JUNE 26//GOLD UP $5.30 TO $1767.00 AND SILVER UP 6 CENTS TO $17.82 AND BOTH METALS HAD AN UPSIDE DAY REVERSAL AT THE COMEX//GOLD STANDING AT THE COMEX: 170.6 TONNES//COMEX//CORONAVIRUS NUMBERS INCREASING IN THE USA AND BRAZIL//CORONAVIRUS UPDATES THROUGHOUT THE GLOBE//SWAMP STORIES FOR YOU TONIGHT//USA VS CHINA: USA INITIATES SANCTIONS ON CHINESE INDIVIDUALS AND BANKS RE HONG KONG AFFAIR//CHINA VISIBLY UPSET//THE GERMAN WIRECARD FRAUD SNARES ERNST AND YOUNG AND THE REGULATOR BAFIN //

GOLD:$1767.00  UP $5.30   The quote is London spot price

 

 

 

 

 

Silver:$17.82//UP 6 CENTS  London spot price

 

TODAY WE HAD A VERY RARE UPSIDE DAY REVERSAL AT THE COMEX. THE BANKERS KNOCKED GOLD AND SILVER DOWN AND THEN SUDDENLY IT REVERSED…. THE CROOKS MUST BE FRIGHTENED ABOUT SOMETHING. THE REVERSAL WAS DONE ON NO NEWS.

 

LBMA/OTC OPTIONS EXPIRE JUNE 30//

 

 

 

Closing access prices:  London spot

i)Gold : $1770.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.81//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

AUG GOLD:  $1780.70  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE JUNE: $13.70

 

CLOSING SILVER FUTURE MONTH

 

SILVER JULY COMEX CLOSE;   $18.05…1:30 PM.//SPREAD SPOT/FUTURE JULY//  :  23 CENTS  PER OZ

 

 

the gold market continues to be broken as future prices are much higher than spot prices.  The comex is desperate to fix things but they have no available gold.

If one is to buy gold and or gold coins, the price is around $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: 399/1417

issued 1124

EXCHANGE: COMEX
CONTRACT: JUNE 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,762.100000000 USD
INTENT DATE: 06/25/2020 DELIVERY DATE: 06/29/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 148
104 C MIZUHO 1
135 H RAND 2
152 C DORMAN TRADING 57
190 H BMO CAPITAL 7
657 C MORGAN STANLEY 24
657 H MORGAN STANLEY 559
661 C JP MORGAN 1124 166
661 H JP MORGAN 233
686 C INTL FCSTONE 85 95
690 C ABN AMRO 5 59
737 C ADVANTAGE 21 73
800 C MAREX SPEC 33 50
905 C ADM 7
991 H CME 85
____________________________________________________________________________________________

TOTAL: 1,417 1,417
MONTH TO DATE: 54,893

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 1417 NOTICE(S) FOR 141,700 OZ (4.407 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  54893 NOTICES FOR 5,489,300 OZ  (170.74 TONNES)

 

 

SILVER

 

FOR JUNE

 

 

8 NOTICE(S) FILED TODAY FOR 40,000  OZ/

total number of notices filed so far this month: 441 for 2,205,000 oz

 

BITCOIN MORNING QUOTE  $9190  DOWN 58  

 

BITCOIN AFTERNOON QUOTE.: $9167 DOWN $85

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $5.30 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 WITHDRAWAL OF  1.46 TONNES OF GOLD

 

GLD: 1,175.39 TONNES OF GOLD//

 

WITH SILVER UP A STRONG 6 CENTS TODAY: AND WITH NO SILVER AROUND

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV.

A STRONG PAPER DEPOSIT OF 0.931 MILLION OZ INTO THE SLV///

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 491.858  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A STRONG SIZED 2308 CONTRACTS FROM 180,256 DOWN  TO 177,948, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED LOSS IN  OI OCCURRED WITH OUR GOOD 12 CENT GAIN  IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS PRIMARILY DUE TO SPREADER LIQUIDATION ALONG WITH  HUGE  BANKER SHORT COVERING PLUS A GOOD EXCHANGE FOR PHYSICAL ISSUANCE, MINIMAL LONG LIQUIDATION, ACCOMPANYING  A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE.  WE HAD A NET LOSS IN OUR TWO EXCHANGES OF 1257 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: 1051  AND SEP 0 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1000 CONTRACTS. WITH THE TRANSFER OF 1051 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 1051 EFP CONTRACTS TRANSLATES INTO 5.255,000 MILLION OZ  ACCOMPANYING:

1.THE 12 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF INITIALLY STANDING FOR JUNE

 

THURSDAY, 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 12 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE NO DOUBT  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS FROM THEIR POSITIONS. THE STRONG LOSS AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG SPREADER LIQUIDATION, ii) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN SILVER OZ STANDING,  HUGE BANKER SHORT COVERING  AND 4) MINIMAL LONG LIQUIDATION AS  WE DID HAVE A STRONG NET LOSS OF 1257 CONTRACTS OR 6.285 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:

12,793 CONTRACTS (FOR 21 TRADING DAY(S) TOTAL 12,793 CONTRACTS) OR 63.97 MILLION OZ: (AVERAGE PER DAY: 606 CONTRACTS OR 3.198 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY: 63.97 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 9.10% 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:          1,130.03 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                   63.97 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 DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2005, DESPITE OUR 12 CENT GAIN IN SILVER PRICING AT THE COMEX ///THURSDAYTHE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 1051 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE LOST A VERY STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  1057 CONTRACTS (DESPITE OUR 12 CENT GAIN IN PRICE)//WITH THE DOMINANT FACTOR OF OI LOSS BEING SPREADER LIQUIDATION

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1051 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED DECREASE OF 2308 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 12 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.76 // THURSDAY’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. 0.8890 BILLION OZ TO BE EXACT or 127% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JUNE  DELIVERY MONTH/ THEY FILED AT THE COMEX: 8 NOTICE(S) FOR 40,000 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: 2.205 MILLION OZ//
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A SMALL SIZED 2027 CONTRACTS TO 539,287 AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL SIZED GAIN OF COMEX OI OCCURRED DESPITE OUR  LOSS IN PRICE  OF $3.30 /// COMEX GOLD TRADING// THURSDAY// WE  HAD STRONG BANKER SHORT COVERING, ANOTHER STRONG 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 LOSS IN PRICE OF $3.30 .

 

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

 

WE GAINED A GOOD SIZED 4459 CONTRACTS  (12.75 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2071 CONTRACTS:

CONTRACT  JUNE 85.; AUG 1986 AND DEC: 0  ALL OTHER MONTHS ZERO//TOTAL: 2071.  The NEW COMEX OI for the gold complex rests at 539,287. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 4098 CONTRACTS: 2027 CONTRACTS INCREASED AT THE COMEX AND 2071 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 4098 CONTRACTS OR 12.75 TONNES. THURSDAY, WE HAD A LOSS OF $3.30 IN GOLD TRADING…...

AND WITH THAT LOSS IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 12.57 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT FELL $3.30).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  (2071) ACCOMPANYING THE SMALL SIZED GAIN IN COMEX OI  (2027 OI): TOTAL GAIN IN THE TWO EXCHANGES:  4459 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)A STRONG INCREASE IN GOLD  OUNCES STANDING AT THE GOLD COMEX FOR THE FRONT JUNE MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI GAIN.. AND  …ALL OF THIS WAS COUPLED WITH OUR  LOSS IN GOLD PRICE TRADING//THURSDAY//$3.30.

 

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 : 57,670 CONTRACTS OR 5,767,000 oz OR 179.37 TONNES (21 TRADING DAY(S) AND THUS AVERAGING: 2746 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 21 TRADING DAY(S) IN  TONNES: 179.37 TONNES

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

THUS EFP TRANSFERS REPRESENTS 179.37/3550 x 100% TONNES =5.05% 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   2993.50  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:                     179.37 TONNES

 

 

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

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

 

1.Today, we had the open interest at the comex, in SILVER, FELL BY A STRONG SIZED 2308 CONTRACTS FROM 180,256 DOWN TO 177,948 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

THE STRONG LOSS IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1) STRONG SPREADER LIQUIDATION AND AS WELL WE HAD 2) BANKER SHORT COVERING , 3) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 4) A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE AND  5) MINIMAL LONG LIQUIDATION 

 

EFP ISSUANCE 1051 CONTRACTS

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

JULY: 1051 CONTRACTS   AND SEPT: 0 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1051 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS  OF 2308  CONTRACTS TO THE 1051 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG LOSS OF 1257 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 6.285 MILLION  OZ OCCURRED WITH THE 12 CENT GAIN IN PRICE///

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 12 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// THURSDAY. WE ALSO HAD A STRONG SIZED 1051 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)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 8.93 POINTS OR 0.30%  //Hang Sang CLOSED DOWN 231.59 POINTS OR 0.93%   /The Nikkei closed UP 252.29 POINTS OR 1.13%//Australia’s all ordinaires CLOSED UP 1.41%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0784 /Oil UP TO 38.88 dollars per barrel for WTI and 41.31 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0784 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0861 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A SMALL 2027 CONTRACTS TO 539,287 MOVING CLOSER TO  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS SMALL  COMEX ADVANCE OCCURRED DESPITE OUR LOSS OF $1.50 IN GOLD PRICING /THURSDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (2071 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 FAIR GAIN ON OUR TWO EXCHANGES OF 4459 CONTRACTS DESPITE GOLD’S SMALL LOSS IN PRICE.

 

 

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

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 2071 EFP CONTRACTS WERE ISSUED:  85 FOR JUNE  1986 FOR AUG AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2071 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:  4098 TOTAL CONTRACTS IN THAT 2071 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 2027 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A SMALL  AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR SMALL COMEX OI LOSS,  A HUGE INCREASE GOLD TONNAGE STANDING FOR THE JUNE DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION……AND DESPITE ALL OF THE ABOVE WE HAD A LOSS IN COMEX PRICE OF 1.50 DOLLARS..

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $3.30).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A GOOD 12.75 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 4098 CONTRACTS OR 409,800 OZ OR 12.75 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:  539,287 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 53.93 MILLION OZ/32,150 OZ PER TONNE =  1677 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1677/2200 OR 76.24% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 195,776 contracts//poor//most traders have moved to London

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  165,324 contracts//  volume poor //most of our traders have left for London

 

 

JUNE 26 /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 NIL oz

 

 

 

Deposits to the Customer Inventory, in oz  

137,486.710

OZ

HSBC

LOOMIS

SCOTIA

INCL..

1400 KILOBARS

HSBC

AND 2500 KILOBARS

LOOMIS

 

 

 

TOTAL: 3900

KILOBARS

No of oz served (contracts) today
1417 notice(s)
 141,700 OZ
(4.407 TONNES)
No of oz to be served (notices)
5 contracts
(500 oz)
0.0155 TONNES
Total monthly oz gold served (contracts) so far this month
54893 notices
54899300 OZ
170,74 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 0 deposit into the dealer

 

total deposit: nil oz

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 3 deposits into the customer account

i) Into HSBC:  45,011.400 oz (1400 kilobars)

ii) Into Loomis:  72,337.500 oz (2250 kilobars)

iii) Into Scotia: 20,137.810 oz

total deposit:  137,486.710 oz

 

we had 2 gold withdrawals from the customer account:

 

 

ii) Out of  Brinks:  1060.983 oz

ii) Out of Manfra: 192.906 oz

 

 

 

 

total gold withdrawals;  1253.889 oz

We had 2  kilobar transactions  +

 

ADJUSTMENTS: 0 //    

 

 

 

The front month of JUNE registered a total of 1422 oi contracts FOR a LOSS of 394 contracts.  We had 518 notices filed on THURSDAY so we GAINED A STRONG 124 contracts or an additional  12,400 oz of gold (0.3856 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 LOSS of 5 contracts DOWN to 4378 contracts. Thus we are going to have another humdinger of a delivery month for the non active month of July of around 4400 contracts or 440,000 or  (13.7 tonnes)

Next comes August another strong delivery month and here the OI ROSE by A STRONG 541  contracts UP to 376,338 contracts.

 

We had 1417 notices filed today for 141700 oz

 

FOR THE JUNE 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 1124 notices were issued from their client or customer account. The total of all issuance by all participants equates to 1417 contract(s) of which 233 notices were stopped (received) by j.P. Morgan dealer and 166 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 148 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 (54,893) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE (1422 CONTRACTS ) minus the number of notices served upon today (1417 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 (54893)x 100 oz + (1422 OI) for the front month minus the number of notices served upon today (1417) x 100 oz which equals 5,489,800 oz standing OR 170.76 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  124 contracts or AN ADDITIONAL 12400 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 365.34 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 170.76 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  12,741,875.281 oz or 396.32 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: 11,745,684  (365.34 tonnes)
true registered gold  (total registered – pledged tonnes  11,745,684.0 (365.34 tonnes)
total eligible gold:  18,904,191.227 oz (587.99 tonnes)

total registered, pledged  and eligible (customer) gold;   31,714,120.323 oz 986.44 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  860.1 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 26/2020

And now for the wild silver comex results

we had the open interest at the comex, in SILVER, FELL BY A STRONG SIZED 2308 CONTRACTS FROM 180,256 DOWN TO 177,948 AND FURTHER FROM 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 LOSS IN OI SILVER COMEX WAS DUE TO;   1) HUGE BANKER SHORT COVERING , 2) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A SMALL INCREASE IN SILVER OZ STANDING AT THE COMEX FOR JUNE ,  4) MINIMAL LONG LIQUIDATION 5) STRONG SPREADER LIQUIDATION 

 

EFP ISSUANCE 1051 CONTRACTS

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

JULY: 1051 CONTRACTS   AND SEPT: 0 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1051 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS  OF 2,005  CONTRACTS TO THE 1051 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A VERY STRONG LOSS OF 1257 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 6.285 MILLION  OZ!!! OCCURRED WITH THE 12 CENT GAIN IN PRICE///HOWEVER THE DOMINANT LOSS IN OI WAS DUE TO SPREADER LIQUIDATION.

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 12 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// THURSDAY. WE ALSO HAD A GOOD SIZED 1051 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 26/2020

JUNE SILVER COMEX CONTRACT MONTH

 

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 601,002.200 oz
CNT

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
606,553.110 oz
Delaware
Scotia
No of oz served today (contracts)
8
CONTRACT(S)
(40,000 OZ)
No of oz to be served (notices)
0 contracts
 NIL oz)
Total monthly oz silver served (contracts)  441 contracts

2,205,000 oz)

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

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 2 deposits into the customer account

into JPMorgan:   0

ii) Into Delaware:  15,412.210 oz

 

iv) Into Scotia:  591,140.900  oz

 

 

 

 

 

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

JPMorgan now has 160.819 million oz of  total silver inventory or 50.29% of all official comex silver. (160.819 million/319.958 million

 

total customer deposits today: 606,553.110    oz

we had 1 withdrawals:

i) Out of CNT: 601,002.200  oz

 

 

 

 

 

total withdrawals; 601,002.200   oz

We had 0 adjustments

 

 

total dealer silver: 88.859 million

total dealer + customer silver:  319.958 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of June has an open interest of 8 for a loss  of 0 contracts.  We had  3 contracts served upon on THURSDAY so we gained 15,000 oz of silver standing.

The next month of July sees its open interest fall by 8318 down to 30,906. August sees its open interest FALL by 4 contracts DOWN to 571

The big September contract month sees a gain of 5515 contracts up to 117,095.

Most of the loss in the front month of July was due to spreader liquidation.

 

The total number of notices filed today for the JUNE 2020. contract month is represented by 8 contract(s) FOR 40,000, 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 441 x 5,000 oz = 2,205,000 oz to which we add the difference between the open interest for the front month of JUNE.(8) and the number of notices served upon today 8 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 441 (notices served so far) x 5000 oz + OI for front month of JUNE (8)- number of notices served upon today (8) x 5000 oz of silver standing for the JUNE contract month.equals 2,205,000 oz.

We GAINED 3 contracts or an additional 15,000 oz will stand for delivery as they refused to morphed into London based forwards as well as negating a fiat bonus

 

TODAY’S ESTIMATED SILVER VOLUME: 76,021 CONTRACTS // volume very good/

 

 

FOR YESTERDAY: 74,903..,CONFIRMED VOLUME//volume good/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 74,903 CONTRACTS EQUATES to 374 million  OZ  53,5% 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- 0.63% ((JUNE 26/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.24% to NAV:   (JUNE 26/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.63%

(courtesy Sprott/GATA

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

NAV 16.77 TRADING 16.75///NEGATIVE 0.14

END

 

 

And now the Gold inventory at the GLD/

JUNE 26/WITH GOLD UP $5.03 TODAY: VERY STRANGE: A PAPER WITHDRAWAL  OF 1.46 TONNES//INVENTORY RESTS AT 1175.39 TONNES

JUNE 25//WITH GOLD DOWN $3.30 TODAY//ANOTHER STRONG PAPER DEPOSIT OF 7.6 TONNES///INVENTORY RESTS AT 1176.85 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Inventory rests tonight at

JUNE 26/ GLD INVENTORY 1175.39 tonnes*

LAST;  848 TRADING DAYS:   +231.39 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 748 TRADING DAYS://+409.57  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JUNE 26/WITH SILVER UP 6 CENTS TODAY: ANOTHER HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF XX MILLION OZ//INVENTORY RESTS AT XX MILLION OZ//

JUNE 25/WITH SILVER UP 12 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 931,000 OZ INTO THE SLV////INVENTORY RESTS AT 491.858 MILLION OZ//

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//

 

JUNE 26.2020:

SLV INVENTORY RESTS TONIGHT AT

491.858 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 2.97/ and libor 6 month duration 0.36

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

GOLD LENDING RATE: -2.61%

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
+ 220%

LIBOR FOR 12 MONTH DURATION: 0.57

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -1.63%

 

end

 

 

 

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

Gold Breaks Out in Dollars to Highest Level Since October 2012, Should See Buyers Come in

◆ Gold rose to a high of €1,779.10 during trading yesterday, the highest levels seen since October 2012.

