Gold: $1097.20 down $1.90 (comex closing time)
Silver $14.04 down 4 cents
In the access market 5:15 pm
Gold $1098.00
Silver: $14,02
At the gold comex today, we had a poor delivery day, registering 1 notices for 100 ounces.Silver saw 2 notices for 10,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 199.10 tonnes for a loss of 104 tonnes over that period.
In silver, the open interest rose by 461 contracts up to 157,314. In ounces, the OI is still represented by .786 billion oz or 112% of annual global silver production (ex Russia ex China).
In silver we had 2 notices served upon for 10,000 oz.
In gold, the total comex gold OI fell by 8,524 contracts to 407,938 contracts as gold was down $8.00 with yesterday’s trading.
Today both the gold comex and the silver comex are in severe stress with gold in backwardation up to August.
We had no changes into inventory at the GLD, / thus the inventory rests tonight at 662.09 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold, after they deplete the GLD will be the FRBNY and the comex. In silver,/we had a huge withdrawal of 2.0 million oz of inventory and thus/Inventory rests at 311.606 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver rise by 461 contracts up to 157,314 despite the fact that silver was down by 8 cents with respect to yesterday’s trading. The total OI for gold fell by 8,524 contracts to 407,938 contracts as gold was down $8.00 in price yesterday
(report Harvey)
2 a) Gold trading overnight, Goldcore
(Mark OByrne)
b) COT report/Harvey
3. ASIAN AFFAIRS
i) The situation in Italy is very precarious. The new rules came into effect on Jan 1.2016 whereby bail in’s are the order of the day. Also if state aid is to be given, then the banks must remove 8% of their liabilities, an event that will not happen. Renzi missed his opportunity to do a good bank/bad bank routine. Now the banking system has 200 billion euros worth of bad loans. The EU may be ready to change the rules back again to allow state aid. They are racing against the clock to get a deal done by the weekend.
i) More than 50% of the wealth created (approximately 17 trillion usa) from the lows of 2011 to today have been wiped out.
ii) Two commentaries on the fall of the Canadian loony and the effect it has on the economy
Venezuela’s crude basket crashes to a low of $20.20 and as I reported to you yesterday, they are already past the point of no return.They will default shortly
( zero hedge)
i)Just the start: Giant oil and gas company Chesapeake suspends preferred dividends:( zero hedge)
ii) Barclay’s rigged the system and thus hosed the investing public:
iii) Oil spikes to the 31 dollar level, but the oil basket of OPEC falls to the lowest on record at $22.48 per barrel. Citibank claims that oil is now the trade of the year! Is it?
v) Rig counts lower by a fraction. Oil is unimpressed:
i) Bellwether American Express down 9% following lower revenues and a weak forward guidance.( zero hedge)
iii)Although the USA PMI bounces back we will have a drop in the key employment index:
iv) A terrific exchange with Felix Zulauf as he explains the huge problems facing the globe. Pay special attention to the section on China;
(courtesy zero hedge/Felix Zulauf)
Let us head over to the comex:
| Gold COT Report – Futures | ||||||
| Large Speculators | Commercial | Total | ||||
| Long | Short | Spreading | Long | Short | Long | Short |
| 158,320 | 114,626 | 76,043 | 140,723 | 180,866 | 375,086 | 371,535 |
| Change from Prior Reporting Period | ||||||
| -335 | 689 | 17,206 | -1,498 | -4,940 | 15,373 | 12,955 |
| Traders | ||||||
| 138 | 115 | 96 | 47 | 56 | 231 | 230 |
| Small Speculators | ||||||
| Long | Short | Open Interest | ||||
| 33,749 | 37,300 | 408,835 | ||||
| -4,103 | -1,685 | 11,270 | ||||
| non reportable positions | Change from the previous reporting period | |||||
| COT Gold Report – Positions as of | Tuesday, January 19, 2016 | |||||
Our large specs that have long in gold pitched a tiny 335 contracts from their long side
Our large specs that have been short in gold added 689 contracts to their short side
Our commercials:
Those commercials that have been long in gold pitched 1498 contracts from their long side
Those commercials that have been short in gold covered 4940 contracts from their short side.
