JULY 14//ANOTHER TUESDAY RAID BUT THIS TIME IT FAILED!/ GOLD DOWN ONLY $1.65 TO $1809.75//SILVER DOWN 21 CENTS TO $19.15//HUGE INCREASE IN GOLD TONNAGE AT THE COMEX: 22.321 TONNES//CHINA VS USA THE RHETORIC INTENSIFIES//UK SCRAPS HUAWEI 5 g NETWORKING//CORONAVIRUS UPDATES//BIDEN REVEALS HIS ENERGY PLAN//SWAMP STORIES FOR YOU TONIGHT//

GOLD:$1809.75  DOWN $1.65   The quote is London spot price (cash market)

 

 

 

 

 

Silver:$19.15// DOWN 21 CENTS  London spot price ( cash market)

Closing access prices:  London spot

i)Gold : $1809.10  LONDON SPOT  4:30 pm

 

ii)SILVER:  $19.25//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

AUG GOLD:  $1813.70  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE AUG /: $3.95

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $19.55…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  40 CENTS  PER OZ

 

 

 

 

COMEX DATA

 

 

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

receiving today:  3/151

issued 0

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,811.000000000 USD
INTENT DATE: 07/13/2020 DELIVERY DATE: 07/15/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 H GOLDMAN 1
118 H MACQUARIE FUT 3
135 C RAND 1
135 H RAND 2
152 C DORMAN TRADING 67
332 H STANDARD CHARTE 76
355 C CREDIT SUISSE 48
657 C MORGAN STANLEY 11 2
657 H MORGAN STANLEY 1
661 C JP MORGAN 3
686 C INTL FCSTONE 1
690 C ABN AMRO 17
737 C ADVANTAGE 25 7
800 C MAREX SPEC 25 9
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 151 151
MONTH TO DATE: 7,125

 

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 151 NOTICE(S) FOR 15100 OZ (.4696 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  7125 NOTICES FOR 712500 OZ  (22.161 TONNES)

 

 

SILVER

 

FOR JULY

 

 

0 NOTICE(S) FILED TODAY FOR nil  OZ/

total number of notices filed so far this month: 13,903 for 69.515 MILLION oz

 

BITCOIN MORNING QUOTE  $9188  DOWN 54

 

BITCOIN AFTERNOON QUOTE.: $9256 UP $14

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $1.65 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  3.51 TONNES WAS ADDED TO GLD.

 

 

GLD: 1,203.97 TONNES OF GOLD//

 

WITH SILVER DOWN 21 CENTS TODAY: AND WITH NO SILVER AROUND:

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV: A HUGE  PAPER WITHDRAWAL  OF 1.677 MILLION OZ//

WHAT A FRAUD!!

RESTING SLV INVENTORY TONIGHT:

 

SLV: 514.118  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A STRONG SIZED 2416 CONTRACTS FROM 175,725 UP  TO 178,141, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE STRONG SIZED GAIN IN  OI OCCURRED WITH OUR HUGE 67 CENT GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS PRIMARILY DUE TO HUGE  BANKER SHORT COVERING PLUS A SMALL EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A SMALL INCREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2913 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 GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 0  AND SEP 497 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  497 CONTRACTS. WITH THE TRANSFER OF 497 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 497 EFP CONTRACTS TRANSLATES INTO 4.125 MILLION OZ  ACCOMPANYING:

1.THE 67 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

81.645 MILLION OZ INITIALLY IN JULY.

 

MONDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 67 CENTS).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE STRONG GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A SMALL INCREASE IN STANDING OF SILVER OZ STANDING FOR JULY,  STRONG BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 2913 CONTRACTS OR 14,57 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:

6211 CONTRACTS (FOR 9 TRADING DAY(S) TOTAL 6211 CONTRACTS) OR 31.055 MILLION OZ: (AVERAGE PER DAY: 819 CONTRACTS OR 4.099 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 31.055 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 4.43% 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:          1,168.47 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                               31.055 MILLION OZ/

 

EXCHANGE FOR PHYSICAL ISSUANCE FOR THE PAST 60 DAYS IS A LOT LESS.  NO DOUBT THAT THE COST TO CARRY THESE THINGS HAS EXPLODED  AND AS SUCH CANNOT BE DONE AS FREQUENTLY AS BEFORE.

 

RESULT: WE HAD A STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2416, WITH OUR 67 CENT GAIN  IN SILVER PRICING AT THE COMEX ///MONDAYTHE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 497 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A GOOD SIZED OI CONTRACTS ON THE TWO EXCHANGES:  2913 CONTRACTS (WITH OUR 67 CENT GAIN IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 497 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A STRONG SIZED INCREASE OF 2416 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 67 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $19.36 // FRIDAY’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. 0.891 BILLION OZ TO BE EXACT or 127% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JULY  DELIVERY MONTH/ THEY FILED AT THE COMEX: 0 NOTICE(S) FOR nil  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 81.640 million oz
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A SMALL SIZED 3262 CONTRACTS TO 571,683 AND CLOSER TO OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE SMALL SIZED GAIN OF COMEX OI OCCURRED WITH OUR STRONG GAIN IN PRICE  OF $12.50 /// COMEX GOLD TRADING// MONDAY// WE  HAD HUGE BANKER SHORT COVERING, ANOTHER HUMONGOUS SIZED  GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR GAIN IN PRICE OF $12.50 .

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  63

 

WE GAINED A STRONG SIZED 6227 CONTRACTS  (19.37 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 2965 CONTRACTS:

CONTRACT .; AUG 2265 AND OCT: 160 DEC: 300  ALL OTHER MONTHS ZERO//TOTAL: 2965.  The NEW COMEX OI for the gold complex rests at 571,683. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A STRONG SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6,227 CONTRACTS: 3262 CONTRACTS INCREASED AT THE COMEX AND 2965 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6227 CONTRACTS OR 19.37 TONNES. MONDAY, WE HAD A GAIN OF $12.50 IN GOLD TRADING…...

AND WITH THAT GAIN IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 19.37 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $12.50).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS ALSO UNSUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A FAIR SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (2965) ACCOMPANYING THE SMALL SIZED GAIN IN COMEX OI  (3262 OI): TOTAL GAIN IN THE TWO EXCHANGES:  6227 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)ANOTHER HUMONGOUS INCREASE IN GOLD  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI GAIN.. AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//MONDAY//$12.50.

 

WE ARE BEGINNING TO WITNESS A LACK OF EXCHANGE FOR GOLD PHYSICALS UNDERWRITTEN DUE TO PREMIUMS STARTING TO REAPPEAR IN THE FUTURE PRICE OF GOLD VS LONDON SPOT. THE COST TO THE BANKERS IS JUST TOO GREAT TO ENGAGE IN THESE VEHICLES ONCE THIS OCCURS.

THE FACT THAT WE ARE CONTINUALLY SEEING A DROP IN COMEX OPEN INTEREST AND VOLUMES COUPLED WITH LESS EXCHANGE FOR PHYSICALS PROBABLY MEANS THAT OUR LONGS ARE ALREADY DEPARTING NEW YORK FOR THE NEW PHYSICAL PLATFORM AT LONDON’S LME.

 

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 GOLD 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 : 32,303 CONTRACTS OR 3,230,300 oz OR 100.475 TONNES (9 TRADING DAY(S) AND THUS AVERAGING: 3589 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 9 TRADING DAY(S) IN  TONNES: 100.475 TONNES

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

THUS EFP TRANSFERS REPRESENTS 100.475/3550 x 100% TONNES =2.83% 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   3118.67  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;                       100.475 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, ROSE BY A STRONG SIZED 2416 CONTRACTS FROM 175,725 UP TO 178,141 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

THE STRONG GAIN IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   HUGE BANKER SHORT COVERING , 2) A SMALL ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A SMALL INCREASE STANDING AT THE SILVER COMEX FOR JULY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 497 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: 497 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 497 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI GAIN  OF 2416  CONTRACTS TO THE 497 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GAIN OF 2913 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 14.57 MILLION  OZ, OCCURRED WITH OUR HUGE 67 CENT GAIN IN PRICE///

 

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)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 28.67 POINTS OR 0.83%  //Hang Sang CLOSED DOWN 294.23 POINTS OR 1.14%   /The Nikkei closed DOWN 197.73 POINTS OR 0.87%//Australia’s all ordinaires CLOSED DOWN .72%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9951 /Oil UP TO 39.73 dollars per barrel for WTI and 342.37 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9951 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0181 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 ROSE BY A SMALL SIZED 3262 CONTRACTS TO 571,683 MOVING CLOSER TO  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS SMALL  COMEX INCREASE OCCURRED WITH OUR STRONG GAIN OF $12.50 IN GOLD PRICING /MONDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (2965 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS STANDING AT THE GOLD COMEX//JULY DELIVERY MONTH (SEE BELOW) , …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 6227 CONTRACTS WITH GOLD’S STRONG GAIN IN PRICE. NOTE THE FACT THAT LATELY 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. SINCE THEY CANNOT TRANSFER TO LONDON THEY ARE FORCED TO INCREASE THEIR SHORT POSITIONS AT THE GOLD COMEX…. AND SOME HAVE MOVED SOME CONTRACTS OVER TO THE NEW 400 OZ LONDON ENHANCED VEHICLE.

 

(SEE BELOW)

 

 

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 63

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  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 2965 EFP CONTRACTS WERE ISSUED:  AUG  2365 , OCT: 160 DEC 300 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 2965 CONTRACTS.

YOU WILL FIND THAT WHEN WE HAVE A GOOD 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. TODAY THAT PREMIUM WAS SMALL AND THUS A LITTLE MORE THAN USUAL OF EXCHANGE FOR PHYSICALS WERE ISSUED.

 

ON A NET BASIS IN OPEN INTEREST WE LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  6227 TOTAL CONTRACTS IN THAT 2965 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 3262 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A SMALL  AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR SMALL COMEX OI GAIN,  A HUGE  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A STRONG GAIN IN COMEX PRICE OF 12.50 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $12.50).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A GOOD 19.37 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 6227 CONTRACTS OR 622,700 OZ OR 19.41 TONNES.

 

COMMODITY LAW SUGGESTS THAT COMMODITY FUTURES OPEN INTEREST SHOULD APPROXIMATE 3% OF TOTAL PRODUCTION.  IN GOLD THE WORLD PRODUCES AROUND 3500 TONNES PER YEAR BUT ONLY 2200 TONNES ARE AVAILABLE FROM THE WEST (THUS EXCLUDING RUSSIA, CHINA ETC..WHO KEEP 100% OF THEIR PRODUCTION)

THUS IN GOLD WE HAVE THE FOLLOWING:  571,683 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 57.16 MILLION OZ/32,150 OZ PER TONNE =  1778 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1778/2200 OR 80.81% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 278,726 contracts//fair volume//hitting rock bottom//most traders have moved to London

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  280,619 contracts//  volume fair //most of our traders have left for London

 

 

JULY 14 /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 96,645.906 oz

Brinks

Dealer

 

 

 

Deposits to the Customer Inventory, in oz  

386,793.354

OZ

BRINKS

JPMORGAN

MALCA

MANFRA

 

INCL

 

 

7000

KILOBARS

AND

 

1500 KILOBARS

No of oz served (contracts) today
151 notice(s)
 15100 OZ
(0.4696 TONNES)
No of oz to be served (notices)
48 contracts
(4800 oz)
2.43 TONNES
Total monthly oz gold served (contracts) so far this month
7125 notices
7,12,500 OZ
22.161 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

 

i) Into Brinks:  96,645.906 oz

 

total deposit: 96,645.906 oz

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 4 deposits into the customer account

 

i) Into Brinks:  107,197.206 oz

ii) Into JPMorgan;  225,057.000 oz (7000 kilobars)

iii) Into Malca: 48,226.500 oz  1500 kilobars

iv) Into Manfra; 102,958.554 oz

 

 

 

 

 

total deposit:  386,793.354 oz

 

we had 0 gold withdrawals from the customer account:

 

total gold withdrawals;  nil oz

We had 3  kilobar transactions  +

 

ADJUSTMENTS: 0 //    all dealer to customer

i)1639.701 oz Int Delaware  51 kilobars

ii) 100.005 oz HSBC
iii) JPMorgan: 6558.789 oz
iv)Manfra; 10,679.907 oz

v) Scotia 4427.155 oz

 

 

 

 

 

The front month of JULY registered a total of 199 oi contracts FOR a LOSS of 144 contracts. We had 303 notices served on MONDAY so we GAINED ANOTHER  159 contracts or an additional 15,900 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 12,449  contracts DOWN to 315,521 contracts, as we continue our countdown to first day notice.