As we move towards the end of June gold prices have continued to rise to levels not seen since 2012.

The yellow metal continues to flirt with $1,800 and while that level is primarily a psychologically nice round number, a monthly close above $1,775 would be very bullish for gold and could trigger some fresh new buying that will send it higher to test the $1,800 level.

However, strong selling pressure may emerge as the month end draws near.

Access Latest Goldnomics Podcast (Part II) Here

NEWS and COMMENTARY

Gold prices slip again as U.S. dollar firms, despite rise COVID-19 cases

Gold firm as mounting virus cases drive safe haven demand

IMF warns disconnect in financial markets risks a correction in asset prices

Total of those receiving unemployment benefits falls below 20 million

The Second Great Depression

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

24-Jun-20  1775.70 1766.05, 1420.74 1416.90 & 1573.63 1567.55
23-Jun-20  1755.60 1768.90, 1409.85 1416.36 & 1556.17 1560.70
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

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

Isabel Strauss Kahn appointed to the board of the LBMA replacing Simon Potter

(Ronan Manly/Bullionstar)

Ronan Manly: Musical chairs for central bankers on LBMA board

 Section: 

12:37p ET Thursday, June 25, 2020

Dear Friend of GATA and Gold:

Noting the appointment of another former central banker, Isabelle Strauss-Kahn of the Banque de France, to the board of the London Bullion Market Association, Bullion Star researcher Ronan Manly reminds us today that there is little difference between the association and central banking, which long has aimed to control and suppress the gold price.

… 

Manly writes: “In a classic case of musical chairs, Strauss-Kahn’s appointment comes from a vacancy that has arisen due to the departure from another ‘independent’ LBMA non-executive director, former Federal Reserve Bank of New York official Simon Potter.” …

Of Strauss-Kahn’s appointment, Manly continues: “Ruth Crowell, LBMA chief executive said: ‘We look forward to working with Isabelle, whose extensive experience in the financial services industry — specifically with central banks — will strengthen the LBMA’s global reach and independence of the board.’

Manly adds: “With central banks being some of the main players in the gold market through their secretive gold leading, swaps, and leases, not to mention their behind-the-scenes accumulation, distribution, and repatriation of the yellow metal, the degree of ‘independence’ that influential former central bankers can have when on the board of the LBMA is debatable, to put it mildly. ‘Independent of what?’ may be the best question, and why the secrecy?”

Manly’s report is headlined “Central Banker Musical Chairs at the LBMA — Fed Exits, Banque de France Joins” and it’s posted at Bullion Star here:

https://www.bullionstar.com/blogs/ronan-manly/central-banker-musical-cha…

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

end

Why you must own gold

(Jan Nieuwenhuijs)

Jan Nieuwenhuijs: Why gold, and why now

 Section: 

1p ET Thursday, June 25, 2020

Dear Friend of GATA and Gold:

Voima Gold researcher Jan Nieuwenhuijs today provides an outstanding summary of gold’s monetary virtues. One of his details is especially powerful: “Since the euro was created in 1999, the gold price in euros has gone up by 550 percent. When corrected for consumer price inflation, gold in the eurozone has increased in purchasing power by 350 percent in 20 years.”

Nieuwenhuijs’ commentary is headlined “Why Gold, and Why Now” and it’s posted at Voima Gold here:

https://www.voimagold.com/insight/why-gold-and-why-now

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

end

Ted Butler review the long history of silver manipulation with Jim Sinclair and Bill Holter

(jsmineset/GATA)

Jim Sinclair and Bill Holter interview Ted Butler

 Section: 

1:10p ET Thursday, June 25, 2020

Dear Friend of GATA and Gold:

In an interview with Jim Sinclair and Bill Holter, silver market analyst and whistleblower Ted Butler reviews the long history of manipulation and intrigue in the silver market. The interview is 52 minutes long and can be heard at JSMineset.com here:

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

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

end

Your weekend reading:

Alasdair Macleod on the collapsing dollar and China’s new monetary strategy

(Alasdair Macleod/GATA)

Alasdair Macleod: A collapsing dollar and China’s monetary strategy

 Section: 

By Alasdair Macleod
GoldMoney, St. Helier, Jersey, Channel Islands
Thursday, June 26, 2020

This article describes how China can escape the fate of a dollar collapse by tying the yuan to gold. There is little doubt she has access to sufficient gold. Currently, her interest is to preserve the dollar, not destroy it, because it is the principal means of Chinese foreign interests being secured .

Furthermore, a return to sound money requires China to reverse its interventionism under Xi, returning to Deng Xiaoping’s original vision. Sound money can only last if the relationship between the state and the wider economy is properly addressed.

Of all the major economies, China’s is best placed to implement a sound money solution. At the moment it seems unlikely the necessary reforms will be forthcoming; but a general collapse of the global fiat currency regime presents the opportunity for reassessment and change. …

… For the remainder of the analysis:

https://www.goldmoney.com/research/goldmoney-insights/a-collapsing-dolla…

end

More on our JPMorgan double cross especially on Scotia

(Ted Butler)

Ted Butler: The final chapter of silver market rigging

 Section: 

11:42p ET Wednesday, June 24, 2020

Dear Friend of GATA and Gold:

In his new essay at GoldSeek’s companion site, SilverSeek, silver market analyst and market-rigging foe Ted Butler argues that JPMorganChase has cornered the silver market, leaving other investment banks holding huge short positions that can’t be covered. Butler expects JPMorganChase to squeeze and double-cross the shorts, the bank’s former associates in price suppression.

Butler’s essay is headlined “The Final Chapter” and is posted at SilverSeek here:

https://silverseek.com/article/final-chapter

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

The Final Chapter

All things, both good and evil, come to an end. So it will be with the great silver price manipulation, which I date as having existed, in its COMEX-orchestrated version from 1983. Before that, of course, silver prices were never truly free, mostly as a result of some type of government interference. The US Government both supported and then depressed the price of silver for a hundred years prior to 1983, first by amassing more than 5 billion ounces and then by disposing of same.

As the US Government ran out of silver at the turn of the century, the COMEX-induced price manipulation took over by means of concentrated short selling by a small number of revolving banks and financial firms. The vital role of lead short seller varied among a number of firms  that saw the baton passed from Drexel Burnham Trading, to AIG Trading and to Bear Stearns (all of which failed financially), until finally it was passed to JPMorgan in 2008.

JPMorgan proved to be the most successful COMEX silver (and gold) lead short manipulator over the past 37 years, not only in terms of how much it made in COMEX trading for the past 12 years ($billions), but in that it finally solved the previously impossible problem of exiting its dominant short position profitably. Had Bear Stearns solved this problem, it would still be around today. JPMorgan’s brilliant (but criminal) solution was to use its dominance and ability to suppress silver and gold prices through aggressive short selling on the COMEX, to amass legendary quantities of physical gold and silver at depressed prices. It doesn’t matter how large a paper derivatives short position may be, if you own physical quantities in excess of your short position, you are net long.

It took JPMorgan 9 years (since 2011) to accumulate its massive physical metals stash, which I estimate at 25 million gold ounces and one billion silver ounces at prices averaging $1200 and $18 respectively.  At current prices, JPMorgan is already ahead close to $15 billion on its gold stash and close to even on silver, while the other big COMEX shorts which it double crossed are holding more than $8 billion in realized and unrealized losses. Even if the game ended here, it would rank as one of the greatest double crosses of all-time. But it’s much closer to the truth to say the game is just getting underway. The last chapter of the great silver (and gold) manipulation is about to unfold.

Up front, there’s no way of knowing if the last chapter is going to drag out or conclude quickly, but that’s just the nature of the beast – like things moving gradually and then suddenly. All the signs point to a fitting conclusion, no matter how it plays out precisely. After decades of nothing but profits or, at worst, break evens after amassing large concentrated short positions in COMEX gold and silver futures, the big shorts (ex-JPM) have been trapped for the past year in short positions that have gone against them in gold in dollar amounts much greater than all the cumulative profits they achieved over more than 35 years. The losses haven’t amounted to much in silver to this point, but the short position still exists with no apparent means for an easy exit.

JPMorgan is in such a superior position that it, alone, will decide how this last chapter gets written. It has been said that he who holds the gold makes the rules, but as it turns out, that’s even more applicable to silver. Simply put, JPM’s billion ounce physical silver stash makes it the sole decider of price. Certainly, there can’t be any question that the tremendous flow of physical silver into SLV and other silver ETFs over the past three months, coupled with the fact that prices have barely budged should prove conclusively that the metal has come from JPMorgan.  The only question is the method and motivation behind JPMorgan’s supplying of the physical silver to the ETFs.

Some have raised the possibility that the US Justice Department, in the course of its ongoing criminal investigation into precious metals manipulation and JPMorgan, may have ordered the bank to dispose of its vast physical silver holdings. I suppose this is possible (and would certainly confirm my allegations about how crooked an operator is JPMorgan), but raises many questions not easily answered – like why would the DOJ allow silver to be dumped at depressed prices and not do the same in gold (where JPM is ahead billions of dollars)? And how fair would it be for the Justice Department not to seek redress from JPMorgan for the damage it caused over the past 12 years by suppressing prices?

A subscriber raised a point I hadn’t thought about in my search for an alternative explanation for my take that it was JPM leasing silver from its accumulated stash that accounted for the massive inflows into SLV and other silver ETFs without any corresponding upward effect on price.  Joachim suggested something having to do with the buying of the shares of SLV and other silver ETFs that at first I found even more diabolical than anything I might come up with, but after consideration, didn’t sound as extreme as I first thought.

Joachim wondered if it could be JPMorgan itself buying the shares of SLV and other silver ETFs. My immediate reaction was no way, as that would be even too much of a stretch for the bank I consider the most corrupt in the world (OK, OK, maybe there are more corrupt banks somewhere). My knee-jerk rejection to the idea had to do with JPM having to lie to the SEC about ownership reporting requirements. I have this mindset, ever since Al Capone went to jail for tax evasion and not murder and other serious crimes, that criminals behave criminally, but stick to certain boundaries. It struck me as extreme that JPMorgan would lie on stock ownership reporting requirements. But in thinking it over, Joachim’s suggestion wasn’t so farfetched at all.

Everyone has friends and family, even criminals like JPMorgan.  Therefore, it dawned on me that if 5 or 10 chosen friends of JPM were quietly encouraged to buy up to 4% or so of SLV and other silver ETFs to stay below the 5% threshold of the SEC for share ownership reporting, quite a bit of silver could be bought with no one the wiser.  If someone wanted to buy 20 million shares/ounces in SLV, for instance, there would be no ownership reporting requirements, since total shares outstanding for SLV are 500 million shares/ounces. Five separate friends could buy 100 million shares/ounces with no SEC reporting required.  Double that if you wanted to include all silver ETFs, currently holding close to a billion oz (including SLV).

Why would JPMorgan encourage a favored few close to it to acquire big chunks of silver via the ETFs? If anyone knows that silver is bound to explode in price, it has to be JPMorgan, otherwise it would have never accumulated a billion ounces for itself. Those who were clued in by JPM to pick up silver would, undoubtedly, be indebted  to it should silver perform as expected, giving the bank not only big profits on its own massive silver holdings, but in line to receive future favors from those clued in – making silver the gift that kept on giving. But wait, there’s more.

There’s still the matter of where all the silver is coming from to satisfy the documented buying and physical silver being deposited into SLV and the other silver ETFs. As you know, I claim it is coming from JPMorgan which is leasing out the silver being borrowed by other banks and then sold to the ETFs. So, if JPMorgan is quietly cluing in a few of its friends and family to partake in the investment opportunity of buying silver and then turning around and enabling those friends to buy silver at depressed prices because JPM is lending some of its own metal to unrelated and very much unfriendly banks to benefit JPM’s friends, then you are talking about one whale of a sophisticated double cross.

There are not many outfits capable of even thinking up such a sophisticated undertaking. But then again, such a thing has been pulled off by the criminal geniuses at JPMorgan previously. Who else could have conceived and then executed the most criminally genius move ever, namely, being the largest COMEX silver (and gold) short seller for years and all the while using the depressed prices caused by that excessive short selling to pick up mountains of physical metal at the very same time? Nothing, it would seem could top that feat, but this new one comes close.

Not only is JPMorgan not giving up real ownership to the silver it is lending to other banks and, therefore, keeping all the upside, it has forced the other banks into a deeper short selling hole, as previously outlined. Now I’m adding another benefit to JPM – it is also bestowing a tremendous financial favor to those friends and family it may be encouraging to buy silver. Come to think of it, JPMorgan is the only one capable of such underhanded financial alchemy. Talk about a win, win – JPM wins, as does its friends, and its borrowing and short selling competitors lose – what could be better?

Turning to today’s sudden blast to the downside, a number of things come to mind. Please remember, I am commenting on this Wednesday morning and have no idea what the price landscape will look like when I send this out later. First off, after what has had to have been hundreds of similar sudden and sharp selloffs over the years and decades, no one should be confused about this being strictly a COMEX-orchestrated affair. There’s no other possible explanation that the price takedown was anything other than a COMEX paper-generated operation – just one of a vast series of mini-price manipulations, within the master manipulation that has existed for decades.

Lately, I’ve been impressed with the great number of recent bullish commentaries on silver, concerning all manner of reasons to be bullish, ranging from sharp falloffs in mine production to surging retail and wholesale investment demand. While virtually all the articles make a convincing case for why silver should climb in price in the future and take note of its incredibly cheap price, at the same time, most seem to lack a critical feature, namely, a cogent explanation for why the price of silver is so cheap to start with,

It seems to me that if anyone is going to make the case that silver is cheap and a good investment buy based upon blatantly bullish supply/demand considerations, then there is an implicit responsibility to explain why the price is so cheap to begin with. In fact, I would go so far as to say such an explanation is required – otherwise, is the reader supposed to assume that the author of the particular article is the only one who sees the bullish claims made about silver? Of course, since there aren’t any legitimate reasons for silver to be as cheap as it is, any reason explaining its cheapness must then veer into the illegitimate realm, namely, price manipulation. Since there are still quite a few not prepared to even admit that the price of silver might be manipulated and artificially depressed, the reader is left hanging. That stinks.

Ted Butler

www.butlerresearch.com 

iii) Other physical stories:

 

“Last Call” for June Deliveries!

Great and Wonderful Finally-a-Friday Folks,

      Gold is higher in the early morning with the trade at $1,775.60 up $5 and close to the high at $1,778.90 with the low down at $1,765.60. Silver is adding more to yesterday’s gains with the trade at $18.145, up 9.4 cents with the high right there at $18.17 with the low down at $17.99. The US Dollar’s trade is now valued at 97.31, down 7.8 points after dipping down to 97.235 with the high up at 97.455. Gold’s chart pattern shows how the trade has been acting like a helium-filled-balloon dragging along the ceiling looking for the easy way up, to break out into new life of contract highs, with Silver doing the same, but at $18. Each time the prices are brought down, it turns around. Maybe one day it’ll mean something like the old days when watching the charts – mattered! Of course, all this happened already, before 5 am pst, the Comex open, the London close, and after the big boys in the futures market (in order to sound like the many, call themselves participants) complain about liquidity issues when the Fed is liquifying everything they touch! Tick Tock; said their Algo Clock!

      We see nothing but gains for our precious metals across the emerging markets this morning with Gold under the Venezuelan Bolivar at 17,733.81, proving a gain of 26.97 Bolivar, with Silver at 181.223 Bolivar, a gain of 3.895. Argentina’s value for Gold now sits at 124,454.38 Peso’s showing a gain of 313.39 with Silver at 1,271.81 Peso’s gaining back all of yesterday’s losses and a little more. Even over in Turkey, Gold is gaining with the last trade at 12,173.41 Lira, proving a gain of 18.68 with Silver at 124.397 T-Lira recovering 2.68 in the overnight.

      The Last Call for June Silver Deliveries is today with the demand count still at 8 with no trades posted yet. Yesterday’s activity proved a Volume of 9 posted up on the board with a trading range between $17.805 and $17.755 with the last buy at $17.775 and with that calculated closing price, because there is far more paper than product, at $17.883. Silver’s Overall Open Interest continues to trend lower, with the total count now at 178,252 Obligations proving a short exodus of 2,241 Overnighters going against the buy as we finish out the rollovers and bring in the July Delivery Requests which should put a little pucker into the Silver shorts. Today’s July count sits at 31,198 proving a reduction of 8,246 as this count still shows a Silver demand for 155,990,000 ounces with only 5 and ½ hours left to clear out the specs.

