Sept 5/GLD constant/SLV constant/Comex dealer gold constant/gold and silver raid

Good evening Ladies and Gentlemen:

I am so sorry for being late as my computer crashed and I finally got it going now.

Gold closed down  $22.10 to $1389.90. (comex closing time ).  Silver was also down $1.01 to $23.37

In the access market today at 5:15 pm tonight here are the final  prices:

gold: $1391.20
silver:  $23.47
At the Comex, the open interest in silver rose marginally  by 529  contracts to 115,644 . The fall in OI in silver must be quite alarming to CME officials as investors shy away from this crooked paper medium. Soon there will be nobody left to trade with.

The open interest on the entire gold comex contracts rose  by 8864 contracts to 388,584
Tonight, the Comex registered or dealer inventory of gold remains constant. It is now well below the 1 million oz mark, at 701,079.011 oz or 21.806 tonnes . With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the comex (dealer and customer)  tonight rests just above the 7 million oz barrier resting at 7.025 million oz or 218.52 tonnes.
JPMorgan’s customer inventory remains constant  tonight to 213,638.113  oz or 6.645 tonnes.  It’s dealer inventory remains at  220,463.65 oz or 6.857 tonnes.
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan)  in its Comex gold dealer account again falls slightly in gold inventory tonight and its resting inventory is  17.318 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account.

The GLD  reported no loss or gain  in its inventory tonight with a  reading of 919.23  tonnes of gold.  We had no gain or loss  in the silver inventory at the SLV and thus  the reading of the SLV inventory lowers to  338.795 million oz.

Today, all GOFO numbers are in the positive:

Here are today’s readings with Tuesday’s comparison:  GOFO slightly greater negativity:

One month: _+.00000%   ( vs Tuesday’s +.00833%

Two month:  +.012000%     vs Tuesday’s +.01667%
Three Months: +.024000%   vs Tuesday’s +.02833%
Six months:  +.05800%     vs Tuesday’s    +.0600%)

On the physical side of things, we have one good conversations with  Eric King and Kingworld news  with Bill Kaye.

On the paper side of things, we catch up with events inside Syria which will no doubt cause gold to skyrocket in the days ahead.
Bill Holter presents one paper that I know you will enjoy.

We will provide these and other stories but first…

Let us now head over to the comex and assess trading over there today.
Here are the details:
The total gold comex open interest rose today by a rather large 8866 contracts from 379,718 up to 388,484 corresponding to a rise in price of gold to the tune of $20.90 on Tuesday. We are now in the non active delivery month for gold is September and here the OI rose by 14 contracts to 222. We had 20 delivery notices filed on Tuesday so we gained 34 contracts or  3400 oz of additional gold will  stand for delivery in September. The next active delivery month is October and here the OI fell by 311 contracts down to 23,196. The biggest of all delivery months is the  December contract month.   The December OI rose by 8516 contracts from 225,709 up to 234,225. The estimated volume today was fair at 136,416 contracts. The confirmed volume on Tuesday was excellent at 216,322.
The total silver Comex OI rose slightly by 649 contracts today.  The total OI now rests tonight at 115,644 contracts. We are now in the big delivery month of  September and here the OI fell by 649 contracts down to 521. The big December contract saw its OI rise 756 contracts up to 83,245. The estimated volume today was good coming in at 45,049 contracts.  The confirmed volume yesterday was excellent  at 73,452.

Comex gold/September contract month
Sept 4.2013   standings for September contract month
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
 nil
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
771.60 (Brinks)
No of oz served (contracts) today
 21 ( 2100  oz)
No of oz to be served (notices)
201 (20,100)
Total monthly oz gold served (contracts) so far this month
41  (4100)
Total accumulative withdrawal of gold from the Dealers inventory this month
Total accumulative withdrawal of gold from the Customer inventory this month
20,211.513

We have small activity in the Comex gold vaults today.

The dealer had  0 deposits  and 0 dealer withdrawals today

We had 1 customer deposits today.

i) into Brinks:  771.60 oz

total customer deposits: 771.60  oz

we had 0 customer withdrawals

Total Customer withdrawals: nil   oz

Today we had zero adjustments.

Thus tonight   with respect  to JPMorgan gold inventory here is JPMorgan’s Wednesday night inventory :

JPM dealer inventory remains constant tonight at: 220,463.65 oz or 6.85 tonnes

JPM customer inventory remains constant tonight to: 213,638.113 oz  or 6.645 tonnes

we will shortly see other inventory leave JPMorgan customer account as they settle their issuance.

Today, 21 notices were issued from  JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 21 contracts of which 0 notices were stopped (received) by JPMorgan dealer ( house account) and 0 notices stopped by JPMorgan customer account.

The total dealer comex gold remains constant  tonight  at  701,079.011 oz or 21.806 tonnes of gold . The total of all comex gold (dealer and customer) rises slightly tonight  to  7,025,598 oz or  218.52 tonnes.
Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our  3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory remains constant  tonight  to  an extremely low  17.318 tonnes.

i) Scotia:  183,413.6444 oz or 5.704 tonnes
ii) HSBC: 152,953.770 oz or  4.757 tonnes
iii) JPMorgan:  220,463.65 oz or 6.857 tonnes

total: 17.318 tonnes

Brinks dealer account which did have  the lions share of the dealer gold saw its inventory level remain constant  tonight at 129,679.910 oz or 4.03 tonnes.  A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Today we had 21 notices served upon our longs for 2,100  oz of gold. In order to calculate what will  standing for delivery in September, I take the total number of notices served  (41) x 100 oz per contract to give us 4,100 oz served to which I add the OI for Sept (222)  minus today’s delivery notices at  (21)  to give us 201 contracts or  20,100 oz .  The total is :  24,200 oz of gold standing

Thus  we have the following gold ounces standing for gold in September

41 notices x 100 oz per contracts already served or 4100 oz  + (222 OI  served -21 OI notices)x 100 oz=   24,200 oz standing.
or (.7527 tonnes).

we gained 34 contracts or an additional 3400 oz of gold will stand in the Sept delivery month.

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold remains tonight at  a very dangerously low  level of only 21.806 tonnes

ii)  a) JPMorgan’s customer inventory remains at  213,638.113  oz but that will lower once delivery notices are served upon this inventory.

ii  b)  JPMorgan’s dealer account remains constant at 220,463.65 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.318 tonnes of gold left in their dealer account.(JPMorgan, HSBC,Scotia)

end

now let us head over and see what is new with silver:

Silver:
Sept 4/2013:
Opening for the September contract month
Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 785,322.265 oz  (Delaware,Scotia CNT)
Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory 611,372.53 (Brinks)
No of oz served (contracts) 15  ( 75,000 oz)
No of oz to be served (notices) 506  (2,530,000)
Total monthly oz silver served (contracts)  2318  (11,590,000)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal of silver from the Customer inventory this month 4,529,898.6
Today, we  had good activity  inside the silver vaults.
 we had 0 dealer deposits and 0  dealer withdrawals.