 

Sept saw another addition of 18 contracts to stand at 326.  Oct GAINED 154 contracts DOWN to 38,926.

 

We had 151 notices filed today for 15,100 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 151 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 3 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 1 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 (7125) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (199 CONTRACTS ) minus the number of notices served upon today (151 x 100 oz per contract) equals 717,300 OZ OR 22.310 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 (7125 x 100 oz + (199 OI) for the front month minus the number of notices served upon today (151) x 100 oz which equals 717300 oz standing OR 22.310 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 gained 159 contracts or an additional 15900 oz will stand at the comex.

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

302,293.430 oz PLEDGED  JULY 9// 2020  JPMORGAN:  9.40 TONNES

42,548.308.00 PLEDGED  APRIL 3/2020: SCOTIA:            1.3234 tonnes

deleted Int. Delaware pledge July 7  (600 tonnes)

 

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

total pledged gold:  1,146,354.687 oz                                     35.65 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 376.06 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 22.31 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  13,236,781.121 oz or 411.72 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/SOME JULY 9) which cannot be settled upon:  302,293.43, oz (or 9.402 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.    DELETED:   JULY 7.2020
f) pledged gold at Brinks:  DELETED
g) pledged gold at Brinks: 657,424.187 oz added which cannot be settled:  20.448 tonnes
total weight of pledged:  1,146,354.687 oz or 35.65 tonnes
thus:
registered gold that can be used to settle upon:  12,090,427.0  (376.06 tonnes)
true registered gold  (total registered – pledged tonnes  12,090,427.0 (376.06 tonnes)
total eligible gold:  20,765,944.707 oz (645.91 tonnes)

total registered, pledged  and eligible (customer) gold;   34,002,725.828 oz 1057.62 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  931.28 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 14/2020

And now for the wild silver comex results

 

 

JULY SILVER COMEX CONTRACT MONTH

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 560,134.770 oz
Hsbc

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
3618.244 oz
DELAWARE
No of oz served today (contracts)
0
CONTRACT(S)
(nil OZ)
No of oz to be served (notices)
2425 contracts
 12,125,000 oz)
Total monthly oz silver served (contracts)  13,903 contracts

69,515,000 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 Delaware:  3618.244 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 49.47% of all official comex silver. (160.819 million/324.624 million

 

total customer deposits today:  nil    oz

we had 2 withdrawals:

 

ii) Out of Loomis:   613,200.670  oz

iii) Out of Delaware:  4023.100 oz

 

 

 

 

 

 

 

total withdrawals; 617,223.770   oz

We had 5 adjustments

ALL dealer to customer:

Brinks 25,679.927 oz

CNT: 543,493.198 oz

Delaware: 53,250.270 oz

HSBC  39,316.210 oz

Scotia;  9,068.420 oz

 

 

 

total dealer silver: 126.708 million

total dealer + customer silver:  324.640 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  2425 contracts, as we lost 238 contracts.  We had 245 notices served on MONDAY, so we GAINED a tiny 7 contracts or an additional 35,000 oz will stand in this active delivery month of July as they refused to morph into a London based forwards.  It seems that we have little silver over here.

 

 

 

The next month after July is the non active month of  August and here  sees its open interest rose by 18 contracts UP to 857

The big September contract month sees a gain of 2092 contracts up to 140,540.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 0 contract(s) FOR nil, 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 13,903 x 5,000 oz = 69,515,000 oz to which we add the difference between the open interest for the front month of JULY.(2425) and the number of notices served upon today 0 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 13,903 (notices served so far) x 5000 oz + OI for front month of JULY (2245)- number of notices served upon today (0) x 5000 oz of silver standing for the JULY contract month.equals 81,640,000 oz.  (A WHOPPER )

WE GAINED 7 CONTRACTS OR 35,000 OZ WILL  STAND FOR DELIVERY. SILVER IS STILL VERY SCARCE ON THIS SIDE OF THE POND AND THE REASON FOR MORPHING OVER TO LONDON.

 

 

 

TODAY’S ESTIMATED SILVER VOLUME : 72,517 CONTRACTS // volume good/

 

 

FOR YESTERDAY: 92,931.,CONFIRMED VOLUME//volume excellent/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 92,931 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  RISES TO- 0.09% ((JULY 14/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -.18% to NAV:   (JULY 14/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.09%

(courtesy Sprott/GATA

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

NAV 17.42 TRADING 17.36///NEGATIVE 0.35

END

 

 

And now the Gold inventory at the GLD/

JULY 14//WITH GOLD DOWN $1.65 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/A DEPOSIT OF 3.51 TONNES/INVENTORY RESTS AT 1203.97 TONNES

JULY 13//WITH GOLD UP $12.50 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 0.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1200.46 TONNES

JULY 10/WITH GOLD DOWN $.50 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD//A STRANGE WITHDRAWAL  OF 1.75 TONNES FROM THE GLD//INVENTORY RESTS AT 1200.82 TONNES

JULY 9//WITH GOLD DOWN $11.75 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OX 3.21 TONNES INTO THE GLD//INVENTORY RESTS AT 1202.57 TONNES

JULY 8/WITH GOLD UP $13.75 TODAY; A BIG CHANGE IN GOLD INVENTORY AT THE GLD:A DEPOSIT OF 7.89 TONNES INTO THE GLD//INVENTORY RESTS AT 1199.36 TONNES

JULY 7/WITH GOLD UP $12.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1191.47 TONNES

JULY 6/WITH GOLD UP $6.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 9.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1191.47 TONNES

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 14/ GLD INVENTORY 1203.97 tonnes*

LAST;  860 TRADING DAYS:   +260.15 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 760 TRADING DAYS://+438.26  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 14/WITH SILVER DOWN 21 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 514.118 MILLION OZ//

JULY 13//WITH SILVER UP 67 CENTS TODAY: A HUGE CHANGE IN SILVER: A WITHDRAWAL OF 1.677 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 514.118 MILLION OZ//

JULY 10/WITH SILVER UP 7 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 4.844 MILLION OZ INTO THE SLV//INVENTORY RESTS AT  515.795 MILLION OZ

WHAT A FRAUD!!

JULY 9/WITH SILVER DOWN 8 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 8.198 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 510.951 MILLION OZ/

JULY 8/WITH SILVER UP 37 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.118 MILLION OZ FROM THE SLV//VERY SURPRISING.//INVENTORY RESTS AT 502.753 MILLION OZ//

JULY 7/WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV:/INVENTORY RESTS AT 503.871 MILLION OZ///

JULY 6//WITH SILVER UP 24 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.863 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 503.871 MILLION OZ

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 14.2020:

SLV INVENTORY RESTS TONIGHT AT

514.118 MILLION OZ.

 

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

The Fed’s 3 trillion rescue pkg inflates all market bubbles

(Reuters)

Fed’s $3 trillion virus rescue inflates market bubbles

 Section: 

By Kate Duguid
Reuters
Monday, July 13, 2020

The Federal Reserve’s $3 trillion bid to stave off an economic crisis in the wake of the coronavirus outbreak is fuelling excesses across U.S. capital markets.

The U.S. central bank has pledged unlimited financial asset purchases to sustain market liquidity, increasing its balance sheet from $4.2 trillion in February to $7 trillion today.

… 

While the vast majority of these purchases has been limited to U.S. Treasuries and mortgage-backed securities, the Fed’s pledge to bolster the corporate bond market has been enough to spur a frenzy among investors for bonds and stocks.

“COVID-19 is now inversely related to the markets. The worse that COVID-19 gets, the better the markets do because the Fed will bring in stimulus. That is what has been driving markets,” said Andrew Brenner, head of international fixed income at NatAlliance. …

… For the remainder of the report:

https://www.reuters.com/article/us-health-coronavirus-federalreserve-mar…

end

GATA board member Ed Steer’s Saturday letter posted at SilverSeek

 Section: 

11:10a ET Monday, July 13, 2020

Dear Friend of GATA and Gold:

The Saturday edition of GATA board member Ed Steer’s letter, Ed Steer’s Gold and Silver Digest, is posted in the clear at GoldSeek’s companion site, SilverSeek, here:

https://silverseek.com/article/ted-butler-silver-pressure-cooker-hefty-d…

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

end

iii) Other physical stories:

 

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 TUESDAY 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: 6.9951/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  7.0181   /shanghai bourse CLOSED DOWN 28.67 POINTS OR 0.83%

HANG SANG CLOSED DOWN 294.23 POINTS OR 1.14%

 

2. Nikkei closed DOWN 197.73 POINTS OR 0.87%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 96.47/Euro RISES TO 1.1372

3b Japan 10 year bond yield: FALLS TO. –.13/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.38/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 39.73 and Brent: 42.37

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.42%/Italian 10 yr bond yield UP to 1.24% /SPAIN 10 YR BOND YIELD DOWN TO 0.43%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.26

3k Gold at $1795.30 silver at: 18.94   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 4/100 in roubles/dollar) 71.04

3m oil into the 39 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 107.38 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 .9399 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0688 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 0.42%

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 0.63% early this morning. Thirty year rate at 1.32%

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

6.  TURKISH LIRA:  UP  TO 6.8665..

Global Stocks Slide, Futures Flat As China Sanctions Lockheed, Virus Fears Grow

European and Asian stocks slumped following Monday’s dramatic Nasdaq reversal, following a fresh escalation in the US-China cold war, and as investors weighed the risks of the upcoming earnings season even as rising virus cases prompted more states to resume shutdowns. Treasuries were flat and the dollar was modestly higher.

S&P 500 and Nasdaq futures were generally flat after yesterday’s freak late day selloff, even as Tesla climbed in pre-market trading following yet another ridiculous upgrade, this time from some bucket shop which sees the stock rising above $2,300.

“We are marginally risk-off today, driven by the dive into the close in the U.S.,” said Charles Diebel, head of fixed income at Mediolanum International Funds. “The real worrying aspect for the market really is that the rise in U.S. infections will make people behave like a lockdown even if they are opening up.”

Market sentiment took a hit from signs the virus is throttling reopening plans in states like California, and concern that equity valuations are stretched with global stocks trading near pre-pandemic highs according to Bloomberg.

Tensions between Washington and Beijing also escalated further after the United States rejected China’s disputed claims to offshore resources in most of the South China Sea. Meanwhile, in a surprisingly sharp escalation in tensions, China said it would impose sanctions on Lockheed Martin after the U.S. approved a possible $620 million deal for Taiwan to buy parts to refurbish defensive missiles made by the company. Chinese Foreign Ministry spokesman Zhao Lijian made the announcement at a briefing in Beijing on Tuesday. He called on the U.S. to cut military ties with Taiwan – which China considers part of its territory – to avoid “further harm to bilateral relations.”

“China firmly opposes U.S. arms sales to Taiwan,” Zhao said. “We will impose sanctions on the main contractor of this arms sale, Lockheed Martin.”

The news sent the offshore Yuan, which had risen sharply in recent weeks, to session lows and back under 7.00.

Meanwhile, traders are braced for earnings reports this week that will provides clues on the outlook for corporate profits. Q2 earnings season is set to officially begin in a few minutes, when JPMorgan Chase and Citigroup, which have substantial lending businesses, report Q2 earnings and could see a sharp plunge in net income in the April-June quarter that witnessed the biggest blow to businesses activity. JPM and CITI shares edged higher in premarket trading, while Wells Fargo which is expected to swing to a loss, was flat.

