Nov 29/Your typical banker raid with options expiry tomorrow/Gold down $12.80 and silver is down 32 cents/ Russia tells the uSA that if they freeze Russia holdings of gold and cash at the FRBNY, then they will declare that as an act of Financial war

GOLD: $1283.10  DOWN $12.30

Silver: $16.56 DOWN 32 cents

Closing access prices:

Gold $1283.20

silver: $16.53

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: $1298.33 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1295.95

PREMIUM FIRST FIX: $2.35

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SECOND SHANGHAI GOLD FIX: $1300.95

NY GOLD PRICE AT THE EXACT SAME TIME: $1295.80

Premium of Shanghai 2nd fix/NY:$5.15

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LONDON FIRST GOLD FIX: 5:30 am est $1294.85

NY PRICING AT THE EXACT SAME TIME: $1294.60

LONDON SECOND GOLD FIX 10 AM: $1283.85

NY PRICING AT THE EXACT SAME TIME. 1284.10

For comex gold:

NOVEMBER/

 NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT:  0 NOTICE(S) FOR nil OZ.

TOTAL NOTICES SO FAR: 1064 FOR 106,400 OZ (3.309 TONNES)

For silver:

NOVEMBER

0 NOTICE(S) FILED TODAY FOR

NIL OZ/

Total number of notices filed so far this month: 886 for 4,430,000 oz

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Bitcoin: BID $10,850/OFFER $10,890 up $968 (morning) 

BITCOIN : BID $9882 OFFER: $9922 // UP $160 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest FELL BY  A CONSIDERABLE 4813 contracts from 191,084 DOWN TO 186,272 WITH RESPECT TO YESTERDAY’S TRADING  WHICH SAW SILVER FALL 17 CENTS AND NOW WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD CONSIDERABLE LONG COMEX LIQUIDATION.  HOWEVER WE WERE ALSO NOTIFIED THAT WE HAD ANOTHER LARGE NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 3061 DECEMBER EFP’S WERE ISSUED ALONG WITH 1821 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 4882 CONTRACTS.   I GUESS WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED 820 EFP’S FOR SILVER ISSUED.

RESULT: A FAIR SIZED FALL IN OI COMEX WITH THE DROP IN SILVER PRICE OF 17 CENTS. HOWEVER  WE HAD ALL OF OUR COMEX LONGS WHICH EXITED OUT OF THE SILVER COMEX  TRANSFERRED THEIR OI TO LONDON THROUGH THE EFP ROUTE:  FROM THE CME DATA 4882 EFP’S  WERE ISSUED TODAY  FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY GAINED 69 OI CONTRACTS i.e4882 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 4813 OI COMEX CONTRACTS.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.933 BILLION TO BE EXACT or 133% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 0 NOTICE(S) FOR NIL OZ OF SILVER

In gold, the open interest COLLAPSED IN A MUCH GREATER FASHION TO WHICH WE HAVE WITNESSED DURING THE PAST TWO YEARS AS WE APPROACH AN ACTIVE DELIVERY MONTH LIKE THIS ONE, I.E. DECEMBER.  THE TOTAL OI FELL BY 34,986 CONTRACTS DOWN TO 503,810 DESPITE THE RISE IN PRICE OF GOLD ($0.55) WITH RESPECT TO YESTERDAY’S TRADING. (PRELIMINARY NUMBERS WERE DOWN BY 12,000 CONTRACTS SO SOMETHING WENT HORRIBLY WRONG FOR THE CME). HOWEVER  THE TOTAL NUMBER OF GOLD EFP’S ISSUED TODAY  TOTALED ANOTHER 13,058 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 7171 CONTRACTS AND FEB SAW THE ISSUANCE OF 5887 CONTRACTS. ??? (EMERGENCY??)   The new OI for the gold complex rests at 503,810. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE WITNESS THE HUGE NUMBER OF EFP TRANSFERS. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK  TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD.  THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX  HAVE JUST STATED THAT THEY HAVE NO METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER AND ON TOP OF THAT IT IS TAKING A FURTHER 13 WEEKS TO OBTAIN PHYSICAL FROM THE POINT WHEN FORWARDS BECOME DUE. IN ESSENCE WE HAD A NET LOSS OF 21,928 OI CONTRACTS: 34,986 OI CONTRACTS LOST AT THE  COMEX OI  BUT OF THAT TOTAL  13,058 OI CONTRACTS NAVIGATED OVER TO LONDON. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP ISSUANCE.  MY BET IS THAT WITH TOMORROW’S READING WE WILL HAVE A SURPLUS OF 22,000++ OI NAVIGATING TO LONDON.

