June 3/GLD has a massive 10.71 tonnes added to its inventory (paper deposit) and SLV adds 1,560,000 oz/At the Comex the front June contract adds 7800 oz to the amt standing/Now we have a monstrous 47.29 tonnes standing for gold at the Comex/Dismal jobs reports sends gold and silver flying/German 10 yr bund has a yield of only .068%/The world has now over 10 trilllion in negative yields or 33% of total global issuance/The huge Hong Kong based commodity trader Noble in big trouble as their rights offering is at a discount of 65%/

Good evening Ladies and Gentlemen:

Gold:  $1,240.10 UP $30.30    (comex closing time)

Silver 16.34  up 34 cents

In the access market 5:15 pm

Gold $1244.20

silver:  16.41


i) the June gold contract is an active contract and the second biggest delivery month of the year following December. Friday night, the bankers first day delivery issuance to our longs to be settled on June 1 was huge: the number was  3,508 gold notices for 350,800 oz or 10.9 tonnes of gold. On day two, we had another huge number of gold notices filed at 2281 for 228100 oz or 7.09 tonnes of gold.On day 3,YESTERDAY, we had another whopper of 1969 notices for 196,900 oz or 6.12 tonnes.TODAY, we had another huge 1026 notices filed for 102600 oz (3.19 tonnes) Thus in 4 days a total of 8,784 notices have been filed for 878,400 oz or 27.32 tonnes. WHAT IS MORE FASCINATING WAS THE FRONT JUNE MONTH INCREASED IN NET OI BY 678 CONTRACTS YESTERDAY.  TODAY IT INCREASED BY 78 CONTRACTS OR 7800 OZ. THE ENTITY STANDING DOES NOT WANT FIAT AND IT SURE LOOKS LIKE A SOVEREIGN (CHINA) IS STANDING FOR GOLD. As I stated yesterday: “there is no question that the bankers have uttered these words to one another: “Houston, we have a problem in gold.”

Let us have a look at the data for today


Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 269.31 tonnes for a loss of 34 tonnes over that period


In silver, the total open interest FELL by 1912 contracts DOWN to 195,605 DESPITE THE FACT THAT THE PRICE OF SILVER WAS UP by 9 cents with respect to YESTERDAY’S trading.In ounces, the OI is still represented by just under 1 BILLION oz i.e. 0.978 BILLION TO BE EXACT or 139% of annual global silver production (ex Russia &ex China)

In silver we had 0 notices served upon for nil oz.

In gold, the total comex gold OI FELL by a CONSIDERABLE 5,698 contracts DOWN to 481,096 as the price of gold was down $2.10 with YESTERDAY’S trading(at comex closing).


With respect to our two criminal funds, the GLD and the SLV:


Two biggies!! in GLD

a)We had a good size deposit in gold inventory at the GLD  at 4.46 tonnes late last night   and no doubt that this was a paper deposit. The inventory rested early this morning at 875.20 tonnes. .


b) then late tonight a massive paper deposit of: 6.25 tonnes/Thus GLD rests this weekend at 881.44 tonnes/  TOTAL GAIN TONIGHT:  10.71 TONNES


And now for SLV


We had a gigantic deposit of 1,560,000 oz in silver inventory at the SLV/Inventory rests at 337.299 million oz. No doubt that this is also a paper entry of a deposit.


Both the GLD and SLV are massive frauds as they have no metal behind them!



First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FALL by 1912 contracts DOWN to 195,605 as the price of silver was UP by 9 cents with YESTERDAY’S trading. The gold open interest FELL by 5,698 contracts DOWN to 481,096 as gold was down $2.90 YESTERDAY.

(report Harvey).


2 a) Gold trading overnight, Goldcore

(Mark OByrne/off today

2b)  Gold trading earlier this morning;

(Mark OByrne and zero hedge)

3c) FRBNY gold report on Germany’s repatriation of gold

repeat from yesterday



i)Late  THURSDAY night/ FRIDAY morning: Shanghai closed UP  BY 13.45 PTS OR 0.46%  /  Hang Sang closed UP 88.02 OR 0.42%. The Nikkei closed UP 79.68 POINTS OR 0.48% . Australia’s all ordinaires  CLOSED UP 0.76% Chinese yuan (ONSHORE) closed DOWN at 6.5873 .  Oil FELL to 49.17 dollars per barrel for WTI and 49.98 for Brent. Stocks in Europe ALL IN THE GREEN(EXCEPT SPAIN) . Offshore yuan trades  6.5935 yuan to the dollar vs 6.5873 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS) 




none today


none today


i) Former Deutsche bank traders have been indicted in the USA for Libor transgressions.

For fines will be leveled against DB!



ii)Then we witness the following:  Is Deutsche having liquidity problems?

( zero hedge)


iii)Wow!! German bunds realizing that the world is cratering, witness its 10 yr bond yield falling to only 6.5 basis!!.You read that correctly: 0.065% for 10 years.

The world is falling apart!!

( zero hedge)


none today


The total of all global debt is around 30 trillion USA dollars equivalent.  Now for the first time we see that negative yielding debt surpasses 10 trillion dollars equivalent or 33% of total debt. If the USA raises rates this will push other nations further into negativity.  Since USA bonds and bills represent almost 70% of the positive yields, it is ironic that everybody will flock to the uSA bonds for its positive yield!!!.

(courtesy zero hedge)


The higher oil price has done the unthinkable: new rigs have entered the scene to extract the oil

( zero hedge)



a)Venezuela is such a sad case.  Daniella DiMartino Booth describes the devastation and a history account as to how this happened to the broken country.

( DiMartino Booth/Reuters)

b)Just take a look at their tap water!!

(courtesy zerohedge)


i)Gold trading early this morning skyrockets to over $1240.00 from 1212 as the June odds of a rate hike just crashed to 2% and July’s odds down to 36%.  The USA dollar dropped badly and the bond yields, already at their low point spiked further southbound!

( zero hedge)
ii)This does not look good for Asia’s biggest commodity trader, Hong Kong based  Noble Industries as they just did a rights offering at a huge 63% discount.  Two days after the CEO abruptly left, the Chairman of the Board Ellman also leaves.  It looks like these guys have no unencumbered assets left to pledge to the bank.  This is why they are selling their only prized asset:  Noble Energy!
( zero hedge)
iii)Quite a story.  Butler is of the view that JPMorgan has acquired 500 million oz of silver despite being the massive short in silver.  I have my doubts on this, just because of the massive criminality of acquiring metal while being that short.  Maybe JPMorgan is holding the silver on behalf of the Chinese government who lent the USA its silver to get favoured nation status when the USA ran out of silver from the Manhattan project?

Anyway here is Ted Butler’s thesis on the silver matter!
( Ted Butler)

iv)Alasdair Macleod talks about the crookedness of the gold/silver comex casino( Alasdair Macleod)


v)Persson discusses why Singapore is a great place to store your gold bullion:

( Persson/Bullion Star

vi)Ballanger is certainly correct:  Technical analysis is certainly useless in gold and silver markets.

( Michael Ballanger/GATA)



i)The big story:  official story is payrolls with a huge miss as they only “added” 38,000 new jobs.

( BLS/zero hedge)


ii)Now for the real story:

First:  Americans not in  the labour force surged by a huge 664,000 jobs. The total is now 94.7 million souls not working!  The unemployment then lowers to 4.7%.  The participation rate in the labour force is down to only 62.6%

( zero hedge)

ii) the trend for hiring part timers increases.  Just wait until the real cost of Obamacare hits as firms release full time workers and replace them with part timers.

( zero hedge)

B.Since 2014, the USA has added 455,000 waiters and bartenders and lost 10,000 manufacturing workers:

( zero hedge)


iv)Goldman is the first out of the box to lower the odds for a rate hike:

( zero hedge)

v)As always minimum wage jobs produced the highest job growth.  Almost half of all job sectors posted a decline.   The biggest job sector gain:  Health services i.e. Obamacare.

( zero hedge)

vi)Rick Santelli explains the ludicrous Fed policy for the mess that the uSA is in:

( zero hedge)
vii)The all important USA service PMI/ISM numbers plunged to its lowest levels since Feb 2014.  Remember services are a big part of the USA GDP

x) Tonight’s wrap up courtesy of Greg Hunter/USAWatchdog/


Let us head over to the comex:

The total gold comex open interest FELL to an OI level of 481,096 for a LOSS of 5,698 contracts AS THE PRICE OF GOLD WAS DOWN $2.10 with respect to YESTERDAY’S TRADING.  WE HAVE ENTERED THE SECOND BIGGEST DELIVERY MONTH OF THE YEARTHAT IS JUNE, A VERY ACTIVE MONTH. For the past two years, we have strangely witnessed two interesting developments and we have generally seen two phenomena happen respect to the gold open interest:  1) total gold comex collapses in OI as we enter any delivery month  and 2) a continual drop in the amount of gold standing in that month as that month progresses. IN THE MONTH OF MAY THE LATER HAD STOPPED. DURING THE MAY WE DID WITNESS A GRADUAL RISE IN AMOUNT STANDING AND THE AMOUNT STANDING AT THE CONCLUSION OF THE MONTH FINISHED AT ITS ZENITH..  IN JUNE, ON FIRST DAY NOTICE WE HAVE CERTAINLY WITNESSED THE FORMER, A HUGE LOSS OF TOTAL OPEN INTEREST CONTRACTS FOR THE ENTIRE GOLD COMEX COMPLEX . IN A VERY SURPRISING TURN OF EVENTS  AGAIN TODAY, THE JUNE OPEN INTEREST ROSE WHICH CERTAINLY SUGGESTS A MAJOR ENTITY IS STANDING AND MOSTLY LIKELY A SOVEREIGN LIKE CHINA

The FRONT gold contract month of June saw it’s OI fall to 7445 for a loss of 1891 contracts. We had 1969 notices filed yesterday, so we GAINED 78 contracts or 7800 additional oz   standing FOR METAL. The next active contract month is July and here we saw it’s OI FALL by 139 contracts DOWN to 2665. The next big active contract month is August and here the OI FELL by 5,013 contracts DOWN to 345,435. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was GOOD at 260,211. The confirmed volume  yesterday (which includes the volume during regular business hours + access market sales the previous day was poor at 120,408 contracts. The comex is not in backwardation.

Today we had a another monstrous 1026 notices filed for 102,600 oz in gold.(3.19 tonnes)


And now for the wild silver comex results. Silver OI FELL by 1912 contracts from 197,517 DOWN to 195,605 DESPITE THE FACT THAT   the price of silver was UP BY 9 cents with YESTERDAY’S TRADING. The front month of June saw it’s OI fall by 200 contracts down to 349. We had 199 notices filed yesterday, so we lost only 1  contract or 5,000 additional oz that will not stand for delivery. The next big delivery month is July and here the OI fell by 3,529 contracts DOWN to 119,391. The volume on the comex today (just comex) came in at 67,485 which is EXCELLENT. The confirmed volume YESTERDAY (comex + globex) was very good at 46,905. Silver is not in backwardation . London is in backwardation for several months.
We had 0 notices filed for nil oz.

JUNE contract month:

INITIAL standings for JUNE

June 3.
Withdrawals from Dealers Inventory in oz   1400.01 OZ


Withdrawals from Customer Inventory in oz  nil  771.624oz


Deposits to the Dealer Inventory in oz 4799.885 OZ


Deposits to the Customer Inventory, in oz    50,439.657 OZ




No of oz served (contracts) today 1026 contracts
(102,600 oz)
No of oz to be served (notices) 6419 contracts

641,900 oz

Total monthly oz gold served (contracts) so far this month 8784 contracts (878,400 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   1400.01 OZ
Total accumulative withdrawal of gold from the Customer inventory this month  11819.4 OZ

Today we had 1 dealer withdrawal

I) OUT of BRINKS;  1400.01  OZ  (the 1400.01 was to appease me)

total dealer deposit:  1400.01 0z


Today we had 0 dealer withdrawals:

total dealer withdrawals:  nil oz


Today we had 2 customer deposits:

i) Into Brinks: 2411.75 oz (75 kilobars)

ii) Into HSBC: 48,028.407 oz  (legit.)

Total customer deposits;  50,439.657 OZ

Today we had 1 customer withdrawals:

I) OUT OF HSBC:  771.624 OZ

total customer withdrawals: 771.624 OZ

Today we had 4 adjustments and they were dandies!

First adjustment:


We had 48,225.000 oz leave the customer and enter the dealer account at Brinks.



