JUNE 24//GOLD DOWN $1.50 TO $1765.00//SILVER DOWN 31 CENTS TO $17.64 WITH ONE DAY TO GO BEFORE COMEX EXPIRY//OTC/LMBA OPTIONS EXPIRE ON JUNE 30//COMEX GOLD TONNAGE STANDING ALMOST 169 TONNES//CORONAVIRUS UPDATES//CANADA GETS ITS TRIPLE A RATING CUT TO AA//HUGE NUMBER OF SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1765.00  DOWN $1.50   The quote is London spot price

 

 

 

 

 

Silver:$17.64//DOWN 31 CENTS  London spot price

COMEX EXPIRY TOMORROW

LBMA/OTC OPTIONS EXPIRE JUNE 30//

 

THUS THE REASON FOR THE WHACK IN GOLD/SILVER TODAY.

Closing access prices:  London spot

i)Gold : $1762.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.50//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

AUG GOLD:  $1774.20  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE JUNE: $9.20

 

CLOSING SILVER FUTURE MONTH

 

SILVER JULY COMEX CLOSE;   $17.65…1:30 PM.//SPREAD SPOT/FUTURE JULY//18.07  :  1 CENT  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 $2600. usa per oz

and silver; $29.00 per oz//

 

LADIES AND GENTLEMEN: YOU ARE NOW WITNESSING FIRST HAND THE DIFFERENCE BETWEEN PAPER GOLD/SILVER AND THE REAL PHYSICAL STUFF!!

 

COMEX DATA

 

 

 

JPMorgan has been receiving gold with reckless abandon and sometimes supplying (stopping)

today RECEIVING:  10/45

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,772.100000000 USD
INTENT DATE: 06/23/2020 DELIVERY DATE: 06/25/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 H MORGAN STANLEY 26
661 C JP MORGAN 5
661 H JP MORGAN 5
690 C ABN AMRO 2
737 C ADVANTAGE 45 4
800 C MAREX SPEC 1
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 45 45
MONTH TO DATE: 52,958

NUMBER OF NOTICES FILED TODAY FOR  APRIL CONTRACT: 45 NOTICE(S) FOR 4500 OZ (0.1399 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  52958 NOTICES FOR 5,295,800 OZ  (164.978 TONNES)

 

 

SILVER

 

FOR APRIL

 

 

3 NOTICE(S) FILED TODAY FOR 15,000  OZ/

total number of notices filed so far this month: 431 for 2,155,000 oz

 

BITCOIN MORNING QUOTE  $9364  DOWN 261  

 

BITCOIN AFTERNOON QUOTE.: $9290 DOWN $330

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $1.50 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A MONSTROUS (CRIMINAL) CHANGE IN GOLD INVENTORY AT THE GLD// A DEPOSIT OF 3.21 TONNES OF GOLD

RESTS TONIGHT AT 1169.25 TONNES

GLD: 1,169.25 TONNES OF GOLD//

 

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

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV. ???

A MASSIVE PAPER DEPOSIT OF 4.473 MILLION OZ INTO THE SLV///

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 490.927  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG SIZED 1449 CONTRACTS FROM 181,995 UP  TO 183,444, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH OUR CONSIDERABLE 16 CENT GAIN  IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS DUE TO HUGE  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A ZERO INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2904 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUMONGOUS AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 1290  AND SEP 165 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  104 CONTRACTS. WITH THE TRANSFER OF 1455 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 1455 EFP CONTRACTS TRANSLATES INTO 7.275 MILLION OZ  ACCOMPANYING:

1.THE 16 CENT RISE 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

2.190  MILLION OF INITIALLY STANDING FOR JUNE

 

TUESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 16 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS FROM THEIR POSITIONS. THE STRONG GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A ZERO INCREASE IN SILVER OZ STANDING  HUGE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A STRONG NET GAIN OF 2869 CONTRACTS OR 14.345 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

SPREADING OPERATIONS

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO SILVER…..

SPREADING OPERATION FOR OUR NEWCOMERS:

 

FOR NEWCOMERS, HERE ARE THE DETAILS:

 

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

 

 

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

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

 

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

 

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

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

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

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

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF JUNE. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (JULY), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS

JUNE

 

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

10,166 CONTRACTS (FOR 19 TRADING DAY(S) TOTAL 10,166 CONTRACTS) OR 50.83 MILLION OZ: (AVERAGE PER DAY: 535 CONTRACTS OR 2.675 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 50.83 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 7.26% 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:          1,116.89 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                   50.83 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  STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1449, WITH OUR 16 CENT GAIN IN SILVER PRICING AT THE COMEX ///TUESDAY THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1455 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 VERY STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  2904 CONTRACTS (WITH OUR 16 CENT GAIN IN PRICE)

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1455 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 1449 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 16 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.95 // TUESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.917 BILLION OZ TO BE EXACT or 131% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JUNE  DELIVERY MONTH/ THEY FILED AT THE COMEX: 3 NOTICE(S) FOR 15,000 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: 2.190 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 VERY STRONG SIZED 9188 CONTRACTS TO 532,101 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 STRONG SIZED GAIN OF COMEX OI OCCURRED WITH OUR POWERFUL GAIN IN PRICE  OF $25.50 /// COMEX GOLD TRADING// TUESDAY// WE  HAD STRONG BANKER SHORT COVERING, A HUMONGOUS SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR GAIN IN PRICE OF $25.50 .

 

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

 

WE GAINED A GOOD SIZED 11,739 CONTRACTS  (36.51 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2551 CONTRACTS:

CONTRACT  JUNE 0.; AUG 2551 AND DEC: 0  ALL OTHER MONTHS ZERO//TOTAL: 2551.  The NEW COMEX OI for the gold complex rests at 532,101. 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 STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 11,739 CONTRACTS: 9188 CONTRACTS INCREASED AT THE COMEX AND 2551 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 11,739 CONTRACTS OR 36.51 TONNES. TUESDAY, WE HAD A GAIN OF $25.50 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD AN ATMOSPHERIC SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 36.51 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 $25.50).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  (2551) ACCOMPANYING THE STRONG SIZED GAIN IN COMEX OI  (9188 OI): TOTAL GAIN IN THE TWO EXCHANGES:  11,739 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)A POWERFUL INCREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH,  3) ZERO LONG LIQUIDATION; 4) STRONG COMEX OI GAIN.. AND  …ALL OF THIS WAS COUPLED WITH OUR POWERFUL GAIN IN GOLD PRICE TRADING//TUESDAY//$25.50.

 

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 : 52,797 CONTRACTS OR 5,279,700 oz OR 164.22 TONNES (19 TRADING DAY(S) AND THUS AVERAGING: 2778 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAY(S) IN  TONNES: 164.22 TONNES

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

THUS EFP TRANSFERS REPRESENTS 164.22/3550 x 100% TONNES =4.69% 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   2978.35  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:                     164.22 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 1449 CONTRACTS FROM 181,995 UP TO 183,444 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) HUGE BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A ZERO INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 1455 CONTRACTS

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

JULY: 1290 CONTRACTS   AND SEPT: 165 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1455 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 1449  CONTRACTS TO THE 1455 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2904 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 14.52 MILLION  OZ!!! OCCURRED WITH THE 16 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 16 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A STRONG SIZED 1455 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

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

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 38.93 POINTS OR 0.30%  //Hang Sang CLOSED DOWN 125.76 POINTS OR 0.50%   /The Nikkei closed DOWN 125.76 POINTS OR 0.50%//Australia’s all ordinaires CLOSED UP .20%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0717 /Oil UP TO 39.52 dollars per barrel for WTI and 41.88 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0647 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8834 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%

 

I

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A VERY STRONG 9188 CONTRACTS TO 532,187 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 HUGE  COMEX ADVANCE OCCURRED WITH OUR GAIN OF $25.50 IN GOLD PRICING /TUESDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (2551 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER GIGANTIC INCREASE IN  GOLD OZ STANDING AT THE COMEX//JUNE DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A STRONG GAIN ON OUR TWO EXCHANGES OF 11,739 CONTRACTS WITH GOLD’S STRONG GAIN IN PRICE. 

 

 

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 25

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 2551 EFP CONTRACTS WERE ISSUED:  2551 FOR AUG AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2551 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:  11,739 TOTAL CONTRACTS IN THAT 2551 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A VERY STRONG SIZED 9188 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD  AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR GOOD COMEX OI GAIN,  A HUGE INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION…… ALL OF THE ABOVE OCCURRED WITH A VERY  STRONG GAIN IN COMEX PRICE OF 25.50 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $25.50)AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A VERY STRONG 36.51 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 11,739 CONTRACTS OR 1,173,900 OZ OR 36.51 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:  532,101 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 53.21 MILLION OZ/32,150 OZ PER TONNE =  1655 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1655/2200 OR 75.22% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 241,339 contracts//fair//most traders have moved to London

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  204,345 contracts//  volume fair //most of our traders have left for London

 

 

JUNE 24 /2020

JUNE GOLD CONTRACT MONTH

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz 128,571.849 oz

 

brinks

 

 

 

Deposits to the Customer Inventory, in oz  

224,925830

OZ

BRINKS

HSBC

JPM

 

 

 

No of oz served (contracts) today
45 notice(s)
 4500 OZ
(0.1399 TONNES)
No of oz to be served (notices)
1265 contracts
(126500 oz)
3.93 TONNES
Total monthly oz gold served (contracts) so far this month
52,958 notices
5,295800 OZ
164.978 tonnes
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

i) Into the dealer: Brinks: 128,571.849 oz

total deposit: 128,571.849 oz

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 3 deposits into the customer account

i) Into Brinks:  32,019.830 oz

ii) Into HSBC : 32,151,000 oz  (1000 kilobars)

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

total deposit: 224,925.830 oz

 

 

we had 3 gold withdrawals from the customer account:

 

i) Out of Int. Delaware: 192.906 oz

ii) Out of Loomis: 32,150.000   (1000 kilobars)

iii) Out of JPMorgan: 1293.187 oz

 

 

 

total gold withdrawals;  33,636.093 oz oz

We had 3  kilobar transactions  +

 

 

 

 

ADJUSTMENTS: 1 //    

 

 

dealer to customer: JPMorgan

 

i) JPMorgan:  10,214.900 oz

 

The front month of JUNE registered a total of 1310 oi contracts FOR a LOSS of 302 contracts.  We had 705 notices filed on TUESDAY so we GAINED A HUMONGOUS 403 contracts or an additional  40300 oz of gold (1.253 TONNES) will  stand in this very active delivery month of June as these guys REFUSED TO morph into London based forwards

 

After June we have the non active delivery month of July and here we had a GAIN of 154 contracts UP to 3904 contracts. Thus we are going to have another humdinger of a delivery month for the non active month of July of around 4000 contracts or 400000 or  (12.44 tonnes)

Next comes August another strong delivery month and here the OI ROSE by A STRONG 7906  contracts UP to 373,961 contracts.

 

We had 45 notices filed today for 4500 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 688 notices were issued from their client or customer account. The total of all issuance by all participants equates to 45 contract(s) of which 5 notices were stopped (received) by j.P. Morgan dealer and 5 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 0 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 (52,958) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (1310 CONTRACTS ) minus the number of notices served upon today (45 x 100 oz per contract) equals 5,422,300 OZ OR 168.656 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 (52,958)x 100 oz + (1310 OI) for the front month minus the number of notices served upon today (45) x 100 oz which equals 5,422,300 oz standing OR 168.656 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  403 contracts or AN ADDITIONAL 4,300 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

312,441.780 oz PLEDGED  JUNE 24// 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:  996,191.227.127 oz                             31.017 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 360.21 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 168.656 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  12,705,685.635 oz or 395.20 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 (SOME  DELETED JUNE 24 2020) which cannot be settled upon:  312,441.780 oz (or 9.718 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:  996,191.227 oz or 31.017 tonnes
thus:
registered gold that can be used to settle upon: 11,709,494.0  (360.21 tonnes)
true registered gold  (total registered – pledged tonnes  11,709,494.0 (360.21 tonnes)
total eligible gold:  18,904,191.227 oz (587.99 tonnes)

total registered, pledged  and eligible (customer) gold;   31,609.876.742 oz 983.19 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  856.85 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 24/2020

And now for the wild silver comex results

we had the open interest at the comex, in SILVER, ROSE BY A STRONG SIZED 1449 CONTRACTS FROM 181,995 UP TO 183,444 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: 234,384 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) HUGE BANKER SHORT COVERING , 2) A STRONG 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 1455 CONTRACTS

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

JULY: 1290 CONTRACTS   AND SEPT: 165 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1455 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 1449  CONTRACTS TO THE 1455 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A VERY STRONG GAIN OF 2904 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 14.52 MILLION  OZ!!! OCCURRED WITH THE 16 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 16 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A STRONG SIZED 1455 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

JUNE 24/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
nil

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
64,851.850 oz
BRINKS
No of oz served today (contracts)
3
CONTRACT(S)
(15,000 OZ)
No of oz to be served (notices)
8 contracts
 40,000 oz)
Total monthly oz silver served (contracts)  431 contracts

2,155,000 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 1 deposits into the customer account

into JPMorgan:   0

ii) Into Brinks  64,851.850 oz

 

 

 

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 50.67% of all official comex silver. (160.819 million/319.110 million

 

total customer deposits today: 64,851.850    oz

we had 0 withdrawals:

 

 

 

 

total withdrawals; nil   oz

We had 0 adjustments

 

 

total dealer silver: 88.229 million

total dealer + customer silver:  319.110 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of June has an open interest of 11 for a loss  of 0 contracts.  We had  0 contracts served upon on Tuesday so we gained 0 oz of silver standing.

The next month of July sees its open interest fall by 11,239 down to 48,381. August sees its open interest rise by 128 contracts up to 557

The big September contract month sees a gain of 12,354 contracts up to 105,809

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 3 contract(s) FOR 15,000, 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 431 x 5,000 oz = 2,155,000 oz to which we add the difference between the open interest for the front month of JUNE.(11) and the number of notices served upon today 3 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 431 (notices served so far) x 5000 oz + OI for front month of JUNE (11)- number of notices served upon today (3) x 5000 oz of silver standing for the JUNE contract month.equals 2,190,000 oz.

We GAINED 0 contracts or an additional nil oz will stand for delivery as they refused to morphed into London based forwards as well as negating a fiat bonus

 

TODAY’S ESTIMATED SILVER VOLUME: 91,519 CONTRACTS // volume very good/

 

 

FOR YESTERDAY: 117,633..,CONFIRMED VOLUME//volume excellent/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 117,633 CONTRACTS EQUATES to 588 million  OZ  84.0% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 0.78% ((JUNE 24/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.10% to NAV:   (JUNE 24/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.78%

(courtesy Sprott/GATA

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

NAV 16.62 TRADING 16.58///NEGATIVE 0.24

END

 

 

And now the Gold inventory at the GLD/

JUNE 24/WITH GOLD DOWN $1.50 TODAY;  A STRONG 3.21 TONNES ADDED TO THE GLD//INVENTORY RESTS AT 1169.25  TONNES

JUNE 23/WITH GOLD UP $25.50 TODAY/ANOTHER CRIMINAL PAPER DEPOSIT OF 6.73 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1166.04 TONNES

JUNE 22/WITH GOLD UP $14.00 A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 23.09 TONNES//INVENTORY RESTS AT 1159.31 TONNES

JUNE 19/WITH GOLD UP$16.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//; INVENTORY RESTS AT 1136.22 TONNES

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 24/ GLD INVENTORY 1169.25 tonnes*

LAST;  846 TRADING DAYS:   +225.25 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 746 TRADING DAYS://+400.51  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 24//WITH SILVER DOWN 31 CENTS// NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 490.927 MILLION OZ

JUNE 23//WITH SILVER UP 16 CENTS TODAY: A MONSTROUS CHANGE IN INVENTORY: A PAPER DEPOSIT OF 4.473 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 490.927 MILLION OZ//

JUNE 22/WITH SILVER UP 15 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/: INVENTORY/INVENTORY RESTS AT 486/454 MILLION OZ//

JUNE 19//WITH SILVER UP 22 CENTS TODAY: STRANGE!!  A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 839,000 OZ FROM THE SLV////INVENTORY RESTS AT 486,454 MILLION OZ..

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 24.2020:

SLV INVENTORY RESTS TONIGHT AT

490.928 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 3.25/ and libor 6 month duration 0.38

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

GOLD LENDING RATE: -2.87%

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
+ 245%

LIBOR FOR 12 MONTH DURATION: 0.56

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.89%

 

end

 

 

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

World’s Ultra Wealthy Urged By Financial Advisers and Largest Banks to “Hold More Gold”

Source: Reuters

◆ World’s wealthy are being urged by their financial advisers to hold more gold as they question the strength of the stock market rally and are concerned about the long-term impact of global central banks’ cash splurge.

ZURICH /LONDON (via Reuters) – As stock markets roar back from the coronavirus led rout, advisers to the world’s wealthy are urging them to hold more gold, questioning the strength of the rally and the long-term impact of global central banks’ cash splurge.

Before the COVID-19 pandemic, most private banks recommended their clients hold none or just a tiny amount of gold.

Now some are channelling up to 10% of their clients’ portfolios into the yellow metal as the massive central bank stimulus reduces bond yields – making non-yielding gold more attractive – and raises the risk of inflation that would devalue other assets and currencies.

While gold prices have already risen 14% since the start of the year to $1,730 an ounce, many private bankers bet that gold – a hedge for both inflation and deflation – has further to run.

“Our view is that the weight of monetary supply, expansion, is going to ultimately be debasing to the dollar, and the Fed commitments, which (are) anchoring real rates, make the case for gold pretty sturdy,” said Lisa Shalett, Chief Investment Officer, Wealth Management at Morgan Stanley (MS.N).

Nine private banks spoken to by Reuters, which collectively oversee around $6 trillion in assets for the world’s ultra-rich, said they had advised clients to increase their allocation to gold. Of them, four provided forecasts and all saw prices ending the year higher than they are now.