YESTERDAY, WE HAD 10,304 EFP’S ISSUED.

Result: A HUGE SIZED DECREASE IN OI  WITH THE TINY SIZED RISE IN PRICE IN GOLD YESTERDAY ($0.55). WE  HAD AN LARGE  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 13,058. THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL GOLD AT THE COMEX AND YET WE ARE APPROACHING THE HUGE DELIVERY MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS NO GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES.  IF YOU TAKE INTO ACCOUNT THE 13,058 EFP CONTRACTS ISSUED, WE HAD A NET LOSS OPEN INTEREST OF 21,928 contracts:

13,058 CONTRACTS MOVE TO LONDON AND  34,986 CONTRACTS REMOVED FROM   THE COMEX.

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

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

GLD:

Today, a big change in gold inventory at the GLD/a withdrawal of 2.66 tonnes

Inventory rests tonight: 839.55 tonnes.

SLV

TODAY WE HAD NO CHANGES IN SILVER INVENTORY AT THE SLV:

INVENTORY RESTS AT 317.130 MILLION OZ

end

.

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

1. Today, we had the open interest in silver FELL BY 4813 contracts from 191,085 DOWN  TO 186,272 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE LOSS IN PRICE OF SILVER PRICE (A LOSS OF 17 CENTS ). HOWEVER, OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  3061  PRIVATE EFP’S FOR DECEMBER (WE DO NOT GET A LOOK AT THESE CONTRACTS)  AND 1821 EMERGENCY EFP’S FOR MARCH FOR A TOTAL OF 4882 EFP CONTRACTS.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  WE ARE NOW WITHIN ONE DAY OF FIRST DAY NOTICE AND THIS IS THE SCENE WHERE IN THE PAST WE DID SEE MASSIVE COMEX OI CONTRACTION ALTHOUGH IT WAS MORE PRONOUNCED IN GOLD THAN WITH SILVER.  IT STILL CONTINUES UNABATED AND WE NOW KNOW THE REAL REASON FOR THE CONTRACTION:  THE TRANSFER OF OI TO LONDON. TODAY WE HAD CONSIDERABLE COMEX SILVER COMEX LIQUIDATION. BUT IF WE ADD THE OI LOSS AT THE COMEX (4813 CONTRACTS)   TO THE 4882 OI TRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A NET GAIN OF 69  OPEN INTEREST CONTRACTS,

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 17 CENT FALL IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 4882 EFP’S ISSUED.. TRANSFERRING OUR COMEX LONGS OVER TO LONDON .

(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 UP 4.21 points or .13% /Hang Sang CLOSED DOWN 57.02 pts or 0.19% / The Nikkei closed UP 40.96 POINTS OR 0.49%/Australia’s all ordinaires CLOSED UP 0.48%/Chinese yuan (ONSHORE) closed DOWN at 6.6027/Oil DOWN to 57.79 dollars per barrel for WTI and 63.80 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON.    ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6027. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6039 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS  HAPPY TODAY.(MARKETS STRONG)

 

 

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)North Korea/China/ USA

War-monger Lindsay Graham warns that the USA is headed for war with North Korea is things do not change.  The USA cannot afford to have a madman capable of striking the uSA

 

( zerohedge/Lindsay Graham)

b) REPORT ON JAPAN

 

4. EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

This is big!! Russia seems to have some of its gold at the NYFed  along with USA holdings. The Russian foreign minister has just declared that if the USA were to freeze Russian central bank holdings of gold and/or cash it would be a “declaration of Financial war”. This came out of nowhere!!

