JUNE 16//GOLD UP $6.70 TO $1728.30//SILVER UP 20 CENTS TO $17.50//162.00 TONNES OF GOLD STANDING AT THE GOLD COMEX// VOLUMES INTO GOLD ETFS AT RECORD LEVELS/ MAJOR ESCALATION BETWEEN NORTH AND SOUTH KOREA//MAJOR ESCALATION BETWEEN INDIA AND CHINA//P G & E PLEADS GUILTY TO 84 COUNTS OF MANSLAUGHTER//

GOLD$1728.30  UP $6.70   The quote is London spot price

 

Silver:$17.50  UP 20 CENTS//LONDON SPOT PRICE

 

Closing access prices:  London spot

 

 

 

i)Gold : $1726.70  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.47//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

AUG GOLD:  $1735.30  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE AUGUST: $  + 6.00

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $17.66//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      16 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:     25/49

issued: 20

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,720.300000000 USD
INTENT DATE: 06/15/2020 DELIVERY DATE: 06/17/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 H GOLDMAN 4
357 C WEDBUSH 5
624 C BOFA SECURITIES 1
657 C MORGAN STANLEY 8 3
657 H MORGAN STANLEY 12
661 C JP MORGAN 20 25
661 H JP MORGAN 4
800 C MAREX SPEC 10
905 C ADM 6
____________________________________________________________________________________________

TOTAL: 49 49
MONTH TO DATE: 50,465

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 49 NOTICE(S) FOR 4,900 OZ ( 0.1524 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  50,465 NOTICES FOR 5,046,500 OZ  (156.967 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

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

total number of notices filed so far this month: 424 for 2,120,000 oz

 

BITCOIN MORNING QUOTE  $9537  UP $82

 

 

BITCOIN AFTERNOON QUOTE.: $9497 UP 71

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $6.70 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 UP A HUGE 20 CENTS TODAY: AND WITH NO SILVER AROUND

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV..

A DEPOSIT OF 1.118 MILLION OZ INTO THE SLV////

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 483.100  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A STRONG SIZED 3016 CONTRACTS FROM 175,914 DOWN TO 172,898 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED LOSS IN  OI OCCURRED WITH OUR  14 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 GOOD EXCHANGE FOR PHYSICAL ISSUANCE, SOME LONG LIQUIDATION, ACCOMPANYING  A ZERO INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET LOSS IN OUR TWO EXCHANGES OF 1579 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: 1335  AND SEPT 102 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  513 CONTRACTS. WITH THE TRANSFER OF 1437 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 7.185 MILLION OZ  ACCOMPANYING:

1.THE 14 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

 

MONDAY, 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 14 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 1579 CONTRACTS OR 7.895 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:

6890 CONTRACTS (FOR 13 TRADING DAY(S) TOTAL 6890 CONTRACTS) OR 34.450 MILLION OZ: (AVERAGE PER DAY: 430 CONTRACTS OR 2.650 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 34.45 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 4.92% 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:          1,100.485 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                   34.45 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 3016, WITH OUR 14 CENT LOSS IN SILVER PRICING AT THE COMEX ///MONDAY THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 1437 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:  1579 CONTRACTS (WITH OUR 14 CENT LOSS IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1437 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A LARGE SIZED DECREASE OF 3016 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 14 CENT LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.30 // MONDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.846 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: 1 NOTICE(S) FOR 5,000 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 FELL BY A SMALL 1222 CONTRACTS TO 484,295 AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL SIZED LOSS OF COMEX OI OCCURRED WITH OUR  LOSS IN PRICE  OF $8.00 /// COMEX GOLD TRADING// MONDAY// WE  HAD STRONG BANKER SHORT  COVERING, ANOTHER GOOD SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR  LOSS IN PRICE OF $8.00 .

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  25

 

WE GAINED A GOOD SIZED 2266 CONTRACTS  (7.048 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 3488 CONTRACTS:

CONTRACT  JUNE 0.; AUG 3488 AND DEC: 100  ALL OTHER MONTHS ZERO//TOTAL: 3488.  The NEW COMEX OI for the gold complex rests at 484,295. 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 2266 CONTRACTS: 1222 CONTRACTS DECREASED AT THE COMEX AND 3488 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2266 CONTRACTS OR 7.048 TONNES. MONDAY, WE HAD A  LOSS OF $8.00 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 7.048 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 $8.00).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 GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (3488) ACCOMPANYING THE GOOD SIZED LOSS IN COMEX OI  (1222 OI): TOTAL GAIN IN THE TWO EXCHANGES:  2442 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)ANOTHER GOOD INCREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI LOSS.. AND  …ALL OF THIS WAS COUPLED WITH OUR  LOSS IN GOLD PRICE TRADING//MONDAY//$8.00.

 

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 : 32,830 CONTRACTS OR 3,283,000 oz OR 102.11 TONNES (13 TRADING DAY(S) AND THUS AVERAGING: 2749 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 13 TRADING DAY(S) IN  TONNES: 102.11 TONNES

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

THUS EFP TRANSFERS REPRESENTS 102.11/3550 x 100% TONNES =2.87% 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   2916.41  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:                     102.11 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 3016 CONTRACTS FROM 175,914 DOWN TO 172,898 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 GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A ZERO INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  4) SOME LONG LIQUIDATION 

 

EFP ISSUANCE 1437 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: 1437 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 3016  CONTRACTS TO THE 1437 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  LOSS OF 1579 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 7.895 MILLION  OZ!!! OCCURRED WITH THE 14 CENT LOSS IN PRICE///

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 14 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// MONDAY. WE ALSO HAD A GOOD SIZED 1437 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

)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 41.72 POINTS OR 1.44%  //Hang Sang CLOSED UP 561.14 POINTS OR 2.39%   /The Nikkei closed UP 1051.26 POINTS OR 4.88%//Australia’s all ordinaires CLOSED UP 3.91%

/Chinese yuan (ONSHORE) closed UP  at 7.0786 /Oil UP TO 37.85 dollars per barrel for WTI and 40.52 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0786 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0782 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A SMALL 1222 CONTRACTS TO 484,295 MOVING FURTHER FROM  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS  COMEX LOSS OCCURRED WITH OUR  LOSS OF $8.00 IN GOLD PRICING /MONDAY’S COMEX TRADING//). WE ALSO HAD A GOOD EFP ISSUANCE (3488 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER GOOD INCREASE IN  GOLD OZ STANDING AT THE COMEX//JUNE DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 2442 CONTRACTS DESPITE GOLD’S  LOSS IN PRICE. 

 

 

WE  HAD 0    4 -GC VOLUME//open interest RISES TO 25

 

 

 

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 3488 EFP CONTRACTS WERE ISSUED:  3488 FOR AUG AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 3488 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:  2266 TOTAL CONTRACTS IN THAT 3488 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 1222 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 GOOD INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A  LOSS IN COMEX PRICE OF 8.00 DOLLARS..

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $8.00)AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 7.048 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 2266 CONTRACTS OR 226600 OZ OR 7.048 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:  484.295 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 48.42 MILLION OZ/32,150 OZ PER TONNE =  1505 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1505/2200 OR 68.45% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 101,532 contracts//extremely low//most traders have moved to london

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY208,494 contracts//  volume fair 

 

 

JUNE 16 /2020

JUNE GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz 96,549.453 oz

Brinks

 

 

 

Deposits to the Customer Inventory, in oz  

186,089.990

OZ

BRINKS

 

 

 

No of oz served (contracts) today
49 notice(s)
 49,000 OZ
(0.1525 TONNES)
No of oz to be served (notices)
1618 contracts
(161800 oz)
5.032 TONNES
Total monthly oz gold served (contracts) so far this month
50,465 notices
5,046,500 OZ
156.967 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:  96,549.453 oz

total deposit: 96,549.453 oz

DEALER WITHDRAWAL:

i) nil oz

 

 

total dealer withdrawals: nil oz

we had 1 deposits into the customer account

i) Into Brinks: 186,089.990 oz

 

 

 

 

 

 

total deposits: 186,089.990    oz

 

 

we had 1 gold withdrawals from the customer account:

i) Out of JPMorgan: 100.105 oz

 

 

total gold withdrawals;  100.105 oz

We had 0  kilobar transactions  +

 

 

 

 

ADJUSTMENTS: 1 //    

 

 

dealer to customer:

i) Int. Delaware:  4999.710 oz

 

 

The front month of JUNE registered a total of 1667 oi contracts of a LOSS of 109 contracts.  We had 151 notices filed on MONDAY so we gained A STRONG 42 contracts or an additional 4200 oz of gold (0.1306 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 GAIN of 42 contracts UP to 3477 contracts.

Next comes August another strong delivery month and here the OI FELL by 2355  contracts DOWN to 336,609 contracts.

 

We had 49 notices filed today for 4900 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 20 notices were issued from their client or customer account. The total of all issuance by all participants equates to 49 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 25 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 (50,465) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (1667 CONTRACTS ) minus the number of notices served upon today (49 x 100 oz per contract) equals 5,208,300 OZ OR 162.000 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 (50,465)x 100 oz + (1667 OI) for the front month minus the number of notices served upon today (49) x 100 oz which equals 5,208300 oz standing OR 162.000 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 42 contracts or 4200 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 352.37 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 162.000 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  12,335,118.292 oz or 383.67 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: 11,328712.0  (352.37 tonnes)
true registered gold  (total registered – pledged tonnes  11,328712.0 (352.37 tonnes)
total eligible gold:  18,252,321.961 oz (567.72 tonnes)

total registered, pledged  and eligible (customer) gold;   30,617,440.254 oz 952.33 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  825.99 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 16/2020

And now for the wild silver comex results

Total COMEX silver OI FELL BY A STRONG SIZED 3016  CONTRACTS FROM 175,914 DOWN TO 172,898(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 14 CENT FALL IN PRICING//MONDAY. WE LOST A TOTAL OF 1579 CONTRACTS IN OUR TWO EXCHANGES.  THE LOSS IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A ZERO 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 14 CENT LOSS IN PRICE 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE

THE FRONT DELIVERY OF JUNE SAW 9 OPEN INTEREST CONTRACTS STANDING FOR A LOSS OF 5 CONTRACTS.  WE HAD 5 NOTICES SERVED UPON YESTERDAY SO WE GAINED 0 CONTRACT OR AN ADDITIONAL NIL 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 4965 CONTRACTS DOWN TO 77,568 CONTRACTS. AUGUST SAW ANOTHER GAIN OF 6 CONTRACTS TO 68 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 1736 CONTRACTS UP TO 69,938

 

 

We, today, had  1 notice(s) FILED  for 5,000 OZ for the JUNE, 2020 COMEX contract for silver

 

JUNE 16/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

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

 

 

Deposits to the Dealer Inventory
318,723.000 oz
Brinks

 

Deposits to the Customer Inventory
1,180,157.33 oz
Brinks
Loomis
Scotia
No of oz served today (contracts)
1
CONTRACT(S)
(5,000 OZ)
No of oz to be served (notices)
8 contracts
 40,000 oz)
Total monthly oz silver served (contracts)  424 contracts

2,120,000 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 1 deposit into the dealer:
i) Into Brinks:
318,723.000 oz

total dealer deposits: 318,723.000 oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 3 deposits into the customer account

into JPMorgan:   0

ii)into  Brinks;  2935.69 oz

iii) Into Loomis: 577,483.800 oz

iv) Into Scotia: 599,737.840 oz

 

 

 

 

 

 

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

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

 

total customer deposits today: 1180,157.84    oz

we had 1 withdrawals:

 

 

 

ii) Out of Delaware: 5001.200 oz

 

 

 

 

 

 

 

 

total withdrawals; 5001.200   oz

We had 0 adjustments

 

 

total dealer silver: 85.643 million

total dealer + customer silver:  315.619 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 1 contract(s) FOR 5,000, 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 424 x 5,000 oz = 2,120,,000 oz to which we add the difference between the open interest for the front month of JUNE.(9) and the number of notices served upon today 1 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 424 (notices served so far) x 5000 oz + OI for front month of JUNE (9)- number of notices served upon today (1) x 5000 oz of silver standing for the JUNE contract month.equals 2,155,000 oz.

We GAINED 0  contracts or an additional NIL 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: 32,953 CONTRACTS // volume low/

 

 

FOR YESTERDAY: 89,286..,CONFIRMED VOLUME//volume very good/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 89286  CONTRACTS EQUATES to 446 million  OZ 63.7% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 0.87% ((JUNE 16/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.92% to NAV:   (JUNE 16/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.87%

(courtesy Sprott/GATA

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

NAV 16.38 TRADING 16.27///NEGATIVE 0.56

END

 

 

And now the Gold inventory at the GLD/

JUNE 16//WITH GOLD UP $6.70 TODAY: NO CHANGES IN GOLD INVENTORY: /INVENTORY RESTS AT 1136.22 TONNES

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 16/ GLD INVENTORY 1136.22 tonnes*

LAST;  842 TRADING DAYS:   +192.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 742 TRADING DAYS://+367.52  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 16//WITH SILVER UP 20 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.118 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 483.100 MILLION OZ//

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 16.2020:

SLV INVENTORY RESTS TONIGHT AT

483.100 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.27/ and libor 6 month duration 0.43

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

GOLD LENDING RATE: -1.84%

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

 

XXXXXXXX

12 Month MM GOFO
+ 1.94%

LIBOR FOR 12 MONTH DURATION: 0.59

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.35%

 

end

 

 

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

Why Gold and Silver? Why $3,000/oz and $50/oz and Why the Physical Assets Rather Than Gold and Silver ETFs

Smart Money interviews the Research Director of GoldCore, Mark O’Byrne, in the first Smart Money Series Online Live Conference. The presentation including slides begins at 1 hour 12 min and 42 seconds.

◆ Why do people buy gold and what are it’s benefits to investors and pension owners?

◆ Why do Bank of America believe that gold may double in the next 18 months and what do you think could stop gold from reaching record highs and the prices cited by Bank of America?

◆ Why silver and do you still think that silver is undervalued and why do you think this?

◆ One way to invest in gold is to buy gold ETFs or into the precious metal mining companies, what are your thoughts on this?

◆ What are the benefits of owning the physical gold and silver assets?

