT LONDON’S LME.

 

 

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 : 29,342 CONTRACTS OR 2,934,200 oz OR 91.26 TONNES (12 TRADING DAY(S) AND THUS AVERAGING: 2445 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 12 TRADING DAY(S) IN  TONNES: 91.26 TONNES

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

THUS EFP TRANSFERS REPRESENTS 91.26/3550 x 100% TONNES =2.57% 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   2906.19  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:                     91.26 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, FELL BY A STRONG SIZED 2987 CONTRACTS FROM 178,901 DOWN TO 175,914 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 STRONG LOSS IN OI SILVER COMEX WAS DUE TO;   1) CONSIDERABLE BANKER SHORT COVERING , 2) A FAIR ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  4) SOME LONG LIQUIDATION 

 

EFP ISSUANCE 513 CONTRACTS

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

JULY: 410 CONTRACTS   AND SEPT: 103 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 513 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS  OF 2987  CONTRACTS TO THE 513 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG LOSS OF 2474 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 11.37 MILLION  OZ!!! OCCURRED WITH THE 30 CENT LOSS IN PRICE///

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 30 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A GOOD SIZED 513 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)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN 29.71 POINTS OR 1.02%  //Hang Sang CLOSED DOWN 524.43 POINTS OR 2.16%   /The Nikkei closed DOWN 774.53 POINTS OR 3.47%//Australia’s all ordinaires CLOSED DOWN 2.18%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0960 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0960 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0926 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A GOOD 1119 CONTRACTS TO 485,517 MOVING CLOSER TO  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS  GOOD  COMEX GAIN OCCURRED WITH OUR SMALL LOSS OF $1.00 IN GOLD PRICING /FRIDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (1740 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS INCREASE IN  GOLD OZ STANDING AT THE COMEX//JUNE DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 2859 CONTRACTS DESPITE GOLD’S SMALL LOSS IN PRICE. 

 

 

WE  HAD 10    4 -GC VOLUME//open interest RISES TO 16

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF JUNE..  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 1740 EFP CONTRACTS WERE ISSUED:  1640 FOR AUG AND 100 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1740 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 GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  2859 TOTAL CONTRACTS IN THAT 1740 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 1119 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A CONSIDERABLE  AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING THE GOOD COMEX OI GAIN,  ANOTHER HUMONGOUS INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A SMALL LOSS IN COMEX PRICE OF 1.00 DOLLAR..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $100)AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 8.89 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 2859 CONTRACTS OR 285,900 OZ OR 8.89 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:  485,517 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 48.55 MILLION OZ/32,150 OZ PER TONNE =  1510 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1510/2200 OR 68.63% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 116,498 contracts//extremely low//most traders have moved to london

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY160,493 contracts//  volume low 

 

 

JUNE 15 /2020

JUNE GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
15,867.475 oz
HSBC
Deposits to the Dealer Inventory in oz 96,453.000 oz

Brinks

3,000 kilobars

 

 

 

Deposits to the Customer Inventory, in oz  243,542.825

OZ

BRINKS

HSBC

LOOMIS

MALCA

 

includes

2600 kilobars

(HSBC)

and

1000

KILOBARS

(Loomis)

No of oz served (contracts) today
151 notice(s)
 15,100 OZ
(0.4696 TONNES)
No of oz to be served (notices)
1625 contracts
(162,500 oz)
5.053 TONNES
Total monthly oz gold served (contracts) so far this month
50,416 notices
5,041,600 OZ
156.82 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

i) Into the dealer Brinks:  96,453.000 oz  (3,000 kilobars)

DEALER WITHDRAWAL:

i) nil oz

 

 

total dealer withdrawals: nil oz

we had 4 deposits into the customer account

i) Into Brinks 60,186.672 oz

 

ii) Into Loomis: 32,150.000  (1000 kilobars)

iii) Into HSBC:  83,592.600 oz (2600 kilobars)

iv) Into Malca: 67,613.553  oz

 

 

 

 

 

 

total deposits: 243,542.825    oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of HSBC: 15,867.475 oz

 

total gold withdrawals;  15,867.475 oz

We had 3  kilobar transactions  +

 

 

 

 

ADJUSTMENTS: 2 //    

 

customer to dealer: Manfra

4340.385 oz adjusted customer to dealer

dealer to customer:

i) Int. Delaware:  289.359 oz

 

 

The front month of JUNE registered a total of 1776 oi contracts of a LOSS of 18 contracts.  We had 185 notices filed on FRIDAY so we gained A STRONG 167 contracts or an additional 16,700 oz of gold (0.5194 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 92 contracts DOWN to 3435 contracts.

Next comes August another strong delivery month and here the OI ROSE by 891  contracts UP to 338,964 contracts.

 

We had 151 notices filed today for 15100 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 74 notices were issued from their client or customer account. The total of all issuance by all participants equates to 151 contract(s) of which 10 notices were stopped (received) by j.P. Morgan dealer and 73 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 12 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 (50,416) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (1776 CONTRACTS ) minus the number of notices served upon today (151 x 100 oz per contract) equals 5,204,100 OZ OR 161.869 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 (50,416)x 100 oz + (1775 OI) for the front month minus the number of notices served upon today (151) x 100 oz which equals 5,204,100 oz standing OR 161.869 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 167 contracts or 16,700 oz will stand on this side of the pond.  Issuance of exchange for physicals is FAIR today…  It is still too costly for our crooked bankers to carry.

 

 

 

NEW PLEDGED GOLD:  BRINKS

 

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

322,656.68 oz PLEDGED  MARCH 2020  JPMORGAN:  10.036 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

 

477,821.587 oz pledged June 12/2020 Brinks/               14.865 tonnes

total pledged gold:  1,006,406.127 oz                             31.303 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 365.964 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 161.869 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  12,243,568.550 oz or 380.82 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  MAY 26.2020
e) pledged gold at int.Del.    19,290.600 oz  which cannot be settled:   (.600 tonnes)
f) pledged gold at Brinks:  21,026.754 oz which cannot be settled June 5 (.65402 tonnes)
g) pledged gold at Brinks: 456,794,87 oz added which cannot be settled:  14.208 tonnes
total brinks:  477,821.587 oz
total weight of pledged:  1006,406.127 oz or 31.303 tonnes
thus:
registered gold that can be used to settle upon: 11,765,747.0  (365.964 tonnes)
true registered gold  (total registered – pledged tonnes  11,765,740.0 (365.964 tonnes)
total eligible gold:  18,091,332.366 oz (563.59 tonnes)

total registered, pledged  and eligible (customer) gold;   30,334,900.916 oz 943.54 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  817.20 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 15/2020

And now for the wild silver comex results

Total COMEX silver OI FELL BY A STRONG SIZED 2987  CONTRACTS FROM 178,901 DOWN TO 175,914(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 LOSS TODAY OCCURRED WITH OUR 30 CENT FALL IN PRICING//FRIDAY. WE LOST A TOTAL OF 2393 CONTRACTS IN OUR TWO EXCHANGES.  THE LOSS IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN  SILVER OZ STANDING AT THE COMEX FOR THE JUNE DELIVERY MONTH, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) SOME LONG LIQUIDATION,5) STRONG COMEX LOSS IN OI, ….AND ALL OF THIS OCCURRED WITH OUR 30 CENT LOSS IN PRICE 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE

THE FRONT DELIVERY OF JUNE SAW 13 OPEN INTEREST CONTRACTS STANDING FOR A GAIN OF 2 CONTRACTS.  WE HAD 0 NOTICES SERVED UPON YESTERDAY SO WE GAINED 2 CONTRACT OR AN ADDITIONAL 10,000 OZ WILL  STAND IN THIS NON ACTIVE DELIVERY MONTH OF JUNE AS THEY REFUSED TO MORPHED INTO A LONDON BASED FORWARD.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI LOST 3777 CONTRACTS DOWN TO 82,533 CONTRACTS. AUGUST SAW ANOTHER GAIN OF 2 CONTRACTS TO 62 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 869 CONTRACTS UP TO 68,202

 

 

We, today, had  5 notice(s) FILED  for 25,000 OZ for the JUNE, 2020 COMEX contract for silver

 

JUNE 15/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
1,040,953.180 oz
CNT
DELAWARE
LOOMIS
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
5
CONTRACT(S)
(25,000 OZ)
No of oz to be served (notices)
8 contracts
 40,000 oz)
Total monthly oz silver served (contracts)  423 contracts

(2,115,000 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 0 deposits into the customer account

into JPMorgan:   0

ii)into everybody else: 0

 

 

 

 

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 51.19% of all official comex silver. (160.819 million/314.125 million

 

total customer deposits today: 0    oz

we had 4 withdrawals:

 

 

i) Out of  CNT: 98,830.944 oz

ii) Out of Delaware: 8002.200 oz

iii) Out of Loomis; 332,550.300 oz

iv) Out of Scotia: 600,568.740 oz

 

 

 

 

 

 

 

total withdrawals; 1040,953.180   oz

We had 0 adjustments

 

 

total dealer silver: 85.324 million

total dealer + customer silver:  314.125 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 5 contract(s) FOR 25,000, 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 423 x 5,000 oz = 2,115,,000 oz to which we add the difference between the open interest for the front month of JUNE.(13) and the number of notices served upon today 5 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 418 (notices served so far) x 5000 oz + OI for front month of JUNE (13)- number of notices served upon today 5) x 5000 oz of silver standing for the JUNE contract month.equals 2,155,000 oz.

We GAINED 2  contracts or an additional 10,000 oz will stand for delivery as they refused to morphed into London based forwards as well as negating a fiat bonus

 

TODAY’S ESTIMATED SILVER VOLUME: 43,002 CONTRACTS // volume fair/

 

 

FOR YESTERDAY: 71,654..,CONFIRMED VOLUME//volume good/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 71,654  CONTRACTS EQUATES to 358 million  OZ 51.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 1.07% ((JUNE 15/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.92% to NAV:   (JUNE 15/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1.07%

(courtesy Sprott/GATA

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

NAV 16.35 TRADING 16.21///NEGATIVE 0.87

END

 

 

And now the Gold inventory at the GLD/

JUNE 15/WITH GOLD DOWN ANOTHER $8.80 TODAY, NO CHANGES IN GOLD INVENTORY/INVENTORY RESTS AT 1136.22 TONNES

JUNE 12//WITH GOLD DOWN $1.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 1.17 TONNES AT THE GLD//INVENTORY RESTS AT 1136.22 TONNES

JUNE 11//WITH GOLD UP $16.80 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 6.55 TONNES AT THE GLD//INVENTORY RESTS AT 1135.05 TONNES

JUNE 10/WITH GOLD DOWN $.30 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 4.02 TONNES AT THE GLD/INVENTORY RESTS AT 1129.50 TONNES

JUNE 9//WITH GOLD UP $16.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A WITHDRAWAL OF 2.63 TONNES OF GOLD AT THE GLD//INVENTORY RESTS AT 1125.48 TONNES

JUNE 8//WITH GOLD UP $18.70 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A WITHDRAWAL OF 4.10 TONNES AT THE GLD//INVENTORY RESTS AT 1128.11 TONNES

 

JUNE 5//WITH GOLD DOWN $40.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A PAPER WITHDRAWAL OF 1.16 TONNES OUT OF THE GLD//INVENTORY RESTS AT 1132.21 TONNES

JUNE 4//WITH GOLD UP $20.60: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD…A DEPOSIT OF 4.09 TONNES INTO THE GLD//INVENTORY RESTS AT 1133.37 TONNES

JUNE 3//WITH GOLD DOWN $26.15//A SMALL CHANGE IN GOLD INVENTORY//A DEPOSIT OF 0.78 TONNES OF GLD INTO THE GLD//INVENTORY RESTS AT 1129.28 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Inventory rests tonight at

JUNE 15/ GLD INVENTORY 1136.22 tonnes*

LAST;  841 TRADING DAYS:   +192.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 741 TRADING DAYS://+367.52  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 15/WITH SILVER DOWN 14 CENTS NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 481.982  MILLION OZ///

JUNE 12/WITH SILVER DOWN 30 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: TWO DEPOSITS OF 7.269 MILLION OZ AND 1.802 MILLION OZ ADDED TO THE SLV///INVENTORY RESTS THIS WEEKEND AT 481.982 MILLION OZ//

JUNE 11//WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY: ///INVENTORY RESTS AT 472.89 MILLION OZ//

JUNE 10/WITH SILVER  UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 472.849 MILLION OZ//

JUNE 9/WITH SILVER DOWN 6 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.605 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 422.849 MILLION OZ//

JUNE 8/WITH SILVER UP 36 CENTS TODAY: TWO HUGE WITHDRAWALS OF 932,000 MILLION OZ AND 1.491 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 470.240 MILLION OZ//

JUNE 5/WITH SILVER DOWN 46 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 648,000 OZ FROM THE SLV////INVENTORY RESTS AT 472.663  MILLION OZ

JUNE 4//WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV.//INVENTORY RESTS AT 473.315 MILLION OZ//

 

JUNE 3//WITH SILVER DOWN 23 CENTS TODAY//NO CHANGES IN SILVER INVENTORY AT THE SLV//

INVENTORY RESTS AT 473.315 MILLION OZ//

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///

 

JUNE 15.2020:

SLV INVENTORY RESTS TONIGHT AT

481.982 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.61/ and libor 6 month duration 0.43

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

GOLD LENDING RATE: -2.18%

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
+ 2.13%

LIBOR FOR 12 MONTH DURATION: 0.59

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.54%

 

 

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

WESTERN DIGITAL GOLD MARKET IS BREAKING UP AS CHINA and ASIA ASSUME DOMINANCE

◆ Physical Gold Market Is Globalising As People and Institutions Globally but Particularly in Turkey, the Middle East, South East Asia, India, China Assume Dominance Over Banks in New York and London

◆ The London and New York fractional, unallocated bank gold trading and digital gold market is breaking up

◆ “This wasn’t peak fear. We are in the foothills of the global changes coming … ”

◆ “Global political and economic fragmentation is leading to a long-term increase in the demand for monetary and financial gold” from people and institutions in the Middle East and Asia.

◆ “Increased energy on the buy side, though, will not bring back the dominance of the traditional banks and families that were the previous masters of gold” such as the Rothchilds …

Full article by John Dizard in the Financial Times and GATA

 

NEWS and COMMENTARY

Gold slips as dollar firms despite second wave of coronavirus

Gold gains as dollar slips, new virus cases mount

Fed Warns of Significant Financial-Sector Vulnerabilities

Bond Traders Grasp Grim Reality of Economy’s Long Recovery Slog

Millions of Job Losses Are at Risk of Becoming Permanent

Chinese police have frozen several thousand accounts of Bitcoin traders

The American Press Is Destroying Itself

Dizard: The “gold market” is breaking up

Watch Interview Here

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

12-Jun-20  1735.85 1733.50, 1374.10 1378.13 & 1533.28 1534.15
11-Jun-20  1731.90 1738.25, 1361.79 1373.74 & 1519.57 1528.10

10-Jun-20  1717.65 1722.05, 1346.64 1350.26 & 1511.88 1515.23
09-Jun-20  1707.50 1713.50, 1350.46 1348.87 & 1515.41 1510.62
08-Jun-20  1692.00 1690.35, 1333.97 1331.32 & 1496.91 1494.61
05-Jun-20  1709.55 1683.45, 1353.79 1327.91 & 1510.22 1490.53
04-Jun-20  1706.45 1700.05, 1363.97 1353.58 & 1523.86 1507.77
03-Jun-20  1717.60 1705.35, 1364.80 1355.41 & 1531.41 1519.81
02-Jun-20  1740.25 1742.15, 1385.76 1386.58 & 1556.83 1556.44
01-Jun-20  1734.80 1730.60, 1398.77 1393.13 & 1559.76 1556.16
29-May-20 1725.65 1728.70, 1401.92 1399.73 & 1550.15 1554.97
28-May-20 1723.30 1717.35, 1403.28 1398.27 & 1564.93 1556.61
27-May-20 1705.15 1694.60, 1385.95 1382.12 & 1552.71 1541.92

 

Access Our Most Popular Guide, the Essential Guide to Storing Gold in Switzerland here

Receive Our Award Winning Market Updates In Your Inbox – Sign Up Here

Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

We have been highlighting this to you for several days:  gold trading has moved from New York to London

Jack Farchy/Bloomberg News/GATA)_

Banks have moved gold trading from New York to London, LBMA says

 Section: 

By Jack Farchy and Elena Mazneva
Bloomberg News
Friday, June 12, 2020

https://www.bloomberg.com/news/articles/2020-06-12/banks-have-moved-gold…

An extreme dislocation in the global gold market earlier this year spurred banks to shift some positions out of New York futures and into the London over-the-counter market, according to a leading figure in the industry.

Market participants’ changing behavior is reflected in gold trading volumes in the two hubs, said London Bullion Market Association Chief Executive Officer Ruth Crowell. The amount of gold traded in the U.K.’s capital surpassed the U.S. futures market in recent months, she said.

… 

The gold market, which is dominated by big banks like JPMorgan Chase & Co., HSBC Holdings, and UBS Group, was upended in late March as lockdowns grounded planes and closed refineries, leading traders to worry they wouldn’t be able to get gold to New York in time to deliver against futures contracts. That caused futures, which typically trade in lockstep with the London spot price, to soar to a premium of as much as $70 an ounce.

The dislocation inflicted painful losses on banks, which typically sell futures in New York as a hedge for their positions in the London OTC market. HSBC, for example, suffered mark-to-market losses of close to $200 million in one day, according to a regulatory filing.

“The scale of the dislocation has really made everyone ask questions in terms of the ongoing approach of hedging long London, short Comex,” Crowell said in a phone interview. “Certainly in the short to medium future, it’s not an even hedge. So they’re having to either go OTC, or they’re reducing their trading appetite.”

The London market, which the LBMA represents, has historically been the main hub for trading in spot gold. But volumes of swaps and forwards, which traders can use as a hedging mechanism instead of Comex futures, have increased recently, according to LBMA data. While the volumes remain below those in the futures market, they have risen to the highest relative level in records going back to November 2018.

Crowell pointed to a day of record trading volume in the London market on May 26 — when 67 million ounces of gold, worth $115 billion, changed hands — as evidence of some traders shifting positions into the London market.

If it is sustained, the shift risks undermining the popularity of the gold contract on New York’s Comex, which is owned by CME Group Inc. and is the world’s leading venue for trading precious-metals futures and options.

The gold contract is performing “as designed,” a spokesman for CME said by email. “We continue to work with market participants to evolve our offerings and continue to ensure our products deliver the most liquid, cost-effective, and transparent risk-management tools.

The U.S. exchange responded to the turbulence in March by launching a new contract that allows delivery of 400-ounce bars, the form traded in London, as well as the 100-ounce and kilobars allowed under the main futures contract. But the new contract has barely traded.

Crowell said that market participants were discussing issues with the Comex, including allowing delivery of gold in London, and she expected there could be an announcement from the U.S. exchange in the next month or so.

In the meantime, the LBMA is exploring ways to make the London market more efficient following the dislocation, she said. That could include reviewing price discovery for the spot price, which until now has often been derived from Comex.

The London Metal Exchange launched contracts for spot gold three years ago in a bid to take a slice of the world’s top OTC market and provide an alternative to Comex. But the bourse’s volumes are still just a fraction of the New York trade.

end

We brought this to story to you on Friday but it is worth repeating

Dizard/London’s Financial times)

FT’s John Dizard: The global gold market is breaking up

 Section: 

By John Dizard
Financial Times, London
Friday, June 12, 2020

Gold, the universal currency and store of value, is being de-globalised. Mocatta, long the largest gold bullion dealer, is being unwound and shut down by Scotiabank. JPMorgan, the leading US bullion bank, is ever more reluctant and slow to take on new counterparties.

Along with all its other issues, HSBC had to take a huge mark on its gold trading book during the illiquid and volatile March markets. The Rothschilds, essential to every global conspiracy theory, left the gold trade in 2004.

Gold location arbitrages, the apparently risk-free differences between the simultaneously indicated gold prices among trading centres, are not as wide as they were during the March travel disruptions. At that time, an ounce of gold could be marked at as much as a $90 difference between markets, say, in Zurich, New York, and London. In the recent past, a $1.50 difference would raise eyebrows and trading capital allocations.

Even as travel and air shipments begin to return to a semblance of normality, gold people say $5, $6, or $7 location arbs are not uncommon.

On the face of it, gold trading should be an attractive business for investors with operational experience.

There is increased interest in gold from institutional investors watching each other and needy of validation from the usual pension consultants. Prices, while off their 2020 highs, continue an upward trend.

So why would there be deglobalisation of “physical” gold trading?

Because the emerging leaders of the gold trading world are not the Anglo-Saxon bankers or the “Cousinhood” Jewish families who were the gold establishment of the past couple of centuries.

These new leaders have different ethnic origins, and often focus on particular countries that we have condescended to call emerging markets.

Take, for example, MKS Pamp, founded by Mahmoud Kassem Shakarchi, a northern Iraqi who got his commercial start as a sheep-trader in Istanbul.

Pamp gold bars, often left in their original plastic wrappers, are the most recognised bits of bullion in India. MKS Pamp is the largest refiner and trader of small bars in the world.

Or are you familiar with the Saigon Jewelry Company, or its SJC branded bullion? Everybody knows SJC’s products at the Vietnam-China border, where I understand much trade goes through informal networks.

“The SJC bars are mostly used in Vietnam, but they are even recognised by central banks. Gold is a major means of payment (especially) for the unofficial trading,” says Trung Khans Huynh, a Ho Chi Minh City gold expert.

China limits gold exports to the equivalent of $50,000 per resident.

The Turkish government has enthusiastically embraced the gold trade in the past couple of decades. The Istanbul Gold Refinery, founded by the Halac family, serves the highly efficient national gold trade centred on the Borsa Istanbul. Even during the Covid-19 shutdowns, the Istanbul jewellery shops remained open as an essential trade.

I would offer statistics about the Turkish gold trade, but estimates seem to differ. When I lived there as an infant, the gold trade often conducted business in Ladino, the Sephardic Jewish language, but times have changed and the lingua franca, so to speak, is Turkish.

In southeast Asia, Mr. Trung says that “Vietnam is among the top three gold trading countries, with 60 to 70 tonnes per year, and only behind Thailand and Indonesia with 80 to 90 tonnes per year. Over the years Vietnamese have imported nearly 850 tonnes of gold.” That compares with the UK’s official gold reserves of about 310 tonnes.

A few years ago, Malaysian officials were surprised to hear from a foreign metals expert that a great deal of gold was held in their country in private facilities. Apparently, for some gold-rich Muslims, Malaysia’s recognition of sharia law is a source of reassurance that their assets will be safe.

Then there is conflict gold, or, more gently, artisanal gold mined in Africa. Gold industry people’s eyes glaze over when you bring up the subject, but an EU-funded study from last year pointed out: “Estimates of the scale of gold smuggling annually include Sudan 30 tonnes, South Africa 25 tonnes, Zimbabwe 20 tonnes, Mali 20 tonnes. …,” and so on.

It all seems to get refined, even though the London Bullion Market Association is strongly opposed to the trading of conflict gold, child slavery, etc. One of the most insidious aspects is the mercury poisoning of the people, animals, water and land.

