Dec 23:Gold up/silver down/Gold premiums around $30.00 Shanghai gold vs NY Pricing/Monte dei Paschi nationalized: bail in on bondholders, must wait for other banks if they need recap./Deutsche bank and Credit Suisse settle with DOJ, Barclay’s goes to court/Canada’s GDP contracts .3% despite higher oil and lower loonie/China admits that it’s growth rate will be below 6.5% and that caused the Aussie dollar to falter/

Gold at (1:30 am est) $1131.90 UP $3.10

silver  at $15.70:  DOWN 12 cents

Access market prices:

Gold: $1134.00

Silver: $15.76

THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON

.

The Shanghai fix is at 10:15 pm est last night and 2:15 am est early this morning

The fix for London is at 5:30  am est (first fix) and 10 am est (second fix)

Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.

And now the fix recordings:

FRIDAY gold fix Shanghai

Shanghai morning fix Dec 23 (10:15 pm est last night): $  1161.13

NY ACCESS PRICE: $1131.10 (AT THE EXACT SAME TIME)/premium $30.03

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Shanghai afternoon fix:  2: 15 am est (second fix/early  morning):$   1161.95

NY ACCESS PRICE: $1131.40 (AT THE EXACT SAME TIME/2:15 am)

HUGE SPREAD 2ND FIX TODAY!!:  $30.55

China rejects NY pricing of gold  as a fraud/arbitrage will now commence fully

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

London Fix: Dec 23: 5:30 am est:  $1131.00   (NY: same time:  $1131.70    5:30AM)

London Second fix Dec 23: 10 am est:  $XXXX (NY same time: $1133.20    10 AM)

It seems that Shanghai pricing is higher than the other  two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.

Also why would mining companies hand in their gold to the comex and receive constantly lower prices.  They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.

end

For comex gold: 

NOTICES FILINGS FOR DECEMBER CONTRACT MONTH:  0 NOTICE(S) FOR nil OZ.  TOTAL NOTICES SO FAR: 9126 FOR 912600 OZ    (28.385 TONNES)

For silver:

 NOTICES FOR DECEMBER CONTRACT MONTH FOR SILVER: 13 NOTICE(s) FOR 65,000  OZ. TOTAL NUMBER OF NOTICES FILED SO FAR; 3780 FOR 18,900,000 OZ

Let us have a look at the data for today

.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total open interest ROSE by 1223 contracts UP to 161,272 with respect to YESTERDAY’S TRADING.    In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .806 BILLION TO BE EXACT or 115% of annual global silver production (ex Russia & ex China).

FOR THE DECEMBER FRONT MONTH:  13 NOTICES FILED FOR 65,000  OZ.

In gold, the total comex gold ROSE BY 1632 contracts DESPITE THE FACT THAT WE HAD A FALL IN  THE PRICE GOLD ($2.30 with YESTERDAY’S trading ).The total gold OI stands at 403,611 contracts. We are very close to the bottom with respect to OI. Generally 390,000 should do it.

we had 0 notice(s) filed upon for NIL oz of gold.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD:

We had no change in tonnes of gold at the GLD,

Inventory rests tonight: 824.54 tonnes

.

SLV

we had NO  changes in silver,

THE SLV Inventory rests at: 340.210 million oz

.

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

1. Today, we had the open interest in silver ROSE by 1223 contracts UP to 161,272 DESPITE THE FACT THAT the price of silver FELL by  $0.10 with YESTERDAY’S trading. The gold open interest ROSE by 1632 contracts UP to 402,653 as the price of gold FELL BY $2.30 WITH YESTERDAY’S TRADING.

(report Harvey).

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

2c) COT report

Harvey

3. ASIAN AFFAIRS

i)Late  THURSDAY night/FRIDAY morning: Shanghai closed DOWN 29.40 POINTS OR 0.94%/ /Hang Sang closed DOWN 61.44  OR 0.28%. The Nikkei closed /Australia’s all ordinaires  CLOSED DOWN 0.29% /Chinese yuan (ONSHORE) closed UP at 6.9458/Oil ROSE to 52.43 dollars per barrel for WTI and 54.47 for Brent. Stocks in Europe: ALL MIXED.  Offshore yuan trades  6.9512 yuan to the dollar vs 6.9458  for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT AS  MORE USA DOLLARS ARE ATTEMPTING TO LEAVE CHINA’S SHORES /

REPORT ON JAPAN  SOUTH KOREA NORTH KOREA AND CHINA

3a)THAILAND/SOUTH KOREA

none today

b) REPORT ON JAPAN

NONE TODAY

c) REPORT ON CHINA

i)Thursday night:

China not very happy with the Navarro appointment. As I indicated to you on Wednesday the USA is planning either a 10% import tariff or a “border tax proposal” both of which will cause China to devalue its currency greatly and a trade war would commence in earnest:

( zero hedge)

ii)Early Friday morning

 Chinese citizens sure now how to use Bitcoin to get USA dollars out of the country.
Bitcoin rose to $900.00 per coin.
( zero hedge)

4 EUROPEAN AFFAIRS

i)Monte dei Paschi

The world’s oldest bank will be officially nationalized.  The government is to provide 20 billion euros to all suffering banks including Monte dei Paschi.

The junior bondholders  will take a hit as follows:

1.a haircut of 25% on tier one bonds

2. no haircut on tier two bonds

thus the burden sharing will be fulfilled. However the bigger problem is the massive run on the bank as depositors flee  this sunken ship. Also remember that Italy has already a huge debt to GDP problem of around 135%. Another 20 billion euros + will increase that ratio even more.

( zero hedge)

 

ii)Germany/Deutsche bank

Deutsche bank agrees to a 7.2 billion dollar settlement with the DOJ

( zero hedge)

iii)Switzerland/Credit Suisse vs USA
Credit Suisse settles with the DOJ:  $5.3 billion which includes a 2.8 billion relief for homeowners hit by the collapse in house prices.
( zero hedge)
iv)Berlin Germany/ Truck Terrorist killed in Milan Italy
Suspect in the Berlin truck terrorist attack is killed in a shootout in Milan. How did he get to Milan undetected.
( zero hedge)
v) UK/Barclay’s
As promised , this one is going to be a good one: Barclay’s chief is preparing to take a stand against the USA stating that fines are unduly high against European banks when compared to the crimes committed by USA banks.  I would love to attend this court hearing:
( UKTelegraph) special thanks to Robert H for sending this for us:

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Not again.. A hijacked Libyan airplane with 111 passengers of board lands in Malta and the pro Gaddafi suspects threatens to blow up the plane:

( zero hedge)

 

ii)Putin  in his year end address:  he attacks the democratic party as losers. He talks about Trump and the Russian economy:

( zero hedge)

USA to Russia:

Trump doubles down on the nukes story: “let it be an arms race..we will outlast them all”

( zero hedge)

 

6.GLOBAL ISSUES

Canada

i)This is not good for Canada as the Canadian economy crashed in Q3 down .3% in GDP. This was done with oil prices higher. Manufacturing also collapsed with the lower Cdn dollar..go figure!!  The loonie crashed to 1.35475

( zero hedge)

Australia/China

7. OIL ISSUES

Last week we reported on a huge increase in USA oil rigs.  Today Baker Huges reports that oil rigs rose again, for the 28th weekly rise out of the last 30 by another 13 rigs. The number of rigs in use:  523, the highest since the first week of Jan 2016.  Expect huge production increase from the USA.

(courtesy zero hedge/Baker Hughes)

8. EMERGING MARKETS

none today

9.   PHYSICAL MARKETS

i)I brought this to your attention yesterday concerning the huge increase in gold purchases by Russia.  You will recall that some pundits thought Russia might sell her gold because of deficits.  Guess again!!

( Seeking Alpha/Hebba Investments)

ii)Unbelievable! Avery Goodman comments on the new spot gold and silver contract which is nothing but a fraud!!  There is no physical gold or silver that will be deliverable

( Avery Goodman/GATA)

iii)I brought this to your attention yesterday and it is worth repeating

( Dmitri Speck/GATA)

iv)Reuters comments on the Deutsche bank 7.2 billion uSA settlement with respect to the mortgage fraud in 2008

(Reuters/GATA)

10.USA STORIES

i)Donald trump tees off on Lockheed as he tells Boeing to make a cheaper F18 to compete against Lockheed’s F35

( zero hedge)

ii)An excellent commentary explaining why the situation for pensions reform is a must. The birthrate among women is now the lowest on record at 1.9.  To keep on an even keel we need 2.1

( Mac Slavo/SHTFPlan.com)

iii)More fake data: we have soaring homebuilder confidence, crashing mortgage applications, rising mortgage rates, weaker pending home sales and now strong existing home states to go along with strong new home sales. The truth???

( zero hedge)

iv)Another strange data points:  consumer confidence at a 12 yr high and yet inflation expectations tumble to all time lows:  what they are not buying trumpflation:

( zero hedge)

Let us head over to the comex:

The total gold comex open interest ROSE BY 1632 CONTRACTS UP to an OI level of 402,653 DESPITE THE FACT THAT THE  PRICE OF GOLD  FELL $2.30 with YESTERDAY’S trading. We are now in the contract month of December and it is the biggest of the year. Here the front month of December showed a DECREASE of 77 contracts DOWN to 608.We had 0 notice(s) served upon yesterday so we LOST 77 contracts 7700 oz will not stand for delivery and no doubt were bought out for cash plus a fiat bonus.

For the next delivery month of January we had a loss of 34 contracts down to 2097. For the next big active delivery month of February we had a GAIN of 689 contracts UP to 275,832.

We had 0 notice(s) filed upon today for  NIL oz

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.  Total silver OI ROSE by 1223 contracts FROM  159,697 UP TO 161,272 DESPITE THE FACT THAT the price of silver FELL BY $0.10 with YESTERDAY’S trading. We are moving  further from the all time record high for silver open interest set on Wednesday August 3/2016:  (224,540). We are now in the next major delivery month of December and here it FELL BY 217 contracts DOWN to 231 CONTRACTS . We had 233 notices served upon yesterday so we GAINED 16 SILVER CONTRACTS or 80,000 additional silver ounces that will stand for delivery.

The next non active delivery month is January and here the OI ROSE by 26 contracts UP to 1053.

The next big active delivery month is March and here the OI ROSE by 1071 contracts UP to 131,574 contracts.

We had 13 notices filed for 65,000 oz for the December contract.

Eventually at the end of December 2015: 6.4512 tonnes of gold stood for delivery

Eventually at the end of December 2015: 18.84 million oz of silver stood for delivery

VOLUMES: for the gold comex

Today the estimated volume was 73,889  contracts which is awful.

Yesterday’s confirmed volume was 126,256 contracts  which is awful

Initial standings for DECEMBER
 Dec 23.
Gold Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  
 16,075.00 oz
Scotia
500 kilobars
Deposits to the Dealer Inventory in oz nil oz
Deposits to the Customer Inventory, in oz 
  36,972.500 oz
International Services of Delaware
1150 kilobars.
No of oz served (contracts) today
 
0 notice(s)
NIL oz
No of oz to be served (notices)
608 contracts
60,800 oz
Total monthly oz gold served (contracts) so far this month
9126 notices
912,600 oz
28.385 tonnes
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil oz
Total accumulative withdrawal of gold from the Customer inventory this month     4,433,144.3 oz
Today we HAD 3 kilobar transactions/
Today we had 0 deposit(s) into the dealer:
total dealer deposits:  nil  oz
We had nil dealer withdrawals:
total dealer withdrawals:  nil oz
we had 1 customer deposit(s):
 i) Into International Services of Delaware: 36,972.500 oz
(1150 kilobars)
these guys are new to the scene and have been taught quite well by the other bankers to bring in fake deposits like the above “kilobars”
total customer deposits; 36972.500 oz
We had 1 customer withdrawal(s)
i) out of Scotia: 16,075.00 oz
500 kilobars
total customer withdrawal: 16,075.000 oz
We had 1  adjustment(s)
 i) Out of Scotia:
1093.32 oz was adjusted out of the dealer and this landed into the customer account of Scotia
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

For December:

Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contract(s)  of which 0 notices were stopped (received) by jPMorgan dealer and 0 notice(s) was (were) stopped/ Received) by jPMorgan customer account.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the initial total number of gold ounces standing for the DECEMBER. contract month, we take the total number of notices filed so far for the month (9126) x 100 oz or 912,600 oz, to which we add the difference between the open interest for the front month of DEC (608 contracts) minus the number of notices served upon today (0) x 100 oz per contract equals 973,400 oz, the number of ounces standing in this non  active month of DECEMBER.
 