We had 1 customer deposits:

Into Brinks:  611,372.53 oz

total customer deposit: 611,372.53   oz

we had 3 customer withdrawals:

i) Out of Scotia;  600,000.10 oz

ii) Out of Delaware:  14,198.545 oz

iii) Out of CNT:  171,123.62 oz

total customer withdrawal : 785,322.265 oz

we had 1   adjustments  today

Out of the HSBC vault:  420,023.84 oz was adjusted out of the dealer and this landed back into the customer account at HSBC.

Thus we have the following:

Registered (dealer) silver   :  42.839 million oz
total of all silver:  164.175 million oz.
The CME reported that we had 15 notices filed for 75,000 oz today
To calculate what will stand for this non active delivery month of August, I take the number of contracts served thus far this month at 2318  x 5,000 oz per contract = 11,590,000 oz to which we add the difference between the Sept OI (521)  and notices already delivered upon  (15)  =  506 contracts or 2,530,000 oz to give us a total of 14, 120,000 oz standing.
In summary:
2318 contracts  x 5000 oz per contract (served) or 11,590,000 oz  +( 521 – 15) = 506 contracts still to be served upon ( 2,530,000 oz) or a total standing of 14,120,000 oz
we lost 7 contracts or 35,000 oz of silver will not stand for delivery.
end
The two ETF’s that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.


And now the Gold inventory at the GLD:
 
 
Sept 4.2013:  no change
 

Tonnes919.23

Ounces29,554,097.74

Value US$41.061  billion.

 
 
Sept 3/2013: a total of 1.8 tonnes of gold was lost from the GLD
 
 

Tonnes919.23

Ounces29,554,097.74

Value US$41.343  billion




August 30.2013:  no change.


Tonnes921.03

Ounces29,612,040.73

Value US$41.285  billion



August 29.2013:  no change

Tonnes921.03

Ounces29,612,040.73

Value US$41,670.  billion




August 28.2013:  exactly the same as yesterday/no gain or loss

Tonnes921.03

Ounces29,612,040.73

Value US$42.0190





August 27.2013: we gained exactly 1 tonne of gold.


Tonnes921.03

Ounces29,612,040.73

Value US$42.012  billion






August 26/2013:  no gain or loss in gold inventory


Tonnes920.13

Ounces29,583,066.87

Value US$40.736  billion













August 24.2013: we gained 6.61 tonnes over the past two days.

Tonnes920.13

Ounces29,583,066.87

Value US$40.737  billion





August 21.2013:  we lost a tiny .6 tonnes of gold at the GLD

Tonnes913.52

Ounces29,370,584.75

Value US$40.020  billion





August: 20: 2013:  we gained 1.8 tonnes of gold into the GLD

Tonnes914.12

Ounces29,389,901.67

Value US$40,325  billion








August 19.2013: we lost 3.00 tonnes of gold at the GLD today.

Tonnes912.32

Ounces29,331,950.16

Value US$40,026  billion



August 16.2013: we had a large gain of 2.4 tonnes of gold into the GLD

Tonnes915.32

Ounces29,428,536.91

Value US$40.285   billion







August 15.2013: a small drop of .31 tonnes

Tonnes912.92

Ounces29,351,264.91

Value US$39.020 billion


August 14.2013:  we gained 2.1 tonnes of gold into the GLD vaults.

Tonnes913.23

Ounces29,361,356.37

Value US$38.925  billion


 
Today, the 4th of August,  we had no gain in  gold inventory  at the GLD vaults. I can now safely say that the GLD bleeding of gold has stopped and no doubt all of their real physical supply has moved to eastern shores.

The registered  vaults at the GLD will eventually become a crime scene as real physical gold  departs for eastern shores leaving behind paper obligations to the remaining shareholders.   There is no doubt in my mind that GLD has nowhere near the gold that say they have and this will eventually lead to the default at the LBMA and then onto the comex in a heartbeat  (same banks)

As a reminder the total comex gold had inventories of around 11 million oz in 2011. Today the total comex gold rises to   7.025 million oz  (218.52 tonnes)

GLD gold:  919.23 tonnes.

end

And now for silver:

Sept 4.2013:  no change in inventory
Inception Date 4/21/2006
Ounces of Silver in Trust 338,666,855.900
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,533.72
Sept 3/2013: we lost a huge 2.025 million oz
Inception Date 4/21/2006
Ounces of Silver in Trust 338,795,220.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,537.71

August 30.2013:  no change

Inception Date 4/21/2006
Ounces of Silver in Trust 340,820,040.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,600.69

August 29.2103:  no change

Inception Date 4/21/2006
Ounces of Silver in Trust 340,820,040.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,600.69

August 28.2013: a huge gain of 1.447 million oz

Inception Date 4/21/2006
Ounces of Silver in Trust 340,820,040.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,600.69

August 27.2013:  no gain

Inception Date 4/21/2006
Ounces of Silver in Trust 339,373,701.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,555.70

August 26.2013:  no gain

Inception Date 4/21/2006
Ounces of Silver in Trust 339,373,701.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,555.70

August 24.2013:  no gain.

Inception Date 4/21/2006
Ounces of Silver in Trust 339,373,701.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,555.70

August 21.2013:   we gained 1,447,000  oz of silver into the SLV

Inception Date 4/21/2006
Ounces of Silver in Trust 339,373,701.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,555.70

August 20;2013:  no change in inventory:

Inception Date 4/21/2006
Ounces of Silver in Trust 338,409,381.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,525.71

August 19.2103:  no change in inventory

Inception Date 4/21/2006
Ounces of Silver in Trust 338,409,381.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,525.71

August 16.2013: we gained 2.315 million oz of silver into the SLV

Inception Date 4/21/2006
Ounces of Silver in Trust 338,409,381.100
Tonnes of Silver in TrustTonnes of Silver in Trust

One metric tonne is equivalent to 1,000 kilograms or 32,150.7465 troy ounces.
10,525.71
Tonight as of 6 pm we had neither a gain nor a loss in inventory of silver at the SLV
end

And now for our premiums to NAV for the funds I follow:

Sprott and Central Fund of Canada.