According to Jeffrey Christian of metals consultancy CPM, even with the present high gold prices: “This wasn’t peak fear. We are in the foothills of the global changes coming.” Global political and economic fragmentation is leading to a long-term increase in the demand for monetary and financial gold.

That increased energy on the buy side, though, will not bring back the dominance of the traditional banks and families that were the previous masters of gold.

end

Jan Nieuwenhuijs explains by the Fed controlling the yield curve will be extremely bullish for gold

Jan Nieuwenhuijs (Koos Jansen)

Jan Nieuwenhuijs: Why yield curve control by the Fed will be bullish for gold

 Section: 

By Jan Nieuwenhuijs
Voima Gold, Helsinki, Finland
Saturday, June 13, 2020

On Wednesday, Fed Chair Jerome Powell stated he is considering “yield curve control.” Previously, in the 1940s, when the Federal Reserve controlled the yield curve, it created deeply negative real interest rates. If repeated today, this would cause the gold price to sky-rocket.

Due to the current economic crisis, the U.S. federal deficit is reaching “unprecedented” levels. Preliminary data suggests the federal deficit will be $4 trillion dollars this year, which is more than 15% of GDP. Although, as the crisis unravels, it’s likely these numbers will be even worse by year end. Throughout history, only in the First and Second World War deficits of this magnitude have occurred.

… 

As GDP is declining and the federal deficit rising, the “public debt to GDP ratio” is escalating rapidly. According to usdebtclock.org, U.S. public debt to GDP is 130% at the time of writing. Just a few months ago this ratio printed 110%. In the chart below, you can see public debt to GDP rising at a pace comparable to when the Second World War broke out.

… For the remainder of the analysis:

https://www.voimagold.com/insight/why-yield-curve-control-by-the-fed-wil…

end

Very important:  Steve St Angelo

Fresnillo, a top primary silver producer sees its yield fall to the lowest ever

(St Angelo/SRSRocco/GATA/Money Metals)

Top primary silver mining industry production yield falls to lowest level ever

 Section: 

By Steve St. Angelo
Money Metals News Service, Eagle, Idaho
Wednesday, June 10, 2020

The era of high-grade silver mines may be coming to an end.
Remarkably, the top primary silver miners’ average yield fell to the lowest ever in 2019. Which begs the question: Will high-grade silver mines become extinct in the not-so-distant future?

If we look at the data, it seems to be happening already.

Since I started researching the primary silver mining industry, the yields at many high-grade silver mines have fallen drastically.

… 

For example, Fresnillo’s flagship mine, the Fresnillo Mine, had seen its average yield decline from 15 ounces per tonne in 2005 to only 5.3 ounces per tonne last year. That is one hell of a reduction in just 14 years. Nearly 10 ounces per tonne of silver yield evaporated.

Take a look at how much more silver the Fresnillo Mine was producing in 2005 compared to 2019 … processing less ore.

— Fresnillo Mine 2005 Production = 33.4 million oz.
— Fresnillo Mine 2005 Processed Ore = 2.2 million tonnes
— Fresnillo Mine 2005 Average Yield = 15.2 oz/t

— Fresnillo Mine 2019 Production = 13.0 million oz.
— Fresnillo Mine 2019 Processed Ore = 2.5 million tonnes
— Fresnillo Mine 2019 Average Yield = 5.3 oz/t

As we can see, workers at the Fresnillo Mine processed more ore in 2019 to produce 20 million fewer ounces of silver. No wonder the cost to produce silver has risen from $4-5 per ounce back in 2005 to more than $15 at present. …

… For the remainder of the report:

https://www.moneymetals.com/news/2020/06/10/top-primary-silver-mining-pr…

end

Did Something Break The US Dollar Index On Friday?

Posted June 15th, 2020 at 8:58 AM (CST) by J. Johnson & filed under General Editorial.

Great and Wonderful Monday Morning Folks,

      Gold started off higher, at the Sunday night open, only to see the same ol’ same ol’ for the starting of the Triple Witch Week with August Gold down $22.80 with the price at $1,714.50 and right close to that London low of $1,711 with the high starting point at $1,743.80. Silver of course, leads all declines, with its trade at $17.24, down 24.2 cents with the low down at $17.105 with the high to beat at $17.63. The US Dollar is also trading lower with its calculated value now at 97.16, down 14.5 points after dipping down to 97.035 with the high, not that far away, at 97.385. Of course, all this happened, before 5 am pst, the Comex open, the London pull, and after the Federal Reserve has monetized all Treasury Issuances in 2020, including all the tomorrow’s, all the way out to Christmas.

      Venezuela’s price for Gold now sits at 17,123.57 Bolivar, showing a drop of 286.64 since Friday morning with Silver at 172.184 showing a loss of 5.344 Bolivar. Argentina’s Peso now has Gold valued at 118,812.07 Peso’s dropping the value by 2,002.63 with Silver at 1,194.67 showing a sharp drop of 37.35 A-Peso’s. Turkey’s Lira has Gold valued at 11,727.71 Lira showing a bigger pullback of 180.99 than Friday’s gains with Silver at 117.916 T-Lira, losing an additional 3.505 since Friday’s tally.

      June Silver’s Physical Demand Count now sits at 13 fully paid for 5,000-ounce contracts waiting for receipts and with no Volume or Price up on the board so far this morning. Friday’s Delivery activities showed a Volume of 13 inside a trading range between $17.75 and $17.62 with that wonderfully adjusted paper over product close at $17.462, causing the price to drop by 40.7 cents, proving what we’ve been talking about for years now, paper controls the price. Yet these purchases, raised the Demand count by 2. So, are we to believe that those 11 contracts that were up on the board Friday morning, got delivered, and this is a new set of purchases, or is there something else that makes the stench unbearable? Silver’s total paper count now sits at 175,996 contracts (Open Interest) showing 2,968 Overnighters left the field of play since Friday’s tally and on a negative trading day.

      June Gold’s Delivery Demands now sit at 1,775 fully paid for contracts and with a Volume of 68 up on the board inside an early morning trading range between $1,730 and $1,706.30 with the last purchase being a special gift called “the London Low”, down $23 from Friday’s close, and reducing the delivery count by 19. Friday’s trades inside the delivery month occurred between $1,743 and $1,724.90 with the last trade at $1,729.30 with the calculated closing price of $1,730 as 318 contracts, swapped hands by the end of the day. Gold’s Overall Open Interest is now at 485,939 Overnighters as another 1,199 paper shorts had to be added in order to overwhelm the longs as we enter the Triple Witch Week.

      Something broke the June US Dollar Index on Friday. Or maybe it would/could be better said that, I have not seen this before in over 25 years of staring at monitors. From 10:41:10 am est. to 3:02:01 pm est., the US Dollar had a set of trades that should have caused a huge stir of news-worthy-talk, yet here I sit all by myself (something I’m very used to). I watched the Dollar trade between 96.73 (+/- 7 points) with the next tick at 97.25 (+/- 7 points, close enough to get my point across). I watched for hours as I witnessed these 55-point (+/-) swaps in the currency trade. Not once, not twice, not 100 times, but a total of 316 within that time period. I couldn’t believe what I was witnessing, in fact I was figuring it had to be an error. So, I looked at the June Dollar tick chart, which only confirmed what I witnessed. Then I looked at the Time and Sales stats, which also confirmed what I saw was real.

      Then I contacted the manager at the trade desk/risk department of the FCM (futures commission merchant) I deal through. He didn’t notice these price swings, till I asked him to look at his stats. He confirmed my Tick Chart view, he confirmed the accuracy of the Time and Sales data, and that the price swings that I witnessed, he too confirmed with his own eyes, they are/were real. I still have the printed-out Time and Sales data from Friday which I used to count the total movements inside these huge swaps.

       Two things are certain; my monitors and computers are not broken, and I still have the printed stats from Friday’s trades. Whether these are real trades or something else, we’ll have to wait to find out; if anyone else witnessed this, and if it’s real or an error (a big huge stinking error)? Today, just so happens to be the last trading day for All June Currencies. Which also adds some intrigue to the fakery of it all as we roll out to the September quarter. The rest of the week is a giant inventory check for all the centrals, as everything in the global economy has gone asymmetric already.

       Hang on tight to the real, there is no solution to what we are witnessing except holding precious metals. Everything seems to be a giant screen saver gone wonky. Keeping watch is what we do, and with the minds of Jim Sinclair, Bill Holter, Dave, Denny, and the GATA team, we have proven to be the ones standing against the centrals, on the verge of losing it all!

Stay Strong!

Jeremiah Johnson

More J.Johnson content is available with purchase of a JSMineset subscription.

end

Saudis dump record amount of Treasuries and they buy gold as their gold holdings rise

(zerohedge)

Saudis Dumped Record Amount Of US Treasuries In April As Gold Reserve Holdings Rise

Foreign holdings of U.S. government debt fell to a four-month low in April, as the COVID-19 pandemic shut down most of the global economy.

Foreign TSY sales eased from $299BN in March to $177BN in April and while foreigners bought $10.9BN in corporate bonds in April, up from $3.2BN in March, they sold $5.6BN in corporate stocks in April, from $7.1BN in purchases in March, and the biggest selling since Aug 2019.

The biggest seller by far was Saudi Arabia who dumped almost $60 billion in US Treasuries in March and April (as oil prices collapsed)…

Source: Bloomberg

China and Japan also reduced their US Treasury holdings.

The total for China — the second-largest holder of U.S. government debt — shrank by $8.8b in April to $1.07t

Source: Bloomberg

Japan still has the largest pile of Treasuries outside the U.S.; the value of its holdings fell $5.7b to $1.27t

Source: Bloomberg

Interestingly, Ireland, the fourth-largest holder, boosted its holdings to $300.2b, the highest since Aug. 2018, from $271.5b.

Source: Bloomberg

As a reminder, The Fed’s FX swap lines were also in place throughout April, offering foreign central banks an alternative to selling Treasury holdings to meet their dollar-funding needs and support their currencies.

LTM selling of TSYs by foreign central banks and reserve managers rises to $372.3BN, just shy of the $397BN record in Nov 2016.

And finally, we note that while gold holdings are soaring, safe-haven flows into TSY (Within Fed Custody) also rose…

 

 

 

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early MONDAY 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: 7.0960/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0926   /shanghai bourse CLOSED DOWN 29.71 POINTS OR 1.02%

HANG SANG CLOSED DOWN 524.43 POINTS OR 2.16%

 

2. Nikkei closed DOWN 774.53 POINTS OR 3.47%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 97.14/Euro RISES TO 1.1253

3b Japan 10 year bond yield: RISES TO. +.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.85/ 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:: 35/42 and Brent: 38.15

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.45%/Italian 10 yr bond yield DOWN to 1.41% /SPAIN 10 YR BOND YIELD DOWN TO 0.54%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.86: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.20

3k Gold at $1709.70 silver at: 17.08   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 51/100 in roubles/dollar) 70.25

3m oil into the 35 dollar handle for WTI and 38 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.33 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 .9488 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0682 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.45%

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

4. USA 10 year treasury bond at 0.67% early this morning. Thirty year rate at 1.41%

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

6.  TURKISH LIRA:  UP  TO 6.89..

“Just A Huge Bear Market Rally?” Stocks Tumble On Fears Of Second Virus Wave

In a continuation of the selloff that started overnight, US equity futures and world stocks are plunging on Monday on signs that a second wave of the pandemic is emerging in parts of the United States and China, dousing investor hopes of a quick economic rebound that had powered the Nasdaq to record levels last week. Beijing closed the city’s largest fruit and vegetable supply center and locked down nearby housing districts after dozens of people associated with the market tested positive for the virus. A record number of new infections and hospitalizations were reported in more U.S. states, including Florida and Texas over the weekend.

After dropping as much as 1,000 points, Dow futures were down about 600 points at last check, with S&P futures dropping as much as 3.4% in early London trading in what some have dubbed “Meltdown Monday”, although S&P 500 futures managed to trim their losses in half, last down about 1.6%.

Travel stocks which were hit hard as passenger numbers dwindled due to travel restrictions, slumped on Monday with retail favorites such as United Airlines Holdings Inc, American Airlines Group, Carnival Corp, Norwegian Cruise Line Holdings Ltd and Royal Caribbean Cruises Ltd down between 5.1% and 7.4% in premarket trading. Stocks from economically-sensitive sectors including financials and energy also lost ground. U.S. lenders Bank of America, Citigroup and Morgan Stanley dropped 3.1% to 4%. Oil majors Exxon Mobil and Chevron shed 2.8% and 1.5% respectively. The VIX index jumped to its highest level since April 22 at 44.44 points.

In Europe, cash equities steadied after an opening slump of as much as 3%, with miners, travel and tech stocks weighing, while rising health-care shares blunted the retreat across markets. BP Plc slumped as the British oil major predicted the pandemic will hurt long-term energy demand. Travel and Leisures stocks were hit hard: travel operator TUI and caterer Sodexo led declines in Europe’s travel and leisure stocks after analyst downgrades and amid signs of a second coronavirus wave eroding hopes for a quick recovery for the tourism, leisure and travel industries. Europe’s Stoxx 600 Travel & Leisure Index down 2.6% at 9:42 a.m. in London, the region’s second-worst performing sector on Monday. Airlines also declined, led by flagship carriers Lufthansa (-3.8%), which was downgraded to sell at Redburn, and Air France-KLM‘s 2.9% slide after being cut to sell at Redburn.

Asian stocks also fell, led by industrials and IT. All markets in the region were down, with South Korea’s Kospi Index dropping 4.8% and Singapore’s Straits Times Index falling 2.7%. The Topix declined 2.5%, with W-Scope and Casa falling the most. The Shanghai Composite Index retreated 1%, with China Shenhua and Jiangsu Luokai Mechanical & Electrical posting the biggest slides. Emerging-market stocks headed for their biggest drop in more than three weeks.

After a fierce rally sent global equities close to their pre-pandemic levels, sentiment in markets is starting to sour. In China, a string of top-tier data all missed expectations, and while consumer spending and investment continued to improve in May, there are few signs of a broad-based rebound needed to spur a V-shaped recovery.

“Any further sell off from here will likely see some larger unwinds of the more price and momentum driven investment styles,” said James Athey, a money manger at Aberdeen Standard Investments. “People will then start openly asking the question again, ‘Was that just a huge bear market rally?’”

In rates, US Treasury yelds are richer by 1bp to 5bp across the curve, 10-year by 3.6bp at 0.666%, with long-end-led gains flattening 2s10s by ~2bp, 5s30s by ~3bp. Bunds are cheaper by 2bp vs Treasuries while Spain notably outperforms after Fitch affirmed its sovereign rating at A- with a stable outlook Friday. During the Asia session, gains were pared after a block sale of 10-year futures near the highs.

In FX, the dollar rose versus most Group-of-10 peers. Risk aversion saw commodity currencies like the Australian dollar lead losses versus the greenback, after a jump in new coronavirus cases in Beijing, Tokyo and more than 20 U.S. states raised fears of a resurgence of the pandemic. All developing-nation currencies, except for Taiwan’s dollar, were weaker in early as the dollar climbed and U.S. stock index futures fell. Implied currency volatility climbed for a third day while spreads on dollar bonds widened as investors shunned riskier assets

Elsewhere, bitcoin dropped below $9,000 for the first time since May. Commodities also retreated, with gold, oil and copper all lower.

Expected data include the Empire State manufacturing survey and the latest TIC data.

Market Snapshot

  • S&P 500 futures down 2.1% to 2,970.50
  • STOXX Europe 600 down 1.6% to 348.56
  • MXAP down 2.4% to 153.32
  • MXAPJ down 2.2% to 494.07
  • Nikkei down 3.5% to 21,530.95
  • Topix down 2.5% to 1,530.78
  • Hang Seng Index down 2.2% to 23,776.95
  • Shanghai Composite down 1% to 2,890.03
  • Sensex down 1.6% to 33,257.89
  • Australia S&P/ASX 200 down 2.2% to 5,719.80
  • Kospi down 4.8% to 2,030.82
  • German 10Y yield fell 1.5 bps to -0.454%
  • Euro down 0.01% to $1.1255
  • Italian 10Y yield fell 5.2 bps to 1.318%
  • Spanish 10Y yield fell 2.2 bps to 0.572%
  • Brent futures down 0.8% to $38.42/bbl
  • Gold spot down 0.5% to $1,722.53
  • U.S. Dollar Index down 0.2% to 97.16

Top Overnight News from Bloomberg

  • Beijing shuttered the city’s largest fruit and vegetable supply center and locked down nearby housing districts as dozens of people associated with the wholesale market tested positive
  • The fragile recovery in China’s economy is pointing to a long road back for the rest of the world too
  • The European Union fired a warning shot at China over its global trade ambitions with an unprecedented tariff decision to counter Chinese subsidies to exporters
  • British Prime Minister Boris Johnson will step back into the Brexit fray on Monday as he holds talks with the European Union’s top officials, with both sides looking to reset negotiations that have drifted into stalemate

Asian equity markets traded negative and US equity futures also began the week on the backfoot in which the E-Mini S&P gapped below its 200DMA (3011.20) and the key 3000 focal point, with investor sentiment weighed by coronavirus second wave fears after several US states recently suffered a record number of additional cases including 2 of the 4 largest populated states – California and Florida. ASX 200 (-2.1%) and Nikkei 225 (-3.5%) declined at the open amid the downbeat tone although losses in Australia were briefly reversed amid resilience in tech and with authorities planning to fast track infrastructure projects valued over AUD 72bln to speed up the recovery, while exporter sentiment in Tokyo was dragged by unfavourable currency effects. Hang Seng (-2.1%) and Shanghai Comp. (-1.0%) were subdued after an outbreak prompted a lockdown of some areas in Beijing and following disappointing activity data in which Chinese Industrial Production and Retail Sales both missed expectations, but with pressure in the mainland cushioned after the PBoC conducted a CNY 200bln MLF operation. Finally, 10yr JGBs were relatively flat with prices only marginally benefitting from the weakness in stocks as participants also digested the inline-to-soft enhanced liquidity auction results for longer-dated JGBs and with the BoJ kicking off its 2-day policy meeting.

Top Asian News

  • Beijing Outbreak Grows to Nearly 100 Cases in Test For China
  • China’s Recovery Continues But Wary Consumers Show Vulnerability
  • Turkey Showcases Air Power in Region With Major Attack in Iraq
  • Warburg Pincus-Backed Group Is Said to Near 58.com Buyout Deal

Europe kicks the week off with sizeable losses [Euro Stoxx 50 -1.2%], albeit well off worst levels, as the region conformed to the global risk aversion amid growing fears of a second wave – with Beijing now seemingly the epicenter of a second outbreak, whilst several US states including Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South Carolina all experienced a record increase in coronavirus cases during the past 3 days. Bourse have drifted off worst levels as the session is underway, potentially due to short covering, but nonetheless remain in firm negative territory. Sectors are predominantly in the red and post an anti-cyclical performance, with energy recouping some losses but still retaining its spot as the laggard whilst healthcare names fare the best, marginally into positive territory. The detailed breakdown pains a similar picture, with Travel & Leisure one of the worst performers amid fears of further sectoral disruption. In terms of individual movers and shakers – BP (-3.5%) shares are pressured (alongside lower oil prices) as it anticipates Q2 charges of USD 13-17.5bln. Additionally, the group are cutting their long-term price assumptions as part of a review of development plans. Meanwhile, Commerzbank (-1.0%) reportedly rejected Cerberus’ demands for two seats on the supervisory board, according to sources; subsequently, Cerberus reportedly said they expected this to happen and will announce next steps in due course. On the flip side, AstraZeneca (+1.0%) are buoyed amid comments from Italy’s Health Minister who stated that Italy, Germany, France & Netherlands have signed a contract for 400mln doses of a COVID-19 vaccine – Co. CEO said the group will know by the end of Summer if a working vaccine is viable.

Top European News

  • Johnson Returns to Brexit in Bid to Reboot Faltering Talks
  • Johnson Tells Brits to ‘Shop With Confidence’ as Shops Open
  • Immofinanz Seeks to Increase Capital by ~25% with Shares, Notes
  • Danske Reallocates Roles and Cuts Jobs in Work-From-Home Push

In FX, the Dollar has retained some safe-haven allure alongside Gold and the Yen as 2nd wave coronavirus concerns spark another bout of broad risk aversion, with the DXY holding above 97.000 and well off mtd lows just under 96.000. However, the Greenback is still tussling with bullion and the Jpy given new outbreaks of COVID-19 across several US states and eight seeing a record rise in the number of cases over the last 3 days. Hence, Xau/Usd looks underpinned around the 10 DMA (Usd 1715/oz) and Usd/Jpy appears capped ahead of 107.60, albeit also mindful of decent option expiry interest between 107.20-15 (1.1 bn).

  • NOK/AUD/CAD – Another downturn in crude prices and a further deterioration in Norway’s trade balance has undermined the Crown, while the Aussie is weaker in wake of Chinese ip and retail sales missing consensus to offset latest fiscal initiatives to support the economy via infrastructure spending. Meanwhile, the Loonie is also tracking oil down ahead of Canadian manufacturing sales, with Eur/Nok elevated within a 11.0187-10.8561 range, Aud/Usd pivoting 0.6800 and Usd/Cad firmly above 1.3600. Ahead, a big week for the Aussie kicks off with RBA minutes tomorrow and culminates in jobs data and retail sales on Thursday and Friday respectively.
  • NZD/SEK – Also on the back foot, but the Kiwi benefiting to a degree from favourable Aud/Nzd cross flows towards the bottom of 1.0644-1.0583 parameters and the Swedish Krona holding up better than its Scandinavian counterpart by the same token, as Nzd/Usd sits more comfortably on the 0.6400 handle and Eur/Sek in a tighter 10.5835-5070 band.
  • CHF/EUR/GBP – All pretty flat with the Franc near the middle of 0.9500-50 extremes vs the Buck and even tighter against the Euro between 1.0730-1.0695 after more deflationary Swiss data (import/producer prices) and latest sight deposits showing a big rise in domestic bank accounts in the run up to Thursday’s SNB policy review. Elsewhere, Eur/Usd seems constrained by 1.1225/30 bids and 1.1270 offers, 1.1270 with 1.5 bn option expiries at 1.1260 also keeping the headline pair in check, while Cable has reclaimed 1.2500+ status and Eur/Gbp is back under 0.9000 amidst reports of demand for Sterling via the cross before attention turns to UK PM Johnson’s Brexit call with EC President von der Leyen at 13.30BST.
  • EM – Widespread declines on the lack of risk appetite, but especially for the Rub, Mxn, and Zar, while the Try is under pressure following Turkey’s airstrikes on PKK targets in Northern Iraq.