 

( zerohedge)

6 .GLOBAL ISSUES

7. OIL ISSUES

i)Looks like Oil is “running out of gas” as it dropped with considerable selling overnight despite Russia and Saudi jawboning that they were going to restrict output

( zerohedge)

ii)Then falls some more as a surprise inventory buildup and another record high production level

 (courtesy zerohedge)

8. EMERGING MARKET

9. PHYSICAL MARKETS

i)Gold trading this morning

 

Crime Scene: 6 billion dollars of notional gold supplied short and yet they have 0 amount of gold to delivery at the comex. Regulators and bullion short bankers are crooks

( zerohedge)

ii)Bitcoin close to $11000 per coin/two commentaries

(courtesy zerohedge)

iii)Funny!! Bloomberg explains fully how to short bitcoin

( Bloomberg/Chris Powell/GATA)

 

iv)My nemesis Jeffrey Christian tells the truth about gold as an escape from USA dollar hegemony

( Kitco,Jeff Christian/GATA)

 

v)Craig Hemke discusses how the bullion banks are defending silver’s 200 day moving average trying to stop speculators advancing the price of silver.

( Craig Hemke/Sprott/GATA)

vi)This should be interesting:  we have 5 banks bidding for Scotia Mocatta. Probably only one of them Goldman knows the true extent of their massive shorting of silver.  Let us see what happens to the bidding when they open the hood and find what is beneath it

( Reuters/GATA)

 

vii)Chris Powell was gracious in assisting me in the drafting of my letters to the CFTC on this extremely important story

( Chris Powell/Harvey Organ)

 

viii)Rob McEwan, former CEO of Goldcorp and now CEO of McEwen Mining is one of the few miners willing to admit to gold/silver market rigging but he just shrugs at it.

( McEwen/GATA)

10. USA stories which will influence the price of gold/silver

i)Trading this morning:

the Clown speaks:  asset valuations are high  (no kidding..bitcoin??) but risk is contained???
( zerohedge)

 

i b)This seems to be hurricane related: pending home sales jump the most in 8 months

( zerohedge)

 

ii)My goodness!! Such fraudulent data:  The estimated Q3 GDP revised up to 3.3%  (with huge reduction in inventories?)

( zerohedge)

iii)The cover-up begins.  Judicial Watch is to receive FBI documents on that famous tarmac meeting of Lynch and former President Bill Clinton

( zerohedge)

 

iv)Very popular Michael Snyder details the destruction in the retail sector of the USA economy.  And it is not just Amazon’s fault.  This real we will see over 6700 stores close. In the last 10 yrs the growth in the uSA economy has been only 1.33%.  Snyder basically is stating that the retail bubble has now burst.

a must read.
( Michael Snyder/Economic Collapse Blog)

 

Let us head over to the comex:

The total gold comex open interest FELL BY A WHOPPING  34,986  CONTRACTS DOWN to an OI level of 503,810 DESPITE THE  TINY SIZED RISE IN THE PRICE OF GOLD ($0.55 GAIN WITH RESPECT TO YESTERDAY’S TRADING).   WE DID  EXPERIENCE A LARGE  GOLD  LIQUIDATION.  WE ALSO HAD ANOTHER LARGE COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED  A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. THE CME REPORTS THAT 7171 EFPS WERE ISSUED FOR DECEMBER AND 5887 EMERGENCY EFP’S WERE ISSUED FOR FEBRUARY FOR A TOTAL OF 13,058 CONTRACTS. THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS.  THE CONSTANT BANKER RAIDS CONTINUE AS THEY TRY TO GET  OUR “MATHEMATICAL PAPER LONGS” IN GOLD TO LIQUIDATE THEIR POSITIONS AT THE COMEX. SO FAR IT HAS NOT SUCCEEDED (AS THEY MORPH INTO LONDON FORWARDS) AND THUS THE RAID TODAY AS THE CROOKS TRY AND EXTRICATE FIAT DOLLARS FROM OUR STUPID LONG OPTION HOLDERS IN BOTH GOLD AND SILVER. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP’S CONTRACTS AFTER A COMEX OI MORPHS INTO AN EFP WHICH WAS THE REASON FOR MY 2ND LETTER TO THE CFTC. LET US SEE IF WE OBTAIN IN EXCESS OF 22,000 EFP’S ISSUED FOR TOMORROW WHICH IN REALITY WOULD CORRESPOND TO THE EXTREME LOSS AT THE COMEX WHICH WE EXPERIENCED TODAY.  YOU CAN IMAGINE THE BOOK WORK THAT THESE CROOKS MUST UNDERGO TRYING TO KEEP EVERYTHING STRAIGHT.