(both of these funds have 100% physical metal behind them and unencumbered and I can vouch for that)

 
1. Central Fund of Canada: traded  at Negative 3.0% percent to NAV in usa funds and Negative  2.9%  to NAV for Cdn funds.  Sept 4.2013)

2. Sprott silver fund (PSLV): Premium to NAV fell to negative 0.47% NAV Sept4/2013
3. Sprott gold fund (PHYS): premium to NAV rose to positive.57% to NAV Sept4/ 2013

note: that Sprott silver fund is still positive at 3.19%.



Sprott gold went back into positive territory.


Central fund of Canada’s is still in jail. 



end.
Your opening gold/silver trading from Europe early this Wednesday morning:
Notes:  Asia’s richest man, Li Ka Shing is buying gold investments with CIBC
(courtesy Mark OByrne/goldcore)

Asia’s Richest Man, Li Ka-Shing, Looking to Make Gold Investments

Published in Market Update  Precious Metals  on 4 September 2013
By Mark O’Byrne

2

Today’s AM fix was USD 1,403.75, EUR 1,065.63 and GBP 899.67 per ounce.
Yesterday’s AM fix was USD 1,391.25, EUR 1,056.06 and GBP 893.09 per ounce.
Gold climbed $17.50 or 1.26% yesterday, closing at $1,411.80/oz. Silver surged $0.83 or 3.54%, closing at $24.26. Platinum rose $18.60 or 1.2% to $1,532.80/oz, while palladium inched up $2.97 or 0.4% to $715.47/oz just before the close.
Gold pulled back this morning on the open in Asia in an unusual manner which saw a quick almost instantaneous $8 drop from $1,412/oz to a price quote at $1,404.45/oz and then a recovery to $1,412/oz.
Thereafter gold gradually trended lower on technical selling and profit taking after breaching $1,400/oz and rising to $1,415/oz yesterday after Israel launched a test missile which heightened tensions in the region and President Obama received support from some senior republicans for a strike on Syria.
Friday’s non farm payroll data may foreshadow the U.S. Fed’s imminent decision on tapering to come at the FOMC meeting later this month.
Geopolitical concerns about conflict in the Middle East will support gold. The Middle East remains a powder keg and one wrong move could lead to conflict, higher oil prices and a new bout of ‘risk off’ sentiment which would support gold.
The gold mining strikes in South Africa are also supporting gold prices and industrial unrest, along with infrastructural and geological constraints, have greatly reduced production and therefore supply from South Africa.
According to Bloomberg, Asia’s richest man, Li Ka-Shing, is looking to make gold investments.
The Chinese born, Hong Kong business magnate, investor, and philanthropist is considered to be the richest person in Asia and the richest person of Chinese descent in the world. Forbes estimates he is the 11th richest person in the world with a net worth of $27 billion in U.S. dollars. Two of his sons are believed to be billionaires in their own right.
His primary operating company is Hutchison Whampoa Limited, owner of the mobile phone network, Three.
CEF Holdings Ltd., a venture between Li Ka-shing’s flagship company and Canadian Imperial Bank of Commerce, is looking to acquire gold assets after a slump in prices created buying opportunities.
“Long term, gold is a good place to be,” CEF Chief Executive Officer Warren Gilman, 53, said in an interview in Hong Kong.
Cheung Kong Holdings Ltd, controlled by Li, Asia’s richest man, and CIBC each own 50% of CEF. The venture is focused on owning gold mining companies globally.
Gilman previously co-founded Canadian Imperial Bank of Commerce’s (CIBC) global mining group and was later vice chairman of the bank’s CIBC World Markets.
“I was a little uncomfortable making investment in gold at $1,700 and $1,800 an ounce,” Gilman said yesterday. “The correction we’ve had this year from my perspective is great because we can hopefully fulfill that objective of making some gold investments.”
Li, 85, has an estimated net worth of $27 billion, according to the Bloomberg Billionaires Index.
CEF Holdings was established in 1974 by Cheung Kong and CIBC, Gilman said.
“It’s tougher and tougher to find economic gold deposits in safe jurisdictions,” Gilman said. “You see mine supply struggling to keep up with demand long term. That’s a great recipe for higher prices in the longer term.”
Li Ka Shing charity foundation is called the “Heart of Gold” and has recently been extended from Mainland China to Hong Kong.
Ka Shing is known to have a penchant for hard assets and owns infrastructure, shipping, energy and real estate assets, but it is not known if he owns physical gold.
It is likely that he does, as he is Chinese and was a Chinese refugee who fled to Hong Kong with his family to avoid the perils of war. Refugees who flee from their homeland to start new lives in other countries tend to have a deeper appreciation of and understand the importance of owning physical gold.
Most people in Asia, from the man in the street to very wealthy people, own some physical bullion for financial insurance purposes. Increasingly, in Asia and elsewhere, high net worth individuals and family offices are investing in gold  as means to protect wealth from currency devaluations.
Retail investors drive silver rally – The Financial Times
For breaking news and commentary on financial markets and gold, follow us onTwitter.
end
An great interview with Bill Kaye and Eric King, of Kingworldnews
(courtesy Bill Kaye/Eric King/Kingworldnews)

War or peace, gold wins as government’s lies are exposed, Kaye says

Submitted by cpowell on Wed, 2013-09-04 15:40. Section: 

11:36a ET Wednesday, September 4, 2013
Dear Friend of GATA and Gold:
Interviewed by King World News, Hong Kong fund manager William Kaye says gold will win whatever happens in the Middle East, for even peace will disclose how much governments have been lying to their people. Kaye expects gold’s price to be reset much higher to offset currency collapses. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Futures magazine does an in depth interview with Ben Davies of Hinde capital
(courtesy Futures magazine/Ben Davies

Futures magazine interviews Hinde Capital’s Ben Davies on gold’s prospects

Submitted by cpowell on Wed, 2013-09-04 15:31. Section: 

11:33a ET Wednesday, September 4, 2013
Dear Friend of GATA and Gold:
Futures magazine’s September issue has an extensive interview with Hinde Capital CEO Ben Davies that covers the struggle between real gold and paper gold, the price-suppressive effect of the fractional-reserve gold banking system, the preferability of a gold money system that favors democracy and greater equality of wealth over a credit money system that favors the plutocracy that controls it, the increased use of financial repression by government to defeat free markets, and gold’s general prospects. (The interview also includes a lot of photos of Davies.) It’s headlined “Ben Davies: Turning Adversity into Gold” and it’s posted at Future’s magazine’s Internet site here:
If you have trouble with that link, try this one:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Bill Holter makes fun of CNBC analysts to state that they should sell gold until the first shot is fired inside Syria by the USA.
(courtesy Bill Holter/Miles Franklin)

Sell your Gold…again!

