JUNE 17//GOLD DOWN $1.05 TO $1727.25//SILVER UP 8 CENTS TO $17.58//COMEX GOLD TONNAGE STANDING: 162 TONNES//CORONAVIRUS UPDATES/NORTH KOREA THREATENS IN INVADE SOUTH KOREA AND THE DMZ//LOOKS LIKE NUMBERS OF COVID 19 INVADING BEIJING ARE HUGE// TRUMP ON THE WARPATH AGAINST CHINESE OFFICIALS FOR TREATMENT OF THE UIGHURS AND THEIR PUSH INTO INTERMENT CAMPS//HSBC CONTINUES TO HAVE TROUBLE AS THEY NOW ARE READY TO REMOVE 35,000 EMPLOYEES WORLDWIDE//ATLANTA COP WHO KILLED BROOKS HAS BEEN CHARGED WITH MURDER// SWAMP STORIES//

GOLD:$1727.25  DOWN $1.05   The quote is London spot price

 

 

 

 

 

Silver:$17.58  UP 8 CENTS//LONDON SPOT PRICE

Closing access prices:  London spot

 

 

 

i)Gold : $1728.70  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.51//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

AUG GOLD:  $1735.25  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE AUGUST: $  + 8.00

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $17.78//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      20 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: 3/4

DLV615-T CME CLEARING
BUSINESS DATE: 06/16/2020 DAILY DELIVERY NOTICES RUN DATE: 06/16/2020
PRODUCT GROUP: METALS RUN TIME: 20:52:35
EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,729.600000000 USD
INTENT DATE: 06/16/2020 DELIVERY DATE: 06/18/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 3
657 H MORGAN STANLEY 1
661 C JP MORGAN 3
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 4 4
MONTH TO DATE: 50,469

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 4 NOTICE(S) FOR 400 OZ ( 0.0124 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  50,469 NOTICES FOR 5,046,900 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: 425 for 2,125,000 oz

 

BITCOIN MORNING QUOTE  $9495  DOWN $30

 

 

BITCOIN AFTERNOON QUOTE.: $9355 DOWN 164

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $1.05 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

NO CHANGES IN GOLD INVENTORY AT THE GLD//

RESTS TONIGHT AT 1136.22 TONNES

GLD: 1,136.22 TONNES OF GOLD//

 

WITH SILVER UP A GOOD 8 CENTS TODAY: AND WITH NO SILVER AROUND

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV..

A MASSIVE PAPER DEPOSIT OF 3.261 MILLION OZ/  (THIS SILVER WAS PROBABLY BORROWED BY SCOTIA FROM JPMORGAN)

RESTING SLV INVENTORY TONIGHT:

 

SLV: 486.361  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG SIZED 1488 CONTRACTS FROM 172,898 UP TO 174,386 AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH OUR  20 CENT ADVANCE IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS DUE TO STRONG  BANKER SHORT COVERING PLUS A GOOD EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2190 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 GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 300  AND SEPT 402 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  702 CONTRACTS. WITH THE TRANSFER OF 702 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 702 EFP CONTRACTS TRANSLATES INTO 3.510 MILLION OZ  ACCOMPANYING:

1.THE 20 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.155  MILLION OF INITIALLY STANDING FOR JUNE

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 20 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) ZERO LONG LIQUIDATION AS  WE DID HAVE A STRONG NET GAIN OF 2190CONTRACTS OR 10.95 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:

7592 CONTRACTS (FOR 14 TRADING DAY(S) TOTAL 7592 CONTRACTS) OR 37.960 MILLION OZ: (AVERAGE PER DAY: 542 CONTRACTS OR 2.711 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 37.960 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 5.42% 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:          1,103.995 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                   37.96 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 INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1488, WITH OUR 20 CENT GAIN IN SILVER PRICING AT THE COMEX ///TUESDAY THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 702 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  2190 CONTRACTS (WITH OUR 20 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 702 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A LARGE SIZED INCREASE OF 1488 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 20 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.50 // TUESDAY’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 ROSE BY A CONSIDERABLE 5268 CONTRACTS TO 489,563 AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE CONSIDERABLE SIZED GAIN OF COMEX OI OCCURRED WITH OUR GAIN IN PRICE  OF $6.70 /// COMEX GOLD TRADING// TUESDAY// WE  HAD STRONG BANKER SHORT  COVERING, A TINY SIZED DECREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR  GAIN IN PRICE OF $6.70 .

 

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

 

WE GAINED A GOOD SIZED 7961 CONTRACTS  (24.76 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2693 CONTRACTS:

CONTRACT  JUNE 0.; AUG 2693 AND DEC: 100  ALL OTHER MONTHS ZERO//TOTAL: 2693.  The NEW COMEX OI for the gold complex rests at 489,563. 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 7961 CONTRACTS: 5268 CONTRACTS INCREASED AT THE COMEX AND 2693 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 7961 CONTRACTS OR 24.76 TONNES. TUESDAY, WE HAD A GAIN OF $6.70 IN GOLD TRADING.…..

AND WITH THAT GAIN IN  PRICE, WE HAD A GOOD SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 24.76 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $6.70).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  UNSUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (2693) ACCOMPANYING THE GOOD SIZED GAIN IN COMEX OI  (5268 OI): TOTAL GAIN IN THE TWO EXCHANGES:  7855 CONTRACTS. WE NO DOUBT HAD 1 )CONSIDERABLE BANKER SHORT COVERING, 2.)A TINY DECREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH 3) ZERO LONG LIQUIDATION; 4) GOOD COMEX OI GAIN.. AND  …ALL OF THIS WAS COUPLED WITH OUR GAIN IN GOLD PRICE TRADING//TUESDAY//$6.70.

 

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 : 35,523 CONTRACTS OR 3,552,300 oz OR 110.49 TONNES (14 TRADING DAY(S) AND THUS AVERAGING: 2537 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 14 TRADING DAY(S) IN  TONNES: 110.49 TONNES

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

THUS EFP TRANSFERS REPRESENTS 110.49/3550 x 100% TONNES =3.11% 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   2924.78  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:                     110.49 TONNES

 

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

First, here is an outline of what will be discussed tonight:

 

1.Today, we had the open interest at the comex, in SILVER, ROSE BY A STRONG SIZED 1488 CONTRACTS FROM172,898 UP TO 174,386 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 GAIN IN OI SILVER COMEX WAS DUE TO;   1) CONSIDERABLE BANKER SHORT COVERING , 2) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 702 CONTRACTS

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

JULY: 300 CONTRACTS   AND SEPT: 402 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 702 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI GAIN  OF 1488  CONTRACTS TO THE 702 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2190 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 10.95 MILLION  OZ!!! OCCURRED WITH THE 20 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 20 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A GOOD SIZED 702 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

BOTH THE SILVER COMEX AND THE GOLD COMEX ARE IN STRESS AS THE BANKERS SCOUR THE BOWELS OF THE EXCHANGE FOR METAL

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 4.12 POINTS OR 0.14%  //Hang Sang CLOSED UP 137.32 POINTS OR 0.56%   /The Nikkei closed DOWN 126.45 POINTS OR 0.56%//Australia’s all ordinaires CLOSED UP .84%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0875 /Oil UP TO 38.03 dollars per barrel for WTI and 40.60 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0875 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0810 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A CONSIDERABLE 5268 CONTRACTS TO 489,563 MOVING CLOSER TO  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS  COMEX ADVANCE OCCURRED WITH OUR GAIN OF $6.70 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (2693 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  A SMALL DECREASE IN  GOLD OZ STANDING AT THE COMEX//JUNE DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 7961 CONTRACTS DESPITE GOLD’S GAIN IN PRICE. 

 

 

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 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 2693 EFP CONTRACTS WERE ISSUED:  2693 FOR AUG AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2693 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:  7961 TOTAL CONTRACTS IN THAT 2693 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A CONSIDERABLE SIZED 5162 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,  A SMALL DECREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A GAIN IN COMEX PRICE OF 6.70 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $6.70)AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 24.76 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 7961 CONTRACTS OR 796100 OZ OR 24.76 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:  489,561 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 48.95 MILLION OZ/32,150 OZ PER TONNE =  1522 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1522/2200 OR 69.20% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 137,451 contracts//extremely low//most traders have moved to london

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY191,463 contracts//  volume low 

 

 

JUNE 17 /2020

JUNE GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
868.077 oz oz
HSBC
Int Delaware
Deposits to the Dealer Inventory in oz  

80,441.802

OZ

BRINKS

 

 

Deposits to the Customer Inventory, in oz  

226,664.480

 

OZ

Brinks

HSBC

JPMorgan

Scotia

 

 

 

incl.

1000 kilobars

HSBC

and

5000 kilobars

JPM

 

 

 

 

No of oz served (contracts) today
4 notice(s)
 400 OZ
(0.124 TONNES)
No of oz to be served (notices)
1611 contracts
(161,100 oz)
5.010 TONNES
Total monthly oz gold served (contracts) so far this month
50,469 notices
5,046,900 OZ
156.97 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:  80,441.802 oz

total deposit: 80,441.802 oz

DEALER WITHDRAWAL:

i) nil oz

 

 

total dealer withdrawals: nil oz

we had 4 deposits into the customer account

i) Into Brinks: 31,765.18 oz

ii) Into HSBC:  32,151.000 oz 1000 kilobars

iii) Into JPMorgan: 160,755.000 oz  (5,000 kilobars)

 

 

 

 

 

 

total deposits: 226,664.480    oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of HSBC:  578.718

ii) Out of Int Delaware: 289.359  oz

 

 

 

total gold withdrawals;  868.077 oz

We had 2  kilobar transactions  +

 

 

 

 

ADJUSTMENTS: 1 //    

 

 

dealer to customer:

i) Brinks:  1,736.154 oz

ii) HSBC; 1000.317 oz

 

 

The front month of JUNE registered a total of 1615 oi contracts of a LOSS of 52 contracts.  We had 49 notices filed on TUESDAY so we LOST A TINY 3 contracts or an additional 300 oz of gold (0.0093 TONNES) will NOT stand in this very active delivery month of June as these guys morphed into London based forwards and received a fiat bonus for their effort.  .

After June we have the non active delivery month of July and here we had a LOSS of 23 contracts UP to 3454 contracts.

Next comes August another strong delivery month and here the OI ROSE by 3080  contracts UP to 339,689 contracts.

 

We had 4 notices filed today for 400 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 4 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 3 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 (50,469) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (1615 CONTRACTS ) minus the number of notices served upon today (4 x 100 oz per contract) equals 5,208,000 OZ OR 161.990 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 (50,469)x 100 oz + (1615 OI) for the front month minus the number of notices served upon today (4) x 100 oz which equals 5,208000 oz standing OR 161.990 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 LOST an additional 3 contracts or 300 oz will NOT 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 354.78 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  12,412,823.624 oz or 386.09 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: 11,406,417.0  (354.78 tonnes)
true registered gold  (total registered – pledged tonnes  11,406,417.0 (354.78 tonnes)
total eligible gold:  18,510,922.684 oz (575.76 tonnes)

total registered, pledged  and eligible (customer) gold;   30,922,746.308 oz 961.82 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  835.48 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 17/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 1488  CONTRACTS FROM 172,898 UP TO 174,386(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 20 CENT RISE IN PRICING//TUESDAY. WE GAINED A TOTAL OF 2356 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN  SILVER OZ STANDING AT THE COMEX FOR THE JUNE DELIVERY MONTH, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) ZERO LONG LIQUIDATION,5) STRONG COMEX GAIN IN OI, ….AND ALL OF THIS OCCURRED WITH OUR 20 CENT GAIN 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 0 CONTRACTS.  WE HAD 1 NOTICE SERVED UPON YESTERDAY SO WE GAINED 1 CONTRACT OR AN ADDITIONAL 5,000 OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JUNE AS THEY REFUSED TO MORPHED INTO A LONDON BASED FORWARD.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI LOST 834 CONTRACTS DOWN TO 76,734 CONTRACTS. AUGUST SAW ANOTHER GAIN OF 5 CONTRACTS TO 73 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 2037 CONTRACTS UP TO 71,975

 

 

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

 

JUNE 17/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

<

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 661,512.540 oz
Delaware
Loomis
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,456,310.000 oz
CNT
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)  425 contracts

2,125,000 oz)

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

 

We had 0 deposit into the dealer:

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 2 deposits into the customer account

into JPMorgan:   0

ii)into  CNT:  1,256,723.100 oz

iii Into Scotia:  199,586.900 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: 1456,310.000    oz

we had 3 withdrawals:

 

 

 

i) Out of Delaware: 953.800 oz

ii) Out of Loomis:  60,820.900 oz

iii) Out of Scotia: 599,737.840 oz

 

 

 

 

 

 

 

 

total withdrawals; 661,512.540   oz

We had 0 adjustments

 

 

total dealer silver: 85.642 million

total dealer + customer silver:  316,414 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 425 x 5,000 oz = 2,125,,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: 425 (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 2,160,000 oz.

We GAINED 1  contracts or an additional 5,000 oz will stand for delivery as they refused to morphed into London based forwards as well as negating a fiat bonus

 

TODAY’S ESTIMATED SILVER VOLUME: 54,942 CONTRACTS // volume low/

 

 

FOR YESTERDAY: 77,680..,CONFIRMED VOLUME//volume very good/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 77,680  CONTRACTS EQUATES to 388 million  OZ 55.4% 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- 0.52% ((JUNE 17/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.66% to NAV:   (JUNE 17/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.52%

(courtesy Sprott/GATA

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

NAV 16.40 TRADING 16.38///NEGATIVE 0.11

END

 

 

And now the Gold inventory at the GLD/

JUNE 17/WITH GOLD DOWN $1.05: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1136.22 TONNES

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 17/ GLD INVENTORY 1136.22 tonnes*

LAST;  843 TRADING DAYS:   +192.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 743 TRADING DAYS://+367.52  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 17/WITH SILVER UP 8 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.261 MILLION OZ INTO THE SLV////INVENTORY REST AT 486.361 MILLION OZ

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 17.2020:

SLV INVENTORY RESTS TONIGHT AT

486.361 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

Gold Bars Worth Nearly $200,000 Left On A Train In Switzerland

◆ The owner or transporter of the gold bars could not be established despite ‘extensive investigations’ by the police in Switzerland.

(via CNN) — Swiss police are looking for a forgetful individual who left something rather important on a train — a package full of gold bars, worth more than $190,000.

The parcel containing the gold bars was found in the carriage of a Swiss Federal Railways (SBB) train traveling from the northeastern Swiss town of St Gallen to Lucerne, a city in the center of the country, in October last year, authorities said.

Despite “extensive investigations,” the owner of the high-value package had not been tracked down, officials said in a statement published in the local government Lucerne Canton gazette.

After authorities failed to track down the owner of the precious cargo, the gold bars, worth 182,000 Swiss francs ($191,000), were confiscated by the public prosecutors office.

Now, authorities have decided to publicize their quest to find the bounty’s mysterious owner.

In a bulletin dated June 2, officials said the owner has five years to make a claim for the treasure.

A spokesperson for the prosecutor’s office told CNN that several inquiries had been made about the gold and were being checked. Not details about the nature of the checks were given.

EDITORS NOTE: A reminder to own physical gold in the safest vaults in the world and to transport gold coins and bars using established and trusted precious metal logistic providers.