ON A NET BASIS IN OPEN INTEREST WE LOST: 21,928 OI CONTRACTS IN THAT 13,058 LONGS WERE TRANSFERRED AS LONGS TO LONDON AS A FORWARD AND WE LOST  34,986 COMEX CONTRACTS.  NET LOSS: 21,929 contracts 

Result: a HUGE DECREASE IN COMEX OPEN INTEREST WITH THE TINY SIZED GAIN IN THE PRICE OF GOLD ($0.55.)   WE HAD THAT CONSIDERABLE REAL GOLD LIQUIDATION. TOTAL OPEN INTEREST LOSS ON THE TWO EXCHANGES: 21,928 OI CONTRACTS.

.

We have now entered the NON active contract month of NOVEMBER.HERE WE HAD A LOSS OF 0 CONTRACT(S) REMAINING AT  1. We had 0 notices filed YESTERDAY so WE GAINED 0 contracts or NIL additional oz will stand for delivery AT THE COMEX in this non active month of November.

The very big active December contract month saw it’s OI LOSS OF 58,619 contracts DOWN to 32,938.  January saw its open interest GAIN OF 109 contracts UP to 1748. FEBRUARY saw a gain of 23,193 contacts up to 372,093. Interesting enough the preliminary Feb OI registered at 44,000 contracts.  How could they be so wrong????

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

PRELIMINARY VOLUME TODAY ESTIMATED;  407,462

FINAL NUMBERS CONFIRMED FOR FRIDAY:  519,103

comex gold volumes are increasing dramatically

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And now for the wild silver comex results.

Total silver OI FELL  BY 4813 CONTRACTS  FROM 191,085 DOWN TO 186,272 WITH YESTERDAY’S 17 CENT LOSS IN PRICE. HOWEVER WE DID HAVE ANOTHER STRONG 3061 PRIVATE EFP’S ISSUED FOR DECEMBER AND 1821 EMERGENCY EFP’S FOR MARCH BY OUR BANKERS TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.THE TOTAL EFP’S ISSUED: 4882.  IT SURE LOOKS LIKE THE SILVER BOYS HAVE STARTED TO MIGRATE TO LONDON FROM THE START OF DELIVERY MONTH AND CONTINUING RIGHT THROUGH UNTIL FIRST DAY NOTICE JUST LIKE WE ARE WITNESSING TODAY.  USUALLY WE NOTED THAT CONTRACTION IN OI OCCURRED ONLY DURING THE LAST WEEK OF AN UPCOMING ACTIVE DELIVERY MONTH. THIS PROCESS HAS JUST BEGUN IN EARNEST IN SILVER STARTING IN SEPTEMBER.  HOWEVER, IN GOLD, WE HAVE BEEN WITNESSING THIS FOR THE PAST 2 YEARS.  WE HAD CONSIDERABLE  LONG SILVER COMEX LIQUIDATION YET DEMAND FOR PHYSICAL SILVER REMAINS STRONG AS ALL OF OUR LOST COMEX CONTRACTS MIGRATED OVER TO THE PHYSICAL HUB OF OUR PRECIOUS METALS, LONDON. ON A NET BASIS WE GAINED 69 OPEN INTEREST CONTRACTS:  4813 CONTRACTS LEAVE THE COMEX BUT  4882 OI CONTRACTS NAVIGATE OVER TO LONDON.

The new front month of November saw its OI RISE by 0 contract(s) and thus it stands at 2. We had 0 notice(s) served YESTERDAY so we gained 0 contracts or an additional NIL oz will stand in this non active month of November. After November we have the big active delivery month of December and here the OI FELL by 16,283 contracts DOWN to 14,121.   January saw A GAIN OF 51 contracts RISING TO 1707.