While watching CNBC last Friday and again yesterday I learned the one thing that I should do regarding Syria.  Time after time and guest after guest has come on to tell us “once the first shot is fired…you should sell all of your Gold”.  Huh?  Really?  Why?  Did I start buying Gold 15 years ago because I knew that we would attack Syria and maybe draw the rest of the world into the action?  Should I sell my Gold because all of the past “incursions” by the U.S. were “made for TV and nothing “bad” ever happened?
  First off, the current thought process as far as I can tell is that we will strike Syria hard, no one else (the Russians, Iranians, Israelis nor anyone else) will fire a shot and Barack Hussein Obama will stand atop some destroyer or aircraft carrier in the Mediterranean with a sign in the background that says “MISSION ACCOMPLISHED”.  This is NOT what is going to happen.  The odds that Russia enters this fray is quite high by my estimation, Mr. Putin is no wimp and would not have sent troops and now more warships after giving stern warnings to us not to light the fire.  One must also keep in mind that a “short” and surgical strike is NOT what the Federal Reserve needs to “reflate” a deflating system.  They need an expensive war that requires a lot of debt which means heavy (heavier) printing and thus not short war.
  What if this were to actually get out of control?  Should I still have sold my Gold because past “wars” resulted in the immediate smackdowns of Gold and oil…and strength in the Dollar?  When I say “out of control”, how would (will) it play if the American public sees a destroyer or God forbid an aircraft carrier on fire and sinking?  (Would this even be shown to the American public)?
  Can’t happen you say (and this is believed by the idiots in Congress who will vote for this war)?   The Syrians are armed…armed with the most technological weapons made specifically to hit naval vessels and aircraft, http://www.veteranstoday.com/2013/09/03/russia-has-equipped-syria-with-its-most-advanced-missile-systems/  these anti ship missiles were made by Russia and sold to their ally Syria.  Do you think they will not be used?  Do you think Russia would not absolutely love to see these systems used after the entire world witnessed the U.S. fire the first shot?
  What do think the reaction would be here and abroad?  Would the Dollar go up?  Would investors “panic” and sell their Gold because the U.S. was actually retaliated against in kind instead of steamrolling their opponent?  Will oil go down in price when Russia fires a shot?  Will our stock market go up if Iran or Israel enter the fray?  How about our interest rates?  Will they go down or up?  A better question is “will there be ANY buyers other than the Federal Reserve”?
  So we are being told to sell our Gold “after the first shots are fired” because “that’s how it has always worked”.   I will say to you the most dangerous phrase in investing…”it’s different this time” and explain why it is different now in simple fact and logic.  I already mentioned to you that any attack could spread quickly, so unlike attacking Iraq, Afghanistan or Libya…Syria is a real foe with a very BIG best friend.  Also, in the past the “finances” of the U.S. were never in serious question as they are today.  Foreigners were buyers of Dollars and Treasuries…today they are sellers.  We also never had a “consortium” of nations publicly pissed off at the U.S. and meeting (the G-20) in talks to replace the Dollar as the world’s reserve currency.  I might add that economically we have not been weaker than we are now, just look at our manufacturing base…it’s gone.  This unfortunately is a “war” that we need for our economy and to support (through more QE, printing, deficit spending or whatever you’d like to call it) our financial system.  In any case, the “world” is a vastly different place today than it ever was pre 2008 and the U.S. is no longer the only “bad ass on the block” either militarily or financially.  Just ask yourself how a war is paid for.  If the Dollar were to get kneecapped then how would we pay for or continue another war?
  So,  you can listen to CNBC and “trade” or you can keep on stacking.  Of course, if you listen to CNBC, follow their advice and “trade” your Gold after the first shot is fired, it means that the “Gold” is most probably “paper Gold” because VERY few physical holders ever trade.  Which sad to say and I apologize for the insult…would make you a double idiot…one for listening to the advice of CNBC in the first place and secondly for owning fake “paper Gold” and fooling yourself into believing there is even 1 grain of real Gold behind it.  Regards,  Bill H.
end
Overnight sentiment from Asia/Europe Monday morning:
Major points:
 
1,Berlusconi is set to withdraw support for the Letta government. The Italian stock market and bonds fall badly.
2. Senate foreign relations have agreed to a formula for an attack on Syria
 
(courtesy zerohedge/Jim Reid Deutsche bank)
 
 
 