Presentation Images

i) Intro slide – Who are GoldCore?
ii) Gold’s relative performance in 2020 YTD
iii) Gold price performance over 15 years
iv) Gold preserves wealth as all fiat currencies devalued (1900-2020)
v) Closing slide – Contacting GoldCore



NEWS and COMMENTARY

Gold gains after Fed ramps up support measures

Gold Steadies Before Fed’s Powell Takes Center Stage

The Fed says it is going to start buying individual corporate bonds, ability to buy up to $750 Billion

U.S. Treasuries saw second month of heavy foreign selling in April: foreigners sold $176.7 Billion

Dow closes 150 points higher as Fed announcement sparks big comeback from massive losses

North Korea ‘blows up joint liaison office’ with South

3 Indian soldiers killed in clashes on Chinese border

Owner of gold bars worth over €169k left on a Swiss commuter train still unknown

 

Watch Interview Here

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

15-Jun-20  1710.40 1710.45, 1365.58 1361.52 & 1520.72 1516.83
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

 

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

Ronan Manly discusses gold’s manipulation as bullion and central banks keep the metal subdued in price despite the economic turmoil

(Ronan Manly/Bullionstar/GATA)

Bullion Star’s Ronan Manly updates gold’s struggle against the banks

 Section: 

11:27a ET Monday, June 15, 2020

Dear Friend of GATA and Gold:

In a recent interview with a financial blogger in Singapore, Bullion Star gold researcher Ronan Manly updates the monetary metal’s struggle against bullion banks and central banks to rise as it might be expected to do amid the economic turmoil around the world. It’s posted at Bullion Star here:

https://www.bullionstar.com/blogs/bullionstar/bullionstar-interview-with…

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

END

Interesting:  The Perth Mint annually buys up to 200 million dollars worth of “conflict gold’ from a convicted killer in Papua New Guinea..a breach of its global accreditation and internal policies

 

(Australian Financial Review/GATA)

Australian Financial Review: Perth Mint annually buys up to $200 million in ‘conflict gold’ from murderer

 Section: 

By Angus Grigg
Australian Financial Review, Sydney
Thursday, June 11, 2020

https://www.afr.com/companies/mining/revealed-perth-mint-and-the-convict…

The Perth Mint, owned by the West Australian government, buys up to $200 million of “conflict gold” annually from a convicted killer in Papua New Guinea, a breach of its global accreditation and internal policies.

An investigation by The Australian Financial Review can reveal that the historic mint has repeatedly ignored staff concerns over purchases from small-scale gold miners in PNG, a practice heavily criticized for using child labour, degrading the environment through the use of mercury, and promoting conflict.

… 

Chaired by former Rio Tinto chief executive Sam Walsh and backed by a state government guarantee, the Perth Mint is the largest refiner of newly mined gold in the world and in February said it was at the “forefront of setting the highest possible ethical standards.”

But insiders, speaking on the condition they remain anonymous, said the mint is paying little more than lip service to this pledge by dealing with PNG firm, Golden Valley.

It is owned by Justin Parker, who was convicted of manslaughter in August 2017 and sentenced to 13 years’ jail after beating his helicopter mechanic to death. He was released on parole last year.

Despite Mr. Parker’s conviction, he has retained full ownership of Golden Valley and it remains a large supplier to the mint, regardless of internal reservations.

When a mint employee asked a delegation of senior managers from Golden Valley how they dealt with competition in PNG, a representative said, “It’s easy — a gun to the back of the head.”

Luke van Boehm, the managing director of Golden Valley, denied a comment like this was ever made by anyone at the company.

But he said the Perth Mint had never conducted an audit on its supply chain and conceded that mercury was often used by those it purchased gold from and that children were involved in mining with their families.

“In a country like PNG, all the family gets involved,” he said during a phone interview.

He said Mr. Parker was no longer a director of Golden Valley but continued to have some input into its operations.

Ciaran O’Faircheallaigh from Griffith University, who has studied small-scale gold mining in PNG and cited Golden Valley in his research, said the Perth Mint could never claim its gold was ethically sourced.

“They would have no idea where the gold came from. They would not have a clue,” he said of the mint.

Both Mr. O’Faircheallaigh and Mr. van Boehm said small-scale gold mining provided much-needed income at the village level in PNG and entire communities often depended on it for their livelihood.

Mr. van Boehm said efforts were being made to phase out the use of mercury.

“We are trying to encourage the use of other chemicals,” he said.

The mint insiders said buying from Mr. Parker was highly profitable, as the margin from Golden Valley was 10 times higher compared with other corporate customers such as Newcrest or Lihir Gold.

“Golden Valley is happy to take a cheaper price because the gold is being washed through a government-backed institution,” said one insider. “They know if someone did proper due diligence, then maybe the metal would not be accepted.”

Mr. van Boehm said he was not aware of this discount and denied his gold would be rejected by other refiners.

The mint insiders said in previous years Golden Valley had sold up to 50,000 ounces to the mint, worth $137 million at today’s prices. They said this had increased to about 80,000 ounces last year or $200 million at current prices.

Richard Hayes, chief executive of the Perth Mint, said he could not comment on individual customers but was acutely aware of the “complex issues” associated with small-scale gold mining in developing countries.

He said five of the mint’s largest PNG customers, who bought from small-scale miners, were subject to audits as the country was rated as a “medium risk.”

“All our customers have been granted and currently hold export licences from the Bank of PNG and due diligence documentation accompanies all shipments from the nation,” Mr. Hayes said in a statement.

Like the consumer backlash over “blood diamonds,” which forced buyers and cutters to be more accountable at the end of last century, the gold industry has sought to stamp out “conflict gold” and ensure the integrity of its supply chains in recent years.

This is part of a broader push by companies and government bodies to ensure they meet their environmental, social and corporate governance (ESG) responsibilities.

In the gold sector, the move toward ethical sourcing has been led by the world’s largest gold exchange, the London Bullion Market Association (LBMA), which traces its roots to 1750 and the East India Company.

The LBMA is loosely regulated by the Bank of England.

Under the LBMA’s responsible sourcing policy, refiners such as the Perth Mint commit to not buying gold that promotes conflict, human rights abuses, including child labour, and is sustainably sourced.

“Failure to adhere to the LBMA’s Responsible Sourcing Programme will result in the removal of the refiner from the Good Delivery Lists,” said the LBMA’s chief technical officer Nick Harby in a video explaining the policy.

In a February press release, the Perth Mint said it had “long been at the forefront of setting the highest possible ethical standards across all its operations.”

In launching an ethical supply chain solution, Mr. Hayes talked about “child labour and other abhorrent practices” and how this contrasted with “ethically sourced [gold] from mines in Australia and the United States.”

He made no mention of the mint’s purchases of alluvial gold from PNG, of which Golden Valley is among the largest buyers.

Nor did he mention that these small miners frequently use child labour and often remove impurities through the use of mercury, which is banned in Australia,

“The use of mercury causes serious environmental and health problems. It is unambiguously awful,” said Professor O’Faircheallaigh.

In addition, he said, silt from the gold mining often had an adverse effect on food supplies and water quality downstream, due to increased levels of sediment in rivers.

Professor O’Faircheallaigh said the mint could never say with any confidence that the metal it buys from Golden Valley was ethically sourced.

“Some of it may be” ethically sourced “but equally there would be a high proportion where mercury was used,” he said.

A 2016 report co-authored by Professor O’Faircheallaigh also identified Golden Valley as a supplier of mercury.

“Dealing in bulk mercury can be remarkably lucrative,” the report said, noting the likes of Golden Valley could expect a 10-fold markup.

Mr. van Boehm said the company did sell some mercury but had sought to educate miners on its correct use to avoid the worst side-effects of the chemical. These include physical and mental disabilities in children and compromised development, according to an article published in European academic journal, Chemistry.

“The health effects on the miners are dire, with inhaled mercury leading to neurological damage,” it said. “The communities near these mines are also affected due to mercury contamination of water and soil and subsequent accumulation in food staples, such as fish.”

Another researcher, who asked to remain anonymous due to fear of reprisals, said small-scale gold mining had a highly negative impact on remote villages in the PNG highlands.

The researcher said when gold was discovered, children were often taken out of school and there was an influx of outsiders.

“Suddenly there are guns in the village, along with conflict and crime, which had previously not existed,” the person said. “It is definitely not ethically sourced gold.”

Typicall, gold from these villages would make its way down to a regional centre, where an aggregator such as Golden Valley would purchase it. From here it would be flown by helicopter to Port Moresby and then on to Perth.

* * *

Metals Authority Probes Perth Mint over Gold-Sourcing Claims

By Neil Hume
Financial Times, London
Monday, June 15, 2020

The body that oversees London’s $5-trillion gold market is investigating allegations that the Perth Mint, one of the industry’s biggest refiners, processed tainted metal from small-scale miners in Papua New Guinea.

The London Bullion Market Association said it had launched a review after claims in the Australian media that Perth Mint had bought material from artisanal miners in PNG, which have a reputation for employing children and using mercury to mine gold.

“As the global authority for precious metals, LBMA maintains the highest standards for responsible sourcing,” it said in a statement. “We therefore take very seriously the recent allegations relating to The Perth Mint and its sourcing from Papua New Guinea.” …

… For the remainder of the report:

https://www.ft.com/content/4c569519-a3f2-48a7-a267-a639c450ec42

iii) Other physical stories:

 

Gold ETF Inflows Break Yearly Record In Just Five Months

Via SchiffGold.com,

Holdings in gold-backed ETFs charted another all-time high in May as inflows in dollar-terms have already set a yearly record just five months into 2020.

Globally, funds added another 154 tons of gold to their holdings boosting the total to a record 3,510 tons, according to the latest data released by the World Gold Council.

Over the past 12 months, assets in global gold-backed ETFs have nearly doubled.

In dollar-terms, year-to-date inflows of $33.7 billion have already exceeded the previous high seen back in 2016.

Another month of positive inflows in May, coupled with the rising price of gold, also pushed assets under management (AUM) in gold ETFs to a new record high of $195 billion.

North American firms led regional inflows for the second straight month and hit all-time highs in May. Funds based in North America increased holdings by 102 tons. North American funds now hold 1,815 tons of the yellow metal, surpassing the previous highs of 1,736 tons charted in December 2012.

European funds saw inflows of 45 tons. UK-based funds led the way, accounting for about 65% of the regional total for the month.

Asian funds – primarily those based in China – added to their holdings as well, with inflows of 4.8 tons.

Funds in other regions, including Australia, added 2.6 tons of gold to their holdings.

The World Gold Council listed four factors helping drive the flow of gold into ETFs.

  • The economic and social impact of COVID-19, as most economies remain shut down or are slowly reopening.
  • Tensions between the US and China continue to escalate.
  • Labour markets are facing challenges not seen in generations. In the US, the unemployment rate is already at 14% and may soon reach levels last during the Great Depression of the 1930s.
  • Monetary policy intervention is expanding into asset classes that would have seemed incredibly unlikely even a few months ago, such as high yield (junk) bond ETFs in the US. This has helped push bond yields even lower, reducing gold’s opportunity cost further and adding to market uncertainty as we are in unchartered waters.

Gold was up 2.6% in dollar terms in May. Price volatility was also lower.

At the time of publication, gold has outperformed most major asset classes this year, up by more than 15%. Gold’s performance continues to distinguish itself from the wider commodity spectrum, as broader commodity indices are down 22% – 30% this year and oil (WTI) is down by more than 40%.”

Inflows of gold into ETFs are significant in their effect on the world gold market, pushing overall demand higher.

ETFs are backed by physical gold held by the issuer and are traded on the market like stocks. They allow investors to play gold without having to buy full ounces of gold at spot price. Since their purchase is just a number in a computer, they can trade their investment into another stock or cash pretty much whenever they want, even multiple times on the same day. Many speculative investors appreciate this liquidity.

There are good reasons to invest in ETFs, but they aren’t a substitute for owning physical metal. In an overall investment strategy, SchiffGold recommends buying gold bullion first.

When considering gold-backed ETFs, you should always keep in mind that you don’t actually own the gold. Buying the most common ETFs does not entitle you to any actual amount of the precious metal.

*  *  *

There’s a difference between investing in gold-backed ETFs and physical gold. Learn more here.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0786/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0702   /shanghai bourse CLOSED UP 41.72 POINTS OR 1.44%

HANG SANG CLOSED UP 567.14 POINTS OR 2.39%

 

2. Nikkei closed UP 1051.26 POINTS OR 4/88%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 96.74/Euro FALLS TO 1.1297

3b Japan 10 year bond yield: RISES TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.31/ 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:: 37.85 and Brent: 40.52

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.41%/Italian 10 yr bond yield DOWN to 1.41% /SPAIN 10 YR BOND YIELD DOWN TO 0.55%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.82: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.13

3k Gold at $1727.75 silver at: 17.35   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 3/100 in roubles/dollar) 69.59

3m oil into the 34 dollar handle for WTI and 40 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 107.31 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 .9479 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0710 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 0.32%

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 0.75% early this morning. Thirty year rate at 1.52%

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

6.  TURKISH LIRA:  UP  TO 6.85..

Futures Soar On Stimulus Hopes, Fed Bond Buying, Ignore Geopolitical Clashes

After Monday’s dramatic intraday reversal which saw the S&P500 surge more than 100 points from session lows and closing above its 200-day moving average, ES futures continued their levitation overnight and were trading at 3,110 last, propelled both by Monday’s Fed announcement it would start to buy corporate bonds on Tuesday, and a late Bloomberg report that Trump was seeking a $1 trillion infrastructure proposal to stimulate the economy which would focus on 5G and rural broadband, although reports added it would still under discussion and would need the backing of Congress.

As Bloomberg notes, government stimulus has been a key feature of the global equities rally, despite soaring unemployment and signs that a second wave of the virus has started to emerge. Now there are signals that more economic support is on the way. “The size and the pace of Fed balance sheet expansion is something that will put a floor under global equity markets,” Stephen Gallo, BMO Capital Markets head of European FX strategy, said on Bloomberg TV.

At the same time, investors mostlyignored news of a sharp escalation in Korean tensions, as well as a deadly clash between Indian and Chinese border troops, while expecting a record rebound in May retail sales. Investors will be keeping a close watch on a live telecast of Fed Chair Jerome Powell’s two-day testimony before the Congress which is expected to begin at 10 a.m. ET. Powell’s remarks follow the grim outlook from the U.S. central bank last week that brought back volatility into stock markets after bets of a swift economic rebound helped the Nasdaq confirm a bull market.

As a result of more stimulus hopes, S&P futures rose 1.2% overnight, lifting the S&P 500 index to 9% below its record high hit four months earlier after coming within 5% of that level early last week. U.S. stocks ended a volatile session higher on Monday with the S&P 500 closing above its 200-day moving average, a key technical indicator of long-term momentum.

Travel-related stocks, also known as the “Robinhood darlings”, jumped with Delta Air Lines, United Airlines, Carnival Corp, Norwegian Cruise Lines and Royal Caribbean jumping between 8% and 10% in premarket trading.