Own gold coins and bars in the safest vaults in Zurich, Switzerland with GoldCore. Learn why Switzerland remains a safe haven jurisdiction for owning precious metals. Access Our Most Popular Guide, the Essential Guide to Storing Gold in Switzerland here



NEWS and COMMENTARY

Gold steady as firm dollar offsets rise in virus cases

Gold firms on Fed stimulus measures, weaker dollar

Dollar treads water on Fed views, geopolitics

Green shoots welcome but recovery still a long road, Fed’s Powell says

Turkey launches ground operation against Kurdish militants in northern Iraq

Asian business sentiment plunges to record low on virus effect

Japan’s exports fall most since 2009 as U.S. demand slumps

Watch Interview Here

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

16-Jun-20  1728.35 1719.85, 1366.61 1361.78 & 1525.44 1526.54
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

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

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Craig Hemke reports that the declining use of Exchange for Physicals may be the demise of the comex. I believe he is right

(Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: Declining use of EFPs hints at demise of Comex

 Section: 

10:24p ET Tuesday, June 16, 2020

Dear Friend of GATA and Gold:

The collapsing number of Comex gold futures contracts being resolved by the mysterious “exchange for physicals” mechanism may foretell the collapse of the Comex and the fractional-reserve gold banking system itself, the TF Metals Report’s Craig Hemke writes today at Sprott Money.

His analysis is headlined “EFP (Ab)Use Falls Sharply” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/bank-efp-abuse-falls-sharply-craig-hemk…

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

iii) Other physical stories:

 

Craig Hemke: Gold Demand Is Breaking Paper Markets

 

While some people wonder if the paper gold and silver markets might eventually break one day, perhaps even more worthwhile to ask, is if they have already broken.

Because while the industry is widely still using the COMEX and LBMA paper system as the source of the gold and silver prices, that doesn’t mean the situation isn’t already Enron-ing out of control beneath the surface. Which Craig Hemke of TFmetals.com was kind enough to join me on the show and discuss.

He talked about how there’s already been a failure to deliver in the gold market. As well as what he expects to happen to the silver price when gold is cracking through the $1,900 and $2,000 levels.

So to find out what one of the world’s top precious metals market experts is keeping his own eyes on, click to watch the interview now!

Chris Marcus
June 16, 2020

 

Chris Marcus

end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early WEDNESDAY 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: 7.0875/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0810   /shanghai bourse CLOSED UP 4.12 POINTS OR 0.14%

HANG SANG CLOSED UP 137.32 POINTS OR 0.56%

 

2. Nikkei closed DOWN 126.45 POINTS OR 0.56%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 97.18/Euro FALLS TO 1.1233

3b Japan 10 year bond yield: RISES TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.40/ 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:: 38.03 and Brent: 40.60

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.41%/Italian 10 yr bond yield DOWN to 1.40% /SPAIN 10 YR BOND YIELD DOWN TO 0.55%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.81: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.17

3k Gold at $1719.00 silver at: 17.48   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 1/100 in roubles/dollar) 69.64

3m oil into the 57 dollar handle for WTI and 64 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 107.40 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 .9499 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0668 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.41%

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 0.76% early this morning. Thirty year rate at 1.55%

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

6.  TURKISH LIRA:  UP  TO 6.8578..

Stocks Shrugs Off China Second Wave Fears, Asian Clashes, Rise On Stimulus Hopes

For the third day in a row, global markets have shrugged off concerns about rising global coronavirus cases and that China is set to suffer a “second wave” as much of Beijing is once again under lockdown, with US equity futures advancing and European shares adding to their best gains in almost a month thanks to continued government and central bank stimulus and hopes of a rapid economic recovery.

As we accurately previewed earlier, Tuesday data showed US retail sales enjoyed a record 17.7% rebound in May, but new infections have hit record highs in six U.S. states, Brazil infections surged by a record 34,918, Iran warned it may need a new lockdown, and China cut flights and closed schools to contain a fresh outbreak in Beijing and a clear second wave in the country.

The theme of a strong global economic rebound “will need to be balanced against the 2nd wave COVID risks which are more difficult to assess, and we would argue investors have assumed to be perhaps more modest than in reality,” said MUFG’s Head of Research Derek Halpenny quoted by Reuters.

Geopolitical tensions also remain rife with India reporting 20 of its soldiers were killed in clashes with Chinese troops at a disputed border site, while North Korea rejected a South Korean offer to send special envoys and said it would redeploy troops at the border. However, in a world where only central bank liquidity matters, all geopolitical concerns were quickly forgotten.Sentiment was also boosted after a simple, cheap steroid, dexamethasone, used to reduce inflammation in other diseases such as arthritis, reduced death rates by around a third among the most severely ill COVID-19 patients admitted to hospital.

“It is one of the best pieces of news we’ve had through this whole crisis,” Britain’s Health Secretary Matt Hancock said.

As a result, MSCI’s index of World shares rose 0.2%, having climbed 2.2% the previous day to reclaim a good portion of the ground it lost last week. European shares rebounded, after early gains of 1% were trimmed in half but with increases in real-estate and construction-firm shares brought fresh momentum to the Stoxx Europe 600 Index.

Asian equities saw a modest move higher except for shares in South Korea, which were volatile in the wake of rising tensions with North Korea, with the won currency sliding against the dollar.  Most other markets in the region were up, with Thailand’s SET gaining 1% and Australia’s S&P/ASX 200 rising 0.8%, while Japan’s Topix Index dropped 0.4% after jumping almost 5% on Tuesday for its biggest daily gain in three months.  The Topix declined 0.4%, with Toho System and Enigmo falling the most. The Shanghai Composite Index rose 0.1%, with China Building Test and Nanjing Iron & Steel posting the biggest advances.

As Bloomberg notes, investor optimism toward risk assets is reflecting bets that new virus outbreaks won’t lead governments to pull back from gradually reopening their economies, even though Fed Chair Powell said the U.S. economy has a long way to go before it reverses the substantial damage done by the pandemic.

“Global markets could remain stretched between a health situation likely to remain a threat in several regions for some time on the one hand, and a stream of positive macro figures confirming that we have passed the low point on the other,” said Xavier Chapard, a global macro strategist at Credit Agricole. He added that “the Fed’s priorities are shifting from emergency actions aimed at preventing a market melt-down to long-lasting actions to support the fastest possible recovery in the real economy”, although we kinda disagree with that considering the Fed strategically re-announced the launch of its bond buying operation just as the market was about to drop below its gamma neutral level on Tuesday.

“There is little doubt that the global economy bottomed in April and is poised to post record-high growth rates over May and June, strongly lifting 3Q GDP above its 2Q trough,” wrote economists at JPMorgan. “But questions about the extent of lasting damage will have to wait for a number of months before being resolved.”

In rates, 30Y rose 2bps at 1.55%, having risen by the most in a month on Tuesday, and 10-year German Bunds led a flurry of similar rises in Europe ahead of a 5 billion euro bond sale. “The tension between better economic data and rising COVID-19 cases continues to drive market volatility,” said Antoine Bouvet, senior rates strategist at ING in London.

In FX, the Bloomberg Dollar Index swung between small gains and losses, though the upside seemed capped by the 200-DMA; the greenback advanced versus most Group-of-10 peers, though most traded in confined ranges. Risk-sensitive currencies were little changed against the dollar after earlier being weighed down on concern over the resurgence of the coronavirus outbreak, particularly in China. The euro reversed an early London-session gain; German bunds declined, with the oversubscription rate falling at an auction. The pound slumped; it had earlier bounced back from a slight decline after U.K. inflation data came in at its weakest since 2016, increasing expectations for more BOE stimulus.

In commodities, gold was stuck at $1,725 and well within the $1,670/$1,764 range of the past few weeks. Gains in oil prices slowed amid an increase in U.S. crude inventories. They had climbed 3% on Tuesday after the International Energy Agency (IEA) raised its oil demand forecast for 2020. Brent crude futures swung 1% higher to $41.35 a barrel, while U.S. crude ticked up 16 cents to $38.54.

Expected data include housing starts, mortgage applications reported earlier rose to the highest level since 2009.

Market Snapshot

  • S&P 500 futures up 0.9% to 3,155.75
  • STOXX Europe 600 up 0.8% to 366.28
  • MXAP up 0.2% to 158.71
  • MXAPJ up 0.5% to 511.09
  • Nikkei down 0.6% to 22,455.76
  • Topix down 0.4% to 1,587.09
  • Hang Seng Index up 0.6% to 24,481.41
  • Shanghai Composite up 0.1% to 2,935.87
  • Sensex up 0.7% to 33,846.95
  • Australia S&P/ASX 200 up 0.8% to 5,991.80
  • Kospi up 0.1% to 2,141.05
  • German 10Y yield rose 6.2 bps to -0.365%
  • Euro up 0.06% to $1.1271
  • Italian 10Y yield fell 6.1 bps to 1.269%
  • Spanish 10Y yield rose 1.8 bps to 0.551%
  • Brent futures down 0.3% to $40.82/bbl
  • Gold spot down 0.2% to $1,722.58
  • U.S. Dollar Index up 0.2% to 97.12

Top Overnight News from Bloomberg

  • President Donald Trump’s trade chief, Robert Lighthizer, will tell U.S. lawmakers Wednesday that the time has come to renegotiate America’s fundamental tariff commitment at the World Trade Organization
  • Beijing reported new virus cases Wednesday, having closed schools and canceled more than 1,200 flights as authorities grapple with stemming the outbreak without sealing off the city
  • The European Commission on Wednesday will unveil a set of proposals to bolster local industries in fighting back against companies that receive aid from foreign governments. The plan could ban these non-EU firms from making acquisitions, or force them to divest assets, and allow the commission to impose fines
  • Italian Prime Minister Giuseppe Conte will likely seek parliament’s approval for about 10 billion euros ($11 billion) in extra spending soon, government officials said, in the latest step to revive one of Europe’s most vulnerable economies
  • South Korea warned North Korea against further provocations, after Kim Jong Un’s regime pledged to dismantle the last remnants of President Moon Jae-in’s legacy of rapprochement and move troops into disarmed border areas
  • The U.K. published its negotiating objectives for a trade deal with Australia and New Zealand, which the government said could boost exports by about 1 billion pounds ($1.3 billion) as it seeks to expand trade links after Brexit

Asian equity markets failed to fully sustain the positive handover from Wall St with regional bourses indecisive amid geopolitical tensions, COVID-19 fears and with early underperformance in Japan due to a firmer currency and weaker than expected trade data. ASX 200 (+0.8%) and Nikkei 225 (-0.6%) traded mixed as upside in consumer stocks and tech kept the Australian benchmark afloat, while sentiment among Tokyo exporters was subdued by a firmer currency and after the latest trade data showed a larger than expected slump in Exports Y/Y, with Japan’s US-bound exports at the fastest pace of decline since March 2009 and its trade surplus with the US at a record low. KOSPI (+0.1%) swung between gains and losses on increasing tensions in the Korean peninsula after North Korea demolished its inter-Korean liaison office in Kaesong yesterday and is reportedly to deploy the army to Kaesong and Mt. Kumgang. There were also criticism from North Korean leader Kim’s sister on South Korean President Moon which prompted a response from the Blue House that it will not tolerate North Korea’s senseless remarks anymore and the Defense Ministry warned that North Korea will pay the price if it takes actual military action. Hang Seng (+0.6%) and Shanghai Comp. (+0.1%) conformed to the non-committal tone after another net liquidity drain by the PBoC and amid concerns regarding the outbreak in Beijing where the city government raised its COVID-19 emergency response to level II from level III and resulted to the cancellation of 1255 flights. In addition, deadly clashes between India and China at the Himalayan border where 20 Indian soldiers were killed also contributed to the ongoing geopolitical concerns. Finally, 10yr JGBs were slightly higher after having rebounded off support just below 152.00 although the underperformance of Japanese stocks and BoJ’s presence in the market only provided marginal gains for JGBs.

Top Asian News

  • Citi Sees Higher Chance of Possible Default for Hilong Bonds
  • RBA Saw Australian House Prices Falling 7% Over the Next Year
  • Foiled Kidnapping Hurls Publicity-Shy Tycoon Into Spotlight
  • Yes Bank Is Said to Plan $1 Billion Public Share Offering

European equities had a tame start to the session as bourses opened with very modest gains following a mixed APAC handover, before the region edged higher since the cash open. Europe has since given up early gains [Euro Stoxx 50 +0.1%] to return to levels seen around the cash open. Peripheries lag with Spain’s IBEX (-0.9%) is the marked underperfomer thus far and Italy’s FTSE MIB (-0.1%) also in the red – potentially heading into the European Council meeting with pessimistic rhetoric from Chancellor Merkel and European Council President Michel on the likelihood of a concensus on the Recovery Fund being reached on Friday. The periphery could also be seeing jitters of a second wave having been hit hard by the initial outbreak. Sectors are mixed with defensives overall faring better than cyclicals, whilst the breakdown sees Travel & Leisure the laggard amid fears of further disruptions to operations due to a second wave. On that front, Carnival (-3.5%) shares continue to deteriorate alongside the update from Norwegian Cruse Line – who cancelled all voyages until October. Elsewhere, European Auto names and part makers remain under pressure as May car registrations slumped 57% YY, with Renault (-1.2%), Daimler (-1.1%), Continental (-1.8%) and Ferrari (-1.5%) all at the foot of their respective bourses. HSBC (+0.1%) trades choppy but just about holds onto gains amid reports the group is poised to cut headcount by some 35k over the medium term; however, the firm could be further embroiled in politics, with Global Times stating that some observers have said the Anglo-Sino bank may experience more severe consequences for their collusion with the US against Huawei.

Top European News

  • U.K. Inflation at Weakest Since 2016 Adds Pressure on BOE to Act
  • German Cabinet Okays $70 Billion in Debt to Combat Recession
  • Brexit Heartlands Are Paying the Highest Price for Coronavirus
  • Forget This Year’s Highs for European Equities, Strategists Warn

In FX, a rather muted start to the midweek EU session, as the Dollar consolidates following yesterday’s revival on encouraging US economic recovery leads via retail sales. However, the DXY remains relatively underpinned within a narrow 97.264-96.796 band amidst similarly tight ranges vs major counterparts in the run up to Fed Chair Powell’s 2nd semi-annual testimony and more data that could provide further evidence for or against the circa April COVID-19 trough theory in the form of housing starts and building permits.

  • NOK/SEK/AUD/CHF/NZD – The Norwegian Crown continues to rebound from Monday’s deep risk aversion and crude retracement lows, with Eur/Nok testing support ahead of 10.7000 awaiting further confirmation from the Norges Bank tomorrow that benchmark rates have hit the lower (zero in this case) bound. Meanwhile, the Swedish Krona has also regained some poise amidst mixed NIER GDP forecast revisions and jobs data, as Eur/Sek hovers near 10.5100 compared to a high just shy of 10.5800. Similarly, the Aussie and Kiwi have regrouped after more volatile trade overnight and Tuesday’s even sharper swings to revisit 0.6900 and pivot 0.6450 against their US peer respectively, and with the latter now looking for independent inspiration from NZ GDP tonight. Elsewhere, the Franc and Loonie are both meandering, around 0.9500 and 1.3550, eyeing the SNB on Thursday and Canadian CPI later today.
  • JPY/GBP/EUR – Marginal G10 underperformers, with the Yen still restrained below 107.00 in wake of a wider than expected Japanese trade deficit on weak internals and stymied by decent option expiry interest at 107.25 (1.1 bn), while Cable topped out ahead of 1.2600 and the 200 DMA again, albeit holding around the 100 DMA (1.2526) after little reaction to in line/softer UK inflation metrics. The Euro is also fading from a test of round number/psychological resistance at 1.1300, and testing support through the 50 DMA (1.1233) that sits close to recent sub-1.1230 lows and stops said to be residing on a break of 1.1228.
  • EM – Broad sentiment is notably more fragile against the backdrop of several geopolitical hotspots that could spiral given recent developments, and on that note the Lira is underperforming as Turkey steps up its offensive against PKK/YPG targets in Northern Iraq, with Usd/Try back over 6.8500 at one stage in contrast to flat/fractionally softer trade in Usd/Zar and Usd/Mxn.