AT the HSBC facility: (INTO DEALER ACCT)

we had 165,899.16oz leave the customer account and enter the dealer account at HSBC

Total amount entering the dealer:214,124.16 oz or 13.32 tonnes



We had 96.618 oz leave the dealer account and enter the customer account and this would no doubt be a settlement:




we had 16,121.97 oz of gold leave the dealer account and enter the customer account of Delaware and this would be a settlement


total amount of gold leaving the dealer account and entering the customer: 16,218.588 oz  

OR  .5044 TONNES

Net to the dealer account:  13.32 tonnes- .5044 tonnes = 12.816 tonnes

Today, 0 notices was 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 1026 contracts of which 436 notices was stopped (received) by JPMorgan dealer and 256 notices was stopped (received)  by JPMorgan customer account. 
To calculate the initial total number of gold ounces standing for the JUNE contract month, we take the total number of notices filed so far for the month (8784) x 100 oz  or 878,400 oz , to which we  add the difference between the open interest for the front month of JUNE (7445 CONTRACTS) minus the number of notices served upon today (1026) x 100 oz   x 100 oz per contract equals 1,520,300 oz, the number of ounces standing in this active month.  This number is EXTREMELY huge for JUNE.  THE AMOUNT STANDING FOR GOLD IN MAY HELD THROUGHOUT THE MONTH AND ACTUALLY INCREASED AS THE MONTH PROCEEDED. AND IT SURE LOOKS LIKE IT WILL HAPPEN AGAIN IN JUNE.  THE BANKERS JUST RECEIVED THEIR MINSKY MOMENT!! 
Thus the INITIAL standings for gold for the JUNE. contract month:
No of notices served so far (8784) x 100 oz  or ounces + {OI for the front month (7445) minus the number of  notices served upon today (1026) x 100 oz which equals 1,520,300 oz standing in this   active delivery month of JUNE (47.287 tonnes).
I would expect that we will have some paper players standing for fiat bonus on settlement early.  The fun will begin when these guys are all exhausted.
Since the comex allows GLD shares to be used for settling, it may take quite a while for the physical gold to enter the comex vaults.  So far I have seen little evidence of any settling of contracts but I will continue to monitor it for you. 
We thus have 47.287 tonnes of gold standing for JUNE and 41.01 tonnes of registered gold for sale, waiting to serve upon those standing.  The bankers are still doing their best in cash settling as there is not enough registered gold to satisfy those that are standing.
We now have partial evidence of gold settling for last months deliveries We now have 6.889 TONNES FOR MAY + 47.287 TONNES FOR JUNE + 12.3917 tonnes (April) +2.2311 tonnes (March) + 7.99 (total Feb)- .940 (probable delivery on March 1) tonnes -.0434 tonnes (March 11,12,17,18) + March 31: 1.2470 and then  April 1,2: – .0006 tonnes  and last week April 16 .3203 and April 22 .(0009 tonnes) + april 29  .205 tonnes + May 5:  3.799 and May 6: 1.607 tonnes – MAY 12  .0003- May 18: 1.5635 tonnes-May 19/   2.535 tonnes-May 27 .0185 – .024 TONNES MAY 31 -jUNE 4: .5044   = 63.99 tonnes still standing against 41.01 tonnes available.
Total dealer inventor 1,615,045/719 tonnes or 47.12 tonnes
Total gold inventory (dealer and customer) =8,658,317.910 or 269.31 tonnes 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 229.31 tonnes for a loss of 34 tonnes over that period. 
JPMorgan has only 22.79 tonnes of gold total (both dealer and customer)
JPMorgan now has only .900 tonnes left in its dealer account.
And now for silver

June initial standings

 June 3.2016

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory  60,002.36 oz


Deposits to the Dealer Inventory NIL


Deposits to the Customer Inventory  NIL


No of oz served today (contracts) 0 CONTRACTS 

nil OZ

No of oz to be served (notices) 349 contracts

1,745,000 oz

Total monthly oz silver served (contracts) 202 contracts (1,010,000 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  11,147,757.8 oz

today we had 0 deposit into the dealer account


total dealer deposit:NIL oz

we had 0 dealer withdrawals:

total dealer withdrawals:  nil


we had 0 customer deposits:



Total customer deposits: NIL oz.


We had  customer withdrawals


ii) Out of Scotia: 60,002.36 oz


total customer withdrawals:  60,002.36 oz



 we had 2 adjustments AND ONE WAS A DANDY!

i) Out of DELAWARE:  980.02 oz was adjusted out of the customer and this landed into the dealer account of CNT.

ii) Out of BRINKS;  3,487,867.97 oz was adjusted out of the dealer and this landed into the customer account of Scotia

this too no doubt is a settlement.



The total number of notices filed today for the JUNE contract month is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in JUNE., we take the total number of notices filed for the month so far at (202) x 5,000 oz  = 1,010,000 oz to which we add the difference between the open interest for the front month of JUNE (349) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing 
Thus the initial standings for silver for the JUNE contract month:  202 (notices served so far)x 5000 oz +{349 OI for front month of JUNE ) -number of notices served upon today (0)x 5000 oz  equals  2,755,000 of silver standing for the JUNE contract month.
We lost 1 contract or an additional 5,000 oz will not stand for delivery in this non active month of June.
Total dealer silver:  23.146 million  (RECORD LOW INVENTORY)
Total number of dealer and customer silver:   154.001 million oz
The open interest on silver is NOW AT CLOSE an all time high with the record of 207,394 being set May 18.2016. The registered silver (dealer silver) is NOW AT  multi year lows as silver is being drawn out and heading to China and other destinations. The shear movement of silver into and out of the vaults signify that something is going on in silver.
At 3:30 pm the CME releases the CME report which gives position levels of our major players. Last week we saw a major shift of gold as the commercials covered some of their shortfall.
Gold COT:
Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
274,589 77,454 38,761 133,624 347,662 446,974 463,877
Change from Prior Reporting Period
-16,677 -7,180 -14,012 -12,581 -23,756 -43,270 -44,948
162 97 83 48 62 253 207
  Small Speculators      
  Long Short Open Interest    
  47,347 30,444 494,321    
  -5,367 -3,689 -48,637    
  non reportable positions Change from the previous reporting period  
COT Gold Report – Positions as of Tuesday, May 31, 2016

Our large specs:


Those large specs that have been long in gold pitched a huge 16677 contracts from their long side, after being raided by the crooked banks.

Those large specs that have been short in gold covered 7180 contracts from their short side.


Our commercials

Those commercials that have been long in gold pitched a huge 12,581 contracts from their long side

Those commercials that have been short in gold  covered a whopping 23,756 contracts from their short side.  (Thus 2 consecutive huge short covering)

Our small specs;

Those small specs that have been long in gold pitched 5367 contracts from their long side.

Those small specs that have been short in gold pitched 3689 contracts from their short side.

Conclusion:  commercials go net long and thus bullish  (net  long by 11,175)


And now for our silver COT

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
89,815 28,184 20,142 59,970 135,935
-7,427 -3,174 -315 873 -1,455
94 60 40 37 44
Small Speculators Open Interest Total
Long Short 198,118 Long Short
28,191 13,857 169,927 184,261
1,305 -620 -5,564 -6,869 -4,944
non reportable positions Positions as of: 149 130
  Tuesday, May 31, 2016

 Our large specs;

Those large specs that have been long in silver, pitched a huge 7427 contracts from their long side after being mauled by the commercials.

Those large specs that have been short in silver covered 3174 contracts from their short side.

Our commercials:


Those commercials that have been long in silver added 873 contracts to their long side

Those commercials that have been short in silver covered 1455 contracts from their short side.


Our small specs;

Those small specs that have been long in silver added 1305 contracts to their long side

Those small specs that have been short in silver pitched 620 contracts from their short side.



  1. Commercials go net long by 2328 contracts
  2. they are having an awful time trying to cover their shortfall.
  3. next weeks data should also be very telling
And now the Gold inventory at the GLD
June 3/ We had two big  sized deposits of 4.46 tonnes early this morning and then another 6.24 tonnes late tonight/ new GLD total: 881.44 tonnes  (total: 10.7 tonnes)
June 2/no change in gold inventory at the GLD.Inventory rests at 870.74 tonnes
June 1.2016/ a good sized deposit of 2.08 tonnes/Inventory rests at 870.74 tonnes
May 27/no change in gold inventory at the GLD/Inventory rests at 868.66 tonnes
May 26./no change at the GLD/Inventory rests at 868.66 tonnes
May 25./no change in gold inventory at the GLD/Inventory rests at 868.66 tonnes
MAY 24/ a good sized withdrawal of 3.86 tonnes of paper gold from the GLD/Inventory rests at 868.66 tonnes
May 23./this is rather impossible: another huge deposit of 3.26 tonnes into the GLD with the price of gold down again today?/inventory rests at 872.52 tonnes
May 18 /no changes in inventory at the GLD/Inventory rests at 855.89 tonnes.
May 17/ we had a huge deposit of 4.76 tonnes of gold into the GLD/Inventory rests tonight at 855.89 tonnes/in the last two and 1/2 weeks we have added 50 tonnes of gold and this most likely was all paper gold addition..
May 16./ today we had no changes in inventory at the GLD/Inventory rests at 851.13 tonnes
May 13./another addition of 5.94 tonnes of gold into the GLD/Inventory rests at 851.13 tonnes
May 12/another huge deposit of 3.27 tonnes in gold inventory at the GLD/inventory rests at 845.19 tonnes
May 11/another huge deposit of 2.67 tonnes in gold inventory at the GLD/Inventory rests at 841.92 tonnes
May 10/Another huge deposit of 2.38 tonnes in gold inventory at the GLD/Inventory rests at 839.25 tonnes
May 9/Surprisingly we had another deposit of 2.68 tonnes of gold into the GLD with gold down!! Inventory 836.87 tonnes

June 3.:  inventory rests tonight at 881.44 tonnes


Now the SLV Inventory
June 3/ a huge deposit of 1.56 million oz was added to the SLV inventory/new inventory rests at 337.299 million oz
June 2/no change in silver inventory at the SLV/Inventory rests at 335.739 million oz
June 1/no change in silver inventory at hte SLV/inventory rests at 335.739  million oz
May 27/no change in silver inventory at the SLV/Inventory rests at 335.739 million oz/
May 26./ no change in silver inventory at the SLV/Inventory rests at 335.739 million oz
May 25./no change in silver inventory at the SLV/Inventory rests at 335.739
MAY 24/no change in inventory at the SLV/Inventory rests at 335.739 million oz
May 23./we had a small withdrawal of 285,000 oz and that generally means payment of fees.Inventory rests at 335.739 million oz
May 19/no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz
May 18/no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz/
May 17/no change in silver inventory at the SLV/Inventory rests at 335.073 million oz/
May 16./no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz
May 13./no change in silver inventory at the SLV/inventory rests at 335.073 million oz
May 12/no change in silver inventory/rests tonight at 335.073 million oz/
 May 11.2016/no change in silver inventory/rests tonight at 335.073 million oz/
May 10.2016/we had a huge withdrawal of 1.046 million oz in silver leaving the SLV,no doubt for Shanghai which lately has been gobbling up whatever inventory it could lay its hands on/Inventory rests at 335.073 million oz.
May 9. no change in silver inventory/rests at 336.119 million oz.
June 3.2016: Inventory 337.299 million oz

NPV for Sprott and Central Fund of Canada

will update on this site later tonight/

1. Central Fund of Canada: traded at Negative 2.8 percent to NAV usa funds and Negative 2.9% to NAV for Cdn funds!!!!
Percentage of fund in gold 62.1%
Percentage of fund in silver:36.5%
cash .+1.4%( June 3/2016). /
2. Sprott silver fund (PSLV): Premium RISES to +0.27%!!!! NAV (June 3.2016) 
3. Sprott gold fund (PHYS): premium to NAV  rises TO +1.63% to NAV  ( June 3.2016)
Note: Sprott silver trust back  into POSITIVE territory at +27% /Sprott physical gold trust is back into positive territory at +1.63%/Central fund of Canada’s is still in jail.
It looks like Eric Sprott got on the nerves of our bankers as they lowered the premium in silver to +.27%.  Remember that Eric is to get 75 million dollars worth of silver in a new offering.


Federal Reserve Bank of New York Report on Earmarked Gold Transferred out of the Facility


The Month of April saw a reading of 7,951 million dollars worth of gold valued at $42.22 per oz

The previous reading in March saw a reading of 7,981 million dollars worth of gold valued at $42.22/ oz

Thus we had a rather large 30 million dollars worth of gold (at 42.22 per oz) leave NY.