In Europe, the Stoxx 600 Index rallied the most in a month lef by construction stocks following a Bloomberg report that the Trump administration is weighing a $1t infrastructure program as part of plans to boost the economy. Stoxx 600 Construction & Materials index gains as much as 4.2%, the most since May 18, led by gains for CRH, HeidelbergCement and LafargeHolcim
Ashtead jumps as much as 19%, touching a record high, boosted by the U.S. plans and 4Q results that Jefferies said were slightly ahead of guidance. Ground engineering specialist Keller up as much as 15% after update.

Asian stocks gained, led by materials and industrials, after falling in the last session. All markets in the region were up, with South Korea’s Kospi Index gaining 5.3% and Japan’s Topix Index rising 4.1%. The Topix gained 4.1%, with TEMONA and Furukawa Battery rising the most. The Shanghai Composite Index rose 1.4%, with Nanjing Iron & Steel and Shanghai Yimin Commerce Group posting the biggest advances.

In geopolitical news, there was a sharp escalation out of North Korea which said it was mulling plan to enter demilitarized zones and its army is preparing to implement government orders. Subsequently, North Korea demolished the inter-Korean joint liaison office. South Korea’s Blue House said Seoul will “strongly respond” if North Korea further worsens the situation, with traders now looking at a US response.

Separately, an Indian Army Colonel and 2 Army soldiers were killed in action during a clash with Chinese troops at one of the standoff points in the Galwan Valley, Ladakh, India Today Senior Editor Aroor; after reports of fresh tensions at standoff points in Easter Ladakh at Pangong Tso/Galwan, according to The Hindu’s Peri. Some reports note that Indian soldiers attacked Chinese soldiers at the border. Thereafter, the Global Times reported that the Chinese Foreign Ministry said that China and India have agreed to resolve bilateral issues through dialogue to ease the border situation and maintain peace and tranquillity in border areas. More recently, the Chinese Global Times editor tweeted “China also suffered casualties in the Galwan Valley in the physical clashes with Indian soldiers, China doesn’t want to have a clash with India, but we don’t fear it”.

In rates, ttreasuries were off the lowest levels of the day although yields remain cheaper by up to 5bp at long end of the curve in a bear-steepening move. Plans for more U.S. stimulus via a $1 trillion infrastructure proposal lifted stocks, weighed on Treasuries as it implied far more issuance to come. Yields cheaper by 0.5bp to 5bp across the curve with front-end out to 7-year sector outperforming, steepening 2s10s by 1.7bp, 5s30s by ~5bp; 30-year yields topped at 1.542%, highest since June 10

In FX, the dollar fell versus most of its Group-of-10 peers following the U.S. infrastructure proposal to revive the virus-hit economy. “Dollar de-basement risks are mounting again and Treasury yields going much higher because of the expected infrastructure spending,” said Mizuho head of strategy Vishnu Varathan. “Markets are anticipating a lot more money flooding into the market with this spending and that the U.S. will have to sell a lot more bonds.” The pound led G-10 gains after talks between U.K. Prime Minister Boris Johnson and the EU’s top officials. Bunds slipped while Italian bonds led outperformance by euro peripheral debt.

Elsewhere, WTI climbed toward $38 a barrel in New York, with Brent trading at $40.58 last amid signs of improving demand and declining production.

Looking at the day ahead, there are a number of data highlights from the US, including May’s retail sales, industrial production and capacity utilization, and finally June’s NAHB housing market index. Elsewhere, Fed Chair Powell will be speaking before the Senate Banking Committee, while we’ll also hear from Fed Vice Chair Clarida, the ECB’s Visco and Bank of Canada Governor Macklem. Oracle is reporting earnings.

Market Snapshot

  • S&P 500 futures up 1.2% to 3,102.50
  • STOXX Europe 600 up 2% to 360.21
  • MXAP up 3.2% to 158.26
  • MXAPJ up 2.6% to 507.74
  • Nikkei up 4.9% to 22,582.21
  • Topix up 4.1% to 1,593.45
  • Hang Seng Index up 2.4% to 24,344.09
  • Shanghai Composite up 1.4% to 2,931.75
  • Sensex up 0.6% to 33,412.76
  • Australia S&P/ASX 200 up 3.9% to 5,942.30
  • Kospi up 5.3% to 2,138.05
  • German 10Y yield rose 1.7 bps to -0.429%
  • Euro up 0.09% to $1.1333
  • Brent Futures up 1.6% to $40.36/bbl
  • Italian 10Y yield rose 1.2 bps to 1.33%
  • Spanish 10Y yield fell 3.2 bps to 0.529%
  • Brent futures up 2% to $40.50/bbl
  • Gold spot up 0.2% to $1,729.35
  • U.S. Dollar Index down 0.1% to 96.60

Top Overnight News

  • The Federal Reserve said Monday that it will begin buying individual corporate bonds under its Secondary Market Corporate Credit Facility, an emergency lending program that to date has purchased only exchange-traded funds
  • Stocks rose globally alongside U.S. equity futures after news about American monetary and fiscal stimulus plans bucked up investor sentiment in face of worries over a second virus wave
  • The U.K. and European Union moved a step closer to reaching a deal over their future relationship, with the bloc’s top officials confident Boris Johnson is willing to compromise and the prime minister saying the prospects for an accord are “very good”
  • U.K. jobless claims more than doubled to almost 3 million during the virus lockdown, adding urgency to Bank of England and government efforts to cushion the blow
  • The Bank of Japan increased its lending support aimed at struggling companies while leaving its main monetary policy settings untouched as it continues to monitor the economic fallout from the coronavirus pandemic
  • Japanese fund managers sold the most U.S. agency bonds in six years in April after buying an unprecedented amount the previous month, according to data from the Treasury Department

Asia-Pac bourses notched considerable gains as the region took impetus from Wall Street’s recovery after the pace of infections slowed in key US states and the Fed announced its Secondary Market Corporate Credit Facility will begin purchasing corporate bonds. ASX 200 (+3.9%) and Nikkei 225 (+4.9%) surged from the open with energy and tech leading the firms gains in Australia and Viva Energy the biggest gaining stock following its guidance, while stocks in Tokyo also rallied as they coat-tailed on the recent favourable currency moves and with focus on the BoJ announcement in which the central bank kept policy settings unchanged as expected but noted the size of market operations and lending facilities to address the pandemic is likely to increase to around JPY 110tln from the current JPY 75tln. Hang Seng (+2.4%) and Shanghai Comp. (+1.4%) were also positive amid some moderation in the US-China related headlines with the US to permit Chinese carriers to continue to operate 4 flights from China per week and with the US to also allow companies to work with Huawei to develop 5G standards despite its blacklisting, although gains for the mainland were relatively reserved compared to its peers after the PBoC’s net liquidity drain. Finally, 10yr JGBs were lower in which they briefly fell below the 152.00 level amid spill over selling from USTs and as stock markets surged, while the losses in bonds also followed the BoJ decision to maintain its monetary policy settings as expected.

Top Asia News

  • Rupee Declines With Stocks on India-China Border Face-Off

European equities drift lower as trade is underway, but the region remains in firm positive territory [Euro Stoxx 50 +2.4%] despite the slew of geopolitical developments in early EU hours including further souring in inter-Korean relations alongside clashes between nuclear powers India and China. Some participants point yesterday’s recovery to the recent Fed decision to directly purchase corporate bonds, but scepticism remains regarding the stock market “shrugging off” stacking negative fundamentals and rising uncertainty – with the latest BofA June Fund Manager survey also noting that a record 98% of investors say the stock market is the most overvalued since 1998. Nonetheless, broad-based gains are seen across Europe of some 2%, whilst sectors also point to risk appetite in the market as cyclicals outpace defensives. In sectoral breakdown mimics the “risk-on” sentiment as Material, Banks and Travel & Leisure stand as the top performers, whilst Health, Retail and Media lag. In terms of individual movers, the strong performance in the Travel sector sees Carnival (+8.8%), easyJet (+7.3%), IAG (+7.7%) and Tui (+6.7%)  leading the gains – with the latter also noting that the easing of travel restrictions allows the group to partially restart its summer 2020 programme. Ashtead (+7.0%) trimmed earlier gains but holds a spot among the leaders following its trading update. Commerzbank (+2.5%) is unfazed by the spat with its second largest shareholder Cerberus, who recently stated the German bank has not executed or embraced any actions put forward by Cerberus.

Top European News

  • U.K. and EU See Brexit Deal a Step Closer After Johnson Call
  • U.K. Jobless Claims Double to Almost 3 Million Amid Lockdown
  • European Construction Stocks Bounce on U.S. Infrastructure Plan

In FX, the DXY is trying to form a base around 96.500 following its late reversal through the 97.000 level on Monday when flagging risk sentiment due to heighted 2nd wave coronavirus fears was given a double boost by the Fed announcing individual corporate bond buying under the SMCCF program and US President Trump’s admin working on a draft proposal for a Usd 1tn infrastructure bill. However, subsequent flare ups on the Korean border, between China and India, Saudi Arabia and the Houthis, Iran and the US, have sapped momentum from riskier assets like stocks and the Dollar has reclaimed some of its losses as a result along with similar rebounds in fellow safe havens. Ahead, US retail sales and ip data before Fed chair Powell’s Senate testimony.

  • GBP – Aside from the broader upturn in risk appetite, Sterling has received an independent boost via latest Brexit news as the Times reports that the EU may be ready to back down on fishing rights rather than somewhat inconclusive UK labour and earnings data. Indeed, Cable is holding relatively firmly above 1.2600 and Eur/Gbp is back down below 0.9000, albeit the former off best levels close to 1.2690 and the 200 DMA (1.2692) and the latter rebounding from a dip under 0.8950.
  • EUR/AUD/CHF/CAD – All moderately firmer against the Greenback, with the Euro reclaiming 1.1300+ status and eclipsing a couple of HMAs (100 and 200) on the way up to around 1.1350, and maintaining gains after an encouraging ZEW survey, while the Aussie has retained a grip on the 0.6900 handle in wake of RBA minutes reaffirming an on hold stance with a bias to do more if needed. Elsewhere, the Franc remains above 0.9500, but flattish vs the Euro either side of 1.0750 following a modest Swiss Government GDP forecast upgrade, though still predicting a deep 2020 contraction and the trough in Q2, while the Loonie is meandering between 1.3510-1.3600 parameters amidst consolidation in oil prices off recent lows as the IEA raises its global demand estimate by nearly 500k bpd for this year.
  • JPY/NZD/SEK – Marginal G10 underperformers with the Yen pivoting 107.50 vs the Buck after the BoJ left key policy metrics unchanged as expected, but increased COVID-19 lending by Jpy 35 tln, the Kiwi relinquishing 0.6500 ahead of NZ Q1 current account balances and the Swedish Crown ruffled by the Swedish Labour Board lifting its 2020 jobless forecast appreciably and the Riksbank reporting a deterioration in bond market functioning to leave Eur/Sek elevated above 10.5000.
  • EM – No surprise to see pressure on the Krw beyond 1210 vs the Usd in light of North Korea destroying the Inter-Korean joint liaison office, according to South Korea’s Ministry of Unification, but regional currencies in general are jittery, bar the Zar and Mxn that have reversed some of Monday’s declines to revisit resistance ahead of psychological/round number levels at 17.0000 and 22.0000 respectively.
  • RBA Minutes from June 2nd Meeting affirmed the target for 3yr yields would be maintained and the central bank will also not increase the cash rate until progress was made on its employment and inflation targets. The minutes stated that members recognized the global economy was in a severe downturn and that the Australian economy was experiencing its largest contraction since the 1930s, while it is prepared to scale up bond purchases if needed but also noted it had only purchased government bonds only on one occasion since the prior meeting. Furthermore, members noted yields on bonds with 1-2 years to maturity had risen to be a few basis points higher than the yields on 3-year bonds and if this should continue, they would consider purchasing bonds in the secondary market to ensure that these short-term yields are consistent with the target for three-year yields. (Newswires)

In commodities, WTI and Brent front month futures continue to grind higher since the European cash open as participants digest a string of geopolitical headlines alongside the IEA monthly oil market report. Firstly, tensions ramped up in the Korean Peninsula after North Korea destroyed the inter-Korean liaison office, as well as a standoff between nuclear powers India and China in which a number of soldiers lost their lives in the clash – which China blames India for instigating. Meanwhile, the IEA raised its 2020 global oil demand growth forecast by 500k BPD amid demand from China and India. 2021 oil demand is forecast to rise by 5.7mln BPD, which remains below 2019 levels. Furthermore, the agency does not expect demand to return to pre-crisis levels until at least 2022. This is in stark contrast to the EIA STEO report last week which downgraded its respective 2020 global demand forecast by 120k BPD. The two reports, however, synchronise on the view that US crude is set to fall this year: the IEA expects a decline of 900k BPD and the EIA a fall of 670k BPD.  WTI July gains a firmer footing above USD 37/bbl (vs. 36.38/bbl low) whilst its Brent Aug prices extends above USD 40/bbl (vs. 38.95/bbl low). Next up in terms of scheduled events, traders will be eyeing the weekly Private Inventory data for a glimpse at crude stocks over the last week. Further head, the JTC will be convening tomorrow ahead of the JMMC meeting on Thursday. Spot gold meanwhile retains an underlying bid above USD 1730/oz amid the aforementioned developments in the geopolitical sphere ahead of Fed Chair Powell’s testimony, albeit the statement is unlikely to divert much from the FOMC script, but the Q&A section of the event will garner attention. Copper prices meanwhile track stocks higher but found resistance at USD 2.625/lb as the red metal remains within Friday’s range.

US Event Calendar

  • 8:30am: Retail Sales Advance MoM, est. 8.35%, prior -16.4%
  • 8:30am: Retail Sales Ex Auto MoM, est. 5.5%, prior -17.2%
  • 8:30am: Retail Sales Control Group, est. 5.2%, prior -15.3%
  • 9:15am: Industrial Production MoM, est. 3.0%, prior -11.2%; Manufacturing (SIC) Production, est. 5.0%, prior -13.7%
  • 10am: Business Inventories, est. -1.0%, prior -0.2%
  • 10am: NAHB Housing Market Index, est. 45, prior 37

DB’s Jim Reid concludes the overnight wrap

Sorry to go back to last week’s meanderings, but Chill Acoustic – the radio station I’ve very happily listened to while working from home for the last three months – is still stuck on the same track it was 6 days ago. This has ruined my flow and is starting to hit my productivity as I have to keep going back to check if it’s been fixed. So if anyone knows how on earth I can get them to fix this I’m all ears. I’m not sure if anyone actually controls this radio station. It has 19 twitter followers, hasn’t posted a tweet or a Facebook post for a couple of years and has a seemingly unmanned email address. I suspect I was the only global listener for most of the last three months. It was great while it lasted.