Earlier in the session, Asian stocks fell, led by communications and health care, after rising in the last session. Most markets in the region were down, with India’s S&P BSE Sensex Index dropping 1.6% and Hong Kong’s Hang Seng Index falling 1.1%, while Jakarta Composite gained 0.3%. Trading volume for MSCI Asia Pacific Index members was 31% above the monthly average for this time of the day. The Topix declined 0.5%, with Niitaka and Chuco falling the most. Even the Shanghai Composite Index retreated 0.8%, ending its stunning rally over the past two weeks, with Inzone Group Co Ltd and Sino-Platinum posting the biggest slides.

In the latest US-Sino escalation, the Trump administration rejected China’s expansive maritime claims in the South China Sea, reversing a previous policy of not taking sides in such disputes. The Trump administration also plans to scrap a 2013 auditing agreement that could foreshadow a broader crackdown on U.S.-listed Chinese firms

In FX, the Bloomberg Dollar Spot Index inched up after the euro rose in early European hours, with options traders seeing scope for more gains. The Swedish krona led G-10 gains after data showed inflation beat estimates last month.

In rates, the 10Y Treasury was modestly lower with the yield rising to 0.6283% after tumbling yesterday during the sharp Nasdaq selloff. The yield on the U.K.’s two- year bonds declined to an all-time low of minus 0.129% amid weaker global sentiment; the yield is for the first time lower than its Japanese peer.

In commodities,  West Texas Intermediate crude rebounded 0.7% to $39.83 a barrel, while Brent crude gained 0.7% to $42.48 a barrel. Copper ended a six-day winning streak amid renewed tensions between Beijing and Washington.

To the day ahead now, and the data highlights from Europe include the May readings of UK GDP and Euro Area industrial production, as well as July’s ZEW survey from Germany. Over in the US, there’ll be the June CPI reading, along with the NFIB small business optimism index. Earnings releases feature a number of US financials, including JPMorgan, Citigroup and Wells Fargo, while we’ll also hear from the Fed’s Brainard and Bullard.

Market Snapshot

  • S&P 500 futures up 0.3% to 3,157.50
  • STOXX Europe 600 down 1.3% to 365.69
  • MXAP down 0.8% to 164.77
  • MXAPJ down 1% to 544.23
  • Nikkei down 0.9% to 22,587.01
  • Topix down 0.5% to 1,565.15
  • Hang Seng Index down 1.1% to 25,477.89
  • Shanghai Composite down 0.8% to 3,414.62
  • Sensex down 1.6% to 36,094.68
  • Australia S&P/ASX 200 down 0.6% to 5,941.08
  • Kospi down 0.1% to 2,183.61
  • German 10Y yield fell 1.5 bps to -0.432%
  • Euro down 0.04% to $1.1340
  • Italian 10Y yield rose 1.0 bps to 1.109%
  • Spanish 10Y yield fell 1.4 bps to 0.43%
  • Brent futures down 0.7% to $42.41/bbl
  • Gold spot down 0.2% to $1,798.98
  • U.S. Dollar Index little changed at 96.52

Top Overnight News from Bloomberg

  • Investors dampened their expectations about the rebound in Germany, adding to signs that it still has a long road ahead as it recovers from the coronavirus lockdowns in the first half of the year
  • WHO Director-General Tedros Adhanom Ghebreyesus said “there will be no return to the old normal for the foreseeable future”
  • German Chancellor Angela Merkel showed a united front with Italy’s Giuseppe Conte days ahead of a crucial European Union summit, warning that EU leaders need to deliver a “massive” response to the economic fallout of the pandemic
  • China said it would impose sanctions on Lockheed Martin Corp. after the U.S. approved a possible $620 million deal for Taiwan to buy parts to refurbish defensive missiles
  • Saudi Arabia commended Iraq for implementing almost all its pledged oil-production cuts and Nigeria told the kingdom it was committed to hitting its target, in further signs that disputes among OPEC+ members over cheating of quotas are being resolved

Asian equity markets traded negatively with sentiment dampened following choppy performance stateside owing to a temperamental tech sector and ongoing US-China tensions after the US denounced China’s claims to the South China Sea as unlawful. Furthermore, sentiment was also subdued by the latest developments on the coronavirus front in which California Governor Newsom ordered a shutdown of indoor restaurants, bars, movie theatres and other businesses across the state. ASX 200 (-0.6%) and Nikkei 225 (-0.9%) were lower with Australia pressured by underperformance in the tech sector but with downside restricted by the improvement in Business Survey data, while Tokyo shares suffered the ill-effects of the recent currency inflows and despite reports that Softbank was exploring options for its Arm Holdings unit such as a potential sale or IPO. Hang Seng (-1.1%) and Shanghai Comp. (-0.8%) adhered to the downbeat picture due to the increased tensions after the US departed from its policy of not taking sides in the South China Sea dispute in which it denounced China’s claims, while China’s Foreign Ministry said it will impose sanctions on US lawmakers in response to sanctions over Xinjiang. Focus was also on the latest trade data from China which printed mostly better than expected, although this failed to inspire a turnaround for Chinese stocks with Hong Kong underperforming after the local government’s recent announcement of coronavirus related restrictions. Finally, 10yr JGBs were marginally higher as the risk averse tone favoured haven assets and after stronger demand at the enhanced liquidity auction for longer-dated JGBs, but with upside limited as the BoJ kicked off its 2-day policy meeting.

Top Asian News

  • Modi’s Fuel-Tax Hikes Are Putting Brakes on India’s Recovery
  • Korea Looking Into H.K. Hedge Fund That Halted Some Withdrawals
  • Morgan Stanley’s Head of Asia Flow Credit Trading Leaves Firm
  • China Posts Surprise Trade Gains as Economies Try to Reopen

European equities have pulled back from yesterday’s advances (Eurostoxx 50 -1.5%) as indices catch-up to the declines seen on Wall St. yesterday after the EU close. No one individual catalyst was attributed to the sell-off seen in the latter half of the US session yesterday with many of the bearish factors cited already present at the time of the initial rally. However, one feature of the selling pressure yesterday was an emphasis on tech names; a theme which has been replicated today in Europe with the IT sector the clear underperformer thus far as the likes on Infineon (-4.8%), STMicroelectronics (-4.5%) and SAP (-3.9%) all lag peers. Macro newsflow from a European perspective has been relatively light thus far with focus for the equity complex likely to fall on upcoming pre-market US earnings reports from JP Morgan, Well Fargo, Citi and Delta Airlines (previews of key metrics can be found on the newsquawk headline feed). Elsewhere, stateside, focus could fall on defense names after reports the Chinese Foreign Ministry intends to apply sanctions to Lockheed Martin (-1.1% in pre-market) over arms sales to Taiwan. Elsewhere in Europe, sectors trade broadly lower with no real clear theme seen in the focus of selling asides from the IT sector with individual equity stories on the light side this morning. Notable corporate updates have included Ocado (-0.8%), who trade lower despite reporting a 27% increase in revenues with the Co. unable to provide guidance and announcing the search for a new Chairman & CEO to replace “retail veteran” Lord Rose.

Top European News

  • Merkel and Conte Show Common Front in Push for Recovery Fund
  • Italy’s Conte Keeps Investors Guessing on Autostrade’s Fate
  • ECB Says Loan Standards to Tighten as Government Protections End
  • Lotos Soars in Warsaw on Fresh Hopes of Improved Orlen Offer

In FX, the Dollar continues to track broad risk sentiment and has benefited from renewed aversion on latest COVID-19 developments coupled with a further deterioration in US-Chinese relations centring on the South China Sea. As such, the DXY has regrouped to trade back around the 96.500 level within a 96.472-707 band ahead of US CPI data and a raft of Fed speakers awaiting the next daily update from states that are seeing a resurgence in the number of virus infections and fatalities.

  • CHF/JPY/EUR/AUD – All narrowly mixed vs the Greenback, as the Franc and Yen retain an element of safe haven demand near 0.9400 and 107.00 respectively, while the former has pared some of Monday’s relatively heavy declines against the Euro from sub-1.0700 towards 1.0650 even though SNB head Jordan is highly likely to reiterate the importance of direct intervention and NIRP later today. However, the single currency is holding up well in its own right as Eur/Usd consolidates above 1.1300 and eyes hefty option expiry interest at the round number (2.1 bn), between 1.1320-25 (2 bn) and from 1.1350 to 1.1355 (1.3 bn). Similarly, the Aussie is gleaning some underlying traction circa 0.6945 from encouraging Chines trade data plus a firm rebound in NAB business sentiment and conditions to compensate for another incremental rise in pandemic cases in Victoria. Next up for the Jpy and Aud, the end of the 2-day BoJ convene and July consumer sentiment.
  • CAD/NOK/NZD/GBP – The Loonie and Norwegian Krona have both been knocked out of stride by the aforementioned turnaround in tone from bullish to bearish that is also weighing on crude prices, as Usd/Cad rebounds through 1.3600 in advance of Wednesday’s BoC policy meeting and Eur/Nok pivots 10.7300 from sub-10.6000 mtd lows. Similarly, the Kiwi is back on the defensive within a 0.6545-10 range heading into NZ Q2 CPI tonight and Sterling is losing more momentum across the board on a mix of negative factors, as Cable fails to derive any traction from tame improvements in UK activity data and Eur/Gbp remains elevated on ongoing Brexit divisions having reversed/rebounded through 1.2600 and 0.9000 yesterday. Note, market contacts report big buy orders in the cross when 0.9075 was breached, but 0.9100 has capped advances beyond 0.9080 for now.
  • SEK – In contrast to its Scandinavian peer, the Swedish Crown has been inflated by firmer than forecast CPI readings to remain close to 10.4000 and recent highs vs the Euro.

In commodities, WTI & Brent have succumbed to the broader risk-off moves overnight and in Europe this morning, with little fresh for the complex fundamentally out this morning as we await the OPEC monthly oil report. Benchmarks are posting losses just shy of 1% at present as sentiment modestly picks-up in the approach to US hours, with equity futures stateside marginally positive ahead of US earnings season’s full commencement. Returning to the aforementioned OPEC monthly report, aside from their demand outlooks for this year and next, attention will be on any insight into compliance figures for June. As, while we know compliance overall exceeded 100% this was largely due to efforts from Saudi Arabia, UAE & Kuwait and as the likes of Nigeria & Iraq having agreed to over-comply ahead to make up for their shortcomings in recent months this report will be looked at as an indication of just how much overcompliance will be required; and, of course, ahead of tomorrow’s JMMC where further insight into this and guidance on easing production cuts for the immediate period is expected. Further ahead, the weekly private inventory report is expected to print a headline draw of 1.8mln. Turning to metals, spot gold is very much rangebound around the USD 1800/oz handle as the USD has been relatively steady since the volatility around the European equity open & China Foreign Ministry updates. Copper prices remain supported by the strike action commencing in multiple Antofagasta mines over the weekend as reports note the final wage offers have been rejected by supervisors.

US Event Calendar

  • 6am: NFIB Small Business Optimism, est. 97.8, prior 94.4
  • 8:30am: Real Avg Weekly Earnings YoY, prior 7.4%; Real Avg Hourly Earning YoY, prior 6.5%
  • 8:30am: US CPI MoM, est. 0.5%, prior -0.1%; CPI YoY, est. 0.6%, prior 0.1%
  • 8:30am: US CPI Ex Food and Energy MoM, est. 0.1%, prior -0.1%; CPI Ex Food and Energy YoY, est. 1.1%, prior 1.2%

DB’s Jim Reid concludes the overnight wrap

Yesterday was the end of an era and the start of a more difficult 15 years to come – at least until the twins leave home. After bedtime has increasingly become an elongated and tortuous nightmare of late we decided that we should abandon their daily 2 hour lunchtime sleep for good. It doesn’t impact me in the week but at weekends this double dose of two hours is a godsend. Makes playing golf a bit easier on the rest of the family for starters. Now those days are gone and negotiations will get tougher.

Markets threw their toys out of the cot before bedtime last night as a strong day turned sour in the last 2.5 hours of trading on the back of renewed US / China tensions and more concerns about the virus spread in the US.

