JULY 27//GOLD CLOSES AND SURPASSES ALL PREVIOUS HIGHS: GOLD UP $35.30 TO $1935.60//SILVER UP A HUGE $2.67 TO 24.31//HUGE INCREASE IN GOLD TONNAGE AT THE COMEX: NOW STANDING 26.385 TONNES//CORONAVIRUS UPDATES THROUGHOUT THE GLOBE//CHINA VS USA//SWAMP STORIES FOR YOU TONIGHT//

GOLD::$:1935.60  UP $35.30   The quote is London spot price (cash market)

This is an all time high

 

 

 

 

Silver:$24.31// UP $2.67  London spot price ( cash market)

 

There is now no question that our bankers’ precious metals derivatives have blown up. The Fed is loaning these crooks mega dollars as they are hugely offside on their shorts of gold and silver.

 

your data:

 

Closing access prices:  London spot

i)Gold : $1941.20  LONDON SPOT  4:30 pm

 

ii)SILVER:  $24.56//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

OCT GOLD:  $1943.10  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /: $7.50  ($1.50 ABOVE NORMAL CONTANGO)

DEC. GOLD  $1956.40   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $21.00   ($9.00 ABOVE NORMAL CONTANGO)

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $24.53…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  22 CENTS  PER OZ

 

 

 

COMEX DATA

 

 

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

receiving today: 184/480

issued: 40

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,897.300000000 USD
INTENT DATE: 07/24/2020 DELIVERY DATE: 07/28/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 37
104 C MIZUHO 31
135 H RAND 5
363 H WELLS FARGO SEC 150
657 C MORGAN STANLEY 37
657 H MORGAN STANLEY 294
661 C JP MORGAN 40 184
690 C ABN AMRO 145
709 H BARCLAYS 2
800 C MAREX SPEC 11
905 C ADM 24
____________________________________________________________________________________________

TOTAL: 480 480
MONTH TO DATE: 8,439

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 480 NOTICE(S) FOR 48,000 OZ  (1.4930 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  8439 NOTICES FOR 843,900 OZ  (26.249 TONNES)

 

 

SILVER

 

FOR JULY

 

 

92 NOTICE(S) FILED TODAY FOR 460,000  OZ/

total number of notices filed so far this month: 15,770 for 78.850 MILLION oz

 

BITCOIN MORNING QUOTE  $10,233  UP 304

 

BITCOIN AFTERNOON QUOTE.: $10,864 UP 942

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $35.30 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

NO CHANGE

 

 

 

 

GLD: 1,228.81 TONNES OF GOLD//

 

WITH SILVER UP $2.67 TODAY: AND WITH NO SILVER AROUND:

 

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV:

 

NO CHANGE IN SILVER INVENTORY

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 558.779  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A SMALL SIZED 424 CONTRACTS FROM 185,705 UP  TO 186,129, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE SMALL SIZED GAIN IN  OI OCCURRED DESPITE OUR 12 CENT LOSS IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS PRIMARILY DUE TO HUGE  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A STRONG INCREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 1044 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 620 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  620 CONTRACTS. WITH THE TRANSFER OF 620 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 620 EFP CONTRACTS TRANSLATES INTO 6.30 MILLION OZ  ACCOMPANYING:

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

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

83.55 MILLION OZ INITIALLY IN JULY.

 

FRIDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 12 CENTS ).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE SMALL GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG INCREASE IN STANDING OF SILVER OZ STANDING FOR JULY,  HUGE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 1044 CONTRACTS OR 5.220 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:

19,963 CONTRACTS (FOR 18 TRADING DAY(S) TOTAL 19,963 CONTRACTS) OR 99.82 MILLION OZ: (AVERAGE PER DAY: 1109 CONTRACTS OR 5.545 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 99.82 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 13.82% 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:          1,237.23 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                               99.82 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 SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 424, DESPITE OUR 12 CENT LOSS  IN SILVER PRICING AT THE COMEX ///FRIDAYTHE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 620 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  1044 CONTRACTS (WITH OUR 12 CENT LOSS IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 620 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A SMALL SIZED INCREASE OF 640 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 12 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $22.64 // 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. 0.9305 BILLION OZ TO BE EXACT or 132% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JULY  DELIVERY MONTH/ THEY FILED AT THE COMEX: 92 NOTICE(S) FOR 460,000  OZ OF SILVER.

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018. AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.70//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.970 MILLION OZ; JAN:  5.075 MILLION OZ.//FEB 1.480 MILLION OZ//MAR: 23.005 MILLION OZ/APRIL 4.660 MILLION OZ//MAY  45.220 MILLION OZ//JUNE: 2.205 MILLION OZ// JULY 83.55 million oz
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A SMALL SIZED 1107 CONTRACTS TO 607,335 AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE  SMALL LOSS OF COMEX OI OCCURRED DESPITE OUR STRONG RISE IN PRICE  OF $8.80 /// COMEX GOLD TRADING// FRIDAY// WE  HAD HUGE BANKER SHORT COVERING, ANOTHER HUGE SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A GOOD EXCHANGE FOR  PHYSICAL ISSUANCE AND THE CONTINUATION OF GOLD SPREADER LIQUIDATION. THIS ALL HAPPENED WITH OUR STRONG GAIN IN PRICE OF $8.80 .

 

WE HAD A VOLUME OF 1    4 -GC CONTRACTS//OPEN INTEREST  58

 

WE GAINED A  GOOD SIZED 6608 CONTRACTS  (20.55 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 7718 CONTRACTS:

CONTRACT .; AUG 7418 AND OCT: 0 DEC: 300; FEB: 0  ALL OTHER MONTHS ZERO//TOTAL: 7118.  The NEW COMEX OI for the gold complex rests at 607,335. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6608 CONTRACTS: 1110 CONTRACTS DECREASED AT THE COMEX AND 7718 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6608 CONTRACTS OR 20.55 TONNES. FRIDAY, WE HAD A GAIN OF $8.80 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 20.55 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 $8.80).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 GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (7718) ACCOMPANYING THE SMALL SIZED LOSS IN COMEX OI  (1110 OI): TOTAL GAIN IN THE TWO EXCHANGES:  9635 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)ANOTHER STRONG  INCREASE IN GOLD  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI LOSS AND .5) SMALL EXCHANGE FOR PHYSICAL ISSUANCE 6) CONTINUAL  GOLD SPREADER LIQUIDATION... AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//FRIDAY//$8.80.

 

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 : 73,619 CONTRACTS OR 7,361,900 oz OR 228.89 TONNES (18 TRADING DAY(S) AND THUS AVERAGING: 4089 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 18 TRADING DAY(S) IN  TONNES: 228.89 TONNES

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

THUS EFP TRANSFERS REPRESENTS 228.89/3550 x 100% TONNES =6.44% 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   3223.18  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;                       204.98 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 SMALL SIZED 424 CONTRACTS FROM 184,943 UP TO 186,129 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 SMALL SIZED GAIN IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   HUGE BANKER SHORT COVERING , 2) A GOOD ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A CONSIDERABLE INCREASE STANDING AT THE SILVER COMEX FOR JULY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 620 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: 620 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1320 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 424  CONTRACTS TO THE 620 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD GAIN OF 1044 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 5.220 MILLION  OZ, OCCURRED WITH OUR 12 CENT LOSS 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))MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 8.46 POINTS OR 0.26%  //Hang Sang CLOSED DOWN 103.07 POINTS OR 0.41%   /The Nikkei closed DOWN 35.76 POINTS OR 0.16%//Australia’s all ordinaires CLOSED UP .35%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0033 /Oil UP TO 41.43 dollars per barrel for WTI and 43/51 for Brent. Stocks in Europe OPENED MOSTLY RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0033 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0062 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

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

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL A SMALL SIZED 1110 CONTRACTS TO 6078,335 MOVING FURTHER FROM OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS SMALL COMEX DECREASE OCCURRED DESPITE OUR STRONG  GAIN OF $8.80 IN GOLD PRICING /FRIDAY’S COMEX TRADING//). WE ALSO HAD A GOOD EFP ISSUANCE (7718 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS  INCREASE IN STANDING AT THE GOLD COMEX//JULY DELIVERY MONTH (SEE BELOW) AND CONTINUATION OF SPREADER LIQUIDATION , …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 6608 CONTRACTS WITH GOLD’S  GAIN IN PRICE. NOTE THE FACT THAT LATELY THE EXCHANGE FOR PHYSICALS ARE SMALL.. SOME OF OUR MAJOR BANKERS REFUSE TO USE THE SERIAL FORWARDS AS IT JUST TOO COSTLY FOR THEM. THUS THE COMEX OPEN INTEREST RISES APPRECIABLY AGAINST A LOWER ISSUANCE OF THESE EXCH. FOR PHYSICALS.

 

 

(SEE BELOW)

 

 

WE  HAD 1    4 -GC VOLUME//open interest LOWERS TO 58

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 7718 EFP CONTRACTS WERE ISSUED:  AUG  7418 , OCT: 0  DEC 300; FEB 00 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 7718 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 GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 6608 TOTAL CONTRACTS IN THAT 7,718 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A SMALL SIZED 1110 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A GOOD AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR SMALL COMEX OI LOSS,  A GOOD INCREASE IN  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)…  ZERO LONG LIQUIDATION, AND CONTINUING  SPREADER LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A VERY STRONG GAIN IN COMEX PRICE OF 8.80 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $8.80).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 20.55 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 6608, CONTRACTS OR 660800 OZ OR 290.55 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:  607,335 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 60.74 MILLION OZ/32,150 OZ PER TONNE =  1889 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1889/2200 OR 85.87% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 555,482 contracts// huge volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  389,017 contracts//  volume  strong //most of our traders have left for London

 

 

JULY 27 /2020

JULY GOLD CONTRACT MONTH

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
5984.205 oz
HSBC
Scotia
Deposits to the Dealer Inventory in oz  18,054.263 oz

Brinks

 

 

 

Deposits to the Customer Inventory, in oz  

85,509.770

OZ

BRINKS

HSBC

 

 

 

No of oz served (contracts) today
480 notice(s)
 48,000 OZ
(1.4930 TONNES)
No of oz to be served (notices)
44 contracts
(4400 oz)
0.1368 TONNES
Total monthly oz gold served (contracts) so far this month
8439 notices
843,900 OZ
26.249 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) Int the dealer Brinks:  18,054.263 oz

 

 

 

total deposit: 18,054.263 oz

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 2 deposit into the customer account

 

 

i) Into HSBC:  32,150.000  oz

1000 kilobars

 

 

 

 

total deposit:  85,509.770 oz

 

 

we had 2 gold withdrawals from the customer account:

i) out of HSBC: 1557.05

ii) out of Scotia:  4427.155 oz

total withdrawals;  5984.205 oz

 

 

We had 1  kilobar transactions  +

 

ADJUSTMENTS: 4 //

 

dealer to customer

Brinks:  2411.325 oz

and Malca: 22,955.824 oz

 

customer to dealer (eligible to registered)

HSBC: 58,339.640 oz

Scotia: 38,402.540 oz

 

 

 

 

 

 

 

 

The front month of JULY registered a total of 524 oi contracts FOR a GAIN of 388 contracts. We had 83 notices served on FRIDAY so we GAINED ANOTHER 471 contracts or an additional 47,100 oz will stand for delivery as they refused to morph into London based forwards. Somebody was badly in need of some gold to put out fires elsewhere!

 

 

Next comes August and another strong delivery month and here the OI  FELL BY A  NORMAL 36,618  contracts DOWN to 190,367 contracts, as we continue our countdown to first day notice. We have 4 more reading days before first day notice.

 

August is contracting very slowly…and thus  we are going to have a whopper of a delivery month come July 31/2020..first day notice for the August contract month.

 

Sept saw another addition of 113 contracts to stand at 1,698.  Oct GAINED 3255 contracts UP to 51,834. (The boys still prefer August)

 

We had 480 notices filed today for  48,000 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 40 notices were issued from their client or customer account. The total of all issuance by all participants equates to 480 contract(s) of which 184 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 0 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JULY /2020. contract month, we take the total number of notices filed so far for the month (8439) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (524 CONTRACTS ) minus the number of notices served upon today (480 x 100 oz per contract) equals 848,300 OZ OR 26.385 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 (8439 x 100 oz + (524 OI) for the front month minus the number of notices served upon today (480) x 100 oz which equals 848,300 oz standing OR 26.385 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 471 contracts or an additional  471 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

271,997.477 oz PLEDGED  JULY 9// 2020  JPMORGAN:  8.46 TONNES

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

deleted Int. Delaware pledge July 7  (600 tonnes)

 

653,730.982 oz pledged June 12/2020 Brinks/july 2/july 21               20.333 tonnes

total pledged gold:  1,112,365.719 oz                                     34.59 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 382.73 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 26.385 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  13,417,295.485 oz or 417.33 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; SOME JULY 22) which cannot be settled upon:  271,997,477, oz (or 8.46 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 july 2 and july 21
g) pledged gold at Brinks: 653,730.982 oz added which cannot be settled:  20.333 tonnes
total weight of pledged:  1,112,365.719 oz or 34.59 tonnes
thus:
registered gold that can be used to settle upon:  12,304,930.0  (382.73 tonnes)
true registered gold  (total registered – pledged tonnes  12,304,930.0 (382.73 tonnes)
total eligible gold:  21,716,622.492 oz (675.47 tonnes)

total registered, pledged  and eligible (customer) gold;   35,133,917.977 oz 1092.81 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  966.47 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 27/2020

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
 538,829.778 oz
CNT
Brinks
Scotia

 

 

Deposits to the Dealer Inventory
540,854.100 oz
Brinks

 

Deposits to the Customer Inventory
1456,042.240 oz
CNT
No of oz served today (contracts)
92
CONTRACT(S)
(460,000 OZ)
No of oz to be served (notices)
940 contracts
 4,700,000 oz)
Total monthly oz silver served (contracts)  15,770 contracts

78,850,000 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 1 deposit into the dealer:
i) Into the dealer Brinks:  504,854.100 oz

total dealer deposits: 504,854.100  oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 1 deposits into the customer account

into JPMorgan:   0

 

 

 

ii) Into CNT  1,456,042.240 oz

 

 

 

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

JPMorgan now has 163.098 million oz of  total silver inventory or 49.49% of all official comex silver. (163.098 million/330.957 million

 

total customer deposits today:  1,456,042.240    oz

we had 3 withdrawals:

 

 

i)Out of CNT:  124,661.900 oz

 

ii) Out of Delaware: 7171.228 oz

iii) Out of Brinks: 397,048.250 oz

iv) Out of Scotia:  9968.400 oz

 

 

 

total withdrawals; 538,829.778   oz

We had 2 adjustments

Brinks:   dealer to customer:  532,255.909 oz

CNT;  9838.800 oz dealer to customer:

 

total dealer silver: 131.069 million

total dealer + customer silver:  330.957 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  1031 contracts, as we lost 239 contracts.  We had 318 notices served on FRIDAY, so we GAINED 79 contracts or an additional 395,000 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 on this side of the pond. We still have a huge amount of contracts still outstanding to be served upon in July.

 

 

 

The next month after July is the non active month of  August and here  sees its open interest ROSE by 141 contracts RISING  to 923

The big September contract month sees a LOSS of 1109 contracts down to 137,818.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 92 contract(s) FOR 460,000, 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 15,770 x 5,000 oz = 78,850,000 oz to which we add the difference between the open interest for the front month of JULY.(1031) and the number of notices served upon today 92 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 15,770 (notices served so far) x 5000 oz + OI for front month of JULY (1031)- number of notices served upon today (92) x 5000 oz of silver standing for the JULY contract month.equals 83,550,000 oz.  (A WHOPPER )//ALL TIME RECORD FOR ONE DELIVERY MONTH (corrected totals from yesterday)

WE GAINED 79 CONTRACTS OR 395,000 OZ WILL STAND FOR DELIVERY. SILVER IS STILL VERY SCARCE ON THIS SIDE OF THE POND AND THE REASON FOR CONSIDERABLE MORPHING OVER TO LONDON.

 

 

 

TODAY’S ESTIMATED SILVER VOLUME : 188,520 CONTRACTS // volume huge+++/

 

 

FOR YESTERDAY: 120,303.,CONFIRMED VOLUME//volume huge+/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 120,303 CONTRACTS EQUATES to 601 million  OZ 85.9% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

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

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

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  FALLS TO- 2.14% ((JULY 27/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -1.56% to NAV:   (JULY 27/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 2.14%

(courtesy Sprott/GATA

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

NAV 19.80 TRADING 19.39///NEGATIVE 2.07

END

 

 

And now the Gold inventory at the GLD/

JULY 27//WITH GOLD UP $35.30 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS AT 1228.81 TONNES

JULY 24/WITH GOLD UP $8.80 TODAY: WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.80 TONNES//INVENTORY RESTS AT 1228.81 TONNES

JULY 23/WITH GOLD UP $24.90 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 7.26 TONNES/INVENTORY RESTS AT 1225.01 TONNES

JULY 22/WITH GOLD UP $22.00 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A DEPOSIT OF 7.89 TONNES/INVENTORY RESTS AT 1219.75 TONNES

JULY 21//WITH GOLD UP $26.00 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.97 TONNES INTO THE GLD// INVENTORY RESTS AT 1211.86 TONNES

JULY 20/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1206.89 TONNES

JULY 17/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1206.89 TONNES

JULY 16/WITH GOLD DOWN $9.80 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: INVENTORY RESTS AT 1206.89 TONNES

JULY 15//WITH GOLD UP $1.55 TODAY/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 2.96 TONNES INTO THE GLD///INVENTORY RESTS AT 1206.89 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Inventory rests tonight at

JULY 27/ GLD INVENTORY 1228.81 tonnes*

LAST;  868 TRADING DAYS:   +286.99 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 768 TRADING DAYS://+465.46  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 27/WITH SILVER UP $2.67 TODAY, WE HAD NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 558.779 MILLION OZ//

JULY 24/WITH SILVER DOWN $0.12 TODAY: NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 558.779 MILLION OZ/

JULY 23/WITH SILVER UP $.04 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A HUMONGOUS PAPER DEPOSIT OF 9.594 MILLION OZ//INVENTORY RESTS AT 558.779 MILLION OZ///

JULY 22/WITH SILVER UP $1.54 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A HUMONGOUS PAPER DEPOSIT OF 7.218 MILLION OZ//INVENTORY RESTS AT 549.185 MILLION OZ/

JULY 21/WITH SILVER UP $1.38 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A HUMONGOUS PAPER DEPOSIT OF 15.368 MILLION OZ////INVENTORY RESTS AT 541.967 MILLION OZ//

JULY 20/WITH SILVER UP 40 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV:  A MASSIVE PAPER DEPOSIT OF 3.819 MILLION OZ ‘ENTERED” THE SLV..INVENTORY RESTS AT 526.599 MILLION OZ/

JULY 17/WITH SILVER UP 15 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV/: A DEPOSIT OF 1.583 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 522.780 MILLION OZ//

JULY 16//WITH SILVER DOWN 14 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF  5.123 MILLION OZ//INVENTORY RESTS AT 521.197 MILLION OZ..

JULY 15.WITH SILVER  UP 21 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.956 MILLION OZ//INVENTORY RESTS AT 516.074 MILLION OZ//

JULY 14/WITH SILVER DOWN 21 CENTS TODAY; NO CHANGES 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//

 

JULY 27.2020:

SLV INVENTORY RESTS TONIGHT AT

558.779 MILLION OZ.

end

 

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

Gold Surges To All Time Record High Over $1,940/oz

27, July

Gold prices have surged through the all time record nominal high of $1,915/oz in 2011 to over $1,942/oz today due to concerns about the outlook for stocks, bonds and other assets amid a very vulnerable U.S. and global economy.

Gold has surged to new record highs in all major currencies today including new record highs in British pounds at £1,514/oz and in euros at €1,660/oz due to concerns about the outlook both for assets and currencies such as the euro, pound and all fiat currencies.

Asset Performance 2020 YTD (Source: Finviz)

Silver has surged another 6% today alone to $24.27/oz and is building on the strong gains of over 18% seen last week. As expected silver is playing catch up to gold and has had gains of 35.5% in July. We expect to also reach record nominal highs in the coming months and challenge the $50/oz level seen in 2011 and 1980.

Most analysts including ourselves believe the gains seen in both gold and silver are sustainable and we expect to see gold rise above $2,000/oz in the coming weeks and silver will target $30/oz as despite the recent gains, it remains undervalued versus gold and versus stocks.

Gold and silver’s gains in all currencies are due to concerns that global currencies will be devalued in the coming months and years as currency creation and debasement on a scale never before seen in world history intensifies.

A sharp global recession or Depression is inevitable and the only question is how severe and how long it will be. Already indebted economies are vulnerable due to overblown fears about the virus and due to massive over reactions in the draconian global lock-downs which are badly impacting families and family businesses and destroying small to medium enterprises globally.