In commodities, WTI and Brent front-month futures initially grinded higher in early European trade, having had somewhat of a lacklustre APAC session with the complex pressured by Beijing curbing some 60% of its flights in a bid to stem a second virus outbreak, whilst a surprise build in Private Inventories added to the downside factors. Nonetheless, the complex has given up recent gains as traders eye the release of the OPEC Oil Market Report for June alongside the start of the JTC meeting, and against the backdrop of heightened geopolitical tensions. Tomorrow’s JMMC meeting will see the committee (composed of Saudi, Russia, Iraq, UAE, Kuwait, Nigeria, Algeria, Venezuela and Kazakhstan) reviewing secondary source data alongside current market fundamentals before proposing policy recommendations – no policy will be set at this meeting. In terms of compliance, reports note that Iraq is aligning its cuts with the OPEC+ pact, shipping data and industry sources suggest the second largest OPEC member’s exports have declined some 300k BPD thus far in June. WTI July reliquinshed the USD 38/bbl to the downside (vs. 37.21/bbl low) whilst Brent August similarly lost its USD 41/bbl handle (vs. 40.03/bbl low). In terms of other scheduled events, the weekly DoEs could provide some volatility (in the short term at least) – with headline crude stocks seen drawing 152k barrels (vs. Private Inventory build of 3.9mln barrels). Elsewhere, spot gold succumbs to a firmer Buck as the yellow metal prints fresh session lows. It’s worth noting for precious metals that ETFs increased holdings gold holdings for a fifth consecutive session in which it added almost 48k oz yesterday to bring this year’s net buying to 18mln oz. Copper prices see modest gains well within yesterday’s ranges amid the indecisive APAC tone – prices remain north of USD 2.50/lb but just under USD 2.60/lb.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 9.3%
  • 8:30am: Housing Starts, est. 1.1m, prior 891,000; MoM est. 23.46%, prior -30.2%
  • 8:30am: Building Permits, est. 1.25m, prior 1.07m; MoM est. 16.79%, prior -20.8%

DB’s Jim Reid concludes the overnight wrap

This morning we are hurtling deep into the 21st century here at DB Research as we have launched a new trial video research format. In this first trial you’ll see me talk through June’s market sentiment survey for four and a half minutes. It might be worth watching just to see the results of my wife’s attempts to style and pimp my WFH set up. We have guitars, books and a copy of an old master on an easel. The painting on the easel was a creative way of blocking out light from a window which is a bit of a VC nightmare. The painting was left over from my last house where we commissioned art students in Russia to paint replicas of old paintings at a very reasonable price and make them look old. Not obvious pieces but nice ones. Given my wife went to Art College she hated this philistine approach from me but I said I wasn’t prepared to pay for many antique oils. If anyone can recognise the painting then I’ll be very impressed!! Here is the link to the video. Let us know if the format is interesting to you and what you’d like to see on it from DB Research (link here).

In another WFH appearance from my crib, this Thursday (12:30pm London time) I’m taking part in a small fireside roundtable webinar on China, commodities and the reflation trade organised by our mining and metals team but containing macro content from our Chinese economist, China strategist, our commodities strategist and also myself. Feel free to register here.

While we are in full advertising mode, yesterday Henry Allen on my Thematic team put out a report that we’ve been working on looking at what might be the next massive tail risk after Covid-19, looking at events including further pandemics, volcanoes, solar flares, wars and earthquakes. The main takeaway is that there’s a one-in-three chance that the next decade will see at least one of a major flu pandemic killing more than 2m people; a globally catastrophic volcanic eruption; a major solar flare; and a global war. So some pretty striking stuff. You can read the full report here.

The most exciting thing today is the return of the English Premier League. I’m not sure I’ll ever be so happy to see Aston Villa vs Sheffield United or indeed ever watch that fixture again. Hopefully one of the tail risk disasters mentioned above won’t come before Liverpool are crowned champions within the first few games of the restart. In terms of markets, yesterday felt like one of those children’s football matches where one minute everyone rushes up the pitch towards the opposition’s goal to try to score before the other side then do exactly the same at the opposite end thus ensuring no formation, no structured defending and no tactics. Just an end to end slug fest. Indeed markets went from bullish, to worried, to extreme bullish to worried and back to bullish again.

By the end of the session, the S&P 500 was up +1.90% in its 3rd straight move upwards, with every sector moving higher on the day and only 35 stocks down. The VIX volatility index continued to unwind from its intraday peak early yesterday morning London time (44.44) with a further -0.73pts fall to close at 33.67. Energy stocks led the move higher in the US, with WTI up +2.67% and Brent crude up +2.79%. The latter closed above $40/barrel for the first time since risk assets dropped sharply last Thursday.

So going through the bewildering array of headlines, let’s begin with the pandemic. The good news yesterday was that an Oxford University trial reported that the steroid dexamethasone was found to reduce coronavirus deaths by a third in patients who required ventilation. In fact it was described by England’s Chief Medical Officer on twitter as “the most important trial result for COVID-19 so far.” On the other hand, there were some less positive developments elsewhere, with Beijing announcing that schools would be shut and online classes resuming for all grades, following a new cluster of cases in the city, that has also seen them raise their Covid-19 emergency response to the second-highest level. Further, the city has also ordered that people will have to be tested for the virus before being allowed to leave the city and has imposed restrictions on visits to all residential compounds with those in areas with medium and high-risk areas being barred from accepting visitors.

Over in the US the news wasn’t exactly positive either as the case numbers in certain states continued to move in a concerning direction. In Florida they reported a +3.6% rise in cases yesterday, above the 7-day average of +2.5% and the most absolute cases reported in a day since the pandemic started. While in Texas, which has been something of a hotbed recently, the number of virus hospitalisations rose by +8.3%, the most in nearly 2 weeks. Cases in the state rose by +3.7% – the most in week – with the absolute number (3,358) the largest during the pandemic. California new cases rose by +2.3%, above the weekly average of 2.1% while confirmed hospitalisations rose by 7.5% to 3,335 across the state, the most since the first week of May. Much like we’ve previously highlighted in the Corona Crisis Daily in countries like the UK and France, there appears to be a Tuesday effect in some US states, where the Sunday and Monday reporting is slightly lower and then cases rise more sharply on Tuesday. Texas, California, Arizona, and Florida all have seen a noticeable rise in case growth on 4 out of the last 5 Tuesdays when compared to the 2 days prior. Remember our usual case and fatality tables are in the full report today. Click on “view report” at the top.

Against the worrying virus backdrop, a stunningly strong US retail sales report for May offered further hope to investors that the economy might be able to bounce back quicker than many had expected. The headline figure saw an increase of +17.7%, more than double the +8.4% expected, while the previous month’s decline was revised to show a smaller -14.7% contraction (from -16.4%). Autos dragged up the overall number, with vehicles and parts seeing a +44.1% rise in May, but even the ex-auto number at +12.4% (vs. +5.5% expected) came in stronger than anticipated, with increases in every category on the month. President Trump expressed his approval, tweeting that “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!”

We also saw a couple of geopolitical flare-ups yesterday, which in another world could have easily blown the rally off course. Firstly, we got the news not long after going to press yesterday that North Korea had blown up an inter-Korean liaison office on their side of the border, which comes against the backdrop of escalating threats from North Korea towards the south in recent weeks. North Korea has said overnight that it will be deploying troops on its side of the border where it had joint projects with South Korea, and to the Mount Kumgang tourist area. Secondly, there was a clash between Indian and Chinese soldiers yesterday in which at 3 Indian troops were confirmed to have been killed during a fight, before a further 17 passed away from injuries according to a New York Times report. A Chinese foreign ministry spokesman said that two Indian soldiers had crossed into Chinese territory on Monday, and that “They provoked and attacked the Chinese side, leading to a severe physical brawl.” By the looks of things it seems as though both sides are trying to de-escalate the situation, but this is nevertheless a very unwelcome development in an environment not short of possible risks.

In terms of the broader market moves, as mentioned the S&P 500 saw its 3rd upward move in a row, while the Dow Jones (+2.04%) and the NASDAQ (+1.75%) also saw strong performances. European equities outperformed their US counterparts, with the STOXX 600 up +2.90%, while the DAX, FTSE MIB, and IBEX were all up over 3%. Core sovereign bonds sold off as investors moved out of safe havens, with yields on 10yr US Treasuries (+3.1) and bunds (+1.9bps) both climbing. That said, there was another notable narrowing of peripheral spreads in Europe, with the spread of Greek 10yr yields over bunds falling by -7.8bps to their tightest level since late February. 10yr BTP spreads narrowed by -8.0bps.

The rally has taken a pause overnight with bourses slightly lower in Asia. Indeed the Nikkei (-0.81%), Hang Seng (-0.03%), Shanghai Comp (-0.10%) and Kospi (-0.03%) are all in the red with only the ASX (+0.54%) currently up. The geopolitical tensions we noted above have weighed on the Korean Won (-0.71%) and the Indian Rupee (-0.24%) while yields on 10y USTs are down -2.5bps and futures on the S&P 500 are trading down -0.25%. WTI oil has also retraced 3%. In other overnight news, Japan’s trade surplus with the US dropped -97% yoy in May to $96mn, the lowest in data going back to 1979, as car shipments declined by -79% yoy.

Back to the US, and Fed Chair Powell appeared before the Senate Banking Committee yesterday, as part of the semi-annual monetary policy report to the Congress. In his prepared remarks, Powell said that in spite of indicators that pointed towards a stabilisation or a small rebound in activity, “the levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery.” So clearly not wanting to let positive data like the jobs report let people think the economy is out of the woods yet. Given this testimony occurred only days after the FOMC this was never likely to move the dial much but Powell’s tone on corporate bond purchases were a bit confusing. He suggested that purchases will be switched from ETFs to bonds but maintaining the same dollar amount. In speaking to Craig who covers US credit and who is, to be fair, co-authoring this report today, he suggests that at face value this would suggest the Fed will buy far far less than the $250bn capacity that the SMCCF has. So far ETF purchases have averaged between $1-1.5bn per week for context. The expectation was that bond purchases would be in addition to ETF purchases and also that bond purchases would be greater given the larger available universe to purchase from. We will see if this was a misinterpretation issue or an actual policy announcement. Credit had earlier been on an almighty tear. From opening levels iTraxx Main, Crossover, US IG and HY CDX were -10, -65, -6 and -32bps tighter at their spread lows for the session before closing a slightly more subdued close at -6, -33, -1 tighter and +2bps wider respectively. Cash did seemingly have a better day however, with US HY and IG spreads in particular 47bps and 12bps tighter respectively.

Powell was not the only Fed speaker yesterday as Fed Vice Chair Clarida weighed in on the inflation debate citing the pandemic as a deflationary shock. He indicated that the Fed is placing a high priority on keeping inflation expectation anchored, amidst risks of long-term inflation expectations falling due to the economic fallout. He admitted that these are not new concerns saying, “that measures of longer-term inflation expectations were, when the downturn began, at the low end of a range that I consider consistent with our 2% inflation objective and, given the likely depth of this downturn, are at risk of falling below that range.”

Wrapping up with yesterday’s other data now. The industrial production numbers from the US weren’t quite as positive as the retail sales figures, though they did show a +1.4% rebound in May (vs. +3.0% expected). That said, the NAHB’s housing market index rose to 58 (vs. 45 expected), so all eyes will be on today’s housing starts and building permits data to see if that rebound in housing is evident in other releases. Here in the UK meanwhile, the headline unemployment rate for the 3 months from February to April unexpectedly remained at 3.9% (vs. 4.7% expected). However, digging further into the labour market data showed things weren’t quite so rosy. The number of weekly hours worked fell to the lowest seen since 2013, while the number of vacancies in the more up-to-date March-May period fell to 476k, the lowest since 2012.

To the day ahead now, and we’ll hear from Fed Chair Powell once again today before the House Financial Services Committee, while the Fed’s Mester will also be speaking. On the data front, we’ll get a bunch of data releases out for May, including UK CPI, EU27 new car registrations and the final Euro Area CPI reading. Over in the US, there’ll also be housing starts and building permits, while Canada will also release their CPI.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 4.12 POINTS OR 0.14%  //Hang Sang CLOSED UP 137.32 POINTS OR 0.56%   /The Nikkei closed DOWN 126.45 POINTS OR 0.56%//Australia’s all ordinaires CLOSED UP .84%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0875 /Oil UP TO 38.03 dollars per barrel for WTI and 40.60 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0875 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0810 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea//NORTH KOREA

North Korea threatens to invade the border area. Good reason for gold to falter a bit

(zerohedge)

North Korea Threatens To Invade Border Area After Blowing Up De Facto Embassy

Now that the distinctive inter-Korean liaison office at Kaesong lies in ruins following Tuesday’s major escalation, North Korea is reportedly preparing to send troops into the border area where they will resume “all kinds of regular military exercises” just meters away from South Korea.

According to South Korean news agency Yonhap, North Korea’s military is reviewing plans to reenter the DMZ that was previously disarmed under an inter-Korean agreement.

“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 KCNA, the Korean Central News Agency.

The North Korean military is preparing “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.”

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

A photo of the aftermath of this morning’s attack has surfaced on Twitter, as the distinctive blue building clearly lies in ruins.

Taepodong@stoa1984

picture is out. the higher building suffered a lot of damage too. Anyway it is useless.

View image on Twitter

Earlier, the South warned that it would meet any further North Korean aggression with “a strong response.”

Following an emergency meeting of the UN Security Council standing committee to discuss Tuesday’s attack, the Blue House delivered an unusually aggressive – according to Yonhap – warning.

“The government expresses strong regret over North Korea’s unilateral explosion of the inter-Korean liaison office building,” Kim You-geun, deputy director of Cheong Wa Dae’s national security office, told reporters after the meeting. “We sternly warn that we will strongly respond to it if North Korea takes any action that further worsens the situation.”

Though Kaesong is considered a special border region, it is, technically, in North Korea.

Personally, we don’t see how invading your own country is much of a gesture. But maybe doing some jumping jacks surrounded by an assortment of heavy artillery and tanks might.

END

b) REPORT ON JAPAN

 

3 C CHINA

Looks like another cover up in China..the numbers just do not add up

Watson/Summit news

Another COVID Cover-Up In China? BBC Reporter Says Numbers Don’t Add Up In New Outbreak

Authored by Steve Watson via Summit News,

The BBC’s correspondent in China has warned that the communist government may be in the midst of a second coronavirus cover up, as a massive police and medical response to a new cluster in Beijing doesn’t tally with the reported number of cases.

The Chinese government has locked down the capital city, instituted travel bans, and is rounding up residents, putting them on buses and placing them in quarantine:

The footage was shot by activist Jennifer Zeng, who claims that seven hotels in the city were requisitioned by the government to be used as quarantine sites.

However, Beijing only reported 27 new infections yesterday, and 106 in the past five days, prompting many to wonder, just what the hell is going on here.

More footage shows hundreds of people lining up outside Youan hospital in Beijing for virus screening:

Massive amounts of fruit and vegetables have been discarded after Beijing shut down Xinfadi wholesale market:

Earlier in the week huge amounts of police were deployed to the market:

The BBC’s Stephen McDonell noted that the Chinese government is either being “super cautious”, or they are again not giving accurate figures on the new infection rate.

Stephen McDonell

@StephenMcDonell

Additional prevention measures: hundreds of thousands of people who’ve been inside the Market (plus several other smaller markets) in the Chinese capital in recent weeks are to report themselves and effectively commence home quarantine.

Stephen McDonell

@StephenMcDonell

Govt spokesman Xu Hejian described the city’s situation as “extremely severe”. That either means the relatively low infection tally doesn’t reflect the facts on the ground or they’re being super cautious, trying to mobilise the population to stop the spread

Stephen McDonell

@StephenMcDonell

In terms of new measures: residents from “high risk” groups are not allowed to leave the city (I guess that means living near/ contact with XinFaDi Market) . Taxis and Didi cars are also not allowed to leave the city limits.