Our small specs:
Those small specs that have been long in gold pitched 4103 contracts from their long side
Those small specs that have been short in gold covered 1685 contracts from their short side.
Conclusion: commercials go net long by 3442 contracts which is bullish
And now for our silver COT
| Silver COT Report: Futures | |||||
| Large Speculators | Commercial | ||||
| Long | Short | Spreading | Long | Short | |
| 68,196 | 39,238 | 19,274 | 49,508 | 85,542 | |
| -3,059 | -9,534 | -422 | -1,182 | 4,290 | |
| Traders | |||||
| 83 | 53 | 43 | 32 | 38 | |
| Small Speculators | Open Interest | Total | |||
| Long | Short | 159,521 | Long | Short | |
| 22,543 | 15,467 | 136,978 | 144,054 | ||
| -1,988 | -985 | -6,651 | -4,663 | -5,666 | |
| non reportable positions | Positions as of: | 135 | 121 | ||
| Tuesday, January 19, 2016 | |||||
Our large specs:
Those large specs that have been long in silver pitched 3059 contracts from their long side
Those large specs that have been short in silver covered a massive 9034 contracts from their short side
Our commercials;
Those commercials that have been long in silver pitched 1182 contracts from their long side.
Those commercials that have been short in silver added 4290 contracts to their short side.
Our small specs;
Those small specs that have been long in silver pitched 1988 contracts from their long side
Those small specs that have been short in silver covered 985 contracts from their short side.
Conclusions: commercials go net short by 5492 contracts which is bearish.However OI is declining daily and that is very good for silver.
And now your overnight trading in gold, FRIDAY MORNING and also physical stories that may interest you:
Investing in Silver – 3 Must See Charts
Precious metals continue to look very undervalued vis a vis most asset classes – particularly stocks and bonds.
This is especially the case with silver which has fallen by more than 70% from what we believe was an intermediate price high of $49 in 2011 – despite surging demand for silver bullion coins and bars from canny buyers investing in silver.

Silver Eagle Sales – Full Year 1996 and First 19 Days of 2016
Silver is currently trading at just over $14.25 per ounce – 1/77th of the price of gold at $1,100/oz. GoldCore continue to believe that silver will surpass its non-inflation adjusted, nominal high of $50 per ounce in the coming years. Indeed, we believe that silver will surpass its inflation adjusted high or real record high of over $150 per ounce in the next 5 to 7 years.
We are currently doing a research note on silver which will outline why we are so positive on silver.
In the meantime, let us whet your appetite and give you an understanding of the rationale for our bullishness. Steve St Angelo of the SRSrocco REPORT has just done an excellent blog with three very interesting charts which contribute to our positive outlook for silver bullion.

He points out that
In 1996, total Silver Eagle sales for the year were 3,466,000. Now compare that to the 4,950,000 Silver Eagles sold in the first half of January. We must remember, Silver Eagle sales in 2016 started on January 11th. So, in just six working days (this Monday was a holiday), the U.S. Mint sold 43% more Silver Eagles than all of 1996.
Furthermore, if we compare sales of Silver Eagles in 1996 versus 2015, this was the result:
Investors purchased a record 47 million Silver Eagles in 2015 compared to 3.5 million in 1996. Basically, investors bought 13.5 times more Silver Eagles in 2015 than they did in 1996.
This next charts compares the 20-year change of silver investment versus Jewelry and Silverware demand:
In 1996, total global Silver Bar and Coin investment was only 23 million oz (Moz) versus 264 Moz of Jewelry & Silverware. However, 20 years later… we see a much different picture. While global Jewelry & Silverware demand increased to 280 Moz, Silver Bar & Coin investment surged to 236 Moz.