Unlike “Chill Acoustic”, the mood music for markets at the end of yesterday was very different to that at the start. Indeed, a day that started with fears of a second wave ended with waves of liquidity completely reversing the session from the London open. At roughly 7am London time, S&P futures were down -3.29% from Friday’s close but rallied around +4.7% from these lows as the day progressed. The actual S&P 500 closed +0.83% with tech outperforming (NASDAQ +1.43%). The market was slowly recovering from the lows prior to the US open but in the second half of the session a pair of headlines saw the index push higher into the close. First was a report that the US may allow domestic companies to work with China’s Huawei to develop new 5G standards, which could be seen as ameliorating some of the recent tension. The S&P rose around 0.6% on this, but then the real move came in the early afternoon when headlines flashed through that the Federal Reserve would start purchasing a broad portfolio of US corporate bonds. The index rose over 1.3% on that news even if it was hard to find something new in that announcement. Overall it was a remarkable turnaround, given where futures had been earlier in the day. News overnight suggesting that the White House is considering $1tn in infrastructure spending has propelled futures further too (more on that shortly).

As another way to look at the switch in sentiment, at around noon (NY time), 80% of S&P 500 stocks were down on the day, and all sectors except Consumer Staples were in the red, however by the end of the day 77.6% of the index was higher and every sector was up. Furthermore, when S&P futures hit their overnight low, the VIX volatility index hit its highest intraday level (44.37) since April 22, before actually closing down -1.7pts at 34.4pts. While in Europe the STOXX 600 also recovered from its opening lows to close down only -0.27%, but the index missed the real late surge in risk.

Asian markets have made strong headway this morning also. The Nikkei (+3.93%), Hang Seng (+2.95%), Kospi (+4.34%) and Asx (+3.64%) have all posted big gains, while the Shanghai Comp has advanced a more modest +0.87%. As mentioned above, news that the White House is considering a $1tn infrastructure proposal has seemingly also given risk assets a boost. The prospect of further stimulus was already known however the size and timing was more up in the air. According to a Bloomberg story, the preliminary version of the proposal would see funding reserved for traditional infrastructure work like roads and bridges as well as 5G wireless infrastructure and rural broadband. The current infrastructure funding law is due for renewal by the end of September and the House Democrats have already proposed their own $500bn proposal over five years. For now there is no detail on how long the administration’s draft would authorize spending. Nevertheless, long-end Treasuries are up 6bps post the news, while the short-end is little changed.

In other news, the BoJ left rates and asset purchases unchanged this morning while revising up the estimated size of its virus-response measures and pledged to do more to help the economy if needed. The central bank now estimates the size of its overall package of virus measures at JPY 110tn ($1tn), up from JPY 75tn as the government had expanded its aid for businesses in measures linked to one of the BoJ’s lending programs. Elsewhere, North Korea’s state media is reporting that the regime is reviewing a plan to send its army into some areas of the demilitarized zone separating the country from South Korea.

Moving on. As mentioned above, a big part of the late day rally yesterday was the expected news that the Fed was about to start buying corporate debt. This should not be seen as new as this was already lined up as part of the Secondary Market Corporate Credit Facility (SMCCF). Up to this point the central bank has been just purchasing ETFs, but they are now making it official that they’ll start buying individual securities this week. What was new information, is that the Fed will be essentially creating its own index against which it will manage its SMCCF bond portfolio. To remind readers the criteria of the bonds that are purchasable remain the same – less than 5yrs to maturity, a US company, IG rated or a fallen angel as of March 22 or later.

The other main story bubbling in the background are the rise in cases across various US states. Cases in the US are slowing overall, but the hot spots we have highlighted in recent days continue to remain the main focus – namely Florida, Texas, Arizona and California. Florida cases were up 2.3% yesterday, compared with a 7-day average of 2.4%, while Texan cases rose 1.9% for the second day in a row. Texas also set a record with most daily hospitalizations for a fourth day in a row with over 2300 people admitted. The governor of California came out yesterday to say that the rate of positive tests continues to fall, and that they would continue to stay ahead of new problem areas. See the full run down in the full report today where we show the usual case and fatality tables including the four current in-focus US states. Elsewhere, India continues to see case growth at just under 4% per day, even as the country gets ready to reopen. India and South America remain the big risks outside the US while China reported 40 new cases on Monday and locked down more residential compounds around the area close to a market where a case had been found.

Back to markets yesterday and sovereign bond yields tracked equity prices yesterday, recovering from overnight lows throughout both the European and US sessions. By the close, yields on 10yr US Treasuries had risen +1.8bps and bunds finished down -0.7bps.There was a slight narrowing in peripheral spreads in Europe, with yields on 10yr Spanish (-2.6bps), Portuguese (-1.8bps) and Greek (-5.7bps) debt all falling over bunds. BTPs were the exception though, with 10yr yields up +1.8bps.

Onto Brexit, and there were a few headlines following the high-level meeting that took place yesterday between UK Prime Minister Johnson and the Presidents of the European Commission, Council and Parliament. Most notably, Prime Minister Johnson said afterwards to Sky News that “What we all really said today is the faster we can do this the better, we see no reason why you shouldn’t get that done in July”, and that “I don’t want to see it going on until the autumn, winter, as perhaps in Brussels they would like.” So a clear aim to conclude matters in the next few weeks, during which intensified negotiations are due to take place, with talks each week between the two sides from the week commencing 29 June to the week commencing 27 July. The press are generally reporting the fact that Mr Johnson was upbeat and keen to accelerate talks as a positive even if lots of areas of disagreements need to be sorted.

In terms of yesterday’s data, the Empire State manufacturing survey from the US beat expectations, with a -0.2 reading in June for the general business conditions indicator (vs. -29.6 expected). Although much better than expected, it’s worth bearing in mind (as with the PMIs) that this is a diffusion index, so a negative reading still means that slightly more respondents said that conditions had worsened in June compared with the previous month, rather than improved. So we shouldn’t get too carried away by the outperformance relative to expectations. It was a similar story for the new orders component, which rose to -0.6 from -42.4 the previous month.

To the day ahead now, and there are a number of data highlights from the US, including May’s retail sales, industrial production and capacity utilisation. Meanwhile there’s also June’s NAHB housing market index, along with UK unemployment data for April and the ZEW survey for June from Germany. Elsewhere, Fed Chair Powell will be speaking before the Senate Banking Committee, while we’ll also hear from Fed Vice Chair Clarida, the ECB’s Visco and Bank of Canada Governor Macklem.

 

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 41.72 POINTS OR 1.44%  //Hang Sang CLOSED UP 561.14 POINTS OR 2.39%   /The Nikkei closed UP 1051.26 POINTS OR 4.88%//Australia’s all ordinaires CLOSED UP 3.91%

/Chinese yuan (ONSHORE) closed UP  at 7.0786 /Oil UP TO 37.85 dollars per barrel for WTI and 40.52 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.0786 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0782 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea//North Korea

Monday night:

North Korean army fully ready to enter the DMZ

(zerohedge)

North Korean Army “Fully Ready” To Enter DMZ, “Throw Garbage In The Trash”

According to state-owned news agency KCNA, North Korea’s military is “studying an action plan” to advance into zones that were demilitarized under an agreement with South Korea.

 

KCNA cites a statement from the army’s General Staff, who confirmed the North Korean army is “fully ready” to implement government orders and is on “high alert” to carry out “external measures” coming from the government.

“Our army is keeping a close watch on the current situation in which the north-south relations are turning worse and worse, and getting itself fully ready for providing a sure military guarantee to any external measures to be taken by the Party and government,” the General Staff of the Korean People’s Army said in a statement carried by the Korean Central News Agency.

The KPA is studying “an action plan for taking measures to make the army advance again into the zones that had been demilitarized under the north-south agreement, turn the front line into a fortress and further heighten the military vigilance against the south,” it said.

“We will map out the military action plans for rapidly carrying out the said opinions to receive approval from the Party Central Military Commission,” it added.

This major increase in rhetoric comes after North and South cut off formal communications and hot on the heels of last week’s comments by Kim Yo Jong, the sister of North Korean leader Kim Jong Un, that it was “high time” to break ties with South Korea, saying the next action against the “enemy” would come from the army.

“If the South Korean authorities are also curious about the next plan that we might be wondering about, this opportunity will be handed over to the General Staff of the Korean Army.

I believe that our military will also decide and carry out something that will cool the people’s anger somewhat.

Garbage should be taken into the trash.”

 

Doesn’t sound like peaceful protestations.

South Korean President Moon Jae-in was planning to meet top aides Monday after his security officials held an urgent meeting via video conference early Sunday to discuss the current situation on the divided peninsula, and possible responses, his office said.

In Major Escalation, North Korea Blows Up South Korean Liaison Office

When Kim Jong Un’s sister, Kim Yo Jong – rumored to be even more brutal and ruthless a leader than her brother – started making threats against the South and the US, while declaring that President Trump would “never again” be allowed to use the country to score political points, we suspected something was afoot.

 

The Kim siblings

Less than two weeks after abruptly cutting off all communication with the South (including an emergency cross-border hotline), North Korea has taken the extreme and unprecedented step of blowing up a liaison office set up along the heavily militarized border between the two countries (which are still technically at war).

According to media reports and black and white surveillance footage shared by South Korea, a loud explosion was heard and smoke could be seen rising into the air as North Korea blew up the inter-Korean liaison office in Kaesong – the de facto embassy between the two restive neighbors – in a dramatic escalation of tensions with South Korea near the the demilitarized zone.

Here’s more from Reuters:

North Korea blew up an office set up to foster better ties with South Korea in its border town of Kaesong on Tuesday after it threatened to take action if North Korean defectors went ahead with a campaign to send propaganda leaflets into the North.

North Korea’s KCNA state news agency said the liaison office, which had been closed since January over fears of the novel coronavirus,was “tragically ruined with a terrific explosion.”

Black-and-white surveillance video released by South Korea’s Ministry of Defence showed a large explosion that appeared to bring down the four-storey structure. The blast also appeared to cause a partial collapse of a neighbouring 15-storey high-rise that had served as a residential facility for South Korean officials who staffed the liaison office.

North Korea started lashing out at its southern neighbor a few weeks ago, demanding that the Blue House stop South Korean activists sending propaganda pamphlets over the border to try and encourage defectors. The liaison office – described as a gleaming blue building amid a drab industrial backdrop – was recently renovated by the South. Officials became suspicious about an impending attack yesterday, and had been monitoring the liaison office.

KCNA said the office was blown up to force “human scum and those, who have sheltered the scum, to pay dearly for their crimes”. North Korea refers to defectors as “human scum.”

A South Korean military source told Reuters that there had been signs North Korea was going ahead with the demolition earlier in the day, and South Korean military officials watched live surveillance imagery as the building was blown up.

The first diplomatic mission of its kind, the inter-Korean liaison office was established in 2018 as part of a series of projects aimed at reducing tensions between the two Koreas.

The building had been originally used as offices for managing operations at the Kaesong Industrial Complex, a joint venture between the two Koreas that was suspended in 2016 amid disagreement over the North’s nuclear and missile programmes.

South Korea spent at least 9.78 billion won (US$8.6 million) in 2018 to renovate the building, which stood as a gleaming blue glass structure in the otherwise drab industrial city.

Kim’s sister Kim Yo Jong was quoted by state press over the weekend warning about the impending attack, calling on the military to “decisively carry out the next action,” and warning that “…before long, a tragic scene of the useless north-south joint liaison office completely collapsed would be seen.”

Eager to try and preserve relations, the South has asked activists to cease with the propaganda drops, which typically include flyers, $1 bills, mini radios and USB sticks containing South Korean dramas and news usually sent by balloon over the border or in bottles by river.

A rep for the South Korean military told Reuters that the South is “taking the situation seriously.”

Of course, the DMZ isn’t the only border hotspot to emerge on Tuesday. In other news, Chinese forces killed 3 Indian troops during a border confrontation – the first clash between the world’s two most populous countries along the border in nearly half a century.

END

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/MONDAY NIGHT

Wealthy Chinese citizens are rushing to move cash abroad as they fear Yuan weakness

(zerohedge)

Wealthy Chinese Rushing To Move Cash Abroad Ahead Of Yuan Weakness

Wealthy Chinese citizens are going to great lengths to move money out of the country amid worries over a weakening Yuan and growing trade tensions with the United States, according to the Nikkei Asian Review.

China caps foreign exchange to $50,000 per year, per person. For overseas investments, buyers typically use multi-member families to pool their funds and exceed the limit, or they will bring cash while traveling abroad – a strategy which has been put on hold during the pandemic travel bans.

“There is no room for negotiation today,” a black-market currency dealer said when approached on West Nanjing Road, a bustling commercial strip in Shanghai, last week. “It’s going to be 7.2 yuan to the dollar.

The official rate was 7.06 that day, but the man, who was a little past his prime, was defiant. At one point late last month, the yuan had sunk to 7.19 in overseas trading. He was confident in the direction of the weakening currency.

Oh, I can help you send money overseas too. I have a friend who can do that,” he said, before quickly leaving the scene. Police in the area are said to have become a bit stricter of late. –Nikkei Asian Review

Not only are affluent Chinese setting up more dollar accounts in Hong Kong to send money overseas, interest in foreign real estate and insurance products are making a resurgence as the coronavirus pandemic has abated – or paused.

One investment company is pitching real estate in Ireland – touting it as immune to deteriorating relations with the West. Returns? ” At the end, the executive showed a 1.32 million euro ($1.5 million) home with an expected return of nearly 3%,” according to the report.

The talk was the latest of a series of webinars hosted since May by Juwai, a Chinese brokerage specializing in emigration, real estate and education opportunities abroad. Malaysian and Japanese properties have also been featured.

Such locations as Malta and Cyprus are growing popular, according to another brokerage. –Nikkei Asian Review

According to French bank Natixis, Chinese capital outflows amounted to just $1 billion in the first quarter of 2020 due to travel bans putting the brakes on the outbound movement of funds. Once the borders reopen, that is likely to increase.

“The yuan weakened more than 10% in two years,” said one insurance broker in Hong Kong whose products are denominated in foreign currencies. “You need foreign currencies to protect your assets.”

Meanwhile, rich Hong Kong residents are similarly beginning to shuffle cash overseas – opening offshore accounts, applying for new passports, and reducing their exposure to Hong Kong in a way that allows them to tap into their assets at a moment’s notice, according to Bloomberg.