UBS (UBSG.S), the world’s biggest wealth manager, said gold could hit $1,800 by year-end in its base-case scenario, driven by ultra-low interest rates and investors seeking gold to hedge their portfolios, or even touch a record high of $2,000 in the event of a second wave of novel coronavirus infections.

“With the recent equity rally, people have become more nervous. People are actively seeking out portfolio hedges that might perform well in a range of scenarios,” said Kiran Ganesh from UBS’s chief investment office.

Morgan Stanley added a 5% position to commodities including gold in all its models at the end of March.

While the bank was unlikely to advise a position above 10% in commodities like gold, Shalett said it could get there, especially if inflation picks up materially.

The boost in demand could be a self-fulfilling prophecy for the metal’s price, as any shift in allocation from bond and equity markets, estimated at up to a combined $200 trillion, has a much larger impact on the smaller gold market, estimated at less than $5 trillion.

While queries about gold have increased, very few clients had demanded a wholesale move into gold – something they would have been advised against – the bankers said, adding older clients tended to be the most concerned about inflation risks.

“That cohort is very concerned about wealth preservation. And in many ways they have a longer historic lens than some of our other clients, so they do worry about inflation,” Morgan Stanley’s Shalett said.

John LaForge, head of real asset strategy at Wells Fargo Investment Institute, said from two calls a week on gold last year, he is now at two calls a day, spiking to 10 calls when the metal has a good day.

“I’m now getting as many questions on gold as I do on oil, which says a lot from my perspective. Most people are interested in renewables and oil and so on, and gold was often considered a relic,” Forge said.

Despite the fact that holding gold pays no income, Oliver Gregson, head of the United Kingdom and Ireland at JPMorgan Private Bank said inquiries had gone up as clients increasingly viewed it as “a port in a storm”. He forecast a $1,750 year-end price target.

For those looking to hedge their bets with a shift to gold, the choices can be split into four: gold mining companies, index funds which represent shares in gold or track the price of gold, derivatives such as options and futures, and gold itself, in the form of bars or coins.

For hedging purposes, the first three are fine. If worries run deeper, investors normally opt for physical.

Andre Portelli, co-head of investments at Barclays Private Bank, said while some clients had begun adding physical gold in early 2020 as COVID-19 spread, the trend had continued.

Most of the larger banks offer a gold bar storage service and eight of those questioned by Reuters said they had seen an uptick in demand, particularly in locations such as Switzerland and Singapore.

Access Latest Goldnomics Podcast (Part II) Here

NEWS and COMMENTARY

Gold price surges to 7.5-year high as coronavirus concerns mount

Gold futures climb to highest finish since mid-April as cases of COVID-19 rise

Gold jumps, hits highest in more than a month on uptick in pandemic

Fed’s Rosengren sees difficult second half for U.S. economy

Weak Dollar Could Make Gold ETFs Glitter Some More

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

22-Jun-20  1745.45 1761.85, 1405.26 1418.11 & 1555.72 1567.17
19-Jun-20  1728.55 1734.75, 1392.17 1401.16 & 1541.18 1545.49
18-Jun-20  1732.65 1719.50, 1384.73 1383.51 & 1539.29 1532.93
17-Jun-20  1717.30 1724.35, 1368.69 1375.17 & 1527.88 1537.26
16-Jun-20  1728.35 1719.85, 1366.61 1361.78 & 1525.44 1526.54
15-Jun-20  1710.40 1710.45, 1365.58 1361.52 & 1520.72 1516.83
12-Jun-20  1735.85 1733.50, 1374.10 1378.13 & 1533.28 1534.15
11-Jun-20  1731.90 1738.25, 1361.79 1373.74 & 1519.57 1528.10

10-Jun-20  1717.65 1722.05, 1346.64 1350.26 & 1511.88 1515.23
09-Jun-20  1707.50 1713.50, 1350.46 1348.87 & 1515.41 1510.62
08-Jun-20  1692.00 1690.35, 1333.97 1331.32 & 1496.91 1494.61
05-Jun-20  1709.55 1683.45, 1353.79 1327.91 & 1510.22 1490.53
04-Jun-20  1706.45 1700.05, 1363.97 1353.58 & 1523.86 1507.77

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

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

Mark O’Byrne

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Authers is of the view that the world needs a lower dollar value to save it

Authers/Bloomberg/GATA

John Authers: A weaker dollar is just what the world needs

 Section: 

By John Authers
Bloomberg News
Tuesday, July 23, 2020

It looks as though the time for a renewed dose of dollar weakness is here. If it happens, that will be great news for many.

On both a real basis (taking inflation in different countries into account) and in nominal terms, the dollar is roughly where it was 20 years ago. After various switchbacks during the shocks of the first half of this year, it also appears to be in a downward trend:

[SEE CHART AT LINK BELOW]

One reason for relative weakness is extremely positive, which is that the shortage of dollars in the rest of the world is growing far less acute.

… 

Back in March, the Federal Reserve started offering foreign-exchange swaps to a number of other central banks in friendly nations, as they suffered a dollar funding squeeze. They made great use of this at first, but demand for dollars had flattened by the end of April, and this month it has begun to fall, as made clear by this chart from Steven Englander of Standard Chartered Plc:

[SEE CHART AT LINK BELOW]

… Another key reason for dollar weakness is that the Fed seems to be committed to keeping longer yields low. The differential of Treasury over German bund yields dropped sharply in the first weeks of the crisis, and has now stabilized at a little above 100 basis points — a level it hadn’t previously seen since 2014. All else equal, this weakens the dollar, particularly compared to the wide differentials of two years ago. …

… For the remainder of the report:

https://www.bloomberg.com/opinion/articles/2020-06-23/a-weaker-dollar-is…

END

Why gold is money..

(Mehta/Times of India/GATA)

The consequences of infinite money dawn on a grandfather in India

 Section: 

By Chirag Mehta
The Times of India, Mumbai
Tuesday, June 23, 2020

Last Sunday I was sitting next to my 82-year-old grandfather as he read a newspaper. It has been his Sunday-morning routine for the last 25 years since he retired from a public-sector bank. He came across an article on the current pandemic soon morphing into a financial crisis and how the central bankers are trying to combat the crisis.

… 

After reading the news he asked me: “Do you know about these bailouts and stimulus packages coming out of the U.S.?”

I replied: Yes.

Grandfather: “Trillions of dollars, right?”

I: That’s right.

Grandfather: “They don’t really have the money, though, do they?”

I: No, they don’t.

Grandfather: “And so they are just going to print it, aren’t they?”

I: Yes, the central bank would print the currency and allow the government to borrow money.”

Grandfather: “Out of nothing? Is there any real backing, like gold in earlier days?”

I: No.

Grandfather: “But that’s not right, is it?” …

… For the remainder of the commentary:

https://economictimes.indiatimes.com/mf/analysis/gold-the-new-currency/a…

* * *

END

Craig Hemke discusses silver

Craig Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: Waiting on Comex silver

 Section: 

7:20p ET Tuesday, June 23, 2020

Dear Friend of GATA and Gold:

Futures market pressure on silver, the TF Metals Report’s Craig Hemke writes today at Sprott Money, will lift in July, when the monetary metal will start catching up with gold. Hemke’s analysis is headlined “Waiting on Comex Silver” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/waiting-on-comex-silver-craig-hemke-jun…

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

END

For your interest..

Gold investment risks are higher in countries without U.S. currency swaps, Marin Katusa says

 Section: 

10:53p ET Tuesday, June 23, 2020

Dear Friend of GATA and Gold:

Where has market analyst Marin Katusa been for the last 50 years?

The question arises because of his commentary posted today at OilPrice.com. It’s headlined “The War on Gold Has Begun”:

https://oilprice.com/Metals/Gold/The-War-On-Gold-Has-Begun.html

Begun? Huh?

Has Katusa never heard of the London Gold Pool of the 1960s, or the gold sales by the United States and International Monetary Fund of the 1970s, or the Bank of England’s gold dump of 1999-2002, or the various admissions by central bankers summarized by GATA here —

http://www.gata.org/node/14839

— or the surreptitious intervention in the gold market undertaken every month by the Bank for International Settlements, intervention that now stands at a three-year high?:

http://gata.org/node/20214

What’s Katusa going to tell investors next — that Japan has attacked Pearl Harbor?

Even so, maybe Katusa’s belated acknowledgment of the war on gold is progress, since maybe now discussion about it will be allowed at the Cambridge House financial conferences in Canada (presuming, of course, that in-person financial conferences ever resume), those conferences having prohibited GATA’s participation ever since Katusa took over the company a few years ago.

And Katusa’s commentary today also may be worth noting for his contention that U.S.-based gold-mining companies will be in greater danger of higher taxation and expropriation in countries that have not been given currency swap lines by the U.S. government.

Such swap lines have been given to 15 countries, Katusa notes, and his premise is that being so obliged to the U.S. government, those countries won’t dare to mess with U.S.-based companies. But countries without currency swap lines with the U.S., Katusa contends, may not care about alienating the U.S. government by expropriating U.S.-based gold-mining companies.

There may be something to this hypothesis, but it strikes your secretary/treasurer as weak. For if gold goes to the moon in some sort of international currency reset, it is hard to imagine any country, regardless of U.S. swap lines, not at least revising upward its mining royalty requirements.

But even then there might be plenty of money for the miners and their host governments alike. After all, governments are not terribly skilled at managing industrial operations — even communist China, whose government is said to purchase all domestic gold production, permits some foreign investment in its gold mines.

And upon a price reset how secure would gold mining be even in the United States? After all, the U.S. government already has attempted gold confiscation once, in 1933, and in 2005 GATA extracted from the U.S. Treasury Department what may be the only definitive statement of its current position on confiscation, which is not exactly reassuring:

http://www.gata.org/node/5606

That is, the Treasury Department says that under the Trading With the Enemy Act of 1917 and the International Emergency Economic Powers Act of 1977, upon proclamation of an emergency by the president, the department can seize or freeze any gold or gold-related asset.

The Treasury official conveying this position urged GATA not to get too paranoid about it, because, he added, under those same laws, upon a proclamation by the president, the department can seize or freeze any damned thing it wants.

That interpretation of the law is not exactly why “The Star-Spangled Banner” hails “the land of the free and the home of the brave,” but similar laws are in place in other countries, and many countries might undertake expropriation quite without reference to law.

So Katusa’s premise about swap lines insuring certain gold mine investments may be worth keeping in mind.

For whatever it may be worth, your secretary/treasurer’s premise is that you should acquire all the monetary metal you can, find a safe planet to keep it on, and, when you do, call me so I may join you.

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

* * *

end

iii) Other physical stories:

This morning!!

pure manipulation//will not last long

(zerohedge)

Gold’s Getting Monkeyhammer’d, Silver Slammed

Falling just shy of its attempt to tag $1800, gold futures are plummeting this morning after ramping to fresh 8-year highs yesterday…

Note the big moves in markets every day around the London Fix and the fact that this plunge has stalled at yesterday’s fix…

Silver is getting hit even harder…

The question is – what changed? Or is Benoit back in da house?

end

 

Was gold’s resurgence exposing the failing faith in fiat and its omnipotent central planners just a little too much?

This weekend’s JSMineSet special report with Ted Butler

https://www.jsmineset.com/2020/06/24/special-weekend-edition-with-ted-butler/

end

Schiff: Why Is Gold The Last Safe Haven Standing?

Via SchiffGold.com,

Gold took out the April highs and rose to the highest level in 8 years on Tuesday. The rally in other safe have assets has stalled in recent weeks, but gold has continued to rise. Why is gold the only safe haven left standing? Peter Schiff explained in his podcast.

Even as the price of the metal continues to climb, gold stocks lag. Peter said a lot of traders still seem to be skeptical of this rally.

Ever since we got this rally, or this more recent rally, people just assume that it’s a temporary deal. ‘Oh, people are just flooding into gold. It’s a safe haven. They’re worried about COVID-19. They’re worried about the stock market going down. They’re worried about recession and all that. And so, they’re seeking out safe havens. But, you know, once the dust settles though, they’ll be taking the safe havens off. They’ll be getting out of those trades. They’ll be getting back into stocks.’ And so, they expect gold to fall.”

The continuing rise of US stock markets has helped fuel this skepticism.

Everybody who’s in these gold stocks – they’ve got one foot out the door. They don’t expect the momentum to continue. Yet gold continues to go up anyway. Gold continues to make new highs.”

Consider the three primary safe-haven assets – gold, the dollar and US Treasuries. When the stock market plunged in March with the onset of the COVID-19 government lockdown, the dollar rallied, Treasury prices skyrocketed and yields fell to record lows, and after an initial decline, gold rallied as well.

But of those three safe havens, the only one that continues to rise is gold.

So, why is gold the only safe-haven left standing?

Because the real risk, the real threat, is not, or was not, plunging stock prices or COVID-19. The real threat is inflation. That’s what people are seeking out a safe haven from. It’s the central banks. It’s not that we have COVID-19 and a recession, but it’s the monetary policy response to the recession. It’s not the damage done from COVID-19. It’s the damage done from the monetary policy response to COVID-19 and to the monetary policy response to the fiscal policy response.

Of course, the fiscal policy response is to spend money. The Fed’s response is to print money to make the spending possible. None of this is actually helping.

That is what investors need safety from. So, the reason gold is the only safe haven that’s still going up is it’s the only safe haven that provides safety, that is a haven against inflation and global fiat currency debasement.”

In fact, the only reason stocks are rising is because the currency is being debased – central banks are inflating. As a recent article published by The Economist put it:

This devaluation will eventually lead to a loss of faith in the dollar and people will no more want to hold the fiat currency. As a result, people will want to convert their cash/wealth to something that they believe in, something that can protect their wealth with, something that has intrinsic value and that has proved its worth over decades.”

Gold.

Peter said that while this inflation is nominally bullish for the stock market, it is far more bullish for gold.

In fact, when central banks are doing that, real stock prices, which would be stock prices measured in gold, should be going down. And in fact, they are going down.”

Gold is outperforming every US stock market year-to-date, including the high-flying NASDAQ.

If gold continues its trajectory through the second have of the year, it will break the all-time record and finish above $2,000. Even some in the mainstream are anticipating this. Goldman Sachs recently raised its 12-month gold price forecast to $2,000.

In this podcast, Peter also talked about the stock market, the politics of the presidential election and explained why the dollar milkshake theory is all wet.

END

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 70719/ GETTING VERY DANGEROUSLY past 7:1

//OFFSHORE YUAN:  7.0647   /shanghai bourse CLOSED UP 8.93 POINTS OR 0.30%

HANG SANG CLOSED DOWN 125.76 POINTS OR 0.50%

 

2. Nikkei closed DOWN 14.73 POINTS OR 0.07%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 96.93/Euro FALLS TO 1.1282

3b Japan 10 year bond yield: FALLS TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.70/ 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:: 39.52 and Brent: 41.88

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.39%/Italian 10 yr bond yield DOWN to 1.29% /SPAIN 10 YR BOND YIELD UP TO 0.50%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.68: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 1.26

3k Gold at $1765.00 silver at: 17.53   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 25/100 in roubles/dollar) 69.09

3m oil into the 39 dollar handle for WTI and 41 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 106.70 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 .9466 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0681 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.39%

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 0.73% early this morning. Thirty year rate at 1.50%

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

6.  TURKISH LIRA:  UP  TO 6.8560..

Futures Slide On Renewed Trade War Fears, Surge In Virus Cases

After several days of surging on “recovery and trade deal optimism”, overnight sentiment took a big hit on “virus resurgence and trade deal pessimism” sending S&P futs and European stocks sliding the most in a week “following a surge in the number of coronavirus cases globally” according to Reuters. Spoos dropped following European shares lower, amid an acceleration in virus cases the American South and cautious remarks on a recovery by ECB’s chief economist.

Carl Quintanilla

@carlquintanilla

FUNDSTRAT: “The rise is across multiple states, and while testing is higher, the synchronized rise across states is the bigger driver. The trend in cases is not good, and at face value, should be alarming.” @fundstrat

View image on Twitter

Futures took a second leg lower following a Bloomberg report that the U.S. is weighing new tariffs on $3.1 billion of exports from France, Germany, Spain and the U.K. According to the report, the USTR wants to impose new tariffs on European exports like olives, beer, gin and trucks, while increasing duties on products including aircrafts, cheese and yogurt. The European Union is also debating whether to keep the door shut to American travelers this summer.

Risk appetite got a boost on Tuesday after data showed improving business activity in France and Germany as well as on White House reassurances about the Phase One U.S.-China trade deal. But European Central Bank chief economist Philip Lane said that solid data may not be a good guide to how the euro zone recovers from the crisis.

As a result, Europe’s STOXX 600 index fell 1.5%, with the economically sensitive sectors such as travel & leisure, automakers and banks leading declines. Many U.S. states reported record daily increases in COVID-19 infections amid easing of lockdowns, while a media report that European Union countries are prepared to bar entry to Americans raised worries of further restrictions.  The top decliner on the STOXX 600 was Sweden’s Evolution Gaming Group AB, which fell 9.4% after it offered to buy NetEnt AB for 19.6 billion Swedish crowns. NetEnt’s shares jumped 27.5%. German real estate company Leg Immobilien fell 3.4% after plans to launch a capital increase through stock and debt offering. Germany’s DAX was down 1.9% despite Ifo institute’s survey showing the strongest rise ever recorded in the country’s business morale in June.

“While the economic impact of such measures will be less than shutting down an entire economy, a recovery of this nature is a messier story for investors to digest and this could act as a drag on equities,” AJ Bell’s strategist Russ Mould wrote.

Asian stocks also fell, led by utilities and energy, after rising in the last session. Markets in the region were mixed, with Thailand’s SET and India’s S&P BSE Sensex Index falling, and Jakarta Composite and South Korea’s Kospi Index rising. The Topix declined 0.4%, with Yasunaga and Land Co falling the most. The Shanghai Composite Index rose 0.3%, with Shandong Jinjing and Kunwu Jiuding Investment posting the biggest advances.