There remain many major geopolitical, monetary and systemic risks such as Brexit and risks to the viability of the Eurozone itself, very significant tensions with an increasingly powerful China and indeed risks to the banking sector and large systemically important banks such as Deutsche Bank.

Gold and silver will also benefit from the civil war politics in the U.S. as Trump and Biden limber up for what is set to be the most vicious election battle in American history which could further destablise an already vulnerable U.S. and the U.S. dollar.

-END-

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Eric Sprott explains why silver is the big play of the day

(Eric Sprott/Craig Hemke/GATA)

Sprott describes his metal investment strategy, calls silver ‘the big play’

 Section: 

8:41p ET Saturday, July 25, 2020

Dear Friend of GATA and Gold:

In his weekly interview with Craig Hemke of the TF Metals Report for Sprott Money, mining entrepreneur Eric Sprott covers some fascinating ground.

Among his observations:

— The monetary metals mining shares underperformed metals prices this week, perhaps because the general equities market did not do so well.

… 

But as earnings season begins, substantial increases in earnings are likely to be reported by mining companies amid the strong rally in gold and silver prices.

Huge amounts of metal have been reported as acquired by the silver exchange-traded fund SLV and open interest in the gold and silver futures market is not increasing, indicating that banks are reducing their shorting, realizing that the metals trains can’t be stopped.

— Normalization of the gold-silver ratio implies a massive increase in the price of silver, and thus silver is “the big play” now.

— While investment advisors recommend that investment portfolios hold a 5 percent component in the monetary metals, the mining industry cannot increase production fast enough to accommodate much acceptance of that recommendation without causing a big increase in prices. The mining industry, Sprott said, can increase production at most by 1 1/2 percent per year.

— He will start selling his gold and silver positions when better opportunities for investment develop. By example, he said that if the mining industry had a price-to-earnings ratio of 50-1 and utilities had a ratio of 15-1, it would be a good time to rotate into utilities. (He did not seem to think that was likely to happen any time soon.) He said he reduced his position in Kirkland Lake Gold, a company he helped found and whose shares have increased in price by more than 1,000 percent, because the company had realized most of its innate leverage to the gold price and more leverage was available elsewhere.

— He identified his favorite silver mining company but learning its identity will be your reward to listening to the interview yourself. Why should your secretary/treasurer do all the work and rob Sprott Money of more of the traffic? Besides, you’ll greatly enjoy this one.

The interview is 26 minutes long and can be heard at Sprott Money here:

https://www.sprottmoney.com/Blog/after-five-years-in-the-desert-gold-and…

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

end

Canada should never allow China to buy anything, let alone gold mines

Wall Street Jorunal/Monga/GATA)

China’s move to buy Arctic gold mine draws fire in Canada

 Section: 

By Vipal Monga
The Wall Street Journal
Sunday, July 26, 2020

TORONTO — The purchase of a gold mine in the Canadian Arctic by a state-run Chinese company is triggering alarms in Canada over China’s expanding presence in a region that is growing in strategic importance for its shipping lanes and resources.

Opposition parties and former government officials have called on Canadian Prime Minister Justin Trudeau’s government to block Shandong Gold Mining Co., one of China’s largest gold miners, from buying Toronto-based TMAC Resources Inc., whose operation is almost 120 miles north of the Arctic Circle.

… 

Mr. Trudeau’s cabinet has final say over the deal, but members of the Liberal Party government have stayed silent about it while it remains under review.

Opponents say Canada should block the deal to slow China’s growing control over strategic minerals. They also want to stop China from buying more assets in the Arctic. U.S. military and foreign-policy officials have warned that China could assert itself in the sensitive region as it has in the South China Sea. …

… For the remainder of the report:

https://www.wsj.com/articles/chinas-move-to-buy-arctic-gold-mine-draws-f…

end

BIS gold swaps fall slightly in June but still highly elevated

(Robert Labourne/GATA)

Robert Lambourne: BIS gold swaps and derivatives fall slightly in June but still unusually high

 Section: 

By Robert Lambourne
Sunday, July 26, 2020

The gold swaps and derivatives position of the Bank for International Settlements, which reached a three-year high in May, fell slightly in June, according to the bank’s statement of accounts for the month:

https://www.bis.org/banking/balsheet/statofacc200630.pdf

The BIS, which acts as a broker for many central banks, is estimated to have reduced its position in gold swaps and gold-related derivatives to 391 tonnes in June, down 21 tonnes from the 412 tonnes estimated at the end of May.

The bank’s use of gold swaps and derivatives still shows a robust increase in the last 13 months, In May last year it was only 78 tonnes.

The BIS uses gold swaps and gold derivatives to gain access to gold held by commercial banks and then deposits this gold in gold sight accounts held on behalf of the bank at major central banks such as the Federal Reserve.

These transactions create a mismatch at the BIS, which ends up being long unallocated gold (the gold held in BIS sight accounts at major central banks) and short allocated gold (gold required to be returned to its swap counterparty).

This mismatch has to date not been reported in the bank’s annual reports.

This year the BIS published a working paper titled “Central Bank Swaps Then and Now: Swaps and Dollar Liquidity in the 1960s” by Robert N. McCauley and Catherine R. Schenk, which is posted on the bank’s internet site:

https://www.bis.org/publ/work851.htm

https://www.bis.org/publ/work851.pdf

The introduction to the paper states the following with the use of boldfaced italics for emphasis:

“We profile the Federal Reserve’s swap lines since 1962. We consult not only Fed sources, but also Bank of England, Swiss National Bank and Bank for International Settlements archives. We provide the first systematic analysis of the Fed’s eurodollar operations in the 1960s through swap lines. The BIS served the Fed as an operating arm, taking credit risk as it placed eurodollar deposits to stabilise offshore dollar yields in advance of year- or quarter-end window-dressing. While short-lived, these operations have a very modern ring.”

While the scope and content of this working paper are not directly relevant to the use of gold swaps by the BIS, the paper does highlight the close relationship between the Federal Reserve and the BIS. The paper emphasizes that the BIS has acted historically on behalf of the Federal Reserve and has done so via swaps, and crucially has been prepared to take on credit risk.

This raises conjecture that the use of gold swaps by the BIS is also driven by the Fed.

The paper provides no proof that this is the case, but that the BIS has never offered any comment on its exposure caused by being long unallocated gold and short allocated gold may well be explained by the Federal Reserve’s being both the sole recipient of the unallocated gold placed in sight accounts by the BIS as well as the most powerful central bank. The BIS auditors who must satisfy themselves that the bank can cover its mismatch between allocated and unallocated gold even in extreme market conditions presumably would see the Fed as being capable of supplying as much gold as the BIS would require once the gold swaps were terminated.

There is insufficient information revealed in the BIS’ monthly reports to calculate the exact amount of swaps, but as noted above, based on the information in its statement for June, the bank’s month-end gold swaps are estimated to be about 391 tonnes.

The table below reports the estimated swap levels since August 2018, wherein it can be seen that the May 2020 swaps are the highest in this time frame and the June level is the second highest. It can also be seen that the BIS is actively involved in trading gold swaps and other gold derivatives with changes from month to month in excess of 100 tonnes in this period.

———-

Month ….. Swaps
& year …. (tonnes)

Jun-20…. / 391
May-20…. / 412
Apr-20…. / 328
Mar-20…. / 332*
Feb-20…. / 326
Jan-20…. / 320
Dec-19…. / 313
Nov-19…. / 250
Oct-19…. / 186
Sep-19…. / 128
Aug-19…. / 162
Jul-19….. / 95
Jun-19…. / 126
May-19…. / 78
Apr-19….. / 88
Mar-19…. / 175
Feb-19…. / 303
Jan-19…. / 247
Dec-18…. / 275
Nov-18…. / 308
Oct-18…. / 372
Sep-18…. / 238
Aug-18…. / 370

* The estimate originally reported by GATA was 332 tonnes, but the BIS Annual Report states 326 tonnes. It is believed that this difference arose because the gold price used to calculate the GATA estimate was lower than the price used by the BIS. GATA uses gold prices quoted by USAGold.com to estimate the level of gold swaps held by the BIS at month-ends.

———-

More background on the bank’s history of using gold swaps is available here:

http://www.gata.org/node/18825

On February 3, 2019, GATA published comments from a former gold industry executive describing the activities of the BIS in gold swaps in earlier decades:

http://www.gata.org/node/18828

The former executive wrote: “Effectively this process created a supply of ‘paper gold’ — sometimes but not always marked to market — that had a depressing effect on the gold price.”

The BIS refuses to explain its activity in the gold market — its objectives and underlying parties in interest:

http://www.gata.org/node/17793”

—–

Robert Lambourne is a retired business executive in the United Kingdom who consults with GATA about the involvement of the Bank for International Settlements in the gold market.

end

He thinks???  a mighty short squeeze in gold may be building in gold?

(Authers/Bloomberg)

John Authers: A mighty short squeeze may be building in gold

 Section: 

Bloomberg News at last discovers the risk of too much imaginary gold.

* * *

By John Authers
Bloomberg News
Monday, July 27, 2020

There is plenty of talk about a bubble in some new companies with untried business models. Think, particularly, of Tesla Inc. But is there something equally unsustainable going on in a commodity whose virtues have been known for millennia, and remain unchanged?

Spot gold rose to a record of $1,923.2 an ounce in Asian trading today.

This is the third major spike in the modern era since the Bretton Woods tie of the dollar to gold was abandoned in 1971. Once inflation is accounted for, gold remains below the last all-time high of 2011, and far below the historic summit of 1980, in the wake of the second oil price shock, when investors assumed that endemic inflation would continue forever. …

This certainly doesn’t look like speculative excess that could lead to an imminent crash. More intriguingly, the rise in trading in “financial” gold — without taking physical delivery of any bars or coins — might bring with it the seeds of a big rise. …

The issue, in short, is that far more investors are opting to take physical delivery when contracts end, rather than roll them over. …

The concern is that we will see something like an old-fashioned bank run, or the remarkable events in the oil price that saw West Texas Intermediate go negative earlier this year. That was caused by an excess supply of physical oil; in the gold market, the fear is of insufficient supply. …

… For the remainder of the commentary:

https://www.bloomberg.com/opinion/articles/2020-07-27/a-mighty-short-squ…

end

Gold soars to an all time high

(Reuters)

Gold soars to all-time high as dollar dive adds fuel to record run

 Section: 

But take a look at silver, if you can find it way up there.

* * *

By Brijesh Patel
Reuters
Sunday, July 26, 2020

Gold prices jumped to record highs on Monday as an intensifying U.S.-China row hammered the dollar and cemented expectations that central banks would continue pumping out stimulus to ease the economic pain from a worsening coronavirus pandemic.

Spot gold rose 1.5% to $1,928.83 per ounce by 0306 GMT after hitting an all-time high of $1,933.30. U.S. gold futures climbed 1.4% to $1,924.20

Silver too joined the rally, jumping 4.5% to its highest since September 2013 at $23.86 per ounce.

With the dollar substantially weaker, “a lot of funds are moving into gold right now,” said Edward Meir, analyst at ED&F Man Capital Markets.

“And as long as the (virus situation) gets worse, the market is discounting more stimulus for a longer period of time and in bigger quantities, and all of that is bullish for gold,” he added.

… For the remainder of the report:

https://uk.reuters.com/article/global-precious/precious-gold-soars-to-al…

end

Gata needs help in defeating the bad guys..the banks..so please help

(GATA)

We’re beating the bad guys, so will you help?

 Section: 

12:55p ET Sunday, July 26, 2020

Dear Friend of GATA and Gold:

While the bad guys — the government-underwritten riggers of the gold market — are not going away quietly, they’re on the run now, in large part because other governments and investors generally have come to understand the dishonest mechanisms and oppressive purposes of the Western fractional-reserve gold banking system.

Having documented those mechanisms and longstanding government policies to defeat gold as the only neutral world reserve currency, GATA will claim some credit for that understanding. Will you agree?

… 

Times have been tough in the monetary metals sector until recent months. Investors in the sector have been demoralized, and most monetary metals mining companies have remained too scared of their governments and banks to risk being consider sympathetic to GATA, much less to support us openly.

Despite our constant efforts with them, mainstream financial news organizations remain — there’s no other way of putting it — corrupted out of reporting the gold issue.

Throughout this time GATA has survived because of the help of a few good friends. But we can’t keep turning to them. To sustain operations we must enlist the financial support of new people who appreciate our work.

Each of our dispatches details ways of helping GATA.

Apart from subscribing to The Calandra Report, about which your secretary/treasurer has been writing to you this week —

http://gata.org/node/20312

— you can support GATA by purchasing wine from the Fay J Winery in Arkansas and buying a copy of Stuart Englert’s book “Rigged,” a summary of gold price suppression policy that draws heavily on GATA’s work.

Or, of course, you can make a direct contribution to GATA by check or credit card. Since GATA is recognized by the U.S. Internal Revenue Service as a nonprofit and tax-exempt educational and civil rights organization under section 501-c-3 of the Internal Revenue Code, contributions to GATA are federally tax-deductible.

We haven’t formally asked for help in many months. So if you have not yet made a contribution, please consider doing so now. The details are below.

We have made much trouble for the bad guys. With your help we can win — not just for a free and transparent gold market but also for limited and accountable government and fairness among the nations.

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

iii) Other physical stories:

GOLD TRADING THIS MORNING;

Spot Gold Soars To Record High As Dollar Freefall Accelerates

Spot Gold is surging in Asian trading as the dollar is dumped.

Source: Bloomberg

Spot Gold traded above $1930, taking out the $1921 highs from 2011…

Source: Bloomberg

The dollar has crashed to 19 month lows…

Source: Bloomberg

Gold appears to be more and more in favor as an alternative place to allocate wealth amid the growing pile of negative-yielding debt (and note that cryptos are starting to get a bid for the same reason)…

Source: Bloomberg

As Jim Grant recently explained:

The Fed wants us to believe that we should believe that there will be no inflation out of all this and to me that is a vast unknown. We have America’s fasted peacetime money-growth coexisting with the all-time 4,000-year record lows in interest rates. It’s a most curious and troubling juxtaposition there.”

Grant said aggressive moves by governments and central banks are unwise.

I think what we have is a monetary moment that is unprecedented and therefore calls for extreme caution and great humility on the parts of all of us.”

So is the “monetary moment” sparking a loss of faith in fiat?

END

Mish: Gold Hits New Record High And There’s More To Come

Authored by Mike Shedlock via MishTalk,

Gold futures just touched $1928 taking out the Intraday high of $1923.70 in 2011.

11-Week Run 

Gold is on a huge 11-week run. The last time gold did that was at the 2011 high.

Is a pullback in order? A Gold COT chart says otherwise.

Gold COT Chart

Understanding Futures

In the futures world there is a short for every long.

The first horizontal box has Large Specs, Small Specs, and Commercials. This is It’s Old COT reporting.

The second box distinguishes producers from the swap dealers (i.e. market makers). This is New COT reporting.

Those are the actual data links for the above chart.

Large Specs, Small Specs, Unreportable Positions

Large specs are generally hedge funds that trade futures in size. Small Specs are typically individual traders.

Sometimes small specs are called unreportable positions. If you are big enough you have to tell the CTFC what your position is.

Producers

The producers mine gold and sell it via futures. They are always short.

Swap Dealers

The Swap Dealers are commercial market makers who take the other side of the trade. They do so because as Market Makers they have to. It’s their business to make a trade.

The swap dealers are hedged. They do not much care if prices rise of fall. If that was not the case, they would be blown out of the water on big, sustained rallies. That does not imply honesty as the dealers have been caught manipulating. Rather, they manipulate if their hedges get out of balance or they see a chance to profit. The latter could be in either direction, up or down in the price of gold.

Commercials

The commercials are the Swap Dealers + the Producers + the Manufacturers or Jewelry maker who buy gold to use it. It is a confusing mix which is what brought about the disaggregated reports (the New Cot reporting).

We frequently hear things like “commercials covered” their shorts or the commercials are the “smart money”.

That is nonsense. The producers don’t buy gold and the swap dealers are hedged (long gold and short equivalent futures). There is nothing “smart” about being forced to take the other side of a trade.

This subject comes up all the time.

For example, on December 27, Tom McClellan said “Gold COT Data Call for More of a Drop”

Gold was at the $1500 level.

On March 12, McClellan said Gold Moving Lower Despite Covid-19.

McClellan said “Gold prices should start trending down now, and for the next 5 years, according to this week’s chart.

Managed Money

Managed money is a way of disaggregating the Big Specs from the Commercials. Some people consider the big specs to be the “smart money” and the small specs to be the “dumb money”.

Reporting Frequency

Cot reports come out on Friday for the previous Tuesday. Thus the above chart (except for the price, reflects Tuesday, July 21.

Every week, we do not know what happened between Tuesday and Friday.

Room to Run

Analysis of the Gold COT Chart suggests there is still plenty of room left to run. Details show why.

  • Normally, gold advances in the short- to mid-term as the big specs or managed money expands position.
  • The opposite occurs during long liquidations.

That is what prompted me to write on April 6, 2020 Gold’s New Breakout is Very Bullish: Here’s Why.

It is bullish that gold advanced with smart managed money missing most of the move. At some point FOMO kicks in.

A pullback can happen at any time, including now, but the fundamentals for further advancement: monetary printing, COTs, and of course faith in central banks are firmly in place.

end
Why you must buy gold to protect yourself;  Deutsche bank states that the Fed balance will hit $20 trillion dollars in a next few years.
If it surpasses 12 trillion, that would be enough for hyperinflation to cripple the uSA: there is a net short position of 12 trillion usa dollars and if that is pierced, all ^% will break lose
(zerohedge)

Why Nothing Can Stop Gold: Deutsche Bank Projects Fed’s Balance Sheet Will Hit $20 Trillion In “Next Few Years”

One week ago, Deutsche Bank’s top credit strategist, the often whimsical amateur piano player, Jim Reid, did the unthinkable, admitting that he is “a gold bug”, and adding that in his opinion, “fiat money will be a passing fad in the long-term history of money”, a shocking admission for most career financial professionals who are expected to tow the Keynesian line and also believe in the primacy of fiat and its reserve currency, the US Dollar.

In any case, Reid was just getting warmed up, and in his Friday “chart of the day” reminds his long-term readers that in his view, “central bank balance sheets will explode in the decade ahead and probably beyond.” To bolster his case, he refered to a recent report written by another DB strategist, the bank’s chief US economist Matt Luzzetti, who suggests that the Fed may need to add up to $12tn to its balance sheet over the next few years to reach what he thinks is the equivalent to a shadow Fed Funds rate of -5% to fill what he calls the policy gap.

For those who missed it, here is the punchline from Luzzetti’s note:

We find that the Fed will need to provide significant accommodation – roughly equal to a fed funds rate of -5% — and that QE and forward guidance could be insufficient. Assuming limited impact from forward guidance given that markets are pricing negative rates, our estimates range from an additional $5tn to $12tn more of balance sheet expansion needed. Our  preferred calibration sits towards the high end of that range.

As the economist ominously concludes, “the lessons for the monetary policy outlook are somewhat discouraging. In the absence of a considerably better economic outlook due to factors exogenous to the Fed – for example more rapid development and widespread availability and usage of a vaccine or a significantly more robust fiscal response —  eaningfully more aggressive QE is needed.

And visually:

That said, the Deutsche strategists caveat that “this is not a projection but more of what would be needed if they choose the balance sheet route alone. A decision to supplement QE with other tools, such as YCC and more bank or credit-oriented policies (which Matt views as likely), would reduce this amount.”

Alternatively, Luzetti quotes NY Fed president Williams who recently noted, “necessity is the mother of invention”, adding that the need to provide substantial accommodation in an environment where the Fed’s conventional tools may be limited could thus lead, over time, to more serious exploration of alternative tools.

And yes, all of the above means that the Fed will need to catalyze another market crash to usher in the next round of massive stimulus.

In any event, going back to the stunning balance sheet forecast, Reid calculates that if the balance sheet was used as the only tool, hitting this amount would take roughly 8 years at the current QE run rate, and writes that the graph above “puts this into some  perspective based on 100 years plus of the Fed balance sheet in real adjusted terms. In nominal terms it took 94 years to hit the first trillion of Fed balance sheet. 12 years later we are at $7tn. Could we be approaching $20 trillion within a decade?”

Well… of course.

But regardless of whether or when it takes place, this forecast backs up Reid’s own long standing view on balance sheet growth based on the huge past, present and future debt burden the financial system has been saddled with.

And yes, anyone asking how to best hedge against the monetary insanity that is coming, the answer is very simple: keep buying gold, whose surge to $3,000 – which is also Bank of America’s price target –  is just a matter of time.

