JULY 2//BANKERS AMBUSHED IN GOLD AS LONGS WAITING IN THE BUSHES TO OBTAIN CHEAP GOLD: GOLD UP$7.00 TO $1777.90//SILVER UP 4 CENTS TO $18.01//GOLD TONNAGE STANDING AT THE COMEX; 17.38 TONNES//SILVER OZ STANDING: 82.9 MILLION OZ//CORONAVIRUS UPDATE//USA COUNTERS THE CHINA NATIONAL SECURITY LAW WITH HUGE SANCTIONS ON POBC MEMBERS AND BANKS// MICHAEL EVERY.. A MUST READ…//ANOTHER ERROR FILED JOBS REPORT: TAKE IT WITH A GRAIN OF SALT//GHISLAINE MAXWELL ARRESTED//MORE SWAMP STORIES FOR YOU TONIGHT/////

GOLD:$1777.90  UP $7.00   The quote is London spot price

 

 

 

 

Silver:$18.01// UP 4 CENTS  London spot price

 

Closing access prices:  London spot

i)Gold : $1775.50  LONDON SPOT  4:30 pm

 

ii)SILVER:  $17.95//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

AUG GOLD:  $1789.50  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE AUG /: $11.60

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $18.23…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  30 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!!

TOMORROW WE WILL HAVE THE JOBS REPORT AND AS USUAL, THEY WHACK THE DAY BEFORE/

COMEX DATA

 

 

 

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

today RECEIVING: 229/641

ISSUED 486

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,773.200000000 USD
INTENT DATE: 07/01/2020 DELIVERY DATE: 07/06/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 16
072 H GOLDMAN 63
099 H DB AG 47
135 H RAND 2
152 C DORMAN TRADING 8
159 C ED&F MAN CAP 1
355 C CREDIT SUISSE 3
357 C WEDBUSH 1
624 C BOFA SECURITIES 4 2
657 C MORGAN STANLEY 23
657 H MORGAN STANLEY 131
661 C JP MORGAN 486 229
686 C INTL FCSTONE 2
690 C ABN AMRO 28
732 C RBC CAP MARKETS 3
737 C ADVANTAGE 25 35
800 C MAREX SPEC 75 76
878 C PHILLIP CAPITAL 4 6
905 C ADM 12
____________________________________________________________________________________________

TOTAL: 641 641
MONTH TO DATE: 4,441

 

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 641 NOTICE(S) FOR 64100 OZ (1.9937 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  4441 NOTICES FOR 444100 OZ  (13.813 TONNES)

 

 

SILVER

 

FOR JULY

 

 

744 NOTICE(S) FILED TODAY FOR 3,720,000  OZ/

total number of notices filed so far this month: 13,012 for 65,060,000 MILLION oz

 

BITCOIN MORNING QUOTE  $9192  DOWN 40  

 

BITCOIN AFTERNOON QUOTE.: $9093 DOWN $192

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $7 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD:  A DEPOSIT OF 3.21 TONNES OF GOLD INTO THE GLD//

 

GLD: 1,182.11 TONNES OF GOLD//

 

WITH SILVER UP 4 CENTS TODAY: AND WITH NO SILVER AROUND

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV: A PAPER DEPOSIT OF 4.01 MILLION OZ INTO THE SLV//

RESTING SLV INVENTORY TONIGHT:

 

SLV: 502.008  MILLION OZ./

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

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IN SILVER THE COMEX OI FELL BY A CONSIDERABLE SIZED 20066 CONTRACTS FROM 169,418 UP  TO 167,352, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED LOSS IN  OI OCCURRED DESPITE OUR STRONG 23 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS PRIMARILY DUE TO THE CONCLUSION OF OUR SPREADER LIQUIDATION (AS WE END JUNE)_,  ALONG WITH  SOME  BANKER SHORT COVERING PLUS A SMALL EXCHANGE FOR PHYSICAL ISSUANCE, SOME LONG LIQUIDATION, ACCOMPANYING  A SMALL DECREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A NET LOSS IN OUR TWO EXCHANGES OF 1732 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 0  AND SEP 334 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  334 CONTRACTS. WITH THE TRANSFER OF 489 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 334 EFP CONTRACTS TRANSLATES INTO 1.67 MILLION OZ  ACCOMPANYING:

1.THE 23 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

82.860 MILLION OZ INITIALLY IN JULY.

 

WEDNESDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 23 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE NO DOUBT SUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS FROM THEIR POSITIONS. THE STRONG LOSS AT THE COMEX WAS ACCOMPANIED BY : i)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL DECLINE IN STANDING OF SILVER OZ STANDING FOR JULY,  STRONG BANKER SHORT COVERING  AND 4) SOME LONG LIQUIDATION AS  WE DID HAVE A STRONG NET LOSS OF 1732 CONTRACTS OR 8.660 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS

JULY

 

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

823 CONTRACTS (FOR 2 TRADING DAY(S) TOTAL 823 CONTRACTS) OR 4.115 MILLION OZ: (AVERAGE PER DAY: 411 CONTRACTS OR 2.057 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 4.115 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 0.58% 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:          1,141.52 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                              71.15 MILLION OZ.

JULY EXP                               4.115 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 2066, WITH OUR 23 LOSS LOSS IN SILVER PRICING AT THE COMEX ///WEDNESDAYTHE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 334 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE LOST A  STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  1732 CONTRACTS (WITH OUR 23 CENT LOSS IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 334 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED DECREASE OF 2066 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 23 CENT LOSS IN PRICE OF SILVER/AND A CLOSING PRICE OF $17.97 // WEDNESDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.8370 BILLION OZ TO BE EXACT or 119% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JULY  DELIVERY MONTH/ THEY FILED AT THE COMEX: 744 NOTICE(S) FOR 3,720,000 MILLION 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// JULY 82.860 million oz
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE SIZED 6080 CONTRACTS TO 554,173 AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE CONSIDERABLE SIZED LOSS OF COMEX OI OCCURRED WITH OUR STRONG LOSS IN PRICE  OF $12.90 /// COMEX GOLD TRADING// WEDNESDAY// WE  HAD SOME BANKER SHORT COVERING, ANOTHER HUMONGOUS SIZED  GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH SOME LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR LOSS IN PRICE OF $12.90 .

 

WE HAD A VOLUME OF 6    4 -GC CONTRACTS//OPEN INTEREST  31

 

WE LOST A GOOD SIZED 5350 CONTRACTS  (16.64 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2105 CONTRACTS:

CONTRACT .; AUG 2105 AND DEC: 0  ALL OTHER MONTHS ZERO//TOTAL: 2105.  The NEW COMEX OI for the gold complex rests at 554,173. 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 DECREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5350 CONTRACTS: 7455 CONTRACTS DECREASED AT THE COMEX AND 2105 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 5350 CONTRACTS OR 16.64 TONNES. WEDNESDAY, WE HAD A LOSS OF $12.90 IN GOLD TRADING……

AND WITH THAT LOSS IN  PRICE, WE HAD A GOOD SIZED LOSS IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 16.64 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 $12.90).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS  SOMEWHAT SUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (2001) ACCOMPANYING THE CONSIDERABLE SIZED LOSS IN COMEX OI  (7455 OI): TOTAL LOSS IN THE TWO EXCHANGES:  5350 CONTRACTS. WE NO DOUBT HAD 1 )SOME BANKER SHORT COVERING, 2.)A STRONG INCREASED  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) SOME LONG LIQUIDATION; 4) CONSIDERABLE COMEX OI LOSS.. AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG LOSS IN GOLD PRICE TRADING//WEDNESDAY//$12.90.

 

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.

 

SPREADING OPERATIONS/NOW SWITCHING TO GOLD

 

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO GOLD…..

SPREADING OPERATION FOR OUR NEWCOMERS:

 

FOR NEWCOMERS, HERE ARE THE DETAILS:

 

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

 

 

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 SILVER..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR GOLD.  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 GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX SGOLD 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 JULY HEADING TOWARDS THE ACTIVE DELIVERY MONTH OF AUGUST FOR GOLD:

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF JULY. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (AUGUST), 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 IN 2020 INCLUDING TODAY

JULY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 6550 CONTRACTS OR 655,000 oz OR 20.37 TONNES (2 TRADING DAY(S) AND THUS AVERAGING: 3275 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 2 TRADING DAY(S) IN  TONNES: 20.37 TONNES

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

THUS EFP TRANSFERS REPRESENTS 20.37/3550 x 100% TONNES =0.574% 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   3047.96  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:                     192.06 TONNES

JULY TOTAL EFP ISSUANCE;                      20.37 TONNES SO FAR..

 

 

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 2066 CONTRACTS FROM 169,418 DOWN TO 167,352 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: 234,787 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)   SOME BANKER SHORT COVERING , 2) A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 4) A SMALL DECREASE STANDING AT THE SILVER COMEX FOR JULY AND  5) SOME LONG LIQUIDATION 

 

EFP ISSUANCE 334 CONTRACTS

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

JULY: 0 CONTRACTS   AND SEPT: 334 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 334 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 2066  CONTRACTS TO THE 334 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  LOSS OF 1732 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 8.662 MILLION  OZ, OCCURRED WITH THE 23 CENT LOSS IN PRICE///

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 23 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A SMALL SIZED 334 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..THE EVIDENCE IS CLEAR: HUGE AMOUNTS OF PHYSICAL STANDING FOR BOTH  SILVER AND GOLD .

(report Harvey)

 

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 64.59 POINTS OR 2.13%  //Hang Sang CLOSED UP 697.00 POINTS OR 2,85%   /The Nikkei closed UP 24.23 POINTS OR 0.11%//Australia’s all ordinaires CLOSED UP 1.68%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0671 /Oil UP TO 40.12 dollars per barrel for WTI and 42.40 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0671 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0715 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS /PANDEMIC  : /ONSHORE YUAN TRADING ABOVE 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 FELL BY A CONSIDERABLE 7455 CONTRACTS TO 554,173 MOVING FURTHER FROM  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS LARGE  COMEX FALL OCCURRED WITH OUR LOSS OF $12.90 IN GOLD PRICING /WEDNESDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (2105 CONTRACTS),.  THUS WE HAD 1) SOME BANKER SHORT COVERING AT THE COMEX AND 2)  SOME LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS STANDING AT THE GOLD COMEX//JULY DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A FAIR LOSS ON OUR TWO EXCHANGES OF 5350 CONTRACTS WITH GOLD’S CONSIDERABLE LOSS IN PRICE. NOTE THE FACT THAT THE EXCHANGE FOR PHYSICALS ARE SMALL.. SOME OF OUR MAJOR BANKERS ARE BANNED FROM USING THE SERIAL FORWARDS.  IF THEY USE THIS VEHICLE IT MUST BE USED FOR PHYSICAL ONLY.

 

 

WE  HAD 6    4 -GC VOLUME//open interest RISES TO 31

 

 

 

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 2105 EFP CONTRACTS WERE ISSUED:  AUG  2105 AND 0 FOR DEC AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2105 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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  5350 TOTAL CONTRACTS IN THAT 2105 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 7455 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 SOME BANKER SHORT COVERING, ACCOMPANYING OUR CONSIDERABLE COMEX OI LOSS,  A HUGE  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)… AND SOME LONG LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A STRONG LOSS IN COMEX PRICE OF  12.90 DOLLARS..

 

THE BANKERS WERE SUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT FELL $12,90).  AND, THEY WERE SUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL LOSS ON THE TWO EXCHANGES REGISTERED A FAIR 16.64 TONNES.

 

 

NET LOSS ON THE TWO EXCHANGES :: 5350 CONTRACTS OR 535,000 OZ OR 16.64 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:  554,173 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 55.41 MILLION OZ/32,150 OZ PER TONNE =  1723 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1723/2200 OR 78.34% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 194,425 contracts//fair//most traders have moved to London

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  289,353 contracts//  volume good //most of our traders have left for London

 

 

JULY 2 /2020

JULY 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  

160,755.000

OZ

JPMorgan

 

5000

KILOBARS

No of oz served (contracts) today
641 notice(s)
 64100 OZ
(1.9937 TONNES)
No of oz to be served (notices)
1147 contracts
(114700 oz)
3.56 TONNES
Total monthly oz gold served (contracts) so far this month
4441 notices
444,100 OZ
13.813 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 1 deposits into the customer account

 

 

i) Into JPMorgan: 160,755.000 oz 5,000 kilobars

 

 

total deposit:  160,755.000 oz

 

we had 0 gold withdrawals from the customer account:

 

 

 

total gold withdrawals;  nil  oz

We had 2  kilobar transactions  +

 

ADJUSTMENTS: 0 //    

customer to dealer:

Loomis:  12,924.300 (402 kilobars)

Manfra:  74,048.562 oz

both adjusted from the customer to dealer.

 

 

 

The front month of JULY registered a total of 1788 oi contracts FOR a LOSS of 232 contracts. We had 484 notices served on WEDNESDAY so we GAINED  a whopping 252 contracts or an additional 25,200 oz will stand for delivery as they refused to morph into London based forwards.

 

 

Next comes August another strong delivery month and here the OI FELL by A STRONG 10,765  contracts DOWN to 382,574 contracts.

Sept saw another addition of 20 contracts to stand at 56.  Oct lost 229 contracts up to 35,934.

 

We had 744 notices filed today for 74,400 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 486 notices were issued from their client or customer account. The total of all issuance by all participants equates to 641 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 229 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 79 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JULY /2020. contract month, we take the total number of notices filed so far for the month (4441) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (1788 CONTRACTS ) minus the number of notices served upon today (641 x 100 oz per contract) equals 558800 OZ OR 17.381 TONNES) the number of ounces standing in this active month of JUNE

thus the INITIAL standings for gold for the JULY/2020 contract month:

No of notices filed so far (4441 x 100 oz + (1788 OI) for the front month minus the number of notices served upon today (641) x 100 oz which equals 558,800 oz standing OR 17.381 TONNES in this  active delivery month. This is a HUGE record amount for gold standing for a JULY delivery month (a  non active delivery month).

We are now witnessing an increase in queue jumping on a daily basis. Sooner or later they will be running out of metal to supply our longs.