Steve’s blog in full and charts can be seen here
Precious Metal Prices
22 Jan LBMA Gold Prices: USD 1,097.65, EUR 1,012.55 and GBP 769.63 per ounce
21 Jan LBMA Gold Prices: USD 1,096.80, EUR 1,006.98 and GBP 774.99 per ounce
20 Jan LBMA Gold Prices: USD 1,093.20, EUR 999.73 and GBP 771.08 per ounce
19 Jan LBMA Gold Prices: USD 1,087.00, EUR 999.77 and GBP 759.79 per ounce
18 Jan LBMA Gold Prices: USD 1,090.45, EUR 1,001.06 and GBP 763.67 per ounce
Breaking Gold and Silver News Today – Click here
Alasdair Macleod: Out of the mouths of babes. …
Submitted by cpowell on Thu, 2016-01-21 19:59. Section: Daily Dispatches
By Alasdair Macleod
GoldMoney.com, St. Helier, Jersey, Channel Islands
Thursday, January 21, 2016
Parents will tell you the most difficult questions to answer sometimes come from their children.
Here are some apparently innocent questions to ask of economists, journalists, financial commentators, and central bankers, questions designed to expose the contradictions in their economic beliefs. They are at their most effective using a combination of empirical evidence and simple, unarguable logic. References to economic theory are minimal, but in all cases the respondent is invited to present a valid theoretical justification for what invariably are little more than baseless assumptions.
A pretense of economic ignorance by the questioner is best, because it is most disarming. Avoid asking questions couched in anything but the simplest logical terms. You will probably get only two or three questions in before the respondent sees you as a troublemaker and refuses to cooperate further.
The nine questions that follow are best asked so that they are answered in front of witnesses, adding to the respondent’s discomfort. Equally, journalists and financial commentators, who make a living from mindlessly recycling others’ beliefs, can be great sport for an interrogator.
The game is simple: We know that macroeconomics is a fiction from top to bottom; the challenge is to expose it as such. If appropriate, preface the question with an earlier statement by the respondent, which he cannot deny; i.e. “Last week you said that…”
… For the remainder of the commentary:
https://www.goldmoney.com/out-of-the-mouths-of-babes?gmrefcode=gata
China vice president vows to ‘look after’ stock market investors
Submitted by cpowell on Thu, 2016-01-21 19:42. Section: Daily Dispatches
By John Micklethwait and John Fraher
Bloomberg News
Thursday, January 21, 2016
China is willing to keep intervening in the stock market to make sure that a few speculators don’t benefit at the expense of regular investors, China’s vice president said in an interview.
Calling the country’s market “not yet mature,” Vice President Li Yuanchao said the government would boost regulation in an effort to avoid too much volatility.
“An excessively fluctuating market is a market of speculation where only the few will gain the most benefit when most people suffer,” Li said in an interview with Bloomberg News after arriving at the World Economic Forum’s annual meeting in Davos, Switzerland. “The Chinese government is going to look after the interests of most of the people, most of the investors.”
Li, 65, is the most senior Chinese official yet to underline the government’s readiness to intervene should the market turmoil of last summer and the start of 2016 continue. …
… For the remainder of the report:
http://www.bloomberg.com/news/articles/2016-01-21/china-vice-president-v…
end
(courtesy GATA/Bloomberg)
Someone Is Trying To Corner The Copper Market
It may not be as sexy as gold and silver, but sometimes even doctor copper needs a littlesqueeze and corner love as well, and according to Bloomberg, that is precisely what someone is trying to do.
One company whose identity is unknown, is “hoarding as much as half the copper available in warehouses tracked by the London Metal Exchange.”
However, unlike the famous cornering of silver by the Hunts in 1980 which sent the price soaring if only briefly, in this case the unknown manipulator is trying to push the price of the physical lower. By taking control of half the available copper, the trader can help drive up the fees associated with rolling forward a short position, making it tougher for speculators to keep their bearish, explains Bloomberg.
Indeed, as shown in the chart below, this week the borrowing cost jumped to the highest in three years, almost as if someone is desperately trying to punish the shorts in a strategy very comparable to what Shkreli did with KBIO, when he bought up 70% of the outstanding stock and then made removed his shares from the borrowable pool, forcing a massive short squeeze.