Thus the INITIAL standings for gold for the DEC contract month:
No of notices served so far (9126) x 100 oz  or ounces + {OI for the front month (608) minus the number of  notices served upon today (0) x 100 oz which equals 973,400 oz standing in this non active delivery month of DEC  (30.2768 tonnes)
WE LOST 77  CONTRACTS OR AN ADDITIONAL 7700 OZ OF GOLD WILL NOT STAND FOR DELIVERY.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
I have now gone over all of the final deliveries for this year and it is startling.
First of all:  in 2015 for the 12 months: 51 tonnes delivered upon for an average of 4.25 tonnes per month.
Here are the final deliveries for 2016:
Jan 2016:  .5349 tonnes  (Jan is a non delivery month)
Feb 2015:  7.9876 tonnes (Feb is a delivery month/deliveries this month very low)
March 2015: 2.311 tonnes (March is a non delivery month)
April:  12.3917 tonnes (April is a delivery month/levels on the low side
And then something happens and from May forward deliveries boom!
May; 6.889 tonnes (May is a non delivery month)
June; 48.552 tonnes ( June is a very big delivery month and in the end deliveries were huge)
July: 21.452 tonnes (July is a non delivery month and generally a poor one/not this time!)
August: 44.358 tonnes (August is a good delivery month and it came to fruition)
Sept:  8.4167 tonnes (Sept is a non delivery month)
Oct; 30.407 tonnes complete.
Nov.    8.3950 tonnes.
DEC.   30.277 tonnes
total for the 12 months;  222.832 tonnes
average 18.569 tonnes per month vs last yr 51 tonnes total for 12 months or 4.25 tonnes average per month. From May 2016 until Dec 2016 we have had: 198.643 tonnes per the 8 months or 24.830 tonnes per month (which includes the non delivery months of May, June and Sept).  In essence the demand for gold is skyrocketing.
Something big is going on inside the gold comex.
Just take a look at Nov 2016 deliveries at 8.3950 tonnes compared to last yr 0.6656 tonnes
December so far:  30.239 tonnes are standing vs last year’s  24 tonnes on first day notice and 6.45 tonnes on the completion of it’s delivery month.
Total dealer inventor 1,639,572.999 or 50.99 tonnes DEALER RAPIDLY LOSING GOLD
Total gold inventory (dealer and customer) = 9,027,436.160 or 280.79 tonnes 
 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 280.79 tonnes for a  loss of 22  tonnes over that period.  Since August 8/2016 we have lost 73 tonnes leaving the comex. However I am including kilobar transactions and they are very suspect at best
I have a sneaky feeling that these withdrawals of gold in kilobars are being used in the hypothecating process  and are being used in the raiding of gold!

The gold comex is an absolute fraud.  The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction.  This would be similar to the rehypothecated gold used by Jon Corzine at MF Global.
 
IN THE LAST 4 1/2 MONTHS  73 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE DECEMBER DELIVERY MONTH
DECEMBER INITIAL standings
 Dec 23. 2016
Silver Ounces
Withdrawals from Dealers Inventory  nil
Withdrawals from Customer Inventory
 13,681.800 0z
Brinks
Deposits to the Dealer Inventory
  nil OZ
Deposits to the Customer Inventory 
796,963.43 oz
Brinks
No of oz served today (contracts)
13 CONTRACT(S)
(65,000 OZ)
No of oz to be served (notices)
218 contracts
(1,090,000  oz)
Total monthly oz silver served (contracts) 3780 contracts (18,900,000 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  3,689,995.4 oz
 END
today, we had 0 deposit(s) into the dealer account:
total dealer deposit: nil oz
we had nil dealer withdrawals:
total dealer withdrawals: nil oz
we had 1 customer withdrawal(s):
i) Out of Brinks:  13,681.800 oz
TOTAL CUSTOMER WITHDRAWALS: 13,681.800 oz
 we had 1 customer deposit(s):
 i) into Brinks: 796,963.43 oz
total customer deposits;  796,963.43  oz
 
 
 we had 0 adjustment(s)
The total number of notices filed today for the DEC. contract month is represented by 13 contracts for 65,000 oz. To calculate the number of silver ounces that will stand for delivery in DEC., we take the total number of notices filed for the month so far at  3780 x 5,000 oz  = 18,900,000 oz to which we add the difference between the open interest for the front month of DEC (231) and the number of notices served upon today (13) x 5000 oz equals the number of ounces standing 
 
Thus the initial standings for silver for the DEC contract month:  3780(notices served so far)x 5000 oz +(231) OI for front month of DEC. ) -number of notices served upon today (13)x 5000 oz  equals  19,990,000 oz  of silver standing for the DEC contract month.
we gained 16  silver contracts or an additional 80,000 oz will stand for delivery in this active month of December.
Volumes: for silver comex
Today the estimated volume was 25,873 which is poor
YESTERDAY’S  confirmed volume was 45,254 contracts  which is very good.
 
Total dealer silver:  36.152 million (close to record low inventory  
Total number of dealer and customer silver:   183.578 million oz
The total open interest on silver is NOW moving away from  its all time high with the record of 224,540 being set AUGUST 3.2016.

end

And now our COT report which gives position levels of our major players.

 

COT Gold, Silver and US Dollar Index Report – December 23, 2016
 — Published: Friday, 23 December 2016 | Print  | Disqus

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
219,067 104,233 44,342 87,960 221,982 351,369 370,557
Change from Prior Reporting Period
-10,688 3,789 9,298 1,817 -14,047 427 -960
Traders
153 85 80 48 48 232 187
 
  Small Speculators      
  Long Short Open Interest    
  47,292 28,104 398,661    
  1,200 2,587 1,627    
  non reportable positions Change from the previous reporting period  
COT Gold Report – Positions as of Tuesday, December 20, 2016
Our large speculators:
those large specs that have been long in gold pitched 10,688 contracts from their long side.
those large specs that have been short in gold added 3789 contracts to their short side.
Our Commercials
those commercials that have been long in gold added 1817 contracts to their long side
those commercials that have been short in gold covered another 14,047 contracts to their short side.
Our small specs;
those small specs that have been long in gold added 1200 contracts to their long side
those small specs that have been short in gold added 2587 contracts to their short side
Conclusion:
the commercials go net long again by 15,864 contracts.  The specs  longs are being goaded  to the short side.  The commercials are setting them up!
And now our silver COT
Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
83,529 22,635 9,796 42,097 116,045
-3,511 2,528 175 230 -6,953
Traders
92 42 35 32 40
Small Speculators Open Interest Total
Long Short 159,697 Long Short
24,275 11,221 135,422 148,476
-753 391 -3,859 -3,106 -4,250
non reportable positions Positions as of: 138 107
  Tuesday, December 20, 2016   © SilverSeek.
Our large speculators:
those large specs that have been long in silver pitched 3511 contracts from their long side.
those large specs that have been short in silver added 2528 contracts to their short side.
Our criminal commercials:
those commercials that have been long in silver added 230 contracts to their long side
those commercials that have been short in silver covered a huge 6953 contracts from their long side.
Our small specs:
those small specs that have been long in silver pitched 753 contracts from their long side.
those small specs that have been short in silver added 391 contracts from their short side.
Conclusions:
commercials go net long by 7183 contracts and that is bullish.  The commercials are goading the specs to go net short.  They are being set up!
And now the Gold inventory at the GLD
Dec 23/NO CHANGES IN GOLD INVENTORY AT THE GLD/RESTS TONIGHT AT 824.54 TONNES
Dec 22/no change in inventory at the GLD/Inventory rests at 824.54 tonnes
DEC 21/another massive 3.56 tonnes leaves the GLD/Inventory rests at 824.54 tonnes
Dec 20/no changes in gold inventory at the GLD/Inventory rests at 828.10 tonnes
Dec 19/A MASSIVE WITHDRAWAL OF 14.23 TONNES OF GOLD FROM THE GLD (WITH GOLD UP THESE PAST TWO TRADING SESSIONS)/INVENTORY RESTS TONIGHT AT 828.10 TONNES
Dec 16/no changes at the GLD/Inventory rests at 842.33 tonnes
Dec 15/ANOTHER HUGE WITHDRAWAL OF 7.11 TONNES OF GOLD/INVENTORY RESTS AT 842.33 TONNES
DEC 14/another huge withdrawal of 6.82 tonnes from the GLD/Inventory rests at 849.44 tonnes/
DEC 13/no changes in gold inventory at the GLD/Inventory rests at 856.26 tonnes
Dec 12/a withdrawal of 1.19 tonnes of gold from the GLD/Inventory rests at 856.26 tonnes
Dec 9/another huge withdrawal of 3.26 tonnes of gold leaves the GLD vaults on its way to Shanghai/Inventory rests this weekend at 857.45 tonnes
Dec 8/ANOTHER HUGE WITHDRAWAL OF 2.96 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 860.71 TONNES (THIS GOLD IS HEADING TO SHANGHAI)
DEC 7/ a huge change in gold inventory/a withdrawal of 6.23 tonnesas this gold is heading towards Shanghai/inventory rests at 863.67 tonnes
Dec 6/no changes in gold inventory/inventory rests at 869.92 tonnes.
Dec 5./ a tiny withdrawal of .32 tonnes and this is probably to pay for fees/inventory rests tonight at 869.92 tonnes
Dec 2/a huge withdrawal of 13.64 tonnes of gold leaving the GLD vaults/no doubt this is heading to Shanghai taking advantage of the huge premium/inventory rests tonight at 870.22 tonnes
Dec 1/no change in gold inventory at the GLD/Inventory rests at 883.86 tonnes
NOV 30/A SMALL WITHDRAWAL OF 1.18 TONNES FROM THE GLD/INVENTORY RESTS AT 883.86 TONNES/MAYBE THEY ARE AT THE BOTTOM OF THE BARREL FOR PHYSICAL GOLD TO TRANSFER TO THE BANKERS.
Nov 29/no changes in gold inventory at the GLD/inventory rests at 885.04 tonnes
Nov 28/no change in gold inventory at the GLD/Inventory rests at 885.04 tonnes
Nov 25 We had a massive 19.87 tonnes of gold leave the GLD/this would be a paper loss not real gold (they only have paper gold in their inventory/total inventory: 885.04 tonnes
Nov 23/a huge withdrawal of paper gold from the GLD equal to 4.66 tonnes/inventory rests at 904.91 tonnes
NOV 22/no changes at the GLD/Inventory rests at 908.76 tonnes
Nov 21/A MASSIVE 11.87 TONNES OF PAPER GOLD WERE SUPPLIED BY THE CROOKS TO SUPPRESS THE PRICE OF GOLD/INVENTORY RESTS AT 908.76 TONNES/ AND GOLD RISES???
Nov 18/no changes at the GLD/Inventory rests at 920.63 tonnes
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Dec 23/ Inventory rests tonight at 824.54 tonnes
*IN LAST 57 TRADING DAYS: 125.27 TONNES REMOVED FROM THE GLD
*LAST 3 TRADING DAYS: 0 TONNES HAVE LEFT

end

Now the SLV Inventory
Dec 23/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 340.210 MILLION OZ/
Dec 22/WE HAD A SMALL DEPOSIT OF 948,000 OZ INTO THE SLV/INVENTORY RESTS AT 340.210 MILLION OZ/
DEC 21/no change in silver inventory at the SLV/Inventory rests at 339.262 million oz
Dec 20/a small withdrawal of 758,000 oz/inventory rests at 339.262 tonnes
Dec 19A HUGE DEPOSIT OF 1.327 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 340.020 MILLION OZ
Dec 16/A HUGE WITHDRAWAL OF 2.37 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 338.693 MILLION OZ/
Dec 15/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 341.063 MILLION OZ/
Dec 14.no change in inventory at the SLV/Inventory rests at 341.063 million oz/
DEC 13/ a huge withdrawal of 1.802 million oz from the SLV/Inventory rests at 341.063 million oz
Dec 12/no change in silver inventory/inventory rests at 342.865 million oz/
Dec 9/no change in silver inventory/inventory rests at 342.865 million oz/
Dec 8/a huge withdrawal of 3.09 million oz from the SLV/Inventory rests at 342.865 million oz
DEC7/no changes in silver inventory at the SLV/Inventory rests at 345.995 million oz/
Dec 6/no changes in silver inventory at the SLV/inventory rests at 345.995 million oz
Dec 5/no changes in silver inventory at the SLV/inventory rests at 345.995 million oz/
Dec 2 a tiny withdrawal of 155,000 oz and this is probably to pay for fees/inventory rests at 345.995 million oz/
Dec 1/no changes in silver inventory at the SLV/inventory rests at 346.150 million oz/
NOV 30/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 346.150 MILLION OZ
Nov 29/no changes in silver inventory /inventory rests tonight at 346.150 million oz/
Nov 28/no change in silver inventory/inventory rests tonight at 346.150 million oz/
Nov 25/we had another withdrawal of 949,000 oz from the SLV/Inventory rests at 346.150 million oz
Nov 23/A HUGE WITHDRAWAL OF 3.083 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 347.099 MILLION OZ
NOV 22/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 350.182 MILLION OZ
Nov 21/a MASSIVE 6.071 MILLION OZ OF SILVER WITHDRAWN FROM THE SLV VAULTS/INVENTORY RESTS AT 350.182 MILLION OZ/AND SILVER HOLDS IN PRICE???
Nov 18/no changes in silver inventory at the SLV/Inventory rests at 356.253 million oz
.
Dec 23.2016: Inventory 340.210  million oz
 end