And yes, silver has a long way to go to catch up to where it should be based on the long-term gold/silver ratio.

Finally, Reid has conducted a a flash poll, with the question: “Where do you think the Fed balance sheet will be in a decade?” Click here to take part.

end

https://www.jsmineset.com/2020/07/27/the-central-bank-bullies-are-getting-tired/

The Central Bank Bullies, Are Getting Tired!

Posted July 27th, 2020 at 10:50 AM (CST) by J. Johnson & filed under General Editorial.

Great and Wonderful Monday Morning Folks,

       August Gold has made a new Life of Contract high in the early morning with the trade at $1,938.20, up $40.70 with the high nearby at $1,941.90 and the low at $1,899. September Silver seems to be leading the charge with its trade at $24.56, up $1.71 with the high up at $24.82 and the low at $22.94. The US Dollar is finally heading in the right direction as well. After all, a trillion here and a trillion there, makes for a damn good anchor with the value now pegged at 93.76, down 62.5 points, with the low right here at 93.705 and a high way up at 94.375. Of course, all this happened while we slept, before 5 am pst, the Comex open, the London close, and after another professor from the English Dept at Rutgers University declares that proper use of grammar is a hidden form of racism because it disadvantages students of “multilingual, non-standard ‘academic’ English backgrounds.” I say, don’t worry, we have apps to fix that with no “feelings” to hurt or convey and it’s cheaper to boot, and they can be used for home schooling too.

      Since the Dollar is finally making the plunge, the emerging markets currency activity should really start to pop with Gold’s price under the Venezuelan Bolivar now at 19,357.77 proving a 477.40 Bolivar gain with Silver at 245.293 Bolivar giving the holder an additional 17.977 Bolivar gain in value. Argentina’s Peso now prices Gold at 139,233.37 Peso’s giving the noble metal a 3,574.96 gain over the weekend with Silver adding 130.55 A-Peso’s with the last price at 1,764.34. Gold under the Turkish Lira, is now priced at 13,276.55 Lira giving the holder a 330.25 gain with Silver’s last trade at 168.235 T-Lira adding an additional 12.365.

      July Silver’s Delivery Demands, one of the most ignored plights (Comex-deliveries) in the overall topic called precious metals, now has an Open Interest tally at 1,031 fully paid for 5,000 ounce contracts and with a Volume of 35 already up on the board with a trading range between $24.37 and $24.195 with the last trade at $24.355 up $1.547 so far today. Last night, when trading started, Silver’s Volume hit 14 contracts with no price posted. What is more striking about this, is Friday’s trades within the delivery system. July Silver’s Delivery Demands dropped by 239 contracts with the full day’s trading range between $23.07 and $23.065. That’s a ½ penny trading range that had a Volume of 189, yet the Comex price fixers decided to allow the settling price to be much lower than any trade occurred at $22.808, dropping the value by 13.7 cents by the end of the day. I wonder if the version of “law” within the CFTC books is equal to the version of law under the eyes of the DOJ? That may be answered soon enough (JPM) as we pile on the questions as to how 189 contracts can trade in a ½ penny range but 35 has much more of a spread? Today’s buyers must not be part of the club. Silver’s Overall Open Interest now sits at 186,346 Overnighters going against the physicals proving a gain of 474 since Friday’s tally.

      July Gold’s Delivery Demands now has 524 fully paid for contracts posted and with a Volume of 165 already up on the board providing a trading range between $1,938 and $1,901.50 with the last trade at the high, up $40.70 so far today. The physical demand count has increased by 388 contracts from Friday’s tally that had a Volume of 474 with a single price for a trading range at $1,884.30. Yet the Comex Price Fixers settled the trade at $1,897.30, a gain of $8.20 (from Thursday’s close) even though there were no trades near that price. Gold’s Overall Open Interest also gained 1,088 more shorts going against the physicals bringing the tally to 610,362 Overnighters. Tomorrow is the July Options expiration day with Wednesday being the last day for July buyers, who need physicals immediately. Not only that, August Gold, a primary delivery month for the noble metal, has an Open Interest of 197,548 contracts. This tally has to drop or we may see $38,284,802,400 in purchases. What can go wrong? Nothing! That is if you have your metal already.

     The events of the year, have really taken a toll on just about everything in finance and economics. Everything has changed! What had value, no longer has it. What didn’t have value and was considered a barbarous relic, is all of a sudden, the must have. That’s why we are here, sticking to the topic that has been ignored by the fake media and the fake financial system that supported the media Creature Style. Their game is over, and ours has just begun.

      So, sit tight – you are right! Holding precious metals while the world hated it is proving to be one of the best decision’s one could have made. Most of those, that are trading in the various sectors of precious metals, have been beaten to a pulp, lying in pools of blood, with cuts and bruises, missing teeth, and with broken bones to boot. How could they have survived all this and still be right here and in place? Determination! I don’t know about you, but I think the central banks bullies, in the playgrounds of our sector, are getting tired. We may be a bloody mess, but we’re outlasting the bullies, like Steve Rogers, We Can Do This All Day Long! Prayers for all, and as always …

Stay Strong!

Jeremiah Johnson

JeremiahJohnson@cableone.net

end

The uSA imported 66 tonnes of gold in  June:

Most of this gold is ending up in the registered category of the comex.

LAWRIE WILLIAMS: Swiss gold imports and exports guide to the new reality

On a weekend which saw gold close at over $1,900, the latest gold import and export figures from Switzerland provide an extremely interesting sign of what is for the time being the new normal in global gold flows.

Switzerland, and its suite of gold refineries, is the ultimate middle-player in the global gold trade.  An amount equivalent to around half global annual new mined gold production usually passes through the Swiss gold refineries every year.  This may be sourced directly from operating gold mines, in the form of doré bullion for refining, from major gold centres like London for re-refining – mainly from the large good delivery gold bars into the smaller, and higher purity small bars and wafers which are the staple of the international gold trade, and scrap gold for re-melting and re-refining from a variety of sources.  Thus the Swiss figures, which are released monthly, are a window on what is happening in terms of global gold flows at any given time.

Firstly we’ll take a look at the latest Swiss gold import figures which tell an interesting  story (graphics courtesy of Nick Laird’s excellent www.goldchartsrus.com< /a> website received via Ed Steer’s daily newsletter):

 

 What is particularly interesting about the above chart is that as well as imports from a number of gold producing nations the biggest flows came from Hong Kong and the UAE, both of which would normally be recipients of Swiss gold. Italy, another usual gold consumer showed prominently too.  This suggests that the higher gold prices which prevailed in June prompted a number of usual gold consumers to reduce inventories and take profits, and also probably saw an increase in scrap supplies as individuals used their gold jewellery and artefacts to provide income where it was needed because of reduced earnings due to the coronavirus impact.  This is gold doing its job of providing against a ‘rainy day’ in those countries where gold is often purchased as wealth protection insurance.

Now we’ll turn to Swiss gold exports for June.  These tell an equally interesting story for those following gold supply and demand patterns:

 

 What this shows is zero or minimal flows to the traditional gold consuming nations/territories – China, Hong Kong, India and the UAE.  These normally top the Swiss gold export figures and demonstrate the huge turndown in Asian demand in particular as countries, and their populations, try to get to grips with the coronavirus impacts – perhaps coupled with a reluctance to buy at the current higher gold price levels.

The biggest recipient of Swiss gold exports in June was the U.S., followed by France, the UK, Germany and Turkey which demonstrates a significant change in sentiment toward gold – certainly in the first four of these – as the recognition dawns that the coronavirus-induced recession is likely to be deeper, and last longer, than the politicians would have us believe.  The U.S. in particular is belatedly coming round to the seriousness of the pandemic with a record count in new infections and deaths recorded on Friday.  Even President Trump, who has been attempting to convince the American people that the ‘China virus’, as he refers to it, is only a minor problem and would just fade away in the warmer summer weather, seems to be at long last coming round to take the incidence in its seemingly ever growing progress throughout the USA rather more seriously.

Make all of this what you will.  Remember those cartoons of a few years ago showing Americans chucking gold over a wall to the Chinese and the latter throwing back dollars.  Now it seems the boot is on the other foot.  Gold is ever gaining credibility as a wealth protection panacea in the West, while those in the East are utilising it as a survival tool.  In our view gold (and silver) has a way to run yet up to $2,000 (or $25 for silver) – and perhaps beyond.  There may be corrections which halt their progress temporarily, but while the pandemic effects continue to blight Western economies, it may well be wise to put your faith in gold as a wealth protector at the very least.  And if you are set on equity investment  do look at the precious metals miners.  These should be doing enormously well at the higher metal prices they are currently receiving.

25 Jul 2020

-END-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0033/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0061   /shanghai bourse CLOSED UP 8.46 POINTS OR 0.26%

HANG SANG CLOSED DOWN 103.07 POINTS OR 0.41%

 

2. Nikkei closed DOWN 35/36 POINTS OR 0.16%

 

 

 

 

3. Europe stocks OPENED MOSTLY RED/

 

 

 

USA dollar index DOWN TO 93/79/Euro RISES TO 1.1725

3b Japan 10 year bond yield: RISES TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.32/ 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:: 41.43 and Brent: 43.51

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.47%/Italian 10 yr bond yield UP to 1.02% /SPAIN 10 YR BOND YIELD UP TO 0.36%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.48: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.06

3k Gold at $1936.20 silver at: 24.20   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 21/100 in roubles/dollar) 71.46

3m oil into the 41 dollar handle for WTI and 43 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 105.32 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 .9220 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0811 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 0.47%

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

4. USA 10 year treasury bond at 0.578% early this morning. Thirty year rate at 1.22%

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

6.  TURKISH LIRA:  UP  TO 6.9499..

Gold Catapulted On Dollar Meltdown, Futures Rise With Focus On Fed

S&P futures rebounded from last week’s dump on Monday, ending a two-day slide on Wall Street, as expectations for a more dovish outlook from the U.S. Federal Reserve – due to deteriorating economic conditions – brightened the market mood ahead of the busiest week for quarterly earnings reports which sees updates from companies including Apple, Amazon and Boeing.

Nasdaq 100 futures rose more than 1% as tech companies climbed in pre-market trading along with gold miners. The Stoxx Europe 600 Index struggled for traction as airlines were clobbered after the U.K. ordered quarantines for passengers returning from Spain.

The S&P 500 logged its first weekly decline in four on Friday, following concerns over escalating coronavirus cases in southern and western U.S. states, rising tensions between the U.S. and China, and data that showed a recovery in the U.S. job market unexpectedly stalled. Earnings reports will also be a major focus this week with more than a third, or 189 companies from the S&P 500, expected to report results, including Boeing, Pfizer, Facebook, Apple, Amazon.com and Alphabet.

But the top highlights of the overnight session was the continued dollar meltdown which dragged the greenback to the lowest level since February 2019…

… with investors targeting option barriers and the U.S.-China diplomatic row weighing on the greenback; and the other major move was of course the explosion in gold which was last trading above $1,940 – an all time high – while silver was also sharply higher.

The yellow metal notched its biggest intraday increase since April and pushed toward $2,000 an ounce while Bitcoin rebounded back above $10,000.

“Strong gains are inevitable as we enter a period much like the post-GFC environment, where gold prices soared to record levels as a result of copious amounts of Fed money being pumped into the financial system,” said Gavin Wendt, senior resource analyst at MineLife Pty, echoing what we have been saying for, oh… about 11 years. A weak dollar and negative real rates are providing further impetus. Gold may consolidate before setting its sights on $2,000 and above in coming weeks, he said.

Europe’s Stoxx 600 Index erased declines of as much as 0.6% to trade little changed; the basic resources subgroup and chemical companies lead gains with advance of 1.2% and 0.5%, respectively. Earlier, Spain’s IBEX 35 fell the most among western European benchmarks amid fears of a second coronavirus wave and fresh Covid-19 outbreaks that prompted the U.K. to impose a quarantine on travelers returning from the country. The UK move was similar to Norway announcement of a similar quarantine Friday and France issuing new travel warnings for the Catalonia region. Travel and leisure shares were among the worst performers on IBEX, with IAG’s Spain- listed shares dropping as much as 9.2% and Melia Hotels down 7.1%. Cie Automotive declines 9%, extending losses from Friday, when it reported a 50% slide in first-half profit.

European market also got a boost after Germany’s Ifo institute said its business climate index rose to 90.5 in July from an upwardly revised 86.3 in June. It was the third increase in a row and a higher reading than expected, while the Expectations component soared to the highest in two years.

“The German economy is recovering step by step,” Ifo President Clemens Fuest said, adding that companies were notably more satisfied with their current business situation. German business morale continued to recover in July from its biggest decline in decades, with companies expecting Europe’s largest economy to rebound from the coronavirus shock – as long as a second wave of infections is avoided.

Earlier in the session, Asian stocks gained, led by IT and materials, after falling in the last session. Markets in the region were mixed, with Taiwan’s Taiex Index and South Korea’s Kospi Index rising, and Hong Kong’s Hang Seng Index and India’s S&P BSE Sensex Index falling. The Topix gained 0.2%, with TerraSky and Sanoyas rising the most. The Shanghai Composite Index rose 0.3%, rebounding from Friday’s sharp plunge, with Suzhou Kelida and Baiyin Nonferrous posting the biggest advances.

While no major announcements are expected at the end of the U.S. central bank’s two-day meeting on Wednesday, analysts expect policymakers to lay the groundwork for more action in September or in the fourth quarter.  Investors are also keeping a close watch on progress over the next round of government aid with less than a week before enhanced unemployment benefits expire. Top aides to President Donald Trump said they agreed in principle with Senate Republicans on a $1 trillion coronavirus relief package, which will now be negotiated with Democrats.

Investor concern about the global economy and expectations that the Fed’s open market committee meeting will reinforce a dovish outlook are driving the dollar and precious metals in opposite directions and supporting equities. While fresh outbreaks of the virus emerged from China to Spain, cases fell in the populous states of California, Florida and New York.

“The July FOMC meeting should kick off a period from August into mid-September in which markets should price in an increasingly dovish, forward-looking Fed policy via lower real rates,” Morgan Stanley strategists including Matthew Hornbach wrote in a report. “This should benefit breakeven inflation rates, support risk assets, and weigh on the U.S. dollar.”

In rates, Treasuries bull-flattened with long-end yields lower again by 1bp-2bp, despite the modest E-mini gains. Treasury yields lower by 0.5bp to 2bp across the curve, flattening 2s10s and 5s30s by around 1bp each; 10-year yields ~0.58%, richer by 1.1bp vs Friday’s close. Germany’s Bunds outperformed by ~1bp, trading better than Treasuries after Belgium supply events. This week’s auction cycle – accelerated and compressed because of FOMC meeting Wednesday and Friday settlement – begins with 2-and 5-year sales, both record size and trading at record-low WI yields.  IG credit issuance slate includes Prosus 30Y; dealer calls for next month are in the neighborhood of $50 billion, which would be the slowest August in five years.

In FX, the Bloomberg dollar index fell to near an 18-month low and U.S. Treasuries gained as investors weighed this week’s Federal Reserve meeting and several second-wave outbreaks of Covid-19. The euro advanced due to demand from investors eyeing the 1.1700 option barrier, while interbank desks targeted large USD/JPY barriers at 105.50, according to traders. The dollar’s continued weakness prompted funds to scoop up the Australian and New Zealand currencies, a trader said.

In commodities, besides the massive surge in precious metals, oil fluctuated around unchanged for much of the session, before breaking out modestly in the green.

Expected data include durable-goods orders. Hasbro is among companies reporting earnings. Negotiations on a U.S. stimulus package and a Federal Reserve policy meeting this week are also on the radar, with traders expecting the U.S. central bank to signal more accommodation ahead. Meanwhile, Senate Majority Leader Mitch McConnell is expected to release a $1 trillion pandemic relief proposal on Monday, which will kick off talks with Democrats on further relief measures.

Market Snapshot

  • S&P 500 futures up 0.4% to 3,218.00
  • STOXX Europe 600 down 0.2% to 366.46
  • MXAP up 0.6% to 166.41
  • MXAPJ up 0.7% to 545.82
  • Nikkei down 0.2% to 22,715.85
  • Topix up 0.2% to 1,576.69
  • Hang Seng Index down 0.4% to 24,603.26
  • Shanghai Composite up 0.3% to 3,205.23
  • Sensex down 0.3% to 38,027.82
  • Australia S&P/ASX 200 up 0.3% to 6,044.17
  • Kospi up 0.8% to 2,217.86
  • Brent futures down 0.3% to $43.21/bbl
  • Gold spot up 2% to $1,939.94
  • U.S. Dollar Index down 0.5% to 93.94
  • German 10Y yield fell 0.6 bps to -0.454%
  • Euro up 0.5% to $1.1708
  • Italian 10Y yield rose 1.4 bps to 0.872%
  • Spanish 10Y yield rose 2.1 bps to 0.373%

Top Overnight News

  • Spot gold blasted past its longstanding record while silver rode on its coattails as investors seek havens outside the plunging dollar
  • China reported the most number of domestic coronavirus infections since the end of the outbreak in Wuhan, raising fears of a serious resurgence
  • The lowering of the American flag from the consulate in Chengdu caps a week in which U.S.-China relations spiraled to new lows
  • Billionaire investor Ray Dalio said conflict between the U.S. and China could expand into a “capital war” that he suggested would harm the dollar

APAC stocks traded choppy as initial optimism somewhat abated after Wall Street’s decline on Friday amid a struggle in tech shares coupled with rising US-Sino tensions, with the Dow snapping a three-week winning streek as Intel shares slumped over 15% post-earnings. ASX 200 (+0.3%) nursed earlier losses despite the rising case-count in Victoria, with upside led by strength in mining names. Nikkei 225 (-0.3%) lagged as the index played catch-up to the broader losses seen at the back end of last week, whilst JPY strength kept gains limited. Softbank shares cushioned losses for the index as investors had the first chance to react to reports that its chip arm is reportedly attracting interest from Nvidia. KOSPI (+1.1%) remained firm throughout the session as the case-count in South Korea stays on a downward trajectory. Elsewhere, the Hang Seng (+0.1%) saw initial momentum from the euphoria surrounding the debut of its tech index, of which over 40% comprises of shares from Alibaba (8.53% weighing), Tencent (8.52%), Meituan (8.33%), Xiaomi (8.11%) and Sunny Optical (8.02%), whilst Shanghai Comp (+0.1%) traded between gains and losses as industrial profits saw a rebound in June, although price action is upside was hampered amid the rising tensions between US and China. Finally, Taiwan’s TSMC rose over 9% on the back of the broader tech rally coupled with reports that Apple (AAPL) is setting up an R&D area for display tech at TSMC’s plant.

Top Asian News

  • TSMC’s $35 Billion Rally Puts Taiwan Stock Index Above 1990 Peak
  • Hong Kong to Ban Dining-in, Public Gatherings Of More Than Two
  • Nissan Quarterly Loss Said to Be Smaller on Faster Cost Cuts

European indices have kicked the session off relatively indecisively (Eurostoxx 50 U/C) with the exception of the Spanish IBEX (-1.3%) which is the region’s clear underperformer after the UK imposed quarantine measures on those travelling from Spain. Given the measures taken by the UK and concerns that similar action could be taken by the UK on France and Germany, the travel & leisure sector is the clear laggard for the Stoxx 600, facing losses of around 2.5% with Tui (-12%), easyJet (-11%) and IAG (-8%) all lower on the session. Shares in Ryanair (-4.2%) are also seen lower in sympathy and following Q1 earnings with the Co. reporting a EUR 185mln loss and citing fears of a second wave in the autumn. Elsewhere, DAX-heavyweight SAP (+2.9%) has supported the index and the tech sector after confirming Q2 earnings (relative to prelim release) and announcing its intention to IPO its US subsidiary, Qualtrics. HSBC (-2.9%) have acted as a drag on the broader banking sector after reports noted the Co. is facing pressure to look at offloading its US retail bank in order to increase returns and address international tensions with China. Furthermore, the Co. has rejected allegations via Chinese media that they attempted to entrap Huawei in the act of breaking US sanctions and had provided US authorities with misleading information. Mining names are on a firmer footing this morning (Stoxx 600 basic resources +0.9%) with Co.’s in the sector cheering the ongoing rally in precious metals prices with spot gold breaching its all-time high at USD 1921.75/oz and spot silver higher by around 6%. Other notable movers include Atlantia (+4.8%) after source reports noted Italy’s CDP is open to acquiring a controlling stake in the Co.’s Autostrade in an attempt to resolve pricing concerns for the unit. To the downside, Rolls Royce (-5.1%) are seen lower this morning after reports in the Telegraph stated the Co. is looking into an emergency sale of its ITP Aero division that builds parts for the Eurofighter Typhoon as it looks to raise billions to deal with the fallout form COVID-19.