As Bloomberg notes, market sentiment is turning more negative on concern that the spreading coronavirus could force policy makers to slow the pace or reverse business re-openings. At the same time, there’s the potential for trade tensions to resurface between the European Union and the US.

“The outbreaks have given markets the unpleasant reminder that the pandemic is far from over and that the economic recovery may be slower than expected,” said Mobeen Tahir, associate director of research at WisdomTree in London. But the downturn would only become serious “if infection rates rise to alarming levels and sweeping lockdowns are enforced again.”

In FX, the dollar rose against most of its Group-of-10 peers after risk sentiment soured despite encouraging business surveys from Germany and France. The dollar hovered around 1.13 per euro; Norway’s krone slipped amid lower oil prices. The pound fell for the first time in three days against the dollar amid concern the U.K.’s plan to lift lockdowns in early July could set off a second wave of infections. New Zealand’s dollar declined against all G-10 peers after the central bank flagged that the currency’s recent appreciation is placing pressure on export earnings. The Reserve Bank also said it continues to work toward having more policy tools.

In commodities, WTI and Brent crude futures extend on earlier losses as sentiment took another hit from reports the US is targetting EU and UK goods in its latest move. Prices were already ebbing lower as the complex succumed to the broader risk aversion since the European cash open. Meanwhile, spot gold continues to march on despite a firmer Buck as investors flock to the safe heaven. The yellow metal resides at fresh over-7yr highs around USD 1775/oz ahead of the psychological USD 1800/oz. Copper prices see a double whammy from the firmer USD and risk aversion as prices receed back below USD 2.65/lb despite weekly Shanghai inventories posting a decline in stocks.

In rates, yields were mostly unchanged to Tuesday’s closing levels, though long-end outperforms slightly ahead of Wednesday’s 5-year and Thursday’s 7-year auctions. The 10-year TSY yield, higher by 0.3bp around 0.715%, trails steeper increase for bund yield ahead of Austria’s 2 billion euro century bond sale.

Looking ahead, highlights include, SNB Quarterly Bulletin, DoEs, Fed’s Evans, Bullard, supply from the US. Scheduled earnings include Blackberry.

Market Snapshot

  • S&P 500 futures down 0.8% to 3,094.50
  • MXAP down 0.1% to 160.94
  • MXAPJ up 0.1% to 521.04
  • Nikkei down 0.07% to 22,534.32
  • Topix down 0.4% to 1,580.50
  • Hang Seng Index down 0.5% to 24,781.58
  • Shanghai Composite up 0.3% to 2,979.55
  • Sensex down 0.7% to 35,177.50
  • Australia S&P/ASX 200 up 0.2% to 5,965.75
  • Kospi up 1.4% to 2,161.51
  • STOXX Europe 600 down 1.4% to 362.13
  • German 10Y yield fell 0.3 bps to -0.411%
  • Euro down 0.1% to $1.1294
  • Brent Futures down 0.9% to $42.24/bbl
  • Italian 10Y yield fell 3.1 bps to 1.129%
  • Spanish 10Y yield fell 0.3 bps to 0.473%
  • Brent Futures down 0.9% to $42.24/bbl
  • Gold spot up 0.2% to $1,771.49
  • U.S. Dollar Index up 0.2% to 96.81

Top Overnight News from BBG

  • Newly diagnosed Covid-19 infections soared in some of the most populous U.S. states, with California, Texas and Arizona reporting their biggest daily jumps. The EU is considering keeping travelers from the U.S. out when it reopens external borders
  • The U.S. is weighing new tariffs on $3.1 billion of exports from France, Germany, Spain and the U.K., adding to an arsenal the Trump administration is threatening to use against Europe that could spiral into a wider transatlantic trade fight later this summer
  • The coronavirus pandemic has forced a one-year delay in the opening up of Europe’s $1.5 trillion-a-day market for exchange-traded derivatives
  • “German business sees light at the end of the tunnel,” Ifo chief Clemens Fuest said. While expectations in manufacturing surged at a record pace, “a great majority of companies still assess their current situation as poor”
  • Austria pulled in record orders of more than 16 billion euros for a new century bond, after its previous one rallied to return investors about 85% since 2017
  • Companies shoring up cash to survive the global pandemic raised funds in the U.S. high- yield market at the fastest monthly pace ever

Asian equity markets traded with a slight positive bias after momentum from global peers provided the initial constructive setting for the region. This followed the advances for all major indices on both sides of the Atlantic with sentiment helped by stronger than expected data and the UK further easing lockdown restrictions, while the Nasdaq notched a fresh all-time high, although some of the gains were later pared stateside amid ongoing concerns regarding the increasing pace of infection numbers in parts of the US. ASX 200 (+0.2%) and Nikkei 225 (Unch.) were rangebound with the Australian benchmark treading water for much of the session as strength in the commodity related sectors was offset by weakness in the top-weighted financials, and a non-committal tone was also observed in Tokyo as exporters contended with the recent currency strength, while the KOSPI (+1.4%) outperformed on positive geopolitical developments in which North Korea Leader Kim decided to suspend military action against South Korea. Elsewhere, Hang Seng (-0.5%) and Shanghai Comp. (+0.3%) ended mixed after another firm liquidity effort by the PBoC and with Tencent shares posting a record high in Hong Kong, but with upside contained due to ongoing US-China tensions. Finally, 10yr JGBs were lacklustre as the mild positive tone in stocks and lack of BoJ presence in the market kept prices subdued, which also saw the 30yr yield increase to its highest since April last year during early trade.

Top Asian News

  • Bank of Thailand Sees 8.1% Contraction, Pledges More Support
  • India Stocks Mixed in Volatile Trade as Border Clash Eases
  • Relaxed ‘Hukou‘ Rules Spur China Home Rebound Beyond Beijing

European equities kicked the session off on a softer footing before extending the move to the downside (Eurostoxx 50 -1.6%) as losses were exacerbated by reports that the US is targeting USD 3.1bln of exports from France, Germany, Spain and the UK with new tariffs whilst increasing the levy on aircraft, cheese and yogurts. Nonethless from a wider lens, the main source of focus remains on the rising COVID-19 case count in certain parts of the US. However, it is hard to place too much weight on this acting as a downside catalyst for Europe given that US equities finished firmer on Wall St. and futures are faring better stateside than they are across the Atlantic. From a sectoral standpoint, weakness in Europe is predominantly being driven by cyclical names with autos, travel and banking names lagging their peers. Price action within these sectors is subject to little in the of stock-specific newsflow and as such reflects broader pessimism within the market. IT names are faring slightly better than most (albeit lower on the day) with support emanating from Dialog Semiconductor (+8.0%) after the Co. raised Q2 revenue guidance. Other individual movers include Wirecard (again) with Co. shares lower by 8.5% as questions continue to mount over the impact of recent scandals on its business relationships, particularly with Mastercard (MA) and Visa (V) with whom they hold licenses with to issue credit cards. Atlantia (+2.3%) continue to remain in focus following government talks last night whereby it was agreed that negotiations should continue regarding the Co.’s motorway concession.

Top European News

  • Merkel’s Popularity Surge Puts German Greens on the Back Foot
  • German June Ifo Business Confidence 86.2; Est. 85
  • Solvay Says Aerospace Slump to Result in $1.7 Billion Writedown
  • Google to Invest up to $2b in Cloud Data Centers in Poland: Puls

In FX, the broader Dollar and Index continue to strengthen early doors – potentially consolidating from recent losses but broader market performance points more towards safe-haven inflows, and with little by way of fresh fundamental factors driving the moves. Underlying influences linger in the form of heightened tensions between US and China and potential implications from a second outbreak as participants gear up for month/quarter end. DXY has extended gains from yesterday’s 96.379 low and now eyes 97.000 to the upside with its 10 DMA (97.028) also in range with the absence of Tier 1 data on the slate, whilst Fed non-voters Evans and Bullard are likely to sing from the same hymn sheet as from Powell’s most recent appearance.

  • NZD – Kiwi remains the G10 underperformer amid the broader risk aversion coupled with a dovish tilt by the RBNZ, which despite holding rates and large scale asset purchases steady, noted that a firmer Kiwi is weighing on exports and continued to tout future policy easing was on the cards – members discussed the pros and cons of expanding QE now, in which any expansion would need to be of a sufficient magnitude to make a meaningful difference. NZD/USD relinquished the 0.6500 handle (high 0.6514) and continues to move south of 0.6450 (10 DMA) as the pair eyes its 21 DMA at 0.6415 ahead of the round figure.
  • EUR, GBP, CAD, AUD, EM – All broadly lower vs. the USD but the high-beta FX see more pronounced pressure as the appetite for risk further deteriorates and aversion intensifies. The single currency caved in light of reports that the US is taking aim at EU and UK goods, after the EUR intiially shrugged off a mixed Ifo release with current conditions falling short of consensus and expectations exceeding; economists cautioned that in-spite of the economy now firmly being on an upward path, the situation in the industrial sector remains dire. Meanwhile, ECB’s chief economist Lane provided little by way of fresh updates but did put more credence on the outcome of the EU Recovery Fund on the future of the economy, alluding to potential impact on monetary policy. On that front, President Macron held talks with his Dutch counterpart, and known Frugal Four member, with reports pointing to progress (but no agreement) on the latter’s resistance to the Commission’s proposal ahead of the mid-July meeting. EUR/USD gave up its 1.13-handle (high 1.1325) and whipsawed lower to 1.1270 on the US tariff news ahead of its 10 DMA at 1.1261, followed by potential mild support at 1.1258 and 1.1243 (200 and 100 HMAs respectively). GBP/USD was relatively unreactive to the US levy headlines and fluctuates on either side of 1.2500, having printed a high at 1.2518 and a low near a Fib at 1.2463 (38.2% of 1.1237-2541 move), whilst some participants highlight potential bids at yesterday’s low of 1.2434. The Loonie and Aussie also bear the brunt of weakness in commodities – USD/CAD failed to sustain a break above its 10 DMA (1.3571) and hovers around its 21 DMA (1.3557), having found a base yesterday at its 200 DMA (1.3480). AUD/USD tested support at 0.6900 (high 0.6961) but currently meanders its 100 WMA (0.6909) ahead of its 10 and 21 DMAs at 0.6884 and 0.6869 respectively.
  • JPY, CHF – Both resilient against the rising Buck as safe-haven inflows counter the Dollar dominance. Overnight the BoJ Summary of Opinions added nothing to the Central Bank’s narrative, whilst the CHF awaits the findings of the SNB quarterly bulletin for Q2 later today. The safe havens failed to derive much traction from US ramping up tariffs against some EU countries alongisde the UK. USD/JPY now trades flat intraday and off its earlier peak at 107.21, now residing around 106.50 having earlier dipped to a whisker away from 106.00 ahead of the May 8th low just under the round figure. USD/CHF losses further ground below its earlier high at 0.9528 having tested 0.9420 to the downside.

In commodities, WTI and Brent crude futures extend on earlier losses as sentiment took another hit from reports the US is targetting EU and UK goods in its latest move. Prices were already ebbing lower as the complex succumed to the broader risk aversion since the European cash open. Yesterday’s private inventories only added to the bearish narrative as headlines stocks showed a larger than expected build of 1.7mln barrels vs. Exp. 300k. Participants will now be on the lookout for confirmations at the weekly DoE release in the absecnce of fundamental catalysts. WTI Aug resides sub-USD 40/bbl (vs. 40.50/bbl high) whilst its Brent counterpart meanders around USD 42/bbl (vs. 42.89/bbl high). Meanwhile, spot gold continues to march on despite a firmer Buck as investors flock to the safe heaven. The yellow metal resides at fresh over-7yr highs around USD 1775/oz ahead of the psychological USD 1800/oz. Copper prices see a double whammy from the firmer USD and risk aversion as prices receed back below USD 2.65/lb despite weekly Shanghai inventories posting a decline in stocks.

US Event Calendar

  • 7am: MBA Mortgage Applications -8.7%, prior 8.0%
  • 9am: FHFA House Price Index MoM, est. 0.25%, prior 0.1%

DB’s Jim Reid concludes the overnight wrap

It’s going to be 31 degrees here in the U.K. today and hotter elsewhere in Europe so watch out you don’t look too suntanned on all those zoom calls! I’ll stay inside today as I ventured out for 45 minutes yesterday and got quite bad hey fever. Mine usually stops in April but I noticed the pollen count is currently “very high”. One strong antihistamine in the evening did the trick though.

From pollen counts to R numbers and in spite of news that 29 US states now have an R number above 1, markets continued to perform well yesterday as data improved and reopening plans progressed. That tension between stimulus and second waves/extended first waves remains, but the former continues to win out. The S&P 500 ended the session up +0.43%, while the NASDAQ rose +0.74% to reach another record high. The S&P was up as much as +1.20% until just around 2pm NY time, before case data from Florida and Texas showed that the economy may need to deal with a slower reopening process at the very least. Superior gains were seen in Europe (which closed before the dip), with the STOXX 600 advancing +1.30%, and the DAX seeing an even stronger +2.13% move higher. Meanwhile Wirecard went from the worst to the best performer in the STOXX 600 yesterday, with a +34.99% advance. Oil looked to be a beneficiary of the risk on sentiment, with Brent crude rising to its highest level ($43.19) since early March midday U.K. time before reports of a 7.1 magnitude earthquake near Oaxaca, Mexico caused Brent futures to fall around 3% to finish down -1.04% for the day.

Elsewhere in financial markets, the dollar continued to sell-off yesterday with a further -0.40% decline. Sovereign bonds also sold off, with yields on 10yr Treasuries (+0.3bps), bunds (+3.1bps) both rising, though Italian BTPs outperformed as 10yr yields fell by -3.1bps to their lowest level since late March. Meanwhile it wasn’t all bad news for the traditional safe havens, with gold advancing a further +0.80% to hit a fresh 7-year high.

In terms of the latest on the coronavirus let’s look at the US first. As discussed at the top, according to the rtlive website, 29 US states have an Rt figure above 1 now. This is up from 5 states 2 months back during lockdowns and 23 states a month back after the majority of lockdowns were lifted. Meanwhile the number of cases in Florida rose by a further +3.3%, though this was slightly below the previous 7-day average of +3.8%. The number of positive tests in the state rose to 10.9% yesterday from 7.7% over the weekend. California reported its biggest daily increase, 7923 new cases, while also seeing a slight increase in positive test rates – 4.9% from 4.8%. California Governor Newsome indicated that he did not want the return of stay-at-home orders, but is prepared to do so if numbers get worse. Arizona continues to see record case growth, with over 3779 new additions, as cases rose by 6.9%, above the weekly average of 5.8%. Dr. Anthony Fauci, the top US infectious-disease expert, has termed the surge in cases as “disturbing”.

In Texas, ICU numbers in Harris Country (3rd most populous county in the US with roughly 5 million people and encompassing Houston) will be exhausted in 11 days based on case growth over the past two weeks, according to the state. The state as a whole saw over 5195 cases yesterday, another record.

In light of the recent rise in US cases, and citing the country’s inability to control the outbreak, European Union officials may exclude the US from plans to reopen the borders next month, according to draft lists reported on by the New York Times. Europe itself continues to see small splashes of case growth. In Germany, North Rhine-Westphalia became the first state to restore a lockdown. It is only on the town in which the large meat factory saw a total of 1553 infections so far, and will initially remain until the end of June. On the other hand, the UK recorded its second day in a row with under 1000 new infections yesterday, a feat unseen since late March.

In further signs of progress here in the UK, we had Prime Minister Johnson announce a substantial easing of restrictions yesterday in England, which will come into effect from July 4. Independence Day of a different kind. The measures includes an easing in the 2m social distancing rule, to a “one metre plus” rule, meaning that people should keep one metre apart but employ measures such as changing office layouts that reduce the risks of transmission. Otherwise, the government is changing their advice such that two households of any size can meet inside, and pubs, restaurants and hairdressers (not relevant to me) will also be able to reopen. That said, there are some “close proximity” venues that will remain shut, including indoor gyms, swimming pools and nightclubs. Even as the government continues to reopen the economy, the country’s Chief Medical Officer Chris Whitty expects coronavirus to be circulating well into Spring 2021. We’re truly in for the long haul it seems.

Elsewhere, there are concerns emerging around a second wave in Australia in the state of Victoria, with the state’s Health Minister Jenny Mikakos saying overnight that the R number in the past week had risen to an “unacceptably high” rate of 2.5. Mexico also reported their highest daily new case count yesterday, at 6228, with growth rate in new cases jumping to 3.4% from a 5 day average of 3%.

Overnight, markets have been fairly uneventful in Asia with newsflow fairly light. The Nikkei (-0.09%) is down while, the Hang Seng (+0.06%), ASX (+0.36%) and Shanghai Comp (+0.15%) are modestly up. The Kospi (+1.55%) is outperforming on news that Kim Jong Un has ordered the suspension of military actions against South Korea during a military commission meeting for his ruling Worker’s Party of Korea (according to the KCNA report). Elsewhere, WTI oil prices are down -0.62% after a report from the American Petroleum Institute indicated that crude inventories climbed by 1.75 million barrels last week, marking the third consecutive weekly gain if confirmed. Futures on the S&P 500 are trading flat.

Back to yesterday and it was upside surprises on the flash PMIs that helped encourage the rising risk appetite in markets. We thought consensus was looking too low and this is what transpired. In terms of the details, the main story was that the numbers in Europe surprised noticeably to the upside. The Euro Area composite PMI rebounded to 47.5 (vs. 43.0 expected), while the composite PMIs in France (51.3), Germany (45.8) and the UK (47.6) all beat expectations too. France was the only one of the European releases to see a rebound above the 50-mark that separates expansion from contraction, but we shouldn’t over-interpret the German underperformance relative to France, since the PMI responses measure changes rather than levels, and since Germany didn’t shut down as severely it’s no surprise that its rebound isn’t as pronounced. The US PMIs for manufacturing (49.6) and services (46.7) were both slightly below expectations, but this was still a rebound from the high-30s numbers seen in May.