Stephen McDonell

@StephenMcDonell

From late Tuesday night presser… Nobody to leave without a clear test in the last 7 days. (But understandably limited test spaces are being prioritised for high risk people). Residents in medium/high risk ategories linked to market no leaving at all.

Stephen McDonell

@StephenMcDonell

Practically speaking it’s now very difficult for anyone to leave . The Chinese capital is going into a prevention bubble. 1255 flights were cancelled this morning. That’s 70% of all flights in and out of .

Stephen McDonell

@StephenMcDonell

[More from late last night presser]… all schools closed again from today. Residents in high-risk areas not allowed to leave housing compounds. All compounds/hutongs only residents allowed in. Businesses/manufacturing continuing for now but work from home encouraged.

Stephen McDonell

@StephenMcDonell

So that’s from 50+ days with zero cases in to 137 official* infections with symptoms in 6 days and the Chinese capital is now being effectively cut off from everywhere else. Four other provinces have reported cases emanating from ’s Market.

Owners of the market that was shut down in Beijing are reportedly claiming that the ‘more infectious’ strain of the virus came from Europe via some dodgy salmon, however the Chinese Centre for Disease has said there is no evidence to support the claims.

If this fresh outbreak is ‘very severe’ as authorities are claiming, then where are the infected?

Will Europe move to block flights coming from China this time, or once again allow transmission of the virus unhindered?

One more intriguing theory of what is happening comes from professor Steve Tsang of the School of Oriental and African Studies, who has contended that China is using Covid-19 to ‘divide and conquer’ Europe.

“China is essentially trying a divide and rule approach to the EU,” Tsang told the Daily Express, adding “Some of the EU countries are being enticed to be much closer to China and to break away from European norms. And that is a serious problem.”

China has sent coronavirus aid to countries that have not received it quickly enough from the EU.

“The pandemic hasn’t helped but the problem with the pandemic is not so much in eastern European countries as it is with Italy.” Tsang added.

Since 2012, China has heavily invested in the infrastructure of 17 eastern and central European countries, including the likes of Hungary and Greece, via the Belt and Road Initiative.

Many see this as a way of exerting dominance in global trade. With the emergence of the Covid-19 pandemic, and the lax response of the EU in helping its member states, China has everything to gain.

end
It sure looks like China is being hit pretty hard a second time around by the virus: this time in Beijing
(Associated Press)

Beijing cancels 60% of flights to contain fresh coronavirus outbreaks: report

June 17, 2020 at 8:22 a.m. ET

By Associated Press

BEIJING (AP) — The Chinese capital on Wednesday canceled more than 60% of commercial flights and raised the alert level amid a new coronavirus outbreak, state-run media reported.

The website of the Communist Party’s Global Times said that as of 9 a.m. Wednesday, a total of 1,255 flights to and from the capital’s two major airports have been scrapped.

Beijing has enacted a number of measures to limit travel in and out of the city, especially among those coming from districts where new cases have been detected. Beijing had essentially eradicated local transmissions but in recent days has added a total of 137 new cases with no new deaths.

On Wednesday, the city raised its threat level from 3 to 2, leading to the cancellation of classes, suspension of plans for opening up and stiffened requirements for social distancing.

No official public notice on a change in regulations has been issued by China’s civil aviation authority or by either Beijing Capital Airport — traditionally the world’s second busiest handling more than 101 million passengers — or Beijing Daxing International Airport.

However, on its official microblog, Beijing Capital said it expected to handle 500 flights on Wednesday. According to the official Beijing Daily website, the number of takeoffs and landings at the airport on June 10 was 901.

-END-

Trump on the warpath: signs a bill punishing Chinese official over the Uighur interment camps

(zerohedge)

Trump Signs Bill Punishing Chinese Officials Over Uighur Internment Camps

Just moments after excerpts of John Bolton’s book were leaked to several media outlets such as the WaPo and the NYT, in which the apparent punchline was Bolton’s allegation that Trump was cozying to China, the president – perhaps in direct response to the book leak – signed a measure punishing Chinese officials for imprisoning more than one million Muslims in internment camps.

What makes the timing of Trump’s Bill delightfully amusing, is that just an hour earlier we reported that According to Bolton, Xi “explained to Trump why he was basically building concentration camps in Xinjiang. … Trump said that Xi should go ahead with building the camps, which Trump thought was exactly the right thing to do.”

Yes, according to Bolton Trump told Xi to “go ahead” and build concentration camps in China, and he did so in public.

mcm-ct.com@mcm_ct

lol – yes that sounds exactly like @realDonaldTrump

sorry @AmbJohnBolton its 100% obvious that this is about the ONLY THING TRUMP WOULD NEVER say and you should be fucking in jail for being willing to like like this for political advantage & $ at a time like this in our country https://twitter.com/thehill/status/1273341913760968707 

The Hill

@thehill

JUST IN: Trump told Xi Jinping to “go ahead with building” concentration camps in China, Bolton claims http://hill.cm/OZtAwfr 

View image on Twitter

mcm-ct.com@mcm_ct

I don’t really think XI goes around asking other presidents IF HE CAN BUILD CONCENTRATION CAMPS @AmbJohnBolton – you are a pathetic freaking user

Of course, there is more in Bolton’s attempt to get rich quick, but when presented the opportunity to make these comments under oath, Bolton politely refused, saving his salacious details for his “tell all” memoir.

neontaster@neontaster

Just remember that Bolton declined to make any of these allegations under oath before Congress. https://twitter.com/NatashaBertrand/status/1273332804605095943 

Natasha Bertrand

@NatashaBertrand

According to Bolton, “Xi said he wanted to work with Trump for six more years, and Trump replied that people were saying that the two-term constitutional limit on presidents should be repealed for him.” https://www.wsj.com/articles/john-bolton-the-scandal-of-trumps-china-policy-11592419564 

Bolton’s self-serving book aside, the now enacted legislation – which as Bloomberg reminds us had won broad bipartisan support in Congress last month – requires Trump to sanction any officials found responsible for oppression of Uighurs and members of other Muslim minority groups and revoke their visas. Signing the bill, which has prompted threats of retaliation from Beijing, marks a shift for Trump, who has been reluctant in the past to act against China over human rights.

The top House Democrat, Nancy Pelosi, said the legislation “sends a clear message to the government of China that we are well aware” of abuse Uighurs have suffered.  The human rights measure passed the House last month on a vote of 413-1 and passed the Senate by unanimous consent. It condemns the internment of Uighurs and members of other Muslim minority groups in the Xinjiang region of China. The legislation calls for closing the camps where they are being held.

And while China has warned previously that should the bill be signed by Trump, there will be an appropriate retaliation, if Bolton is right and this is nothing just theater, expect absolutely no actual response from Beijing to this law besides the usual twitter jawboning from Hu Xijin.

end

4/EUROPEAN AFFAIRS

HSBC/LONDON/CHINA

HSBC, the custodian of GLD has resuscitated its plan to cut 35,000 jobs as their banking troubles persist

(zerohedge)

HSBC Resuscitates 35,000 Job Cut Plan As Banking Troubles Persist

Back in February, HSBC, Europe’s largest bank and troubled lender, announced a plan that would slash upwards of 35,000 jobs. Shortly after, the lender put restructuring plans on hold for three months due to the COVID-19 outbreak. Now, Bloomberg reports, HSBC is resuming plans to cut tens of thousands of jobs as a way to boost profitability in today’s challenging environment. 

“Since February, we have pressed forward with some aspects of our transformation program, but we now need to look to the long term and move ahead with others, including reducing our costs,” CEO Noel Quinn wrote in a memo obtained by Bloomberg.

“Against this backdrop, I’m writing to let you know we now need to lift the pause on job losses,” Quinn said. “I know that this will not be welcome news and that it will create understandable concern and uncertainty, but I want to be open with you about the reality of the current situation.”

Quinn unveiled plans to “remodel” large parts of the bank in late 2019. The actual restructuring wasn’t revealed until February — which said the global lender’s 235,000 workforce will be lowered by 35,000 over the next three years. As the lender shrinks its footprint, it expects to save $4.5 billion at underperforming units.

“Europe and the U.S. are expected to face the brunt of the cuts as HSBC attempts to turn around its businesses in regions where it has struggled to make money. The lender’s global banking and markets business, which houses its corporate advisory and market units, is expected to face significant reductions in areas such as equities sales and trading.

“HSBC is eyeing the sale of some of its businesses and is already looking for a buyer for its French retail operations, the disposal of which would take several thousand staff off its payroll,” Bloomberg notes.

A downturn in the global economy, no recovery for several years, and a harsh operating climate, HSBC is expected to announce deeper cuts:

“Despite banks’ commitments to retain staff through the pandemic crisis, we believe it is only a matter of time before substantial further cost-trimming plans are announced, with efficiencies identified as we work through the COVID crisis important in this context too,” John Cronin, an analyst at Goodbody, wrote in a note.

HSBC shares have widely underperformed European peers

HSBC negatively diverges global stocks

European banks have been operating in an ultra-low interest rate environment, strict regulations, and a continually evolving industry where fintech companies have upended old banking business models.

Doubleline Capital CEO Jeffrey Gundlach recently said in his DoubleLine Total Return Bond Fund webcast that negative interest rates had killed bank stocks in Europe and Japan.

We noted in late 2019, 50 banks laid off 77,780 jobs, the most since 91,448 in 2015 — we’re assuming by now, in a post-corona world, where the global economy is in recession — that a record number of banking jobs will be lost from now until the end of 2021.

Most of the HSBC job cuts will be based in Europe and the US.

END

UK Prime Minister Boris Johnson In Car Wreck After Convoy “Targeted By A Protester”

Given the world beheld scenes last week of Black Lives Matters protesters overrunning parliament square in London while vandalizing and defacing statues and monuments ranging from war memorials to Winston Churchill to even an Abraham Lincoln statue, with police appearing at times to sit back at let the destruction happen, it was only a matter of time before something like the below.

UK Prime Minister Boris Johnson was involved in a car wreck whena protester ran out in front of the convoy as it departed Westminster on Wednesday

The Independent

@Independent

Boris Johnson’s car involved in collision outside parliament

Embedded video

The whole dangerous close call in which Johnson escaped unscathed was caught on video and happened in broad daylight. There were no reports of injuries despite clear damage to the vehicle carrying the prime minister.

The prime minister’s convoy had been making the short drive to Downing Street when the accident happened.

Though one man is seen darting in front of the cars as they turned onto the street, reportedly a Kurdish protester demanding British action against Turkey, some reports suggested a group of demonstrators had surged toward the convoy just before the accident.

 

Boris Johnson’s vehicle after a collision as it departed the Houses of Parliament Wednesday, via Reuters.

Sky News reported that Johnson’s car had been “targeted by a protester” in an attempt to draw as much attention as possible.

The prime minister’s office confirmed that Johnson had indeed been inside the car, but that he was unhurt. “Yes, that was the PM’s car,” a spokesperson said. “I think the video speaks for itself as to what happened. No reports of anybody being injured.”

Media reports described a “minor fender-bender” but video showing a closer side angle reveals Johnson’s car suffered severe impact.

SkyNews

@SkyNews

Downing St says there are no reports of injuries after Prime Minister Boris Johnson’s car was involved in a collision outside parliament as it left the gates following PMQs.

More on this: https://trib.al/ziJeCnE

Embedded video

A different angle shows that while damage was relatively minor, Johnson’s car was hit with significant impact.

Police immediately jumped on and apprehended the man seen charging the convoy to cause the wreck.

With over the past weeks various protests outside of key government buildings in both the UK and US getting increasingly out of control, and turning into chaotic scenes of rioting and vandalism, this latest incident is perhaps a ‘wake-up’ call for police at such sensitive sites to get the situation under control.

END
EUROPE//.USA//DIGITAL TAX
Europe needs to tax the tech giants such as Google etc to sales in Europe’s jurisdiction.  Mnuchin is upset with this and he has just suspended talks on the digital tax..and threatens with tariffs if Europe implements.
(zerohedge)

US Suddenly Suspends Talks With Europe On Digital Tax, Threatens Tariffs 

The U.S. suspended talks with European countries for a new global tax framework for tech companies such as Alphabet Inc.’s Google and Facebook Inc, reported Financial Times.

U.S. Treasury Secretary Steven Mnuchin wrote a letter to four European finance ministers warning them that discussions had reached an “impasse.” He said the U.S. couldn’t agree on interim basis changesto the global taxation law that would affect big tech companies.

Mnuchin warned if European nations attempted to implement their own digital tax against U.S. tech companies —  it would pave the way for fresh tariffs.

France, Spain, the U.K., and Italy have been some of the countries eager to tax Apple, Facebook, Google, and other U.S. tech firms, alleging these companies profit from the European market while making minimal contributions. 

“Attempting to rush such difficult negotiations is a distraction from far more important matters,” Mnuchin wrote in the letter, dated June 12 (seen by Financial Times). “This is a time when governments around the world should focus their attention on dealing with the economic issues resulting from Covid-19.”

The letter was sent to Rishi Sunak, the U.K. chancellor of the exchequer, French economy minister Bruno Le Maire, and the finance ministers of Italy and Spain, which demanded talks on the global tax framework be suspended.

The United States remains opposed to digital services taxes and similar unilateral measures,” Mnuchin wrote. “As we have repeatedly said, if countries choose to collect or adopt such taxes, the United States will respond with appropriate commensurate measures.”

Mnuchin made it clear that he wants to resume talks in the back half of the year. European countries are expected to respond to Mnuchin’s letter.

“The OECD had proposed a compromise with two pillars. The first suggested countries would be allowed for the first time to have some rights to tax profits made on the basis of sales in their jurisdictions. This would not just apply to U.S. tech giants, but would also give the U.S., for example, limited taxing rights over European luxury goods companies.

The second was that there would be a global minimum corporate tax rate to stop countries lowering corporate tax rates in an attempt to shift company headquarters to their jurisdictions.

Mr. Mnuchin insisted that discussions on the second pillar remained on track and that the parties were “much closer to an agreement.” He said the U.S. hoped to bring these talks on a global minimum tax to a conclusion this year,” Financial Times reported.

With talks now suspended — progress stalled, and if European countries start rolling out individual taxes on U.S. tech firms, there could be a bilateral conflict between Europe and the U.S. — erupting into a tit-for-tat tariff war this summer. This could be enough to inflict damage on a global economy that is already reeling from a virus-induced economic crash.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

Michael Every on yesterday and today’s events:

(Michael Every…)

 

Rabobank: The Fed Will “Only” Intervene If Stocks Go Lower, Or Yields Go Higher

Submitted by Michael Every of Rabobank

Waking up to the Bloomberg headlines today feels a bit odd. The main story is “BORDER CLASH” (which was then subsequently changed to “FIREFIGHT”) as 20 Indian soldiers have died and China has almost certainly suffered casualties too. The acerbic Global Times makes that clear but it says Beijing is refusing to release the figure “to de-escalate”: US intelligence sources estimate the figure could be as high as 43. That’s two nuclear powers and neighbours, and the two most populous countries on earth, fighting each other (and apparently in melee combat) for the first time since 1975.

The second story is North Korea blowing up the North-South Korea liaison office and moving military police into the DMZ and other strategic locations between the two states (who are still technically at war). That’s a proto nuclear-armed power acting rouge – and it had already stated it has no interest in ever speaking to the US again.

The headlines are odd because both of these were things to be worrying about yesterday, when they happened. Yesterday’s headlines, however, were instead about a USD1 trillion White House infrastructure package that is unlikely to arrive any time soon. It seems that we really don’t see things as one world even when we strive to.

Regardless, Asia had a risk-off session so far today largely because it realises that the above events do matter. It is not the immediate risk of war between the Koreas or between India and China, either of which would be devastating: yet both are necessarily still fat tail risks. It is more a recognition that Asia has fault-lines running through it which are only going to deepen now that the era of “Chimerica”-led globalisation is coming to an end.