Private bankers say their clients accelerated contingency planning efforts after China announced last month it would impose controversial national security laws on Hong Kong. The legislation threatens to erode the former British colony’s judicial independence, provoke sanctions from the U.S. and revive street protests that battered the tourism and retail industries even before the coronavirus outbreak plunged the economy into its deepest recession on record. –Bloomberg

What we’re basically seeing is a bit like a slow-moving train wreck,” said Richard Harris, CEO of Hong Kong-based Port Shelter Investment Management. “People who haven’t moved their money out may be tempted to think: ‘Well, maybe I should be moving my money out.’ That process is likely to continue.”

That said, Bloomberg also points out that “many Hong Kong entrepreneurs and high-earning professionals are sounding a more pessimistic note.”

Sam, a senior investment banker in Hong Kong, has decided to leave the city. The 43-year-old is emigrating to Australia with his wife and two young boys in about three months, the second time he will have left Hong Kong during a period of political turmoil. Sam grew up in the city, but moved to Brisbane when he was 12 after his parents got spooked by China’s crackdown on protesters in Beijing’s Tiananmen Square in 1989. He came back to Hong Kong 20 years ago for his career but now sees no upside to staying.

“Things are looking bad and deteriorating,” he said. “We may as well pack our bags and move to Australia so that the kids can have a better environment growing up.”

* * *

Margaret Chau, a Hong Kong-based immigration program director for Goldmax Immigration Consulting Co., said inquiries at her firm have jumped about five-fold after news of the national security legislation. For now, most of her wealthy customers are more interested setting up an escape route than leaving right away.

They see this as a backup plan,” Chau said.

Kerry Goh, chief executive officer of multi-family office Kamet Capital in Singapore, said his clients have shifted from asking generic questions about moving out of Hong Kong to making detailed inquiries about everything from schools to visas and bank accounts.

“What’s happened in Hong Kong has really sped up the timing of 2047,” Goh said, referring to the expiration date of China’s 50-year pledge to preserve Hong Kong’s autonomy after the handover from Britain. “As Hong Kong’s troubles shoot up, the benefits of Singapore have become more self-explanatory.” –Bloomberg

“I could buy a much bigger flat in London, so why not?” said 34-year old Hong Kong executive, ‘Dennis,’ who says his family and many of their friends have begun moving cash out of the city. “I’m just trying to protect my money against any uncertainty.”

END
CHINA/INDIA/TUESDAY MORNING
Major escalation on the border between India and China as Chinese forces kill 3 Indian soldiers..the first border clash in 50 years
(zerohedge)

Chinese Forces Kill 3 Indian Troops During First Deadly Border Clash In Nearly 50 Years

Following days of escalating tensions between the two nuclear-armed neighbors, Indian Army officials confirmed that three troops – an officer and two soldiers, to be more precise – had been gunned down by Chinese forces during a “violent faceoff” in Galwan Valley in the Ladakh region, which rests along the country’s border with China on Monday night.

A statement from the Indian Army says both sides were meeting to diffuse tensions building up on the border in the last several weeks. Other reports indicate the soldiers weren’t shot but had been killed during a rock-throwing melee reminiscent of another border incident back in May, where both sides reported injuries.

A statement from the Indian Army says both sides were meeting to diffuse tensions building up on the border in the last several weeks. Other reports indicate the soldiers weren’t shot but had been killed in a rock-throwing melee — very similar to what happened in May along the border when both sides reported injuries.

“The loss of lives on the Indian side includes an officer and two soldiers,” the statement said. “Senior military officials of the two sides are currently meeting at the venue to defuse the situation.”

This is the first confrontation between both sides in which soldiers have died since the mid-1970s. China also confirmed that it “suffered causalities in a border clash with India,” as the Global Times affirmed.

Hu Xijin 胡锡进

@HuXijin_GT

Based on what I know, Chinese side also suffered casualties in the Galwan Valley physical clash. I want to tell the Indian side, don’t be arrogant and misread China’s restraint as being weak. China doesn’t want to have a clash with India, but we don’t fear it.

Chinese foreign ministry spokesperson Zhao Lijian said Tuesday that a “clash broke out” between China and India’s border defense troops in the Galwan Valley. He said, “Indian troops crossed the border for illegal activities and launched provocative attacks against Chinese personnel, and the Chinese side has lodged a strong protest and solemn representation.”

For the last month, both sides have been beefing up their defenses along the Himalayan border.

China has been more assertive in defending its borders and territorial claims in a post-corona world. In recent months, Beijing has launched war drills in the South China Sea and flew military planes around Taiwan.

The border clash resulted in a decline in the rupee and Indian sovereign bonds.

Discussing the impact on local markets, Harish Agarwal, a trader with FirstRand Bank in Mumbai, told Bloomberg, the “news has rattled the market sentiment and that’s getting reflected in market moves.”

USD/INR rises to 76.26,  though it faded to 76.08-76 immediately after the spike

while the Indian 10 Year Benchmark climbed to 5.846%…

NIFTY 50 slid on the border clash report, though it recouped most of those losses to close in the green.

end

CHINA/INDIA
India confirms 20 soldiers killed in a border clash with Chinese forces. Strangely China states that “no shots were fired”
(zerohedge)

India Confirms 20 Soldiers Killed In Border Clash With Chinese Forces; Reports Of 43 PLA Casualties

Earlier in the day we reported that Indian Army officials said that three troops – an officer and two soldiers, to be more precise – had been gunned down by Chinese forces during a “violent faceoff” in Galwan Valley in the Ladakh region Monday night.

In an official follow-up statement, the Indian Army now says as of Tuesday evening local time that an additional seventeen soldiers were critically injured in the exchange of fire, and since succumbed to their wounds after being “exposed to sub-zero temperatures in the high altitude terrain.”This brings the official Indian death toll to 20 soldiers killed.

With the whole incident still shrouded in contradictory claims and lack of confirmation on potential Chinese casualties from Beijing – even after widespread unverified Indian media reports claimed that up to 43 Chinese People’s Liberation Army (PLA) were killed or injured in the clashes, one thing is for sure — that this is the biggest and deadliest border clash between the nuclear-armed neighbors in a half-century

 

India-China Ladakh, Indian media file image.

The only thing approaching an ‘official’ statement from Beijing appears to come via state media. The highly visible editor of state-run Global Times Hu Xijin, who’s often served as unofficial mouthpiece conveying Beijing official sentiment to the West tweeted the following in the aftermath Tuesday, calling it “goodwill from Beijing”:

The Chinese side didn’t release number of PLA casualties in clash with Indian soldiers. My understanding isthe Chinese side doesn’t want people of the two countries to compare the casualties number so to avoid stoking public mood.

Importantly, Xijin confirmed that there were indeed casualties on the Chinese side.

Hu Xijin 胡锡进

@HuXijin_GT

Chinese side didn’t release number of PLA casualties in clash with Indian soldiers. My understanding is the Chinese side doesn’t want people of the two countries to compare the casualties number so to avoid stoking public mood. This is goodwill from Beijing.

He stated further: “Based on what I know, Chinese side also suffered casualties in the Galwan Valley physical clash,” in a follow-up tweet.

“I want to tell the Indian side, don’t be arrogant and misread China’s restraint as being weak. China doesn’t want to have a clash with India, but we don’t fear it,” the GT editor added.

And BBC reports of the new statements:

It added that “17 Indian troops who were critically injured in the line of duty” and died from their injuries, taking the “total that were killed in action to 20”.

China did not confirm any casualties, but accused India in turn of crossing the border onto the Chinese side.

Chinese foreign ministry spokesman Zhao Lijian said India had crossed the border twice on Monday, “provoking and attacking Chinese personnel, resulting in serious physical confrontation between border forces on the two sides”, AFP news agency reported.

India blamed Beijing for “an attempt by the Chinese side to unilaterally change the status quo” on the border, according to Indian media.

With tensions this high, and no doubt the national medias of each country about to spend days whipping their citizens into a frenzy, there’s likely more to come along the restive and disputed Line of Control (LOC).

We should add that strangely, the Indian army is still claiming as of Tuesday that “no shots were fired” in this latest major clash.

This is of course a not so insignificant detail which has left many observers scratching their heads, but then again, border skirmishes between the two have been known to involve stones, sticks, and fist-fights. Given the high casualty count, gunfire is most likely, or perhaps they fought with bayonets?

end

4/EUROPEAN AFFAIRS

UK

UK police officers are told by BLM protesters to “take a knee”

Watson/SummitNews

UK Police Officers Told To “Take A Knee” For BLM Protesters

Authored by Paul Joseph Watson via Summit News,

Police officers in the UK have been advised by their superiors to ‘take a knee’ in front of Black Lives Matter protesters and warned there’ll be drawbacks if they refused to do so.

Yes, really.

Following footage of officers doing precisely that at numerous BLM protests around the country, it has been confirmed that the suggestion came from above.

“Hertfordshire Constabulary said those who chose not to make the solidarity gesture ‘may become the focus of the protesters’ attention’,” reports the Mail on Sunday.

“The advice was issued during a recent operational briefing and points out that, when officers kneel down – joining in the symbolic stance of the Black Lives Matter movement – it ‘has a very positive reaction on the protest groups’.”

The advice was given despite the fact that many BLM demonstrations have descended into anarchy and violent attacks on police officers.

“It’s absurd. Will officers be expected to make similarly appeasing gestures at political events – far-Right protests, for instance?” asked one senior detective.

Former Home Secretary David Blunkett also slammed the idea, saying that police are “there to ensure a safe demonstration, not to make political statements.”

“That Hertfordshire police want their officers to take the knee before protestors is a total surrender to anarchy, Marxism and an organisation that wants them abolished. Insanity mixed with cowardice,” remarked Nigel Farage.

The advice is stunning because it suggests that officers across the country are being ordered to cave to the mob and be lax in enforcing the law against rioters.

Nigel Farage

@Nigel_Farage

That Hertfordshire police want their officers to take the knee before protestors is a total surrender to anarchy, Marxism and an organisation that wants them abolished. Insanity mixed with cowardice. https://www.thesun.co.uk/news/11859702/police-force-warns-kneel-blm-targeted/ 

Police force warns officers who don’t kneel at Black Lives Matter rallies that they may be targeted…

A POLICE force has urged its officers to ‘take the knee’ in support of Black Lives Matter protesters – or face trouble from protesters. Hertfordshire Constabulary says those who d…

thesun.co.uk

 

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5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/VENEZUELA

Round 2 starts as Iran is gearing up for more gas shipments to Venezuela.  Will the USA intercept these cargo ships this time?

(zerohedge)

Iran’s IRGC Gears Up For ‘Routine’ Fuel Shipments To Venezuela, Defying Trump

Here we go again — Iran is prepping a round two of major sanctions-busting gas delivery to fuel-starved Venezuela, which is of course rich on heavy crude oil but currently lacks the capacity to refine it based on its derelict and badly in need of repair facilities.

Amid continued White House threats of military intervention to uphold a sanctions blockade on the Latin American country, “Iran may send two or three shipments per month in regular sales of gasoline to Venezuela,” reports Reuters.

It’s a clear direct challenge to the Trump administration, after both “rogue” states last month celebrated five Iranian tankers loaded with gasoline successfully making it to Venezuela and offloading fuel, for which Maduro sent a military escort which included jets, helicopters, and naval patrols.

 

AP file image: IRGC speedboat near an oil tanker in the gulf.

But local media suggests the delivery, estimated at 1.5 million barrels of fuel, has made little noticeable impact on the long lines at gas stations across Venezuela.

The last round of deliveries appeared to have been a ‘test run’ of sorts, given Washington not only threatened naval intervention against the tankers, but directed threat of punitive action against any regional ports which accept them.

The deliveries could now become monthly, Reuters reports, also driven by the global oil glut leaving the Islamic Republic desperate to offload its abundant domestic produced fuel:

Two of the sources said Iran’s powerful Revolutionary Guards military unit, which answers to Supreme Leader Ayatollah Ali Khamenei, were determining policy on Venezuela.

“This is a long-term strategic decision made by the state to expand influence,” said one Iranian trader familiar with the policy, likening it to Iran’s cargoes for Syria.

teleSUR English@telesurenglish

The shipment of ‘s oil tankers to is part of the scientific and industrial cooperation between the two nations, a solidarity action seeking to supply fuels to the Venezuelan internal market.

Embedded video

Regardless, there’s no doubt Pompeo and the State Department will further see continued Iran deliveries part of the Islamic Republic’s expanding influence operations in South America.

Last year Pompeo accused Iran-backed Hezbollah of penetrating Latin America in alleged global narcotrafficking operations, though there’s been little to no evidence backing this claim.

6.Global Issues

CORONAVIRUS/UPDATE

A study finds that Dexamethasone can help gravely ill patients.  The virus causes a “storm” of defense systems of the body.  The problem is this storm causes lesions on the lung and elsewhere as well as blood clots.  This is why dexamethasone, a corticosteroid and blood thinners like Plavix are helpful in very severe cases.

(zerohedge)

Study Finds COVID-19 “Miracle Cure” Can Save Gravely Ill Patients As Global Cases Top 8 Million: Live Updates

Just before 10pmET last night, public health officials in Beijing announced that 40 new cases of the novel coronavirus had been confirmed across China, with 27 of those cases in Beijing. That’s roughly half of the 80+ cases reported across China over the weekend, as officials step up new measures to suppress the latest cluster, which the CCP has strived to blame on Europe.

Notably, party officials have tried to blame the latest outbreak in Beijing on imported European salmon (officials say they initially detected the virus’s presence on a cutting board where imported salmon had been processed inside the Xinfadi market). As a precaution, officials closed 11 markets in the area and institute travel bans on “high risk” residents while closing residential compounds and placing tens of thousands of Beijing residents on partial lockdown as the city pushes to run more than 90k tests per day. .

More bizarrely, customs officials have started testing all meat imports (even as China continues to suffer from a shortage of pigs thanks to the ‘pig ebola’ that swept the country’s farmers last year), while local officials have been tasked with “intensive” testing meat already on the shelf. Tests being used are the same nucleic acid tests being used on patients.

Chinese state-controlled media have raved about the sudden dangers of salmon consumption, prompting markets across the country to toss imported salmon, wasting good nutritious imported seafood for the sake of protecting the new narrative. Further imports of the stuff have been banned (at least temporarily), as BBG reports.

What’s more, Shanghai will quarantine everyone arriving in the city from mid- to high-risk areas of Beijing for 2 weeks, a city official announced Tuesday. Three bus terminals that handle highway bus traffic between Beijing and Shanghai have also been temporarily shuttered.

As expected, the global outbreak reached a new milestone overnight, passing the 8 million case mark, as cases reached 8,005,294, according to Johns Hopkins University.

The worldwide death toll, meanwhile, topped 435,662.