The other main news story from yesterday was confirmation that there would be a summit of EU leaders in person on July 17th-18th to discuss the recovery fund. That’ll come a day after the ECB’s next decision on the 16th, so certainly a week for your calendars. Remember however that our European economists wrote last week (link here) that it’s questionable whether a compromise on this issue can be found within just 4 weeks, and the issues still to be resolved are many and complex. So expect a Recovery Fund but don’t get too excited on the timings yet.

Looking at yesterday’s other data, new home sales in the US rebounded to an annualised rate of 676k in May (vs. 640k expected). Separately, the Richmond Fed’s manufacturing survey for June also beat expectations, with a 0 reading (vs. -2 expected).

To the day ahead now, and today’s data includes June’s Ifo survey from Germany, French business confidence for June, while from the US there’s April’s FHFA house price index and the weekly MBA mortgage applications. In terms of central banks speakers, we’ll hear from the ECB’s chief economist Lane, as well as the Fed’s Evans and Bullard. Finally, the IMF will be releasing their latest World Economic Outlook Update today.

 

3A/ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 38.93 POINTS OR 0.30%  //Hang Sang CLOSED DOWN 125.76 POINTS OR 0.50%   /The Nikkei closed DOWN 125.76 POINTS OR 0.50%//Australia’s all ordinaires CLOSED UP .20%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0717 /Oil UP TO 39.52 dollars per barrel for WTI and 41.88 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0647 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8834 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

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/INDIA

Both India and China agree to a cooling and disengagement along their contested border

(zerohedge)

 

China & India Agree To “Cooling” & Disengagement Along Contested Border

China has dismissed widespread Indian media claims that its side suffered 40 casualties during the June 15 night border clash which left 20 Indian soldiers dead as “fake news”. It has further condemned New Delhi giving its troops “freedom of action” to respond with deadly fire if under attack by PLA troops.

But despite the soaring tensions which many feared could see war break out along the disputed Ladakh border region, the two nuclear armed neighbors have agreed to deescalation and disengagement at the border.

Chinese Foreign Ministry spokesman Zhao Lijian confirmed at a news briefing on Tuesday that talks between the two sides’ top regional commanders resulted in a positive breakthrough. They “agreed to take necessary measures to promote a cooling of the situation,” Zhao said.

 

Chinese Foreign Ministry spokesman, via Global Times.

“The holding of this meeting shows that both sides want to deal with their disagreement, manage the situation and de-escalate the situation through dialogue and consultations,” Zhao added.

The foreign ministry spokesman further described that they “exchanged frank and in-depth views” and “agreed to maintain dialogue and jointly committed to promoting peace and tranquility in the border areas.”

The Indian Army also assured that broader conflict along the Actual Line of Control (LAC) has been averted following last week’s most serious and deadliest clash in a half-century, with a statement reading: “Corps Commander level talks between India-China yesterday were held at Moldo in cordial, positive and constructive atmosphere,” according to the ANI news agency.

“There was mutual consensus to disengage. Modalities for disengagement from all friction areas in Eastern Ladakh were discussed and will be taken forward by both sides,” the Indian Army added.

 

Standoff at border, via Tibetan Review

However, there are continued disruptions and worsening relations on other fronts, especially given Modi’s domestic base is clamoring for vengeance.

CNN reports:

Authorities in India are hitting pause on more than $600 million in deals with Chinese companies in the wake of a deadly border clash with China.

Officials in the western Indian state of Maharashtra said Monday that they were reviewing agreements with three Chinese companies as they seek clarity from the Indian government on how — or whether — to proceed.

Recall too that on Monday China’s state-runGlobal Timesissued threats based on overwhelming PLA superiority, underscoring that if Indian troops carry firearms along the LAC and are given ‘freedom of action’ orders, then it will inevitably “turn into a military conflict” which is “not what most Chinese and Indian people wish to see,” according to the editorial.

END

4/EUROPEAN AFFAIRS

GERMANY/ECB/BUNDESBANK

An update from the German constitutional Court re Germany’s participation in new QE..they may be relaxing their decision somewhat..

(Dembiz/Saxo Bank/)

ECB : An Update On The German Constitutional Court’s Ruling

Submitted by Christopher Dembik, head of Macro Analysis at Saxo Bank

Summary:  Over the past week, several signals from Germany have tended to indicate an easing of tension between the German Federal Constitutional Court (GFCC) and the ECB. The GFCC has until early August to decide whether or not the Bundesbank should keep participating to the ECB’s bond-buying program. Overall, we continue to believe tensions will continue de-escalating and a political crisis resulting from the Bundesbank being forbidden to repurchase assets is unlikely to happen. However, we are fully aware that further legal cases will be launched in Germany – all of them doomed to fail, but it will fuel ongoing noise.

We are halfway through the process started on May 5 when the GFCC ruled that the 2015 bond-buying program (Public Sector Purchase Programme – PSPP) by the ECB would be illegal under German law unless the ECB can provide adequate justification by early August. Over the past weeks several developments tend to indicate that a fair solution to the dispute will be found, thus avoiding a political crisis that could endanger the ECB’s ability to face the impact of the crisis.

First, Bundesbank President Weidmann expressed confidence that the ECB will be able to demonstrate the proportionality of the PSPP and that the ECB may produce such an assessment as early as this week. Though it is not clear, Weidmann was perhaps referring to the release of the ECB account of June 3-4 meeting on Thursday that is likely to stress repeatedly proportionality of policy actions by members of the Governing Council. Yesterday, he reiterated that PEPP should be flexible, but not unbound, and that capital key remains a very useful benchmark to guide the ECB’s action. It shows that he has clearly softened its tone over the past few weeks and wants to serve as an intermediary between the ECB and the GFCC to appease tensions.

Second, two prominent GFCC judges (Hubert, who drafted the ruling requesting further clarification from the ECB, and Wallrabeinstein, who is the new president, replacing the controversial president Voßkuhle) suggested that a solution might be found following elements of responses provided by Lagarde and that a formal new ECB Governing Council decision might not be necessary to satisfy the judges. These are particularly positive signals that tend to corroborate the idea that Europe might avoid a political crisis caused by few politicized judges at the worst possible time – when everyone is normally on holiday and in the middle of the economic crisis.

That being said, we believe that legal cases that might be launched in the future in Germany are all doomed to fail and should not represent a real threat to QE. It will mostly fuel, from time to time, ongoing noise against the central bank.

 end
EU/USA 
The USA is now planning to slap tariffs on 3 billion dollars worth of European good
(zerohedge)

US Draws Up Plan To Slap Tariffs On $3.1 Billion In European Goods

Back in October, the World Trade Organizations announced that the US could legally retaliate against the EU by slapping new tariffs on some $7.5 billion in European exports as punishment for the Europeans providing illegal government subsidies to Airbus. At the time, we warned that this was like throwing gasoline on the embers of the US-EU trade spat as the Trump administration auto tariffs still loomed large over the global economic landscape.

Since then, the US has imposed some of those tariffs. Now, Robert Lighthizer has a plan for the last $3.1 billion

In keeping with the ruling, the Office of the Trade Rep has finally come up with a list of European goods to be targeted by these tariffs. But Lighthizer & Co. are also planning to increase tariffs on other European goodsfrom aircraft and aircraft parts to dairy products like cheese and yogurt according to a notice published late Tuesday evening outlining the department’s actions, and opening a month-long comment period to solicit feedback before pushing ahead.

Review of Action Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute June 23 2020 by Zerohedge on Scribd

According to Bloomberg, if the US follows through with this plan, it could hammer European luxury brands and spirit makers at a time when those businesses are already feeling a serious pinch from the coronavirus outbreak, which has hurt consumption of liquor at restaurants and social gatherings (while many have been buying more booze to enjoy at home).

If the U.S. follows through with its plan, it could hammer European luxury brands like Givenchy and Hermes — which produce leather goods — and Remy Cointreau and Pernod Ricard, which make cognac and champagne. LVMH Moet Hennessy Louis Vuitton would be particularly vulnerable because it produces a wide array of these products.

Tariffs on British gin could increase U.S. prices at peak season for gin-and-tonics, potentially hurting British spirits companies like Diageo Plc, the London-based maker of Tanqueray; James Burrough, the maker of Beefeater gin; and William Grant & Sons, the maker of Hendricks gin.

German imported beer would also take a hit, potentially giving a boost to the oversaturated American craft beer market.

New U.S. duties might also dampen demand for German beer ahead of any Oktoberfest celebrations that aren’t already canceled because of the coronavirus.

The addtional import taxes would already add to the 25% tariff the U.S. imposed last year on imports of Scotch and Irish Whisky and liqueurs and cordials from Germany, Ireland, Italy, Spain, and UK.

The Distilled Spirits Council in the U.S. said it opposed any additional spirits tariffs, which would “escalate trade tensions across the Atlantic and further jeopardize American companies and hospitality jobs already under duress as a result of COVID-19,” according to a statement.

BBG explains that the strategy employed by the US Trade Rep is known as “carousel retaliation”, whereby the industries targeted by tariffs are occasionally shifted to spread the pain around, and inject additional pain due to the “uncertainty” of who will be targeted next.

In the meantime, Trump’s top trade official, Robert Lighthizer, has sought to increase pressure on the Europeans by deploying a particularly damaging tactic called “carousel retaliation,” whereby a country periodically shifts tariffs on different groups of goods.

Tuesday’s USTR notice is a reminder that the U.S.’s tariff targets may shift or be subject to higher levies — a strategy that spreads the sanctions pain across an array of industries, creating uncertainty for businesses and headaches for exporters and importers alike.

Earlier this year the U.S. deployed its carousel retaliation strategy to increase tariffs on exports of Airbus aircraft and parts from 10% to 15%. To date the U.S. has only deployed tariffs on goods worth about half of its permitted retaliation levels.

Lighthizer said his goal in increasing tariffs is to persuade the EU to agree to a settlement. But talks between the U.S. and the EU have floundered this year, and now the EU is preparing to retaliate with new tariffs against an array of politically sensitive U.S. industries.

Both sides also have the option of reaching a settlement, but the talks have reportedly become fairly contentious, prompting the Europeans to back out. This is why Lighthizer is opting for the extra-painful “carousel” approach: The US is ratcheting up the pressure on the Europeans to cave and strike a deal.

But with everything going on, they’ll likely only succeed in angering Brussels. As the world digs itself out from the coronavirus crisis, the US’s position is clear: It’s every nation for themselves. We’ll see how they – and the market – like it when the EU responds by slapping tariffs on some $11.2 billion in US goods.

With so much at stake, it’s hardly a surprise the market is off this morning.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

CANADA//BROOKFIELD

Mall giant Brookfield demands rent payments despite skipping its own payments to lenders..

(zerohedge)

Mall Giant Demands Rent Payments Even As It Skips Its Own

For all the talk of a V-shaped economy recovery – which predictably tends to always gravitate to the performance of the stock market which is acting as if the coronacrisis never happened and is now fully disconnected from all fundamentals – few have been willing to address the sobering fact that some 30% of Americans failed to make their June housing payment.

However, the situation is even more dire in the commercial real estate sector where defaults are soaring, and where the latest remittance data indicates that the June CMBS update will be absolutely catastrophic. One company affected directly by the ongoing implosion in CRE is Canadian investment/real estate conglomerate Brookfield Asset Management, which as the FT reports, is now chasing small retailers to pay thousands of dollars in rent on outlets that were forced to close during the coronavirus pandemic, yet even as the Canadian investment group skips payments on its mortgages and asks lenders for forbearance.

Now that the horror of the widespread shutdowns is fading into memory, some shopkeepers who lease kiosks and small stores inside Brookfield malls have been told to pay rent for April and May, a period during which the properties were mostly closed, the Financial Times reports, adding that “several tenants who asked for rent forgiveness described being asked to provide extensive financial information, including their personal tax returns for the past two years.”

The merchants, who requested anonymity for fear of antagonising a powerful landlord, said Brookfield ultimately refused to waive the payments, although it offered to give them until the end of 2021 to come up with the money.

Separately, a group of half a dozen tenants signed a joint plea for help and presented it to managers at one of the Canadian group’s shopping centers, although they received a less than warm welcome: “I will not address the merits of your ‘petition’,” a Brookfield lawyer wrote back adding that confidentiality clauses written into the shopkeepers’ leases meant that talking to each other about the contracts “could be deemed a default of your agreement with Brookfield.”

That response will hardly serve as the basis for a healthy, long-term relationship between the landlord and its clients. Indeed, three-quarters of Brookfield’s tenants have requested changes to their lease agreement, and the group said it had “actively engaged with all [of them] . . . prioritiz[ing] small businesses given their scale and immediate cash flow requirements.”

“We are now focused on national tenants,” Brookfield added, stating that it hoped to complete the discussions by September. “We have also been in active dialogue with our lenders given the subsequent impact this situation has had on our cash flow.”

What it means is that a handful of tenants will be allowed to push back rent payment for a month, maybe two max, but everyone else will be forced to come up with the cash. Why? Because Brookfield itself is now on the edge.

According to the report, “Brookfield has requested forbearance from lenders who are owed payments on a dozen of its malls, according to reports circulated to credit market participants who have bought the debt.” In other cases, Brookfield malls have been unable to repay mortgages that came due.

As of last week, creditors of four of the malls had not decided whether to grant the requests, the reports state.

Brookfield’s concurrent discussions with its tenants – where it demands to be paid now – and lenders – where it demands not to pay indefinitely – highlight how the forced shutdown of much of the economy has caught mall operators in a bind, and demonstrates just how precarious the ongoing impairment in cash flows affects all players in the same chain.

Meanwhile, as we discussed earlier this month, as real estate executives say they are sympathetic to the plight of retailers, many of which were struggling even before government mandates closed their stores, at the same time mall operators are dependent on rent instalments to meet the payments due on their loans.

Brookfield last week became the second major landlord to sue clothes retailer Gap in a dispute over unpaid rent, shortly after Simon did the same. Among the major retailers that have acknowledged seeking rental relief from landlords are Bed Bath & Beyond, Levi Strauss and Urban Outfitters. Several chains are asking mall operators to waive rent for periods when their properties were closed. Ultimately, many retailer outlets will be forced to file for bankruptcy, resulting in far more pain for malls and is the reason why unlike stocks, various CMBS have seen only a modest bounce since the March lows.

EN

CORONAVIRUS//UPDATE

Global Coronavirus Deaths Near Half A Million As US Daily Cases Surge: Live Updates

Summary:

  • Global COVID deaths top 475k
  • Cases top 9.2 million
  • US cases near 2.5 million
  • Deaths top 120k
  • 27 states see cases increasing
  • Australia sees another cluster
  • Beijing says latest cluster is contained
  • China has done 90 million nucleic acid tests
  • UK moving to relax restrictions
  • WHO warns Africa testing capacity improving

* * *

A pullback in risk assets on Wednesday has swerved the spotlight back to the burgeoning global coronavirus crisis, a resurgence in global cases driven primarily by the US, Latin America and a handful of Asian or Eurasian countries including India and Russia (and several of their neighbors).

Most alarmingly, the US is on track to seeing the average number of new infections reported daily eclipse the highs from the “peak” of the outbreak back in April, when New York, New Jersey, Massachusetts and Connecticut saw the number of patients hospitalized and in the ICU hit their peaks. While deaths have lagged amid evidence that the rising case counts in the US are being driven primarily by young people acting irresponsibly, in roughly a week, the US will eclipse the 50k cases per day mark, at which point a surge in deaths and more severe cases will be virtually inevitable.

At this point, the alarming surge in new cases seen along the sunbelt states from Florida to Arizona on to California is clearly being driven by loosening restrictions on the economy, as states that waited the longest to close down have also been among the first to reopen. At first, it looked like this strategy had been vindicated as Georgia appeared to have dodged the feared second wave. But the state has since seen its daily case counts move back into record territory: Arizona, California, Texas and Mississippi all reported record increases in new cases yesterday, along with other states.

A staggering 27 states are now seeing cases increase, according to the NY Times.

Per WaPo, 33 states and US territories have reported a higher rolling average than last week. But even as case numbers climb, the federal government is poised to turn off the taps for federal funding to boost testing in hard-hit states like Texas. We suppose that’s what Trump meant when he said he “wasn’t joking” about trying to slow down the testing.

As a team of analysts from Fundstrat put it: “The rise is across multiple states, and while testing is higher, the synchronized rise across states is the bigger driver. The trend in cases is not good, and at face value, should be alarming.”

But it’s not just the US and Brazil. Germany reported 712 new cases of COVID-19, an increase of more than 200 from the number reported yesterday as Germany struggles with an outbreak at a meatpacking plant, while Tokyo reports 55 infections, its highest daily tally since May 5.

Localized lockdowns have been adopted in Germany (in the area surrounding the meatpacking plant which also happens to be located in Germany’s most populous state, North Rhine-Westphalia), and Israel as well as PM Benamin Netanyahu uses the lockdown and the pandemic response more broadly to try and protect his interests during his ongoing legal troubles.

As some EU members reopen their borders to intra-bloc tourists, Brussels is weighing whether to keep Americans out past July, when the bloc will begin to reopen its borders to countries where the virus isn’t widely spreading. The US clearly doesn’t meet this criteria, and President Trump showed Europe no similar consideration when he barred travelers from the Continent as well as Great Britain a few months back.

China’s policy of responding to every new outbreak with overwhelming force (while its propagandists work to blame it on the US and the West) has managed to successfully contain an other outbreak. The latest outbreak in Beijing has now been contained, Lei Haichao, head of Beijing Municipal Health Commission, said during a briefing on Wednesday. The virus spread very fast and a large number of cases emerged in a short period, Lei said. Beijing reported just seven additional local coronavirus infections for June 23, down from 13 the day before, per the NHC.

NHC officials told WaPo that they’ve conducted more than 90 million nucleic acid swab tests since the pandemic began.