In ounces, we had 30 million /42.22 dollars = 710,563 oz leave or 22.10 tonnes

Since Germany is the only official nation that asked for its repatriation, then we are pretty sure that this gold belongs to them.  The previous month saw a little over 10 tonnes so Germany is quite anxious to get more of its gold onto its shores.


And now your overnight trading in gold,FRIDAY MORNING and also physical stories that may interest you:

Trading in gold and silver overnight in Asia and Europe
Mark O’Byrne (Goldcore)

Physical Silver Bullion – Perfect Storm Brewing in the Market

The physical silver bullion market is seeing a “perfect storm” brewing according to an article replete with some recent videos about the silver market by Rory Hall of the precious metals website, The Daily Coin.

From the Daily Coin:

Silver has been money longer than gold. Silver is called the “people’s money”, while gold is called the “money of kings”.

In the U.S., silver was an integral part of our monetary system until 1964 when it was gradually removed from coins. This change has not slowed the depletion of above ground silver stocks, nor has it changed the volume of silver being used, on a global scale, for everything from computers, TV’s, cell phones, bombs and solar panels to name but a few. Silver is vital manufacturing material in today’s world and, as stated, is money.

This is to say nothing of the investment demand that has exploded over the course of the past ten years. Investment demand for silver coins and bars has never been higher. The U.S. Mint, Royal Canadian Mint and Perth Mint all set new records for silver in 2015. All three of these mints are on pace for another new record in 2016. Physical silver is in high demand for every purpose in which it can be used.

Let’s review some of what we know to be absolute facts regarding physical silver in 2015-2016 and beyond.

  • China and India both have massive solar energy programs for each country – which requires, literally, tons of silver
  • China alone will produce over 100GW (gigawatts) of solar power by 2020 (they are currently way ahead of this deadline and may increase the amount of solar power they produce) – this will power some 300 million homes (100 million U.S. equivalent)
  • Morocco has plans to energize over 1 million households with solar power by 2018

As noted in the following interviews with Jeff Brown, China Rising, China has been importing raw silver dora bars as well as silver ore/concentrates. This means China will take all the physical silver available in whatever form is readily available. This is to say nothing of the fact that China mines approximately 100 million ounces of silver annually on her own soil!! That is massive demand for a single item.

Solar Energy Drives Silver Demand in China

Unlocking the Secrets to China’s Silver Demand

If we look at the mining industry, which is how silver comes to market, we see an industry that has been abused, unloved and drained of capital inflows for the past 3-5 years. Without mining companies digging silver out of the ground silver will be completely depleted and we will only be left with above ground inventory. This will never happen, but the mining industry is a capital intensive industry and without new inflows of capital, either from the sale of their product, at a profit, or investment capital, mines begin struggling and, in a lot of cases, will slow down or shut down the operation very quickly.

This has been the case over the past several years.

  • China is buying, outright, or acquiring controlling shares of mines around the world – primarily gold mines, but probably silver mines as well
  • First Majestic, a primary silver mining company was recently contacted by a large technologies manufacturer to directly purchase silver from the source
  • U.S. Mint has, not only sold out 100% of their stock on three different occasions in the last three years, but have been rationing sales of American Silver Eagles since June 2015 with no sign of change for the near future
  • U.S. Mint has set new all time sales records of American Silver Eagles for the past three straight and is on pace for another all time sales record in 2016 (personally I believe the U.S. Mint will manage their inventory and avoid a new record in 2016)
  • Royal Canadian Mint has set new all time sales records for Silver Maple Leafs for the past two consecutive years and is currently on pace to three-peat
  • Royal Canadian Mint (RCM), like the U.S. Mint has struggled over the past two years to keep up with demand. RCM, like the USMint sold out of product and had to shut down operations until they could produce enough product to reopen.
  • RCM was completely sold out of 10 oz. silver bars between June 2015 and February 2016 due to a lack of product to produce the bars!
  • Perth Mint, in Australia, set a new all time sales record in 2015 and is on pace to repeat in 2016

The interview below, with CEO, First Majestic, Keith Neumeyer was recorded on April 24, 2016. Keith, while not naming the company, explains how his silver mining company was contacted regarding a direct line of silver for one of the large technology manufacturers.

Silver, More Rare Than the Market Understands

As you can see owning physical silver may be to your advantage. While the most popular silver coins in the world are setting new sales records, entire nations are implementing silver dependent energy sources (solar) and the companies that can actually deliver the raw material are slowing or shutting down; this makes for a perfect storm in the silver market.

One last thing. On January 28, 2016 the silver futures market and the silver spot market (this is where the exchange rate (price) of silver is set) experienced a “glitch”. The market shut down for approximately 15 minutes while the “market makers” were attempting to sort out an anomaly that had occurred. The “glitch” was an $0.80 difference in the future contract price and the spot price of silver. This was a failure of epic portions by the people controlling the silver market. Just a few weeks later, Deutsche Bank, was found to have rigged both the silver and gold markets and within 24 hours of this unprecedented decision there were two civil class-action lawsuits brought against Deutsche Bank totaling over $1 billion.

Bill Murphy: All about the Physical Market

The bullion banking cabal is in trouble. The physical silver market is on fire with demand. Physical silver supply is strained. The storm grows stronger by the day.

Got silver coins and bars?

Read the article on the Daily Coin here

We recently re released our comprehensive silver interview with Jan Skoyles in which we discuss many of the key fundamentals alluded to by Rory Hall. Nothing has changed and arguably the fundamentals are even more bullish today than they were then.

The Get Real Silver interview with the astute Jan Skoyles looks at why silver is set to soar again and the vital importance of owning physical silver coins (now VAT free in UK and EU) and silver bars. It can be watched here:

GoldCore: Why Silver Bullion Is Set To Soar

Recent Market Updates
– Martin Wolf: There Will Be Another “Huge” Financial Crisis
– Silver Price To Surge 800% on Global Industrial and Technological Demand
– BREXIT Gold Diversification As Vote Fuels Market Uncertainty
– Gold Forecasts Revised Higher – Citi Says “Buy the Dip”
– Gold Should Rise Above $1,900/oz -“Get In Now!”
– World’s Largest Asset Manager Suggests “Perfect Time” For Gold
– Gold As “Extremely Low-Risk Asset” – Rogoff Advises Creditor Nations
– Silver – “Best Precious Metals Trade”

Breaking News and Commentary
‘Brexit’ could see FTSE sink by over 10%: UBS analyst (CNBC)
UBS Wealth: Brexit could hammer pound to 1985 levels (FT)
Gold dips, on track for fifth straight weekly decline (Reuters)
Gold little changed after ECB; U.S. labour data in focus (Reuters)
Clinton says Donald Trump unfit to have finger on nuclear trigger (Telegraph)

Silver Is “Investment opportunity of a lifetime” – Butler (Silver Seek)
Silver Will Move The Most of All The Metals (Daily Coin)
Massive Movements of Gold and Silver Inside COMEX (Harvey Organ)
Why Technical Analysis Does Not Work for Gold and Silver (24h Gold)
Gold: Short Term Pain, Long Term Gain (Forbes)
Read More Here


Gold Prices (LBMA AM)
03 June: USD 1,211.00, EUR 1,086.63 and GBP 839.34 per ounce
02 June: USD 1,215.50, EUR 1,085.32 and GBP 842.10 per ounce
01 June: USD 1,216.25, EUR 1,090.00 and GBP 841.77 per ounce
31 May: USD 1,210.50, EUR 1,087.39 and GBP 829.07 per ounce
30 May: No Fix as Spring Holiday in UK
27 May: USD 1,221.25, EUR 1,092.16 and GBP 833.50 per ounce

Silver Prices (LBMA)
03 June: USD 16.10, EUR 14.45 and GBP 11.17 per ounce
02 June: USD 15.98, EUR 14.27 and GBP 11.07 per ounce
01 June: USD 15.95, EUR 14.30 and GBP 11.04 per ounce
31 May: USD 16.06, EUR 14.40 and GBP 10.99 per ounce
30 May: No Fix as Spring Holiday in UK
27 May: USD 16.30, EUR 14.58 and GBP 11.12 per ounce

Mark O’Byrne
Gold trading early this morning skyrockets to over $1240.00 from 1212 as the June odds of a rate hike just crashed to 2% and July’s odds down to 36%.  The USA dollar dropped badly and the bond yields, already at their low point spiked further southbound!
(courtesy zero hedge)

Gold trading early this morning from the USA

The worst jobs data since September 2010 has thrown ice cold water on The Fed’s decision-making process and thrown a spanner in the market’s narrative that everything is awesome. June rate hike odds crashed to 2% and July rate-hike odds plunged from 48% to 36%. The reaction to this sudden revelation of reality is striking asstocks plunge, gold soars, the US Dollar dumps and bond yields spike lower…

Rate hike odds have plunged…

And the reaction is ugly…


As Gold Soars most in 3 months…


Charts: Bloomberg

This does not look good for Asia’s biggest commodity trader, Hong Kong based  Noble Industries as they just did a rights offering at a huge 63% discount.  Two days after the CEO abruptly left, the Chairman of the Board Ellman also leaves.  It looks like these guys have no unencumbered assets left to pledge to the bank.  This is why they are selling their only prized asset:  Noble Energy!
(courtesy zero hedge)_

Asia’s Largest Commodity Trader Just Sold Stock At A 63% Discount

Quite a story.  Butler is of the view that JPMorgan has acquired 500 million oz of silver despite being the massive short in silver.  I have my doubts on this, just because of the massive criminality of acquiring metal while being that short.  Maybe JPMorgan is holding the silver on behalf of the Chinese government who lent the USA its silver to get favoured nation status when the USA ran out of silver from the Manhattan project?
Anyway here is Ted Butler’s thesis on the silver matter!
(courtesy Ted Butler)

Hidden in Full View

Theodore Butler


June 2, 2016 – 10:27am

After studying the silver market closely for more than three decades, I find it nearly unbelievable that its single most important price factor is widely unknown. Admittedly, the vast majority of the investment world has little interest in silver and that’s unlikely to change any time soon. But underappreciation has its merits in the investment world.  After all, silver does have a history of climbing in price higher and faster than just about any other asset and a multitude of factors now point to another massive price move higher ahead.

The factors favoring a big move higher revolve around the incredibly small amount of physical silver available for investment as a result of most of the silver produced over the centuries having been used up in industrial applications. That, in combination with the fact that more investment buying power exists today than ever in the history brings to mind the words of the famous silver speculator, Bunker Hunt, “silver is an accident waiting to happen.”  Granted, silver also has a history of plunging more than other commodities, but since prices have already declined by 70% from the peak of five years ago, the next big move will, undoubtedly, be up.

Still, even among those who follow silver closely, remarkably little is mentioned about the one factor that just about guarantees much higher silver prices ahead. That factor is that the US’s biggest and most important bank, JPMorgan Chase, has accumulated the largest privately owned stockpile of physical silver in world history over the past five years – 500 million ounces. Only the US Government owned more silver than JPMorgan, but that was nearly a century ago and came when silver was used in common coinage. The US Government once owned several billion ounces of silver, but today holds no silver, having completely eliminated its holdings.

Further, the US Government never held silver with the intent of seeking a profit. In contrast, the only reason JPMorgan has acquired half a billion ounces of actual silver is for the express purpose of making as much of a profit as possible. By simple logic, JPMorgan will make the largest possible profit on its silver holdings only if the price of silver climbs to the highest levels possible. Simple reasoning also dictates that those holding silver, along with JPMorgan, will profit immensely when the bank does what it can to insure the highest possible price for silver. I’ll get into what JPMorgan must do to insure the highest possible price for silver in a moment, but first let me establish that the bank has acquired 500 million ounces of metal.

Most people think of banks as being involved in mortgages and checking accounts and are surprised at first at the thought that JPMorgan even deals in commodities, like silver.  But the truth is that for many years, JPMorgan has been the largest US bank dealing in Over the Counter (OTC) commodity derivatives contracts in gold and silver. Even though JPMorgan always dealt big in commodities, its path to accumulating half a billion ounces of actual silver took a very specific and traceable route.

In addition to being the largest dealer in OTC precious metals derivatives contracts, JPMorgan was suddenly thrust into the role of being the largest dealer in gold and silver on the COMEX, as a result of being asked (by the US Treasury and Federal Reserve) to take over the failing investment banking firm Bear Stearns in March 2008. Few knew at the time that Bear Stearns was the largest short seller in COMEX gold and silver and its takeover by JPMorgan resulted in JPM being thrust into the role of it being the biggest short seller.