Top European News

  • Vodafone Extends Losses as Analysts Weigh Tower Unit Update
  • Nordea Says Compliance Unit ‘Too Expensive’ as Job Cuts Loom
  • German Business Expectations Rise to Highest Level Since 2018
  • Italy’s Cassa Depositi Open to Autostrade Stake Deal in IPO

In FX, the Dollar is looking increasingly weak on the bearish combination of US-China angst, 2nd wave coronavirus concerns and delays to more fiscal stimulus after extending losses overnight with the return of Japanese markets from their 4-day long holiday weekend, but GOLD and fellow precious metals continue to lead advances against the Greenback following a breach of the prior record peak and Xau setting a new ATH around Usd 1944/oz. However, the index has pared some declines ahead of sub-94.000 technical support at 93.814 (21 September 2018 low) and another base from 2 years ago at 93.713 (July 9) in the run up to US durable goods and the Dallas Fed manufacturing index.

  • JPY/NZD/EUR/AUD/GBP – The Yen has strengthened further vs the Buck and through 106.00 to test half round number resistance at 105.50, while the Kiwi pivots 0.6650 and Euro is straddling 1.1700 with some underlying traction from a broadly better than expected Ifo survey. Similarly, the Aussie is rotating around 0.7100 as US Dollar weakness more than offsets the ongoing COVID-19 spread in Victoria and RBA’s Kent underlines little concern about the current Aud/Usd level. Elsewhere, Sterling has also traversed another big figure largely at the Greenback’s expense, but faces a key chart obstacle in the form of a 1.2842 Fib retracement to compound no deal Brexit risk.
  • CAD/CHF/SEK/NOK – Soft oil prices and flaky risk sentiment are hampering the Loonie to a degree as it rotates either side of 1.3400, while the Franc seems reluctant to rally too far above 0.9200 given the latest jump in Swiss sight deposit balances alluding to more official intervention. However, the Scandinavian Crowns have both regained momentum vs the Euro within 10.3030-10.2665 and 10.6930-6325 parameters on solid fundamental and technical impulses (like Swedish household lending staying firm in June).
  • EM –The Rand is a regional outperformer and eyeing 16.5100 against the Dollar awaiting news from the IMF about SA’s request for a Usd 4.2 bn credit line to help fund anti-virus measures, but the Lira is still struggling to break free from 6.8500 even though Turkish manufacturing confidence improved to 100+ in July

In commodities, WTI and Brent crude futures have begun the week on the backfoot, following the relatively indecisive performance in European equity bourses. For the complex itself, attention remains on what is now Tropical Storm Hanna after being downgraded from a Hurricane once it made landfall in the Southern Texas Coast, a downgrade which place crude prices under mild pressure at the time. Elsewhere, the complex has seen a few refinery updates notably the Marathon Galveston Bay, Texas (585k BPD) facility is said to be restarting units following on from a two-month overhaul while Total are selling their Lindsey (200k BPD) refinery to the Prax group. Looking ahead for the complex it’s a similar story to last week with little on the scheduling front aside from the usual weekly updates. As such, and given overnight price action, precious metals may once again hold the commodity markets gaze as spot gold has set a record high at USD 1944.45/oz and silver prices are bolstered by some 6% given USD weakness and the continuing decline for real yields. Elsewhere, base metals came under pressure during APAC hours given ongoing US-China tensions, but downside is limited by dollar downside.

US Event Calendar

  • 8:30am: Durable Goods Orders, est. 7.0%, prior 15.7%; Durables Ex Transportation, est. 3.5%, prior 3.7%
  • 8:30am: Cap Goods Orders Nondef Ex Air, est. 2.4%, prior 1.6%; Cap Goods Ship Nondef Ex Air, est. 2.8%, prior 1.5%
  • 10:30am: Dallas Fed Manf. Activity, est. -4.9, prior -6.1

DB’s Jim Reid concludes the overnight wrap

I’ve lost a bit of weight since lockdown started even though I think I’ve eaten slightly more at home. To be honest I’ve been a bit puzzled by this. However yesterday I started to work out how as we went round another person’s house for the first time since March. 3 pieces of cake later and then home for a normal dinner was a little more like the old days. Also not doing a couple of days a week travelling for work also probably stops me comfort eating as much. So as life slowly returns to normal I may have to go back to my old belt buckle hole again. That brief relationship with the last hole on the belt will likely be a fleeting Q2/early Q3 2020 thing.

Life might not get fully back to normal for some time though or at least be in fits and starts as this weekend we perhaps got a glimpse of how challenging life will be this winter without a vaccine. Spain which had seen new cases rise to around a thousand per day at various points over the last week (c.10,000 / day at the peak, below 300 most of June) is starting to attract fresh attention and travel advisory warnings including a 14-day quarantine order for those returning from there to the U.K. France also saw cases edge back up above a thousand at the end of last week and is one to watch as the public health agency said “we’ve thus erased a good part of the progress that we had accomplished in the weeks after the lockdown was lifted”. I don’t think this is of immediate major economic consequence (relative to what we already have) but if this is happening at the height of summer it begs the question of where we’ll be in say November.

For now new cases in Europe continue to be well behind that across many US states but there have been signs of this plateauing in recent days but we need to get past weekend lulls in reporting for confirmation. Meanwhile, over the weekend Florida (423,855) overtook New York (411,736) to become the second most infectious state in the US in terms of total cases recorded. That said the average per day weekend case growth was well below the last 5 weekend average (2.64% vs. 5.13%). The same was true for the Texas (2% vs. 3.07%), California (1.44% vs 2.32%) and Arizona (1.81% vs. 3.74%). Fatalities, which clearly lag, climbed with Texas (3.34% vs. 1.37%), Florida (1.76% vs. 1.17%) and Arizona (2.56% vs. 2.15%) all showing rises.

Asia is another region of concern with India (32,063) leap frogging France (30,195) over the weekend to become sixth highest in the global fatalities list. Australia’s Victoria state also reported a new daily record of 532 infections over the past 24 hours while China reported the most domestic cases (61) since it brought the initial outbreak in Wuhan under control. Vietnam also saw its first cases in more than three months, Tokyo found 239 new cases yesterday, marking the sixth straight day in which the number topped 200 while Hong Kong has reported more than 100 cases for 4 days running.

Markets in Asia are mixed against this backdrop with the Nikkei (-0.29%) trading down as it catches up with last week’s moves after a 4-day holiday. Elsewhere the Hang Seng (-0.09%), Shanghai Comp (+0.09%) and Asx (+0.09%) are trading flattish while the Kospi (+1.05%) is up. In FX, the US dollar index is down -0.49%, marking 6 days of continuous declines and at the lowest level since September 2018, while all the G-10 currencies are trading up with Euro at 1.1702 and breaking through another big figure. Meanwhile, futures on the S&P 500 are up +0.47% and spot gold prices are up to a record $1,931.51/oz (+1.55%) this morning with silver trading up +5.92%.

Looking forward now, and after the biggest two week fall in the Nasdaq (-2.39%) since the turmoil in mid March, one of the most interesting things this week will be earnings releases from Amazon, Apple, Alphabet (all Thursday) and Facebook (Wednesday). This could have a big impact on sentiment. Intel falling -16.24% on Friday after results the previous night helped tech sentiment dip a little on Friday.

Elsewhere one of the key macro highlights this week will be the Federal Reserve’s latest monetary policy decision, along with Chair Powell’s subsequent press conference. Recent communications from the Fed have made it clear that the FOMC will soon pivot away from stabilisation towards accommodation, and in a piece earlier this week, our US economists released the first of a two part series looking at how much accommodation will be needed and how it will be provided (link here). On Friday we published a CoTD that used our economist work to suggest that if balance sheet was the only tool used, to keep policy neutral an extra 12 trillion of QE could be required. We are currently at $7tn. See it here and email Jim-Reid.ThematicResearch@db.com to get added to the direct daily distribution.

Data releases will also get a decent amount of attention, particularly given the Q2 GDP releases out in the US (Thursday) and the Euro Area (Thursday/Friday) that are likely to show some of the largest quarterly contractions in history. They will also help calibrate forecasts for economists going forward. The other main data release will be the release of PMIs from China on Friday. All the other data releases will be in the day by day calendar at the end.

On earnings we have many of the world’s biggest companies reporting this week. In total, releases include 190 from the S&P 500 and a further 169 from the STOXX 600. Among the releases include SAP, Ryanair and LVMH today. Then tomorrow we’ll hear from Starbucks, Visa, McDonald’s, Pfizer, Peugeot and Nissan. Wednesday will see Facebook, Sanofi, Rio Tinto, GlaxoSmithKline, Qualcomm, PayPal, Boeing, Santander, General Electric, General Motors, Barclays and Nomura release earnings. After that, Thursday’s releases include Alphabet, Amazon, Apple, Samsung, Nestle, Procter & Gamble, Comcast, L’Oreal, Stanley Black & Decker, AstraZeneca, Linde, Mastercard, American Tower, AB InBev, Total, Volkswagen, Ford, Royal Dutch Shell, Lloyds Banking Group and Credit Suisse. Finally on Friday, there’s Chevron, Charter Communications, Merck, AbbVie, Phillips 66, ExxonMobil, BNP Paribas, Caterpillar, Nokia, NatWest Group and Fiat Chrysler Automobiles.

Looking back to last week now, one of the bigger stories was gold breaching the $1900/oz level on Friday (overnight gold surged to an all-time high of c. $1,932/0z). The metal rallied +5.06% to an 8 year high of $1902/oz, which was the biggest one week gain since late March. The 2011 high of $1921/oz is clearly in view, just 1% away. Other precious metals also had big weeks as the dollar sold off (-1.57%) and real rates moved lower. Silver was up +17.79% to a 6 year high, the largest 1 week move since 1980. Elsewhere, platinum (+9.36%) and palladium (+10.23%) also rose the most since the last week of March. Other, more industrial-focused commodities underperformed precious metals on the week as risk sentiment waned. Oil gained slightly through, with WTI (+1.85%) and Crude (+0.46%) up just ahead of the largest oil companies releasing earnings this upcoming week. Copper fell -0.19%, dropping for the first time in 10 weeks.

Global equity markets fell as economic uncertainties mixed with more tense US/China relations to create mild risk off. In particular, US tech stocks were given more scrutiny towards the end of the week on added concerns surrounding their valuations, even in the midst of decent earnings results. The S&P 500 dropped -0.28% (-0.62% Friday) on the week, ending a streak of three straight weekly gains, which is tied for the longest of this year so far. The tech-focused Nasdaq underperformed as the index reacted to US/China news in a similar fashion to its action during the trade war, falling -1.33% (-0.94% Friday). Including the Nasdaq’s -1.08% loss the prior week, it was the biggest 2-week fall in the index since the height of the market turmoil in mid-March. European equities underperformed the S&P with the Stoxx 600 retreating -1.45% (-1.70% Friday) over the five days, also breaking a 3-week streak of gains. The DAX outperformed the STOXX 600, only down (-0.63%), but other major European bourses were all weaker with the CAC (-2.23%), FTSE 100 (-2.65%) and FTSE MIB (-1.69%) losing ground.

Core sovereign bonds were mixed on the week as risk sentiment diverged slightly. US 10yr Treasury yields fell -3.8bps (+1.1bps Friday) to finish at 0.589%, while 10yr Bund yields were unchanged (+3.3bps Friday) at -0.45%. Even as equities dropped on the week, HY cash spreads continued tightening on both sides of the Atlantic. US HY cash spreads tightened -45bps (+3bps Friday) and Europeans ones tightened -23bps (-2bps Friday). As stated above, the dollar fell over -1.5% on the week to its lowest level since September 2018, while the Euro rose +2.00% in the currency’s fifth straight weekly gain.

On Friday, preliminary European and US PMIs were released showing that the recovery has more momentum in Europe than in the US. The Euro-area composite PMI was the strongest (54.8 vs. 51.1 exp.) since June 2018, led by services (55.1 vs. 51.0). Germany’s composite PMI (55.5 vs. 50.2 exp.) rose to the highest level since August 2018. However, there was one note of caution even with the index improving as employment was down for the fifth straight month. In France, the composite PMI rose to 57.6 (vs. 53.5 exp.), the highest since January 2018. In the UK, a high services beat (56.6 vs. 51.5 exp.) pulled the composite to 57.1 (vs. 53.5 exp.). Numbers out of the US showed the composite at 50.0, as both manufacturing (51.3 vs 52.0 exp.) and services (49.6 vs 51.0 exp.) failed to meet market expectations.

 

3A/ASIAN AFFAIRS

i))MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 8.46 POINTS OR 0.26%  //Hang Sang CLOSED DOWN 103.07 POINTS OR 0.41%   /The Nikkei closed DOWN 35.76 POINTS OR 0.16%//Australia’s all ordinaires CLOSED UP .35%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0033 /Oil UP TO 41.43 dollars per barrel for WTI and 43/51 for Brent. Stocks in Europe OPENED MOSTLY RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0033 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0062 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

North Korea

Looks like Kim is reaching out for help: North Korea is no doubt hit with the vicious COVID 19.

(zerohedge)

North Korea Locks Down Border Area After Acknowledging “Vicious” COVID-19 Outbreak

After months of insisting that North Korea had dodged the depredations of the coronavirus, media reports published Saturday afternoon (local time) claimed that ‘Dear Leader’ Kim Jong Un declared an emergency lockdown in an area near the DMZ after a person suspected of being infected with the virus returned to the North after illegally crossing into South Korea, according to state media reports.

If confirmed by international monitors, this would mark the first case officially acknowledged by North Korean authorities.

Kim convened an emergency Politburo meeting to address fears of an outbreak, with NK state propaganda network KCNA warned the population about a “critical situation in which the vicious virus could be said to have entered the country.”

The story shared by the NK government isn’t very believable, although we imagine that millions of people living in the North unquestionably accepted it as the truth. But the notion that an individual who defected from North Korea three years ago decided to sneak back across one of the world’s most heavily fortified borders and re-enter one of the world’s poorest, most repressive states simply isn’t believable. Western readers probably surmised that the virus has been running rampant across the country for months now.

After arriving first along the country’s northern border with China, the virus has clearly cut across the country and landed in the border villages along NK’s border with South Korea.

Interested parties can read the entire KCNA report (shared by the non-profit KCNA Watch) below:

Amid the intensified anti-epidemic campaign for thoroughly checking the inroads of the world’s threatening pandemic, an emergency event happened in Kaesong City where a runaway who went to the south three years ago, a person who is suspected to have been infected with the vicious virus, returned on July 19 after illegally crossing the demarcation line.

The anti-epidemic organization said that as an uncertain result was made from several medical check-ups of the secretion of that person’s upper respiratory organ and blood, the person was put under strict quarantine as a primary step and all the persons in Kaesong City who contacted that person and those who have been to the city in the last five days are being thoroughly investigated, given medical examination and put under quarantine.

The Political Bureau of the Central Committee of the Workers’ Party of Korea convened an emergency enlarged meeting in the office building of the Central Committee of the WPK on July 25 as regards the dangerous situation in Kaesong City that may lead to a deadly and destructive disaster.

Kim Jong Un, chairman of the WPK, chairman of the State Affairs Commission of the Democratic People’s Republic of Korea and supreme commander of the armed forces of the DPRK, was present at the meeting.

Attending the meeting also were members and alternate members of the Political Bureau of the C.C., WPK.

Present there as observers were members of the Central Emergency Anti-epidemic Headquarters.

Party and administrative leading officials of the Cabinet, ministries and national institutions, members of the executive committees of provincial Party committees and senior officials of the leading institutions at provincial level were present in the video conferencing rooms as observers.

Upon authorization of the Political Bureau of the C.C., WPK, Supreme Leader Kim Jong Un presided over the meeting.

Despite the intense preventive anti-epidemic measures taken in all fields throughout the country and tight closure of all the channels for the last six months, there happened a critical situation in which the vicious virus could be said to have entered the country, the Supreme Leader said, adding that he took the preemptive measure of totally blocking Kaesong City and isolating each district and region from the other within July 24 afternoon just after receiving the report on it.

To tackle the present situation, he declared a state of emergency in the relevant area and clarified the determination of the Party Central Committee to shift from the state emergency anti-epidemic system to the maximum emergency system and issue a top-class alert.

He specified tasks for each sector to be immediately implemented by Party and working people’s organizations, power organs, public security and state security institutions, anti-epidemic and public health institutions.

The meeting unanimously adopted a decision of the Political Bureau of the Central Committee of the WPK on shifting from the state emergency anti-epidemic system to the maximum emergency system.

He instructed all the participants to immediately conduct follow-up organizational work to carry out the decision of the Political Bureau of the Party Central Committee in their fields and units, and party organizations at all levels and every field to ensure and guarantee the most correct implementation of the directions and assignments of the Party Central Committee with a sense of boundless responsibility, loyalty and devotion.

He underscored the need to thoroughly maintain tough organizational discipline and ensure the unity in action and thinking throughout the Party and society, to keep order by which everyone absolutely obeys and moves as one under the baton of the Emergency Anti-epidemic Headquarters and the need for party organizations at all levels to perfectly perform their role and duty.

Saying that everyone needs to face up to the reality of emergency, he appealed to all to overcome the present epidemic crisis by not losing the focus of thinking and action, practicing responsibility and devotion to be faithful and true to the leadership of the Party Central Committee, being rallied closer behind it so as to defend the welfare of the people and security of the country without fail.

The meeting sternly took up the issue of the loose guard performance in the frontline area in the relevant area where the runaway to the south occurred, and decided that the Central Military Commission of the WPK would get a report on the results of an intensive investigation of the military unit responsible for the runway case, administer a severe punishment and take necessary measures.

One analyst quoted by the New York Post said Kim’s announcement was important not only because it amounted to confirmation that the virus was present, but also that Kim was appealing for help on NK’s behalf.

“It’s an ice-breaking moment for North Korea to admit a case,” said Choo Jae-woo, a professor at Kyung Hee University. “It could be reaching out to the world for help. Perhaps for humanitarian assistance.”

Given NK’s recent track record of belligerence, we wouldn’t be surprised to hear one of the NK regime’s classic ploys to tone down its rhetoric and destabiiizing behavior in exchange for humanitarian assistance from SK and the US.

b) REPORT ON JAPAN

 

3 C CHINA

CHINA VS USA/SATURDAY

China answer Houston closure with a raid on the uSA consulate in Chengdu

(zerohedge_

Watch: China Answers Houston Closure With Raid On US Consulate In Chengdu

China has slammed what it says is a violation of international law after on Friday a group of US federal agents were seen forcing open doors at the Chinese consulate in Houston using power tools and crowbars on Friday as consular staff inside prepared to leave after its ordered closure. 

The Trump administration had given China until 4pm Friday to vacate the Houston consulate. Mike Pompeo had charged that the consulate was “a hub of spying and intellectual property theft”.

China has shuttered the US consulate in Chengdu in response on Saturday:

The Chinese consulate in Houston had been there for over three decades and had an estimated 200 employees, about 150 of which were locally hired.

Days prior, after on Tuesday the order came down to shutter the consulate, fire trucks responded to smoke billowing from the back of the compound.

Consular workers had been observed conducting a mass burning of documents ahead of the consulate’s closure.

Subsequently, CNN described of Friday’s final raid and shutdown:

US federal agents and local law enforcement entered the Chinese consulate compound in Houston earlier Friday in a series of black SUVs, trucks, two white vans and a locksmith’s van as a crowd of observers and news cameras observed from the edge of the diplomatic compound.

Initial access was reportedly gained when US officials forced open the back door of the facility using power tools.

Meanwhile, the promised “response” from Beijing has come as on Saturday the US consulate in Chengdu, capital of southwestern China’s Sichuan province, was ordered close by Chinese authorities in a tit-for-tat reaction.

Dozens of Chinese agents and police surrounded the American compound on Saturday as moving vans pulled up to its doors.

Reuters reports of the scene Saturday:

In Chengdu, a U.S. consulate emblem inside the compound was taken down and staff could be seen moving about. Three removal vans later entered the compound.

Police gathered outside and closed off the street to traffic in the southwestern Chinese city.

…A steady stream of people walked along the street opposite the entrance throughout the day, many stopping to take photos or videos before police moved them on.

Plain clothes officers detained a man who tried to hold up a sign. It was not clear what the sign said.

Neither side has yet to give official comment on the US consulate closure in Chengdu, but we wonder which path things will take at this point now that the score is somewhat “even” on the mutual diplomatic compound closures: either more will follow or there could be talks and tensions could momentarily cool.

 

Massive Chinese security presence outside of the US consular building in Chengdu on Saturday, via Reuters.