The S&P 500 initially rose roughly +1.5% and briefly reached post-pandemic highs before finishing down -0.94%. The drop came following the dual headlines of record covid-19 hospitalisations and shutdowns in California and the US denouncing China’s claim to the South China Sea. The VIX volatility index rose +4.9pts, the largest one day rise since 11 Jun. It looked like tech outperformance would continue as the NASDAQ had advanced +1.95% to yet another record high in early trading, but then the index saw a roughly -4% turnaround within the last 2 hours of the session to finish at -2.13%. European stocks outperformed having closed well before the reversal in the US, with the STOXX 600 (+1.00%), the DAX (+1.32%) and the CAC 40 (+1.73%) all moving higher. We didn’t get an awful lot of earnings releases yesterday though PepsiCo rose +0.33% on the back of a stronger than expected report, with core EPS of $1.32 (vs. $1.25 expected). We’ll get a lot more results today though, particularly from US financials including JPMorgan, Citigroup and Wells Fargo.

On that, with US Q2 earnings starting in earnest today it was interesting to see our equity strategists report last night that they are set up to notably beat expectations. Their rationale was that earnings expectations flatlined in June in the face of substantial improvements in US macro surprises. The two are well correlated so even with the recent case growth rise, earnings should have had a much better last month of the quarter than analysts were prepared to reflect. See their report here for more.

Overnight Asian markets have tracked Wall Street with the Nikkei (-1.04%), Hang Seng (-1.69%), Shanghai Comp (-1.10%), Kospi (-0.57%) and Asx (-0.83%) all losing ground. Amidst the risk off, the Japanese yen is up +0.11% this morning while the US dollar is up +0.10%. Meanwhile, futures on the S&P 500 are trading flat and crude oil prices are down c. -2%. In terms of overnight data releases, Singapore’s Q2 GDP printed at an annualized -41.2% qoq (vs. -35.9% qoq expected) as peak lockdown took its toll. China also released its June trade data with exports rising by +0.5% yoy (vs. -2.0% yoy expected) while imports came in at +2.7% yoy (vs. -9.7% expected). In terms of trade with the US, YtD June exports were down -11% yoy while imports were down -4.2% yoy bringing the trade balance to USD 121bn (-13.8% yoy).

In other overnight news, Akira Amari, Japan’s ruling party’s tax policy chief, has said that PM Shinzo Abe might call an election this year after putting together another extra budget. He added that “While there’s debate over the timing of a third extra budget, I don’t think we’ll get to the end of the year without doing something.” Elsewhere, top advisers to President Trump have ruled out undermining the Hong Kong dollar’s peg to the greenback as a retaliation to China’s imposition of new security law over the city.

Back to the ongoing rise in new virus cases. Florida saw a further 4.7% rise yesterday, slightly above the previous 7-day average of 4.4%, though in the state’s most populous county of Miami-Dade, the mayor said they weren’t yet planning another lockdown. California reported a record number of people hospitalised with coronavirus with nearly 6,500 on Sunday, as cases continue to trend higher in the state. The state’s largest school districts, Los Angeles and San Diego, will remain fully remote in the autumn. California Governor Newsom rolled back reopenings and ordered all indoor dining, wineries, movie theatres and entertainment to close. Bars and breweries statewide must close all indoor and outdoor operations, while fitness centres, worship services and salons must shut in counties that have been on a monitoring list for three straight days. Meanwhile, here in the UK, face masks will likely be compulsory in all shops in England from July 24 and the move will be enforced by fines of GBP 100 for non-compliance.

We continue to see rises in coronavirus cases in various countries, as well as the imposition of further restrictions. In Hong Kong, there was a noticeably tightening as public gatherings were limited to just 4 people, while gyms and bars were ordered to close for a week with restaurants allowed to offer only takeout from 6 pm to 5 am; and the number of patrons at a table at other times is limited to four. The city also mandated a $645 fine for not wearing a mask, as they reported a further 41 cases yesterday, of which 21 were related to previous clusters and the other 20 were of unknown origins. The city will also require inbound travellers who have been to high-risk regions in the last 14 days to pass a virus test before boarding their flights.

As mentioned above, there was also a further escalation in US-China tensions yesterday. Early in the day, China announced that they were placing sanctions on 4 US individuals, including the Republican Senators and former 2016 presidential candidates Marco Rubio and Ted Cruz. It comes after the US placed sanctions on a number of Chinese individuals last week, including Politburo member Chen Quanguo, over Xinjiang. A Chinese Foreign Ministry spokeswoman said yesterday that “Xinjiang is China’s internal affairs and U.S has no right to interfere”. Then last night, the US denounced China’s claim to the South China Sea, reversing a long-held policy of not taking sides in the disputes in the region. Secretary of State Michael Pompeo said, “Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them.” Elsewhere, Reuters reported overnight that the Trump administration is planning to abandon a 2013 agreement between US and China auditing authorities. US watchdog PCAOB was already at an impasse with China on inspections.

In some positive market news out of the US, Senate Majority Leader Mitch McConnell said that his caucus planned to have a draft of the next round of stimulus ready by next week. The plan will be done in conjunction with the White House and will serve as a rebuttal of sorts to the Democrats’ $3.5tr plan that was passed in the House back in May.

Staying on politics, one other dampener yesterday were remarks from Chancellor Merkel, who said that EU positions were still far apart ahead of this Friday’s European Council summit on the recovery fund. She said that “bridges still need to be built” and started to adjust expectations for the outcome by saying a further meeting may be required if no consensus is achieved. The Chancellor, along with Italian Prime Minister Conte, touted the need for the EUR750bn recovery plan to combat the economic fallout of the pandemic. Conte noted that his government is willing to accept tighter criteria for the grants and loans package. This seems to be a concession to the more fiscally conservative nations that have demanded that any funding was attached to a set of conditions.

Back to markets yesterday and the US dollar fell -0.19% to a one-month low, while 10yr Treasuries saw yields down by -2.6bps to 0.618% on the sharp reversal in US equities. Over in Europe, where risk closed higher, the sovereign bonds of core countries were among the biggest losers, with 10yr bunds (+4.8bps), as well as Swiss (+5.9bps) and Dutch (+4.7bps) debt all seeing rising yields. The periphery outperformed however, with Italian (+1.1bps) and Greek (+0.1bps) witnessing smaller increases.

Elsewhere, in the commodities sphere, silver provided the main headline up +1.90% to a 10-month high and within striking distance of a 4 year high. Other metals also had strong performances, with palladium up +1.32% in its best day in nearly 2 weeks, even if gold experienced a more modest +0.23% rise. Copper (+1.91%) rose for a tenth consecutive gain and to its highest level since April 2019. It could be supported further by the possibility of production strikes in Chile. With risk assets under pressure, Brent crude (-1.20%) and WTI (-1.11%) pulled back ahead of OPEC+’s Joint Ministerial Monitoring Committee meeting tomorrow where the group is expected to adhere to a plan of tapering the production cuts from August on.

To the day ahead now, and the data highlights from Europe include the May readings of UK GDP and Euro Area industrial production, as well as July’s ZEW survey from Germany. Over in the US, there’ll be the June CPI reading, along with the NFIB small business optimism index. Earnings releases feature a number of US financials, including JPMorgan, Citigroup and Wells Fargo, while we’ll also hear from the Fed’s Brainard and Bullard.

 

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 28.67 POINTS OR 0.83%  //Hang Sang CLOSED DOWN 294.23 POINTS OR 1.14%   /The Nikkei closed DOWN 197.73 POINTS OR 0.87%//Australia’s all ordinaires CLOSED DOWN .72%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9951 /Oil UP TO 39.73 dollars per barrel for WTI and 342.37 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9951 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0181 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

Asia,Europe/Globe/Coronavirus update

Asian, European Countries Roll Back Economic Reopenings As COVID-19 Makes Global Comeback: Live Updates

Summary:

  • US daily cases below 60k
  • Global daily cases below 200k
  • Hong Kong imposes new restrictions
  • France makes mask wearing mandatory in public
  • Australia cases top 10k.
  • Iran closes mosques, schools
  • WHO warns: “there will be no return to normal”

* * *

The number of new coronavirus cases reported yesterday in the US remained below the critical 60k threshold, but from Asia to Europe, economies that only recently appeared to have beaten the coronavirus are now imposing new restrictions to try and prevent a resurgence.

But globally, the number of new cases remained near a recently hit record high, pushing the worldwide total to 13,238,121 as of Tuesday morning. Though crucially, the number of cases reported yesterday came in just below 200k, roughly 30k shy of the record.

The death toll from the deadly virus has reached 575,543 globally, according to Worldometer. Of the currently infected 4,964,306 patients, 4,905,425 were in mild condition, while 58,881 were in serious or critical condition.

Last night (Tuesday morning in HK), Hong Kong announced plans to impose a new lockdown that appears to be even more restrictive than the measures it imposed during the opening weeks of the outbreak. While HK had previously relied on closing borders with the mainland, the new measures focus on suppressing domestic transmission. They include: that face masks will be mandatory for people using public transport and restaurants will no longer provide dine-in services, instead only offering takeaway service.

We teased the new measures in our report from yesterday, when a top HK epidemiologist warned that a mutated strain of the virus circulating in HK is even more infectious than its predecessor.

If an individual doesn’t wear a mask on public transport, they face a fine of HK$5,000 ($645). Gatherings would be limited to 4 people from 50. Gyms, places of amusement and other establishments must shut for a week.

“The recent emergence of local cases of unknown infection source indicates the existence of sustained silent transmission in the community,” the government said in a statement late on Monday.

The Chinese-ruled city recorded 52 new cases of coronavirus on Tuesday, including 41 that were locally transmitted, health authorities said, bringing its total outbreak to 224 people over the past week.

In Australia, Melbourne remains on lockdown while the number of new cases being reported continues to climb, the Australian state of Victoria has recorded 270 new cases of coronavirus, while New South Wales recorded 13, bringing the national total to about 10,250.

As the US outbreak in the Sun Belt nears its peak, the EU is reportedly set to recommend keeping its external borders shut to Americans and most other foreigners for at least two more weeks as fears grow of a second coronavirus wave.

As fears about a resurgence in Asia intensify, the WHO raised concerns over the Philippines’ rising number of new cases, which have swamped some local hospitals as the number of new cases being reported daily hits record after new record.

The proportion of positive cases in the country is gradually increasing from about 6.5% two weeks ago to about 7.8% on Monday, WHO representative in the Philippines Rabindra Abeyasinghe warned.

“This is worrying as it shows that there is continuing transmission. This is also reflected by the increased number of admissions into hospitals,” he said.

Similarly, after recording a record jump in deaths a few days ago, Iran is reeling from its own resurgence, prompting Tehran to close schools, universities, Shia seminaries, mosques and other sites of religious gatherings for at least a week, local state news reported. Iran reported 2,521 new cases and 179 deaths overnight, bringing the total figures to 262,173 cases and 13,211 deaths.

As Catalonian government imposes new restrictions on local hot spots, across the border in France, President Macron warned that the virus “is coming back a little bit” and that starting next week, France will make mask wearing compulsory in public spaces.

During a press briefing Tuesday in Geneva, the WHO warned the pandemic could get far worse if countries around the world do not follow basic healthcare precautions.

“The virus remains public enemy number one,” WHO Director-General Dr. Tedros Adhanom Ghebreyesus told a virtual briefing from WHO headquarters in Geneva.

“There will be no return to the old normal for the foreseeable future,” Tedros said.

end

3 C CHINA

Where do all of China\s unsold cars go to die? Answer Wuhan!

(zerohedge)

Where China’s Unsold Cars Go To Die

While every effort has been made in China to paint a picture of a recovering ‘back to normal’ economy with production rebounding dramatically, it appears, as we noted earlier, that the demand side of the equation is not keeping pace with supply.

Case in point, China’s passenger car sales broke the v-shaped recovery narrative in June, slumping back 6.5%, despite soaring auto production data.

So what happened to all those cars?

We have the answer…

Wuhan, the epicenter of the CCP virus, is one of the major automaking towns in China. Dongfeng Motor Group, China’s third-biggest state-owned automaker, is headquartered in the city.

On June 30, a woman was shocked to see thousands and thousands of unsold new cars sitting idle on Dongfeng Motor land.

She shot the video from an overpass above Dongfeng’s car lots…

So now we know, the old mantra of “if we build it, they will come” is thoroughly debunked in the case of China’s COVID comeback.