It’s A Syria’s Market

Tyler Durden's picture

Submitted by Tyler Durden on 09/04/2013 06:58 -0400

Today’s morning summary is a carbon copy of yesterday’s. Some things happened, China continues to make up data to fit its current policy outlook, things in Europe continue to go bump in the night ever louder as we approach the German election despite reflexive diffusion indices – this time Service PMIs – desperately signalling a surge in confidence, Italy has just reminded everyone it is a big political basket case as Berlusconi is said to consider withdrawing his support for the Letta government and calling for elections this year, and so on, but it is still all about Syria. Last night the Senate Foreign Relations Committee has agreed on a resolution on using military force against Syria. The resolution would limit the duration of any US military action in Syria to 60 days, with a 30-day extension possible if Obama determines it is necessary to meet the goals of the resolution. In other words, a “surgical strike” lasting a minimum of 90 days, and then with indefinite additionalextensions tacked on. Yet judging by the modest drop in crude and gold, the market may need more than just fighting words at this point to push to th next level of risk aversion.
News highlights from BBG and Ran:
  • Senate Foreign Relations Committee is scheduled to vote today on a
    use-of-force resolution that sets a 90-day limit on U.S. military action
    against Syria and explicitly doesn’t authorize use of ground troops in
    combat
  • Obama administration officials are hinting they’re prepared to
    accelerate efforts to arm rebel forces in the effort to oust Assad
  • Berlusconi may consider withdrawing his support for the current Letta government in Italy alongside calling for elections this year, according to sources in Italian press.
  • Chinese HSBC Services PMI (Aug) M/M 52.8 (Prev. 51.3) – 5-month high.
  • Goldman Sachs closes their long EUR/GBP trade with a potential 0.2% loss, citing strong UK data. UK Services PMI (Aug) M/M 60.5 vs. Exp. 59.0 (Prev. 60.2) – Highest since December 2006.
  • Treasuries little changed before Fed’s Beige Book report and speeches from Kocherlakota and Williams; markets focused on Friday’s nonfarm payrolls and its implications for QE tapering at this month’s FOMC.
  • Nonfarm payrolls est. +180k; a number close to that means tapering will be the likely outcome, according to RBS
  • BoJ meeting ends tonight, no policy changes expected, focus on economic assessment, Kuroda commentary on tax debate, for preview see here
  • The chief bond strategist at Tokai Tokyo, who predicted Japan’s 10Y yield would plunge to 0.5%, now says it’s likely to reach a record 0.25% as a failure to meet economic targets may cost Prime Minister Abe his job
  • Sovereign yields mostly higher, EU peripheral spreads wider. Euro Stoxx Banks -1.7%. Nikkei gains 0.5%, JPY earlier fell to 99.80. Other Asian stock markets mixed. European equities, U.S. equity index-futures decline. WTI crude, copper and gold decline
Market Re-Cap from RanSquawk
The release of better than expected Chinese HSBC Services PMI failed to support investor appetite for risk and instead, safe-haven assets outperformed as market participants positioned for a plethora of risk events (BoJ, BoE, ECB and Non-Farm Payrolls). Yet again, EUR underperformed relative to GBP, as combination of renewed concerns over Italy, as well as risks that the ECB will seek to address the recent rise in money market rates when the council meeting on Thursday saw spread between the 1y/1y fwd EONIA and the ECB refinancing rate narrow to its tightest level since July 2011. At the same time, the release of better than expected UK Services PMI, which rose to its highest level since December 2006, saw the GBP 1y/1y fwd rise to its highest since mid-June at 0.7236.
On the geopolitical front, the Senate Foreign Relations Committee has agreed on a resolution on using military force against Syria. The resolution would limit the duration of any US military action in Syria to 60 days, with a 30-day extension possible if Obama determines it is necessary to meet the goals of the resolution. The resolution, which is expected to come before the committee for a vote today, also bans the use of US ground forces in Syria “for the purpose of combat operations”. Going forward, market participants will get to digest the release of the latest Challenger Job Cuts and US Trade Balance reports, as well as BoC’s rate decision where rates are expected to be kept unchanged at 1.00%.
Asian Headlines
Chinese HSBC Services PMI (Aug) M/M 52.8 (Prev. 51.3) – 5-month high.
Chinese commerce minister Gao said he is confident in H2 stable economic growth, adding that H2 export growth is to recover and that H2 consumption is to keep steady GDP expansion.
Goldman Sachs revises its Japan GDP forecast higher to annual 3.7% Q/Q.
EU & UK Headlines
UK Services PMI (Aug) M/M 60.5 vs. Exp. 59.0 (Prev. 60.2) – Highest since December 2006.
Germany sells EUR 4.039bln in 1.00% 2018 Bobl (new line), b/c 1.5 (Prev. 1.6) and avg. yield 1.00% (Prev. 0.64%), retention 19.22% (Prev. 17.5%)
Berlusconi may consider withdrawing his support for the current Letta government in Italy alongside calling for elections this year, according to sources in Italian press. Italian FTSE-MIB underperformed its EU peers, trading down by over 1%, whereas other EU based equity indices were seen lower by just 0.5%. Also, IT/GE 10s widened by 5bps.
Eurozone Services PMI (Aug F) M/M 50.7 vs. Exp. 51.0 (Prev. 51.0) – highest since August 2011.
Eurozone Composite PMI (Aug F) M/M 51.5 vs. Exp. 51.7 (Prev. 51.7) – highest since July 2011.
Eurozone GDP SA (Q2 P) Q/Q 0.3% vs. Exp. 0.3% (Prev. 0.3%)
Eurozone Retail Sales (Jul) M/M 0.1% vs. Exp. 0.2% (Prev. -0.5%, Rev. -0.7%)
US Headlines
US House Speaker Boehner said UN & NATO are unlikely to take action on Syria and he will support President’s call for action. He added that only the US’ can respond to Syria.
– Leaders of Senate Foreign Relations Committee say they reach an agreement on draft authorisation for use of military force in Syria. Draft authorisation sets 60-day limit on military action in Syria. The document says would ban any use of US armed forces on the ground in the country.
– Putin says does not rule out his agreement to military operation in Syria if Damascus found guilty in chemical attack, but only with UN approval.
Equities
The release of better than expected Chinese HSBC Services PMI failed to support investor appetite for risk and instead, safe-haven assets outperformed as market participants positioned for a plethora of risk events (BoJ, BoE, ECB and Non-Farm Payrolls). Consumer services sector under performed in Europe, with Ryanair trading down over 10% after the company issued a profit warning.
Analysts at Deutsche Bank have raised 2014 expected EPS and 2013 year-end S&P 500 target to 1750 from 1675.
In addition to that, further PE expansion in 2014 or 2015 would be justified if the Fed stops its asset purchases and longterm real interest rates stay below historical norms or if real EPS growth plus the dividend yield outlook can exceed historical averages.
FX
EUR underperformed relative to GBP, as combination of renewed concerns over Italy, as well as risks that the ECB will seek to address the recent rise in money market rates when the council meeting on Thursday saw spread between the 1y/1y fwd EONIA and the ECB refinancing rate narrow to its tightest level since July 2011. At the same time, the release of better than expected UK Services PMI, which rose to its highest level since December 2006, saw the GBP 1y/1y fwd rise to its highest since mid-June at 0.7236.
Goldman Sachs closes their long EUR/GBP trade with a potential 0.2% loss, citing strong UK data. Elsewhere, analysts at Morgan Stanley cut USD/JPY Q3 forecast to 99.00 and Q4 to 105.00. Separately, raised GBP/USD Q3 forecast to 1.5300, Q4 to 1.5000 and also raised EUR/USD Q3 forecast to 1.3100, Q4 to 1.2800.
Indian PM Singh said India took steps to boost growth and stabilize INR. Singh added they are to raise exit from unconventional policies at the G20 summit and that an orderly exit will avoid damage to the developing world. Australian GDP SA (Q2) Q/Q 0.6% vs. Exp. 0.5% (Prev. 0.6%, Rev. 0.5%).
Commodities
Goldman Sachs cuts Libya September 2013 oil production forecast to 500,000 bpd from 1mln bpd. Cuts Iraq September oil output estimate by 100,000bpd. Goldman Sachs says pressure on OPEC spare capacity is to peak in September.
Barclays sees a ‘modest’ decline in oil prices in Q4 2013 and forecasts Brent at USD 105/bbl and WTI at USD 101/bbl in Q4 2013. Barclays forecasts Brent at USD 110/bbl and WTI at USD 104/bbl in 2014.
Libya’s crude oil production at 150,000bpd in the last few days, down from 250,000bpd last week according to NOC. This follows Awami’s report that Libya’s Zawiya oil refinery is shut on crude shortage.
South African NUMSA union spokesman says may be prepared to lower pay hike demands in gold sector, with reports suggesting that it has cut wage increase demand to 10%, but wont welcome government intervention in wage talks. However South Africa’s gold companies said that no formal revised wage demand yet
received. Of note, NUM yesterday started strike at gold mining companies, including AngloGold, Gold Fields and Harmony.
* * *
The complete narrative of the overnight events from DB’s Jim Reid:
Just how sensitive markets remain to the Syrian situation was shown when US House Speaker John Boehner spoke in support of military action in Syria yesterday. This was enough to drive markets lower into the European close and sent the S&P500 (+0.42% on the day) down 9 points (0.5%) within a matter of minutes. In addition to Boehner, House Majority Leader Eric Cantor and Minority Leader Nancy Pelosi also lent their support to Obama’s plan for military intervention. According to the Associated Press, the Senate Foreign Relations Committee (which Secretary of State John Kerry and Defense Secretary Chuck Hagel presented to on Tuesday) has agreed on a resolution on using military force against Syria. The resolution would limit the duration of any U.S. military action in Syria to 60 days, with a 30-day extension possible if Obama determines it is necessary to meet the goals of the resolution. The resolution, which is expected to come before the committee for a vote today, also bans the use of U.S. ground forces in Syria “for the purpose of combat operations”. Republicans and Democrats had said the prohibition was necessary for their support (WSJ). Congressional officials said that a House/senate vote on the resolution was not expected before the middle of next week when Congress officially returns from recess. Despite finding some Congressional support, a Reuters poll found that public support for US military action remains low – some 56% of Americans surveyed said the United States should not intervene in Syria, while only 19% supported action.
DB’s geopolitical analyst Frank Kelly thinks that there are a number of crucial events to watch for this week in relation to Syria. Firstly, while Congress does not officially return from summer recess until September 9th, members of Congress are cutting short their holiday and returning to Washington this week, which will mean we will be probably get a massive up-tick of members giving their views publicly. The French Parliament holds an emergency session on Syria today – recall that the UK and France have been the key diplomatic supporters of the White House’s plan in Syria. Frank also notes that the G20 summit in St Petersburg starting on Thursday may see public sparks between Obama and Putin. In terms of whether Congress will approve the resolution next week, Frank thinks the Senate will pass the resolution with a slim majority but the House vote is now a coin-toss.
Returning to the markets, Asian equities are trading weaker across the board overnight which follows a rather tepid fade into the US close.  In Japan, utilities (-0.2%) are amongst the underperformers with TEPCO the biggest decliner after the company detected the highest radiation levels found so far near tanks holding contaminated water at Fukushima. A small earthquake recorded in the Kanto region in Japan is also weighing on sentiment in Japanese equities. Chinese Ashares are also a little weaker despite the release of a 5-month high HSBC Services PMI (52.8 vs 51.3 previous). The AUD is trading 0.4% higher against the USD after stronger than expected Q2 GDP data (0.6% QoQ vs 0.5% expected).
Yesterday’s strong manufacturing ISM data heralded another weak day for US treasuries as expectations strengthened that the Fed will announce a tapering when the FOMC meets later this month. The manufacturing ISM added slightly to an already solid July print, as the August headline rose to 55.7 from 55.4 previously (54.0 expected). The strength in the headline was driven by 60+ readings on both new orders (63.2 vs. 58.3) and production (62.4 vs. 65.0). DB’s Joe LaVorgna notes that the strength in new orders is particularly encouraging, because this series tends to be a leading indicator of overall factory sector activity—the current level points to another headline print of 55.0 or greater in September. In other details of the ISM report, employment slowed modestly (53.3 vs. 54.4), and prices paid crossed back into expansionary territory (54.0 vs. 49.0 previously). Joe concludes that the tone of the August manufacturing ISM report is consistent with his forecast for abovetrend growth in Q3, as well as a decent print on August employment (+190k payrolls and 7.3% unemployment).
Shortly after the ISM, 10yr UST yields reached a high of 2.91%, which is not too far away from the 2.93% high reached on the 22nd of August. The aforementioned Syrian concerns eventually led yields back down to the closing level of 2.86% but yields were still up 8bp on the day. The move up in UST yields were a drag on European bond markets while EM assets also suffered. Indeed, yesterday saw the MSCI Emerging Markets equity index (-0.5%) record its first loss in four sessions with particularly sharp falls in Indian (-3.5%) and Turkish (-2.3%) bourses. In EM currencies, the IDR (-0.65%), TRY (-1.85%) and MXN (-0.4%) continued to slide against the USD. The Brazilian Real fared better (+0.8%) perhaps helped by the combined efforts of the Brazilian government and central bank during recent weeks, including a statement yesterday from the country’s Treasury Secretary that the government will keep working to avoid excessive depreciation of the Real. In credit, the focus was on US and European primary markets which had one of their busiest days of the year as investors returned to their desks from summer holidays.
Turning to the day ahead, the continuing debate in Washington over Syria will likely drive market sentiment over the next 24 hours. In terms of the dataflow, service PMIs in Europe and the UK and Eurozone retail sales are today’s highlight. In North America, watch for US mortgage applications, trade data for July and the BoC’s rate decision.
end
The Russian response:
(courtesy zero hedge)
 