In its disclaimer warning, Bloomberg writes that the episode, which caught traders by surprise “is one example of the perils of trading on the London Metal Exchange, where contracts are physically settled and speculators can end up paying dearly if they leave their bets without an offsetting position. Money managers are holding a net-short position on the LME, with prices down 23 percent in the past year and no sign of a recovery in Chinese demand.”
Meanwhile, market participants are quietly moving to the sidelines ahead of what may be some serious copper price swings:
“A big trader is probably trying to squeeze the market,” said Gianclaudio Torlizzi, the managing director of T-Commodity srl, a Milan-based consultancy.“It’s an indication the supply side in copper is tightening.”
Bloomberg adds that yesterday was the third Wednesday of the month, when many traders settle their commitments. To renew a short position, traders have to buy back metal while selling it forward. The tom-next spread, a measure of how much the process costs over one day, jumped as high as $30 a metric ton on Tuesday, the highest since May 2012.
The declining amounts of physical copper mean that liquidity in the metal is evaporating, resulting in violent, sharp price swings. The amount of metal available in warehouses has dropped more than 40 percent since August, making it costly to roll shorts.
So who is trying to corner the plunging in price metal? According to Bloomberg, the suspect who controls a large portion of the copper is an unidentified company. “Two firms held 40 to 49 percent of copper inventories and short-dated positions, according to Jan. 19 exchange data that shows holdings as a proportion of available stockpiles. While the LME provides data on the approximate size of large positions, it doesn’t disclose who is behind them.”
One wonders if perhaps the question is not which company is behind the cornering, but rather which country.
Still, no matter who is behind this attempt to artificially push copper prices higher – which may explain the recent industrial metal strength – one can’t help but wonder how it plays out, because there is hardly a “cornering” episode in history that does not end in tears.
And certainly not in copper, where cornering attempts are nothing new, but perhaps few instances of manipulation are quite as infamous as that of “Mr. Copper” Yasuo Hamanaka. For those who are unfamiliar, here is a brief recap of what happened in the mid-1990’s.
The Copper King: An Empire Built On Manipulation
The commodities market has grown in importance since the 1990s, with more investors, traders and merchants buying futures, hedging positions, speculating and generally getting the most out of the complex financial instruments that make up the commodities market. With all the activity, people dependent on futures to remove risk have raised concerns over large speculators manipulating the markets. In this article we’ll look to the past for one of the biggest cases of market manipulation in commodities and what it meant to the future of futures.
The 5%
There is still a sense of mystery surrounding Yasuo Hamanaka, a.k.a. Mr. Copper, and the magnitude of his losses with the Japanese trading company Sumitomo. From his perch at the head of Sumitomo’s metal-trading division, Hamanaka controlled 5% of the world’s copper supply. This sounds like a small amount, since 95% was being held in other hands. Copper, however, is an illiquid commodity that cannot be easily transferred around the world to meet shortages. For example, a rise in copper prices due to a shortage in the U.S. will not be immediately canceled out by shipments from countries with an excess of copper. This is because moving copper from storage to delivery to storage costs money, and those costs can cancel out the price differences. The challenges in shuffling copper around the world and the fact that even the biggest players only hold a small percentage of the market made Hamanaka’s 5% very significant.
The Setup
Sumitomo owned large amounts of physical copper, copper sitting in warehouses and factories, as well as holding numerous futures contracts. Hamanaka used Sumitomo’s size and large cash reserves to both corner and squeeze the market via the London Metal Exchange (LME). As the world’s biggest metal exchange, the LME copper price essentially dictated the world copper price. Hamanaka kept this price artificially high for nearly a decade leading up to 1995, thus getting premium profits on the sale of Sumitomo’s physical assets.
Beyond the sale of its copper, Sumitomo benefited in the form of commission on other copper transactions it handled, because the commissions are calculated as a percentage of the value of the commodity being sold, delivered, etc. The artificially high price netted the company larger commissions on all of its copper transactions.