END
CHINA VS USA
Trump does not even give China lip service: Beijing sanctions Lockheed martin over the sale of torpedos for Taiwan.
(zerohedge)

Beijing Sanctions Lockheed Martin Over “Torpedos For Taiwan” Arms Deal

When we first reported on a deal affectionately nicknamed “torpedoes for Taiwan” back in May, we warned that the latest Trump-approved arms sales to China’s renegade province – in direct defiance of President Xi’s demand that foreign powers stay away from Taiwan – could sharply accelerate the decoupling between the world’s two largest economies.

And judging by the news this morning, it looks like we were on to something. To wit, stocks in Asia and Europe are trading in the red after China warned it would impose sanctions on US defense contractor Lockheed Martin after Washington approved the $620 million deal for Taiwan to buy parts to refurbish defensive missiles made by the company.

After announcing the sanctions, Chinese Foreign Ministry spokesman Zhao Lijian called on the US to cut military ties with Taiwan to avoid “further harm to bilateral relations.”

“China firmly opposes U.S. arms sales to Taiwan,” Zhao said. “We will impose sanctions on the main contractor of this arms sale, Lockheed Martin.”

The news sent the offshore yuan lower against the dollar.

BBG noted that the move could create serious problems for Lockheed, since Sikorsky, a wholly owned subsidiary of Lockheed Martin, has a joint venture in China called Shanghai Sikorsky Aircraft that does business with aviation companies and GSEs. Lockheed generated nearly 10% of its profits in Asia last year.

Last night, the Trump Administration confirmed that it would no longer recognize China’s claims to the South China Sea, a policy change that will further escalate military tensions between the two world powers.

end

CHINA VS USA

Trump continues on the war path with China.  Chinese firms never have proper audits like uSA firms.  That is going to end as the audit deal for USA listed Chinese firms will end.  Tensions soar..

(zerohedge)

 

Tensions Soar As Trump Admin Could Scrap Audit Deal For US-Listed Chinese Firms 

Global stocks slumped on Tuesday as a safety bid appears in the dollar as Sino-US tensions continue to worsen.

There were a couple of significant developments in the overnight session involving China and the US. First, Chinese Foreign Ministry spokesman Zhao Lijian said Beijing would sanction US defense contractor Lockheed Martin for its latest arms deal with Chinese-claimed Taiwan.

The second development is from Reuters, detailing how the Trump administration plans to abandon a 2013 agreement between the US and Chinese auditing authorities, a move that suggests a widespread crackdown on US-Listed Chinese firms sidestepping US disclosure rules is ahead.

The deal allowed the Public Company Accounting Oversight Board (PCAOB) to seek auditing documents in enforcement cases of Chinese companies listed on US exchanges – was considered a breakthrough at the time.

But PCAOB has complained over the years that many of the requests into Chinese firms were ignored.

Keith Krach, the undersecretary for economic growth, energy, and the environment, said, “lack of transparency has prompted administration officials to lay the groundwork to exit the deal soon.”

“The action is imminent,” Krach told Reuters, in an emailed response on Monday. “This is a National Security issue because we cannot continue to afford to put American shareholders at risk, to put  American companies at a disadvantage and  allow our preeminence of being the gold standard for financial markets to erode.”

Reuters notes an official within the Trump administration and three former White House officials said the termination of the 2013 auditing deal was under careful consideration.

There’s been very little information about withdrawing from the agreement – the discussions so far point to increasing frustrations by the Trump administration over Chinese companies failing to disclose critical financial data.

And maybe the Trump administration has a point, due mostly because in April, Chinese company Luckin Coffee, trading on the Nasdaq, crashed 85% in one day over allegations it fabricated $300 million sales.

The Trump administration has recently pressured pension funds for federal employees to stop investing in Chinese companies for risks that could result in malinvestment – such as what happened to Luckin Coffee.

In June, President Trump demanded the Securities and Exchange Commission (SEC) and PCAOB to recommend new measures within 60 days to protect investors “from the failure of the Chinese government to allow PCAOB-registered audit firms to comply with United States securities laws.”

The Republican-led Senate has passed a bill if approved by the Democratic-led House of Representatives and signed into law would prevent any foreign entity from listing stock on US exchanges unless they had three years of consecutive audits that meet PCAOB standards.

Republican Senator Marco Rubio, a China hardliner and sanctioned by the Chinese government on Monday for his involvement over sanctioning Chinese officials last week for their human rights abuses against minority Uighur Muslims, described the move as “long overdue” and said more measures are needed.

“In addition to terminating this MOU [Memorandum of understanding], which allows Chinese companies to openly defy USS laws and regulations for financial transparency and accountability, we must address the Chinese Communist Party’s exploitation of USS capital markets, which is a clear and ongoing risk to USS economic and national security,” Rubio said in a statement to Reuters.

Hayman Capital’s Kyle Bass said, “The MOU represents a gaping hole in US investor protections while providing the framework for systemic Chinese fraud,” adding that, “It’s unconscionable that the United States continues to allow Chinese companies raising trillions of dollars from US investors to avoid complying with basic USS securities and audit standards.”

Simmering Sino-US tensions could derail the rally in global stocks as the US appears to kick financial decoupling with China into overdrive ahead of elections.

END
CHINA VS USA

China Blasts US As “Troublemaker & Disruptor Of Peace” After Pompeo’s “Maritime Empire” Accusation

On Monday Secretary of State Mike Pompeo issued a lengthy and provocative statement which among other things charged China with seeking to build a “maritime empire” based on its expansive claims to international waters in the South China Sea.

“The world will not allow Beijing to treat the South China Sea as its maritime empire,” Pompeo said. As we detailed yesterday, in a reversal of the Obama-era policy of appeasement, the Trump administration now says China’s continued claims of supremacy over the area poses “the single greatest threat to freedom of the seas in modern history.”

Beijing has bit back Tuesday, blasting the United States as the only true “troublemaker and disruptor of peace and stability in the region,” according to new comments from China’s Foreign Ministry Spokesperson Zhao Lijian.

 

Prior image of Soldiers with China’s People’s Liberation Army (PLA) Navy patrol at Woody Island, in the Paracel Archipelago, via Reuters.

Zhao further asserted that at no time has China’s military sought“an empire” in the South and East China seas region.

He instead argued that China’s maritime claimes “have sufficient historical and legal basis” based on international norms and law. “The international community sees this very clearly,” he added.

A separate statement posted on the Chinese Embassy in the US’ website stated as follows:

“The United States is not a country directly involved in the disputes. However, it has kept interfering in the issue,” read the statement. “Under the pretext of preserving stability, it is flexing muscles, stirring up tension and inciting confrontation in the region.”

China’s claims have been bolstered by a series of man-made islands which other regional countries say cuts into their territorial waters, as well as waters which should remain neutral. Controversially, China has over the past years established military bases on these disputed islands.

But ever since Trump came into office, the Pentagon has stepped up Naval operations in the contested territory, and sent dozens, if not hundreds, of destroyer-class ships and others to engage in “Freedom of Navigation” operations – or “Freeops”, for short.

 

Example of militarized ‘man-made island’ – Spratly islands in South China Sea, via Yahoo Singapore.

Most recently, the US sent two aircraft carriers to the area to hold military exercises, while Chinese ships held exercises of their own nearby.

Meanwhile, with neither side backing down, and daily heightened rhetoric, the potential for an explosive incident on the seas remains ever present.

END

4/EUROPEAN AFFAIRS

UK VS CHINA

Major reversal as UK bars Huawei form supplying 5G Network.  The world is turning against China

(courtesy zerohedge)

UK Bars Huawei From Supplying 5G Network In Major Reversal By Johnson

After rolling back a decision to allow Huawei-made components to be used in non-critical parts of the UK’s 5G infrastrucutre, the UK government has just announced a landmark decision to block Huawei parts from being used throughout its 5G infrastructure in a major win for the Trump Administration as it bids to exclude Huawei from lucrative western markets, due to national security concerns.

Starting Dec. 31, Huawei will be barred from providing new equipment to British networks. Additionally, Johnson’s National Security Council agreed Tuesday that all existing Huawei equipment must also be stripped from 5G networks by 2027. That’s a slower timeline than some national security-conscious Tories had demanded. The NSC reportedly concluded, according to the FT, that the latest round of sanctions out of Washington demonstrated that Huawei’s products truly cannot be trusted to be used in the UK’s telecoms infrastructure due to the extreme risk they will be compromised by Beijing. Since the US rules will stop Huawei from using US-made chips, the UK concluded that this would heighten the risk of spying as Huawei will now need to use more chips made in China.

Additionally, the UK’s full-fiber broadband operators will be given two years to “transition” away from the purchase of Huawei equipment, while BoJo urges them not to purchase any new Huawei kit.

Oliver Dowden, the UK’s secretary of state for media, digital cultural, media and sport, said the decision is intended to build a more “mature” economic relationship with China.

  • DOWDEN: U.K. WANTS `MODERN, MATURE RELATIONSHIP WITH CHINA’
  • DOWDEN: U.K. GOVERNMENT IS `CLEAR-EYED’ ON CHINA
  • DOWDEN: HUAWEI DECISION IS ABOUT LONG-TERM TELECOMS SECURITY
  • DOWDEN: WORKING WITH FIVE EYES SECURITY PARTNERS ON TELECOMS

Lord John Brown, a former head of BP between 1995 and 2007 (leaving crucially before the 2010 oil spill), has been head of Huawei’s UK board since September, when he became the first independent director in the UK.

As Bloomberg concludes rather ominously, the decision to strip out Huawei’s kit from British networks represents a major reversal by Johnson, and threatens to fuel a growing row between the U.K. and China at a highly sensitive time. China has warned Johnson will face “consequences” if the U.K. treats it as a “hostile partner.”

Offering a hint at just how angry Beijing will be with this decision, a top CCP mouthpiece warned a few hours ago that an open, fair and non-discriminatory environment will be a major “litmus test” for Chinese investment in the British economy post-Brexit, said Chinese Foreign Ministry spokesman Zhao Lijian.

In a statement released by a Huawei spokesperson, the company said the decision would hurt every Briton with a mobile phone, and risked relegating Britain to the “digital slow lane” for years to come.

Six months ago, Johnson infuriated Trump by authorizing Huawei to supply parts to 35% of the UK’s 5G infrastructure

This is BoJo’s second snub to Beijing in just a few weeks: 2 weeks ago, the PM offered a path to British citizenship for up to 3 million Hong Kongers (though HMG expects only about 200,000 to come).

end

Strange bedfellows:  Assad (Syria) sends in his Pantsir air defense system to counter Turkey in Libya.  Syria now backs Hafter and the USA

(Southfront)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Assad Sends Pantsir Air Defense Systems To Counter Turkey In Libya

Submitted by SouthFront,

The Syrian government seems to be deploying Pantsir-S1 air defense systems to Libya to assist forces of Field Marshal Khalifa Haftar in their battle against the Turkish-controlled Government of National Accord.

An unusual Pantisr-S1 air defense system was for the first time spotted in Libya last week, when local activists released a video of a Libyan National Army convoy moving towards the port city of Sirte besieged by Turkish-led forces.

A spokesman for the GNA forces in the region, Brig. Abdul Hadi Draa, also said that the Pantsir-S1 systems and other weapons were deployed at the Sirte airport on July 11. One of the convoys moving towards the airport included the Pantsir-S1 system on the unusual KAMAZ-6560 8×8 chassis. Previously, all the Pantsir-S1 systems operated by the LNA were based on the German MAN SX 45 8×8 chassis. This variant was supplied by Russia to the UAE, which later supplied systems to the LNA.

Other discriminant marks of the filmed Pantsir-S1 were a desert yellow paint and the older passive electronically scanned array search radar. The only country in the Middle East that operates Pantsir-S1 systems with such specifications and supports the Libyan National Army is Syria.

Damascus also sees the Libyan National Army and the House of Representatives as a natural ally because they also fight against the occupation of their country by Turkey.

In the last few weeks, Syrian Il-76 cargo planes made several unusual flights between Damascus International Airport and the al-Khadim Air Base in northeast Libya. The base is known to be hosting service members of the UAE that are involved in the assist and advice mission to support Haftar’s forces. The Pantsir-S1 system spotted on the road to Sirte may have been shipped from Syria to Libya during one of these flights.