While it would appear that JPMorgan came to acquire Bear Stearns by government request, data from a different government agency, the CFTC, clearly indicate that JPMorgan came to dominate and manipulate silver pricing by means of maintaining and adjusting the largest concentrated short position in COMEX silver futures. (For the record, I complained to the regulators that what JPMorgan was doing was manipulative to silver prices and succeeded in generating a CFTC investigation into the matter. Still, the manipulation continued).

As a result of being able to sell short virtually unlimited quantities of COMEX silver futures contracts as prices rose and then buying back those contracts as it then caused prices to fall, JPMorgan made many hundreds of millions of dollars in the years immediately following its takeover of Bear Stearns in early 2008. But because the continued manipulation resulted in silver being priced too low for too long, by late 2010, signs of a physical shortage began to appear, in accordance with the immutable law of supply and demand, and silver prices surged to nearly $50 by April 2011, from as low as under $9 in late 2008. This caught JPMorgan flat-footed in holding COMEX short positions and necessitated it teaming up with the CME Group (owner of the COMEX) to rig the steepest selloff in modern commodity history, which pulled JPM’s short bacon from the fire.

Having looked into the abyss with its big short position as silver soared into the April 2011 price highs, it suddenly dawned on JPMorgan how little actual silver existed in the world and at that time it decided that the right side to be on in silver was the long side, not the short side. I fully admit to considering JPMorgan, at least as far as its dealings in silver are concerned, to being a criminal enterprise; but I also consider them to be the smartest crooks around. My definition of smart would include learning from one’s mistakes and being on the wrong side in the run up in silver prices in 2011 is what convinced JPMorgan to buy as much silver as it could.

But deciding to buy as much silver as it could and actually buying the metal are two very different things, even if you happen to be JPMorgan, with virtually unlimited buying power and market capability unmatched.  One doesn’t just blink one’s eyes and place a market order to buy half a billion ounces of silver and call it a day – takes time, patience and cunning. Particularly considered how little available investable silver exists in the world. No matter how rich or powerful JPMorgan may be, buying 500 million physical ounces of silver, given the realities of actual available supply, would take years – as has turned out to be the case.

JPMorgan knew and knows that the amount of real world silver available for sale is limited by a few indisputable facts, namely, there isn’t much to begin with (say 1.3 billion oz in the form of 1000 oz bars) in the whole world and of that amount only a small percentage is ever available for sale at current prices – no more than a few percent.  Compounding the small amount of truly available supply from existing holders is the bedrock certainty that most of the silver newly mined and produced is spoken for and consumed by a variety of industrial and other fabrication demands – investment demand must compete with those other demands, a circumstance highly unique to silver.  For the past few years, less than 100 million silver ounces were available annually for investment after other silver demands were met.

There has been no large amount of silver sold by those holding it over the past five years, but also there has been no big buying by these or other investors – call it a wash.  In essence, because those in the investment world were neither buying nor selling physical silver over the past five years, JPMorgan could only buy the “leftover” silver – the amount of newly produced silver not consumed in other fabrication demands. It’s taken five years for JPMorgan to acquire 500 million oz for good reason – that was all it could buy without driving prices higher.

JPMorgan has used a variety of methods in accumulating its massive silver hoard, as I have previously detailed. As the leading dealer and largest warehouse on the COMEX, as well as the official custodian and leading authorized participant of the world’s largest silver ETF, SLV, JPMorgan was in a privileged and special position to have acquired, effectively, all the newly available silver in the world for the past five years. Despite a compelling desire to shield its silver accumulation from public scrutiny, some important visible clues have emerged pointing to JPMorgan’s actions since April 2011.

Among them are the opening of the JPMorgan COMEX silver warehouse in April 2011, as well as the commencement of an unprecedented physical turnover of only silver in the COMEX inventories, which continues to this day. Due to the large weekly “churn,” JPMorgan was able to skim off hundreds of millions of silver ounces, which were brought into its COMEX warehouse and other non-public warehouses. From zero ounces five years ago, the JPMorgan COMEX silver warehouse has grown to the largest COMEX warehouse, holding nearly half (70 million oz) of the total COMEX inventories. In 2012, JPMorgan cleared out and transferred 100 million oz it held on behalf of holders in SLV out of its own London warehouse to make room for silver to be held in its own name. JPMorgan started to take delivery on futures contracts (despite being a big paper short) and over the past year or so has taken 45 million oz in total deliveries, taking close to or the full amount allowed monthly. It’s not far from the truth to say that JPMorgan has been nearly the exclusive acceptor of COMEX silver deliveries.

Perhaps the cleverest method JPMorgan has employed to acquire physical silver has been as the leading purchaser of newly produced Silver Eagles from the US Mint and Silver Maple Leafs from the Royal Canadian Mint over the past five years. All told, JPMorgan has acquired over 100 million Silver Eagles and 50 million Silver Maple Leafs during this time, and maybe a lot more. As I have also previously explained, I believe JPMorgan has melted down these coins into 1000 oz bars to best prepare for sale eventually.

The most remarkable aspect to JPMorgan’s massive physical silver accumulation is that it was able to do so on steadily declining prices, because, as you know, silver prices have declined from near the $50-mark over the past five years. How the heck did JPMorgan pull off buying 500 million ounces of silver on falling, not rising prices? Because the entire time JPM was buying silver, it was still managing the price lower on the COMEX by maintaining and managing its manipulative paper short position. This is truly the perfect crime – buying a corner on the physical silver market cheaply, by maintaining a short corner on the paper COMEX market. And I can’t imagine who would be more capable of pulling this off over than JPMorgan, the best-connected and most powerful US bank.

Having accumulated the largest hoard of physical silver in history and being in position to reap the biggest profit in history should silver prices soar – what can JPMorgan do to bring that about? More amazing than anything else, the one thing JPMorgan can do to cash in like no one has ever done in silver is, well, nothing. That’s not a misprint. All JPMorgan has to do to guarantee that silver prices will soar to the heavens and beyond is nothing; specifically, not sell additional contracts of COMEX silver short on the next big rally. You see, it has been JPMorgan who has put a cap on all silver rallies over the past five years in order to contain prices so that it could add to its massive physical holdings at cheap prices. The corollary to that equation is that when JPMorgan decides it has enough silver, as I believe it is close to now, the price will soar if it does nothing and refrains from adding new shorts on the COMEX.

The best part about this amazing story, in addition to being almost universally unknown and destined to be discovered, is that it offers the investment opportunity of a lifetime. All one has to do is what JPMorgan has done – buy as much silver as one is capable of buying – and then wait for JPMorgan to help itself. No complicated trading formulas, no risky leveraged schemes – just buy real silver for full cash payment and sit and wait. After all, that’s exactly what JPMorgan has done and after five years, it wouldn’t appear the wait will be very much longer.

Ted Butler

June 2, 2016




Alasdair Macleod talks about the crookedness of the gold/silver comex casino

(courtesy Alasdair Macleod)



Alasdair Macleod: Gold — a reasonable correction?


By Alasdair Macleod
GoldMoney, St. Helier, Jersey, Channel Islands
Thursday, June 2, 2016

Gold weakened during May by about $100, from a high point of $1300 to a low of $1,200.

This, for technical analysts, is entirely within the normal correction zone of a third to two-thirds of the previous rise, which would be 84 to 167 points.

So the fall is technically reasonable, and doesn’t in itself signify any underlying challenge to the merits of a long position in gold. However, when looking at short-term considerations, we should look at motivations as well. And those clearly are the profit to be made by banks dealing in the paper bullion market, which they can simply overwhelm by issuing short contracts out of thin air. This card has been played successfully yet again, with the bullion banks first creating and then destroying nearly 100,000 contracts, lifting the profits from hapless bulls in the Comex market.

The banks get the money, the punters get the experience, and the evidence disappears. The futures market is demonstrably little more than a financial casino, where the house, comprising the establishment banks, always wins. Financial markets are not about free markets and purposeful pricing, which is why the vast majority of outsiders, including hedge funds, those Masters of the Universe of yore, usually lose.

This leads us to an important conclusion: The fall in prices has less to do with a change in outlook for the gold price, and more with the way a casino-like exchange stays in business. …

… For the remainder of the commentary:





Persson discusses why Singapore is a great place to store your gold bullion:

(courtesy Persson/Bullion Star)



Torgny Persson: Offshore bullion storage or three eggs?


1:50p ET Thursday, June 2, 2016

Dear Friend of GATA and Gold:

Bullion Star proprietor Torgy Persson explains this week why Singapore, where Bullion Star is located, has become the superior jurisdiction for buying, selling, and vaulting gold. Persson’s commentary is headlined “Offshore Bullion Storage or Three Eggs?” and it’s posted at Bullion Star here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Ballanger is certainly correct:  Technical analysis is certainly useless in gold and silver markets.

(courtesy Michael Ballanger/GATA)


Michael Ballanger: Why technical analysis does not work for gold and silver


By Michael Ballanger
Thursday, June 2, 2016

I often include charts in my weekly missives for a number of reasons, but the truth of the matter is that they add a little color to what would normally be a pretty drab bombardment of opinion delivered via text.

By adding charts, it creates the illusion that I actually understand technical analysis (which I don’t other than what I gleaned during a two-week training program in 1977 while in the employ of McLeod Young and Weir) and that it is useful in the forecasting of price trends in gold and silver over the long term.

Well, I have a secret to tell you-“T.A.” (as it is called by the “in crowd”) is useless. “Cup and handles,” “hanging Chinamen, “engulfing knickers,” “tombstone dojis” — you can fire them all in the waste bin because that is precisely where they belong.

Last night I was reading a certain metals report where, sure enough, the author missed the top by a country mile, although he admitted it and apologized to his subscribers (which was truly admirable). I found it interesting that for him to get a clue to the next move in gold, he would have to “turn to the charts.” So what I will do now is turn to my charts and demonstrate why charts are created by the bullion bank traders to trap the “chartists” (and their subscribers) into false senses of security. …

… For the remainder of the commentary:







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



1 Chinese yuan vs USA dollar/yuan  DOWN to 6.5873 ( ANOTHER  DEVALUATION  /CHINA CONTINUES TO FIRE SHOTS ACROSS THE USA BOW/OFFSHORE YUAN WIDENS TO 6.5935) / Shanghai bourse  CLOSED UP 13.45 OR 0.46%  / HANG SANG CLOSED UP 88.02 OR 0.42%

2 Nikkei closed UP 79.68 OR 0.48% /USA: YEN RISES  TO 108.87

3. Europe stocks opened ALL IN THE GREEN (EXCEPT SPAIN)  /USA dollar index UP to 95.62/Euro DOWN to 1.1142

3b Japan 10 year bond yield: RISES  TO -.099%     !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.87

3c Nikkei now WELL BELOW 17,000

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

3e WTI::  49.17  and Brent: 49.98

3f Gold UP  /Yen 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.

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 10 yr bund FALLS to 0.120%   German bunds in negative yields from 8 years out

 Greece  sees its 2 year rate RISE to 7.34%/: 

3j Greek 10 year bond yield FALL to  : 7.35%   (YIELD CURVE NOW COMPLETELY FLAT)

3k Gold at $1211.60/silver $16.09(7:45 am est) BROKE RESISTANCE AT 16.52 

3l USA vs Russian rouble; (Russian rouble DOWN 14 in  roubles/dollar) 67.07-

3m oil into the 49 dollar handle for WTI and 49 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation  (already upon us). This can spell financial disaster for the rest of the world/China forced to do QE!! as it lowers its yuan value to the dollar/expect a huge devaluation imminently from POBC.


30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9910 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1045 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.


3r the 8 Year German bund now  in negative territory with the 10 year FALLS to  + .1200%

/German 8 year rate negative%!!!

3s The Greece ELA NOW a 71.4 billion euros,

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 1.795% early this morning. Thirty year rate  at 2.575% /POLICY ERROR)

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

(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)

Futures Flat Ahead Of Strike-Impacted Jobs Report; Commodities Approach Bull Market

After yesterday’s two key events, the ECB and OPEC meetings, ended up being major duds, the market is looking at the week’s final and perhaps most important event of the week: the May payrolls report to generate some upward volatility and help stocks finally break out of the range they have been caught in for over a year. However, even today’s jobs number will likely be skewed as reported previously as a result of the Verizon strike which is said to trim some 35,000 jobs from the headline print, casting anything the BLS reports today in doubt. On the other hand, the Verizon strike is precisely why the consensus expectations going into today is 160,000 not 200,000; however if even that number is missed, economists will promptly forget that they had already factored the Verizon strike in their calculations.

That said, if futures are expecting a miss, they don’t show it and most asset classes, from stocks to commodities, are heading toward the monthly U.S. payrolls report with a relative sense of optimism hoping it will bring some clarity to a Fed rate hike, when in reality the message from the recent trend is all too clear.