Smashing the Shorts
Hamanaka’s manipulation was common knowledge among many speculators and hedge funds, along with the fact that he was long in both physical holdings and futures in copper. Whenever someone tried to short Hamanaka, however, he kept pouring cash into his positions, outlasting the shorts simply by having deeper pockets. Hamanaka’s long cash positions forced anyone shorting copper to deliver the goods or close out their position at a premium.
He was helped greatly by the fact that, unlike the U.S., the LME had no mandatory position reporting and no statistics showing open interest. Basically, traders knew the price was too high, but they had no exact figures on how much Hamanaka controlled and how much money he had in reserve. In the end, most cut their losses and let Hamanaka have his way.
Mr. Copper’s Fall
Nothing lasts forever, and it was no different for Hamanaka’s corner on the copper market. The market conditions changed in 1995, in no small part thanks to the resurgence of mining in China. The price of copper was already significantly higher than it should have been, but an increase in the supply put more pressure on the market for a correction. Sumitomo had made good money on its manipulation, but the company was left in a bind because it still was long on copper when it was heading for a big drop.
Worse yet, shortening its position – that is, hedging with shorts – would simply make its significant long positions lose money faster, as it would be playing against itself. While Hamanaka was struggling over how to get out with most of the ill-gotten gains intact, the LME and Commodity Futures Trading Commission (CFTC) began looking into the worldwide copper-market manipulation.
Denial
Sumitomo responded to the probe by “transferring” Hamanaka out of his trading post. The removal of Mr. Copper was enough to bring the shorts on in earnest. Copper plunged, and Sumitomo announced that it had lost over $1.8 billion, and the losses could go as high as $5 billion, as the long positions were settled in a poor market. They also claimed Hamanaka was a rogue trader and his actions were completely unknown to management. Hamanaka was charged with forging his supervisor’s signatures on a form and was convicted.
Sumitomo’s reputation was tarnished, because many people believed that the company couldn’t have been ignorant of Hamanaka’s hold on the copper market, especially as it profited from it for years. Traders argued that Sumitomo must have known, as it funneled more money to Hamanaka every time speculators tried to shake his price.
Fallout
Sumitomo responded to the allegations by implicating JPMorgan Chase and Merrill Lynch. Sumitomo blamed the two banks for keeping the scheme going by granting loans to Hamanaka through structures like futures derivatives. All of the corporations entered litigation with one another, and all were found guilty to some extent. This fact hurt Morgan’s case on a similar charge related to the Enron scandal and the energy-trading business Mahonia Ltd. Hamanaka, for his part, served the sentence without comment.
What a tangled web the global geopolitical situation has become. Geopolitics and finance have always been interrelated but recently much more so. As many readers know, I have speculated we would be hit over the head with a “truth bomb” from the East and most likely from Mr. Putin himself. Just this week Britain has alleged Mr. Putin personally ordered a “hit” on an ex KGB agent for calling him a pedophile http://nypost.com/2016/01/21/murdered-ex-spy-accused-putin-of-pedophilia/ . Another story came out that Turkey shot down a NATO helicopter which made no press coverage at all in the West. Also, Victoria Nuland recently travelled to Russia and was refused an audience by Mr. Putin. This, after John Kerry had a meeting where he went into it saying “Assad must go” and came out saying Mr. Assad can stay … Why all of this now? I would simply say this reeks of desperation and also a VERY dangerous strategy to attack Mr. Putin personally. I say “dangerous” because it raises the likelihood of a response from him. Can you imagine the outrage were Russia to accuse president Obama or the Prime Minister Cameron of Britain for ordering the murder of someone who called them a pedophile?
Just a couple of days ago, President Xi of China met with Iranian leaders one day and then the Saudis the following day. We can only speculate what was discussed but surely oil was the centerpiece. Naturally China wants to make and diversify oil supply deals from them both. We have no proof but I believe it is a very good bet President Xi told the Saudis they would be expected to accept yuan for settlement instead of dollars. There is no denying, the Chinese have done everything in their power to prepare for the dollar being dumped as the world’s reserve currency. You can argue about timing, you cannot argue about “intent” as China/Russia have set up non Western clearing facilities similar to SWIFT but without any Western interference, trade deals, currency hubs, trading banks, and even gold and oil exchanges where the dollar will not be welcome.