How does one resolve North Korea? No good answers. A few years ago people were discussing when India would sign the RCEP trade deal with China: does that look likely now? The more realistic question is how quickly India instead integrates with countries around China such as the Five Eyes group, Indonesia, Japan, and Vietnam. As the world faces more and more binary ‘US or China?’ product choices this will mean disruption of the kind that business does not like. Consider the recent editorial from Singapore’s Prime Minister worrying that this won’t be the Asian century after all if a new Cold War splits the region. (Against which backdrop note that publication of former US National Security Advisor John Bolton’s warts-and-all book about his time in the White House is being delayed by legal action claiming it will compromise US national security: is it called “Spy Kvetcher”?)

Naturally such a scenario would not be win-win: there would instead be winners and losers. On which front, Nikkei Asian Review is running a story today that Huawei has delayed production of parts for its newest flagship smartphone series in response to tighter US export controls. Let that sink in for a moment: China’s flagship firm is having difficulty with its flagship product; and things are only going to get worse from here for it if the US is serious about the legislation and executive orders it has been rolling out from a hawkish production line.

Of course, Asia was also gloomy about the fact that the virus situation in Beijing appears serious. Schools are closed again, for example. Then again, in the UK they still haven’t even opened, and that does not seem to stop the government/public from pressing ahead with all manner of lockdown unwinding.

The virus is clearly also still spreading in the US: yet it seems to be focusing more on shopping. Retail sales jumped 17.7% in May, as we saw yesterday, which was a huge beat of consensus. Yes, that is encouraging, and largely reverses the equivalent plunge seen the previous month as shops re-opened again. However, can we do a little maths, people? Start at 100 and go down 20%: you get to 80. Start at 80 and go up 20% to reverse the fall: you get to 96. That’s 4% down from where you started – which used to be called a recession. Furthermore, this is while federal government cheques are still boosting people’s bank accounts, and as my colleague Christian Lawrence correctly points out, in 30 of the 50 US states current government support is above the median salary level. It’s not that we can’t see a sustained rebound or a V-shape; it’s that it will take a whole lot more to achieve it….and ironically the stronger the numbers like yesterday’s look, the harder it will be to persuade Congress to pass such legislation.

Powell also mentioned Yield Curve Control (YCC), noting the Fed had been briefed on what the BOJ and RBA have done on that front. “Absolutely no decision” had been made on it so far, but he admitted it might be used if Treasury rates were “to move up a lot, and for whatever reason, we wanted to keep them low to keep monetary policy accommodative, [then] we might think about using it on some part of the curve.” So YCC won’t be used unless Treasury yields go a lot higher…in just the same way the Fed does not act on stocks/things unless they go lower. It’s a market; in one direction. Moreover, can you also think of “whatever reason” the Fed might also have to keep yields low? How about the fact that the last time they used YCC was back in the early 1950s to help ensure that debt built up in WW2 could be inflated away?

So ironically some elephants in the room are now front-page news – which should be risk-off for emerging markets; and yet the Fed-ephant is stomping on volatility anywhere it sees it, which is risk-on for emerging markets. Short-term, which elephant should you back? And longer term? How did those WW2 era debs occur in the first place?

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

INDIA/CHINA/CORONAVIRUS UPDATE

India Reports Record Jump In COVID-19 Deaths As China Struggles With “Textbook Second Wave”: Live Updates

Nuclear-armed neighbors China and India may be enmeshed in a deadly border dispute with potentially serious ramifications for the global community, both countries are struggling with an alarming resurgence of COVID-19 cases, according to media reports.

Yesterday, Chinese officials ratcheted up restrictions in Beijing as nearly 150 new coronavirus cases have been identified in the city over the past week. More residential compounds were placed under ‘partial lockdown’ conditions on Tuesday. Beijing has already tested more than 350k people since Saturday, with a goal of testing a large chunk of the city’s population of ~20 million people.

According to Al Jazeera English, one of the few English-language news organizations with reporters still on the ground in Beijing, many locals were taken by surprise as the local government raised the emergency alert level to ‘II’, closed schools and markets and began imposing movement restrictions, particularly on those who live in “high risk” areas (ie areas near the Xinfadi wholesale food market where officials believe the outbreak originated).

Some Beijingers didn’t realize that their residential community had been placed on ‘partial lockdown’ with nobody allowed in or out until all residents have been tested. AJ says there are currently at least 27 communities under these conditions.

Nelson Quan had no idea he had been locked into his compound in the Yuquan district of Beijing until he arrived at the front gate and saw the barricade.

Four days earlier, on June 11, Beijing had reported its first COVID-19 case in almost two months. Now, Quan’s community and at least 27 others are forced to stay at home while they await the results of their nucleic acid virus tests. No one is allowed in, or out.

“Two months of things loosening up, and life feeling like it’s going to be normal, and all of a sudden we’re back to where we were in February,” Quan said in a phone call.

As Beijing cut off transportation including bus and rail service, and 70% of flights were cancelled. We reported last night that China had confirmed 44 total new cases yesterday, with 11 of them imported, according to public health officials. That’s a total of 1,255 flights.

One official said Wednesday that Beijing cannot rule out the possibility that the number of cases in the city will stay at current levels for some time. Pang Xinghuo, a senior official for the Beijing disease control authority, says the epidemic is still growing in the city. On a lighter note, Chinese and Norwegian authorities have confirmed that Norwegian salmon was likely not the source of the novel coronavirus that was discovered on cutting boards in the Xinfadi market, the purported ‘epicenter’ of the Beijing outbreak, which has reportedly now spread to several surrounding provinces, while the city of Guangzhou struggles with an outbreak of its own.

More than 1,250 flights that were scheduled to depart from Beijing on Tuesday were cancelled, some 70% of the total scheduled flights, according to media reports.

Even more dire numbers were reported out of India on Wednesday, which registered 2,000 deaths in a day for the first time, a record-breaking total that took the Indian death toll to 11,903. Meanwhile, the number of confirmed infections surged over 354,000, as Mumbai and Delhi feel the brunt of the outbreak.

One analyst shared several charts illustrating how the latest outbreaks in China are “textbook” examples of a ‘second wave’ pattern.

Jim Bianco@biancoresearch

Textbook second wave https://twitter.com/biancoresearch/status/1272905512619737090 

View image on Twitter
Jim Bianco@biancoresearch

These headlines might be bothering markets in the last 30 minutes.

*BEIJING CITY OFFICIAL SAYS ADVISES PEOPLE NOT TO LEAVE BEIJING UNLESS NECESSARY – STATE MEDIA

*BEIJING TO SHUT ALL SCHOOLS

Globally, the outbreak has surpassed the 8.1 million case mark, while deaths neared 444,000, according to data compiled by Johns Hopkins University. The US has the most cases and deaths, followed by Brazil.


Finally, the WHO has welcomed news that dexamethasone, a cheap and widely available and steroid, has helped save the lives of people with severe COVID-19. 
 One rep described it as “great news.”

END

INDIA/CHINA

Modi breaks his silence but still anger persists in the country over the loss of 20 soldier lives.

(zerohedge)

Indian PM Narendra Modi Breaks Silence After Deadly Border Skirmish With China

Update (0640ET): In an announcement that should probably be taken with a grain of salt (considering that simply backing down would be politically unfeasible for Modi and his nationalist government), China’s Foreign Ministry says it has reached an agreement with India to stop any further border hostilities.

  • CHINA, INDIA AGREE TO RESOLVE BORDER CLASH IN A FAIR WAY, DE-ESCALATE AS SOON AS POSSIBLE -CHINA FOREIGN MINISTRY

China said earlier that it was in “close communication” with India via diplomatic and military channels, according to Foreign Ministry spokesman Zhao Lijian. Zhao reiterated that the situation between the two neighbors is “stable” and “controllable.” While Indian PM Modi has promised to pursue a diplomatic solution, he said that India can “reply suitably” if provoked by the Chinese.

* * *

After maintaining a disquieting silence for more than 24 hours, Indian PM Narendra Modi delivered his first statement since the deadly border clash between Indian and Chinese forces that left 20 Indian soldiers dead.

During a televised address to the nation, Modi insisted India wouldn’t allow the sacrifice made by its soldiers to be made in vain. India will protect its territory and integrity, before adding that India is “culturally a peaceful nation and has cooperated with neighboring countries: Modi wants to ensure the country that India’s integrity and sovereignty are top priorities for us, and nobody can stop India from protecting it.

India will protect the country’s land and its integrity, Modi promised, though a diplomatic solution will be sought to prevent further violence – though India reserves the right to retaliate if provoked.

Vincent Lee

@Rover829

Reuters: INDIA PM MODI, ON INDO-CHINA BORDER DISPUTE, SAYS WANT TO REASSURE THAT SACRIFICE OF OUR SOLDIERS WILL NOT GO IN VAIN

Vincent Lee

@Rover829

Reuters: INDIA PM MODI, ON INDO-CHINA BORDER DISPUTE, SAYS INDIA WANTS PEACE BUT CAN REPLY SUITABLY IF PROVOKED

The opposition Congress Party, led by Rahul Gandhi, the scion of the Nehru-Gandhi political family, has repeatedly slammed the prime minister over his silence, and posited it as part of a pattern of weakness shown during previous border spats (which seem to be happening more and more under Modi’s Hindu Nationalist government).

Congress

@INCIndia

PM Modi’s silence is an insult to every soldier that has laid down their life to protect our nation.

View image on Twitter

The party has demanded more answers from Modi, including a more complete explanation of what caused the skirmish.

ANI

@ANI

Today when there’s anger in the country regarding this incident then PM should come forward & tell the truth to the country that how did China occupy our land and why did our 20 soldiers lose their lives? What is the situation there today?: Congress Interim President Sonia Gandhi

View image on Twitter

A surge in patriotism followed Modi’s address, though even beforehand, the hashtag #westandwithindianarmy has gone viral in India.

Ajey Nagar

@CarryMinati

We’ll never forget their sacrifice to us & this country. My prayers go out to their families 🙏🙏

* * *

The meeting, which was apparently focused on the coronavirus outbreak, involved Modi and the chief ministers of 15 Indian states and territories, and featured a 2-minute moment of silence to honor the 20 Indian soldiers killed during yesterday’s border skirmish.

ANI

@ANI

Delhi: PM Narendra Modi, Union Home Minister Amit Shah and the chief ministers of 15 states and union territories, who are present in the meeting via video-conferencing today, observe two-minute silence as a tribute to the soldiers who lost their lives in clash.

View image on TwitterView image on TwitterView image on Twitter

Meanwhile, China’s state media reported early Wednesday about a People’s Liberation Army live-fire drill in Tibet as tensions with India escalated following a deadly clash on the disputed Himalayan border. It appears the exercises were held after the deadly clash.

Citing Chinese state media, the SCMP reported that the drill simulated removing the enemy’s fortified positions using a joint operation with a brigade (around 7,000 soldiers) of soldiers on the 4,700m-high plateau. The exercises involved tanks, artillery, missiles and electronic communications equipment.

The report followed the lethal battle in the Galwan Valley on Monday between Indian-controlled Ladakh and Chinese controlled Aksai Chin. Though, as we reported back in May, border tensions between the two nuclear-armed regional superpowers have been escalating in recent weeks, culminating in the skirmish.

END

 

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

Euro/USA 1.1233 DOWN .0031 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 107.40 UP 0.070 (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 1.2547   DOWN   0.0035  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3537 UP .0001 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  WEDNESDAY morning in Europe, the Euro FELL BY 31 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED UP 4.12 POINTS OR 0.14% 

 

//Hang Sang CLOSED UP 137.32 POINTS OR 0.56%

/AUSTRALIA CLOSED UP 0,84%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 137.32 POINTS OR 0.56%

 

 

/SHANGHAI CLOSED UP 4.12 POINTS OR 0.14%

 

Australia BOURSE CLOSED UP .84% 

 

 

Nikkei (Japan) CLOSED DOWN 126.45  POINTS OR 0.56%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1719.60

silver:$17.50-

Early WEDNESDAY morning USA 10 year bond yield: 0.76% !!! UP 0 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.55 UP 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 97.18 UP 22 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.54% UP 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: 0.54%//UP 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,42 UP 2 points in basis points yield from yesterday./

 

 

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

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.85% 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 WEDNESDAY

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

Euro/USA 1.1232  DOWN     .0033 or 33 basis points

USA/Japan: 107.23 DOWN .169 OR YEN UP 17  basis points/

Great Britain/USA 1.2543 DOWN .0039 POUND DOWN 39  BASIS POINTS)

Canadian dollar DOWN 19 basis points to 1.3556

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0851    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0754  (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 DOWN 1 IN basis points from TUESDAY at 0.75 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.54 DOWN 1 in basis points on the day

Your closing USA dollar index, 97.16 UP 20  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 WEDNESDAY: 12:00 PM

London: CLOSED UP 9.10  0.26%

German Dax :  CLOSED UP 66.48 POINTS OR .54%

 

Paris Cac CLOSED UP 43.51 POINTS 0.88%

Spain IBEX CLOSED DOWN 16.60 POINTS or 0.22%

Italian MIB: CLOSED UP 39.74 POINTS OR 0.20%

 

 

 

 

 

WTI Oil price; 38,18 12:00  PM  EST

Brent Oil: 40.77 12:00 EST

USA /RUSSIAN /   RUBLE FALLSS:    69.67  THE CROSS HIGHER BY 0.01 RUBLES/DOLLAR (RUBLE LOWER BY 1 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.43 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  37.74//

 

 

BRENT :  40.52

USA 10 YR BOND YIELD: … 0.73… down 2 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.533..down one basis point..

 

 

 

 

 

EURO/USA 1.1245 ( DOWN 22   BASIS POINTS)

USA/JAPANESE YEN:107.00 DOWN .393 (YEN UP 39 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.08 UP 12 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2554 DOWN 28  POINTS

 

the Turkish lira close: 6.8458

 

 

the Russian rouble 69.75   DOWN 0.09 Roubles against the uSA dollar.( DOWN 9 BASIS POINTS)

Canadian dollar:  1.3034 DOWN 28 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.43%

 

The Dow closed DOWN 170.37 POINTS OR 0.65%

 

NASDAQ closed UP 14.66 POINTS OR 0.15%

 


VOLATILITY INDEX:  33.47 CLOSED DOWN .20

LIBOR 3 MONTH DURATION: 2.302%//libor dropping like a stone

 

USA trading today in Graph Form

Bankrupt-Hertz Hit & Bolton-Book Headlines Hammer ‘Homegamers’, Bonds Bid

More concerns at home and abroad on a second-wave of the pandemic and mixed housing data (mortgage apps up, starts and permits disappoint) were not enough to shake the unwavering confidence that everything will be fine.

Nasdaq outperformed again (of course), Small Caps sank as Dow and S&P held the flat line for most of the day. However, markets came a little unglued around 1500ET on the Bolton book headlines… and then when the party ended in HTZ, it seems the market lost it’s momo-mojo…

Everything was awesome until the last hour:

  • 1455ET *BOLTON SAYS TRUMP ASKED CHINA’S XI FOR REELECTION HELP: NYT
  • 1514ET *HERTZ SUSPENDS PLANS TO SELL $500M SHARES ON SEC REVIEW
  • 1547ET *TRUMP SIGNS UIGHUR RIGHTS BILL IN REBUKE TO CHINA

 

The Dow was glued to its 50DMA…

 

Bank stocks sank today with WFC back in the red for the week…

Source: Bloomberg

Momentum and Value factors flip-flopped once again today…

Source: Bloomberg

The Virus ‘fear trade’ is back…

 

Source: Bloomberg

And while stocks were mixed, other markets were peculiarly flat until the last few minutes:

Treasury yields were very modestly lower… (20Y outperformed, down 4bps, after a strong auction)

Source: Bloomberg

The long-end outperformed… but the move was small

Source: Bloomberg

Corporate bonds fell for the second day…

Source: Bloomberg

The Dollar ended flat…

Source: Bloomberg

Bitcoin drifted lower on the day…

 

Source: Bloomberg

And gold was barely changed…

WTI crude prices ended lower on the day despite a spike on the smaller crude build…

Hurtz!