We had 0 notice(s) filed for 5,000 oz for the NOV. 2017 contract

INITIAL standings for NOVEMBER

 Nov 29/2017.

Gold Ounces
Withdrawals from Dealers Inventory in oz   nil oz
Withdrawals from Customer Inventory in oz  
 nil oz
Deposits to the Dealer Inventory in oz    nil oz
Deposits to the Customer Inventory, in oz 
nil
oz
HSBC
No of oz served (contracts) today
 
0 notice(s)
NIL OZ
No of oz to be served (notices)
1 contracts
(100 oz)
Total monthly oz gold served (contracts) so far this month
1064 notices
106,400 oz
3.309 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  0 kilobar trans

WE HAD nil DEALER DEPOSIT:
total dealer deposits: nil oz

We had nil dealer withdrawals:
total dealer withdrawals: nil oz

we had 0 customer deposit(s):

 

total customer deposits nil  oz

We had 0 customer withdrawal(s)

 

Total customer withdrawals: nil oz

we had 1 adjustment(s)

Out of HSBC: 150,165.293 oz was adjusted out of the customer account and this landed into the dealer account of HSBC

For NOVEMBER:
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 j.P. Morgan dealer and 0 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 NOVEMBER. contract month, we take the total number of notices filed so far for the month (1064) x 100 oz or 106,400 oz, to which we add the difference between the open interest for the front month of NOV. (1 contracts) minus the number of notices served upon today (0 x 100 oz per contract) equals 106,500 oz, the number of ounces standing in this NON active month of NOV

Thus the INITIAL standings for gold for the NOVEMBER contract month:

No of notices served (1064) x 100 oz or ounces + {(1)OI for the front month minus the number of notices served upon today (0) x 100 oz which equals 106,500 oz standing in this active delivery month of NOVEMBER (3.312 tonnes)

WE GAINED 0 ADDITIONAL CONTRACTS OR NIL OZ OF ADDITIONAL GOLD STANDING FOR METAL AT THE COMEX

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THE COMEX GOLD CONTRACT AT AROUND THE SAME TIME AS LAST YEAR:  (NOV 29) WE HAD 30,773 GOLD CONTRACTS STANDING AND THIS COMPARES TO 32,938 TODAY .

ON FIRST DAY NOTICE FOR DECEMBER,  THE INITIAL  GOLD STANDING:  39.038 TONNES STANDING

BY THE END OF THE MONTH:  FINAL: 29.791 TONNES STOOD FOR COMEX DELIVERY AS THE REMAINDER HAD TRANSFERRED OVER TO LONDON FORWARDS.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Total dealer inventory 663,114/601 or 20.605 tonnes (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 8,914,844.991 or 277.28 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 14 MONTHS 77 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE NOVEMBER DELIVERY MONTH

NOVEMBER INITIAL standings

AND NOW THE NOVEMBER DELIVERY MONTH
 Nov 29/ 2017
Silver Ounces
Withdrawals from Dealers Inventory  nil
Withdrawals from Customer Inventory
 90,152.770 oz
brinks
Scotia
Deposits to the Dealer Inventory
 nil oz
Deposits to the Customer Inventory 
 1,229,722.100 oz
HSBC
Scotia
No of oz served today (contracts)
0 CONTRACT(S)
(NIL,OZ)
No of oz to be served (notices)
2 contract
(10,000 oz)
Total monthly oz silver served (contracts) 886 contracts(4,430,000 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

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 2 customer withdrawal(s):

 

i) Out of Brinks:  30,123.320 oz

ii) out of Scotia: 60,029.400 oz

TOTAL CUSTOMER WITHDRAWAL  90,152.770 oz

We had 2 Customer deposit(s):

i) Into HSBC: 600,372.900 oz

ii) Into Scotia:  629,349.200 oz

***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: 1,229,722.100 oz

we had 1 adjustment(s) and it was a doozy!

i) From HSBC: 5,239,885.770 oz was adjusted out of the customer account and this landed into the dealer account. In the last two days almost 10 million oz has been transferred to its dealer account!