In commodities, WTI and Brent front-month futures bear the brunt of the overall risk aversion coupled with demand woes emanating from the resurgence in COVID-19 cases in the US and in Beijing. WTI has since reclaimed the 35/bbl handle (vs. 36.12/bbl high) as has Brent for the USD 38/bbl figure (vs. 38.80 high); as newsflow slows and prices grind higher ahead of US’ entrance. The week could prove to be a volatile period, barring COVID-headlines, the monthly OPEC and IEA oil market reports are due later this week, whilst the JMMC meeting will be underway on the 18th June. The committee will review secondary source data alongside current market fundamentals before proposing policy recommendations. Sources last week said that OPEC+ is to move cautiously to rebalance the market amid easing lockdowns, while anticipated Shale resumptions could also weigh on eastern producers’ minds. Participants may give less credence to the oil market reports as the prospect of rising cases could prove the reports stale. Moving to metals where, spot gold trades lacklustre around USD 1720/oz (vs. 1735 high), as the yellow metal decouples from its safe-haven properties amid early USD strength, although as the Dollar recedes, gold is seemingly weighed on by investors potentially on the sidelines as they observe the state of play. Copper prices have been moving broadly with the risk aversion. Reports noted that CME May copper volumes slid 40%, whilst LME volumes fell 26% as funds fled from high volatility amid the pandemic. Meanwhile, Dalian iron ore futures remained steady despite the second wave-woes amid falling stockpiles of the raw material.

US Event Calendar

  • 8:30am: Empire Manufacturing, est. -30, prior -48.5
  • 4pm: Net Long-term TIC Flows, prior $112.6b deficit

DB’s Jim Reid concludes the overnight wrap

Patient zero in the U.K. was not in my household after all as my wife tested negative for Covid antibodies over the weekend. It must have been the worst flu ever over Xmas then.

New virus cases continue to bubble up in certain parts of the world and we again include our full Covid case and fatality tables in the full report – including the four most troublesome US states at the moment. There were Sunday headlines of China seeing the largest increase in new cases since April and a very localised lockdown around a market in Beijing. However at 57 new cases reported in a country of 1.4 billion people we have to put this into some perspective. This rounded up the 1-day new case growth to 0.1% after 62 days of 0.0% growth. A further 49 cases have been reported overnight with Beijing shutting down housing districts in and around the market in focus.

Meanwhile, the US is still struggling to reduce daily new case growth below 1% as all of Western Europe have. The most problematic states continue to be California, Texas, Florida and Arizona. Over the weekend these 4 states were responsible for over 16,500 new cases, or roughly 37% of the total new cases in the US. The first three are the largest states in the US so it is a worry that cases continue to rise nearly 3 months into the pandemic. Weekend reporting issues might be an issue but the 7 day average rise in daily cases in California and Texas is 2.2% currently, the same as a week ago in California and down slightly in Texas from 2.4%. Arizona and Florida are more worrisome. Arizonian cases rose by 4.5% in the last week on average, up from 4.1% the week prior, while Florida saw cases rose by 2.3% on average up from 1.8% in the period before. Rtlive’s estimates of effective transmission rates, Rt, show Arizona at the highest currently in the US at 1.18. California is now estimated at 1.0 after being slightly under a few days back, indicating that efforts to reopen may be raising the risk of transmission. Overall 16 of the 50 states are now estimated to have an Rt value over 1, while only 9 states have the entire confidence interval of their Rt values under 1.

At DB, we’ve had a lot of internal debate about whether the piecemeal, lack of centrally planned US approach to fighting this virus will eventually be worse for growth than the more synchronised and more thorough lockdown approach of Europe. My personal view is that whilst the latter looks very effective on paper, the fact that more of the US economy has remained open for longer means they’ll probably see a better short to medium term growth outlook. It’s hotly debated here though. The other thing to comment on around the four highest virus growth US states is that death rates still remain relatively low in them as you’ll see in our tables. Overall, it’s possible that globally we are now shielding the vulnerable better and that even if we do see a second wave it might not be as deadly as the first. Anyway, expect the market to be obsessing about these states this week.

The worsening virus newsflow has seen most Asian markets start the week on the back foot. The Nikkei (-0.98%), Hang Seng (-0.62%), Kospi (-0.58%) and ASX (-0.73%) are all down as we go to print. Moves for Chinese bourses have been more muted following the data (more on the shortly). In FX, the Japanese yen is up +0.21% amidst the risk off. Meanwhile, yields on 10y USTs are down -4bps to 0.665% and futures on the S&P 500 are down -1.22%. Elsewhere, WTI oil is down -2.84% to $35.23.

In terms of that data, China’s activity data for May did suggest an improving growth outlook albeit slightly disappointing relative to expectations. Industrial production rose to +4.4% yoy (vs. +5.0% yoy expected and +3.9% yoy last month) while retail sales rose to -2.8% yoy (vs. -2.3% yoy expected and -7.5% yoy last month) and YtD fixed asset investments ex rural printed at -6.3% yoy (vs. -6.0% yoy expected). Finally the surveyed jobless rate in May came in line with expectations at 5.9%.

In other weekend news, US infectious disease expert Anthony Fauci suggested that bans on travel to the US may remain until a vaccine arrives. Elsewhere, Italian news daily La Repubblica noted over the weekend that the Italian government may request up to EUR 36bn in credit lines linked to the ESM by the end of July. The report added that PM Conte has received preliminary approval from Foreign Minister Luigi Di Maio of the Five Star movement, which has been against tapping the fund and said that Italy would aim to request an ESM loan along with other EU members including Spain and Portugal.

In terms of this week, central banks will feature highly on the agenda, with decisions from the Bank of Japan (tomorrow), the Bank of England (Thursday) and a number of others, while Fed Chair Powell will also be testifying before Congress (tomorrow and Wednesday). Elsewhere, European politics will be in focus, with a European Council meeting taking place on Friday where the recovery fund will be discussed, as well as talks between Prime Minister Johnson and EU leaders on today about their future relationship. Meanwhile we’ll get an increasing number of hard data releases for May, offering further insight into how different economies have fared as various lockdown measures have been eased.

Starting with central banks while the BoJ (tomorrow) is likely to see no policy change, the Bank of England (Thursday) are expected by DB to ramp up QE by a further £125bn with more QE likely over the course of the year. Their decision comes against the backdrop of Friday’s data showing UK GDP contracting by -20.4% in April, following its -5.8% decline in March, and with the country still only slowly easing lockdown restrictions.

Another central bank highlight will be Fed Chair Powell’s appearances before the Senate Banking Committee tomorrow and the House Financial Services Committee on Wednesday. He’ll be delivering a testimony as part of the semiannual Monetary Policy Report that’s submitted to Congress. It’ll be interesting to hear what he has to say on the outlook and how he sees the recovery progressing given his remarks in the most recent press conference that “we’re not thinking about thinking about raising rates”. So close to last week’s FOMC there is unlikely to be much new news but his tone will be closely watched as many in the market have criticised his downbeat nature at last week’s press conference. Rightly or wrongly, markets like a bit of sparkle from their central bank leaders and didn’t feel they got enough last week. Finally, central banks elsewhere will also be making a number of decisions next week, including in Switzerland, Norway, Indonesia, Russia and Brazil.

At the end of the week, the European Council summit on Friday will be of particular importance, with EU leaders due to discuss the recovery fund to deal with covid-19, along with the EU’s new long-term budget. Last month, Commission President von der Leyen presented a proposal for a €750bn recovery fund, which would include a mixture of grants and loans to member states. As part of this, the Commission would borrow from markets on behalf of the EU. However, the plans would require unanimity among the member states, and there are differences of views between them, not least on the extent to which the fund should be balanced between grants and loans. However, talks on the issue are expected to keep going into July, when Germany will take over the rotating EU Presidency.

Staying on European politics, and Brexit will return to the headlines as a high-level meeting between UK Prime Minister Johnson and the Presidents of the European Commission, Council and Parliament takes place by video conference this afternoon. The two sides have now agreed to an intensified timetable for negotiations on a free-trade agreement, with talks in each of the 5 weeks from the week commencing 29 June to the week commencing 27 July. The question will be whether today’s high-level talks can provide fresh impetus for the negotiations.

On the data front, it isn’t a particularly eventful week. The US will be releasing more hard data for May, with retail sales, industrial production and capacity utilisation figures coming out tomorrow, before housing starts and building permits for May are released on Wednesday. Our economists believe the trough of activity was in early May where their tracker showed YoY growth of -11%. It’s now around -9%. Moving across the Atlantic, here in the UK, this week sees inflation, retail sales and unemployment data released. For more on the rest of the week’s calendar see the day by day week ahead at the end.

Looking back at last week now, global equity markets in the US and Europe fell the most since the worst days of this covid-19 crisis. While Fed Chair Jerome Powell indicated midweek that the Fed would continue to use its tools to support the US recovery, the central bank’s bleak long term forecast and rising virus cases in the largest US states caused a reversal in investor risk sentiment. The S&P 500 (+1.31% Friday) nearly erased all of the previous week’s gains, falling -4.78% on the week, with the largest one-day fall coming on Thursday (-5.89%). The tech-focused NASDAQ went back to outperforming the S&P after two weeks of lagging the broader index, down “just” -2.30% over the 5 days (+1.01% Friday). For both the S&P 500 and the NASDAQ it was the worst weekly performance since the height of the crisis in the week ending 20 March. European equities fell even more on the week as the cyclical-over-growth outperformance trade of the past 1-2 weeks unwound. Banks were at the forefront of this on both sides of the Atlantic – US Bank stocks fell -11.17% while European Banks fell -9.76%. The Stoxx 600 as a whole fell -5.66% (+0.28% Friday) over the five days. The DAX was down -6.99% (-0.18% Friday), while the CAC fell -6.90% (+0.49% Friday), the IBEX retreated -7.37% (+0.20% Friday), and the FTSE MIB dropped -6.44% (+0.43% Friday). Asian indices did not fall as much, with the Nikkei down -2.44% over the week (-0.75% Friday) while the CSI 300 was largely unchanged at +0.05% (+0.18% Friday), and the Kospi fell -2.27% (-2.04% Friday).

With worries of a protracted first wave or potential second wave dampening economic activity, oil fell for the first week since late April. While OPEC+ agreed to extend production cuts at the start of the week, the global demand picture has not materially improved yet. And on a week where risk assets repriced the risks around reopening the economy, the commodity traded sharply lower. WTI futures fell -8.32% (-0.22% Friday) to $36.26/barrel and Brent crude retreated -8.44% on the week (+0.47% Friday) to $38.73/barrel.

As risk assets traded lower and volatility spiked, credit spreads both in the US and Europe widened on the week. European HY cash spreads were +44bps wider on the week (unchanged Friday), while European IG spreads were +13bps wider (+1bp Friday). US HY cash spreads were +78bps wider (-12bps Friday), while IG widened +9bps on the week (-1bp Friday).

Peripheral debt widened across the board as well, with Spanish 10yr yields +19.9bps wider to German bunds over the week, while Italian BTPs were +19.7bps wider, Greek 10yr yields widened less at +8.6bps, and Portuguese bonds widened +19.4bps. With risk assets falling sharply toward the end of the week, core sovereign bonds rallied with US 10yr Treasury yields falling -19.2bps (+3.4bps Friday) to finish at 0.703%, while 10yr Bund yields fell -16.2bps over the course of the week (-2.5bps Friday) to -0.44%. With yields lower and investors seeking havens, Gold rise +2.71% on the week (+0.18% Friday). The largest one week move for the metal since late April.

Economic data on Friday continued to show the economic hardship brought on by the coronavirus, with Euro Area industrial production falling by -17.1% in April, following its -11.9% decline in March. In the US, the University of Michigan consumer sentiment survey bounced back 6.6pts to 78.9 (vs. 75 expected), which is still near 7 year lows.

 

3A/ASIAN AFFAIRS

i)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN 29.71 POINTS OR 1.02%  //Hang Sang CLOSED DOWN 524.43 POINTS OR 2.16%   /The Nikkei closed DOWN 774.53 POINTS OR 3.47%//Australia’s all ordinaires CLOSED DOWN 2.18%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0960 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0960 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0926 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea//NORTH KOREA

Kim’s sister is gaining power in  North Korea..she is threatening military action again South Korea because sanctions are killing the country.

(zerohedge)

Expect Something Big’: Kim Jong-Un’s Powerful Sister Threatens Military Action Against South

Earlier this week North Korea announced it would cut off all government and military communications with the South, also as its foreign ministry declared Pyongyang would “never again” allow President Trump to use ’empty’ dialogue to score political points, suggesting the whole prior year long Trump-Kim bromance is now effectively dead.

And now the increasingly visible and powerful sister of Kim Jong Un has further gone on the offensive by threatening military action against South Korea Saturday.

Kim Yo Jong vowed “We will soon take a next action.” Referencing her brother, she described, “By exercising my power authorized by the Supreme Leader, our Party and the state, I gave an instruction to the arms of the department in charge of the affairs with enemy to decisively carry out the next action,” according to KCNA news agency.

 

Kim Yo-jong, now increasingly in the spotlight, is the most powerful woman in North Korea, increasingly speaking on behalf of her brother, the Supreme Leader. AFP/Getty Images

“The right to taking the next action against the enemy will be entrusted to the General Staff of our army. Before long, a tragic scene of the useless north-south joint liaison office completely collapsed would be seen,” Kim Yo Jong added.

The widely reported “reason” behind the sudden jingoistic stance is related to activists apparently continuing to defy the north in floating anti-Pyongyang leaflets across the border.

Such activism has been particularly sensitive to the north because it’s driven in many cases by defectors. Lately Pyongyang’s angry rhetoric against South Korea welcoming and hosting such defectors and their political activism has intensified.

But there’s also rising tensions given Seoul’s failed to materialize assurances that Washington would ease sanctions as part of denuclearization talks. This further appears an opportunity for Kim’s increasingly visible and powerful sister to flex her authority over the military and next in line to rule.

Chad O’Carroll@chadocl

THREAD: Kim Yo Jong’s warning this evening is v. worrying.

On Monday I wrote that the DPRK wants to create an inter-Korean crisis.

Well, in two days it’s June 15, the 20th anniversary of the first inter-Korean summit.

I strongly suspect something is being timed to coincide.

Some analysts also believe Kim Jong Un is looking to rapidly manufacture an inter-Korean crisis for much bigger leverage amid stalled and effectively dead talks with the US. Importantly June 15, a mere two days away, will mark the 20th anniversary of the first inter-Korean summit.

Thus we are likely to see some big provocative fireworks in the form of some drastic action or weapon test, sure to re-trigger soaring tensions by Monday.

 

b) REPORT ON JAPAN

 

3 C CHINA

Coronavirus//update/Sunday

New clusters in Beijing

(zerohedge)

Beijing Region In “Wartime Emergency” After New Virus Cluster Emerges At Major Food Market

A small cluster of cases discovered late this week in Beijing’s Fengtai district prompted authorities to keep local children out of school, while a wider net of concentrated testing has revealed, once again, a startling reality: while 4 symptomatic cases were reportedly uncovered, according to the Chinese state press, another 45 ‘asymptomatic’ cases were also uncovered, leading China’s totalitarian contact tracers to a local seafood market.

Authorities have ordered the market shut for a deep cleaning after determining that it was the epicenter of the latest outbreak.

In a surprisingly lengthy report, the Global Times explores the role of China’s sprawling food markets in spreading the virus.

Beijing’s seafood markets have entered the public spotlight after two confirmed cases along with 45 merchants in relation to a local market tested positive for COVID-19, with many discussing the reasoning behind seafood markets becoming hot spots for the novel coronavirus.

The COVID-19 outbreak in Wuhan, the capital city of Hubei Province, was reportedly first detected in the Huanan seafood market in the city, and this new discovery of confirmed cases and quite a many positive nucleic acid tests in Beijing are also closely related to seafood markets.

Seafood markets are generally referred to as markets that sell seafood, however such places usually don’t sell only seafood but also other meats – beef and lamb, for example. But like food markets, seafood markets are more susceptible to the novel coronavirus due to its humid environment and large flow of customers, Yang Zhanqiu, deputy director of the pathogen biology department at Wuhan University, told the Global Times on Saturday.

We must admit, we were surprised by the frankness of the state media reports. Is this a sign that Beijing intends to make good on its promises to be more open and honest with the international community now that the WHO has officially OK’d an “independent” investigation into the origins of the outbreak in Wuhan?

Perhaps.

More likely, these reports were just scratching the surface. And so it was that just a few hours later, Reuters reported on Saturday morning that the area around a major food market in Fengtai had assumed a “wartime” posture – part of Beijing’s textbook response to new clusters – as investigators and contact tracers swarmed the southwestern area of Beijing, where Fengtai and the Xinfadi market are situated.

Remember: Beijing’s playbook for tackling new clusters relies on mass testing and the resumption of strict lockdown conditions. Out of some 517 tested in the district, 45 tested positive via throat swab after visiting the market, according to Chu Junwei, a district official, told a briefing. None of these patients were showing symptoms of COVID-19, Chu said, but he added that 11 nearby neighborhoods surrounding the market, which purports to be the largest agricultural wholesale market in Asia, have been placed on lockdown, with 24-hour guards in place.

“In accordance with the principle of putting the safety of the masses and health first, we have adopted lockdown measures for the Xinfadi market and surrounding neighbourhoods,” Chu said.

The district is in a “wartime emergency mode,” he added.

Reuters added that the outbreak underlines just how easily the virus can recur even in “countries which have had great success in curbing the spread of the virus, clusters can sometimes easily arise.” We’ve been seeing more of these oblique and deferential references to Beijing’s containment effort in the English-language foreign press. Then we remember that all the reporters who refused to kowtow to Beijing have already been expelled from the country.

The Xinfadi market was shut down at 3 am local time, and authorities have plans to test some 10k employees and patrons.

The entire Xinfadi market was shut down at 3 a.m. on Saturday (1900 GMT on Friday), after two men working at a meat research centre who had recently visited the market were reported to have the virus. It was not immediately clear how they had been infected.

On Saturday, market entrances were blocked and police stood guard. Beijing authorities had earlier halted beef and mutton trading at the market and had closed other wholesale markets around the city.

They plan for more than 10,000 people at the Xinfadi market to take nucleic acid tests to detect coronavirus infections.

According to the Xinfadi website, more than 1,500 tonnes of seafood, 18,000 tonnes of vegetables and 20,000 tonnes of fruit are traded at the market daily.

In total, 6 symptomatic cases discovered in Beijing on Friday had all been tied to the market. Now, authorities across China are scrutinizing local food markets.

A city spokesman told the briefing that all six COVID-19 patients confirmed in Beijing on Friday had visited the Xinfadi market. The capital will suspend sports events and tourists from other parts of China, effective immediately, he said.

Beijing’s Yonghe temple and National Theatre also announced they would close from Saturday, and the city government said it had dropped plans to reopen schools on Monday for students in grades one through three because of the new cases.

One person at an agricultural market in the city’s northwestern Haidian district also tested positive for the coronavirus, Chu said.

Highlighting the new sense of alarm within the city, health authorities visited the home of a Reuters reporter in Beijing’s Dongcheng district on Saturday to ask whether she had visited the Xinfadi market, which is 15 km (9 miles) away. They said the visit was part of patrols Dongcheng was conducting.

And following reports in state-run newspapers that the coronavirus was discovered on chopping boards used for imported salmon at the market, major supermarkets in Beijing removed salmon from their shelves overnight.

That concern also spread to other cities, with a major agricultural wholesale market in Chengdu, the capital of the southwestern province of Sichuan, saying it would remove salmon products from its shelves from Saturday.

In Nanjing, capital of the eastern province of Jiangsu, a local association of restaurants said it would halt the serving of foods containing raw seafood or animal products.

Some Beijing residents, including a man shopping at a Carrefour supermarket in Fengtai district, said they were confident authorities had the situation under control.

“If I were worried, I wouldn’t come here to buy meat. I believe it has been quarantined,” said the man, who gave his surname as Zhang.

One mouthpiece for the CCP assured the public that everything will be fine – just another speedbump on the way to eradicating SARS-CoV-2.

Hu Xijin 胡锡进

@HuXijin_GT

Beijing is seeing a new outbreak of COVID-19, prompting the city to take urgent measures. Stupid US government, watch carefully this time how the Chinese people control the epidemic scientifically. This will help you reflect on your own failure of epidemic control.

View image on Twitter

Let’s hope they have enough food and other essentials stashed to last them for a few days, or a few weeks.

END
CHINA/MONDAY
Forget about any V shaped recovery for China:  3 Macro numbers disappoint
(zerohedge)

China’s “V-Shaped” Recovery Stalls As Big Three Macro Signals Disappoint

As asecond wave of COVID-19 begins to spreadin both Beijing and Guangzhou (with a warning from a Vice Premier of ahigh risk that the outbreak spreads and new figures show Beijing reported 36 new cases on June 14), China’s miraculous “V-shaped” recovery was expected to continue.

Early in the evening, China home prices beat expectations rising at a 0.42% MoM clip – the best since Oct 2019…because who wouldn’t want to be bidding up prices in China right now…

Source: Bloomberg

Earlier in the month, the manufacturing PMIs suggested some further stabilization, though not much of a strengthening last month. Exports dropped, though by less than anticipated, at -3.3% year-on-year, while imports tumbled hard, with a 16.7% slide.

And then the big China data dump hit:

  • Industrial Production -2.8% YTD YoY (slightly better than the expected 3% drop and an improvement on last last month)
  • Retail Sales -13.5% YTD YoY (matched expectations and improved from the 16.2% drop last month)
  • Fixed Asset Investment -6.3% YTD YoY (worse than the expected 6.0% drop but an improvement over last month)
  • Property Investment -0.3% YTD YoY (better than the 0.8% drop expected and a big improvement from the 3.3% drop last month)
  • Surveyed Jobless Rate 5.9% (as expected and better than the 6.0% last month)

However, on a straight YoY basis – all three of the “big” ones missed:

  • China Retail Sales -2.8% Y/Y, Exp. -2.3%
  • Fixed Investment -6.3% Y/Y, Exp. -6.0%
  • Industrial Output 4.4% Y/Y, Exp. 5.0%

The immediate takeaway perhaps is that China’s economy continues to improve (after the crushing Q1 blow due to COVID-19 containment-driven shutdowns) but that pace of recovery may not be living up to expectations.

Of course, none of this should be a massive surprise as, once again, China has injected unprecedented amounts of credit into the economy to keep the mirage of growth alive and maintain a semblance of social cohesion…

Source: Bloomberg

The question is – what happens when the second wave (or third) hit and even more so-called “stimulus” is needed?

 END
CHINA/CANADA
Although, the Chinese scientist did not send out the Covid 19 virus, it did send deadly viruses to Wuhan. She was escorted out of a level 4 lab in Winnipgeg
(zerohedge)

Chinese Scientist, Escorted Out Of Canadian Biolab, Sent Deadly Viruses To Wuhan

We have a researcher who was removed by the RCMP from the highest security laboratory that Canada has for reasons that government is unwilling to disclose. The intelligence remains secret. But what we know is that before she was removed, she sent one of the deadliest viruses on Earth, and multiple varieties of it to maximize the genetic diversity and maximize what experimenters in China could do with it, to a laboratory in China that does dangerous gain of function experiments. And that has links to the Chinese military.” -Amir Attaran

A Chinese scientist who was escorted out of Canada’s only level-4 biolab over a possible “policy breach” shipped dealdy Ebola and Henipah viruses to the Wuhan Institute of Virology, according to the CBC, citing newly-released documents. The shipment is not related to COVID-19 or the pandemic.

Dr. Xiangguo Qiu, her husband Keding Cheng and her Chinese students were removed from the Canadian lab after the Public Health Agency of Canada (PHAC) asked the RCMP to investigate several months earlier. According to PHAC, Qiu’s eviction from the lab is not connected to the shipment.