But at the rate things are going, and perhaps given the White House needs a “distraction” away from the ongoing coronavirus crisis ahead of the November election, it’s likely US-China downward spiraling reactionary actions will continue.

end

CORONAVIRUS UPDATE HONG KONG/USA/GLOBE/MONDAY

Hong Kong Imposes Toughest COVID-19 Restrictions Yet As “Third Wave” Worsens: Live Updates

Summary:

  • European stocks slide, shaken by travel restrictions on Spain
  • Hong Kong imposes new restrictions
  • Masks must be worn indoors and outside when in public
  • 2 new deaths seen over the weekend
  • Moderna gets another ~$470 in US government funding

* * *

Update (0800ET): Perhaps the biggest COVID-19 news (at least as far as Europe is concerned) over the weekend were the myriad travel restrictions and advisories adopted by the UK, France, Norway and others targeting Spain and specifically those living in parts of Catalonia, including a large swath of the suburbs of Barcelona, along with most of the city itself.

The first travel restrictions were announced on Friday and Saturday, but these decisions were blamed for rattling the Stoxx Europe 600, which struggled for traction as airlines stocks were hammered over the UK’s decision to quarantine passengers returning from Spain.

* * *

Locally, officials have dubbed the current resurgence of SARS-CoV2-2 in Hong Kong the “third wave”, following the initial outbreak, and another surge in cases. But as new confirmed cases, and even a few deaths, have trickled in, city public health officials have ratcheted up safety protocols to their most restrictive levels yet.

On Monday, Hong Kong’s Chief Secretary Matthew Cheung announced that face masks would be mandatory in both indoor and outdoor public places from Wednesday, with offenders facing fines of up to HKD$5,000 ($645), although he didn’t say exactly whether these new measures would be enforced.

Hong Kong is also imposing more restrictive social-distancing measures, including limiting the number of people in public gathering to two from four, and banning all dine-in services at restaurants and food courts (previously, it had only banned dine-in service in the evenings and early morning hours).

The new rules will take effect Wednesday, Cheung said.

People with “reasonable excuses” such as medical conditions or children under the age of two will be exempt, he added.

As Hong Kongers bristle about a new national security law, the government in Beijing just committed to building a Wuhan-style makeshift hospital near Hong Kong’s airport with a capacity of around 2,000 hospital beds.

Local stock markets took a hit on the news, as Hong Kong developers extended declines, as the number of new virus cases rose by more than 100 daily in the past five consecutive days in the city.

The epidemic situation is critical,” Cheung said. “We are facing a high risk of community outbreak.”

The restrictions come as the city faces a coronavirus outbreak dubbed locally as its “third wave,” with the origin of many infections still unknown. Hong Kong had been lauded for its relative success in curbing the spread of the coronavirus. However, on Monday, Hong Kong authorities reported more than 100 new cases for the sixth straight day, bringing the city’s total to more than 2,700.

* * *

Before Monday’s numbers were announced, 1,163 new cases had been recorded over the past 14 days. The origins of 492 of these infections have not been traced.

Asked why the city stopped short of imposing a complete lockdown, Cheung said a lockdown would be “too inconvenient” and that these new measures would be “more appropriate.”

Despite its proximity to China, Hong Kong has done an admirable job of keeping infection numbers low (evidenced by the relatively small numbers of patients who have had to seek medical treatment for the disease). Over the weekend, an elderly woman, 76, and an even older man, 92, succumbed to COVID-19. That raised the city’s death toll to 20.

By comparison, Florida and Texas recently eclipsed 5,000 deaths.

Meanwhile, in the US, we saw some signs of a silver lining as more of the worst-hit Sun Belt states saw daily numbers for new cases decline.

Finally, Moderna shares are surging Monday morning in premarket trading on the news that the vaccine candidate would be proceeding to another government-backed late-stage trial. The trial is the first to be implemented under the US government’s “Operation Warp Speed” – the Trump-approved quest to find a workable vaccine by the end of the year.

Moderna also revealed that the biotech darling had received another award from the US government for $472 million, taking Moderna’s total government funding to just under $1 billion. Its shares were up 11% in premarket trading.

During a morning interview with CNBC, Dr. Scott Gottlieb said the vaccines so far looked promising.

We can’t help but wonder…

…if that’s accurate, then when were these stock sales scheduled, and why?

END

Kyle Bass:  Tik Tok is nothing but a Chinese Communist Party Trojan force

(zerohedge)

Kyle Bass Slams TikTok As ‘CCP Trojan Horse’ Following Disturbing ProtonMail Exposé

Before using Chinese video-sharing app TikTok, one might want to read this article from encrypted email company ProtonMail, as recommended by Kyle Bass:

*  *  *

Authored by Richie Koch via ProtonMail

TikTok and the privacy perils of China’s first international social media platform

TikTok, the video-sharing platform owned by the Chinese social media giant ByteDance, is one of the most popular social media services in the world, with an estimated 800 million users. However, its zealous data collection, use of Chinese infrastructure, and its parent company’s close ties to the Chinese Communist Party make it a perfect tool for massive surveillance and data collection by the Chinese government.

After reviewing TikTok’s data collection policies, lawsuits, cybersecurity white papers, past security vulnerabilities, and its privacy policy, we find TikTok to be a grave privacy threat that likely shares data with the Chinese government. We recommend everyone approach TikTok with great caution, especially if your threat model includes the questionable use of your personal data or Chinese government surveillance.

How much user data does TikTok collect?

As with just about every social media platform, the answer is: “a lot.” According to its privacy policy, even if you just download and open the app but never create an account, TikTok will collect your:

  • IP address
  • Browsing history (i.e., the content you viewed on TikTok)
  • Mobile carrier
  • Location data if you are using a mobile device (including GPS coordinates and WiFi and mobile cell data)
  • Info on the device you used to access TikTok (for Android devices, this includes your IMEI number, which is essentially your device’s fingerprint so it can be identified, and potentially your IMSI number, which is used to track users from one phone to another)

To open an account, you must enter a phone number or email and your date of birth. Once you have created an account, TikTok asks your permission for access to your social media accounts (like Twitter, Instagram, Facebook, etc.), your phone’s contact list, and GPS data.

Once you start using the app, TikTok logs details about:

  • Every video you upload
  • How long you watch videos
  • Which videos you like
  • Which videos you share
  • Any messages you exchange in the app

Finally, if you buy coins, the in-app currency you can use to support your favorite video creators, TikTok will store your payment information.

According to TikTok, if you delete your account, the company will delete your account data, videos, and information within 30 days. This claim is impossible to independently verify, as is the case with most social media companies.

TikTok’s data collection is extreme, even for a social media platform that collects its users’ data to serve them with targeted ads. And TikTok explicitly states in its privacy policy that it shares your browsing data and email address with third parties so that it can serve you with targeted advertising.

TikTok faces multiple class-action lawsuits in the US

On November 27, 2019, a group of TikTok users in California filed a class action lawsuit against TikTok and ByteDance, saying the TikTok app “includes Chinese surveillance software.” The lawsuit claims TikTok collects all videos shot on the app, even if the videos are not published or even saved. The lawsuit goes on to allege that TikTok uses the videos and photos users upload to collect biometric data (such as face scans) without user permission and that even after you close the app, TikTok continues to collect biometric data.

This lawsuit also alleges that TikTok surreptitiously sends user data to China, something we will address below.

There is a similar class action lawsuit from users in Illinois. This suit also alleges that TikTok uses facial recognition technology and AI to collect users’ facial geometry without informing their users. Illinois has a strict law that requires companies to receive consent before they collect any biometric data.

Does TikTok share data with the Chinese government?

What distinguishes TikTok from other social media giants is that it is owned and operated by a Chinese company. ByteDance, the company that owns TikTok, is headquartered in Beijing and is worth over $100 billion. Chinese domestic laws and regulations, along with internal party politics, can make it hard to parse whether a company is independent or coordinating with the Chinese Communist Party.

Even if ByteDance wanted to resist Chinese Communist Party control, it would have little real prospect of doing so. China’s National Intelligence Law, passed in 2017, allows the government to compel any Chinese company to provide practically any information it requests, including data on foreign citizens. Furthermore, Chinese laws also can force these requests to be kept secret and not disclosed via transparency reports. The lack of an independent judiciary system makes it almost impossible for a company to appeal a request from the Chinese government. On top of that, Chinese companies of any real size are legally required to have Communist Party “cells” inside them to ensure adherence to the party line.

However, there is little evidence ByteDance wants to resist the Chinese government. In fact, there are numerous examples that it is complicit in the Chinese Communist Party’s authoritarian policies. In 2018, ByteDance shut down Neihan Duanzi, a Chinese social media platform that was primarily used to share jokes and comedy, after state censors accused it of hosting “vulgar” content. Afterward, ByteDance said that it would “deepen cooperation” with the Chinese communist party. It then hired 2,000 more “content reviewers” and stated that “strong political sensitivity” would be an asset for the position.

ByteDance has repeatedly made the case that TikTok is not available in China and that user data is not stored in China. This is misleading. In its privacy policy, TikTok explicitly reserves the right to share user information with other members of its “corporate group” (i.e., ByteDance). 

Additionally, a white paper by the cybersecurity firm Penetrum found that over one-third of the IP addresses the TikTok APK connects to are based in China. The majority of these IP addresses are hosted by Alibaba, another Chinese tech giant. These IP addresses are what led to the allegations in the California lawsuit that TikTok secretly sends data to China. According to the Penetrum report, “TikTok does an excessive amount of tracking on its users and that the data collected is partially if not fully stored on Chinese servers with the ISP Alibaba.

Alibaba works closely with the Chinese Communist Party and supports its invasive surveillance and censorship. It has a police post at its headquarters to facilitate data sharing with authorities and developed a popular Chinese propaganda app.

The Chinese government has long used the data it collects from Chinese tech companies to monitor, censor, and control its citizens. The all-seeing surveillance system they have created to monitor Uyghurs in Xinjiang is just one example. It also maintains an Orwellian “blacklist” that the government uses to prevent over 13 million “untrustworthy” citizens from purchasing plane or train tickets. One can only imagine what the Chinese government would do if it were able to extend its data collection beyond its borders.

TikTok and censorship

There are also concerns that the Chinese government and ByteDance are using TikTok as a tool to extend China’s censorship. American employees reported to the Washington Post that they were pressured by administrators in Beijing to restrict any political content.

The Guardian reported on TikTok guidelines that require moderators to block videos that “distort” historic events, such as “Tiananmen Square incidents.” In one example, a teenage girl from Florida had her account shut down after she brought attention to the plight of the Uyghurs, a Muslim minority in China. (TikTok later reinstated her, claiming her ban was an error.)

Is TikTok secure?

In December 2019, the cybersecurity researchers at Check Point Research discovered multiple vulnerabilities, including ones that would allow attackers to delete user videos, make hidden videos public, or upload unauthorized videos. The researchers worked with the TikTok team, and they say that these vulnerabilities have now been resolved.

In April 2020, security researchers discovered that some versions of the TikTok app for Android and iOS rely on HTTP connections. By not using HTTPS, TikTok makes it easy for attackers to monitor user activity and even alter the videos the user sees without their knowledge.

TikTok says a fix is already underway, but this certainly isn’t a strong track record when it comes to security.

TikTok and children

Given the demographics of TikTok users and the amount of data TikTok collects, the company has faced criticism for collecting data from children. In February 2019, Musical.ly, the Chinese social media app that ByteDance bought and then merged with TikTok, paid a $5.7 million fine to the FTC to settle allegations that it violated the Children’s Online Privacy Protection Act (COPPA) by letting children under 13 sign up to its platform without their parents’ consent.

In May 2020, 20 advocacy groups alleged that TikTok is still violating COPPA. They said the company never deleted the personal information it collected from children under 13 prior to the 2019 FTC settlement, is still not obtaining parents’ consent before collecting children’s personal info, and does not allow parents to review or delete the personal information it collects from their children.

Scrutiny of TikTok increases

Since February, politicians in Australia have been calling for greater scrutiny of the company’s data collection and possible censorship. On June 29, the Indian government banned TikTok, along with over 50 other Chinese apps. And now, the US government is also weighing whether they should impose a ban on the app.

As one US lawmaker said to the Wall Street Journal, “all it takes is one knock on the door of their parent company [ByteDance], based in China, from a Communist Party official for that data to be transferred [from TikTok] to the Chinese government’s hands, whenever they need it.

Recently, US politicians have floated the idea of ByteDance selling TikTok as one way for the social media company to avoid questions over what it does with its users’ data. However, Chinese infrastructure and control are clearly deeply integrated into TikTok’s system, and it would be extremely hard for any company that purchased it to undo.

Our take on TikTok

We stand for freedom of expression, and we want everyone to be able to voice their opinion. However, social media giants from TikTok to Facebook demand troves of personal data in exchange for the use of their platform. Often this data collection verges into the extreme. Does TikTok need access to your device’s ID number to deliver its service?

The fact that TikTok is owned by a Chinese company, one that has explicitly said it would deepen its cooperation with the Chinese Communist Party, makes this excessive data collection even more concerning. The Chinese government has a history of strong-arming and co-opting Chinese tech companies into sharing their data and then using this data to intimidate, threaten, censor, or engage in human rights abuses.

For these reasons, it is our opinion that, from a security and privacy standpoint, TikTok is an extremely dangerous social media platform. Its potential for mass collection of data from hundreds of millions of adults, teenagers, and children poses a grave risk to privacy. We believe that TikTok should be viewed with great caution, and if this concerns you, you should strongly consider deleting TikTok and its associated data.

You can get a free secure email account from ProtonMail here.

We also provide a free VPN service to protect your privacy.

ProtonMail and ProtonVPN are funded by community contributions. If you would like to support our development efforts, you can upgrade to a paid plan. Thank you for your support.

4/EUROPEAN AFFAIRS

Bill Blain/Comments on Europe…

Blain Warns “It Could Get Pretty Rough Out There” Despite EU Cheerleading

Authored by Bill Blain via MorningPorridge.com,

“It is no coincidence that no language has ever produced the expression: “As pretty as an airport.””

My spidey senses are tingling. I have a feeling this is going to be an “interesting” week for markets. The virus, and the government responses toward it, look likely to remind us just how destabilised economic growth has become. We’ll be getting the Fed response on how US growth may be stalling on Wednesday versus expected better European numbers on Thursday.  Q2 numbers may yet disappoint. I suspect the current cosy global recovery expectations consensus will be shaken by rising hotspot outbreaks across the US, India and even Asia.  Add in likely earning shocks from global plane makers reporting this week, (Boeing accounts for around 1% of US GDP on its own), plus increasing political uncertainty over the US election.. and then ponder what this morning’s record Gold price in Asia means… It could get pretty rough out there. 

But let’s start with Europe and the Virus:

First up is the myth Europe has had a good virus. Has Europe’s “competent” handling of the virus positioned it to benefit from a stronger recovery?  Is that why Italy needs the lion’s share of the €750 bln EU Recovery Fund to get back on its feet? The reality is Europe was heading into economic slumber long before we’d even heard of Wuhan.  What we are more likely seeing is European bounce back from what was an already much lower base – there is nothing particularly magic about how European numbers seem to be ticking up faster than the UK or US.  It’s all about how there was already so much more slack in Europe before this crisis began. Be cautious on numbers and relative performance.

A second issue for Europe is the power of human behaviour.  The virus effect on the economy is a macro event – but it comprises the sum of every single human’s behaviour.

Let me digress a moment: I’m sure you all have virus stories to share – but let me illustrate behaviour with two different pub lunches over the weekend. 

  • Saturday’s pub had clearly posted how it would operate by social media and website, and they’d really thought it through: there was an uploadable app to order drinks and food, and it arrived swiftly from a masked but very friendly waitress. It worked well. 
  • In Sunday’s pub, there was fear and panic.. despite the incident tape and 2 metre markers, and plastic screens at the bar, an anxious landlady was screaming at customers to keep their distance.  A single barman was dispatched to stand outside slowing taking orders on a tablet.  Customers then had to stand and wait for a girl to spray down the table with bleach before sitting down.  A lady was barked at to stay outside because someone was already in the loo. It was like something out of Fawlty Towers…

Which pub do you think will do better this summer?

It’s the way people react and learn from the crisis that will determine future growth prospects. The FT touches on it: Swedish Companies reap benefits of COVID-19 approach.  By keeping the economy and particularly the schools open, the Swedes maintained normality and although the economy will take a hit in line with the globe, the Swedish behaviour have not been permanently damaged by the virus. (Keeping schools normal seems the critical ingredient.)

Here in the UK its very different.  The daily litany of virus news, the constant sniping at government and the oppressive fixation on issues like schools, PPE, and deaths means individuals are increasingly anguished, stressed and fearful. There is no Blitz Spirit – just rising fear and depression. Lockdown is morphing into a permanent mental-heath crisis. It’s unlikely to get better. “Significant normality”, as Boris puts it… could remain out of reach for longer – especially if governments continue to over-react, dither, backtrack and push danger signals which up the individual fear levels.

I can’t help but wonder at the news UK tourists returning from Spain will be expected to quarantine for 14 days. Really? New cases in Catalonia are rising as fast as during for first Virus Wave – yet no one thinks this is yet the second wave the medical experts fear will hit in the autumn. Elsewhere in Spain, the numbers remain low – but by pressing the quarantine button on the whole country, all kinds of signals have been sent, and these are picked up by nervous populations!

Spain’s economy was hoping to recover something of the season, but this could put it back years – and tourism is 11% of Spain’s GDP.  Tui has cancelled flights to the Costas. If Spain is hurting, how much will the rest of Club Med suffer, if Brits (25% of European tourism) staycation?

We now know the economic damage of even limited lockdowns could be even worse than first time round – it’s the “nuclear option” no one wants to repeat.  Bloomberg quotes new French prime minister, Jean Castex on resumed lockdown: “we won’t survive, economically or socially.” Not just for our mental health, we have to get economies open!

The third area of concern is the very real damage the virus has done to the base of the economy.  Although gyms, hairdressers and others are now back in business – they have lost 1/3rd of their yearly income, but still face 12/12s fixed costs. And if customers are scared, and businesses can only operate at 30% capacity… then it’s clear just how much more damage is still to come – and why the entrepreneurs running their own businesses are set to give up in droves.

We’re now seeing small business redundancies start to ratchet higher as business owners understand the brutal reality their businesses won’t survive on the basis above, and once furloughs end, they can’t afford to carry their staff any longer.  It’s going to be bleak out there.

And the final thing about Europe – this is happening in an economic area where the virus is now largely confined to hotspot outbreaks.

Elsewhere, around the globe, the virus is still burning. The pace of increase in the US remains frightening – but looks like the first wave is only now finding its way into the southern “secondary” states. Even Donald is acknowledging it matters. The scale of the rising crisis in India is putting pressure on Modi. The fact Hong Hong is experiencing a rise could be indicative of something scary, or is it the Chinese trying to gag the former colony?

I mentioned the aircraft industry in the opening paragraph. Clearly global travel is among the most compromised sectors – this week we’ll see airlines announce frightening figures. Boeing and Airbus will post their worst delivery numbers in 60 years! I’m planning to do a special on aviation later this week, but this a great article in WSJ on just how bad things are: At Boeing and Airbus Finished Aircraft Pile Up.

Meanwhile, Gold hit new records this morning, breaking $1922 – but my colleague and commodities expert at Shard, Ashley Boolell, warns me to be “conservative” – worried there may be an element of market hype building into the price.

Gold has risen on the back of virus fears and the escalating tension between the US and China, but also on the increasing understanding that Zero Interest Rate Polices and QE Infinity have grossly distorted the prices of financial assets – enhancing the yellow metal’s appeal as a tangible thing of value.  However, could the rise in gold be over-anticipating crisis? It’s a very easy market to get sucked into.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/USA/GREECE/EU

Belligerent Erdogan continues to upset the west:  now he is sending in gas drilling companies in waters belong to Greece. If Turkey threatens Greece, Israel will come to its aid.  The last thing Israel needs is Turkey blocking the huge underwater pipeline to be built connecting the find to European countries

(zerohedge)

Turkey Rejects US & EU Calls To Cease East-Med Gas Drilling As Greece Threatens Military Action

Days after the US State Department warned Turkey over its gas reserves exploration and drilling plans in waters between Cyprus and Greece, which Athens has declared ‘illegal’ given it cuts into Greece’s Exclusive Economic Zone (EEZ), the European Union has also put Turkey on notice, warning it could move forward with sanctions.

French President Emmanuel Macron said late this week that it’s “not acceptable for the maritime space of a European Union member state to be violated or threatened” and called for sanctions if it moves forward. On Tuesday a US State Department statement demanded that Turkey back down from its drilling plans which have put the Greek Navy on “high alert” – given Turkish exploration ships are already in or near Greek waters.

Greek media sources are now reporting that Turkey through its embassy in Washington DC has informed the Americans that it plans toproceed unimpeded with its drilling research with the Oruc Reis vessel in the disputed eastern Mediterranean waters

 

Turkey’s seismic exploration ship Oruc Reise in the Eastern Mediterranean this week, via Anadolu Agency.