The total number of notices filed today for the NOVEMBER. contract month is represented by 0 contract(s) FOR NIL oz. To calculate the number of silver ounces that will stand for delivery in NOVEMBER., we take the total number of notices filed for the month so far at 886 x 5,000 oz = 4,430,0000 oz to which we add the difference between the open interest for the front month of NOV. (2) and the number of notices served upon today (0 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the NOVEMBER contract month: 886 (notices served so far)x 5000 oz + OI for front month of NOVEMBER(2) -number of notices served upon today (0)x 5000 oz equals 4,440,000 oz of silver standing for the NOVEMBER contract month. This is EXCELLENT for this NON active delivery month of November.

We gained 0 contract(s) or an additional NIL oz will stand for metal in the non active delivery month of November.

AS I MENTIONED ABOVE, WE HAVE BEEN WITNESSING QUEUE JUMPING IN SILVER FROM MAY 1 2017 ONWARD. IT IS NOW COMFORTING TO SEE CONSIDERABLE QUEUE JUMPING OCCURRING CONTINUALLY IN GOLD FOR THE FIRST TIME SINCE RECORDED TIME AT THE GOLD COMEX!!(1974). QUEUE JUMPING CAN ONLY OCCUR ON PHYSICAL METAL SHORTAGE. THE TRANSFER OF EFP’S TO LONDON FURTHER INTENSIFIES THE DEMAND FOR PHYSICAL METAL!!

AT THIS TIME LAST YEAR WE HAD 11,855 NOTICES STANDING FOR DELIVERY FOR SILVER(NOV 29).  THIS YEAR 13,634

ON FIRST DAY NOTICE FOR THE DECEMBER 2016 CONTRACT WE HAD 15.282 MILLION OZ STAND.

THE FINAL STANDING: 19.900 MILLION OZ AS QUEUE JUMPING INTENSIFIED.

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ESTIMATED VOLUME FOR TODAY: 126,452
CONFIRMED VOLUME FOR YESTERDAY: 187,166 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF 187,166 CONTRACTS EQUATES TO 936 MILLION OZ OR 133% OF ANNUAL GLOBAL PRODUCTION OF SILVER

COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION.  THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.

Total dealer silver: 53.418 million
Total number of dealer and customer silver: 234.825 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 2.8 percent to NAV usa funds and Negative 2.6% to NAV for Cdn funds!!!!
Percentage of fund in gold 62.5%
Percentage of fund in silver:37.2%
cash .+.3%( Nov 29/2017)

 

2. Sprott silver fund (PSLV): NAV RISES TO -0.30% (Nov 29 /2017)
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.40% to NAV (Nov 29/2017 )
Note: Sprott silver trust back into NEGATIVE territory at -0.30%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.40%/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)

END

And now the Gold inventory at the GLD

Nov 29/a withdrawal of 2.66 tonnes at the GLD/Inventory rests at 839.55 tonnes

NOV 28/ no change in gold inventory at the GLD/inventory rests at 842.21 tonnes

Nov 27 Strange!! we gold up by $6.40 today, we had a good sized withdrawal of 1.18 tonnes from the GLD. Here is something that is also strange: we have had exactly 1.18 tonnes of gold withdrawn from the comex on 5 separate occasions in the past 30 days..explanation?

Nov 24/no change in gold inventory at the GLD/Inventory rests at 843.09 tonnes

Nov 22/no change in gold inventory at the GLD/Inventory rests at 843.39 tonnes

Nov 21/no change in gold inventory at the GLD/inventory rests at 843.39 tonnes

NOV 20/no change in gold inventory at the GLD/Inventory rests at 843.39 tonnes

Nov 17/no change in gold inventory at the GLD/inventory rests at 843.39 tonnes

Nov 16./NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 843.39 TONNES

Nov 15./no change in gold inventory at the GLD/inventory rests at 843.09 tonnes

NOV 14/a small deposit of .300 tonnes into the GLD inventory/Inventory rests at 843.39 tonnes