Finally, did bankrupt HTZ abandoning their worthless share offering trigger the end of the party?

 end

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Stocks Erase Overnight Gains, Tumble Into Red

Another overnight ramp effort evaporates as cash markets open…

 

Still plenty of time left to jawbone this thing back to the highs – vaccine, stimulus,

As a reminder, since the start of May, the S&P 500 has gained 208 points during the overnight session and just 4.5 points during the day session…

Trade accordingly.

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

they got this wrong:  They have now charge the Atlanta PD officer with murder as he shot Rayshard Brooks

(zerohedge)

Atlanta PD Officer Charged With Murder After Fatally Shooting Rayshard Brooks

The Atlanta PD officer who shot Rayshard Brooks in the back and killed him during a confrontation at a downtown Wendy’s,will be charged with murder, ABC News reports.

SkyNews

@SkyNews

Rayshard Brooks: Police officer who shot black man in back to face charges over death http://news.sky.com/story/rayshard-brooks-police-officer-who-shot-black-man-in-back-to-face-charges-over-death-12009144 

Rayshard Brooks: Police officer who shot black man in back to face charges over death

The police officer who shot Rayshard Brooks in the back is to be prosecuted over his death, a US prosecutor has said.

news.sky.com

The news that Fulton County DA is planning to charge Garrett Rolfe, the officer who shot Brooks (Rolfe has already been fired), was broken by ABC News. He will face a murder charge, along with 10 other charges.

Arrest warrants will be issued in connection with the death of Rayshard Brooks, a black man shot dead by an Atlanta police officer in a Wendy’s parking lot last week, prosecutors said Wednesday.

Fulton County District Attorney Paul Howard Jr. has not yet announced the charges, or who has been charged, at an ongoing news conference.

Garrett Rolfe, the officer who shot Brooks, has since been fired.

The second officer at the scene, Devin Brosnan, was placed on administrative leave. (Harvey: what on earth did he do wrong?)

Additionally, the second officer who responded to the call that led to the fatal shooting, and whose city-issued taser was stolen by Brooks before he was shot in the back by Rolfe, will face three charges, and is reportedly cooperating with the DA. That officer, Devin Brosnan, was placed on administrative leave, but hasn’t been terminated – pending an investigation.

Brosnan will face a charge of aggravated assault, which is interesting since the alleged “assault” occurred while Brooks was actively resisting arrest.

Rolfe’s attorneys are claiming that after the taser was stolen, Rolfe heard what sounded like a gunshot, then fired at Brooks as he allegedly feared for his life. But the notion that Rolfe shot Brooks in “the only body part he could see, his back”, presents a contradiction. How could he reasonably suspect that Brooks could have turned to fire at him while he was (as several of the videos suggest) sprinting full speed away from the officers? At this point, Brooks had already fired the taser once, and missed the two officers by a wide margin.

It will be interesting to see how the defense, which is being funded by the officers union, plays out.

On the other side, Justin Miller, an attorney for Brooks’ family, is arguing that the cops shouldn’t have brought weapons to that type of call, when someone is reporting an unconscious person sleeping in a car. (note: police bring guns to practically every stop, including routine traffic stops…at least in the US).

“Are they saying that he deserved to be shot because he fought back? Or he deserved to be shot because he was running away?” Miller told ABC News. “We don’t think it’s justified at all. Once someone is running away, he’s not a threat to the officers … there’s no justification for shooting somebody in the back.”

Of course, nobody can predict how a sleeping person will react.

Responding to the charges, Burke County Sheriff Alfonzo Williams argued, Rolfe’s actions were “completely justified.”

“We saw in the video that Brooks is engaged in a fight with the officers,” said Williams, whose county is about 160 miles east of Atlanta.

“Brooks is able to take a non-lethal weapon, a Taser, away from one of the officers, and he flees,” Williams said Tuesday. “Brooks turned back to the officers and fired the Taser.

The family lawyer also wants Brooks to be fired and to face more stringent charges.

The shooting late Friday night set off another wave of protests in Atlanta and led to the resignation of now-former Police Chief Erika Shields.

A press conference by the DA unveiling the charges is happening now. Watch below:

end

Trump sues Bolton to block the issuance of his book

(zerohedge)

Trump Admin Sues Bolton To Block Book Publication

Just as President Trump said would happen yesterday, the U.S. government has sued Trump’s former national security adviser John Bolton to block the publication of his so-called tell-all book which claims the president was willing to endanger the nation in order to be re-elected.

As we previously detailed, Bolton served under Trump as the U.S. national security adviser from April 2018 to September 2019.

His book, “The Room Where It Happened: A White House Memoir,” which was initially set to be published earlier this year, is currently scheduled to be released next Tuesday.

According to a news release from the book’s publisher, the book claims that  “Trump’s Ukraine-like transgressions existed across the full range of his foreign policy — and Bolton documents exactly what those were.”

In the epilogue of the memoir, Bolton reportedly alleges Trump’s actions towards his new book were, at times, “constitutionally impermissible” and that the president has tried multiple times to delay it from moving to print.

Last week, per the New York Times, the White House attempted to slow its publication, arguing the book contained classified information and could present a security threat.

“I will consider every conversation with me as president highly classified. So that would mean if he wrote a book and if the book gets out, he’s broken the law and I would think he would have criminal problems,” Trump continued threateningly.

And now, as Axios reports, the Justice Department filed a lawsuit in federal court on Tuesday seeking to block publication of the book on June 23, claiming that Bolton has failed to complete a pre-publication review for classified information.

The United States is not seeking to censor any legitimate aspect of Defendant’s manuscript; it merely seeks an order requiring Defendant to complete the prepublication review process and to take all steps necessary to ensure that only a manuscript that has been officially authorized through that process—and is thus free of classified information—is disseminated publicly.

Given that Defendant has already taken steps to disclose or publish the manuscript to unauthorized persons without prior written authorization, the United States also seeks an order establishing a constructive trust on any profits obtained from the disclosure or dissemination of The Room Where it Happened, particularly if Defendant refuses to complete the prepublication review process and obtain the required prior written authorization before proceeding with publishing the book.

– Justice Department

Bolton’s lawyer claims that his client has already undergone four months of prepublication review, and that the White House has purposely stalled the process as a “transparent attempt to use national security as a pretext to censor Mr. Bolton.”

END
A good commentary on the markets from Jim Rickards
(Jim Rickards)

“Stocks Only Go Up” & The Rise Of The Pezzonovante

Authored by Jim Rickards via The Daily Reckoning,

How crazy have markets become lately?

One new investor has said, “Stocks only go up,” while unemployed people are using their stimulus check to trade stocks:

“It was basically free money,” said one of them… “It’s like a gambling game.”

If you want to talk about craziness, just look at Hertz…

Fools Rush In

Hertz filed for bankruptcy on May 22. Then a bizarre thing happened. Some of those newbie investors who had just received their coronavirus stimulus checks opened online retail accounts at brokers like Robinhood and started buying Hertz!

The stock was sure to end up with zero value, but they didn’t care. If you bought it for $1.00 per share and could dump it for $3.00 per share, you tripled your money even if the stock ends up at zero.

That’s crazy enough, but then things got crazier.

Hertz saw its stock price going up and decided to sell $1 billion of stock in a new issue.

Investment bank Jefferies Co. agreed to underwrite the deal. The SEC signed off on the offering document.

Of course, in bankruptcy you have to get approval from the bankruptcy court. Many assumed the judge would put an end to the nonsense, but he didn’t. The judge approved the deal.

Just to be clear, if Hertz raises $1 billion, that money will go straight to creditors. Stockholders will still get zero. That’s why the judge approved the deal, because his job is to help the creditors.

This will be an expensive lesson in bankruptcy law for those who buy the equity, unless they sell to another sucker just in time.

I wish them all well.

Stocks Can Go Down After All

But the frenzied market rally of the past few weeks hit a snag last week. The Dow lost 5.5% on the week, while the S&P gave up 4.7%, making it the worst week since March 20.

I guess stocks go down after all.

The market was down big yesterday morning, extending last week’s losses, before rebounding yesterday afternoon on Fed headlines.

But it’s clear that investors are getting nervous about the resurgence in U.S. coronavirus infections, which places the prospects of a V-shaped recovery further in doubt (it wasn’t going to happen anyway).

The Good News

Well, we’ve all lived through the first wave of coronavirus infections (technically the SARS-CoV-2 virus and the COVID-19 disease).

Along with that came an unprecedented economic lockdown that has triggered a global depression.

Even during the Spanish flu pandemic of 1918–19 that killed 100 million people, there was no full-scale lockdown, although many large gatherings, sporting events and concerts were cancelled.

We’re just now starting to come out of our self-quarantines and small businesses are gradually reopening. That’s the good news.

The Bad News

The bad news is we’re hearing a lot about a so-called “second wave” of infections that could bring back another lockdown.

One professor of medicine at the Vanderbilt University School of Medicine has said, for example, “The second wave has begun.”

These concerns are causing market declines and volatility. But I don’t think many people really understand what a true second wave is.

There are new outbreaks of the disease, but these are still part of the first wave. We’re still experiencing the first wave, in other words.

Watch out for the Second Wave

The virus has a predictable pattern in a given locale. That generally means about an eight–10-week course with a peak after five weeks, then a gradual diminution.

But it does not hit every locale at the same time. What’s happening in Florida, Arizona, Texas and elsewhere today is just another version of what already hit New York. It’s just happening later in the timeline because of population density and different lockdown rules.

But again, it’s still the first wave. A true second wave happens after a period of relative calm. The virus mutates into a more lethal form and strikes again.

Those with antibodies from the first wave may do better, but others are highly susceptible to the second wave and the fatality rate can be much higher.

That’s what happened in the Spanish flu a century ago. The first wave was March–June 1918. It was fatal but tailed off quickly. The second wave hit in October 1918 and was much more fatal.

Bodies were piled up like firewood. They ran out of coffins. They ran out of grave diggers. They ran out of graveyards and dug mass graves, wrapped people in sheets and dusted them with disinfectant and threw them in. That’s how bad that was.

COVID-19 isn’t anywhere near as bad as the Spanish flu was. But if we get a second wave, it could be more lethal than the first. It is likely to strike in December 2020. Let’s pray it doesn’t happen, but it’s too soon to rule it out.

The Rise of the Pezzonovante

What we can count on is that power-hungry politicians and bureaucrats will continue to throw their weight around…

Pezzonovante is a colorful Sicilian term famously used in the script for The Godfather. It basically means “big shot” or “self-important.”

It’s used in a derogatory sense to describe politicians who think they’re better than everybody else. One of the unpleasant side effects of the coronavirus lockdown is the rise of a new pezzonovante class among U.S. politicians.

The problem is that every elected official has an inner dictator who can’t wait to start bossing people around with arbitrary executive orders and no due process of law. That’s what’s been happening since the lockdowns began.

State governors were issuing “lockdown” orders, arresting people without face masks and revoking business and liquor licenses from small-business owners trying to earn a living, all without legal authority.

When these neofascist tactics are challenged in court, the state often loses. But not every small-business person can afford the legal fees to bring suit.

The lockdown did slow the spread of the virus and did save some lives, that’s true. But, the gains may only be temporary.

Remember, “flattening the curve” does not mean reducing total infections and deaths. It just means stretching them out over a longer period so the hospital system is not overwhelmed.

Let’s look at one pezzonovante…

An Offer You Can’t Refuse

New York Gov. Andrew Cuomo was responsible for 5,000 unnecessary deaths because he ordered COVID-19 patients to be forced into assisted living facilities where residents got ill and died as a result.

Now he’s threatening to reimpose a lockdown on New York beach resorts and Manhattan if people don’t follow his version of “social distancing” and face mask etiquette.

(Never mind that the science of face masks is not at all clear; many experts take the view that they don’t work and can do more harm than good except for medical personnel who face constant exposure.)

The point is that transparency and good communication with the public combined with voluntary compliance can get the job done. Orders and threats don’t help and prompt many people to do the opposite.

Leaders like Andrew Cuomo will just delay the economic recovery without doing anything to slow the spread of the virus. This is just one example of the new pezzonovante throwing their weight around without concern for the public good.

The “inner dictators” are on the loose and economic recovery will suffer as a result.

Unfortunately, they’re not going away.

 END
Schumer slams the GOP police reform plan as “weak tea” and McConnell says that the Democrats bill is “going nowhere”
There is little chance that there will be a compromise here..
(zerohedge)

Schumer Slams “Weak Tea” GOP Police Reform Plan, McConnell Says Dem Bill Is “Going Nowhere”

Just hours after President Trump kicked off the federal police reform effort by signing an executive order implementing many of the common-ground reform proposals found in the separate plans developed by House Democrats  and Senate Republicans, Dems are already insisting that the Republican plan “doesn’t go far enough.”

So, rather than accepting a package of mutually agreeable reforms, Democrats are doubling down. The ink was barely dry on Trump’s EO when Democratic leader Chuck Schumer insisted that the Republican plan was too “narrow”, and not “inclusive” enough, according to CNN.

Senate Democratic leader Chuck Schumer warned on Tuesday that Senate Republicans “seem to be on a path towards taking a much, much narrower, less inclusive approach – that is wrong.”

A few minutes later, he confessed to reporters that he actually hadn’t read the Republican bill – apparently no Democrats have.

Schumer refused to say Tuesday if Democrats would seek to block the Scott plan from coming to the floor for a debate, saying “we haven’t even seen the bill yet, so it’s premature to comment,” while also declining say if he’s encouraging Democrats to avoid co-sponsoring the plan. Schumer, meanwhile, criticized President Donald Trump’s executive order on policing, calling it “weak tea.”

As we reported a few days back, there is broad consensus between the GOP and Democrats as more GOP lawmakers have expressed openness to make more substantial changes when it comes to rooting out officers with multiple complaints, while making it easier for the public to hold officers accountable.

Even Reuters acknowledged, citing the latest polling data, that many of the proposals found in the Democratic bill – including banning chokeholds (Trump’s EO effectively bribes PDs to bar the technique with federal money) and an explicit ban on racial profiling – are broadly popular among Democrats and Republicans. However, a few paragraphs later, the reporter notes that 39% of Americans supported proposals  to completely defund the police (still an astonishingly high number). To be sure, both Democratic nominee Joe Biden and Trump oppose complete defunding, which until very recently was an idea on the fringes of leftist politics. However, 76% of respondents said they supported moving some funding toward other social services for mental health and the homeless, as well as more training for officers. The GOP hasn’t released a full text of its bill, but moving funding was part of an abbreviated list of proposals from Senator Tim Scott, who is leading the effort to craft the bill.

Democrats released their bill last week. The 134-page tome goes further than Scott’s proposals on the issue in at least one important way: completely eliminating qualified immunity, something that Democrats have demanded, and many Republicans, including Scott and others quoted here would support completely eliminating the immunity and make police liable in incidents of police brutality.

Senate Majority Leader Mitch McConnell said Tuesday that the House Democrats’ bill would be a non-starter in the Senate, and he vowed to not even bring it up for a vote.

“The House version is going nowhere in the Senate,” McConnell told reporters. “It’s basically typical Democratic overreach to try to control everything in Washington. We have no interest in that,” he said.

Even McConnell has suggested that, once it’s released, the Republican plan might surprise some Democrats in the depth of its proposed reforms. Though lawmakers have told the press that they anticipate winning over the president, who is doubling down on his “law and order” image in a way that critics have warned is out of step with public opinion, could lead to obstacles.