 

 

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

 

657,424.187 oz pledged June 12/2020 Brinks/july 2               20.448 tonnes

total pledged gold:  1,175,793.827 oz                                     36.572 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 363.52 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 17.381 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  12,863,015.270 oz or 400.093 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: 657,424.187 oz added which cannot be settled:  20.448 tonnes
total weight of pledged:  1,175,793.827 oz or 36.572 tonnes
thus:
registered gold that can be used to settle upon: 11,687,222.0  (363.52 tonnes)
true registered gold  (total registered – pledged tonnes  11,687222.0 (363.52 tonnes)
total eligible gold:  19,582,269.640 oz (609.09 tonnes)

total registered, pledged  and eligible (customer) gold;   32,445,284.910 oz 1009.18 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  882.84 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

JULY 2/2020

And now for the wild silver comex results

we had the open interest at the comex, in SILVER, FELL BY A STRONG SIZED 2066 CONTRACTS FROM 169,418 DOWN TO 167,352 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) CONSIDERABLE BANKER SHORT COVERING , 2) A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A SMALL DECREASE AMOUNT OF  SILVER OZ STANDING AT THE COMEX FOR THE JULY CONTRACT MONTH ,  4) SOME LONG LIQUIDATION 

 

WE STILL HAVE A HUMONGOUS AMOUNT OF SILVER STANDING AT THE COMEX FOR JULY.

 

 

EFP ISSUANCE 334 CONTRACTS

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

JULY: 0 CONTRACTS   AND SEPT: 334 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 334 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 2066  CONTRACTS TO THE 334 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A CONSIDERABLE LOSS OF 1732 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 8.660 MILLION  OZ OCCURRED WITH THE 23 CENT LOSS IN PRICE///

 

 

 

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 23 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY. WE ALSO HAD A SMALL SIZED 334 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

JULY 2/2020

JULY SILVER COMEX CONTRACT MONTH

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

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
600,063.800 oz
CNT
No of oz served today (contracts)
744
CONTRACT(S)
(3720,000 OZ)
No of oz to be served (notices)
3560 contracts
 17,800,000 oz)
Total monthly oz silver served (contracts)  13012 contracts

65,060,000 oz)

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

total dealer deposits: nil oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   0

ii) Into CNT: 600,063.800 oz

 

 

 

 

 

 

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

JPMorgan now has 160.744 million oz of  total silver inventory or 49.69% of all official comex silver. (160.819 million/323.598 million

 

total customer deposits today: 600,063.800    oz

we had 1 withdrawals:

i) Out of CNT:  986.03 oz

 

 

 

 

 

total withdrawals; 986.03   oz

We had 1 adjustments

Customer account to Dealer:

i) CNT  781,536.09

 

total dealer silver: 126.259 million

total dealer + customer silver:  323.598 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  4304 contracts, as we lost 905 contracts.  We had 810 notices served on WEDNESDAY, so we LOST 95 contracts or an additional 475,000 oz will NOT stand in this active delivery month of July as they received a London based forward and a fiat bonus for their effort..

 

 

The next month after July is the non active month of  August and here  sees its open interest ROSE by 53 contracts UP to 745

The big September contract month sees a LOSS of 1426 contracts DOWN to 131,297.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 744 contract(s) FOR 3.720 MILLION, oz

 

To calculate the number of silver ounces that will stand for delivery in JULY we take the total number of notices filed for the month so far at 13,012 x 5,000 oz = 65,060,000 oz to which we add the difference between the open interest for the front month of JULY.(4304) and the number of notices served upon today 744 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 13,012 (notices served so far) x 5000 oz + OI for front month of JULY (4304)- number of notices served upon today (744) x 5000 oz of silver standing for the JULY contract month.equals 82,860,000 oz.  (A WHOPPER )

WE LOST 95 CONTRACTS OR 475,000 OZ WILL NOT STAND ON DAY 2.  HOWEVER IF HISTORY SERVES US WELL, WE WILL WITNESS SHORTLY QUEUE JUMPING AS THE BANKS(BULLION DEALERS) TRY TO SQUANDER AS MUCH SILVER AS THEY GAIN ON THIS SIDE OF THE POND.

 

 

TODAY’S ESTIMATED SILVER VOLUME :51,497 CONTRACTS // volume fair/

 

 

FOR YESTERDAY: 92,870.,CONFIRMED VOLUME//volume very  good/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 92,870 CONTRACTS EQUATES to 464 million  OZ  66.3% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV FALLS TO- 0.04% ((JULY 2/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO +0.03% to NAV:   (JULY 2/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.04%

(courtesy Sprott/GATA

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

NAV 16.84 TRADING 16.80///NEGATIVE 0.25

END

 

 

And now the Gold inventory at the GLD/

JULY 2/WITH GOLD UP $7.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.21 TONNES INTO THE GLD////INVENTORY RESTS AT 1182.11 TONNES

JULY 1/WITH GOLD DOWN $12.90//NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1178.90 TONNES

JUNE 30//WITH GOLD UP $16.50 TODAY: NO CHANGE  IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS AT 1178.90 TONNES

JUNE 29/WITH GOLD UP $2.90 TODAY: A HUGE DEPOSIT OF 3.61 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1178.90 TONNES

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

JULY 2/ GLD INVENTORY 1182.11 tonnes*

LAST;  852 TRADING DAYS:   +238.21 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 752 TRADING DAYS://+416.39  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 2/WITH SILVER UP 4 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//: A DEPOSIT OF 4.01 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 502.008 MILLION OZ

JULY 1/WITH SILVER DOWN 23 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A MASSIVE DEPOSIT OF 5.403 MILLION OZ//INVENTORY RESTS AT 498.007 MILLION OZ/

JUNE 30/WITH SILVER UP 39 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 29/WITH SILVER DOWN ONE CENT TODAY: A TWO CHANGES IN SILVER INVENTORY AT THE SLV: A SMALL WITHDRAWAL OF 466,000 OZ TO PAY FOR STORAGE FEES AND INSURANCE//// AND A LARGE DEPOSIT OF 1.212 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 26/WITH SILVER UP 6 CENTS TODAY: ANOTHER HUGE CHANGE IN SILVER INVENTORY AT THE SLV/ RESTS AT 491.858 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//

 

JULY 2.2020:

SLV INVENTORY RESTS TONIGHT AT

502.008 MILLION OZ.

END

 

LIBOR SCHEDULE AND GOFO RATES//  GOLD LEASE RATES

 

 

YOUR DATA…..

6 Month MM GOFO 4.00/ and libor 6 month duration 0.38

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

GOLD LENDING RATE: -3.62%

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

 

XXXXXXXX

12 Month MM GOFO
+ 2.69%

LIBOR FOR 12 MONTH DURATION: 0.53

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -2.16%

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

what went wrong is beautifully explained in this interview..i.e. infinite money was created to the benefit of the elite over Main street.

Jan Nieuwenhuijs/GATA

Jan Nieuwenhuijs: What went wrong in 1971 is explained

 Section: 

10:25a ET Wednesday, July 1, 2020

Dear Friend of GATA and Gold:

Voima Gold researcher Jan Nieuwenhuijs this week posts an excellent interview with a couple of amateur Austrian School economists who maintain an internet site built on the premise that the world started going haywire upon President Richard Nixon’s disconnection of the U.S. dollar from gold in 1971.

The interview suggests that the closing of the “gold window” not only began the age of infinite money but also caused economic inequality to explode by inflating financial asset values without increasing wages.

Nieuwenhuijs’ interview is headlined “What Went Wrong in 1971” and it’s posted at Voima Gold here:

https://www.voimagold.com/insight/what-went-wrong-in-1971

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

END

The story on how Kingold jewelry secures a 2.8 billion dollars in loans with gilded copper

(SCMP/GATA)

China’s Kingold Jewelry secures $2.8 billion in loans with gilded copper bars

 Section: 

What’s the big deal here? Being at least copper, those bars are more real than the paper gold that has flooded the world.

* * *

Kingold Jewelry Secures $2.8 billion in Loans with Gilded Copper Bars

By Peggy Sito
South China Morning Post, Hong Kong
Tuesday, June 30, 3030

Kingold Jewelry, a Nasdaq-listed jeweller and producer of household ornaments, has been accused of large-scale fraud in the second major scandal in three months involving a Chinese company listed in the United States.

The Wuhan-based company is alleged to have used fake gold bars as collateral to fraudulently obtain 20 billion yuan (US$2.8 billion) in loans, in a case that risks fuelling a recent drive by American politicians to expel Chinese companies from Wall Street.

Shares of the Nasdaq-listed gold processor plunged by almost a quarter after the allegations emerged Monday morning on the website of Caixin, a mainland Chinese financial news outlet.

Kingold strongly denies any wrongdoing and is being investigated by the “authorities,” according to Caixin. The company could not be reached for comment by the Post.

Kingold, one of China’s largest gold jewellery manufacturers, allegedly used 83 tonnes of gold bars as loan collateral, which later turned out to be gilded copper. Caixin described it as one of the largest gold loan fraud cases China has ever seen. …

… For the remainder of the report:

https://www.scmp.com/business/companies/article/3091185/kingold-jewelry-…?

* * *

 

END

CANADA tax authorities recover 82 million dollars form Kitco in a fraud case

(zerohedge)

Canadian tax authorities recover C$82 million from Kitco in fraud case

 Section: 

This news report, translated from the original French, is 2 years old but seems to have escaped notice outside Quebec.

* * *

Revenu Quebec Concludes a Secret Agreement with a Gold Merchant

From The Journal of Montreal
Wednesday, April 25, 2018

https://www.journaldemontreal.com/2018/04/25/revenu-quebec-conclut-un-ac…

Revenu Quebec has just concluded a secret agreement with the Montreal firm Metaux Kitco, accused of multi-million-dollar tax evasion in the gold sector.

Revenu Quebec argued that Kitco owed it at least C$284 million for claiming and obtaining tax refunds to which the company was not entitled. According to publicly available information, the taxman ultimately receive only $50 million of this amount.

According to the government agency, Kitco produced false invoices to carry out “artificial transactions” making it possible to transform pure gold (zero-rated) into scrap gold (taxable), then again into pure gold (zero-rated).

Kitco’s business partners include security firms GardaWorld and G4S, as well as the Royal Canadian Mint, a federal Crown corporation, to which Kitco entrusts the refining of its scrap gold. Nothing indicates that these entities participated in the scheme denounced by the tax authorities.

Revenu Quebec requested that a confidentiality clause be added to the agreement to prevent its disclosure. In a document filed in court, however, it was stated that the agency is entitled to C$49.9 million as “full and final payment” for its claim of C$284 million.

Revenue Canada, for its part, will receive $ 31.7 million. The total of C$81.7 million represents the amount that the tax authorities had withheld from tax-refund claims submitted by Kitco.

The agreement will allow Kitco to get out of the judicial restructuring process in which the company was placed in 2011 in reaction to the notices of assessment filed by Revenu Quebec. The Superior Court is to ratify the agreement next month.

Revenu Quebec refused to answer questions from the Journal yesterday, except to indicate that “the Court of Quebec remains seized of criminal files” concerning Metaux Kitco and its founding president, Bart Kitner. According to spokesperson Geneviève Laurier, procedures must resume on May 24.

However, a document filed in court stipulates that the agreement concluded with the taxman “settles” all disputes with Kitco, including “criminal offenses.”

The taxman demanded fines totaling more than $454 million from Kitco and Mr. Kitner as well as a prison sentence for the latter.

Since 2011 the amount of gold held by Kitco has decreased by 20 percent. Despite everything the company still has 77,000 ounces of this precious metal for a market value of C$127 million, accounting firm Richter told the court.

end

 

Generally technical analysis does not work in manipulated markets.  However if you use long term charts, there is value in it.

Today, Von Greyerz shows gold breaking out and silver is about to:

(Egon Von Greyerz/GATA)

At KWN, Von Greyerz’s charts indicate breakouts for gold and silver

 Section: 

9:55p ET Wednesday, July 1, 2020

Dear Friend of GATA and Gold:

While GATA has little use for technical analysis of markets as manipulated as those for gold and silver, from time to time you may be entitled to some cheering up after all the news we bring you about the bad guys. So thanks to King World News, enjoy the chart work done tonight by Swiss gold fund manager Egon von Greyerz. It’s headlined “Gold and Silver Are Close to Major Breakouts That Will Send Prices Soaring” and it’s posted here:

https://kingworldnews.com/greyerz-gold-silver-are-close-to-major-breakou…

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

end

iii) Other physical stories:

Former bus driver, Maduro receives news that the British Court refuses to release Venezuela one billion dollars worth of gold.

(zerohedge)

British Court Refuses To Release Venezuelan Gold To Maduro

18 months ago, the ‘virtue-signaling’ Bank of England stuck a knife between the ribs of Venezuela’s embattled socialist leader, Nicolas Maduro, a former bus driver and anointed successor of Hugo Chavez who managed to cling to power last year despite a Western-backed coup attempt led by opposition leader Juan Guaido, whose government was officially recognized by dozens of foreign governments.

But when the Venezuelan military refused to break with Maduro, choosing instead to back him over Guaido, Guaido gradually faded into irrelevance. He’s still there, and still claiming to be the legitimate ruler of Venezuela, but instead of looking like a credible alternative to Maduro, he’s sounding more like a deranged street preacher proclaiming that he is the one true messiah.

Despite the fact that Venezuela’s leadership is no longer in doubt, a lawsuit brought by the Venezuelan central bank against the British government seeking the release of the Venezuelan gold sitting in the BoE’s vaults ended on Thursday with a decision against the Maduro government,as it was denied access to $1 billion of venezuelan gold in the BoE vaults. Instead, the court ruled that it could only release the gold to the legitimate government of Venezuela. Since Britain recognizes Guaido as Venezuela’s legitimate ruler, the British government has legal standing to treat the Maduro government like an illegitimate regime, allowing the gov’t to essentially freeze and seize government assets at will.

Here’s more from the Guardian:

Mr Justice Teare, a commercial court judge sitting in the high court, ruled on Thursday the Maduro-supporting bank was not entitled to make the request. “Her Majesty’s government does recognise Guaidó in the capacity of the constitutional interim president of Venezuela and, it must follow, does not recognise Maduro as the constitutional interim president of Venezuela,” he said.