      Mr. Resolute is still up at the Gold Bar with the Demand Count at 1,422 fully paid for contractual obligations waiting for receipts and with a Volume of 250 already up on the board with a trading range between $1,766 and $1,764.70 with the last buy at the low. How 250 contracts can trade in the Comex physicals and inside a $1.30 trading range during London’s time, is beyond me but then again, I’m not the one under investigation, like a certain company we know. Yesterday’s trading range for the 122 contracts that traded in the delivery month occurred between $1,764.80 and $1,757.80 with the last buy at $1,764.30 with the close at $1,762.10. Today’s closing out, of the June Gold’s Deliveries, will require 250 million dollars’ worth of physical product. Gold’s Overall Open Interest, after gaining the day before the Options came off the board, is now falling with the count at 539,649 Overnighters, proving 2,049 short contracts left the trade. The July contracts for Gold are now registering 4,378 Overnighters that have to adjust themselves for the deliveries as well. Let’s see how this all turns out as we say once again into the mic; Last Call for June Deliveries!

World trades seems to have skidded to a stop as the global trade volume in April collapsed by 12.1% over the March volumes. The chart in this article shows the entire global trade, skidding, bouncing, or dragged across crushed glass, above and below the bottom (0) since 2010. Then there was this perfect excuse put into play in January, so now everyone is blaming a bio-bug for the issues and not the overburdened, highly overrated, international debt that can never be paid back. The article also talks about the “V bottom”, but you have to find or be at the bottom first, and with an infinite amount of numbers on the negative side, as there is in the positive (in the land of Algos) we may have a ways to go before “bottom” is discovered.

      We hope your first weekend of Summer is enjoyable. Keep the faith and have a smile on your face, and a prayer in the heart for all, no matter what! We are in this fight together and together; we’ll face the tomorrows. As Always …

Stay Strong!

Jeremiah Johnson

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

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0784/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0861   /shanghai bourse CLOSED UP 8.93 POINTS OR 0.30%

HANG SANG CLOSED DOWN 231.59 POINTS OR 0.93%

 

2. Nikkei closed UP 252,29 POINTS OR 1.13%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 97.36/Euro FALLS TO 1.1215

3b Japan 10 year bond yield: FALLS TO. -+.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.86/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 38.88 and Brent: 41.31

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.47%/Italian 10 yr bond yield DOWN to 1.28% /SPAIN 10 YR BOND YIELD DOWN TO 0.43%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.75: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.26

3k Gold at $1763.70 silver at: 17.87   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 32/100 in roubles/dollar) 69.41

3m oil into the 38 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 106.86 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 .9480 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0634 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.47%

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

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

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

6.  TURKISH LIRA:  UP  TO 6.8553..

Futures Jerk Around Inexplicably In “Abysmally” Illiquid Markets

US index futures swung in an illiquid overnight session in which Bloomberg’s Richard Breslow said “volumes have been utterly abysmal”, concluding a volatile week for stocks, this time ignoring the resurgence in new virus infections across the country that sent them lower earlier in the week. European shares gained on low volumes, 10Y yields dropped by 1.5bps, while the dollar was unchanged.

And speaking of Breslow, he summarizes the overnight moves perfectly:

You know it’s going to be a tough day when the answer to the question of “why thus-and-so has done what it has, such as it has,” is simply, “because.” Ask for more color than that and you get a blank stare. Or, that the S&P 500 was up yesterday, so it’s sagging this morning.

So without trying to piece together a narrative, spoos are shrugging off concerns that a second wave of the pandemic could force policymakers to reverse plans to re-open. On Thursday, virus cases rose across the US by at least 39,818 the largest one-day increase of the pandemic. The governor of Texas temporarily stopped the state’s reopening on Thursday as infections and hospitalizations surged.

“Even though we continue to see some pretty scary virus numbers coming out of the U.S., it’s not really dented sentiment – not to any sustained degree at least,” said Timothy Graf, head of EMEA macro strategy at State Street.

Graf added that recent temporary downward corrections of market optimism have had very little follow-through. And at least on Friday, he was spot on: the MSCI world equity index was up 0.3%, extending gains from late on Thursday.

“There is a disconnect between what you feel should be the case looking at virus numbers and equities and riskier currencies holding up relatively well and volatility receding, but at the same time we’ve never seen a policy response like this, not in the last 80 years at least,” Graf explained. One wonders if that’s how residents of the USSR felt in the mid/late 1980s?

There was a trace of capitalism left when Nike reported extremely disappointing earnings late on Thursday: the company reported Q4 20 EPS of -0.51, far worse than the exp. 0.07, revenue of 6.3bln also missed exp. 7.32bln, while Gross Margin plunged to 37.3% (exp, 43.5%, prev. Y/Y 45.5%).

In Europe, shares opened higher, with the Stoxx 600 up 0.8% and London’s FTSE 100 up 1% in early trading. Air France-KLM climbed after securing a bailout from the Dutch government.

With China still closed, Asian markets traded mostly higher as the region took impetus from Wall Street after US regulators approved to relax Volcker rules, but with some advances in banking names retraced after-market following the Fed stress tests in which it capped dividend payments and banned share repurchases in Q3 for 34 of the largest banks. On Thursday, the Senate passed legislation that would impose mandatory sanctions on people or companies that back efforts by China to restrict Hong Kong’s autonomy, in another potential Sino-U.S. flashpoint. However, with China on holiday the news barely registered with either the Yuan or Chinese stocks.

The Bloomberg Dollar Spot Index held its ground and Treasuries were little changed amid quarter-end flows. The Treasury curve bull-flattened modestly with 10Y yield dropping, while the dollar traded mixed against G10 peers, with moves confined within narrow ranges; the yen led gains, supported by haven demand amid concerns over a second wave of coronavirus infections. The New Zealand dollar rose versus the greenback after the New Zealand Treasury Department documents showed RBNZ has limited scope to increase the size of its quantitative easing program under the existing indemnity with the government. The pound was steady and headed for its first weekly gain since early June following a week of choppy trading on variable risk sentiment. Demand for safe euro zone government debt was little changed, with Germany’s 10-year Bund yield close to monthly lows, at -0.479%.

Oil traded near $39 a barrel in New York as Russia slashed exports of its flagship crude Urals to the lowest in at least 10 years. Gold was near $1,765 an ounce, heading for a third weekly advance, the longest winning run since January. Copper was on track for a sixth weekly advance, with prices edging toward $6,000 a ton.

Economic data include personal income and spending, U. of Michigan sentiment survey

Market Snapshot

  • S&P 500 futures down 0.4% to 3,058.00
  • STOXX Europe 600 up 0.4% to 361.23
  • MXAP up 0.6% to 159.65
  • MXAPJ up 0.3% to 516.21
  • Nikkei up 1.1% to 22,512.08
  • Topix up 1% to 1,577.37
  • Hang Seng Index down 0.9% to 24,549.99
  • Shanghai Composite up 0.3% to 2,979.55
  • Sensex up 0.4% to 34,983.24
  • Australia S&P/ASX 200 up 1.5% to 5,904.08
  • Kospi up 1.1% to 2,134.65
  • German 10Y yield fell 0.5 bps to -0.473%
  • Euro up 0.09% to $1.1228
  • Brent Futures up 0.9% to $41.43/bbl
  • Italian 10Y yield rose 3.7 bps to 1.177%
  • Spanish 10Y yield fell 0.7 bps to 0.451%
  • Brent Futures up 1.4% to $41.64/bbl
  • Gold spot little changed at $1,763.36
  • U.S. Dollar Index down 0.1% to 97.33

Top Overnight News

  • ECB President Christine Lagarde said the recovery from the coronavirus pandemic will be “restrained” and will change parts of the economy permanently
  • The staggering pace of U.K. borrowing runs the risk of uprooting the market calm that has allowed pandemic relief efforts to run smoothly. Britain is likely to issue 410 billion pounds ($508 billion) of bonds for the fiscal year that runs through next March, almost 75% more than the previous record, according to the median estimate of a Bloomberg survey of primary dealers
  • Germany’s coronavirus infection rate fell to the lowest in three weeks, while the number of new cases remained well below the level at the height of the outbreak
  • Oil headed for just its second weekly decline since late April as a surge in coronavirus cases in the U.S. clouded the demand outlook, but the pessimism was tempered by signs Russia is determined to curb output

Asia-Pac markets traded mostly higher as the region took impetus from Wall St’s financial-led gains after US regulators approved to relax Volcker rules, but with some advances in banking names retraced after-market following the Fed stress tests in which it capped dividend payments and banned share repurchases in Q3 for 34 of the largest banks. ASX 200 (+1.5%) was underpinned as the top-weighted financials mirrored the outperformance of the sector stateside and amid positive reports for some of the ‘Big 4’ including Nippon Life considering an additional investment NAB’s wealth management business and Westpac winning a Federal Court decision against ASIC’s appeal regarding the responsible lending suit. Conversely, Qantas was at the other end of the spectrum in which its shares fell on a resumption of trade following its recent announcement for an equity raising, mass job cuts, 100-planes grounding and revoke of its interim dividend. Nikkei 225 (+1.1%) was lifted by the positive momentum and with gains spearheaded by financials which saw the index climb back above the 22500 level, while the Hang Seng (-0.9%) lagged on return from its holiday closure and played catch up to yesterday’s losses. Furthermore, the absence of participants in mainland China and mixed US-China headlines also clouded sentiment after the US Senate passed the bill punishing China for Hong Kong actions, although it was also reported the US was to consider an extension of China goods tariff exclusions. Finally, 10yr JGBs were indecisive as initial pressure from the mostly constructive risk tone, was counterbalanced by this week’s support near the 152.00 level and with the BoJ present in the market for JPY 660bln of JGBs with 1yr-5yr maturities.

Top Asian News

  • Alibaba Replaces CEO of Southeast Asian Arm Lazada
  • Tokyo Inflation Stays Near Zero Even After Emergency Ends
  • China-India Tensions Continue Despite Pledge to Disengage
  • Jakarta Subway Operator Mulls Bond Sale to Expand Network

European equities trade firmer (Eurostoxx 50 +1.4%), after a somewhat choppy start to the day which has seen them trade in negative territory before receiving more of a grinding bid ahead of the US’ entrance; with US futures flat/mixed but moving similarly higher. Stocks have been relatively resilient despite the mounting COVID-19 concerns stateside which has seen Florida and Texas pause their reopening efforts, with ICU’s in the latter state having reached maximum capacity. Furthermore, weakness in the banking sector (US banks were seen lower in after-hours trade) stemming from the latest Fed stress test results has failed to provide any sway on the broader tape thus far with financials in Europe currently the only sector in the red. As a reminder, the Fed capped dividend payments and banned share repurchases in Q3 for 34 of the largest banks. From a sectoral standpoint, positivity at the open was largely seen in the travel & leisure sector with Air France (opened higher by around 9.6%) leading the charge after the French and Dutch governments struck a EUR 3.4bln agreement to bail the Co. out. Furthermore, IAG (+2.2%) shares have also seen support after the Co.’s British Airways unit offered pay rises for some cabin crew members. However, as gains in European indices were trimmed, other travel & leisure names succumbed to the pressure and as such, the sector is trading broadly inline with its peers. Elsewhere, sectors are relatively mixed with price action in some areas lead by stock-specific developments. Notably, it has been another session of heavy losses for Wirecard (-48%) amid reports that Visa & Mastercard are considering withdrawing Wirecard’s ability to process payments on their network. Elsewhere to the downside, shares in Intu Properties (-54%) have been crushed this morning after the Co. noted that insufficient alignment has been achieved with creditors, as such and in order to protect stakeholder interests, they are now likely to involve the appointment of administrators. Finally, in the retail space, H&M shares are lower this morning after posting a SEK 6.48bln pretax losses in the three months through May and as such are laying the groundwork to issue fresh debt to help shore the Co.’s finances up.

Top European News

  • Lufthansa Faces Arduous Climb Out of Crisis After Bailout Sealed
  • Lessons From the Pandemic Add Urgency to ECB’s Focus on Climate
  • U.K. Mall Landlord Intu Likely to File For Administration
  • ECB’s Lagarde Warns of Complicated, Transformational Recovery

In FX, the broader Dollar and index remain within a tight range early-doors as the latter stays afloat above 97.000, albeit off best levels (97.482), having dipped from yesterday’s high 97.600 high and below the 97.500 mark. Looking ahead, today’s data docket sees US personal income, PCE & core PCE price index, Uni. of Michigan (F).

  • EUR – The European outperformer having had kicked off the final trading day of the week with a string of early-morning ECB speakers including Holzmann who downplayed the use of the deposit rate as an instrument, while president Lagarde remarked the economy is possibly past the COVID-19 trough, albeit this was accompanied with a second outbreak caveat. The president, alongside Governing Council member Rehn, also reaffirmed using instruments in a way which provides the most proportional response. However, Lagarde did express caution over a Recovery Fund deal reached at the mid-July summit – sentiment that has been expressed by some members of the Frugal Four. From a technical standpoint, EUR/USD’s 50 DMA has now risen above its 200 DMA, marking a golden cross which is typically perceived as a bullish signal. EUR/USD resides around 1.1225 having recovered from its earlier 1.1203 low, with a sizeable EUR 2.2bln of options expiring at the round figure at the NY cut.
  • NZD – Continued consolidation seen in the Kiwi from post-RBNZ lows of ~0.6400, with an added tailwind after the NZ treasury and central bank reached a funding agreement to ensure central bank has adequate resources to meet increasing responsibilities. NZD/USD sees itself just under 0.6450 having found an intraday base at 0.6415, albeit still a way off its 100 WMA and current weekly high at 0.6522 and 0.6532 respectively.
  • JPY, CHF – Currently the top gainers among G10s as the risk tone further sours despite an absence of fresh fundamental catalysts thus far heading into the weekend. USD/JPY dipped and remains below the psychological 107.00 (coincides with 10 DMA) and yesterday’s 106.97 low from a high of 107.24. USD/CHF lingers sub-0.9500 with a current base at 0.9471 ahead of yesterday’s 0.9469 low.
  • GBP – Sterling remains subdued in early-trade, potentially more-so on the back of the firmer EUR as EUR/GBP hovers around 0.9050 having found support at its 10 DMA at 0.9015. UK specific newsflow has remained light ahead of post-Brexit trade talks next week, with little by way of fireworks expected between the sides. Elsewhere, the UK alongside some European countries offered to limit the scope of proposed digital tax following the US threat which could offer some solace in bilateral post-Brexit relations with Washington. Cable dipped below 1.2400 having had earlier tested the level to the downside.

In commodities, choppy trade in the crude complex once again amid quietened trade heading into the end of the week, with little by way of fresh fundamental newsflow to influence price action. WTI and Brent Aug futures have regained a firmer footing after the latter briefly dipped into negative terriroty in price action that coincided with that in stocks. WTI meanders around USD 39/bbl, having had found a current base at 38.63/bbl, while its Brent counterpart trades on either side of USD 40.50/bbl having touched a low print of USD 41.05/bbl. Looking ahead, traders will be, as usual, eyeing macro newflow in regard to the COVID-19 case count alongside potential US-China or geopolitical developments, whilst data docket sees the weekly Baker Hughes rig count. Spot gold remains within a contained USD 8/oz range around 1765/oz. Copper mimics price action across the equity-space.

US Event Calendar

  • 8:30am: Personal Income, est. -6.0%, prior 10.5%; Personal Spending, est. 9.2%, prior -13.6%
  • PCE Deflator MoM, est. 0.0%, prior -0.5%; PCE Core Deflator YoY, est. 0.9%, prior 1.0%
  • PCE Deflator YoY, est. 0.5%, prior 0.5%; PCE Core Deflator MoM, est. 0.0%, prior -0.4%
  • 10am: U. of Mich. Sentiment, est. 79.2, prior 78.9; Current Conditions, est. 88, prior 87.8; Expectations, est. 74, prior 73.1

DB’s Jim Reid concludes the overnight wrap

Despite the latest virus stats making for more bleak reading, a late bounce into the close on Wall Street saw risk assets stage an impressive turnaround from the lows last night. We’ll get to that shortly but first to quickly recap the main headlines yesterday. In Texas the Governor halted the new phases of reopening the state’s economy as the number of cases rose by over 5000 for the fourth day in a row. It came as they also suspended elective surgery in the state’s biggest cities and headlines hit suggesting that Houston-area ICU wards were full. Meanwhile in Florida, case growth also continued to grow strongly, with a further 4.6% increase yesterday (vs. previous 7-day average of 4%). The recent outbreak in Florida has caused Apple to close an additional 14 stores in the state. This means the company has closed 32 stores in the past two weeks as cases have surged in the southern states. In total, the US added 39,596 new cases yesterday – a new daily high – and in percentage terms new cases grew by 1.7% which is the highest daily increase in 39 days.

That said, the news clearly wasn’t entirely negative, with the original epicentre of New York reporting that the number of virus hospitalisations was now below a thousand for the first time since March 18th. New York City is set to enter “phase 3” of reopening on July 6th, including in-door dining and personal-care services, as well as access to basketball and tennis courts, though capacity will continue to be limited.