 

Dr. Xiangguo Qiu accepting an award at the Governor General’s Innovation Awards at a ceremony at Rideau Hall in 2018. Qiu is a prominent virologist who helped develop ZMapp, a treatment for the deadly Ebola virus which killed more than 11,000 people in West Africa between 2014-2016. (CBC)

“The administrative investigation is not related to the shipment of virus samples to China, said PHAC chief of media relations, Eric Morrissette.”

“In response to a request from the Wuhan Institute of Virology for viral samples of Ebola and Henipah viruses, the Public Health Agency of Canada (PHAC) sent samples for the purpose of scientific research in 2019.”

To recap, a Chinese scientist, her husband and her Chinese students were escorted out of Canada’s only Level-4 lab for reasons unknown, and which are not related to her shipment of deadly viruses to the Wuhan Institute of Virology.

“It is suspicious. It is alarming. It is potentially life-threatening,” said University of Ottawa law professor and epidemiologist, Amir Attaran.

 

Amir Attaran, professor in the Faculty of Law and the School of Epidemiology and Public Health at the University of Ottawa, is concerned about the shipment of dangerous viruses sent from Canada’s only level-4 lab to China. (CBC)

While Canada doesn’t do ‘gain-of-function’ experiments – which are where natural pathogens are mutated in a lab and assessed to see if it has become more deadly or infectious, “The Wuhan lab does them and we have now supplied them with Ebola and Nipah viruses. It does not take a genius to understand that this is an unwise decision,” said Attaran.

“I am extremely unhappy to see that the Canadian government shared that genetic material.”

Attaran pointed to an Ebola study first published in December 2018, three months after Qiu began the process of exporting the viruses to China. The study involved researchers from the NML and University of Manitoba.

 

The lead author, Hualei Wang, is involved with theAcademy of Military Medical Sciencesa Chinese military medical research institute in Beijing.

 

All of this has led to conspiracy theories linking the novel coronavirus responsible for COVID-19, Canada’s microbiology lab, and the lab in Wuhan. –CBC

According to the report, the RCMP and PHAC have repeatedly denied any connections between the virus shipments and COVID-19.

According to the newly-released documents, the following virus strains were shipped to the WIV (approximately 15 ml):

  • Ebola Makona (three different varieties)
  • Mayinga.
  • Kikwit.
  • Ivory Coast.
  • Bundibugyo.
  • Sudan Boniface.
  • Sudan Gulu.
  • MA-Ebov.
  • GP-Ebov.
  • GP-Sudan.
  • Hendra.
  • Nipah Malaysia.
  • Nipah Bangladesh.

The documents also shed light on communications from the months leading up to the shipment – including confusion on how to package the viruses, along with a lack of decontamination of the package prior to its shipment, as well as concerns expressed by NML Director-General Matthew Gilmour to his superiors in Ottawa – particularly over where the package was going, what was in it, and whether its paperwork was in order.

 

CBC News received hundreds of pages of documents through an Access to Information request, detailing a shipment of Ebola and Henipah viruses sent from the National Microbiology Lab in Winnipeg, to the Wuhan virology lab in China. (Karen Pauls/CBC News)

In one email, Gilmour said Material Transfer Agreements would be required, “not generic ‘guarantees’ on the storage and usage.”

He also asked David Safronetz, chief of special pathogens: “Good to know that you trust this group. How did we get connected with them?”

Safronetz replied: “They are requesting material from us due to collaboration with Dr. Qiu.” –CBC

According to the report, the shipper of the viruses had originally planned to use inappropriate packaging, and only corrected the mistake when the WIV flagged the issue.

“The only reason the correct packaging was used is because the Chinese wrote to them and said, ‘Aren’t you making a mistake here?’ If that had not happened, the scientists would have placed on an Air Canada flight, several of them actually, a deadly virus incorrectly packaged. That nearly happened,” said Attaran.

Read the rest of the report here.

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Not good for Russia/USA relations:  Paul Whelan is sentenced to 16 years for spying

(zerohedge)

 

Russian Court Sentences American Paul Whelan To 16 Years In Prison For Spy Conviction

Former U.S. Marine Paul Whelan was arrested in Moscow in 2018 on charges of “carrying out an act of espionage,” has been found guilty by a Russian court on Monday and sentenced to 16 years in prison, reported Reuters.

The verdict was read out loud in Moscow City Court as Whelan stood inside a defendants’ cage holding a sign that read, “Sham Trial!”

Whelan holds several passports, including U.S., British, Canadian, and Irish ones, was detained in 2018 in Moscow on espionage, a charge that he denies.

We followed the story over the last several years, read:

Days after his 2018 arrest, Russia’s Federal Security Service (FSB) said Whelan was on a “spy mission” — caught with a flash drive of highly sensitive data. He later pleaded not guilty to charges of espionage — indicating that the flash drive was given to him by an acquaintance and had family photos.

Reuters

@Reuters

A Russian court found former U.S. marine Paul Whelan guilty of spying for the United States and sentenced him to 16 years in jail https://reut.rs/3e4p0kr 

Embedded video

Moscow said Whelan was ranked “at least a colonel” with U.S. spy agencies. After his arrest, BorgWarner claimed he worked for the automotive parts company, holding the position of director of global security.

After the guilty verdict, Whelan’s defense said Monday they would appeal the decision within two weeks.

“Today #PaulWhelan returns to court to hear a verdict his case. If he is found guilty after this secret trial with no evidence, the world will see how the Russian judicial system mocks the very idea of justice,” tweeted Rebecca Ross, spokesperson at the U.S. embassy in Moscow.

Rebecca Ross@USEmbRuPress

Today returns to court to hear a verdict his case. If he is found guilty after this secret trial with no evidence, the world will see how the Russian judicial system mocks the very idea of justice. @mfa_russia

Ross continued: “Ambassador Sullivan arrived at Moscow courthouse where verdict expected in #PaulWhelan case.  Will authorities show the world, and the Russian people that their judicial system is fair, or will we see a conviction after a secret trial with no evidence?”

Rebecca Ross@USEmbRuPress

Ambassador Sullivan arrived at Moscow courthouse where verdict expected in case. Will authorities show the world, and the Russian people, that their judicial system is fair, or will we see a conviction after a secret trial with no evidence? @mfa_russia

She said, “Ambassador Sullivan: The United States demands that U.S. citizen #PaulWhelan be released immediately. His conviction is a mockery of justice. The world is watching.”

Rebecca Ross@USEmbRuPress

Ambassador Sullivan: The United States demands that U.S. citizen be released immediately. His conviction is a mockery of justice. The world is watching. @mfa_russia

Several weeks ago, U.S. Secretary of State Mike Pompeo also demanded that Whelan be freed: 

“It is unacceptable that Paul Whelan has been denied necessary medical treatment until his condition became dire,” Pompeo tweeted on May 30. “We demand Paul’s release.”

Secretary Pompeo

@SecPompeo

It is unacceptable that Paul Whelan has been denied necessary medical treatment until his condition became dire. We demand Paul’s release.

His family, mainly his brother, David Whelan, has publicly defended him on social media:

“Day 535: #PaulWhelan sentenced to 16 years in a labor camp. U.S. Amb. John Sullivan calls it ‘a mockery of justice,'” Whelan tweeted after the sentence was announced Monday. “We hope the @RealDonaldTrump Administration will now take action to bring Paul home.”

David Whelan@davidpwhelan

Day 535: sentenced to 16 years in a labor camp. US Amb. John Sullivan calls it “a mockery of justice”. We hope the @RealDonaldTrump Administration will now take action to bring Paul home. @SecPompeo @StateSPEHA @StateDept

Russia’s Deputy Foreign Minister Sergey Ryabkov said Monday that Moscow would be entertained for a prisoner swap deal:

We have repeatedly proposed options where it would be possible for those U.S. citizens who are serving sentences in Russia to be exchanged for Russian citizens who are serving sentences on far-fetched and unlawful charges (in the U.S.),” Ryabkov told Ria Novosti. “I have no reason to speculate on what may happen next; these ideas have been offered to the Americans many times.”

Usually, when an American is detained overseas — the U.S. press would go into a massive coverage reporting cycle —  with Whelan, not so much.

6.Global Issues

Michael Every….

Lack of any recovery

(courtesy Michael Every)

 

 

Rabobank: A “V For Vendetta” Recovery?

Submitted by Michael Every of Rabobank

Recent market pricing has been based on expectations of V-shape patterns in key indicators; as such we can expect volatility as we get the wrong kind of Vs. Not a boarded-up Winston Churchill in London, but rather an upsurge in virus cases.

New infections are up in many parts of the US – mostly in states where reopening continues anyway. They are up in ‘ahead-of-the-virus-curve’ Israel – where a senior health official says a second wave is already underway…and yet weddings of up to 250 are now allowed. They are up in Iran and in Tokyo. Moreover, in China parts of Beijing are once again locked down after an outbreak at a major food market – blamed on foreign fish so far. In short, Covid-19 appears stubbornly persistent despite political claims of total or partial victory over it: and this is summer: imagine what winter might look like.

Regardless, efforts keep being made to get the economy moving again. In the UK, for example, the government appears ready to make the “2-metre distance” rule the 1-metre rule – just as the WHO report arguing the reduction in distance is safe is rubbished by other experts. As we keep repeating, voluntary lockdowns are not something one can control for, and the British public are shown to NOT be keen for 2 to become 1.

As an example of that China’s latest data releases have mostly disappointed. New home prices were up 0.5% m/m, as that epic bubble shows yet another mini-leg higher. However, in the actual economy we saw industrial production up only 4.4% y/y (vs. 5.0% expected, and despite steel and cement output climbing to a new record high); retail sales -2.8% y/y (vs. -2.3%); property investment -0.3% y/y (vs. -0.8%, the only ‘good news’ aside from unemployment dropping from 6% to 5.9%, which is not a series the market takes seriously); and fixed asset investment -6.3% y/y (vs. -6.0%). In short, even with a ‘build it and they will come’ attitude, and even with the virus “having been beaten”,it still looks like China’s Q2 GDP will be negative y/y.

Don’t expect an economic V to follow either. Bloomberg is running a story titled “One-Third of US Job Losses Are at Risk of Becoming Permanent”. The Fed’s Powell already alluded to this, which helped prompt a market sell-off on Thursday that was immediately reversed by misplaced optimism on Friday. Yet imagine what high structural unemployment on top of our current unfair asset-rich, income-poor global paradigm is going to look like. Think we face a shrinking centre, declining middle-class, political polarisation, and populism now? Add millions of people whose jobs just disappeared with no cash cushion to see them through to retraining for work in a new, worse-paid sector about to be flooded with applicants. Do that and you have to imagine another ‘wrong kind of V’: the movie “V for Vendetta”. Unless you really think everyone is going to be sat at home day-trading; or that governments are going to keep up a WW2 level of spending for at least another 18 months. Either way it’s lower for longer forever on rates until we eventually reach the tipping point where inflation is V-shaped. Yet that’s a political story, and David vs Goliath for the moment.

That’s not to say slingshots are not being prepared. One needs to see the link between these kind of domestic problems and the international arena: as Klein and Pettis argue in their new book “Trade Wars are Class Wars”. In short, inequality at home and trade surpluses/deficits run internationally, and subsequent trade tensions, are always two sides of the same coin.

Is it pure coincidence then that the South China Morning Post reports “Beijing can expect more concerted efforts against it from the US, Australia, Britain, Canada and New Zealand”, as the Five Eyes group coalesces into a new coalition, which other recent actions show also involves India, Japan, Vietnam, and perhaps Indonesia. (A potential ‘Mahan’ grouping I have been flagging for some time.) Perhaps. But it’s ‘useful’ coincidence.

None of this virus, economic data, or geopolitical backdrop is bullish EM, except perhaps for Mexico (which is bolted on to the US via the USCMA). Neither is it bullish risk. Instead, it still says long USD strategically, if not tactically, and long bonds, and long duration. Yet we cannot forget that central banks are determined to see ‘the right kind of V’ and will do whatever it takes to get one…even when it isn’t actually possible.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

BRAZIL/CHINA/THE GLOBE/CORONAVIRUS/UPDATE

China Blames Imported Salmon For Biggest COVID-19 Cluster Since February, Major Indian City Revives Lockdown: Live Updates

Summary:

  • Chennai announced Monday that it’s returning to lockdown amid a resurgence of infections
  • China blames outbreak on imported salmon
  • Security checkpoints and other measures return to parts of Beijing
  • 90k Chinese undergo mandatory testing
  • China uncovers biggest cluster since February
  • Official warns risk of resurgence is high
  • World nears 8 million case mark
  • Brazil surpasses UK death toll; now second only to US
  • 23 US cases see new infections climb
  • UK allows many retailers to reopen for first time in 3 months

* * *

Update (0815ET): Chennai, one of India’s largest cities with some 15 million residents, plans to reimpose lockdown measures on Friday as India sees a roaring spike in new cases, AFP reports.

A lockdown will be reimposed Friday on some 15 million people in the Indian city of Chennai and several neighboring districts, state officials said, as coronavirus cases surge in the region.

For more coronavirus news, visit our dedicated page.

“Full Lockdown from 19th for Chennai, Thiruvallur, Chengalpet & Kanchipuram districts,” the Tamil Nadu state government tweeted Monday.

It will be in place until the end of June.

Indian officials have gradually lifted their restrictive lockdown measures over the past few weeks following a fourth extension announced earlier this month as the number of new cases reported – chiefly in major urban areas like Mumbai and Delhi – daily continues to climb.

* * *

Update (0730ET): Investors are waiting for the latest hospitalization data out of Texas, North Carolina and Arizona, among other states, CNBC’s Meg Tirrell joined “Squawk Box” Monday morning for a brief update.

Here’s how different the new case rates are between different regions of the US.

Earlier on Monday, health officials in China reported 49 new coronavirus cases nationwide, including 36 more in Beijing, as fears of a second wave intensify across Asia, while scientists and doctors in the US, like former FDA director Dr. Scott Gottlieb, warn that the first wave never really ended.

Circling back to China, much of Beijing (the district around the market, plus another 10 in the southwestern part of the city) remains on lockdown Monday evening. Mainland China reported 49 new coronavirus cases on June 14 vs. 57 additional cases on June 13. Meanwhile, 36 new local cases were reported on Monday bringing the total confirmed cases to 79 over the last few days, with eight out of 16 districts in Beijing reporting cases on Monday alone, according to Global Times.

Furthermore, the Chinese CDC warned the genome sequencing shows the Xinfadi food market outbreak stemmed from a “European” source. In addition to the lockdowns, Beijing is also delaying the reopening of entertainment venues and other businesses.

Finally, Reuters reported Monday morning that the 79 cases reported in China over the last 4 days represent the biggest cluster uncovered since February.

“The containment efforts have rapidly entered into a war-time mode,” senior city government official Xu Ying told a news conference over the weekend. He added that nearly 100,000 epidemic-control workers had entered the “battlefield”. At the sprawling Xinfadi market, one of the biggest – if not the biggest – in Asia, thousands of tons of vegetables, fruits and meat change hands each day. A complex of warehouses and trading halls spanning an area the size of nearly 160 soccer pitches, Xinfadi is more than 20x larger than the seafood market in the city of Wuhan where the outbreak was first identified.

The new cases have led to officials in many parts of Beijing to reimpose stringent restrictions like round-the-clock security checkpoints, closing schools and sports venues and reinstating temperature checks at malls, supermarkets and offices.

Residents have been advised to avoid large crowds.

Some districts even sent officials to residential compounds in what they described as a “knock, knock” operation to identify people who had visited Xinfadi or been in contact with people who had.

While none of Beijing’s 16 districts have returned to complete lockdown conditions, the 11 neighbourhoods around Xinfadi, as well as 10 others near another market in the city, have been sealed as 90,000 residents undergo mandatory testing.

* * *

US equity futures initially broke below 3,000 last night after dozens of new coronavirus cases were reported in Beijing and Guangdong Province over the weekend. During a press briefing organized by China’s National Health Commission, Vice Premier Sun Chunlan spooked traders by claiming the risks for a resurgence of the coronavirus in Beijing were “high” due to the outbreak at the Xinfadi seafood market, billed as the largest wholesale market for seafood and meat in Asia. On Saturday, China reported 57 new infections, its largest resurgence in 2 months, before confirming dozens of additional cases on Sunday (remember, cases are always reported with a 24 hour delay).

40,000 Beijing residents are reportedly on lockdown, with at least half of the districts in Beijing reporting new cases. Officials in Beijing blamed flights from India and Bangladesh for carrying more infected individuals (some of them foreigners) to Guangdong, with 14 of the patients confirmed in the province flying from Bangladesh and three from India. Beijing’s warning about a “high” risk of resurgence follows a warning from Saturday when officials warned that the part of Beijing surrounding Xinfadi (situated in the southwestern part of the capital city) had assumed a “wartime posture”, as nearly a dozen neighborhoods were placed back on lockdown.

In total, some 80 new cases were reported in Beijing alone over the weekend.

As we await the latest batch of infection data out of China, the Global Times reported Monday that the closure of Xinfadi “will impact seafood sales worldwide”, and as a result, sales of salmon had already been suspended across China after a sample of the virus was detected on a chopping board owned by a fishmonger selling imported salmon.

The linkage to the imported salmon and the national ban on salmon sales are, of course, bits of political theater to convince the Chinese people that new cases of the virus are tied to foreign sources. Here’s an excerpt from a Global Times editorial published Monday in China.

We must also admit that we still know little about COVID-19. Our knowledge is still limited about where the virus comes from, how it spreads and how COVID-19 patients should be treated.

This determines that when there are still many countries affected by the epidemic, it is impossible for China to completely eradicate the virus. The epidemic may break out from unexpected directions, and we must be able to withstand such situations and respond effectively. What happened in Beijing is very likely not the end of China’s domestic COVID-19 spread.

Moving on from China, we begin the week on the cusp of the latest grim milestone for the international outbreak: With the world still reporting roughly 100k new COVID-19 cases a day, with at least 40k of these coming from Latin America alone, the global tally passed 7.9 million mark Monday. And while roughly half of those, some 3.8 million, have already recovered, another 433,394 have succumbed to the deadly virus.

Yesterday, authorities in Tokyo confirmed they had uncovered the biggest cluster of cases in more than a month. Adding to the alarm, local TV news station FNN reported early Monday that another ~50 cases had been confirmed in Tokyo, the biggest jump since May 5, although the number is roughly equivalent to the number of cases confirmed over the weekend. Of these new cases, approximately 20 were linked to a popular nightlife district in the city.

Those who have been monitoring the rankings for countries with the highest number of COVID-19-linked fatalities might notice a change: As of Monday, Brazil has officially surpassed the UK total for COVID deaths, moving into second place behind only the US.

After its latest update on deaths and new confirmed cases last night, Brazil has counted 43.3k deaths since the outbreak began, and many on the ground have warned that this figure greatly underestimates the true number of deaths. Mexico has also been accused of undercounting fatalities in hotspots like Mexico City.

In the US, roughly half of the states are seeing new cases rise, many alongside hospitalizations. Texas has seen hospitalizations hit record highs, while Florida, NC, SC, Arizona, Nevada and many other states are seeing an increase in new cases reported daily.

Even Georgia, which was heralded for its ability to reopen aggressively without sparking a massive resurgence in new cases, has reported a discomfiting spike over the past few days, according to the NYT.

Meanwhile, as we noted last night, in New York, Gov Cuomo is threatening to shut down Manhattan and parts of the Hamptons if he keeps receiving complaints about COVID-19-related violations. In Tennessee, authorities in Nashville have cited a number of businesses for breaking social distancing rules, including one bar where patrons were packed in shoulder to shoulder.

Kathryn Stanczyszyn

@stanchers

Hundreds queuing outside this morning – they’ve opened the doors ahead of the official 8am start because of demand @bbcwm @bbcmtd

Embedded video

At least one British tabloid seized on the long lines and crowds to warn about the possibility for another flareup.

And in the UK, thousands of retailers reopened Monday after almost three months of lockdown restrictions put in place amid the coronavirus pandemic.

END

 

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

Euro/USA 1.1253 UP .0008 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 /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 107.33 UP 0.060 (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 1.2524   UP   0.0005  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3651 UP .0074 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  MONDAY morning in Europe, the Euro ROSE BY 8 basis points, trading now ABOVE the important 1.08 level RISING to 1.1253 Last night Shanghai COMPOSITE CLOSED DOWN 329.71 POINTS OR 1.02% 

 

//Hang Sang CLOSED DOWN 524.43 POINTS OR 2.16%

/AUSTRALIA CLOSED DOWN 2,18%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 524.43 POINTS OR 2.16%

 

 

/SHANGHAI CLOSED DOWN 29.71 POINTS OR 1.02%

 

Australia BOURSE CLOSED DOWN 2.18% 

 

 

Nikkei (Japan) CLOSED DOWN 744.53  POINTS OR 3.47%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1710.95

silver:$17.17-

Early MONDAY morning USA 10 year bond yield: 0.67% !!! DOWN 3 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.41 DOWN 5  IN BASIS POINTS from FRIDAY night.

USA dollar index early MONDAY morning: 97.14 DOWN 17 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

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And now your closing  MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.54% DOWN 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.01%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.56%//DOWN 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,44 DOWN 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 88 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.44% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.88% 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 MONDAY

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

Euro/USA 1.1264  UP     .0018 or 18 basis points

USA/Japan: 107.41 UP .146 OR YEN DOWN 14  basis points/

Great Britain/USA 1.2584 UP .0034 POUND UP 34  BASIS POINTS)

Canadian dollar DOWN DOWN 51 basis points to 1.3627

 

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The USA/Yuan,CNY: AT 7.0909    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0834  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.86 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from FRIDAY at 0.69 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.43 DOWN 3 in basis points on the day

Your closing USA dollar index, 97.08 DOWN 24  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 MONDAY: 12:00 PM

London: CLOSED DOWN 40.25  0.66%

German Dax :  CLOSED DOWN 19.06 POINTS OR .16%

 

Paris Cac CLOSED DOWN 11.30 POINTS 0.24%

Spain IBEX CLOSED DOWN 12.60 POINTS or 0.17%

Italian MIB: CLOSED UP 117.55 POINTS OR 0.60%

 

 

 

 

 

WTI Oil price; 35.79 12:00  PM  EST

Brent Oil: 38.95 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    70.09  THE CROSS HIGHER BY 0.35 RUBLES/DOLLAR (RUBLE LOWER BY 35 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.44 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 :  36.86//

 

 

BRENT :  39.69

USA 10 YR BOND YIELD: … 0.71..up one basis point…

 

 

 

USA 30 YR BOND YIELD: 1.46..down one basis point..