At the same time, the Syrian government currently have good relations with Egypt, the UAE – the main backers of the Libyan National Army, and obviously with Russia – the producer of Pantsir-S1 systems and the country that provides background diplomatic support to the UAE-Egypt bloc in the conflict.

The Syrian Air Defense Forces operate dozens of Pantsir-S1 systems. Most of the Syrian systems are equipped with the advanced active electronically scanned array search radar. Therefore, Damascus may have opted to sell a part of its older systems to Haftar.

If this is confirmed, this move will likely allow Syria to improve its relations with the Libyan National Army, the UAE and Egypt, complicate Turkish plans to capture Srite, and last but not least strengthen the Syrian regional positions, which were significantly undermined by the ongoing war inside the country.

end

6.Global Issues

This has been bothering me as well.  It seems our antibodies produced to attack the COVID 19 wears away in a few months. It means that a vaccine will be totally useless!

(Michael Snyder)

Scientists Discover That One Big Assumption That Everyone Has Been Making About COVID-19 May Be Dead Wrong

Authored by Michael Snyder via TheMostImportantNews.com,

Over the past several months, there has been a tremendous amount of debate about almost every aspect of the COVID-19 pandemic.  People have been eager to debate about the severity of the virus, they have been eager to debate about the wisdom of the lockdowns, and they have been eager to debate about the effectiveness of wearing masks.  But the one thing that everyone could pretty much agree on is that eventually this pandemic would end.  Virtually all of us assumed that one way or another eventually most of the population would develop COVID-19 antibodies and that once we got to that point the pandemic would fizzle out.  Unfortunately, it appears that was not a safe assumption to make.

Yes, those that have had COVID-19 do develop antibodies.

But two new scientific studies have discovered that those antibodies start to fade very, very quickly.

For example, a study that was recently conducted in China found that more than 90 percent of COVID-19 patients experience steep declines in COVID-19 antibodies “within 2 to 3 months”

A new study from China showed that antibodies faded quickly in both asymptomatic and symptomatic COVID-19 patients during convalescence, raising questions about whether the illness leads to any lasting immunity to the virus afterward.

The study, which focused on 37 asymptomatic and 37 symptomatic patients, showed that more than 90% of both groups showed steep declines in levels of SARS-COV-2–specific immunoglobulin G (IgG) antibodies within 2 to 3 months after onset of infection, according to a report published yesterday in Nature Medicine. Further, 40% of the asymptomatic group tested negative for IgG antibodies 8 weeks after they were released from isolation.

And a very large study that was just conducted in Spain found that some patients that had initially successfully developed antibodies “no longer had antibodies weeks later”

A large study from Spain showed that antibodies can disappear weeks after people have tested positive, causing some to question how possible it will be to attain herd immunity.

A study published in medical journal Lancet showed 14% of people who tested positive for antibodies no longer had antibodies weeks later.

Needless to say, this is absolutely devastating news, and it has very serious implications for vaccine development

Such findings have implications for vaccine development, since the efficacy of a vaccine hinges on the idea that a dose of weakened or dead virus can prompt your body to generate antibodies that protect you from future infection. If those antibodies are fleeting, a vaccine’s protection would be fleeting too.

Short-lived antibodies also diminish hopes of achieving widespread or permanent herd immunity.

If antibodies can fade in some patients within weeks, and if just about everyone loses them after a few months, that would render any vaccine almost completely useless.

And if these findings are confirmed, we can pretty much forget about ever achieving “herd immunity”.

Instead, we are potentially facing a future in which COVID-19 will be with us permanently, and people will need to understand that there is a possibility that they will be able to get infected repeatedly.

Sadly, there is evidence that this is already starting to happen for some patients.  In a recent article for Vox, a doctor in Washington D.C. named D. Clay Ackerly shared that one of his patients got infected with COVID-19 again three months after being infected the first time…

“Wait. I can catch Covid twice?” my 50-year-old patient asked in disbelief. It was the beginning of July, and he had just tested positive for SARS-CoV-2, the virus that causes Covid-19, for a second time — three months after a previous infection.

And in that same article, Dr. Ackerly explained that other doctors are starting to see similar cases….

Recent reports and conversations with physician colleagues suggest my patient is not alone. Two patients in New Jersey, for instance, appear to have contracted Covid-19 a second time almost two months after fully recovering from their first infection. Daniel Griffin, a physician and researcher at Columbia in New York, recently described a case of presumed reinfection on the This Week in Virology podcast.

If you stop and really think about what all of this means, it will chill you to the core.

It means that COVID-19 is never going away.

And every time you get it, the more severe it is likely to be.  Each time it will do even more permanent damage to your system until it finally finishes you off.

I seriously wish that what I was telling you was not true.  I do not want to have to worry about a potentially deadly virus every time I leave my house.

But sticking our heads in the sand and pretending that everything is going to be okay somehow is not going to do us any good.

In fact, denial can kill you.

A 37-year-old Ohio man named Richard Rose originally thought that all of the fuss about COVID-19 was just “hype”, and he angrily insisted that he would never buy a mask.  The following is what he posted on Facebook on April 28th

‘Let make this clear,’ he wrote, in a post that was shared 10,000 times.

‘I’m not buying a ******* mask. I’ve made it this far by not buying into that damn hype.’

Sadly, he eventually got infected, and COVID-19 killed him on July 3rd

Richard Rose, a 37-year-old man from Port Clinton, Ohio, recently died from coronavirus after slamming “hype” about the pandemic on Facebook.

Rose’s family told Cleveland CBS affiliate 19 News the US Army veteran died at home on July 3, just three days after testing positive for COVID-19.

He was a healthy 37-year-old man.

If the virus can take him down, it could potentially take just about anyone down.

So please take this pandemic seriously.

Over the past week, we have seen daily numbers soar to levels that we have never seen before, and some experts believe that the numbers will continue to go higher as we approach the end of the year.

And as I just discussed above, if those that have had the virus quickly lose immunity, there will be nothing to stop this virus from sweeping across the globe year after year.

Needless to say, a lot more scientific studies need to be conducted, and hopefully those additional studies will show that the studies that were done in China and Spain were completely wrong.

But at this point the outlook for fighting this virus is exceedingly bleak, and scientists assure us that it is just a matter of time before a pandemic that is even worse comes along.

 

end

This is true and alarming: over half of COVID 19 patients in a new study have heart damage.  Reason: the great affinity to attach onto ACE 2 receptors and the heart has plenty.

(zerohedge)

More Than Half Of COVID-19 Patients In New Study Have Heart Damage

While the mortality rate from COVID-19 is far lower than initially projected, the disease can leave people with a bevy of health problems of unknown duration; from fatigue, to lingering respiratory issues, to loss of taste and smell.

 

KHN Illustration

Now, we can add heart damage to the list of common post-COVID complications, according to a new study.

The long and short of it: Older individuals with pre-existing heart issues, or those with ‘sleeper’ heart conditions which have gone undiagnosed, are at the most risk.

While we’ve known since at least February that coronavirus was suspected of causing – or contributing to – cardiac problems, the extent has been largely unknown. In April, The Harvard Gazette detailed the “multiple ways” COVID-19 may spark cardiac damage;

First, people with preexisting heart disease are at a greater risk for severe cardiovascular and respiratory complications from COVID-19. Similarly, research has shown that infection with the influenza virus poses a more severe threat for people with heart disease than those without cardiac problems. Research also shows that heart attacks can actually be brought on by respiratory infections such as the flu.

Second, people with previously undiagnosed heart disease may be presenting with previously silent cardiac symptoms unmasked by the viral infection. In people with existing heart-vessel blockages, infection, fever, and inflammation can destabilize previously asymptomatic fatty plaques inside the heart vessels. Fever and inflammation also render the blood more prone to clotting, while also interfering with the body’s ability to dissolve clots — a one-two punch akin to throwing gasoline on smoldering embers. –The Harvard Gazette

Last month the President of Burundi died of a sudden heart attack at the age of 55 after falling ill with coronavirus.

Now, a new study has found that more than half of COVID-19 patients have some type of heart damage, according to Newsweek.

A study involving 1,216 patients – 813 of whom were diagnosed with COVID-19, revealed that 55% had abnormalities when given an echocardiogram between April 3 and 20.

The paper, published in the journal European Heart Journal – Cardiovascular Imaging, had an average participant age of 62, while 70% were male.

Sixty percent of the scans were performed in a critical care setting, such as an ICU unit or emergency room, while the others were carried out in general medicine settings, cardiology, respiratory, or COVID-19 wards. Some 54 percent of the patients had severe COVID-19.

Those with abnormal scans were more likely to be older and have certain underlying heart problems. But after the team excluded patients with existing heart conditions from their analysis, the proportion of abnormal scan results and those with severe cardiac disease was similar. This suggests that the issues were related to COVID-19, they said. –Newsweek

In short, people with cardiovascular disease, or who are at risk of developing it, have a worse prognosis.

If only most advanced nations hadn’t been gorging on fast food for three decades as physical fitness took a backseat, leading to epidemic levels of heart disease.

end

Michael Every on yesterday’s events and this morning

(Michael Every)

Rabo: “What Was Behind Yesterday’s Violent Swings In The Market”

Submitted by Michael Every of Rabobank

Joining the dots (and dashes)

Yesterday saw swings in the markets, some key stocks in the US in particular, and equal swings in our underlying backdrop. Let’s try and join them into a coherent whole.

From the dots side we need to start with the plotters at the Fed. Dallas Fed President Kaplan spoke yesterday – and made a classic error, noting Fed emergency lending facilities “won’t be left in place indefinitely” and that “he is a believer that we will need to get bac to more unaided market function without as much intervention from the Fed. We’re just not at that point yet.” The key point/dot here is that our Robin Hood-y/Barstool-y markets clearly do not want to conceive of EVER going back to “unaided function”. They are predicated on a quite logical assumption that any reduction in central bank liquidity will result in a crash, which will result in the resumption of said liquidity. More money, please. And don’t think about taking it away.

From the dashes side, the US moved beyond not taking a formal stance on maritime disputes while insisting on freedom of navigation to openly calling some Chinese claims in the South China Sea illegal. In short, the Chinese 9-dash line showing the South China Sea as its own is rejected. Does one need to join many dots or dashes to see where such conflicting claims can lead? Not towards any kind of return to the US-China economic status quo ante at least.

Yes, and crucially, Bloomberg reports the US will not be specifically targeting the HKD peg over Beijing’s actions on Hong Kong by limiting access to USD because “it would be difficult to implement and might end up hurting the US”. It seems the ‘because markets’ side of the Trump administration has the upper hand over the geostrategic hawks here; naturally this is also the case with the de minimis EU response given in foreign policy dey are de mini-me and only understand markets – Germany’s foreign ministry just removed the Taiwanese flag from its website, for example.

This is a positive because such a US policy to be able to turn off the taps the same way the Fed can turn them on (and on and on) remains the financial equivalent of war as potent as the two US carrier strike groups now in the region. Yet there does not seem to be much dot and dash joining from the US side: how does it confront China over the South China Sea and Hong Kong, which is says it wants to, if ‘because markets’ is the White House rule?

Decoupling, perhaps. As Reuters reports the “The Trump administration plans to soon scrap a 2013 agreement between US and Chinese auditing authorities…a move that could foreshadow a broader crackdown on US-listed Chinese firms under fire for sidestepping American disclosure rules.” So new Chinese listings in the US, it would seem. At least that’s more business for Hong Kong – but then why leave the peg alone and let the US lose out without effecting any real change? Again, the dots and dashes don’t join up.

Indeed, the risks of stronger US actions are arguably still there. Sanctions over Hong Kong still loom and would end up having the same negative effect on HKD, and CNY, if applied as in Iran (whom China is signing a 25-year geostrategic cooperation agreement with.) Moreover, the UK has stated they expect 200,000 Hong Kongers to arrive over the next four years. That’s far less than 10% of those allowed to come, but still points to a huge drain of capital/FX reserves if each migrant arrives with savings; more so if US, Australia and Canada see a similar number.