“We urge Turkish authorities to halt any plans for operations and to avoid steps that raise tensions in the region,” the statement said. And Greece’s foreign ministry said it clearly violates the country’s sovereignty and that it stands ready to defend its territory.

Turkey has so far rejected all demands from the US, EU, Greece and Cyprus that it back down. Turkey’s Daily Sabah newspaper cited President Erdogan’s office as follows:

Turkey rejects Greece’s “maximalist” objectives in the Eastern Mediterranean, which lack a legal basis and disregards logic, Presidential Spokesperson Ibrahim Kalın said Thursday.

Kalın highlighted that Turkey opposes the rhetoric of threats and favors an equal distribution of resources.

The Greek side’s “maximalist” position claims that the island of Kastellorizo (Meis in Turkish)-only 2 kilometers from the Turkish shore, but about 580 km away from the Greek mainland-“should have a 40,000 square km continental shelf area, which is almost like half of Turkey’s Gulf of Antalya,” Kalın told an online policy briefing by the European Policy Centre in cooperation with the Foreign Economic Relations Board of Turkey (DEIK).

Turkey has claimed that it’s “well within its rights” amid the gas exploration and drilling.

Though Turkish media has claimed the Oruc Reis vessel has already commenced with its mission in the disputed waters, a number of analysts have cried foul, citing that it hasn’t actually left port, given Ankara may be taking Greek threats of military action seriously:

Turkey has used its claims over northern Cyprus, or the so-called “Turkish Republic of Northern Cyprus,” to say it can drill in waters encircling the entire island.

Analysts have feared the additional deployment of naval forces by both sides amid the dispute could easily lead to a break out into war.

“I want to echo the clear message from Washington and elsewhere in Europe, urging Turkish authorities to halt operations that raise tensions in the region, such as plans to survey for natural resources in areas where Greece and Cyprus assert jurisdiction in the eastern Mediterranean,” he said.

END

A message is sent to Turkey via Egypt, France and Cyprus as both conduct naval exercises in the Mediterranean

(AlMasdarNews.com)

In Message To Turkey, France & Egypt Conduct Joint Naval Exercises In Mediterranean

Via AlMasdarNews.com,

On Saturday, the Egyptian and French naval forces carried out naval drills in the eastern Mediterranean, with the participation of the Egyptian Ghost frigate and French Ghost frigate (ACONIT).

These joint naval drills also come at a time when Egypt, Greece, France, and Cyprus are at odds with Turkey over the latter’s intervention in Libya and their oil exploration plans in the eastern Mediterranean.

 

Egypt and France joint naval drills this weekend, via Egyptian Army Spokesman.

According to the Egyptian army statement, “The training included many training activities of a professional nature focused on methods of organizing cooperation in the implementation of combat missions in the sea against hostile marine formations with the actual use of weapons in engagement with surface and air targets in addition to the implementation of confrontational battles, with the use of aircraft.”

The statement said, “The training showed the professionalism of the crews of ships in carrying out combat missions with accuracy and high efficiency, with a focus on common coordination points between all the common elements.”

It added that “these exercises are in the framework of supporting the pillars of joint cooperation between the Egyptian and French armed forces, and identifying the latest fighting systems and methods in a manner that contributes to honing skills and combat and operational experiences and supporting efforts of maritime security, stability and peace in the Mediterranean.”

Meanwhile on the same day, Saturday evening, the Turkish Ministry of Defense published a video clip of its own military exercises in the eastern Mediterranean region, amid heightened tensions over the Libyan crisis.

The Ministry of Defense tweeted that “Turkish fighters carried out training exercise in the eastern Mediterranean last Thursday, July 23,” without providing further details.

He said that “sending Egyptian forces to Libya would be a dangerous military adventure, in addition to the support that France provides to Haftar, threatens the security of the North Atlantic Treaty Organization (NATO)… We are only here to protect our rights… We do not accept the language of threats or the threat of sanctions.

end

6.Global Issues

 

DeBeers

It appears that the world’s largest diamond company is bust

(zerohedge)

 

“Paralyzed By The Pandemic” – World’s Largest Diamond Company Considers Restructuring

De Beers Group, the world’s largest oldest diamond company, is expected to undergo a restructuring period as diamond sales collapse. 

Bloomberg notes the company “is considering ways to restructure mines, expand in jewelry and overhaul diamond sales.” Adding that it must “rethink its entire business in an industry left paralyzed by the pandemic.”

There’s going to be no V-shaped recovery for the diamond industry this year. The industry has been severely damaged by the virus-induced downturn, as consumers across the world can no longer afford pricey diamonds.

Even before the global downturn, diamond sales were waning with De Beers. The younger generation lost interest in the whole marriage thing, as their finances, with insurmountable debts and no savings, made it near impossible to layout enough money for weddings and a diamond ring.

The  big bad COVID-19, led to a further collapse in consumer finances, along with a period where jewelry stores were closed around the world. This pressured De Beers, who reported $56 million in rough diamonds sales in 2Q20, down 96% from a year earlier. RBC expects the diamond company to post a $100 million loss in 1H20.

Read:Diamond Crisis – De Beers Records Lowest Profits Since 2009

De Beers CEO Bruce Cleaver told employees this week, in an email, that it will “narrow the gap between its revenue and costs.” He warned diamond demand would slump in the near term.

“Covid-19 has compounded and exacerbated difficulties that already existed in the diamond world,” Cleaver said. “These difficulties, which have inhibited our growth over the past several years, have become even more urgent to address. They require us to act now to protect the short-term health of the business while refocusing and reorienting it to realize our long-term potential.”

Cleaver didn’t layout all the changes in the company email. Bloomberg notes the restructuring will likely result in job cuts.

Shown below, spot diamond prices via IDEX show prices have been slumping for more than 5-years.

The world’s largest diamond company appears to have gone bust. 

end
World trade continues to falter
(zerohedge)

World Trade Continues To Slide As Recovery Sputters 

New data published by CPB Netherlands Bureau for Economic Policy Analysis on Friday reveals world trade fell 1.1% in May after a 12.2% plunge in April.

Highlights from the CPB report indicate world trade continues to decelerate:

  • World trade volume decreased 1.1% month-on-month (growth was -12.2% in April, initial estimate – 12.1%).
  • World trade momentum was -11.6% (non-annualised; -6.9% in April, initial estimate -7.2%).
  • World industrial production increased by 0.8% month-on-month (having decreased 8.5% in April, initial estimate -8.1%).
  • World industrial production momentum was -7.1% (non-annualised; -5.8% in April, initial estimate – 5.6%).

To visualize the collapse in world trade, CPB published several charts showing world merchandise trade volume to industrial production volume, all suggesting the global recovery is far from a “V.”

World Merchandise Trade Volume 

Industrial Production Volume 

“Although the full impact of the pandemic is not yet reflected fully in trade statistics, it is expected to be very substantial”, said WTO director-general Roberto Azevedo, who presented the trade report to its 164 member states on Friday.

WTO said last month that 2Q20 world trade YoY could plunge upwards of 18%. Along with slumping world trade, we noted earlier this week (July 21) that the global recovery is running on fumes.

To get a better sense of what collapsing world trade means for global stocks. Here is world trade volume versus MSCI World.

The reason for levitation in stocks is because of the unprecedented central bank money printing.

If readers want a hint at what could come next – here’s Gary Shilling, the president of A. Gary Shilling & Co., who belives a 1930’s-style depression in stocks is ahead.

end

APPLE STOCK

The world’s mostly highly held stock Apple:

Many warning that Apples’ fundamentals did not support its lofty price

(zerohedge)

Apple Bears Come Out Of Woodwork With New Warnings Ahead Of Earnings 

Apple is set to report earnings this coming Thursday (July 30), and already, bears are coming out of the woodwork to warn about deteriorating fundamentals.

Wolfe Research analyst Jeff Kvaal wrote in a note Friday (seen by Barrons) that Apple’s current valuation was perplexing:

“Few firms shape their industry as has Apple; fewer shape society,” Kvaal wrote. “We challenge neither premise. We do, however, ponder the stock’s sharp multiple expansion. Possible rationales—a 5G supercycle, mix shift to services, re-rating to a consumer staples multiple—all seem thin.”

With shares up 75% since the March low, Kvaal warns Apple’s fundamentals “can’t support the move.”

He downplayed the 5G supercycle tailwind, indicating “orders into its supply chain are flat to below last year’s iPhone 11 orders.”

Adding that, “US operator data from the 4G cycle indicates a lengthening replacement cycle,” he wrote. “Phone sales decelerated sharply during the 2008 recession. Neither trend supports a 2020 supercycle. We believe Apple’s iPhone 12 orders into its supply chain are flat to below last year’s iPhone 11 orders.”

Kvaal continues, “Apple’s rising services mix, sticky ecosystem, and capital return policy do merit multiple expansion from its five-year average of 14x,” but that “the expansion to 26x seems aggressive.”

We noted Thursday, Goldman Sachs advised its clients to “avoid the stock,” labeled it as “unsustainable.”

Also, Wells Fargo analyst Aaron Rakers said estimates for Apple seem too high for the September and December quarters “given the current environment and uncertainties on the velocity of a materializing 5G iPhone upgrade cycle.”

On Saturday, china ordered Apple to remove all games on its app platform in the country that don’t have approval from the government.

Financial modeling via StarMine shows Apple’s intrinsic value is around $195 per share, the stock is currently trading at around $370.

If Apple shares slump next week, Jerome Powell, and the clowns at the Federal Reserve, might have to restart the printing presses, or at least keep buying Apple bonds. Brrr.

end

Micheal Every… on the plight of the dollar

(Michael Every)

Rabobank: The Story Of The Crashing Dollar Is Very Exciting… And Desperately Inaccurate

By Michael Every of Rabobank

 

If there’s one clear ‘trend’ at the moment that gets market tongues wagging and teenage scribblers scribbling, it’s that the USD is in trouble. “Down goes the dollar,” say the market press headlines. “And it can go further.” Indeed, from a technical point of view we are also approaching some key trend lines too and already saw a ‘death cross’ on Friday as the 50-day moving average went through the 200.

How exciting this all is. And how desperately inaccurate.

Yes, it’s undeniable that the broad USD index, or DXY, is on the back foot again today, and has been for months, and it is down 3% in July alone. However, DXY is about as much use as a chocolate teapot. It’s overwhelmingly skewed to just a few major crosses such as EUR/USD and USD/JPY, which makes it institutionally useful, perhaps, but an irrelevance for a huge swathe of the globe. Let’s take a year-to-date snapshot of some currencies to underline what I mean.

  • EUR: as I type, EUR is at 1.1706. EUR started 2020 at 1.1213, so that’s a genuine gain. Not bad for a bloc seeing the second-largest economy leave the EU with no guarantee of anything other than trade-shattering WTO terms by year end; or for a tourism-focused region as Spain sees virus cases flare up again, prompting several countries to reimposed lockdown for those returning from it.
  • JPY: is at 105.6 when it started at 108.6. Again, that’s a real gain. Not a huge one, but a gain.
  • GBP: is at 1.2840 despite all the Boris-ness that this current government brings with it (no trade deal with the EU? Well we will have one with the US. No trade deal with the US? Well, we will have one with India. No trade deal with India? Look, the Premier League and cricket have re-started!) GBP started the year at 1.3257. Such a USD slump.
  • CNY: Of particular focus here, and standing at 7.0 having started the year at 6.96. What a devastating plunge in the greenback vs. the currency of the world’s second-largest economy. Devastating. (And as the US consulate in Chengdu closes today.)
  • AUD: is at 0.7137, which makes no sense to me, but against the 0.7037 at the start of the year. Again, not much of a fall.
  • NZD: stands at 0.6675 vs. 0.6740 – so the USD is still up year to date despite Kiwi virus success.
  • INR: is at 74.7 vs. 71.38 at the beginning of 2020. That’s a sizable USD gain.
  • IDR: sits at 14,563 vs. 13,866. Again, a big USD appreciation.
  • BRL: is 5.23 vs. 4.02, a staggering USD gain.
  • ARS: is at 71.89 vs. 59.87, again a total slump in the local currency.
  • MXN: is 22.22 vs. 18.92 – so chalk up another USD ‘win’.
  • ZAR: stands at 16.57 vs 14.00, showing the same trend.

In short, this is mainly a DXY story driven by risk-on in EUR and risk-off in JP, and not a reflection of broader USD weakness over the year. Of course, this overlooks the fact that in all the cases above USD has been far stronger than it is now: AUD was at 0.55 briefly, and many of the others were equivalently weaker too at one point. Does this really mean the USD is in trouble though? Hardly! We are just seeing some recent excess wound back – and the question is if it is temporary or not. And this USD weakness is alongside the Fed promising to buy everything that moves, or doesn’t, and with fiscal deficits as far as the eye can see.

As such, when we see that in Washington DC another USD1 trillion stimulus bill that will swap USD600 weekly extended unemployment benefits for one equivalent to 70% of salary is being prepared (presumably those in DC liked my lyrics to ‘Suicide is Painless’ from Friday?), then the short term pressure on USD may continue. Yet don’t think for a moment that there won’t then be a round of further mega stimulus needed everywhere else too – because it will. Jobs are gone and aren’t coming back. Many supply chains are moving and aren’t coming back. Some capital flows will soon shift and won’t come back either. All of this is going to lean positive for USD, and a time when the greenback is already doing well year-to-date vs. most of the globe, geographically.

And then we come to geopolitics. Forget about Chengdu: that’s done. Read the New York Times story from the weekend which recaps what has been going on and argues that the China hawks in the White House are, as I had suggested would happen, doing all they can to burn bridges to reach a point of no return in US-China relations to ensure there can be no détente-style backsliding under a potential Biden administration. On that note, I repeat the question: what do you do on China in your lame-duck period in office if you are Trump and you lose the election? Exactly.

And read the report in The Australian which notes that major defense strategists around the world last week undertook a “risk assessment” of potential military conflict between China and the US: they rate conflict in the next 12 months as “likely”; over the next two years as “highly likely”; and over the next three years as “almost certain”.

Something to consider as the teenage scribblers who are filling in because they don’t need to go on holiday with their kids try to fill the market headlines while we wait for the Fed, for the new US stimulus package, and for the first look at Q2 GDP; and all that as we are now just 99 days to the US election.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1725 UP .0072 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 /MOSTLY RED EXCEPT GERMAN DAX

 

 

USA/JAPAN YEN 105.32 DOWN 0.773 (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 1.2858   UP   0.0071  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3378 DOWN .0028 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  MONDAY morning in Europe, the Euro ROSE BY 72 basis points, trading now ABOVE the important 1.08 level RISING to 1.1725 Last night Shanghai COMPOSITE CLOSED UP 8.46 POINTS OR 0.26% 

 

//Hang Sang CLOSED DOWN 103.07 POINTS OR 0.41%

/AUSTRALIA CLOSED UP 0,35%// EUROPEAN BOURSES MOSTLY RED EXCEPT GERMAN DAX

 

Trading from Europe and Asia

EUROPEAN BOURSES MOSTLY RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 103.07 POINTS OR 0.41%

 

 

/SHANGHAI CLOSED UP 8.46 POINTS OR 0.26%

 

Australia BOURSE CLOSED UP. 35% 

 

 

Nikkei (Japan) CLOSED DOWN 35.76  POINTS OR 0.16%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1940.20

silver:$24.28-

Early MONDAY morning USA 10 year bond yield: 0.578% !!! DOWN 1 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1.22 DOWN 1  IN BASIS POINTS from FRIDAY night.

USA dollar index early MONDAY morning: 93.79 DOWN 64 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.35% DOWN 1 in basis point(s) yield from YESTERDAY/

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

SPANISH 10 YR BOND YIELD: 0.35%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.99 DOWN 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 64 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.49% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.48% 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 MONDAY

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

Euro/USA 1.1757  UP    .01040 or 104 basis points

USA/Japan: 105.31 DOWN .780 OR YEN UP 78  basis points/

Great Britain/USA 1.2882 UP .0094 POUND UP 94  BASIS POINTS)

Canadian dollar UP 17 basis points to 1.3389

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9964    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0030  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8700 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 FRIDAY at 0.583 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.22 DOWN 1 in basis points on the day

Your closing USA dollar index, 93.63 DOWN 81  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 MONDAY: 12:00 PM

London: CLOSED DOWN 12.32  0.26%

German Dax :  CLOSED UP 0.60 POINTS OR .00%

 

Paris Cac CLOSED DOWN 16.81 POINTS 0.34%

Spain IBEX CLOSED DOWN 124.10 POINTS or 1.70%

Italian MIB: CLOSED DOWN 55.31 POINTS OR 0.28%

 

 

 

 

 

WTI Oil price; 40.75 12:00  PM  EST

Brent Oil: 42.56 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    71.80  THE CROSS HIGHER BY 0.13 RUBLES/DOLLAR (RUBLE LOWER BY 13 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.49 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 :  41.65//

 

 

BRENT :  43.49

USA 10 YR BOND YIELD: … 0.612 up 2 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.26 up 3 basis  points ..

 

 

 

 

 

EURO/USA 1.1752 ( UP 98   BASIS POINTS)

USA/JAPANESE YEN:105.36 DOWN .735 (YEN UP 74 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 93.76 DOWN 76 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2870 UP 82  POINTS

 

the Turkish lira close: 6.8600

 

 

the Russian rouble 71. 582   UP 0.02 Roubles against the uSA dollar.( UP 2 BASIS POINTS)

Canadian dollar:  1.3353 UP 53 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.49%

 

The Dow closed UP 114.88 POINTS OR 0.43%

 

NASDAQ closed UP 173.09 POINTS OR 1.67%

 


VOLATILITY INDEX:  24.74 CLOSED DOWN 1.10

LIBOR 3 MONTH DURATION: 0.246%//libor dropping like a stone

 

USA trading today in Graph Form

Dollarpocalypse Sends Gold, Silver, & Crypto Soaring

Things just “escalated quickly” in dollar-land as the greenback was clubbed like a baby seal to its lowest level since Sept 2018 today…

Source: Bloomberg

Breaking a key up-trendline…

Source: Bloomberg

Creating the so-called “death cross”…

Source: Bloomberg

“I love the smell of burning dollars in the morning…”

And as the dollar collapsed, gold soared…

Source: Bloomberg

As GLD holders soar…

To new all-time record highs…

Source: Bloomberg

Spot Gold is back to its most overbought levels of the last couple of years (neither previous time saw a notable decline, more of a sideways move)…

Source: Bloomberg

And Silver soared-erer…

Source: Bloomberg

Helped by RHers piling in (SLV is the 21st most propular stock on Robinhood today)

To its highest since August 2013…

Source: Bloomberg

Bitcoin was also bid back up near $11,000…

Source: Bloomberg

The highest level for the crypto since Sept 2019…

Source: Bloomberg

And Ethereum is surging even more…

Source: Bloomberg

Spiking to its highest sine June 2019…

Source: Bloomberg

Stocks were also higher on stimulus hopes (but note the massive outperformance of big tech as The Dow lagged)… Stocks were sinking into the European close then took off as soon as it closed…

Nasdaq has been up 7 of the last 8 Mondays.

Nasdaq surged back up to a somewhat key level (right before its massive squeeze higher last week)…

As FANG Stocks continued their rebound off Friday’s opening gap down…

Source: Bloomberg

TSLA took off in Ludicrous mode once again – erasing Friday’s losses…

The decoupling between Nasdaq and insider sentiment is dramatic to say the least…

Banks were mostly dumped today )GS outperformed)…

Source: Bloomberg

This could be a problem for China…

Source: Bloomberg

As the dollar was dumped today, so were bonds…

Source: Bloomberg

With 10Y yield pushing back above 60bps (up only 2bps though)_…

Source: Bloomberg

All cryptos are up since Friday…

Source: Bloomberg

The gold/silver ratio is tumbling as silver plays catch up (its lowest sicne Aug 2018)…

Source: Bloomberg

But the ratio has a long way to go (silver outperformance) to catch down to its historical average…

Big roundtrip in oil prices today as stimulus bill hopes picked up, bouncing off $40…

 

Finally, is Trump’s tumbling approval rating signaling more pain for the dollar to come?

Source: Bloomberg

And is the resurgence in global negative-yielding debt signaling more fun ahead for Bitcoin (and gold)?

Source: Bloomberg

As the collapse of real yields lifts precious metals…

Source: Bloomberg

Is the second wave over?

Source: Bloomberg

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

Durable good rise but still no V shaped recovery

(zerohedge)

Durables Goods Orders Jump In June But The “V” Is Missing

Durable Goods Orders rebounded strongly in May – as expected – but that rebound was expected to slow in preliminary June data, pouring cold water on the ‘soft’ survey data’s resurgence back to “normal”.