 

 

 

 

 

EURO/USA 1.1311 ( UP 66   BASIS POINTS)

USA/JAPANESE YEN:107.36 UP .085 (YEN DOWN 9 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.75 DOWN 57 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2588 UP 67  POINTS

 

the Turkish lira close: 6.8423

 

 

the Russian rouble 69.68   DOWN 0.06 Roubles against the uSA dollar.( DOWN 6 BASIS POINTS)

Canadian dollar:  1.3578 DOWN 1 BASIS pts

 

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

 

The Dow closed UP 157.62 POINTS OR 0.62%

 

NASDAQ closed UP 137.21 POINTS OR 1.43%

 


VOLATILITY INDEX:  35.04 CLOSED DOWN 1.05

LIBOR 3 MONTH DURATION: 0.321%//libor dropping like a stone

LIBOR/OIS//: 0.255%

TED SPREAD//(3 MONTH TREASURY VS LIBOR)  = 0.153%

 

USA trading today in Graph Form

Stocks Jump, Dollar Dumps As Fed Non-News Trumps Second-Wave Virus Fears

Disappointing China macro data, a “very serious” second wave virus breakout in Bejiing (and Guangzhou), and increasing concerns about the rise in US cases across several states… all led to some serious selling overnight with Small Caps down 5% and Dow futures down over 1000 points from Friday’s cash close…

But then Europe opened, US opened, Florida’s COVID case rose very slightly less than the 7 day average, and The Fed issued a press release saying exactly nothing new and algos went wild with FOMO… Dow futures soared over 1350 points off the lows…

USD dived as gold, HY, and stocks all popped on The Fed’s latest announcement which was entirely old news:

As @knowledge_vital noted so pointedly:

“The Fed’s 2pmET announcement seems unnecessary as they just repeated what the SMCCF was supposed to be doing all along, unless officials saw prices off steeply this morning and were looking to prevent a larger downdraft in markets.”

The zombification of America is about to accelerate…

 

 

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Futures Tumble Below 3,000 After China Warns Of “High Virus Resurgence Risk”

On a day when more than 20 US states are seeing a pick-up in cases, Tokyo reported a jump over the weekend and a fresh outbreak in Beijing prompted officials to close a market there, futures are tumbling, with Eminis down more than 40 points to 2,980 the lowest level since the start of June.

The drop follows renewed fears of a second coronavirus wave which massacred shares on Thursday before a modest rebound Friday.

But the trigger for tonight’s drop appears to have come out of China, which reported 49 new cases of COVID19 in China on June 14, including 10 imported cases and 39 local cases. 36 local cases were diagnosed in Beijing and 3 in Hebei province, according to the National Health Commission, with China’s Vice Premier Sun Chunlan spooking traders saying that the risks are high for Beijing’s coronavirus resurgence to spread as all cases are related to Xinfadi wholesale market where a large population has visited, according to Xinhua.

As reported yesterday, Beijing shut a major food market and imposed lockdown restrictions on residential areas nearby after dozens of people associated with the wholesale market were tested positive for coronavirus.

Additionally, the Global Times reported that 17 out of 19 new imported coronavirus cases registered on Saturday came from South Asia, Chinese health authorities said Sunday, a sharp spike which analysts said indicates that loosening restrictions and worsening contagion in the region poses a danger to the country’s domestic situation. The 17 patients were reported in South China’s Guangdong Province, with 14 flying from Bangladesh and three from India.

The 14 patients and the three asymptomatic carriers arrived in Guangzhou on China Southern Airlines flight CZ392 from Dhaka to Guangzhou on Thursday, which prompted the Chinese aviation regulator to suspend the route for four weeks from June 22 in accordance with the latest policy.

“The risk is that, globally, we get a second wave,” said Chris Iggo, the chief investment officer for core investments at AXA Investment Managers, quoted by Bloomberg. “Now is the time to have that long-duration bond exposure in the portfolio.”

In FX, the yen edged up 0.1% to 107.29 per dollar; the offshore yuan slipped 0.2% to 7.0890 per dollar, and the Bloomberg Dollar Spot Index rose 0.1%.

The yield on 10-year Treasuries fell about three basis points to 0.67%, and is again approaching the April lows of 0.54% after printing shy of 1% two weeks ago amid a burst of reopening hopes that sent value stocks surging.

end

b)MARKET TRADING/USA/MORNING

Dow Dumps Below 25k, Gold Sold

…but, but, but, what about the all-knowing retail buyers?

And at the same time gold is being dumped…

END
THIS AFTERNOON:
Finally helicopter money arrives as the Fed officials will start buying corporate debt
(zerohedge)

Stocks Soar Into Green After Fed Announces It Will Start Buying Corporate Debt

So its buy the rumor, buy the news, and buy the press release about actual buying, and now buy another press release...

US equity markets have roared higher in the last few months after The Fed basically promised to backstop every shitty credit company in America and zombify the US economy.

And on the back of yet another press release at 2pm that the Fed will now finally start buying corporate bonds – as it had announced three months ago – in addition to buying between $1-$2 billion in ETFs each week, US equity markets all spiked into the green for the day…

… the Nasdaq ramping above Friday highs and back to its old all time highs…

… and junk bonds surging.

Fed press release:

The Federal Reserve Board on Monday announced updates to the Secondary Market Corporate Credit Facility (SMCCF), which will begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers.

As detailed in a revised term sheet and updated FAQs, the SMCCF will purchase corporate bonds to create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds. This index is made up of all the bonds in the secondary market that have been issued by U.S. companies that satisfy the facility’s minimum rating, maximum maturity, and other criteria. This indexing approach will complement the facility’s current purchases of exchange-traded funds.

The Primary Market and Secondary Market Corporate Credit Facilities were established with the approval of the Treasury Secretary and with $75 billion in equity provided by the Treasury Department from the CARES Act.

The Fed purchases are capped at about 10% of total bonds outstanding:

Limits per Issuer/ETF: The maximum amount of instruments that the Facility and the PMCCF combined will purchase with respect to any eligible issuer is capped at 1.5 percent of the combined potential size of the Facility and the PMCCF. The maximum amount of bonds that the Facility will purchase from the secondary market of any eligible issuer is also capped at 10 percent of the issuer’s maximum bonds outstanding on any day between March 22, 2019, and March 22, 2020. The Facility will not purchase shares of a particular ETF if after such purchase the Facility would hold more than 20 percent of that ETF’s outstanding shares.

ii)Market data/USA

iii) Important USA Economic Stories

Covid 19 has spread to 60 plants sparking fears of uSA food shortages..a 2nd wave possible??

COVID Spreads To 60 Plants, Sparks Fear Of US Food Shortages As 2nd Wave Strikes

A new report reveals the severity of COVID-19 spreading beyond meatpacking plants to food processing facilities across the US.

The Environmental Working Group (EWG) outlines this new reality of how the fast-spreading virus has infected 1,200 food processing workers at 60 plants from mid-March to early June.

To compile these statics, EWG reviewed news articles of outbreaks and noticed many of the infections were seen at Kraft Heinz, Birds Eye, Conagra, and the Campbell Soup Company’s Pepperidge Farm, as well as those of smaller plants, like Fairmont Foods and Ruiz Foods.

Food Processing Plants With the Most Reported COVID-19 Cases

 

h/t EWG

Bloomberg elaborated on EWG’s findings and said: “These are the first national numbers of their kind. The advocacy group compiled its figures using local media reports because there are no federal agencies reporting the data. The true total is almost certainly higher.” 

Bakers, dairy workers, fruit and vegetable packers, many of whom are deemed “essential” have worked through the pandemic, sometimes laboring in tight quarters.

“At our workplace, we were not ready for this virus. We didn’t talk about it. We didn’t know about it,” Paula Zambrano,61, who packs fruit at Borton & Sons in Yakima, Washington. She was so concerned back in April of an outbreak at her plant that she stayed home for three weeks. Low on money, she returned to work to support her family.

“People are infected, and they come to work. They keep quiet about it,” Zambrano said. “We live from our work. We are surviving from our wages. If we have children, how will we feed them?”

In a piece titled “”Cold, Damp & Crowded” – How America’s Meat Plants Are Breeding Grounds For Covid” — we described how meat processing plants had become a breeding ground for the virus — and with EWG’s report this week, similar conditions have been seen across many other types of food processing plants.

EWG estimates at least 1.8 million Americans work in food processing plants. Many of the workers are low-income and minority, their labor in tight workspaces make them susceptible to infection.

America’s food suppliers have seen some of the worst outbreaks of the virus. Dozens of folks at meatpacking plants across the country have died with thousands infected. The ongoing human tragedy at meat and food processing plants expose the vulnerability of the food supply chain.

To solve this issue, we noted how meat processing plants should “unleash a new wave of automation across plants to ease labor and health woes.”

With a health crisis still not abating at many plants — another problem has developed, that is, food shortages and skyrocketing food inflation.

The latest food at home index increased 4.8% over the last 12 months, with all six major grocery store food group indexes rising over that span.

The index for meats, poultry, fish, and eggs rose 10% over the last year, its most significant 12-month increase since the period ending May 2004.

second coronavirus wave could spell disaster for America’s food supply chain. At the moment, the stock market is selling off, with investors nervous that a reemergence of the virus is ahead.

end

CORONAVIRUS UPDATE/SATURDAY

Florida Reports Another Record Jump In New Cases As Global COVID-19 Count Nears 8 Million: Live Updates

Summary:

  • Nevada reports 3rd-highest jump; NY reports latest numbers
  • LatAm accounted for 40% of cases reported Friday
  • Florida reports record jump for third day in a row
  • 23 states across US seeing case numbers rise
  • Latin America and US vie for global coronavirus leader
  • Beijing reimposes lockdowns in some areas after cluster discovered
  • Russia reported another 8k+ jump in cases
  • EU signs vaccine deal with AstraZeneca
  • Gilead strikes deal to distribute remdesivir in Europe

* * *

Update (1400ET): Once again, Beijing’s favorite English language mouthpiece (at least on Twitter) is chiming in to play down China’s latest outbreak, while castigating the US.

Hu Xijin 胡锡进

@HuXijin_GT

New outbreak has appeared in Beijing. Though it’s much milder than current epidemic in the US, Beijing is mobilizing quickly to control it, but the US is reopening despite the pandemic. It’s almost certain that the US will have a new wave of severe epidemic.

Meanwhile, according to the WHO, infections in Latin America now exceed 1.4 million, more than a quarter of the global total, while LatAm accounts for 40% of all new cases.

Mexico reported 5,222 cases on Friday, Chile announced 6,754 and Argentina had 1,391, all new highs. Chile registered its highest daily death toll to date, with 222. Brazil, the largest country in Latin America, has almost four times as many cases as any other country in the region.

Italy registered 346 new cases Saturday, compared with a daily average of 274 this month through Friday. The country had a one-day peak of 6,557 on March 21.

New York reported 32 deaths, “the lowest so far,” Governor Andrew Cuomo said, as new cases inched higher by 0.2%, in line with the seven-day average.

Nevada health officials meanwhile reported 270 new cases, bringing the statewide total to 10,946 positive cases; 463 people have died from the virus statewide.

news98@news98info

NEW: Nevada reports third-highest jump in COVID-19 cases with 270 in 24-hour period, more than 6K tests conducted Friday https://www.news98.info/new-nevada-experiences-third-highest-bounce-in-covid-19-instances-with-270-in-24-hour-interval-greater-than-6k-checks-carried-out-friday/ 

NEW: Nevada experiences third-highest bounce in COVID-19 instances with 270 in 24-hour interval,…

news98.info

Health officials said they’ve conducted at least 235,500 tests statewide.

* * *

Update (1130ET): Minutes after publishing this post, we’re already adding the day’s first withering stat: Florida has reported yet another record jump in newly confirmed cases, reporting a 3.6% jump statewide, compared with the 7-day average of 2.1%.

For those who haven’t been closely following the situation, this is the third day in a row that Florida has reported a record jump in cases, and Saturday’s number (remember, they’re reported with a 24 hour delay, so these are cases confirmed on Friday), at 2,581, blows away the last daily record (which, again, was reported yesterday).

Saturday marks the 10th day out of the past 11 that Florida has confirmed more than 1,000 new cases, a phenomenon blamed on the loosening social distancing restrictions across the state. Most of the cases are coming from the southern part of the state, with Miami-Dade County being one of the standouts.

Florida now has 73,552 confirmed cases and 2,925 deaths linked to COVID-19, according to the latest numbers released by the health department on Saturday. In addition, the state confirmed 38 coronavirus-related deaths over the past day, including 13 in Miami-Dade County, seven in Broward and nine in Palm Beach County, Local10 reports.

Source: NYTimes

Gov Ron DeSantis said that even though there are more cases, fewer people are going to the hospital, including in Miami-Dade. Asked Thursday if the state’s reopening plans could be rolled back because of the numbers, the governor pointed to the increase of testing and blamed it for the majority of the jump.

“As you’re testing more you’re going to find more cases and most of the cases are subclinical cases,” DeSantis said. “And we expected that from the beginning. We’re doing 30,000-plus tests a day in terms of results on average…As people have been getting back to work, I think employers have told folks you should get tested, so we’re starting to see at our test sites a much younger demographic. So you do see 98% test negative but you do see some cases…usually no clinical consequence.”

Statewide, Florida reports having completed over 1.3 million tests for COVID-19, with 5.4% coming back positive.

* * *

No matter how many times Larry Kudlow insists the US won’t resort to another round of lockdowns under any circumstances, Investors will inevitably pay close attention to the infection and hospitalization numbers out of the country’s second class of ‘hot spots’: California, Florida, Texas, Arkansas and the roughly 20 other states where infection rates are climbing.

Granted, some of these states are arguing that the increase in testing rates is the primary driver of the higher confirmed infection numbers In Portland, where Gov. Kate Brown – who once threatened to take away a small business owner’s children if they dared defy the lockdown – has announced a one-week “pause” in the state’s reopening plans...even as she insists the increase in testing is mostly responsible for the spike.

At this point, the inconsistent messaging coming from Democratic governors supports critics allegations that decisions to reimpose lockdowns, or delay the process of reopening, appear to be politically motivated. Though in Houston, it appears officials’ concerns about the city being “on the precipice” of another serious outbreak are (somewhat) justified.

As “CBS This Morning” reported Saturday, “there are disturbing signs that the grip of the deadly coronavirus pandemic is tightening in some parts of the US as at least a dozen states see an uptick in COVID-19 cases. New virus hotspots are emerging in the South and Southwest, and some states like Texas, Arkansas, Arizona and California are in some areas seeing their largest daily infection numbers yet. Florida and Arkansas have been criticized for reopening some beaches and parks, and failing to enforce social distancing.

Some experts argue that this is the consequence of reopening too early; others dismiss the numbers as merely a short-term rebound that we had already anticipated; and finally, others argue that it’s more complicated than all that, given that Georgia, one of the first states to start aggressively reopening, hasn’t reported the increase seen among several of its neighboring states.

Yesterday, the CDC raised the prospect of another round of lockdowns, even as the White House has categorically dismissed the possibility; meanwhile, a new forecast is projecting 140,000 deaths in the US from COVID-19 by July 4. That’s compared with roughly 112,000 as of Saturday.

The warning isn’t exactly a surprise. During the past week, South Carolina and Florida showed their highest daily number of coronavirus cases yet. Arizona’s average daily cases nearly tripled over the past two weeks. And Texas saw four of its worst days so far in terms of hospitalizations.

In Houston, there is a warning: “People should not take things lightly. Or assume that the virus is under control,” said Houston Mayor Sylvester Turner.

Texas businesses and restaurants – among the first to reopen – could become the first to shut down again.

“I want the reopening to be successful. I want the economy to be resilient,” said Harris County Judge Lina Hidalgo. “But I’m growing increasingly concerned that we may be approaching the precipice – the precipice of a disaster.”

Arizona is reporting more than 1,000 new cases per day, up from fewer than 400 a day in mid-May when stay-at-home orders started to ease.

“I think the question of did we open too soon is a valid one,” said Frank Lovecchio, an emergency medicine doctor in the Phoenix area. He reports seeing a surge of severe cases requiring intubation.

On Friday, North Carolina Gov Roy Cooper implored his citizens to try and help stop the spread after the state reported a record number of new cases in a single day…

“The numbers show that the disease is spreading and that more people need hospital care. This has to be taken seriously,” he said. Utah and Oregon have delayed their reopenings by a week…

“As I’ve said a zillion times: the virus makes the timelines. We don’t make the timelines,” Gov Brown said.

…while in New Jersey, Governors Murphy and Cuomo are celebrating the fact that their states have the lowest rate of spread in the country.

According to the NYT, 23 states are still seeing daily case reports climb.

Worldwide, the number of coronavirus cases reported daily has once again started to climb as Russia and Latin American have emerged as the newest hotspots as the outbreaks in the Europe and at least part of the US have subsided. At last count, the world had nearly 7.7 million confirmed cases, and 426,000 confirmed kills.

Source: BBG

In Europe, EU bureaucrats are already taking steps to secure supplies of still-untested vaccine prototypes as the global scramble to find a vaccine takes on an added urgency as thousands of politicians – including President Trump – find themselves making lofty promises about vaccine supplies that they might not be able to keep.

Bloomberg reports that the EU has signed a deal with AstraZeneca for the pharma giant to supply Europe with as many as 400 million doses of Oxford University’s experimental vaccine candidate – the subject of one of the most closely watched trials in the world – at no profit.

How generous!

In other vaccine news, Dr. Reddy’s Laboratories entered into a non-exclusive licensing agreement with Gilead to manufacture and sell its star experimental COVID-19 treatment remdesivir in 127 countries, including India, even though the verdict on its effectiveness remains elusive.

News of the deal comes as Germany reports 572 new coronavirus cases Saturday morning, its highest daily tally in weeks, bringing the German total to 187,263. That compares with 169 the previous day and almost 7,000 at the peak of the pandemic in late March.

Meanwhile, Russia reported 8,706 new confirmed infections, +1.7%, according to data from the government’s virus response center. Deaths rose by 114 to 6,829. Moscow accounted for 17% of new cases, and 34% of all new cases were asymptomatic. The country has more than 520k confirmed cases.

As we reported earlier, Beijing is locking down a large swath of the southwestern part of the capital city after an outbreak reportedly stemming from a major seafood market and wholesaler.

END

Saturday night:  Riots in Atlanta after a man fell asleep at the Wendy’s drive in. He was intoxicated.  Police tried to arrest the subject who then grabbed Officer Rolfe’s taser and pointed it at him.  Rolfe shot the subject and he died in hospital.. Riots ensued..

(zerohedge)

 

Officer Fired, Police Chief Steps Down, Wendy’s Set Ablaze After Atlanta Shooting

Atlanta PD officer Garrett Rolfe has been fired following the deadly Friday night shooting of Rayshard Brooks, while another officer, Devin Bronsan, has been placed on administrative leave, according to 11 Alive – citing an Atlanta Police spokesman just after midnight on Sunday.

 

Officer Garrett Rolfe, Officer Devin Bronsan

Meanwhile, Atlanta Police Chief Erika Shields will be stepping down following the incident.

Brooks, who had fallen asleep at the wheel at a Wendy’s drive-thru, was shot by an officer after he grabbed one of their Tasers and pointed it at them as he was running away. He died later that evening at Grady Memorial Hospital.

In response to the shooting, protesters set the Wendy’s on fire:

DJ Kam Bennett

@KameronBennett

Atlanta ain’t having it…. they burnt that Wendy’s down Quick.

Embedded video

Atlanta: Wendy’s on University Ave. on fire as protests have taken over the interstate in response to the killing of Rayshard Brooks by police on Friday.

Police chief Erika Shields has reportedly resigned following weeks of protest. Video: CBS affiliate

Embedded video

CNN crew was attacked by peaceful protesters at the scene:

Kyle Kashuv

@KyleKashuv

Wow. CNN crew attacked by ‘peaceful protestors’ at the Wendy’s in Atlanta.

Embedded video

The group then began to set fires nearby:

~Marietta✌@_MariettaDavis

After setting Wendy’s is on fire, the protesters/rioters now set other small fires & looting a gas station.
Fire department is not responding due to unsafe conditions & the crowd is still growing.

Embedded video

 

The latest police killing of an “unarmed” black man unfolded Friday night in Atlanta, and footage released Saturday afternoon is already causing a major uproar in the city. Activists are demanding that Atlanta’s police chief Erika Shields, whose statements to the press and willingness to push deescalation tactics made her a media darling during the unrest that followed the killing of George Floyd.

Though the only details of the incident so far involve grainy cellphone camera footage, it’s clear in the video that one of the two APD officers involved in the incident shot a suspect in the back as he was running away after wresting one of the officer’s tasers away from him.

The Georgia NAACP claimed the APD needs “a serious overhaul” and argued that the deceased suspect, later identified as Rayshard Brooks, 27, was killed for “sleeping” (not for attacking two officers and stealing one of their weapons)>

Georgia NAACP@Georgia_NAACP

@KeishaBottoms, @Atlanta_Police needs a serious overhaul. The continuation of these kinds of actions require immediate resolution. Instead of seeing an improvement, it continues to happen day after day.

Chief Shields must be relieved immediately. https://www.11alive.com/article/news/crime/man-critically-injured-after-being-shot-by-atlanta-police-during-traffic-stop/85-b7faf368-0315-4db5-b863-4d6a4c140784 

Man critically injured after being shot by Atlanta Police during traffic stop

The incident at a Wendy’s on University Avenue sparked a protest at the scene.

11alive.com

The footage posted to twitter earlier shows Brooks successfully wrestle both officers to the ground before running off with the taser. At the end of the video, several gunshots ring out, though the shooting of Brooks isn’t shown.

The_Real_Fly@The_Real_Fly

ATLANTA PD SHOOT AND KILL AN UNARMED MAN

Embedded video

Meanwhile, protesters showed up Saturday to Washington DC’s “Black Lives Matter” plaza where smaller protests have been ongoing every day. Saturday marked the 16th day of demonstrations.

Here’s what happened according to the Washington Post: the ADP received a call and was dispatched to a local Wendy’s Friday night following a complaint about a man parked and asleep in the drive-through, according to a preliminary report from the Georgia Bureau of Investigation. The situation escalated when the two officers tried taking Brooks, 27, into custody. He resisted, and the situation quickly became violent.

Shields

Atlanta activists wrote Saturday that “ADP shot another unarmed black man in South Atlanta. Details are still coming and our rage continues.”

The GBI’s preliminary report told a different story.

“During the arrest, the male subject resisted and a struggle ensued,” GBI said. “The officer deployed a Taser. Witnesses report that during the struggle the male subject grabbed and was in possession of the Taser. It has also been reported that the male subject was shot by an officer in the struggle over the Taser.”

Brooks died Saturday morning at a local hospital after emergency surgery.

Brooks’s death marks the 48th officer-involved shooting the GBI has been asked to investigate since the start of 2020. Ahmaud Arbery was also shot and killed in Georgia, though his assailants – who will all stand trial for murder – weren’t cops.

Once the GBI completes its independent investigation, the case will be turned over to the Fulton County District Attorney’s Office for review. Later on Saturday, the Fulton County DA’s office said it had already launched “an intense, independent investigation of the incident” and that personnel were dispatched to the scene immediately after the shooting. One local outlet said both officers involved have been removed from duty pending an investigation.

END
truck drivers refuse to deliver goods with defunded or disbanded police
(zerohedge)

Truck Drivers Reject Delivery To Cities With Defunded Or Disbanded Police

A popular trucking app called CDLLife” polled its users Thursday and found an overwhelming number of drivers will not “pickup/deliver to cities with defunded/disbanded police departments.”