Even in Australia, the state of Victoria saw 20 new cases in the past 24 hours and one man in his 80s died, bringing the national death toll to 103, weeks after the country reopened on the view that the outbreak had been successfully quashed.

“The most recent one million cases of COVID-19 were reported in just one week,” Tedros Adhanom Ghebreyesus said during a virtual conference on COVID-19 vaccine development and access across the continent.

Though cases have picked up slightly in recent weeks, Africa has largely surprised health officials by avoiding the devastating outbreaks that many had feared.

Globally, the number of coronavirus cases topped 9.2 million, while the global death toll topped 475k. In the US, cases neared the 2.5 million mark, while deaths topped 120k.

As we reported last night, Texas Children’s Hospital began admitting adult patients, as hospitalizations have soared in Harris County in and around Houston. Meanwhile, Gov. Greg Abbott urged Texans to stay inside to avoid spreading the virus, finally acknowledging that “the safest place for you is at your home,” he said Tuesday.

end

Michael Every on today’s events and what it means..

(Michael Every)…

Rabo: “We Apparently Live In A Bad Hollywood B-Movie”

Submitted by Michael Every of Rabobank

De/Escalation

To my fevered mind, the title of today’s Daily –“De/Escalation”– could have been a fantastically-bad Hollywood B-movie ‘Face/Off’ clone: Nicholas Cage escalates a tricky situation with a ticking time-bomb somewhere in a beautiful mountain setting, while John Travolta has to de-escalate by defusing the bomb before it blows. I can even see the poster with a snowy mountain dividing their faces looking left and right with the log-line: “He’s Escalating on Thin Ice”.

Given we DO apparently live in a bad Hollywood B-movie, it’s perhaps not a surprise we have seen so much de/escalation in the last 24 hours.

De-escalation: After the brief trade war U-turn U-turn yesterday, India and China are reportedly withdrawing military forces from the border where they clashed last week. (Though Indian government critics suggest China is not conceding the territorial advantage it has seized, meaning it wins from the situation; India is rushing to order new Russian weapons; and the India-China political dynamic has changed irrevocably.) North Korea has also decided it isn’t going to proceed with military action against the South. Suddenly it’s all sunshine in geopolitics.

Escalation: Apart from the drone and missile attack on Riyadh yesterday, and Egypt threatening to moving militarily against Turkey in Libya. Also, we saw two separate articles in the South China Morning Post yesterday warning about US-China war, one based on Thucydides and the real politik recognition the US is never going to allow China to supersede it as primus inter pares; the second quoting Chinese research that President Trump has just a 30% chance of winning the election and can only win via: (1) the US-China trade deal working; or (2) a short, sharp war with China in the South China Sea. The fact that this was published in stability-obsessed China is itself telling. Given the view the US-China trade deal is going to fail anyway, it’s also quite worrying if you believe it. What’s it they say: ”Your worries don’t amount to a hill of beans”? Maybe they do.

De-escalation: In the US Dr. Fauci says that a virus vaccine is probably on the way soon.

Escalation: ….which is good news given he also reports a “disturbing surge” in US virus infection numbers as cases continue to soar in places like California, Texas, Florida, and Arizona, and are even creeping up again in New Jersey. Short term risks are that when the EU re-opens its borders in July, US citizens will now be excluded. Quite the movie plot-twist in that development given how that travel dynamic played out earlier in the year. Meanwhile, the world virus situation continues to rapidly deteriorate, and reports are health-care professionals are looking ahead to the looming ‘flu season, now just a few months away, and fear a deadly confluence of Covid and influenza.

De-escalation: US Treasury Secretary Mnuchin states the States will be out of recession by year end: which is possible but depends on the virus outlook. Another fiscal stimulus package is also being considered: which helpfully shows war with China is NOT the only possible path to election victory. (Although Mnuchin underlined he is expecting China to adhere to the trade deal.)

Escalation: Nouriel “Dr Doom” Roubini and former World Bank head Joseph Stiglitz underline (as Bloomberg puts it) that: “the global economy faces a bleak future in which capitalism could take a beating unless governments get their policy responses just right.” It *is* taking a beating already. Imagine what the capitalist economy would look like without the socialism of government support right now – which starts to run out in months. The problem is most of the socialism is for the rich in too many places. As you may have noticed, there are already more than a few critics of the system making their voices heard. What happens when current support measures are withdrawn? What happens if they aren’t? Both the well-known economists add that globalisation has “taken another hit”, that the future recovery will be even worse than the one Main Street (not Wall Street) endured post-2008, and that stagflation is now a significant risk too. It’s also not just a Western problem: even the China Beige Book says Chinese GDP shrank again in Q2 and hence the country is in technical recession (though of course we should not necessarily expect official data to reflect that). How does China respond to its parallel to ‘re-election risk’?

You think this “De/escalation” movie stinks? You are right, it does. Proudly! But look out the window and consider I could easily have gone with “Sharknado”.

end
CANADA
This hurts!!

Canada Loses Its AAA Rating

Fitch Ratings has downgraded Canada’s Long-Term Foreign Currency Issuer Default Rating (IDR) to ‘AA+’ from ‘AAA’ (outlook stable) citing the deterioration of Canada’s public finances resulting from the pandemic.

The nation is expected to run a bigger general govt deficit this year and emerge from recession with “much higher public debt ratios”

“The higher deficit is largely driven by public spending to counteract a sharp fall in output as parts of the economy were shuttered to contain the spread of the coronavirus”

The headline extended the losses on the loonie…

Oh, CanadAA+…

KEY RATING DRIVERS

The rating downgrade reflects the deterioration of Canada’s public finances in 2020 resulting from the coronavirus pandemic. Canada will run a much expanded general government deficit in 2020 and emerge from recession with much higher public debt ratios. The higher deficit is largely driven by public spending to counteract a sharp fall in output as parts of the economy were shuttered to contain the spread of the coronavirus. Although this will support recovery, the economy’s investment and growth prospects face challenges.

The Stable Outlook reflects Fitch’s expectation that Canada’s consolidated gross general government debt/GDP will stabilize over the medium term, in line with the pre-coronavirus policies, and that the economy will gradually recover, supported by significant counter-cyclical monetary and fiscal policies.

Canada’s structural strengths also underpin the ratings. These include its advanced, well-diversified and high-income economy, and Canada’s political stability, strong governance and macro policy framework, which has delivered steady growth and low inflation. Canada has a large positive net international investment position, driven by its foreign pension assets. However, reliance on foreign portfolio flows to finance sustained current account deficits is a weakness, which has contributed to a persistent and growing level of net external debt.

Fitch expects the coronavirus response to raise Canada’s consolidated gross general government debt to 115.1% of GDP in 2020, up from 88.3% of GDP in 2019. Canada’s consolidated gross general government (GG) debt, among the highest in the ‘AA’ category, exceeds the current ‘AA’ median of 42.3% of GDP projected for 2020, as well as its interest/revenue ratio (7.0% versus 2.7%, respectively). Fitch excludes unfunded pension liabilities but includes large (mainly intergovernmental) payables, which totalled 16.2% of GDP in 2019. Canada’s national pension funds have large investment assets, totalling 16.5% of GDP in 2019, which support lower official net debt metrics. Fitch expects Canada’s consolidated gross general government debt/GDP ratio to broadly stabilize at 120%-121% of GDP in 2022-2024.

Canada has a track record of fiscal adjustment during the 1990s. However, the structure of Canada’s decentralized fiscal framework increases the complexity of any fiscal adjustment. This increases downside risks to Fitch’s expectation that general government debt will broadly stabilize beyond 2021. Conversely, Bank of Canada’s asset purchase program will keep interest rates lower for a longer period and facilitate financing at the federal and provincial levels. Lower interest payments and improved access to financing provide short-term support to the rating. However, in Fitch’s view, these benefits are focused more on liquidity rather than solvency considerations and cannot override all other sovereign rating factors.

The pandemic has caused several provinces to pause deficit-reduction plans, and some premiers have urged greater direct federal financial support to the provinces. The current crisis will likely increase the need for federal support of provinces. Federal borrowing for crown corporations also increases debt. The federal minority Liberal government, which was returned to office in October 2019, had already loosened fiscal policy relative to the first term and postponed a pledge to stabilize net federal government debt in order to address the priorities of allied minority parties.

Fitch expects Canada’s general government deficit to widen to 16.1% of GDP in 2020 (from small overall surpluses of less than 1% of GDP during 2014-2019), then narrow to 6.5% and 3.0% of GDP in 2021 and 2022, respectively. The federal government has provided the bulk of national household income-support transfers and wage subsidies to businesses, which Fitch estimates will expand the federal government deficit to 12.8% of GDP in 2020. The deficit level will depend partly on the take-up of these two programs, which to date have disbursed around half of the CAD105 billion (5% of GDP) originally budgeted.

The provinces’ expanded aggregate deficit will reach 3.3% of GDP in 2020. Fitch includes further non-budgetary credit facilities and stock-flow adjustments in its general government financing estimate. Fitch expects the governments to finance the majority of their requirements domestically, supported by Bank of Canada’s (BoC) low 0.25% monetary policy rate and BoC’s provincial bond purchases. However, foreign portfolio flows to provincial and federal debt markets are meaningful, roughly one-fifth of provincial borrowing needs in 2020.

The Bank of Canada’s monetary policy response to the coronavirus has been substantial. In addition to BoC’s 150bp rate cuts to 0.25% in March, which is expected to extend through 2021, the BoC expanded liquidity supports to financial institutions; initiated secondary market purchases of corporate, mortgage, commercial paper, federal and provincial government securities; and enhanced liquidity swap lines with other DM central banks. BoC’s liquidity facilities and asset purchases swelled its balance sheet to 23% of GDP in mid-June from 5.5% of GDP in January, and purchases of federal government debt will continue. BoC’s inflation-targeting regime remains credible, anchored in its track record of low, stable inflation.

Pandemic lockdown measures and depressed global oil demand will cause a severe recession of the Canadian economy with 7.1% GDP contraction in 2020. Gradually improving global trade, commerce and domestic labor market conditions are expected to lead a 3.9% GDP recovery in 2021 supported by the reduction of trade uncertainties by the USMCA agreement’s implementation. However, Canada’s medium-term growth prospects, at approximately 1.7% per year prior to the pandemic, are limited by structural investment challenges and are below many DM peers.

Net outflows of equity FDI partially reflect competitiveness challenges relative to the U.S. market in certain sectors as well as international expansion by Canadian firms. U.S. tax changes in 2017 reduced Canada’s corporate income tax advantage. Interprovincial trade barriers remain high. Oil and gas investment has significantly slowed amid environmental and energy policy tensions and U.S. fracking-based production. Canada’s five-year average GDP growth of 1.7% was below 2.9% for the current ‘AA’ median for 2015-2019.

Canada’s large foreign equity assets, driven by pension funds’ foreign investments and corporate cross-border investments, place it in a net international investment asset position of 44% of GDP in 2019. Financial and trade integration of the North American market also benefit Canadian firms for market access and financing. However, reliance on foreign portfolio flows to finance sustained current account deficits has increased Canada’s net external debt (excluding foreign net equity assets) over the last decade.

Canada’s net external debt/GDP, 44.9%, is elevated and its current account deficit/GDP, 2.0%, is wide relative to the current ‘AA’ medians, a 18.6% net creditor position and a 2.3% surplus, respectively for 2019. Non-resident holdings of Canadian securities has risen to 52.6% of GDP in 2019 (of which corporate exposure is 30.8% of GDP and government exposure 28.3% of GDP) up from 24.7% of GDP in 2008. Although Fitch expects a fall in import demand to offset lower exports and BoC continues to freely float the Canadian dollar, limiting current account deterioration in 2020, Fitch expects the current account deficit and net FDI/GDP ratio to remain negative averaging 3.6% of GDP during 2020-2022, gradually increasing Canada’s net external borrowing.

Fitch placed its Canadian bank ratings on Negative Outlook in April (see https://www.fitchratings.com/site/pr/10117236). Fitch expects that large Canadian banks’ full-year 2020 profitability will meaningfully decline as a result of rapid economic deterioration in 2Q20 due to nation-wide Coronavirus lockdowns. The earnings of seven Canadian commercial banks rated by Fitch fell 50.1% yoy as the banks made unprecedented increases in provisions against performing loans (revenues only fell 4.9% yoy). The average common equity Tier 1 (CET1) capital ratio representative of six banks was 11.2%, and the seventh was higher in 2Q20. Fitch expects BoC’s large credit facilities and monetary easing to support liquidity until the economy regains momentum. (see https://www.fitchratings.com/site/re/10125995).

Canadian household indebtedness remains elevated, above 175% of disposable income since 2016, with debt service averaging 14.7% of disposable income in 1Q20. Housing price appreciation, an important driver, has tempered amid lower real-estate transaction volume and international travel restrictions dampening non-resident and skilled migrant purchases. Policies have been initiated to expand urban housing, but the supply will take several years to catch up. Canada’s ‘2’ macro-prudential indicator reflects these asset price appreciation risks.

ESG – Governance: Canada has an ESG Relevance Score (RS) of ‘5’ for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption, as is the case for all sovereigns. Theses scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in our proprietary Sovereign Rating Model. Canada has a high WBGI ranking at the 93rd percentile (‘AA’ median: 84th), reflecting its long track record of stable and peaceful political transitions, well established rights for participation in the political process, strong institutional capacity, effective rule of law and a low level of corruption.

*  *  *

There are now only ten countries in the world that have a AAA credit rating from the three international credit rating agencies, S&PMoody’s and Fitch. These countries are:

  1. Australia
  2. Denmark
  3. Finland
  4. Germany
  5. Luxembourg
  6. Netherlands
  7. Norway
  8. Singapore
  9. Sweden
  10. Switzerland

All of which may explain why the Loonie is at record lows against gold…

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

VENEZUELA/USA

Trump prepares to meet Maduro?

Maduro “Prepared” To Meet Trump After US President Said “Not Opposed” To Direct Talks

In a dramatic opening nobody expected, President Trump told Axios in an Oval Office interview last Friday that he would “maybe think about” a face-to-face meeting with Venezuela’s Nicolás Maduro to discuss to future of the embattled Latin American country.

“I would maybe think about that… Maduro would like to meet. And I’m never opposed to meetings — you know, rarely opposed to meetings,” Trump said when pressed on the matter. “I always say, you lose very little with meetings. But at this moment, I’ve turned them down,” he added.

Maduro responded Monday, saying he’s “prepared” to talk to Trump. “When the time comes I’m prepared to speak respectfully with President Donald Trump,” Maduro told state media.

This set off a political firestorm, with the Biden campaign seizing to moment to portray Trump as “weak” on Venezuelatargeting the Miami area with political ads to that effect.

“News of President Donald Trump’s willingness to meet some day with embattled Venezuelan ruler Nicolás Maduro is coming to the AM radio dial in Miami. And to Facebook, Instagram and YouTube,” Miami Herald reports Tuesday.

“We’ve known for some time that Donald Trump is no friend to the Venezuelan people fighting for human rights and democracy in their country, and now there can be no doubt,” the Biden campaign announced in a statement. “This is deeply personal to all those in South Florida who have fled to the United States from the brutal Maduro regime, and this November, Floridians are going to hold Trump accountable for his behavior toward the Venezuelan people and elect Joe Biden.”

Perhaps backtracking on the Axios interview, or at least sensing he needed to clarify based on the growing Biden campaign pressure in Florida, Trump tweeted Monday in follow-up: “My Admin has always stood on the side of FREEDOM and LIBERTY and against the oppressive Maduro regime! I would only meet with Maduro to discuss one thing: a peaceful exit from power!

Donald J. Trump

@realDonaldTrump

Unlike the radical left, I will ALWAYS stand against socialism and with the people of Venezuela. My Admin has always stood on the side of FREEDOM and LIBERTY and against the oppressive Maduro regime! I would only meet with Maduro to discuss one thing: a peaceful exit from power!

Of course, the admin does indeed have a record of covert coup attempts targeting the socialist country, not to mention bestowing official recognition on opposition leader Juan Guaido as ‘Interim President’.

Trump has also long discussed a naval blockade on the country to ensure no sanctions busting, however, his admirals and generals have reportedly balked, citing the practical difficulty of such an effort, not to mention the potential of getting dragged into a new war in America’s ‘backyard’ with little in the way of defined end goals.

But given the controversy over the possibility of a Trump-Maduro meeting, a remote scenario at this point, nothing is likely to materialize ahead of November, given the political sensitivity especially in the key battleground state of Florida.

 

 

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

Euro/USA 1.1282 DOWN .0031 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS//PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 106.70 UP 0.298 (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 1.2492   DOWN   0.0030  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3577 UP .0035 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 31 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1282 Last night Shanghai COMPOSITE CLOSED UP 8.93 POINTS OR 0.30% 

 

//Hang Sang CLOSED DOWN 125.76 POINTS OR 0.50%

/AUSTRALIA CLOSED UP 0,20%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 125.76 POINTS OR 0.50%

 

 

/SHANGHAI CLOSED UP 8.93 POINTS OR 0.30%

 

Australia BOURSE CLOSED UP. 20% 

 

 

Nikkei (Japan) CLOSED DOWN 14.73  POINTS OR 0.07%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1774.35

silver:$17.71-

Early WEDNESDAY morning USA 10 year bond yield: 0.73% !!! UP 1 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.50 UP 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 96.93 DOWN 28 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.46% DOWN 3 in basis point(s) yield from YESTERDAY/

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

SPANISH 10 YR BOND YIELD: 0.46%//DOWN 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,26 DOWN 3 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 80 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 1.70% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.12720  DOWN     .0014 or  14 basis points

USA/Japan: 106.83 UP .406 OR YEN DOWN 41  basis points/

Great Britain/USA 1.2432 DOWN .0092 POUND DOWN 92  BASIS POINTS)

Canadian dollar DOWN 60 basis points to 1.3602

 

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The USA/Yuan,CNY: AT 7.0781    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0737  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8572 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +02%

 

Your closing 10 yr US bond yield DOWN 2 IN basis points from TUESDAY at 0.70 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.45 DOWN 4 in basis points on the day

Your closing USA dollar index, 97.04 UP 39  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 196.43  3.11%

German Dax :  CLOSED DOWN 429.82POINTS OR 3.43%

 

Paris Cac CLOSED DOWN 146.32 POINTS 2.92%

Spain IBEX CLOSED DOWN 242.90 POINTS or 3.27%

Italian MIB: CLOSED DOWN 678.60 POINTS OR 3.42%

 

 

 

 

 

WTI Oil price; 37.42 12:00  PM  EST

Brent Oil: 40.23 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    69445  THE CROSS HIGHER BY 0.59 RUBLES/DOLLAR (RUBLE LOWER BY 59 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 :  37.85//

 

 

BRENT :  40.25

USA 10 YR BOND YIELD: … 0.695..down  2 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.45..down 5 basis points..