NPV for Sprott and Central Fund of Canada

1. Central Fund of Canada: traded at Negative 7.6 percent to NAV usa funds and Negative 7.6% to NAV for Cdn funds!!!! 
Percentage of fund in gold 61.2%
Percentage of fund in silver:38.5%
cash .+0.3%( Dec 23/2016)
.
2. Sprott silver fund (PSLV): Premium FALLS to -.09%!!!! NAV (Dec 23/2016) 
3. Sprott gold fund (PHYS): premium to NAV RISES TO – 0.73% to NAV  ( Dec 23/2016)
Note: Sprott silver trust back  into NEGATIVE territory at -0.09% /Sprott physical gold trust is back into NEGATIVE territory at -0.73%/Central fund of Canada’s is still in jail.
 

end

Major gold/silver stories for FRIDAY

GOLDCORE/BLOG/MARK O’BYRNE

US: Five Must Gold See Charts – Gold Miners Are “Running Out” of Gold

Gold Mining Companies Are Running Out of Gold: Five Must See Charts

  • ‘Peak gold’ – World’s gold production to peak in 2019 and decline
  • Gold found by miners has plunged 85% over past decade
  • Gold mining CEOs turning to deals to combat dwindling reserves
  • Exploration more difficult and firms have cut capex

The reality of peak gold production has recently been acknowledged by Bloomberg and some of the financial media. Yet the mainstream, non specialist financial media has yet to cover this important topic with obvious ramifications for the gold market and the gold price in the medium and long term.

Peak gold production is happening globally which is very positive for gold and gold mining shares. Bloomberg have again covered this important fundamental factor in the market and have done so with an article and five must see gold charts:

“Gold’s had a roller-coaster year, surging as much as 30 percent before giving up the bulk of those gains. But one trend has been consistent: mining companies are finding it harder to dig up more of the precious metal.

The following charts show why, and what that means for the industry:”

FOR REST OF THE COMMENTARY SEE:

http://www.goldcore.com/us/gold-blog/us-five-must-gold-see-charts-gold-miners-running-gold/

end

I brought this to your attention yesterday concerning the huge increase in gold purchases by Russia.  You will recall that some pundits thought Russia might sell her gold because of deficits.  Guess again!!

(courtesy Seeking Alpha/Hebba Investments)

Russia Just Released Its November Gold Purchases … And They Surprised Us

Dec. 22, 2016 9:04 PM ET

|

Summary

Russia followed up its October gold purchase with another 1 million ounces bought in November.

This significant purchase signifies that Russia was not just purchasing gold in October to hedge the possibility of an anti-Russian US president.

The Russian central bank thinks there is value in owning gold as we move forward and we believe the same.

A few days ago, the Russian central bank released its gold reserve data for November, which is something we have been anxiously waiting for since their record-breaking September purchase that we detailed in our last piece.

To rehash, the reason November gold purchases were so important to us was because it would give very important insight into what the Russian central bank thought of the global financial system moving forward.

If Russia followed up its strong October gold purchases with a relatively small purchase in November, then that could signify that October’s massive purchases were simply U.S. election hedging with the expectation that an anti-Russia regime (Clinton) would come into power. Of course, since Trump was elected then there would be little reason to buy gold as a U.S. political hedge as Trump is expected to be pro-Russian.

If Russia followed up its October purchase with a large November purchase, then that would signify to us that October’s purchase was not merely U.S. election hedging, but rather something related to Russia’s view of the financial world.

In this case, the reasoning in quickly purchasing so much gold could be to hedge/replace their bond holdings. It would be a logical move as the recent rise in bond yields lowers the value of existing bond-holdings – and Russia holds a lot of bonds. Thus, with the massive rise in bond yields in November, we would expect Russia to purchase even MORE gold in November if that was their reasoning.

So let us look at what Russia did with its gold holdings in November.

Source: Gold Charts R_US

It turns out that during the month of November, Russia decided to add another 1 million ounces of gold to its reserves (around 34 tonnes). That suggests that the massive buying of gold in October was not necessarily related to hedging a Clinton presidency.

It seems that the Russian central bank views gold as a very attractive asset and is willing to continue to buy large amounts of the metal despite the overwhelmingly negative sentiment surrounding gold.

Last month Russian bought around 48 tonnes of gold and adding that to this month’s 34 tonnes, Russia has bought around 2.5% of total WORLD gold production over the past two months. That is significant.

Takeaways for Gold Investors

Russia’s purchase of one million ounces of gold for its reserves tells us quite a bit of Russia’s view of the future of financial system and that gold seems to be an important part of it – this wasn’t just U.S. election hedging.

This supports our view that despite the current negative sentiment in gold, there may be a very bright future in owning the shiny yellow metal. Could it be that the great bond market run is over and large bondholders (think central banks) are starting to diversify their holdings? Or is the financial system in much worse shape than equity markets are pricing in? Or will we start to see some inflationary consequences of the trillions of dollars of QE that worldwide central banks have unleashed?

All the above-mentioned scenarios gold makes an excellent bond-hedge and would explain Russia’s willingness to add significant amounts to its gold reserves over the past few months. We also would not be surprised to see some major buying from the Chinese central bank after its comments that it might make “tactical adjustments” to its U.S. bond holdings. Remember when it comes to central banks, it doesn’t take much in the way of reserves to purchase significant percentages of total world gold supplies – especially when it comes to the physical gold market.

Thus, long term investors should take this as a bullish factor and keep in mind the big picture when it comes to gold. Additionally, the miners that have been underperforming gold over the last few months may offer investors considerable leverage to any rise in the gold price. Investors looking for this leverage may want to consider evaluating gold miners such as Goldcorp (NYSE:GG), Agnico-Eagle (NYSE:AEM), Newmont (NYSE:NEM), or even some of the explorers and silver miners such as Tahoe Resources (NYSE:TAHO). (We’re not suggesting these companies specifically – only suggesting them for further investor research).

In sum, Investors need to be patient and realize that there is a lot of value in holding gold despite the negative price sentiment.

 

 

END

 

Unbelievable! Avery Goodman comments on the new spot gold and silver contract which is nothing but a fraud!!  There is no physical gold or silver that will be deliverable

(courtesy Avery Goodman/GATA)

Avery Goodman: Comex creates fake ‘spot’ physical gold and silver market

Section:

2p ET Thursday, December 22, 2016

Dear Friend of GATA and Gold:

Securities lawyer and market analyst Avery Goodman today warns investors against another unallocated gold scam being concocted by CME Group, operator of the New York Commodity Exchange. Goodman’s commentary is headlined “Comex Creates Fake ‘Spot’ Physical Gold and Silver Market” and it’s posted at his internet site here:

http://averybgoodman.com/myblog/2016/12/22/cme-inc-to-create-a-fake-spot…

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

 

 

END

 

I brought this to your attention yesterday and it is worth repeating

(courtesy Dmitri Speck/GATA)

Dimitri Speck: Deutsche Bank settlement and charts provide market manipulation evidence

Section:

7:42p ET Thursday, December 22, 2016

Dear Friend of GATA and Gold:

Gold researcher and author Dimitri Speck recounts today how the daily pattern of the gold price as it traded around the world disclosed the price-suppression scheme of the gold cartel 14 years ago and particularly incriminated the daily London gold price fixing. Speck’s commentary is headlined “Deutsche Bank Settlement: Seasonal Intraday Charts Provide Evidence for Market Manipulation” and it’s posted at the Acting Man internet site here:

http://www.acting-man.com/?p=48226

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

 

 

END

 

Reuters comments on the Deutsche bank 7.2 billion uSA settlement with respect to the mortgage fraud in 2008

(courtesy Reuters/GATA)

Deutsche Bank agrees to $7.2 billion mortgage settlement with U.S.

Section:

By Karen Freifeld, Arno Schuetze, and Kathrin Jones
Reuters
Friday, December 23, 2016

Deutsche Bank has agreed to a $7.2 billion settlement with the U.S. Department of Justice over its sale and pooling of toxic mortgage securities in the run-up to the 2008 financial crisis.

The agreement in principle, announced by Deutsche Bank’s Frankfurt headquarters early Friday morning, offers some relief to the German lender, whose stock was hit hard in September after it acknowledged the Justice Department had been seeking nearly twice as much.

It also highlights the Justice Department’s recent efforts to hold European banks accountable for shoddy securities that contributed to the U.S. housing market collapse.

The department sued Barclays PLC on Thursday over similar claims, after having reached $46 billion in settlements with U.S. banks over the last three years. …

As part of the agreement, Deutsche Bank would pay a civil monetary penalty of $3.1 billion and provide $4.1 billion in consumer relief, such as loan forgiveness. The bank cautioned that there is “no assurance” the two sides will agree on the final documents. …

… For the remainder of the report:

http://www.reuters.com/article/us-deutsche-bank-mortgages-settlement-idU…

END


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 UP to 6.9458(SMALL REVALUATION NORTHBOUND  /CHINA UNHAPPY TODAY CONCERNING USA DOLLAR RISE/MORE $ USA DOLLARS LEAVE CHINA/OFFSHORE YUAN WIDENS A BIT  TO 6.9512 / Shanghai bourse CLOSED DOWN 29.40 POINTS OR 0.94%   / HANG SANG CLOSED DOWN 61.44 OR 0.280%

2. Nikkei closed /USA: YEN FALLS TO 117.31

3. Europe stocks opened ALL MIXED     ( /USA dollar index FALLS TO  103.00/Euro UP to 1.0456

3b Japan 10 year bond yield: REMAINS AT    +.056%/     !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 117.31/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD FINALLY IN THE POSITIVE/BANK OF JAPAN LOSING CONTROL OF THEIR YIELD CURVE AS THEY PURCHASE ALL BONDS TO GET TO ZERO RATE!!

3c Nikkei now JUST BELOW 17,000

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

3e WTI::  52.43  and Brent: 54.47

3f Gold UP/Yen UP

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10 yr bund FALLS TO +244.%/Italian 10 yr bond yield FALLS 4 full basis points to 1.818%    

3j Greek 10 year bond yield RISES to  : 7.25%   

3k Gold at $1131.00/silver $15.80(7:45 am est)   SILVER BELOW RESISTANCE AT $18.50 

3l USA vs Russian rouble; (Russian rouble DOWN  18/100 in  roubles/dollar) 61.15-

3m oil into the 52 dollar handle for WTI and 54 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/GOT a SMALL   REVALUATION UPWARD from POBC.