On Saturday afternoon, 1,212 users of the trucking app responded to the poll, with 79% saying they will not deliver loads to lawless cities.

 

h/t CDLLife app 

Truck drivers also voiced their opinions on the comment section of the poll. After reviewing their concerns, we found several notable responses:

“As American Truck Drivers I feel we have the power to Stop all this that’s going on! Park you Truck until the RIOTS STOP HAPPENING!,” app user Albert T Pearl wrote. 

“Unless my company starts allowing me co carry my gun in truck I won’t do it,” Robert Adkins wrote. 

“Fuck those liberal assholes,” David Simpson wrote. 

“No cops= more Violence and targeted robbing,” Scott Cuellar wrote. 

“No I will not deliver to an area with a disbanded police department. My life matters and i do this for my family,” wrote Casnpaper.

“I just turned down a load from Miami to st paul paying 3800 my life matter more than any other,” wrote Carlos Barreras.

“Nope no load is worth my life,” wrote Eddie Bean.

The poll comes after weeks of social unrest across the country. It has since sparked a political movement among radical leftists who seek to defund and disband police departments. We noted last week the Minneapolis City Council voted to replace the police department with “community-led” model:

“The City of Minneapolis just took another step – albeit a small one – toward the “police-free future” that BLM activists, denizens of the CHAZ and the Democratic politicians who pander to them envision, as the “defund the police” movement gains momentum across the country. On Friday afternoon, members of the Minneapolis City Council who previously voted in a veto-proof majority to try and abolish the department again voted to take the next step toward pushing an agenda item that has virtually no chance of ever becoming a reality.

According to the latest vote, the council will begin a year-long process to gather input from various community stakeholders about what a future ‘public safety department’ might look like.”

Already a dangerous profession, truckers, who value their lives more than the cargo they haul, have been heard on CDLLife app calling for a nationwide moratorium of delivering goods until the riots stop. To understand why truckers are rejecting deliveries to certain cities — the shocking videos below detail the “Mad Max” situation across major US metros:

Adam Jukkola@Jukkaloop

I 35W protesters in Minneapolis open the back of a moving UPS truck and start looting the packages. 10:20pm. @kare

Embedded video

LaFievreJaune@fievre_jaune

Did you forget to mention those guys were looting the truck?

Embedded video

Protesters even looted containerized freight on a train

Silver Report Uncut™ 🇺🇸@silver_report

This is America, They have begun robbing moving trains in packs of hundreds .

Embedded video

Truck drivers have been on the frontline of the global pandemic. These folks move 68% of all freight tonnage in the US. So if riots and defunding police cause drivers to reject loads, and even form a protest of their own — then say hello to domestic supply chain disruptions — or better yet, no V-shaped economic rebound this year.

end
More defaults by mall owner CBL
(zerohedge)

Default By Mall-Owner CBL Sparks Another Manic-Bid By Robinhood Daytraders

As we have previously noted, a bearish trade emerged on Wall Street several years ago and received the moniker “The Next Big Short.” The trade was simpleshortshopping malls by going long default risk via CMBX 6 (BBB- or BB) or otherwise shorting the CMBS complex. As we describe below, the first major US shopping mall operator could be on the brink of bankruptcy as it would suggest the commercial real estate bust is underway.

Mall operator CBL & Associates fired a warning shot on June 5 that said tenants across 108 of its properties paid just 27% of April’s rent. Many retailers skipped out on rent payments during the COVID-19 lockdowns, forcing CBL to default on a secured credit line, significantly raising bankruptcy risk. 

The Chattanooga, Tennessee-based commercial real estate company, owns 108 properties in the Northeast, Southeast, and Rust Belt, breached a covenant on its $1.185 billion credit facility after recently over-drawing on the credit line, which is backed by 17 malls and three other commercial properties.

CBL properties 

Administrators at the credit facility notified CBL about default but have yet to expedite maturity on the debt. CBL has said that it is seeking a waiver.

The mall operator also skipped an $11.8 million interest payment due on its 2023 unsecured bonds on June 1, though it has chosen to use the one month grace period.

If CBL files for bankruptcy, it could unnerve commercial real estate investors by suggesting a bankruptcy wave of mall operators has begun.

According to the International Financing Review (IFR), CBL mall properties have been chopped up and packaged into CMBSs. At least $1.7 billion in CMBS exposure across 24 loans of the mall operator, with $937 million of these loans with special servicers and two loans in foreclosure.

About half of CBL’s CMBS loans are tracked via CMBX indexes, with the series 6 having the most significant exposure at $447 million.

“Given the severity of the COVID downturn, coupled with its high levels of indebtedness, CBL may face difficulty in meeting its debt obligations,” a Wells Fargo report said this week.

With CBL on the brink of bankruptcy, Robinhood traders have been piling into the stock since March. Accounts holding CBL stock nearly doubled in the last three months, from 8,100 holders (mid-March) to 15,300 (June 12).

CBL should take note of what’s happening with the Hertz bankruptcy, issue a bunch of stock and drain the equity, along with all the Robinhood daytraders in it.

end

As expected Class 8 heavy duty truck orders crash a huge 62.5% in May

(zerohedge)

Class 8 Heavy Duty Truck Orders Crash 62.5% In May To Lowest Levels Since 2011

Just as we noted about April’s numbers, the misery in Class 8 heavy duty truck orders continues.

Still struggling with the remnants of an order backlog that started almost two years ago with record orders in August 2018, the industry was unable to find an equilibrium prior to the coronavirus pandemic. Orders were sluggish and we noted numerous trucking companies that closed up shop altogether in 2019.

After a 73% crash in April, Class 8 orders once again plunged 62.5% in May, to their lowest sales levels since 2011. Sales came in at just over 9,000, according to Transport Topics.

Don Ake, vice president of commercial vehicles at FTR, tried to look at the bright side: “It’s not a horrible number. It’s a fair number under bad conditions. It is going to be a long, slow climb back.”

“We went into 2020 with very high inventories,” Ake said. YTD sales for Class 8 trucks were 69,379, which is down 37.5% from 2019. 

Dan Clark, head of BMO Transportation Finance, says a V-shaped recovery isn’t likely: “Given that the industry is still wrestling with the hangover of a near-record two-year stretch of heavy-duty truck sales, which is now compounded by lower than previously expected economic activity for the next year or two, we aren’t expecting to see a V-shaped recovery in Class 8 sales.”

He believes that orders will remain “choppy” during the second half of 2020, especially heading into the election.

Steve Tam of ACT Research took a longer term view: “These trucking companies have to assume I’m here today, I will be here tomorrow and so will my business. A lot of what we are dealing with now is just noise. It’s another cycle in the industry, although a very different cycle, with a very different catalyst. But a cycle nonetheless. So in some ways they have to look past the short term to what the more strategic picture is. So they have to continue to invest in the business if they want it to continue, and, hopefully, grow as well. So they are taking the long view.”

As for individual company performance, Transport Topics reported:

  • Volvo Trucks North America earned an 11.8% share with 1,084 sales, or 60.2% fewer compared with a year earlier.
  • Mack Trucks posted a 9.6% share on 879 sales, or 51.5% fewer compared with a year earlier.
  • Kenworth Truck Co. earned the second-highest share, 13.9%, with 1,277 sales, or 65% fewer compared with a year earlier.
  • Peterbilt Motors Co. notched a 12.2% share with 1,119 sales, or 71% fewer, the biggest decline, compared with the 2019 period.

Recall, April’s numbers were the lowest since FTR began tracking orders in 1996.

Many companies canceled or delayed new orders as demand, measured by the ratio of loads to trucks, fell 66% in April.

TFI’s Chief Executive Alain Bédard said in an April 22 call: “Everything has been canceled.” 

END

The Covid 19 lockdown has caused a huge 41% collapse in black owned businesses in the uSA

(zerohedge)

COVID-19 Lockdowns Spark 41% Collapse In Black-Owned Businesses In America

Widespread lockdowns across the country shuttered many small businesses for months. Stores, factories, and many other companies closed due to government-enforced public health orders or because of a rapid shift in demand. A new report from the National Bureau of Economic Research (NBER) provides the first analysis of lockdown impacts on small businesses, makes a shocking discovery that African-American owned businesses plunged by 41%.

NBER commissioned the new report titled “The Impact of Covid-19 on Small Business Owners: Evidence of Early-Stage Losses from the April 2020 Current Population Survey” — shows active business owners in the US declined by 3.3 million or 22% from February to April because of “unprecedented” economic impacts of lockdowns. The decline in small business owners was the “largest on record,” and losses felt across all industries.

The report said African-American businesses were hit the hardest, recorded a 41% decline of black owners from February to April. Next were Latino owners, fell 32%, and Asian business owners dropped by 26%.

Immigrant business owners plummeted 36%, and female-owned businesses fell by 25%. These findings of early-stage losses to small businesses, so far, outlines how minority businesses were crushed during the lockdowns.

“The negative early-stage impacts on minority- and immigrant-owned businesses, if prolonged, may be problematic for broader racial inequality because of the importance of minority businesses for local job creation,” said the report’s author, Robert Fairlie of the University of California at Santa Cruz Department of Economics.

For readers, it’s essential to understand that nearly half of all US jobs originate from small businesses. This all suggests the quick economic recovery narrative pitched by the Trump administration and Wall Street is bullshit. ​​​​​​

END
The truth behind the “rise” in Covid 19 cases.
(David Stockman)

Stockman Calls “Bulls**t” On The Latest COVID-19 Fear-Mongering About Spikes In Texas, Arizona

Authored by David Stockman via Contra Corner blog,

Dr. Fauci and the Scarf Lady are not the only Virus Patrol miscreants spreading the Covid Hysteria and thereby empowering the authorities to keep suffocating everyday economic life and personal liberty in America.

In fact, there is a whole camarilla of current and former health officials, purported disease experts, all-purpose talking heads and other Washington apparatchiks who continue to appear on mainstream media, peddling the hoary tale that coronavirus is some kind of horror flick monster: It purportedly just keeps springing from its Lockdown grave – whack-a-mole fashion – the instant officialdom relaxes its quarantine edicts.

Call these people the “groomers” of Big Pharma, and their job is to keep public fears on the boil so that the demand for high-priced treatments, cures and preventative vaccines becomes overwhelming. And given that the Covid is now rapidly succumbing to the exhaustion of its infection cycle and the summertime sun, their exact current mission is one of bridging the gap.

That is, finding and publicizing local outbreaks and “hot spots” during the months just ahead so that the Virus Patrol will remain in full control of policy and the narrative until the Covid makes its forecasted second wave rebound during next fall’s flu season.

After all, they desperately need these hot spots to keep the aggregate narrative alive because it is visibly collapsing by the day.

Back in early May, for instance, the NYT breathlessly carried a leaked study from the Trump Administration that projected a massive surge of new infections and a near doubling of daily death rates by early June relative to levels than extant:

As President Trump presses for states to reopen their economies, his administration is privately projecting a steady rise in the number of coronavirus cases and deaths over the next several weeks. The daily death toll will reach about 3,000 on June 1, according to an internal document obtained by The New York Times, a 70 percent increase from the current number of about 1,750.

The projections, based on government modeling pulled together by the Federal Emergency Management Agency, forecast about 200,000 new cases each day by the end of the month, up from about 25,000 cases a day currently.

The numbers underscore a sobering reality: The United States has been hunkered down for the past seven weeks to try slowing the spread of the virus, but reopening the economy will make matters worse.

Needless to say, that one went down the memory hole ages ago (i.e. around Memorial Day). As of June 10, in fact, actual daily averages for the month to date were:

  • 827 deaths per day, representing a 53% decline, not a 70% increase;
  • 20,694 new cases per day, representing a 17% decline, not an 8X increase;

In other words, these Washington modelers (this one was prepared by FEMA) couldn’t hit the broadside of a barn with the antiaircraft guns Chairman Kim uses to dispatch his adversaries. So to keep the Covid-Hysteria alive, they send out the hot spot “groomers”.

On of the most mendacious of these groomers is Dr. Scott Gottlieb, who was the Donald’s first FDA commissioner and is an alleged pedigreed “conservative” with a berth at the American Enterprise Institute to burnish his numerous sinecures with Big Pharma.

Gottlieb is also a CNBC regular, and yesterday, sitting astride a screen crawler which read “Texas reports second day of record hospitalizations”, he was busy promulgating the “hot spot” news about two red states, whose merely semi-craven GOP governors have belatedly attempted to get their economies back in business:

When you look at hotspot regions like Arizona and Texas, they have to be concerned, particularly areas around Houston right now. They could lose control of this very quickly,” says @ScottGottliebMD on balancing re-opening with public health.

We call bullshit!

Gottlieb was peddling a pimple on the elephant’s ass because, apparently, cable TV audiences generally and bubble vision’s especially, were born yesterday. That is, they are infantile victims of recency and confirmation biases and will apparently believe anything served up in a context-free modality.

The truth is, there is nothing worrisome whatsoever going on in Arizona and Texas beyond the fact that the coronavirus started its inexorable spread in these interior states later than on the East and Left coasts, and is therefore cresting slightly later, as well.

But as of June 8, the count of infected cases and WITH Covid deaths in Arizona stood at 27,678 and 1,047, respectively. Those figures a hot spot do not make, nor do they offer any reason for not getting the state’s boot-heel off the economy ASAP.

Relative to the USA as a whole and the New York epicenter, Arizona’s figures per 100,000 population compare as follows as of June 8:

  • Infected cases Arizona: 375;
  • Infected cases USA: 596;
  • Infected cases New York: 1,963
  • WITH Covid deaths Arizona: 14.2;
  • WITH-Covid deaths USA: 32.3;
  • WITH-Covid deaths New York: 126.0;

In other words, Arizona’s mortality rate is less than half of the US average and only 11% of that for New York. So why is it a worrisome “hot spot” by the lights of Virus Patrol shills like Gottlieb?

Indeed, the WITH-Covid mortality rate in Arizona stands at nearly rock bottom, clocking in at at just one-fifth to one-half of the mortality rates in much as European Christendom. To wit, current rates per 100,000 include:

  • Belgium: 83.1;
  • United Kingdom: 60.2;
  • Spain: 58.0;
  • Italy: 56.3;
  • Sweden: 47.5;
  • France: 44.9;
  • Netherlands: 35.3;
  • Arizona: 14.2;

But when context doesn’t matter, of course, any pimple can be depicted as a large boulder. Thus, the number of new cases in Arizona is allegedly soaring, suggesting that the state has jumped the gun letting its citizens out of house arrest too soon.

In fact, during the first 8 days of June, Arizona reported 7,742 new cases – a figure which is sharply higher than the 2,189 new cases reported for the last eight days of April, for example.

But that gain is entirely a function of the testing rate and then some. Thus, during the June 1 to June 8 span, the state reported62,825new tests, implying an infection rate of 12.3%.

By contrast, during April 22 to April 30 the state reported only 15,185new tests (one-fourth of the June figure), implying an infection rate of 14.4%.

So the state is testing a lot more, as it has been instructed to do by Washington, and such accelerated testing is generating a falling infection rate!

And that’s not the half of it. By now there are more than enough antibody tests of different US populations to be reasonably certain that in a state like Arizona with a population of 7.38 million that there have been far more infected cases than the 27,678 cases reported through June 8.

Generally, antibody tests show infection rates of 5-20% in the general population, which would imply total cases – most of which remained asymptomatic or resulted in mild illnesses – of between 370,000 and 1.5 million for Arizona.

So, actually, higher reported cases daily may mean nothing at all as to the current status of the virus among the population. More likely, it actually means that what is already there is being slowly discovered after the fact; it’s stale, irrelevant old news, not an alarming new development, to say nothing of evidence of a hot spot.

Indeed, the latter is a meaningless but loaded term, honed for TV talking points, but is incapable of conveying any meaningful information about context at all. That is, the real test is how does what’s happening with the coronavirus now compare with year-in-and-year-out illness, hospitalization, disease and mortality trends?

Self-evidently, you do not empower the state to put its citizens under house arrest and destroy the livelihoods of millions of workers and tens of thousands of small businesses on account of a bad run of seasonal illnesses that leaves more people than usual home in bed or even heading to the hospital for treatment.

To the contrary, this whole Lockdown Nation thing is about the modern equivalent of the Black Death – the presence of a virulent killer that can takedown the young, the old, the healthy, the sick and all categories between with equal alacrity.

But, again, there is nothing to support that Grim Reaper notion in the data, and most especially not the “hot spot” flavor of the week in Texas and Arizona.

The mortality rate from all causes for Arizona for the four months from January through the end of April (latest available) is shown below.

Naturally, the total mortality rate surmounts the cause of death attribution and coding issues; and it means that unless these total death rates are significantly elevated from the norm, then nothing unusual – or at least worthy of drastic quarantine policies–is actually going on.

On a per 100,000 basis, the Arizona’s total mortality rates for the first four months of the year have been as follows:

  • 2016: 293;
  • 2017: 277:
  • 2018: 297;
  • 2019: 285:
  • 2020: 301;

The above does not indicate the Black Plague at loose. The tiny elevation in 2020 relative to the previous four years is just statistical noise!

Moreover, there is no new signal coming out of this “noise” owing to the higher testing and infection rates being reported in recent days. Again, the evidence for that is in the state’s own published data on hospitalization rates, among others.

Between March 23 and June 1, Arizona consistently reported new WITH-Covid hospitalization cases of between 40 and 60 per day on a statewide basis.

During June 3 through June 8, however, the number of new hospitalizations daily has dwindled to 34, 19, 17, 10, 4 and 5, respectively.

The last few days, in fact, have had the lowest new hospitalizations since before the Donald’s malpracticing doctors triggered the Covid Hysteria on March 13.

So, hot spot my eye!

In this connection, they also keep trotting out the hoary old claim that the hospitals are in danger of being overrun with new cases – per the crawler on the screen yesterday during Gottleib’s appearance on bubble vision.

Alas, it never happened previously in Arizona and is not remotely in danger of happening now. Even during the peak of new hospitalizations between April 20 and May 8, the utilization rate of hospital intensive care beds rose from 72% to 78% and has remained at that level ever since.

Finally, it is worth noting that Arizona’s WITH-Covid mortality data show the same dramatic skew toward the elderly, as is true with the rest of the country. Fully 77% of the Covid deaths in Arizona have been among the 65 and older population, which comprises just 17% of the state’s overall population.

That fact alone, of course, militates strongly against the across-the-board stay-at-home and general quarantine orders in the first place.

The Arizona WITH-Covid mortality rate through June 9 breaks out as follows by age cohorts. That is to say, anyone under 55 years old driving to the Scottsdale Fashion Mall would have had a greater chance of being killed in an auto accident than being felled by the Covid:

Deaths Per 100,000 population:

  • <20 years: 0.1;
  • 20-44 years: 2.1;
  • 45-54 years: 7.5;
  • 55-64 years: 14.9;
  • 65+ years: 66.3;

With respect to Texas, it’s the same story. There is no “hot spot”, period.

That is, the number of infected cases in Texas amounts to 256 per 100,000 or 68% of the Arizona rate, 42% of the overall USA rate and just 13% of the rate of infected cases among the New York state population.

Likewise, the WITH-Covid mortality rate through June 8 in Texas was 6.2 per 100,000. That’s just 43% of the Arizona rate, 19% of the USA average and only 5% of the New York state rate.

So Texas isn’t remotely a “hot spot” or some kind of warning about reopening too soon, and is actually a thundering rebuke of the entire Lockdown Nation narrative.

That is, Texas was late and tepid about the lockdown, and among the first to begin “reopening” in early May.

Yet its reported infected case rate of 256 per 100,000 is just 10% of the real “hot spot” rate of 2,477 per 100,000 in the five boroughs of New York City; and its mortality rate of 6.2 per 100,000 population is just 3% of New York City’s 196 per 100,000 rate.

So for crying out loud, with that kind of yawning gap and rock bottom absolute level, what is this clown, Scott Gottlieb, doing on bubble vision warning about Covid dangers in Texas?

Answer: He’s grooming the sheeples in order to keep the Killer Covid narrative alive and the money and legal immunities flowing to the drug companies chasing cures and vaccines.

It goes without saying, course, that the alleged surge in new cases reported in Texas during recent days is just as bogus as the claims about Arizona.

Yes, new cases reported during June 1 to June 8 averaged 1,416 per day or about 61% higher than the rate of 877 per day reported for April 22 to April 30. Except, the number of new tests also rose by about 60% from 113,500 to 168,500, leaving the infected rate virtually unchanged at a very low 6.7%.

Again, if you want to talk “hot spots”, try New York City. The the infected rate per test has run north of 20% in the Bronx, for example.

So the question recurs. Why are people like Scott Gottlieb out pimping the Killer Covid story in the face overwhelming evidence that it it nothing of the kind.

Perhaps, it might be noted that Gottlieb went straight from medical school to various jobs at the FDA before becoming commissioner in 2017, and then heading out the revolving door to Pfizer’s Board of Directors in May 2019.

And, yes, here’s the list of the top five firms being supported by billions from Washington in the race for a Covid vaccine, which may or may not happen, but whether safe or not will be of no never-mind to Big Pharma.

After all, Washington has already indemnified them against lawsuits; pretty much guaranteed that they can name their charge per dose; and will be doing all it can to make getting a tap on the arm from one or more of the Big Pharma competitors a mandatory duty of citizenship.

Call it what you will, but don’t call it honest capitalism. And chalk it up as still another blow to the idea of limited government and personal liberty.

The five companies are Moderna, a Massachusetts-based biotechnology firm, which Dr. Fauci said he expected would enter into the final phase of clinical trials next month; the combination of Oxford University and AstraZeneca, on a similar schedule; and three large pharmaceutical companies: Johnson & Johnson, Merck and Pfizer. Each is taking a somewhat different approach.

Read more of Stockman’s analysis here.

END

 

CORONAVIRUS UPDATE/SUNDAY

Spike In New COVID-19 Cases Reported In China, US, Tokyo: Live Updated

Summary:

  • Authorities cover another 8 cases tied to Xinfadi market Sunday morning
  • China confirms 57 cases from June 13
  • Tokyo sees another spike
  • 23 US states see cases climb
  • US reports 25k+ cases, largest daily increase in 2 weeks
  • Several states reporting record jumps
  • Iran sees deaths rebound
  • Brazil, Russia, India, Mexico see troubling climb continue
  • UK officials review lockdown conditions

* * *

Update (0900ET): The SCMP has a more detailed breakdown of the latest batch of cases reported in China Sunday, the largest one-day total in 2 months.

Beijing reported 36 new local coronavirus cases on Sunday, all of them linked to the city’s biggest wholesale food market.

The patients included 27 people who worked at the Xinfadi food market, which has been closed down, and nine who had been exposed to it, the municipal government said.

Another person had also tested positive for the coronavirus but showed no symptoms, it said. Under Chinese rules, asymptomatic cases are not added to the tally.

Beijing has confirmed 43 local cases since Thursday, before which it had not had any for 55 days.

The outbreak has also spread beyond the capital to neighbouring regions, with the Liaoning provincial government announcing two new cases on Sunday, both of whom had been in close contact with Beijing residents confirmed as having the virus this week.

For the country as whole, there were 57 new confirmed coronavirus cases in the 24 hours to midnight Saturday, the National Health Commission reported, the biggest one-day total in two months. Some 38 of the new cases were locally transmitted, including the 36 in Beijing, with the other 19 were travellers arriving from abroad.