“Whatever the basis for the recognition, Her Majesty’s government has unequivocally recognised Guaidó as president of Venezuela. It necessarily follows that Her Majesty’s government no longer recognises Maduro as president of Venezuela … There is no room for recognition of Mr Guaidó as de jure president and of Maduro as de facto president.”

Sarosh Zaiwalla, senior partner at Zaiwalla & Co, representing the Banco Central de Venezuela, said his clients would appeal and challenged the court judgement for “entirely ignoring the reality of the situation on the ground”.

He said the ruling would delay money being sent to help the people of Venezuela. “Maduro’s government is in complete control of Venezuela and its administrative institutions, and only it can ensure the distribution of the humanitarian relief and medical supplies needed to combat the coronavirus pandemic.”

He added that none of the member of a rival, Guaidó-appointed BcV board that sought to keep the gold in the UK, have “been resident in Venezuela for some years now”.

Though the Venezuelans plan to appeal, we suspect they won’t have very much luck. That’s of course terrible news for the Maduro government, which is officially broke with its oil output at record lows and its currency essentially worthless, the government has no money to finance anti-COVID-19 programs. And the international community, aside from Maduro’s benefactors in Russia and China, has been pretty unforgiving. Back in May, we pointed out that Venezuela’s gold vaults are probably empty, or close to it, after the government was forced to make some payments to the Iranians in gold.

The central bank’s solicitor argued that the decision was illegal under international law as an illegal intervention in the affairs of Venezuela. The decision also puts the kibosh on a Venezuelan plan whereby proceeds from the gold could be handed to the UN allowing it to intermediate the purchases of critical COVID-19 supplies for Venezuela.

Ultimately, we imagine Hugo Chavez, who took strides to repatriate most of Venezuela’s gold held in the vaults of foreign central banks, is rolling over in his grave. And Maduro is learning once again that gold doesn’t have any owners – only spenders. He who controls the vault, controls the gold.

end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0671/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0715   /shanghai bourse CLOSED UP 64.59 POINTS OR 2.13%

HANG SANG CLOSED UP 697.00 POINTS OR 2.85%

 

2. Nikkei closed UP 24.23 POINTS OR 0.11%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 96.91/Euro FALLS TO 1.1287

3b Japan 10 year bond yield: FALLS TO. +.04/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.42/ 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:: 40.12 and Brent: 42.40

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.41%/Italian 10 yr bond yield DOWN to 1.24% /SPAIN 10 YR BOND YIELD DOWN TO 0.46%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.65: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.18

3k Gold at $1765.60 silver at: 17.88   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 40/100 in roubles/dollar) 70.39

3m oil into the 40 dollar handle for WTI and 42 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 107.42 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 .9431 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0646 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

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

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

4. USA 10 year treasury bond at 0.68% early this morning. Thirty year rate at 1.43%

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

6.  TURKISH LIRA:  UP  TO 6.8552..

Futures Surge On Even More “Optimism” Ahead Of Payrolls

After sliding to 2,983.5 in early Sunday trading on fears of a second wave of covid infections, futures have completely forgotten what they were concerned about at the start of the week, and have since levitated in largely linear fashion some 150 points higher, rising to 3,130.75 overnight, on even more hope and optimism, this time for a reassuring job report coupled with yesterday’s hopes for positive vaccine developments. The dollar slipped and 10Y yields rose.

 

At 7:20 a.m. ET, Dow e-minis were up 275 points, or just over 1%, S&P 500 e-minis were up 25 points to 3,128, and Nasdaq 100 e-minis were up 52 points to 10320. Travel-related stocks were among the biggest gainers in premarket trade, with cruise line operators Carnival, Royal Caribbean Cruises and Norwegian Cruise Line Holdings rising between 3% and 4%, while economically-sensitive stocks including Morgan Stanley, Goldman Sachs, Citigroup, JPMorgan Chase and Bank of America up between 1% and 3%. Tesla was up another $100 overnight, rising to a new record high above 1,200.

 

Indeed, as Reuters writes this morning, “optimism about a post-pandemic rebound in business activity, aggressive U.S. stimulus and hopes of a COVID-19 vaccine” have fueled a Wall Street rally since April, with the tech-heavy Nasdaq notching up its sixth record closing high since early June on Wednesday.

After the latest ISM data showed U.S. manufacturing unexpectedly hit its highest level in June in more than a year, the Labor Department’s jobs report due later in the day is expected to show record job growth last month, signaling that a COVID-19-driven recession was probably over, at least until its returns next month when government stimulus checks run out. Meanwhile, with several states scaling back or pausing reopenings to tackle a recent surge in coronavirus infections, analysts have warned of another selloff in financial markets if the damage to Corporate America mounts.

Third-quarter earnings for S&P 500 companies are now expected to tumble 25%, compared with a forecast of a 2.7% drop on April 1, according to Refinitiv. In the second quarter, earnings are forecast to have plunged 43%.

Europe’s Stoxx 600 Index extended its initial gains on advances in banks and automakers with the Eurostoxx 50 rallying as much as 1.9% to fresh highs for the week; IBEX outperforms, gaining over 2.5%. Europe’s Stoxx 600 Travel & Leisure index rose as much as 3.6%, the most since June 16, led by airlines and gaming stocks. IAG was up as much as 7.4% and EasyJet advances 6.6%; the U.K. is planning to lift quarantine rules for 75 countries, according to a report in the Telegraph. Gaming stocks including GVC (+3.1%) and Flutter (+2.9%) also higher after brushing off a U.K. House of Lords report calling for the introduction of new rules to reduce gambling-related harm.

Asian stocks also gained, led by communications and energy, after ending flat in the last session. Hong Kong shares outperformed after traders returned from a holiday, despite the recent tensions over China’s new national security law over the city. The Shanghai Composite turned positive for the year to date, with Zhangjiagang Freetrade Science & Technology Group and Xinjiang Tianye posting the biggest advances.Stocks in Australia, China, Japan and South Korea also rose. The Topix gained 0.3%, with Retail Partners and GungHo Online rising the most. Trading volume for MSCI Asia Pacific Index members was 62% above the monthly average for this time of the day.

“The rally for equities could survive even if the U.S. jobs data disappoint, after the Fed’s signal of sustained low rates,” said Stephen Gallo, a foreign-exchange strategist at the Bank of Montreal. “Bad numbers could extend that outlook for cheap money.” Translation: a good jobs number will be good, a bad jobs number will be better.

In rates, Treasuries were little changed on light volume in futures ahead of the June jobs report and the early close in the bond market (Sifma-recommended 2pm ET close before U.S. holiday Friday). Narrow yield ranges have prevailed so far with risk-takers sidelined before the pandemic-inflected data. Yields slightly cheaper across long-end of the curve, still within ~1bp of Wednesday’s close; 10-year ~0.68%, cheaper by 0.5bp, while bunds, gilts outperform by 2bp and 1.5bp. Core European bonds were aided by French debt rally after the oversubscription rate for sale of 10-year bonds rose to highest since May 2019.

In FX, the dollar dropped as haven bids waned after the abovementioned optimism bolstered bets for a global economic recovery, with market focus shifting to an upcoming U.S. jobs report. The euro touched a one-week high versus the greenback, with options pointing to more upside for the common currency. Three-month EUR/USD risk reversals are the most bullish since mid- March, while the six-month measure rose above parity for the first time since the pandemic panic four month ago. Norway’s krone saw the biggest gains against the dollar among Group-of-10 peers, partly boosted by the climb in oil prices.

In commodities, oil futures climbed for a second session, helped by a strong drawdown in crude stockpiles, while gold rebounded to session highs, silver was trading back over $18/oz.

Market Snapshot

  • S&P 500 futures up 0.8% to 3,126.75
  • STOXX Europe 600 up 1.3% to 365.79
  • MXAP up 1.5% to 160.15
  • MXAPJ up 1.9% to 525.40
  • Nikkei up 0.1% to 22,145.96
  • Topix up 0.3% to 1,542.76
  • Hang Seng Index up 2.9% to 25,124.19
  • Shanghai Composite up 2.1% to 3,090.57
  • Sensex up 1.7% to 36,008.91
  • Australia S&P/ASX 200 up 1.7% to 6,032.71
  • Kospi up 1.4% to 2,135.37
  • German 10Y yield fell 0.4 bps to -0.399%
  • Euro up 0.4% to $1.1294
  • Brent Futures up 0.9% to $42.42/bbl
  • Italian 10Y yield rose 1.2 bps to 1.143%
  • Spanish 10Y yield fell 2.5 bps to 0.477%
  • Brent Futures up 0.9% to $42.42/bbl
  • Gold spot up 0.06% to $1,771.08
  • U.S. Dollar Index down 0.3% to 96.86

Top Overnight News from Bloomberg

  • Russian President Vladimir Putin won a resounding endorsement of his bid to extend his two-decade-long rule potentially to 2036, even as some polls show his approval ratings near historic lows
  • U.S. daily coronavirus cases topped 50,000 for the first time. Oxford’s vaccine project is currently ahead of others, but the world needs more than one type of shot to tackle the new coronavirus, said U.S. infectious-disease expert Anthony Fauci
  • Sovereign borrowers including Germany, Ireland, Italy, Spain and the U.K. helped the SSA sector to lead a record setting second quarter as marketwide sales reached EU607.92b, according to data analyzed by Bloomberg
  • Ukraine canceled a $1.75 billion Eurobond sale after the head of its central bank unexpectedly stepped down citing sustained political pressure against him and his colleagues
  • China warned of strong countermeasures if the U.S., Australia and the U.K. continued taking actions in response to Beijing’s tough national security law in Hong Kong, saying foreign pressure would “never succeed”
  • Yuan trading is the calmest since January as investors evaluate the virus pandemic and China-U.S. tensions

Asian equity markets traded positively after the region took advantage of the mild tailwinds from Wall St where stocks finished mostly higher on vaccine hopes and equity inflows as Q3 trading got underway, although gains were mild in the absence of any improvement to the increasing COVID-19 infections narrative stateside, where new cases surpassed 50k for the first time. ASX 200 (+1.7%) was lifted by strength in tech with the sector inspired following the recent outperformance of the Nasdaq which posted a record close in the preceding session, while Nikkei 225 (+0.1%) shrugged off the early choppy price action which had been at the whim of an indecisive currency. Hang Seng (+2.9%) and Shanghai Comp. (+2.1%) were also upbeat as the constructive tone seen across the continent helped participants overlook another PBoC liquidity drain, as well as the continued US-China tensions after the China Foreign Ministry announced fresh actions against US media and the US House passed China sanctions in response to the HK national security law. Finally, 10yr JGBs were subdued amid gains in stocks and with yields extending to the upside as observed in the 30yr yield which rose to its highest since January last year, while a bout of strength seen on return from the Tokyo lunch break was short-lived due to the mixed results from the 10yr JGB auction.

Top Asian News

  • U.S. Readies ‘Harsh’ Sanctions on China Over Abuses in Xinjiang
  • China-Sanctions Bill on Hong Kong Law Passed by U.S. House
  • South Indian Bank Proposes Former ICICI Banker as Next CEO
  • Landslide in Myanmar’s Jade Mining Hub Leaves 113 People Dead

European equities continue to march higher as the second trading session in H2 is underway (Euro Stoxx 50 +1.5%) following on from a similarly stellar APAC performance – with gains in stocks attributed to COVID-19 vaccine optimism coupled with Q3 inflows. The fundamental landscape has not shifted much but the narrative of rising case counts has not subsided, with US cases topping 50k additions for the first time whilst a record increase was also reported in Indonesia. Furthermore, the Hong National Security Law keeps tensions riled up between China and G10 nations, with US House passing the China sanctions bill in response to the HK national security law through unanimous consent. Nonetheless, Europe extends on gains seen at the open with Spain’s IBEX (+2%) outperforming as the index is propped up by outperformance in Banks and Travel & Leisure. Meanwhile, Autos, construction and insurance sectors also reside near the top of the pile whilst Healthcare and consumer staples trade on the other side of the spectrum. Cyclicals clearly outpace defensives.  In terms of individual movers, Wirecard (-27%) shares are on the backfoot amid reports Softbank is to end its partnership with the Co. Meanwhile, Associated British Foods (+5.3%) holds onto a bulk of its gains after reporting that almost all of its Primark stores have reopened and the group continues to expect strong progress in aggregate adjusted operating profit in sugar, grocery, agriculture and ingredients businesses.

Top European News

  • Ukraine Cancels Eurobond Sale After Central Bank Chief Quits
  • China Strongly Condemns U.K. Offer to Hong Kong Citizens
  • Novartis to Pay $678m to Settle Fraud Lawsuit, U.S. DOJ says
  • Blast at Glencore Oil Refinery in Cape Town Leaves Three Dead

In FX, the Dollar continues to depreciate amidst rather contradictory or juxtaposed impulses via more signs that the US and global economy has turned the corner from initial coronavirus-related shutdowns vs concerns about the impact of re-opening and a 2nd wave. Hence, a double whammy for the Buck as fresh COVID-19 outbreaks spread to more states that have lifted restrictions, but the overall risk environment remains positive and the DXY loses grip of the 97.000 handle ahead of NFP, the more timely weekly jobless claims update, trade data and factory orders, all truncated due to Friday’s market closure for Independence Day.

  • NZD/EUR/GBP/AUD/CHF – The Kiwi is back above 0.6500, thanks in part to general Greenback weakness, but also deriving momentum from closer to home as the Aussie lags in wake of weaker than forecast trade data overnight. In response, Aud/Nzd has retreated from circa 1.0675 to sub-1.0640 and Aud/Usd has not been able to revisit 0.6950 against the backdrop of heavy option expiry interest at 0.6895 (1.8 bn) and in the Aud/Jpy cross close to current levels, at 74.50 (1 bn). Similarly, the Euro and Pound are both making more headway against the Dollar, with Eur/Usd probing above 1.1300 and Cable now over 1.2500 as Eur/Gbp eyes 0.9000 to the downside on reports of real money Sterling buyers. Note, the single currency may also be capped by significant expiries at 1.1300 (2 bn), but should glean support from slightly bigger options rolling off at 1.1250 (2.2 bn). Elsewhere, the Franc has extended gains vs the Buck towards 0.9425 in contrast to marginal underperformance against the Euro around 1.0650 following slightly softer than expected Swiss CPI metrics.
  • JPY/CAD – Both narrowly mixed vs the Usd, as the Yen weighs up bullish risk sentiment alongside latest Greenback declines and treads a fine line between 107.55-35 with a decent 107.50 expiry (1 bn) also in contention for the NY cut pending reaction to US data. Conversely, the Loonie has reversed further from recent highs to pivot 1.3600 in advance of Canadian trade and manufacturing PMI, as underlying traction from crude stalls somewhat.
  • SCANDI/EM – Broad strength on the ongoing risk-friendly start to July, Q3 and H2, and with the Zar also benefiting from another upside SA data surprise in the form of a Q1 current account surplus, while the Rub is underpinned by reduced political uncertainty on the domestic front after more than ¾ of the country voted in favour of Russia’s new constitution. However, the Try remains hampered due to renewed geopolitical jitters, albeit still stemming losses with the aid of Turkish bank intervention.