 

 

 

 

 

EURO/USA 1.1252 ( DOWN 61   BASIS POINTS)

USA/JAPANESE YEN:107.05 UP .631 (YEN DOWN 63 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.17 UP 55 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2416 DOWN 108  POINTS

 

the Turkish lira close: 6.860

 

 

the Russian rouble 69.63   DOWN 0.77 Roubles against the uSA dollar.( DOWN 77 BASIS POINTS)

Canadian dollar:  1.3626 DOWN 85 BASIS pts  CANADA DOWNGRADED BY FITCH TO AA FROM AAA

 

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

 

The Dow closed DOWN 710.16 POINTS OR 2.72%

 

NASDAQ closed DOWN 222.20 POINTS OR 3.21%

 


VOLATILITY INDEX:  34.58 CLOSED UP  3.21

LIBOR 3 MONTH DURATION: 0.296%//libor dropping like a stone

LIBOR/OIS: .225%’

TED SPREAD  (3 MONTH TREASURY VS LIBOR) : .146%

 

USA trading today in Graph Form

COVID-Comeback Batters Big-Tech & Black Gold, Sparks Bond Bid

Just when you thought it was safe to buy any stock – selected at random via Scrabble letters – on any dip, with levered money you can’t afford to lose, COVID-19 reappears in size to steal the jam out of your donut.

Last Friday saw surges in COVID cases across many states and news that Apple would be re-closing stores in a handful of states. That sent stocks tumbling. Today – after a few days of exuberant dip-buying, those same states hitting new record highs (and more Apple store closures) sparked an even more impressive plunge (and was not helped by The IMF’s downbeat forecast for the global economy)…

  • 0905ET California COVID-19 cases rise 3.9% or +7,149 to 190,222 (up from +5,019)
  • 0938ET Texas reported a 7.3% rise in Covid-19 hospitalizations to 4,389 from 4,092 yesterday.
  • 1033ET *FLORIDA COVID-19 CASES RISE 5.3% VS. PREVIOUS 7-DAY AVG. 3.7%
  • 1130ET *HOUSTON-AREA INTENSIVE CARE UNITS ARE AT 97% OF CAPACITY: CITY
  • 1140ET *NEW YORK, N.J. AND CONNECTICUT ORDER VISITORS TO QUARANTINE
  • 1400ET *CALIFORNIA HOSPITALIZATIONS UP 29% IN 14 DAYS, NEWSOM SAYS
  • 1440ET *APPLE TO RE-CLOSE 7 STORES IN HOUSTON, TX ON COVID-19 SPIKE

All building on one another to slam stocks lower (led by Small Caps) ending the 8-day win streak in Nasdaq (there was a late-day bounce on chatter of $1 trillion stimulus again but a $3bn MoC ruined that fun and games)…

And the result – a collapse below the Navarro lows, back To Friday’s lows…

As Virus fears surge to one-month highs…

Source: Bloomberg

The S&P fell back towards its 50DMA…

And the Dow failed once again to break above its 50DMA…

Momentum continued its rabid bounce back today – after perfectly reversing at unchanged for 2020…

Source: Bloomberg

The dollar was bid today…

Source: Bloomberg

Treasury yields tumbled 405bps at the long-end today…

Source: Bloomberg

Are stocks about to catch down to bond’s reality?

Source: Bloomberg

Or profits…

Source: Bloomberg

And while bonds saw safe-haven bids, bitcoin did not…

Source: Bloomberg

And gold was monkeyhammered too around the London Fix (after failing to break $1800)…

But note that gold’s tumble stalled at yesterday’s fix…

Source: Bloomberg

Silver was hit harder. busting back below $18…

Oil prices tumbled as COVID (demand) and inventory/production (supply) concerns smacked WTI back to a $37 handle…

Finally, we wonder just how far stocks will fall this time?

Source: Bloomberg

And just how quickly The Fed will need to restart its money-printing malarkey…

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

Dow Drops Below ‘Navarro’-Lows As COVID Case Concerns Soar Nationwide

Update (1040ET): It seems, all of a sudden, that the market is taking the risk of a second wave of COVID-19 seriously…ish…

  • 0905ET California COVID-19 cases rise 3.9% or +7,149 to 190,222 (up from +5,019)
  • 0938ET Texas reported a 7.3% rise in Covid-19 hospitalizations to 4,389 from 4,092 yesterday.
  • 1033ET *FLORIDA COVID-19 CASES RISE 5.3% VS. PREVIOUS 7-DAY AVG. 3.7%

Slamming Dow futures below the Navarro lows…

 

Perhaps this is why?

Dave Portnoy@stoolpresidente

ETRADE decided not to work this morning. My rep is on fucking vacation. THIS WILL NOT END WELL FOR YOU ETRADE

Embedded video

*  *  *

Reports of yet another record surge in California COVID-19 cases has sparked something unusual in today’s market – selling!

  • California COVID-19 cases rise 3.9% or +7,149 to 190,222 (up from +5,019)

Additionally, Texas reported a 7.3% rise in Covid-19 hospitalizations to 4,389 from 4,092 yesterday.

Nasdaq futures were ubiquitously ramped at the cash open and briefly went green before selling pressure resumed…

The Dow failed at its 50DMA once again…

Dow futures are back at Navarro’s lows..

AAPL’s not helping – although the sudden panic-bid at the open did push Nasdaq green briefly…

Bond yields are also tumbling…

Is this move in stocks just another opportunity to buy for the RHers? Or is this the turn back to reality?

ii)Market data/USA

iii) Important USA Economic Stories

AOC defeats MCC in the democratic primary.  Money can not buy a movement:  far left socialism..

Brugen/Epoch times.

“Money Can’t Buy A Movement” – AOC Trounces MCC In New York Primary

Authored by Isabel van Brugen via The Epoch Times,

Rep. Alexandria Ocasio-Cortez (D-N.Y.), on Tuesday night won her Democratic primary in New York’s 14th District, defeating challenger Michelle Caruso-Cabrera, a former anchor for CNBC.

Progressive freshman lawmaker Ocasio-Cortez, who became the youngest woman ever to serve in Congress in the United States in 2018, brought a huge campaign war chest and a national profile to her bid for a second term in her diverse district encompassing parts of the Bronx and Queens in New York City. She won some 70 percent of the vote.

Democratic challenger Caruso-Cabrera, a former CNBC television anchor, had the backing of the conservative U.S. Chamber of Commerce, which usually supports Republicans.

As Robert Wenzel noted, you have to be a very special politician to defeat a socialist like AOC who is popular with the masses.

“When I won in 2018, many dismissed our victory as a ‘fluke.’ Our win was treated as an aberration, or because my opponent ‘didn’t try.’ So from the start, tonight’s race was important to me,” Ocasio-Cortez said on Twitter Tuesday night. “Tonight we are proving that the people’s movement in NY isn’t an accident. It’s a mandate.”

Alexandria Ocasio-Cortez

@AOC

When I won in 2018, many dismissed our victory as a “fluke.”

Our win was treated as an aberration, or bc my opponent “didn’t try.”

So from the start, tonight’s race was important to me.

Tonight we are proving that the people’s movement in NY isn’t an accident. It‘s a mandate.

“No amount of money can buy a movement,” she said in a video shared on the social media platform, adding that her victory came despite Wall Street opposition. Wall Street executives raised more than $2 million to support the 51-year-old former television anchor Caruso-Cabrera.

Alexandria Ocasio-Cortez

@AOC

Wall Street CEOs, from Goldman Sachs to Blackstone, poured in millions to defeat our grassroots campaign tonight.

But their money couldn’t buy a movement.

Thank you , and every person who pitched in for tonight’s victory.

Here’s to speaking truth to power.

Embedded video

Ocasio-Cortez, 30, raised more than $10.5 million, exceeding the totals collected by her other challengers by far. She rose to political stardom in 2018 after ousting Rep. Joe Crowley in a stunning primary. Crowley overwhelmingly outspent her and appeared to be in line to become House speaker.

Ocasio-Cortez’s victory came after a Republican candidate challenging the 30-year-old announced on May 25 that she had dropped out of the congressional GOP primary race.

Scherie Murray, a businesswoman and Jamaican immigrant, on May 25 announced the news citing executive orders issued by New York Gov. Andrew Cuomo in response to the CCP virus pandemic as hindering the electoral process.

“Governor Cuomo’s undemocratic Executive Orders overthrew New York’s electoral process,” Murray’s campaign said. “The right to access the ballot, freedom of association as a member of a political party, the exchange of ideas and free speech are so sacred that the Founding Fathers made it the First Amendment to the Constitution of the United States.”

“Notwithstanding, during the coronavirus pandemic, Governor Cuomo’s Executive Orders have gone unchecked, affirming the ability to silence Murray’s First Amendment rights,” the statement continued.

“As long as avowed socialists are legislators, you can rest assured I will use my platform to advocate for the kitchen table issues of the toughest, hardest working New Yorkers,” Murray said. “This is not the end for Scherie Murray because I will continue to work hard.”

Meanwhile, presumptive Democratic presidential nominee Joe Biden won the Democratic presidential primary in New York.

Ocasio-Cortez will face Republican John Cummings, a retired New York Police Department officer, in the November election for the Northwest Queens-East Bronx House seat.

END

GNC/BANKRUPTCY PROTECTION

GNC files for Chapter 11 and they will not be alone

(zerohedge)

GNC Files Chapter 11 Bankruptcy With Plan To Sell Itself 

On Tuesday, we noted that weekly bankruptcies are soaring, the most in over a decade, and there is a striking correlation between the unemployment rate and chapter 11 filings. Not too long ago, we said that a “biblical” wave of bankruptcies is about to flood the U.S. economy.

With that being said, and at no surprise, GNC Holdings, Inc. filed for bankruptcy protection on Tuesday night, intending to sell its business and shutter over 1,000 stores.

The health and wellness brand, based in Pittsburgh and founded in 1935, “expects the Chapter 11 process will benefit its stakeholders and best position the Company for long-term success.” The Chapter 11 petition was filed in U.S. Bankruptcy Court in Delaware will allow the company “to restructure its balance sheet and accelerate its business strategy.”

GNC said it reached a deal with its secured lenders for approximately $130 million in additional liquidity to continue operations through the bankruptcy process and work toward a prearranged reorganization plan with creditors.

“GNC has secured approximately $130 million in additional liquidity through (i) a commitment from certain of its term lenders to provide $100 million in “new money” debtor-in-possession (DIP) financing and (ii) approximately $30 million to come from certain modifications to the existing ABL credit agreement,” GNC said. 

The company said it “reached an agreement in principle for the sale of the Company’s business” – with the starting bid price of $760 million, subject to court approval.

“With the support of its lenders and key stakeholders, the company expects to confirm a standalone plan of reorganization or consummate a sale that will enable the business to exit from this process in the fall of this year,” GNC said.

GNC estimated its total debts at $895 million and total assets of $1.4 billion. The company plans to close 800 to 1,200 of its 5,200 retail locations throughout the U.S.

“This acceleration will allow GNC to invest in the appropriate areas to evolve for the future, better positioning the company to meet current and future consumer demand around the world,” GNC said in a statement.

Robinhood pajama daytraders panic buying, yet, another bankrupted company…

The retail industry’s temporary shutdown of stores to mitigate the spread of the virus has been absolutely catastrophic – the ripple effect has led to some retailers not paying rent, which has pressured real estate companies. Several large mall operators are under severe financial distress thanks to retail tenants skipping out on rent payments:

Ultimately, GNC will not be alone – many other retail outlets will be forced to file for bankruptcy this year, resulting in far more pain for commercial real estate companies. So for all the talk of a V-shaped economic recovery – well it’s just nonsense.

END
This will surely kill tourism in NY and interstate trade
(zerohedge)

New York, New Jersey & Connecticut Orders Visitors To Quarantine For 2 Weeks

The tables have turned…

Recalling the early weeks of the coronavirus outbreak in the US, New York, Connecticut and New Jersey are ordering all visitors to their states, which have only recently gotten over the worst of the viral outbreak, to quarantine for two weeks first.

Notably, states like Florida imposed restrictions on travel from the northeast during the early days when NYC was the undisputed national epicenter of the outbreak. Gov Cuomo once threatened to sue Rhode Island after the state’s governor asked state troopers to stop drivers with out of state license plates to see if they were violating quarantine rules.

Meg Tirrell

@megtirrell

Cuomo holding joint briefing with NJ Gov Phil Murphy, CT Gov Ned Lamont https://twitter.com/megtirrell/status/1275814524638150657 

Meg Tirrell

@megtirrell

Cuomo holding live briefing now: http://www.governor.ny.gov

Meg Tirrell

@megtirrell

Cuomo: We’re (NY, NJ, CT) announcing today a joint travel advisory – people coming in from states that have a high infection rate must quarantine for 14 days, and we have a calibration for the infection rate.

Meg Tirrell

@megtirrell

Cuomo: Any state that goes over that infection rate, that state will be subject to the quarantine. It’s only for the simple reason that we worked very hard to get the viral transmission rate down.

Meg Tirrell

@megtirrell

Cuomo: criteria for quarantine are 10 infections per 100k on 7-day rolling avg or 10% of total population positive on 7-day rolling avg. Any state that has infection rate above that would require 14-day quarantine. As of today, states that qualify are: AL AR AZ FL NC SC WA UT TX

Meg Tirrell

@megtirrell

How will 14-day quarantine be enforced?

Cuomo: Each state will do its own. In NY it’s an advisory, you’re informed you should quarantine for 14 days. Notes police officers may stop cars with out of state license plates. (Cont)

Per WaPo“The governors of the tri-state area jointly announced the travel advisory, which requires a 14-day quarantine for visitors from states whose infection rates meet certain thresholds indicating “significant community spread,” according to New York Gov. Andrew M. Cuomo (D). Nine states currently meeting that threshold, Cuomo said: Alabama, Arkansas, Arizona, Florida, North Carolina, South Carolina, Washington, Utah and Texas.”

Unsurprisingly, Cuomo broke the news with a tweet.

Andrew Cuomo

@NYGovCuomo

I am announcing with @GovMurphy and @GovNedLamont a joint travel advisory. All individuals traveling from states with significant community spread of COVID into NY, NJ, or CT must quarantine for 14 days.

This travel advisory is effective midnight tonight.

Equities are moving even lower on the news, and Dow futures just took out their lows from Sunday night.

Here’s the timeline of today’s selloff in COVID headlines:

  • 0905ET California COVID-19 cases rise 3.9% or +7,149 to 190,222 (up from +5,019)
  • 0938ET Texas reported a 7.3% rise in Covid-19 hospitalizations to 4,389 from 4,092 yesterday.
  • 1033ET FLORIDA COVID-19 CASES RISE 5.3% VS. PREVIOUS 7-DAY AVG. 3.7%
  • 1130ET HOUSTON-AREA INTENSIVE CARE UNITS ARE AT 97% OF CAPACITY: CITY
  • 1140ET NEW YORK, N.J. AND CONNECTICUT ORDER VISITORS TO QUARANTINE

Cuomo said the quarantine will take effect at midnight and cover states including Alabama, Mississippi, North Carolina, South Carolina, Utah, Texas and others.

Meanwhile, hospitalizations in the state of NY have declined to new lows, while the state reported just 17 new deaths.

Andrew Cuomo

@NYGovCuomo

Today’s update on the numbers:

51,144 tests were performed yesterday. 581 tests came back positive (1.1% of total).

Total hospitalizations fell to 1,071.

Sadly, there were 17 COVID fatalities yesterday.

View image on Twitter
end

This is going to happen to all cities due to the devastation in revenues for cities:  De Blasio is considering laying off tens of thousands of city employees

(zerohedge)

De Blasio Considers Laying Off 22,000 NYC Employees 

American cities face an imminent fiscal reckoning of apocalyptic proportions.

New York City is expected to suffer a sharp decline in tax revenues, resulting in Mayor Bill de Blasio to consider laying off tens of thousands of city employees.

De Blasio is mulling over a new plan that would cut 22,000 city employees to save the city upwards of $1 billion in expenses after virus-related lockdowns led to a decline in revenue, reported Bloomberg.

“De Blasio presented a $95 billion budget in February. That was reduced to about $89 billion in April after the coronavirus outbreak. On Wednesday, he said the budget must be pared down to $87 billion, and the city needed to find about $1 billion more in savings. The city may have to lay off workers, de Blasio said, if the city doesn’t get fiscal aid from Washington or state authority to borrow $7 billion.”  – Bloomberg

Budget shortfalls are forcing New York City and other municipalities across the country to cut jobs and spending, similar to what was done around the 2008 financial crisis when local austerity stymied an economic recovery.

De Blasio has already pledged for the first time to slash the New York Police Department’s funding for the next fiscal year, following weeks of social unrest and mounting demands that he overhaul the department.

“We’re committed to seeing a shift of funding to youth services, to social services, that will happen literally in the course of the next three weeks, but I’m not going to go into detail because it is subject to negotiation and we want to figure out what makes sense,” de Blasio said in early June.