A spokesman for the Beijing Health Bureau urged all residents who visited the Xinfadi market to get tested immediately (that’s an order, not a request).

With the market in Beijing accounting for the vast majority of new cases, it’s clear that the officials are reckoning with the reality that the asymptomatic spread across China’s biggest cities is likely much larger than authorities will admit.

What’s more, officials have reported another 8 positive cases from Sunday morning (June 14), all of which were tied to Xinfadi (according to authorities).

Vincent Lee

@Rover829

Reuters: CHINESE CAPITAL SAYS 8 NEW CONFIRMED COVID-19 CASES ON JUNE 14

Vincent Lee

@Rover829

(All new cases are linked to Xinfadi market. The 8 cases are as of 7 am Sunday)

* * *

The steady drumbeat of discouraging COVID-19-linked headlines continued yesterday as Florida, along with several other southern states, reported record-breaking spikes in new infections. That marked the state’s third daily record in a row, as Gov Ron DeSantis has blamed farm workers and sought to play down the rising numbers as an inevitable consequence of reopening, as beachgoers returned to Miami Beach for the first time.

According to the New York Times, there are 23 states where the daily number of new cases continues to climb.

Here’s what the Times heatmap of the US looked like Sunday morning:

Source: NYT

With a large swath of southwestern Beijing back under lockdown, Chinese health officials said they confirmed another 57 new cases yesterday as they aimed to test more than 10k people connected by contact tracers to a local seafood wholesaler/market that has been shut down for a deep cleaning, as officials said it was the epicenter of the latest outbreak. Furthermore, officials have moved a widely anticipated economic briefing online. The NBS presser will take place at 10amET.

Jeremy@mehabecapital

:Mainland reported 57 new cases of and 9 asymptomatic cases for Saturday, said the National Health Commission.Nineteen of them were imported cases. reported 36 locally transmitted cases. The other 2 local cases were in Liaoning.

In the Middle East, Iran suffered its biggest daily death toll from the coronavirus since April 13, around the time Iran started relaxing its lockdown. So far, a total of 187,427 people have been infected with the disease and 8,837 have died in Iran, according to Health Ministry spokeswoman Sima Sadat Lari.

He added that Iran reported 107 deaths over the last 24 hours, a 9-week high.

In the UK, Chancellor of the Exchequer Rishi Sunak backed calls to ease the UK’s 2-meter social distancing benchmark as HMG carries out its “comprehensive review” of the restrictive lockdown measures imposed by PM Boris Johnson during the early days of the pandemic. Since then, the methodology of the projections that inspired the government’s approach have come under question.

As the number of new cases continues to soar in Brazil, Mexico, India and Russia, the Russians reported 8,835 new confirmed coronavirus infections, a 1.7% increase over the past day. An additional 119 people died in same period, bringing the overall death toll to 6,948, leaving it in third place.

Meanwhile, the global tally of coronavirus cases has surpassed 7.8 million cases, while the US is nearing 2.1 million cases (2,074,526).

US virus cases rose by more than 25k cases reported yesterday (remember, these numbers are reported with a 24-hour lag), the fastest pace in two weeks, while Brazil’s infections increased 2.6% as deaths climbed 2.1%, with Brazil seeing the number of cases draw closer to the 850,000 mark. Deaths in the country are nearing 50k.

END

Tulsa police major tells Carlson that cops across the country are on the verge of quitting

(zerohedge)

“It’s Over, America”: Tulsa Police Major Says Cops Across Country On Verge Of Quitting

A Tulsa, Oklahoma police major says he’s “extremely concerned” that cops across America are on the verge of quitting amid global protests against law enforcement.

Every department, every officer you talk to is looking to leave,” Maj. Travis Yates told Fox News‘ “Tucker Carlson Tonight,” adding that he is “extremely concerned” for the future of law enforcement.

Yates told Carlson that held felt morale among law enforcement officers “was really low” following the 2014 shooting of Michael Brown by then-Ferguson, Mo. police officer Darren Wilson.

“As everybody knows, President Obama’s administration found no evidence of wrongdoing in Ferguson even though the narrative is quite different …,” he said. “We were making a resurgence in recent years and this [George Floyd’s death and the aftermath] has been devastating. This has been Ferguson times 1,000. Every department, every officer you talk to is looking to leave.” -Fox News

Yates published a column last Friday on the website LawOfficer.com titled “America, We Are Leaving.”

In it, he recalls growing up in a law enforcement family – and characterized police as “Men and women of all races with the same mission, to make the community safer.

27 years has passed and if you would have told me the condition of law enforcement today, I would have never believed you.

The mentally ill used to get treatment and now they just send cops. Kids used to be taught respect and now it’s cool to be disrespectful.

Supervisors used to back you when you were right but now they accuse you of being wrong in order to appease crazy people.

Parents used to get mad at their kids for getting arrested and now they get mad at us.

The media used to highlight the positive contribution our profession gave to society and now they either ignore it or twist the truth for controversy to line their own pockets. –Travis Yates

“I wouldn’t wish this job on my worst enemy,” wrote Yates. “I would never send anyone I cared about into the hell that this profession has become … I used to talk cops out of leaving the job. Now I’m encouraging them. It’s over, America. You finally did it You aren’t going to have to abolish the police, we won’t be around for it.”

Yates told Carlson that “officers are afraid to speak out, they are afraid to talk,” adding “You are only your next call away from being canceled or destroyed, and so officers feel very limited. I think citizens do, too, and we had just as many citizens comment on that article and send us emails.”

“The officers with 15 years on can’t leave yet,” he said, adding “I’ve heard from hundreds of people that are discouraged. They love the job, they love the community, they love the people, but all this chaos is wearing them every single day.”

Last Tuesday, NYPD union boss Mike O’Meara railed against the MSM for ‘vilifying’ the police, saying “Stop treating us like animals and thugs and start treating us with some respect.

end
Another casualty of the coronavirus:  24 Hour Fitness files for Chapter 11 bankruptcy
(zerohedge)

24 Hour Fitness Files For Chapter 11 Bankruptcy

The government closure of non-essential businesses to arrest the spread of the COVID-19 outbreak crushed the economy. This caused significant financial strain for many gym operators. As a result, several gyms filed for bankruptcy, last month it was Gold’s Gym, now it’s 24 Hour Fitness Worldwide.

The most significant financial weight holding down fitness centers has been their lease obligations and heavy debt loads. As members cancel, and according to Bloomberg, approximately 30% of US gym members are expected to drop their membership this year, fitness centers are swamped with unserviceable debt payments that will leave them no other choice than to restructure.

Ahead of Monday’s bankruptcy filing, we noted in April — 24 Hour Fitness was working with restructuring advisors, including Lazard and law firm Weil, Gotshal & Manges, to weigh options such as protecting the company from its creditors.

After several months of talks with the law firm, it appears CEO Tony Ueber decided it was time to file Chapter 11, as the company was unable to keep up with debt payments. Ueber secured $250 million debtor-in-possession financing (DIP) that will provide the company with enough operating capital to reopen gyms, pay wages, salaries, and cover expenses.

“24 Hour Fitness comments as part of the company’s bankruptcy filing saying it expects the majority of its footprint to reopen by the end of June. Company says DIP financing, combined with the Company’s cash from operations, is expected to provide sufficient liquidity and allow the Company to continue operations, including club reopenings, without interruption during the Chapter 11 process Company has asked the Court for authorization to continue paying team members’ wages, salaries and benefits and to continue its various member programs,”  Bloomberg reports.

We noted in April that the company had an $837 million term loan maturing in March 2022 and $500 million in unsecured notes maturing in June 2022. While the company had roughly $1.5 billion in sales in 2019, its cash is currently a catastrophic $1 million, according to Moody’s.

The highly levered company was already suffering deteriorating performance ahead of the virus pandemic. It was already struggling to compete against premium rivals like Equinox and cheaper competitors like Planet Fitness. Moody’s recently downgraded the chain over worries around its “negative membership trends, very high-interest burden and negative free cash flow before the coronavirus outbreak, as well as approaching maturities to provide limited flexibility to manage through the crisis.”

The fitness center has 430 locations, is planning to close 100 gyms or nearly 25% of its US footprint.

Around 0700 ET Monday, Ueber sent an email to all club members about the voluntary Chapter 11 filing:

The collapse of gyms and fitness centers has been a boon for at-home high tech fitness pioneer Peloton, which has seen sales exploding higher since the start of the pandemic.

end

Trading in Hertz shares is totally nuts:  now these guys will need a miracle to avoid a total loss in bonds as well as equity as bonds are trading at negative 2 billion dollars

 

(zerohedge)

 

Bankrupt Hertz Warns Buyers They’ll Need A Miracle To Avoid Total Loss As Bonds Value Equity At Negative $2 Billion

Two days after Hertz’ own lawyer, White & Case’s Tom Lauria warned that the trading price of Hertz shares was “disconnected from fundamentals” just as bankruptcy court approved the company’s plan to sell up to $1 billion in stock, the company has issued an 8-K in which it cut the offering price in half – now seeking to raise up to $500 million perhaps as a result of the drop in HTZ stock this morning – with a bevy of risk factors laying out the terms of the deal that Jefferies will pursue in its quest to sell hundreds of millions of HTZ shares to retail investors, including using the word “worthless” to describe its stock no less than five times.

On June 15, 2020, Hertz Global Holdings, Inc. (the “Company” or “we”) entered into an open market sale agreementSM (the “Agreement”) with Jefferies LLC (the “Agent”) under which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock, par value $0.01 per share (the “Common Stock”), having an aggregate offering price of up to $500.0 million through the Agent as its sales agent and/or principal (the “ATM Program”).

The Agent may sell the Common Stock by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) of the Securities Act of 1933, as amended, including without limitation block transactions, sales made by means of ordinary brokers’ transactions on the New York Stock Exchange or sales made into any other existing trading market of the Common Stock, or in negotiated transactions with the consent of the Company. The Agent will use commercially reasonable efforts to sell the Common Stock from time to time, based upon instructions from the Company (including any price, time or size limits or other customary parameters or conditions the Company may impose). The Company will pay the Agent a commission of up to 3.0% of the gross sales proceeds of any Common Stock sold through the Agent under the Agreement, and also has provided the Agent with customary indemnification rights.

We already knew that; we also knew that in order to minimize the risk of lawsuits from buyers of stock who end up with a big, fat nothing – who will sue nonetheless – the company would have to make it clear that nothing short of a miracle will be needed for buyers to avoid a total loss, let alone make a profit. And sure enough in a risk factor geared exclusively to Robin Hood traders, “We are in the process of Chapter 11 reorganization cases under the Bankruptcy Code, which may cause our common stock to decrease in value, or may render our common stock worthless” the company warns that  “any trading in our common stock during the pendency of our Chapter 11 Cases is highly speculative and poses substantial risks to purchasers of our common stock.”

In case that wasn’t enough, Hertz also said that “although we cannot predict how our common stock will be treated under a plan, we expect that common stock holders would not receive a recovery through any plan unless the holders of more senior claims and interests, such as secured and unsecured indebtedness (which is currently trading at a significant discount), are paid in full, which would require a significant and rapid and currently unanticipated improvement in business conditions to pre-COVID-19 or close to pre-COVID-19 levels” something which the company’s bondholders clearly do not expect as of this moment. In fact, after surging in the past weeks, HTZ bonds dipped modestly this morning, with prices on the company’s roughly $4 billion in unsecured bonds – which are all trading below 50 cents on the dollar – suggesting the equity “value” is worth negative $2 billion.

Finally, Hertz also made it clear that it expects “our stockholders’ equity to decrease as we use cash on hand to support our operations in bankruptcy. Consequently, there is a significant risk that the holders of our common stock will receive no recovery under the Chapter 11 Cases and that our common stock will be worthless.”

Despite the repeat warnings, HTZ stock was last seen trading at $2.50, largely unchanged from Friday’s close after sliding as much as 25% in pre-market trading, even as Jefferies is likely already dumping millions of share At The Money as of this morning.

END
An excellent report which shows that Federal tax receipts plunged in May (also in April) and this with utmost certainty raises massive doubts about the accurate of the employment data
(Carson/zerohedge)

Federal Tax Receipts Show A Record Plunge In May, Raising More Doubts About Employment Data Accuracy

Submitted by Joseph Carson, former chief economist at Alliance Bernstein

The Monthly Treasury Statement for May showed federal withheld income tax receipts falling a record 33% from the comparable period one year ago. The decline in May tax receipts exceeds the 30% decline in April. Monthly tax (gross) receipts have been reported since 1973 and April and May declines are the largest on record.

Federal withheld tax receipts are directly related to workers paychecks. The scale of the decline in tax receipts is nearly three times the decline in reported household and payroll employment. The unprecedented gap raises questions about the accuracy of the April and May employment reports.

Tax Receipts vs. Employment

Federal withheld (gross) income tax receipts are highly correlated with employment levels and wage growth since taxes are withheld from workers paychecks. Monthly receipts can be noisy, often influenced by the number of workdays. Nonetheless, back-to-back monthly declines are rare and have only occurred during periods of exceptionally large declines in employment or when there have been legislative changes that lower peoples’ withheld tax payments.

There are no legislative changes that would result in dramatically lower withheld gross federal income tax receipts. So the logical conclusion is that the sharp drop in withheld income tax receipts is directly related to a plunge in wage and salary income.

Without question, the tax data raises doubts over the scale of reported job loss as well as industries that experienced the largest declines.  Tax receipts are off over 30%, while employment levels are off roughly 13%. How can tax receipts fall three times more than employment?  As puzzling as that appears to be what is equally puzzling is that the vast majority of job loss was concentrated in lower-wage industries, such as leisure and hospitality and retail trade.  If job loss was concentrated in low wage industries one would not expect tax receipts to fall three times as fast as overall employment.

In my recent article, BLS Fails Its Mandate: “Fearless Publication of the Facts” published on June 7, I made the argument that the Bureau of Labor Statistics (BLS) statistical methodology failed to ensure an accurate account of the employment situation. The tax data for April and May offers strong evidence that the employment data is inaccurate.

Mr. William W. Beach, BLS Commissioner, is quoted as saying there was no political bias in the published reports and the unemployment rate reported below its actual rate was “accidental”.  I agree with Mr. Beach on the first point.  BLS government statisticians operate with the highest integrity. I know that to be the case because I started my career as a government economist/statistician at the Department of Commerce.

However, BLS statistical methodology did fail; not once, but twice in reporting grossly inaccurate employment statistics.  The US statistical system is the “gold standard” of the world, producing the most accurate, and always operating with the mandate, “Fearless Publication of the Facts”.  But the employment reports  for April and May show that no statistical methodology is perfect, and its the responsibility of BLS to ensure the accuracy of the data.  The scale of the error in April was so large it should have set alarm bells so to avoid another “accidental” report of bad data.

The sharp drop in withheld income tax receipts strongly suggests that the “error” term of the household employment could even be larger than what BLS has stated.  BLS said that the number of households entering in their survey for the first and second time was 30 percent below the average of the past 12 months. As a result, BLS was compelled to use a historically low number of responses to estimate household employment for April and May.  So its highly possible that the number of people misclassified as employed instead of temporarily unemployed could be far larger than the 8.4 million for April and the 5.4 million in May.

Household employment data is based on a sample of 60,000 households out of a total household population of 125 million.   Federal tax receipts are unambiguous. They reflect withheld income taxes taken directly from 30 million business establishments employing over 150 million workers before the pandemic.  Which data series–reported household employment or withheld taxes—do you think offers a more accurate picture of the current employment situation?

end
Outrageous:  zinc is the killer of the virus…Hydroxychloroquine is simply the vehicle to get it across the blood-membrane barrier.
I am telling you, HCQ is the first line of defense along with Azithromycin and zinc
(zerohedge)

FDA Withdraws Emergency Authorization For Hydroxychloroquine After HHS Official Makes Request

The Food and Drug Administration said in a Monday letter that it has revoked its authorization for the emergency use authorization (EUA) governing the use of hydroxychloroquine and chloroquine for the treatment of COVID-19.

The decision – a response to a request by a Health and Human Services official to revoke the EUA – cites “new information, including clinical trial data results,” which have led the Biomedical Advanced Research and Development Authority (BARDA) “to conclude that this drug may not be effective to treat COVID-19 [Coronavirus Disease 2019] and that the drug’s potential benefits for such use do not outweigh its known and potential risks.”

Of significant note, none of the studies cited include the use of zinc – which has been widely cited as the ‘key’ which HCQ provides a tunnel into cells to halt virus replication.

In fact, the FDA’s letter doesn’t include the word ‘zinc’ or its symbol, Zn.

The FDA issued the EUA in March, allowing COVID-19 patients to be treated with anti-malarial drugs from a federal stockpile.

Given all of the conflicting information on HCQ from government officials – as well as a retracted Lancet study which found HCQ did more harm than good, people aren’t buying this; below are a sample of comments from MarketWatch‘s report on the EUA revocation.

If you haven’t realized that all these agencies that are suppose to protect us from unsafe and unethical practices of big corporation have been captured by those very corporations, then you are not paying attention. The Pharmaceutical/Vaccine Industry can’t make a fortune selling the world their poorly tested Covid-19 Vaccine if an existing medicine costing pennies is being used to successfully treat the virus. -Andrew Vela

Or this one:

This is purely a political move. Looks like the FDA has been infiltrated by the globalist cabal who want Trump gone, too. I’m no Trump fan, but I’m even lesser of a fan of bureaucrats who put politics ahead of lives. -Orange Sanders

And others are noting the retracted Lancet study:

Hydroxychloroquine has been further complicated by an inaccurate study that found the drugs harmed patients. That research was later retracted by The Lancet, a prestigious medical journal. The President said something good about the drug, but by itself it does not work against covid. the msm is against anything positive the President talks about and headline readers vote biden. -Rob Cap

So, the FDA has now revoked the use of a drug which is still undergoing clinical trials, and which has shown anecdotal efficacy when combined with zinc.

We’re sure Dr. Fauci approves.

end

THEY ARE ABSOLUTELY NUTS!!!

NYPD Eliminates Entire Plainclothes Anti-Crime Unit In ‘Seismic Cultural Shift’

If you want to be a criminal right now, NYC is the place.

After City Hall moved to strip $1 billion from the NYPD budget in the coming years, Police Commissioner Dermot Shea announced Monday afternoon what he described as “a seismic shift in the culture of how the NYPD polices this city.” To wit, the largest police force in the country will eliminate its plainclothes anti-crime unit.

NYPD Police Commissioner Dermot Shea

No officers will be fired due to the decision; rather, they will be transferred to detective units, or new ‘neighborhood policing’ units that will focus on the community policing model that some less-radical progressives who favor reform over police abolition have advocated. Shea said the unit is being shuttered because its officers are more likely to shoot suspects, whether armed or unarmed, according to a local TV station.

Across NYC, the NYPD often has plainclothes officers stationed in park cars around known hot spots – typically low-income neighborhoods where hard drugs are bought and sold, or where gang-related violence is more common. While it’s not clear exactly what this unit was responsible for, the connotation is that the department will be pulling hundreds of cops off the street.

end

Michael Snyder..

This Is Why We Are Facing A 6 Week Countdown To Immense Economic Despair…

Authored by Michael Snyder via TheMostImportantNews.com,

Many of the emergency economic measures that were put into place to support the American people financially throughout this pandemic are about to disappear, and that means that big trouble is on the horizon.  Right now, we are in the midst of the deepest economic downturn since the Great Depression of the 1930s.  Economic activity has fallen dramatically, more than 100,000 businesses have permanently closed, and more than 44 million Americans have lost a job so far in 2020.  But up to this point most Americans are not feeling too much economic pain thanks to unprecedented intervention by the federal government.  Unfortunately, that short-term boost of artificial relief is about to wear off, and that is going to cause some major problems as we approach the end of this calendar year.

Earlier today, two sentences from a Buzzfeed article about the extreme economic despair that is ahead of us really got my attention…

The US economy right now is like a jumbo jet that’s in a steady glide after both its engines flamed out. In about six weeks, it will likely crash into the side of a mountain.

I think that is a perfect description of what we are facing, except that I would replace “U.S. economy” with “U.S. consumers”.

The truth is that the economy has already crashed, but consumers have been shielded from the effects of that crash by trillions of dollars in emergency government spending and other unprecedented measures

What’s kept us in the air so far is an extraordinary government relief effort. In most states, evictions have been temporarily banned, preventing a mass homelessness crisis. Most federal student loan payments have been put on hold, removing one of the largest recurring monthly expenses that millions of people face. Banks were ordered to give their customers a six-month break on mortgage payments if requested.

Most importantly, and counterintuitively, household income sharply increased in April as hundreds of billions of dollars in lost wages were replaced by trillions in government spending. The government sent out more than 159 million stimulus payments of up to $1,200 per adult (more if you have kids), and more than 20 million unemployed people became eligible for an extra $600 a week in federal unemployment benefits. The result, according to Bloomberg, was the largest monthly increase in household income ever recorded.

What we have witnessed has been a sudden transfer of wealth that is unlike anything we have ever seen in all of U.S. history, and this has allowed most Americans to get through the past few months without too much of a problem.  In fact, many unemployed workers have been bringing home more money than they did when they were actually working.

But on July 31st (about 6 weeks from now) that is all going to change.

The $600 unemployment bonuses are scheduled to end on that date, and President Trump and Republican leaders in Congress have made it clear that they have no intention of extending them.

In addition, it looks like there will be no more direct checks from the government for ordinary Americans even if another “stimulus bill” is passed.

So tens of millions of Americans will soon be facing a future in which they are bringing in very little income.

In addition, the various bans on evictions around the country will soon be coming to an end, as will the grace periods for mortgage payments.

Without enough income coming in, a lot of Americans will soon be losing their homes, and this will likely really start ramping up as we head into the holiday season.

On top of everything else, the grace period on federal student loans will come to an end at the beginning of October.

Ouch.

Basically, all of the economic pain that had been deferred will come rushing back with a vengeance over the next several months.

Of course Congress could delay things a bit more by borrowing and spending trillions of more dollars that we simply do not have, but all of the reckless spending that they have done already has put us in very perilous territory

Trillions are now whooshing by at a breath-taking pace. The US gross national debt – the total of all Treasury securities outstanding – jumped by $1 trillion over the past five weeks, from May 4 through June 8, and by $2.5 trillion for the 11 weeks since March 23.

The total US national debt outstanding has reached $26 trillion, according to the Treasury Department.

It took from the founding of the United States until 1981 for the U.S. national debt to reach one trillion dollars, and now we have added that same amount to the debt in just five weeks.

Wow.

Our elected officials are absolutely destroying our future, but most Americans don’t seem too alarmed by this.

Instead, many are clamoring for even more “free money”, because they say that what they have gotten so far is not nearly enough.

Of course the federal spending that has already taken place has not exactly had the desired effect.

Americans were supposed to take the money they were receiving and spend it.

But instead, one recent survey found that most Americans are actually cutting back on their spending right now…

  • Saving more money: 34% of survey respondents indicate they’ve upped their savings rate because of the novel coronavirus.
  • Reducing spending: During these turbulent times, 59% of Americans have cut their budgets so they aren’t spending as much money as they did pre-pandemic.
  • Re-evaluating their priorities: 48% of those surveyed indicate they are prioritizing living expenses, while 30% of respondents indicate their top priority is consumables, including food and drink.