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 117.31 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning  1.0245 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0712 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

3p BRITAIN VOTES AFFIRMATIVE BREXIT

3r the 10 Year German bund now POSITIVE territory with the 10 year FALLS to  +.244%

3s The Greece ELA NOW a 71.4 billion euros,AND NOW THE ECB WILL ACCEPT GREEK BONDS (WHAT A DISASTER)

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 2.5451% early this morning. Thirty year rate  at 3.115% /POLICY ERROR)GETTING DANGEROUSLY HIGH

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

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

HELICOPTER MONEY STILL ON THE TABLE FOR THE FUTURE/JAPANESE STIMULUS PLAN DISAPPOINTS

Futures Unchanged In Thin Pre-Holiday Tape; Italian Bank Bailout Lifts European Shares

European stocks halted two days of declines, with the Stoxx 600 fractionally in the green and Italy’s bonds climbing after Monte Paschi requested a bailout and Italy pledged to provide support for its other ailing lenders. S&P futures were little changed among extremely thin volumes while Chinese stocks dropped amid concerns on higher borrowing costs. Oil slid, while gold advanced; bitcoin soared to multi-year highs, rising above $900.

The biggest financial story, in addition to the expected Deutsche Bank and Credit Suisse settlements, was the nationalization of Italy’s Monte Paschi and the country’s backstop of further bailouts with a new €20 billion fund set aside to fund additional bank rescues.  As a result, Italian 10-year bonds lead gains among major European securities after the government said it will plow as much as 20 billion euros ($21 billion) into the country’s banks and Banca Monte dei Paschi di Siena SpA said it will ask for a “precautionary” capital increase. Deutsche Bank AG also rose after the lender agreed to settle U.S. mortgage probes. “It’ll be a relief to investors,” George Boubouras, the chief investment officer of Melbourne-based Contango Asset Management Ltd., told Bloomberg.

Following last night’s nationalization request, Monte Paschi shares have been suspended from trading.

“Banks run the show today,” analysts at Kepler Chevreux said in a note to clients, adding that the newsflow around Italian lenders was turning positive.

Deutsche Bank’s $7.2 billion settlement with the U.S. Department of Justice over toxic mortgage securities sold in the run-up to the 2008 financial crisis was nearly half of the fine initially levied in September. Deutsche Banks shares rose 2.7 percent and are up 86 percent since September lows. Credit Suisse fell 0.6%, giving up earlier gains, after it agreed to pay $5.3 billion to the DOJ to settle similar charges. Barclays became the latest in a long-list of other lenders under investigation to be sued.

The bank sector news helped the Stoxx Europe 600 Index hold this month’s 5.3% rally that has taken it within 1.6% of wiping out its losses for the year.

In the U.S., a rally that took indexes to a record stalled as the Dow Jones Industrial Average neared 20,000 and as trading wound down before December holidays. In the last day of trading before Christmas in Europe, stock volumes were about 40% lower than the 30-day average. , Japanese markets were closed today for Emperor’s Birthday holiday.

The dollar headed into the Christmas break on Friday just over half a percent off highs hit after this month’s U.S. Federal Reserve policy meeting. The dollar is up more than 7 percent against a basket of currencies since lows hit on U.S. election night in November but has been flat for the past week. The dollar index .DXY, hovering near a 14-year high, was marginally lower at 103.03 but remained within striking distance of the week’s 103.65 peak.

In bonds, Italian 10-year yields declined four basis points to 1.81 percent, while German bund yields slid one basis point to 0.25 percent. Treasuries were little changed after 10-year yield climbed two basis points to 2.55 percent on Thursday.

The UK economy expanded at a 0.6 percent pace in the three months to September, faster than the original estimate of 0.5 percent, suggesting there has been no “Brexit” hit to economic activity so far since the June 23 vote to leave the European Union.

* * *

Market Snapshot

  • S&P 500 futures unchanged at 2259
  • Stoxx 600 up less than 0.1% to 360
  • FTSE 100 down less than 0.1% to 7061
  • DAX up 0.1% to 11468
  • German 10Yr yield down 1bp to 0.25%
  • Italian 10Yr yield down 5bps to 1.8%
  • Spanish 10Yr yield down 1bp to 1.39%
  • S&P GSCI Index down 0.4% to 390.6
  • MSCI Asia Pacific down 0.2% to 135
  • Nikkei 225 closed
  • Hang Seng down 0.3% to 21575
  • Shanghai Composite down 0.9% to 3110
  • S&P/ASX 200 down 0.3% to 5628
  • US 10-yr yield down less than 1bp to 2.54%
  • Dollar Index down 0.11% to 102.98
  • WTI Crude futures down 0.6% to $52.64
  • Brent Futures down 0.6% to $54.74
  • Gold spot up 0.2% to $1,131
  • Silver spot up 0.1% to $15.82

Top Headline News

  • Paschi Seeks State Aid as Italy Readies $21 Billion for Banks: Monte Paschi recapitalization effort misses bank’s target
  • Deutsche Bank, Credit Suisse Settle U.S. Probes as Barclays Sued: Banks pay $12.5b to end probe into sales of toxic debt
  • Boeing-Versus-Lockheed Fighter Rivalry Reopened by Trump Tweet: Trump said he wants Boeing to price out F-35 competitor
  • Exxon Norway Assets Said to Attract Aker BP, Hitec, Neptune: Offshore oil fields said to be valued at about $1 billion
  • Merck’s Ebola Vaccine Found to Protect Against Deadly Virus: Vaccine was studied in trial involving >11,000 people in Guinea
  • Fred’s Attracts Activist as Alden Unveils 25% Stake on Deal: Alden also running activist campaign at retailer Pier 1 Imports
  • MegaFon to Buy Mail.ru Stake for $740 Million From Usmanov: Wireless carrier gains control of 63.8% of web company’s votes

Looking at Asian markets, stocks traded subdued following the negative lead from the US, where the 20,000 level continued to elude the DJIA, with markets very quiet amid the absence of Japan and ahead of Christmas holidays. 9 out of 11 sectors decline in the MSCI Asia Pacific Index with information technology, materials underperforming and utilities, industrials outperforming “Looking at the last few days, from a technical perspective we’ve seen this move up on lighter volume and it seems like all the buying pressure has been exhausted,” said James Woods, a Sydney-based investment analyst at Rivkin Securities, with regards to the A&P/ASX 200 Index. ASX 200 (-0.3%) was led lower by basic material names after iron prices declined around 4% to a 3-week low, with trade also light ahead of the upcoming 4-day weekend. Shanghai Comp. (-0.9%) and Hang Seng Index (-0.2%) were negative despite the PBoC attempting to ease liquidity concerns by injecting more funds this week, as prospects of tighter regulation on investments by insurers and brokerages dampened risk sentiment. Finally, Japanese markets were shut today for the Emperor’s Birthday holiday. PBoC injected CNY 90bIn 7-day reverse repos, CNY 50bIn in 14-day reverse repos, CNY 5bIn in 28-day reverse repos for a net weekly injection of CNY 375b1n vs. previous injection of CNY 250b1n last week.  PBoC set the mid-point at 6.9463. China is said to regulate alternative investments by brokerages, according to press reports.

Top Asian News:

  • Saipan Casino Bond on Hold Risks Future of $7 Billion Resort: Imperial Pacific issuance to fund casino said to be shelved
  • World’s Worst Air Has Mongolians Seeing Red, Planning Action: Dec. 26 action set amid smog five times worse than Beijing
  • A Goldman You’ve Never Heard of Is Pursuing a Hong Kong IPO: Local electrical subcontractor adopted Goldman name last month

In Europe, the final quiet start before the Christmas break has seen European equities trade higher this morning (Euro Stoxx: +0.2%), with Deutsche Bank (+2.3%) leading the charge after reaching a settlement of USD 7.2bIn with the DoJ (vs. USD 14bIn initially requested). Credit Suisse (-0.6%) also reached an agreement with the DoJ although failed to see quite the same upside, while Barclays (-1.2%) rejected a fine and as such are facing litigation. Today is one of the few days in 2016 where Banca Monte dei Paschi are not leading the way higher/lower across equities…given that they are suspended from trade after failing to raise sufficient funds through their recapitalisation plans and as such will receive state aid. Elsewhere, fixed income markets have continued the subdued trade seen throughout the week. Bunds have traded flat so far today, with Gilt futures seeing modest outperformance, with the move coming in tandem with softness being seen in GBP.

Top European News:

  • NN Group to Buy Dutch Rival Delta Lloyd for $2.6 Billion: Delta Lloyd returned to profit in first half after cost cuts
  • U.K. Current-Account Deficit Widens; GDP Growth Revised Up: Higher: 3Q trade deficit widnens to 2.8% of GDP, most since 2013
  • Brexit Shapes Up to Be ‘Hard’ 6 Months After Vote, Academics Say: EU is playing ‘hardball’ with U.K. in divorce proceedings

In currencies, the euro advanced for a third day against the dollar, adding 0.2 percent to $1.0455. The pound rebounded from the lowest level since Nov. 2 versus the greenback after data showed the U.K. economy expanded more than initially reported in the third quarter. The currency was little changed at $1.2277, after earlier touching $1.2246. Little to note elsewhere as the remnants of the market look to wind down for the Xmas break. The lead EUR/USD and USD/JPY rates are trading in extremely tight ranges, but some very modest USD tiredness to note ahead of the break. Weakness in the commodity currencies also subsides, but little to glean from today’s price action.

In commodities, gold edged higher in London trading, adding 0.3 percent to $1,131.74 an ounce. It’s still set for a seventh week of declines. West Texas Intermediate crude for February delivery in New York fell 0.6 percent to $52.66 a barrel.

US Event Calendar

  • 10am: New Home Sales, Nov., est. 575k (prior 563k)
  • 10am: U. of Mich. Sentiment, Dec. F, est. 98.0 (prior 98.0)
  • 1pm: Baker Hughes rig count

3a)THAILAND/SOUTH KOREA/:

none today

b) REPORT ON JAPAN

c) REPORT ON CHINA

i)Late  THURSDAY night/FRIDAY morning: Shanghai closed DOWN 29.40 POINTS OR 0.94%/ /Hang Sang closed DOWN 61.44  OR 0.28%. The Nikkei closed /Australia’s all ordinaires  CLOSED DOWN 0.29% /Chinese yuan (ONSHORE) closed UP at 6.9458/Oil ROSE to 52.43 dollars per barrel for WTI and 54.47 for Brent. Stocks in Europe: ALL MIXED.  Offshore yuan trades  6.9512 yuan to the dollar vs 6.9458  for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT AS  MORE USA DOLLARS ARE ATTEMPTING TO LEAVE CHINA’S SHORES /

end

Thursday night:

China not very happy with the Navarro appointment. As I indicated to you on Wednesday the USA is planning either a 10% import tariff or a “border tax proposal” both of which will cause China to devalue its currency greatly and a trade war would commence in earnest:

(courtesy zero hedge)

China “Shocked” By Navarro Appointment, As Trump Team Proposes 10% Import Tariff

As the FT first reported yesetrday, in a dramatic development for Sino-US relations, Trump picked Peter Navarro, a Harvard-trained economist and one-time daytrader, to head the National Trade Council, an organization within the White House to oversee industrial policy and promote manufacturing. Navarro, a hardcore China hawk, is the author of books such asDeath by China and Crouching Tiger: What China’s Militarism Means for the World” has for years warned that the US is engaged in an economic war with China and should adopt a more aggressive stance, a message that the president-elect sold to voters across the US during his campaign.

In the aftermath of Navarro’s appointment, many were curious to see what China’s reaction would be, and according to the FT, Beijin’s response has been nothing short of “shocked.” To wit:

The appointment of Peter Navarro, a campaign adviser, to a formal White House post shocked Chinese officials and scholars who had hoped that Mr Trump would tone down his anti-Beijing rhetoric after assuming office.

“Chinese officials had hoped that, as a businessman, Trump would be open to negotiating deals,” said Zhu Ning, a finance professor at Tsinghua University in Beijing. “But they have been surprised by his decision to appoint such a hawk to a key post.”

Shortly after the announcement of Navarro’s appointment, the US Office of the Trade Representative yesterday put added more fuel to trade tensions with China when it put Alibaba, China’s biggest e-commerce platform, back on its “notorious markets” blacklist of companies accused of being involved in peddling fake goods.

Cui Fan at the China Society of WTO Studies, a think-tank affiliated with China’s commerce ministry, warned that Beijing would respond to any unilateral action by the incoming Trump administration. “China is preparing itself for US trade actions,” he said. “China will respond with counteractions of its own.”

China has found itself on the receiving end of diplomatic chaos for much of the past three weeks, starting with Trump accepting a congratulatory phone call from Taiwan president Tsai Ing-wen in early December, which defied almost four decades of precedent. It only escalated from there, and culminated with the confiscation of a US marine drone last week, which however, China promptly returned to the US earlier this week.