The move higher in bank stocks came after the Fed, the Office of the Comptroller of the Currency, and the FDIC approved changes to the Volcker Rule. The rule changes will allow lenders to increase their business with certain funds, including venture capital funds. Regulators also amended a requirement that lenders had to hold margin when trading derivatives with their affiliates, and this reversal could free up an estimated $40 billion for US banks. However, regulators have added a new threshold, which limits the scale of margin that could be forgiven. This was followed by the stress test results after the NY close which included the Fed telling the major US banks that dividends would be capped at second quarter levels and buybacks would be not be allowed through at least Q3.

It was a similar story for the other US indices, with the NASDAQ (+1.09%) and the Dow Jones +1.18%) also seeing late surges. Europe was slightly weaker, with the STOXX 600 up +0.72% as bourses moved higher across the continent. Similar to the US, European Financial Services (+2.24%) and Banks (+1.58%) were among the best performing sectors. Wirecard was once again the worst performer on the STOXX 600, falling by a further -74.90% yesterday after the company filed for insolvency.

The momentum has continued in Asia this morning with the Nikkei (+1.12%), Kospi (+1.06%) and ASX (+0.91%) all up. The Hang Seng is trading down -0.55% having reopened following a holiday while Chinese markets remain closed. Futures on the S&P 500 are flat, as are bond markets. Elsewhere, WTI and Brent oil prices are up around 1% following news that Russia slashed exports of its flagship crude Urals to the lowest in at least 10 years.

In terms of overnight news, the US senate has approved a bipartisan measure that would penalize banks doing business with Chinese officials involved in the national security law that China is seeking to impose on Hong Kong. The bill would require the State Department to report to Congress every year about officials who seek to undermine the “one country, two systems” model that applies to Hong Kong. It gives the President the power to seize the assets of and block entry to the US for those individuals. A companion bill has already been introduced in the House of Representatives for its approval.

Back to yesterday, and markets didn’t appear to be too fussed by the latest weekly initial jobless claims numbers in the US, which for the 2nd week running came in worse than expected. Looking at the detail, there were 1.48m initial claims in the week through June 20th (vs. 1.32m expected), while the previous week’s reading was revised up by +32k. Although that’s now the 12th consecutive week of declining claims from the peak in late March, the last 2 weeks have seen the numbers fall by just -60k this week and -26k the week before, which is a big change from the previous 10 weeks where even the smallest decline was over -200k. The number of continuing claims for the week ending June 13th were somewhat better however, falling to 19.522m (vs. 20m expected), and the insured unemployment rate fell half a point to 13.4%.

Core sovereign bonds were slightly mixed amidst the abrupt turn in sentiment, with yields on 10yr Treasuries (+0.7bps) higher while bunds (-2.8bps) fell. UK gilts outperformed in particular, and yields on the country’s 2yr debt closed at a record low of -0.08%. 10yr gilts similarly closed at a record low of 0.15%, though this was still above their low of 0.075% on an intra-day basis back in March.

In other news, though it was some way down the headlines, the ECB released the minutes from their June meeting yesterday, when they announced an expansion of their Pandemic Emergency Purchase Programme (PEPP) by €600bn. Perhaps the most important aspect was the discussion on the proportionality of the PEPP, as well as the monetary stance more broadly. Bear in mind that one of the German Constitutional Court’s requirements in their ruling was for the ECB to decide on the proportionality of their asset purchase programme. In the minutes, a notable passage was that “there was broad agreement among members that while different weights might be attached to the benefits and side effects of asset purchases, the negative side effects had so far been clearly outweighed by the positive effects of asset purchases on the economy in the pursuit of price stability.”

Elsewhere, ahead of next week’s round of Brexit negotiations in Brussels, we got some interesting comments on Twitter from the UK’s chief negotiator, David Frost. The most notable was that he said “the Government will not agree to ideas like the one currently circulating giving the EU a new right to retaliate with tariffs if we chose to make laws suiting our interests. We could not leave ourselves open to such unforeseeable economic risk.” This is interesting since the possibility of the UK diverging from the level playing field in return for the EU having the right to respond with tariffs had been floated as a possible compromise recently. Following little progress in the negotiations so far, the plan is now for negotiations to take place every week over the next five weeks.

Finally, yesterday’s other data included the preliminary durable goods orders from the US for May. That saw a higher-than-expected increase of +15.8% (vs. +10.5% expected). Meanwhile the Kansas City Fed’s manufacturing index rose to 1 (vs. -1 expected).

To the day ahead now, and the data highlights include French consumer confidence for June, Euro Area M3 money supply for May, and Italian economic sentiment for June. Over in the US, there’ll also be personal income and personal spending for May, along with May’s PCE core deflator and the final University of Michigan sentiment indicator for June.

 

3A/ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 8.93 POINTS OR 0.30%  //Hang Sang CLOSED DOWN 231.59 POINTS OR 0.93%   /The Nikkei closed UP 252.29 POINTS OR 1.13%//Australia’s all ordinaires CLOSED UP 1.41%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0784 /Oil UP TO 38.88 dollars per barrel for WTI and 41.31 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0784 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0861 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA/USA

 

USA senate signs sanctions against Chinese individuals who contributed to the contravention of China’s obligations to Hong Kong.  It now goes to the Senate

(zerohedge)

China Warns US That “Crossing Red Lines” Puts Trade Deal At Risk

The US bill imposing mandatory sanctions on Chinese individuals and entities who “materially contribute to the contravention of China’s obligations” to Hong Kong’s autonomy – and banks that do “significant transactions” with them – was passed unanimously by the Senate on Thursday, with the House of Representatives working on its own version; the final bill gets passed to President Trump, who either signs it or vetoes it – in which case it has a veto-proof majority anyway. This, as Rabobank’s Michael Every wrote, is the constitutional dynamic that has been described several times in the last 12 months for China-focused bills with serious consequences for not just international relations, but international business and finance.

“So far the results have not hit markets: but this bill cuts out the middleman and takes us straight to the biting sanctions”, Every concluded.

But while we await the sanctions to kick in, moments ago we learned once again that China is hardly impressed by the latest developments, and in “quietly delivering a message” to Washington, Chinese leaders have “accused Washington of meddling in areas such as Hong Kong, where China is imposing a sweeping national-security law, and Taiwan.”

According to a report in the journal, during a meeting between Mike Pompeo and China’s top diplomat last week in Hawaii, Yang Jiechi listed these actions as well as China’s “strong dissatisfaction” with a bill President Trump signed last week mandating sanctions against Chinese officials and entities deemed responsible for mass detention of Uighur Muslim in China’s northwestern Xinjiang region.

While Yang reiterated Beijing’s commitment to carrying out the trade deal, he stressed that both sides had to “work together,” said people familiar with the conversations. A Chinese official said that meant “the U.S. side should refrain from going too far with meddling” and that “Red lines shouldn’t be crossed.”

The report then notes that shortly after the meeting concluded, Vice Premier Liu He said that Beijing’s ability to carry out the trade deal required the U.S. to “ease off” pressure on other fronts.

“The two countries should create conditions and atmosphere, and eliminate interference, to jointly implement the Phase One agreement,” Liu said in written remarks to a high-profile financial forum held in Shanghai on June 18.

“You can’t keep asking us to buy your stuff and at the same time keep beating up on us,” said Mei Xinyu, an analyst at a think tank affiliated with China’s Commerce Ministry. “That’s not how it works.”

In short, while Peter Navarro may have fumbled his message earlier this week when he said that the trade deal was off, only to immediately reverse himself when futures plunged and even Trump scrambled to tweet that the deal is still in place, the ball is now in Beijing’s court which – in order to project strength following the just passed sanctions – may decide that it is in Beijing’s best interest to kill the Phase 1 trade deal (especially if that helps get the pro-China Biden elected). And after all, it’s not like China is actually complying with the terms of the deal -as we noted last week, China is currently lagging its import pledges made as part of the “Phase One” deal by some 87%.

And with China’s economy on edge, it is virtually impossible that Beijing will force more companies to uproot existing supply chains and shift to US-sourced production just to appease a US president who is seen by a majority of China’s population as taking an increasingly aggressive stance toward China.

While the news helped push US stocks to session lows, the yuan was mostly unchanged, perhaps because China remains on holiday.

END
CHINA/USA
It begins!!

US Blocks Visas For Chinese Officials & Their Families Over Hong Kong Crackdown

In the fast escalating tit-for-tat Washington blitz on China, the Trump administration Friday announced sanctions on top Chinese Communist officials which bar them and even their family members from entering the United States.

It’s a severe punitive move for Beijing’s recent crackdown on Hong Kong’s autonomy. Secretary of State Mike Pompeo in announcing the measure – a major shot across the bow no doubt – as part of “carrying out the President’s orders” further consistent with a congressional law.

The new visa restriction measures will apply to current and former top Chinese Communist Party officials “who are believed to be responsible for, or complicit in, undermining Hong Kong’s high degree of autonomy.”

 

Via CNN

“The United States calls on China to honor its commitments and obligations in the Sino-British Joint Declaration – namely that Hong Kong will ‘enjoy a high degree of autonomy’ and that human rights and fundamental freedoms, including the freedoms of expression and peaceful assembly, will be protected by law and respected by governing authorities in Hong Kong,” Pompeo’s statement said.

Congress last year passed the Hong Kong Human Rights and Democracy Act, requiring the administration to review whether mainland China was respecting and upholding Hong Kong sovereignty, and if not, impose sanctions.

Earlier Chinese officials warned of “red lines” if the White House carries through with its promised punitive measures.

As we reported earlier, the US bill imposing mandatory sanctions on Chinese individuals and entities who “materially contribute to the contravention of China’s obligations” to Hong Kong’s autonomy – and banks that do “significant transactions” with them – was passed unanimously by the Senate on Thursday, with the House of Representatives working on its own version; the final bill gets passed to President Trump, who either signs it or vetoes it – in which case it has a veto-proof majority anyway. This, as Rabobank’s Michael Every wrote, is the constitutional dynamic that has been described several times in the last 12 months for China-focused bills with serious consequences for not just international relations, but international business and finance.

“So far the results have not hit markets: but this bill cuts out the middleman and takes us straight to the biting sanctions”, Every concluded.

But while we await the sanctions to kick in, moments ago we learned once again that China is hardly impressed by the latest developments, and in “quietly delivering a message” to Washington, Chinese leaders have “accused Washington of meddling in areas such as Hong Kong, where China is imposing a sweeping national-security law, and Taiwan.”

According to a report in the journal, during a meeting between Mike Pompeo and China’s top diplomat last week in Hawaii, Yang Jiechi listed these actions as well as China’s “strong dissatisfaction” with a bill President Trump signed last week mandating sanctions against Chinese officials and entities deemed responsible for mass detention of Uighur Muslim in China’s northwestern Xinjiang region.

While Yang reiterated Beijing’s commitment to carrying out the trade deal, he stressed that both sides had to “work together,” said people familiar with the conversations. A Chinese official said that meant “the U.S. side should refrain from going too far with meddling” and that “Red lines shouldn’t be crossed.”

The report then notes that shortly after the meeting concluded, Vice Premier Liu He said that Beijing’s ability to carry out the trade deal required the U.S. to “ease off” pressure on other fronts.

“The two countries should create conditions and atmosphere, and eliminate interference, to jointly implement the Phase One agreement,” Liu said in written remarks to a high-profile financial forum held in Shanghai on June 18.

“You can’t keep asking us to buy your stuff and at the same time keep beating up on us,” said Mei Xinyu, an analyst at a think tank affiliated with China’s Commerce Ministry. “That’s not how it works.”

In short, while Peter Navarro may have fumbled his message earlier this week when he said that the trade deal was off, only to immediately reverse himself when futures plunged and even Trump scrambled to tweet that the deal is still in place, the ball is now in Beijing’s court which – in order to project strength following the just passed sanctions – may decide that it is in Beijing’s best interest to kill the Phase 1 trade deal (especially if that helps get the pro-China Biden elected). And after all, it’s not like China is actually complying with the terms of the deal -as we noted last week, China is currently lagging its import pledges made as part of the “Phase One” deal by some 87%.

end

4/EUROPEAN AFFAIRS

GERMANY/EU

EU launches an investigation into the German regulator,BAFIN that helped cover up Wirecards’ historic fraud. BAFIN is the same regulator that has ignored our claims of fraud in the precious metals arena

 

(zerohedge)

EU Launches Investigation Into German Regulator That Helped Cover Up Wirecard’s Historic Fraud

It’s a saying seemingly as old as humanity itself: The bigger they are, the harder they fall.

Yesterday, Wirecard, an enterprise once valued at more than $20 billion on the public markets, filed for insolvency as its shares are now almost worthless while many who bought insurance against the company’s debt (an extremely cost-effective position thanks to its low theta) have earned returns as high as 300% or 400%, or, in some cases, even more.

For those who haven’t been closely following the Wirecard saga over the past 2 years (as the FT’s Dan McCrum and other members of the investigations team doggedly persevered in their coverage of what’s undoubtedly the biggest corporate accounting fraud in German post-war history), one of the most interesting aspects of the story is the role that Germany’s financial regulators played in fending off threats to the DAX 30 component, even at times openly citing “contagion risk” to fragile European markets as its motivation for protecting what turned out to be a gang of criminal profiteers.

And finally, it appears BaFin, the Munich-based regulator who caused the FT so much stress during the investigation, will soon receive its just desserts as Brussels calls for a probe into the German regulator.

European financial regulators are still reeling from their embarrassing failure to root out a massive money laundering fraud that involved several of the Continent’s biggest multinational banks, and apparently allowed criminal organizations (and even Vladimir Putin himself, possibly) to clandestinely move money out of the CIS and in to the European Union and the US. This latest stain on BaFin’s reputation must be addressed if officials hope to restore credibility in their financial system.

According to the FT, Valdis Dombrovskis, the EU’s executive vice-president in charge of financial services policy, is writing to the bloc’s top markets supervisor asking it to assess BaFin’s handling of the Wirecard fiasco. Dombrovskis reportedly said the EU should be prepared to investigate the German regulator for “breach of union law” if the preliminary probe by the European Securities and Markets Authority (better known as ESMA) uncovers any rule-breaking. “We will be asking Esma to investigate whether there have been supervisory failures and if so to set out a possible course of action,” Dombrovskis told the FT. “We need to clarify what went wrong.” He will set a mid-July deadline for Esma to reply.

Brussels is worried that the company’s collapse, something more redolent of Chinese and Hong Kong markets, where ongoing frauds are routinely given a sheen of legitimacy, threatens investor trust in the EU, and could have lasting implications if it’s not dealt with swiftly. Regulators must show that they’re learning from these massive mistakes.

“This is certainly something that requires investigation,” Mr Dombrovskis said. “As we deepen capital markets and we move forward with the next stages of the Capital Markets Union, an important element is investors’ trust investing in publicly listed companies.” “Investors need to be sure that they are receiving proper and truthful information . . . and that provision of this financial information is properly supervised,” he said.  Mr Dombrovskis’s call on Esma to intervene is an embarrassment for Germany only days before it assumes the rotating presidency of the EU. He told the FT that the question was whether BaFin fulfilled its obligations to enforce an EU law on listed companies’ financial statements, known as the transparency directive.  The law hands clear responsibilities to national supervisors like BaFin to make sure companies fulfil their obligations. Esma, a pan-EU watchdog based in Paris, sets “common enforcement priorities” for national regulators each year.

[…]

“Given longstanding allegations about Wirecard’s financial accounting, we expect the German authorities including BaFin will now thoroughly investigate whether Wirecard accounts correspond to EU legislation,” Mr Dombrovskis said.

As BaFin prepares for its well-deserved comeuppance after effectively allowing itself to be pimped out by a (soon-to-be-former) DAX 30 (soon to be DAX 29) member, acting like a formidable attack dog fending off journalists and short-sellers alike, one of the most satisfying twists in the Wirecard saga was the vindication of dogged FT investigative journalist Dan McCrum. McCrum pursued Wirecard despite becoming the target of a BaFin investigation into stock manipulation which was, as we now know, based on suspicions that were 100% baseless. He faced down myriad threats, both real and perceived, over a period of a couple of years. The level of pushback was stunning, as McCrum explained. At times, he felt like he was being gaslighted. But in the end, the old journalists’ intuition that the harder the pushback, the bigger the truth, won out.

end

Not only the regulator but the accounting firm Ernst and Young may be in big trouble on the fraud at Wirecard

(zerohedge)

 

“Arthur Andersen 2.0” – Ernst & Young Could Have Uncovered Wirecard Fraud Years Ago: FT

Now that Wirecard’s nearly 15-year-long accounting fraud – the biggest corporate accounting scandal in post-war German history – has been uncovered, the negligence exercised by the company’s auditors, auditors who lent the black-box digital payments firm the patina of authenticity that it needed to get listed on the DAX and dupe German regulators into investigating its enemies, must not go undisclosed.

Just like Bernie Madoff, or Enron, no accounting fraud of this magnitude can continue for as long as this one did without third-parties looking the other way, or even deliberately conspiring to conceal the fraud. And the lack of transparency combined with diffusion of responsibility inside major accounting firms like Ernst & Young, which signed off on Wirecard’s books for a decade, can sometimes create the perfect environment for something like this to continuously slip through the cracks. 

In a re-run of the Enron scandal, which led to the demise of accounting giant Arthur Andersen (the firm collapsed under regulatory and financial pressure in the aftermath of the Enron blowup, and its accounting business was later purchased by Accenture), the FT just reported that Ernst & Young could have uncovered Wirecard’s fraud years ago if it had only bothered to audit a Singapore-based bank account where the company claimed its fraudulent revenues – some $2.1 billion of revenue, to be precise – were allegedly parked.

Here’s more from the FT:

People with first-hand knowledge told the Financial Times that the auditor between 2016 and 2018 did not check directly with Singapore’s OCBC Bank to confirm that the lender held large amounts of cash on behalf of Wirecard. Instead, EY relied on documents and screenshots provided by a third-party trustee and Wirecard itself.  “The big question for me is what on earth did EY do when they signed off the accounts?” said a senior banker at a lender with credit exposure to Wirecard.  A senior auditor at another firm said that obtaining independent confirmation of bank balances was “equivalent to day-one training at audit school”.  OCBC declined to comment. A person briefed on the details told the Financial Times that Wirecard has no banking relationship with OCBC and that the fintech’s former Singapore-based trustee does not have an escrow account with the bank. The lender did not receive any query from EY in relation to Wirecard between 2016 and 2018, the person added.

To be sure, in terms of sheer scale, the collapse of Enron was much bigger than Wirecard’s slide into insolvency (even though two-thirds of the company’s revenue in recent years has been proven to be completely made up). The firm, which has maintained that it couldn’t have possibly known about the fraud, is reviewing the work of its German auditors via an “out of country” team.

But that doesn’t mean EY should escape serious consequences. Many are already wondering: will Wirecard’s collapse transform EY into “Arthur Andersen 2.0?”

end
GLASGOW/SCOTLAND
When will this end?  Three killed in terror attack in downtown Glasgow
(zerohedge)

3 Killed During Suspected Terror Attack In Downtown Glasgow

Three people have been murdered during a suspected terror attack in Glasgow’s city center, according to the Telegraph.

A male suspect reportedly stabbed several people, including a police officer, before being shot dead by an armed officer. The incident is believed to have taken place at the Park Hotel, where more than 20 emergency response vehicles were congregating downtown. But details aren’t yet available.

Video from the scene is circulating via European media.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

My goodness:  two million restaurants worldwide

Two Million Restaurants Worldwide At Risk Of Collapse 

After several months of a slow recovery in restaurant dining data in the U.S. and across the globe, there is absolutely no evidence of a V-shaped recovery in the food industry and suggests millions of eateries are on the brink of collapse, consulting firm Aaron Allen & Associates told Bloomberg.

“Based on our estimates, we believe up to 10% of all restaurants globally will disappear, with 20% or more also going through a restructuring process,” said founder Aaron Allen. “This is a conservative case, in our view.”

Of the roughly 22 million restaurants worldwide, about 2.2 million are expected to shutter operations. Global restaurant traffic data via OpenTable shows little improvement in late June.

We noted, on Sunday, June 14, after months of slow improvement, restaurant traffic suddenly plunged, sliding from a -66.5% y/y decline as of June 13 to -78.8% globally. The plunge was mostly due to a sharp drop in U.S. restaurant diners, which plunged by 13% – from -65% to -78% – the biggest one day drop since the start of the shutdown in the U.S., and the second biggest one day drop on record.

Another sharp drop in U.S. restaurant traffic was noticed on Monday, June 22, due mostly because of the emergence of the second virus wave in some states, Bloomberg reports:

Cases are surging in Texas, Florida, Arizona, and in California, which on Tuesday broke its record for new cases for the fourth day in the past week. Even in New Jersey, where numbers have been falling, Governor Phil Murphy warned that the transmission rate is “beginning to creep up.”

Coronavirus cases in the U.S. increased by 35,695 from the same time Monday to 2.33 million, according to data collected by Johns Hopkins University and Bloomberg News. The 1.6% gain was higher than the average daily increase of 1.3% the past seven days. Deaths rose 0.7% to 120,913….

So with the emergence of a second virus wave in the U.S., and, in fact, cases globally are rising, slumping restaurant traffic is going to be disastrous for heavily indebted eateries betting on a reopening.

Several bankruptcies have already been seen, including Le Pain Quotidien and Garden Fresh Restaurants, the owner of Souplantation and Sweet Tomatoes. Also, TGI Fridays and Cousins Subs have reduced their retail footprint.

“Weaker businesses are searching for pre-Chapter 11 solutions,” said John Gordon, principal at Pacific Management Consulting Group, an eatery consultancy. “There will be many closings, particularly independents.”

Allen said the emergence of the virus could supercharge the restaurant bankruptcy wave.

OpenTable recently warned that 25% of all U.S. restaurants would never reopen.

For restaurants with the most robust balance sheets – some are finding new ways to survive, from offering substantial discounts to outside seating to curbside pickup to selling groceries. The staff has been reduced to skeleton size, and menus have been significantly trimmed.

“We can almost live in between this space between meal kits and online grocery delivery,” New York-based chain Just Salad’s CEO Nick Kenner said. He estimates groceries could be a quarter of sales this year.

Pacific Management’s Gordon said a recovery in restaurants could be seen in 2022.

“On the whole, most quick-service restaurant brands are in fair shape, while some fast-casual and casual dining brands are still struggling,” he said. “Fine dining brands need business travel to resume before they see traffic recovery.”

With 15.6 million workers employed in the US restaurant industry, and tens of millions worldwide, the current state of the restaraunt industry does not suggest a V-shaped economic recovery narrative for this year.

END

Historic decline in world trade volumes:  we do not have a V shaped recovery anywhere!

(zerohedge)

“Historic Decline” Seen In April World Trade Volumes As V-Shaped Narrative Implodes 

New CPB World Trade Monitor data shows a “historical decline” in world trade volume in April of 12.1% compared with March.

“Exports fell back significantly in several regions: -23% for both the eurozone and the US, -21% for Latin-America, -14% Japan, and -11% for other advanced economies. Imports declined most in Latin-America (-18%), the eurozone (-17%), the US (-11%), and other advanced economies (-15%).

“The growth in world trade during the months February to April compared with the preceding three months was -7.2%. None of the regions showed an increase, and the eurozone showed the most negative development (-13% exports, -11% imports),” CPB World Trade Monitor said.

The world merchandise trade volume, three months moving average, shows global trade stalled in late 2017 through 2019 – turned abruptly lower during the COVID-19 pandemic.

The world merchandise trade volume, last three months on the preceding three months, shows the virus pandemic triggered the worst declines of the global expansion. Suggesting worldwide lockdowns have triggered a recessionary shock.

Global industrial production volume three months moving average in terms of the world, advanced economies, and emerging economies – notice how volumes leveled off between late 2017 and 2019 – then plunged during the virus lockdowns in early 2020.

Global industrial production volume, last three months on the preceding three months in terms of the world, advanced economies, and emerging economies – the virus pandemic was by far the worst shock of the entire cycle.

Around this time (late April), we noted, global economic activity may have troughed – but it won’t materialize into a V-shaped recovery as many in the Trump administration and Wall Street would like to believe.

With world trade still in the dumps – a rise in global virus cases and deaths could derail the global recovery and lead to a prolonged downturn.

Forget a V-shaped, try a ‘Nike swoosh’ recovery – as explained by UCLA Anderson Forecast senior economist David Shulman, who recently said the virus pandemic has “morphed into a Depression-like crisis” with no V-shaped recovery until 2023.

END

SWEDEN/ H & M

Huge loss for H and M the world’s second largest clothing retailer.  I do not think they will ever get back to its former glory

(zerohedge)

Pandemic Punishes H&M With First Quarterly Loss In Decades 

Sweden’s Hennes & Mauritz (H&M), the world’s second-largest clothing retailer, recorded its first quarterly loss in decades due to COVID-19 shuttering many of its stores.

“At most around 80 percent of our stores were closed in the second quarter and in those markets where stores were open, demand was significantly subdued. Although we took rapid and decisive action, which reduced our costs considerably, it was impossible to compensate for the 50 percent drop in revenue, and, as we had previously communicated, the quarter was loss-making,” Chief Executive Helena Helmersson said in a statement.

H&M sales per week vs. last year 

H&M warned in April that a quarterly loss was expected in 2Q and said heavy discounting of products would significantly squeeze gross margin. Due to the high level of markdowns, earnings are expected to deteriorate through 3Q.

“Rapid adjustments to product purchasing and buying plans meant that the stock-in-trade was able to be reduced somewhat in the second quarter compared with the previous year. However, since there is an oversupply of spring products throughout the industry, and the market remains weakened, we expect markdowns in relation to sales to increase again in the third quarter. We are continuing to adjust costs to mitigate the negative impact of the Covid-19 situation,” Helmersson said.

The pre-tax loss was 6.5 billion crowns against a year-earlier profit of 5.9 billion. Analysts had, on average, forecast a 6.4 billion crown loss, according to Refinitiv data.

H&M shares trading on the Stockholm Stock Exchange traded 2% lower on Friday, still, 32% below its pre-corona peak observed in late January.

At the moment, 7% of its more than 5,000 stores remained shuttered – at the peak of the lockdowns, at least 80% of the retailer’s stores were closed. It said it would expedite closures and open fewer new stores this year despite the easing of restrictions seen around the world.

“At the end of the second quarter, i.e., on 31 May, 1,328 of the group’s stores remained temporarily closed, and 978 stores have reopened since. Currently, 350 stores are temporarily closed, representing 7 percent of the group’s stores. For a large number of the group’s stores, there are still local restrictions and opening hours are limited,” Helmersson said.

About 12% of the retailer’s stores reside within the US. Coronavirus cases are increasing in Texas, Florida, and California as reopening delays have already been seen in some of these states. Hopes for a V-shaped recovery are fading fast as the emergence of the second virus wave is becoming more evident by the week. This is more bad news for all retailers. 

END

7. OIL ISSUES

18 million barrels of sanctioned Venezuelan oil is stuck at sea with no buyers

Paraskova/OilPrice.com

18 Million Barrels Of Sanctioned Venezuelan Oil Are Stuck At Sea

Authored by Tsvetana Paraskova via OilPrice.com,

Oil tankers carrying at least 18.1 million barrels of Venezuelan oil are currently idling at sea across the world unable to find buyers – some for as long as six months – as many potential and previous customers of Venezuela’s crude are not taking chances with delivery for fear of incurring secondary U.S. sanctions.

According to Reuters estimates based on shipping data, industry sources, and documents of Venezuela’s state oil firm PDVSA, at least 16 tankers are idling off the coasts of Africa and Southeast Asia because few potential buyers would risk U.S. sanctions for dealing with the regime of Nicolas Maduro.

The 18.1 million barrels of still unsold Venezuelan crude oil is equal to two months of the country’s production at its current rate, according to Reuters.

Over the past months, the U.S. Administration has increasingly stepped up its maximum pressure campaign on Venezuela and its oil industry and exports, seeking to cut off revenues for Maduro’s regime.

Earlier this year, the United States slapped sanctions on Rosneft’s Switzerland-based trading arm and signaled that it was ready to tighten even more the noose around the Venezuelan government.

Despite the U.S. sanctions, Venezuelan crude has still been reaching China in recent months. 

According to the U.S. Administration, the tanker Delos Voyager – which is now a blocked property – loaded 515,000 barrels of Venezuelan crude in mid-January 2020 and delivered it to Qingdao, China, in February 2020, while EUROFORCE loaded 500,000 barrels of Venezuelan crude in mid-March 2020 and transferred the cargo to another vessel in the South China Sea in late May 2020.

END

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1215 DOWN .0003 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS//CORONAVIRUS/PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 106.86 DOWN 0.301 (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 1.2388   DOWN   0.0036  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3649 UP .0011 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  FRIDAY morning in Europe, the Euro FELL BY 3 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1215 Last night Shanghai COMPOSITE CLOSED UP 8.93 POINTS OR 0.30% 

 

//Hang Sang CLOSED DOWN 231.59 POINTS OR 0.93%

/AUSTRALIA CLOSED UP 1,41%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 231.59 POINTS OR 0.93%

 

 

/SHANGHAI CLOSED UP 8.93 POINTS OR  0.30%

 

Australia BOURSE CLOSED UP 1.41% 

 

 

Nikkei (Japan) CLOSED UP 252,29  POINTS OR 1.13%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1764.75

silver:$17.87-

Early FRIDAY morning USA 10 year bond yield: 0.67% !!! DOWN 1 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.415 DOWN 2  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 97.36 DOWN 7 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing  FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.45% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +0.01%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.45%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,30 UP 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 85 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.47% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.77% 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 FRIDAY

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

Euro/USA 1.1214  DOWN     .0004 or 4 basis points

USA/Japan: 107.18 UP .019 OR YEN DOWN 2  basis points/

Great Britain/USA 1.2333 DOWN .0091 POUND DOWN 91  BASIS POINTS)

Canadian dollar DOWN 58 basis points to 1.3697

 

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The USA/Yuan,CNY: AT 7.0784    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7..0883  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.860 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 4 IN basis points from THURSDAY at 0.64 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.37 DOWN 4 in basis points on the day

Your closing USA dollar index, 97.55 UP 11  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED up 12.16  0.20%

German Dax :  CLOSED DOWN 88.48 POINTS OR .73%

 

Paris Cac CLOSED DOWN 8.94 POINTS 0.18%

Spain IBEX CLOSED DOWN 91.90 POINTS or 1.26%

Italian MIB: CLOSED down 110.39 POINTS OR 0.57%

 

 

 

 

 

WTI Oil price; 38.07 12:00  PM  EST

Brent Oil: 41.44 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    69.78  THE CROSS HIGHER BY 0.70 RUBLES/DOLLAR (RUBLE LOWER BY 70 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.24 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  38.12//

 

 

BRENT :  40.71

USA 10 YR BOND YIELD: … 0.65..down 4 basis points…

 

 

 

USA 30 YR BOND YIELD: 1/38.down 6 basis points..

 

 

 

 

 

EURO/USA 1.1229 ( UP 11   BASIS POINTS)

USA/JAPANESE YEN:107.18 UP .020 (YEN DOWN 2 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.46  UP 4 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2343 DOWN 81  POINTS

 

the Turkish lira close: 6.8547

 

 

the Russian rouble 69.76   DOWN 0.68 Roubles against the uSA dollar.( DOWN 68 BASIS POINTS)

Canadian dollar:  1.3034 DOWN 21 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.47%

 

The Dow closed DOWN 730.12 POINTS OR 2.84%

 

NASDAQ closed DOWN 259.78 POINTS OR 2.59%

 


VOLATILITY INDEX:  35.06 CLOSED UP 2.84

LIBOR 3 MONTH DURATION: 0.306%//libor dropping like a stone

LIBOR/OIS: .231%

TED SPREAD (3 MONTH TREASURY BILL VS LIBOR)  =  .154%

 

USA trading today in Graph Form

Stocks & Bond Yields Plunge On COVID Surge & Fed Balance Sheet Purge

That felt weird eh? A down week for stocks? Bad news was not good news and dips weren’t bought? Nasdaq was the least worst on the week as Dow, S&P, and Small Caps all fell in line…

That’s the second down week in the last three – WTF is happening!!!

Three reasons stand out (yes, we know the deluge of virus resurgence and China tension headlines may have catalyzed it but it’s not like that’s anything the market hasn’t completely shrugged off for two months):

First, the ‘hard data’ jobs picture refused to confirm the ‘soft data’ surveys that a V-shaped recovery is here…

Source: Bloomberg

Second, the post-June-op-ex trend was not your friend historically…

Third, and most importantly, The Fed dared to allow its balance sheet to shrink for the second week in a row!!!

Source: Bloomberg

Do you still want to play the game?

Here are the main headlines that sparked the moves today:

  • 1000ET *TEXAS GOVERNOR ORDERS TAVERNS TO CLOSE IN RESPONSE TO VIRUS
  • 1050ET *CHINA MESSAGES THAT U.S. PRESSURE COULD JEOPARDIZE PURCHASES OF U.S. EXPORTS
  • 1100ET *HARRIS COUNTY, TX, TO DECLARE TOP-LEVEL EMERGENCY ON COVID-19
  • 1120ET (Bullish) – *KEY FAA TEST FLIGHT OF BOEING‘S 737 MAX JET EXPECTED NEXT WEEK
  • 1125ET *ARIZONA VIRUS CASES JUMP 5.4%, ABOVE PRIOR 7-DAY AVE. OF 2.9%
  • 1130ET *FLORIDA SUSPENDS CONSUMPTION OF ALCOHOL AT BARS STATEWIDE
  • 1145ET *EU MOVES TOWARD RECOMMENDING A BAN ON ENTRY TO U.S. TRAVELERS
  • 1220ET *SAN FRANCISCO MAYOR BREED: TO DELAY REOPENINGS PLANNED FOR MONDAY

The Dow broke below 25k, testing down to its 50DMA…

S&P Futs broke below 3,000 while the cash S&P tested its 200DMA all day and they even wheeled out Mnuchin and Kudlow in the last hour to try and stabilize things…

  • 1510ET *KUDLOW SAYS EVERY NUMBER IS SHOWING V-SHAPE RECOVERY FOR U.S.
  • 1515ET *MNUCHIN: WILL GO BACK TO CONGRESS NEXT MONTH FOR MORE TOOLS

It didn’t work at first but then came the panic bid in the last 15 minutes to close it back above the 200DMA

 

Nasdaq’s largest companies are on the verge of completing a comeback that has taken more than 17 years to unfold. As Bloomberg reports, the turnaround is based on the ratio between the Nasdaq-100 and S&P 500 indexes, which plunged as much as 69% from a March 2000 record through September 2002.

 

The ratio rose above the record as U.S. exchanges opened Thursday, only to come up short by the close. “This incessant demand for all things internet and tech” is behind the Nasdaq-100’s rebound, Troy Bombardia, a former hedge-fund manager, wrote Thursday in a post on the SentimenTrader blog.

Interestingly, it appears institutions finally capitulated on their shorts this week (this data is as of Tuesday’s close, which may explain the early week surge)

 

Source: Bloomberg

FANG Stocks had a tough week, not helped by the FB boycott…

 

Source: Bloomberg

Banks had an ugly day after the stress test restrictions last night…

Source: Bloomberg

The dollar managed a big roundtrip on the week to end very marginally higher…

 

Source: Bloomberg

Bitcoin was lower on the week, but found support around $9,000 once again…

 

Source: Bloomberg

Bonds were bid on the week with the long-end outperforming…

Source: Bloomberg

With 30Y back to its lowest since May…

Source: Bloomberg

Quite a gap to fill…

Source: Bloomberg

Oil was lower on the week as gold and silver gained. Copper outperformed (on Chilean production concerns)…

Source: Bloomberg

WTI ended the week below $40…

Silver’s late-week outperformance of gold pushed the gold/silver ratio back below 100x…

Source: Bloomberg

And finally, we wonder if this may be the 4th reason for recent vol? With The Fed balance sheet’s growth no longer erasing every fear, the surge in probabilities of a Democrat win in November seems to have spooked the market…

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Treasury Yields Tumble To One-Month Lows As Stocks Slump, Dollar Jumps

Dow futures have tumbled nearly 600 points to 25k with small caps leading the collapse (down 2.5% on the day)…

Pushing The Dow back to two-week lows…

And bond yields are plunging, with 30Y back to one-month lows…

But stocks have a long way to fall to catch down to reality…

The Dollar has broken out to its strongest since May…

Mnuchin, get someone on the phone!

The volatility is coming as The Fed balance sheet shrinks for the second week in a row

Maybe Powell will need to start printing again?

b)MARKET TRADING/USA/AFTERNOON

Stocks Plunge, Erase Late-Day Panic Bid On Texas Shutdown Rumors

US equities are down notably this morning, erasing all the late-day surge yesterday as rumors abound that Texas may reverse its reopening plans.

CBS News’ Doug Dunbar tweeted the following:

Sources confirm a coming announcement from @GregAbbott_TX shortly, regarding a roll back on certain reopening phase items. I’m told bars and restaurants will be the subject.

And that accelerated losses, erasing thje surge on optimism about hospitalizations from yesterday afternoon…

While The Dow and Small Caps are worst on the day, Nasdaq is now back below overnight lows…

 

Cue Kudlow!

 end

 

ii)Market data/USA

US Spending Surges At Record Pace In May As Government Wages Crash

Following the somewhat surprising surge (stimulus checks) in personal incomes in April (after March’s collapse), May’s income data was expected to fade as spending rebounded strongly (on the pent-up-demand after re-opening).

On a month-over-month basis, personal income did drop, but less than expected (-4.2% MoM vs -6/0% exp) but spending rose less than expected (+8.2% MoM vs +9.3% exp) – this was still the biggest surge in spending on record (since 1958).

Source: Bloomberg

Year-over-year, income growth slowed (as stimulus checks slowed) but spending’s slump rebounded only modestly (remaining down a shocking 9.3% YoY)…

Source: Bloomberg

Note that personal income (ex-transfer receipts – i.e. stimulus checks) rebounded very modestly…

Source: Bloomberg

…as government handouts plunged by $1.1 trillion to $5.3 trillion…

In fact, on the income side of the equation, May saw the biggest drop in government wages on record…

All this chaotic noise has sparked massive volatility in the implied savings rate, which plunged back towards old normal (from 32.2% to 23.2%) but still remains extremely high…

Source: Bloomberg

Finally, we note that The Fed’s favorite inflation indicator  – Core PCE Deflator – slowed even firther to +1.0% YoY (slightly hotter than the +0.9% YoY expected)…

Source: Bloomberg

Providing Powell and his pals cover to keep on pumping.

iii) Important USA Economic Stories

CORONAVIRUS UPDATE/USA/THE GLOBE

US Sees Record Jump In COVID-19 Infections For 2nd Day In A Row As Biden Claims He’d Make Mask-Wearing Mandatory: Live Updates

As we reported last night, the US saw another record (or near record, depending on who you ask) jump in newly confirmed COVID-19 cases yesterday thanks to new records in Florida and Texas, and record (or near-record) numbers across much of the south and west.

According to the Washington Post, the final count for Thursday’s increase was 39,327 new infections reported by state health departments across the country. That number surpasses WaPo’s total set a day earlier (though some sources put the number of cases reported Wednesday as high as 45k). Texas alone reported a record 5,996 new cases (along with another record high for coronavirus hospitalizations) last night and, as WaPo points out, the Lone Star State’s rolling average has increased by 340% since Memorial Day.

With the US facing an unexpectedly large pickup in new cases, the median age of those infected has fallen sharply, down from 65 to around 35 today. This has been widely cited as one reason why deaths have continued to plateau, or even trend lower, amid all the insanity.

For the first time in nearly two months, the White House coronavirus task force will hold a news briefing on Friday to address the situation. But unlike previous briefings, VP Mike Pence will lead, and President Trump isn’t expected to make an appearance.

Last night, Joe Biden just took the “politicization” of mask-wearing up a notch by declaring that, if he were president, he would mandate mask-wearing in public, even though masks are only recommended to be worn in indoor locations (especially those with poor ventilation), or in outdoor areas where social distancing simply isn’t possible.

Coronavirus hospitalizations in New York dipped below 1,000 for the first time since March 18, Gov. Andrew M. Cuomo said Thursday. The WHO also said the virus could once again “push health systems to the brink” in Europe after 30 countries across the continent have seen cases rebound over the past 2 weeks.

As Australia learns the hard way that there’s nothing worse than declaring “victory” over the virus, only for it to come surging back a few weeks later, supermarkets around the country are being forced to impose limits on toilet paper purchases as Australians engage in another wave of “panic buying” amid fears that lockdowns might return (even though the number of cases reported over the last week is relatively minuscule). Victoria alone saw 30 new cases reported Friday, while a few other regions have reported one, or a handful, of new cases.

However, deaths in the US have continued to fall, with the 7-day average for the entire US hitting its lowest level since March.

Of course, every pundit inevitably points out that this trend likely won’t last for too much longer even as there’s plenty of reason to believe that deaths this time around won’t be as severe since we’ve learned more about how best to protect the most vulnerable to serious illness – ie those in long-term care homes, who in several instances died by the dozens as the virus tore through institution after institution.

Taking a step back, all but one of the 15 states seeing the biggest accelerations in new cases and hospitalizations are situated in the south or the west. That state is Missouri, which, as the Atlantic correctly points out, is sometimes lumped in with the south.

The cumulative 7-day totals from the past week are already on track to make this past week the worst in terms of newly confirmed infections.

Yesterday marked another reported high in the outbreak according to the Atlantic’s stats from last night. Of course, the final numbers reported a day earlier ended up being over 45k for the day, according to some estimates. But according to the data, both Tuesday and Wednesday of this week saw record or near-record numbers of newly confirmed cases. Furthermore, while testing is rising across the country,

As Beijing unwinds more restrictions following its latest flare-up, Japan has just confirmed more than 100 new daily COVID-19 cases, the largest daily total since May 9, while in India, the biggest 24-hour spike in cases (17,296 new infections reported) pushed the country’s total case number close to half a million (490,401 in total) while deaths climbed by 407 bringing the death toll to 15,301. On the bright side, the country is seeing an improvement in the recovery rate for the most severe cases, with it climbing to 57.43%. Also, deaths per 100,000 stood at just 1.86, well below the global average of 6.24 per 100,000, per Al Jazeera.

END
CORONAVIRUS UPDATE

the good and the bad:

the bad:  total USA coronavirus is likely to be 10 x higher

the good: then the death rate is much much lower as a percentage.

(zerohedge)

Total US Coronavirus Cases Likely 10x Higher Than Official Tally, CDC Warns

As public health officials argue about whether the US will see the coronavirus death rate return to its deadliest peak back in late April/early May, the CDC just issued a warning claiming that the number of Americans infected with the coronavirus is probably 10x higher than we know.

If accurate, that would mean the total number of cases in the US alone is closer to 20 million. These numbers are based on the results of a few rounds of surveillance testing using antibody-detection tests. While the CDC stands by the numbers, some experts have raised questions about antibody tests and their susceptibility to false positives. However, some rounds of surveillance testing in NY and NYC have found that as many as 1/5 people tested (in NYC) tested positive for antibodies.

Here’s more from Reuters:

Government experts believe more than 20 million Americans could have contracted the coronavirus, 10 times more than official counts, indicating many people without symptoms have or have had the disease, senior administration officials said.

The estimate, from the Centers for Disease Control and Prevention, is based on serology testing used to determine the presence of antibodies that show whether an individual has had the disease, the officials said.

The officials, speaking to a small group of reporters on Wednesday night, said the estimate was based on the number of known cases, between 2.3 million and 2.4 million, multiplied by the average rate of antibodies seen from the serology tests, about an average of 10 to 1.

“If you multiply the cases by that ratio, that’s where you get that 20 million figure,” said one official.

If true, the estimate would suggest the percentage of U.S. deaths from the disease is lower than thought. More than 120,000 Americans have died from the disease since the pandemic erupted earlier this year.

With 20 million infected, the mortality rate in the US of just 0.6%. That would also explain why deaths have continued to plateau, or even trend lower, even as new infections are being diagnosed.  One widely quoted epidemiologist from Harvard, Dr. Eric Feigl-Ding, said he felt the numbers were ‘reasonable’ given his experience with serology testing.

Still, as Dr. Feigl-Ding pointed out, these data shouldn’t be used to support the notion that the US has developed high enough levels of ‘herd immunity’ to move forward without a vaccine. As Sweden’s top epidemiologist pointed out just the other week, herd immunity for COVID-19 is something that takes a surprisingly long time to develop. Especially since we don’t know yet whether mutations in the virus will render these anti-bodies, or any forthcoming vaccine, obsolete.

END

It surely looks like one third of all New York City hotels could go bankrupt due to

  1. COVID 19
  2. the riots

according to Starwood ..

(zerohedge)

 

“One-Third Of NYC Hotels Could Go Bankrupt” Due To COVID-19, Riots, Starwood Owner Warns

Seemingly every major real-estate broker in the tri-state area has appeared on CNBC over the past 3 weeks to talk about how their phone has been ringing off the hook with Brooklyn-based millennial couples looking to get the hell out of New York City.

Most are looking into the first-ring suburbs around the city, stretching as far as Connecticut’s Fairfield County (and even parts of southern Litchfield), while all of North Jersey is potentially accessible for office workers who will likely never return to the daily commute. Meanwhile, brokers in NYC, who enjoyed a decade-long post-crisis, are assuring their TV audience that the city’s real estate market will always bounce back, just like it did after 9/11.

Not everyone is so optimistic, especially when it comes to New York City. Even before the pandemic, the city was struggling with a crumbling subway, surging homelessness. Taxes have been raised, while city services have deteriorated. And as the NYPD pulls hundreds of undercover officers off the street, virtually guaranteeing that the open air drug markets of the 1970s, 1980s and 1990s will make a comeback, along with myriad other quality of life problems, some of the city’s most successful real estate investors think young people are probably better off staying in the suburbs, or moving to some other smaller, better-run city.

During a wide-ranging Bloomberg interview, Barry Sternlicht, the billionaire founder of Starwood Capital Group, shared a vision for NYC that sounded like the beginning of a disaster movie: office buildings in the city will lose 40% of their value – putting unprecedented pressure on the family businesses of the president and his son-in-law, Jared Kushner – one-third of all hotels in the city will go bankrupt, and – most importantly – residential rents will plummet as the wave of gentrification that priced out many minorities from the neighborhoods in which they grew up happens in reverse.

While the looting and the violence witnessed during the protests over George Floyd’s murder didn’t help, the protests and the virus aren’t the City’s only problem. In fact, some of the forces driving this trend have nothing to do with the virus, Sternlicht said. Instead, he blamed a “blue-state mentality” that has brought the city to its present “tipping point”.

Democrats see upping taxation as the best way to close state budget gaps. When taxes on the wealthiest rise substantially, many of those people leave, creating even bigger holes in the state’s revenue stream. Sternlicht isn’t the only NYC financier to relocate to Miami in recent years.

As the tax base shrinks, services deteriorate, and taxes rise on those who are increasingly unable, or unwilling, to pay them. People leave, setting off a vicious cycle.

“If they raise taxes, more people leave and the social burden of those that are less fortunate falls on an ever-smaller revenue base,” he said. “The services of the city get worse, the city gets dirtier, the police show up less often. It’s a negative cycle.”

So long as there’s no COVID-19 vaccine and the virus continues to spread, big city tourism, sports and conventions – a major source of revenue for city businesses and tax revenue for city and state government – will remain largely on hold. While Sternlicht’s Starwood, which has some $60 billion in assets, can withstand the hit to its 1 Hotel locations near Central Park and on the Brooklyn waterfront, as well as to its Baccarat Hotel New York in midtown Manhattan, others won’t be so lucky. In the end, one-third of hotels will go bankrupt.

“I think a quarter, a third of hotels in New York City could go bankrupt,” Sternlicht said. “It’s going to be ugly. You tell me when big businesses are going to force their clients or customers or employees to go to a group meeting in Vegas or in New Orleans or in Orlando.”

Outside NYC, Sternlicht says, his company’s properties are faring much better. Hotel bookings in markets like Miami are still happening. But NYC’s top retail corridors – like Fifth Avenue and SoHo – will be hard pressed to convince shoppers to return, as more Americans have come to rely on Amazon. This could take a sledgehammer to retail rents in the city, which started showing weakness as far back as 2018.

As fewer young people are willing to move to the city, big tech companies that signed huge leases in Manhattan or Brooklyn office buildings will simply walk away.

WeWork, still the city’s biggest corporate landlord, is on track to substantially shrink its footprint, if the company doesn’t collapse outright. Tech firms like Facebook and Google are planning to allow far more workers to work remotely. Even on Wall Street, banking executives are talking about needing less overall space. With all of this factors hitting at once, NYC is bound to become the toughest commercial real estate market in the country.

All told, the result may be the city’s biggest real estate slump in at least three decades. According to Cushman & Wakefield data going back to 1990, Manhattan rents haven’t fallen by more than 20% in a single year. “Rents could drop 25% in New York – office rents. I think expenses could go up 25%. You could see office values drop 40% because of that,” Sternlicht said. “It’s probably going to be the toughest office market in the country.” Read more: Gorman sees Morgan Stanley future with ‘much less real estate’ And if jobs move elsewhere, the residential market will collapse too. landlords are “desperate” to retain young tenants and increasingly willing to cut apartment rents by as much as 25%, Sternlicht said.

In summary, Sternlicht’s “negative cycle” theory is pretty simple: first, the income base erodes. That puts strain on city services and infrastructure, that causes quality of life to deteriorate while cost of living rises, prompting more wealthier residents to leave.

Put another way: New York City’s drain is the sunbelt’s gain (that is, if the coronavirus outbreak doesn’t swallow up the entire region).

Starwood Capital has been investing in so-called red states with Republican governors, such as Florida, Texas and Tennessee, Sternlicht said, because they have growing populations, companies are relocating there and the non-union construction costs are much lower than in blue states run by Democrats. “I don’t think you can make New York miserable for the affluent and expect it to be successful for everyone,” Sternlicht said. “There are other incredible places in the country – or they will be incredible when all the New Yorkers populate them.”

Of course, Sternlicht’s businesses are feeling substantial strain from the coronavirus pandemic. While he insists Starwood’s hotels business will make it through relatively unscathed, its malls business is defaulting on its debts.

END
Michael Snyder comments on what the fear of COVID 19 is doing to our economy
(Michael Snyder)

Media-Induced Fear Of COVID-19 Is Starting To Cause A Second-Wave Of Severe Economic Panic

Authored by Michael Snyder via TheMostImportantNews.com,

Fear of COVID-19 absolutely crippled the U.S. economy during the first half of this year, and now it appears that there are some people that are pushing for that to happen again during the second half of 2020.