As China and India engage in the most contentious border dispute in nearly 50 years, health officials in India reported 10,667 new infections over the past 24 hours, down from 11,502 the prior day, raising the countrywide total to 343,091, while the country’s fatalities neared the 10k mark (9,900, up 380 from Monday morning). India has seen new cases skyrocket since it started easing its restrictive lockdown.

While the US and the American press have focused most of their attention of vaccine trials and remdesivir, another cheap already extant drug has reportedly been found to definitively reduce COVID-19-related mortality according to a new study from Oxford. For patients on ventilators, it reduced the desk risk from 40% to below 30%. “It’s the only drug so far shown to reduce mortality…and it reduces it significantly.”

Eric Feigl-Ding

@DrEricDing

⚠️Breaking: new trial find first drug to reduce mortality- For patients on ventilators the anti-inflammatory dexamethasone cut death risk from 40% to 28%. For patients on O2, death risk cut from 25% to 20%. Modest, but best of all: costs <$10! 🧵 https://www.bbc.com/news/health-53061281 

doctor with a drug

Life-saving coronavirus drug has been found

Experts say there should be no delay in getting the cheap drug to patients after ‘fantastic’ trial results.

bbc.com

Per the BBC, a cheap and widely available drug called dexamethasone has been found to help seriously ill patients suffering from COVID-19. UK experts say the low-dose steroid treatment is a major breakthrough in the fight against the virus as it reduced the mortality rate of the most vulnerable patients by one-third.

The news prompted a strong risk-on rally lifting US stock futures to session highs.

During an interview on CNBC, Dr. Scott Gottlieb, the former FDA director, said the study was well-organized and its findings – that a low-cost steroid can significantly reduce mortality among the most seriously ill patients – represent a major breakthrough. He also offhandedly noted that the CDC had discouraged the use of steroids like Dexamethasone.

After a wave of new coronavirus cases were reported in Tokyo over the past week, Japanese officials have set out to try and determine how extensively the virus penetrated Japanese society during its original run. Antibody tests reportedly suggest that 0.1% of Tokyoites have been infected with the virus, while health minister Katsunobu Kato said the government sought to better grasp the scale of the pandemic’s spread in Japan. The rate is significantly lower than in other global population centers like NYC (12.3%), and Stockholm (7.3%).

South Korea reported 34 new cases Tuesday, down from 37 a day ago, raising its total infections to 12,155, with 278 deaths.
New Zealand reports two new cases, both related to recent travel from the UK after PM Jacinda Ardern declared the country “coronavirus free” last week, though she warned that new infections could arise due to international travel and commerce.

Moving on to the US, Politico reports that 1000s of nursing homes across the country have not been inspected to see whether staff are following proper procedures to prevent a deadly viral outbreak, after deaths in long-term care facilities accounted for a quarter of all COVID-19 deaths. Despite this, only a little more than half of the nation’s nursing homes had received inspections, according to data released earlier this month.

As scrutiny of Florida’s testing data intensifies, Texas public health officials reported a pullback in newly confirmed cases on Monday, with new cases rising 1.4% vs. Prev. 7-day average of 2.3%.

A few days ago, the Institute for Health Metrics and Evaluation at the University of Washington raised its projections for COVID-19 deaths to 170k+ by the end of the summer. Now, it’s raising that forecast slightly to account for the surge in new cases in states like Florida and Texas. The new national forecast calls for 200k+ cases (201,129) by October, while death toll figures for Florida are expected to climb 186% to 18,675 from 6,559.

Though the number of new coronavirus deaths across the US has been trending downward, new cases have started to trend higher again as the new hotspots compensate for the drop in infections across the NYC greater metro area. Notably, the NYT removed California from its list of states where new cases are rising, as state officials saw the critical new cases number decline over the course of the past week.

Source: NYT

Beijing will hold another press briefing at 8pm local time (8amET) as it returns to the 2-briefings-a-day schedule to which it adhered during the heyday of the outbreak in Wuhan, though it’s unclear how much of the briefing will focus on the virus given the renewed tensions with India.

Vincent Lee

@Rover829

Beijing has another press briefing scheduled at 8 p.m. local time on the COVID-19 outbreak. Unclear what will be disclosed – the city has been holding 2 briefings per day since the cluster emerged.

end
There is no improvement whatsoever: no V
(Mish Shedlock)

Where’s The ‘V’? Freight Index Shows Little Improvement In May

Authored by Mike Shedlock via MishTalk,

The Cass Freight Index rebounded 1.6% in May from a deep dive in April.

Rebound Slower Than Expected 

David Ross, CFA at Stifel and author of the Cass Report, says the rebound “unfolded slower than we anticipated.

He also comments “It won’t be like this for long.”

In a move back in the right direction, Ross says We do not believe we will reach 2019 freight activity levels until 2021 (at the earliest) due to the significant rise in unemployment and other results of government intervention.”

Shipment Volumes

We are now close to 80% through the second quarter of 2020, and we see volumes down double-digits for most carriers across most modes in the U.S., including truckload, LTL, intermodal, and rail.

E-commerce (including parcel and big and bulky last mile) remains a hot area, as long-term trends in consumer buying patterns were accelerated in recent months.

Rail Traffic

Freight Expenditures 

Expenditures had the worst month since the Great Recession.

What ? No May Rebound?

I am not sure why anyone expected a freight rebound in May with all the lockdowns in place.

The Cass report used to be written by Cass. It is now written by Ross.

For several months I have argued against the perspective of Ross.

But after attempting to portray things in both directions for May, I agree with this key comment: “We do not believe we will reach 2019 freight activity levels until 2021 (at the earliest).”

What About June?

There will be a rebound in June, albeit from an abysmal level.

Fade Trade of the Day: Economy Off to the Races

The risk is people will take any rebound and make a case for a V-Shaped recovery out of it.

That is just what Larry Kudlow, Trump’s economic advisor, did this past weekend.

I called the notion that the “Economy Off to the Races”, the Fade Trade of the Day.

 

end

As promised, the last FDA study on HCQ was badly flawed. I know the science…HCQ is the first line of defense
(Bonchie/RedState.com

Another Highly-Touted Hydroxychloroquine Study Turns Out To Be A Joke

Authored by ‘Bonchie’ via RedState.com,

Last week, Lancet had to retract the most highly-touted hydroxychloroquine study to date, which was used as evidence for entire countries to change their stance on the drug. The study, which was obviously flawed on its face (I commented well before it was exposed that the groupings made no sense), turned out to be produced by a shell company, with unverified data gathered by non-scientists.

But when that study flopped, another study was immediately latched onto. It’s called the RECOVERY trials and was done in the UK. Supposedly, this study was the counter to the fake study published by Lancet.

It was the proof that “well yeah, that other study was bad, but this one got the same results.”

Well, not so much.

Edmund Fordham wrote a piece on what is an emerging controversy, in which it appears the lead of the RECOVERY trial took hydroxychloroquine for another drug, resulting in a high death rate.

Internet sleuths also got to work on the very heavy doses of the drug that were given – 2400 mg in the first 24 hours, a ‘dose fit for a gorilla’ as one critic had it. Quizzed about this, Landray defended the dosage, twice, as being usual for other diseases such as amoebic dysentery. Say again? Hydroxychloroquine is used for lupus and arthritis as well as malaria, but dysentery? As a footnote in medical history, the older chloroquine was used half a century ago in attempts to control dysentery, but Professor Christian Perronne, head of infectious diseases at Garches, France, told France Soir that it had been abandoned before 1976. Was Landray confusing hydroxychloroquine with the hydroxyquinolines, which are used for dysentery?

1,132 patients died in the RECOVERY trial, with general death rates nearly 10% higher than other country’s hospitals (the trial was randomized through Britain’s NHS). Whether giving people 3x the usual dosage of most other studies played a part is now a very real question.

Landray defended himself twice, but is now claiming he’s being misquoted. The French newspaper who quoted him denies that.

Landray explained there was no approved dosing for Covid because it was a new disease. Well, yes, but the toxic dose won’t change depending on the illness. Asked whether the UK had a maximum dose for hydroxychloroquine, Landray wasn’t sure, but opined it would be much larger, say six to ten times the trial’s dose. That makes 24 whole grams. NICE says about 490 mg per day for a 75kg adult. In France 1800 mg in a day mandates hospitalization as a poisoning. Twenty-four grams at one go would be almost certainly lethal, possibly even to a gorilla. So Landray has had notice of some hard questions on dose, which will no doubt be explained in the full report, not yet released.

In the end, though, this study is just another in a long list which completely miss the mark and it’s good that it was canceled. The effectiveness of hydroxychloroquine to fight coronavirus has always been in the early stages because of how the virus works. Doing trials on extremely sick, hospitalized patients is scientifically counterproductive because the viral infection itself is no longer the issue at that point. As the now-debunked Lancet published study counted in their data, giving hydroxychloroquine without adjacent drugs (anti-biotic and zinc) is pointless and using that data in “studies” to claim the drug doesn’t work at all is incredibly misleading. Why is that even being studied and included in any determination of its effectiveness?

Countries and doctors that report success with hydroxychloroquine already know not to give it to late-stage patients and that it’s ineffective when used alone. What they also know is that it does appear to have benefits for early-stage, non-hospitalized subjects when prescribed properly in conjunction with other drugs. Why is it so difficult for some to separate those things and focus on helping people?

The whole thing feels politicized at this point.

end

7. OIL ISSUES

BP/Coronavirus

B.P. is crushed by the COVID 19 pandemic as it takes a massive 17.5 billion asset hit.  It has slashed oil price outlook for the global economy

(zerohedge)

BP Crushed By COVID, Set To Take $17.5 Billion Asset Hit After Slashing Oil Price Outlook

BP p.l.c. (BP) will write off up to $17.5 billion from the value of its assets after it slashed its long-term energy price forecasts, a direct result of the COVID-19 pandemic that has crashed the global economy and significantly reduced oil demand.

BP said in a press release on Monday that the virus-induced economic downturn has led to the review of its portfolio and its capital development plans as it must adapt to a post-corona world. It now expects “the pandemic having an enduring impact on the global economy, with the potential for weaker demand for energy for a sustained period.”

Management expects the pandemic will “accelerate the pace of transition to a lower-carbon economy and energy system,” which means the company must reinvent itself, including a reduced focus on oil and gas and a more significant push towards renewables.

BP lowered its long-term price assumptions for Brent crude prices to an average of $55 a barrel until 2050, down nearly 30% from previous estimates of $70. The reduction in long term price assumptions led to expectations of non-cash impairment charges and write-offs in second-quarter earnings, expected in August, of $13 billion to $17.5 billion. There was also mention that some oil and gas projects in the early exploration stages could be sidelined.

“These difficult decisions — rooted in our net-zero ambition and reaffirmed by the pandemic — will better enable us to compete through the energy transition,’ BP’s Chief Executive Bernard Looney said.

Looney told the Financial Times that COVID-19 might have ushered in “peak oil” demand.

“It’s not going to make oil more in demand. It’s gotten more likely [oil will] be less in demand,” he said.

BP’s Brent crude price outlook is the lowest among Europe’s top oil majors (h/t Reuters):

 

h/t Reuters 

The substantial impairment is mainly on BP’s oil and gas exploration assets and will lower the company’s asset value by around 10%, pushing the equity to debt ratio to about 48%, RBC Capital Markets said in a note. This suggests the company could lower its dividend in the coming quarters.

Charlie Kronick, a senior climate adviser for Greenpeace UK, said BP’s revision of crude prices was “long overdue.”

“Accelerating the switch to renewable energy will be vital not only to the climate but to any oil company hoping to survive in a zero-carbon future,” Kronick added.

As of Monday morning, BP shares trading on the London Stock Exchange were down a little more than 4% on the news.

When it comes to short to intermediate-term energy forecasts, Goldman Sachs’s analyst Damien Courvalin, who on May 1 turned bullish on oil, wrote a bearish note last week indicating Brent price could reach as low as $35 near term. 

end
A second wave of Covid 19 could crush oil markets
(Nick Cunningham/OilPrice.com)

The “Second Wave” Of COVID-19 Could Crush Oil Markets

Authored by Nick Cunningham via OilPrice.com,

The oil price rally may have come to an end, with the long-feared “second wave” of coronavirus infections having now arrived, posing renewed threats to the global economy. 

A new outbreak of infections in Beijing over the weekend prompted a “war-time” response from the Chinese government, a top city official said. Schools, sports venues, malls and supermarkets saw another round of closures and checkpoints.

Across the U.S., infections are rising in many states, even as Americans display weariness and reluctance to continue with mask wearing and social distancing guidelines. However, unlike in March and April where the epicenter of the pandemic was New York, the new explosions of cases are more concentrated in the south. On Saturday, the U.S. reported almost 26,000 new cases, the highest total in nearly a month.

“The second wave has begun,” William Schaffner of the Vanderbilt University School of Medicine, said on CNBC. The pandemic never really went away, so it is not as if there is a discrete first and second wave. But the resurgence in infections in recent days caused a selloff in financial markets.

Oil prices retreated further on Monday, with prices down more than 10 percent in less than a week.

“Concerns that we may be seeing the beginning of a second wave of the pandemic are dominating trading floors this morning across the globe, from Beijing to Florida,” Head of Oil Markets at Rystad Energy, Bjornar Tonhaugen, said in a statement.

“Markets move in waves of fear and greed, and after greed has enjoyed a long joy ride, fear has started sprouting again.”

The IMF is expected to cut its global economic forecast when it releases new figures on June 24. The Fund said in April that global GDP may contract by 3 percent this year. “This pandemic has been, and continues to be, like dominoes falling,” IMF managing director Kristalina Georgieva said on Saturday, pointing to the ongoing spread of the virus around the world. “And we all know that it is not over until it is over everywhere.” China’s industrial output in May rose by 4.4 percent from a year earlier, a smaller-than-expected gain that fueled more concern about economic rebound.

The Dallas Fed President Robert Kaplan said that the health of the economy hinges not just on federal stimulus and reopening businesses, but also on public health measures, including widespread mask wearing and other containment measures.

“The extent we do that well will determine how quickly we recover. We’ll grow faster if we do those things well,” Kaplan said on CBS. “And right now, it’s relatively uneven.”

Meanwhile, the piling up of oil sitting in storage from the last few months boggles the mind. China alone is set to add 440 million barrels to storage in the first six months of the year, according to IHS Markit, the largest increase by any country ever recorded. That buildup in China actually provided a boost to oil prices, offering a source of demand during the depths of the downturn. But it’s not clear that the rate of storage injection can continue.

Adding to the oil market’s woes is the fact that prices may have rallied too far to begin with, even before recent data shows an uptick in Covid-19 infections.

“The scale of the sell-off can be explained by the excessive optimism before,” Commerzbank wrote in a note on Monday, pointing to the speculative bets on rising oil prices.