In which case, it’s a good job Chinese exports were up 0.5% y/y in June (vs. -2.0% consensus) and even imports were up 2.7% (vs. -9.0% consensus). But can we really expect this export trend to continue in H2 with lockdowns coming back and the back of the US increasingly up? Even Europe is miffed, given if there is one thing mercantilists don’t like, it’s mercantilism.

On which front, current presidential favourite Joe Biden is today going to launch a plan to spend USD2 trillion over his first term in office to get to 100% clean electricity by 2024. That’s a large stimulus that would have been called insane six months ago. Now it’s moderate. He’s also talking about a global apology tour to stress that America First is over – and about making things in America with state spending – so that new USD2 trillion in liquidity, under-written by the Fed if you join the dots, is going to stay in the US and not flow to major exporters like China and Japan and the EU (so please don’t join those dots – or any US dots to Chinese dashes).

Could someone help Joe join the dots too? Either the apology tour won’t be very apologetic, or new US liquidity will lift boats other than American, or the US is going to continue America First anyway as it reflates. (Of course, to really close itself off it would need to impose capital controls on inflows….which are not going to happen ‘because markets’. )

Meanwhile, as a harbinger of how bad our Q2 is going to look when we get the data, Singapore’s GDP collapsed -42.1% q/q annualised.

This time last year one would have been brave to say even -4.2%. How the world changes. Indeed, with reports that: Covid-19 now infects more than 13 million people; natural immunity after catching it only lasts a few months; the latest Hong Kong outbreak variant is 30% more infectious than the previous wave; a large percentage of those who survive even moderate cases apparently end up with permanent heart damage; and as articles dribble out asking what the world looks like if we don’t get a vaccine at all, it’s perhaps time to join a few more dots and say ‘Dash it’.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1372 UP .0027 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 /RED

 

 

USA/JAPAN YEN 107.38 UP 0.114 (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 1.2524   DOWN   0.0026  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3625 UP .0014 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  TUESDAY morning in Europe, the Euro ROSE BY 27 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1372 Last night Shanghai COMPOSITE CLOSED DOWN 28.67 POINTS OR 0.83% 

 

//Hang Sang CLOSED DOWN 294.23 POINTS OR 1.14%

/AUSTRALIA CLOSED DOWN 0,72%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 294.23 POINTS OR 1.14%

 

 

/SHANGHAI CLOSED DOWN 28.67 POINTS OR 0.83%

 

Australia BOURSE CLOSED DOWN. 72% 

 

 

Nikkei (Japan) CLOSED DOWN 197.73  POINTS OR 0.87%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1794.20

silver:$18.93-

Early TUESDAY morning USA 10 year bond yield: 0.63% !!! UP 1 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.32 UP 1  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 96.47 UP 1 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.41% DOWN 1 in basis point(s) yield from YESTERDAY/

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

SPANISH 10 YR BOND YIELD: 0.40%//DOWN 4 in basis point yield from yesterday.

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

 

 

the Italian 10 yr bond yield is trading 81 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.65% 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 TUESDAY

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

Euro/USA 1.1398  UP     .0053 or 53 basis points

USA/Japan: 107.22 DOWN .052 OR YEN UP 5  basis points/

Great Britain/USA 1.25321 DOWN .0018 POUND DOWN 18  BASIS POINTS)

Canadian dollar DOWN 5 basis points to 1.3616

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0123    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9955  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA: 6.8659 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from MONDAY at 0.61 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.30 DOWN 2 in basis points on the day

Your closing USA dollar index, 96.29 DOWN 17  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 16.40  0.27%

German Dax :  CLOSED DOWN 149.37 POINTS OR  1.17%

 

Paris Cac CLOSED DOWN 68.62 POINTS 1.36%

Spain IBEX CLOSED DOWN 107.10 POINTS or 1.44%

Italian MIB: CLOSED DOWN 150,30 POINTS OR 0.75%

 

 

 

 

 

WTI Oil price; 40.36 12:00  PM  EST

Brent Oil: 43.03 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    71.15  THE CROSS HIGHER BY 0.15 RUBLES/DOLLAR (RUBLE LOWER BY 15 BASIS PTS)

 

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

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  55.66//

 

 

BRENT :  62.41

USA 10 YR BOND YIELD: … 2.03…

 

 

 

USA 30 YR BOND YIELD: 2.57..

 

 

 

 

 

EURO/USA 1.177 ( UP 49   BASIS POINTS)

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

 

 

USA DOLLAR INDEX: 97.69 DOWN 53 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2554 UP 119  POINTS

 

the Turkish lira close: 5.6298

 

 

the Russian rouble 62.86   UP 0.03 Roubles against the uSA dollar.( UP 3 BASIS POINTS)

Canadian dollar:  1.3034 UP 21 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.32%

 

The Dow closed UP 568.55 POINTS OR 2.15%

 

NASDAQ closed UP 99.69 POINTS OR 0.86%

 


VOLATILITY INDEX:  29.94 CLOSED DOWN 2.25

LIBOR 3 MONTH DURATION: 0.275%//libor dropping like a stone

 

USA trading today in Graph Form

Dow Outpaces Nasdaq For 3rd Straight Day; Bonds, Bullion, & Bitcoin Bid

A volatile day got ugly fast early triggered by the inflation data but was rescued by relatively positive virus reports from various states sparking the usual buying panic in stocks. A late-day panic-bid rescued everything of course as a MoC buy hit the tape…

 

The Dow rose 600 points, back above yesterday’s highs, finding support early on at the 200DMA…

 

From the June 8th highs, the non-Nasdaq indices are coming back a little…

 

But, Nasdaq was the laggard once again with The Dow outpacing it for the 3rd straight day – the biggest outperformance in 4 months…

 

And while stocks overall were bid (led by the Dow), investors also bought bonds…

Source: Bloomberg

They also bought bullion…

Source: Bloomberg

And they bought Bitcoin…

Source: Bloomberg

You want the truth!

You can’t handle the truth!

Value outperformed Growth for the second day in a row…

Source: Bloomberg

FANG Stocks plunged over 10% from yesterday’s highs before bouncing back intraday…

Source: Bloomberg

TSLA could not hold its manipulated opening ramp gains for the second day in a row…

WFC was ugly as JPM clung to gains after earnings…

Source: Bloomberg

10Y Treasury yield closed near 3-month lows…

Source: Bloomberg

The Dollar reverted back to the lower end of its recent range…

Source: Bloomberg

Cryptos were mixed today, weak overnight but bid from the European open…

Source: Bloomberg

Commodities didn’t move too much today aside from oil which bounced during the US day session (ahead of tonight’s inventory data)

Source: Bloomberg

And finally, for all those panicking about a “second wave” and demanding nationwide lockdowns, perhaps an uncomfortable glance at the rate of deaths might change your mind about just how much hysteria is required…

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

We must be cognizant of this: consumer prices soar the most in 11 years in June on a rebound on fuel costs. The previous 3 months witnessed deflation. Is the Fed’s printing machine manifesting itself with a rise in prices

(zerohedge)

Consumer Prices Soar By Most In 11 Years In June On Rebound In Fuel Costs

After three months of ‘deflation’, consumer prices were expected to rebound strongly in June and it did, with headline CPI beating expectations (+0.6% MoM vs 0.5% exp). That is the biggest monthly jump since June 2019

 

Source: Bloomberg

Both Goods (Ex-Energy) and Services (ex-Energy) CPI growth slowed on a YoY basis…

Source: Bloomberg

The driver of the headline beat and surge in CPI was soaring motor fuel costs – up 12% MoM…

Source: Bloomberg

Will The Fed shrug this off as ‘transitory’?

iii) Important USA Economic Stories

We must now sit shiva for another entity: Vermont’s Green Mountain College is bust due to the coronavirus and it is now on the auction block with a $3 billion bid.

(zerohedge)

Higher Education Bust – Vermont College Goes On Auction Block With $3 Million Bid

The great college bull market is over. We noted that earlier this year when we said, “20% of colleges and universities will shut down or merge in the next ten years.”

The for-profit education boom and bust is old news. Now the virus-induced recession will pulverize nearly every higher education facility in the country.

Even before the pandemic, enrollment was declining, and finances at colleges and universities were quickly deteriorating, an indication the bull market is over.

Rising virus cases has undoubtedly complicated the picture for reopening colleges and universities this fall semester. The president has demanded schools reopen, while Dr. Anthony Fauci, the nation’s top infectious disease expert, warned virus cases must be controlled before children return to schools.

Trump tweeted Wednesday: “I disagree with @CDCgov on their very tough & expensive guidelines for opening schools. While they want them open, they are asking schools to do very impractical things. I will be meeting with them!!!”

At the same time, the Trump administration has requested international students to leave the country if their college and or university switch to online-only courses, which will undoubtedly pressure the finances of these institutions.

Given these long term and short term factors resulting in the implosion of higher education – the unraveling is set to accelerate in the quarters ahead as colleges and universities are now closing forever, forced to sell campuses at auction.

Green Mountain College, a private liberal arts college in Poultney, Vermont, is the latest college to go bust, will be auctioned by Maltz Auctions, a premier full-service auction company, with a starting bid at $3 million.

The 155-acre campus, located in the Historic downtown of Poultney, was previously listed for $23 million.

“This quintessential New England campus had been the home of Green Mountain College, a private 4-year liberal arts school focused on environmental, social, and economic sustainability, which unfortunately closed at the end of 2019,” stated Keith Lowey of Verdolino & Lowey, the Chief Restructuring Officer for Green Mountain College.

“It’s truly a turn-key opportunity for the right buyer as it is comprised of classic New England dormitory buildings, classrooms, administrative offices, lecture halls, cafeteria, student center, community space, library building, athletic facilities- including fields, gymnasium, pool, and more, a 400-seat theater/auditorium, fine arts studios and galleries, a working farm, guest residences, and a campus-wide wood-fueled biomass (carbon neutral) heating system.” Lowey then added, “In 2016, the property was appraised at $20m. There are also favorable financing options available for qualified buyers with $3.2m being the next bid increment accepted.”

Maltz Auction’s CEO, Richard Maltz, said, “We are pleased there was great interest in this property as it represents an exceptionally rare opportunity to acquire an environmentally sustainable, green campus that is superbly located and beautifully maintained in a single transaction. The party who placed the $3m stalking horse bid understands that there is incredible reuse or redevelopment potential- and great value.”

The auction is expected to take place on August 18, around 1:00 p.m.

end

Biden’s green energy plan:  2$trillion dollars to move USA to 100% clean energy by 2035.  Good luck to them.  Biden moves far left joining his former opponents

(zerohedge)

Biden Unveils $2 Trillion Plan To Move US To “100% Clean Energy” By 2035

One of the more laughable campaign promises embraced by Democratic primary opponents during the 2020 primary campaign was a promise – featured prominently in AOC and Sen Markey’s “Green New Deal” policy proposal – to move America to “100% clean energy” by 2035.

Many who read this initially probably don’t understand that yes, they’re really calling for the entire US economy to move off of fossil fuels by 2035. Accomplishing such a rapid, radical shift would require a font of disposable capital that would only really make sense under an MMT framework where debt can be accrued without limit and without ever intending for debts to be repaid.

Now, that policy commitment has become a featured component of Biden’s economic spending plan, which he plans to unveil on Tuesday during another speech. Except unlike the plan he embraced in the primary, this one will include an additional $300 billion commitment to finance the left’s green economy dream.

Here’s more from BBG:

Joe Biden on Tuesday will call for setting a 100% clean-electricity standard by 2035 and investing $2 trillion over four years on clean energy, three people familiar with his plan said Monday.

The Democratic nominee’s new commitments mark a clear shift toward progressives’ environmental priorities and cutting the use of fossil fuels. The people briefed on his plan spoke on the condition of anonymity ahead of its formal rollout Tuesday in Wilmington, Delaware.

The $2 trillion in spending across four years is in place of the more modest $1.7 trillion over 10 years plan that Biden proposed last year while fighting for the nomination. Most of that investments in the new proposal would be one-time costs with the goal of spending the money to the maximum extent possible during those four years.