De Blasio, searching for ways to trim down the budget, is likely to target public service jobs. Now it remains to be seen if he’ll cut New York’s bravest, that are police and firefighter jobs…

END
Rupert Murdoch of NewsCorp has played an integral part in spurring the DOJ ‘s probe into Google.  It looks like antitrust charges are forthcoming
(zerohedge)

Rupert Murdoch’s NewsCorp Has Apparently Been Integral In Spurring The DOJ’s Antitrust Probe Into Google

Rupert Murdoch appears to playing a big part in spurring a Justice Department antitrust suit against Google. He has been one of the most outspoken critics of the internet giant, often while defending his own company, NewsCorp.

NewsCorp has petitioned regulators to look into Google, claiming the company is abusing its power in the $330 billion digital ad market. Most recently, Google made headlines for demonetizing us here at Zero Hedge and those at The Federalist for not censoring the comments sections our respective websites.

Murdoch’s efforts appear to be gaining steam, according to Bloomberg. The EU has fined Google for billions and Australia has forced the company to pay for news. In U.S., no material action has taken place – yet.

That appears to be on the cusp of changing, as The Justice Department, led by Attorney General William Barr, is preparing to file an antitrust lawsuit against the company. NewsCorp representatives have met privately with the DOJ about the investigation, sources say.

Last week a trade group headed up by a senior NewsCorp executive published a research paper outlining exactly how Google has taken publishers’ content and driven traffic without compensating them. The paper was subsequently sent to the DOJ.

Yale University economist Fiona Scott Morton, one of the paper’s authors said: “The publishers are trying to monetize their content and they only have one choice in how to do that, which is Google. Publishers also compete against Google’s YouTube to sell ad space. When a company depends on its direct competitor for revenue, that’s a problem.”

William Barr has been working to rope in Google and its rivals since joining the DOJ in 2019. Last year he opened an inquiry into whether or not they were thwarting their competition and helped shape the investigation. Barr himself also met with Murdoch in NYC late last year, according to the New York Times.

“I think a lot of people wonder how such huge behemoths that now exist in Silicon Valley have taken shape under the nose of the antitrust enforcers,” Barr said in 2019.

President Trump has also spoken out, not just about Google, but about other internet giants, referring to them as being controlled by the “radical left”. Murdoch’s NewsCorp features networks like Fox News, who generally provide favorable coverage of the President.

An antitrust suit could throw a wrench in the gears of Google’s digital advertising business.

David Chavern, the president of the News Media Alliance, which represents news organizations, including News Corp, said: “Publishers, particularly quality publishers that invest in content, haven’t believed the digital advertising ecosystem works for them for a long time. The whole system is designed so you can’t follow the money. All we know is we’re not getting enough of it.”

David Pitofsky, News Corp.’s general counsel, said in a House antitrust meeting last year: “Dominant platforms take the overwhelming majority of advertising revenue without making any investment in the production of the news. As a result, one of the pillars of the news industry’s business model, advertising revenue, is crumbling.”

Google, on the other hand, claims that competition in digital advertising is “flourishing.”

On Tuesday evening, we noted that state attorneys generals will meet with DOJ officials later this week to discuss the next steps in the investigation of Google.

And recall, on Wednesday morning, we reported that the DOJ was also in the midst of a “sweeping” antitrust probe of Apple. The DOJ, in partnership with several states attorneys general, are reportedly bringing an anti-trust probe against the consumer tech giant over alleged abuses of its app store – mirroring complaints brought by the European Commission’s anti-trust regulator.

iv) Swamp commentaries)

No wonder he was fired:

(zerohedge)

Fired NY Prosecutor Was Given Biden-Ukraine Allegations In 2018, Didn’t Follow Up

Authored by John Solomon via JustTheNews.com,

Could the impeachment scandal have been prevented if the now-fired U.S. Attorney Geoffrey Berman had followed up on Ukrainian allegations about Joe Biden and his family in 2018?

That’s the tantalizing question raised by emails from fall 2018 between an American lawyer and the chief federal prosecutor in Manhattan that were obtained by Just the News.

The memos show that well before Ukrainian prosecutors reached out to Rudy Giuliani, President Trump’s lawyer, in 2019 to talk about the Bidens and alleged 2016 election interference they first approached Berman’s office in New York in October 2018 via another American lawyer.

The memos show Little Rock, Ark., lawyer Bud Cummins, a former U.S. attorney himself, reached out at least five times in October 2018 to Berman seeking to arrange a meeting with then-Ukrainian Prosecutor General Yuriy Lutsenko.

Lutsenko, who emerged as a key figure in the impeachment scandal, wanted to confidentially share with federal prosecutors in New York evidence he claimed to possess that raised concerns about the Bidens’ behavior as well as alleged wrongdoing in the Paul Manafort corruption case.

“Prosecutor General Yuriy Lutsenko is offering to come to U.S. meet with high-level law enforcement to share the fruits of investigations within Ukraine which have produced evidence of two basic alleged crimes,” Cummins wrote Berman on Oct. 4, 2018, one day after the two had talked on the phone about the allegations.

The allegations included that Joe Biden had “exercised influence to protect Burisma Holdings” after his son Hunter and his son’s business partner Devon Archer had joined the Ukrainian gas company’s board of directors and “substantial sums of money were paid to them,” Cummins wrote.

At the time Hunter Biden and Archer joined Burisma in 2014, the company was under criminal investigation in both England and Ukraine for alleged corruption. The British case was dropped in 2015, and the Ukraine cases were eventually settled in the final days of the Obama administration.

Joe Biden boasted during a 2018 public appearance that he forced the firing on Lutsenko’s predecessor, Viktor Shokin, back in 2016by threatening to withhold $1 billion in U.S. aid to Ukraine. At the time, Shokin was leading the investigation into Burisma. Biden denies the investigation factored into his decision.

Biden’s and Archer’s firm received more than $3 million in payments from Burisma between 2014 and 2016, bank records obtained by the FBI show.

Records recently released by the State Department also show Hunter Biden and Archer had contacts in 2015 and 2016 with senior State officials, including Secretary of State John Kerry and Deputy Secretary of State Tony Blinken.

In addition, Burisma’s U.S. representatives were lobbying the State Department in Washington and the U.S. embassy in Kiev seeking to make the corruption allegations go away, the State memos released under FOIA show.

“The allegation by Prosecutor General Lutsenko et al is that the US ambassador, Marie L. Yovanovitch, Biden and Kerry made conclusions about who were the good guys and the bad guys in local government. They believe Biden and Kerry were influenced by payments to Hunter Biden and Devon Archer to influence certain decisions, particularly those benefitting Burisma,” Cummins wrote, relaying the allegations from the Ukrainian officials.

In addition, Cummins told Berman that Lutsenko had evidence that a ledger found in Ukraine in 2016 alleging to show payments to Manafort from a Russian-backed political party in Ukraine was doctored and the U.S. knew the evidence was corrupted. The emergence of the ledger caused Manafort to resign as Trump’s campaign chairman in August 2016, and eventually led to his conviction on money laundering and tax charges.

“The second allegation above is that the Embassy and FBI willfully pressured Ukrainian officials to falsify evidence to be leaked to the media about Manafort to affect the outcome of the 2016 election,” Cummins wrote Berman.

Cummins said in an interview he had one phone call and four email contacts with Berman in October 2018 about the Ukrainian matter, but the prosecutor’s office never took Lutsenko up on his offer to come to Washington and lay out his evidence.

“I never heard from them again,” Cummins said of Berman’s office. “It was an opportunity for the Justice Department to address these concerns privately, and who knows how history would have turned out had the SDNY simply followed up.”

Berman, instead, would eventually indict two associates of Giuliani on campaign finance and other charges after they tried to help the former New York City mayor and Trump lawyer publicize the Ukraine prosecutors’ concerns. (One of the indicted associates, Lev Parnas, worked as a translator and interview facilitator for this reporter on a handful of Ukraine interviews in 2019, but prosecutors do not allege he did anything wrong in that work.)

James Margolin, a spokesman for the U.S. attorney’s office in New York, declined comment Monday when asked about the Cummins overture in 2018.

Cummins said he was not representing Lutsenko as his client, but rather a Ukrainian-American citizen who was trying to help the prosecutor general get information into U.S. authorities’ hands.

Cummins’ email states that Lutsenko wanted to meet with Berman because the U.S. attorney’s office in New York had successfully prosecuted Archer on unrelated charges earlier in 2018. Archer’s conviction, however, was overturned by a judge, and Berman’s office never retried the case.

Cummins’ efforts to help arrange the meeting were confirmed by one of Lutsenko’s deputies, Konstantin Kulyk, who said last year that Ukrainian authorities repeatedly tried to convey evidence about possible wrongdoing by Americans to the U.S. Justice Department but were thwarted.

Lutsenko said in an interview last year that when Cummins’ efforts failed to get an audience with the Justice Department he reached out to Giuliani, hoping to find a different channel to get information investigated.

It was those contacts that eventually spurred the entire impeachment inquiry, which ended in January in the Senate’s acquittal of Trump.

Democrats have tried to portray Giuliani’s activities as an effort to dig up dirt on Trump’s 2020 rival, and to get Ukrainian officials to launch a probe of Biden.

But Cummins’ emails make clear Ukrainian authorities weren’t interested in investigating the Bidens on Ukrainian law violations. Rather, they wanted to confidentially provide evidence of possible violations of U.S. law so American authorities could investigate. And they had no interest initially in involving the Trump White House. Rather, they simply wanted to share evidence with U.S. authorities at the prosecutor-to-prosecutor level.

“Lutsenko faces political hurdles in getting a visa to come here. It is believed that the embassy in Kiev has blocked his obtaining a visa in the past. He believes it is because the US ambassador knows the nature of his investigation and wants to obstruct him from coming and sharing it,” Cummins wrote Berman on Oct. 4, 2018.

Five days later, Cummins wrote that Lutsenko was prepared to deliver serious evidence, including copies of two ledgers in the Manafort case that Ukrainian prosecutors believed were faked

“Presumably he will be prepared to discuss eyewitness testimony he believes will corroborate both this story and also the separate bribery allegations,” Cummins wrote.

When Berman stopped responding, Cummins offered to have Lutsenko meet with a lower-ranking federal prosecutor simply to transfer the evidence.

“Perhaps you can provide at least one trusted prosecutor and trusted agent to meet with a couple of the actual investigators and just let them take down the information like they would if any citizen walked in the door with some information to share,” Cummins wrote on Oct. 18, 2018.

There was never any further response, Cummins said.

Ukrainian officials have said they did not believe the Bidens broke Ukrainian law but may have engaged in conflicts of interest prohibited by U.S. law. The concerns about the Bidens engaging in conflicts of interest were confirmed by U.S. officials as well.

During impeachment testimony last fall, both Yovanovitch and her top deputy in the Kiev embassy, George Kent, testified that Hunter Biden’s role at Burisma while his father oversaw U.S.-Ukraine policy created the “appearance of a conflict of interest.” Kent said he even tried to raise his concerns with Biden’s VP office but was rebuffed.

All federal officials are required by federal ethics laws to avoid taking actions that create the appearance of a conflict of interest.

END

DOJ Releases “Totally Exculpatory” Strzok Notes To Michael Flynn’s Lawyers

The Department of Justice on Tuesday released handwritten notes from the Michael Flynn case taken by former FBI official Peter Strzok, which the Daily Caller‘s Chuck Ross reports to be “totally exculpatory” for the former national security adviser.

The notes, likely taken between January 3-5 of 2017, were released to Flynn’s lawyers under seal by Michael R. Sherwin – acting US Attorney for the Eastern District of Virginia – and are “very significant,” according to the Caller‘s source. They were discovered by a federal prosecutor appointed to review the Flynn case.

Techno Fog@Techno_Fog

Flynn update – the DOJ has produced more evidence.

A page of notes from Peter Strzok, taken possibly between January 3 and January 5, 2017.

This is when the FBI Washington Field Office wanted to drop the Flynn case.

“Additional documents may be forthcoming”

View image on Twitter

On May 7, the DOJ moved to drop charges against Flynn despite the former Trump adviser pleading guilty to making false statements to the FBI on December 1, 2007 regarding his conversations with the former Russian ambassador during the presidential transition. It has since emerged that Flynn may have done so under duress – with prosecutors threatening an expensive litigation that would involve his son, Michael Flynn Jr.

Flynn retracted his guilty plea in a January 29 statement filed by his new attorney, Sidney Powell, who accused prosecutors of withholding exculpatory information according to the report.

Attorney General William Barr appointed Jeffrey Jensen, the U.S. attorney for the Eastern District of Missouri, to review Flynn’s case after his lawyers accused prosecutors of withholding exculpatory information.

Jensen has since discovered and turned over several documents to Flynn’s lawyers. –Daily Caller

Meanwhile, the FBI tried to close the Flynn investigation on January 4, when agent Peter Strzok insisted it continue. Handwritten notes from an FBI agent tasked with investigating Flynn reveal that they were targeting Flynn in early 2017 with the intent of prosecuting him or getting him fired.

One document is a Jan. 4, 2017, memo from the FBI’s Washington Field Office recommending that the counterintelligence investigation against Flynn be shut down due to a lack of evidence that he was conspiring with Russia.

Strzok intervened to keep the case open, writing to others at the FBI that the “7th floor” — the FBI’s leadership — wanted to continue its investigation of Flynn. –Daily Caller

“What is especially terrifying is that without the integrity of Attorney General Bill Barr and U.S. Attorney Jensen, we still would not have this clear exculpatory information as Mr. Van Grack and the prosecutors have opposed every request we have made,” said Powell.

It appears, based on the notes and emails that the Department of Justice was determined at the time to prosecute Flynnregardless of what they found, Powell said.

end
Appeals court orders Sullivan to dismiss the case:  Flynn is now free
(zerohedge)

Appeals Court Orders Flynn Judge To Dismiss Case

In a major victory for Michael Flynn, the United States Court of Appeals for the District of Columbia Circuit has ordered Judge Emmet Sullivan to grant the Justice Department’s request to dismiss the case against the former Trump National Security Adviser.

“Upon consideration of the emergency petition for a writ of mandamus, the responses thereto, and the reply, the briefs of amici curiae in support of the parties, and the argument by counsel, it is ORDERED that Flynn’s petition for a writ of mandamus be granted in part; the District Court is directed to grant the government’s Rule 48(a) motion to dismiss; nd the District Court’s order appointing an amicus is hereby vacated as moot, in accordance with the opinion of the court filed herein this date,” reads the order.

kadhim (^ー^)ノ

@kadhim

Appeals court orders Flynn judge to grant dismissal of the case

View image on Twitter

In their decision, the appeals court wrote: “Decisions to dismiss pending criminal charges – no less than decisions to initiate charges and to identify which charges to bring – lie squarely within the ken of prosecutorial discretion.

“The Judiciary’s role under Rule 48 is thus confined to “extremely limited circumstances in extraordinary cases.””

Hence, no dice for Judge Sullivan.

Donald J. Trump

@realDonaldTrump

Great! Appeals Court Upholds Justice Departments Request To Drop Criminal Case Against General Michael Flynn!

 

 

Flynn pleaded guilty in December 2017 to lying to the FBI about his conversations with former Russian Ambassador to the US, Sergey Kislyak, during the presidential transition following the 2016 US election. He later withdrew his plea after securing new legal counsel, while evidence emerged which revealed the FBI had laid a ‘perjury trap‘ – despite the fact that the agents who interviewed him in January, 2017 said they thought he was telling the truth. Agents persisted hunting Flynn despite the FBI’s recommendation to close the case.

Once the FBI’s malfeasance was uncovered, the Justice Department moved to dismiss the case after Attorney General William Barr tapped an outside prosecutor to examine the FBI’s conduct. Judge Sullivan rejected the DOJ’s request – instead calling on an outside lawyer to make arguments against the DOJ’s move to drop the case.

In their Wednesday decision, the Appeals court noted that “the government’s motion includes an extensive discussion of newly discovered evidence casting Flynn’s guilt into doubt.”

Specifically, the government points to evidence that the FBI interview at which Flynn allegedly made false statements was “untethered to, and unjustified by, the FBI’s counterintelligence investigation into Mr. Flynn.” -US Court of Appeals

Shortly before the DOJ move to dismiss, former Mueller prosecutor Brandon Van Grack suddenly withdrew from the case (and others). Flynn’s new attorney, Sidney Powell, said that government documents revealed “further evidence of misconduct by Mr. Van Grack specifically.”

Sullivan urged the federal appeals court to also reject Flynn’s bid to bring an end to the case, which has now ruled against the judge.

Meanwhile…

John Cardillo

@johncardillo

Looks like @JoeBiden and @BarackObama were complicit in framing @GenFlynn.

I can’t wait for Flynn to tell all he knows about these traitors. https://twitter.com/Techno_Fog/status/1275803339738021890 

Techno Fog@Techno_Fog

🚨Peter Strzok notes from 1/4/17 released in Flynn case:

Discussion among Obama, Comey, Yates, Biden, and Susan Rice.

Biden: “Logan Act”

Obama: “Have the right people on” Flynn case.

Comey: The Flynn/Kislyak calls “appear legit.”

View image on Twitter
View image on Twitter
end

Seven Big Hints AG Barr Has Dropped About Durham’s Probe Of The Russia Investigators

Authored by John Solomon via JustTheNews.com,

Attorney General William Barr is bringing increasing clarity to the focus of U.S. Attorney John Durham’s criminal investigation into the conduct of the Russia collusion investigators.

In a series of recent interviews, the nation’s chief enforcement officer has dropped some big hints about what is under investigation, who is and isn’t being investigated, and what evidence uncovered by the Durham team is emerging as important.

Barr also has suggested what events in the timeline are emerging as important in the 2016-17 effort to find dirt on President Trump and his campaign and transition team.

Here are the seven most important revelations Barr has made over the last month.

1. Timetable: Durham’s investigation has been slowed by the pandemic. But some action is expected by end of summer, and the probe could stretch beyond Election Day.