Russia Sends Missile Cruiser “Moskva”, Destroyer And Frigate To Syria

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Submitted by Tyler Durden on 09/04/2013 07:34 -0400

It was just yesterday, when we reported on the build up of Russian naval forces in the Meditteranean, in this case two new marine-carrying amphibious assault ships, that we made a simple forecast: “Our prediction: the next ship to be dispatched in direction Syria will be the missile cruiser Moskva, the “flag ship of the Black Sea fleet” and more of its affiliated warships… That, and a whole lot of submarines.” We were right.
  • RUSSIA SENDS MISSILE CRUISER MOSKVA TO EAST MEDITERRANEAN: IFX
  • RUSSIA SENDS DESTROYER, FRIGATE TO EAST MEDITERRANEAN: IFX
  • RUSSIA HAS WARSHIPS, SPY VESSELS MONITORING MEDITERRANEAN: IFX
  • RUSSIA PREPARED TO ADJUST SIZE OF MEDITERRANEAN BUILDUP: IFX
The deployment is, more than anything, symbolic. It means Russia will no longer take US military build up  in the region on the sidelines. Because while the Mediterranean build up is inevitable (and can be tracked here), the next step will be the arrival of Russian air and land-based support in Syria. Oh, and China. Let’s not forget China.
More from Reuters:
Russia is sending a missile cruiser to the east Mediterranean to take over the navy’s operations in the region, state agency Interfax quoted a military source as saying on Wednesday, as the United States prepares for a possible military strike in Syria.
President Barack Obama has won backing from key figures in the U.S. Congress in his call for limited U.S. strikes on Syria to punish President Bashar al-Assad for his suspected use of chemical weapons against civilians.
The ship, Moskva, will take over operations from a naval unit in the region that Moscow says is needed to protect national interests. It will be joined by a destroyer from Russia’s Baltic Fleet and a frigate from the Black Sea Fleet.
“The Cruiser Moskva is heading to the Gibraltar Straits. In approximately 10 days it will enter the east Mediterranean, where it will take over as the flagship of the naval task force,” the source said.
Foreign Minister Sergei Lavrov has said Russia has no intention of getting dragged into any military conflict over Syria.
Earlier this week, Interfax reported that Russia was also sending a reconnaissance ship to the region but that it would operate separately from the naval unit.
Elsewhere, rumor has it all of Congress has been nominated for the 2014 Nobel Peace Prize.
end
and then this from Putin:
(courtesy zerohedge)