The flash June data beat expectations with a 7.3% MoM rise in headline orders (against +6.9% exp) against a downwardly revised 15.1% rise in May but year-over-year remains notably weaker…

Source: Bloomberg

The core (ex-Transports) number disappointed (+3.3% vs 3.6% exp) as auto production exploded higher in June…

Source: Bloomberg

If you build it – they better come or this is a major problem!

Additionally, non-defense aircraft new orders was down $10.3BN again due to Boeing:

Not quite the “V” that everyone has been calling for… “Hard” orders data not keeping pace with “soft” survey hope…

 

The question is, given the relapse in the reopenings, is this the best the rebound gets?

end

iii) Important USA Economic Stories

GOP reach agreement on a 1 trillion dollar relief pkg.  Pelosi pops her gasket

(zerohedge)

GOP Reach Agreement On COVID-19 Relief; $600 Unemployment Boost Becomes 70% ‘Wage Replacement’; Pelosi Pops Fuse

With the Trump Treasury sitting on $1.8 trillion and three months to spend it, the White House and Senate Republicans are set to introduce a $1 trillion spending bill on Monday which would be released in stages – angering Democrats who are pushing for an immediate, $3 trillion shotgun blast of stimulus.

Speaking with ABC‘s “This Week,” White House Chief of Staff Mark Meadows said “I see us being able to provide unemployment insurance, maybe a retention credit, to keep people from being displaced or brought back into the workplace, helping with our schools,” adding “we can negotiate on the rest of the bill in the weeks to come.

The Trump administration opposes an extension of a $600-a-week enhanced unemployment payment that expired this month, Mnuchin and Meadows said. Instead, White House officials favor a plan to reimburse an individual’s lost wages or salary by up to 70%, said Mnuchin and Meadows. –Newsday

House Speaker Nancy Pelosi (D-CA) popped a fuse at the GOP proposal, blaming Republicans for waiting too long to negotiate for more relief after House Democrats passed a fifth, $3 trillion relief bill which would have included immediate aid to state and local governments, expanded testing and contact tracing for COVID-19.

Appearing on CBS’s “Face the Nation,” Pelosi said that Republicans are “in disarray and that delay is causing suffering for America’s families. So we have been ready for two months and 10 days. I’ve been here all weekend hoping they had something to give us.”

Treasury Secretary Steven Mnuchin, meanwhile, says the White House is “prepared to act quickly.”

We bet they are.

Mnuchin added that unemployment benefits would be extended, while schools and universities would receive protection against “frivolous” lawsuits – part of overall GOP support for protections that would also include corporations.

“Within the trillion-dollar package, there’s certain things that have time frames that are a bigger priority, so we could look at doing an entire deal, we could also look at doing parts,” said Mnuchin, adding that he would push for a “technical fix” to unemployment insurance after many have criticized the $600 weekly benefit as being too high, and a disincentive to searching for a job.

The fix would ensure “that people don’t get paid more to stay home than they do to work, and we can move very quickly with the Democrats on these issues,” Mnuchin said.

He added: “The fair thing is to replace wages, and it just wouldn’t be fair to use taxpayer dollars to pay more people to sit home than they would get working and get a job.”

Pelosi said last week that Democrats would not accept a “piecemeal” approach to a deal. 

The Speaker on Sunday said it’s easier for the government to provide a $600 payment to the unemployed than to calculate what 70% of each worker’s salary was. –Newsday

“The reason we had $600 was its simplicity,” said Pelosi, adding “And figuring out 70% of somebody’s wages. People don’t all make a salary … They make wages and they sometimes have it vary. So why don’t we just keep it simple?

end

CORONAVIRUS UPDATE SUNDAY

Florida Confirms Another 12,200 COVID-19 Cases As Hospitals Overrun; Bolsonaro Tests Negative: Live Updates

Summary:

  • Florida reports another 12k+ cases
  • Bolsonaro tests negative
  • Global cases see new record spike
  • US reports 4th day of deaths; total nears 150k

* * *

Update (1120ET): In the latest sign that nothing has really changed in Florida – although it has been roughly three weeks since the state reported its last record tally of new cases, it notched its single-day record for deaths just two days ago, and the states COVID wards are as crowded as ever – the state reported another 12,199 new cases (+3%) on Saturday, bringing the statewide total to 414,511.

The daily total is north of the 7-day average of 2.7%.

The state reported another 126 deaths, pushing the state’s coronavirus-related resident death toll to 5,777.

To date, the Florida Department of Health has reported 2,921,866 negative tests, including 47,542 on Saturday. A total of 59,741 tests were run. The state’s hospitalizations climbed to 23,730, after 505 new hospitalizations, the 3rd time over 500.

In other news, weeks after testing positive, Brazilian President Jair Bolsonaro announced Saturday that he had finally tested negative.

* * *

It has been another disappointing week for coronavirus numbers out of the US. Although hospitalizations and new cases have, encouragingly, moved decidedly lower in some of the worst-hit Sun Belt states – Arizona is perhaps the best example – the region is now struggling with what appears to be the delayed wave of deaths that Dr. Fauci and other health experts had promised, while hospitalizations and new cases remain elevated.

However, if there is a silver lining in all of this, it’s that the outbreaks afflicting the Sun Belt states have so far proved much less deadly than what happened in New York.

The absurdly high level of fatalities in the Greater New York area has been linked to both the large number of unconfirmed cases (antibody surveillance has shown some neighborhoods in the Bronx have as much as 60% penetration) and a staggering failure of leadership from Gov Cuomo.

Cuomo’s office allowed thousands of deaths that could have been avoided by sending COVID-19 positive patients back to their long-term care facilities, leading to a wave of nursing home outbreaks that contributed to more than half of the deaths recorded in the state. For all the criticism the New York Times heaps on Florida Gov Ron DeSantis and Georgia Gov Brian Kemp for their unwillingness to take decisive action, Cuomo’s horrifying policy blunder is arguably the deadliest mistake made by a governor.

But we digress. As we await the latest round of daily tallies, it’s worth noting that the world reported a new record jump in new cases yesterday, as the daily tallies in Brazil, India and the US have climbed at a rapid clip. According to WorldoMeter, 289,028 new cases were reported around the world yesterday (remember, these data are typically reported with a 24-hour delay).

This brought the global case total to 15,931,445.

The world reported 6,199 deaths yesterday. The daily tally was well below the record numbers reported in mid-April, but the increase brought the 7-day average to its highest level since late April.

This brought the global death toll to 641,885.

Keep in mind, Worldometer’s numbers typically vary – sometimes by a modest margin – from the numbers reported by Reuters, the AP and Johns Hopkins. The latter of these has become the international standard, though many other tallies exist and are regularly cited by the English-language press around the world.

But all were pretty much in agreement on this: Yesterday, the US recorded more than 1,000 deaths for the fourth day in a row, pushing the 7-day average to its highest level since late April.

What’s more, the US reported 78,009 cases yesterday – a new single-day record, and the first daily tally north of 78k.

This brought the US tally to 4,248,327.

Death-wise, the US recorded 1,141 new deaths yesterday, to be exact.

Bringing the US death toll to 148,490.

As Trump pushes for children to return to school across the country in the fall, provoking understandable fears that this might spark a surge in deaths, it’s worth remembering that the virus’s propensity to infect and kill the most vulnerable patients has been substantially mitigated as health-care professionals have honed their techniques, and studies have shed more light on the ability of therapeutics like remdesivir to help patients with the most severe symptoms. Dexamethasone also comes to mind, as at least one high-quality study has shown the drug to be surprisingly effective in patients with severe symptoms. Hydroxychloroquine, a common anti-malarial drug that has been commonly used for decades, has been shown in a handful of studies to slow the disease’s advance during the early stages, though some studies examining the drug’s impact on seriously ill patients have shown undesirable side effects in a small number of patients.

END
No V shaped recovery in the uSA…businesses are failing at a staggering pace
(Michael Snyder)

The Numbers Tell Us The “Economic Recovery” Is Dead And Businesses Are Failing At A Staggering Pace

Authored by Michael Snyder via TheMostImportantNews.com,

Even though economic conditions were absolutely awful, during the month of June the mainstream media kept insisting that the U.S. economy was “recovering” and the stock market kept surging on every hint of good news.

But now the “economic recovery” narrative is completely dead, because the numbers clearly show that the U.S. economy is rapidly moving in the wrong direction.  On Thursday, the Labor Department announced that another 1.416 million Americans filed new claims for unemployment benefits last week.  Prior to this year, the all-time record for a single week was just 695,000, and so we are talking about a level of unemployment that is absolutely catastrophic.  But what is really alarming many analysts is that the number for last week was quite a bit higher than the number for the week before.

Many states are rolling out new restrictions as the number of confirmed COVID-19 cases continues to surge, and this is having a huge impact on economic activity.  For months I have been warning that fear of COVID-19 would prevent economic activity from returning to normal levels for the foreseeable future, and that is precisely what has happened.

Overall, more than 52 million Americans have filed new claims for unemployment benefits over the past 18 weeks, and that makes this the biggest spike in unemployment in U.S. history by a very wide margin.

In fact, this dwarfs all previous spikes by so much that the others are not even worth mentioning.

Of course it isn’t just the employment numbers that are depressingly bad.  According to Jefferies, in late June 19 percent of all U.S. small businesses were closed, but now that number has risen to 24.5 percent

As of Sunday, 24.5% of small businesses in the United States were closed, according to Jefferies. That is worse than late June, when only 19% were closed. Jefferies pointed to “particular weakness in COVID hot spots” and noted that small business employment had dropped to levels unseen since the end of May.

Just think about that number for a minute.

Nearly a quarter of all small businesses in the entire country are closed.

And the really bad news is that many of them will never end up reopening.

At the beginning of the pandemic, I received a lot of criticism for stating that many of the small businesses that were shutting down at that time would never open again, but over the long-term the numbers have shown that I was correct.

In fact, Yelp says that a whopping 60 percent of the restaurants that were initially listed as “temporarily closed” on their site are now classified as permanently closed…

It’s tough out there for restaurants and other small businesses.

Yelp’s Economic Average report out Wednesday shows exactly how tough: 60 percent of the 26,160 temporarily closed restaurants on the business review site as of July are now permanently shut. Temporary closures are dropping, and permanent shutdowns are increasing.

Fear of COVID-19 is going to cause a large portion of the population to continue to avoid restaurants for as long as this pandemic persists, and it is becoming clear that it is likely to persist for a long time to come.

We are going to lose so many small and independent places to eat.  Many of the big corporate chains that have very deep pockets will survive, at least for a while, but there is simply no replacing what small and independent restaurants mean to our communities.

Bars and clubs are being hit extremely hard as well.  According to Yelp, 44 percent of the bars and clubs on their site that were initially listed as “temporarily closed” have now been shut down on a permanent basis…

Bars and clubs are also closing forever at high rates: 44 percent (as of July) of 5,454 temporarily shuttered bars and other nightlife establishments are shut for good.

Other sectors of the economy are doing relatively better, but the overall outlook for small businesses in America is exceedingly bleak.

In New York City, it is being projected that one-third of all small businesses will never be able to open again…

As many as 76,000 small businesses in New York City – a third of the 230,000 citywide – may never reopen after forced to close during the COVID-19 lockdown, business leaders have warned.

The Partnership for New York City, a not-for-profit organization that connects business leaders with local government, predicted that 76,000 small businesses will never be able to reopen in a report produced by 14 consulting firms.

I know that number is hard to believe, but this is actually happening.

Our politicians want to encourage people “to go back to work”, but for millions upon millions of Americans the jobs that they once had are gone forever.

The resurgence of coronavirus infections is derailing the travel industry’s modest recovery. The number of air passengers processed through TSA security lines fell during the week ended July 20, compared with the prior week, according to Bank of America. This metric is down more than 70% from a year ago.

United (UAL) CEO Scott Kirby told CNBC on Wednesday that the airline doesn’t “expect to get anywhere close to normal until there’s a vaccine that’s been widely distributed to a large portion of the population.”

All of the numbers that I have shared in this article tell us that we are in an economic depression.

Many had hoped that this economic downturn would be short-lived and that a “V-shaped recovery” would commence once the coronavirus lockdowns were lifted.

But instead a resurgence of cases has caused new restrictions to be implemented, and economic activity is slowing down again.

The bottom line is that all of us need to get prepared to weather a long-term economic storm that is going to be incredibly painful.

The last recession was bad, but it isn’t even worth comparing to the times that we are entering now.  All of our lives are being turned upside down, and a lot of people are not going to be able to handle what comes next.

 END
LAS VEGAS
No recovery here: Las Vegas casinos are making another round of furloughs and layoffs
(zerohedge)

Las Vegas Casinos Are Making Another Round Of Brutal Furloughs And Layoffs

Re-opening? Not so fast.

At least that’s the sentiment in sin city, where casinos announced last week there would be another round of furloughs and potential permanent layoffs after the industry remains crippled from the Covid-19 shutdown.

Three of the strip’s major properties, including Wynn Resorts, Circus Circus and the Tropicana all made announcements last week that they would be cutting more staff, according to Fox 5 Las Vegas. This, of course, comes after a first round of layoffs and furloughs that took place after the country first shut down, months ago.

Wynn has notified some of its workers they would be placed on furlough this week. “Although we retained all of our people while we were closed, we now know how challenged business volumes in Las Vegas are and are staffing to the significantly reduced demand,” the casino said.

The company had paid all salaried, hourly and part time workers through May 31, for a total of 75 days of payroll continuance. More than 15,000 employees received payroll coverage, which even included distributed tips. Wynn had invested almost $250 million in payroll expenses during the closure, but can no longer do so.

In addition to the layoffs, some of its employees also face pay cuts. Pay reductions ranged from 5% to 20% based on staff members’ salaries. For those who make under $75,000, their salary was cut 5%. Furloughed employees will continue to receive health benefits through Oct. 31, the company said.

Circus Circus has said they are laying off some employees due to the loss of business incurred from the pandemic. 252 employees are set to be permanently terminated at the hotel, it said in a letter sent to the Nevada Department of Employment, Training and Rehabilitation.

The hotel’s official statement said: “Circus Circus Las Vegas has had to assess and make business decisions in order to effectively operate during these uncertain times. We hope that business volumes will recuperate sufficiently so that most of our employees can get back to work in the near future.”

Finally, the Tropicana furloughed a total of 26,000 employees, it said in a statement. A “number” of these employees are expected to return upon re-opening, but some will eventually become permanent layoffs.

“Based on the sudden and unforeseeable events in March, we were forced to furlough 26,000 of our team members in April. At the time, we were hopeful that we’d be able to call the employees back within a couple of months. However, while we have been able to reopen most of our properties on a limited basis, the continued social distancing requirements and uncertain business volumes means our properties will not be able to resume normal operations for the foreseeable future,” the casino concluded.

END
UNDER ARMOUR
This giant apparel operation received a “Wells Notice” as they must explain their questional accounting practices
(zerohedge)

Under Armour Shares Tumble After Kevin Plank Received SEC ‘Wells Notice’ 

Under Armour shares slid 4.7% Monday morning after the Baltimore-based apparel company released an 8k filing detailing how Kevin Plank, the Executive Chairman & Brand Chief, and David Bergman, the Chief Financial Officer, received a “Wells Notice” from the Securities and Exchange Commission (SEC) about the Company’s questionable accounting practices covering 3Q15 to 4Q16.

The Wells Notices relate to the Company’s disclosures covering the third quarter of 2015 through the period ending December 31, 2016, regarding the use of “pull forward” sales in connection with revenue during those quarters. A pull forward generally includes a customer sale that is executed earlier than originally planned. Specifically, the SEC Staff is focused on the Company’s disclosures regarding the use of pull forward sales in order to meet sales objectives. The SEC Staff has not alleged any revenue recognition or other violations of generally accepted accounting principles relating to that or any other period.

A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. The Wells Notices informed the Company and the Executives that the SEC Staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Company and each of the Executives that would allege certain violations of the federal securities laws.

The Company and the Executives maintain that their actions were appropriate and intend to pursue the Wells Notice process, which will include the opportunity to respond to the SEC Staff’s position, and also expect to engage in a dialogue with the SEC Staff to work toward a resolution of this matter. – Under Armour’s 8k filing 

In response to the Wells Notice announcement, shares of the company have slid 4.7% in pre-market Monday.

We first told readers in late 2019 the company was at the center of a federal investigation for its “revenue-recognition practices” to inflate sales.

 

h/t The Wall Street Journal 

Seems like Plank could be in trouble…

end

National Security Advisor Who Replaced John Bolton Tests Positive For COVID-19

Somewhere, John Bolton just breathed a sigh of relief.

Because Robert O’Brien, the longtime defense industry executive who succeeded Bolton as Trump’s fourth National Security Advisor, has reportedly tested positive for COVID-19, making him the highest ranking Trump admin official to test positive so far.

So far, a handful of Congressmen, and roughly a dozen or so Trump Campaign aids have tested positive for the virus. However, neither President Trump nor Vice President Mike Pence have ever tested positive. Trump even took a 2-week course of hydroxychloroquine at one point a month or so ago after his physician prescribed it to him for its preventative qualities.

end
BASEBALL
Doesn’t look good for baseball as 14 players on the Miami Marlin team tested positive for the COVID 19 virus
(zerohedge_

Marlins Cancel Monday’s Game As 14 Players, Staff Infected With COVID-19 Just Days After Season Kickoff

Just three days into the MLB’s shortened 2020 season, the Miami Marlins confirmed on Monday that 14 players and staff have tested positive for the coronavirus, forcing the cancellation of the team’s first home game.

The team had been scheduled to face off against the Baltimore Orioles on Monday, but that game has now been cancelled as the Marlins remain in Philadelphia following their successful weekend series against the Phillies.

The Marlins and Orioles are scheduled to play a four-game series this week. It’s unclear right now whether the remaining games will also be scrapped.

ESPN reported that a total of at least 14 players and staff had tested positive, with eight more positives Monday after three players reportedly received word of positive tests Sunday morning and a fourth had tested positive Friday.

Pitcher Jose Urena was scratched from his scheduled start Sunday and placed on the injured list for undisclosed reasons. Per MLB guidelines, the Marlins have not revealed the names of players who had tested positive, but, according to reports, first baseman Garrett Cooper and outfielder Harold Ramirez were the other three.

Catcher Jorge Alfaro had previously tested positive and was placed on the injured list on Friday.

Earlier this month, MLB Commissioner Rob Manfred was asked on “The Dan Patrick Show” what it might take to cancel the already shortened 60-game season. Manfred said an inability to stem infections could force the league to rethink the season from a safety standpoint, as WaPo reminds us.

“I think the way that I think about it, Dan, is in the vein of competitive integrity, in a 60-game season,” Manfred said. “If we have a team or two that’s really decimated with a number of people who had the virus and can’t play for any significant period of time, it could have a real impact on the competition and we’d have to think think very, very hard about what we’re doing.”

Fans are now worried that Florida’s widely criticized virus response might now cost fans the 2020 season.

Rather than fly home Sunday following their win over the Phillies, the Marlins originally planned to stay overnight in Philadelphia and fly home Monday morning. However, the players who have tested positive will remain under quarantine in Philly.

end

NJ Gym Owners Accuse Gov Of “Flexing His Little Tyrant Muscles” After Being Arrested For Contempt

The owners of Atilis Gym, a gym in Bellmawr, NJ that was ordered by a New Jersey judge to close immediately, have been arrested on charges of contempt of court after refusing to comply.

Since it first defied the state and decided to reopen 2 months ago, the gym has become a local fixation, attracting protesters sympathetic with its cause. The report below, published earlier today, includes footage from some rallies that have been held at the gym.

Gym owners Ian Smith, 33, of Delanco Township, and Frank Trumbetti, 51, of Williamstown were charged with contempt of court, along with violating a disaster control act, according to the Camden County Prosecutor’s Office.

The owners of Atilis Gym in Bellmawr were arrested and released early Monday morning after continuing to operate their business despite a judge issuing a contempt order against them on Friday, according to Acting Camden County Prosecutor Jill S. Mayer.

Ian Smith, 33, of Delanco Township, and Frank Trumbetti, 51, of Williamstown, are charged with one count of fourth-degree Contempt, one count of Obstruction, and one count of Violation of a Disaster Control Act, both disorderly persons summons.

On July 24, the Honorable Judge Robert T. Lougy, issued a court order for Trumbetti and Smith to vacate the gym and cease operations.

From July 24 through July 27, a number of individuals were observed entered and using the gym, a direct violation of the court order.

Trumbetti and Smith were transported to the Bellmawr Police Department where they were charged and released.

All persons charged with crimes are presumed innocent until proven guilty in a court of law.

The gym owners have become a cause celebre in the movement to oppose lockdowns.