Trump’s recent rhetoric has given China cause for concern: since the call with Ms Tsai, he has publicly criticized China’s currency policies and island fortifications in the South China Sea. He has questioned Washington’s commitment to the One China policy, and also angered Beijing when he suggested that the confiscated navy drone was “stolen” by a Chinese ship.

Wang told the People’s Daily: “We will lead the way amid a shake-up in global governance and take hold of the situation amid international chaos. We will protect our interests amid intense and complex games.”

Meanwhile, He Weiwen, deputy director of the Center for China and Globalisation, told the FT that Beijing could retaliate against US exports and restrict market access for US companies.

* * *

In short, China is angry, and may get its wish to retaliate soon, because as CNN reports (take it with a “real fake news” grain of salt) Trump’s transition team is discussing a proposal to impose tariffs as high as 10% on imports. A senior Trump transition official said Thursday the team is mulling up to a 10% tariff aimed at spurring US manufacturing, which could be implemented via executive action or as part of a sweeping tax reform package they would push through Congress.

According to CNN, Reince Priebus floated a 5% tariff on imports in meetings with key Washington players last week. But the senior transition official who spoke to CNN Thursday on the condition of anonymity said the higher figure is now in play.

Such a move would, if confirmed, would likely send the US hurtling into a trade war with other countries, especially China which is already “shocked” by recent Trump action, while sending the cost of consumer goods in the US even higher. “And it’s causing alarm among business interests and the pro-trade Republican establishment.”

The senior transition official quoted by CNN also said the transition team is beginning to find “common ground” with House Speaker Paul Ryan and Ways and Means Committee Chairman Kevin Brady, pointing in particular to the border adjustment tax measure included in House Republicans’ “Better Way” tax reform proposal, which would disincentivize imports through tax policy. The border tax, as explained here two days ago, would also lead to trade wars with key trading partners as it is the functional equivalent of a USD devaluation and is represents yet another tax on foreign exports.

Curbing free trade was a central element of Trump’s campaign. He promised to rip up the North American Free Trade Agreement with Mexico and Canada. He also vowed to take a tougher line against other international trading partners, almost always speaking harshly of China but often including traditional US allies such as Japan in his complaint that American workers get the short end of the stick under current trade practices.

And now, if CNN is correct, Trump may be about to follow through with it. The question on everyone’s lips, then, is with China having repeatedly warned it will retaliate if and when the US launched the first salvo in what will clearly be an escalating trade war, just how will China escalate.  One potential way is through its holdings of $1.1 trillion in US Treasuries and various other US assets.

As we reported earlier today, a SAFE official told reporters at a briefing that while China will make “tactical adjustments” on its US debt holdings, Beijing’s long-term investment view on US debt has not changed, and that U.S. Treasuries are China’s long-term strategic investment targets. That, too, may also change quickly.

END
Early Friday morning
Chinese citizens sure now how to use Bitcoin to get USA dollars out of the country.
Bitcoin rose to $900.00 per coin.
(courtesy zero hedge)

Bitcoin Soars Above $900 As China Opens

For the 3rd night in a row, China opens with a panic bid for Bitcoin. The cryptocurrency is now up over 14% in less than 3 days, topping $900 for the first time since December 2013. Interestingly yuan is not moving much tonight.

The USD price for a Bitcoin has soared over 14% in the last 2 days. We first warned of this ‘outlet’ for Chinese capital in September 2015 when Bitcoin was trading around $200…now it is topping $900…

And volume is very heavy once again from China…

Getting very close to record highs…

As a reminder, back in 2013, the government classified bitcoin as a commodity and not currency, placing it outside the purview of the foreign-exchange regulator, the people said.  That does not mean, however, that China is powerless at limiting bitcoin’s upside.

Several Chinese government bodies including the People’s Bank of China and the financial regulators said in a joint notice that year that bitcoin functioned like a digital commodity without the legal status of a currency. The central bank said in January it is studying the prospects of issuing its own digital currency and aims to roll out a product as soon as possible.

While China dominates bitcoin mining and trading, the government has shown caution over its spread in the nation. In 2013, the PBOC barred financial institutions from handling bitcoin transactions.

end

4 EUROPEAN AFFAIRS

Monte dei Paschi

The world’s oldest bank will be officially nationalized.  The government is to provide 20 billion euros to all suffering banks including Monte dei Paschi.

The junior bondholders  will take a hit as follows:

1.a haircut of 25% on tier one bonds

2. no haircut on tier two bonds

thus the burden sharing will be fulfilled. However the bigger problem is the massive run on the bank as depositors flee  this sunken ship. Also remember that Italy has already a huge debt to GDP problem of around 135%. Another 20 billion euros + will increase that ratio even more.

(courtesy zero hedge)

It’s Official: Italy Will Nationalize Monte Paschi

So far, so expected. After earlier announcing the failure to attract any anchor investors for a private capital raise, Monte Paschi has announced that it will officially ask the Italian government for a “precuationary capital increase” – in other words a bailout. The funds will come from the newly decreed EUR20 billion bailout fund, and as Bloomberg reports will not trigger a “bail-in.”

This is the third bailout in three years and reportedly the biggest nationalization in Italian history.

As Bloomberg reports, Italy will plow as much as 20 billion euros ($21 billion) into the country’s banks after Banca Monte dei Paschi di Siena SpA failed to secure its future by raising funds from investors, and other lenders could follow.

Finance Minister Pier Carlo Padoan told reporters after a cabinet meeting in Rome that he expected Monte Paschi to ask for aid.

We will see if other banks ask for aid,” Padoan said at the press conference. Italian Prime Minister Paolo Gentiloni said EU officials agreed with Italy’s plan to provide support to the country’s banking system.

And sure enough, once the bailout decree was approved, Monte Paschi, the world’s oldest lender, late Thursday abandoned plans to raise 5 billion euros from the market.

The bank said it was scrapping the entire capital plan, including the sale of bad loans and the debt for equity swap, and confirmed in a statement that it will ask Italy for a “precautionary capital increase.”

The FT notes that Italian officials hope government intervention will put an end to MPS’s woes and restore confidence in other struggling financial institutions.

Due to EU rules designed to limit the hit to taxpayers, the government rescue will impose losses on MPS shareholders and junior bondholders, making them share some of the financial burden. As Bloomberg confirms:

  • *ITALY GOVT SAYS PRECAUTIONARY RECAP DOESN’T TRIGGER BAIL IN
  • *PASCHI TIER 1 BOND CONVERSION AT 75% OF NOMINAL VALUE
  • *PASCHI TIER 2 BOND CONVERSION AT 100% OF NOMINAL VALUE

With Junior bonds already trading at extreme distress the modest-to-nothing haircuts imposed are likely a relief to some as Italy noted “the burden-sharing principle will be respected but we will try to limit the damage to savers as much as possible.”

“A nationalization should have been done five years ago,” said Francesco Confuorti, the CEO of Advantage Financial SA, a Milan-based investment firm. “The bank lost time, money and credibility seeking to keep the patient on life support when he was in an irreversible coma.”

The bigger problem now for Monte Paschi, as we detailed earlier, is the recent plunge in deposits, which as reported yesterday has suffered a €14bn rush of deposit outflows in the nine months from January to September this year – 11 per cent of its total deposits, as shown in the following FT chart.

Should the nationalization fail to stem the bank run, either at Monte Paschi, or other Italian banks, more bailouts are imminent.

And finally, as The FT points out, there is always Germany to mess up these plans…

One of the big concerns associated with Italy’s banking rescue is that it will worsen the country’s fiscal outlook at a time when it already has one of the highest ratios of debt to gross domestic product in Europe, at 133 per cent.

Assuming all of the €20bn is used during the coming year, that would amount to about 1.2 per cent of GDP, making it highly unlikely that Italy could meet its commitments on managing its debt under EU budget rules.

Italian officials have insisted that the rescue would be a “one-time” effort, which was temporary and therefore would not impact the structural balance, which is one of the key fiscal measures used by the EU.

The European Commission said it “takes note” of the changes to some public finance targets.

And by “take note” we pre-suppose they mean extract some pint of blood from some unsuspecting taxpaying public

 

 

end

 

Germany/Deutsche bank

Deutsche bank agrees to a 7.2 billion dollar settlement with the DOJ

(courtesy zero hedge)

Deutsche Bank Settles With DOJ: Will Pay $3.1 Billion Civil Penalty (AND 4.1 BILLION RELIEF TO CONSUMERS= 7.2 BILLION PENALTY)

With analyst expectations/hopes in the $2 to $5 billion range (against the initial $14 billion fine), Deutsche Bank said it has reached settlement with US authorities to pay a $3.1 billion civil penalty (and provide $4.1bn in relief to consumers). Removing considerable uncertainty about Deutsche’s capital position, one wonders how much this remarkably low-ball settlement had to do with Donald Trump’s current loan re-negotiations with the “world’s most systemically dangerous bank.”

As a reminder, the Wall Street Journal noted that DB’s attorneys had privately suggested that a $2 – $3 billion settlement with the DOJ was probably in the ballpark.  Meanwhile, wall street analysts had estimated settlements in the $2-$5 billion range.  Any fines paid pursuant to current negotiations would be in addition to the $1.9 billion already paid in 2013 to settle other U.S. claims related to mortgage-backed securities.

Per the table below, as of June 30, DB had reserved a total of €5.5 billion for civil litigation and regulatory penalties on it’s balance sheet.

DB

And so this lower than expected penalty has sent US equity futures higher…

As Bloomberg reports, Deutsche Bank said it has reached a $7.2 billion agreement to resolve a years-long U.S. investigation into its dealings in mortgage-backed securities, removing a major legal hurdle for the bank.

Deutsche Bank will pay a $3.1 billion civil penalty and provide $4.1 billion in relief to consumers under a settlement in principle with U.S. authorities, which was announced by the Frankfurt-based bank in a statement early Friday. The deal compares with the Justice Department’s opening request of $14 billion, which the firm has said it expected to whittle down.

While the agreement removes significant uncertainty hanging over Deutsche Bank, Germany’s biggest lender remains under Justice Department investigation in several other matters and also faces potentially expensive civil suits. Chief Executive Officer John Cryan has made resolving major litigation a priority as he seeks to restore confidence in the Frankfurt-based lender.

The Obama administration is pressing to wrap up investigations of Wall Street firms for creating and selling the subprime mortgage bonds that fueled the 2008 financial crisis. Authorities have already extracted more than $46 billion in fines from six U.S. financial institutions over their dealings in mortgage-backed securities. Bank of America Corp., which had the largest such settlement, agreed to pay $16.7 billion over bonds that were worth four times what Deutsche Bank’s bonds were worth.

While Obama’s legacy played its part, no doubt; we just can’t help but wonder how much the fact that, as Bloomberg reports, the bank is trying to restructure some of Trump’s roughly $300 million debt as part of an attempt to reduce any conflict of interest between the loan and his presidency, according to a person familiar with the matter.

Normally, the removal of a personal pledge might lead to more-stringent terms. But there is little normal about this interaction. Trump’s attorney general will inherit an investigation of Deutsche Bank related to stock trades for rich clients in Russia — where Trump says he plans to improve relations — and may have to deal with a possible multibillion-dollar penalty to the bank related to mortgage-bond investigations.

Whatever terms a restructured loan might include, they will reflect the complex new relationship spawned between Germany’s largest bank and its highest-profile client. Ethicists say this concerns them.

“When you have political appointees making decisions about banks that the president owes a lot of money to, it looks terrible,” said Richard Painter, a law professor at the University of Minnesota who was the chief ethics lawyer for President George W. Bush. “The U.S. government is dealing with regulatory and criminal issues with the big banks all the time, and if he owes them a lot of money, there might be an incentive to favor less regulation and less enforcement for the banks.”

Deutsche Bank declined to comment.

Even better news, Deutsche Bank expects to record a pretax charge of about $1.17b in 4Q.

So between Obama’s legacy and Trump’s loan mods, the department of Justice settled for 22c on the dollar of their original demand? That is around 10% of 2016’s revenues… “cost of doing business”?