Barr told Fox News’ Maria Bartiromo on Sunday that the coronavirus has slowed Durham’s ability to interview witnesses and use a grand jury if needed, though he did not officially confirm there was grand jury activity in the case.

“It is a fact that there have not been grand juries in virtually all districts for a long period of time,” Barr said.

But most importantly, the attorney general laid out a likely timeline for when the first actions might be taken in the case, while stressing the probe could carry beyond the election.

“In terms of the future of Durham’s investigation, he’s pressing ahead as hard as he can, and I expect that we will have some developments, hopefully before the end of the summer,” Barr said. “But as I’ve said, his investigation will continue. It’s not going to stop because of the election. What happens after the election may depend on who wins the election.”

2. Barr believes evidence used by the FBI to justify opening an investigation into the Trump campaign’s ties to Moscow was very thin.

The attorney general has made clear in multiple interviews that Australian diplomat Alexander Downer’s meeting with Trump campaign aide George Papadopoulos at a London bar in May 2016 was a weak justification for opening Crossfire Hurricane.

Downer claimed Papadopoulos made comments about Russians possessing dirt on Hillary Clinton, and the FBI believed that was enough to predicate a counterintelligence investigation.

DOJ Inspector General Michael Horowitz agreed in his report that was enough, but found substantial evidence the FBI cheated afterwards to keep the probe going in the absence of evidence of wrongdoing.

Barr does not seem to accept the opening of the FBI probe was justified.

Papadopoulos’ alleged  “comment in a London wine bar” would be “a very slender reed to get law enforcement and intelligence agencies involved in investigating the campaign of one’s political opponent,” Barr declared Sunday.

Barr isn’t the only high-profile figure to think that. Former FBI Assistant Director for Intelligence Kevin Brock has said the FBI memo opening Crossfire Hurricane did not meet the standards for opening a counter-intelligence investigation.

3. Investigators are focused on what happened before Crossfire Hurricane officially started, including when Christopher Steele first began compiling his dossier.

In multiple interviews, Barr has made clear Durham’s team is examining what actions government officials and private individuals may have taken in the winter and spring of 2016 before the FBI officially opened its probe of the Trump campaign on July 31, 2016.

Perhaps the most tantalizing statement Barr has made on this came Sunday when he suggested it was important that Steele began working on his dossier before July 2016, raising the possibility that some unexplained events earlier that year may have been connected to that early Steele work.

“I understand why it is important to try to determine whether there was any activity before July, before the Papadopoulos wine bar conversation,” Barr explained. “And so people are looking at that. It’s significant also that the dossier was initiated before July.”

4. Barr views the FBI’s continuation of the Russia probe after the Steele dossier “collapsed” as an illegitimate effort to remove the president.

Barr has repeatedly cited the fact that the FBI continued to rely on the Steele dossier after the former MI6 agent’s primary sub-source contradicted information in the dossier in January 2017 and March 2017 — and failed to tell the FISA court about the problems with the repudiated evidence.

“The dossier pretty much collapsed at that point — and yet they continued to use it as a basis for pursuing this counterintelligence investigation,” Barr noted this past weekend.

The attorney general suggested such behavior supports arguments that what was really going on was an attempted coup to remove Trump from office. “It is the closest we have come to an organized effort to push a president out of office,” he said.

5. There are multiple criminal investigations into leaks of classified information.

Barr made clear that Durham and others are examining multiple leaks for possible criminal violations while cautioning proving leak cases can be challenging. One of those is focused on who leaked Michael Flynn’s call with the Russian ambassador.

“Leaking national defense information, unauthorized disclosure of that information is a felony,” Barr said. “We have a lot of leak investigations underway.”

6. Barr is concerned by the outgoing Obama administration’s extensive unmasking of Americans’ conversations … but don’t expect Barack Obama or Joe Biden to get in trouble.

After the recent revelation that more than three dozen Obama administration officials sought to unmask intercepted conversations of incoming Trump National Security Adviser Michael Flynn, Barr declared, “It makes you wonder what they were doing.”

“It’s unusual for an outgoing administration, high-level officials, to be unmasking very much in the days they’re preparing to leave office,” he added.

As a sign of that concern, Barr has named a U.S. attorney from Texas to assist Durham to examine the unmaskings for any illegalities.

But Barr also tamped down any expectation that the former president or vice president will be investigated, stating clearly they are not targets of the probe.

“As to President Obama and Vice President Biden, whatever their level of involvement, based on the information I have today, I don’t expect Mr. Durham’s work will lead to a criminal investigation of either man,” the attorney general said last month. “Our concern over potential criminality is focused on others.”

7. Durham is examining whether political pressures were applied during the intelligence community’s assessment of Russia’s intentions in 2016 election meddling. That could be bad news for former CIA chief John Brennan.

In the Obama administration’s final days, Brennan, outgoing DNI James Clapper and then-FBI Director James Comey release the Intelligence Community Assessment, which declared Russia  meddled in the 2016 election with hacking and Facebook ads and that Moscow’s intention was to help Trump win.

The first conclusion is widely accepted, while the second is more controversial, especially now that evidence has been declassified showing Russia was feeding derogatory disinformation about Trump to Steele. Why, experts wonder, would Russia be doing that if Putin wanted Trump to win?

Barr said Durham is investigating whether any political pressure was brought to bear to come to that second conclusion. Sources have told Just the News there is some evidence that CIA analysts and others had concerns about the strength of the evidence about Russia’s intentions.

end

Biden Invoked 1799 ‘Logan Act’ During Secretive Oval Office Meeting About Flynn Investigation

Joe Biden invoked the 18th century “Logan Act” during a controversial 2017 Oval Office meeting to discuss the Michael Flynn investigation, less than two weeks before President Trump was sworn into office, according to newly released notes taken by former FBI special agent Peter Strzok.

According to Flynn’s legal team, “it appears” that Biden “personally raised the idea” of using the obscure law to prosecute Flynnn over his communications with the former Russian Ambassador to the United States – in which he asked Moscow to “reciprocate moderately” in response to sanctions placed on Russia over election meddling.

John Cardillo

@johncardillo

Looks like @JoeBiden and @BarackObama were complicit in framing @GenFlynn.

I can’t wait for Flynn to tell all he knows about these traitors. https://twitter.com/Techno_Fog/status/1275803339738021890 

Techno Fog@Techno_Fog

🚨Peter Strzok notes from 1/4/17 released in Flynn case:

Discussion among Obama, Comey, Yates, Biden, and Susan Rice.

Biden: “Logan Act”

Obama: “Have the right people on” Flynn case.

Comey: The Flynn/Kislyak calls “appear legit.”

View image on Twitter
View image on Twitter

It’s unclear what Biden specifically said about the Logan Act during the January 5 meeting which included former President Obama, former FBI Director James Comey, national security adviser Susan Rice, and Deputy AG Sally Yates.

The notes were disclosed in a court filing Wednesday to the U.S. District Court for the District of Columbia around the same time a federal appeals court ruled in a 2-1 decision that the judge presiding over the case against Flynn grant the Justice Department’s motion to dismiss the criminal charges against him. U.S. Attorney Jeffrey Jensen of Missouri, who was picked by Attorney General William Barr to review the government’s case against Flynn, “obtained and analyzed” the document. Biden’s comment about the Logan Act are the only words that appear in quotation marks. –Washington Examiner

Elsewhere in the notes, Strzok wrote that Money said the calls between Flynn and Sergey Kislyak “appear legit,” while Obama stressed that “the right people” should investigate Flynn. This is in sharp contrast to an email Susan Rice sent to herself in which she said everything was done “by the book.”

Richard Grenell

@RichardGrenell

This is very troubling. The Susan Rice email to herself clearly didn’t give an accurate portrayal of the meeting.
The “right people” is fundamentally different than “by the book”. https://twitter.com/techno_fog/status/1275803339738021890 

Techno Fog@Techno_Fog

🚨Peter Strzok notes from 1/4/17 released in Flynn case:

Discussion among Obama, Comey, Yates, Biden, and Susan Rice.

Biden: “Logan Act”

Obama: “Have the right people on” Flynn case.

Comey: The Flynn/Kislyak calls “appear legit.”

View image on Twitter
View image on Twitter

Rice and Strzok’s accounts comport with each other over Obama asking if there was anything information he should withhold from the Trump transition team, to which Comey responded (according to Rice) “Potentially,” adding that he doesn’t know if Flynn has passed any classified information to the Russians, but that the “level of communication is unusual.”

According to Strzok’s notes, Obama said “these are unusual times,” with Biden saying “I’ve been on the Intel Committee for ten years and I never…” before the notes trail off.

Flynn pleaded guilty in December 2017 to lying to the FBI about his conversations with former Russian Ambassador to the US, Sergey Kislyak, during the presidential transition following the 2016 US election. He later withdrew his plea after securing new legal counsel, while evidence emerged which revealed the FBI had laid a ‘perjury trap‘ – despite the fact that the agents who interviewed him in January, 2017 said they thought he was telling the truth. Agents persisted with the case despite the FBI’s recommendation to close it.

end

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

 

White House adviser Navarro says China trade deal is ‘over’   20:54 ET

“It’s over,” Navarro told Fox News in an interview when asked about the trade agreement. He said the “turning point” came when the United States learned about the spreading coronavirus only after a Chinese delegation had left Washington following the signing of the Phase 1 deal on Jan. 15…

https://www.reuters.com/article/us-usa-trade-china-navarro-idUSKBN23U02Q

CNBC’s @EamonJavers 22:16 ET on Monday night: Peter Navarro issues new statement tonight after futures fall on his earlier China statement:  “My comments have been taken wildly out of context.  They had nothing at all to do with the Phase I trade deal, which continues in place….”

@realDonaldTrump 22:22 ET on Monday night: The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!

After Navarro’s retreat and Trump’s assertion that “the China Trade Deal is fully intact”, ESUs rallied sharply, rescinding the entire decline.

After trading sideways for almost five hours, ESUs exploded higher after Europe opened.  The rally peaked at 8:10 ET.  ESUs had rallied 85.75 from the Navarro panic low.  After ESUs retrenched 24.75, the obligatory rally (after an early US decline) into the European close appeared.  After the European close, ESUs and stocks retreated modestly and settled into a tight trading range.

A few minutes before the final hour of trading, ESUs and stocks rolled over.  The decline lasted into the close.  Stocks closed at the lows for the session.  We warned in our previous missives that institutional equity selling is expected in coming days.  The huge equity rally of the past two months forces institutions to rebalance their portfolios by buying bonds and selling stocks before the end of Q2 next week.

King Report for Tuesday: Our best guess for today is a choppy session with the legions of nouveau small traders playing for a rally and wise guys looking to unload and possibly get short – especially in the latter stages of the session.

Once again, the trading sardines led the equity market rally.  Nasdaq hit another all-time high.  Industrial commodities and precious metals rallied sharply on Tuesday while the dollar and bonds declined.  Gasoline rallied over 2%.

Daily COVID-19 Deaths in the U.S. Have Fallen Dramatically Since April – The seven-day rolling average of daily deaths, which peaked at 2,210 on April 18, had fallen to 605 as of yesterday—a 73 percent drop…https://reason.com/2020/06/22/daily-covid-19-deaths-have-fallen-dramatically-since-april/

China conducting covert biological weapons research, State Department says

The unclassified report provides new details regarding U.S. concerns “for many years” related to Beijing’s biological weapons research that is not permitted under the 1972 Biological Weapons Convention signed by 183 nations, including China and the United States…

https://www.washingtontimes.com/news/2020/jun/23/china-conducting-covert-biological-weapons-researc/

Well that is all for today

North Korea threatens ‘new round of the Korean War’ to end US – North Korea’s embassy in Moscow has threatened to use its nation’s nuclear weapons against the United States…

https://nypost.com/2020/06/23/north-korea-threatens-new-round-of-the-korean-war-to-end-us-report/

Jill Biden’s virtual campaign event will be on Thursday, not Friday as we erroneously reported.

@CurtisHouck: BREAKING: DOJ and FBI announce that there was NOT a noose planted Sunday in Bubba Wallace’s garage space at Talladega. Rather, it was a rope that had been there perhaps going back to the fall and not an act of racism against him in reaction to BLM or the Confederate flag

@MarkDice: It was NOT a noose; it was a basic loop knot on the rope pull to open the garage door

[Reportedly, the garage-pull loop has been there since October 2019.]

@AnnCoulter: FIFTEEN FBI agents were wasted on this so NASCAR could be woke. 

NASCAR couldn’t wait a day or two to find the truth. They are getting hammered on social media now.  The MSM, after hyping the ‘noose’, will ignore the truth.

@DamonSalvadore1: All NASCAR facilities are closed to the public. It’s impossible for a fan to somehow get to the arena, get inside, get access to a multimillion garage, get past security, avoid cameras, and place something in the garage.

Breaking: DOJ reveals discovery of new Strzok notes in Flynn case – Prosecutors reveal they recently found new notes from the lead investigator in the Russia case that are exculpatory to Flynn.

    The page of notes were not made public with the filing because they are currently subject to a protective order… https://justthenews.com/accountability/russia-and-ukraine-scandals/breaking-doj-reveals-discovery-new-strzok-notes-flynn

Fired NY prosecutor got Biden-Ukraine allegations in 2018 but didn’t follow up

Ukraine prosecutors didn’t want the political spectacle that became impeachment and simply sought to turn over evidence about Joe Biden and election interference to U.S. prosecutors, memos show…

    The memos show Little Rock, Ark., lawyer Bud Cummins, a former U.S. attorney himself, reached out at least five times in October 2018 to Berman seeking to arrange a meeting with then-Ukrainian Prosecutor General Yuriy Lutsenko.  Lutsenko, who emerged as a key figure in the impeachment scandal, wanted to confidentially share with federal prosecutors in New York evidence he claimed to possess that raised concerns about the Bidens’ behavior as well as alleged wrongdoing in the Paul Manafort corruption case…  https://justthenews.com/accountability/russia-and-ukraine-scandals/fired-prosecutor-was-given-biden-ukraine-allegations

@SteveDeaceShow: The GOP hates its base. It would rather lose to Democrats than lose control to its base. So either the base needs to topple the leadership, or there must be a new party. There’s no other path to mainstream political change.

Conservative frustration: In ‘cultural civil war,’ Trump and GOP on the sidelines

“Black Lives Matter has declared this cultural civil war. Democrats have declared a political war. And Republicans are still sitting there like deer-in-the-headlights wondering what’s happening,” John Cardillo, a television host and former officer in the New York Police Department who supports Trump, told the Washington Examiner. “Unless they adopt a wartime mentality, political wartime mentality, cultural wartime mentality, I think they’re in a lot of trouble.”…

https://www.washingtonexaminer.com/news/conservative-frustration-in-cultural-civil-war-trump-and-gop-on-the-sidelines

@johncardillo: GOP Senators are caving just as we expected them to do. Instead of legislation to restore law and order, they’re going after cops. Don’t these people understand that they’re empowering the terrorists? @senatemajldr, enough is enough.

@EmeraldRobinson: How many GOP leaders have denounced the arson of St. John’s Church?

How many GOP leaders have denounced the mass destruction of public monuments in America?

How many GOP leaders have gone silent in the face of violent communist mobs?

The Con of the Surrender Cons – If legacy conservatism had its own statue, it would be one big slippery slope curving left and capped with a white flag.

    These Surrender Cons will do what they always do: Pretend a debate about Confederate statues is actually about Confederate statues and not about the inexorable destruction of our country’s history that eventually leads straight to the Founders and the Constitution. Placate the Left with meaningless canards about race and social justice that feed the flames of racial division the Left has been seeking to stoke in order to burn down the country. Bend the rhetorical knee before Black Lives Matter for fear of being called a racist while hanging your own supporters out to dry. Assign weakness to Donald Trump rather than own up to their own failures…

https://amgreatness.com/2020/06/22/the-con-of-the-surrender-cons/

Rep. Chip Roy: It’s Time for Republicans to Stand Up for America Already

They have been failing to go on offense to make clear the systemic racism that is ripping apart black families and the fabric of our nation comes from the Democrat Party and its adherence to failed big government programs over the promise of individuals, families, and communities prospering…

https://thefederalist.com/2020/06/23/its-time-for-republicans-to-stand-up-for-america-already/#.XvJGap6dQzQ.twitter

@realDonaldTrump: I have authorized the Federal Government to arrest anyone who vandalizes or destroys any monument, statue or other such Federal property in the U.S. with up to 10 years in prison, per the Veteran’s Memorial Preservation Act, or such other laws that may be pertinent…

Gov. Cuomo: Toppling Historical Statues ‘A Healthy Expression’ of Rage

https://dailycaller.com/2020/06/23/gov-andrew-cuomo-toppling-historical-statues-healthy-expression-rage/

Civil rights attorney @TheLeoTerrell: Attention Black Lives Matter. During Father Day weekend in Chicago, 103 people were shot, 14 killed, including a three year old Black girl. Do you care about black on black crime, including murder? I don’t think so!  Corporations stop giving millions of dollars to #BlackLivesMattters . It is a shakedown organization with no interest in improving the lives of Black Americans…

     Education is the new/correct #civilrights fight. A good education and family unit will ALWAYS help poor and minority neighborhoods. Always.

Trump called John Bolton a “creepster.”  Ex-NSC Dir. @RichHiggins_DC responding to a Bolton tweet: Going to discuss wife swapping, cuck stuff that your 1st wife alleges?  Perhaps the pay to play scheme you ran from the West Wing?  How you sabotaged Trump’s foreign policy? How you leaked top secret information on behalf of your paymaster in Qatar?  Or just mustache wax?

Babylon Bee: Congress Members to Wear Barcodes So Lobbyists Can Scan Prices, Self-Checkout

@ThomasSowell: One of the bittersweet things about growing old is realizing how mistaken you were when you were young. As a young political leftist, I saw the left as the voice of the common man. Nothing could be further from the truth

I will see you THURSDAY night.

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