The sentiment heading into today’s jobs print was best summarized by Mitsuo Shimizu, an equity strategist at Japan Asia Securities Group in Tokyo, who said that “the level of attention on tonight’s employment data is very high. The market may rise a bit but it could be a tug of war after that as investors scrutinize what impact the data may have on the possibility of higher interest rates.”

So as we await the latest seasonally adjusted, politically motivated random number from the BLS, a quick look at markets shows that shares rose in Europe and Asia after the S&P 500 Index closed at a seven-month high on Thursday. The Stoxx Europe 600 Index added 0.5 percent at 10:15 a.m. in London, trimming its first weekly decline in four to 1 percent.  Futures on the S&P 500 were little changed.  The MSCI Emerging Markets Index of shares rose for a second, advancing 0.4 percent to a one-month high. The Shanghai Composite Index climbed 0.5 percent, taking its weekly gain to 4 percent, the first increase in the period for almost two months on speculation MSCI Inc. will include yuan-denominated shares in its global indexes.

Commodities neared a bull market as Brent crude exceeded $50 a barrel, copper advanced and soybeans led crops higher. The Aussie, New Zealand’s dollar and Indonesia’s rupiah led gains among 31 major currencies. The Bloomberg Commodity Index rose 0.3% to 86.99, a seven-month high. The gauge bottomed this year at a closing low of 72.88 in January, and a finish above 87.45 points would mark a 20% advance, meeting the common definition of entry into a bull market.

Some, however, remain skeptical: “Commodities have had a lot of false breakouts before, so although a bounce-back certainly helps stocks, I’d take it with a pinch of salt,” said Chirin Gill, a London-based fund manager at Daiwa SB Investments. “The market is otherwise being completely driven by macro news right now. Traders are looking out for any trends in economic data for clues on how monetary policy will play out.”

As Bloomberg writes, “financial markets have become emboldened that the economy is strong enough to withstand a hike this month or next.” It is worth nothing that it was writing virtually the same thing in December. Fed Governor Lael Brainard will be the first U.S. central bank official to discuss policy after the report Friday, which is forecast to show employers added 160,000 jobs in May, the same as in April. Fed Governor Daniel Tarullo said Britain’s vote on European Union membership June 23 was a “factor I would consider” at the central bank’s meeting this month.

Aside from just the job number, market watchers will be hoping it reveals some more about the Fed’s “imminent rate hike plans: “The environment is not bad for risk assets and I expect it to continue, but all the attention is now on the Fed rate hike, including what impact a stronger dollar could have on emerging-market economies,” said Yusuke Kuwayama, a portfolio manager at Tokio Marine & Nichido Fire Insurance Co. in Tokyo. “If the payrolls tonight are strong, we’ll see markets further price in a rate hike by pushing short-term yields higher and giving the dollar a bit of a boost.”

Market Wrap

  • S&P 500 futures unchanged at 2104
  • Stoxx 600 up 0.5% to 346
  • FTSE 100 up 0.8% to 6237
  • DAX up 0.6% to 10265
  • S&P GSCI Index up 0.2% to 375.3
  • MSCI Asia Pacific up 0.3% to 128
  • Nikkei 225 up 0.5% to 16642
  • Hang Seng up 0.4% to 20947
  • Shanghai Composite up 0.5% to 2939
  • S&P/ASX 200 up 0.8% to 5319
  • US 10-yr yield up less than 1bp to 1.8%
  • German 10Yr yield down less than 1bp to 0.11%
  • Italian 10Yr yield down 1bp to 1.36%
  • Spanish 10Yr yield down less than 1bp to 1.48%
  • Dollar Index up 0.02% to 95.59
  • WTI Crude futures up less than 0.1% to $49.18
  • Brent Futures up 0.1% to $50.11
  • Gold spot up less than 0.1% to $1,211
  • Silver spot up 0.5% to $16.08

Top Global News

  • Delta, United Continental Said to Be Studying Bids for Avianca, as Latin American airline exploring strategic options including a full or partial sale, according to people familiar with the matter
  • Bayer Said to Secure $63 Billion in Financing for Monsanto Bid: Bank of America, Credit Suisse, Goldman, HSBC, JPM are lenders; bridge loan may be increased should Bayer bump offer
  • Colony Capital Said to Near Deal For NorthStar Asset Management: Colony Capital and NorthStar Realty Finance close to agreeing to a takeover of commercial real estate manager NorthStar Asset Management, according to people familiar
  • U.S. Yield at 16-Year High Versus U.K. Before Jobs, Brexit Vote: U.S. two-year notes yielded 51 basis points more than same-maturity government debt in the U.K., the biggest difference in 16 years; U.S. payrolls report today, economy added 160,000 jobs in May, same as April, survey shows
  • Bain, PAG Asia Said to Join KKR in Studying Bids for Takata: Bain and PAG Asia are evaluating bids for Takata, joining KKR among private equity firms with an interest; Lazard advising Takata steering committee to seek investors
  • Falcone’s HC2 Willing to Raise Its $1.04 Billion Andersons Offer: In a letter to Andersons Chairman, Falcone reiterated its earlier $37-a-share offer and “its willingness to increase its bid, if appropriate, after formal engagement,” HC2 said
  • Twitter Said to Have Met With Yahoo on Possible Merger: NYP: Twitter met with Yahoo’s mgmt several weeks ago to discuss possible merger; bowed out of bidding process soon after: NYP
  • Redstone Doctor Says Mogul ‘No Longer Trusts’ Viacom CEO: Sumner Redstone had the legal mental capacity to remove CEO Philippe Dauman from the trust that will oversee the co., according to a psychiatrist who examined him last month
  • Noble Group Plans China-Backed Issue as Elman to Step Down: Rights shares to be issued at 63% discount to latest close
  • BP to Pay $175 Million to Settle Claims It Hid Spill Size: Investor settlement averts trial set for next month in Texas
  • Pfizer CEO Read Is Open to Mega-Merger; Inversion? Not So Much: Govt. opposition makes tax move near impossible, CEO says
  • Wal-Mart to Start Testing Grocery Delivery Through Uber, Lyft: Retailer will start trying out Uber in Denver and Lyft in Phoenix within the next two weeks
  • Seven & i Buys CST Stores in U.S. Push, Not Keen on Takeover Bid: Japanese owner of 7-Eleven will buy 79 gas stations and convenience stores in California and Wyoming from CST Brands Inc., but won’t bid for the entire company
  • Saudi Arabia Says Oil at $50 Won’t Hinder Market Recovery: Saudi oil minister speaks in briefing after OPEC meeting

Looking at regional markets, Asia equity markets traded mostly higher following a positive US close where markets recovered from ECB and OPEC events, alongside a rebound in energy post-DoE drawdown. Nikkei 225 (+0.5%) was led higher by index giant Fast Retailing following strong Uniqlo sales, although the index pulled off its best levels as a resilient JPY capped gains. Elsewhere, ASX 200 (+0.7%) outperformed on broad-based gains across sectors, while Chinese markets rose with Shanghai Comp (+0.4%) and the Hang Seng (+0.3%) continued to benefit from Shenzhen stock connect hopes. Finally, 10yr JGBs traded with mild gains despite the positive risk sentiment, as the BoJ entered the market to purchase over JPY 1.2trl in government debt.

Top Asian News

  • SoftBank Cutting Its $109 Billion Debt Leaves Funds Wary of Son: Sale of $8.9 billion stake in Alibaba to boost cash, pay debt
  • China Search Engine Giant Baidu Said to Raise Loan to $2 Billion: Gets commitments from 21 banks for facility, people say
  • Goldman Sees Rising Risk of China’s Yuan Repeating January Rout: Trading wagers on one-off devaluation may intensify again
  • China Said to Seek New Global Economic Summits for Bigger Voice: Communist Party leaders want greater say in global economics

In Europe traders have been somewhat in a state of limbo this morning, recovering from the ECB and OPEC non-drama yesterday, while also looking ahead to the risk event of the day in the form of the nonfarm payroll reports. European equities have followed their US and Asian counterparts and trade modestly higher on the day (Euro Stoxx: +0.3%). Energy names are among the best performers this morning, benefiting from upside in the commodity complex, with WTI trading back above USD 49.00 despite the lack of action by OPEC yesterday. Bunds trade near contract highs this morning, continuing the trend seen in the wake of the slightly underwhelming ECB press conference and projections, with further downbeat news this morning coming from the Bundesbank in the form of downgrades to both growth and inflation forecasts. Participants also saw mixed services and composite PMIs, with both final readings from France as well as the German Composite missing on expectations, although the Eurozone wide figure did see a modest beat.

Top European News

  • Euro-Area Economy’s Lacklustre Growth to Persist, Markit Says: Gauge of new business growth at manufacturing and services firms fell to a 16-month low in May, meaning output is likely to stay subdued in the coming months
  • Brexit Worries Curb U.K. as Markit Sees Economy Barely Growing: Latest data indicate the U.K. economy may expand just 0.2% this quarter, Markit said. That compares with 0.4% growth in 1st 3 months of 2016 and marks the weakest level since 2012
  • Brexit Puts 400,000 Services Jobs at Risk in U.K., Osborne Warns: Service companies, Britain’s biggest employers with a workforce of 25m, could be forced to cut 400,000 jobs over the next two years, Osborne will say in a speech on Friday
  • As Brexit Flusters Pound Traders, U.K. Equities Remain Calm
  • Brexit Alarm Has Bank Watchdog in Sweden Demanding Action Plans
  • Shire Completes Merger With Baxalta, Eyes >$20b Revenue Target: Says it will issue additional details on combined company when it reports 2Q results on Aug. 2
  • ICAP Lands Deal for Mainland China’s Yuan-Trading Platform: Contract for yuan trading technnology is worth $65 million
  • Deutsche Bank Online Banking Shows June 1 Bookings Duplicated: Comments on “display problems” in online banking service
  • Emirates Sees Euro in Freefall, Flights Flatlining After Brexit
  • Santander, BPI Consider Buying Novo Banco: Diario Economico
  • China’s Jin Jiang Wants to Boost Accor Stake to 29%: Figaro: Jin Jiang now controls 15%, Le Figaro reports

In FX, there is little to read into this morning’s FX trade, apart from the heavy tone in the EUR,with the market going into meeting yesterday looking for a more upbeat outlook than was alluded to by governing council head. The inflation and growth forecasts were disappointing in this respect, and this has only been exacerbated by the Bundesbank announcement this morning of downward revisions in Germany’s equivalent stats. EUR/USD has really struggled to break 1.1160 this morning, though lack of activity may also be attributed to this as we await the non-farm payrolls release later on. USD/JPY has been edging higher though, as have the AUD and NZD, so risk sentiment can be deemed stable on this basis, with the CAD also steady but trading in a very tight range after yesterday’s OPEC meeting. All hangs on the US data later today, but there may be some confusion over the impact of the Verizon strikes. Euro zone retail sales lower than expected, but EU composite PMIs higher in the final read, but weakness seen in the French numbers. UK services PMIs were better than expected, but EU polls continue to dominate.  The Bloomberg Dollar Spot Index was down 0.1 percent for the week.  Two ICM polls, carried out both online and by telephone, put “Leave” ahead this week, while an an Ipsos Mori poll on voter attitudes found 58 percent of respondents said they don’t think leaving the EU would affect their own standard of living. The Number Cruncher Politics website is calculating a Brexit probability of 21.7 percent. The rand slipped 0.1 percent, after appreciating 1.5 percent in the previous three days. South Africa faces the prospect of having its credit rating cut to junk when S&P Global Ratings announces the outcome of a review on Friday.

In commodities, the Bloomberg Commodity Index rose 0.3 percent to 86.99, a seven-month high. The gauge bottomed this year at a closing low of 72.88 in January, and a finish above 87.45 points would mark a 20% advance, meeting the common definition of entry into a bull market. Brent crude added 0.1 percent to trade at $50.10 a barrel. The third drop in U.S. crude inventories in four weeks tempered the impact of OPEC’s decision to stick to a policy of unfettered production, turning down a proposal to adopt a new ceiling on output. Zinc rose for a seventh day for its longest rising streak in almost two years amid continued speculation of a raw materials shortage, rising with copper and aluminum. Net-long positions in LME futures for the metal are close to an 11-month high seen in May, indicating that investors continue to bet on a rally. Soybean futures climbed 1.2 percent to the highest since July 2014, taking this week’s advance to more than 6 percent. Prices surged Thursday amid forecasts for dryer weather in the U.S. growing area.

On today’s calendar in the US, the big release is the payrolls print and other components of the May employment report. Away from that there’s other important data due out too. In particular the ISM services reading will be under the spotlight, with current expectations of a 0.4pt drop to 55.3. The final May PMI’s will also be released as well as April factory orders, the April trade balance (which is expected to show a modest widening in the deficit) and finally the last revisions to the April durable and capital goods orders. Away from the data expect there to be the usual focus on the Fedspeak with Evans due to speak this morning in London along while Brainard who is expected to speak in the early evening. Both are scheduled to speak on the economy and policy.

Bulletin Headline Summary from RanSquawk and Bloomberg

  • Equities modestly higher this morning amid notable outperformance in energy names with WTI crude holding above USD 49
  • FX pairs largely range bound as participants remain sitting on the side-lines ahead of the US NFP report
  • Looking ahead as well as the US Nonfarm Payrolls, highlights include US Durable Goods Orders, Factory Orders, Composite and Services PMI and comments from Fed’s Brainard
  • Treasuries little changed in overnight trading while global equities and commodities rally; today brings nonfarm payroll report with consensus for a gain of 160k and the unemployment rate to drop to 4.9% from 5.0%.
  • The May payroll reading will be difficult to decipher after the U.S. jobs recovery suffered a bit of a slowdown in April. A strike involving workers at Verizon probably depressed payrolls last month
  • Fears of a potential Brexit may spur Fed to hold off on a June rate rise, playing a bigger role in the central bank’s decision than any positive surprise from U.S. payrolls later today, Bloomberg strategist David Finnerty writes
  • The potential effect of the U.K.’s referendum on EU membership “is a substantial unknown,” Federal Reserve’s Evans told reporters in London, added Fed might be in a better place to judge outlook after June meeting, once events like the referendum are out of the way
  • The extra yield Treasuries pay over U.K. gilts is surging before a U.S. payrolls report, while investors seek safety in British government bonds as the nation prepares to vote on leaving the European Union
  • China’s latest effort to rid its banks of bad loans looks sensible. By packaging the debt into securities, lenders hope to unload them onto risk-hungry investors. But if the first deals in this 50 billion yuan ($7.6 billion) program are any guide, the whole exercise may end up just shuffling bad debt between banks
  • The U.S. will push China to reduce excess capacity in its economy at upcoming talks in Beijing, with Treasury Secretary Lew calling it an “area of central concern.” The issue bears watching when “excess capacity is distorting markets and important global commodities,” Lew said
  • The euro area’s lackluster pace of growth is set to continue as the economy cools from a strong first-quarter performance, according to Markit Economics. Its gauge of new business growth at manufacturing and services firms fell to a 16-month low in May
  • Commodities are nearing bull-market territory after rebounding from the lowest level in at least 25 years as oil prices rallied, complementing advances in recent weeks in soybeans and zinc

DB’s Jim Reid concludes the overnight wrap

So here we go again. Another payroll Friday has been reached. By my crude calculations this morning I think today’s might be the 250th of my career. Interestingly they’ve only averaged 95k over this whole period but this number is heavily skewed by the recessions. I wonder what the probabilities of me writing this by the time my 500th comes along. By then a robot will likely be the author which is ironic to discuss on employment day.

In preparation for this main event, yesterday saw ADP report a 173k private payroll gain in May – exactly in line with expectations. There was no evidence that the Verizon strike impacted the number. However the BLS strike report suggests that payrolls are likely to show a 35k impact from the striking Verizon workers which is why consensus is at 160k not 200k – the 3 month trailing average. DB is at 135k on concerns weaker growth and profits will dampen employment. As always it’s worth also keeping an eye on the other important components of the report. The market is expecting a +0.2% mom rise in average hourly earnings, no change in average weekly hours of 34.5hrs and a slight decline in the unemployment rate to 4.9%.

This follows on from what must have been a busy day in Vienna where both the ECB and OPEC met. Both meetings ended with not much new to report with the ECB being as expected but with the OPEC result a disappointment for some reflected in the 2% drop in WTI to just below $48/bbl after news came through that no production ceiling would be agreed upon but with much of the chatter from the various major oil producing nations actually fairly upbeat. However we rallied back into the close and in fact actually finished +0.33% higher on the day at $49.17/bbl following the latest US crude inventory data which showed stockpiles dropped by 1.4m barrels last week. Brent actually settled at just above $50/bbl at the end of play and both are hovering at similar levels this morning.

It was those moves in Oil yesterday which dictated much of the market direction for risk on both sides of the pond. European equities ended up little changed with the Stoxx 600 closing +0.07% while in the US the performance in the S&P 500 appeared to be a mirror image of Wednesday. Indeed the index hit its lows for the day (-0.50%) about an hour in, before then climbing back over the remainder of the session to finish +0.28%. That puts the index now at a seven-month high. Rates-wise US 10y Treasury yields dipped a few basis lower to close below 1.80% (at 1.799%) for the first time since mid-way through last month. There were similar moves in Europe where 10y Bund yields were down 2bps and at 0.113% – the lowest since April 11th.

Switching over to the latest in Asia where markets are closing the week on a more mixed note. The Nikkei (+0.17%) has bounced back modestly following two days of steep declines, while the Hang Seng (+0.25%) and ASX (+0.68%) are also ending the week on a more positive note. The Shanghai Comp (-0.02%) and Kospi (-0.10%) are both a bit lower however, while the latest China data showed some deterioration in the services sector. The Caixin services PMI edged down 0.6pts last month to 51.2, the second consecutive monthly decline with the composite reading of 50.5 down from 50.8.

Moving on. In terms of the ECB yesterday, as highlighted earlier there wasn’t a huge deal of new news to come out of the meeting. The overall tone of meeting was one of confidence and patience about the new policies being implemented before any real conclusions are drawn. DB’s Mark Wall summed up Draghi’s press conference as waiting on three things before reassessing policy stance. First, the UK referendum result. Draghi’s comments suggested that the euro area could suffer from a UK decision to leave the EU. Second, an assessment of the benefits of soon to be implemented policies, namely the CSPP and TRLTRO2 with the former beginning on 8th June and the latter auction allotted for 23rd June. Third, the exchange rate. The ECB Council continues to expect the exchange rate to weaken thanks to divergent monetary policy cycles. Mark notes that should Brexit be avoided, then he would expect the ECB to remain on hold until at least September which is the soonest the ECB could make a preliminary judgement about the benefits of CSPP and TLTRO2. In this scenario he expects the ECB to err on the side of caution and extend QE further in September. If Brexit occurs, he expects further policy easing from the ECB and for this to occur relatively quickly.

That brings us to the CSPP then and some of the finer technical details released by the ECB yesterday after the programme was confirmed as starting on the 8th June. It was confirmed that in addition to banks and their subsidiaries, investment firms as per MiFID II are ineligible. We understand this to mean then that insurers and REITS are eligible as previously expected, but the newly added condition eliminates brokers, securities firms and asset managers. Meanwhile, the Eurosystem can hold onto fallen angel bonds, i.e. those that later lose the IG status necessary for eligibility for purchases. It was confirmed that the ‘market capitalisation’ definition means the amount outstanding for the internal benchmark. The bonds purchased by the Eurosystem will be available for borrowing and their list will be published weekly. The definition of a ‘public undertaking’, for which primary market purchases are not allowed and lower issue share limits apply, has been clarified and finally some PSPP-eligible corporates have been moved to CSPP. More details on this are in the report published by Michal Jezek in my team which should have hit your emails a short time ago.

Staying on the central bank theme, there was also a little bit of Fedspeak for markets to digest yesterday. The Fed’s Kaplan (moderately hawkish usually) said that he is expecting ‘solid job growth’ in today’s employment report and that he would advocate for tightening in the ‘near future’ without offering more specific timing. On the subject of the Brexit vote, he said that the Fed needs to ‘be prepared’ although a more cautious view on that was given by the Fed’s Tarullo yesterday. One of the more dovish voters on the committee, Tarullo said that the Brexit vote is bringing alot of uncertainty and is a factor that he would consider in his policy outlook. He went on to say that ‘in the short term it is more a question on the immediate impact on markets’. Tarullo also spoke on the subject on banking regulation and said that he expects stress tests for the bigger US banks to get stricter in the near term.

With regards to the other data yesterday, initial jobless claims in the US last week were down a modest 1k to 267k (vs. 270k expected). That’s had the effect of lowering the four week average to 277k. The other data yesterday came in the form of the NY ISM survey which turned a few heads with its near 20pt decline in the index to 37.2pts in May. That’s actually the lowest level since 2009 although the index is notoriously volatile from month to month so we take the data with a bit of a pinch of salt for now.

Looking at the day ahead, this morning in Europe it’s all about the remainder of the PMI’s where we’ll get the final services and composite readings for the Euro area (the initial composite flash reading was 52.9) as well as the data out of the periphery. Euro area retail sales for April are also due to be released this morning. Over in the US the big release is the aforementioned payrolls print and other components of the May employment report. Away from that there’s other important data due out too. In particular the ISM services reading will be under the spotlight, with current expectations of a 0.4pt drop to 55.3. The final May PMI’s will also be released as well as April factory orders, the April trade balance (which is expected to show a modest widening in the deficit) and finally the last revisions to the April durable and capital goods orders. Away from the data expect there to be the usual focus on the Fedspeak with Evans (8.45am BST) due to speak this morning in London along while Brainard (5.30pm) who is expected to speak in the early evening. Both are scheduled to speak on the economy and policy.



i)Late  THURSDAY night/ FRIDAY morning: Shanghai closed UP  BY 13.45 PTS OR 0.46%  /  Hang Sang closed UP 88.02 OR 0.42%. The Nikkei closed UP 79.68 POINTS OR 0.48% . Australia’s all ordinaires  CLOSED UP 0.76% Chinese yuan (ONSHORE) closed DOWN at 6.5873 .  Oil FELL to 49.17 dollars per barrel for WTI and 49.98 for Brent. Stocks in Europe ALL IN THE GREEN(EXCEPT SPAIN) . Offshore yuan trades  6.5935 yuan to the dollar vs 6.5873 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS) 



none today


none today


Former Deutsche bank traders have been indicted in the USA for Libor transgressions.

For fines will be leveled against DB!



(and special thanks to Robert H for sending this to us)

Comment from Robert to me:

So how is DB who’s on the edge with derivatives going to handle the fines that will come with this???
Thu Jun 2, 2016 5:59pm EDT

Former Deutsche Bank traders indicted in U.S. in Libor probe

Two former Deutsche Bank AG traders have been indicted for engaging in a scheme to manipulate Libor, the benchmark interest rate at the center of global investigations of various banks, the U.S. Justice Department saidon Thursday.

Matthew Connolly, 51, of New Jersey, and Gavin Campbell Black, 46, of London, were charged in an indictment filed in federal court in Manhattan on one count of conspiracy to commit wire fraud and bank fraud and nine counts of wire fraud.

Connolly, formerly Deutsche Bank’s director of the pool trading desk in New York, was arrested on Thursday and later in the day released on a $500,000 bond after pleading not guilty at a hearing before U.S. District Judge Colleen McMahon.

Kenneth Breen, Connolly’s lawyer, said the allegations against his client “are untrue, and he looks forward to clearing his name in court.”

A lawyer for Black declined to comment.

The case follows the guilty plea in October of a former senior trader at Deutsche Bank, Michael Curtler of London. The bank agreed in April 2015 to pay $2.5 billion to resolve U.S. and U.K. probes.

The charges stem from allegations that Connolly and Black participated in a scheme to manipulate the U.S. dollar Libor, the London interbank offered rate, in a way that benefited themselves or Deutsche Bank.

Libor is based on what banks say they believe they would pay if they borrowed from other banks. The rate underpins trillions of dollars of financial products globally from mortgages to credit card loans.

U.S. and European authorities have been probing whether banks attempted to manipulate the rate to benefit their own trading positions.

Those investigations have resulted in billions of dollars in regulatory settlements with financial institutions, and charges by the U.S. Justice Department against 15 individuals.

According to Thursday’s indictment, from 2005 to about 2011, Connolly, Black, Curtler and at least seven other people conspired to submit false estimates for some Libor rates in order to manipulate the rate.

The indictment quotes messages between the traders in 2005 and later in which they discussed pushing the benchmark rate either up or down, depending on what they needed for their deals.

In one, Black messaged an unnamed person to ask, “Could we pls have a low 6mth fix today old bean?”

The case is U.S. v. Connolly et al, U.S. District Court, Southern District of New York, No. 16-cr-370.

(Reporting by Diane Bartz; Editing by Cynthia Osterman and Tom Brown)



Then we witness the following:  Is Deutsche having liquidity problems?