Where did the number come from? That’s easy…

hmm…back in October Moody’s had $3.1B penciled in for DB as a bond-positive number.

 end
Switzerland/Credit Suisse vs USA
Credit Suisse settles with the DOJ:  $5.3 billion which includes a 2.8 billion relief for homeowners hit by the collapse in house prices.
(courtesy zero hedge)

Credit Suisse Settles With DOJ For $5.3 Billion; Will Pay $2.5 Billion Civil Penalty

Shortly after last night’s news that Deutsche Bank had settled with the DOJ for $7.2 billion, of which it would pay $3.1 billion in a civil penalty, far lower than the $14 billion number initially speculated (the stock popped as much as 4% before settling just over 2% higher currently), Credit Suisse likewise closed the books on its pre-crisis RMBS fraud when the largest Swiss bank agreed to pay $5.28 billion to resolve a U.S. investigation into its business in mortgage-backed securities. Credit Suisse will pay a $2.48 billion civil penalty and $2.8 billion in relief for homeowners and communities hit by the collapse in home prices, it said in a statement Friday. Credit Suisse will take a pretax charge of about $2 billion in addition to its existing reserves during the fourth quarter.

The two settlements follow a surprise announcement by the DOJ which said on Thursday it sued Barclays Plc for fraud over its sale of mortgage bonds after the bank balked at paying the amount the government sought in negotiations. The lawsuit announced on Thursday is rare for big banks, which typically settle with the government rather than risk drawn-out litigation and a possible trial.

“With this settlement, the largest remaining major uncertainty is now eliminated” for Credit Suisse, Peter Casanova, an analyst at Kepler Cheuvreux told Bloomberg. “This is good news.”

The Obama administration is pressing to wrap up investigations of Wall Street firms for creating and selling the subprime mortgage bonds that fueled the 2008 financial crisis. Before the two deals on Friday, authorities had already extracted more than $46 billion in fines from six U.S. financial institutions over their dealings in mortgage-backed securities. Bank of America Corp., which had the largest such settlement, agreed to pay $16.7 billion over bonds that were worth four times those of Deutsche Bank. Meanwhile, Deutsche Bank said that the fine will cut its pretax profit by $1.2 billion this quarter as the firm taps existing legal reserves to blunt much of that cost.

Credit Suisse said it would pay the consumer relief over five years following the settlement. The bank had set aside about 2.1 billion francs ($2.1 billion) in general litigation provisions by the end of the third quarter.

Chief Executive Officer Tidjane Thiam tapped shareholders for 6 billion Swiss francs in late 2015 while shifting the company’s focus away from capital-heavy investment banking toward wealth management. Thiam has updated investors twice on his plan, which includes a partial initial public offering of its Swiss unit in late 2017. In December, the former insurance executive pledged more cost cuts and lowered targets for the international wealth management and its Asian unit.

As Bloomberg adds, the Swiss bank remains under Justice Department scrutiny over its handling of U.S. clients in Israel. The department fined Credit Suisse $2.6 billion in 2014 for helping Americans dodge taxes in Switzerland. The bank is also a target of several antitrust cases in the U.S., including class actions related to foreign-exchange rates and interest-rate swaps.

At least three other European banks remain under investigation over the role of their mortgage-backed securities business: UBS, HSBC and Royal Bank of Scotland. In addition to Bank of America, U.S. banks that have settled include Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley. Wells Fargo & Co. and Moody’s Corp. have disclosed U.S. investigations into their mortgage-backed securities dealings and have said they’re cooperating.

end
Berlin Germany/ Truck Terrorist killed in Milan Italy
Suspect in the Berlin truck terrorist attack is killed in a shootout in Milan. How did he get to Milan undetected.
(courtesy zero hedge)

Berlin Truck Attack Suspect Killed In Shootout In Milan: Real-Time Updates

Anis Amri, the man believed to be behind the Christmas market in Berlin was killed in a shootout in Milan, Italy’s Interior Minister Marco Minniti said at a press conference in Rome.

Italy’s Interior Minister Marco Minniti said during a press conference that Anis Amri was stopped on foot by police patrols at around 3 a.m. during a routine check in the Sesto San Giovanni neighborhood.


A body lies on the ground shortly after the shoot-out in Milan

The location of the shootout outside the Sesto San Giovanni train station is shown in the BBC map below:

Italian police say that when stopped, Amri – who was walking by himself after arriving from France – pulled a 22 caliber gun from his backpack, shouted “God is greatest” in Arabic and opened fire, injuring an officer. A second policeman with only nine months’ service returned fire, killing him, they add.

Without any doubt the person killed is Anis Amri, the man suspected in the Berlin terrorist attack,” Minniti said.

“There is absolutely no doubt that the person who was killed is Anis Amri” – Italy’s interior minister Marco Minniti http://bbc.in/2ijto66 

Taking a sideways jab at Merkel and her inability to capture Amri, Minniti praised the officers involved, saying: “As soon as this person entered our country he was the most wanted man in Europe and we immediately identified him and neutralised him and this means our security is working really well.”

One police officer was injured, but his injuries are not life-threatening, according to tweets from the police.

Below is a scene from Milan following Amri’s deadly shootout with police:

German newspapers have been quick to report the news about the killing of Ansi Amri with a sense of relief. The country’s biggest newspaper Bild is leading on it’s website with the headline: Es ist Vorbei! (It’s over!) People in Germany had been living with the fear that the suspect in the Berlin attack was still at large and could strike again. Over the days following the attack, Christmas markets in the centre of the city have been free of the large crowds that usually gather throughout the festive season.

Earlier on Friday, Italian authorities said Amri was killed in a shootout with police in Milan on Thursday night. A short video posted on the website of Italian magazine Panorama suggested the shooting happened before dawn, with police gathered around a cordoned-off area in the dark.

How did Amri get to Italy after the attack?  Railway tickets found on Amri’s body showed he had travelled from Chambery in south-eastern France to Turin and then on to Milan, Italy’s Ansa news agency says. Police had stepped up patrols in Milan following a tip off that Amri might be in the area, judicial sources quoted by Reuters say.

Amri’s ability to make such a journey undetected across multiple countries is bound to raise questions about security failures in Europe and whether open borders within the Schengen area are allowing extremists to move about freely.

end
As promised , this one is going to be a good one: Barclay’s chief is preparing to take a stand against the USA stating that fines are unduly high against European banks when compared to the crimes committed by USA banks.  I would love to attend this court hearing:
(courtesy UKTelegraph) special thanks to Robert H for sending this for us:

Barclays chief preparing to take a stand against US regulators over unduly high fines to European banks

Barclays chief preparing to take a stand against US regulators over unduly high fines to European banks

The bank's logo

Barclays chief executive Jes Staley is preparing to take a stand against US regulators unduly punishing British and European banks while handing softer fines to their American peers.

The bank boss, who took control of Barclays a year ago, is vowing to fight the US government in court over what he is believed to see as its over-zealous approach to fining non-domestic institutions.

The British lender has rejected a settlement offer from the US Department of Justice over alleged mis-selling of toxic mortgage-backed securities in the run-up to the financial crisis.

Although it is not known what the DoJ was offering, it is thought a fine of several billion dollars was mooted to Barclays.

<img src=”/content/dam/business/2016/03/15/jes_staley-small_trans_NvBQzQNjv4Bq-PSyyIpYuv3hhTxnBm0pRucoQ1zGDEqBApUIrr7XA_c.jpg” alt=”Jes Staley, Barclays chief executive” width=”320″ height=”199″ class=”responsive-image–fallback”/>
Jes Staley, Barclays chief executive

Mr Staley’s defiance – a very different tack than that taken during the Libor settlement negotiations in 2012 which cost Bob Diamond his job – came as Deutsche Bank and Credit Suisse settled with the regulator, to the tune of a total of $12.5bn (£10.2bn) between them, covering fines and reparations.

But Mr Staley, a native Bostonian who spent most of his career at JP Morgan, appears determined to take a stand against the regulator and what he sees as European banks being unduly punished.

A Barclays source said of the negotiations: “We were a bit player in the market. The number on the table was unacceptable.”

A second source said it appeared that the fines being handed out – US regulators have now collected $58bn in total from eight banks in fines and relief and other payments in connection with toxic mortgage sales – were not equitable between US and European banks.

Barclays’ lawyers are gearing up to point to the relatively smaller fines being meted out to US banks who on the whole wrote larger mortgage-backed security books in the 2005-7 period under investigation, compared to their European counterparts.

<img src=”/content/dam/business/2016/04/21/3250862_Lehman_Brothers_Put_Their_Artworks_Up_For_Auction-small_trans_NvBQzQNjv4BqO2wBkCq2Mm4bNdLs0EhrY80Do9D5Tlv0h4ImhYCqHiM.jpg” alt=”The sub-prime mortgage crisis triggered the downfall of a number of financial institutions, including Lehman Brothers” width=”320″ height=”199″ class=”responsive-image–fallback”/>
The sub-prime mortgage crisis triggered the downfall of a number of financial institutions, including Lehman Brothers

The bank’s legal team are likely to point to the fact that JP Morgan, including Bear Stearns and Washington Mutual which it took over during the crisis, wrote some $597bn of residential mortgage backed securities in the three year period. But paid a civil penalty of $2bn to the DoJ.

Credit Suisse wrote a third of its US rival, some $207bn. But its civil penalty was $2.48bn, some $480m more than JP Morgan. Barclays wrote some $74bn during the period.

The DoJ has filed a civil lawsuit in Brooklyn’s federal court which claims Barclays deceived investors about the quality of more than $31bn in loans sold between 2005 and 2007. It alleges more than half of the underlying loans defaulted, with the complaint saying that consultants who reviewed the loans called them “craptacular”.

It goes on to allege that Barclays’ efforts contributed to the US housing bubble and subsequent crash, which triggered the financial crisis of 2008.

Attorney General Loretta Lynch said: “We are sending a clear message that the Department of Justice will not tolerate the defrauding of investors and the American people.”

“Barclays rejects the claims made in the complaint. Barclays considers that the claims made in the complaint are disconnected from the facts,” said the bank.

The progress of Barclays’ suit will be closely watched by the Royal Bank of Scotland, which has yet to settle with the DoJ over similar claims. James Leigh-Pemberton, chairman of UK Financial Investments which manages the Government’s 73pc stake in RBS, said before a House of Commons committee last month that the fine “might be $5bn, it might be $12bn”.

Shares in Barclays closed down 2.05p  at 224.95p on news of the legal battle.

Deutsche investors meanwhile breathed a sigh of relief at the settlement eked out by chief executive John Cryan.

<img src=”/content/dam/business/2016/09/29/109626979_john-cryan-small_trans_NvBQzQNjv4BqB6KEfdt5Cgfy-ucX6LjUD_OiBAdlNgiwrsf-uERLuPM.jpg” alt=”John Cryan, Deutsche Bank” width=”307″ height=”191″ class=”responsive-image–fallback”/>
John Cryan, Deutsche Bank

Despite reports in September the bank was facing a $14bn payment, the German bank will pay a $3.1bn fine and a further $4.1bn in consumer relief in the form of loan modifications and assistance. Deutsche’s shares rose 0.87pc.

Credit Suisse’s settlement involves $2.8bn in relief as well as the $2.48bn fine.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Not again.. A hijacked Libyan airplane with 111 passengers of board lands in Malta and the pro Gaddafi suspects threatens to blow up the plane:

(courtesy zero hedge)

Hijacked Libyan Airplane With 111 Passengers Lands In Malta, Suspect Threatens to Blow Up Plane

Up to two hijackers, described as being “pro-Gaddafi,” have seized control of Afriqiyah Airways flight 8U209 in Libya, forcing the Airbus A320 plane to land in Malta. The suspected hijackers of the airliner with 111
passengers aboard have threatened to blow up the plane on the runway at
the international airport in Malta, the WSJ reports.

The airliner, a Airbus A320, landed at Malta’s Luqa airport at 1030 GMT, according to Flightradar24.

The plane, an Afriqiyah Airways flight to Tripoli from Sabha, was diverted by a passenger who demanded to be flown to the Mediterranean. In a statement, Malta airport authorities confirmed that there has been “an unlawful interference” at the airport and that emergency teams have been dispatched to the site.

“The pilot reported to the control tower in Tripoli that they were being hijacked, then they lost communication with him,” a security official from Mitiga airport in Libya told Reuters. “The pilot tried very hard to have them land at the correct destination but they refused.”