Putin Lashes Out, Accuses Kerry Of Lying To Congress

Tyler Durden's picture

Submitted by Tyler Durden on 09/04/2013 09:30 -0400

Ahead of tomorrow’s ever-so-friendly G-20 meeting in St. Petersburg – where the US Secretary of State hopes that “the Kremlin has a change of heart,” – Russia’s President Putin just raised the rhetoric. As Reuters reports:
  • PUTIN ACCUSES U.S. SECRETARY OF STATE KERRY OF LYING TO CONGRESS ABOUT AL QAEDA’S ROLE IN SYRIA CONFLICT
  • RUSSIAN PRESIDENT PUTIN SAYS U.S. CONGRESS HAS NO RIGHT TO “LEGITIMISE AGGRESSION” AGAINST SYRIA
With the Moskva sailing into the Med along with many many others, it seems as Obama just admitted during his Sweden press conference, [on Putin:] “We’ve kinda hit a wall on additional progress”
 
end
The Russian press state that the weapons used in the chemical attack are similar to the ones used by the rebels.  Also the signature of sarin gas is really sodium fluoride and potassium fluoride
(courtesy zero hedge)
 

Russia Chemical Attack Probe Shows “Weapons Similar To Ones Made By Rebels”

Tyler Durden's picture

Submitted by Tyler Durden on 09/04/2013 12:48 -0400

While John Kerry remains adamant that it is “undeniable” that the Assad regime was behind the chemical weapon attacks in Syria, the results of Russia’s probe suggest the truth is anything but undeniable…
  • *RUSSIA SAYS SHELL USED IN ATTACK WASN’T STANDARD SYRIA ORDNANCE
  • *RUSSIA SAYS SHELL USED IN CHEMICAL ATTACK WAS MAKESHIFT DEVICE
  • *RUSSIA SAYS GAS USED IN SYRIA WASN’T INDUSTRIALLY PRODUCED
And perhaps most critically, as Reuters reports, the foreign minstry statement asserts that Russian expert findings show the weapon used in the Syrian chemical attack was similar to the ones made by a rebel group.
end
Finally tonight, the senate panel authorized limited military strike in Syria
(courtesy zero hedge)

Senate Panel Authorizes Limited Military Strike In Syria

Tyler Durden's picture

Submitted by Tyler Durden on 09/04/2013 15:26 -0400

And like that, the first step to all out war has been taken:
  • SENATE PANEL AUTHORIZES LIMITED U.S. MILITARY STRIKE IN SYRIA
Vote breakdown: 10 Yes; 7 No; 1 Present. The measure includes new language saying U.S. policy is to “change the momentum on the battlefield in Syria” in way that brings about negotiated settlement of conflict, leading to a democratic govt in Syria. In other words: a pro-Qatari/Saudi coalition government that will permit the passage of natgas pipelines under Syria, through Turkey and into Europe, breaking Gazpromia’s marginal energy monopoly over the broke continent.
Next up:
  • FULL U.S. SENATE TO CONSIDER SYRIA RESOLUTION NEXT WEEK
After that the House, and it’s cruise missiles away.
And now, and as always, the ball is in Putin’s court.
 
end
Dave Kranzler does not like what he sees coming from the White HOuse
(courtesy the GoldenTruth/Dave Kranzler)

WEDNESDAY, SEPTEMBER 4, 2013

A Really Foul Smell Is Coming From The White House

You know how horrific it smells when you walk into the men’s room at an NFL football stadium in the fourth quarter?  That’s the kind of smell I’m getting from the Obama Government right now after Barack has made it clear that he wants to attack  Syria and ultimately remove Assad.  But the real question is, why?

Does anyone really believe that the U.S. can prove that the Syrian military used chemical weapons against the rebel forces?  To begin with, based on everything I’ve read, IF chemical weapons were deployed, it’s impossible to know if they came from the Syrian military or the rebels.  But just to remind everyone, the rebel forces are being led by Al Qaida and have been heavily funded, armed and trained by both Saudi Arabia and the United States.  The latter is a fact that the U.S. can not deny.

How absurd is it that the U.S. is conducting a trillion dollar “war on terror” against Al Qaida around the globe and yet it is funding and supporting them in Syria?  It’s so absurd that you couldn’t begin to make that up.  But why?

First off, let’s completely dispel the cover story of chemical weapons use.  The evidence is flimsy and 100% hear-say.  Maybe they were used, maybe not.  But which side used them is impossible to know for sure, although, as I’ll show in a minute, the motive for staging the use of chemicals was a lot greater for the Saudi/U.S. coalition.  This reminds me 100% of the Bush regime argument for going to war in Iraq, which we know for a fact was complete lie.  Colin Powell lied to the world and he knows it and we know it.

Second, check out this photograph of John Kerry having a cosy dinner with Assad and their respective wives in 2009:  LINK   Keep in mind this the same person that Kerry just referred to as “Hitler.”

Finally, what’s the U.S. motive?  It’s never really for “humanitarian” reasons.  After all, regardless of which side flung the alleged chemicals, there’s no do doubt that the U.S.’ strategic bombing of Syria will yield many more multiples of casualties – military and civilian – than occurred from the alleged use of chemical weapons.

However, I have found that beneath the surface reasons for every war in history there has always been economic reasons embedded as the root cause.  Every single one.  As it turns out, not surprisingly, this one is over energy.  Natural gas pipelines.  Read this if you don’t believe me – and this is not the first source from which I’ve read this but it’s laid out nicely here:  LINK

The real reason for the U.S. involvement is that both Saudi Arabia and Qatar want to tighten their control of the flow of energy in the Middle East.  Rest assured that there’s also plenty of motive for big U.S. oil companies to make this happen.

I guess the next questions would be, who really controls the U.S. and the Obama regime?  Big oil or Saudi Arabia?  And does Obama really deserve that Nobel Peace Prize?