(courtesy zero hedge)


Deutsche Bank ATMs Block Cash Withdrawal Due To “Technical Glitch”

In what appears to be a widespread problem, Germany’s Spiegel reports that customers are unable to withdraw cash from Deutsche Bank ATMs due to a “technical glitch.”

 Via Google Translate,

A German bank spokeswoman declined to comment on the problem first.


But the bank finally conceded a technical glitch in online banking.



The deposits and withdrawals were partially displayed twice or not ready, the bank said.


“None of these payments twice shown has taken place,” it says in the statement.


Apparently slipped some accounts due to the alleged double deduction into the red. “I could not pay by card. By double counting our account is in the red. Also withdraw money I could not, because our credit limit is not sufficient,” wrote a user on a Facebook.

With everything that is going on, one can only wonder if desperate times have led to desperate measures… or, of course, this could simply be a “technical glitch” which just happened to occur on a Friday evening – the busiest time for cash withdrawals.




Wow!! German bunds realizing that the world is cratering, witness its 10 yr bond yield falling to only 6.5 basis!!.You read that correctly: 0.065% for 10 years.

The world is falling apart!!

(courtesy zero hedge)



German Bund Yields Crash To April 2015 “Short Of A Lifetime” Record Lows

In April 2015, as Bund yields crashed towards zero, bond gurus Bill Gross and Jeff Gundlach went public with their“short of a lifetime” positions which spiked german rates drastically higher. Since the peak of that bounce in May 2015, bund yields have accelerated lower and today crashed back towards those record lows at just 6.5bps (for 10Y!). The entire bund yield curve is now below zero out to over 9 years, which as we noted earlier, leaves more than $10 trillion of global bonds now negative-yielding.

Bund yields are crashing again after today’s payrolls puke… back near “short of a lifetime” levels?


Pushing every German sovereign bond shorter-dated than 9.5 years into negative-yield…


Japan is now negative out to 14 years also. Need any other reasons to buy longer-dated Treasuries?

Charts: Bloomberg



The total of all global debt is around 30 trillion USA dollars equivalent.  Now for the first time we see that negative yielding debt surpasses 10 trillion dollars equivalent or 33% of total debt. If the USA raises rates this will push other nations further into negativity.  Since USA bonds and bills represent almost 70% of the positive yields, it is ironic that everybody will flock to the uSA bonds for its positive yield!!!.

(courtesy zero hedge)

Historic Milestone: Negative Yielding Debt Surpasses $10 Trillion For The First Time

The world passed a historic milestone in the past week when according to Fitch negative-yielding government debt rose above $10 trillion for the first time, which as the FT adds envelops an increasingly large part of the financial markets “after being fuelled by central bank stimulus and a voracious investor appetite for sovereign paper.” It also means that almost a third of all global government debt now has a negative yield. The amount of sovereign debt trading with a sub-zero yield climbed 5% in May from a month earlier to $10.4 trillion, pushed higher – or lower in yield as the case may be – by rising bond prices in Italy, Japan, Germany and France.

Japan and Italy fuelled the increase in negative-yielding debt in May, with three-year bonds issued by the latter sliding below the zero mark.

The ascent of the negative yield, which first affected only the shortest maturing notes from highly rated sovereigns, has encompassed seven-year German Bunds and 10-year Japanese government bonds as both the European Central Bank and Bank of Japan have cut benchmark interest rates and launched bond-buying programmes.

The source of this historical capital misallocation is clear: global central banks who are desperate to push all yield-seeking investors, and key among them pension funds, into risky assets in hope of preserving asset price inflation. “Central bank actions are certainly a part of it, but the global search for yield, the desire to find high-quality securities is part of what is going on here,” said Robert Grossman, an analyst with Fitch.” He added that regulations requiring banks to increase capital buffers were intensifying the flight into these securities. Portfolio managers, pension funds and insurers have struggled with negative-yielding notes, which when held to maturity will lose an investor money. Fund managers have nonetheless dived in, as central bank buying increases prices on the debt.

Ironically, while yields of government debt may be negative, the capital appreciation means that total return keeps rising and is in fact outperforming equities as an asset class. German government debt, which on average yields minus 0.1% has returned 4.2% since the beginning of the year mainly because of rising prices, Barclays data show. Japanese government debt, which yields minus 0.06% , has returned 5.2% over the same period.

It’s not just government bond though: Corporate bonds with a negative yield have climbed to $380 billion, according to Tradeweb. “You have central banks which have gone through the looking glass and gone through . . . zero that many people thought was unbreakable,” said Sameer Samana, a strategist with Wells Fargo Investment Institute. “Both [the ECB and BoJ] are telling you there are limits to what they can do in taking short-term rates into negative territory. The spread [of negative rates] further out on the curve is probably behind us.”

Perhaps: that is precisely the basis behind Bill Gross’ assessment that the 30 year bond market in bonds is over – there is no longer space for yields to drop. On the other hand, the convexity from long bond duration is now so high that even modest incremental drops in yields result in substantial pick up in bond prices, with absolute return offsetting negative yields. Ultimately it will all be up to central banks.

Meanwhile, putting the global NIRP glut in context, recall that as we reported two weeks ago, according to Citi calculations, the US now accounts for almost 60% of all positive yielding debt and 89% of the positive yielding debt which has a tenor less than 1YR (Figure 4). Also, US debt accounts for 74% of the positive yielding G10 debt in the 1 – 5YR sector.

What this means it that even as the Fed hikes, other central banks will be forced to offset the Fed’s tightening of monetary conditions, lower rates even more and push even more investors into the only “safe” asset class that provides some return  – US paper. As such, it will be ironic if the divergence in rate policy between the US and the rest of the world is what causes the yield curve to invert, because as of this moment it will only take about three rate hikes for the short end to hit ~1% while the long end continues to grind ever lower, and as we reported yesterday, the 2s30s is now the flattest it has been in 9 years.




Venezuela is such a sad case.  Daniella DiMartino Booth describes the devastation and a history account as to how this happened to the broken country.

(courtesy DiMartino Booth/Reuters)



Submitted by Daniella DiMartino Booth via DiMartinoBooth.com,

Sometimes art imitates life. “I know it was you, Fredo. You broke my heart. You broke my heart!” So said Michael Corleone to his older brother just after gripping his face and delivering a kiss of death. The infamous scene was based on the real life events of January 1, 1959. The occasion? A New Year’s celebration in downtown Havana and the moment in history when Fidel Castro overthrew the dictatorship of Fulgencio Bautista. The chillingly memorable scene from the 1974 classic Godfather II foretells the retribution for Fredo Corleone’s ultimate deceit.

At other points in time, life imitates art. So it was with an inaugural speech on February 2, 1999, some 40 years after Bautista fled Castro and Cuba, when Venezuelan President Huge Chavez betrayed his predecessor, Rafael Caldera. Caldera had granted Chavez amnesty and released him from prison in March 1994 following Chavez’s incarceration stemming from a failed 1992 coup attempt sanctioned by none other than Fidel Castro himself. Now it was the traitor doing the kissing.

It is fitting that Caldera, who died in December 2009, did not live to see the Venezuela of today, a sad failed state reflective of the very man he helped bring to power. After all, Caldera had publically defended the unsuccessful coup attempt. In his words, “We cannot ask people with hunger to immolate themselves for a democracy that has not been able to give them enough to eat.” Those words, spoken February 4, 1992, would help to elect Caldera to a second term as Venezuela’s president in 1994. It had been 20 since the end of his first presidential term.

Today Venezuelan children are dying of hunger. Premature babies perish as electrical outages snuff the incubators critical to their survival. Those wracked with disease cannot receive the treatment they must have to battle their ailments; diabetics and cancer patients die unnecessarily every day. In the worst cases, as has been documented by numerous media outlets, hospitals have become menaces in and of themselves with operating theatres unfit for use. Patients die in pools of their own blood.

Such is the inconceivable reality of the politically-divided, drought-ridden country that rests upon the world’s largest oil and iron ore reserves. How has Venezuela spiraled so far out of control in the wake of the commodities supercycle that built modern-day China, one that filled the coffers of resource-rich exporters worldwide?

A bit of history helps explain how events have tragically aligned. As is the case with many regime changes, Caldera entered office just as financial crisis was descending. Banco Latino had failed before his term had even begun and was followed by the failure of 10 more banks. Deposits were lost and the government had to step in to provide aid to the financial sector.

The economic devastation that followed was severe. An exchange rate policy imposed by the government caused prices to skyrocket, rendering the necessary supplies to conduct business prohibitively expensive. More than seventy thousand small and medium-sized companies went into bankruptcy.

To staunch the deepening crisis, Caldera reneged on a campaign vow to never accept monies from the International Fund (IMF). Of course, no aid is granted without demands. Satisfying those demands planted the seeds for the rise of the Chavez socialist experiment and the inevitable crisis ignited.

The IMF’s requirements resulted in a 70 percent devaluation of the bolivar, the liberalization of interest rates and the continued privatization of the nation’s industries. On the flipside, fuel prices also rose by 800 percent, devastating much of the populace already reeling from inflation that had put the basic necessities of food and clothing out of their reach.

No doubt, the imposition of economic strictures in Venezuela laid the groundwork for the rise of socialism. The income divide was readily apparent to this Caracas resident in the summer of 1995. The occasion for said residency was an internship at Sivensa, a steel giant that happened to be on the receiving end of the push to privatize firms.

The drive into Caracas from the airport on Venezuela’s coast was unforgettable, and yet, as we neared the capital, unspeakable. Such was the unmistakable depth of wretchedness and poverty being endured by those many thousands who existed amid the squalor of makeshift slums barely clinging to the hillsides outside the city. Anyone seeing the stark contrast between the luxurious and carefree lifestyle enjoyed by the elegantly-dressed but impervious Caracanyan haves, who danced their nights away while living in the shadow of those Godforsaken slums, would have to question what was to come. The words, “This cannot end well,” came to mind.

Over 20 years later, things are not ending well, and they do indeed appear to be ending. One company after another has shuttered as the government has cut off lines to the basic foodstuffs needed to produce the goods that stock supermarket shelves. And airlines have been forced to pull up wheels and abandon their routes in and out of the country given the $5.3 billion in un-patriated airline revenues the government has effectively frozen via currency controls. Isolation is descending and fast.

The hope is that the rising opposition can prevail and effect a peaceful transition. In spite of that opposition’s multitude of imprisoned leaders, about half of the four million signatures required to oust President Nicolas Maduro are already in hand.

Amid all of this is the fear is that the government’s latest decision to satisfy the country’s debt obligations, at the expense of providing the needed funding to address the overwhelming humanitarian crisis, will throw the country into civil war. Foreign reserves are quickly dwindling to the $10 billion mark, one-quarter of what they were as recently as 2009. Meanwhile, PDVSA, the state’s oil behemoth, is said to be pursuing debt exchanges with its oil servicers, desperate measures designed to buy time that’s fast running out.

And yet, if Maduro’s government can stall the referendum vote to January 10th, current law dictates that the vice president can waltz in and replace him, no fresh elections triggered. So more of the same as opposed to a true change in leadership.

Some have speculated that a neighboring country could ride to Venezuela’s rescue. The chances of that benign outcome, however, are slim as noted by numerous Latin American economists. They cite the weakened economies of the region’s leaders, Argentina and Brazil, as impediments to a white knight scenario unfolding.

It must also be noted that Mother Nature has piled onto the devastation. Venezuela is a country that has traditionally relied on hydropower. That makes the historic drought ravaging the country all the more destabilizing as over two-thirds of the nation’s electricity is rationed.

Venezuela has not been completely abandoned. On May 29th, a shipment of emergency medical supplies to fight the Zika virus arrived courtesy of China, a country whose ties with Venezuela have strengthened since their status was raised to that of ‘strategic partnership’ in 2014.

China’s efforts notwithstanding, the severity of the unfolding catastrophe suggests nothing short of a full blown, coordinated international relief effort is needed. Both the United States and the IMF come to mind, both abominations in the eyes of the current leadership.

The time for politicking, though, has long come and gone rendering the intensity of Maduro’s resolve to remain alienated from the western world nothing short of traitorous. The president literally has the blood of his fellow countrymen and women on his hands.

Such is the result of corruption followed by the imposition of broken economic models followed by yet more corruption. At some point, as Margaret Thatcher famously predicted of all socialist regimes, Venezuela would simply run out of other people’s money to spend, which appears to be the case today.

And so it goes as the rest of the world looks on with the hopes that Venezuela follows in the footsteps of its neighbors to the south who have begun to reject similarly broken economic and political models rather than stand by and watch their countries burn.