In commodities, WTI and Brent front-month futures hold onto earlier gains, albeit have drifted off highs in recent trade with little by way of fresh fundamental drivers as the oil complex piggybacks on risk sentiment. On the OPEC front, interesting reports overnight from delegates noted that Saudi Arabia threatened to re-ignited an oil price war in past weeks if other OPEC countries do not adhere to their quotas. The headline, however, gained little traction as OPEC laggards have, at face value, been taking steps to improve compliance in line with the OPEC+ pact. Meanwhile, Russian Energy Minister Novak hopes the global oil market reaches a balance/shortage in July but noted a second wave of COVID-19 could impact on oil demand. WTI trades on either side of USD 40/bbl (39.50-40.40/bbl range) whilst Brent Sep holds its head above USD 42/bbl (41.73-42.66/bbl).Price action today will likely be dictated by pandemic-related headlines alongside the US labour market report, whilst the Baker Hughes Rig Count will be released today on account of tomorrow’s Independence Day market holiday. Elsewhere, spot gold remains contained around recent ranges on either side of USD 1770/oz as the yellow metal bides its time ahead of NFP. Copper prices meanwhile are experiencing a day of correction after its recent supply-led gains.

US Event Calendar

  • 8:30am: Initial Jobless Claims, est. 1.35m, prior 1.48m; Continuing Claims, est. 19m, prior 19.5m
  • 8:30am: Change in Nonfarm Payrolls, est. 3.06m, prior 2.51m
    • Change in Private Payrolls, est. 3m, prior 3.09m
    • Change in Manufact. Payrolls, est. 437,500, prior 225,000
    • Unemployment Rate, est. 12.5%, prior 13.3%
    • Underemployment Rate, prior 21.2%
    • Labor Force Participation Rate, est. 61.2%, prior 60.8%
    • Average Weekly Hours All Employees, est. 34.5, prior 34.7;
    • Average Hourly Earnings MoM, est. -0.7%, prior -1.0%; Average Hourly Earnings YoY, est. 5.3%, prior 6.7%
  • 8:30am: Trade Balance, est. $53.2b deficit, prior $49.4b deficit
  • 9:45am: Bloomberg Consumer Comfort, prior 41.4
  • 10am: Factory Orders, est. 8.65%, prior -13.0%; Factory Orders Ex Trans, est. 6.5%, prior -8.5%
  • 10am: Durable Goods Orders, est. 15.8%, prior 15.8%; Durables Ex Transportation, est. 4.0%, prior 4.0%
  • 10am: Cap Goods Orders Nondef Ex Air, est. 2.3%, prior 2.3%; Cap Goods Ship Nondef Ex Air, prior 1.8%

DB’s Jim Reid concludes the overnight wrap

After the market’s batteries were fully charged after an incredibly strong Q2, the second half started off on a mixed note yesterday, but positivity again won out in the end. After a soft start in Europe, risk assets were boosted early in the US session by some promising developments in a vaccine trial. However we gave back all of the early US session gains as Arizona saw a record rise in new cases late morning US time. The US regained its poise into the close though with the S&P 500 ending +0.50%.

The vaccine specific news came through from Pfizer (+3.18%) and BioNTech (-3.90%, though opened +18.9%), who announced that those patients who’d received two doses of their vaccine candidate had “significantly elevated” antibodies, raising hopes among investors that we could see a vaccine later this year if further tests prove successful. Both stocks saw late losses though, possibly on a Bloomberg report that the Food and Drug Administration’s new standards on Covid-19 vaccine development may mean a longer roll out than anticipated. The standard, published on Tuesday, said that any potential vaccine would need to prove itself at least 50% more effective than a placebo to earn an approval. Merely showing immune response data would not be enough to be administered.

In terms of the virus, Arizona reported a record daily increase in cases of 4,865 (6.2% vs the 7-day average of 4.5%). Arizona has had some reporting issues over the last few days so single day data is dangerous to over analyse. Their fatality number hit a new high of 80, above the 7-day average of 36 and exceeding the previous high of 71 last Wednesday. However our back of the envelope calculations suggest that with the 7-day lag between cases and fatalities we saw globally in the first wave, the 7 day run rate of Arizona deaths would now be in the 130 (using Germany) to 160 (using New York) range if the pattern and case fatality rates had stayed the same. In 7 days’ time it should be in the 250 to 300 range, given current case increases. So one to watch and whilst fatalities will of course go up they are still not yet seeing the pickup consistent with first wave trends.

The US overall has now seen over 41,000 new cases on average over the last week, well above the 32,000 peak seen in April. Florida saw numbers rise by 4.3% vs 5.7% over the past 7 days, while the positive test rate grew to a high of 15%, indicating that the real case count in the state is likely much higher. California saw another record with over 9740 new infections, the 5.0% rise compared to a 2.8% average rise over the last week. See the latest from around the world and the four troubled US states in the pdf today.

The recent rise in California cases has caused Governor Newsom to shutdown indoor businesses including restaurants, bars, museums and movie theaters in 19 counties. Citing a small pickup in cases within Pennsylvania (5th largest US state) and the caseload of the country overall, Governor Wolf mandated that masks be worn at all times when leaving the house. Elsewhere yesterday saw New York City Mayor de Blasio announce that the planned reopening of indoor dining next week would be postponed, given the rising numbers of cases in the US. New York State overall is now opening testing to all residents, as capacity has increased sufficiently. Overnight, Bloomberg has reported that McDonald’s is pausing the resumption of all dine-in services in its US restaurants with the halt likely to last 21 days.

Staying with lockdowns, we have also published the latest Exit Strategy Tracker (Link here) which compares exits across the world. In this edition we preview holiday season by assessing which countries seem the most sensible places to have break in this summer given various criteria. We’re not quite branching out into travel guides yet but it will give you a guide to openness.

Back to markets and thanks to the initial vaccine developments, global equity markets recovered from their early declines, with the STOXX 600 paring back its intraday low of -1.02% to close +0.24% higher. In the US, the market was boosted by a +11.72% gain for FedEx after the company announced much stronger than expected earnings, while tech stocks outperformed with the NASDAQ up +0.95%. The other big company news yesterday was that Tesla overtook Toyota to become the world’s most valuable automaker, following more than a five-fold increase in the company’s share price over the last 12 months. At the end of last May the stock was trading at just under 180 while yesterday it closed at 1119.6. In that time the stock gained +412%, and then lost over -60% during the pandemic selloff in March before soaring (+210%) off the pandemic lows.

Overnight, Asian markets have tracked gains on Wall Street with the Nikkei (+0.49%), Hang Seng (+1.49%), Shanghai Comp (+1.16%), Kospi (+0.83%) and ASX (+1.35%) all advancing. Futures on the S&P 500 are also up +0.11%.

Today, market attention will turn to the US jobs report for June, which is out on a Thursday this month because of the Independence Day holiday. In terms of what to expect, our US economists are looking for a gain in nonfarm payrolls of another +2.5m, following last month’s +2.509m reading, along with a reduction in the unemployment rate to 12.5%. However given the persistent misclassification issues, the U-6 rate (19.4% vs. 20.2%) will provide a more-accurate picture with respect to the underlying state of the labour market. In addition it’s worth remembering that given the US shed over 22m jobs in March and April, even another 2.5m boost would still mean that less than a quarter of the total jobs have been recovered, so there’s still a long way to go before the labour market gets back to something approaching normality. Also bear in mind that this data is backward-looking, so any positive developments won’t necessarily be sustained if a further worsening of the pandemic leads more states to roll back reopening measures.

While we’re on the data theme, another factor that helped to boost markets yesterday was the continued recovery of both the ISM manufacturing reading along with the PMIs from their April lows. Starting with the ISM, that came in at 52.6 (vs. 49.8 expected), above the crucial 50-mark that separates expansion from contraction, and its highest level since April 2019. The positive news extended to Europe too, where the final Euro Area manufacturing PMI was revised up half a point from the flash reading to 47.4, while the French (52.3) and the German (45.2) numbers also saw upward revisions. However, the recovery we’ve seen in activity shouldn’t be overstated, and to some extent this is pent-up demand. The big question as the virus accelerates in many countries again is whether this new found recovery can be sustained.

Fed minutes from the June meeting were released last night, with the biggest point of interest seeing how officials responded to discussions around yield-curve control. The transcript revealed that the FOMC is clearly leaning toward forward guidance over committing to YCC, saying that “many participants remarked that, as long as the committee’s forward guidance remained credible on its own, it was not clear that there would be a need for the committee to reinforce its forward guidance with the adoption of a YCT policy.” On the topic of inflation a “number” of officials favoured the idea of making future policy moves conditional on inflation. This could mean waiting for “a modest temporary overshooting of the committee’s longer-run inflation goal” of 2%.

Elsewhere in markets, sovereign bonds sold off in line with the broader move away from havens into risk assets, and yields on 10yr bunds rose by +5.9bps in their largest daily move upwards in over a month. Yields on US Treasuries (+2.0bps) and gilts (+3.9bps) similarly rose, though peripheral spreads in Europe tightened, with the gap between 10yr BTPs over bunds falling by -4.6bps to its narrowest in over 3 months. Gold came off its 7-year high with a -0.61% move lower, and oil rallied with Brent crude up +2.14%.

Wrapping up with yesterday’s other data, and in advance of today’s US jobs report, the ADP’s report of private payrolls showed a +2.369m increase in June (vs. 2.9m expected) though the previous month’s reading was revised up by +5.8m! In Germany however, unemployment jumped to 2.943m, its highest level in six-and-a-half years. Also in Germany, data showed retail sales in May rebounded by 13.9%, well above expectations for a 3.5% rise and a significant rebound from last month’s -5.3 drop.

To the day ahead now, and the highlight is likely to be the aforementioned jobs report for June from the US. Otherwise, we’ll also get the weekly initial jobless claims reading, along with data on factory orders and the trade balance for May. Otherwise, we’ll get the Euro Area unemployment rate for May and the manufacturing PMI for Canada. There’ll also be remarks from the ECB’s Mersch and Schnabel.

 

 

 

3A/ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED UP 64.59 POINTS OR 2.13%  //Hang Sang CLOSED UP 697.00 POINTS OR 2,85%   /The Nikkei closed UP 24.23 POINTS OR 0.11%//Australia’s all ordinaires CLOSED UP 1.68%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0671 /Oil UP TO 40.12 dollars per barrel for WTI and 42.40 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0671 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0715 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS /PANDEMIC  : /ONSHORE YUAN TRADING ABOVE 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/HONG KONG/USA
The USA unanimously passes China sanctions bill in response to the Hong Kong law.
(zerohedge)

House Unanimously Passes China Sanctions Bill In Response To Hong Kong Law

The U.S. House of Representatives unanimously passed a bill imposing sanctions on banks that do business with Chinese officials involved in the national security law that cracks down on pro-democracy protesters in Hong Kong, a move many lawmakers said violated the government’s promise to honor the autonomy of the former British colony.

During a special appearance at a House Foreign Affairs Committee hearing on Wednesday, House Speaker Nancy Pelosi said the new law “signals the death of the one country, two systems” model followed by China with respect to Hong Kong

“The law is a brutal, sweeping crackdown against the people of Hong Kong, intended to destroy the freedoms they were promised,” Pelosi said.

The bill, which according to Bloomberg is similar to a measure passed by the Senate last week, would have to be approved by the Senate before going to President Donald Trump for a signature. The House bill, which was slightly modified from the Senate version sponsored by Senators Pat Toomey, a Pennsylvania Republican, and Chris Van Hollen, a Maryland Democrat, was changed because of a procedural snag that requires all revenue-producing bills to originate in the House.

END

CHINA/USA

 

Michael Every…

Rabobank: Every Member Of Congress Is Now Open To Arrest If They Visit Hong Kong

Submitted by Michael Every of Rabobank

Yesterday the Global Daily noted that markets were under a Sword of Damocles in terms of the rapid deterioration in US-China relations. Markets were, of course, happier to focus on what might be a virus vaccine, despite the fact that the actual impact of the virus does not bother them, and on more upbeat US data, which runs against the trend in the virus that they aren’t bothered about.

Around 12 hours after publication came news that the White House plans to proceed with “harsh” Magnitsky sanctions against members of the Chinese Communist Party it sees as responsible for human rights abuses in Xinjiang. That decision may have been prompted by the US seizure yesterday of a cargo of 11.8 tonnes of human hair for wig-making which it alleges may have been sourced from “re-education” centres in Xinjiang holding ethnic Muslim populations: the US does not seem to believe Uighurs are all being taught hair-dressing. Beijing has already made clear it will be furious if this occurs: could it perhaps go so far as to target US firms in response?

Yet within hours that threat was eclipsed by the unanimous passage by the US House of Representatives of the bill already passed in the Senate to impose mandatory Magnitsky sanctions on Chinese banks who do business with officials implementing Hong Kong’s new national security law. Constitutionally, the Senate now needs to pass the bill again, which it appears will take no time at all given the sentiment in DC, and it then goes to President Trump with a veto-proof majority behind it – meaning it WILL become law. Perhaps even as soon as this this week, but certainly in the not-too-distant future. Underlining the present political dynamic, each member of Congress has, in all likelihood, broken said Hong Kong law by their actions and could technically be open to arrest if they were to visit.