As BBG acknowledges, the Biden plan leaves out some of the more extreme proposals included in the new deal – though not for want of trying: By decimating air travel, the virus has effectively curtailed air travel (since planes are right up there with cow farts in terms of environmental threat level).

But after all that braying and howling about Biden being “neoliberal scum”, it appears the far-left has gotten to the former VP, and his team is now overcompensating to a degree that threatens to alienate centrist voters.

Yet the challenge for Biden lies in convincing progressive voters that he hasn’t left them short even as he set aside some of the more ambitious moves called for in the Green New Deal championed by left-wing Democrats including Representative Alexandria Ocasio-Cortez of New York.

Biden’s new proposals bring him closer to the positions of his more progressive former primary opponents, including Massachusetts Senator Elizabeth Warren and Washington Governor Jay Inslee, whose campaign focused on climate change. Inslee had proposed a 100% clean electricity standard by 2035 that Warren later endorsed. A task force of allies of Biden and Senator Bernie Sanders offered a similar idea last week, recommending that Democrats commit to eliminate carbon pollution from power plants by 2035.

Biden foreshadowed his proposals at a Monday fundraiser, telling donors that “2050 is a million years from now in the minds of most people. My plan is focused on taking action now, this decade, in the 2020s.”

Another great example of this is Biden’s plan to create a “climate corps”, which has been described as a “climate conservation corp” modeled after “the work-relief programs of Franklin Delano Roosevelt”.

Biden will also call for the creation of a climate conservation corps modeled after the work-relief programs President Franklin Delano Roosevelt created during the Great Depression, according to two more people briefed on the initiative.

Oh, and let’s not forget the piece de resistance: Taking the Obama EV tax credits one step further, Biden will instead hand out cash vouchers allowing citizens to trade in their gas powered cars for electric models.

The plan also embraces Senate Minority Leader Chuck Schumer’s proposal to rapidly turn over of the nation’s automobile fleet, with taxpayers enticed by cash vouchers to trade in their gas-powered cars for plug-in electric, hybrid or hydrogen fuel cell cars, the two people said. The initiative also would steer tens of billions of dollars toward building charging infrastructure including in rural communities.

A chicken in every pot, and a Tesla in every garage. Maybe yesterday’s $TSLA reversal really was just another dip to buy?

end
Expect a horrific crash with record loss provisions
(zerohedge)

Banks Brace For A Historic Crash With Record Loss Provisions

For many years after the financial crisis, US commercial banks were mocked when instead of generating earnings the old-fashioned way, by collecting the interest arb on loans they had made, or even by frontrunning the Fed with their prop (and flow) trading desks, they would “earn” their way to just above consensus estimates by releasing some of their accumulated loan loss reserves, an accounting gimmick if there ever was one, which would end up boosting the bottom line thanks to a few “kitchen sink” quarters in the aftermath of the Lehman bankruptcy. The thinking here went that having suffered massive losses during the financial crisis, when all banks suffered crushing losses so they would then get bailed out, these same banks would then “recoup” billions in losses over time that would be run through the income statement as a reversal of accrued loss provisions.

Well, after the longest expansion in history, this process has gone aggressively into reverse, and instead of releasing loan loss reserves the banks are now building them up again as the “biblical” wave of consumer and corporate defaults due to the US economic shutdown hits US banks.

We first made this observations exactly one month ago when in “Houston: The Banks Have A Huge Problem” we said, and we quote…

… on average most banks – this time including the hedge fund known as Goldman Sachs which has since pivoted to becoming a subprime lender to the masses with “Marcus” – saw their loan loss provisions surge by roughly 4x from year ago levels, with JPMorgan’s jumping the most, or just over 5x, hinting the other banks are likely underprovisioned for the storm that is coming.

Alas, these provisions amounts are nowhere near enough if history is any indication.

Once again we were right, because as the first three reporting banks revealed today, the economic situation – as observed by the same banks that have the bird’s eye view over the economy and what is coming, in the form of non-payment on their existing loans – is about to get far worse, and as shown in the chart below, Q2 loss provisions surged from Q1 – just as we said they would.

Here are the facts: JPMorgan, Citigroup and Wells Fargo (BofA, and a bunch of other banks are set to report on Thursday) set aside almost $28 billion for bad loans inQ2, up almost $10 billion from last quarter, rising to a level just barely surpassed only once before, during the depths of the financial crisis in Q4 2008. While Bloomberg says that “the total was higher than analysts had expected”, it was in line with what we said three months ago would happen, with all three lenders saying their economic outlook had deteriorated as the coronavirus continues to rage through the U.S. Total Q2 provisions brought the three banks’ 2020 total to $47 billion, more than those firms set aside in the last three years combined.

And it would have been far, far worse had the Fed not nationalized the bond market, allowing banks such as JPM to literally print money by issuing hundreds of billions in risk-free bonds and stocks.

Unfortunately, while banks may have avoided the full brunt of the covid depression this quarter thanks to the Fed’s actions, they have at best managed to delay the impact of the coming bankruptcy tsunami.

“This is not a normal recession. The recessionary part of this you’re going to see down the road,” Jamie Dimon said Tuesday. “You will see the effect of this recession. You’re just not going to see it right away because of all the stimulus.”

For once, Jamie was actually telling the truth, and it’s why JPM’s total provisions hit a record $10.5 billion. It was even uglier for Wells, which recorded the biggest loan-loss provision in its history and led to the bank’s first net loss since 2008 as well as a record, 80% cut to its dividend.

Just as unfortunately, as we discussed earlier, Wells is about to suffer much more pain, as the bank has taken just 2.2% allowance for credit losses on its $935BN in loans outstanding as of June 30.

And yet, as Wells itself admitted, it has a nearly $150BN CRE portfolio, where we expect to see tens of billions of impairment before it’s all said and done.

The above is also why we are 100% certain that we will again be right in predicting that we have not yet seen the peak of loss reserves by the big banks. 

There is another reason why it’s about to get worse: the propaganda out of the White House has hit a fever pitch, and is touting a sharp economic bounce even as the virus surges again and threatens new waves of lockdowns.

“I don’t see an interruption to the V-shaped recovery,” White House economic adviser Larry Kudlow told Fox News on Monday. “If there is one, I’ll be honest and factful about it. But at the moment, with our fingers crossed and some prayers, I think we’re on track for a very strong second half of the year, probably still 20% growth plus.”

White House cheerleadine aside, loans to companies are souring. Wells Fargo’s nonperforming assets jumped 22% from the first quarter, largely driven by loans to the oil and gas and commercial real estate industries.

To account for the jump in defaults, the bank boosted its reserve for credit losses by $8.4 billion in the period, with more than three-quarters of the increase coming on the commercial side. Citigroup said its roughly $3.5 billion boost to wholesale lending reserves was partly driven by a slew of credit-rating downgrades.

“There’s significantly more reserves against non-investment grade names,” Citigroup CFO Mark Mason said. “Within that non-investment grade bucket, we’ve seen a lot of further downgrades.”

We profiled some of the dozens of names that folded in recent months in “The “Biblical” Default Wave Arrives: Here Is The Avalanche Of Bankruptcies Unleashed By Coronavirus.”

But the biggest reason why credit losses are about to soar is that paradoxically, US consumers have actually been quite well off, and have so far avoided massive personal losses for one simple reason: personal income at the individual and household level has soared thanks to massive government handouts, making this the “strangest recession in history.”

All of this is about to reverse in August once most of the government stimulus programs end. Until then, however, things are better than expected: Citigroup’s non-accrual consumer loans fell 7% from a year earlier. JPMorgan’s total net charge-offs were almost half what was expected.

“It’s fair to say right now, given where we are in the crisis, that the relationship between the business cycle and the health of the business sector and the health of the household sector is broken,” JPMorgan CFO Jennifer Piepszak said.

She is right, but that linkage is about to reinstitute itself with a bang in August and September, when a new wave of covid will lead to millions more in unemployed, coupled with a sharp collapse in government stimulus payments and benefits. That’s when the real crisis will hit.

“We’re just guessing,” Dimon concluded in today’s earnings call. “We are prepared for the worst case.”

No Jamie, you’re not.

iv) Swamp commentaries)

Ghislaine Maxwell Pedo Sex-Trafficking Investigation Launched In Virgin Islands

Ghislaine Maxwell – who’s facing six charges in New York over her alleged role in Jeffrey Epstein’s pedophile sex-trafficking ring, is also under investigation in the US Virgin Islands.

The revelation comes in a July 10 filing to intervene in a lawsuit Maxwell filed against Epstein’s estate seeking reimbursement for legal fees, and claiming that Epstein had repeatedly promised to support her financially, according to The Sun.

The Island’s Justice Department is “investigating Maxwell’s participation in Epstein’s criminal sex trafficking and sexual abuse conduct,” read the court papers.

Epstein infamously owned Little St. James island, dubbed ‘pedo island’ over accusations that he would fly underage girls there to fulfill his sexual desires and those of his associates. Famous guests reportedly include Bill Clinton, Prince Andrew, Stephen Hawking, Les Wexner and others.

One accuser, Chaunte Davies, says she was raped by Epstein over the course of several years before finally parting ways with him in 2005.

 

Accuser Chaunte Davies, Ghislaine Maxwell

Now 40, Chaunte says the ex-Wall Street banker performed a sex act on himself during their first massage session – and that she was “manipulated” into staying in their circle by Maxwell. “Within weeks she was jetting round the world on his private jet and on to his island of Little Saint James,” according to the report.

“The government’s need to intervene is further fueled by Maxwell’s inappropriate use of the Virgin Islands courts to seek payment and reimbursement from the Epstein criminal enterprise, while she circumvents the service of process of government subpoenas related to her involvement in that criminal enterprise,” reads the filing.

Island officials have also subpoenaed Maxwell to try and compel her to appear before a local court – a bid which may prove difficult considering her current status as an inmate awaiting trial at a New York detention center following her July 2 arrest in New Hampshire. Maxwell has evaded Virgin Islands officials since March.

Maxwell is set to appear for a virtual bail and arraignment hearing on Tuesday. Her legal team has requested that she be freed on $5 million bail, arguing that she’s not a flight risk and may catch coronavirus in jail. Prosecutors for the US Justice Department strongly disagreed, pointing to Maxwell’s opaque finances and global contacts that pose a significant flight risk.

“She has demonstrated her ability to evade detection, and the victims of the defendant’s crimes seek her detention,” said DOJ prosecutors in their filing. “Because there is no set of conditions short of incarceration that can reasonably assure the defendant’s appearance, the government urges the Court to detain her.”

END

You knew that this was coming: WHO will not investigate Wuhan lab  where it all started

(zerohedge)

WHO Will Not Investigate Wuhan Lab Where Coronavirus Was Kept

Authored by Steve Watson via Summit News,

The World Health Organisation announced Monday that it will not be visiting the Wuhan Institute of Virology during its investigation into the origins of the coronavirus, despite the fact that the lab held samples of coronavirus that were almost exactly the same as that which caused a global pandemic.

The WHO stated that its mission will only seek to “advance the understanding of animal hosts for Covid-19 and ascertain how the disease jumped between animals and humans”.

As The Independent notes, the announcement suggests that the theory of the virus being modified or leaking from the lab in Wuhan has already been completely discounted by the WHO.

In addition, the body has refused to provide any details of the locations it will be visiting during its investigation in China.

As The Independent report notes, “It had previously emerged the lab had held a coronavirus sample that was 96.2 per cent the same as Covid-19 for almost a decade. This prompted speculation about the origin of the virus…”

Several prominent researchers and scientists have also noted that the lab must be investigated given this fact.

It also previously emerged that the Wuhan Institute of Virology took a shipment of some of the world’s deadliest pathogens just weeks before the outbreak of the coronavirus. It is also known that the lab was tampering with natural pathogens and mutating them to become more infectious.

Intelligence figures across the globe have also called for the Wuhan lab to be investigated.

The latest development comes amid reports that Chinese virologists have fled Hong Kong and effectively defected to the West with evidence against the Chinese Communist Party concerning its role in the COVID-19 pandemic.

The WHO previously complained that it had ‘not been invited’ by China to investigate the outbreak, and has continually been criticised for propping up Communist Party talking points.

end

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

Well that is all for today

I will see you WEDNESDAY night.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: