OCT17/ANOTHER RAID BY THE BANKERS KNOCKS GOLD AND SILVER DOWN/KOBE STEEL FRAUD GOES GLOBAL/CHINA BUILDS A SIX LANE HIGHWAY AS THEY ARE READY TO INVADE NORTH KOREA AND TAKE AWAY THEIR NUCLEAR WEAPONS/ISIS LOSES RAQQA/IRAQI KURDS LOSE KIRKUK AND GOES BACK TO PRIOR BORDERS/

 

 

GOLD: $1284.95 DOWN $17.40

Silver: $17.02 DOWN 33 cents

Closing access prices:

Gold $1285.50

silver: $17.03

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1303,20 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1293.20

PREMIUM FIRST FIX:  $10.00 (premiums getting larger)

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SECOND SHANGHAI GOLD FIX: $1301.69

NY GOLD PRICE AT THE EXACT SAME TIME: $1291.90

Premium of Shanghai 2nd fix/NY:$9.79(PREMIUMS GETTING LARGER)  

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LONDON FIRST GOLD FIX:  5:30 am est  $1289.70

NY PRICING AT THE EXACT SAME TIME: $1304.10

LONDON SECOND GOLD FIX  10 AM: $1284.75

NY PRICING AT THE EXACT SAME TIME. 1299.60

For comex gold:

OCTOBER/

NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 1 NOTICE(S) FOR  100  OZ.

TOTAL NOTICES SO FAR: 2354 FOR 235,400 OZ  (7.329TONNES)

For silver:

OCTOBER

 166 NOTICES FILED TODAY FOR

830,000  OZ/

Total number of notices filed so far this month: 562 for 3,640,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin:  $5659 bid /$56 79 offer up $171.00

end

Let us have a look at the data for today

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In silver, the total open interest ROSE BY 1268contracts from  190,994  UP TO 192,262  WITH RESPECT TO YESTERDAY’S TRADING (DOWN 6 CENTS).  THE CROOKS ARE STILL HAVING AN AWFUL TIME TRYING TO COVER THEIR MASSIVE SILVER SHORTS.  IT IS OBVIOUS THAT WE MUST HAVE HAD ZERO BANKER SHORT COVERING AND THUS THE REASON FOR ANOTHER RAID TODAY.

RESULT: A GOOD SIZED RISE IN OI COMEX  WITH THE  6 CENT PRICE FALL.  OUR BANKERS COULD NOT COVER ANY OF THEIR HUGE SHORTFALL AND THUS ANOTHER RAID WAS CALLED UPON . 

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.961 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 166 NOTICE(S) FOR 830,000  OZ OF SILVER.

In gold, the open interest ROSE BY A HUGE 4992 CONTRACTS DESPITE THE SMALL SIZED  FALL IN PRICE OF GOLD ($1.64) .  The new OI for the gold complex rests at 533,134. OUR BANKER FRIENDS COULD NOT COVER ANY OF THEIR GOLD SHORTS AS THEY  COMMENCED ANOTHER OF THEIR FAMOURS  RAIDS ..

 

Result: A GOOD SIZED INCREASE IN OI WITH THE FALL IN PRICE IN GOLD ($1.64). WE HAD ZERO BANKER GOLD SHORT COVERING BY THE BANKERS SO ANTHER RAID WAS INITIATED . 

we had: 1notice(s) filed upon for 100 oz of gold.

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

GLD:   

Tonight , NO CHANGES  in gold inventory at the GLD/

Inventory rests tonight: 853.13 tonnes.

SLV

Today:  A HUGE change in inventory: A MONSTROUS WITHDRAWAL OF 3.49 MILLIONOZ

INVENTORY RESTS AT 322.271 MILLION OZ

end

.

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

1. Today, we had the open interest in silver ROSE BY 1268 contracts from 190,994  UP TO 192,262(AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) .  OUR BANKERS WERE AGAIN UNSUCCESSFUL IN COVERING THEIR SILVER SHORTS. THE DATA ALSO SUGGESTS THAT THE BANKERS COULD NOT COVER ANY THEIR GOLD SHORTS  . HOWEVER IT IS CLEAR THAT  SILVER  IS BECOMING IMPOSSIBLE FOR THE CROOKS TO COVER. AS I STATED YESTERDAY: “THE BANKERS ON FRIDAY RETREATED TO HIGHER GROUND WHERE THEY WILL TRY AGAIN.”..AND THUS THE RAID TODAY!!

RESULT:  A GOOD SIZED INCREASE IN SILVER OI  AT THE COMEX WITH THE  FALL IN PRICE OF 6 CENTS WITH RESPECT TO YESTERDAY’S TRADING. OUR BANKER FRIENDS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY OF OUR SILVER SHORTS AND AFTER RETREATING TO HIGHER GROUND , THEY DECIDED TO RAID TODAY

(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

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed DOWN 6.43 points or .19% /Hang Sang CLOSED UP 4.69 pts or .02% / The Nikkei closed UP 80.56 POINTS OR .38/Australia’s all ordinaires CLOSED UP 0.89%/Chinese yuan (ONSHORE) closed DOWN  at 6.6210/Oil UP to 52.03 dollars per barrel for WTI and 58.12 for Brent. Stocks in Europe OPENED IN THE GREEN .  ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6210. OFFSHORE YUAN CLOSED STRONGER TO THE ONSHORE YUAN AT 6.6179AND //ONSHORE YUAN  WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT PARTICULARLY  HAPPY TODAY

)

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)North Korea/USA

b) REPORT ON JAPAN

c) REPORT ON CHINA

4. EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6 .GLOBAL ISSUES

 

7. OIL ISSUES

8. EMERGING MARKET

9.   PHYSICAL MARKETS

10. USA Stories

Let us head over to the comex:

The total gold comex open interest ROSE BY A GOOD SIZED 4,992 CONTRACTS UP to an OI level of 533,134WITH THE FALL IN THE PRICE OF GOLD ($1.64 DROP IN YESTERDAY’S TRADING).  IT  OUR BANKER FRIENDS FAILED AGAIN IN THEIR ATTEMPT  TO COVER SOME OF THEIR HUGE GOLD SHORTFALL . SO THE BANKERS RETREATED TO HIGHER GROUND AND THEN INITIATED ANOTHER  RAID YESTERDAY AFTERNOON AND CONTINUING ON THIS MORNING AGAIN.  OCTOBER IS AN ACTIVE DELIVERY MONTH ALTHOUGH IT IS THE WEAKEST IN TERMS OF ACTUAL DELIVERIES AND OPEN INTEREST.  WE  VISUALIZED THAT THROUGHOUT THE MONTH OF SEPTEMBER, THE CROOKS UTILIZED THE EMERGENCY EFP SCHEME TO TRANSFER OBLIGATIONS OVER TO LONDON. IT THEN STANDS TO REASON THAT IF THE EMERGENCY WAS IN FORCE THROUGHOUT THE MONTH OF SEPTEMBER IT WOULD CONTINUE ON FIRST DAY NOTICE WHEREBY ANOTHER 7200 LONG COMEX CONTRACTS WERE GIVEN 7200 EFP’S. WE HAVE NOW ENDED GOLDEN WEEK WHERE ALL OF CHINA WAS OFF AND AS SUCH WE SHOULD EXPECT  GOLD TO BE STRONG THIS WEEK  WITH CHINA RETURNING TO ACTIVE DUTY PURCHASING OUR PRECIOUS METALS.

Result: a  GOODSIZED open interest INCREASE WITH THE SMALL SIZED FALL IN THE PRICE OF GOLD ($1.164.  AFTER BANKERS RETREATED TO HIGHER GROUND THEY INITIATED ANOTHER RAID YESTERDAY AFTERNOON CONTINUING ON THIS MORNING. 

 

IN SEPTEMBER,CHINA THREW OUT A TRIAL BALLOON LAST MONTH THAT THEY WERE CONSIDERING A YUAN BASED OIL CONTRACT ON THE SHANGHAI EXCHANGE AND THEN THE RECIPIENT OF YUAN WILL ALSO HAVE THE OPTION OF CONVERTING TO GOLD. I NOW STRONGLY BELIEVE THAT THAT IS THE REASON FOR THE CONSTANT TORMENT. THE BANKERS KNOW THAT THEIR GAME WILL BE UP ONCE WE GET A YUAN-PETRO SCHEME WITH A CONVERSION OF YUAN INTO GOLD.

I BELIEVE THE CHINESE WILL INTRODUCE THIS SCHEME AT THEIR BIG 5 YR FORUM BEGINNING ON OCT 18.

I WOULD IMAGINE THAT THE CHINESE WOULD TAKE IN ALL GOLD INITIALLY AT SAY $2,000…AND THE NEW GOLD RECEIVED WOULD BE USED TO SETTLE ON YUAN CASHED. IF 2,000 DOLLARS IS INSUFFICIENT TO RAISE ENOUGH GOLD, THEN FURTHER INCREASES WILL BE THE ORDER OF THE DAY UNTIL EQUILIBRIUM.

THE BANKERS FEARING THIS, HAS ORCHESTRATED HUGE RAIDS THESE PAST 3 WEEKS HOPING TO COVER AS MANY GOLD/SILVER SHORTS AS POSSIBLE.

NOW THAT WE ARE CLOSE TO THE 19TH CHINESE CONGRESS, THE BANKERS ARE TAKING NO CHANCES AS THEY START TO COVER THEIR GOLD/SILVER SHORTFALL.

We have now entered the active contract month of Oct and here we saw a GAIN of 62 contracts UP TO 318 contracts.  We had 19 notices filed yesterday so we GAINED 81 contracts or an additional 8100 oz will stand for delivery at the comex in this active delivery month of October and 0 EFP notices were given. The low number of notices early in the delivery cycle is evidence of a lack of physical gold. We are also witnessing queue jumping in the gold comex which is another indicator of physical shortage.

The November contract saw A loss OF 155 contracts down to 1078.

The very big active December contract month saw it’s OI GAIN OF 3631 contracts UP to 404,518

.

We had 1 notice(s) filed upon today for  100 oz

 VOLUME FOR TODAY (PRELIMINARY) 320,951

CONFIRMED VOLUME YESTERDAY: 278,324

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And now for the wild silver comex results.  Total silver OI ROSE BY  A STEADY 1268 CONTRACTS FROM 190,994 UP TO 192,262WITH YESTERDAY’S 6 CENT FALL IN PRICE. WE  HAD NO BANKER SHORT COVERING AS THE CROOKS TRIED AND FAILED IN THEIR ATTRMPT TO  LOOSEN ANY SILVER LONGS FROM THE SILVER TREE.  THE BANKERS HAD NO CHOICE BUT TO RETREAT TO HIGHER GROUND WHERE YESTERDAY THEY INITIATED A RAID WHICH IS CONTINUING THIS MORNING.
We have now entered the non active contract month of October and here the OI LOST 0 contacts DOWN TO 401.  We had 9 notices filed on yesterday so we gained 9  contracts or AN ADDITIONAL 45,000 oz will  stand for delivery and 0 EFP’s were issued.   November saw a GAIN of 13 contract(s) and thus RISIING TO  344. After November, the NEXT big active contract month is December and here the OI GAINED 884 contracts UP to 145,057 contracts.

We had 9 notice(s) filed for  45,000 oz for the OCT. 2017 contract

INITIAL standings for OCTOBER

 Oct.17/2017.

Gold Ounces
Withdrawals from Dealers Inventory in oz   n/a
Withdrawals from Customer Inventory in oz  
n/a oz
Deposits to the Dealer Inventory in oz    n/a oz
Deposits to the Customer Inventory, in oz 
 n/a
No of oz served (contracts) today
 
1notice(s)
100 OZ
No of oz to be served (notices)
317contracts
(31,700 oz)
Total monthly oz gold served (contracts) so far this month
2354 notices
235,400 oz
7.3219 tonnes
Total accumulative withdrawals  of gold from the Dealers inventory this month   NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month     xxx oz
Today we HAD  xx kilobar transaction(s)/ 
 WE HAD xx DEALER DEPOSIT:
total dealer deposits: xx oz
We had xxx dealer withdrawals:
total dealer withdrawals:  xx oz
we had xxx customer deposit(s):
total customer deposits; xx oz
We had n/a customer withdrawal(s)
total customer withdrawals; nil  oz
 we had xxx adjustment(s)
For OCT:

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 1  contract(s)  of which 0 notices were stopped (received) by j.P. Morgan dealer and 1 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

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To calculate the INITIAL total number of gold ounces standing for the OCTOBER. contract month, we take the total number of notices filed so far for the month (2354) x 100 oz or 235,400 oz, to which we add the difference between the open interest for the front month of OCT. (318contracts) minus the number of notices served upon today (1) x 100 oz per contract equals 267,100  oz, the number of ounces standing in this active month of OCT.
 
Thus the INITIAL standings for gold for the OCTOBER contract month:
No of notices served  (2354) x 100 oz  or ounces + {(318)OI for the front month  minus the number of  notices served upon today (1) x 100 oz which equals 267,100 oz standing in this  active delivery month of OCTOBER  (8.307 tonnes).
WE GAINED 81 CONTRACTS OR AN ADDITIONAL 8100 OZ WILL   STAND
 IT WAS OBVIOUS THAT  THERE WAS HARDLY ANY  PHYSICAL GOLD TO DELIVER UPON LONGS IN SEPTEMBER AND THIS CONTINUES ON IN OCTOBER.   THE CROOKS USE THE EFP’S TO TRANSFER THEIR OBLIGATION TO ANOTHER EXCHANGE. THIS IS WHY ANOTHER 5400 EFP’S WERE ISSUED FOR OCTOBER GOLD ON FIRST DAY NOTICE AND IT ALSO EXPLAINS THE LACK OF DELIVERY NOTICES IN THE EARLY PART OF THIS DELIVERY ACTIVE MONTH. QUEUE JUMPING IS ANOTHER INDICATOR OF PHYSICAL SCARCITY
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Total dealer inventory 598,132.542 or 18.604 tonnes  (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 8,771,375.170 or 272.82 tonnes 
 
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 13 MONTHS  80 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE OCTOBER DELIVERY MONTH
OCTOBER INITIAL standings
 Oct 17/ 2017
Silver Ounces
Withdrawals from Dealers Inventory  n/a
Withdrawals from Customer Inventory
 n/a oz
Deposits to the Dealer Inventory
 n/a oz
Deposits to the Customer Inventory 
 n/a
No of oz served today (contracts)
166CONTRACT(S)
(830,000,OZ)
No of oz to be served (notices)
235contracts
(1,175,000 oz)
Total monthly oz silver served (contracts) 728contracts

(3,640,000 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    xx oz
today, we had  xxx deposit(s) into the dealer account:
total dealer deposit: xxx   oz
we had xxx dealer withdrawals:
total dealer withdrawals: xxx oz
we had  xx customer withdrawal(s):
TOTAL CUSTOMER WITHDRAWALS: xx  oz
We had xx Customer deposit(s):
***deposits into JPMorgan have stopped  again
In the month of March and February, JPMorgan stopped (received) almost all of the comex silver contracts.
why is JPMorgan bringing in so much silver??? why is this not criminal in that they are also the massive short in silver
total customer deposits: 600,627.490  oz
 
 we had 0 adjustment(s)
The total number of notices filed today for the OCTOBER. contract month is represented by 166 contracts( for 830,000 oz. To calculate the number of silver ounces that will stand for delivery in OCTOBER., we take the total number of notices filed for the month so far at 728x 5,000 oz  = 3,640,0000 oz to which we add the difference between the open interest for the front month of OCT. (401) and the number of notices served upon today (166x 5000 oz) equals the number of ounces standing.
 

 

.
 
Thus the INITIAL standings for silver for the OCTOBER contract month:  728 (notices served so far)x 5000 oz  + OI for front month of OCTOBER(401) -number of notices served upon today (166)x 5000 oz  equals  4,815,000 oz  of silver standing for the OCTOBER contract month. This is HUGE for this NON active delivery month. THE INCREASE IN TOTAL OZ STANDING FOR SILVER CONTINUES TO ADVANCE
 
WE GAINED 9  CONTRACTS OR  AN ADDITIONAL 45,000 OZ WILL  STAND FOR DELIVERY.
 ESTIMATED VOLUME FOR TODAY:   87,044
CONFIRMED VOLUME FOR YESTERDAY:  79,983 CONTRACTS
 
 
Total dealer silver:  39.345 million (close to record low inventory  
Total number of dealer and customer silver:   220.100 million oz
The record level of silver open interest is 234,787 contracts set on April 21./2017  with the price at that day at  $18.42
The previous record was 224,540 contracts with the price at that time of $20.44
end

NPV for Sprott and Central Fund of Canada

 

1. Central Fund of Canada: traded at Negative 2.2 percent to NAV usa funds and Negative 2.4% to NAV for Cdn funds!!!! 
Percentage of fund in gold 62.5%
Percentage of fund in silver:37.6%
cash .-0.1%( Oct17/2017) 
2. Sprott silver fund (PSLV): STOCK   RISES TO -0.20% (Oct 17/2017) 
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.48% to NAV  (Oct 17.2017 )
Note: Sprott silver trust back  into NEGATIVE territory at -0.20%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.48%/Central fund of Canada’s is still in jail  but being rescued by Sprott.

Sprott WINS hostile 3.1 billion bid to take over Central Fund of Canada

(courtesy Sprott/GATA)

Sprott Inc. to take control of rival gold holder Central Fund of Canada

by THE CANADIAN PRESS

Posted Oct 2, 2017 8:43 am PDT

Last Updated Oct 2, 2017 at 9:20 am PDT

TORONTO – Sprott Inc. (TSX:SII) says it has struck a deal to take control of rival gold-holding firm Central Fund of Canada Ltd. (TSX:CEF.A) after a protracted takeover effort.

Toronto-based Sprott said Monday it will pay $120 million in cash and stock for Central Fund of Canada Ltd.’s common shares and for the right to administer and manage the fund’s assets.

The deal, which requires approval from Central Fund shareholders, would see its class A shareholders transferred to a new Sprott Physical Gold and Silver Trust.

Sprott says the deal would add $4.3 billion to its assets under management, which are focused largely on holding physical precious metals on behalf of clients, and 90,000 investors to its client base.

In March, Sprott tried to go through the Court of Queen’s Bench of Alberta to allow Central Fund’s class A shareholders to swap their shares to Sprott after the family that controls Central Fund rebuffed their attempt to make a deal.

Last year Sprott took over Central GoldTrust, a similar fund controlled by the same family, after securing support from more than 96 per cent of shareholder votes cast.

END

And now the Gold inventory at the GLD

Oct 17./no change in gold inventory at the GLD/inventory rests at 853.13 tonnes

Oct 16/A HUGE WITHDRAWAL OF  5.32 TONNES FROM THE GLD/INVENTORY RESTS AT 853.13 TONNES

0CT 13/ NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 12/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 10/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 9/ANOTHER DEPOSIT OF 4.43 TONNES INTO GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 6/A DEPOSIT OF 2.96 TONNES OF GOLD INVENTORY INTO THE GLD/TONIGHT IT RESTS AT 854.02 TONNES

Oct 5/A LOSS OF 3.24 TONNES OF GOLD INVENTORY FROM THE GLD/INVENTORY RESTS AT 851.06 TONNES

Oct 4/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 854.30 TONNES

oCT 3/ A HUGE WITHDRAWAL OF 10.35 TONNES FROM THE GLD/INVENTORY RESTS AT  854.30 TONNES

Oct 2/STRANGE/WITH GOLD’S CONTINUAL WHACKING WE GOT A BIG FAT ZERO OZ LEAVING THE GLD/INVENTORY RESTS AT 864.65 TONNES

SEPTEMBER 29/no changes in gold inventory at the GLD/Inventor rests at 864.65 tonnes

Sept 28/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 864.65 TONNES

Sept 27/WOW!! WITH GOLD DOWN $13.25, WE HAD A HUGE 8.57 TONNES OF GOLD ADDED TO THE GLD/

Sept 26/no changes in gold inventory at the GLD/Inventory rests at 856.08 tonnes

Sept 25./Another big deposit of 3.84 tonnes into GLD/Inventory rests tonight at 856.08 tonnes

Sept 22/with gold up only 1 dollar on the day we had a massive 6.21 tonnes of gold added to the GLD/.this is a good sign that gold will advance nicely this coming week.

Sept 21/no change in gold inventory tonight/inventory rests at 846.03 tonnes

Sept 20/no change in gold inventory tonight/inventory rests at 846.03 tonnes

Sept 19/another deposit of 2.07 tonnes of gold into the GLD/inventory rests at 846.03 tonnes

Sept 18/a huge 5.32 tonnes of gold deposit into the GLD despite gold’s whack today/inventory rests at 843.96 tonnes

Sept 15./strange!!no change in GLD after the whacking of gold/inventory remains at 838.64 tonnes

Sept 14./no changes at the GLD/inventory rests at 838.64 tonnes

Sept 13/late last night a huge 4.14 tonnes of gold was added to the GLD inventory/inventory rests at 838.64 tonnes.

Sept 12/as of 5: 40 pm est, no changes in gold inventory at the GLD/Inventory rests at 834.50 tonnes

Sept 11/Today we had a rather large 2.37 tonnes of gold removed from the GLD/Inventory rests at 834.50 tonnes

Sept 8/we had a tiny withdrawal of .34 tonnes and probably that would be to pay for fees like insurance etc.

Inventory rests at 836.87 tonnes

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Oct 17/2017/ Inventory rests tonight at 853.13 tonnes
*IN LAST 252 TRADING DAYS: 87.82 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 187 TRADING DAYS: A NET  69,46 TONNES HAVE NOW BEEN ADDED INTO  GLD INVENTORY.
*FROM FEB 1/2017: A NET  38,35 TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

Oct 17/ A MONSTROUS WITHDRAWAL OF 3.494 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 322.271 MILLION OZ

Oct 16/  NO CHANGES IN SILVER INVENTORY AT THE SLV.INVENTORY RESTS AT 325.765 MILLION OZ

oCT 13/ NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 325.765 MILLION OZ

Oct 12/THE LAST TWO DAYS WE LOST 1.113 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 325.765 MILLION OZ

Oct 10/NO CHANGE IN INVENTORY AT THE SLV/INVENTORY RESTS AT 326.898 MILLION OZ/

Oct 9/A HUGE DEPOSIT OF 1.227 MILLION OZ INTO THE INVENTORY OF THE SLV/INVENTORY RESTS AT 326.898 MILLION OZ

Oct 6/NO CHANGE IN SILVER INVENTORY/ INVENTORY RESTS AT 325.671 MILLON OZ

Oct 5/ANOTHER WITHDRAWAL OF 944,000 OZ FROM THE SLV/INVENTORY RESTS AT 325.671 MILLION OZ

OCT 4/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.615 MILLION Z

Oct 3/A TINY WITHDRAWAL OF 143,000 FROM THE SLV FOR FEES/INVENTORY RESTS AT 326.615  MILLION OZ

Oct 2/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326,757 MILLION OZ

SEPTEMBER 29/no changes in silver inventory at the SLV/inventory rests at 326.757 million oz/

Sept 28/NO CHANGES IN SILVER INVENTORY/INVENTORY RESTS AT 326.757 MILLION OZ/

Sept 27/STRANGE!! SILVER IS HIT FOR 24 CENTS YESTERDAY AND. 9 CENTS TODAY AND YET NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 326.757 MILLION OZ

Sept 26./no change in silver inventory at the SLV/.inventory rests at 326.757 million oz

Sept 25./ a big deposit of 1.842 million oz into the SLV/inventory rests at 326.757 million oz/

Sept 22/no change in silver inventory at the SLV/Inventory rests at 324.915 million oz/

Sept 21/no change in silver inventory at the SLV/Inventory rests at 324.915 million oz

Sept 20/no changes in silver inventory/Inventory remains at 324.915 million oz

Sept 19/strange!! another withdrawal of 1.134 million oz despite the rise in silver/inventory rests at 324.915 million oz

Sept 18/a withdrawal of 1.039 million oz from the SLV/Inventory rests at 326.049 million oz

Sept 15./no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 14/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 13/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 12.2017/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 11.2017: no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 8/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Oct 17/2017:

Inventory 322.271 million oz
end
  • 6 Month MM GOFO

    Indicative gold forward offer rate for a 6 month duration

    + 1.52%
  • 12 Month MM GOFO
    + 1.69%
  • 30 day trend

end

 

Major gold/silver trading/commentaries for TUESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures
By janskoyles October 17, 2017 0 Comments

– Brexit UK vulnerable as gold bar exports distort UK trade figures
– Britain’s gold exports worth more than any other physical export
– Gold accounted for more than one in ten pounds of UK exports in July 2017
– UK’s stock of wealth has collapsed from a surplus of £469bn to a net deficit of £22bn – ONS error
– Brexiteers argue majority of trade is outside EU, this is due to large London gold exports
– Single gold bar (London Good Delivery) is, at today’s prices, worth just over £400,000
– “There are few things you’ll ever touch which pack so much weight into such a small size”
– UK’s economic vulnerability means safe haven gold essential protection

I’ve never played poker but I’m pretty sure the number one rule is not to reveal your cards to your opponents.
Yesterday the ONS possibly gave the EU one of the biggest reveals so far in Brexit negotiations. Revised figures from the statistics bureau showed the country’s stock of wealth has fallen from a surplus of £469 billion to a net deficit of £22 billion as reported by LBC.
This is down to FDI and fall in reserve foreign assets. In the first half of the year FDI fell from a £120 billion surplus in the first half of 2016 to a £25 billion deficit for the first half of this year.
With the UK totally losing its foreign assets, the EU (and the rest of the world) is aware that its safety net is no longer there. Not great timing, just as the government is trying to get through this crucial stage of Brexit negotiations.
The amount that has been knocked off the UK’s wealth is the equivalent of 40% of EU contributions. The bank balance isn’t the only thing the UK has at best misunderstood or at worst been mislead over. Their trade is not as internationally diverse as Brexiteers might have led markets to believe.
Following the referendum result there was an increase in Britain’s exports. Many pointed to the numbers as a sign of confidence in the future of the UK, following the Brexit vote.
It turns out that much maligned gold was to thank for this uptick. Without gold, the majority of the UK’s trade would be with the EU.
This is a reminder of how vulnerable we are to negotiations and reliant we are on the precious metal.
Gold’s saving role
As we can all recall, there was an air of uncertainty and panic surrounding the UK’s referendum last June. This prompted investors to diversify into gold bullion as a safe haven.
The increase in purchases of gold bars was so big that estimates of the country’s end-of-year GDP were pushed up. The majority of the gold sold in London eventually goes onto Switzerland, India and China. Therefore the export of gold is recorded as non-EU trade.

It is this that politicians, economists and the mainstream saw when they looked at export figures. An uptick in non-EU trade led them to conclude that Britain’s exports to the EU were growing which was a sign of confidence in the soon-to-be ex-EU Britain.
It was more of a sign of faith in the London Gold market over others in the UK. This past July Britain’s gold exports were greater than any other (physical) export.  More than 10% of the value of UK exports in July were accounted for by gold.
Gold, the ultimate test for lack of confidence in the UK
Much of the gold didn’t even hang around in the UK. So little confidence did investors have. Reports show that some of that bullion bought in London was then moved out of the country to China, by investors, at the end of 2016.
These purchases and movement of gold was a double-edged sword, or contrasting sign of confidence and lack of confidence. It is an indication that foreign investors were still faithful to the hallmark that is the London Gold market, however have declining confidence in the United Kingdom.
Ed Conway on Sky News, explains the tricky picture this creates for those pushing confidence in the UK:
This raises doubts over one of the few Brexit claims which has yet to be challenged – that Britain now exports far more outside the EU than inside.
The official trade figures produced by HM Revenue & Customs show that over the past five years the EU’s share of Britain’s exports has dropped to 46%.
But strip gold out of the statistics and the EU’s share is still 50%. Falling, yes, but not quite as fast as the official numbers might have you believe.
There are a few provisos: for one thing, these numbers don’t include services trade – Britain’s real speciality, particularly with non-European partners.
Even so, when you exclude gold from the overall trade balance (goods and services) – a tricky operation since the numbers are fiddly and not altogether comparable – a similar thing happens: the share going to the EU rises from about 45% to 47%.
The lesson is clear: that while Britain remains a dynamic trading nation, it is actually considerably more reliant on trade with Europe than the official numbers suggest.
International investors put their faith in gold
No matter how long someone works in the world of gold investment, it never ceases to amaze how much faith and value is put into something so small. A London Good Delivery bar is currently worth just over £400,000. A huge amount given it weighs 12.5 kilos.

But little comes down to size, instead it is about history and solid economic evidence that proves its role as a safe haven and hedge against economic risks.
These increased gold purchases show international investors still hold the London Good Delivery system to a high standard but do not have faith in the economy.
It is quite a contrast to the UK government which puts little faith into gold, with very low gold reserves despite the UK having no natural gold assets for mining.
The faith of foreign investors in gold over the British economy is one which is unlikely to change. Not only is the Brexit picture getting bleaker but so are figures that indicate in what poor health the system is in.
Today the news that inflation has hit 3%, a five-year high, is bad news for all holders of the pound and particular bad news for those who continue to see their wages squeezed.

Gold is an excellent hedge against the serious damage inflation leaves in its wake. It is also an excellent hedge against government mismanagement and weak economic decisions.
International investors and gold buyers including central banks are better informed about this than the UK’s own government. The same group who are supposed to be managing the country’s finances.
Conclusion
Yesterday UK and EU leaders agreed that Brexit negotiations needed to ‘accelerate’. Despite some forced smiles and statements from officials on both sides it’s clear that the most infamous (and expensive) divorce  discussion is not going well.
The longer politicians and bureaucrats continue to snipe at one another the less time there is for the United Kingdom to build and grow trade relationships in the wider world.
This is bad news for sterling, for jobs and for our overall wealth. We are in an extremely vulnerable position.
The UK government continues to ask the public for their faith and support in the Brexit negotiations. However this is too little too late. Very little support has been shown for British voters and outside investors when it comes to how the economy has (and will be managed). The public is unlikely to respond positively.
Inflation is climbing, property is stumbling and wages and pensions continue to be at risk from cuts and mismanagement.
Those vulnerable to Brexit negotiations must follow in the footsteps of those international investors by placing their faith in gold rather than await the outcome of negotiations being carried out by self-serving politicians and bureaucrats

END

Now that China and Russian are neck and neck with respect to official reserves, will China let Russia surpass them?

courtesy Ronan Manly/Bullionstar)

Ronan Manly: Neck and neck — Russian and Chinese official gold reserves

Submitted by cpowell on Mon, 2017-10-16 17:04. Section: Daily Dispatches
1:03p ET Monday, October 16, 2017
Dear Friend of GATA and Gold:

Gold researcher Ronan Manly today wonders whether in coming months China will let Russia overtake it in officially disclosed gold reserves. Manly acknowledges that the gold reserves of both countries probably exceed what they report. Manly’s commentary is headlined “Neck and Neck: Russian and Chinese Official Gold Reserves” and it’s posted at Bullion Star here:
https://www.bullionstar.com/blogs/ronan-manly/neck-neck-russian-chinese-…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

end


Your early TUESDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/9 AM EST

 
 i) Chinese yuan vs USA dollar/CLOSED DOWNAT 6.6210/shanghai bourse CLOSED DOWN AT 6.43POINTS .19%   / HANG SANG CLOSED UP 4.69 POINTS OR .02% 

2. Nikkei closed UP 80,56 POINTS OR .38%     /USA: YEN RISES TO 112.38

3. Europe stocks OPENED IN THE GREEN ( /USA dollar index RISES TO  93.60/Euro DOWNto 1.1750

3b Japan 10 year bond yield: RISES  TO  -+.070/ GOVERNMENT INTERVENTION    !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.44/ 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::  52.03and Brent: 58.20

3f Gold DOWN/Yen DOWN

3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“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 or Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO  +.374%/Italian 10 yr bond yield DOWN to 2.017%  /SPAIN 10 YR BOND YIELD UP TO 1.569%  

3j Greek 10 year bond yield FALLS TO  : 5.497???  

3k Gold at $1285.40silver at:17.08 :9 am est)   SILVER NEXT RESISTANCE LEVEL AT $18.50 

3l USA vs Russian rouble; (Russian rouble UP 20/100 in  roubles/dollar) 57.14

3m oil into the 52 dollar handle for WTI and 58handle 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 GOOD SIZED DEVALUATION SOUTHBOUND 

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 112.44 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  0.9797as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1507 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017 

3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to  +0.374%

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 2.325% early this morning. Thirty year rate  at 2.841% /

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

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

Global Stocks Just Shy Of Record Highs As Dollar, Yields Rise On Taylor Tension 

Global markets traded near all-time highs on Tuesday, with S&P futures, Asian shares and European stocks all flat this morning, while oil continued to gain on Kurdish geopolitical concerns while most industrial metals fell.  The euro extended its recent slide and stocks drifted as Spain’s escalating hard-line response to the Catalonian secession threat fueled concern the crisis may intensify.
Markets initially followed the US reaction to reports of a positive John Taylor (Rule) – Donald Trump meeting, which sent 2Y Treasury yields to their highest since 2008 and pushed up the dollar higher amid speculation the next Federal Reserve chairman will be more hawkish, while TSYs briefly traded through Monday’s session lows because as we showed yesterday, the Taylor Rule would suggest a Fed Funds rate that is far higher than the current.

However, the pop in short-yields was not matched at the long end and the 2-to-10 year U.S. yield curve hit its shallowest in more than a year.
“Fed chairs have often influenced U.S. monetary policy quite considerably in the past. And I would certainly see Taylor as a candidate who would fit in this pattern,” Commerzbank analyst Thu Lan Nguyen said. “That makes one thing clear: should Trump nominate Taylor as Yellen’s successor the U.S. dollar would initially appreciate notably.”
Cable remained volatile through U.K. inflation data and dovish commentary from BOE’s Ramsden but eventually traded flat. In addition to Spain, the EUR/USD continued its recent trend lower, pricing a nine-month QE extension within ECB taper, while bunds and other EGBs continue to grind higher. The South African rand weakened following a Zuma cabinet reshuffle
The common currency declined for a fourth day, the longest streak since May. The Stoxx Europe 600 Index was little changed following mixed trading in Asian stocks earlier, after North Korea warned that a nuclear war could “break out any moment.” Core European equity markets dipped from the open before trading back to unchanged with the tech sector supported by Infineon (2.5%) after positive comments from BofA, leisure sector underperforms after Merlin Entertainments (-19.5%) posts poor earnings forecast. Spain’s IBEX Index fell 0.3 percent to the lowest in a week as Spain cut its economic growth forecast for 2018, acknowledging the impact of an escalating political crisis that led the National Court in Madrid to jail two leading Catalan separatists. As reported on Monday, the Spanish state is turning up the pressure on the separatist leaders as Prime Minister Mariano Rajoy tries to persuade Catalan President Carles Puigdemont to drop his push for independence or see Madrid take direct control of the regionl two Catalan independence leaders were ordered jailed without bail during a sedition trial.
Asia’s regional stock benchmark was little changed, holding near its highest level in 10 years, while a gauge of mining stocks advanced after Rio Tinto Group signaled it’s on track for record annual iron ore shipments. The MSCI Asia Pacific Index added less than 0.1 percent to 167.82 as of 11:40 a.m. in Hong Kong, after extending gains from its highest level since November 2007 on Monday. Materials stocks led gains Tuesday, rising 0.5 percent. Japan’s Topix fluctuated, erasing early gains, after a six-day rally pushed it further into technically overbought levels. It eventually closed 0.2% higher in Tokyo after gaining as much as 0.6%. Australia’s S&P/ASX 200 Index rose 0.7 percent and South Korea’s Kospi index was up 0.2 percent.
“Investors are pausing just a bit while waiting for more directional data points on the global state of affairs before they assess whether current high valuations have firm footing,” said Attila Vajda, managing director of Project Asia Research & Consulting Pte. China’s GDP eport due on October 19 will help determine investment decisions.

Elsewhere, the pound dropped amid speculation the Bank of England will deliver the U.K.’s first rate increase in more than a decade next month after data showed inflation in U.K. accelerated in September, although testimony by Governor Mark Carney befire lawmakers in London appears to have taken away the fizzle. British Prime Minister Theresa May and European Commission chief Jean-Claude Juncker agreed over dinner in Brussels on Monday that the pace of negotiations over Britain’s departure from the European Union should be stepped up. Some market watchers such as JP Morgan are sceptical on sterling’s outlook, recommending investors to buy euros against the British pound as “the overhang of the Brexit issue itself would constrain how much accommodation the BoE would be able to remove.”
One of Monday’s big movers, oil, consolidated a near month-high having spiked after Iraqi forces seized the oil-rich city of Kirkuk from fighters loyal to the country’s semi-autonomous Kurdish Regional Government. After months of rangebound trading during which OPEC-led supply cuts supported crude values but rising U.S. output capped markets, prices have moved up significantly this month. Brent crude oil was 5 cents higher at $57.87 a barrel by 0800 GMT, up almost a third from its mid-year levels. U.S. West Texas Intermediate (WTI) crude CLc1 was nudging up again too at $51.99. There were unconfirmed reports that Kurdish forces had shut around 350,000 barrels per day (bpd) of oil production from major fields. “The 500,000 bpd Kirkuk oilfield cluster is at risk,” Goldman Sachs said in a note to clients.

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Tension between the United States and Iran is also rising, after U.S. President Donald Trump on Friday refused to certify Iran’s compliance over a nuclear deal which removed long-running sanctions. “If there (were new sanctions), we expect that several hundred thousand barrels of Iranian exports would be immediately at risk,” Goldman said. During the previous round of sanctions around 1 million bpd of oil was cut from global markets.
In currencies, the Bloomberg Dollar Spot Index gained 0.1 percent to the highest in more than a week.  The euro dipped 0.3 percent to $1.1764. The British pound dropped to session lows near $1.3226. The Japanese yen climbed less than 0.05 percent to 112.15 per dollar.
Yields were little changed, with the US 10-year up one basis point to 2.31%; Germany’s 10-year yield decreased less than one basis point to 0.37 percent; Britain’s 10-year yield climbed two basis points to 1.336 percent, the biggest increase in almost two weeks.
Gold declined and most emerging-market currencies weakened alongside developing-nation stocks. WTI crude resumed its push above $52 a barrel as tensions in Iraq lingered. Treasuries edged higher as odds rose that John Taylor will replace Janet Yellen at the Fed.
Johnson & Johnson, Goldman Sachs, Harley-Davidson, Morgan Stanley, Omnicom are among companies reporting earnings
Market Snapshot

Market Snapshot
S&P 500 futures little changed at 2,556.10
STOXX Europe 600 down 0.07% to 391.13
VIX Index down 0.6% at 9.85
MSCI Asia down 0.04% to 167.74
MSCI Asia ex Japan unchanged at 553.36
Nikkei up 0.4% to 21,336.12
Topix up 0.2% to 1,723.37
Hang Seng Index up 0.02% to 28,697.49
Shanghai Composite down 0.2% to 3,372.04
Sensex down 0.09% to 32,605.86
Australia S&P/ASX 200 up 0.7% to 5,889.61
Kospi up 0.2% to 2,484.37
German 10Y yield unchanged at 0.372%
Euro down 0.2% to $1.1769
Brent Futures up 0.5% to $58.10/bbl
Italian 10Y yield fell 4.9 bps to 1.766%
Spanish 10Y yield fell 1.6 bps to 1.566%
Brent Futures up 0.5% to $58.10/bbl
WTI crude up +0.5% at $52.15/bbl
Gold spot down 0.5% to $1,289.85
U.S. Dollar Index up 0.1% to 93.41
Top Overnight News from Bloomberg
John Taylor, a Stanford University economist and a candidate for
Federal Reserve Chairman, made a favorable impression on President
Donald Trump after the interview at the White House last week, according
to several people familiar with the matter
North Korea
warned that a nuclear war may “break out any moment” as the U.S. and
South Korea launched one of the largest joint naval dri
Spanish Interior Ministry is preparing first steps it would take if govt opts to trigger clause in constitution allowing for suspension of Catalonia’s self-government, El Pais reported
Spain cut growth forecast for 2018 to 2.3% from 2.6% earlier, acknowledging the impact of an escalating political crisis
BOE is seen keeping rates on hold through 2018 after making first hike in over a decade in November, according to a Bloomberg survey; 76% of the economists see a rise next month, up from 22 percent of respondents in September but they don’t see another increase until 1Q 2019
BOE’s David Ramsden said he wasn’t in MPC majority pushing for a hike in coming months
Last-minute efforts by U.K. PM Theresa May to unblock stalled Brexit talks came up short with EU officials now looking to December to move negotiations on to discussions about the future EU-Britain relationship
Some Qatari banks are becoming less willing to sell dollars to foreign lenders amid a lingering regional standoff with a Saudi- led alliance, according to people familiar with the matter
European car sales fell in September for only the second monthly drop this year as concerns about Brexit among U.K. consumers more than offset gains in France, Italy and Spain
Reserve Bank of Australia said economic conditions at home and abroad “had been more positive since 2016,” according to minutes of this month’s policy meeting where interest rates were left unchanged
U.K. Prime Minister Theresa May and European Commission President Jean-Claude Juncker’s dinner attempt to smooth out Brexit differences yielded little, revealing entrenched previous stances before the summit on Thursday
Industrial production in September and Home Builders Market Index for October will be announced today in the U.S.
Goldman Sachs, Morgan Stanley, IBM, Johnson & Johnson, Harley Davidson
Asia equity markets eventually traded mostly higher following the momentum from their US peers, where all major indices edged to fresh record levels once again. The positive lead provided an early bid tone in ASX 200 (+0.8%) which was also led by materials names as Rio Tinto rose to its highest in around 6 years on strong Q3 iron ore shipments, while Nikkei 225 (+0.4%) was also higher but saw some intraday pressure in which participants took heed of a strengthening JPY and booked profits. Elsewhere, Hang Seng (+0.1%) and Shanghai Comp. (+0.1%) were choppy despite a substantial liquidity operation by the PBoC, with participants tentative in the midst of earnings season and ahead of China’s 19th National Congress. Finally, 10yr JGBs were subdued amid a somewhat positive risk tone in Japan and after softer 20yr bond auction results in which the amount sold, b/c and accepted prices all declined from prior. PBoC injected CNY 100bln via 7-day reverse repos and CNY 90bln via 14-day reverse repos. PBoC set CNY mid-point at 6.5883 (Prev. 6.5839) China researcher states that China should tighten its monetary policy and toughen property curbs.
Top Asian news
The Money-Losing Volatility Trade That Hedge Funds Can’t Resist
China Bonds Slump as Zhou’s Optimism on Economy Seen Taking Toll
HNA to Spend $7.6 Billion on Technology in Tourism Industry
Hedge Fund Oasis Joins Asatsu Shareholders Opposing Bain Bid
China’s Stocks, Bonds, Currency Drop in Unison Before Congress
Gym of Choice for Hong Kong Financial Elite Is Said to Seek Sale
Don’t Panic: China’s Deleveraging May Actually Be Good for Bonds
European equity markets trade marginally in the red, the FTSE found a marginal bid following the UK CPI data, recovering from best levels, however, still
behaving as one of the noticeable underperformers across Europe. The CAC continues to trade near session lows,despite strong despite strong earrings from the likes of Danone. An opening markdown for the 10-year German debt future, largely due to reports that the more hawkish-leaning John Taylor put in
an impressive performance when interviewed by President Trump for the role as next Fed chair. The news unsettled US
Treasuries, and especially the short end of the curve where 2 year yields rallied to multi-year peaks alongside a jump in implied
rates per Eurodollar contracts from the turn of next year through to 2019. A strong German ZEW report could add more
pressure, while supply is also due via a Eur4 bn Schatz offering (though dovish ECB forward guidance on rates should
underpin sentiment here, and reiterated by speakers to come). Back to Eurex, the range so far for Bunds has been 162.59-
37.
With a 3% headline print all priced in to the UK CPI data, (and in fact a bit more for many), Gilts have rebounded to a fresh intraday
high of 124.34 (from 124.23 at best pre-data), while Short Stg futures have pared losses to just a tick. Note, comments from BoE’s
Ramsden may also be lending some support to the 10 year bond and 3 month strip as he highlights slack in the economy, no
second round inflation in wages and investment risks from Brexit. Note, however, y/y CPI has hit a 5 year-plus peak and November
tightening remains a better than 50% prospect so any further bounce in debt/STIRs may be contained.
Germany sells EUR 3.22bln vs. Exp. EUR 4bln 0% 2y Schatz Auction b/c 1.3 prev. 1.8 and average yield -0.75 prev. -0.72%,
retention 19.5%.
Top European news
Bunds Unruffled by ECB Taper Prospects Paint a Picture of Calm
Italy Exercises Power Over Strategic Telecom Italia Assets
Lloyds Can’t Shake Troubled Past in Suit Over HBOS Takeover
U.K. Inflation Climbs to 5 1/2-Year High on Food, Transport
Brexit Timeline Pushed Back as May’s Late Push Comes Up Short
Credit Suisse Investor Herro Opposes Push to Break Up Bank
In currencies, Sterling saw choppy trade following the 9.30 data, as the bid coming into the figures saw a marginal retracement. GBP/USD still trades near session highs, likely to look toward 1.33. USD: The greenback firmer by 0.2% following the move higher in US rates amid source reports stating that John Taylor (very hawkish) made a favourable impression on President Trump in regards to the Fed Chair position. The break above 93.32 (38.2% Fib retrace of the October fall) and the subsequent push through 93.40 indicates a bullish trend forming, however 93.50 is capping further gains for now. Meanwhile, the downward trend continues for EUR which ended yesterday’s session on the back foot amid the stronger greenback. Although with little key risk events until the Oct 26th ECB monetary policy decision it is possible that the pair will stay within close proximity to 1.18.
In commodities, US Total shale regions oil production for November is seen upwards of 82,000 bpd at 6.12mln bpd WTI and Brent Crude futures have ground higher through early European trade as WTI trades through   52.00/bbl, with latest news from an IEA head stating that OPEC compliance is currently at 86%.
Looking at the day ahead, the September industrial production print is the most notable release, while September manufacturing production and the import price index readings are also due, along with the October NAHB housing market index print. Onto other events, keep an eye on BoE Governor Carney testifying before the UK Parliament. Away from this, the ECB’s Constancio and Costa is also slated to make comments. Meanwhile EU foreign ministers hold preparatory talks ahead of the summit at the end of the week. Morgan Stanley, Goldman Sachs and IBM results are also due.

end

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed DOWN 6.43 points or .19% /Hang Sang CLOSED UP 4.69 pts or .02% / The Nikkei closed UP 80.56 POINTS OR .38/Australia’s all ordinaires CLOSED UP 0.89%/Chinese yuan (ONSHORE) closed DOWN  at 6.6210/Oil UP to 52.03 dollars per barrel for WTI and 58.12 for Brent. Stocks in Europe OPENED IN THE GREEN .  ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6210. OFFSHORE YUAN CLOSED STRONGER TO THE ONSHORE YUAN AT 6.6179AND //ONSHORE YUAN  WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT PARTICULARLY  HAPPY TODAY.

3a)THAILAND/SOUTH KOREA/NORTH KOREA

NORTH KOREA/USA

The rhetoric between North Korea and the rest of the world continues as the North states that nuclear war could break out at any moment

(courtesy zerohedge)

 North Korea Warns “Nuclear War Could Break Out At Any Moment

Less than a day after South Korean and US naval forces kicked off their latest round of joint military drills, which are slated to run until the end of the week, North Korea’s deputy UN ambassador claimed during a fiery speech at the UN General Assembly that the Korean peninsula “has reached the touch-and-go point and a nuclear war may break out any moment,” the Associated Press reported.
Complaining to the UN General Assembly’s disarmament committee, Kim In Ryong argued that North Korea is the only country in the world that has been subjected to “such an extreme and direct nuclear threat” from the United States since the 1970s, adding that the isolated North has the right to posses nuclear weapons in self-defense.
This latest warning arrives as the US and South Korea are bracing for another North Korean missile test. For weeks now, South Korean intelligence has suspected that its isolated neighbor could use the beginning of China’s National Party Congress, which begins on Thursday, as an opportunity for what would be a bold act of defiance, angering both the US and the North’s primary benefactor and only major ally, China. The North has also been threatening to unveil a new ICBM that intelligence services believe might be capable of striking the west coast.

During his speech, Kim accused the US and South Korea of conducting military exercises involving “nuclear assets” and also mentioned a top-secret plan to stage a “secret operation aimed at the removal of our supreme leadership” developed by US and South Korean intelligence. The plan was exposed after North Korean hackers stole a large cache of military documents from the South.
Boasting about the country’s nuclear capabilities, Kim bragged that the North Korea had completed its “state nuclear force and thus became the full-fledged nuclear power which possesses the delivery means of various ranges, including the atomic bomb, H-bomb and intercontinental ballistic rockets.”

“The entire U.S. mainland is within our firing range and if the U.S. dares to invade our sacred territory even an inch it will not escape our severe punishment in any part of the globe,” he warned.
The dangerous rhetoric comes as Russia – which was recently rumored to be ramping up economic support for the North – reversed course and said it would curtail economic, scientific and other ties with North Korea in line with UN sanctions
Meanwhile, the European Union announced new sanctions on Pyongyang for developing nuclear weapons and ballistic missiles.
US Secretary of State Rex Tillerson said Sunday that diplomatic efforts aimed at resolving the North Korean crisis “will continue until the first bomb drops.” His commitment to diplomacy came despite
President Donald Trump’s tweets several weeks ago that his chief envoy was “wasting his time” trying to negotiate with North Korean leader Kim Jong Un, whom he derisively referred to as “Little Rocket Man.”
A report published by Russian media earlier today claiming that US and North Korean diplomats might be meeting at a conference in Moscow next week was quickly denied by the isolated country’s government, which said it’s not yet ready to begin negotiating with its greatest geopolitical foe.
Kim also reiterated that North Korea considers its missile arsenal “a precious strategic asset that cannot be reversed or bartered for anything.”

“Unless the hostile policy and the nuclear threat of the U.S. is thoroughly eradicated, we will never put our nuclear weapons and ballistic rockets on the negotiating table under any circumstances,” Kim said.
But in an interesting twist, Kim told the disarmament committee that while the Democratic People’s Republic of Korea — North Korea’s official name — would like to see nuclear weapons vanish from the face of the earth, aggressive expansion of nuclear arsenals has left the country no choice but to arm itself.
By accelerating the modernization of its weapons, the US is “reviving a nuclear arms race reminiscent of [the] Cold War era,” Kim said. He also noted that the nuclear weapon states, including the United States, boycotted negotiations for the Treaty on the Prohibition of Nuclear Weapons that was approved in July by 122 countries at the United Nations.

“The DPRK consistently supports the total elimination of nuclear weapons and the efforts for denuclearization of the entire world,” he said.

But as long as the United States rejects the treaty and “constantly threatens and blackmails the DPRK

with nuclear weapons … the DPRK is not in position to accede to the treaty.”

end

b) REPORT ON JAPAN

the Kobe Steel scandal as promised goes nuclear: they have faked data for decades and even had a fraud manual.  The fraud now extends to the main product steel.  The fallout is spreading to  hundreds of companies.

(courtesy zerohedge)

Kobe Steel Scandal Goes Nuclear: Company Faked Data For Decades, Had A “Fraud Manual

Last week we reported that in the latest instance of criminal Japanese corporate malfeasance, Japan’s third-biggest steel producer admitted falsifying data about the quality of steel, aluminum, copper, iron powder and other products it sold to customers across virtually every single industry. The news sent the company’s stock tumbling 43% from levels before the scandal broke, to the lowest price since 2012.

KOBE STEEL TRADING AT 827 YEN ($.70) DOWN FROM 1900 YEN ($1.61)

The downstream impact was quickly felt, with selling hitting names across the global supply chain…
… while the NYT reported that the fallout has the potential to spread to hundreds of companies. As of a week ago, the extent of the problems at Kobe Steel was still unfolding, and prompted\ the Nikkei newspaper to conclude that “the falsification problem has become an issue that could destroy international faith in Japanese manufacturing.”
Well, as of moments ago that tipping point was this much closer, when the same Nikkei reported that some Kobe Steel plants in Japan had been falsifying product quality data for decades, well beyond the roughly 10-year time frame given by the lying steelmaker. According to the Japanese newspaper, “employees involved in the data manipulation used the industry term tokusai to refer to shipping of products that did not meet the standards requested by customers”, the Nikkei source said. Though tokusai usually refers to voluntary acceptance of such products, plants sometimes sent substandard goods without customers’ consent. The word was apparently in use at some plants for 40 to 50 years.
But wait, it gets better.

Not only did the company, having already been caught, lie to shareholders and rule-abiding employees how long this illegal behavior had been going on, but – in a glaring example of corporate idiocy – had effectively enshrined and codified its fraudulent ways, as the cheating procedures eventually became institutionalized in what was essentially a tacit fraud manual, allowing the practice to continue as managers came and went.

Meanwhile, the Nikkei also reports that everyone could have been in on it, as data manipulation may have occurred with the knowledge of plant foremen and quality control managers. Some shipments even came with forged inspection certificates.

Kobe Steel has tapped senior officials in the aluminum and copper business – where most of the misconduct took place – to serve on its board. How far up the chain of command knowledge of the fraud may have extended in the past remains an open question.
According to the latest update, systemic data falsification took place at no less than four Japanese production sites and appears to have affected virtually every product made by the company: the scandal has spread to the manufacturer’s mainstay steel business, with revelations Friday that steel wire was also shipped without inspection or with faked certificates. Meanwhile, the number of affected customers has swelled from around 200 to roughly 500.

One can only imagine the “honesty”, measured in alpha, beta and gamma radiation, if Kobe was also behind the Tepco nuclear disaster, where of course as we learned over the past 6 years, the amount of data fabrication was just as unprecedented. It is almost as if there is something rather rotten with Japan’s entrenched, corporate ways…

But not to worry: in an amusing twist, Kobe Steel has promised it will complete safety inspections for already shipped products in two weeks or so. A report on the causes of the fraud and measures to prevent a recurrence will come out in a month or so; we can’t wait to read the lies in that one. The steelmaker is conducting a groupwide probe that includes interviews with former senior officials. Because if there is anything Kobe will be successful at, it is diligent, honest self-reporting.
Where the company is certainly lying however, is when it told analysts earlier on Monday that “liquidity is not an issue” according to Bloomberg. Judging by the explosion in Kobe Steel CDS in recent days…

… one more gaffe by the scandal-plagued company, and Kobe Steel will be insolvent. As for all those who are considering providing liquidity to this fraud of a company, good luck with lying to yourselves that you will ever see any of that money back.

3. CHINA REPORT

China is building a huge 6 lane highway close to the border with North Korea. Is China planning to deploy its army against North Korea and seize its nuclear weapons.  This could lead to a path for World War iii

(courtesy Mac Slavo/SHFTPlan.com)

Road To World War 3 Unveiled: Is China Planning To Deploy Its Army Against North Korea?

Authored by Mac Slavo via SHTFplan.com,

New photos of a recent highway construction in China could be part of a contingency plan to invade North Korea or amass a huge army on their shared border.

Experts fear this newly uncovered plot could stoke the fires of World War 3, inevitably involving the United States.
According to The Express UK, communist China has traditionally been North Korea’s closest ally, but Kim Jong-un’s continued nuclear and ballistic missile tests have tested Beijing’s patience on the rising tensions worldwide. These new revelations also come as North Korea was spotted transporting 30 Scud missiles from Hwangju, south of the capital Pyongyang, to Nampo, on the Korea Bay coast opposite China.

New photos have emerged and they reveal that the Communist superpower is building a six-lane highway in its desolately populated northeast on route to North Korea.

With most Chinese peasants not able to afford the luxury of a car, the construction of the G1112 Ji’an–Shuangliao Expressway, has led experts to believe it will be used for quick deployment of tanks and troops to its North Korean border.
The photos obtained by Daily Star Online show Chinese construction workers digging tunnels through the mountains and massive cranes constructing bridges over rivers.

Chinese workers construct a six lane highway to North Korea’s border.
Scott Snyder, senior fellow for Korea studies and director of the program on US-Korea policy at the Council on Foreign Relations, told Daily Star Online:

“China’s Jilin province has even budgeted and paid for improvements in road infrastructure inside some parts of North Korea in recent years in order to improve logistical access to the Rason port inside North Korea.”
Dean Cheng, an Asia security expert at the Heritage Foundation, a think tank in Washington, said Beijing would have a ”vast array” of contingency plans involving military options to seize Kim Jong-un’s nuclear weapons. And just last week, a highly respected security think tank warned that the threat of war between China and the US was now real. In the bombshell report, the Rand Corporation said any conflict between North Korea and South Korea and the US would quickly spiral into World War 3.
If it’s decided upon by a nation to “take out” the North Korean dictator, Kim Jong-Un, American and Chinese troops would then rush across the border in a race to take control of the tyrant’s nuclear weapons and missile facilities colliding in a clash between China and the US, effectively spawning WW3. A whopping 85% of North Korea’s nuclear facilities are believed to be located within 62 miles of the Chinese border.
China actually threatened the US with a “real war” last month. The communist nation said that Donald Trump had made a “serious miscalculation over North Korea. Photos uncovered by a North Korean monitoring site suggested China was secretly helping Kim’s nuclear missile program. But there were other confusing and conflicting signs that North Korea may be preparing to fire missiles towards China next week.
It looks like the world is steamrolling its way to a third world war

end

As expected Spain’s constitutional court declares Catalan Referendum null and void

(courtesy zerohedge)

While it will not come as a surprise to anyone following ongoing events in Spain, moments ago the country’s Constitutional Court said on Tuesday the referendum law passed by the Catalan government Sept. 6 to hold a vote on independence was unconstitutional and void, a spokesman said. The court’s full statement can be found here, while the opinion is at this link.
The court had originally suspended the referendum law as it studied its legality, though the Catalan government went ahead with the ballot regardless.

According to the Court, the Catalan legislation, approved by the region on Sept. 6 and suspended by the court the following day, usurped powers of the State to hold referendums. It also violated the principle that the Spanish nation is indissoluble.
In other words, this is the definitive confirmation from Spain that any Catalan separation is not possible, nor legal.
And with Spain having extended the ultimatum given to Catalan leader Puigdemont to definitively clarify his stance on the declaration of independence through Thursday, the separatist leader finds himself increasingly trapped, as a response will either prompt a crackdown by Spain or a blowback from other pro-independence groups inside Catalonia.
Meanwhile, the market appears to already feel more comfortable, with Catalan 2Y yields having fallen sharply from recent highs.

end

May made the mistake that she would pay the EU  when Britain exits the Monetary Union.  That was a fatal mistake as the EU now refuses to budge until the payment is signed in ink.  This will no doubt cause the collapse of negotiations and maybe here government

(courtesy zerohedge)

Theresa May’s Government Fears Imminent Collapse Of Brexit Negotiations

Following Theresa May’s dinner with Jean-Claude Juncker in Brussels, we have a promise that both sides are committed to accelerating Brexit negotiations…except nobody actually believes that.

Apart from the “bear hug” that Juncker gave Britain’s Brexit Secretary, David Davis, as they went their separate ways, there is no evidence that relations are any more cordial, or that any tangible progress was made in breaking the deadlock.
Rather than no progress, however, Bloomberg is reporting that the UK government sees the potential for the negotiations to collapse after this week’s EU Summit. “U.K. Prime Minister Theresa May’s government fears Brexit talks will break down unless the European Union gives ground at a key summit this week, according to a person familiar with her team’s views. Without a clear sign that negotiations will progress to trade and transition arrangements by December at Thursday’s summit of EU leaders, the entire Brexit process will be in danger of collapse.”

Mrs May made a telephone call on Sunday to the one person, Merkel, who could have softened the EU’s stance ahead of the dinner. Consequently, we were not surprised to learn that now “senior British ministers are losing faith in the EU’s willingness to strike a deal, the person said.”
As we’ve said before, it still boils down to money and the EU is not shifting until the two sides can agree on a number.
The growing problem for Mrs May is that she now has little room to maneuver due to the weakness of her own position. The source in Mrs May’s team told Bloomberg “May took a political risk by promising to pay into the EU budget and settle the divorce bill in a speech in Florence, Italy, last month and now needs something in return for before she can make concessions.”
So…the stand-off continues, with the EU contingent staying confident that they have far more to gain at this point.  “German Chancellor Angela Merkel and French President Emmanuel Macron are the two key obstacles to allowing talks to move on trade, according to the first official. Germany has a vested interest in delaying the progress in the Brexit talks because Frankfurt is trying to tempt companies away from London, the person said.”
You can throw in Paris, Amsterdam and Dublin as beneficiaries too…just as long as the deeply embedded structural problems in European banks don’t suddenly flare up again.

by Tyler Durden

5. RUSSIA AND MIDDLE EASTERN AFFAIRS

Iranian Parliamentary speaker states that the USA will regret withdrawing from the nuclear deal

(courtesy zerohedge)

Iranian Parliament Speaker Says US “Will Regret” Withdrawing From Nuclear Deal

Iranian Parliament Speaker Ali Larijani said Monday that the US would face stiff consequences if it withdraws from the JCPA – informally known as the Iran deal.
Speaker of Iran’s parliament Ali Larijani said that Iran “had a developed plan and a certain law,” should the United States withdraw from the agreement on Tehran’s nuclear program, adding that Washington would “regret it,” Sputnik reported.
Larijani made the statement in St. Petersburg where he was taking part in a parliamentary forum.

President Donald Trump elicited cries of protest from the US’s co-signers of the pact, after saying last week that his administration had decided not to certify Iran’s compliance with the deal and would instead leave the final decision up to Congress. The Trump administration has repeatedly insisted that, while Iran is technically complying with the terms of the pact, it is more broadly violating the “spirit” of the agreement by allegedly continuing to fund terrorist groups and developing and testing ballistic missiles.

Trump’s speech, in which he also accused Iran of being a threat to global security, elicited howls of disapproval from the US’s partners in negotiating the deal.
“We encourage the US Administration and Congress to consider the implications to the security of the US and its allies before taking any steps that might undermine the JCPOA, such as re-imposing sanctions on Iran lifted under the agreement,” French President Emmanuel Macron, German Chancellor Angela Merkel and British Prime Minister Theresa May said in a joint statement.
In Brussels, Federica Mogherini, the EU foreign policy chief, said the Iran deal is an international agreement and “it is not up to any single country to terminate it.”
In a statement after Trump’s speech, Russia’s foreign ministry said there was no place in international diplomacy for “threatening” and “aggressive” rhetoric, adding that such methods were doomed to fail.
“It is a hangover from the past, which does not correspond to modern norms of civilised dealings between countries,” the statement said.
“We viewed with regret the decision of the US President not to confirm to Congress that Iran is fulfilling in good faith” the nuclear deal, it added.
During an appearance on CNN’s “State of the Union” on Sunday, Secretary of State Rex Tillerson claimed the US is trying to stay in the Iran nuclear deal while hoping to achieve more from it, days after President Donald Trump threatened to pull the US out of the agreement.
The 2015 deal, reached between Iran and the United States, Britain, France, Germany, Russia and the European Union, saw Tehran curtailing its nuclear program in exchange for the easing of crippling economic sanctions.
In an amusing development, Trump has urged lawmakers to adopt a bill co-sponsored by Senator “Little” Bob Corker (who has recently traded barbs with the president after saying he wouldn’t seek another term in the senate) that would impose so-called “triggers” like Iran continuing its provocative missile launches, or advancing its nuclear-enrichment capabilities to the point to where it could build a nuclear bomb in a year’s time. Any of these actions would result in sanctions immediately being reimposed.
The US’s allies – not to mention President Donald Trump’s political enemies – have insisted that Trump’s decision to throw a wrench in the works of the deal could lead to its collapse, which in turn would result in Iran resuming its nuclear program, reviving the possibility of a future military showdown with a nuclear-armed Iran.

end

ISIS capital Raqqa surrenders

(courtesy zerohedge)

US-Backed Forces Declare Victory Over ISIS In Raqqa

After a US-backed coalition of Kurds, Shiite militias and Iraqi forces pushed ISIS out of Mosul earlier this year, a similar coalition of US-backed Arab and Kurdish fighters – supported by US airstrikes – has declared victory over ISIS in Raqqa, reclaiming the terror group’s de facto capital for the first time since ISIS first rose to prominence in 2014.
Victory was effectively assured as of Tuesday as the last remaining fighters surrendered to the allied forces after four months of fighting. The battle saw thousands of ISIS family members flee, and many locals who claimed they’d joined the group but only served in a civilian capacity had earlier surrendered.
The movement’s reported collapse in Raqqa followed a four-month long battle between the extremists and US-backed Syrian Democratic Forces, a coalition of Kurdish and Arab fighters. In the assault’s final days, hundreds of Islamic State militants surrendered to the SDF, leaving a handful of foreign fighters in the city, according to the Washington Post. According to rights groups, much of the city’s infrastructure is destroyed, and some 270,000 civilians remain in camps in surrounding areas.

A Reuters witness said militia fighters celebrated in the streets, chanting slogans from their vehicles. The fighters and commanders clasped their arms round each other, smiling, in a battle-scarred landscape of rubble and ruined buildings at a public square.
Allied fighters are still checking to see if any foreign fighters remain in the city, and are also working to clear landmines. Victory will officially be declared as soon as the mines are finished being cleared, Reuters reported.
“We do still know there are still IEDs and booby traps in and amongst the areas that ISIS once held, so the SDF will continue to clear deliberately through areas,” said Colonel Ryan Dillon, a spokesman for the coalition.
The flags in the stadium and others waved in the city streets were of the SDF, its strongest militia the Kurdish YPG, and the YPG’s female counterpart, the YPJ. Fighters hauled down the black flag of Islamic State, the last still flying over the city, from the National Hospital near the stadium.
Locals shared horrifying stories with Reuters after the fighting had finished.
Fatima Hussein, a 58-year-old woman, sitting on a pavement smoking a cigarette said she had emerged from her house after being trapped for months by the fighting. Islamic State had killed her son for helping civilians leave the city, she said.

Fighters managed to push the last remaining bastions of ISIS fighters out of a hospital and a stadium in the city. The stadium and hospital had become the last major positions held by Islamic State after the departure of some of the group’s fighters on Sunday, leaving only foreign jihadists to mount a last stand.
The final SDF assault began on Sunday after a group of Syrian jihadists surrendered after striking a deal with tribal elders, leaving only a group of 300 fighters to defend the last positions.
Many of the ISIS fighters who fought until they were killed or captured were foreigners with no local connection, Reuters said. The stadium and hospital became the last major positions held by Islamic State after the departure of some of its fighters on Sunday, leaving only foreign jihadists to mount a last stand.
ISIS had used its de-facto capital as a center for planning and operations for its warfare in the Middle East and its string of attacks overseas. It also imprisoned Western hostages there before killing them in slickly produced films distributed online.
The SDF’s Sunday advance also brought control over a central city roundabout, where Islamic State once displayed the severed heads of its enemies, and which became one of its last lines of defense as the battle progressed.
The offensive has pushed Islamic State from most of northern Syria, while a rival offensive by the Syrian army, backed by Russia, Iran and Shiite militias, has driven the jihadists from the central desert.
On Tuesday, a military media unit run by Lebanon’s Hezbollah group said the Syrian army on whose side Hezbollah fights had pushed into the last Islamic State districts in Deir al-Zor.
The only populated areas still controlled by the jihadist group in Syria are the towns and villages downstream of Deir al-Zor along the Euphrates valley. They are areas that for the past three years Islamic State ran from Raqqa

END

armed conflict is avoided and we do not have an oil conflict as the Iraqi Kurds  are now out of Kirkuk and have returned to the 2003 border

(courtesy zerohedge)

Iraqi Kurd Army Agrees To Return To 2003 Border, Oil Slides

In a dramatic de-escalation of recent hostilities in Iraqi Kurdistan, where in a blitz campaign the Iraqi army was able to recapture Kirkuk , effectively regaining control of the oil-rich region, the Kurdish Peshmerga forces, i.e. the army of the autonomous region of Iraqi Kurdistan told Sky News Arabia that it has agreed to return to the 2003 Iraq border, which if confirmed would be a major concession to Iraq which has been pushing for just this conclusion for the past month.

FOR THE COMPLETE ARTICLE SEE:

http://www.zerohedge.com/news/2017-10-17/iraqi-kurd-army-agrees-return-2003-border-oil-slides?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

6 .GLOBAL ISSUES

USA continues with its protectionist policies as both Canada and Mexico reject the latest USA NAFTA proposals

(courtesy zerohedge)

Mexico, Canada Said To “Firmly Reject” US NAFTA Proposals

It appears that Trump’s attempt to ram through a sweeping NAFTA renegotiation is about to hit its first major roadblock: according to CNBC, top trade negotiators from Canada and Mexico will meet Tuesday with the U.S. Trade Representative, Robert Lighthizer, and firmly reject the U.S. proposals floated in the current round of NAFTA negotiations citing two people briefed on the countries’ positioning.
Still, Canada and Mexico will not walk away from the negotiating table altogether, despite an outright rejection of the U.S. protectionist demands will leave the ball in the U.S.’ court.

Some more details from CNBC:

Talks among staff negotiators from the three countries concluded Monday. A meeting among Canada’s Foreign Minister Chrysita Freeland, Mexico’s Economy Minister Ildefonso Guajardo and Lighthizer will take place Tuesday, followed by a joint statement at 3 p.m. ET.

U.S. lawmakers and business trade groups have aligned themselves with Canada and Mexico in wanting to preserve the deal. It remains to be seen how President Donald Trump, who has repeatedly slammed the 23-year-old trade agreement, will react to the position.

Following the news, both the loonie and the peso slid to lows, as the question of how Trump reacts to this latest snub becomes a key concern for North American trade.

END

THIS IS SUCCESS…NAFTA DISCUSSIONS END IN A DELAY TO 2018..

(COURTESY ZEROHEDGE)

Peso, Loonie Spike After NAFTA Discussions End With “Success” Delay Until 2018

NAFTA negotiators said they “successfully completed” Round 4 of their discussions… adding that talks will be extended past the end-2107 deadline (odd definition of success?). Nevertheless, this seems to have appeased the FX markets as both the peso and loonia are spiking..

*NAFTA NEGOTIATORS SAY THEY SUCCESSFULLY COMPLETED ROUND 4
*NAFTA MINISTERS SAY MEXICO TO HOST ROUND 5 NOVEMBER 17-21
*NAFTA MINISTERS EXTEND PERIOD BETWEEN ROUND 4 AND ROUND 5
*NAFTA MINISTERS SAY NEW PROPOSALS HAVE CREATED CHALLENGES, GAPS
*FREELAND: NAFTA

NAFTA MINISTERS SAY NEW PROPOSALS HAVE CREATED CHALLENGES, GAPS
*FREELAND: NAFTA HAS BEEN GOOD FOR MILLIONS IN ALL THREE NATIONS
*NAFTA  MINISTER STATE MORE ROUNDS TO BE SCHEDULED THROUGH Q1 2018

THE SOLD THEN SOLD OFF…

END

7.OIL ISSUES

8. EMERGING MARKET

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

Euro/USA   1.1750 DOWN.0043/ REACTING TO SPAIN VS CATALONIA/REACTING TO  +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems + USA election:/TRUMP HEALTH CARE DEFEAT//ITALIAN REFERENDUM DEFEAT/AND NOW ECB TAPERING BOND PURCHASES/ /USA FALLING INTEREST RATES AGAIN/HOUSTON FLOODING/EUROPE BOURSES  GREEN /  

USA/JAPAN YEN 1124.4 UP 0.254(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/   

GBP/USA 1.3181 DOWN .0071 (Brexit  March 29/ 2017/ARTICLE 50 SIGNED

THERESA MAY FORMS A NEW GOVERNMENT/STARTS BREXIT TALKS/MAY IN TROUBLE WITH HER OWN PARTY/

USA/CAN 1.2538 UP .0013(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS TUESDAY morning in Europe, the Euro FELL by 43 basis points, trading now ABOVE the important 1.08 level  FALLING to 1.1750; / Last night the Shanghai composite CLOSED DOWN 6.43 POINTS OR .19%      / Hang Sang  CLOSED UP 4.69OR .02%   /AUSTRALIA  CLOSED UP 0.89% / EUROPEAN BOURSES OPENED GREEN

The NIKKEI: this TUESDAY morning CLOSED UP 80,56POINTS OR .36% 

Trading from Europe and Asia:
1. Europe stocks  OPENED GREEN \

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 4.69 POINTS OR .02%  / SHANGHAI CLOSED DOWN 6.43 POINTS OR .19%    /Australia BOURSE CLOSED UP 0.89% /Nikkei (Japan)CLOSED UP 80.56POINTS OR .38%    / INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: 1284.75

silver:$17.05

Early TUESDAY morning USA 10 year bond yield:  2.325% !!! UP 4 IN POINTS from MONDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%. (POLICY FED ERROR)

The 30 yr bond yield  2.841 UP 3 IN BASIS POINTS  from MONDAY night. (POLICY FED ERROR)

USA dollar index early TUESDAY morning: 93.60 UP 29 CENT(S) from YESTERDAY’s close. 

This ends early morning numbers  TUESDAY MORNING

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And now your closing TUESDAY NUMBERS  \4 PM

Portuguese 10 year bond yield: 2.321% DOWN 1 in basis point(s) yield from MONDAY 

JAPANESE BOND YIELD: +.07%  up 1/2  in   basis point yield from MONDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.547% DOWN 4 IN basis point yield from MONDAY 

ITALIAN 10 YR BOND YIELD: 2.000 down 3 POINTS  in basis point yield from MONDAY 

the Italian 10 yr bond yield is trading 46points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.365% down 1 IN  BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR TUESDAY 

Closing currency crosses for TUESDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/12:00 PM

Euro/USA 1.1767 DOWN 26 (Euro DOWN 026Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 112.21 UP 0.32(Yen DOWN 32  basis points/ 

Great Britain/USA 1.3184 DOWN  0.0070( POUND DOWN 70 BASIS POINTS)

USA/Canada 1.2527 UP.0003 Canadian dollar DOWN 3 basis points AS OIL ROSE TO $51.96

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was DOWN 26 to trade at 1.1768

The Yen FELL to 112.21 for a LOSS of 32  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  

The POUND FELL BY 70 basis points, trading at 1.3184/ 

The Canadian dollar FELL by 3 basis points to 1.2527,  WITH WTI OIL RISING TO :  $51.96

The USA/Yuan closed AT 6.6236 
the 10 yr Japanese bond yield closed at +.074% UP 1/2 IN  BASIS POINTS / yield/ 

Your closing 10 yr USA bond yield UP 2  IN basis points from MONDAY at 2.303% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic  USA 30 yr bond yield: 2.806 DOWN 1 in basis points on the day /

Your closing USA dollar index, 93.51  UP 20 CENT(S)  ON THE DAY/500 PM/BREAKS RESISTANCE OF 92.00 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for TUESDAY: 1:00 PM EST

London:  CLOSED DOWN  10.80 POINTS OR 0.14%
German Dax :CLOSED DOWN 8.64 POINTS OR .07%
Paris Cac  CLOSED DOWN 1.51 POINTS OR 0.03% 
Spain IBEX CLOSED UP 35.40POINTS OR 0.35%

Italian MIB: CLOSED DOWN 90.53POINTS OR 0.40% 

The Dow closed UP  40.48 POINTS OR .18%

NASDAQ WAS closed DOWN 0.35 PTS OR .01%  4.00 PM EST

WTI Oil price;   51.96   1:00 pm; 

Brent Oil: 58.13  1:00 EST

USA /RUSSIAN ROUBLE CROSS:  57.33 UP 7/100 ROUBLES/DOLLAR (ROUBLE HIGHER BY 7 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO  +.365%  FOR THE 10 YR BOND  4.PM EST 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 5:00 PM:$51.96

BRENT: $58.13

USA 10 YR BOND YIELD: 2.303%  (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 2.806% 

EURO/USA DOLLAR CROSS:  1.1768 DOWN .0026

USA/JAPANESE YEN:112.21   UP  0.320

USA DOLLAR INDEX: 93.15 UP 6 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3184 : DOWN 70 POINTS FROM LAST NIGHT  

Canadian dollar: 1.2527 DOWN 3 BASIS pts 

German 10 yr bond yield at 5 pm: +0.365%

END

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

TRADING IN GRAPH FORM FOR THE DAY

Stocks

END

Well that about does it for tonight

I HOPE TO DO A COMMENTARY FOR WEDNESDAY NIGHT BUT NOT PROMISING

HARVEY

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