The Government Will Never Let It Happen!
And now your overnight FRIDAY morning trades in bourses, currencies and interest rate from Asia and Europe:
Italy Races To Defuse €200 Billion Bad Loan Time Bomb With “Bad Bank”
When Portugal “surprised” senior Novo Banco bondholders with a €2 billion bail-in late last month, the market got an unwelcome reminder that euro periphery banks are far from “solid.”
Novo was supposed to house the “good” assets salvaged from the wreckage of failed lender Banco Espirito Santo, but as it turned out, a lot of those “good” assets were actually bad, and Novo ended up needing to plug a €1.4 billion hole. Initially, the plan was to sell assets but seizing €2 billion from bondholders ended up being a whole lot easier and far more efficient.
News of the bail-in came just a week after Lisbon announced that a second bank – Banif –would need state aid after running out of cash to repay a previous cash injection from the government.
As we head into the weekend, periphery banks are back in the spotlight, only this time in Italy where PM Matteo Renzi is scrambling to put the finishing touches on a plan to guarantee hundreds of billions of NPLs sitting on the books of Italian banks.
Talks with the EU Commission “have already dragged on for two years,” FT notes and need to be concluded over the next few days lest “the whole initiative should collapse.”
Of course Renzi missed what amounted to a deadline on “fixing” the problem under the old rules governing bank resolutions.
One reason the Novo Banco and Banif bail-in and bailout (respectively) were pushed through in what appeared to be a kind of haphazard, ad hoc fashion was because new rules came into effect on January 1 that would have put uninsured depositors on the hook for losses. The same rules require 8% “of a bank’s liabilities to be wiped out before public money can be used,” FT adds.
In short, creditors at Italy’s banks would need to take a hit before Renzi’s government would be allowed to extend state aid. That is unless Italy can devise some kind of end-around, which is precisely what Renzi is attempting to do now.
“Even if approved, the scheme will not be a panacea for the problems afflicting the banks because Italy will have had to limit the impact of the scheme significantly to comply with EU state aid rules,” FT goes on to note. “While previous discussions had focused on the setting up of a sector-wide bad bank, Italy has now shifted to proposing a lighter-touch guarantee system in an attempt to avoid it being designated by the commission as state aid.”
So “state aid” that isn’t “state aid.” Got it.
“Even if we reach a deal over the weekend it would not be decisive… (the bad bank) should have been done before the new rules came into force,” Renzi said on Thursday, acknowledging that Italy may have missed its window.
Shares in Italian banks have been in a veritable death spiral of late but got a bit of respite on Thursday as news of the potential deal crossed the wires. “The situation is much less serious than the market thinks,” Renzi said, in what is perhaps the surest sign yet that things are indeed very serious. He added that his economy minister is “working miracles” to solve the banking sector’s €200 billion euro bad loan problem.
“The recent turbulence around some Italian banks shows that our credit system – solid and strong thanks to Italians’ extraordinarily high household savings – still needs consolidation in order for there to be fewer but stronger banks,” Renzi said in an op-ed for The Guardian. “When the market speaks, as it has done in recent days, it is right that bank executives and shareholders comprehend the need for serious and swift intervention.”

Shares of Monte Paschi – the world’s oldest bank – surged 43% yesterday but as Bloomberg’s Mark Cudmore notes, the stock is still worth less than 1% of its 2007 peak value.
On Friday, things seemed to be moving towards an agreement. “[We’re] working as quickly as we can and we have been working on a continuous basis for months to reach an agreement with the Commission,” Italian FinMin Pier Carlo Padoan said in Davos.
- ITALY, EU DISCUSSING PRICING OF GUARANTEES: PADOAN
- ITALY’S TALKS WITH EU ON BAD BANK DOWN TO ‘DETAILS’: PADOAN
So why is the EU suddenly willing to concede to the plan, Cudmore asks? Well first because this is all unfolding against a backdrop of record low interest rates. If rates were to ever rise (chuckle) then these sour loans would turn even sour-er-er.