The language of the bill, which is now crucial, states: “If the Secretary of State determines that a foreign person is materially contributing to, has materially contributed to, or attempts to materially contribute to the failure of the Government of China to meet its obligations under the Joint Declaration of the Basic Law” then the US is to impose sanctions on it. That is broad enough to cover anyone in the Chinese or Hong Kong government, security services, and/or civil servants. The bill also states any foreign financial institution that conduct “significant transactions” with anyone in the Hong Kong government or the National People’s Congress (NPC), or in the Hong Kong China Liaison Office, will likewise be cut off from the US financial system.

How are these individuals banked now? By Chinese banks. Will the NPC or Hong Kong government really be paid in cash from now on? Hardly. In which case, the Chinese banks that bank them would, under this bill, be cut off from USD in exactly the same way Iran has been. It is there in black and white. There might well be a lead time of a year to allow global positions to be unwound – but that would be the final destination.

Those thinking that in five months Joe Biden will act differently might also want to note that Nancy Pelosi pushed the bill too, and that yesterday he stated: “Beijing’s new national security law –enacted in secret and sweeping in scope– is already dealing a death blow to the freedoms and autonomy that set Hong Kong apart from the rest of China”; that he would “prohibit US companies from abetting repression and supporting the Chinese Communist Party’s surveillance state”; and would “impose swift economic sanctions” if China dared to use the law on US citizens or firms.

The thread holding the Sword of Damocles is fraying faster than any virus vaccine is likely to arrive, and will continue to do so whether we get one or not.

Meanwhile Australia added its name to the list of countries saying they will take Hong Kongers wishing to leave; that after the UK confirmed it will indeed open a path to citizenship for up to 2.9m people. This should matter to markets too, even in their amoral liquidity-addled glory. While there is unlikely to be a sudden flood of exits (it’s hard to say goodbye to home; it’s very hard to travel right now; and it’s extremely hard to find a new job) one only needs to calculate what 500,000 people leaving, each taking USD1m in cash with them –which is a VERY cheap house in Hong Kong– would do to Hong Kong’s USD reserves. Wipe them out entirely. Word on the street is that the HKMA would turn to the PBOC in this case. And who would the PBOC turn to if US sanctions are in place?

Meanwhile, overnight we saw the Fed minutes underline that the FOMC is, for now, not keen on adopting yield curve control, and is certainly very opposed to negative rates. As our Fed watcher Philip Marey argues, in wanting to avoid the latter, the only logical alternative is the former. And the sooner US-China tensions erupt, the sooner we might be likely to find out how what that will look like in practice.

Quite the melee will ensure, I assure you.

4/EUROPEAN AFFAIRS

FRANCE/TURKEY/NATO

France suspends vital role in NATO Naval Mission as they were outraged over Turkish aggression in an ongoing Mediterranean operation.  The incident occurred on June 10 when a Turkish warship locked on (engaged) a French frigate via radar.

(zerohedge)

France Suspends Role In NATO Naval Mission, Outraged Over “Turkish Aggression”

France has notified NATO command that its military is suspending involvement in an ongoing Mediterranean operation called Sea Guardian in protest of a June 10 incident wherein Turkish warships off Libya’s coast “engaged” a French frigate via radar. This means the Turkish ship essentially had missile lock on the NATO allied ship.

The AP detailed in the days after the hostile encounter between two NATO members that “the frigate Courbet was ‘lit up’ three times by Turkish naval targeting radar when it tried to approach a Turkish civilian ship suspected of involvement in arms trafficking.” The Turkish military ships were allegedly escorting the smaller civilian ship, suspected by the French of illegal gun-running.

 

French frigate FS Courbet, image via US Navy.

The French vessel was then forced to back off as it tracked a civilian Turkish vessel suspected of smuggling arms into Tripoli amid a blanket UN arms embargo. The two sides have since blamed the other for the act of “aggression”.

Paris had declared it a “hostile act” – something which Ankara has rejected. The French Foreign Ministry further accused the Turkish ships of “extremely aggressive” intervention against a NATO ally.

Ironically, Operation Sea Guardian is meant to enforce the arms embargo on Libya — but Turkey allegedly intervened against the French ship to thwart inspecting and seizing weapons in transit. Needless to say the incident highlights severe cracks in the NATO alliance.

The incident came also amid worsening relations between Turkey and France over Turkey’s increased “adventurism” of late in defending Tripoli against Haftar forces, which has involved drones, aircraft, and even sending Turkish national troops to the region along with mercenaries from Syria.

 

France has also over the past years criticized Turkish intervention in northern Syria against the Kurds, via The National.

Specifically, the letter addressed to NATO’s Secretary-General makes “four demands to clarify the role of the Sea Guardian operation, including its cooperation with an EU mission that is enforcing a UN arms embargo to Libya.”

Though an arms embargo has been in effect on Libya since last year, the multiple players supporting opposing sides in the proxy war have essentially treated in as a joke. Since the UN declaration, more arms than ever have poured into the conflict, as well as mercenaries.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISRAEL

Israel leaders state that the West bank annexation must wait due to Covid 19

(zerohedge)

Israeli Leaders Say West Bank Annexation Must Wait Due To COVID-19

What was surely supposed be the most controversial and provocative move in all recent Israeli-Palestine conflict history was supposed to be initiated yesterday, July 1st, according to prior target date statements of Prime Minister Benjamin Netanyahu to annex up to one-third of West Bank territory, including the Jordan Valley.

Netanyahu and other top Israeli officials claimed to have a ‘green light’ from the Trump administration, but at this point it’s anything but certain. “We are in discreet talks with US officials here,” Netanyahu told a Likud party meeting on Monday. “We are doing it discreetly. The matter is not up to Blue and White, they are not a factor either way,” he said in reference to the power sharing coalition with ‘Alternate Prime Minister’ and Defense Minister Benny Gantz.

Gantz told his party at the start of this week that annexation “will have to wait” due to the ongoing coronavirus pandemic in the country.

 

Prime Minister Benjamin Netanyahu and his coalition partner, Defense Minister Benny Gantz, via AFP.

“Anything unrelated to the battle against the coronavirus will wait,” Gantz said.

This as the country’s health ministry is urging authorities to impose a second locking down of cities while cases soar again both inside Israel and the Palestinian territories.

In reality citing the coronavirus crisis also appears a well-timed excuse to temporarily delay a plan that will surely set the region on fire, given the unforeseen consequences for both Palestinians and Israel. Both Hamas and the Palestinian Authority have said such a move would be a declaration of war. Hamas has openly stated it will attack Israeli towns and settlements if Palestinian territory is seized.

Meanwhile The Jerusalem Post has confirmed that annexation will not happen this week, largely because Washington has not yet fully approved the plan.

For now, Israeli politicians will blame coronavirus while still claiming a US green light, despite US and Israeli officials still in high level meetings to hash things out, and contingency plans for what could unleash a next Palestinian intifada.

END

6.Global Issues

 

7. OIL ISSUES

Expect a wave of shale bankruptcies despite oil touching $40.

(Paraskova/OilPrice.com)

$40 Oil Isn’t Enough To Prevent A Wave Of Shale Bankruptcies

Authored by Tsvetana Paraskova via OilPrice.com,

The coronavirus pandemic and the oil price collapse are accelerating the pace of bankruptcy filings in the U.S. shale patch this year. The number of filings had already started to trend up in 2019 after a drop in prices in Q4 2018, but this year, the U.S. energy industry is setting some grim records as indebted cash-strapped producers face a day of reckoning from the borrowing exuberance of the past years.

So far this year, bankruptcies in the U.S. energy industry have exceeded 20 filings from companies with more than US$50 million in liabilities. This is the highest number of first-half filings for protection from creditors since the first half of 2016, during the previous oil price collapse, according to data compiled by Bloomberg. In June alone, seven oil and gas companies filed for Chapter 11, matching the record from the monthly peak in bankruptcy filings set in April 2016.

Many U.S. oil and gas drillers were already living on borrowed time even before the COVID-19 pandemic, thanks to heavy borrowings from banks over the past years. But the crash in oil demand and the collapse in oil prices shortened the time for indebted companies to be able to kick the can down the road, accelerating the upward trend in bankruptcy filings.

Analysts and legal professionals expect more energy bankruptcies in the U.S. shale patch in the coming months even as WTI Crude prices more than doubled to nearly $40 a barrel by the end of June from the average in April.

The number of filings for protection from creditors in the energy sector has been the second-highest so far this year, second only to bankruptcies in the retail and entertainment industry, according to Bloomberg estimates.

In the last week of June alone, several companies filed for Chapter 11 protection, including fracking pioneer Chesapeake Energy, the biggest victim of the price crash so far and the most prominent example of the U.S. shale industry’s modus operandi of the past few years—borrow to drill.

Chesapeake has reached an agreement with creditors to restructure some US$7 billion out of its US$9 billion debt.

Granted, Chesapeake could have resorted to bankruptcy filing even in the absence of the pandemic and the collapse in demand and prices.

“This filing has been a long time coming,” Alex Beeker, principal analyst on Wood Mackenzie’s corporate upstream team, said.

“It was likely going to happen with or without Covid-19.”

“If I were to describe Chesapeake in one word, that word is ‘excess’ – excess liabilities, excess costs, excess gas in an oversupplied market, said Beeker.

While Chesapeake was the headline in the U.S. energy bankruptcies this past week, two other energy firms filed for protection from creditors—Permian producers Lilis Energy and Sable Permian Resources.

Before that, between January and May, 18 oil and gas firms in North America filed for bankruptcy, including Diamond Offshore Drilling and Whiting Petroleum, data from law firm Haynes and Boone showed.

The window of financing for the U.S. energy industry is closed, as creditors and investors had soured on the shale patch more than a year before the pandemic struck, and prices crashed for the second time in four years.

In this low-for-longer price environment, a growing number of oil and gas firms are looking to restructure debt via Chapter 11 proceedings, especially in Texas, where the number of energy bankruptcies is the highest.

“Bankruptcy filings are up, and prevailing opinion is that the trend is only beginning. O&G-related bankruptcies represent a sizeable portion of the Chapter 11 filings in Texas, but retail bankruptcies and service-industry bankruptcies are hot on their heels,” John D. Cornwell, a shareholder and member of the bankruptcy, insolvency and restructuring practice group at law firm Munsch Hardt Kopf & Harr, told Texas Lawyer in a recent interview.

The industry should spend very wisely over the next few months because “Cash is truly king in today’s uncertain world,” Cornwell said.

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1287 DOWN .0036 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 /GREEN

 

 

USA/JAPAN YEN 107.42 UP 0.053 (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 1.2519   UP   0.0056  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3591 DOWN .0002 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  THURSDAY morning in Europe, the Euro FELL BY 36 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED UP 64.59 POINTS OR 2.13% 

 

//Hang Sang CLOSED UP 697.00 POINTS OR 2.85%

/AUSTRALIA CLOSED UP 1,68%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 697.00 POINTS OR 2.85%

 

 

/SHANGHAI CLOSED UP 64.59 POINTS OR 2.13%

 

Australia BOURSE CLOSED UP 1.68% 

 

 

Nikkei (Japan) CLOSED UP 24.23  POINTS OR 0.11%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1769.95

silver:$17.91-

Early THURSDAY morning USA 10 year bond yield: 0.68% !!! UP 1 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.43 UP 0  IN BASIS POINTS from WEDNESDAY night.

USA dollar index early TUESDAY morning: 96.91 DOWN 28 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.44% DOWN 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +04%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.45%//DOWN 5 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,21 DOWN 6 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 76 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.64% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1241  DOWN     .0010 or 10 basis points

USA/Japan: 107.54 UP .170 OR YEN DOWN 17  basis points/

Great Britain/USA 1.2478 UP .0013 POUND UP 13  BASIS POINTS)

Canadian dollar DOWN 5 basis points to 1.36000

 

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The USA/Yuan,CNY: AT 7.0620    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0683  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8496 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +04%

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from WEDNESDAY at 0.68 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.43 UP 0 in basis points on the day

Your closing USA dollar index, 97.23 UP 3  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 69.19 OR  1.12%

German Dax :  CLOSED UP 336.10 POINTS OR 2.74%

 

Paris Cac CLOSED UP 119.87 POINTS 2.43%

Spain IBEX CLOSED UP 266.80 POINTS or 3.69%

Italian MIB: CLOSED UP 540.68 POINTS OR 2.80%

 

 

 

 

 

WTI Oil price; 39.91 12:00  PM  EST

Brent Oil: 42.61 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    70,47  THE CROSS LOWER BY 0.32 RUBLES/DOLLAR (RUBLE HIGHER BY 32 BASIS PTS)

 

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

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  40.27//

 

 

BRENT :  42.73

USA 10 YR BOND YIELD: … 0.67  down one basis point…

 

 

 

USA 30 YR BOND YIELD: 1.43..up one basis point..