POSTED BY DAVE IN DENVER AT 8:10 AM 0 COMMENTS
Tuesday morning : Portuguese 10 year bond yield: down 7 basis point from Thursday night: 6.66%

PORTUGUESE GOVERNMENT BONDS 10YR NOTE

GSPT10YR:IND

6.660.01 0.15%

 Share
As of 02:30:00 ET on 09/03/2013.
end

Your closing 10 year Portuguese bond yield Tuesday night: an increase of  4 basis points from this morning. We still have an inferno burning beneath the covers.

PORTUGUESE GOVERNMENT BONDS 10YR NOTE

GSPT10YR:IND

6.770.07 1.09%

 Share
As of 11:59:00 ET on 09/04/2013.

Your closing Japanese yield Wednesday night: up in yield by 3 basis points from this morning.

Japan Govt Bond Year to maturity 10 Year Simple Yield

GJGB10:IND

0.780.02 3.06%

 Share
As of 09/04/2013.
end

Your closing Spanish 10 year government bond: Wednesday night up  4 basis points in yield from Tuesday  night. The Spanish banks are still very busy buying the sovereign bonds.

SPANISH GOVERNMENT GENERIC BONDS – 10 YR NOTE

GSPG10YR:IND

4.510.04 0.89%

 Share
As of 11:59:00 ET on 09/04/2013.

end

Tuesday closing Italian 10 year bond yield: up in yield by 8 basis points  from Tuesday night;

(Italian banks are desperately  buying up all of the sovereign bonds trying to keep yields down.

Italy Govt Bonds 10 Year Gross Yield

GBTPGR10:IND

4.420.08 1.73%

 Share
As of 09/04/2013.
Closing currency crosses for Wednesday night/USA dollar index/USA 10 yr bond:
Euro/USA:  1.3209  up .0040
USA/Japan:  99.67 up  .0129

Great Britain/USA:  1.5627 up .0068
USA/Canada:  1.0493 down .0040

The euro rose this afternoon  session closing  above the 1.32 level to 1.3209.  The yen weakened a bit  this afternoon  closing well above the 99 level to 99.67.The British pound gained a touch this afternoon to 1.5627. The Canadian dollar strengthend in the afternoon to 1.0493.
Your closing USA dollar index:
82.21 up 5 cents on the day.

Your closing 10 year USA bond yield: up another 7 basis points on the day.

US Generic Govt 10 Year Yield

USGG10YR:IND

2.89-0.00-0.06%

 Share
As of 22:31:00 ET on 09/05/2013.

Closing bourses figures for Wednesday:

i) England/FTSE  up 6.33 points or  0.10%

ii) Paris/CAC up 6.25  points or 0.16%
iii) German DAX: up  15.21 points or  0.19%
iv) Spanish ibex up 45.10  points or 0.53%

v) Italian bourse (MIB) down 228.83  or  1.35%

and the Dow up 96.91 points  or 0.65% ….

end

And now the big USA stories of the day:

This will be a big downer for 3rd quarter GDP:
(courtesy zero hedge)

Worse Than Expected US Trade Deficit Spikes In July, Trade Gaps With China, EU Rise To Record

Tyler Durden's picture

Submitted by Tyler Durden on 09/04/2013 08:52 -0400

When last week the revised Q2 GDP print was announced, which beat expectations solidly driven entirely by a surge in net exports, we said that “with China on the rocks and tightening, the Emerging Markets in free fall, and Europe still a net exporter (so not benefiting the US), anyone hoping this trade led-recovery will be sustainable, will be disappointed.” Sure enough, the first trade data update for the third quarter as of July, confirmed just this, as the trade deficit widenedfrom a revised $34.5 billion deficit, to a substantially larger monthly deficit, amounting to $39.1 billion. This was $500MM more than consensus expected, or $38.6 billion, and it means that as we predicted, the downward revisions to Q3 tracking estimates are about to start rolling in, trimming ~0.1%-0.2% from US GDP for this current quarter. Specifically, imports for the month rose from $225.1 billion to $228.6 billion while exports fell from $190.5 billion to $189.5 billion. But perhaps most notable is that in July, the US trade deficit with China and the EU rose to a record of $30.1 billion (from $26.6bn last month) and $13.9 billion (from $7.1bn) respectively.
The detailed breakdown:
In July, the goods deficit increased $4.5 billion from June to $58.6 billion, and the services surplus decreased $0.1 billion from June to $19.4 billion. Exports of goods decreased $1.1 billion to $132.7 billion, and imports of goods increased $3.4 billion to $191.3 billion. Exports of services were virtually unchanged at $56.7 billion, and imports of services increased $0.1 billion to $37.3 billion.
The goods and services deficit decreased $4.3 billion from July 2012 to July 2013. Exports were up $6.1 billion, or 3.3 percent, and imports were up $1.8 billion, or 0.8 percent.
The June to July decrease in exports of goods reflected decreases in capital goods ($1.6 billion); consumer goods ($1.4 billion); other goods ($0.3 billion); and automotive vehicles, parts, and engines ($0.2 billion). Increases occurred in industrial supplies and materials ($1.7 billion) and foods, feeds, and beverages ($0.4 billion).
The June to July increase in imports of goods reflected increases in industrial supplies and materials ($2.0 billion); automotive vehicles, parts, and engines ($0.8 billion); consumer goods ($0.7 billion); other goods ($0.3 billion); and foods, feeds, and beverages ($0.1 billion). A decrease occurred in capital goods ($0.3 billion).
Broken down by trade partners:
The July figures show surpluses, in billions of dollars, with Hong Kong $2.9 ($3.4 for June), Brazil $1.7 ($1.6), Australia $1.5 ($1.7), and Singapore $0.6 ($1.2). Deficits were recorded, in billions of dollars, with China $30.1 ($26.6), European Union $13.9 ($7.1), OPEC $7.4 ($5.8), Japan $6.8 ($5.5), Germany $6.4 ($4.9), Mexico $4.1 ($4.8), Saudi Arabia $3.3 ($3.0), Canada $2.8 ($1.8), Venezuela $2.3 ($1.2), Ireland $2.3 ($1.4), Korea $2.2 ($1.6), and India $2.1 ($1.0).
A look at crude oil imports showed that July saw a spike in both total barrels imports and berrls per day, which rose to the highest of 2013, at 264.2MM barrels and 8,523K barrels per day.
end

Well that is all for today.I will see you tomorrow night
To all our Jewish friends out there, I wish you a very happy and prosperous New Year
Harvey

Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
 nil
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
771.60 (Brinks)
No of oz served (contracts) today
 21 ( 2100  oz)
No of oz to be served (notices)
201 (20,100)
Total monthly oz gold served (contracts) so far this month
41  (4100)
Total accumulative withdrawal of gold from the Dealers inventory this month
Total accumulative withdrawal of gold from the Customer inventory this month
20,211.513
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