View image on TwitterView image on Twitter

🔴 plane with 118 passengers on board lands in ‘with two hijackers on board’
📸

There are conflicting reports as to how many hijackers are on board the flight, with some media outlets indicating two while the Times of Malta report there is only one suspect involved. Described as being “pro-Gaddafi,” the hijacker is reportedly in possession of a hand grenade and has threatened to blow up the plane if demands are not met, although the nature of these demands are not yet known. It’s reported that Libyan and Maltese authorities are in negotiations with the hijackers.

All Libyan carriers are banned from flying to the European Union under the bloc’s so-called aviation safety blacklist. The EU took the step two years ago because of concern that political turmoil in the country meant safety oversight by Libyan aviation officials couldn’t be assured.

Afriqiyah Airways has been the victim of Libya’s political unrest before. In 2014 attacks by militias on Tripoli Airport destroyed and damaged several of its planes. Four years earlier some of its planes were similar destroyed at Tripoli’s airport in fighting. The airline has a fleet of six active planes, all made by European plane maker Airbus.

Malta’s President Marie-Louise Coleiro tweeted to appeal “for everyone to remain calm and follow official updates.”

 

 

end

 

Putin  in his year end address:  he attacks the democratic party as losers. He talks about Trump and the Russian economy:

(courtesy zero hedge)

Putin Slams US Democratic Party As “Shameless Losers”, Says Russia Alone Believed In Trump’s Victory

 

end

 

USA to Russia:

 

Trump doubles down on the nukes story: “let it be an arms race..we will outlast them all”

(courtesy zero hedge)

Trump Doubles Down On Nukes: “Let It Be An Arms Race, We’ll Outlast Them All”

Earlier this morning, president-elect Trump appeared on MSNBC’s Morning Joe to discuss the following tweet he sent out yesterday calling for an expanded nuclear arsenal.

The United States must greatly strengthen and expand its nuclear capability until such time as the world comes to its senses regarding nukes

When asked by co-host Mika Brzezinski to clarify the tweet, Trump gave a response that she, nor anyone else for that matter, was expecting.

“Let it be an arms race, we will outmatch them at every pass … and outlast them all.”

Meanwhile, Trump’s newly appointed Press Secretary, Sean Spicer, appeared on the Today Show to calm the nerves of an anxious Matt Lauer who asked whether Trump was planning to “reverse 40 years of policy in this country.”

“[T]here’s not going to be [an arms race] because he is going to ensure that other countries get the message he is not going to sit back and allow that.”

“What’s going to happen is they will all come to their senses and we will all be just fine.”

“Other countries need to be put on notice that he is not going to sit back and allow them to undermine our safety, our sovereignty.  He is going to match other countries and take action.”

As we noted yesterday, Trump’s calls to strengthen the U.S. nuclear arsenal comes just as Vladimir Putin has urged for Russia to do the same.  Here is what we said yesterday:

In a curious convergence of superpower opinions, earlier on Thursday, Russian President Vladimir Putin called for the country to reinforce its military nuclear potential. In a speech that recapped military activities in 2016, Putin said the army’s preparedness has “considerably increased” and called for continued improvement that would ensure it can “neutralise any military threat”.

“We need to strengthen the military potential of strategic nuclear forces, especially with missile complexes that can reliably penetrate any existing and prospective missile defence systems,” the Russian president said.

He added that Russia “must carefully monitor any changes in the balance of power and in the political-military situation in the world, especially along Russian borders, and quickly adapt plans for neutralising threats to our country.”

With that, we have a sneaking suspicion that “Rocky 24: Balboa vs. Drago – The Rematch” was just approved for production.

6.GLOBAL ISSUES

This is not good for Canada as the Canadian economy crashed in Q3 down .3% in GDP. This was done with oil prices higher. Manufacturing also collapsed with the lower Cdn dollar..go figure!!  The loonie crashed to 1.35475

(courtesy zero hedge)

Loonie Tumbles After Canadian Economy Unexpectedly Crashes Back Into Contraction

After 4 straight quarters of MoM growth in GDP, the Canadian economy plunged 0.3% in Q4 (considerably worse than the 0.0% expectations) despite a resugenece in crude prices. The Loonie is tumbling, back at 5-week lows, as manufacturing shrank a shocking 2.0% YoY – most since 2013.

  • Goods-producing sector fell 1.3% m/m in Oct.
  • Service-producing sector rose 0.1% m/m in Oct.
  • Largest upside contributor was real estate, +0.05 ppts
  • Largest downside contributor was manufacturing, -0.20 ppts
  • Manufacturing output falls 2.0% m/m, biggest decline since December 2013

Looks very Japanese…

Manufacturing output fell 2 percent — the biggest decline since
2013 — with durable and non-durable goods down 2.1 percent and 2
percent respectively. Factory output has been persistently weak, falling 0.2 percent since October of last year.


And the reaction is ugly, sending the Loonie to 5-week lows against the dollar…

Aussie Dollar Tanks After China Admits Growth Will Miss 6.5% Target

With fears mounting over China’s debt load sustainability, and amid yet another liquidity crisis, President Xi Jinping appeared to admit that China’s economic growth will slow below the government’s 6.5% target. Despite the promise of creating a “modestly prosperous society,” Xi warned that China doesn’t need to meet the objective if doing so creates too much risk – a little late for that after trillions of freshly created credit was spewed into zombified firms this year – but at least reality is starting to set in.

Last year’s 6.9 percent expansion was the slowest in a quarter century. For this year, the government set a 6.5 percent to 7 percent target range, slower than last year’s goal of about 7 percent. IMF Managing Director Christine Lagarde said earlier in February that the fund strongly recommended that China set a growth target range of 6 percent to 6.5 percent.

As Bloomberg reports,too much emphasis on meeting growth objectives is increasing financial risk, according to Huang Yiping, an adviser to the People’s Bank of China. The higher the short-term growth target, the more difficult it will be to rebalance the economy to favor long-term growth, Huang, an economics professor at Peking University, said at an event this week in Beijing.

Xi told a meeting of the Communist Party’s financial and economic leading group this week that China doesn’t need to meet the objective if doing so creates too much risk, said the person, who asked not to be named because the discussions were private. Leaders at the gathering agreed that the $11 trillion economy would remain stable with slower growth as long as employment stays firm, the person said.

The shift signals that leaders see systemic risk as great enough to warrant re-evaluating key goals and may be less inclined to add to fiscal and monetary stimulus. Xi consolidated his power in October, ahead of a twice-a-decade leadership reshuffle next year, with the party naming him its “core.”

Some meeting participants sounded the alarm about unsustainable debt, noting that other nations have experienced crises after borrowing climbed to around 300 percent of GDP, the person said. China’s debt-to-GDP ratio rose to about 270 percent this year, the person said. The source of the ratio was unclear.

And while Yuan is limping lower (very thin holiday trading), the biggest impact for now is evident in the Aussie Dollar…

So as the currency wars rage quietly beyond the CNBC headlines, Trump’s appointment of Navarro may have been just the warning shot across China’s bow that prompted this reality-awakening in Xi.

Rising populist sentiment in the U.S. and Europe pose another risk for Xi’s government, which has warned of the dangers of a trade war. Xi also warned China should avoid the so-called Thucydides Trap, the person said, referring to the theory attributed to the eponymous ancient Greek philosopher that says a rising power will clash with an established force.

Trump has threatened to slap tariffs on Chinese products while also questioning the U.S.’s policy on Taiwan, which Beijing considers its territory. Frothy property markets and a falling yuan also pose challenges to the economy.

 

 

end

7. OIL ISSUES

Last week we reported on a huge increase in USA oil rigs.  Today Baker Huges reports that oil rigs rose again, for the 28th weekly rise out of the last 30 by another 13 rigs. The number of rigs in use:  523, the highest since the first week of Jan 2016.  Expect huge production increase from the USA.

(courtesy zero hedge/Baker Hughes)

US Oil Rig Count Surges To Highest Since First Week Of January

Following a dramatic surge in US oil rig counts the last two weeks, Baker Hughes reports oil rigs rose once again (the 28th weekly rise of the last 30) by 13 to 523 – the highest since the first week of January 2016.

The oil rig count is tracking the lagged oil price perfectly still…

 

US crude production looks set to continue to rise – tracking the lagged rig count rise – much to the chagrin of the Saudis…

 

There was no reaction in crude futures prices at all.

8. EMERGING MARKETS

none today

Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings FRIDAY morning 10:00 am

Euro/USA   1.0456 UP .0018/REACTING TO  + huge Deutsche bank problems + USA election:/TRUMP WINS THE ELECTION/USA READY TO GO ON A SPENDING BINGE WITH THE TRUMP VICTORY/ITALIAN REFERENDUM DEFEAT/AND NOW ECB TAPERING BOND PURCHASES/USA RAISING RATES

USA/JAPAN YEN 117.31 DOWN 0.208(Abe’s new negative interest rate (NIRP), a total DISASTER/SIGNALS U TURN WITH INCREASED NEGATIVITY IN NIRP/JAPAN OUT OF WEAPONS TO FIGHT ECONOMIC DISASTER/KURODA:  HELICOPTER MONEY  ON THE TABLE AND DECISION ON SEPT 21 DISAPPOINTS WITH STIMULUS/OPERATION REVERSE TWIST

GBP/USA 1.2259 DOWN .0023 (Brexit by March 201/UK government loses case/parliament must vote)

USA/CAN 1.3503 UP .0023 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT FROM EU)

Early THIS FRIDAY morning in Europe, the Euro ROSE by 18 basis points, trading now WELL BELOW the important 1.08 level RISING to 1.0448; Europe is still reacting to Gr Britain BREXIT,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 Italian referendum defeat AND NOW THE ECB TAPERING OF ITS PURCHASES/ THE USA’S NON tightening by FAILING TO RAISE THEIR INTEREST RATE AND NOW THE HUGE PROBLEMS FACING TOO BIG TO FAIL DEUTSCHE BANK + THE ELECTION OF TRUMP IN THE USA+ AND TODAY MONTE DEI PASCHI NATIONALIZATION / Last night the Shanghai composite CLOSED DOWN 29.40 0r 0.94%     / Hang Sang  CLOSED DOWN 61.44 POINTS OR 0.280%   /AUSTRALIA IS LOWER BY 0.29% / EUROPEAN BOURSES ALL MIXED 

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 FOR THE HOLIDAYS 

Trading from Europe and Asia:
1. Europe stocks ALL MIXED 

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 61.44 OR 0.280%   Shanghai CLOSED DOWN 29.40 POINTS OR 0.84%   / Australia BOURSE IN THE RED /Nikkei (Japan)CLOSED FOR HOLIDAYS/  INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: $1131.80

silver:$15.77

Early FRIDAY morning USA 10 year bond yield: 2.541% !!! UP 0 IN POINTS from THURSDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%. THE RISE IN YIELD WITH THIS SPEED IS FRIGHTENING

 The 30 yr bond yield  3.115, DOWN 1 IN BASIS POINTS  from THURSDAY night.