 

 

 

 

 

EURO/USA 1.1137 ( down 14   BASIS POINTS)

USA/JAPANESE YEN:107.53 UP .164 (YEN DOWN 16 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.26 UP 6 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2463 UP 1  POINTS

 

the Turkish lira close: 6.854

 

 

the Russian rouble 70.59   UP 0.21 Roubles against the uSA dollar.( UP 21 BASIS POINTS)

Canadian dollar:  1.3574 UP 19 BASIS pts

 

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

 

The Dow closed UP 93.48 POINTS OR 0.36%

 

NASDAQ closed UP 53.04 POINTS OR 0.52%

 


VOLATILITY INDEX:  27.54 CLOSED DOWN 1.08

LIBOR 3 MONTH DURATION: 0.298%//libor dropping like a stone

LIBOR/OIS: .222%

TED SPREAD (3 MONTH TREASURY VS LIBOR) = .156%

 

USA trading today in Graph Form

Stocks Soar To Best Week In 3 Months As COVID-Comeback Concerns Mount

Perhaps the market is seeing the scaremongering from health officials for what it is is and calling locking-down-politicians’ bluffs? US COVID cases are soaring… (just don’t mention the low death rates)…

Source: Bloomberg

And that maybe why stocks were majestically pumped to their best week in almost 3 months as PMIs and jobs data beat (just don’t mention jobless claims or factory orders)… After last Friday’s COVID scare plunge, this week saw Nasdaq outperform, surging almost 6% to a new record high…

But they did suffer a very weak close – erasing the jobs spike…

Year-to-date, gold is the best-performing asset, slightly outperforming bonds, with the dollar modestly higher while The Dow is down 9%

Source: Bloomberg

However, Nasdaq is just outperforming gold in 2020, up 19% at today’s close…

Source: Bloomberg

Tech valuations are a little rich…just a smidge…

Source: Bloomberg

The S&P bounced almost perfectly off its 200DMA…

The Dow was unable to break back above its 200DMA…

Because, once again…

Today’s price action in factor land mimicced yesterday’s – with an opening gap down in momo that was quickly panic bid…

Source: Bloomberg

Very little differentiation between cyclicals and defensives this week – just buy it all…

Source: Bloomberg

And opening surge in banks was sold all day…

Source: Bloomberg

The Treasury market closed early today (at 1400ET) but on the week, the long-end notably underperformed (30Y +6bps, 2Y -1bps)…

Source: Bloomberg

The 10Y Yield tried twice and failed to bet back above 70bps…

Source: Bloomberg

The dollar index fell on the week for the first time in 4 weeks…

Source: Bloomberg

Cryptos dipped today, back into the red for the week…

Source: Bloomberg

All the major commodities were higher this week, led by oil…

Source: Bloomberg

WTI is back above $40…

Gold was briefly back above $1800 this week…

Finally, nothing sums up the market idiocy like TSLA…

Earnings, schmearnings…

Source: Bloomberg

END

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

MARKET TRADING//USA

a)Market trading/FOMC/USA

Jobs Report Shock: June Payrolls Soar By Record 4.8 Million, Crushing Expectations As Unemployment Rate Tumbles

In our preview of today’s job’s report, we remarked that the only thing that was certain about the June payrolls number is just how uncertain it was: dropping the top and bottom 10% of payrolls forecasts still leaves a range of 1.65-5.00 million jobs, “an extremely wide band that reflects the multiplicity of shocks hitting US labor markets”, according to Steven Englander. Art Cashin echoed just how much confusion there was by noting that “most traders are somewhat sceptical of all payroll data, feeling that the sharp reopenings and then reopening rollbacks have distorted the data.”

So with much confusion out there, and nobody really sure what to expect, moments ago the BLS reported that in keeping with the huge band of possibilities, in June the US economy added a whopping – record – 4.767 million jobs, crushing expectations of 3.058 million, and indicating that the V-shaped recovery, if only in the BLS’ servers, is well on track.

The change in total nonfarm payroll employment for April was revised down by 100,000, from -20.7 million to -20.8 million, and the change for May was revised up by 190,000, from +2.5 million to +2.7 million. With these revisions, employment in April and May combined was 90,000 higher than previously reported.

Just as shocking is that the unemployment rate which was expected to surge to a record 19.1% in May from 14.7% in April, actually declined in May to 13.3% and dropped further to 11.1% in June, far better than the 12.5% expected.

Commenting on the number, the BLS said that “total nonfarm payroll employment rose by 4.8 million in June, and the  unemployment rate declined to 11.1 percent. These improvements in the labor market reflected the continued resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it. In June, employment in leisure and hospitality rose sharply. Notable job gains also occurred in retail trade, education and health services, other services, manufacturing, and professional and business services.”

end

What a joke:  the”survey error” reported for the May jobs report continues for the just released June report

(zerohedge)

BLS Admits “Survey Error” Continues, Resulting In Artificially Lower Unemployment Rate

Last month we reported that in a report full of statistical glitches and outright errors, the BLS itself admitted that a misclassification error led to the May unemployment rate being as much as 3% higher than reported. Well, guess what: despite knowing it was openly misrepresenting what is the most important US economic data, the BLS continued reporting numbers that contained a “misclassification error.”

Here is what the BLS said about adjustments to the household survey as a result of the Coronavirus shutdowns in June:

As was the case in March, April, and May, household survey interviewers were instructed to classify employed persons absent from work due to temporary, coronavirus-related business closures as unemployed on temporary layoff. BLS and Census Bureau analyses of the underlying data suggest that this group still included some workers affected by the pandemic who should have been classified as unemployed on temporary layoff.

So the “misclassification” goes on.

However there was some good news: the June error was smaller than the May error:

The degree of misclassification declined considerably in June. BLS and Census Bureau staff have been reviewing survey responses that might have been misclassified. The misclassification hinges on a question about the main reason people were absent from their jobs. If people who were absent due to temporary, pandemic-related closures were recorded as absent due to “other reasons,” they could have been misclassified. When interviewers record a response of “other reason,” they also add a few words describing that other reason. The review of these brief descriptions found that the share of responses that may have been misclassified was much smaller in June than in prior months.

Yet the error is there, and result in an unemployment rate that is “about” 1% higher than reported, which however is a drop from the 3% error in May:

If the workers who were recorded as employed but absent from work due to “other reasons” (over and above the number absent for other reasons in a typical June) had been classified as unemployed on temporary layoff, the overall unemployment rate would have been about 1 percentage point higher than reported.

So the BLS knows there is an error and is hoping to fix it…

“BLS and the Census Bureau are continuing to investigate the  misclassification and are taking additional steps to address the issue.”

… but not yet:

According to usual practice, the data from the household survey are accepted as recorded. To maintain data integrity, no ad hoc actions are taken to reclassify survey responses.       

One can only imagine what other “survey errors” were made but not fixed for the sake of “data integrity.”

end

Where The June Jobs Were: Who Is Hiring And Who Is Firing

After two consecutive record payroll prints, the US added a whopping 7.5 million jobs in the past two months after losing a record 20.7 million jobs in April. So who exactly was hiring, and who was firing?

First, we’ll answer the latter, because in April there was just one category that saw a drop in jobs: mining and logging, which shrank by 10,000 jobs, primarily due to a 7.3K drop in “support activities for mining” which is likely the result of continued contraction in the shale patch.

How about hiring? The short answer, everyone else, and here are the details:

  • Employment in leisure and hospitality increased by 2.1 million, accounting for about two-fifths of the gain in total nonfarm employment; employment in food services and drinking places – i.e. waiters and bartenders – rose by 1.5 million, following a gain of the same magnitude in May.
  • Employment in retail trade rose by 740,000, after a gain of 372,000 in May and losses totaling 2.4 million in March and April combined. Notable job gains occurred in clothing and clothing accessories stores (+202,000), general merchandise stores (+108,000), furniture and home furnishings stores (+84,000), and motor vehicle and parts dealers (+84,000).
  • Education and health services employment increased by 568,000. Health care employment increased by 358,000 over the month, with gains in offices of dentists (+190,000), offices of physicians (+80,000), and offices of other health practitioners (+48,000). Elsewhere in health care, job losses continued in nursing care facilities (-18,000). Employment also increased in the social assistance industry (+117,000), reflecting gains in child day care services (+80,000) and in individual and family services (+28,000). Employment in private education rose by 93,000 over the month.
  • Employment in “other services” industry in June (+357,000), with three-fourths of the increase occurring in personal and laundry services (+264,000).
  • Manufacturing employment rose by 356,000. June employment increases were concentrated in the durable goods component, with motor vehicles and parts (+196,000) accounting for over half of the job gain in manufacturing. Employment also increased over the month in miscellaneous durable goods manufacturing (+26,000) and machinery (+18,000). Within the nondurable goods component, the largest job gain occurred in plastics and rubber products (+22,000).
  • Professional and business services added 306,000 jobs in June; employment rose in temporary help services (+149,000), services to buildings and dwellings (+53,000), and accounting and bookkeeping services (+18,000). By contrast, employment declined in computer systems design and related services (-20,000).
  • Construction employment increased by 158,000 in June, following a gain of 453,000 in May. Over-the-month gains occurred in specialty trade contractors (+135,000), with growth about equally split between the residential and nonresidential components. Job gains also occurred in construction of buildings (+32,000).
  • Transportation and warehousing added 99,000 jobs, following declines in the prior 2 months (-588,000 in April and May combined). In June, employment rose in warehousing and storage (+61,000), couriers and messengers (+21,000), truck transportation (+8,000), and support activities for transportation (+7,000).
  • Wholesale trade employment rose by 68,000. In June, job gains occurred in the durable goods (+39,000) and nondurable goods (+27,000) components.
  • Financial activities added 32,000 jobs in June, with over half of the gain in real estate (+18,000).
  • Government employment changed little in June (+33,000), as job gains in local government education (+70,000) were partially offset by job losses in state government (-25,000). Government employment is 1.5 million below its February level.
  • Mining continued to lose jobs in June (-10,000), and as noted above, most of the decline occurring in support activities for mining (-7,000). Mining employment is down by 123,000 since a recent peak in January 2019, although nearly three-fourths of the decline has occurred since February 2020.

And visually:

Next, we look at the industries with the highest and lowest rates of employment growth for the most recent month, courtesy of Bloomberg. Not surprisingly, the one category that saw the biggest increase was “amusement, gambling and recreation services.

One bonus chart courtesy of Bloomberg maps the total number of service providing jobs vs the average hourly wage. Paradoxically, hourly wages have continued to go up even as more than 10 million service-providing jobs have been lost.

END

As i  have been telling you for years:  the jobs data is nothing but hogwash

(zerohedge)

jobs Data Officially Broken? More People Getting Unemployment Benefits Than There Are Unemployed Workers

It’s official: “data” released from the Bureau of Labor Statistics has just crossed the streams and has given birth to the Stay Puft marshmallow man jumping the shark. Alas, it also means that jobs “data” is now completely meaningless.

For all the analysis of today’s job report, is it good, is it bad, is this data series too hot, and does it mean that the Fed will soon be forced to hike, we have just one response. None of it matters.

Why? Because a simple sanity check reveals that as of this moment the jobs report no longer makes logical sense.

Consider the continuing jobless claims time series, also also referred to as “insured unemployment”, and represents the number of people who have already filed an initial claim and who have experienced a week of unemployment and then filed a continued claim to claim benefits for that week of unemployment

By its very definition, insured unemployment is a subset of all Americans who are unemployed. In a Venn diagram, the Continuing Claims circle would fit entirely inside the “Unemployed” circle, which also includes Initial Claims, Continuing Claims, and countless other unemployed Americans who are no longer eligible for any benefits. 

Alas, as of this moment, the definitionally smaller circle is bigger than “bigger” one, and as the DOL reported todaythere were 19.29 million workers receiving unemployment insurance. And yet, somehow, at the same time the BLS also represented that the total number of unemployed workers is, drumroll, 17.75 million.

If you said this makes no sense, and pointed out that the unemployment insurance number has to be smaller than the total unemployed number, then you are right. And indeed, for 50 years of data, that was precisely the case.

Until this week.

And yes, there is a “forced” explanation to justify how this may actually happen in the current situation where everyone is abusing jobless benefits, but in theory this should not be happening, and we fully expect that in the coming weeks, the already highly politicized BLS will quietly close this gap.

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Factory orders disappoint rising only 8.0% instead of expected 8.6%.  No V shaped recovery yet…

(zerohedge)

Rebound In US Factory Orders Disappoints In May

Having collapsed in March and April, US factory orders were expected to surge higher in May as reopenings began. From a 13.0% plunge in April, May’s orders were expected to rebound 8.6% MoM but disappointed, printing +8.0% MoM.

This is still the biggest MoM rise since Aug 2014 but YoY, US factory orders remain down 15.8%

 

Source: Bloomberg

Having fallen to its lowest level since 2005, total factory orders rebounded only modestly…

 

Source: Bloomberg

Ex-Transports, factory orders disappointed even more, rising just 2.6% MoM (against expectations of a 6.5% rise).

Additionally, final data for durable goods were also revised lower from the preliminary data.

This is not the ‘v’ you’re looking for.

iii) Important USA Economic Stories

 

CORONAVIRUS UPDATE/USA/GLOBE

US Confirms Record 50k Jump In COVID-19 Infections As Total Nears 3 Million: Live Updates

Summary:

  • US reports ~50k deaths largest daily total yet
  • Texas hospitalizations pass California’s for 1st time
  • Dr. Gottlieb: ‘Outbreak will peter out by January, one way or another’
  • Russia sees daily cases slowing modestly
  • Brazilian death toll tops 60k
  • India cases top 600k
  • Mexico passes Spain for world’s 6th-biggest death toll
  • Tokyo reports another 100 cases

 

After no fewer than 5 states (including California and Texas) reported record daily totals (with Texas and Arizona also reporting their largest daily body counts in weeks, if not since the beginning of the pandemic), the US reported a new record daily tally, with the daily number surpassing 50k for the first time.

Nationwide, 7% of tests administered are coming back positive, a new high reached even as testing capacity has improved (though parts of Texas and Florida are reportedly still struggling with long lines and poor response times).

According to JHU data, the US confirmed 49,286 cases in 24 hours, while the US death toll hit 128,062.

The 7-day average for deaths nationwide ticked higher, but only modestly.

Hospitalizations in Texas surpassed California for the first time.

In Georgia, Gov Brian Kemp has watched positive tests triple as testing capacity has expanded only slightly.

More than one-quarter of US states have reported record daily totals in the past week, and in Arizona, one-quarter of all COVID-19 tests are coming back positive.

Across California, and more broadly across the country, more states are closing down indoor dining entirely, or, like in New York, pushing back dates for planned reopening, leaving any restaurants without outdoor space entirely dependent on delivery (raising the question: why even own a restaurant?).

In California – which just shut down indoor dining in 19 counties Confirmed cases in California have increased nearly 50% over the past two weeks, and COVID-19 hospitalizations have gone up 43%. Newsom reported nearly 5,900 new cases and 110 more deaths in 24 hours.

Appearing on CNBC Thursday morning one day before the long holiday weekend, former FDA commisioner Dr. Scott Gottlieb warned that the outbreak likely won’t finally be over until January – either because we’ve found a vaccine, or because by then, so many people will have been infected that it will naturally mitigate the spread.

“I think we are going to be very good with the coronavirus…I think that, at some point, that’s going to sort of just disappear, I hope.”

In California, Gov Gavin Newsom lamented the spread as “particularly concerning” before expanding closings,

“The bottom line is the spread of this virus continues at a rate that is particularly concerning,” he said.