Earlier this evening, I came across a headline that boldly declared that there will be “180,000 U.S. deaths of COVID-19 by October”, and right now just about every mainstream news outlet is running stories about how the number of confirmed cases in the U.S. is surging.  And it is definitely true that we are seeing an alarming rise in the number of confirmed cases.  In fact, the number of new cases in the U.S. on Wednesday set a new record

The U.S. broke its record for the highest coronavirus cases recorded in a single day, with 36,358 new positives reported on Wednesday, according to a tally by NBC News.

Wednesday’s cases top the previous highest day count from April 26 — the first peak of the pandemic in the U.S. — by 73 cases, according to NBC News tracking data. The World Health Organization saw its single-day record on Sunday with more 183,000 cases worldwide.

The mainstream media is treating this as some sort of a big shock, but of course the truth is that this shouldn’t be a surprise to anyone.

[ZH: we do note that while cases are surging, deaths are falling as the median age of positive infections falls dramatically and people recover]

For months, I have been telling my readers that the lockdowns would “flatten the curve” for a while and that the number of cases would start to spike again once the lockdowns ended.  That is exactly what has happened, but anyone with even a little bit of common sense could have anticipated this.

Earlier this year, states in the northeastern portion of the nation were the epicenter for the outbreak in this country, but now it is states in the southern and western sections of the nation that have become the most prominent hotspots…

Arizona, California, Texas, Florida, Oklahoma and South Carolina reported record-high new daily coronavirus cases during this week, as case counts continue to rise in more than half of U.S. states.

Texas Governor Greg Abbott said the state is facing a massive outbreak with another 5,000 cases reported Wednesday. California Gov. Gavin Newsom reported Wednesday 7,149 tested positive, a record number for the nation’s largest state. Both states this week surpassed the entire European Union on the average number of daily cases.

Things are particularly bad in California.  Over the past two days, we have seen a 69 percent increase in the number of newly confirmed cases…

The California Department of Public Health reported its second straight record jump in coronavirus cases on Wednesday as the state joins a handful of others with growing case numbers.

California reported an additional 7,149 Covid-19 cases since Tuesday, a 69% increase in two days, bringing the state’s total to 190,222 cases, according to the state’s health department. The previous highest day jump was reported on Tuesday when the state recorded 5,019 additional new cases.

Needless to say, the snowflake politicians in California are going to be even less eager to return to business as usual than they were before.  And since the state of California accounts for more economic activity than any other U.S. state does, this is going to be a major drag on the U.S. economy as a whole.

If this pandemic keeps dragging on for a couple more years, what are states like California going to do?  Many had anticipated that life would be getting back to normal by now, but instead we are starting to see things go in reverse.  In fact, we just learned that the reopening of Disneyland has been postponed indefinitely

Disney is delaying the phased reopening of Disneyland and Disney California Adventure, the company’s flagship theme parks in California, the company said on Wednesday.

The resort, located in Anaheim, California, was set to welcome back guests on July 17 after being closed for months because of the coronavirus pandemic.

Other very large corporations are making similar moves.  For example, Apple just shut down a whole bunch of their stores because of this new surge in coronavirus cases

On Friday, stocks slumped as second wave fears were reignited following a report that Apple would temporarily shutter 11 U.S. retail stores across Florida, Arizona, North Carolina and South Carolina.”Due to current COVID-19 conditions in some of the communities we serve, we are temporarily closing stores in these areas,” an Apple spokesman said in a statement.“We take this step with an abundance of caution as we closely monitor the situation and we look forward to having our teams and customers back as soon as possible.”

Fast forward to today, when with stocks already sliding on renewed virus of a second wave of virus infections, moments ago Apple reported that it would re-close another 7 stores in Houston and Texas due to the coronavirus spike.

According to the optimists, this wasn’t supposed to happen.  The worst part of this pandemic was supposed to be over, and it was supposed to be all downhill from here.

But instead it has become exceedingly clear that this virus will be with us for a long time to come.  New York, New Jersey and Connecticut have all announced that those traveling in from nine different states where COVID-19 is out of control will be forced into mandatory quarantine for 14 days, and police in New York will actually be actively searching for vehicles that have license plates from those particular states…

In New York, cops will stop cars with license plates from the affected states to ask the person why they are not quarantining and how long they have been in the state for.

The quarantine applies to any state with infection rate of 10 infections per 100,000 people on a seven day rolling average or 10 percent of the total population testing positive.

Speaking of New York, this pandemic has already had a much larger financial impact than most observers had anticipated.

In particular, New York City is facing a nine billion dollar reduction in tax revenue, and Mayor Bill de Blasio says that the city may be forced to let 22,000 workers go

New York Mayor Bill de Blasio said the city is considering 22,000 layoffs and furloughs among its 326,000 employees to cut $1 billion of expenses after lockdown-related revenue losses.

De Blasio has projected a $9 billion loss in tax revenue over the next two years because of the pandemic.

Sadly, a whole lot more government workers will be fired across the country before this crisis is over.

Of course things are even worse for the private sector, and we continue to get more examples of this every single day.  On Tuesday, we learned that GNC has decided to declare bankruptcy

GNC Holdings Inc., which filed for Chapter 11 bankruptcy protection late Tuesday, has released an initial list of stores that will close.

The list posted at the Pittsburgh-based chain’s site, GNCevolution.com, includes 248 closing stores, including 219 U.S. locations and 29 in Canada.

And we have also just learned that the end may be near for Chuck E. Cheese

The coronavirus pandemic could spell the end of Chuck E. Cheese. The popular kid’s restaurant had to close its 610 locations nationwide during the outbreak. Now, $1 billion in debt has Chuck E. Cheese’s parent company, CEC Entertainment, approaching bankruptcy.

The Wall Street Journal reports that CEC is asking lenders for a $200 million to keep its business going.

I haven’t been to a Chuck E. Cheese in many years, but when I was a kid I absolutely loved to eat there.

As a youngster, it seemed like such a magical place, and now it deeply saddens me to hear that the company may not survive.

In the end, a lot more iconic companies will go under as America plunges even deeper into this new economic depression.

Fear of a virus has turned our economy completely upside down, and thanks to the mainstream media much of the population is going to remain deathly afraid of this virus for the foreseeable future.

END

No hope whatsoever for a V shaped recovery

(Michael Snyder)

Any Hope For A “V-Shaped Recovery” Has Been Completely Crushed

Authored by Michael Snyder via TheMostImportantNews.com,

We were supposed to be well into a “recovery” by now, but instead more bad economic news just keeps pouring in.  In fact, the numbers that I am going to share with you in this article are absolutely eye-popping.  Initially, many of the economic optimists had been trying to convince us that we would experience a “short, sharp recession” followed by a “V-shaped recovery”.  Well, at this point it has become quite clear that we can forget all about that scenario.  The mainstream media is increasingly starting to use the word “depression” to describe what is happening to the U.S. economy, and the raw numbers definitely support the use of that label.

For example, the Atlanta Fed’s GDPNow model is now projecting that U.S. GDP will decline by 46.6 percent on an annualized basis during the second quarter of 2020…

The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2020 is -46.6 percent on June 25, down from -45.5 percent on June 17. After this week’s data releases from the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, and the National Association of Realtors, a decrease in the nowcast of second-quarter real residential investment growth from -25.9 percent to -35.9 percent was offset by an increase in the nowcast of real business fixed investment growth from -31.1 percent to -28.2 percent, while the nowcast of the contribution of the change in net exports to second-quarter real GDP growth decreased from 0.30 percentage points to -1.27 percentage points.

If that figure is anywhere close to accurate, this quarter will be remembered as the most disastrous economic quarter that we have ever seen in all of U.S. history up to the point.

Meanwhile, the number of Americans filing new claims for unemployment benefits each week continues to surprise most analysts

Jobless claims totaled 1.48 million last week as unemployment related to the coronavirus pandemic remained stubbornly high, though those receiving benefits fell below 20 million for the first time in two months, the government reported Thursday.

Economists surveyed by Dow Jones had been expecting 1.35 million claims.

As I keep reminding my readers, the all-time record for a single week prior to this year was just 695,000, and that record had stood since 1982.

But now we have more than doubled that old record for 14 weeks in a row.

Just think about that.  After laying off tens of millions of workers, you would think that companies would be running out of people to fire, but we continue to see vast hordes of Americans file new claims for unemployment benefits each week.

Overall, more than 47 million Americans have now filed a claim for unemployment benefits since this pandemic began.

If this isn’t an “economic depression”, then how bad would things have to get for us to be in one?

Of course Congress certainly didn’t help matters by giving out such generous unemployment bonuses.  Millions of unemployed workers are now bringing home more money than they did while they were actually working, and this is discouraging many from returning to work.

But that will change very abruptly in just a few weeks

Many out-of-work Americans counting on receiving an extra $600 a week through the end of July may be surprised to discover that benefit will disappear nearly a week earlier than they expected.

The additional $600 in weekly jobless benefits provided by the federal government is officially set to end July 31. But states will pay it only through the week ending July 25 or July 26, a significant blow to unemployed workers counting on that money to bolster state benefits that average just $370 a week.

Starting around the beginning of August, all of a sudden a whole lot of people will be very interested in finding new jobs, but there won’t be many jobs available.

Thousands upon thousands of businesses have already shut down permanently, and more are closing their doors with each passing day.

This new economic downturn has been particularly brutal for small businesses.  Just consider the following numbers from the Wall Street Journal

Roughly 140,000 Yelp-listed businesses that had closed since March 1 remained closed on June 15. A large minority of that set, 41%, has shut for good, according to Yelp.

The figures have improved by about 20% compared with April data, when 175,000 businesses were closed. But the large share of persistent closures, which were spread nationwide, showed the pandemic’s stubborn hindrance to life as normal even as all 50 states have taken steps to reopen.

This isn’t what a “recovery” looks like.

And it isn’t just the private sector that will be shedding jobs like crazy in the months ahead.  As tax revenues collapse, state and local governments all over the nation will be forced to let workers go.  In fact, it is being projected that more than 5 million of them will be laid off…

Right now, sales taxes, real-estate-transfer taxes, income taxes, fines and fees—they are all collapsing, leaving local governments with a budget gap expected to total $1 trillion next year. Without help from Washington, this will necessarily mean massive service cuts and job losses: namely, an estimated 5.3 million job losses.

Those are not jobs that have already been lost.

Those are future job losses that haven’t shown up in the numbers yet.

And those job losses will be particularly painful, because government jobs tend to pay higher than average wages and they tend to come with better than average benefits.

As the job loss tsunami continues to roll on, the number of Americans forced to move back home with their parents or grandparents will continue to soar.  Of course what we have been witnessing already is deeply alarming

A record 32 million American adults were living with their parents or grandparents in April, according to the latest American Community Survey from the U.S. Census Bureau, an increase of 9.7 percent over a year ago. The data, analyzed by Zillow researchers, showed that 2.7 million adults moved back home in March and April, and that about 2.2 million of them were aged 18 to 25 — also known as Generation Z.

One domino after another is tumbling, and obviously economic conditions are not going to return to the way they were previously.

But this wasn’t supposed to happen.

Once the coronavirus lockdowns ended, we were told that the U.S. economy was supposed to snap back very rapidly.

Unfortunately, the truth is that our economic pain is just beginning.  We have entered an extended economic downturn, and our society is not equipped to handle such a downturn at all.

As I have warned so many times, what we are facing is going to make the last recession look like a Sunday picnic, but most Americans continue to hold out hope that some sort of a “recovery” is still on the horizon.

The Fed’s balance sheet shrinks again due to contraction in those currency swaps.  However the Fed is still buying government bonds etc.

(zerohedge)

Fed’s Balance Sheet Shrinks For Second Consecutive Week

After three months of record gains, which saw an increase of $3 trillion to $7.2 trillion, the Fed’s balance sheet has posted its second consecutive weekly decline since the start of the corona crisis according to the latest H.4.1 statement.

While not nearly as large as last week’s decline which was the largest since May 2009, the $12 billion weekly decline to $7.082 trillion was certainly notable in a time when virtually every asset class now is driven by the rise and fall of the Fed’s balance sheet.

The drop, however, was not due to a reversal or even slowdown in QE which continues almost every single day, with the Fed adding over $52 billion in Treasurys and MBS in the 7 days ended June 24, but due to a second consecutive decline in liquidity swap, which shrank by $77.5 billion to $275 billion, after a $92 billion decline in the week prior. The amount of outstanding repo agreements also declined for a second consecutive week by a modest $8.9 billion.

The total amount outstanding in the swap lines, designed to ease a surge in demand for U.S. currency in the participating banks’ jurisdictions during the early weeks of the crisis, was the lowest since early April.

Coupled with other indications of slackening demand for the Fed’s bevy of emergency liquidity facilities, the reduction in currency swap line usage is for many analysts a sign that global financial markets are returning to near-normal after being upended by the coronavirus outbreak in February and March. “We expect a more rapid decline over the coming months as the majority of the swaps will roll off,” Citigroup economists wrote in a note last Friday.

The flipside is that it also means that the system is once again seeing a shrinkage in the circulation of the world’s reserve currency, an explicit tightening in financial condition, and the adverse global impact of any macroshock will be substantially greater if and when one hits in the coming weeks.

Meanwhile, with the S&P500 closely tracking the Fed’s balance sheet in the past three months, which has served as the primary factor behind the rebound in the market, the latest weekly drop coincides with the period of heightened volatility in the past three  weeks.

 

The shrinkage comes at a time when the Fed’s monthly liquidity injection has been tapered to approximately $120 billion, which suggests that while the balance sheet is likely to resume growing in the next week, it will be at a more gradual pace.

It also means that for the stock market to surge from this point on – since the market is now fully disconnected from fundamentals and is simply a derivative of endogenous liquidity and fund flow – Powell will need to find another justification to expand the Fed’s QE aggressively. Something like a second wave of the coronavirus pandemic…

Finally, those keeping track of how much corporate bonds the Fed has bought, the latest total for the Fed’s Corporate Credit Facilities LLC which includes purchases of both ETFs and corporate bonds, the Fed disclosed that as of June 25, there was $8.3 billion in book value of holdings (the Fed does not break out how many actual bonds it has bought vs ETFs), and increase of $1.7 billion from the $6.6 billion a week prior. Which means that the Fed is now buying around $350MM in corporate bonds and/or ETFs every single day.

end

Hi Crush, one of the shale boys is set to file for bankruptcy protection

(zerohedge)

Hi-Crush To File For Bankruptcy: Shares Crash After Robinhooders Went All-In

As we’ve been warning – a bankruptcy tsunami has only just begun – there’s a striking correlation between the unemployment rate and loan delinquencies.

So it comes at no surprise, yet another company, Hi-Crush (HCR), a fracker with shale plays in Texas, the Midwest, and interior Northeast, is working on the terms for a prearranged bankruptcy filing with lenders, reported Reuters.

HCR is expected to file for bankruptcy imminently regardless of the terms and conditions of a prearranged filing agreed upon with its debt holders. With already signed forbearance agreements, lenders will not exercise default-related rights on the company until July 5.

As oil prices corrected and went negative during the pandemic (read: US Shale Faces Bankruptcy Wave) – management had no other choice but to slash the workforce by 60% and idle three production units as demand for oil collapsed. HCR took a $145.7 million asset impairment charge on its production and terminal facilities in Q1, which resulted in a $1.46 per share loss.

Shares of HCR plunged 29% in pre-market Friday after the news of imminent bankruptcy.

Ahead of officially announcing insolvency – you’re never going to guess who was loading up on HCR shares. Well, Robinhood daytraders, of course…

Add HCR to the long list of bankrupted companies Robinhood daytraders have been panic buying. Just yesterday, we noted these inexperienced pajama traders loaded up on GNC Holdings as it filed for bankruptcy protection.

END
Humour of the day:
a $266,325 Lamborghini was totaled 20 minutes after leaving the showroom.  It had mechanical failure and had stopped on the highway. Another car slammed into it.
I sure hope that both had insurance:
(zerohedge)

$266,325 Lamborghini Totaled 20 Minutes After It Leaves The Showroom

We hope they had insurance.

Because little did the driver of a Lamborghini Huracan Spyder know that just 20 minutes after they would leave the showroom with their supercar, it would be scattered across a highway in West Yorkshire, U.K., totaled and in pieces.

That was the case after the “brand new” car wound up stopped on a highway in West Yorkshire after experiencing mechanical failure. While waiting for assistance and broken down, the car was slammed into from behind by an “innocent motorist” on the same highway, according to CNBC.

The accident took place on Wednesday and left the Italian-made car in a wrecked heap of metal. Even the West Yorkshire Police Roads Policing Unit had to cringe a bit on Twitter before sharing photographs of the wreck.

“It’s only a car,” they wrote in jest on Twitter, saying the Lamborghini was just “20 minutes old”. They used the hashtag “#CouldHaveCried” in their Tweet.

According to the BBC, the driver of the van that hit the car was suffering from head injuries, though they were not described as serious. The driver of the Lamborghini has not been identified.

As a result of the accident, portions of the West Yorkshire Highway had to be closed down. 

iv) Swamp commentaries)

Burisma Landed Lucrative USAID Contract Months After Hunter Biden Joined Board: Solomon

Authored by Daniel Payne and John Solomon via Just the News(emphasis ours)

Just a few months after Hunter Biden joined the board of Burisma Holdings, the Ukrainian gas company landed a deal with an Obama administration renewable energy program that had been championed by one of his father’s key vice presidential advisers, newly released State Department memos show.