In other local news, dozens of New Jersey lifeguards have now tested positive for COVID-19, as public health officials worry about an outbreak focused around some of the state’s beaches. Inspired in part by this string of infections, states from Connecticut to Rhode Island have ordered beaches to close to out-of-state residents, according to ABC News.

More than two dozen lifeguards from two New Jersey beach towns have tested positive for the coronavirus after having been together socially, authorities said.

Officials said the lifeguards are from Harvey Cedars and Surf City, neighboring boroughs on Long Beach Island.

Mayor Jonathan Oldham of Harvey Cedars said island health officials alerted the borough to the cluster Thursday and the lifeguards were being quarantined until they are cleared by doctors. Long Beach Island’s health director said the guards were apparently together at two “social gatherings” earlier this month.

Harvey Cedars said Saturday that 17 lifeguards, all of whom had “attended a party in Surf City,” had tested positive for COVID-19. The island’s health director earlier said a dozen Surf City lifeguards had tested positive.

Harvey Cedars said on its website that it has 73 lifeguards and therefore “our beaches will remain fully staffed with all safety protocols in place.” Surf City said its beaches “will remain protected from 10 a.m. to 5 p.m. daily” but “adjustments may be made from day to day to ensure the safety of all patrons and guards.”

New Jersey officials earlier announced more than 500 new positive COVID-19 cases and an additional 11 deaths confirmed as associated with the virus, bringing the total number of deaths associated with the virus in the state to 13,867.

In a post on the gym’s Facebook page published Monday morning, Smith attacked NJ Gov Phil Murphy for “flexing his little tyrant muscles.”

Despite the life guard infections, Murphy has continued to allow all protest-related activities to continue without any restrictions, even joining the marchers in person on occasion.

Maybe they can hook the governor up with a membership when all this is said and done?

 

iv) Swamp commentaries)

“I Need To Buy A Firearm”: Radio Host Who Defended “Peaceful” Protesters Has Apartment Destroyed By Rioters

Today in liberal hypocrisy…

Seattle radio host and self proclaimed “Cat Dad” Paul Gallant had taken to Twitter back in June to respond to President Trump’s handling of the protesters in Seattle. Responding to a Tweet where the President was critical of the Seattle mayor, Gallant responded “Chill dawg” before saying he saw “no burning, pillaging or deaths” in his city.

Today, Paul has taken to Twitter to sing another tune: “I feel like I need to buy a firearm”.

Why the change in attitude? Perhaps it was because rioters in his city trashed and looted the downstairs to his apartment complex. Gallant arrived back at his apartment this weekend to find it vandalized and looted.

“I feel like I need to buy a firearm, because clearly this is going to keep happening. Enough is enough,” he wrote in a subsequent Tweet. “Really angry right now,” he continued.

“Great job assholes,” he wrote in a subsequent Tweet.

Naturally, Gallant, who once thought he had “dunked” on President Trump, spent most of the weekend being dunked on by the internet for his own hypocrisy.

Recall, this isn’t the first we’ve seen of hypocrisy in Seattle. The mayor dismantled the city’s anarchist CHAZ/CHOP district not after six shootings and two teenage deaths, as hedge fund manager and author James Altucher notes – but rather, after protesters threatened to take over Mayor Jenny Durkan’s 5,000 sqft., $7.6 million house.

And to Gallant, we only have one thing to say: chill dawg.

END

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

@ArthurSchwartz: Adam Schiff runs interference for the Chinese Communist Party, says that US efforts to stop Chinese spying is an “escalation [“all about politics”] https://twitter.com/RichardGrenell/status/1286714217731461120

Phil Valentine @ValentineShow: OMG! We’ve hit 4 million cases of coronavirus!!!! Only 56 million to go until we equal Swine flu in 2009.

The COVID Tracking Project @COVID19Tracking on Friday: Our daily update is published. It was far and away the biggest testing day on record, with 930k results reported. States also reported the second highest number of cases ever (75k) and, for the fourth day in a row, more than 1,000 deaths (1,178).

The huge testing number appears to be due—in part—to California, Georgia, and other states releasing backlogged results. CA and GA both reported at least 20k more results today than they did yesterday, for instance. CA alone reported 137k test results today…

    Yesterday’s problems with COVID-19 hospitalization data continue today in CA and TX. Both states still warn that their hospitalization data is incomplete due to the changeover to HHS systems. We’ve carried over their hosp. data from Wednesday, before the warnings went up.  Several other states also posted substantial drops in hospitalization figures today, without explanation. These drops might be the same changeover-related problems we’ve seen all week, or they might be real declines, so we’ve reported those numbers as published by states.   https://twitter.com/COVID19Tracking/status/1286806902895259654

C.D.C. Calls on Schools to Reopen, Downplaying Health Risks

https://www.nytimes.com/2020/07/24/health/cdc-schools-coronavirus.html

Nordic Study Suggests Open Schools Don’t Spread Virus Much

There was no measurable difference in the number of coronavirus cases among children in Sweden, where schools were left open, compared with neighboring Finland, where schools were shut, according to the findings…   https://www.bloomberg.com/news/articles/2020-07-19/covid-s-spread-in-schools-is-questioned-in-latest-nordic-study

Icelandic cod enzyme product shows promise in Covid-19 fight [The product is now hard to procure.]

Preliminary tests have shown that Icelandic mouth spray PreCold will deactivate about 98.3% of the virus that causes Covid-19. The spray has been available in Iceland for five years and is intended to be used when people feel the first symptoms of a cold. The spray creates a protective film in the pharynx where the viruses that cause the common cold tend to be localized and begin to replicate. The protective film, using enzymes extracted from cod, weakens viruses so they have a harder time replicating and making their host sick…   https://icelandmonitor.mbl.is/news/news/2020/07/22/icelandic_cod_enzyme_product_shows_promise_in_covid/

A majority of Americans are currently willing to eat at a restaurant (54%), stay in a hotel (51%), go to work (78%), go grocery shopping (94%), get a haircut (67%), attend church (51%), and go to a shopping mall (51%), per new @ABC News/Ipsos pollhttps://abcn.ws/32SAh4F

Dr. David Samadi @drdavidsamadi: Deaths per million caused by the CCP Virus as of July 23 2020:

  1. Belgium 858.69, 2, UK 684.34, 3, Spain 608.38, 4. Italy 580.53, 5. Sweden 556.51, 6. Chile 463.29,
  2. France 449, 8. USA 437.06 Do not be fooled when media says America is handling #COVID19 the worst in the world.

Dr. Birx: COVID-19 may be starting to slow down in certain states   https://trib.al/6Gz76Y2

@AlexBerenson: Florida: 223,000 positive SARSCoV2 tests in three weeks – 10,000 a day – and ~NO CHANGE in hospitalizations or ICU occupancy statewide. You say epidemic, I say a lot of people getting colds, let’s call the whole thing off. (We’ll see if Florida has any excess mortality in July.)

The questions every American should be asking about indefinite mask mandates 

The trope of ‘just shut up and wear a mask’ is not science, ordered liberty, or constitutional governance. It’s what they do in North Korea… We need real debate on the effectiveness of masks… We are no longer 24 hours into an emergency. We are four months into this virus, and it’s time to function like the representative republic….

  • Why did the CDC, World Health Organization, and such luminaries as Fauci and Surgeon General Jerome Adams so emphatically dismiss the effectiveness of masks, then flip 180 degrees…
  • How can mask-wearing work when everyone just stores them in their pockets to collect bacteria, as our government officials predicted from day one?…
  • The virus is now spreading in Japan, Hong Kong, and the Philippines, which have near universal mask-wearing. At what point does the mask cult have to provide evidence of the effectiveness of these unconstitutional mandates…?…
  • What are the known side effects to one’s health after wearing these masks for hours on end in the heat, especially for children in school? Does long-term mask-wearing lower oxygen levels and compromise our immune systems?…

https://www.conservativereview.com/news/horowitz-exposing-maskerade-questions-every-american-asking-indefinite-mask-mandates/

The Mnuchin Follies – WSJ’s Kim Strassel

With his help, Pelosi keeps outmaneuvering Republican senators on coronavirus bills.

      The concerted Republican effort to fritter away both policy and principle in these pandemic times continued apace this week—indeed, it leapt forward. Who needs Nancy Pelosi demanding more spending, more unemployment benefits and more union payoffs when Steven Mnuchin and Mitch McConnell will do it for her?… Mnuchin final week sucker punched GOP senators by signaling White Home openness to provisions they’d already foresworn… The thriller is who within the White Home retains deputizing Mr. Mnuchin as lead congressional envoy… His fickleness has moreover discouraged the Senate GOP from drawing traces on this debate, for worry of being undercut by Mr. Mnuchin—and inevitably Donald Trump…  https://www.wsj.com/articles/the-mnuchin-follies-11595545625

Trump signs historic executive orders to lower prescription drug prices

One of the executive orders would provide discounted insulin and EpiPens to low-income Americans Another order would allow “states, wholesalers and pharmacies” to safely import prescription drugs from Canada… A third order seeks to… pass on the “billions” that distributors receive on drugs from pharmaceutical companies as a way to reduce the price for patients…

    Trump explained that the fourth executive order, if implemented, would target the issue of how the exact same drugs cost more in the U.S. compared to other countries such as Germany

    Trump announced that top executives from pharmaceutical companies will meet with him next week at the White House about drug pricing issues.  “If these talks are successful, we might not need to implement the fourth executive order, which is a very tough order for them,” he said.

https://justthenews.com/government/white-house/unrigging-system-trump-signs-executive-orders-aimed-lowering-prescription

WaPo: McConnell says stimulus deal could take ‘weeks,’ which would put millions of people with expiring jobless aid in limbo  https://www.washingtonpost.com/business/2020/07/24/unemployment-benefits-congress-coronavirus/

Coronavirus Phase 4 stimulus could be done piecemeal, GOP package coming Monday: Mnuchin

https://www.foxbusiness.com/money/mnuchin-coronavirus-phase-4-stimulus-bill

Today – The FOMC meets on Tuesday and Wednesday.  No change in policy or rates is expected.  This week is the peak of Q2 earnings season.  Gold is in the spotlight.  Have neophyte traders found gold?

Fox News’ Chris Wallace: “In our interview last week with President Trump, he questioned whether his opponent Joe Biden could handle a similar encounter. Well, we asked the Biden campaign for an interview and they said the former VP was not available. We’ll keep asking every week.”

 

@realDonaldTrump: The Lamestream Media, including @FoxNews, which has really checked out, is refusing to show what is REALLY going on in Portland, Seattle, and other places. They want the American public to believe that these are just some wonderful protesters, not radical left ANARCHISTS!

 

ABC News @ABC: Protesters in California set fire to a courthouse, damaged a police station and assaulted officers after a peaceful demonstration intensified [This is NOT a parody!]

GOP Rep @RepAndyBiggsAZ: These are rioters, exhibiting criminal behavior – NOT protestors.

 

@MrAndyNgo: Not only are some rioters pretending to be press, some also pretend to be moms, dads, patriots & more. It’s propaganda for media who then describe them as such without bothering to verify if the claims are even true. All it takes to join one of these blocs is a colored t-shirt.

 

@TomFitton: The communists are trying to kill and injure law enforcement in Portland. And much of the media and political Establishment are on the side of these insurrectionists.

 

WaPo: Protests explode across the country; police declare riots in Seattle, Portland

https://www.washingtonpost.com/nation/2020/07/25/seattle-police-declare-riot-renewed-black-lives-matter-protests/

 

Radio host mocked Trump by claiming Seattle is peaceful, then rioters torched his apartment building – I feel like I need to buy a firearm, because clearly this is going to keep happening. Enough is enough,” Gallant furiously typed.https://t.co/Kense4FBZm

 

Dem Sen Candidate for KY McGrath makes campaign stop in Paducah

What’s happening in Portland is peaceful protesting, and unfortunately we have federal agents sent in that, from what I can tell, you know, are tear gassing peaceful protesters,” McGrath said, “Protests should always be peaceful and if there is any, I certainly do not condone any kind of destruction of property or anything like that.”…

https://www.wpsdlocal6.com/news/mcgrath-makes-campaign-stop-in-paducah/article_a6f0072e-ce0a-11ea-8ec4-7336c1c021d5.html

 

Americans Outraged After Photo of Dr. Fauci Emerges Not Social Distancing With Mask Around His Chin – Looks like Dr. Fauci practices the “mask for thee, but not for me” philosophy

[At Yankee-Nationals game in DC]https://t.co/NY6mOG3WVg

 

@JordanSchachtel: Fauci flouted social distancing and masks on the same day that DC made it *illegal* to do so and imposed a $1,000 fine for violators of the edict.

 

@AlexBerenson: And there’s Dr. Anthony Fauci showing us all he knows exactly how well masks work! Thanks for the lesson, doc

 

NY Gov Cuomo got caught clad-handing people without wearing a face mask.

 

Fox’s @JaniceDean: Mr. wear your mask [Cuomo] not wearing a mask in Georgiahttps://t.co/MGPS0ucQNf

 

Seattle Police Chief Warns City that Cops Are Unable to Protect Property from Antifa and BLM Riots Thanks to City Council Barring Crowd Control Tools

As City Council’s legislation goes into effect, it will create even more dangerous circumstances for our officers to intervene using what they have left – riot shields and riot batons… For these reasons, SPD will have an adjusted deployment in response to any demonstrations this weekend. The Council legislation gives officers no ability to safely intercede to preserve property in the midst of a large, violent crowd…   

https://thegatewaypundit.com/2020/07/seattle-police-chief-warns-city-cops-unable-protect-property-antifa-blm-riots-thanks-city-council-barring-crowd-control-tools/

 

Chicago protesters rally outside mayor’s home to demand defunding of police

https://nypost.com/2020/07/24/hundreds-protest-outside-chicago-mayor-lori-lightfoots-home/

 

@CWBChicago: Bond court — Judge Charles Beach notes that he personally doesn’t like the Illinois felony of armed violence because, Beach says, it merely means that the offender had a gun and drugs at the same time. He then says a man charged with armed violence can go home for $500. #Chicago

 

In Chicago, a Steep Rise in Suicide among Black People

As of July 24, the Cook County Medical Examiner’s Office had recorded 57 deaths of Black men, women and children from suicide this year. That compares to 56 — which was a nine-year low — for all of 2019.

https://www.thetrace.org/2020/07/in-chicago-a-steep-rise-in-suicide-among-black-people/

 

@nedryun: Fiona Hill, who is tight with Bolton, who was on Trump’s NSC, who testified at the absurd Trump impeachment hearings, co-authored a paper at Brookings Institute with the primary source of information for the Steele Dossier. What a koinkydink. . . Or not.

 

More willful blindness by the media on spying by Obama administration – Jonathan Turley

What is astonishing is that the media has steadfastly refused to see what should be one of the biggest stories in decades: an administration’s targeting of an opposing party’s presidential campaign based on false and possibly criminally falsified evidence. The media endlessly covered former Obama administration officials ridiculing Trump’s suggestions of spying on his campaign or that the Russia investigation was improperly conducted…

https://thehill.com/opinion/white-house/509002-more-willful-blindness-by-the-media-on-spying-by-obama-administration

 

Biden organizers say campaign is ‘suppressing the Hispanic vote’ in Florida, mistreating staff

A group of 94 field organizers for… Joe Biden’s presidential campaign sent a letter to the state Democratic Party claiming the Biden campaign is “suppressing the Hispanic vote” in Central Florida and mistreating staff…  https://thehill.com/homenews/campaign/509039-internal-letter-says-biden-campaign-is-suppressing-the-hispanic-vote-in

 

As U.S. debt rises, Biden’s spending proposals near $10 trillion – Biden’s plans include massive spending proposals on climate change, healthcare, childcare, and eldercare.

https://justthenews.com/politics-policy/elections/bidens-spending-proposals-could-top-10-trillion-draws-ire-trump-campaign

 

David Bossie: Trump vs. Biden polls – here’s what you need to keep in mind

In the age of President Trump, getting accurate data is becoming almost impossible. After all, if you vote for Trump, tell a pollster you’re voting for Trump or show support for the president on social media, you might be attacked as a racist or perhaps even fired from your job, as a teacher in Michigan alleged recently… it’s quite obvious that if someone was afraid to tell a pollster about their intention to vote for Trump for fear of retribution in 2016that fear has grown exponentially over the past four years

https://www.foxnews.com/opinion/trump-vs-biden-polls-accuracy-bias-david-bossie?s=09

 

@WayneDupreeShow: A&E is paying dearly for going “woke” and “anti-cop” and canceling LIVE PD..they’ve now officially lost HALF of their viewers. Good. They deserve it. https://t.co/71GDvaGWbx

 

@ClayTravis: Sports leagues are making a huge mistake trying to make a vocal minority on social media happy by turning their games into political statements. Most people watch sports to escape real life, now more than ever. This isn’t going to go well for them.

 

We are old enough to remember that when Tim Tebow ‘took a knee’ to pray to God after touchdowns or wins, the MSM, NFL and some players excoriated him for displaying ‘divisive’ and personal beliefs.

 

@DailyCaller: Rep. Louie Gohmert introduces resolution to ban Democratic Party:

Any political organization or party that has ever held a public position that supported slavery or the Confederacy shall either change its name or barred from participation in the House.”

https://twitter.com/DailyCaller/status/1286418508939694081

 

@TheBabylonBee: ‘Trump Might Not Accept the Results of the 2020 Election,’ Says Movement That Still Hasn’t Accepted Results of 2016 Election   https://t.co/G0zMQMSU4B

END

Let us close out today with this offering courtesy of Greg Hunter and Bill Holter

(Greg Hunter/Bill Holter)

“All Roads Lead To Gold” In A Credit Implosion; Holter

Via Greg Hunter’s USAWatchdog.com,

Financial writer and precious metals expert Bill Holter says, “Gold is like a tractor in first gear pulling up a hill,” as it touches all-time highs once again.

Holter thinks the “gold tractor” is going to be shifting up a few gears in the not-so-distant future.  Holter, who has been dubbed the new “Mr. Gold” by the reigning “Mr. Gold,” Jim Sinclair, explains,

There is no rush like a gold rush.  The reason being is you get momentum followers.  You get people who are greedy who want to make money.  Then you have the fear trade, and the fear trade is probably the most powerful emotion.

What you are seeing around the world is big money understands we have a credit implosion coming, which is going to take the currencies with it.

Where do you hide?  The place to hide is in gold and silver.”

As much as Holter likes gold, he says silver is way undervalued compared to gold.  Holter has long said when silver prices takes off, “it will be like gold on steroids.”  Holter says,

“The reason silver is undervalued is it comes out of the earth at 10 (ounces of silver) to 1(ounce of gold).  That’s God’s ratio.  Man’s ratio had gotten to 120 to 1.  I can tell you which ratio is right and which ratio is wrong.”  Holter thinks God’s ratio is the correct one.

Holter says, “All roads lead to gold” especially in today’s economic environment.  Holter explains,

Gold is the arch enemy of fiat currencies. . . . You can just use your common sense and see we have a big, big problem out there, and capital is going to need a place to hide.  Gold and silver are the only money that do not have any liability.  Gold and silver are proof that labor, capital and equipment were used to create that.  It already has been done, whereas everything else is a future promise, and promises are made to be broken . . . . .

The central banks must either inflate or die. . . . The central banks have to reflate or inflate, whatever you want to call it; otherwise, the entire credit system comes down.  If they don’t inflate and they let the credit system come down, then you have a massive deflationary event where credit implodes.  All the currencies themselves are credit.  So, if the credit system comes down, it also takes the currencies with it. . . .

With all the debt out there, the central banks must hyper-inflate.  Where’s the best place to be in a hyperinflation?  Gold and silver.  If they don’t hyper-inflate, and they let the credit markets completely collapse and everything defaults, what’s the best place to hide?  Gold and silver because they have no liability.  They are pure money.  That’s why all roads lead to gold.”

Holter goes on to say, “You could have both.  We could have a credit implosion, and the Fed creates $100 trillion and puts it into the system.  That’s the only response they have if things get out of hand. . . .  It’s inflate or die.”

In closing, Holter warns people to get ready and buy physical assets.  This include food and water and anything else you might need.  Holter predicts,

“You are going to lose purchasing power.  Just look at history.  Every time a currency has failed, the population loses its purchasing power.  Just because this is the United States, it doesn’t mean we can break the laws of Mother Nature.  We are going to face a huge drop in purchasing power and a huge drop in our standard of living.  We have said this for years and have been trolled for years, and now here we are.”

Holter also points out the legendary gold investor Jim Sinclair is the original Mr. Gold, and Holter says, “Jim is Mr. Gold emeritus.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with the new “Mr. Gold” Bill Holter of JSMineset.com.

END

DONATE

Click here if you wish to send a donation. I sincerely appreciate it as this site takes a lot of preparation.

Well that is all for today

I will see you TUESDAY 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: