JUNE 18//GOLD DOWN $2.75 TO $1724.50//SILVER DOWN 16 CENTS TO $17.42//GOLD COMEX DELIVERY TONNAGE: 162.05 TONNES//CORONAVIRUS UPDATE//KIM THREATENS USA AGAIN//USA AGAIN HAS AN ADDITIONAL 1.508 MILLION ADDED FOR UNEMPLOYMENT BENEFITS // SWAMP STORIES FOR YOU TONIGHT///

GOLD:$1724.50  DOWN $2.75   The quote is London spot price

 

 

 

 

 

 

Silver:$17.42  DOWN 16 CENTS//LONDON SPOT PRICE

 

 

Closing access prices:  London spot

 

 

 

i)Gold : $1723.90  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.39//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

 

AUG GOLD:  $1731.50  CLOSE 1.30 PM//   SPREAD SPOT (LONDON) VS/FUTURE AUGUST: $  + 7.00

 

CLOSING SILVER FUTURE MONTH

 

 

JULY: 1:30 PM:              $17.55//1:30 PM //SPREAD SPOT LONDON VS FUTURE JULY:      13 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: 771/1541

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,729.200000000 USD
INTENT DATE: 06/17/2020 DELIVERY DATE: 06/19/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 14
072 H GOLDMAN 81
104 C MIZUHO 3
132 C SG AMERICAS 4
135 H RAND 1
167 C MAREX 3
190 H BMO CAPITAL 8
323 H HSBC 4
355 C CREDIT SUISSE 9
624 C BOFA SECURITIES 20
657 C MORGAN STANLEY 14 68
657 H MORGAN STANLEY 312
661 C JP MORGAN 686
661 H JP MORGAN 85
685 C RJ OBRIEN 3
690 C ABN AMRO 22 9
732 C RBC CAP MARKETS 4
800 C MAREX SPEC 10
880 C CITIGROUP 2
880 H CITIGROUP 1500
905 C ADM 5 4
991 H CME 211
____________________________________________________________________________________________

TOTAL: 1,541 1,541
MONTH TO DATE: 52,010

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 1541 NOTICE(S) FOR 154,100 OZ ( 4.793 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  52010 NOTICES FOR 5,201,000 OZ  (161.772 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

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

total number of notices filed so far this month: 427 for 2,135,000 oz

 

BITCOIN MORNING QUOTE  $9429  DOWN $36

 

 

BITCOIN AFTERNOON QUOTE.: $9388 DOWN 76

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $2.75 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 DOWN  GOOD 16 CENTS TODAY: AND WITH NO SILVER AROUND

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV..

A STRONG  DEPOSIT OF 0.932 MILLION OZ/  (THIS SILVER WAS PROBABLY BORROWED BY SCOTIA FROM JPMORGAN)

RESTING SLV INVENTORY TONIGHT:

 

SLV: 487.293  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG SIZED 3094 CONTRACTS FROM 174,386 UP TO 177,480 AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH OUR  8 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 SMALL 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 3367 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 SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 150  AND SEPT 100 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  250 CONTRACTS. WITH THE TRANSFER OF 250 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 250 EFP CONTRACTS TRANSLATES INTO 1.25 MILLION OZ  ACCOMPANYING:

1.THE 8 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

2.170  MILLION OF INITIALLY STANDING FOR JUNE

 

WEDNESDAY, 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 8 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 3344 CONTRACTS OR 16.720 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:

7842 CONTRACTS (FOR 15 TRADING DAY(S) TOTAL 7842 CONTRACTS) OR 39.210 MILLION OZ: (AVERAGE PER DAY: 522 CONTRACTS OR 2.614 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 39.210 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 5.60% 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:          1,105.245 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                   39.21 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 HUGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 3094, WITH OUR 8 CENT GAIN IN SILVER PRICING AT THE COMEX ///WEDNESDAY THE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 250 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:  3344 CONTRACTS (WITH OUR 8 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 250 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A HUGE SIZED INCREASE OF 3094 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 8 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.58 // WEDNESDAY’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: NOTICE(S) FOR 10,000 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: 2.170 MILLION OZ//
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A SMALL 2560 CONTRACTS TO 492,123 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 SMALL SIZED GAIN OF COMEX OI OCCURRED WITH OUR LOSS IN PRICE  OF $1.05 /// COMEX GOLD TRADING// WEDNESDAY// WE  HAD GOOD BANKER SHORT  COVERING, A SMALL SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL  EX. FOR PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR LOSS IN PRICE OF $1.05 .

 

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

 

WE GAINED A SMALL SIZED 3773 CONTRACTS  (11.41 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 1110 CONTRACTS:

CONTRACT  JUNE 0.; AUG 1110 AND DEC: 100  ALL OTHER MONTHS ZERO//TOTAL: 1110.  The NEW COMEX OI for the gold complex rests at 492,123. 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 SMALL SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 3670 CONTRACTS: 2560 CONTRACTS INCREASED AT THE COMEX AND 1110 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 3670 CONTRACTS OR 11.41 TONNES. TUESDAY, WE HAD A LOSS OF $1.05 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A SMALL SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 11.41 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $1.05).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  (1110) ACCOMPANYING THE SMALL SIZED GAIN IN COMEX OI  (2663 OI): TOTAL GAIN IN THE TWO EXCHANGES:  3773 CONTRACTS. WE NO DOUBT HAD 1 )SOME BANKER SHORT COVERING, 2.)A SMALL INCREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI GAIN.. AND  …ALL OF THIS WAS COUPLED WITH OUR LOSS IN GOLD PRICE TRADING//WEDNESDAY//$1.05.

 

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 : 36,633 CONTRACTS OR 3,663,300 oz OR 113.94 TONNES (15 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 15 TRADING DAY(S) IN  TONNES: 113.94 TONNES

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

THUS EFP TRANSFERS REPRESENTS 113.94/3550 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   2928.23  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:                     113.94 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 3094 CONTRACTS FROM 174,386 UP TO 177,480 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 SMALL 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 250 CONTRACTS

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

JULY: 150 CONTRACTS   AND SEPT: 100 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 250 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 3094  CONTRACTS TO THE 250 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 3344 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 16.720 MILLION  OZ!!! OCCURRED WITH THE 8 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 8 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A SMALL SIZED 250 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)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 3.44 POINTS OR 0.12%  //Hang Sang CLOSED DOWN 16.47 POINTS OR 0.07%   /The Nikkei closed DOWN 100.30 POINTS OR 0.45%//Australia’s all ordinaires CLOSED DOWN .94%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0848 /Oil UP TO 38.07 dollars per barrel for WTI and 40.98 for Brent. Stocks in Europe OPENED RED//ONSHORE YUAN CLOSED DOWN // LAST AT 7.0848 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0765 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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 SMALL 2560 CONTRACTS TO 492,123 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 SMALL  COMEX ADVANCE OCCURRED WITH OUR LOSS OF $1.05 IN GOLD PRICING /WEDNESDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (1110 CONTRACTS),.  THUS WE HAD 1) SOME BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  A SMALL INCREASE IN  GOLD OZ STANDING AT THE COMEX//JUNE DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 3670 CONTRACTS DESPITE GOLD’S LOSS 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 1110 EFP CONTRACTS WERE ISSUED:  1110 FOR AUG AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1110 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:  3670 TOTAL CONTRACTS IN THAT 1110 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 2560 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 SMALL COMEX OI GAIN,  A SMALL INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A LOSS IN COMEX PRICE OF 1.05 DOLLARS..

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $1.05).  AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 11.41 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 3670 CONTRACTS OR 367000 OZ OR 11.41 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:  492,123 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 49.21 MILLION OZ/32,150 OZ PER TONNE =  1529 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1529/2200 OR 69.56% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 108,503 contracts//extremely, extremely low//most traders have moved to London

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY149,243 contracts//  volume low //all of our traders have left for London

 

 

JUNE 18 /2020

JUNE GOLD CONTRACT MONTH

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
5031.860 oz
DELAWARE
LOOMIS
INCLUDES
ONE KILOBAR
LOOMIS
Deposits to the Dealer Inventory in oz NIL oz

 

 

 

Deposits to the Customer Inventory, in oz  

129,367.99

OZ

BRINKS

 

 

 

No of oz served (contracts) today
1541 notice(s)
 154,100 OZ
(4.793 TONNES)
No of oz to be served (notices)
90 contracts
(9000 oz)
.2799 TONNES
Total monthly oz gold served (contracts) so far this month
52010 notices
5,201,000 OZ
161.772 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 0 deposit into the dealer

 

total deposit: NIL oz

DEALER WITHDRAWAL:

i) nil oz

 

 

total dealer withdrawals: nil oz

we had 1 deposits into the customer account

i) Into Brinks:129,367.99 OZ

 

 

 

 

 

 

 

total deposits: 129,367.99    oz

 

 

we had 2 gold withdrawals from the customer account:

i) Out of LOOMIS:   32.15 oz ( one kilobar)

ii) Out of  Delaware: 4999.71  oz

 

 

 

total gold withdrawals;  868.077 oz

We had 2  kilobar transactions  +

 

 

 

 

ADJUSTMENTS: 2 //    

 

 

dealer to customer:

 

i) HSBC; 96,453.000 oz  3,000 kilobars

customer to dealer:

i)Brinks:  65,202.228 oz customer account to dealer account

 

 

The front month of JUNE registered a total of 1631 oi contracts of a GAIN of 16 contracts.  We had 4 notices filed on WEDNESDAY so we GAINED A GOOD 20 contracts or an additional 2000 oz of gold (0.0648 TONNES) will  stand in this very active delivery month of June as these guys REFUSED TO morphed into London based forwards

 

After June we have the non active delivery month of July and here we had a GAIN of 36 contracts UP to 3490 contracts.

Next comes August another strong delivery month and here the OI ROSE by 1554  contracts UP to 341,243 contracts.

 

We had 1541 notices filed today for 154,100 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 1541 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 771 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 95 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 (52,010) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (1631 CONTRACTS ) minus the number of notices served upon today (1541 x 100 oz per contract) equals 5,210,000 OZ OR 162.052 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 (52,010)x 100 oz + (1631 OI) for the front month minus the number of notices served upon today (1541) x 100 oz which equals 5,210,000 oz standing OR 162.052 TONNES in this  active delivery month. This is a HUGE record amount for gold standing for a JUNE delivery month or any active/non active delivery month.

We GAINED an additional 20 contracts or 2000 oz will stand on this side of the pond.  Issuance of exchange for physicals is SMALL 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  12,444,024.356 oz or 387.06 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: 11,437,618.0  (355.57 tonnes)
true registered gold  (total registered – pledged tonnes  11,437,618.0 (355.57 tonnes)
total eligible gold:  18,604,008.042 oz (578.66 tonnes)

total registered, pledged  and eligible (customer) gold;   31,048,438 oz 965.74 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  839.40 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 18/2020

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A STRONG SIZED 3094  CONTRACTS FROM 174,386 UP TO 177,480(AND CLOSER TO OUR NEW ALL TIME RECORD OI FOR SILVER SET ON FEB 25.2020(244,710) ECLIPSING OUR PREVIOUS RECORD, AUGUST 25/2018 RECORD (244,196).  THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9.2018/ 243,411 CONTRACTS) . THE STRONG OI COMEX GAIN TODAY OCCURRED WITH OUR 20 CENT RISE IN PRICING//WEDNESDAY. WE GAINED A TOTAL OF 3344 CONTRACTS IN OUR TWO EXCHANGES.  THE GAIN IN TOTAL OI (TWO EXCHANGES) OCCURRED WITH 1)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN  SILVER OZ STANDING AT THE COMEX FOR THE JUNE DELIVERY MONTH, 3)  CONSIDERABLE BANKER SHORT COVERING , 4) ZERO LONG LIQUIDATION,5) STRONG COMEX GAIN IN OI, ….AND ALL OF THIS OCCURRED WITH OUR 8 CENT GAIN IN PRICE 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE

THE FRONT DELIVERY OF JUNE SAW 10 OPEN INTEREST CONTRACTS STANDING FOR A GAIN OF 1 CONTRACTS.  WE HAD 1 NOTICE SERVED UPON YESTERDAY SO WE GAINED 2 CONTRACT OR AN ADDITIONAL 10,000 OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JUNE AS THEY REFUSED TO MORPHED INTO A LONDON BASED FORWARD.

AFTER JUNE COMES THE VERY BIG DELIVERY MONTH OF JULY AND HERE THE OI LOST 2160 CONTRACTS DOWN TO 74,574 CONTRACTS. AUGUST SAW ANOTHER GAIN OF 79 CONTRACTS TO 157 OPEN INTEREST CONTRACTS.. THE STRONG DELIVERY MONTH OF SEPT SAW A GAIN OF 4133 CONTRACTS UP TO 76,108

 

 

We, today, had  2 notice(s) FILED  for 10,000 OZ for the JUNE, 2020 COMEX contract for silver

 

JUNE 18/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 10,321.600 oz
CNT

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
2
CONTRACT(S)
(10,000 OZ)
No of oz to be served (notices)
8 contracts
 40,000 oz)
Total monthly oz silver served (contracts)  427 contracts

2,135,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
We had 0 deposit into the dealer:

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 0 deposits into the customer account

into JPMorgan:   0

 

 

 

*** 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 50.82% of all official comex silver. (160.819 million/316.403 million

 

total customer deposits today: nil    oz

we had 1 withdrawals:

 

 

 

i) Out of CNT

10,321.600 oz withdrawn from CNT

 

 

total withdrawals; 10,321.600   oz

We had 0 adjustments

 

 

total dealer silver: 85.643 million

total dealer + customer silver:  316.403 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 2 contract(s) FOR 10,000, 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 427 x 5,000 oz = 2,135,,000 oz to which we add the difference between the open interest for the front month of JUNE.(10) and the number of notices served upon today 2 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 427 (notices served so far) x 5000 oz + OI for front month of JUNE (10)- number of notices served upon today (2) x 5000 oz of silver standing for the JUNE contract month.equals 2,170,000 oz.

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

 

TODAY’S ESTIMATED SILVER VOLUME: 28,163 CONTRACTS // volume extremely low/

 

 

FOR YESTERDAY: 58,356..,CONFIRMED VOLUME//volume very bad/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 58,356 CONTRACTS EQUATES to 291 million  OZ 41.6% 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  FALLS TO- 0.91% ((JUNE 18/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.35% to NAV:   (JUNE 18/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.91%

(courtesy Sprott/GATA

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

NAV 16.34 TRADING 16.24///NEGATIVE 0.59

END

 

 

And now the Gold inventory at the GLD/

JUNE 18//WITH GOLD DOWN $2.75 TODAY: NO CHANGES IN GOLD INVENTORY: INVENTORY RESTS AT 1136.22 TONNES

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 18/ GLD INVENTORY 1136.22 tonnes*

LAST;  844 TRADING DAYS:   +192.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD

 

LAST 744 TRADING DAYS://+367.52  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 18/WITH SILVER DOWN 16 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 932,000 OZ INTO THE SLV////INVENTORY RESTS AT 487.293 MILLION OZ

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 18.2020:

SLV INVENTORY RESTS TONIGHT AT

487.293 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.58/ and libor 6 month duration 0.58

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

GOLD LENDING RATE: -2.16%

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

 

XXXXXXXX

12 Month MM GOFO
+ 2.15%

LIBOR FOR 12 MONTH DURATION: 0.58

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.57%

 

end

 

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

The Perth Mint is now stopping taking gold from small scale miners after allegations that it took gold from murderers and folks using child labour

(Reuters/GATA)

Perth Mint stops taking artisanal gold after sourcing allegations

 Section: 

By Swati Verma
Reuters
Wednesday, June 17, 2020

Australia’s Perth Mint, one of the world’s biggest gold refiners, said it would stop processing metal from artisanal and small-scale miners after allegations that it took gold dug in Papua New Guinea using child labor and toxic mercury.

The Australian Financial Review said last week the mint refined gold worth hundreds of millions of dollars despite concerns from some staff about where it came from.

The mint has said it is confident it acted ethically and in line with regulatory requirements and responsible sourcing rules.

… 

its chairman, Sam Walsh, said in a statement on Tuesday he had launched an independent review of the checks it makes on suppliers.

“The review will also assess the arrangements with licensed counterparties that may deal with Artisanal Small-scale Mining (ASM),” the statement said.

“Effective immediately as part of this process, the Perth Mint has suspended relationships with all companies and aggregators dealing with ASM.” …

… For the remainder of the report:

https://www.reuters.com/article/us-gold-perth-mint/perth-mint-stops-taki…

* * *

iii) Other physical stories:

Andrew Maguire

12:07 PM (4 minutes ago)
to me, Midasnh@aol.com, Chris, com

Thanks H

Here is a link to the interview with Chris https://www.youtube.com/watch?time_continue=110&v=jeYiJ3kywz0&feature=emb_logo

Best

Andrew

Attachments area

Preview YouTube video Episode 14: BREAKING NEWS – Live from the Vault – Featuring Andrew Maguire & Chris Powell

Episode 14: BREAKING NEWS – Live from the Vault – Featuring Andrew Maguire & Chris Powell

end

RELUCTANT PREPPERS

with Rob Kirby:

 

US BETTER HAVE THEIR 8,000 TONS OF GOLD | Rob Kirby

https://youtu.be/Al1CcRgFqRc

Just when you thought things we might be coming out of the worst, one widely followed analyst reminds us to connect the dots from the Reagan-era draining of Canada’s sovereign gold reserves as a weapon which bankrupted the USSR, to the fatal flaws in Keynesian fiat currency, to today’s runaway vertical growth of the Fed’s balance sheet, to the emerging global rejection of the USD, to the future global leadership hanging on which superpower has amassed the most gold – vs the most potent military…

Proprietary analyst Rob Kirby, founder of Kirby Analytics, returns to Liberty and Finance / Reluctant Preppers to answer viewers’ questions and paint a sobering picture of our future. Buckle up for this common-sense dose of reality, and call to become aware and prepared!

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 THURSDAY 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: 7.0848/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0765   /shanghai bourse CLOSED UP 3.44 POINTS OR 0.12%

HANG SANG CLOSED DOWN 16.47 POINTS OR 0.07%

 

2. Nikkei closed DOWN 100.30 POINTS OR 0.45%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 97.17/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 106.89/ 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:: 38.08 and Brent: 40.98

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.44%/Italian 10 yr bond yield DOWN to 1.49% /SPAIN 10 YR BOND YIELD DOWN TO 0.51%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.83: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.18

3k Gold at $1720.10 silver at: 17.45   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in roubles/dollar) 69.63

3m oil into the 38 dollar handle for WTI and 40 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 106.89 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 .9505 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0669 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.44%

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

4. USA 10 year treasury bond at 0.71% early this morning. Thirty year rate at 1.49%

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

6.  TURKISH LIRA:  UP  TO 6.860..

Futures Slide, Dollar Spikes Ahead Of Jobless Claims

S&P futures slumped on Thursday alongside European stocks as investors weighed the latest reports about fresh outbreaks of the coronavirus in China and America ahead of a weekly jobless claims report. A resurgence in coronavirus cases has upended bets of a swift post-pandemic economic recovery, with the S&P .SPX and the Dow snapping a three-day winning streak on Wednesday.

 

Carnival fell 3.6% in premarket trading after reporting a quarterly net loss of $4.4 billion and projecting a loss for the rest of the year after the pandemic brought its cruise business to an effective standstill. Royal Caribbean Cruises and Norwegian Cruise Line Holdings dropped 2.2% and 3.2%, respectively. Despite a surge in new infections in several U.S. states including Texas, Florida and Oklahoma, Trump said late on Wednesday that the United States would not close businesses again.

At the same time, in an attempt to ease fears over a second wave in China, the chief epidemiologist of China’s Center for Diseases Prevention and Control said Beijing’s latest coronavirus outbreak had been brought under control, helping futures briefly turn green.

On the economic front, after the latest data showed a record rise in U.S. retail sales and a surprise addition in jobs in May, investors will now look to the Labor Department’s weekly jobless claims report, for confirmation of continued improvement in the economy. The number of Americans filing for state unemployment benefits is likely to fall for the eleventh straight week, but still remain elevated following mass furloughs and layoffs during the nationwide lockdowns.

Politics is back in the picture too, after newspapers published leaked summaries of a John Bolton book critical of President Donald Trump.

In Europe, the Stoxx Europe 600 ticked lower, with German payments firm Wirecard AG slumping as much as 67% after it delayed publication of annual financial results for the fourth time because $2.1 billion was missing.

In Asia, stocks also edged modestly lower, with communications rising and materials falling, after rising in the last session. Markets in the region were mixed, with Jakarta Composite and Australia’s S&P/ASX 200 falling, and India’s S&P BSE Sensex Index and Taiwan’s Taiex Index rising. The Topix declined 0.3%, with Furukawa Battery and NTN falling the most. The Shanghai Composite Index rose 0.1%, with Chongqing Iron & Steel and Tianjin Tianyao Pharmaceutical posting the biggest advances

In rates, Treasuries came off highs and the dollar spiked around 8am without a clear cause.

 

Elsewhere in FX, the pound held most of its decline after the Bank of England expanded its quantitative easing program. Norway’s krone rose against all G-10 peers and rallied to a one-week high versus the euro after Norges Bank raised projections for growth and inflation for this year, and lifted its rate path by up to 65bps through the end of 2023, from earlier path which was flat at zero. The Swiss franc barely budged even after the Swiss National Bank pushed back against currency appreciation caused by the coronavirus pandemic, saying aggressive foreign exchange interventions remain its main tool; demand for the franc still rose in the options market. Australian and New Zealand dollars recovered as risk sentiment improved in the European session; the Aussie earlier slipped and sovereign curve flattened after disappointing jobs data while the Kiwi earlier fell after 1Q GDP contracted, sending the country into its first recession in 10 years.

In commodities, WTI and Brent crude futures recouped overnight losses heading into the OPEC+ JMMC meeting later today after yesterday’s JTC which reportedly made no recommendations for further cuts. Eyes will nonetheless remain on compliance and any enforcement mechanisms touted to ensure 100% or more compliance.

Today’s data highlights include the weekly initial jobless claims, along with June’s Philadelphia Fed business outlook and the leading index for May.

Market Snapshot

  • S&P 500 futures up 0.2% to 3,123.00
  • STOXX Europe 600 up 0.1% to 366.53
  • MXAP down 0.01% to 158.86
  • MXAPJ up 0.02% to 511.64
  • Nikkei down 0.5% to 22,355.46
  • Topix down 0.3% to 1,583.09
  • Hang Seng Index down 0.07% to 24,464.94
  • Shanghai Composite up 0.1% to 2,939.32
  • Sensex up 1.3% to 33,950.44
  • Australia S&P/ASX 200 down 0.9% to 5,936.47
  • Kospi down 0.4% to 2,133.48
  • German 10Y yield rose 0.2 bps to -0.39%
  • Euro up 0.05% to $1.1250
  • Italian 10Y yield rose 1.8 bps to 1.287%
  • Spanish 10Y yield unchanged at 0.559%
  • Brent futures up 0.4% to $40.89/bbl
  • Gold spot up 0.6% to $1,736.71
  • U.S. Dollar Index down 0.1% to 97.04

Top Overnight News

  • Boris Johnson and Emmanuel Macron will meet Thursday, the U.K. prime minister’s first bilateral with a European leader since calling for fresh momentum to secure a post-Brexit trade deal with the EU
  • A coronavirus outbreak in Beijing that has swelled to more than 150 cases has been contained, a top Chinese expert said
  • The ECB reached another trillion-euro milestone in its fight to bolster economies damaged by the coronavirus pandemic. An offer for its ultra-cheap, three-year loans was taken up by 742 banks for a total of 1.31 trillion euros on Thursday. That’s in line with predictions of 1.2 trillion to 1.5 trillion euros
  • Figures due Friday are forecast to show the U.K. budget deficit jumped about 50 billion pounds ($63 billion) in May as the government continued its extraordinary interventions to support the economy through the coronavirus pandemic. That would take the total for Britain’s finance minister Rishi Sunak’s first full three months to well in excess of 125 billion pounds
  • Sweden’s Finance Minister Magdalena Andersson now expects GDP to contract by 6% this year compared to a previous forecast of about 7% amid signs of a recovery following the country’s softer lockdown approach

Asian stocks traded mostly negative with investor sentiment dampened by concerns regarding a resurgence of coronavirus cases stateside and as participants digested the latest bout of weak data from the region, as well as ongoing US-China tensions. ASX 200 (-0.9%) and Nikkei 225 (-0.4%) were lower with Australia pressured by losses in nearly all sectors including early underperformance in the top-weighted financials and with disappointing employment data adding to the soured mood, while exporters in Japan buckled under the strain of a firmer currency. Elsewhere, Hang Seng (U/C) and Shanghai Comp. (+0.1%) were both subdued amid ongoing US-China tensions as China responded to President Trump’s recent signing of the Uighur human rights legislation which it firmly opposed and warned the US to correct its mistakes or it will resolutely respond with the US to bear the consequences. However, losses were cushioned in the mainland after the PBoC conducted open market operations to inject liquidity in which it utilized 14-day reverse repos for the first time since February and lowered the respective rate by 20bps to 2.35%, while JD.com was among today’s success stories in which the Co. shares rose about 6% at the open of its Hong Kong debut. Finally, 10yr JGBs were higher with prices underpinned in tandem with upside in T-notes and amid the broad negative risk tone in the region, although some of the gains were retraced after weaker results at the 5yr JGB auction.

Top Asian News

  • G-7 Warns China’s Moves in Hong Kong Jeopardize City’s Success
  • India Stocks Advance as Reliance Industries Leads Gain
  • Indonesia Cuts Rates, Signals More Easing as Growth Weakens

European equities kicked the session off in an uninspiring manner but kept grinding higher in earlier trade before received further impetus on headlines that Beijing has controlled the second outbreak in the city. Stocks have since given up some of its recent gains and meander around the unchanged mark with a better performance seen in UK’s FTSE 100 (+0.1%) as exporters benefit from a softer Sterling ahead of the BoE policy decision. Broader sectors are mixed with no clear risk-reading to be derived as cyclicals and defensives remain a broken compass. The sectoral breakdown however trade saw a more cyclical bias early trade as Healthcare lost its earlier top-spot and traded at the bottom of the pile, whilst Travel & Leisure clawed its way from the bottom to one of the top performers, alongside Insurance, Chemicals, Banks and Tech, albeit the picture has turned more mixed since early morning with Oil & Gas now the laggard. Individual stock focus has been on DAX-listed Wirecard (-46%), who’s shares tanked over 60% at one point as expectations for a results being released today were again dashed due to indications of presentation of spurious balance confirmations. The group said it will announce a revised date for the release in due time but if certified annual and consolidated financial statements cannot be made available until June 19, 2020, loans made to Wirecard AG amounting to approximately EUR 2 billion can be terminated. Elsewhere, Carnival (-2.4%) shares failed to catch tailwind from the recovery in the broader Travel & Leisure amid a broker downgrade at Berenberg, althought the group’s earnings, which were released during the session, provided little by way of share price action despite missing on both top and bottom line. UBS (+1.0%) and Credit Suisse (+0.6%) were buoyed by the SNB stating the banks are robust enough to weather the pandemic.

Top European News

  • Norges Bank Signals Crisis Rates May Be Lifted in Two Years
  • SNB Warns Markets It’ll Keep Up Fight Against Franc Strength
  • Sweden Raises Forecast for Economy as Recovery Starts to Pick Up
  • German Move to Counter Foreign Takeovers Set for Final Approval

In FX, it’s 2 down and 1 to go in terms of today’s EU Central Bank bonanza, with the SNB and Norges Bank both sticking to the script by leaving benchmark rates on hold at -0.75% and zero respectively. However, the former formally upgraded its assessment of the Franc to highly valued from even more highly valued in March in acknowledgement of its softening since the previous quarterly policy review, while the latter delivered a more upbeat economic outlook based on a faster recovery than envisaged at its prior meeting in May. In response, Usd/Chf and Eur/Chf remain largely rangebound around 0.9500 and sub-1.0700, but Eur/Nok has fallen sharply towards 10.6250 from circa 10.7500 highs also in recognition of the revised depo rate path flagging a rise after 2022. Conversely, the Pound has been apprehensive and under pressure awaiting the BoE at noon amidst expectations of at least Gbp 100 bn additional QE, but no change in the Bank rate, with Cable testing stops through Wednesday’s low (1.2510) and Eur/Gbp back up near 0.9000 from 0.8950 at one stage. Note, a full preview of the MPC policy decision and minutes can be found in the Research Suite or via the Headline Feed.

  • USD – Beyond the divergent moves noted above, the Dollar and major counterparts are still relatively restrained between recent/familiar boundaries and exemplified by the DXY hardly deviating from 97.000 and not even tempted to stray far on a knee-jerk rise in broad risk sentiment amidst reports that Beijing has managed to get the latest COVID-19 outbreak under control. Ahead, US weekly claims alongside Philly Fed may prompt a bit more price action.
  • CAD/EUR/JPY/AUD/NZD – All narrowly mixed vs the Greenback, as the Loonie pares losses from sub-1.3600 towards 1.3520 in the run up to Canadian new house price and wholesale trade data before a speech by BoC’s Schembri, while the Euro is holding off yesterday’s lows and close to decent option expiry interest between 1.1245-60 (1.3 bn) after little reaction to the latest ECB monthly bulletin or TLTRO take-up near the upper end of the forecast range. Elsewhere, the Yen is meandering from 106.71-107.07 following a modest climb overnight when markets were somewhat more jittery, but still marginally outperforming the Kiwi and Aussie that have both been hampered by disappointing data (GDP and jobs). Indeed, Nzd/Usd and Aud/Usd have retreated from circa 0.6900 and 0.6480 respectively, albeit off worst levels under 0.6840 and 0.6425.

In commodities, WTI and Brent crude futures have recouped overnight losses heading into the OPEC+ JMMC meeting later today after yesterday’s JTC which reportedly made no recommendations for further cuts. Eyes will nonetheless remain on compliance and any enforcement mechanisms touted to ensure 100% or more compliance. On that front, sources stated Iraq, Kazakhstan to present plan for oil production cuts and compensation for overproduction at the meeting. Saudi and Russia will lead a presser after the meeting, although leaks are anticipated (Full Primer available here). Futures were also bolstered higher in early trade amid comments from a Chinese CDC expert who deemed the Beijing outbreak contained – providing impetus to overall risk appetite and pushing WTI July north of USD 38/bbl (vs. low 37.11/bbl) and Brent August above USD 41/bbl (vs. low 40.06/bbl). Meanwhile, spot gold piggy-backed on the softer USD and built on gains above USD 1730/oz having had an uneventful overnight session. Copper prices meanwhile remain little changed on the day despite the rise in stocks whilst iron ore prices fell below USD 100/t after Vale was given the green light to reopen its Itabira complex following coronavirus measures.

US Event Calendar

  • 8:30am: Philadelphia Fed Business Outlook, est. -21.3, prior -43.1
  • 8:30am: Initial Jobless Claims, est. 1.29m, prior 1.54m; Continuing Claims, est. 19.9m, prior 20.9m
  • 10am: Leading Index, est. 2.4%, prior -4.4%

DB’s Jim Reid concludes the overnight wrap

The best news I’ve had over the last 24 hours is that after 6 days, someone at Chill Acoustic reset their system and we’re back to normal. Expect my productivity to rocket. Actually a client did a very nice thing for me and tracked down the founder and got in contact with him. He was a bit nonplussed by the attention and just said he’ll switch servers. Thanks also to all those who spotted what the picture was in my WFH setup in our new video series ( link here straight to the video again). There were a number of honest scholars who got it right and quite a few that I suspect used “Google lens”, which I only learnt about yesterday after an honest client informed me. It allows you to identify pretty much everything from a photo/your camera. My wife has been dying to know what flowers were in our garden from the previous owner and I was able to impress her last night by informing her. I didn’t tell her how but she was very impressed. That’s our little secret now.

By the end of the session, the S&P 500 had snapped a run of 3 successive gains since last Thursday’s large drop to close down -0.36%, as energy stocks dragged the index lower on the back of lower oil prices. Fed Chair Powell’s second day testimony was a bit of a non-event but we’ll detail more about it below. Outside of Energy (-3.28%), Banks (-2.69%) and Autos (-1.97%) were the worst performers as cyclicals lagged behind. The overall index traded in a roughly 30pt range all day, tighter than over the last week or so, and finished at the bottom of that range. Volatility also remained elevated, even with the VIX index closing down -0.2pts at 33.5pts. This is still above the vol levels in the second half of May when the narrative turned more positive. Tech stocks outperformed, however, with a +0.15% rise for the NASDAQ, which was its 8th increase in the last 9 sessions. European equities did well too, with the STOXX 600 up +0.74%, with the DAX, CAC 40 and FTSE 100 all advancing as well.

Elsewhere, yields on 10yr US Treasuries fell by -1.5bps to 0.738%, while peripheral bonds slightly tightened with BTPs (-1.6bps), Spanish (-0.9bps) and Greek (-0.1bps) all gaining late in the session. Similar to equities, Brent crude also ended a run of 3 successive increases, with a -0.61% decline to $40.71/bbl yesterday, while WTI also fell -1.09% to $37.96/bbl.

In terms of the latest on the coronavirus, there was a continued divergence in the health metrics between different US states yesterday. On the positive side, New York reported only 17 deaths yesterday, down from 25 the day before, while the number of patients hospitalised fell below 1,500. Indeed, Governor Cuomo said that New York City was on track to enter the second phase of reopening on Monday, while the rest of the state will be in phase 3. The picture wasn’t so good elsewhere though, with Texas seeing the number of hospitalisations rise by 11% in the last 24 hours, while Florida saw the number of cases rise by 3.3% yesterday, compared with an average of 2.8% over the previous 7 days. The other worrying metric out of Florida is that the positive test rate rose to 10.3% yesterday from 7.4% at the start of the week. It has been over 2 months since the rate was that high. Cases in California rose by 3.4%, higher than the 7-day average of 2.1% as the state continues to struggle suppressing its overall case growth. We have highlighted how discriminative Covid-19 is based on age, and Nate Silver (famously of fivethirtyeight.com) brought attention to how different the coronavirus spread has been in NYC and Texas, “In NYC, 24% of known cases are among people 65+, while in Texas, it’s 16%”. It could be that the elderly in Texas have been able to separate themselves better than in NY, which may limit the damage of risking case numbers.

Over in Europe, which has pursued a much harsher lockdown in general, a meatpacking plant in Germany was shut after hundreds of workers were found to have tested positive for the coronavirus. Now we officially know what helped cause case numbers on Tuesday to jump by 570, the largest one-day rise in the country since May 29 on both an absolute and percentage basis. The 0.3% rise was relatively significant given the 7-day average of 0.1%. Cases rose by 0.2% (352 in absolute terms) yesterday, but we will need to see how cases develop over the next week to see if that event has ripple effects. There were also worrying signs of a deterioration in Iran again, which was one of the earliest affected countries, as the number of deaths rose for a 4th day running to 120, the highest number in over 2 months. See “view report” at the top for the usual case and fatality tables from around the world and the main US high profile states.

Back to markets, and a fairly non-eventful overnight session has seen most bourses in Asia post modest losses, albeit off their lows for the session. Indeed the Nikkei (-0.32%), Hang Seng (-0.22%), ASX (-0.80%) and Kospi (-0.13%) are all down while Chinese bourses are trading flattish. Meanwhile, yields on 10y USTs are down a further 3bps and futures on the S&P 500 are down -0.63%. The outperformance for China may reflect a Bloomberg report suggesting that the country will reduce the reserve requirement ratio and use its relending policy to keep liquidity ample citing a State Council meeting chaired by Premier Li Keqiang.

Yesterday Fed Chair Powell gave a testimony before the House Financial Services Committee after speaking in front of the Senate’s counterpart the day before. He stuck to the same general talking points. We highlighted the Fed Chair’s statements on the Secondary Market Corporate Credit Facility yesterday and he followed it up by saying that the Fed will eventually move away from ETF purchases and focus on buying bonds primarily. As Craig mentioned yesterday the risk to credit is perhaps that the Fed is pulling back from using anywhere near as much firepower as was thought. If so Powell is perhaps concluding that there is no pressing need to over commit in a market that’s functioning. However, how much of that market functioning is down to expectations that the Fed was going to buy significantly more than it is perhaps signalling to now? An interesting one to follow.

In terms of geopolitical updates, matters calmed down somewhat yesterday following the clashes between Indian and Chinese troops, with the two countries’ foreign ministers and senior military commanders talking by phone to de-escalate tensions. Over on the Korean peninsula, however, following North Korea blowing up a liaison office on their side of the border earlier in the week, they said yesterday that they would be sending troops to border areas, from where the two sides had previously agreed to remove troops. So certainly worth keeping an eye on escalating tensions there.

Attention today will turn to the Bank of England, who’ll be announcing their latest monetary policy decision later. In terms of what to expect, our economists are forecasting that the BoE will join the ECB in announcing a further expansion to their post-pandemic QE program, with a £125bn expansion, though the risks to this are tilted to the upside as the MPC could surprise with a stronger response. The decision today will follow yet another drop in CPI inflation, with data yesterday showing it fell to +0.5% in May as expected, the slowest annual inflation rate since June 2016, and some way below the BoE’s 2% target. Core inflation was stronger, though even that fell to +1.2% (vs. +1.3% expected).

Yesterday’s housing data from the US underwhelmed somewhat, with the number of housing starts in May coming in at 974k on an annualised basis (vs. 1.1m expected). That said, it does mark a rebound from April’s upwardly-revised 934k reading. Building permits also underperformed, rising to 1.220m (vs. 1.245m expected), though again this was a rebound from April’s 1.066m reading. Over in Europe, there was something of a rebound in EU27 new car registrations. They were “only” down -52.3% on the previous year, compared with -76.3% in April.

To the day ahead now, and central banks will be on the agenda today as monetary policy decisions come from the Bank of England, the Swiss National Bank, the Norges Bank and Bank Indonesia. In addition, the ECB will be publishing their Economic Bulletin, while the Fed’s Mester and the BoE’s Broadbent and Tenreyro will be speaking. Data highlights include the weekly initial jobless claims from the US, along with June’s Philadelphia Fed business outlook and the leading index for May.

 

3A/ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 3.44 POINTS OR 0.12%  //Hang Sang CLOSED DOWN 16.47 POINTS OR 0.07%   /The Nikkei closed DOWN 100.30 POINTS OR 0.45%//Australia’s all ordinaires CLOSED DOWN .94%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0848 /Oil UP TO 38.07 dollars per barrel for WTI and 40.98 for Brent. Stocks in Europe OPENED RED//ONSHORE YUAN CLOSED DOWN // LAST AT 7.0848 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0765 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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

USA futures are down as Kim threatens South Korea with “explosive justice //far beyond imagination”

(zerohedge)

US Futures Slide As Kim Threatens South Korea With “Explosive Justice Far Beyond Imagination”

Having literally blown-up their diplomatic channel, North and South Korean officials (and state mouthpieces) are rattling sabres at one another is ever-escalating language tonight.

 

First, Yonhap reported that North Korea is preparing to redeploy troops to two inter-Korean business zones near the border and reinstall border guard posts removed under a tension reduction deal.

“Units of the regiment level and necessary firepower sub-units with defense mission will be deployed in the Mount Kumgang tourist area and the Kaesong Industrial Zone where the sovereignty of our Republic is exercised,” a spokesperson of the General Staff said in a statement carried by the Korean Central News Agency.

The official said that “civil police posts” that had been pulled back from the Demilitarized Zone straddling the inter-Korean border under a military deal “will be set up again to strengthen the guard over the frontline” and open areas along the border to support leaflet-sending by its own people into the South.

That triggered a small drop in futures.

But, then Yonhap confirmed that South Korea’s top nuclear envoy arrived in Washington on Wednesday for talks with U.S. officials. His visit was unannounced, leading to speculation that he may have been sent as a special envoy by the presidential office, Cheong Wa Dae, triggering another leg down in futures.

And finally, North Korea’s official newspaper said that this week’s demolition of an inter-Korean liaison office was just the beginning, warning there could be additional retaliatory steps against South Korea that could go “far beyond imagination.”

 “It is just the beginning,” the Rodong Sinmun, the organ of the North’s ruling party, said of Tuesday’s destruction of the liaison office.

“The explosive sound of justice that will continue to come out could go far beyond the imagination of those who make a noise about what could unfold.”

“Our military’s patience has run out,” the paper added. “The military’s announcement that it is mulling a detailed military action plan should be taken seriously.”

Dow futures are down 350 points from the US cash market close…

If only The Fed could print up some ‘peace’?

end

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/G7

G7 nations urge China to reconsider the Hong Kong Security law

(Brugen/EpochTimes)

G-7 Nations “Strongly Urge” China To Reconsider Hong Kong Security Law

Authored by Isabel Van Brugen via The Epoch Times,

All Group of Seven (G-7) foreign ministers on June 17 issued a joint statement calling on Beijing to reconsider imposing the Chinese Communist Party’s (CCP’s) so-called “national security” legislation on Hong Kong.

Beijing’s rubber-stamp congress bypassed Hong Kong’s local legislature in late May to enact the legislation that would criminalize activities connected to subversion, succession, terrorism, and foreign interference.

The proposed law is seen as a major blow to the city’s autonomy. It has attracted condemnation both inside and outside Hong Kong and brought protesters back to the streets. It will be implemented in the territory once the National People’s Congress Standing Committee (NPCSC) drafts details of the legislation.

Dominic Raab

@DominicRaab

As an international community we all have a stake in 🇭🇰success & prosperity. With my @G7 colleagues 🇨🇦🇫🇷🇩🇪🇮🇹 🇯🇵🇺🇸🇪🇺we reiterated our grave concern at China’s decision to impose the national security law. HK’s autonomy & rights & freedoms must be protected https://bit.ly/2YL4leJ

Foreign Secretary Dominic Raab.

G7 urges China to reconsider national security law

International community calls upon China to adhere to its legally binding commitments and respect the autonomy and the freedom of the people of Hong Kong.

gov.uk

The foreign ministers expressed their “grave concern regarding China’s decision to impose a national security law on Hong Kong,” noting that it would violate Beijing’s international commitments and breach Hong Kong’s Basic Law, which guarantees that the International Covenant on Civil and Political Rights can remain in force in the territory.

“The proposed national security law would risk seriously undermining the ‘One Country, Two Systems’ principle and the territory’s high degree of autonomy,” the foreign ministers of the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom said in a joint statement with the EU’s High Representative.

Under the Sino-British Joint Declaration, which set the terms of Hong Kong’s transfer to Chinese rule, the regime agreed to grant the city autonomy and freedoms not enjoyed in the mainland, under the formula of “one country, two systems.”

The statement came just hours before the National People’s Congress standing committee was set to convene in Beijing, although it was not clear whether the legislation would be discussed.

It also came on the heels of an announcement from veteran pro-Beijing politician Tam Yiu-chung, who sits on the NPCSC. He said that the proposed legislation could allow extraditions from Hong Kong to mainland China, AFP reported.

“If the central government thinks it is necessary to do so, not to be handled in Hong Kong courts, then that is an option,” he told Radio Television Hong Kong (RTHK) in an interview Wednesday when asked whether Hong Kongers could be extradited for trial.

“I believe some cases would touch on foreign affairs given the proposed law would regulate the foreign forces that have meddled in Hong Kong affairs,” he said. “This is clearly a matter that needs to be handled by the central government.”

People lay down flowers to mourn the death of a local protester, near the Pacific Place mall in Admiralty, Hong Kong, on June 15. 2020. (Song Bilung/The Epoch Times)

Deng Zhonghua, deputy director of the Hong Kong and Macau Affairs Office—Beijing’s agency for handling those territories’ policies—said on Monday that China’s central authorities should have the power to exercise jurisdiction over “most serious national security cases” in Hong Kong under the national security law.

The G-7 ministers said in their statement that the proposed law “would jeopardize the system which has allowed Hong Kong to flourish and made it a success over many years.”

“We are also extremely concerned that this action would curtail and threaten the fundamental rights and freedoms of all the population protected by the rule of law and the existence of an independent justice system.

“We strongly urge the government of China to reconsider this decision,” the statement concluded.

In response, China’s top diplomat Yang Jiechi said in talks with Secretary of State Mike Pompeo that Beijing “firmly opposes” the statement from the foreign ministers, and that China is determined to push forward the legislation for Hong Kong.

China “urges the U.S. to earnestly respect China’s sovereignty,” Yang told Pompeo, China’s foreign ministry said in a statement on Thursday.

END

4/EUROPEAN AFFAIRS

GERMANY/WIRECARD

Large German payment company, Wirecard sees that their shares plunged 60% as auditors unable to verify $2 billion in cash on their books. Looks like a massive fraud to me

(zerohedge)

Wirecard Shares Plunge 60% As Auditors ‘Unable To Verify’ $2 Billion In Cash On Its Books

Once again, it looks like the bears and the skeptics were right all along.

German payments company Wirecard delayed publication of its 2019 annual report, resulting in shares plunging by more than 50% and its bonds due in 2024 dropping 23 cents to around 58 cents on Thursday, as auditors failed to account for more than $2 billion cash balances that the company had previously reported, according to Reuters.

After having already delayed the report three times, Wirecard was set to finally release it on Thursday. However, in a not-entirely-unexpected admission, the company revealed that its auditor, Ernst & Young, was unable to verify €1.9 billion euros ($2.1 billion) in cash balances – or about a quarter of its balance sheet.

“There are indications that spurious balance confirmations had been provided” that created “a wrong perception of the existence of such cash balances or the holding of the accounts for to the benefit of Wirecard group companies,” the statement read. “The Wirecard management board is working intensively together with the auditor towards a clarification of the situation.”

Wirecard warned if there were no certified annual and consolidated statements by Friday, it would result in a 2 billion euro ($2.25 billion) loan being terminated.

As we’ve previously noted, German regulators have bent over backwards to accommodate Wirecard, even going so far as to discourage short sellers from targeting the stock, and launching an investigation into an FT reporter who published the first allegations about fraud within the fast-growing digital payments company.

Wirecard shares fell 60% on Thursday, erasing nearly 2/3rds of their value.

Unsurprisingly, the FT journalist who faced a vicious attack on his credibility by both the company and German financial regulator BaFin is having the last laugh on twitter after the company, its army of goons, the German government and even some sell-side analysts attacked his reporting.

Dan McCrum

@FD

Wirecard was down 5 per cent at the open, recovered a bit since.

No sign of the full year figures for 2019 yet.

Press call was scheduled for 2pm CET.

Dan McCrum

@FD

For background on Wirecard collapse today, these are the two key stories.
In October, we wrote that sales and profits appeared fraudulently inflated. https://www.ft.com/content/19c6be2a-ee67-11e9-bfa4-b25f11f42901 
In December, we wrote that “trustee accounts” were included in cash balances. https://www.ft.com/content/845b0dce-1836-11ea-9ee4-11f260415385 

Wirecard’s singular approach to counting cash

German fintech boosted its cash reserves using trust accounts from its payments processing operations

ft.com

Dan McCrum

@FD

Wirecard says €1.9bn of cash is missing, indications auditors deceived, €2bn of loans could be terminated if accounts not published tomorrow.
Stock down two-thirds, FT story imminent

Dan McCrum

@FD

Story here Wirecard says €1.9bn of cash is missinghttps://www.ft.com/content/1e753e2b-f576-4f32-aa19-d240be26e773 

Wirecard says €1.9bn of cash is missing

Shares of payments group crash as it says a third-party may have tried ‘to deceive’ its auditor

ft.com

Dan McCrum

@FD

Wirecard says €1.9bn of cash is missing, indications auditors deceived, €2bn of loans could be terminated if accounts not published tomorrow.
Stock down two-thirds, FT story imminent

Robert Smith@BondHack

First runs on Wirecard 0.5% 2024 bond coming in around the 50 cents mark. The goofy SoftBank convert even lower….

Now, those same sell-side analysts who questioned the FT probably have some explaining to do…

…as it appears the FT reporting has been largely vindicated.

END

UK

The Bank of England announces a slower pace for QE of only one hundred pounds.  They are now expecting to curtail the entire program by the end of the year

(zerohedge)

Bank Of England Announces Only £100BN QE Expansion In Unexpectedly Hawkish Statement

The Bank of England voted unanimously to keep the Bank Rate at 0.1%, as expected, however in a disappointment to some who were looking for an £200BN increase in the asset purchase program, the bank announced that in an 8-1 to vote it expanded its bond buying program by only £100BN, with chief economist Andy Haldane dissenting on additional QE, favoring no change. In a further hawkish surprise, the BOE also said it now expects the £745 billion asset purchase program to be completed around turn of the year even as the U.K. economy takes some time to recover.

At this meeting, the MPC judges that a further easing of monetary policy is warranted to meet its statutory objectives. The Committee agreed to increase the target stock of purchased UK government bonds by an additional £100 billion in order to meet the inflation target in the medium term. The Committee expects that programme to be completed, and the total stock of asset purchases to reach £745 billion, around the turn of the year.

Commenting on the decision, the BOE minutes said that “with liquidity conditions having stabilised, purchases could now be conducted at a slower pace than during the earlier period of dysfunction. Should conditions worsen materially again, however, the Bank stood ready to increase the pace of purchases to ensure the effective transmission of monetary policy.” As noted above, the BOE sexpect the program to be completed “around the turn of the year”.

More importantly for those expecting NIRP in the UK, the outlook was not nearly as negative as expected, and there is no mention of negative rates nor TSFME rate change.

Adding to the hawkish read, the BOE said that “the emerging evidence suggests that the fall in global and UK GDP in 2020 Q2 will be less severe than set out in the May Report. Although stronger than expected, it is difficult to make a clear inference from that about the recovery thereafter. There is a risk of higher and more persistent unemployment in the United Kingdom. Even with the relaxation of some Covid-related restrictions on economic activity, a degree of precautionary behaviour by households and businesses is likely to persist.”

That was not all: as Pantheon’s Sam Tombs points out, the BoE pace of monetization is sharply lower, as the bank will now be buying £6B gilts a week until the end of the year, well down from current £11B pace, “much less than most analysts had assumed.”

Samuel Tombs@samueltombs

My quick calcs suggest the BoE will be buying c.£6B gilts a week until the end of the year, well down from current £11B pace

This is much less than most analysts had assumed

View image on Twitter

As FX strategist Viraj Patel adds, the “Bank of England’s £100bn QE to year-end means that weekly gilt purchases will slow down to around 40% of current pace. A relatively hawkish move compared to other central banks. Obviously BoE can front-load these purchases but $GBP higher as on a not so aggressive BoE QE move.”

Viraj Patel@VPatelFX

Bank of England’s £100bn QE to year-end means that weekly gilt purchases will slow down to around 40% of current pace. A relatively hawkish move compared to other central banks. Obviously BoE can front-load these purchases but higher as on a not so aggressive BoE QE move

View image on Twitter

Combined with the smaller than expected QE amount, the statement was generally more hawkish than consensus expected, which explains the spike in cable, which has however since faded much of the gains.

As Bloomberg’s Marcus Ashwroth notes, the 10-year gilt yield’s up on the reduced weekly pace of BOE buying to about 9 billion pounds from 13.5 billion pounds. “Adding to this is Haldane’s dissent on any increase in QE. Although the BOE stressed it could always increase the pace of bond purchases again, the reduction to just two rather than three buying operations sends a clear message that the pandemic response is tapering.

What happens next? while the bank did not provide much detail on what precise action the central bank could take next should its assessment prove overly optimistic, they made clear officials are ready to do more:

“The MPC will continue to monitor the situation closely and, consistent with its remit, stands ready to take further action as necessary to support the economy.”

As UBS economist Dean Turner writes, “we don’t believe the Bank will take rates lower this summer, let alone into negative territory. We may, however, see some evolution in the funding schemes for banks, to support lending to the economy. This could raise a few eyebrows, but has the potential to be more successful in increasing the flow of credit than cutting base rates alone.”

END
ECB/EU
QE to dizzy heights:  ECB hands out a record 1.3 trillion euros in TLTRO loans to 742 banks. Good for gold
(zerohedge)

In Latest Liquidity Flood; ECB Hands Out A Record €1.3 Trillion In Negative Yielding TLTRO-III Loans

Lost in the noise of the near-infinite liquidity tsunami earlier today the ECB announced the results of the latest TLTRO-III auction: in it €1.3 trillion was taken up by 742 banks, a take-up which Goldman called “significant”, with demand driven by i) replacing existing facilities which were maturing (we estimate €760 bn); ii) net new take-up (€550 bn).

Furthermore, as Goldman notes, it is also apparent that the generous financial terms of this facility (-1% for Year 1, -0.5% for Years 2-3), with fixed rate/full allotment, more than offseting any associated stigma. All in, this auction was important from the perspective of overall financial stability, and, on the margin, supportive of bank revenue. The next auction, on the same terms, is on September 24, with subsequent auctions running quarterly until March 2021.

As a reminder, the main benefit to bond markets is the TLTRO “carry trade”, where banks are expected to use the cheap ECB loans – which pay the borrower to take out a loan – to buy higher yielding assets such as short-dated Italian government bonds.

German 10-year government bond yields were unchanged at -0.42%. Italian 10-year yields were also unchanged at 1.37%.

Courtesy of Goldman, here are the four key takeaways from today’s TLTRO:

1. Volume is very high at >€1.3 trn. With this take-up, banks are

  • replacing c.€760 bn (GSe) of weekly LTRO / TLTRO-II and
  • adding some €550 bn of net liquidity.

The replacement of existing facilities consists of two main parts:

  • the weekly LTRO, designed in March as a bridge between emergency liquidity measures and today’s auction; our expectation therefore was that the entirety of this legacy facility would be rolled into today’s auction;
  • and the portion of TLTRO-2 maturing later this month (June 24).

Given improved terms (-1% for YR1 until June 2021, and -0.5% for YR2-3 if lending benchmarks criteria are met) starting with this auction, banks were expected to repay some outstanding TLTRO-II early to refinance at cheaper rates. Taken together, this still leaves some €550bn of net new take-up.

2. Usage is broad = stigma is not there. 742 banks participated in the auction, which indicates very broad participation. This is a clear indication that the generous terms of the facility offset any associated stigma.

3. Usage now at all-time high. During the 2008/9 crisis, the ECB funding facility usage peaked at just under €900 bn. The period of European sovereign crisis saw the introduction of TLTROs, and usage increased to €1.26 trn. With today’s auction, usage has risen to €1.57 trn, the highest on record.

4. Further capacity exists. On current collateral terms, this facility could be scaled up further over the coming auctions

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/IRAQ

Turkey annoys Iraq with the largest ever air and ground assault.  They claim they are trying to route out Kurdish armed groups

(zerohedge0

Turkey Launches ‘Largest Ever’ Air & Ground Assault Into Northern Iraq

NATO-member Turkey has controversially initiated a major bombing campaign over northern Iraq targeting Kurdish armed groups, specifically the outlawed PKK which Ankara has long said uses Iraqi territory to conduct a cross-border insurgency.

The military incursion also involves ground troops. On Tuesday evening the Turkish Defense Ministry announced the start of “Operation Tiger Claw” with the following statement: “In order to neutralize the elements of the ‘Kurdistan Workers Party’ (PKK) and other terrorist elements that threaten the security of our people and our borders, victory has reached the heroes of the commando units who are currently in the Haftanin area.”

Iraq’s Ministry of Foreign Affairs – outraged at yet another violation of Iraqi sovereignty – promptly summoned the Turkish ambassador to Baghdad and lodged a memorandum of protest.

 

Turkish ministry of defense photo of Turkish troops in action against Kurdish militants in northern Iraq, via AP.

The Erdogan government, meanwhile, has claimed it’s acting in ‘defense’ after PKK insurgents have launched repeat attacks from Iraqi and Syrian soil over the past years.

Multiple reports suggest that this particular operation is unprecedented in its scale:

Special forces were airlifted and deployed overland to the border region of Haftanin in the early hours of Wednesday for Operation Claw-Tiger. The campaign targeted 150 suspected Kurdistan Workers’ party (PKK) positions and was supported by jets, helicopters, drones and artillery, the Turkish defense ministry said.

The ongoing airstrikes included attacks in and around Sinjar Mountain, where it must be remembered tens of thousands of members of the ethno-religious group, the Yazidis, took refuge from ISIS in 2014, after which a US military rescue mission ensued to protect the group. It’s yet another example of local US allies coming under NATO member Turkey’s bombs.

The Turkish Defense Ministry further issued the following propaganda video upon the start of “Operation Tiger Claw”:

T.C. Millî Savunma Bakanlığı

@tcsavunma

Halkımızın ve hudutlarımızın güvenliğini tehdit eden PKK ve diğer terörist unsurları etkisiz hale getirmek maksadıyla; Hava Kuvvetleri, ateş destek vasıtaları, ATAK Helikopterleri, İHA ve SİHA’larla desteklenen Komandolarımız, hava hücum harekâtıyla bölgeye intikal etmişlerdir.

Embedded video

The bombings have reportedly impacted Yazidi refugee camps in the area as well. Critics of this latest Turkish aggression against the Kurds and other ethnic minorities have pointed out that NATO Secretary General Jens Stoltenberg has remained silent.

Stoltenberg has in the past not only remained silent amid the pattern of Turkish cross-border attacks, but has repeatedly defended Turkey, which has the second-largest army in NATO behind the United States.

Alongside Iraq’s government, the Arab League has also weighed in to condemn the new operation, which further threatens the northern Iraq border region’s civilians, especially the vulnerable internally displaced refugee population (IDPs).

END

6.Global Issues

CORONAVIRUS/GLOBE/UPDATE

World Sees Record Jump In New COVID-19 Cases, Deaths As Fatalities Near 450k: Live Updates

Summary:

  • Global case total tops 8.3 million
  • Deaths top 447,000
  • Tokyo reports 41 infections
  • World reports record jump in new cases, deaths
  • Beijing top epidemiologist says outbreak in the city has been contained
  • India reports record jump in new cases (12k+) as Fitch cuts outlook
  • Cali reports record 4k jump in new cases
  • Indonesia reports record jump, surpassing Singapore’s case total

* * *

As VP Mike Pence plays down the threat of a ‘second wave’ of SARS-CoV-2 sweeping across the US, the WHO revealed Thursday that an accounting of the total case numbers and deaths recorded on Tuesday (48 hours ago) amounted to 140,000 new cases, the highest number since the outbreak began. Another 6,800 deaths were also reported, the highest number since April, Nikkei Asian Review reports.

Nearly half of these new cases were recorded in Latin America, where Brazil, Mexico, Chile, Ecuador, Peru and other countries are all struggling with a surge of infections in the region as decisions by Brazil and Mexico to not take the outbreak seriously have apparently come back to haunt the entire region.

Circling back to Thursday, Tokyo reported 41 infections on Thursday, up from 16 a day earlier, while South Korea saw 34 new cases, down from 37 a day ago, not exactly a sign of another outbreak.

As the worldwide count of COVID-19 infections surpasses 8.25 million (JHU reported 8,320,288 as of early Thursday morning, along with 447,628 deaths), the death toll is on the cusp of passing 450k. Following a brief spat, the US and China have struck an agreement to allow four weekly flights between the two countries, easing a standoff over travel restrictions as Beijing blames travelers from abroad and imported seafood for some of the latest outbreak. Delta will resume passenger flights between Shanghai and Seattle next week, via Seoul, and once-a-week flights from Seattle and Detroit in July.

In more local news, as Beijing tightens restrictions on movement – to leave the city, one requires a clean bill of health showing no infection, and residential compounds have faced ‘partial’ lockdowns – party officials on Thursday announced a new initiative to improve cleanliness and hygiene at the city’s markets. A major wholesale market in Beijing’s Fengtai District has been blamed as the epicenter of the latest outbreak in the city, which has purportedly spread to the surrounding area.

“The epidemic is a mirror that not only reflects the dirty and messy aspects of wholesale markets but also their low level management conditions,” the Central Commission for Discipline Inspection says.

In other news, after testing hundreds of thousands of people in Beijing alone over the past week, city officials discovered just 21 cases on Wednesday. The Chinese CDC’s chief epidemiologist said after that Beijing’s outbreak has been brought under control, although new cases could emerge over the next few days.

A China CDC chief epidemiologist said that Beijing’s outbreak has already been brought under control, but warns that new cases will continue to emerge over the next two days. Wu Zunyou, the chief epidemiologist, explained Thursday during a press briefing that the appearance of new cases doesn’t necessarily mean they’ve just been infected. For example, the cases confirmed on Wednesday were likely infected a week ago, on June 12, he said.

Despite these reassurances, Chinese officials have continued to blame food imports for the latest outbreak, which they initially attributed to ‘European’ salmon (because the viral strains found in Beijing resembled strains from Europe, allegedly). After customs officials ramped up testing of imported food samples this past week, the government confirmed Thursday that all 32,174 samples of imported seafood, meat, vegetables, fruit and other related products had tested negative, according to a statement from China Customs.

Moving on to the major hotspots, India reported 12,881 new cases on Thursday, another record jump, bringing the country’s tally to 366,946. The total includes 12,237 deaths, up 334 from Wednesday morning. Ratings agency Fitch cut its outlook for India to “negative” from “stable” on Thursday based on the view that “the coronavirus pandemic has significantly weakened India’s growth outlook for this year and exposed the challenges associated with a high public-debt burden” – putting the world’s second-most populous country at risk of a junk rating.

Elsewhere in Asia, Indonesia reported another record jump, with 1,331 new coronavirus infections, taking its total number of cases to 42,762, surpassing Singapore. Health Ministry official Achmad Yurianto said 63 more deaths were also reported, bringing the nationwide total to 2,339, the highest coronavirus death toll in East Asia outside of China.

While the surge in new cases around the world is alarming, and justifiably so, Russia reported just 7,790 new cases on Thursday, its lowest daily rate of new infections in six weeks, bringing the nationwide total to 561,091. Another 182 people died over the last 24 hours, according to Russia’s coronavirus crisis response center, bringing the official death toll to 7,660, Al Jazeera reports.

California reported 4,000 new cases last night, a record total for the state, landing it back on the NYT’s list of states where cases are increasing. To be sure, the list has shrunk by just 20 states on Thursday, down from 23 earlier in the week, as Tennessee, Mississippi, Missouri and Kentucky moved to the list of states where cases are mostly the same.

Source: NYT

But as the US struggles with a rebound that  – as Dr. Scott Gottlieb pointed out earlier – is geographically limited in scope…

Scott Gottlieb, MD

@ScottGottliebMD

New Covid cases vary by region of the country, with hardest hit parts now showing biggest declines, while other regions expand. This probably reflects, in part, greater precautions being taken by people in regions with the worst, early impacts like New York. h/t @COVID19Tracking

View image on Twitter

…it’s important to remember that although the US has the most cases by far, the outbreak in Europe was much worse when adjusted for population density.

Coronavirus deaths worldwide per one million population as of June 18, 2020, by country

Source: Statista

 

Finally, as we reported last night, a senior Aussie official said yesterday that Australia may not reopen its borders to foreign travelers ever again.

END

SWEDEN/CORONAVIRUS

Sweden Says Herd Immunity “Surprisingly Slow” To Develop Despite Avoiding Lockdowns

Despite allowing its economy and schools to remain open during the coronavirus outbreak, Sweden is finding that the incidence of COVID-19 antibodies among its population is still surprisingly uncommon, suggesting that the country hasn’t yet reached the point of “herd immunity”, unlike other European countries which embraced much more drastic measures to stop the spread and the deaths.

Speaking to the nation during an interview on a Swedish radio station, Anders Tegnell, Sweden’s government epidemiologist and architect of its coronavirus containment strategy (a model that Goldman analysts claim wouldn’t work elsewhere in Europe or in the US), noted that the development of herd immunity is taking much longer than expected. Per Tegnell: “the trends in immunity have been surprisingly slow.” He also says “it’s difficult to explain why this is so.”

To be sure, Tegnell noted, there is “always a lag in all such measurements,” and the percentage of the population with detectable COVID antibodies is likely higher today than it was a few weeks ago, when a surveillance test carried out by a private Swedish company found that only 14% of Swedes have antibodies, compared to more than 50% of Italians in some of the hardest-hit parts of Northern Italy.

Critics of Sweden’s strategy have been more vocal lately now that the country’s death toll has surpassed the 5,000 mark, leaving Sweden with a mortality rate well above its Nordic neighbors.

As the country’s mortality rate has climbed in recent weeks, polls have reflected a growing dissatisfaction among Swedes with the government’s handling of the virus, though Tegnell’s approach remains broadly popular.

To be sure, Tegnell has acknowledged that some mistakes were made, and has said if he could do it over, he would have done some things differently, including directing more resources toward protecting the most vulnerable. But he never disavowed his approach, as some English-language media outlets have twisted his words.

For those who don’t understand the concept of ‘herd immunity’, Bloomberg created a helpful illustration. Even readers who think they understand how it works should probably take a look.

Sweden’s Parliament held a memorial for those who have lost their lives, or family members and friends, to the virus. “This moment is for all of those who have lost their work, their health, their lives,” Andreas Norlen, parliament’s speaker, said. “The parliament is mourning. Sweden is mourning.”

Tegnell and Swedish PM Stefan Lofven have insisted that Sweden’s strategy was the right choice. It was based on an assumption that the virus would be around for a long time – a fair assumption considering we don’t yet have a vaccine – rendering any short-term lockdowns effectively useless.

As the debate around what might constitute a more “sustainable” model for dealing with the outbreak rages, India is finding that even after 2 months of one of the most restrictive lockdowns on the planet, the virus came roaring back as soon as restrictions were lifted. So far, we haven’t seen a similar pattern emerge in Europe. But all of this just serves to remind us how little scientists really know for certain about the virus.

END

 

Michael Snyder discusses the days events and how these conflicts could lead to a world war.

(Michael Snyder)

World War When? China, India, North Korea, South Korea, Israel, & Turkey All Move Toward Conflict

Authored by Michael Snyder via TheMostImportantNews.com,

As if we didn’t have enough already going on in 2020, now we are facing the possibility that several regional wars may erupt.  China and India had both been pouring troops into a disputed border region, and now there has been an incident where they were actually killing each other.  On the Korean peninsula, North Korea just blew up “a joint liaison office” that it had used for talks with the South Korean government.  And in the Middle East, Turkey is warning of grave consequences if Israel goes ahead with a plan to annex portions of Judea and Samaria.  If a major regional war erupts at even one of these flashpoints, it will be another devastating blow for a global economy that is already imploding, and there is a very strong probability that the U.S. and other major western powers could be drawn into the conflict.

Right now, most Americans are focused on our internal problems, and so they are paying very little attention to the growing crisis on the border between China and India.

Both nations had sent substantial contingents of troops to an area of the border that has long been disputed, and a meeting that was supposed to defuse tensions actually resulted in soldiers killing one another

Chinese state media described the incident Monday night in the Galwan River valley where both countries have deployed troops in recent weeks as “the most serious clash between Chinese and Indian soldiers so far,” confirming casualties but offering no further details about them. Indian government sources speaking on the condition of anonymity told The Times of India that 20 Indian army personnel had died in the fighting.

American intelligence believes 35 Chinese troops died, including one senior officer, a source familiar with that assessment tells U.S. News. The incident took place during a meeting in the mountainous region between the two sides – both of which had agreed to disarm – to determine how the two militaries would safely withdraw their presences from the region.

This is the very first time in decades that Chinese and Indian troops have killed each other, and apparently very little shooting was involved

The meeting grew tense and resulted in a physical confrontation between the troops. According to the assessment, all of the casualties were from the use of batons and knives and from falls from the steep topography, the source says.

That sounds like a scene from an overly gory Hollywood war movie, but reportedly this actually happened.

Hopefully the leaders of the two nations will be able to cool tensions for a while, but the Chinese have a very long history of very bitter border disputes with their neighbors, and without a doubt China will continue to make attempts to exercise sovereignty over this area.

Meanwhile, tensions on the Korean peninsula have risen to a level that we haven’t seen in many, many years.  On Tuesday, North Korea actually blew up a building that had been used for negotiations with South Korea

North Korea has blown up a joint liaison office used for talks between itself and South Korea, the latest sign that ties between the two longtime adversaries are rapidly deteriorating.

North Korean state media reported that the four-story building, which is located in the town of Kaesong just north of the demilitarized zone that divides the two Koreas, was “completely destroyed by a “terrific explosion” at 2:50 p.m. local time.

That is certainly one way to make a statement.

And this comes just days after Kim Jong Un’s sister, Kim Yo Jong, had issued a very ominous warning

In a cryptic statement late Saturday, Kim Yo Jong vowed her country would “soon take a next action” against South Korea — a move she suggested would be carried out by the country’s military.

“By exercising my power authorized by the Supreme Leader, our Party and the state, I gave an instruction to the arms of the department in charge of the affairs with enemy to decisively carry out the next action,” Kim said in the state-run Korean Central News Agency.

All of a sudden, North Korea’s approach to relations with South Korea has dramatically shifted, and that shift has coincided with Kim Yo Jong taking a much more prominent role in national affairs.

I believe that there is much more going on in North Korea than we are being told, and Kim Yo Jong appears to favor a much more militant approach than what we have become accustomed to in recent years.

Over in the Middle East, the Times of Israel is reporting that the IDF is gearing up for a “state of war” as Israel prepares to annex portions of Judea and Samaria…

Just over two weeks before a possible Israeli annexation of some as-yet unspecified portion of the West Bank, the Israel Defense Forces is preparing for a wide range of scenarios for potential regional fallout — up to and including a large-scale wave of terror attacks — while still not being told exactly what the government has in mind.

The military is gearing up for possible massive unrest, Channel 12 reported Sunday evening, including what it is calling a potential “state of war” characterized by a Second Intifada-style onslaught of suicide bombing attacks.

This week, Israeli Prime Minister Benjamin Netanyahu once again made it clear that he does not intend to alter his plans, and that means that the process of annexation could start as soon as the beginning of July.

A few weeks ago, I wrote an entire article about how this could potentially spark a major war in the region, and Arab leaders continue to make it clear that there will be “consequences” if Israel goes through with this…

Israel’s plan to extend its sovereignty to the Jordan Valley, and parts of Judea and Samaria, will “destroy all hopes” for lasting peace in the Middle East, Turkey’s top diplomat said on Wednesday.

“If the occupying power [Israel] crosses the red line, we [Muslim countries] must show that this will have consequences,” Turkish Foreign Minister Mevlut Cavusoglu said during a special meeting of the Organization of Islamic Cooperation Executive Committee, according to Turkey’s Anadolu Agency.

We shall see what happens.

I think that Netanyahu is convinced that Donald Trump is probably going to lose in November, and so that means that he probably believes that he only has a window of a few months in which he could annex portions of Judea and Samaria with U.S. support.

It appears that Netanyahu is absolutely determined to move forward, and it also appears that Israel’s Arab neighbors are prepared to respond very forcefully.

In just a few weeks, missiles could start flying back and forth, and the entire Middle East could erupt in flames.

This is such a critical time, and let us pray for peace.

But without a doubt we are living during a time of “wars and rumors of wars”, and it certainly isn’t going to take much to unleash a major conflict.

END

Michael Every…the important events of the day.

a must read…

(Michael Every)

 

Rabobank: “Bolton’s Book Marks Another Step Deeper Into The US-China Cold War”

Submitted by Michael Every of Rabobank

Spy Kvetcher

Excuse the repeat pun today, but there was no need to publish in Australia to avoid the Official Secrets Act: just leak the contents to journalists and, hey presto, the Bloomberg headline (so far) is “Book of Bolton”. Which, it must be said, lands some heavy blows on this US president. The particular hits the media are flagging are that Trump allegedly pleaded with China’s Xi Jinping to help him get re-elected, and was fine with re-education/detention camps in Xinjiang.

On the re-election, was there anyone who did not think the US-China trade deal was anything but a re-election platform, either if it was adhered to (“So much winning!”) or if it were broken (“CHINA!”)? That is how (geo)politics works, warts and all. On Xinjiang the irony is that Trump just signed into law the Uighur Human Rights Act, which requires the imposition of US sanctions on Chinese officials. Beijing’s reply? “Strong indignation and firm opposition”; a call that the US must “immediately correct its mistakes” and stop using this law to “harm China’s interests and interfere in China’s internal affairs”; and “unless the US corrects itself, China will resolutely respond.”

Crucially, how do Democrats (and Republicans) who might have wanted to pivot back to China in a post-Trump era square the circle above? Whatever one’s take on the Book of Bolton, this marks another step deeper into US-China Cold War – unless the meeting in Honolulu between US Secretary of State Pompeo and China’s top diplomat Yang Jiechi went exceptionally well. Did they touch on the US sanctions that are also looming over Hong Kong, or legislation just proposed that would target the US green cards of Chinese CCP members?

Against a backdrop of geopolitical risk off, also consider this quote: “The explosive sound of justice that will continue to come out could go far beyond the imagination of those who make a noise about what could unfold.” No, it’s not Antifa, but North Korea’s state press. How about this one? Our military’s patience has run out. The military’s announcement that it is mulling a detailed military action plan should be taken seriously.” No, it’s not a Republican senator, it’s North Korea again. Yes, Pyongyang exports more rhetoric than any other product, and of the same low quality, but things are heating up – and neither Trump nor Denis Rodman are welcome as interlocutors.

After the serious heat on the India-China border this week, both sides are literally digging in: Indian press reports China has brought in hundreds of new soldiers and heavy construction equipment, while India is building its forces and an access road. The clash has already prompted serious economic fallout: India has banned China’s Huawei and ZTE from providing equipment to state-run telcos and may also prohibit private mobile firms from using them. They currently hold a 25% market share.

On the geopolitics/trade front the US will be moving to reset its WTO tariff schedule – meaning higher. That’s another step towards a scenario long discussed here: infinite USD liquidity at home via the Fed, but ring-fenced by politicians to Makes America Great Again. Expect others to follow that lead. USTR Lighthizer also stated a trade deal with the UK is closer than one with the EU, with agriculture a stumbling block. (Which implies it isn’t with the UK?) Further, the US has just walked away from discussions with the EU over a digital tax. The EU itself has announced plans to ring-fence its market from firms that are subsidised by states – which means China. (Or the UK if it tries to veer away from Europe’s idea of a level playing field?)

Meanwhile, the virus situation in the US and in Beijing provides little comfort. Neither do key data in New Zealand, where Q1 GDP was -1.6% q/q vs. -1.0% expected; and in Australia, where employment collapsed 228K vs and expected fall of 79K, taking the unemployment rate up to 7.1% from a revised 6.4%. With the Aussie border officially to stay closed until the end of the year, we can be assured that not a lot of tourism jobs are going to be back in a hurry.

With developed economies already at zero rates and doing mega-QE and/or yield curve control, there is still room for emerging markets to play catch-up. Brazil has just cut rates 75bp to 2.25% and is flagging that there is still room for more. So rates in Brazil are now where they were in the US a year ago. How the world changes.

Given we can be assured that USD FX reserves will be flat at best –unless China is going to collapse import growth while trying to hold exports steady, which will lead to a rapid geopolitical trade push-back– then the outlook for CNY is not good. Nor for the quality of investment that will be made (then again, they are hardly alone on that front).

Indeed, while the USD had been on the back foot for some time now due to the Fed’s I-never-met-an-asset-I-didn’t-like monetary policy, emerging markets are about to requiring the same kind of CTRL-P policy response. The FX see-saw will then swing the other way in many cases.

Then we will see who kvetches

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1233 DOWN .0009 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS//PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 106.89 UP 0.018 (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 1.2491   DOWN   0.0059  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3554 DOWN .0024 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  THURSDAY morning in Europe, the Euro FELL BY 9 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1233 Last night Shanghai COMPOSITE CLOSED UP 3.44 POINTS OR 0.12% 

 

//Hang Sang CLOSED DOWN 16.47 POINTS OR 0.07%

/AUSTRALIA CLOSED DOWN 0,94%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 16.47 POINTS OR 0.07%

 

 

/SHANGHAI CLOSED UP 3.44 POINTS OR 0.12%

 

Australia BOURSE CLOSED DOWN. 94% 

 

 

Nikkei (Japan) CLOSED DOWN 100.30  POINTS OR 0.45%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1722.80

silver:$17.52-

Early THURSDAY morning USA 10 year bond yield: 0.71% !!! DOWN 3 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.49 DOWN 4  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early THURSDAY morning: 97.17 UP 1 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing  THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.49% DOWN 5 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.02%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.51%//DOWN 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,38 DOWN 4 points in basis points yield from yesterday./

 

 

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

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.82% 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 THURSDAY

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

Euro/USA 1.1228  DOWN     .0015 or 15 basis points

USA/Japan: 106.75 DOWN .123 OR YEN UP 12  basis points/

Great Britain/USA 1.2424 DOWN .01261 POUND DOWN 126  BASIS POINTS)

Canadian dollar UP 19 basis points to 1.3563

 

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The USA/Yuan,CNY: AT 7.0902    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0786  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8578 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 4 IN basis points from WEDNESDAY at 0.70 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.48 DOWN 5 in basis points on the day

Your closing USA dollar index, 97.34 UP 19  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 THURSDAY: 12:00 PM

London: CLOSED DOWN 35.72 OR  0.57%

German Dax :  CLOSED DOWN 120.06 POINTS OR .97%

 

Paris Cac CLOSED DOWN 57.52 POINTS 1.15%

Spain IBEX CLOSED DOWN 98.40 POINTS or 1.32%

Italian MIB: CLOSED DOWN 150.49 POINTS OR 0.77%

 

 

 

 

 

WTI Oil price; 38.30 12:00  PM  EST

Brent Oil: 41.22 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    69.60  THE CROSS LOWER BY 0.16 RUBLES/DOLLAR (RUBLE HIGHER BY 16 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.44 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  38.86//

 

 

BRENT :  41.52

USA 10 YR BOND YIELD: … 0.70…down 3 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.48  down 6 basis points..

 

 

 

 

 

EURO/USA 1.177 ( UP 49   BASIS POINTS)

USA/JAPANESE YEN:107.27 DOWN .667 (YEN UP 67 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.48 UP 32 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2422 DOWN 128 BASIS  POINTS

 

the Turkish lira close: 6.8572

 

 

the Russian rouble 69.87   DOWN 0.11 Roubles against the uSA dollar.( DOWN 11 BASIS POINTS)

Canadian dollar:  1.3608 DOWN 28 BASIS pts

 

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

 

The Dow closed DOWN 39.51 POINTS OR 0.15%

 

NASDAQ closed UP 32.56 POINTS OR 0.33%

 


VOLATILITY INDEX:  32.56 CLOSED DOWN .91

LIBOR 3 MONTH DURATION: 0.316%//libor dropping like a stone

LIBOR/OIS:  .240%

TED SPREAD: (3 MONTH TREASURY VS LIBOR) =  .151%)

 

USA trading today in Graph Form

Dollar & Bonds Bid As Stocks See One Of Quietest Days Of The Year

If “Leading Indicators” lead, then the stock market has a problem…

But stocks barely budged (lifted a little late on after Trump said talking with Dems about extending PPP)… Nasdaq outperformed (up 5 days in a row), Dow lagged with S&P and Small Caps scrambling to hold unchanged…

As stocks saw one of their quietest days of the year (range-wise)…

Source: Bloomberg

The Dow fell further below its 50DMA…

“Most Shorted” Stocks drifted lower today but again a narrow range…

Source: Bloomberg

The Virus Fear trade dropped notable (less fear) at the open but rallied (more fear) into the close…

Source: Bloomberg

But while stocks were quiet, the dollar jumped (cable weakness), this was its 2nd biggest daily jump in over 2 months…

Source: Bloomberg

And Treasuries were bid (with 10Y yields back below 70bps)…

Source: Bloomberg

HY Bonds drifted lower once again…

Source: Bloomberg

Gold ended the day lower amid some notable vol…

WTI rallied up to $39 today…

Bitcoin drifted lower but also in a narrow range…

Source: Bloomberg

Finally, the decoupling between the market and the economy has never been wider…

Source: Bloomberg

As Bloomberg notes, earnings dropped in the first quarter by 16%, the biggest decline since 2008, and are poised to fall again in the second quarter because of business disruptions tied to the coronavirus. Yet the S&P 500 has recovered most of its 34% plunge after setting a record in February.

end

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Almost 46 Million Americans Have Now Filed For Unemployment Claims Since Lockdowns Began

Despite the hope-restoring nonfarm payrolls “recovery” and the over-hyped bounce in retail sales (ignoring the lack of ‘V’ in industrial production), in the last week 1.508 million more Americans filed for unemployment benefits for the first time (notably worse than the 1.29mm expected).

Source: Bloomberg

That brings the thirteen-week total to 45.7million, dramatically more than at any period in American history. However, as the chart above shows, the second derivative has turned the corner (even though the 1.508million rise this last week is still higher than any other week in history outside of the pandemic)

Continuing Claims did drop very modestly but hardly a signal that “re-opening” is occurring! And definitely not confirming the payrolls data…

Source: Bloomberg

Texas and Nevada showed the worst deterioration in the labor market as Florida and Oklahoma showed the best improvement in claims last week…

And as we noted previously, what is most disturbing is that in the last thirteen weeks, more than twice as many Americans have filed for unemployment than jobs gained during the last decade since the end of the Great Recession… (22.13 million gained in a decade, 45.714 million lost in 13 weeks)

Worse still, the final numbers will likely be worsened due to the bailout itself: as a reminder, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed on March 27, could contribute to new records being reached in coming weeksas it increases eligibility for jobless claims to self-employed and gig workers, extends the maximum number of weeks that one can receive benefits, and provides an additional $600 per week until July 31.

A recent WSJ article noted that this has created incentives for some businesses to temporarily furlough their employees, knowing that they will be covered financially as the economy is shutdown. Meanwhile, those making below $50k will generally be made whole and possibly be better off on unemployment benefits.

Additionally, families receiving food stamps can typically get a maximum benefit of $768, but through the increase in emergency benefits, the average five-person household can get an additional $240 monthly for buying food.

Finally, it is notable, we have lost 388 jobs for every confirmed US death from COVID-19 (117,717).

Was it worth it?

The big question remains – what happens when the $600 CARES Act bonuses stop flowing?

end
Leading USA economic indicators showing no V shaped recovery
(zerohedge)

No ‘V’ – US “Leading” Economic Indicators Barely Bounce After Biggest Crash In 60 Years

Great news America! Leading Economic Indicators ‘soared’ 2.8% MoM in May – the biggest monthly gain ever.

  • The biggest positive contributor to the leading index was jobless claims at 1.9
  • The biggest negative contributor was ISM new orders at -0.48

However, this bounce follows the record collapse in March and April…

 

Source: Bloomberg

However, for all those banking on a “V”-shaped recovery to match the market’s euphoria… it’s an epic fail…

If you look really carefully, you can see the “recovery“.

Isn’t this supposed to be leading?

end

iii) Important USA Economic Stories

Tucker Carlson’s ratings in the evening slot goes through the roof even surpassing Hannity.

(zerohedge)

Tucker Carlson Eclipses Competition As Ratings Go Through The Roof

Tucker Carlson is absolutely crushing it.

The Fox News host has surpassed Sean Hannity as the most-watched host in all of cable news, ending last week with an average total audience of four million viewers, according to Nielson (via Forbes).

Hannity trailed Carlson by 3.9 million viewers, followed by host Laura Ingraham with 3.5 million.

Carlson’s winning streak continued on Monday with 4.2 million viewersfollowed by Hannity at 3.7 million and Ingraham at 3.1 million.

TV News HQ@TVNewsHQ

TV RATINGS: Monday June 15, Fox News was America’s no.1 cable channel in total viewers. Top shows: @TuckerCarlson; @SeanHannity; @TheFive; @IngrahamAngle; @Maddow; @BretBaier and @MarthaMacCallum. https://www.adweek.com/tvnewser/monday-june-15-scoreboard-tucker-carlson-had-the-most-watched-show-in-all-of-prime-time-cable-tv/444780/ 

View image on Twitter PM – Jun 16, 2020

The spike in ratings comes after several advertisers, including T-Mobile and Disney, bailed on the Fox News host following comments he made about the Black Lives Matter protests in the wake of George Floyd’s death – saying “this may be a lot of things, this moment we are living through, but it is definitely not about black lives, and remember that when they come for you. And at this rate, they will.”

The boycott was met with swift rebuke from Carlson fans:

RD@real_defender

Tucker Carlson speaks the truth and we must never allow the left to silence him. Raise your hand if you stand with Tucker Carlson. 🙋‍♂️🙋‍♀️

Dorinda Sears@DorindaSears

Disney, T-Mobile, Papa John’s & Vari are pandering to mob lunacy. Boycott them. They pulled their commercials from Tucker Carlson because he spoke truth to power.

Black Lives Matter has become a hate America movement calling for rage not reason. Rage is killing reason. Stop it!

View image on Twitter

On Tuesday, Carlson slammed Google over their decision to demonetize Zero Hedge and threaten The Federalist over content posted in the comments section, arguing that people need to stand up against “unchecked, powerful” big tech companies.

TV News HQ@TVNewsHQ

Watch Tucker Carlson: Why we need to stand up against “unchecked, powerful” Big Tech companies

Embedded video

Looks like the cancel cult’s plan backfired

END

Banks have not kept their word as they are now firing workers

(zerohedge)

 

In March The Banks Vowed Not To Fire Workers; They Kept That Promise For 3 Months

In late March with markets  plunging and the economy grinding to a halt, the big banks scrambled to assure their employees that they would still have a job in the coming months amid the chaotic carnage. This is what Reuters reported at the time:

Big banks are postponing decisions about staff cuts as the coronavirus outbreak hits their businesses hard, with executives saying they are unsure how long the outbreak will hurt the economy and worried about being unprepared if business suddenly snaps back.

Morgan Stanley, Goldman Sachs, Wells Fargo, Deutsche Bank, HSBC and Citigroup were among those on Thursday reassuring staff privately or through public statements that job cuts are not on the table.

Banks are hesitant to make changes because the future is so uncertain, executives and external consultants told Reuters.

“You would be fibbing if you said we can really make guarantees or assurances to you,” said compensation consultant Alan Johnson in late March. “There’s a danger of making promises that you ultimately can’t keep. Nobody knows.”

He was wrong: with banks you know that any time they promise something, expect the opposite, and whether because the future is suddenly far more “certain” or just because they couldn’t stem the bleeding any longer, on Wednesday Europe’s largest banks resumed plans to cut thousands of jobs after putting dismissals on hold to “show support” for employees after the pandemic spread across the continent.

HSBC Holdings became the latest lender to restart reductions with a plan to eliminate as many as 35,000 jobs. CEO Noel Quinn put the plans on hold in April, only two months after announcing the initiative; he has now flip-flopped back. Europe and the U.S. are expected to face the brunt of HSBC’s job cuts.

And just to make sure that banker morale is crushed across most of Europe, where NIRP has made bank profitability a joke for the past 6 years, Deutsche Bank, Credit Suisse and UniCredit have also restarted job-cut plans.

The country’s 5,100 lenders and savings institutions declared dividends of $32.7bn for a quarter when they made profits of $18.5bn — 70% less than the same period the year before.

To think – if only the banks had been slightly less generous with their shareholders during the biggest financial crisis in generations and paid only 100% of their earnings out in dividends, most if not all of these jobs could have been saved.

END

Gig workers still have not received initial payments: they are desperate for money

(zerohedge)

 

“Money They’re Desperate For”: Many Gig Workers Still Can’t Get Their Unemployment Benefits

It has now been several months since the federal government has implemented monetary stimulus to try and alleviate the financial effect of the coronavirus pandemic and the ensuring economic shut down.

Back in the beginning of May – nearly 6 weeks ago – we highlighted how many gig workers were still waiting for their first round of unemployment benefitsToday, past the mid-point of June, many of those workers are still waiting, according to CBS Chicago.

And we wonder what is helping fuel the riots in the streets over the last few weeks…

The money appears to be on hold due to audits, according to gig workers that spoke to CBS.Meanwhile, the same workers say that it is “money they’re desperate for”. 

One worker, Bill Mylan, says the government has had his information “for months” but he still hasn’t received benefits. “We’ve missed out on two to three good months of making money already,” he said. He has had no income since March, which is when he first applied for unemployment.

He eventually reapplied through the state’s Pandemic Unemployment Assistance portal, because he’s considered a gig worker. That portal only just opened last month.

“I’ve been doing little odd jobs for my landlord just to get by; make ends meet. It says on my claim it’s a benefit payment control issue,” he said. When he called to ask about it, he got a recorded message simply saying “We are closed due to unforeseen circumstances.”

When he reached someone at the Illinois Department of Employment Security, they told him the holdup was due to an audit.  “I don’t understand why now, the last step, is all of a sudden to do an audit when we’ve been in the system,” he said.

CBS reached out to IDES who told them the Benefit Payment Control division is within their fraud division.

An IDES spokesperson said: “Each claim filed in the PUA system goes through a check based on the responses provided by the claimant. The PUA system will also check with the regular unemployment system to determine if the claimant is eligible for regular unemployment benefits.”

They continued: “Per federal guidelines, a claimant will receive benefits from the regular unemployment system if they have been determined eligible for regular benefits. The Benefit Payment Control (BPC) division is the IDES fraud division. When a case is reported for fraud, the BPC will step in to investigate and make a determination after assessment and investigation. This unit it performing the job duties as required.”

 

END
Atlanta Police calls out sick on masse in protest to that Atlanta officer charged with killing Rayshard Brooks
(zerohedge)

Atlanta PD Calls Out Sick En Masse As Former Officer Charged With Murder In Killing Of Rayshard Brooks

In the hours after the Fulton County DA charged a former Atlanta Police Department officer with murder – and another with aggravated assault – after he shot and mortally wounded 27-year-old Rayshard Brooks following a stop, the Atlanta Police Department reported that it experienced a “higher than usual” volume of officer call-outs.

Apparently, the department received enough complaints claiming cops were just walking off the job that its social media department had to tweet out a clarification: “The department is experiencing a higher than usual number of call-outs with the incoming shift. We have enough resources to maintain operations and remain able to respond to incidents.”

Atlanta Police Department

@Atlanta_Police

Earlier suggestions that multiple officers from each zone had walked off the job were inaccurate. The department is experiencing a higher than usual number of call outs with the incoming shift. We have enough resources to maintain operations & remain able to respond to incidents.

The department is currently operating without a full time police chief since Erika Shields resigned in the wake of the Brooks’ fatal shooting, despite the praise she received for her handling of the George Floyd protests.

Earlier on Wednesday, Fulton County District Attorney Paul Howard announced 27-year-old Garrett Rolfe, who was fired Saturday after shooting Brooks twice in the back during a scuffle outside a Wendy’s restaurant, will face felony murder and 10 additional charges, and could receive the death penalty if convicted of the murder charge. Devin Brosnan, 26, the other officer who responded, will face three charges, including aggravated assault, and will testify against Rolfe.

Keep in mind, the “assault” Brosnan is being charged with is related to the struggle both officers had with Brooks as he resisted arrest.

END
NBC is facing considerable backlash after pushing google to demonetize conservatives and their sites, including Fox, Washington Examiner/Turning Point USA and others..
(zerohedge)

NBC Facing “Considerable Backlash” After Pushing Google To Demonetize Conservatives, Trump Tweets

During a Thursday morning flurry of tweets that broke a period of unusually light twitter activity, President Trump took aim at two of his favorite targets – NBC News, and Google – and slammed both companies for their ‘collaboration’ on trying to demonetize conservative news sites.

Trump tweeted that NBC is facing “considerable backlash” for a reporter’s recent “collaboration” with far-left groups in the UK to try to get two media organizations, including Zero Hedge, demonetized on Google’s platform.

Donald J. Trump

@realDonaldTrump

.@NBCNews is facing considerable backlash for pushing @Google to remove Conservative sites from its ad platform.

Trump’s tweet follows the introduction of a Senate bill yesterday that aims to stop social media platforms from discriminating against conservative voices by threatening the liability shield they enjoy as neutral ‘platforms’ that aren’t held responsible for the speech on the platforms. The DoJ has pitched in by releasing some guidelines for the Senators to follow.

Prior to that, Trump signed an executive order staking out his administration’s view and interpretation on Section 230 after Twitter decided to affix warning labels to several tweets.

end

Roberts sides with the left leaning Supreme Court Justices blocking the ending of DACA but only on a technicality which Trump can correct

(zerohedge)

Supreme Court Blocks Trump From Ending DACA, Shielding Illegal Immigrants From Deportation

In a blow to President Trump’s immigration agenda, the Supreme Court on Thursday ruled to block the Trump administration from ending the Obama-era Deferred Action for Childhood Arrivals (DACA) program, which protects nearly 700,000 young illegal immigrants from deportation.

In a split ruling which will keep the program open to an estimated 1.3 million non-citizens, the justices said the Trump administration failed to adequately justify terminating the program. In other words – struck down on a technicality that the Trump administration can correct.

Kimberly Robinson

@KimberlyRobinsn

The decision is 5-4 with the Chief Justice writing for the majority, which includes Justices Ginbsurg, Breyer, Sotomayor, Kagan. In dissent is Justices Thomas, Alito, Gorsuch, and Kavanaugh.

Kimberly Robinson

@KimberlyRobinsn

The Court decision is based on the Administrative Procedure Act, not equal protection, which means the Trump administration could go back and fix the mistake and undo DACA.

Trump announced last September that it would rescind DACA – a decision which was challenged by multiple federal courts by Democratic state attorneys general, along with several organizations and individuals.

Remember how worried the left was that Trump’s Supreme Court picks were going to usher in a draconian era – stripping gay rights and punishing illegal immigrants? Between this and last week’s LGBTQ decision, not so much.

END
Not good:  Trump is hiding 5 billion dollars in the Paycheck Protection operation
(Mish Shedlock)

Is Trump Hiding A $5 Billion Paycheck Protection Slush Fund?

Authored by Mike Shedlock via MishTalk,

More sleazy details have emerged in regards to why the Trump administration wants to hide small business loan details.

Yesterday I asked Why Does Trump Want to Hide Who Took Small Business Loans?

In addition to members of Congress wanting to hide loans they received, Wall Street on Parade has uncovered more sleazy details.

Even though the loans are guaranteed against losses by the SBA, the Federal Reserve launched its own program, called the Paycheck Protection Program Liquidity Facility, to reimburse lenders who make these loans. So far, the Fed has reimbursed $57 billion of these loans as of June 10, out of total loans approved by the SBA of more than $500 billion.

The odd thing about those Fed reimbursements is that a stunning $5.3 billion in reimbursements, or 9 percent of the $57 reimbursed by the Fed, have gone to a tiny New Jersey bank, Cross River Bank. According to the SBA, as of May 30, there were 5,454 lenders that had made loans in the PPP program. Cross River Bank is just one of those 5,454 lenders and yet it received 9 percent of the Fed’s reimbursements. How does that make any sense?

According to the FDIC, Cross River Bank has only one branch office and has been around for just 12 years. The $5.3 billion that the Fed has reimbursed to Cross River Bank is more than twice its total assets of $2.5 billion as of March 30. Cross River Bank has made more than 50 percent of the dollar amount that Wells Fargo has made in PPP loans but it has only 250 employees rather than the 250,000 employees working for Wells Fargo to review and process these PPP loans.

The Secret Bank Behind The Fintech Boom

On December 31, a Forbes investigation revealed The Secret Bank Behind The Fintech Boom.

Cross River is not a typical community bank. There are no tellers here, or ATMs or safe deposit boxes. There are startup touches—a kitchenette stocked with LaCroix sparkling water, gourmet coffee and a game room.

Unlike in banks of yesteryear, virtually all Cross River’s lending officers aren’t human beings. They are apps. Cross River’s loans originate mostly from 15 or so buzzy venture-capital-backed financial technology startups, so-called fintechs, that go by names like Affirm, Best Egg, Upgrade, Upstart and LendingUSA. The fintechs provide the customers; Cross River provides the licenses and infrastructure. It holds 10% to 20% of each loan it issues, and the massive volume of fintech loans has propelled Cross River to $2 billion in assets, up from $100 million a decade ago.

Once you get beyond the slick iPhone apps and inflated tales of big-data mining and AI-generated lending decisions, you realize that many fintechs are nothing more than aggressive lending outfits for little-known FDIC-insured banks.

Dirty Details

Wall Street on Parade discusses more Dirty Details.

Despite originally promising transparency, U.S. Treasury Secretary Steve Mnuchin is now stonewalling Congress on releasing a list of the recipients.

Congress sold the plan to the public on the basis that the loans would go to small businesses with less than 500 employees. The funds were to be predominantly used to keep workers employed and allow the businesses to survive the coronavirus shutdowns.

Instead, our search of filings at the Securities and Exchange Commission reveals that dozens of debt zombie companies that trade on Nasdaq got the loans. Dozens of publicly-traded companies with large credit lines from banks got the loans. Dozens of companies with a lot more than 500 employees got the loans. It’s beginning to look like tens of billions of dollars in PPP loans were simply funneled out the door rapidly with little oversight into who was getting the loans.

Meanwhile, Back in Ohio

Meanwhile, back in Ohio, Nearly 24,000 Ohioans Told to Repay Unemployment Checks.

Marnie Behan got a surprising message last month from Ohio’s Department of Job and Family Services about her ongoing unemployment payments. Instead of sending her next unemployment payment, they said she needed to pay the state back.

The bill was almost $3,000. She had 45 days to repay the money, or the case would be sent to the Ohio Attorney General.

There are 24,000 accounts like that of Marnie Behan, just in the state of Ohio.

Transparency? Ha!

Taxpayers funded this $500 billion slush fund. We have a right to know how the money was spent.

Moreover, Treasury Secretary Steve Mnuchin and promised transparency.

Slush Fund Rules

There are rules for the small fry, determined in arrears, and rules for the big tuna also determined in arrears.

Whereas the new rules for the little guys demand repayment for $3,000, the new rules for the big tuna will hide who got hundreds of billion of dollars.

Now for obvious reasons, the Trump administration wants to sweep this all under the rug and hide it.

 END
Kentucky
wow! this state has got some problems: benefits are not being paid as we witness massive unemployment lines
(zerohedge)

Labor Recovery Stalls, Benefits Not Paid, Massive Unemployment Lines In Kentucky

As the US labor market recovery stalls, the second wave of layoffs is underway. The overhyped nonfarm payrolls “recovery” and bounce in retail sales (ignoring the lack of ‘V’ in industrial production), was reversed on Thursday morning when 1.508 million more Americans filed for unemployment benefits.

With plunging demand and fractured supply chains – companies are not hiring at the pace that would support President Trump’s and Wall Street’s claims of a V-shaped “rocket ship” recovery in economic growth and employment. Leading indicators are showing the economy barely bounced after the most significant crash in six decades.

Any green shoots observed in the last month will be stifled by stubbornly high joblessness through the summer, resulting in slower recovery and the shape of the recovery resembling a “U” or “L.”

The recent sightings of green shoots for economic growth are going to fade in a hurry if workers can’t return to the jobs they lost during the pandemic recession,” Chris Rupkey, chief economist at MUFG in New York, told Reuters

The second wave of layoffs has already started in industries indirectly affected by the virus shutdowns. Another acceleration in layoffs is expected next month when the government’s Paycheck Protection Program expires.

The thirteen-week initial jobless claims have surged to an astonishing 45.7 million. So far, about 29 million people are collecting unemployment insurance, while millions of others have yet to receive any checks.

The cost of late unemployment benefits will not just damage the labor force and recovery – but has already resulted in thousands of people swarming a government building in at least one state – pleading for help as the economic depression crushes their household finances.

This is not a Trump rally at the Kentucky Capitol in Frankfort on Wednesday – but a massive unemployment line, filled with people who have filed but are unable to get their unemployment insurance checks.

Daniel Desrochers

@drdesrochers

The state police said it will be an 8 hour wait from the back of the line to speak to a state employee about unemployment.

Embedded video

Some folks waited ten hours at the Kentucky Career Center to speak with someone about finding assistance with their unemployment claim.

An eerie comparison of unemployment lines in the Great Depression and ones in Kentucky.

More pictures of the unemployment lines in Kentucky:

Economic depression doesn’t discriminate – it affects everyone in the bottom 90%.

Gilbert Corsey

@gcorsey

Happening Now: hundreds in line waiting hours for in person help with KY unemployment. @GovAndyBeshear says 52k claims unapproved from March-May. The state started in person assistance again Tuesday as a group was coming to the Capitol to protest delays in UI benefits @WDRBNews

View image on TwitterView image on TwitterView image on TwitterView image on Twitter

Mike Fussell WAVE3@MikeFussellWAVE

This is only half of the line of people waiting to have unemployment claims resolved at the Capitol today

View image on Twitter

Kentucky is not the only state overwhelmed with hundreds of thousands of unemployment insurance benefits claims. A backlog in claims has been observed in many other states as processing capacity has been stretched thin. Some of the most recent backlogs to be reported this week have been in Maryland, Washington state, Oregon, Michigan, New Jersey, Virginia, and Wisconsin.

Headlines in the last couple of days show some Americans are starting to protest several state governments’ broken unemployment states.

As the recovery is set to be a long journey, some Americans will have to get use to unemployment lines and breadlines.

ene

iv) Swamp commentaries)

Bolton Said He Had ‘No Problem’ With Lying In 2010 Interview, Trump Says Former NSA Sabotaged North Korea Talks

President Trump’s political opponents have once again joined forces with the mainstream American press to “leak” passages from a book penned by former NSA John Bolton as the White House battled to prevent its release, then play up the most salacious claims from the 550+ page tome.

As both sides struggle to propagate their own conflicting narratives, Bolton’s reputation as a fanatical neocon and one of the most disliked, and distrusted figures in the GOP political firmament – GWB couldn’t get the man through a senate confirmation when he tried to appoint him ambassador to the UN, and reporters claimed that Bolton was quickly sidelined after joining the administration – is coming back to bite him.

And as oppo researchers dig through a lifetime of cable television appearances and other public comments, they’re already finding a wealth of comments where Bolton claimed that he wouldn’t hesitate to lie to protect America’s national security interests, even in one case citing a famous Churchill (racist) quote claiming truth must if necessary be protected by lies.

Watch the clip below and hear it for yourself:

Trump War Room – Text TRUMP to 88022 & get the APP

@TrumpWarRoom

John Bolton in 2010: “If I had to say something I knew was false … I would do it.”

Embedded video

Meanwhile, a furious President Trump has continued his twitter assault on his one-time lacky: “When Wacko John Bolton went on Deface the Nation and so stupidly said that he looked at the “Libyan Model” for North Korea, all hell broke out. Kim Jong Un, who we were getting along with very well, went “ballistic”, just like his missiles – and rightfully so…He didn’t want Bolton anywhere near him. Bolton’s dumbest of all statements set us back very badly with North Korea, even now. I asked him, “what the hell were you thinking?” He had no answer and just apologized. That was early on, I should have fired him right then & there!”

It’s especially notable since North Korea’s latest belligerent actions have essentially unraveled all of the “progress” made during the Trump Administration, even as US intelligence has repeatedly warned that NK never had any intentions of nuclear disarmament.

Donald J. Trump

@realDonaldTrump

When Wacko John Bolton went on Deface the Nation and so stupidly said that he looked at the “Libyan Model” for North Korea, all hell broke out. Kim Jong Un, who we were getting along with very well, went “ballistic”, just like his missiles – and rightfully so….

Donald J. Trump

@realDonaldTrump

….He didn’t want Bolton anywhere near him. Bolton’s dumbest of all statements set us back very badly with North Korea, even now. I asked him, “what the hell were you thinking?” He had no answer and just apologized. That was early on, I should have fired him right then & there!

Trump also slammed it as a “compilation of lies and made up stories.”

Donald J. Trump

@realDonaldTrump

Bolton’s book, which is getting terrible reviews, is a compilation of lies and made up stories, all intended to make me look bad. Many of the ridiculous statements he attributes to me were never made, pure fiction. Just trying to get even for firing him like the sick puppy he is!

Media outlets have seized on claims that Trump pleaded with President Xi for political help during trade deal talks, and that he allegedly offered to back off on China’s most horrifying human rights abuses (the detention of 1 million minority-Muslim Uyghurs). Ironically, the ‘Book of Bolton’ leaked just as Trump signed into law a bill targeting senior Chinese officials involved with the Muslim detention and mass surveillance program in the far western state of Xinjiang, a devastating financial blow to these individuals that could lead to many of their (probably considerable) assets outside of China being frozen or seized.

Trump has already slammed Bolton in an interview late last night, where he accused the former NSA of breaking the law.

Beijing has demanded that Trump reverse course immediately, and is threatening to retaliate.

As Rabobank’s Michael Every told clients in one of his latest notes: “Whatever one’s take on the Book of Bolton, this marks another step deeper into US-China Cold War – unless the meeting in Honolulu between US Secretary of State Pompeo and China’s top diplomat Yang Jiechi went exceptionally well. Did they touch on the US sanctions that are also looming over Hong Kong, or legislation just proposed that would target the US green cards of Chinese CCP members?”

Of course, most of the twitter users screaming about Trump committing treason probably aren’t even aware that Trump signed the Uyghurs bill.

end

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

Powell to House Financial Services Committee: “It would be a concern if Congress were to pull back from the support that it’s providing too quickly… Our [ETF] purchases will be at the bottom end of the range…”  Powell acknowledged that there is a US coin shortage; but he claims it’s temporary.

Got change? There’s a coin shortage because of coronavirus stopping the flow of physical currency

The topic came to light after Rep. John Rose, R-Tenn., said banks in Tennessee are reporting that they’re receiving smaller-than-usual sums of coinage each week… “… The places where you’d go to give your coins and get credit … those have not been working,” Powell said…

https://www.cnbc.com/2020/06/17/got-change-theres-a-coin-shortage-because-of-coronavirus-stopping-the-flow-of-physical-currency.html

We’ve exercised a soft hoarding of US coins since the Crisis of 2008.  Why?  In a severe crisis, metal has more value than paper.  Pre-1982 pennies are hoarded because they are 95% copper and 5% zinc.  A pre-1982 penny is worth 2.2 cents.  The 1982-2014 pennies were hoarded when zinc prices soared in 2006; they are 97.5% zinc and 2.5% copper.  They are worth .006 now.  When nickel prices soared in 2006-2007 and in 2011, they were hoarded.  1946 to 2014 nickels are 75% copper, 25% nickel.  This nickel is worth a tad more than 4 cents now.  http://www.coinflation.com/coins/1909-1982-Lincoln-Cent-Penny-Value.html

Coin value calculator at:  https://www.nbc12.com/story/17003531/jens-coin-story/

The Powell rally ended 25 minutes before the VIX Fix, which was also expiry for the VIX Index.  It was an unusually quiet VIX Fix expiration.  After the VIX Fix, a modest rally materialized; but it was short lived.  ESUs and stocks then rolled over and declined as they headed into the final hour of trading.  The decline accelerated when the final hour appeared.  Too many traders were long expiry June calls.  ESUs and stocks tumbled to session lows.

Suburban New Jersey Homes Headed for Biggest Price Increase Since 2005

  • Lockdown driving the search for space outside cramped NYC [Escape from NYC]
  • Buyers are seeking big houses with yards and room for offices

https://www.bloomberg.com/news/articles/2020-06-17/suburban-n-j-homes-headed-for-biggest-price-increase-since-2005

Die Welt’s @Schuldensuehner: The end of capitalism as we know it: G3 Central Banks (Fed, BoJ, ECB) have pumped more than $5tn into the markets since March. They bought all kinds of assets, a kind of nationalization through the back door?

GOP’s Tom Cotton [Senator – AR] Says Twitter Threatened to Lock Account over Tweet

Republican Senator Tom Cotton said a “low-level” Twitter Inc. employee called his office several weeks ago and threatened to permanently lock his account unless he deleted a tweet that advocated using the military to quell unrest throughout the U.S. and used the term “no quarter.”

   “We asked for an explanation of why that was and it was not really forthcoming. They cited a policy that didn’t apply to my situation,” Cotton said in Fox News interview early Wednesday…

https://www.bloomberg.com/news/articles/2020-06-17/gop-s-cotton-says-twitter-threatened-to-lock-account-over-tweet

Tucker Carlson: Google and Big Tech are the chief threat to our liberties – and no one is protecting us [Calling out cowardly Republicans again!]     https://www.foxnews.com/opinion/tucker-carlson-google-and-big-tech-monopolies-are-the-chief-threat-to-our-liberties-and-no-one-in-congress-is-protecting-us

@seanmdav: After being criticized by Tucker Carlson for refusing to hold monopolistic tech oligarchs accountable for operating as the left-wing speech police, Collins [GOP Rep. – GA] now says he favors stripping Section 230 protection for Big Tech.

@RepDougCollins: I’m glad to see Attorney General Barr taking action to roll back Section 230 immunity.  Google — along with every other big tech company — shouldn’t be allowed to get away with content filtering or censorship. Section 230 must be repealed…

Justice Department to Propose Limiting Internet Companies’ Protections

Action follows President Trump’s executive order seeking to weaken broad immunity enjoyed by Facebook, Twitter and other platforms

https://www.wsj.com/articles/justice-department-to-propose-limiting-internet-firms-protections-11592391602

Hertz halts plan to sell $500 million in shares after SEC review

https://www.cnbc.com/2020/06/17/hertz-halts-plan-to-sell-500-million-in-shares-after-sec-review.html

Today – We’ve been highlighting the manipulation of SPY June calls for tomorrow’s expiration.  There is an even more massive amount of SPX (S&P 500 Index) options that are expiring. ZH: Goldman’s Rocky Fishman writes that from a purely “headline” perspective, June’s expiration is massive with $1.8 trillion in SPX options expiring on the 19th making it the third-largest non-December expiration on record, in addition to $230bln of SPY options and $250bln of options on SPX and SPX E-mini futures.

https://www.zerohedge.com/markets/turbulence-ahead-2-trillion-june-op-ex-massive-76-billion-pension-selling-deck

Due to the volatile swings in the S&P 500 Index, the vast majority of June options are out of the money.  So, the impact of June calls on expiration is not calculable.  It will depend on a few determined manipulators.  However, “pension selling will be substantial, as a result of the outperformance of stocks over bonds this quarter… According to Goldman, as of the close on Tuesday, the desk’s theoretical model estimates a net $76bn of equities to sell, the third largest estimate on record, only behind Mar 2020 and Dec 2018, both of which happened to be extremely volatile periods…” – Zero Hedge

ESUs will adjust to Initial Jobless Claims in the hour before the NYSE opens.  If claims are worse than expected, traders are likely to buy the dip.

Atlanta PD Officers Walking Off Job Tonight — Murder Charges Filed by Fulton County DA

Reports breaking now that large numbers of Atlanta PD officers quit responding to radio calls earlier this evening, and now large numbers have reportedly driven to their precincts, turning in the keys, and gone home.  The story below has to do with the decision by Fulton County DA Paul Howard to file felony murder charges against Officer Garret Rolfe in connection with the shooting on Friday night of Rayshard Brooks in the parking lot of a Wendy’s restaurant after Brooks fought with two officers, took a taser away from one of them, and then fired the taser at Off. Rolfe as was chasing Brooks…

     But election problems are only one concern facing Howard.  He’s currently under criminal investigation by the Georgia Bureau of Investigation (GBI) based on an investigative report concerning $250,000 that was sent by the City of Atlanta to Howard supposedly for use in crime prevention programs.  As it turned out about $175,000 — maybe more since records are incomplete — of that money ended up in DA Howard’s paycheck.  This investigation only became public in early May…

https://www.redstate.com/shipwreckedcrew/2020/06/17/pathetic-murder-charges-filed-against-atlanta-pd-officer-rolfe-made-more-sickening-by-das-comments/

@Cernovich: After mass walkouts among members of the Atlanta police department, the mayor began requesting assistance from mutual aid jurisdictions. Officers from these jurisdictions are refusing to respond to any call other than one for an officer down.

GOP Rep. @MarkCongressGA7: Heard 911 calls are now going to voice mail with the recording, “Don’t call us, we’ll call you.”

@JackPosobiec: How does the Left protest cops walking off the job?

@ByronYork: In the Rayshard Brooks case, the Georgia Bureau of Investigation says it was surprised that the DA filed charges today before GBI finished its investigation. ‘We were not consulted…’ http://ow.ly/s8MW50AaOeW

Obama administration DOJ official tells Senate panel that all American institutions are racist

Vanita Gupta told the Senate Judiciary Committee that racism is something she sees in all aspects of American life. “I don’t think there is an institution in this country that isn’t suffering from structural racism given our history,” she said… A stunned Senator John Cornyn (R-Texas) responded, “Wow.”

You lost me when you wanted to take the acts of a few misguided perhaps malicious individuals and ascribe that to all Americans,” he continued…

https://justthenews.com/government/congress/obama-administration-doj-official-tells-senate-panel-all-american-institutions

 

Tucker Carlson Is Most-Watched Host in Cable News for Last Week

Last week, Carlson drew criticism for remarks he made about Black Lives Matter, saying “this may be a lot of things, this moment we are living through, but it is definitely not about black lives, and remember that when they come for you. And at this rate, they will.”…

https://www.forbes.com/sites/markjoyella/2020/06/16/tucker-carlson-takes-title-as-most-watched-host-in-cable-news/

 

ABC: Progressives put Biden on warning — again

The fights that would have been … never really went away.

    “You cannot win the election without the enthusiastic support of Black voters, and how you act in this moment of crisis will play a big role in determining how Black voters — and all voters concerned with racial justice — respond to your candidacy,” the coalition of some 50 organizations wrote to Biden. Biden has resisted getting drawn into a debate over “defund the police,” and has also hesitated on supporting reparations for black Americans…   https://abcnews.go.com/Politics/note-progressives-put-biden-warning/story

 

Philly Inquierer’s @JuliaTerruso: Biden will stop in Carlette’s HideAway Sports Bar today in Landsdowne to talk about reopening the economy. Campaign staff putting up signs on the bar ahead of his arrival.  [Biden’s 1st public appearance in ? is at a tiny sports bar named ‘Hideaway’!  You can’t make this up!  Team Joe wants a tiny venue so they are not embarrassed by the crowd size vs. DJT in Tulsa on Saturday.  Reportedly >1 million have requested tix]  https://twitter.com/JuliaTerruso/status/1273285434811060225

 

Fox’s @AllieRaffa: @JoeBiden slams Trump for Tulsa, OK rally Saturday: “He’s ready to do it, as long as, notwithstanding CDC guidance, as long as the people showing up sign a waiver promising not to hold the campaign liable…Trump’s failure to fight the coronavirus with the same energy and focus that he uses to troll his enemies on Twitter has cost us lives — and is putting hope for an economic recovery at risk.”

 

@TrumpWarRoom: Sleepy Joe was extra sleepy today, and once again hid from reporters’ questions.

Why is his staff keeping Biden from answering questions?… [Biden exited, taking no questions, to incredibly sparse applause.  Video at link] https://twitter.com/TrumpWarRoom/status/1273331288263536640

 

Pelosi Criticizes Trump for Planning Rally Even Though She Attended Protest in DC Two Weeks Ago    https://www.thegatewaypundit.com/2020/06/nancy-pelosi-criticizes-trump-planning-rally-even-though-attended-protest-dc-two-weeks-ago/

 

House Dem claims religious liberty is a ‘bogus term,’ ‘pretext for discrimination’

Rep. Sean Patrick Maloney, D-N.Y., accused conservatives of using the “bogus” term “religious liberty” in order to hide their desire to discriminate…   https://www.foxnews.com/media/maloney-religious-liberty-bogus

 

Aunt Jemima ‘racial stereotype’ gets the axe amid Black Lives Matter backlash  https://trib.al/XvDKq8y

 

Patricia Dickson @Patrici15767099: Nancy Green, (aka Aunt Jemima) was born into slavery. She was a magnificent cook. When she was ‘freed’ she rolled her talent that into a cooking brand that GM bought & used her likeness.  She died in 1923 as one of America’s first black millionaires. https://en.wikipedia.org/wiki/Nancy_Gre

 

@guypbenson: Dick Durbin — the second ranking Senate Democrat — just referred to Senator Tim Scott’s [Black Republican] bill as a “token” approach, in a floor speech. Subtle!

     @SenatorTimScott in response: Y’all still wearing those kente cloths over there @SenatorDurbin?

 

USA/Today: Fact check: Yes, Kente cloths were historically worn by empire involved in West African slave trade – On June 8, Democratic members of Congress wearing kente cloths and face masks knelt in Emancipation Hall to memorialize Black lives lost to police brutality…  Kente cloth was worn by the Ashanti… The Asante supplied British and Dutch traders with slaves in exchange for firearms…  https://www.usatoday.com/story/news/factcheck/2020/06/16/fact-check-kente-cloths-have-ties-west-african-slave-trade/5345941002/

 

Sen. Scott unveils police reform bill: U.S. ‘not racist country,’ but racism exists ‘in’ the nation

Sen. Graham to Democrats: ‘You had 8 years under President Obama’ to pass police reform.

https://justthenews.com/government/congress/sen-scott-unveils-police-reform-bill-we-are-not-racist-country-theres-racism

 

@ChadPergram: GOP Sen Tim Scott on the Senate flr. Takes issue with Durbin calling Scott’s police reform bill “a token process.” Says Durbin’s words “hurts us all.” Says it “hurts” to hear language like that, on the 5th anniversary of the Charleston church shooting.  GOP SC Sen Scott now on the flr, talking about the church shooting in Charleston 5 yrs ago today. Is fighting back tears. Says “for me, and so many South Carolinians, this is a hard day.”

 

Why Do They [ex-generals] Oppose Trump? – Follow the Money

Mattis sits on the board of directors of General Dynamics… Marine Corps Kelly was on the board of DC Capital Partners – an investment firm. DC Capital Partners’ website shows investments in companies like SC3, proving “high-end mission support” to the federal government in “defense” and “intelligence” and IDS a “provider of integrated security solutions to the U.S. Government in support missions worldwide.”…

     Mullen sits on the board of directors of Sprint/Nextel, General Motors, Afiniti and is President of MGM Consulting, a company that provides counsel to global clients on national security and geo-political matters…Stavridis is an operating executive with Carlyle Group and the chair of the board of counselors at McLarty Associates…

    In 2006, Myers joined the board of directors of Northrop Grumman Corporation, one of the world’s biggest defense contractors. He is also now a director on the board of United Technologies Corporation (UTC). UTC merged with Raytheon earlier this year…

http://andmagazine.com/talk/2020/06/15/why-do-they-oppose-trump-follow-the-money/

Well that is all for today

I will see you FRIDAY night.

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