USA dollar index early FRIDAY morning: 103.00 down 9 CENT(S) from THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing FRIDAY NUMBERS

Portuguese 10 year bond yield: 3.75% DOWN 5  in basis point yield from THURSDAY  (does not buy the rally)

JAPANESE BOND YIELD: +.056% DOWN  0  in   basis point yield from THURSDAY/JAPAN losing control of its yield curve

SPANISH 10 YR BOND YIELD:1.377%  DOWN  3  IN basis point yield from  THURSDAY (this is totally nuts!!/

ITALIAN 10 YR BOND YIELD: 1.822  DOWN  3  in basis point yield from THURSDAY 

the Italian 10 yr bond yield is trading 45 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.221% DOWN 4 IN  BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.0450 UP .0013 (Euro UP 13 basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 117.18 DOWN: 0.339(Yen UP 34 basis points/ 

Great Britain/USA 1.2264 DOWN 0.0019( POUND DOWN 19 basis points)

USA/Canada 1.3549 UP 0.0056(Canadian dollar DOWN 56 basis points AS OIL FELL TO $52.86

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This afternoon, the Euro was UP by 13 basis points to trade at 1.0450

The Yen ROSE to 117.18 for a GAIN of 34 basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE  /OPERATION REVERSE TWIST ANNOUNCED SEPT 21.2016

The POUND FELL 19 basis points, trading at 1.2264/

The Canadian dollar FELL by 56 basis points to 1.3549,  WITH WTI OIL FALLING TO :  $52.86

The USA/Yuan closed at 6.9431
the 10 yr Japanese bond yield closed at +.056% DOWN 0 IN  BASIS POINTS / yield/ 

Your closing 10 yr USA bond yield DOWN  1 IN basis points from THURSDAY at 2.539% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic  USA 30 yr bond yield: 3.115 DOWN 1  in basis points on the day /

Your closing USA dollar index, 103.01 DOWN 8 CENT(S)  ON THE DAY/1.00 PM 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for FRIDAY: 1:30 PM EST

London:  CLOSED UP 4.49 POINTS OR 0.06%
German Dax :CLOSED DOWN 6.17 POINTS OR 0.05%
Paris Cac  CLOSED UP 5.05 OR 0.10%
Spain IBEX CLOSED UP 34.10 POINTS OR 0.37%
Italian MIB: CLOSED UP 223.76 POINTS OR 0.76%

The Dow was UP 14.93 POINTS OR .07% 4 PM EST

NASDAQ WAS UP 15.27 POINTS OR .28%  4.00 PM EST
WTI Oil price;  52.86 at 1:00 pm; 

Brent Oil: 54.96  1:00 EST

USA /RUSSIAN ROUBLE CROSS:  61.17 (ROUBLE DOWN  21/100 roubles from YESTERDAY)

TODAY THE GERMAN YIELD FALLS  TO +0.221%  FOR THE 10 YR BOND  2:30 EST

END

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:

WTI CRUDE OIL PRICE 5 PM:$53.23

BRENT: $55.04

USA 10 YR BOND YIELD: 2.543%  (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 3.116%

EURO/USA DOLLAR CROSS:  1.0446 up .0009

USA/JAPANESE YEN:117.16  down 0.369

USA DOLLAR INDEX: 102.97 DOWN 12  cents (BREAKS HUGE resistance at 101.80)

The British pound at 5 pm: Great Britain Pound/USA: 1.2278 : down 5  BASIS POINTS.

German 10 yr bond yield at 5 pm: +.221%

END

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

TRADING IN GRAPH FORM

“Not An Algo Was Stirring…” – Dow’s Tightest Trading Range In 30 Years

 

You’re welcome…

 

Twas the night before (the night before) Xmas, and all through the market, not an algo was stirring, not even a VIX cracker…

Today was the lowest range day for The Dow since at least 1986…

 

The Dow is now up 7 weeks in a row – the longest winning streak since Dec 2014’s Bullard bounce (after which it fell over 5% in the next week)…

 

On the week, Small Caps managed to squeeze into the green by the close but Nasdaq outperformed…

 

Once again they tried to slam VIX early on but that didn’t last long and then everyone went to sleep…

 

Financials managed to cling to unchanged post-Fed but the rest of the S&P sectors are red…

 

Treasury yields fell for the first week since the election…notably 30Y yields are now 2bps lower than they were pre-Fed…

 

The yield curve has collapsed since The Fed hiked rates…

 

While on the topic of yields, we note that copper/gold is catching back down to the 10Y Yield (copper down relative to gold in the last week)…

 

The USD Index rose for the 6th of the last 7 weeks – to the highest since Dec 2002 – led by Cable and Aussie weakness… (notably the Mexican Peso dropped most since the election week)

 

 

A small gain on the day for gold (the first in 4 days) briefly moved it green for the week but by the close it was red. Crude scrambled into the green but it was copper and silver that were worst…

 

Gold is down (again) on the week – but barely – however this is the 7th straight weekly decline – the longest streak of losses since May 2004

 

And as Gold sinks, Bitcoin soars… back toward parity and its record highs relative to the precious metal..

 

Finally, the global USD shortage remains extreme…

end

 

Donald trump tees off on Lockheed as he tells Boeing to make a cheaper F18 to compete against Lockheed’s F35

(courtesy zero hedge)

Lockheed Tanks After Trump Tweets He Told Boeing To Price Cheaper F-18 Competitor To F-35

Another day, another market-moving tweet from Donald Trump.

Moments ago, the president-elect, following up on his recent spat with Lockheed over the F-35, which one week ago Trump said its “program and cost is out of control”, continued his crusade on over-budget government programs, when he tweeted that based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!

Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!

The immediate kneejerk response has been to send Boeing stock higher, while LMT has slide over 1% in the after hours, as Trump once again moves stocks with his tweets.

Earlier in the day, following Trump’s tweet that “the United States must greatly strengthen and expand its nuclear capability until such time as the world comes to its senses regarding nukes”, the result was a surge in Uranium miners surging, as shown in the following ETF.

Prior to that, when Trump’s team announced that Carl Icahn would be named special adviser to help overhaul federal regulations, that in turn sparked a rally in merchant refiners and sent shares lower in industries the activist investor has publicly rebuked.

As Bloomberg notes, “the sharp share fluctuations highlight the market-moving ability of both Trump’s Twitter account and his cabinet appointments. Since his election victory in November, he’s rattled industries from aerospace to health-care, using his social media presence and business-friendly appointments to create and erase billions of dollars of market value at a moment’s notice.”

Expect even sharper market reactions as more algos and quant shop train their algos to only focus on Trump’s twitter feed in the future.

 

end

 

An excellent commentary explaining why the situation for pensions reform is a must. The birthrate among women is now the lowest on record at 1.9.  To keep on an even keel we need 2.1

(courtesy Mac Slavo/SHTFPlan.com)

 

More fake data: we have soaring homebuilder confidence, crashing mortgage applications, rising mortgage rates, weaker pending home sales and now strong existing home states to go along with strong new home sales. The truth??

(courtesy zero hedge)

New Home Sales Jump Ahead Of Mortgage Rate Spike Led My Midwest Surge

 

Obama snubs Trump as Trump was adamant for the USA to veto the UN vote

(courtesy zero hedge)

 

Obama Administration Abstains, Defying Trump, As UN Votes To Condemn Israel Settlements

Israel lashed out at the Obama administration  “friends don’t act that way” after Ambassador Power abstained (refusing to veto) as The United Nations passed a resolution demanding Israel to stop settlement building on occupied Palestinian territory. As NYTimes notes, the administration’s decision not to veto the measure broke a longstanding American tradition of serving as Israel’s sturdiest diplomatic shield, and defied extraordinary pressure from President-elect Trump.

As The New York Times reports,the administration’s decision not to veto the measure came a day after Mr. Trump personally intervened to keep the draft measure, proposed by Egypt, from coming up for a vote on Thursday, as scheduled.

Mr. Trump’s aides said he spoke to the Israeli prime minister,Benjamin Netanyahu. Both men also spoke to the Egyptian president, Abdel Fattah el-Sisi. Egypt postponed the vote.

 

But in a show of mounting frustration, a group of other countries on the 15-member Security Council — all of them relatively powerless temporary members with rotating two-year seats — snatched the resolution away from Egypt and put it up for a vote Friday afternoon.

 

It passed 14 votes in favor, with the United States abstaining.

Ambassador Power tried to explain herself (yes that Smantha Power):

  • *POWER QUOTES REAGAN IN DEFENSE OF U.S. ABSTENTION ON UN VOTE
  • *POWER SAYS VOTE WAS NOT `STRAIGHTFORWARD’ FOR U.S.
  • *POWER SAYS ISRAEL STILL TREATED DIFFERENTLY AT THE UN
  • *POWER: CAN’T CHAMPION SETTLEMENTS AND TWO-STATE SOLUTION TOO
  • *POWER: UN RESOLUTION `TOO NARROWLY FOCUSED’ ON SETTLEMENTS

As yet Donald Trump has not tweeted his response, but the Israelis are not happy:

  • *ISRAEL’S STEINITZ ON U.S. VOTE: `FRIENDS DON’T ACT THAT WAY’
  • *UN VOTE NOT ANTI-SETTLEMENT, IT’S ANTI-ISRAEL: YUVAL STEINITZ
  • Manoj Rawal: U.S. HAS “ABANDONED ISRAEL,” #ISRAELI MINISTER CLOSE TO #NETANYAHU SAYS AFTER UN SECURITY COUNCIL VOTE ON
  • *ISRAEL’S DANON SAYS U.S. VETO OF UN MOVE `WAS TO BE EXPECTED’
  • *ISRAEL’S DANON: `NEW ERA’ WILL COME WITH TRUMP ADMINISTRATION

Paul Ryan has chimed in:

  • *RYAN SAYS U.S. REFUSAL TO VETO UN ISRAEL RESOLUTION `SHAMEFUL’

 end

And in response Trump tweets this;

 

Trump’s Ominous Warning To The UN: “Things Will Be Different After Jan. 20th”

Following today’s surprising decision by the US’ Samantha Power to abstain in a UN vote over Israel settlements, one which provoked Israel to lash out at the Obama administration  “friends don’t act that way”, but more importantly defied Trump who in a previous tweet urged Obama to veto the resolution, it was only a question of how long before Trump tweets his response. The time was less than an hour, because just minutes after the vote, the president-elect slammed the current administration’s decision, while ominously warning the UN that it would be “different” under his presidency.

“As to the U.N., things will be different after Jan. 20th,” Trump tweeted Friday.

As a reminder, the U.S. had the ability to veto any resolution but abstained from doing so, despite pressure from Trump, Israeli Prime Minister Benjamin Netanyahu, and U.S. lawmakers on both sides. Furthermore, the administration’s decision to let it pass represents a break from the longstanding U.S. policy of shielding Israel from U.N. reproaches.

To be sure, there is another side to the story, with Israel’s settlements have long been seen by critics as human rights violations as an obstacle to achieving peace between Israel and the Palestinians. In any case, Trump pressured Obama before the U.N. vote to veto the resolution.

“As the United States has long maintained, peace between the Israelis and the Palestinians will only come through direct negotiations between the parties, and not through the imposition of terms by the United Nations,” the president-elect said in a statement Thursday. “This puts Israel in a very poor negotiating position and is extremely unfair to all Israelis.”

Samantha Power, the U.S. ambassador to the U.N., explained the move in a statement to the council, condemning Netanyahu for continuing settlement expansion while paying lip service to the idea of a two-state solution.

“One cannot simultaneously champion expanding Israeli settlements and champion a viable two-state solution that would end the conflict,” she said. “One has to make a choice between settlements and separation.”

Noting Trump’s curious engagement, Glenn Greenwald tweeted moments ago that “It is rather bizarre that Trump, after running on “America First,” wants to isolate US from the entire world to defend Israeli occupation…”

It is rather bizarre that Trump, after running on “America First,” wants to isolate US from the entire world to defend Israeli occupation… https://twitter.com/joeu02/status/812401793690980356 

Meanwhile, Israel’s PM Netanyahu said that his country would not abide by the UN resolution’s terms, which he rejected as “shameful”, prompting questions if Israel is now a “rogue” UN member nation…

… and leading to a direct face off between Trump and Obama on the topic of Israel.

No matter who is right or wrong on this particular issue, however, the UN may want to start scoping out leases in neighboring buildings, because if Trump is indeed as angry as his tweet suggests, the UN building in midtown Manhattan may soon find itself looking for new tenants.

 

 

end

Truck Killers will Cause EU to Vote Out Leaders, Trump Gets Ready for War, Merry Christmas

By Greg Hunters USAWatchdog.com (WNW 265 12.23.16)

Terrorists have stuck again by using a truck to mow down Christmas shoppers. The latest attack was committed by an Islamic terrorist who is aligned with ISIS.  This is one of the many reasons the status quo will be voted out of office in the 2017 elections in places like France and Germany.  People have had enough with the PC culture, while people are slaughtered by terrorists on a regular basis.

Donald Trump has picked his cabinet and looks like he is going to war with the oligarchs. He has former Marine generals posted as Secretary of Defense and managing Homeland Security after he takes office on January 20th.  Another telling pick is former Chairman of the Federal Election Commission Don McGahn chosen as White House Counsel.  Is Trump going to take on election and voter fraud that is running rampant?  It sure looks that way.

Merry Christmas everyone, and thank you for supporting USAWatchdog.com. People like you have given me a Christmas present all year long by your faithful support of USAWatchdog.com.

 

Join Greg Hunter as he talks about these stories and more in the Weekly News Wrap-Up.

 

After the Wrap-U

 

We wish everyone a very Merry Christmas and to our Jewish friends a happy

Chanukkah week.

See you on Tuesday Dec 27

Harvey

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