But the US isn’t the only country seeing a resurgence, as we pointed out yesterday, and several times in recent days. Worldwide, daily case numbers are hitting levels previously unseen. Mexico’s death toll just passed Spain’s, and Brazil’s outbreak is still out of control. Peru and Chile have also seen virus numbers climb, as the outbreak worsens across Latin America.

Russia’s outbreak has slowed somewhat, though the country still reported 6,760 new infections Thursday, pushing its nationwide tally to 661,165. Officials reported 147 deaths over the last 24 hours, bringing the official death toll to 9,683.

In Japan, Tokyo just reported more than 100 cases as another cluster appears to be emerging in Japan’s capital, even though Japan has proved surprisingly resistant to the virus. As expected, India surpassed 600k confirmed infections as the outbreaks in Mumbai in New Delhi continue to rage, along with many other clusters across the country, as officials prepare to conduct a ‘covid-19 audit’ of New Delhi’s entire population of nearly 30 million. Brazil, meanwhile, has seen its death toll pass 60k, with 60,632 deaths.

END
Not good:  USDA crop report on corn shows a huge reduction in acreage estimates of a planting of 92 million acres instead of estimated 97 million acres.
(zerohedge)

USDA Crop Report Shocker Sends Corn Futures Surging 

Chicago corn futures surged 8% in the last two sessions after a massive reduction to the U.S. government’s acreage estimate, reported Reuters.

The U.S. Department of Agriculture’s (USDA) crop report on Tuesday showed farmers planted 92 million acres of corn in 1H20, which was a huge miss in expectations and 5 million acres below the USDA’s March forecast of 97 million acres.

This was the largest miss in a March-to-June corn acreage crop report since 1983 – just before “Trading Places” hit theaters –  resulting in an 8% surge in corn futures trading in Chicago.

Arlan Suderman, the chief commodities economist for StoneX, said the USDA report suggests that farmers are “tightening up their finances and were more conservative than normal in planting this year’s crops.”

“All these lower acreage numbers had people wondering what happened to the acres and to which crop or crops they were reallocated. But the acres were not planted at all,” Karen Braun, a commodity analyst with Reuters, wrote in a note.

Estimates for corn stockpiles are expected to be above average this year as coronavirus pandemic roils demand, USDA noted.

A commodity note via Commerzbank bank said the report “makes it questionable whether a record crop – that had almost been regarded as a dead cert – will be harvested after all.”

With the USDA crop report behind traders – the market will soon focus on weather trends in the northern hemisphere as the most critical part of the growing season is ahead:

“With the USDA reports out of the way, traders will focus on weather forecasts and Chinese demand for the next direction,” commodity research firm Allendale said in a note, adding that, “July promises to be a warmer than usual month with more limited rainfall resulting in net drying and the dryness that evolves in July will set the tone for crop development the remainder of summer.”

New weather models suggest warm and dry conditions for much of the US.

“As the first month of meteorological summer closes, we assess early season weather and crop conditions during June. The most significant warmth stretched from the Central U.S. Plains across to the Upper Midwest, where temperatures averaged between 2-8 °F above normal for the month. Only portions of the Southeast U.S. and Canada were moderately cooler than normal, but unlikely hurt crops at this point. Rainfall for the month was mixed, but likely was more biased to the dry side than the wet, with only pockets of the U.S. Deep South and Great Lakes receiving 1-2 inches of rainfall surpluses. Portions of the Plains and eastern Midwest have experienced similar rainfall anomalies to the downside. Nonetheless, crop impacts are (so far) negligible for corn and soybeans, as good-to-excellent condition scores from USDA bumped up this week to 73% and 71%, respectively, and remain close to most recent years. Spring wheat conditions dropped for the second consecutive week, with good-to-excellent scores at 69%, and the second lowest at this time of year over the last 5 years, only second to 2017. While scores are still elevated, warmth and dryness may already be impacting spring wheat conditions in particular and will need to be monitored into July for continued impacts,” Tom Walsh, head of weather research at Reuters, wrote in a note.

 

FIGURE 1: Forecasted temperature anomaly pattern for July 2020. Temperatures with equal chances of being +/- 1 °F of normal are indicated by “=” signs, temperatures between 1-3 °F above normal are indicated by the “+”, signs, and temperatures more than 3 °F above normal are indicated by the “++” signs.

 

FIGURE 2: Forecasted precipitation anomaly pattern for July 2020. Precipitation 25-75 mm below normal of normal is indicated by a “-“, precipitation within 25 mm of normal is marked by “-“, and precipitation 25-75 mm above normal is indicated by a “+”. 

Walsh said, “warm and dry conditions appear to be looking into the forecast” for July.

“Cool and wetter than normal weather has been quite favorable for the Midwest as of late, but a warming trend is expected over the next 10-14 days according to most numerical model guidance,” he said.

 

FIGURE: 10-day rainfall deviations (in mm) from the latest 00z GFS operational (left) and EC operational (right) model runs, indicating wet weather across much of the Canadian Prairies, Northern U.S. Plains, and possibly the Southeast U.S. Pockets of dry weather will persist across the Central Plains and develop in parts of the Midwest/Great Lakes as well. Model discrepancies between GFS & EC should be monitored in the days to come. SOURCES: NOAA/ECMWF.

USDA report bounces corn futures from a near-decade low.

The next big fundamental move in corn will be upcoming weather reports in the coming weeks.

end
Unbelievable:  U.Mass Nursing Dena, Neal Boylan fired for saying’everyone’s life matters”
what on earth is going on?
(courtesy Turley)

UMass Nursing Dean Fired For Saying “Everyone’s Life Matters”

Authored by Jonathan Turley,

We have been discussing the growing fear of professors and students over the loss of free speech on campuses for years, but recently those concerns have been greatly magnified with the investigation or termination of professors for expressing opposing views about police abuse, Black Lives Matter movement or aspects of the protests following the killing of George Floyd.  There is a sense of a new orthodoxy that does not allow for dissenting voices as campaigns are launched to fire faculty who are denounced as insensitive or even racist for such criticism.  The most recent controversy involves the recently installed University of Massachusetts-Lowell Dean of Nursing Leslie Neal-Boylan. Dr. Neal-Boylan had only been in her position for a few months when she was fired. 

The reason, according to many reports, is that she sent an email on June 2 to the Solomont School of Nursing on the recent anti-racism demonstrations across the country that include the words “everyone’s life matters.”

As a blog dedicated to free speech, it has been difficult to keep up with the rising number of cases of the curtailment of speech or academic freedom on our campuses.  What is equally alarming is the relative silence of most faculty members as individual professors are publicly denounced by their universities, forced into retirement, or outright terminated for expressing dissenting views.  This case however raises an equally serious concern over the loss of due process for academics who find themselves the focus of a campaign for removal — or simply summary dismissal.

Dr. Neal-Boylan was heralded last September as a “visionary leader” by the university in taking over the deanship.  Her writings include strong advocacy for those with disabilities in the nursing field. Those writings show tremendous empathy and concern for inclusivity in the profession.

This controversy began when Dr. Neal-Boylan wrote the email which started with the following words:

“Dear SSON Community,” the email provided to Campus Reform begins.

“I am writing to express my concern and condemnation of the recent (and past) acts of violence against people of color. Recent events recall a tragic history of racism and bias that continue to thrive in this country. I despair for our future as a nation if we do not stand up against violence against anyone. BLACK LIVES MATTER, but also, EVERYONE’S LIFE MATTERS. No one should have to live in fear that they will be targeted for how they look or what they believe.”

One can understand that many felt that the statement detracted from the need to focus on the treatment and loss of black lives. However, one can also read these words as a nursing dean expressing opposition to all violence.

However, the email was immediately denounced in a tweet as “uncalled for” and “upsetting” by “Haley.”  The university quickly responded to Haley and said

“Haley – Thank you for bringing this to our attention. The university hears you and we believe black lives matter. See the letter the chancellor sent out Monday.”

The letter isa statement in support of Black Lives Matter.  Soon thereafter the University reportedly fired Dr. Neal-Boylan.

University spokesperson Christine Gillette issued a statement to the site Campus Reform Wednesday that stated

“The university ended the employment of Dr. Neal-Boylan on June 19 after 10 months in her role as dean of the Solomont School of Nursing. As with all such decisions, it was made in the best interest of the university and its students.”

What is particularly concerning is a June 19 letter referenced on the site that was allegedly written by Neal-Boylan and sent to Provost Julie Nash. The letter states

“It is important to point out that no one ever gave me an opportunity to share my views of how the college and school were interacting nor explain myself regarding the BLM email. My meeting with you, [Dean] Shortie [McKinney], and Lauren Turner was clearly not intended to give me an opportunity to defend my actions. I was condemned without trial.”

The statement from the university does not state what specifically is “in the best interest of the university and its students.”  However, the failure to specifically state the grounds and the process used to reach the decision is alarming.  The University let the public record stand — and the view that Dr. Neal-Boylan was fired for expressing the view that “Black Lives Matter, but also Everyone’s Life Matters.”

What is “in the best interest of the university and its students” should include free speech and due process.  The mere fact that we do not know if Dr. Neal-Boylan was afforded either right is chilling.  If there were other grounds against her, the university should state so.  Instead, the clear message to faculty is that the dean was fired for expressing concerns over the loss of lives across the country in these protests.

I can understand the sensitivity to those who feel that the inclusion of other lives tends to take away the focus on the need for action on the treatment of African-Americans in our society.  However, it is possible that, as a leading health care figure, Dr. Neal-Boylan was speaking out to seek to end all violence in the protection of human life.  Medical and health care professionals tend to oppose all loss of life and violence.  The question is whether an academic should be able to express such a view and, equally importantly, whether there is a process through which a professor can defend herself in explaining the motivation and intended meaning of her words.

The uncertainty over the process used in this case creates an obvious chilling effect for other faculty members. In 30 years of teaching, I have never seen the level of fear among faculty over speaking or writing about current events, particularly if they do not agree with aspects of the protests.  Not only is there a sense of forced silence but universities have been conspicuously silent in the face of the destruction of their own public art and statues. Even New York Times editors can be forced out for simply publishing opposing views.

As we have previously discussed, chilling effects on free speech has long been a focus of the Supreme Court.  Free speech demands bright line rules to flourish. The different treatment afforded faculty creates an obviously chilling effect on free speech.  Avoiding the chilling effect of potential punishment for speech is a core concern running through Supreme Court cases.  For example, in 1964, the Supreme Court struck down the law screening incoming mail. A unanimous court, Justice William Douglas rejected the law as “a limitation on the unfettered exercise of the addressee’s First Amendment rights.” It noted that such review “is almost certain to have a deterrent effect” on the free speech rights of Americans, particularly for “those who have sensitive positions:”

Obviously, many of these school are private institutions but freedom of speech and academic freedom have long been the touchstones of the academy. What concerned me most was that I could not find a university statement on a matter that resulted in the canning of one of its deans — just an ominous note that the page of Dr. Neal-Boylan can no longer be found.

end
What hypocrisy!!
(zerohedge)

Adam Schiff Knew About ‘Russian Bounty’ Intel Months Ago, Did Nothing

Rep. Adam Schiff (D-CA) was briefed on unverified intelligence that Russia was offering the Taliban to kill US soldiers in Afghanistan – yet did nothing with that information, according to The Federalist.

Schiff, who chairs the House Intelligence Committee, was a key player in the attempt to remove Trump from office – first claiming he had evidence of collusion with Russia, before pivoting to the Ukraine saga where he spearheaded the House’s impeachment of Trump over his request that Ukraine’s new president investigate Joe and Hunter Biden over allegations of corruption.

And yet, somehow Schiff failed to weaponize the ‘Taliban bounty’ story for months after his staff was briefed on the rumor during a February congressional delegation (CODEL) trip to Afghanistan.

The Federalist points out Schiff’s hypocrisy:

Schiff’s recent complaints that Trump took no action against Russia in response to rumors of Russian bounties are curious given that Schiff himself took no action after his top staff were briefed by intelligence officials.

As chairman of the intelligence committee, Schiff had the authority to immediately brief the full committee and convene hearings on the matter. Schiff, however, did nothing. He did not brief his committee on the matter, nor did he brief the gang of 8, which consists of top congressional leadership in both chambers.

Schiff is demanding that the Trump administration brief all of Congress about the unverified allegations, yet he himself did not ask for a briefing of the Intelligence Committee following the February briefing of his own staff.

Schiff spokesman Patrick Boland failed to respond to a Federalist request for comment on the congressman’s inaction for months, or why travel records from the Afghanistan trip had yet to be disclosed in the Congressional record “as required by law.”

Meanwhile, Director of National Intelligence John Ratcliffe said in a Saturday statement that he had “confirmed that neither the President nor the Vice President were ever briefed on any intelligence alleged by the New York Times in its reporting.” 

And in a Saturday night Tweet in response to establishment tool Lindsey Graham (R-SC), Trump wrote “Intel just reported to me that they did not find this info credible, and therefore did not report it to me or VP.”

So why is the New York Times continuing to promote this unverified intelligence – going so far as to exploit the dead – when even Adam Schiff wouldn’t touch it?

end

a huge surge in new Commercial Mortgage backed Security delinquencies:  we are heading for a real estate disaster.

(zerohedge)

U.S. trade deficit widens in May to $54.6 billion

July 2, 2020 at 8:39 a.m. ET

MarketWatch

The U.S. trade deficit widened by 9.7% in May to $54.6 billion, the government said Thursday. Economists surveyed by MarketWatch had predicted the deficit would widen to a seasonally adjusted $53.1 billion. Exports in May fell 4.4% to $144.5 billion, while imports declined 0.9% to $199.1 billion. Total exports are down 32% from May 2019, while imports are down 25%, as the coronavirus pandemic slows global trade.

end

iv) Swamp commentaries)

Ghislaine Maxwell arrested

 

Ghislaine Maxwell Arrested In New Hampshire

Having been decidedly off-the-radar for months since the controversial ‘suicide’ of Jeffrey Epstein, NBC New York reports that Ghislaine Maxwell, has been arrested by the FBI and charged by federal prosecutors.

Multiple senior law enforcement officials reportedly said the British socialite and heiress was arrested in New Hampshire on Epstein-related charges and is expected to appear in a federal court later today.

The long-time friend and confidante of Jeffrey Epstein was alleged to have helped Epstein groom teen girls for sex with the rich and powerful.