“Net long positions held by money manager in WTI on the NYMEX rose further in the week to 9 June and at nearly 400,000 contracts found themselves at their highest level since July 2018.”

The bank added that oil markets have been “deaf in one ear,” focusing only on positive news such as U.S. shale production declines and OPEC+ output cuts while ignoring red flags. The coronavirus never went away and is now spreading to new areas. Brazil recently moved into second place in terms of the number of total deaths from the virus.

“[T]he outlook for the oil market is likely to become gloomier again due to the weaker economic data and concerns about a second wave of the Covid-19 pandemic,” Commerzbank added. “Demand outside China remains weak, which is why we expect prices to decline further in the short term.”

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1297 DOWN .0041 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 GREEN

 

 

USA/JAPAN YEN 107315 DOWN 0.167 (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 1.2644   UP   0.0008  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3560 UP .0029 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro FELL BY 41 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1297 Last night Shanghai COMPOSITE CLOSED UP 41.72 POINTS OR 1.44% 

 

//Hang Sang CLOSED UP 561.14 POINTS OR 2.39%

/AUSTRALIA CLOSED UP 3.91%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 561.14 POINTS OR 2.39%

 

 

/SHANGHAI CLOSED UP 41.72 POINTS OR 1.44%

 

Australia BOURSE CLOSED UP 3.91 % 

 

 

Nikkei (Japan) CLOSED UP 1051.26  POINTS OR 4.88%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1728.15

silver:$17.37-

Early TUESDAY morning USA 10 year bond yield: 0.75% !!! UP 2 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.52 UP 6  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 96.74 UP 3 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.53% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +02%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.52%//DOWN 4 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,39 DOWN 4 points in basis points yield from yesterday./

 

 

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

 

GERMAN 10 YR BOND YIELD: FALLS TO –.42% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.81% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1257  DOWN     .0080 or 80 basis points

USA/Japan: 107.31 DOWN .172 OR YEN UP 17  basis points/

Great Britain/USA 1.2570 DOWN .0058 POUND DOWN 58  BASIS POINTS)

Canadian dollar DOWN 57 basis points to 1.3588

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0861    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  67.0848  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.840 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +.02%

 

Your closing 10 yr US bond yield UP 2 IN basis points from MONDAY at 0.75 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.55 UP 8 in basis points on the day

Your closing USA dollar index, 97.08 UP 37  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 157.15 OR  2.59%

German Dax :  CLOSED UP 357.25 POINTS OR 3.00%

 

Paris Cac CLOSED UP 121.04 POINTS 2.51%

Spain IBEX CLOSED UP 209.70 POINTS or 2.89%

Italian MIB: CLOSED UP 572.87 POINTS OR 3.02%

 

 

 

 

 

WTI Oil price; 37,61 12:00  PM  EST

Brent Oil: 40.18 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    69.65  THE CROSS HIGHER BY 0.9 RUBLES/DOLLAR (RUBLE LOWER BY 9 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.42 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 :  38.12//

 

 

BRENT :  40.71

USA 10 YR BOND YIELD: … 0.75.. up 2 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.53…up 7 basis points….

 

 

 

 

 

EURO/USA 1.1259 ( DOWN 79   BASIS POINTS)

USA/JAPANESE YEN:107.302 DOWN .183 (YEN UP 18 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.02 UP 31 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2565 DOWN 73  POINTS

 

the Turkish lira close: 6.8489

 

 

the Russian rouble 69.76   DOWN 0.20 Roubles against the uSA dollar.( DOWN 20 BASIS POINTS)

Canadian dollar:  1.3558 UP 17 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.42%

 

The Dow closed UP 526.82 POINTS OR 2.04%

 

NASDAQ closed UP 169.85 POINTS OR 1.75%

 


VOLATILITY INDEX:  34.64 CLOSED UP .70

LIBOR 3 MONTH DURATION: 0.299%//libor dropping like a stone

LIBOR/OIS: .230%

TED SPREAD (3 MONTH TREASURY VS LIBOR) = 0.121%

 

USA trading today in Graph Form

Stocks Soar As ‘Miracle Cure’ & ‘Recovery’ Hype Trumps 2nd-Wave COVID Concerns, WW3 Fears

A regurgitated stimulus narrative,”surprising” rebounds from the depths of hell for some macro data (retail sales, yay! industrial production, boo!), and a press-release study showing a cheap steroid as a ‘miracle cure’ for COVID were enough to trump soaring COVID case counts in several US states, Beijing locking down 7 regions and shutting all schools, North Korea literally blowing up relations with South Korea, and China and India tensions escalating dramatically.

Why don’t we just send the dextramethasone to China – “You’re cured mate!”

To ‘V’ Or not to ‘V’, you decide…

Source: Bloomberg

The stock market loves it…

Off yesterday’s lows, Small Caps are up 10%…

Just wait for earnings to catch up… (in say 2023?)

Source: Bloomberg

The Dow rebounded off its 100DMA to its 50DMA…

Another short-squeeze at the open…

Source: Bloomberg

But while stocks roared higher, bond yields barely flinched…

Source: Bloomberg

Gold was also bid…(not exactly a signal for the all-clear stocks gave)…

The dollar rallied after the better than expected data…

Source: Bloomberg

Oil prices jumped back above $38 on all the “good” news (ahead of tonight’s API inventory data)…

Finally, after yesterday’s panic-bid in corporate debt after The Fed’s nothing-burger statement, things opened up and traded weaker all day today…

Source: Bloomberg

Some context for the stock market’s rebound vs the bond market’s excitement at the prospects for a ‘V’…

Source: Bloomberg

Trade accordingly.

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

Stocks (futures) Soar On Report Trump Planning Trillion-Dollar Infrastructure Stimulus

Ten days ago, stocks soared on talk of a $1 trillion-dollar fiscal stimulus bill being “mulled” by the Trump administration.

Mitch McConnell told White House officials behind closed doors that “another round of fiscal stimulus from Congress could be just under $1 trillion”, a figure that administration officials are reportedly comfortable with.

Tonight, stocks are soaring once again after Bloomberg reports that a $1 trillioninfrastructure stimulus bill is being “mulled” by the Trump administration (why infrastructure this time instead of just a fiscal one? Because it still has to go through the Dem-controlled House, but if it is spun as infrastructure, it has far greater chance of passage).

“Since he took office, President Trump has been serious about a bipartisan infrastructure package that rebuilds our crumbling roads and bridges, invests in future industries, and promotes permitting efficiency,” White House spokesman Judd Deere said in a statement.

Sound familiar? It should. But hey, as long is wards off fears of a second global wave of COVID-19, who cares right?

Indeed, it’s like deja vu all over again!

Dow futures are up over 500 points tonight…

Additionally, the dollar is extending its fall…

And Treasury yields are rising as this means yet more supply…

But gold’s spike has been erased…

Bloomberg reports that, according to people familiar with the plan, a preliminary version of the proposal being prepared by the Department of Transportation would reserve most of the money for traditional infrastructure work, like roads and bridges, but would also set aside funds for 5G wireless infrastructure and rural broadband.

The regurgitated headlines come after San Francisco Fed president Mary Daly said in a speech this afternoon:

“We need to focus on investments that leverage the talent of everyone and contribute to the economy’s long-term growth prospects.”

She cited health, education and digital infrastructure, such as internet access.

“Now is an especially good time to take on this type of debt,” Daly said.

“Even before the crisis, we were in an environment of low interest rates – and that is expected to continue for the foreseeable future. This makes public spending relatively cheap and easy to finance.”

And what is stopping them? (Apart from getting it through Congress without a massive layer of pork and defunding all of the nation’s police forces) Since with The Fed monetizing all the Treasury issuance, MMT is well and truly here.

b)MARKET TRADING/USA/LATE MORNING

Stocks & Bond Yields Plunge As Global Virus Fears Resurge

A “miracle cure” helped send Dow futures up over 1000 points in the pre-market but since the US cash market opened, stocks have faded and a brace of worrisome virus headlines have erased half the gains already:

  • *FLORIDA COVID-19 CASES RISE 3.6% VS. PREVIOUS 7-DAY AVG. 2.5%
  • *BEIJING RAISES COVID-19 RESPONSE TO LEVEL 2: GLOBAL TIMES

The Dow is ‘only’ up 500 points now…

And the rest of the majors are tumbling…

Bond yields are tumbling…

Perhaps releasing drug study results by press release (as was the case with Remdesivir) has failed again, but the fact that Beijing just shut all schools should worry some.

 END

ii)Market data/USA

With the USA opening up, retail sales soar by a record in May led by apparel spending

(zerohedge)

US Retail Sales Soar By Record In May As Apparel Spending Exploded

After April’s retail sales rout, spending in May was expected to rebound strongly as various parts of the economy reopened (admittedly slowly) with BofA’s real-time credit-card tracker suggesting strength in airlines, restaurants, and furniture stores.

However, the actual data was massively better than expected with headline sales soaring 17.7% MoM – a record MoM jump (and April was revised to a smaller drop).

Source: Bloomberg

This sent core retail sales soaring back into the positive on a YoY basis (+2.1%) and headline down (just) 6.1%…

Source: Bloomberg

The rebound was broad-based with all 13 major categories posting increases. Clothing stores led gains, increasing 188% from the month before but autos and furniture also soared…

Mission accomplished?

Donald J. Trump

@realDonaldTrump

Wow! May retail sales show biggest one-month increase of ALL TIME, up 17.7%. Far bigger than projected. Looks like a BIG DAY FOR THE STOCK MARKET, AND JOBS!

end
INDUSTRIAL PRODUCTION
But not industrial production…it disappoints//no sign of V shaped recovery
(zerohedge)

US Industrial Production Disappoints – Shows No Sign Of “V-Shaped” Rebound

After the exuberance of jobs and retail sales data, US Industrial Production disappointed with a 1.4% rebound (less than the 3.0% expectation) from a downwardly revised 12.5% drop in April.

This is still the best MoM jump since Oct 2017…

Source: Bloomberg

The modest rebound did not help the YoY decline, down 15.3% – equal to the weakest annual drop since 1946…

Source: Bloomberg

Capacity Utilization barely improved (from a record low 64.0% to 64.8% in May).

Manufacturing Production rebounded 3.8% from a downwardly revised 15.5% crash in April.

Of course, this collapse doesn’t matter as stocks are soaring.

Does this look like a “V”?

end

 

iii) Important USA Economic Stories

Atlanta/Georgia//Los Angeles Police Dept.

Today, two pieces of news:

  1. 19 Atlanta cops quit
  2.  LAPD cannot pay 40 million dollars in overtime

police morale has now hit “rock bottom”

(zerohedge)

 

19 Atlanta Cops Quit, LAPD Can’t Pay $40 Million Overtime As Police Morale Hits “Rock Bottom”

As protests against police brutality continue to rage across major US cities, cops across the country have reached their breaking point.

On Monday,the Atlanta Police Foundation some 19 Atlanta police officers have resigned amid the growing civil unrest. And according to Foundation CEO Dave Wilkinson, “Morale is at an all-time low.

“We are now going into the third consecutive week of unabated protests in which officers have worked 12-hour shifts seven days per week. As you can imagine, their stress levels are exacerbated by physical and emotional exhaustion,” Wilkinson told CBS46.

The resignations come after an officer involved in the shooting death of 27-year-old Rayshard Brooks was fired, another was placed on administrative leave, and Atlanta Police Chief Erika Shields announced that she would be stepping down following the incident.

 

Atlanta police chief Erika Shields, who announced her resignation following the shooting death of Rayshard Brooks

“The morale is bad right now. A lot of anger and frustration directed at our police officers,” said Atlanta Mayor Keisha Lance Bottoms.

As we noted over the weekend, Tulsa, Oklahoma police major Travis Yates told “Tucker Carlson Tonight” that police morale is at an all-time low, and that “Every department, every officer you talk to is looking to leave.” Yates published a column last Friday on the website LawOfficer.com titled “America, We Are Leaving,” in which he says “I wouldn’t wish this job on my worst enemy,” adding “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.”

Making matters worse, Los Angeles Police Department officers have racked up to $40 million in overtime during the recent protests, according to FoxLA‘s Bill Melugin, whose sources tell him morale is at “rock bottom.”

The officers will instead be given comp time.

Bill Melugin

@BillFOXLA

NEW: LAPD officers racked up $40 million in overtime during the recent protests, but won’t be paid for it, and will instead be given comp time, according to a memo sent out by Chief Moore I obtained. Budget is out of cash. LAPD sources tell me morale is at “rock bottom”. @FOXLA

View image on TwitterView image on Twitter

Bill Melugin

@BillFOXLA

According to multiple LAPD sources, LAPD Transit Division/MTA services, which is paid via OT, had 43 officers cancel their shifts today, and they are now averaging 12-18 cancellations per shift. I’ll be live at 6 on @FOXLA

end
New York
Three officers are poisoned with bleach at a Manhattan Shake Shack
(zerohedge)

Three NYPD Officers “Intentionally Poisoned” With Bleach At Manhattan Shake Shack; Company Responds

Update (0146ET): Shake Shack has responded to the incident, Tweeting early Tuesday morning: “We are horrified by the reports of police officers injured at our 200 Broadway Shack in Manhattan. We are working with the police in their investigation right now.”

SHAKE SHACK

@shakeshack

We are horrified by the reports of police officers injured at our 200 Broadway Shack in Manhattan. We are working with the police in their investigation right now.

*  *  *

Three NYPD officers were poisoned at a Shake Shack on Broadway in Manhattan Monday night, according to New York Benevolent Police Association (PBA) and confirmed by the Detectives’ Endowment Association.

“At some point during their meal period, the MOS discovered that a toxic substance, believed to be bleach, had been placed in their beverages,” reads a statement from PBA President Patrick Lynch, who added that the contamination was not discovered until the officers had already consumed some of their beverages.

NYC PBA

@NYCPBA

When NYC police officers cannot even take meal without coming under attack, it is clear that environment in which we work has deteriorated to a critical level. We cannot afford to let our guard down for even a moment.

View image on Twitter

The NYPD Detectives’ Endowment Association tweeted on Monday that three officers were “intentionally poisoned by one or more workers at the Shake Shack at 200 Broadway in Manhattan” are responsible, adding that none of the officers were seriously harmed.