The Republicans need 7 Democratic votes to block a filibuster and bring the plan to a vote (which would then presumably pass in a majority vote). With that, the GOP’s strategy comes into focus: McConnell is going to release a plan calling for substantial – but not radical – reform. Then moderates will face political pressure to put their dedication to reform above their political interests.

END
It sure looks like millions of jobs lost from the COVID 19 will not come back
(zerohedge)

Millions Of Jobs Lost From COVID-19 Are Never Coming Back

As the world makes its way through the coronavirus pandemic together, questions are starting to surface about what the post-coronavirus global economy is going to look like.

Among those questions is an obvious one: how many jobs that were lost due to the virus are going to remain permanently lost and, conversely, how many people will recover the jobs they once had?

The answer looks grim. While there is hope that global financial stimulus could help people head back to work once the pandemic runs its course, there is a very real chance of “lasting damage” in many sectors, according to Bloomberg.

Fed chair Jerome Powell predicted last week that there will be “well into the millions of people who don’t get to go back to their old job.” He continued: “In fact, there may not be a job in that industry for them for some time.”

Bloomberg has predicted that 30% of U.S. job losses between February and May were a result of reallocation shock. It suggests a swift labor market recovery, but one that will ultimately level off and leave millions unemployed.

Among those most at risk are jobs in hospitality, retail, leisure, education and health. Brick and mortar retailers are also even further in the crosshairs of online retailers than they were prior to the pandemic. Hilariously, however, Bloomberg economists say the “markets are already pricing in the risk”.

 

“50% of U.S. job losses come from the combination of lockdown and weak demand, 30% from the reallocation shock, and 20% from high unemployment benefits,” Bloomberg found.

A report by the Becker Friedman Institute at the University of Chicago estimated 42% of layoffs that occurred as a result of the pandemic will be permanent. \

Nicholas Bloom, professor of economics at Stanford University who worked on the study said: “There’s a massive reallocation shock. The recession hits different sectors differently. Some benefit and some fall.”

 

Similarly, The Peterson Institute for International Economics said last week that the shock of the virus may necessitate even further government intervention, including wage subsidies. The Organization for Economic Cooperation and Development said last week that those laid off should be afforded government job training, in order to help a shift in industries, if necessary.

Sharan Burrow, General Secretary of the International Trade Union Confederation, concluded: “The pandemic has exposed the fault lines that already existed for working people and the economy. The ‘new normal’ requires a new social contract between governments and their citizens with the backing of the international community.”

 

END

It is about time;  The DOJ is now finally going after Google for antitrust after Google attacks the Federalist and zero hedge. They are going to strip their “liability shields”

(zerohedge)

DOJ Goes After Google’s Comment Section: Trump Admin To Propose Section 230 Rollback

The DoJ just escalated its burgeoning feud with Silicon Valley by introducing a new legislative plan meant to make certain changes proposed in a Trump executive order signed late last month permanent –including a measure to strip tech giants of “liability shields” for activity and speech that happens on their platforms.

In effect, the DoJ proposal would rollback protections centered in Section 230 of the Communications Decency Act of 1996, something that’s gaining bipartisan support (albeit for vastly different reasons).

The proposal calls for the rolling back of legal protections that online platforms have enjoyed for more than 20 years to try and make tech companies more responsible in how they police their content, CNET reports. The proposed reforms, to be announced later on Wednesday, are designed to require social media platforms like Twitter, Facebook or YouTube (owned by Google parent Alphabet) to be more active in policing sites for illicit or harmful content, while also requiring them to be more consistent in decisions to remove content they find objectionable.

If adopted by Congress and passed, the bill would effectively make some of the changes outlined in an executive order signed by Trump late last month the law of the land: It would rollback protections for these digital ‘platforms’ that engage in active political censorship of users on said platforms.Because of this, it represents a serious escalation of the Trump Administration’s fight against Big Tech, which President Trump has long criticized for discriminating against conservatives and their ideas.

The new framework might gain more traction on capital hill, particularly after the events of yesterday, when a journalist-activist employed by NBC News published a story claiming that the “far-right” websites Zero Hedge and the Federalist (two sites that have both been described as about as conservative as the Drudge Report) were recently demonetized by Google. Shortly after, Google clarified that it was working with the two publishers to rein in hate speech in comment sections.

As we discussed earlier in regards to Twitter, Google seems to be making the case for not only pushing forward with anti-trust inquiries but stripping it and other companies of immunity protections. Indeed, the Justice Department just announced that it is moving forward with proposals to strip away protections.  Google and other companies were given protections under Section 320 because it has claimed to being a neutral supplier of virtual space for people to speak with one another.  It is now effectively shutting down sites because they allow others to comment freely on their sites.  This biased targeting of sites has led to congressional objections and renewed threats to amend the federal law.  Indeed, Google is undermining the support with some of us who viewed protections are fostering free speech values.  It is now using its role to stifle and regulate speech, the very antithesis of not just free speech but the federal protections.

The White House has made it abundantly clear that it won’t tolerate social media platforms continuing to censor and de-monetize conservative speech while ignoring similar behavior by radical leftists. If these platforms want to continue to ‘curate’ the information and speech found therein, then they should be treated more like a publisher than a platform.

GOP Senators Balk At Trump’s $1 Trillion Infrastructure Bill

Senate Republicans are pushing back against President Trump’s $1 trillion infrastructure spending push, warning that it’s too “rich” and would be a “heavy lift” for Congress, according to The Hill.

Senate Majority Leader Mitch McConnell has been warning over a surging federal deficit – insisting that the top priority should be the reauthorization of a $287 billion Highway Trust Fund instead of passing another expensive coronavirus relief bill.

Trump’s plan would set aside money for roads, bridges, rural broadband and 5G wireless. Of note, McConnell’s wife, Elaine Chao, is Trump’s Transportation secretary.

Meanwhile, House Democratic leaders say they’ll approve a $500 billion surface transportation bill, of which Senate Finance Committee Chairman Chuck Grassley (R-IA) says his panel will need to find a way to pay for $93 billion.

Asked about a news report that Trump is getting ready to unveil a new $1 trillion infrastructure spending proposal, Grassley said whatever bill Senate Republicans come up with “could be a lot less.

At the very least, the Senate GOP plan “won’t be over that,” he added.

If the House and Senate are able to pass their respective surface transportation bills, the final measure — and the ways to pay for it — would be ironed out in conference. –The Hill

Trump’s $1 trillion plan, meanwhile, would be a “heavy lift” according to Sen. Pat Toomey (R-PA), a member of the Finance Committee.

Given the difficulty of coming up with ways to pay for a $287 billion highway bill, a $1 trillion infrastructure initiative would likely add significantly to the federal deficit, which the Congressional Budget Office projects will reach $3.7 trillion in 2020.

A $1 trillion plan from the administration would double the $500 billion green infrastructure bill that House Democrats rolled out earlier this month. –The Hill

Mike Enzi (R-WY) – Chairman of the Senate Budget Committee who also sits on the Finance Panel, says that the priority should be directly addressing the coronavirus pandemic – noting that a large portion of the $2.2 trillion CARES act, along with $484 billion in interim coronavirus relief legislation which passed in April, has yet to be tapped.

“For the last few days I’ve been talking about not paying for the national parks’ infrastructure. A trillion is a lot more than the $17 billion we’re talking about there,” said Enzi, referring to the pending Great American Outdoors Act.

Nothing we’re doing right now is fiscally responsible,” he said, adding “I’m much more inclined to stick to solving the virus problem.”

In late April, McConnell began pushing back against the idea of tacking an infrastructure component onto the next round of coronavirus relief legislation – telling Fox News at the time: “Infrastructure is unrelated to the coronavirus pandemic that we’re all experiencing and trying to figure out how to go forward,” adding “We need to make sure that whatever additional legislation we do is directly related to this pandemic.”

Trump’s $1 trillion election-year infrastructure package was first reported by Bloomberg, which ‘largely caught GOP Senators by surprise,’ according to The Hill.

When Trump tweeted in late March that he wanted a “VERY BIG & BOLD” infrastructure package costing $2 trillion, Republican senators mostly ignored the request.

Sen. John Cornyn (R-Texas), another member of the Finance panel, said the administration is going about it backward by coming up with a $1 trillion price tag before laying out what it would be spent on.

You don’t start with the price tag. You start with what it is you want to accomplish and figure out what that is. Seems to me to be the opposite way to approach this by starting it with how much money you’re willing to spend,” he said.

Sen. Rob Portman (R-Ohio), also a Finance Committee member, said “the trillion dollars may be a little rich.

But Portman said there are potential areas of common ground.

“I think there are areas where we can do something. Rural broadband is very popular among many of my colleagues,” he said. –The Hill

According to Rob Portman, there are ongoing disagreements over how to bankroll the Highway Trust Fund reauthorization, which was on the Senate’s schedule before the COVID-19 pandemic after the Environment and Public Works Committee approved the bill in July.

END
Unbelievable: Pepsi retires Aunt Jemima brand of pancake mix
(zerohedge)

Pepsi Retires Aunt Jemima Brand Due To “Racist Past”

Aunt Jemima survived 130 years: the Great Depression, two World Wars, the Civil Rights movement, Vietnam and 9/11. But the brand has finally been cast aside by Quaker Oats – which is owned by Pepsi – due to its “racist past” at the hands of today’s relentless cancel culture.

PepisCo’s packaged-foods unit said Wednesday it would remove imagery of the black woman from the Aunt Jemima brand’s pancake mixes, syrups and other products, and change its name. The company didn’t disclose the new name, but said packaging changes will appear throughout the fourth quarter.

The company told CNN: “As we work to make progress toward racial equality through several initiatives, we also must take a hard look at our portfolio of brands and ensure they reflect our values and meet our consumers’ expectations.”

The appearance of Aunt Jemima has changed over the years, the article notes. Its name is “based off the song ‘Old Aunt Jemima’ from a minstrel show performer and reportedly sung by slaves,” according to CNN. The logo was based on Nancy Green, who was a cook and missionary worker that NBC later disclosed had been born into slavery.

“We recognize Aunt Jemima’s origins are based on a racial stereotype. While work has been done over the years to update the brand in a manner intended to be appropriate and respectful, we realize those changes are not enough,” said Kristin Kroepfl, chief marketing officer at PepsiCo’s Quaker Foods North America business. The unit also sells Quaker Oats and Rice-A-Roni.

Despite its iconic history, there have been recurring calls to change the logo for years, with Cornell University professor Riché Richardson one of the latest voices to speak out against it in 2015. He called the logo “very much linked to Southern racism.”

He also said the logo was based on a “devoted and submissive servant who eagerly nurtured the children of her white master and mistress while neglecting her own.” In 2017, the husband of B. Smith called the logo the epitome of “female humiliation.”

But today the brand is just described by the company as standing for “warmth, nourishment and trust — qualities you’ll find in loving moms from diverse backgrounds who want the very best for their families.”

Gladys Knight was even a spokesperson for the brand in the 1990s, during such time the logo evolved. But that apparently is woefully insufficient in this day and age. Quaker Oats said: “While work has been done over the years to update the brand in a manner intended to be appropriate and respectful, we realize those changes are not enough.”

So it’s best to simply deleted over a century of history and pretend it never existed.

As one user on social media pointed out, the lag time from satire to reality has sadly now become just 5 days.

David Burge@iowahawkblog

Lag time from Onion to reality reduced to 5 days

View image on TwitterView image on Twitter
end

BREAKING NEWS: ONE OF UNITED STATES LARGEST SHOPPING MALLS, THE MALL OF AMERICA MISSED ANOTHER PAYMENT ON A $1.4 BILLION MORTGAGE, PUTTING THE BORROWER MORE THAN 60 DAYS DELINQUENT… Watch this story closely in the next few weeks

***

iv) Swamp commentaries)

Flynn Lawyer Files Stunning Motion Against Judge Gleeson: “It’s A Wrap-Up Smear”

Authored by Sara Carter via SaraACarter.com,

Sidney Powell, the defense attorney for Lt. Gen. Michael Flynn, filed a scathing response in the court Wednesday against federal Judge John Gleeson’s amicus brief, which asked the court to reject the Justice Department’s request to drop all charges against Flynn. Powell’s motion is powerful and contains a lengthy time-line revealing the stunning evidence discovered by DOJ Inspector General Michael Horowitz, as well as, the litany of new evidence uncovered by U.S. Attorney Jeffery Jensen, who was appointed by the Justice Department to conduct an independent review of Flynn’s case.

Powell argues in her brief that the “irony and sheer duplicity” of Gleeson’s accusations “against the Justice Department now—which is finally exposing the truth – is stunning.”

Gleeson submitted his lengthy brief on July 10, on behalf of D.C. Federal Court Judge Emmet G. Sullivan, who appointed him as the amicus and is refusing to drop the case against Flynn. He is doing all this despite the fact that both the Justice Department and defense agree the charges should be dropped against President Donald Trump’s former National Security Advisor.

Powell also pointed out in her motion of opposition Wednesday that Gleeson’s amicus filing on behalf of Sullivan is a “wrap-up smear” against Flynn.

“It demonstrates the difference between a Department of Prosecutions and a Department of Justice,” Powell argues in her conclusion regarding Gleeson’s amicus. “It shows how the Department of Justice, as the government’s representative in every federal criminal case, has the power to walk into courtrooms and ask judges to remedy injustices. For these reasons and those stated in our other briefs, the only lawful action this court can take is to dismiss the case with prejudice on the Government’s motion and vacate the plea.”

Further Powell states in her motion, that Gleeson’s “Amicus elides the reality of the egregious government misconduct of the FBI Agents—particularly that of [former FBI Director James] Comey, {Former FBI Deputy Director Andrew] McCabe, [former Special Agent Peter] Strzok, [Former FBI Attorney Lisa] Page, [FBI Special Agent] Joe Pientka, [former FBI Assistant of Counterintelligence Bill] Priestap and others who met repeatedly to pursue the targeted “take-out” of General Flynn for their political reasons and those of the “entirety lame duck usic.” Much of this has been revealed in the December 19, 2019, IG Report, the 86 pages of newly produced exonerating material produced by U.S. Attorney Jensen, filed in the Government’s Motion to Dismiss (ECF No. 198), and hundreds of the texts between Strzok and Page demonstrating abject bias.”

“Amicus is lost down the rabbit hole on the other side of the looking glass— where “nothing would be what it is, because everything would be what it isn’t. And contrary wise, what is, it wouldn’t be. And what it wouldn’t be, it would,” argues Powell.

Last week, Powell argued before the U.S. District Court of Appeals D.C. Circuit against Sullivan’s decision to appoint Gleeson. She noted that the government submitted an extensive and thoroughly documented motion to dismiss this prosecution based on the discovery of “extraordinary exculpatory evidence that came to light from an independent review… It can not go on any longer.”

Powell referred to Jensen, who was personally appointed by Attorney General William Barr, when evidence of FBI malfeasance surfaced in Flynn’s case. Jensen discovered through his investigation exculpatory evidence revealing that senior FBI and Justice Department officials withheld significant information from Flynn’s defense that would have played a crucial role in his case. One piece of evidence, was a January 4, FBI memo that stated that the investigation into Flynn should be dropped because no derogatory information had been found on the three star general. That memo was issued a day before a meeting with President Obama at the White House, along with other senior officials from the administration about Flynn. Shortly after, former Special Agent Peter Strzok, who led the probe against the Trump campaign, decided not to drop the investigation against Flynn. Strzok, along with FBI Special Agent Joe Pientka (which is discussed in detail further in this article), were sent to the White House on January 24, 2017 to conduct the infamous ‘perjury trap’ interview with Flynn.

In fact, Comey has previously joked that they sprung the interview on Flynn, who had no counsel present, and was set up by the FBI, despite the fact that the agents who interviewed him did not believe he was lying to them during the interview.