Additionally, you might recall that one of the biggest stumbling blocks for Europe during the sovereign debt crisis was the link between the banks and sovereigns. Governments depended on domestic banks to buy their debt, but as borrowing costs rose, the banks took a hit on their government bonds, inhibiting their ability to continuously finance government deficits, creating a decisively negative feedback loop that very nearly drove the PIIGS to the brink of implosion. Well three and a half years after “whatever it takes” and Italy is still sitting on a debt pile that amounts to 133% of GDP. If the banks are saddled with €200 billion in bad loans, they may not be able or willing to roll that debt, which sets the stage for Italian borrowing costs to rise.
Commenting on the EU’s about face, Cudmore notes that “the authorities’ ability to change their mind as the situation evolves may temporarily help reassure the markets, but ultimately it could shake confidence in the euro.”
Right. And Italy’s beleaguered banks aren’t out of the woods yet. “I wouldn’t say it is over,” Francesco Galietti, an analyst at Policy Sonar in Rome told The Guardian. “Everyone is giving the government some extra hours to come up with a solution. Once there is a solution, it will either stabilise the situation or things will come sharply down.”
END
American Depress
(courtesy zero hedge)
Freeport McMoran Is Collapsing (Despite Copper Surge)
Just around half an hour ago, we pointed out that while the rest of the market was surging, one stock – a core commodity bellwether – was not buying it:
Fast forward when things have gone from bad to worse for the copper giant: either biggest holder Icahn is dumping his stake or the “real” economy is not buying this short squeeze in commodities, or China was just “unfixed” yet again…
FCX is down 9% as everything else soars.
US Manufacturing PMI Bounces Despite Drop In Employment Index
US manufacturing PMI printed a preliminary 52.7 for January, boucing from the 38-month lows of December and above expectations as output and new business improved (somewhat aberrantly given every other indication). This is still the 2nd lowest print for US manufacturing since October 2013. It’s not all great news though as job creation dropped to 4-month lows “softer overall employment growth reflected a wait-and-see approach to staff recruitment at the start of the year and, in some cases, the need to focus on efforts to reduce costs.”
Bounce? We will wait for the final print…
Commenting on the flash PMI data, Chris Williamson, chief economist at Markit said:
“The US manufacturing sector found a new lease of life at the start of the year, with growth of factory output and orders both picking up after the slowdown seen late last year.
“Producers appear to have shrugged off worries about China, helped by export orders showing signs of reviving. It looks like weak demand from China is being offset by improved demand for USproduced goods in other markets.
“It’s clearly too early to declare that recent slowdown fears are overplayed, but the sector’s resilience in the face of recent financial market volatility is an encouraging omen for growth and employment in the wider economy, especially as sectors such as transport and business services typically move in the same cycle as manufacturing.”
One wonders just how much of this ‘bounce’ was due to war-effort manufacturing?
end
David Stockman in 5 minutes tells beautifully what we are up against much to the chagrin of his other panelists.
a must view..
(courtesy David Stockman)
David Stockman On CNBC: This Is A Dead Cat Bounce—-We’re At Peak Debt Headed For Recession
by CNBC • January 22, 2016
By CNBC
David Stockman joined CNBC’s Fast Money to discuss why we are at peak debt, and could be headed for a recession.
Watch the video here, or click on the play button in the video below…
http://player.cnbc.com/p/gZWlPC/cnbc_global?playertype=synd&byGuid=3000485766&size=530_298
Source: Stockman: We Are At Peak Debt Headed For a Recession – CNBC
I will leave you tonight, with this terrific exchange with Felix Zulauf as he explains the huge problems facing the globe. Pay special attention to the section on China;
(courtesy zero hedge/Felix Zulauf)
“China 2016 Is US 2008” Felix Zulauf Warns “The Outcome Of A Major Yuan Devaluation Would Be Disastrous”
Submitted by Tyler Durden on 01/22/2016 15:55 -0500



















