Detectives’ Endowment Association

@NYCPDDEA

🚨URGENT SAFETY MESSAGE🚨
Tonight, three of our fellow officers were intentionally poisoned by one or more workers at the Shake Shack at 200 Broadway in Manhattan. Fortunately, they were not seriously harmed. Please see the safety alert⤵️ https://www.nycdetectives.org/news/%f0%9f%9a%a8urgent-safety-message%f0%9f%9a%a8/ 

🚨URGENT SAFETY MESSAGE🚨 – Detectives’ Endowment Association

Tonight, three of our brothers in blue were intentionally poisoned by one or more workers at the Shake Shack at 200 Broadway in Manhattan. After tasting the milk shakes they […]

nycdetectives.org

end
Again after a good start, USA restaurant traffic craters amid a second wave fear
(zerohedge)

US Restaurant Traffic Suddenly Craters Amid Second Wave Fears

After three months of slow but consistent improvement in restaurant dining data in the US and across the globe, in its latest update on “the state of the restaurant industry”, OpenTable today reported the biggest drop in seated restaurant diners (from online, phone and walk-in reservations) since the depth of the global shutdown in March.

As shown in the OpenTable graphic below, on Sunday, June 14, restaurant traffic suddenly tumbled, sliding from a -66.5% y/y decline as of June 13 to -78.8% globally.

This was mostly due to a sharp drop in US restaurant diners, which plunged by 13% – from -65% to -78% – the biggest one day drop since the start of the shutdown in the US, and the second biggest one day drop on record.

The drop was uniform across most US states, which saw a traffic dip between 10% and 25% overnight.

While the upward trend in dining was barely impacted by the roughly 3 weeks of protests across the US, the most likely catalyst was the widespread media coverage of spiking coronavirus cases across several states including California, Florida and Arizona. And while not necessarily surprising, the speed and severity of the decline demonstrates just how quickly any V-shaped recovery can collapse under its own weight if enough people become convinced that the pandemic is making a comeback.

end

Finally Robinhooders google what bankruptcy means and they are finally dumping Hertz stock

(zerohedge)

The Insanity Window Closes: Robinhooders Are Finally Dumping Hertz Stock

In what is arguably the financial story of the year, late on Friday insolvent Hertz got bankruptcy court approval to sell as much as $1 billion (a number since reduced to $500 million) in stock, targeting the manic retail buyers who had pushed its stock just a week earlier above $6/share. In response, Hertz’ corporate lawyer Tom Lauria, who admitted that the stock is “disconnected from fundamentals”, said that the company immediately start selling the bankrupt shares from its existing shelf “because once the bid disappears, this historic opportunity will be gone too.”

Well, the bid is almost gone (maybe it was the company’s warning that equity holders will most likely be wiped out that caused the dam to finally break).

Not only has Hertz failed to sustain any rally in the past two days, when Hertz started selling stock..

… but in an ominous development for Hertz and potentially other (soon to be) bankrupt company such as Chesapeake which may seek to repeat Hertz’ historic achievement of flipping the bankruptcy process on its head, and whose own Chapter 11 filing is imminent, it appears that Robinhooders have finally googled what “bankruptcy” means, and in the past two days there has finally been the first sustained, if modest decline in Hertz holders on Robinhood.

The problem for Robinhood is that the momentum is now broken (and this without the SEC even daring to chime in on what will end up being catastrophic losses for ordinary investors) and once the daytrader army realizes that the chance for higher highs, and even greater fools is gone, we expect that the number of users holdings the stock will plummet in the next few days, effectively shutting the window for any further Hertz stock sales.

The question then becomes just how much new Hertz stock has been sold by the company to the retail hordes – we expect an update from Jefferies in the next 24 hours – and when do the lawsuits start once the Millennials who have bought the stock in hopes of overnight riches realize they are facing a total wipeout.

end

PG and E pleads guilty to 84 counts of manslaughter tied to the deadliest wildfire in California

(zerohedge)

PG&E Pleads Guilty To 84 Counts Of Manslaughter Tied To Deadliest Wildfire In California History

In a landmark development that marks a victory for California citizens trying to hold the state’s largest and most politically influential utility accountable, PG&E pleaded guilty to 84 felony counts of involuntary manslaughter on Tuesday afternoon. The guilty plea marks the end of an investigation into the origins of the Camp Fire, the deadliest and most destructive in California history.

Roughly 18 months ago, we reported on the surreal scenes coming out of the town of Paradise, California, which was swiftly swallowed up by flames as the NorCal ‘Camp’ Fire. That fire eventually became the deadliest wildfire in the state’s history, killing at least 84, including dozens of Paradise residents who failed to flee in time.

An investigation eventually found that PG&E inadvertently started the fire when a transmission line broke from a nearly-100-year-old Pacific Gas & Electric Tower after years of neglect.

Here’s more from the NYT:

In a rare acknowledgment of corporate wrongdoing, PG&E on Tuesday pleaded guilty to 84 counts of involuntary manslaughter for its negligence, ending a two-year ordeal for the families of victims like Ms. Wehe and survivors of the fire, which destroyed the town of Paradise.

PG&E, which had repeatedly failed to maintain the line even though it cut through a forested and mountainous area known to experience strong winds, also pleaded guilty to one count of illegally setting a fire.

In addition to the guilty plea, the California Public Utilities Commission separately fined PG&E almost $2 billion for its negligence in causing the wildfire. What’s more, the company could face additional penalties because its guilty plea represents a violation of a federal probation order placed on the company from a 2010 transformer explosion which started a fire that killed 8 people. The federal judge, William H. Alsup, has the power to impose new penalties on the company for violating its probation, according to the NYT.

As it exits bankruptcy, the company has agreed to pay $13.5 billion to settle claims related to the wildfires (it initially declared bankruptcy last January to try and avoid getting whacked with a massive judgment in the ballpark of $30 billion (or at least that’s what the company feared at the time).

About half of that number will be paid in the form of company stock, leaving roughly 70,000 wildfire victims owning a little more than 22% of the utility once it leaves bankruptcy.

And so ends another saga of corporate malfeasance and abuse.

iv) Swamp commentaries)

 

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

@JordanSchachtel: Yesterday, USA recorded the lowest number of COVID deaths since March 25. The media is attempting to gin up hysteria using manipulated data & wild speculation about 2nd wave. All garbage.  Pandemic is on downward trajectory & trend has remained consistent since 1st week of April.

@realDonaldTrump: The Far Left Fake News Media, which had no Covid problem with the Rioters & Looters destroying Democrat run cities, is trying to Covid Shame us on our big Rallies. Won’t work!

CDC: The following chart shows the number of new COVID-19 cases reported each day in the U.S. since the beginning of the outbreak. Hover over the bars to see the number of new cases by day.

https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/cases-in-us.html

Trump, Pence Say Coronavirus Increase Due to Broad Testing [24 million tests, 583k on Friday]

https://www.bloomberg.com/news/articles/2020-06-15/trump-pence-say-coronavirus-increase-due-to-broad-testing

OAN’s@ChanelRion: White House favors $2 Trillion dollar Phase 4 Stimulus.   Focusing on Payroll Tax Relief and decoupling from China by bringing manufacturing back to the US

Federal Reserve Board announces updates to 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  2:00 p.m. EDT

https://www.federalreserve.gov/newsevents/pressreleases/monetary20200615a.htm

U.S. National Institutes of Health Fires 54 Researchers as Ongoing Investigation Reveals 93% Failed to Disclose Links to Chinese Communist Party

https://thenationalpulse.com/news/nih-fires-54-researchers-over-china-links/

 

@MichaelCoudrey early last evening: The U.S. is currently under a major DDoS attack.

    Major cellular outage in the US currently involving almost every major US cellular company.

Sprint, T Mobile, Verizon, AT&T, US Cellular, Consumer Cellular, Metro PCS, Century Link, Comcast

 

Norton: distributed denial-of-service (DDoS) attack is one of the most powerful weapons on the internet. When you hear about a website being “brought down by hackers,” it generally means it has become a victim of a DDoS attack. In short, this means that hackers have attempted to make a website or computer unavailable by flooding or crashing the website with too much traffic…

    The primary way a DDoS is accomplished is through a network of remotely controlled, hacked computers or bots. These are often referred to as “zombie computers.” They form what is known as a “botnet” or network of bots. These are used to flood targeted websites, servers, and networks with more data than they can accommodate…

https://us.norton.com/internetsecurity-emerging-threats-what-is-a-ddos-attack-30sectech-by-norton.html

Walmart looks to remove all cashiers from stores [Good-bye beaucoup jobs!]

https://www.fox5ny.com/news/walmart-looks-to-remove-all-cashiers-from-stores

Today – Powell testifies before the Senate Banking Committee at 10:00 ET.  Powell has hurt stocks with his pessimistic economic forecasts over the past few weeks.  Traders are likely to be cautious until Powell finishes his testimony – unless Powell is more optimistic on the economy than expected.

ESUs are +23.75 at 22:00 ET.  Does someone know Powell will be upbeat; or is it a pump & dump?

The action on Monday revealed the game for this expiration.  The usual suspects are trying to squeeze the SPY 310 June calls.  Yesterday, 83,000 of these calls traded.  The open interest was 54,973 coming into Monday’s session.  SPY closed at 307.11.  The buyers of the calls need a 2% rally to make money.

Everyone knows the US stock market is historically detached from reality.  How detached is it?

Hertz says it expects stockholders to lose all their money in filing for selling more stock

https://www.cnbc.com/2020/06/15/hertz-says-it-expects-stockholders-to-lose-all-their-money-in-filing-for-selling-more-stock.html

Expected economic data: May Retail Sales 8.4% m/m, Ex-Auto 5.5%, Ex-Auto & Gas 5.1%; May Industrial Production 3.0% m/m, Mfg Production 5.0%, Cap Utilization 66.9%; June NAHB Housing 45

Perkins Coie Engaged Fusion GPS to Provide Information to Challenge 2016 Election Validity

In UK court paper, Steele firm Orbis claims Perkins Coie engaged FusionGPS to provide information on Russian interference in order to challenge 2016 election results

     There are serious implications to the testimony. What Orbis is certifying to the UK court, is that when Perkins Coie hired FusionGPS in June of 2016, they did so with the expectation that FusionGPS would provide them information they would need to challenge the validity of the 2016 election, based on Russian interference. The only problem, is that FusionGPS was retained by Perkins Coie much earlier than what is purportedly the start date of the now infamous Crossfire Hurricane counterintelligence investigation.   The FBI asserts that the Crossfire Hurricane investigation began in late July of 2016, based on a tip about George Papadopoulos meeting with Australian diplomat Alexander Downer. The entire premise of that investigation in now under its own scrutiny in the John Durham probe…

https://uncoverdc.com/2020/06/14/orbis-perkins-coie-engaged-fusiongps-to-provide-information-to-challenge-2016-election-validity/

Husband of California ‘Karen’ Lisa Alexander fired from wealth management firm

https://nypost.com/2020/06/15/husband-of-lisa-alexander-fired-from-wealth-management-firm/

The state of America, June 2020: Woman gets in spat with a neighbor; her husband gets fired for his wife’s imputed racism.  People are being fired for saying innocuous or reasonable statements.

KATU News’ @GenevieveReaume: Thomas Jefferson statue at Jefferson High School in Portland torn down. You can see the words “Slave Owner” painted where it once stood.

Boston considers removing Abraham Lincoln statue with freed slave   https://trib.al/QQlNyTz

@LibertyCliff: @NYCMayor Bill de Blasio is now welding gates of playgrounds closed so children can’t play outside…   https://twitter.com/LibertyCliff/status/1272621869372489728

@CalebJHull: Jews in NYC just cut the lock @NYCMayor put on their park

https://twitter.com/calebjhull/status/1272669507778207744

@QuickTake: Commissioner Dermot Shea says “effective immediately,” the NYPD will disband its anti-crime unit and reassign roughly 600 plainclothes officers to other units [No NYC plainclothes cops!]

Ex-NYPD Commish @BernardKerik: Plain clothes anti-crime cops have historically been responsible for the majority of gun & violent crime arrests in New York City. To avoid police/suspect confrontations, the department has disbanded the precinct and the crime teams. Dangerous times to come.

@johncardillo: It pains me to my soul to write this, but if I was still on the job, I wouldn’t do a damn thing to arrest anyone at this point. And any cops writing summonses are insane. Democrats want cops fired, in prison, or dead. Why give them revenue? Proactive policing is a lose/lose

Ex-NSC Dir. General @robert_spalding: If you haven’t figured it out yet, we are in a new war for the free world. It is a war of economics and ideas. It is no different than the fight taken up by the first Americans. Let the Constitution be your guide. Fight for your Republic…

 

San Antonio Spurs Head Coach: American Flag is ‘Irrelevant’ Symbol Used for ‘Political Reasons’

https://thegreggjarrett.com/san-antonio-spurs-head-coach-american-flag-is-irrelevant-symbol-used-for-political-reasons/

Oklahoma State Coach Mike Gundy Targeted by Furious Cancel Campaign for Wearing OANN [TV station] Shirt     https://bigleaguepolitics.com/oklahoma-state-coach-mike-gundy-targeted-by-furious-cancel-campaign-for-wearing-oann-shirt/

 

University of Texas athletes push to change school song that began in black-face minstrel shows as ex-Longhorns football player Sam Acho says ‘black players hated singing’ it

https://www.dailymail.co.uk/news/article-8422935/Texas-athletes-push-change-school-song-began-black-face-minstrel-shows.html

Liberal journalist and author Matt Taibbi: ‘American left has lost its mind,’ journalism a victim

“It’s become a cowardly mob of upper-class social media addicts, Twitter Robespierres who move from discipline to discipline torching reputations and jobs with breathtaking casualness.”…

    “They’ve conned organization after organization into empowering panels to search out thought crime, and it’s established now that anything can be an offense,” Taibbi wrote… press activism is limited to denouncing and shaming colleagues for insufficient fealty to the cheap knockoff of bullying campus Marxism that passes for leftist thought these days.”…

https://www.foxnews.com/media/matt-taibbi-american-left-has-lost-its-mind-journalism-victim

Last night, Fox’s Tucker Carlson issued a diatribe against US leaders that are silent and cowardly while a Jacobin-like purge and intimidation of Americans are occurring.  Tucker opined that over two centuries of culture are being destroyed.  He ended his rant by stating force works; voting doesn’t matter anymore.  Carlson averred that the mob is intimidating formerly conservative Supreme Court Justices in rulings.

Farage to Breitbart: ‘I Have Never Seen so Many People Scared to Say What They Think’

https://www.breitbart.com/europe/2020/06/15/farage-to-breitbart-i-have-never-seen-so-many-people-scared-to-say-what-they-think/

@ThomasSowell: When I was growing up, we were taught the stories of people whose inventions and scientific discoveries had expanded the lives of millions of other people. Today, students are being taught to admire those who complain, denounce and demand.

Well that is all for today

I will see you WEDNESDAY night.

One comment

  1. […] by Harvey Organ, Harvey Organ Blog: […]

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