The Memorandum of Understanding between Burisma and USAID’s Municipal Energy Reform Project in Ukraine (MERP) was signed in October 2014, according to a copy of the agreement obtained by Just the News under the Freedom of Information Act.

At that time, Burisma was under very public investigationsby both the British government and the Ukrainian prosecutor general’s office and considered by the State Department to suffer from corruption issues.

And the Burisma official who signed the MOU, Andrii Kicha, was publicly identified in British court documents in 2014 as someone whose conduct was questioned during the probe. More recently, Kicha was detained in Ukraine in what law enforcement authorities there said was a failed attempt to deliver a $6 million bribeto prosecutors designed to end continuing investigations of the controversial gas company.

Kicha has long denied wrongdoing, and Burisma has said it did not have any involvement in the bribery plot. The company has fought allegations of corruption for years and settled some of the Ukrainian cases against it at the end of the Obama administration by paying a fine.

Burisma officials did not respond to a request for comment about the 2014 MERP deal. State Department and USAID press officials also declined comment.

A senior State Department official, speaking only on condition of anonymity, said officials do not have much current documentation to show how Burisma landed the 2014 deal with USAID, the department’s foreign aid arm, but they believe it wasn’t fully vetted by the department. Instead, the official said, it appeared the MOU was approved by USAID’s contractor managing the program.

The official added that State recently received inquiries from U.S. Senate investigators examining the Bidens’ dealings in Ukraine.

“This is clearly a matter of interest in their investigation, but right now it looks like Burisma signed the deal with our contractor, and our embassy didn’t even know much about it until 2016,” the official said, declining to provide more information.

Remarkably, the multimillion dollar MERP program’s involvement with Burisma escaped notice during last year’s impeachment proceedings, which focused heavily on the Bidens’ dealings in Ukraine and efforts by Rudy Giuliani, one of President Trump’s lawyers, to get the issues surrounding Burisma investigated by Ukrainian authorities. Specifically, Giuliani wanted Ukrainian prosecutors to investigate Joe Biden’s successful effort to get the Ukrainian prosecutor leading the Burisma investigation fired in 2016.

During those impeachment proceedings, Obama-era State Department officials testified they held strong corruption concerns about the Ukrainian gas company that had hired Hunter Biden in May 2014 and paid his firm more than $3 million in consulting fees. They added they believed Burisma’s arrangement with the vice president’s son created the “appearance of a conflict of interest” for Joe Biden as he oversaw U.S.-Ukraine policy for the Obama administration.

The new documents, which include a copy of the 2014 signed MOU and some 2016 email chatter among State officials about the MERP relationship with Burisma, were obtained under a FOIA lawsuit brought by Just the News and its public interest law firm, the Southeastern Legal Foundation.

DoSMERPBurismaMOU.pdf

The memos do not mention either Biden but do show that the U.S. embassy in Kiev did not want Burisma to participate in a MERP event honoring journalists in 2016, something Deputy Assistant Secretary George Kent mentioned briefly during his impeachment testimony.

The decision to cancel came after a Ukrainian raised concerns that Burisma, with its record of alleged corruption, was doing business with USAID’s program.

“Burisma has been notified that MERP will be conducting the award ceremony without their participation,” a U.S. embassy official wrote in an email that reached Kent and other top officials in September 2016.

KentBurismaCanceled.pdf

While the documents don’t make mention of the Bidens, the MERP program itself and Burisma have a direct connection to Joe Biden’s inner circle.

Joe Biden’s energy advisor, Amos Hochstein, championed the MERP program in a Senate hearing in July 2014about three months before Burisma landed the MOU with USAID. Hochstein testified that MERP was part of a multi-pronged U.S. effort by the Obama administration to make Ukraine more energy-independent from Russia by producing its own gas while also reducing greenhouse gas emissions.

“It is critical that Ukraine reduce the country’s energy intensity,” he told senators during the testimony. “Thankfully, the United States has a long history of support for energy efficiency in Ukraine. Most recently, USAID’s Municipal Energy Reform Project (MER Project) is designed to enhance Ukraine’s energy security as well as to reduce and mitigate GHG emissions resulting from the poor use of energy resources in Ukrainian municipalities.

A year later, Hochstein met with an American firm called Blue Star Strategies, which was hired by Burisma to try to change the gas firm’s image of corruption, according to a report in the Washington Examiner.

And the New Yorker magazine reported Hochstein had a direct conversation with Joe Biden about Hunter Biden’s role with Burisma, one of the few publicly known conversations the vice president had about his son’s employment with the controversial company.

The MOU stipulated that Burisma would work with the program to “enhance Ukraine’s energy security” through the “improvement of energy policies,” the “development of energy efficiency” and the “increase of investments in [the] energy sector.”

The $17 million program ended in March 2018. The contract history indicates that the program was administered by what was then the Research Triangle Institute, now RTI International. The specific agreement between Burisma and MERP dates to October 2014 and was set to expire a year later.

The agreement was “implemented by” International Resources Group, a contractor that facilitates government programs across the world, the MOU states. That group was subsequently acquired by RTI International in 2017. Neither RTI nor the contractor who signed the MOU returned calls seeking comment about the Burisma deal. The documents don’t indicate whether Burisma received any money under the program but federal procurement records do not list the Ukrainian gas firm as a recipient of U.S. aid.

The deal is notable for having occurred when Burisma was under two separate corruption investigations — one from the British government and one from Ukrainian authorities — over alleged illegal financial schemes carried out by the natural gas company.

Also notable is one of the memorandum’s signatories, Andrii Kicha, who signed on behalf of Burisma. In 2014-15, Kicha was named by British authorities in court filings targeting Burisma founder Mykola Zlochevsky against the Ukrainian government.

“Mr Andrii Kicha is a Ukrainian commercial lawyer, the chief legal officer of Burisma and other companies owned by the defendant. He was the sole authorised signatory on the BNP accounts that are the subject to the restraint order,” one British court filing stated.  You can read that document here.

Zlochevsky-SFO-v-MZ-Final-Judgment-Revised (2).pdf

 

The British probe was ordered shut in early 2015, but the reasons are in dispute. British officials claim Ukrainian authorities failed to get them essential evidence they were seeking; Burisma and Ukrainian authorities dispute that.

Multiple criminal cases were opened between 2014 and 2016 in Ukraine against Burisma and Zlochevsky, some of which were settled and closed in 2016 with a fine, and some which persist today.

Kicha was freshly implicated in controversy connected to Burisma this month, when Ukrainian authorities detained him and several others in connection with a $6 million bribe meant for a prosecutor investigating Burisma.

The Ukrainian government is currently pursuing an embezzlement case against the company and Zlochevsky. A Kyiv court last Sunday revealed the seizure of the bribery funds.

Controversy has swirled around Burisma for several years since then-Vice President Joe Biden’s son Hunter took a seat on the gas company’s board of directors in May 2014. Joe Biden at the time played a significant role in foreign policy decisions regarding Ukraine, raising the specter of impropriety as his son joined a scandal-ridden firm at the same time the vice president had official dealings with the country.

Notably, Burisma would secure the USAID agreement just five months later.

END

Let us close out the week with this offering courtesy of Greg Hunter

 

Extreme MSM Propaganda, BLM Threatens USA, Farm Report

By Greg HunterOn June 26, 2020

The propaganda psyop has officially kicked into high gear with the latest New York Times poll saying Former Vice President Joe Biden is 14 points ahead of President Trump. This is a candidate hiding in his basement who cannot string two sentences together, and he’s beating President Trump? I am not falling for the phony polls and propaganda, and you shouldn’t either. Do not trust anything the MSM says.

Black Lives Matter (BLM) leader Hawk Newsome said on FOX News that “If the country does not give us what we want, we will burn it down and start a new system.” There you have it. One succinct sentence and that is the takeover of America by Marxist, communist, socialists. President Trump responded on Twitter calling what Newsome said as “treason, sedition and insurrection” against America.

Talk of food shortages are way overblown when looking how crops are shaping up all across the Midwest. The growing season is off to a very good start, and it looks like the harvest, barring drought, is going to be above average at least.

Join Greg Hunter of USAWatchdog.com as he talks about these stories and more in the Weekly News Wrap-Up.

-END-

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

CBS: Coronavirus hospitalizations in New York drop below 1,000 for first time since March 18, Cuomo says

New COVID-19 infections rising, but new deaths flat as younger patients recover  https://t.co/kW6S8sajOq

The CDC finally concurs to what we have opined for months: CDC says coronavirus may have infected 10 times more Americans than known – Nearly 25 million Americans may have contracted the coronavirus, a figure ten times higher than the number of confirmed cases… Most people who contract the SARS-CoV-2 virus show few if any symptoms, and only a small percentage require hospitalization.

http://hill.cm/dkqifJO

We saw no MSM reports on the stock rally after the early US dip.

US Economic Data on Friday on balance was better than expected

  • Initial Jobless Claims 1.48m, 1.32m expected, previous revised to 1.54m from 1.508m
  • Continuing Claims 19.522m, 20.0m expected, previous revised to 20.289m from 20.544m
  • Durable Goods +15.8% m/m, 10.5% expected, previous revised to -18.2% from 17.7%
  • Ex-Trans +4.0%, 2.1% expected, previous revised to -8.2% from -7.7%
  • Nondefense Ex-Air 2.3%, 1.0% expected, previous revised to -6.5% from -6.1%
  • Shipments +1.8%, -1.0% expected, previous revised to -6.2% from -5.7%
  • Q1 GDP was the expected -5.0%, same as previous

BEA Revises First Quarter 2020 GDP Contraction Slightly Upward to -4.99%   [Components at link]

http://www.consumerindexes.com/2020-06-25_commentary.html

Big banks fall after-hours following stress test results & Fed restrictions    http://cnbc.com/id/106592473

    The Federal Reserve put new restrictions on the U.S. banking industry Thursday after its annual stress test found that several banks could get uncomfortably close to minimum capital levels in scenarios tied to the coronavirus pandemic.

    The Fed said in a release that big banks will be required to suspend share buybacks and cap dividend payments at their current level for the third quarter of this year.  The regulator also said that it would only allow dividends to be paid based on a formula tied to a bank’s recent earnings.

    Furthermore, the industry will be subject to ongoing scrutiny: For the first time in the decade-long history of the stress test, banks will have to resubmit their payout plans again later this year.

WaPo: Treasury sent more than 1 million coronavirus stimulus payments totaling $1.4 billion to dead people, congressional watchdog finds

Nancy Pelosi Just Protected the WTO from Trump, Other Democrats

House leader Nancy Pelosi just made sure that a vote to leave the World Trade Organization would not be taken up by this congress, going against other Democrats that think it’s time the U.S. considers leaving the multilateral trade body…The Senate will vote on membership in July. No date has been set…

https://www.forbes.com/sites/kenrapoza/2020/06/25/nancy-pelosi-just-protected-the-wto-from-trump-other-democrats/#195f30eb5684

The Fed balance sheet shrank $12.338B to $7.082T on a $77.507B reduction in currency swaps.

https://www.federalreserve.gov/releases/h41/current/

Black Lives Matter leader states if US ‘doesn’t give us what we want, then we will burn down this system’    https://www.foxnews.com/media/black-lives-matter-leader-burn-down-system

@realDonaldTrump: Black Lives Matter leader states, “If U.S. doesn’t give us what we want, then we will burn down this system and replace it”. This is Treason, Sedition, Insurrection!

Sen. Mike Lee: What We’re Witnessing Really Is an All-Out War on the Founding of Our Country by the Elite Liberal Media      https://radio.foxnews.com/2020/06/25/sen-mike-lee-what-were-witnessing-really-is-an-all-out-war-on-the-founding-of-our-country-by-the-elite-liberal-media/

@alexnazaryan: Rep. Louie Gohmert, R-Tex., says that “Marxist-backed” protesters are trying to foment a Bolshevik-style revolution in the United States.    https://twitter.com/alexnazaryan/status/1276210219601678336

AG Barr Reveals 500 Investigations Are Underway Into Riots and Antifa

BARR: “We are seeing strong evidence of coordination in many of these violent episodes…

https://trendingpolitics.com/not-playing-around-ag-barr-reveals-5-investigations-are-underway-into-riots-and-antifa/

NYC Criminal Justice System ‘Imploding,’ NYPD Boss Says as Homicides Hit 5-Year High

https://www.nbcnewyork.com/news/local/nycs-criminal-justice-system-is-imploding-nypd-boss-says-as-homicides-hit-5-year-high/2483376/

Bronx precinct commander quits, citing ‘no guidance’ on recent reforms

https://nypost.com/2020/06/25/bronx-nypd-precinct-commander-is-quitting-in-protest/

Minneapolis neighborhood which vowed not to call cops after George Floyd’s death is struggling with a 300-person homeless camp in their local park which… feeling unsafe because of drugs

https://www.dailymail.co.uk/news/article-8457753/Minneapolis-neighbors-vow-not-call-cops-drug-users-homeless-camp-George-Floyd-death.html

Hundreds ‘ambush’ Tampa police responding to report of shots fired, 2 officers injured, chief says

https://www.foxnews.com/us/tampa-officers-injured-hundreds-ambush-police-video

Dozens of shots fired at unmarked police car in [Grand Rapids] Michigan https://trib.al/h6WAfFY

Guns are flying off the shelf.’ Permit applications up more than 500% amid coronavirus pandemic and George Floyd fallout…The 42,089 applications over those 17 days come close to the 48,194 applications submitted in the months of December, January and February combined. Applications reached nearly 5,000 on a single day in June…“40% of respondents to (store) surveys were new, first-time buyers. And of those, 40% are female — 40% of the 40%,” Eldridge said…

    “One stat that jumped out at me was defensive ammunition,” he said… We saw May 2020 over May 2019 firearms sales were twice as high and defensive ammunition was 10 times as high…“I have seen the emergence of a new class of students seeking training: anti-Second Amendment liberals,” he said…

https://www.chicagotribune.com/news/breaking/ct-chicago-illinois-foid-gun-ammo-sales-uncertainty-20200625-pkve27352jagnp4y5dbaubkyoy-story.html

@IvanPentchoukov: Kevin Clinesmith is no longer with the FBI, according to Director Christopher Wray.   Clinesmith is the lawyer who wrote “viva la resistance” after Trump’s election. He also altered the email about Carter Page’s status as a CIA asset, which resulted in lie to the FISC.  On the day after Trump’s election win, Clinesmith wrote: “I’m just devastated.  I am so stressed about what I could have done differently.”  “Plus, my god damned name is all over the legal documents investigating his staff.”

More Jersey Democrats Caught Committing Voter Fraud with Mail-In-Ballots

The U.S. Postal Inspection Service alerted the Attorney General’s Office that hundreds of mail-in ballots were found in a mailbox in Paterson…  http://www.shorenewsnetwork.com/2020/06/25/fraud-charges/

AON’s @ChanelRion: 8 minutes into his live YouTube stream, 546 viewers are interested in @JoeBiden

‘s speech…15 minutes in… 990 viewers worldwide.

@MattWolking: From the Joe Biden Pool Report: “He largely read from the teleprompter … He did not gaggle or take any questions.”

Biden said: “Now we have over 120 million dead from Covid.”

https://twitter.com/TrumpWarRoom/status/1276223959395155968

    @realDonaldTrump: If I ever said something so mortifyingly stupid, the Fake News Media would come down on me with a vengeance. This is beyond a normal mistake. Why isn’t the media reporting it?

Biden’s Camp Bans Local Media from PA Event… Only Fake News ‘National Outlets’ Allowed

https://www.thegatewaypundit.com/2020/06/bidens-camp-bans-local-media-pa-event-biden-speaking-fake-news-national-outlets-allowed/

Biden cancer nonprofit paid its top execs millions. It spent little to eradicate cancer

https://www.foxnews.com/politics/biden-cancer-nonprofit-paid-its-top-execs-millions-it-spent-little-to-eradicate-cancer

Melinda Gates: ‘Black People, Indigenous People’ Should Get Coronavirus Vaccine First

https://www.breitbart.com/politics/2020/06/25/melinda-gates-black-people-indigenous-people-should-get-coronavirus-vaccine-first/

Harvard Business Review: Why Diversity Programs Fail – As social scientists have found, people often rebel against rules to assert their autonomy. Try to coerce me to do X, Y, or Z, and I’ll do the opposite just to prove that I’m my own person… in nearly a thousand studies… The positive effects of diversity training rarely last beyond a day or two, and a number of studies suggest that it can activate bias or spark a backlashhttps://hbr.org/2016/07/why-diversity-programs-fail

@ThomasSowell: Our children and grandchildren may yet curse the day we began hyping race and ethnicity. There are countries where that has led to slaughters in the streets butyou cannot name a country where it has led to greater harmony.

END

 

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Well that is all for today

On a personal note, (as I know she reads my commentary) I just want to wish my bride of 49 years, a very happy anniversary  (June 27)

I will see you MONDAY night.

2 comments

  1. J Pronk · · Reply

    Have a nice day both of you!

    Like

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