As Adam Klasfeld reports, the indictment reads that:

“[Ghislaine] Maxwell assisted, facilitated and contributed to Jeffrey Epstein’s abuse of minor girls by, among other things, helping Epstein to recruit, groom, and ultimately abuse victims

“The victims were as young as 14.”

“In particular, between in or about 1994 and in or about 1997, MAXWELL was in an intimate relationship with Epstein and also was paid by Epstein to manage his various properties.”

Ghislaine has been accused by three women of procuring and training young girls to perform massage and sexual acts on Epstein and his associates.

Virginia Giuffre (previously named Virginia Roberts), one of Epstein’s alleged victims, claimed in a civil lawsuit that Maxwell “recruited” her into Epstein’s orbit, where she was forced to have sex with Epstein and his powerful friends, including Prince Andrew.

Giuffre asserts in her complaint that Maxwell, the sole defendant in the suit and the daughter of late publishing magnate Robert Maxwell, routinely recruited underaged girls for Epstein and was doing so when she approached the $9-an-hour locker room attendant at Mar-a-Lago in 1999 about giving massages to the wealthy investment banker.

Giuffre alleges that Maxwell ultimately trained her in how to give “massages” to Epstein that involved sex acts and, essentially, prostitution. When Maxwell publicly denied the allegations and called Giuffre a liar in 2015, that gave her the opening to head to federal court and file the defamation suit now headed for trial. –Politico

 

Maxwell’s Her new luxury abode is only a short five-minute drive from Epstein’s £7million pad on Avenue Foch (pictured)

In May we noted that the accused ‘madam’ was reportedly holed up in a luxury apartment on Paris’s Avenue Matignon – just a five minute drive from the dead pedophile’s $8.6 million flat.

Maxwell “is moving locations every month to keep private investigators off her tail and is ­staying at the residences of trusted colleagues and contacts,” according to a source.

“She wants to remain in France for as long as she can to take advantage of extradition laws and has a huge network of contacts willing to keep her hidden,” they added. “Under French law anyone born on French soil is safe from extradition to another country, regardless of the alleged crime.

As Esquire’s Gabrielle Bruney explained in May, Maxwell is the youngest of Elisabeth and Robert Maxwell’s nine children, and was born in France in 1961. The family lived in an English mansion, and her father was the founder of a media empire and served in Parliament. Maxwell attended one of the UK’s most exclusive boarding schools and then Oxford University. As members of British high society, Maxwell mingled with some of the nation’s most celebrated families, and became friends with Prince Andrew.

Her father died in 1991, after falling off his yacht and drowning. It’s been speculated that his death may have been a suicide, as on the day he died he was due to meet with the Bank of England over the matter of his being in default on millions in loans. After his death, the British media dubbed him the “crook of the century,” when it was revealed that he’d taken hundreds of millions of pounds from his employees pension funds. Maxwell told one news outlet after her father’s death that she felt he was murdered.

She moved to the United States the year of her father’s death, and soon met Jeffrey Epstein. The relationship marked a second reversal of fortunes for Maxwell, whose family lost much of its wealth after her father’s death. In 2000, she moved into a $4.95 million Manhattan townhouse purchased “by an anonymous limited liability company, with an address that matches the office of J. Epstein & Co. Representing the buyer was Darren Indyke, Mr. Epstein’s longtime lawyer.” She was his companion for years, managing his households and introducing him to her society friends

Maxwell and her father in 1984.

According to a lawsuit she filed this year in hopes of winning funds from the late financier’s estate, “While under Epstein’s employ, Maxwell was responsible for managing Epstein’s properties located in New York, Paris, Florida, New Mexico, and the U.S. Virgin Islands.”

“During the course of their relationship, including while Maxwell was in Epstein’s employ,” the lawsuit reads“Epstein promised Maxwell that he would support her financially. Epstein made these promises to Maxwell repeatedly, both in writing and in conversation.”

However, a 2003 Vanity Fair profile of Epstein denied that Maxwell was an employee.

After Epstein’s 2008 conviction for soliciting prostitution from an underage girl, the two appeared to end their public association. In 2009, accuser Virginia Roberts Giuffre filed a civil suit against Epsteinaccusing him and Maxwell of grooming her into their alleged sex trafficking ring. However, Maxwell remained a fixture in New York society until around 2015. In 2012, she founded an environmental nonprofit called The TerraMar project, which folded in late 2019.

Epstein with Maxwell in 1995

Though multiple survivors have alleged that Maxwell participated in Epstein’s alleged crimes, she’s never been criminally charged. One thing that could stymie potential efforts to level charges against Maxwell is the infamous 2008 plea deal that Epstein struck with the US Attorney for Miami, Alexander Acosta, which found him serving just 13 months in prison after initially facing charges that could have garnered him a life sentence. Jeffrey Epstein: Filthy Rich producer Joe Berlinger described the deal to Esquire as “unprecedented, unheard of sweetheart deal” that “included a non-prosecution agreement for named and unnamed co-conspirators.”

In April, an appeals court upheld the 2007 deal, writing in its opinion that the decision was “not a result we like, but it’s the result we think the law requires.”

Maxwell at a 2016 event.

Maxwell is currently suing Epstein’s estate for money for her legal fees, and for the price of private security, alleging that her “prior employment relationship” with Epstein has caused to her be subjected to death threats.

As Jonathan Turley notes, frankly, as a criminal defense lawyer, I am surprised that Maxwell risked returning to the United States. She was believed to be living in Paris.  It was well-known that the Justice Department was pursuing the case, including demands to interview Prince Andrew.

Her arrest may be unnerving for figures like Prince Andrew.  She would be the ultimate cooperating witness if she decided to cooperate on broader criminal inquiries.  Giuffre and others have alleged that she was the primary procurer of young girls for Epstein to abuse.

Such prosecutions are not easy given the passage of time. However, the government clearly has live witnesses like Giuffre who might have a significant impact on a jury. The government would have to show more than her mere presence at these homes or parties.

Interestingly, Turley notes that the improper role played by the Justice Department in the original Epstein case deal may actually help it now with any prosecution of Maxwell.

end

 

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

Pfizer and BioNTech Announce Early Positive Data from an Ongoing Phase 1/2 study of mRNA-based Vaccine Candidate against SARS-CoV-2    08:59 AM Eastern Daylight Time

  • In an ongoing U.S. Phase 1/2 placebo-controlled, observer-blinded clinical trial, nucleoside-modified messenger RNA vaccine candidate (BNT162b1) expressing the SARS-CoV-2 receptor binding domain (RBD) is being evaluated in 45 subjects
  • At day 28 (7 days after dose 2), all subjects who received 10 or 30 mg of BNT162b1 had significantly elevated RBD-binding IgG antibodies with geometric mean concentrations (GMCs) of 4,813 and 27,872 units/ml which are 8- and 46.3-times, respectively, the GMC of 602 units/ml in a panel of 38 sera of convalescent patients who had contracted SARS-CoV-2
  • At day 28 (7 days after dose 2), all subjects who received 10 or 30 mg of BNT162b1 had SARS-CoV-2 neutralizing antibodies with geometric mean titers (GMTs) of 168 and 267, which are 1.8- and 2.8-times, respectively, the GMT of the convalescent serum panel…

 

WSJ’s Grep IP: A Recovery That Started out like a V Is Changing Shape – A resurgence of coronavirus cases is making the rebound look more like the reverse image of the square root symbol

https://www.wsj.com/articles/a-reverse-square-root-recovery-11593602775

ABC: California requires restaurants, wineries, movie theaters, zoos, museums, family entertainment centers and card rooms to immediately close indoor operations as the state sees a significant increase in its positivity rate. https://abcn.ws/2NJaWBx

Apple to re-close 30 more retail stores as coronavirus cases spike

https://www.cnbc.com/2020/07/01/apple-to-re-close-30-more-retail-stores-as-coronavirus-cases-spike.html

Pizza Hut, Wendy’s franchisee expected to file for bankruptcy

https://www.foxbusiness.com/markets/pizza-hut-wendys-franchisee-expected-to-file-for-bankruptcy

El Al cancels all flights until further notice… after the pilot’s union announced that pilots would not embark on flights due to the company’s financial crisis…

https://www.jpost.com/israel-news/el-al-cancels-all-flights-until-further-notice-633391

Trump regrets Kushner advice – President Trump has told people in recent days that he regrets following some of son-in-law and senior adviser Jared Kushner’s political advice… and will stick closer to his own instincts… the president… thinking this way: “No more of Jared’s woke s***.”… Trump has indicated that following Kushner’s advice has harmed him politically…

     Several conservative allies of the president have reached out to him and advised him to reduce Kushner’s influence over his re-election campaign… The president also pays close attention to Fox News’ Tucker Carlson. A few weeks ago, in a brutal monologue, Carlson blamed Kushner for giving Trump bad advice… “The president’s famously sharp instincts, the ones that won him the presidency almost four years ago, have been since subverted at every level by Jared Kushner.”  It hasn’t escaped Trump’s attention that Carlson has recently been the highest-rated host on cable news. Trump… views television ratings as a kind of substitute poll, according to a person who’s discussed the subject with him…  https://www.axios.com/trump-kushner-second-thoughts-408d5a33-725d-442a-88e4-d6ab6742c139.html

‪@prageru: In 1851, ‪@nytimes founding editor Henry J Raymond published an editorial in which he supported a slave-owner’s legal right to recover his escaped slaves.  Will you guys also be canceling yourselves?

Seattle police clearing out CHOP after Mayor Durkan declares unlawful assembly; multiple arrests made – Police Chief Carmen Best said “enough is enough” after fatal shootings in the area

https://www.foxnews.com/us/seattle-police-chop-protest-durkan

Seattle mayor slams protesters for showing no ‘regard for’ her ‘safety’ as demonstrators circle her home [Don’t you just love high officials’ hypocrisy?]  Seattle City Councilwoman Kshama Sawant joined a group of dozens of demonstrators gathered at Durkan’s home who were holding signs, chanting, and demanding she leave the area alone or meet protesters’ demands…

https://www.washingtonexaminer.com/news/seattle-mayor-slams-protesters-for-showing-no-regard-for-her-safety-as-demonstrators-circle-her-home

Seattle Mayor Wants to ‘Punish or Expel’ Socialist Council Member for Protesting at Her Home

[Protests are fine until they hit home.] https://t.co/hcx4qkXJhN

 

Virginia Democrats propose lowering criminal penalty for assaulting police officers

Proposal reduces penalty from felony to misdemeanor

https://www.theblaze.com/news/virginia-democrats-criminal-penalty-assaulting-cops

NYPD cops retreat from City Hall protesters after morning clash “retreat”  

Whose streets? Our streets!” roared the protesters as they filled the sidewalks…  https://t.co/nHci9py1DM

LA City Council approves first step in replacing LAPD with community responders for non-violent calls https://www.foxla.com/news/la-city-council-approves-first-step-in-replacing-lapd-with-community-responders-for-non-violent-calls

 

@MattFinnFNC: Chicago: 329 people murdered. 1676 people shot.  YTD. 34% increase in murders, 45% increase in shooting incidents compared to YTD last year. – CPD.

 

Woke Mob Terrorizes Tennessee Smokehouse after False Rumors of ‘Back the Blue’ Donation

https://thefederalist.com/2020/07/01/woke-mob-terrorizes-tennessee-smokehouse-after-false-rumors-of-back-the-blue-donation/#.Xvy5IoJsCDc.twitter

 

Christopher Columbus statue removed outside Columbus [Ohio] City Hall

A gift from the people of Genoa, Italy, in 1955… Mayor Andrew Ginther…For many people in our community, the statue represents patriarchy, oppression and divisiveness,”…

https://nypost.com/2020/07/01/christopher-columbus-statue-removed-outside-columbus-city-hall/

 

Turley: “A Single-Handed Symbol of White Supremacy”: Wisconsin Students Demand Removal of Statue of Abraham Lincoln – Administrators and faculty have been largely silent…There is a palpable sense of fear that objections to such destruction will bring accusations of racism or campaigns to remove faculty.  We have already seen journalists and academics face such campaigns…

https://jonathanturley.org/2020/07/01/a-single-handed-symbol-of-white-supremacy-wisconsin-students-demand-removal-of-statue-of-abraham-lincoln/

Boston Arts Commission votes to remove statue of Lincoln with freed slave  https://t.co/bdDoDNRnKM

NASCAR Ratings Hit “Broadcast Low” After Noose Fiasco   https://www.waynedupree.com/2020/06/bubbal-wallace-nascar-ratings/

@alexsalvinews: Fox News’ Tucker Carlson had the most successful quarter of viewership in the history of cable news with an average of 4.33 million viewers per night during his 8:00pm slot.

    @MillerStream: If Republicans don’t see why Tucker Carlson is the highest rated show in cable news history right now and still think the strategy should be to capitulate to the mob, they’re idiots and don’t deserve our vote.

@seanmdav: America is desperate for leadership, desperate for someone to stand up and defend the greatest and freest nation on earth. And yet Republicans are completely AWOL and nowhere to be found. Every elected Republican who hides from this fight deserves to lose.

@bdomenech: The absence from the fray by elected Republicans on the defense of our national history against a pathetic horde of woke leftists is abhorrent and disgraceful.

In the Colorado GOP Primary, neophyte Lauren Boebert, an unabashed conservative, unseated 5-term GOP Rep. Scott Tipton.  Trump endorsed Scott, who led by 9 points in polls.  Boebert won by 9 points.

@PolitiKurd: Lauren Boebert’s win in the Colorado GOP primary should put every incumbent Republican on notice. People are done with weakness and your days are numbered

Feckless GOP Sen. Lindsey Graham is trying to dilute an anti-child porn bill.  U.S. senator to change anti-child porn bill over Google, Facebook encryption concerns: draft https://reut.rs/2VyAllC

While people are losing jobs for say ‘all lives matter’ or ‘there are good cops’, NYT columnist Paul Krugman, in response to this BBG article: Covid-19 Surge Begins Reaching Older, More Vulnerable Floridians, tweeted: Reality is coming for white supremacists driving golf carts https://t.co/dx4vM4taww

@ThomasSowell: We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did.

Have a great and safe 4th of July!

Well that is all for today

I will see you MONDAY night.

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