THIS COURT EXUVIATED ANY APPEARANCE OF NEUTRALITY WHEN IT UNLAWFULLY APPOINTED AMICUS AS ITS OWN ADVERSARY TO MAKE THESE SPECIOUS ARGUMENTS, SIDNEY POWELL

Gleeson’s amicus against Flynn “is an affront to the Rule of Law and a raging insult to the citizens of this country who see the abject corruption in this political assassination by prosecution. This court exuviated any appearance of neutrality when it unlawfully appointed Amicus as its own adversary to make these specious arguments,” Powell argued in her filing.

Last week, Gleeson submitted his lengthy amicus on behalf Sullivan, saying the Justice Departments decision to drop the charges against Flynn is a “gross abuse of prosecutorial power” and urged a court to reject its attempt to drop the criminal case in his 73-page brief.

Recently SaraACarter.com reported on Gleeson’s connections to former Special Counsel prosecutor Andrew Weissmann, who was the top prosecutor for Robert Mueller in targeting Flynn and other Trump officials.

Gleeson’s past connections to Weissmann have been a topic of scrutiny, as I previously reported.

Gleeson argued that Flynn pleaded guilty to lying to the FBI during a 2017 interview and that there is no real recourse for change – in fact, he stated in his argument that the court should also factor into its sentencing Flynn his withdrawal of that guilty plea, saying to withdraw is perjury.

“It really is truly unbelievable,” said David Schoen, a civil rights and defense attorney.

“I’m going to say to you that John Gleeson is one of the last people whoever should have been put in this position. If we’re concerned about the integrity of the system, John Gleeson goes back side by side colleagues for many years, with none other than Andrew Weissmann.”

In fact, Schoen said based on the relationship with Weissmann, Gleeson has a major conflict of interest and would almost likely argue on behalf of his former colleague. Schoen, who has represented the Democratic Party in the past, said there is significant evidence that has been discovered that exonerates Flynn and exposes the FBI’s malfeasance.

The timeline established in Powell’s motion is truly powerful and reveals that evidence.

Powell also argues Flynn never withheld any information from the United States government and always briefed the Defense Intelligence Agency of any travels or foreign contacts. Flynn previously served as director of the Defense Intelligence Agency under President Obama.

“Moreover, in evidence still withheld are General Flynn’s briefings to the DIA on all foreign contacts,” she stated in her motion.

“In addition, it is only the Government’s alleged false statements that were false. Flynn Intel Group did nothing in secret. Former CIA Director James Woolsey and former FBI executive Brian McCauley were at the only meeting that involved a “Turkish official.” General Flynn fully briefed DIA on that meeting, and on advice of counsel, Flynn Intel Group had timely filed a Lobbying Disclosure Act form. Multiple lawyers and firms deemed no FARA registration was required at all.”

But the timeline is stunning and for those who have been following the case of Flynn closely since I began reporting on it more than four years ago it exposes the actions of former FBI Director James Comey’s team in targeting Flynn and the Trump campaign.

[On December 15, 2019, the Government produced 637 pages of long- promised FD-302s and handwritten notes of the FBI Agents. These included 113 pages of 16 FD-302s; 206 pages of FBI handwritten notes.]

Below is Part of Powell’s Detailed Timeline And What Transpired:

  • August 15, 2016: Strzok and Page text about the “insurance policy” they discussed in McCabe’s office.
  • August 16, 2016: FBI opens the case against Flynn. IG Report at 2.
  • August 17, 2016: The first interview of General Flynn was conducted surreptitiously by slipping (Special) Agent (Joe) Pientka into a presidential briefing to nominee Trump and General Flynn. IG Report at 340-341. This was unprecedented and a clear policy was added to prevent its reoccurrence.
  • FBI Special Agent Joe Pientka’s stated purpose of this interview was “to provide the recipients ‘a baseline on the presence and threat posed by foreign intelligence services to the National Security of the U.S.” IG Report at xviii. In actuality, the Trump campaign was never given any defensive briefing about the alleged national security threats. IG Report at 55.
  • “the FBI viewed that briefing as a possible opportunity to collect information potentially relevant to the Crossfire Hurricane and Flynn investigations.” IG Report at 340.
  • “One of the reasons for [Pientka’s] selection was that ODNI had informed the FBI” that Flynn would be one of the three in attendance on behalf of the Trump campaign. IG Report at 341.
  • Pientka told the IG: “[T]he briefing provided him ‘the opportunity to gain assessment and possibly have some level of familiarity with [Flynn]. So, should we get to the point where we need to do a subject interview…I would have that to fall back on.’” IG Report at 341.
  • Agent Pientka said that his “assessment” meant: “[Flynn’s] ‘overall mannerisms. That overall mannerisms and then also if there was anything specific to Russia, or anything specific to our investigation, That was mentioned by him, or quite frankly we had an . . . investigation, right. And any of the other two individuals in the room, if they, any kind of admission, or overhear, whatever it was there to record that.
  • Agent Pientka was the Supervisor of Crossfire Hurricane. IG Report at 305.
  • Agent Pientka helped pick the team of investigators for General Flynn. IG Report at 65.
  • The agents interviewing General Flynn reported to Agent Pientka, and then Agent Pientka reported operational activities to Strzok. IG Report at 65.
  • Bruce Ohr provided information collected by Christopher Steele, through his contract with Fusion GPS, to the FBI “out of the blue.” IG Report at 99. Agent Pientka reviewed this information. IG Report at 100.
  • Agent Pientka was responsible for making sure the FISA applications were verified by providing a “factual accuracy review,” IG Report at 151, yet he included false and incomplete information for the court, and he failed to inform the court of significant exculpatory information.
  • Agent Pientka even “speculated” that Steele’s information was corroborated—when it was not—and he was responsible for numerous “inaccuracies,” “omissions,” and “unsupported statements” in the FISA applications. See generally IG Report at Chs. 5, 9.
  • One of the FBI lawyers falsified a document in support of one of the FISA applications. IG Report at 160.
  • Agent Pientka supervised Case Agent 1 (IG Report at 81) and withheld exculpatory information from the court that was material to determining warrants. IG Report at 232- 233.
  • Unverified information from Source 2 (Halper) was used to obtain FISA warrants to wiretap Carter Page, and thus reach General Flynn. IG Report at 313-33. Halper was closed by the FBI in 2011 but reopened by Case Agent 1. Case Agent 1 reported to Agent Pientka during Crossfire Hurricane.
  • “Agent Pientka told the OIG that he did not know about Source 2, or know that Case Agent 1 was Source 2’s handler, prior to Case Agent 1 proposing the meeting [on August 11, 2016], which Agent Pientka approved.” IG Report at 313.
  • There was “no supporting documentation” to support that “Source 2 has routinely provided reliable information that has been corroborated by the FBI.” IG Report at 418.
  • Despite the lack of information, this was relied upon in the first FISA application, and the Steele dossier which included two references to General Flynn.
  • “…during the presidential election campaign, the FBI was invited by ODNI to provide a baseline counterintelligence and security briefing (security briefing) as part of ODNI’s strategic intelligence briefing given to members of both the Trump campaign and the Clinton campaign… We also learned that, because Flynn was expected to attend the first such briefing for members of the Trump campaign on August 17, 2016, the FBI viewed that briefing as a possible opportunity to collect information potentially relevant to the Crossfire Hurricane and Flynn investigations. We found no evidence that the FBI consulted with the Department leadership or ODNI officials about this plan.” IG Report at 340.
  • Strzok was primarily responsible for preparing Agent Pientka and “providing him with instruction on how to handle the FBI’s portion of the ODNI strategic intelligence briefings, but others also assisted, including the Intel Section Chief and possibly Lisa Page.” Id. at 342. “[H]e and Strzok created the briefing outline together, and he prepared himself through mock briefings attended by Strzok, Lisa Page, the Intel Section Chief, and possibly the OGC Unit Chief.” IG Report at 340.
  • Inspector General found “members of the Crossfire Hurricane team repeatedly failed to provide OI [Office of Intelligence] with all relevant information.” IG Report at 362.

 

end

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

A historic increase in US retail sales for May propelled ESUs and stocks higher on Tuesday.

ESUs, which had rallied sharply during early Asian trading, lost more than half its 54 point gain by the end of the 1st hour of Euro trading (4:00 ET).  BoJ Governor Kuroda did a Powell on Japan’s economy.

Kuroda Speech Highlights [Commenced at 2:30 ET on Tuesday]

  • Believes Japan’s economy will recover but uncertainties are very high for the economy.
  • Japan’s economy is in an extremely severe situation
  • The BoJ won’t hesitate to do more easing
  • Corporate financing is under major stress
  • Increase by participants enlarged the lending program
  • Bank lending is rising at a very fast pace
  • If virus wanes this year, the economy should recover
  • BoJ may buy more bonds to keep rates low
  • Probably a long way from raising rates whether FY21, FY22
  • Fiscal policy is decided by parliament and the government

BOJ’s Kuroda warns of protracted battle with pandemic, keeps policy steady

https://www.reuters.com/article/us-japan-economy-boj/bank-of-japan-keeps-policy-steady-eyes-recovery-from-pandemic-idUSKBN23N0D

Well that is all for today

Fed Chair Powell warns of ‘significant uncertainty’ about the recovery and says small business is at risk https://t.co/M0qjPkibQS

Fed’s Powell stresses full US economic recovery hinges on virus control

Powell said a full recovery is ‘unlikely’ until the coronavirus is better controlled

https://www.foxbusiness.com/economy/feds-powell-stresses-full-us-economic-recovery-hinges-on-virus-control

Trump administration wants to replace $600 unemployment benefit with back-to-work bonus

Those payments are scheduled to end after July 31, which may lead to a sharp decrease in cash flow for the roughly 30 million people currently receiving the benefit…[and it’s an election year!]

https://www.msn.com/en-us/money/markets/trump-administration-wants-to-replace-dollar600-unemployment-benefit-with-back-to-work-bonus/ar-BB15vW0B

30% of Americans missed their housing payments in June [April 24%, May 31%]

https://www.cnbc.com/2020/06/16/30percent-of-americans-missed-their-housing-payments-in-june.html

There are always doom & gloom articles; but in recent months, with some justification, the stories have proliferated.  The missives that catch our eye are stories that jibe with hard data or what we are hearing from credible professionals.  We wrote a few weeks ago, that banking sources told us that the 90 forbearances that commenced in April will become problematic for lenders in July.

A former Morgan Stanley structured products jockey opines in The Atlantic that CLOs are now bigger than the CDOs that imperiled the financial system in 2008 – and banks are using “variable interest entities” to “stash… off-the-books positions”.  “Wells Fargo has more than $1 trillion of VIE assets.”

The Looming Bank Collapse

The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

    In December, the Financial Stability Board estimated that, for the 30 “global systemically important banks,” the average exposure to leveraged loans and CLOs was roughly 60 percent of capital on hand…

    CLOs are made up of loans to businesses that are already in trouble… They are also emblematic of other complex and artificial products that banks have stashed on—and off—their balance sheets…The big banks use similar structures, called “variable interest entities”—companies established largely to hold off-the-books positions. Wells Fargo has more than $1 trillion of VIE assets, about which we currently know very little, because reporting requirements are opaque…

    In calculating the risks of reopening the economy, we must understand the true costs of remaining closed. At some point, they will become more than the country can bear.

https://www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/

 

20 Indian soldiers dead after clash with Chinese troops high in the Himalayas, Indian army says

https://www.washingtonpost.com/world/asia_pacific/three-indian-soldiers-killed-in-rare-clash-on-china-india-border/2020/06/16/13c11c46-afa5-11ea-98b5-279a6479a1e4_story.html

North Korea blows up South Korea liaison office: Seoul

https://www.foxnews.com/world/after-days-of-threats-north-korea-destroys-inter-korea-liaison-office-report

Trump signs executive order on police reform, bans chokeholds, highlights necessity of police forces

https://justthenews.com/government/white-house/potus-signs-executive-order-police-reform-bans-chokeholds-highlights

Black activist/CNN’s Van Jones: “The Executive Order is a step in the right direction.”

Progressives warn Biden to change policing platform or lose black support https://trib.al/10v05Ok

Google bans two websites from its ad platform over protest articles – The two sites, ZeroHedge and The Federalist, will no longer be able to generate revenue from any advertisements served by Google Ads. [For “unsubstantiated claims about the Black Lives Matter protests…”]

https://www.nbcnews.com/tech/tech-news/google-bans-two-websites-its-ad-platform-over-protest-articles-n1231176

@Google_Comms: The Federalist was never demonetized. [Then NBC issued fake news.]

@Gingrich_of_PA: African-American employees total 3% of Google. 3%. #GoogleHypocrisy

Liberals “Cancel” Domino’s Pizza Over 8-Year-Old Tweet to Kayleigh McEnany – a generic tweet that Domino’s had sent to Kayleigh McEnany thanking her for a compliment in 2012, when she was a 24-year-old college student…  https://bongino.com/liberals-cancel-dominos-pizza-over-8-year-old-tweet-to-kayleigh-mcenany/

 

@dominos Replying to [NeverTrumper] @TheRickWilson: Welp. It’s unfortunate that thanking a customer for a compliment back in 2012 would be viewed as political. Guess that’s 2020 for ya.

Daily Caller’s @greg_price11: Drew Brees is on his tenth apology by now for not disavowing his country and Mike Gundy could possibly be fired for wearing an OAN shirt. We live in an ugly world where dissenting opinions from the cultural elites will destroy your career.

 

St. Louis removes Columbus statue, latest monument after racial protests   https://reut.rs/3easwtx

 

@BrittPettibone: Speak out and you risk losing your job and your reputation. Stay silent and you risk losing your country.

Republicans are rightly under fire for their collective cowardice and silence during the current reign of terror that is being perpetrated by various groups including social media, corporations and the MSM.

Ex-NSC official @RichHiggins_DC: Republicans were elected over and over again since 2010 – with ever increasing majorities – and even given the House, Senate and S. Court to stop the marxist drift.  Instead they turned on MAGA and attacked us.  What we see today is a direct result of their betrayal.

@EmeraldRobinson: What’s so incredible about this chaotic moment in America is that it’s happening while the GOP holds the White House, the Senate, and the Supreme Court.  And yet it seems like the GOP is the minority party.

@thehill: Sen. Tim Kaine: “The United States didn’t inherit slavery from anybody. We created it.”

Kaine, Hillary’s daffy 2016 running mate, doesn’t know history or the plight of the Israelis or he’s just virtue signaling.  Does Kaine think the pyramids are an act of nature or aliens from space?

Detectives’ Endowment Association @NYCPDDEA: Tonight [Monday], 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

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.

@johncardillo: NYPD brass is saying the Shake Shack milkshake machine wasn’t rinsed properly after cleaning and that the three 42 pct cops weren’t intentionally targeted with the bleach cleaner. If that’s true, why weren’t any other customers affected?

 

@charliekirk11: Rashid Brimmage pushed a 92-year-old woman down on the streets of Manhattan.  Brimmage has ONE HUNDRED prior arrests—why was he out on the streets in the first place?   While Bill De Blasio is busy locking down Jewish parks, he’s letting thugs like this run free

 

Ex-FBI agent and NSC @Jim_Casey_: 35 Seattle police officers applied for early retirement last week. This is the sad beginning.

Pritzker has no excuse to extend his shutdown of Illinois. His own data says reopen. – Wirepoints

Only four Illinoisans under the age of 20 have died from COVID-19. At least two of them had pre-existing conditions. And just 21 youths aged 20 to 29 were victims of the virus. Sixteen of those had pre-existing conditions…  https://wirepoints.org/pritzker-has-no-excuse-to-extend-his-shutdown-of-illinois-his-own-data-says-reopen-wirepoints/

I will see you THURSDAY night.

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