As for Venezuela’s forsworn enemy to the north, judiciaries here should take note of rising U.S. crime rates and the potential for more trouble in our own streets. Idleness, whether forced or chosen, combined with entitlement, can lead to nothing good. You can only placate the masses with an ever-expanding welfare state and misguided monetary policy that fails to grow the workforce while enriching the haves for so long before things turn.

For us, there may not be an overtly dramatic crescendo of unrest, with Michael delivering to Fredo the symbolic kiss of death. But be that as it may, we’ve still been betrayed by those in power. Yes, perhaps a betrayal of the subtlest sort, but a betrayal just the same with an inevitable, still unknown, price to pay.



Just take a look at their tap water:

(courtesy zerohedge)


This Is What The Tap Water Looks Like In Venezuela

One week ago, we showed what the maximum amount of money one can take out of a Venezuela ATM machine looks like: the good news, one still doesn’t need a wheelbarrow to transport it (if only for the time being: with hyperinflation now rampant, it’s only a matter of time); the bad news: this is the equivalent of $25.


Now, thanks to AP’s Hannah Dreier, we get a glimpse at the other kind of socialist “liquidity” and step aside Flint, because Caracas has some funky orange stuff flowing out of the tap to offer to those who are thirsty after a day of rioting against a entrenched, dictatorial regime. It appears that Venezuela’s Guri dam, which is so empty it caused the country to give public workers a “five day weekend” as it can’t generate enough electricity to keep the country running, has finally run dry.


Sadly, not only do the people of Venezuela have to wait for 7 hours in line just to get access to food (if they are lucky), or failing that simply storm supermarkets looking for scraps, they now have to drink whatever is in that glass. Adding insult to injury, once the inevitable food poisoning hits, there is no toilet paper either.

We wonder if Maduro will take a page out of his ideological peer from the north, and chug a glass of whatever this is to demonstrate to everyone that it is safe to drink…

h/t @hannahdreier



The higher oil price has done the unthinkable: new rigs have entered the scene to extract the oil

(courtesy zero hedge)

Oil Tumbles After Rig Count Surges By Most Since Dec 2015

Just as we expected, based on lagged oil prices, the US oil rig count rose this week. The oil rig count rose 9 to 325 – the biggest increase since Dec 2015. This is the second week in a row with no decline in rigs as the market’s self-defeating fears of a production resurgence drive oil prices lower on the news.

and the reaction is back to the lows of the day…


Did The OPEC fail spike mark the cycle rebound highs?


Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings/FRIDAY morning 7:00 am




USA/CAN 1.3094 DOWN  .0002

Early THIS FRIDAY morning in Europe, the Euro FELL by 9 basis points, trading now WELL above the important 1.08 level FALLING to 1.1367; Europe is still reacting to deflation, announcements of massive stimulation (QE), a proxy middle east war, and the ramifications of a default at the Austrian Hypo bank, an imminent default of Greece, Glencore, Nysmark and the Ukraine, along with rising peripheral bond yield further stimulation as the EU is moving more into NIRP, and NOW THE USA’S NON tightening by FAILING TO RAISE THEIR INTEREST RATE / Last night the Shanghai composite  CLOSED UP BY 13.45 PTS OR 0.46% / Hang Sang CLOSED UP 88.02 OR  0.42%   / AUSTRALIA IS HIGHER BY 0.76%/ ALL EUROPEAN BOURSES ARE IN THE GREEN (EXCEPT SPAIN)  as they start their morning/

We are seeing that the 3 major global carry trades are being unwound. The BIGGY is the first one;

1. the total dollar global short is 9 trillion USA and as such we are now witnessing a sea of red blood on the streets as derivatives blow up with the massive rise in the rise in the dollar against all paper currencies and especially with the fall of the yuan carry trade. The emerging market which house close to 50% of the 9 trillion dollar short is feeling the massive pain as their debt is quite unmanageable.

2, the Nikkei average vs gold carry trade ( NIKKEI blowing up and the yen carry trade HAS BLOWN up/and now NIRP)

3. Short Swiss franc/long assets blew up ( Eastern European housing/Nikkei etc.

These massive carry trades are terribly offside as they are being unwound. It is causing global deflation ( we are at debt saturation already) as the world reacts to lack of demand and a scarcity of debt collateral. Bourses around the globe are reacting in kind to these events as well as the potential for a GREXIT>

The NIKKEI: this FRIDAY morning: closed UP 79.68 OR 0.48% 

Trading from Europe and Asia:

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 88.02 PTS OR 0.42% . ,Shanghai CLOSED UP 13.45 OR 0.46%/ Australia BOURSE IN THE GREEN: /Nikkei (Japan) CLOSED IN THE GREEN /India’s Sensex IN THE GREEN

Gold very early morning trading: $1212.60


Early FRIDAY morning USA 10 year bond yield: 1.795% !!! DOWN 2 in basis points from THURSDAY night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%. The 30 yr bond yield RISES to 2.575 DOWN 1 in basis points from THURSDAY night. (SPREAD GOES AGAINST THE BANKS)

USA dollar index early FRIDAY morning: 95.62 UP 7 CENTS from THURSDAY’s close.(Now below resistance at a DXY of 100.)

This ends early morning numbers FRIDAY MORNING


And now your closing FRIDAY NUMBERS

Portuguese 10 year bond yield:  3.16% PAR in basis points from THURSDAY

JAPANESE BOND YIELD: -0.095% UP 1 1/2  in   basis points from THURSDAY

SPANISH 10 YR BOND YIELD:1.47%  DOWN 1 IN basis points from THURSDAY

ITALIAN 10 YR BOND YIELD: 1.33  DOWN 4 IN basis points from THURSDAY

the Italian 10 yr bond yield is trading 14 points lower than Spain.





Closing currency crosses for FRIDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/3:30 PM


Euro/USA 1.13541 UP .0189 (Euro =UP 189 basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/reacting to dovish YELLEN/ANOTHER FALL IN USA;YEN CROSS TODAY

USA/Japan: 106.75 DOWN 2.107 (Yen UP 207 basis points )

Great Britain/USA 1.4512 UP.01076 ( Pound UP 108 basis points/(HUGE BREXIT CONCERN)

USA/Canada 1.2924 DOWN 0.01233 (Canadian dollar UP 133 basis points EVEN THOUGH OIL  IS FALLING (WTI AT $48.78).


This afternoon, the Euro was UP by 189 basis points to trade at 1.1341

The Yen ROSE to 106.75 for a GAIN of 207 basis points as NIRP is STILL a big failure for the Japanese central bank/

The pound was UP 107 basis points, trading at 1.4512 ( BREXIT FEARS INCREASE )

The Canadian dollar ROSE by 133 basis points to 1.2924, WITH WTI OIL AT:  $48.80


the 10 yr Japanese bond yield closed at -.095% UP 1 1/2   IN BASIS  points in yield/

Your closing 10 yr USA bond yield: DOWN 9  IN basis points from THURSDAY at 1.707% //trading well below the resistance level of 2.27-2.32%)

USA 30 yr bond yield: 2.522 DOWN 7 in basis points on the day ( HUGE POLICY ERROR)


Your closing USA dollar index, 94.09 DOWN $1.45 (145 CENTS)  ON THE DAY/4 PM

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for FRIDAY

London:  CLOSED UP 24.02 OR 0.39%
German Dax :CLOSED DOWN 104.74 OR 1.03%
Paris Cac  CLOSED DOWN 44.22  OR 0.99%
Spain IBEX CLOSED DOWN 156.30 OR 1.74%

The Dow was DOWN 31.50.  points or 0.18%

NASDAQ DOWN 28.55 points or 0.58%
WTI Oil price; 48.78 at 4:30 pm;

Brent Oil: 49.81





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

Closing Price for Oil, 5 pm/and 10 year USA interest rate:


BRENT: 49.80

USA 10 YR BOND YIELD: 1.700%

USA DOLLAR INDEX: 93.94 DOWN 161 cents



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




The big story:  official story is payrolls with a huge miss as they only “added” 38,000 new jobs.

(courtesy BLS/zero hedge)



Payrolls Huge Miss: Only 38,000 Jobs Added In May; Worst Since September 2010

If anyone was “worried” about the Verizon strike taking away 35,000 jobs from the pro forma whisper number of 200,000 with consensus expecting 160,000 jobs, or worried about a rate hike by the Fed any time soon, you can sweep all worries away: moments ago the BLS reported that in May a paltry 38,000 jobs were added, a plunge from last month’s downward revised 123K (was 160K). The number was the lowest since September 2010!

The household survey was just as bad, with only 26,000 jobs added in May, bringing the total to 151,030K. This happened as the number of unemployed tumbled from 7,920K to 7,436K driven by a massive surge in people not in the labor force which soared to a record 94,7 million, a monthly increase of over 600,000 workers.     

As expected Verizon subtracted 35,000 workers however this was more than offset by a 36,000 drop in goods producing workers. Worse, there was no offsetting increase in temp workers (something we caution recently), and no growth in trade and transportation services.

What is striking is that while the deterioration in mining employment continued (-10,000), and since reaching a peak in September 2014, mining has lost 207,000 jobs, for the first time the BLS acknowledged that the tech bubble has also burst, reporting that employment in information declined by 34,000 in May.

The change in total nonfarm payroll employment for March was revised from +208,000  to +186,000, and the change for April was revised from +160,000 to +123,000. With these revisions, employment gains in March and April combined were 59,000 less  than previously reported. Over the past 3 months, job gains have averaged 116,000  per month.

There is no way to spin this number as anything but atrocious.


The improvement in the household survey ended, with jobs rising just 1.5% Y/Y to 151,030, the lowest annual increase since last November.

The unemployment rate tumbled to 4.7%, the lowest since August 2007, driven entirely by a massive exodus of people from the labor force: 664,000 potential workers exited the labor force pushign the number ouf of the workforce to a record high 94.7 million.

A partial silver lining was in the wage section, which saw average hourly earnings rise by 0.2%, to $25.59, while average weekly earnings posted a modest 2.3% increase.

More details from the report:

Total nonfarm payroll employment changed little in May (+38,000). Job growth occurred in health care. Mining continued to lose jobs, and a strike resulted in job losses in information. (See table B-1.)

Health care added 46,000 jobs in May, with increases occurring in ambulatory health care services (+24,000), hospitals (+17,000), and nursing care facilities (+5,000). Over the year, health care employment has increased by 487,000.

In May, mining employment continued to decline (-10,000). Since reaching a peak in September 2014, mining has lost 207,000 jobs. Support activities for  mining accounted for three-fourths of the jobs lost during this period, including  6,000 in May.

Employment in information declined by 34,000 in May. About 35,000 workers in the  telecommunications industry were on strike and not on company payrolls during  the survey reference period.

Within manufacturing, employment in durable goods declined by 18,000 in May, with job losses of 7,000 in machinery and 3,000 in furniture and related products.

Employment in professional and business services changed little in May (+10,000), after increasing by 55,000 in April. Within the industry, professional and technical services added 26,000 jobs in May, in line with average monthly gains over the prior 12 months. Employment in temporary help services was little changed over the month (-21,000) but is down by 64,000 thus far this year.

Employment in other major industries, including construction, wholesale trade,  retail trade, transportation and warehousing, financial activities, leisure and hospitality, and government, changed little over the month.

The average workweek for all employees on private nonfarm payrolls was unchanged at 34.4 hours in May. The manufacturing workweek increased by 0.1 hour to 40.8 hours, and manufacturing overtime was unchanged at 3.2 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was unchanged at 33.6 hours. (See tables B-2 and B-7.)

In May, average hourly earnings for all employees on private nonfarm payrolls increased by 5 cents to $25.59, following an increase of 9 cents in April. Over the year, average hourly earnings have risen by 2.5 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by  3 cents to $21.49 in May. (See tables B-3 and B-8.)

The change in total nonfarm payroll employment for March was revised from +208,000  to +186,000, and the change for April was revised from +160,000 to +123,000. With these revisions, employment gains in March and April combined were 59,000 less  than previously reported. Over the past 3 months, job gains have averaged 116,000  per month.




Now for the real story:


First:  Americans not in  the labour force surged by a huge 664,000 jobs. The total is now 94.7 million souls not working!  The unemployment then lowers to 4.7%.  The participation rate in the labour force is down to only 62.6%

(courtesy zero hedge)


Americans Not In The Labor Force Soar To Record 94.7 Million, Surge By 664,000 In One Month

ii) the trend for hiring part timers increases.  Just wait until the real cost of Obamacare hits as firms release full time workers and replace them with part timers.

(courtesy zero hedge)





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