No matter how much money Congress showers on the American people, they aren’t going to be able to eliminate the overwhelming fear that COVID-19 has created.

For the foreseeable future, a large portion of the population is simply not going to resume their normal economic patterns because they are scared of the virus.

And in many of our large cities, rioting, looting and violence has depressed economic activity even further.

A major economic downturn is here, and it looks like it is going to be very, very deep.

Congress was able to minimize the discomfort for a while, but those emergency measures were only intended to help for a short period of time, and in about six weeks the entire country is going to start feeling a tremendous amount of pain.

end

iv) Swamp commentaries)

 

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

Most of the early US tumble was probably due to the release of the Fed’s Monetary Policy Report, which was issued on Friday ahead of Powell’s semi-annual testimony to Congress (Tues & Wed).  The report hit the tape at 11:00 ET; but it circulated on the Street earlier.  The key passages that alarmed the Street:

  • Financial-sector vulnerabilities are expected to be significant in the near term. The strains on household and business balance sheets from the economic and financial shocks since March will likely create persistent fragilities…
  • A sharp reduction in tax revenues due to a collapse in income and retail sales tax revenue is placing significant stress on state governments
  • Some small businesses and highly leveraged firms might have to shut down permanently or declare bankruptcy, which could have longer-lasting repercussions on productive capacity…
  • Despite aggressive fiscal and monetary policy actions, risks abroad are skewed to the downside. The future progression of the pandemic remains highly uncertain, with resurgence of the outbreak a substantial risk. In addition, the economic damage of the recession may be quite persistentThe collapse in demand may ultimately bankrupt many businesses, thereby reducing business dynamism and innovation. Unlike past recessions, services activity has dropped more sharply than manufacturing—with restrictions on movement severely curtailing expenditures on travel, tourism, restaurants, and recreation—and social-distancing requirements and attitudes may further weigh on the recovery in these sectors…

https://www.federalreserve.gov/monetarypolicy/files/20200612_mprfullreport.pdf

“The collapse in demand many ultimately bankrupt many businesses” is extremely disturbing.

Beijing district in ‘wartime emergency mode’ after virus case spike Jun 12, 2020 / 11:55 PM EDT

Chu Junwei, an official of Beijing’s Fengtai district, said at a briefing that throat swabs from 45 people, out of 517 tested at the district’s Xinfadi market, had tested positive for the new coronavirus…

https://mobile.reuters.com/article/amp/idUSKBN23K058

45 people with Covid are a ‘wartime emergency’?!  More people get shot in Chicago each weekend!

CDC warns against large gatherings as Trump plans campaign rallies

https://www.politico.com/news/2020/06/12/cdc-warns-large-gatherings-315521

Democrats cheering ‘Black Lives Matter’ protests now say Trump rallies pose coronavirus risk

https://www.foxnews.com/politics/democrats-cheering-black-lives-matter-protests-now-say-trump-rallies-pose-coronavirus-risk

Cuomo threatens Manhattan, Hamptons shutdown over lack of social distancing  https://t.co/2CHtbi7Ads

Trump tweet: Interesting how ANTIFA and other Far Left militant groups can take over a city without barely a wimpier from soft Do Nothing Democrat leadership,  yet these same weak leaders become RADICAL when it comes to shutting down a state or city and its hard working, tax paying citizens!

[77% of] Truck Drivers Say They Won’t Deliver To Cities with Defunded Police Departments

http://cdllife.com/2020/truck-drivers-say-they-wont-deliver-to-cities-with-defunded-police-departments/

Today – This is option and futures’ expiration week.  Normally, the usual suspects manipulate ESUs and stocks higher to squeeze the expiring calls on the SPY (S&P 500 Index ETF).  However, when futures expire in conjunction with options, the manipulation can be more difficult.  Institutions, arbs and large trading entities are the primary holders of S&P 500 futures.  Their sizable positions in futures can thwart trader manipulation when they are liquidating or unwinding.

When there are significant events scheduled during expiry week, manipulators will wait for the event to appear before they try the expiry squeeze.  If the event occurs late in the week, they will do the squeeze before the event.  Powell testifies before the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday.  Powell has been unremittingly pessimistic over the past few weeks.  His negativity has hurt stocks.  The House committee will be more hostile to Powell.

Will the expiry manipulation occur before Powell might instigate a stock market tumble?  Or will manipulators wait until after Powell finishes his semi-annual testimony on Wednesday?

On Thursday, the BoE and SNB issue communiques and the ECB “will dish out cheap loans to banks”.

Bond Markets Have a Trillion Reasons to Brace for Super Thursday [>€1T debt issued YTD 2020]

The Bank of England is expected to announce an increase of 200 billion pounds to its bond-buying stimulus, taking it to 845 billion pounds… The Swiss National Bank looks likely to buck the trend for largess by refraining from extending stimulus and keeping rates on hold…

https://www.bloomberg.com/amp/news/articles/2020-06-13/bond-markets-have-a-trillion-reasons-to-brace-for-super-thursday

Part of the early tumble could have been the MSM hyping reports of new Covid cases in the US.  The CDC, which was largely mum during the protests and rioting, is actively issuing warnings now.

U.S. CDC warns that restrictions may be needed again if COVID-19 cases spike https://reut.rs/3fj2tk3

As fears mount over COVID spikes, data continue to show positive downward trends

Average cases, deaths continue steady, two-month decline

https://justthenews.com/politics-policy/coronavirus/fears-mount-over-covid-spikes-data-continue-show-positive-downward

@MorningAnswer: Remember all the panic this week about cases rising in Texas? Now we know why … They are counting antibody tests. This is highly misleading. [“So, it’s impossible to know how many tests show active infections and how many show previous infections…]” – Texas Tribune]

https://www.texastribune.org/2020/05/15/texas-reopening-coronavirus-cases/

The rebound rally ended at 12:08 ET.  ESUs and stocks tumbled anew; the S&P 500 Index fell to 2984.47.  A rally into the VIX Fix (14:15 ET) appeared.  The rally conflated with the pre-final hour rally and the last-hour manipulation.  After a 15-minutes modest retreat at 15:15 ET, the usual suspects forced ESUs and stocks higher during the final 25 minutes of trading.  The late Friday rally occurred again!

Hertz Trades 50% Higher on Plan to Sell Bankrupt Stock to Robinhooders [new day traders]

We have hit a permanently high plateau in amazement at the insanity going on in the market…

https://www.zerohedge.com/markets/hertz-trades-50-higher-plan-sell-bankrupt-stock-robinhooders

@jimcramer: Look, here’s what they do, they buy in the early morning and then they flip it to Robin Hood types when the market opens and they make money. It’s a game…

Barstool Sports’ Portnoy Is Leading an Army of Day Traders

Barstool Sports’ Dave Portnoy had bought just one stock in his life before the quarantine hit. When the country shut down in March… the founder of the brash media empire…started day trading… started live streaming as “Davey Day Trader Global” to his 1.5 million Twitter followers with the caveat: “I’m not a financial advisor. Don’t trust anything I say about stocks.”

    Despite the obligatory warning, Portnoy has touted stocks like InspireMD Inc. and Smith & Wesson Brands Inc., while dissing the acumen of Warren Buffett… “I’m sure Warren Buffett is a great guy but when it comes to stocks he’s washed up,” Portnoy tweeted Tuesday. “I’m the captain now.”…

With brokerages offering commission-free trading, “the barriers to entry are essentially zero and the cost to transact is essentially zero,” Emanuel said…

https://www.bloomberg.com/news/articles/2020-06-12/barstool-sports-dave-portnoy-is-leading-an-army-of-day-traders

UK in U-turn on full post-Brexit border controls – Temporary light-touch customs regime planned with pressure from business not to compound Covid-19 chaos

https://www.ft.com/content/37fad070-160f-4d3b-b043-940b843a0daf

 

@bennyjohnson: TRUMP [to graduating West Point cadets on Saturday]: “We are ending the era of Endless Wars… We are not the policemen of the world, but let our enemies be on notice, if our people are threatened, we will never ever hesitate to act and when we fight, from now on, we will only fight to win.”

 

 

Retired generals who denounced Trump could be recalled to active duty and prosecuted, experts say – The Uniform Code of Military Justice prohibits using “contemptuous words” against the president.

https://justthenews.com/government/security/retired-generals-who-denounced-trump-could-be-recalled-active-duty-and

 

Kim Stassle, WSJ opinion columnist that leans right, cogently articulates the 2020 Presidential Race.

  • Trump is an a battle with himself
  • He must contrast his policies with Biden’s “embrace of progressive nirvana
  • Dems want to make the race a referendum on his tweets and a chaotic White House
  • This is not 2016 when DJT’s disruptive style was priced
  • People now want “calm leadership and a positive vision for the future”
  • Trump makes everything about himself, “needs to be the center of attention”
  • Biden “is grappling with an enthusiasm problem
  • Trump’s turnaround to the recent decline in polls numbers entails more than taunting Biden
  • DJT must define the election as choice between his policies and Biden’s vow to hike taxes, kill blue collar & fossil fuel jobs, ban guns and possibly acceding to Dem demands to defund police

 

Trump Is Beating Trump – Biden wants to make the race a referendum. The president needs to make it a choice…  Mr. Trump’s path to re-election rests in painting a sharp contrast between his policies of economic restoration, a transformed judiciary and limited government with those of Mr. Biden’s…

https://www.wsj.com/articles/trump-is-beating-trump-11591917933?redirect=amp#click=https://t.co/MS1vQ3bhqc

 

The fate of the USA rests in the hands of suburban women – and Trump knows it.

 

@realDonaldTrump tweeted at 8:09 AM on Fri, Jun 12, 2020: “Do you think Suburban Women want to Defund the Police? I don’t think so.” @marcthiessen

 

You can expect that between now and the election, DJT and Biden’s pandering will be ginormous.

 

According to reports, the six Biden VP finalists, for now, are Sens. Elizabeth Warren and Kamala Harris,Susan Rice, Obama’s ex-national security adviser who is probably being investigated for Spygate,

      “Florida Rep. Val Demings, Atlanta Mayor Keisha Lance Bottoms, both black, and New Mexico Gov. Michelle Lujan Grisham, a Latina…”

https://www.dailymail.co.uk/news/article-8415839/Bidens-VP-list-narrows-Warren-Harris-Susan-Rice-others.html

 

The MSM has been pushing for Rep. Val Demings because the big 3 have baggage.  Demings is fresh and appealing to suburban women.  However, Biden has stepped into stuff, again, with the Demings proposal.

 

Joe Biden considering ex-cop as veep, angering BLM activists [She’s an ex-Orlando cop!  27yrs]

https://nypost.com/2020/06/13/joe-biden-considering-ex-cop-as-veep-amid-calls-to-defund-the-police/

 

One month ago: Val Demings’ stock rises on VP shortlist – The Florida congresswoman is attracting an increasing amount of attention from Biden advisers, donors and congressional Democrats.

https://www.politico.com/news/2020/05/17/val-demings-joe-biden-vice-president-shortlist-262066

 

Trump Confidants Call for Brad Parscale to be Fired as Re-Election Campaign Stalls with “No Strategy” – “There’s no strategy, there’s no messaging,”… Parscale was put into the position because of his connections to Trump son-in-law Jared Kushner, who has been pushing the administration to the Left …“Jared put Brad in charge of the whole thing… Brad has zero experience running a national campaign.”… https://bigleaguepolitics.com/trump-confidants-call-for-brad-parscale-to-be-fired-as-re-election-campaign-stalls-with-no-strategy/

 

@thebradfordfile: 800,000 ticket requests for the Trump rally in Tulsa…

 

Trump rips Biden for claiming troops will be needed to remove him from White House

Joe’s not all there, everybody knows it and it’s sad when you look at it and you see it, you see it for yourself. He’s created his own sanctuary city in that basement… and he doesn’t come out,” the president said during an interview with Fox News host Harris Faulkner… https://trib.al/24TESgV

 

@jennfranconews: The Minneapolis City Council unanimously passes a resolution to replace the city’s police department with a “community-led public safety system” following the death of George Floyd.

 

ABC: 64% of Americans oppose ‘defund the police’ movement, key goals: POLL [55% Dems]

Black Americans land differently on the issue, but not overwhelmingly so…nearly three in four white Americans and 57% of Hispanics are against defunding the police… http://ow.ly/xOCI50A6uZc

 

ABC admits that the above poll is biased toward Dems constituents!  This ABC News/Ipsos poll was conducted by Ipsos Public Affairs‘ KnowledgePanel® June 10-11, 2020, in English and Spanish, among a random national sample of 686 adults, with oversamples of black and Hispanic respondents…

 

Op-ed in NYT: Yes, We Mean Literally Abolish the Police – Because reform won’t happen.

We can’t reform the police. The only way to diminish police violence is to reduce contact between the public and the police… police officers don’t do what you think they do. They spend most of their time responding to noise complaints, issuing parking and traffic citations, and dealing with other noncriminal issues…“The vast majority of police officers make one felony arrest a year. If they make two, they’re cop of the month.”… We should redirect the billions that now go to police departments toward providing health care, housing, education and good jobs. If we did this, there would be less need for the police in the first place… Trained “community care workers” could do mental-health checks if someone needs help. Towns could use restorative-justice models instead of throwing people in prison… People like me who want to abolish prisons and police, however, have a vision of a different society, built on cooperation instead of individualism, on mutual aid instead of self-preservation…

https://www.nytimes.com/2020/06/12/opinion/sunday/floyd-abolish-defund-police.html

 

Denver school board votes unanimously to remove police from public schools https://cbsn.ws/3hne5o3

 

@TheRealJohnDias: INSANE: School safety officer notified when boy’s BB gun is spotted on his wall through his Web cam while he’s attending VIRTUAL school. Principal equates the electronic depiction of the boy’s bedroom wall w/ bringing a weapon to school. Cops search househttps://t.co/PRhuQha3TE

 

Seattle police chief says rapes and robberies are occurring in CHAZ area and officers can’t respond to them   https://www.theblaze.com/news/seattle-police-chief-violence-chaz

 

It Only Took 2 Days for Seattle’s “Autonomous Zone” to Descend Into Chaos…

It is hard to believe that this is actually happening in America.  But as I keep warning, what we have seen so far is just the beginning.  As economic conditions deteriorate, Americans are just going to get even angrier and even more frustrated…

http://themostimportantnews.com/archives/it-only-took-2-days-for-seattles-autonomous-zone-to-descend-into-chaos

@Doranimated: Mayor Durkan: the autonomous zone in Seattle is basically a “block party.”

https://twitter.com/Doranimated/status/1271410853636648960

 

Seattle Councilwoman Says Warlord-Controlled CHAZ Should Remain In Public Hands

She plans to introduce legislation which would officially convert the neighborhood into a ‘community center for restorative justice

https://www.zerohedge.com/political/seattle-councilwoman-says-warlord-controlled-chaz-should-remain-public-hands

 

Trib’s John Kass: A warning to Trump and Republicans: Leave the nation of CHAZ alone!

CHAZ is the Capitol Hill Autonomous Zone, made up of several blocks of Seattle that were commandeered by protesters… Trump is the only thing that could screw up this brave new world… Don’t be stupid and send in the military, Mr. President. That would be idiotic, and you’ll ruin everything.

   The governor of Washington doesn’t mind CHAZ being its own country in the middle of Seattle. And the mayor of Seattle doesn’t mind, either. Just let CHAZ be, so it can prove to everyone how a people can govern themselves with no laws or law enforcement…

     Here in America, our old, boring “A Republic, if you can keep it” thing is falling apart. It’s not woke enough. We began “decolonizing” our libraries so that now, Americans can’t even remember whywe started this “republic” thing in the first place…

https://www.chicagotribune.com/columns/john-kass/ct-seattle-chaz-kass-20200612-hz5kzmvfijdj3o5t6afksvjzau-story.html

 

@MrAndyNgo: Protesters inside and around new “autonomous zone” at the University of Chicago Police Department are urinating and defecating inside a tent in the room. [More auto zones coming?]

 

@LucidAntebellum: Footage of Asheville [NC] Police tearing down barricades for an autonomous zone lmaooooo    https://twitter.com/LucidAntebellum/status/1271800358122270720

 

University of Missouri to keep Thomas Jefferson statue despite calls for removal

https://www.foxnews.com/us/university-of-missouri-keep-thomas-jefferson-statue-despite-calls-for-removal

 

The State Of Texas Delivers a ‘Simple’ Message to Rioters Thinking about Trashing The Alamo

Texas land commissioner George P. Bush, the eldest son of former Florida Governor Jeb Bush… released a statement late on Saturday, saying, “The Alamo is the Shrine of Texas Liberty. And it will be defended. My office is closely watching the social media posts and rumors from protestors who are threatening to come to The Alamo.”…

https://www.dailywire.com/news/the-state-of-texas-delivers-a-simple-message-to-rioters-thinking-about-trashing-the-alam

 

Ex-Acting Dir of National Intel @RichardGrenell [1st openly gay cabinet member]: Microsoft President Brad Smith “We will not sell facial-recognition technology to police departments in the US until we have a national law, grounded in human rights.”  Journalists should ask @Microsoft and Brad Smith about their technology sales to countries that throw gays and lesbians off buildings – since they are so concerned about human rights in the US.

 

@SenTomCotton: So Microsoft will work on AI & facial recognition tools with the Chinese military, but not US law enforcement    https://www.ft.com/content/9378e7ee-5ae6-11e9-9dde-7aedca0a081a

 

@NBCNewsEnt: The Oscars announces films will be required to meet “representation and inclusion standards” to qualify for awards beginning next yearhttp://nbcnews.to/3cX8i5g

 

@TheBabylonBee: Google Deploys Squads of Firemen to Burn Offensive Books, Videos, Websites

They utilize fire at 451 degrees Fahrenheit. Google’s robotics division has also reportedly developed a Mechanical Hound designed to sniff out resistance to its totalitarian destruction of offensive content…

https://babylonbee.com/news/google-posts-job-listing-for-book-burning-firemen

 

Disney Ditches Tucker Carlson Ads But Openly Collaborates with the Chinese Communist Party

“This may be a lot of things, this moment we’re living through, but it [BLM] is definitely not about black lives,” Carlson has noted… https://thenationalpulse.com/news/disney-carlson/

 

Dems’ confidential 2015 memo warned against interacting with ‘radical’ Black Lives Matter movement – For Democrats, a newly resurfaced November 2015 memo from a senior Democratic Congressional Campaign Committee (DCCC) official has driven concerns that yet more hypocrisy may be afoot. The memo derides the Black Lives Matter movement as “radical,” and offers Democratic House candidates suggestions for how to handle activists who attempt to approach their campaigns… Perry, who is black, goes on to characterize Black Lives Matter as a “radical movement to end ‘anti-black racism.'”

    Black Lives Matter advocates for a “collective ownership” economic model, reparations and the “immediate release” of everyone convicted of a drug offense, in addition to defunding police forces and other left-wing agenda items… Under no circumstances, Perry says, should Democrats “say ‘all lives matter’ nor mention ‘black-on-black crime.'”…

https://www.foxnews.com/politics/democrats-radical-black-lives-matter-memo-resurfaces

 

ESPN Hits All-Time 41 Year Ratings Low as WokeCenter on Steroids Takes over [NFL take note!]

It’s an ominous sign for sports ratings to be tanking as sports prepare to return to play. There are many serious things going on in our country right now and the vast majority of sports fans know where to find news about serious things going on in the world… But sports fans don’t want their sports commentators to be weighing in on non-sports news on sports networks… 

https://www.outkickthecoverage.com/espn-hits-all-time-41-year-ratings-low-as-wokecenter-on-steroids-takes-over/

 

The past was erased; the erasure was forgotten; the lie became the truth.” – 1984 by George Orwell

Every record has been destroyed or falsifiedevery book rewritten, every picture has been repainted, every statue and street building has been renamed, every date has been altered. And the process is continuing day by day and minute by minute. History has stopped. Nothing exists except an endless present in which the Party is always right.”– 1984 by George Orwell

end

Let us close out tonight with this interview of Bill Holter and Greg Hunter

Hertz Symbolizes The Complete Corruption Of The Stock Market

– Bill Holter

By Greg Hunter On June 14, 2020

Financial writer Bill Holter says the Fed cutting bank reserves to 0% for the first time in history is a “huge deal” and a red flag for what is coming.  Holter explains, “The idea behind lowering the reserve requirement is basically making it easier for banks to lend.  In the later part of March, they went to 0% to make it easier for banks to lend. . . . With zero reserve requirement, it could create unlimited lending. . . . The Fed will raise the reserve requirement when it wants to tighten credit, and they will lower it when they try to loosen credit.  Getting rid of it all together means the reverse of zero is infinity.  So, they are trying to reflate again.”

What could go wrong?  Holter contends, “All sorts of things could go wrong.  You could have banks lending to any type of project.  What it does is it opens the door to more fraud.  It opens the door to fraudulent lending and fraudulent borrowing.  The bank could be basically busted, and it still won’t matter because they could still lend.  If a bank has zero reserve requirement, that does not preclude them to lend.”

So, the bank can never go out of business?  Holter says, “Yes, in essence, that’s what the reserve requirement says.  They are not required to have any reserves backing your account and your deposits.  They can lend as much as they want to with no reserve requirement backing it.  I’ll go one step further and say look at what the Fed is doing buying junk bonds.  It is putting junk bonds on their balance sheet, and the next thing is they will be buying stocks. . . . So, what’s backing the money itself?  It is no longer pristine credit.  It is anything and everything in the credit market.  The next step is the Fed is probably going to be buying stock.”

Is zero reserve requirement at the banks a sign we are getting close to the end of the Ponzi scheme we have been living through?  Holter says, “I’ll answer this with a familiar saying, and that is ‘desperate people do desperate things,’ and that’s pretty desperate.  How safe is a banking system that has no requirement for reserves?”

This all circles around to gold and the increasing demand for physical ownership.  Holter says, “There is huge demand for physical gold.  The amount of gold standing for delivery has increased almost every single day since first notice day. . . . If you go back two years ago, that never ever happened. . . . It looks like the Bank of International Settlements (BIS) is supplying the market to tamp down the price.  We don’t know when an actual failure to deliver event is going to happen, but the system has gotten so large that once you get a crack in the credit markets or a question of the credit worthiness of the U.S., you will see capital flow to gold and clean that market right up.  Once that does happen, gold and silver will go into hiding. . . . People will not sell their gold or silver for fiat currency. . . . People are waking up to the fact that there is a massive problem in the credit markets.  In the past, the safe haven has been the dollar and Treasuries, but if the problem is the dollar and the credit worthiness of Treasuries, what’s the next step of protection?   All capital roads lead to gold.  That is your safe haven.  Gold is the ultimate safe haven.  It’s God’s money.”

Join Greg Hunter of USAWatchdog.com as he goes One-on- One with Bill Holter of JSMineset.com.

( To Donate to USAWatchdog.com Click Here )

Well that is all for today

I will see you TUESDAY night.

One comment

  1. […] by Harvey Organ, Harvey Organ Blog: […]

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