Nov 13/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 843.09 TONNES

Nov 10/no change in gold inventory at the GLD/Inventory rests at 843.09 tonnes

Nov 9/no changes in inventory at the GLD/Inventory rests at 843.09 tonnes

NOV 8/ANOTHER HUGE WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD DESPITE GOLD’S RISE TODAY. INVENTORY RESTS AT 843.09

Nov 7/a huge withdrawal of 1.48 tonnes of gold from the GLD/Inventory rests at 844.27 tonnes

NOV 6/ a tiny withdrawal of .29 tonnes to pay for fees etc/inventory rests at 845.75 tonnes

Nov 3/no change in gold inventory at the GLD/Inventory rests at 846.04 tonnes

NOV 2/STRANGE!!! WE HAD ANOTHER WITHDRAWAL OF 3.55 TONNES FROM THE GLD DESPITE GOLD’S RISE OF $6.60 YESTERDAY AND $1.55 TODAY/INVENTORY RESTS AT 846.04 TONNES

Nov 1/a withdrawal of 1.18 tonnes of gold from the GLD/Inventory rests at 849.59 tonnes

OCT 31/no change in gold inventory at the GLD/Inventory rests at 850.77 tonnes

Oct 30/STRANGE WITH GOLD UP THESE PAST TWO TRADING DAYS, THE GLD HAS A WITHDRAWAL OF 1.18 TONNES FROM ITS INVENTORY/INVENTORY RESTS AT 850.77 TONES

Oct 27/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 851.95 TONNES

Oct 26./A WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 851.95 TONNES

Oct 25/NO CHANGE (SO FAR) IN GOLD INVENTORY/INVENTORY RESTS AT 853.13 TONNES

Oct 24./no change in gold inventory at the GLD/inventory rests at 853.13 tonnes

OCT 23./NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 853.13 TONNES

OCT 20/NO CHANGE IN GOLD INVENTORY AT THE GLD/ INVENTORY REMAINS AT 853.13 TONNES

oCT 19/NO CHANGE/853.13 TONNES

Oct 18 /no change in gold inventory at the GLD/ inventory rests at 853.13 tonnes

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Nov 29/2017/ Inventory rests tonight at 839.55 tonnes

*IN LAST 282 TRADING DAYS: 101.40 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 217 TRADING DAYS: A NET 55.88 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.
*FROM FEB 1/2017: A NET 24.77 TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

Nov 29/no changes in silver inventory at the SLV/Inventory rests at 317.130 million oz/strange!! at drop of 32 cents and no change in inventory?

Nov 28/no change in silver inventory at the SLV/Inventory rests at 317.130 million oz.

Nov 27/NO CHANGE IN SILVER INVENTORY DESPITE A ZERO GAIN IN PRICE /QUITE OPPOSITE TO GOLD WHICH SAW 1.18 TONNES OF GOLD WITHDRAWN DESPITE A RISE IN PRICE OF $6.40

Nov 24/A WITHDRAWAL OF 944,000 OZ OF SILVER FROM THE SLV//INVENTORY RESTS AT 317.130 MILLION OZ

Nov 22/no change in silver inventory at the SLV/Inventory rests at 318.074 million oz.

Nov 21/no change in silver inventory at the SLV/inventory rests at 318.074 million oz/

NOV 20/no change in silver inventory at the SLV/inventory rests at 318.074 million oz

Nov 17/no change in silver inventory at the SLV/inventory rests at 318.074 million oz/

Nov 16./NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.074 MILLION OZ/

Nov 15./no change in silver inventory at the SLV/inventory rests at 318.074 tones

NOV 14/no change in silver inventory at the SLV/Inventory rests at 318.074 tonnes

Nov 13/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.074 MILLION OZ

Nov 10/no change in silver inventory at the SLV/Inventory rests at 318.074 million oz/

Nov 9/no change in silver inventory at the SLV/inventory rests at 318.074 million oz.

NOV 8/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.074 MILLION OZ

Nov 7/a huge withdrawal of 944,000 oz from the SLV/inventory rests at 318.074 million oz/

NOV 6/no change in silver inventory at the SLV/Inventory rests at 319.018 million oz/

Nov 3/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS TONIGHT AT 319.018 MILLION OZ.

NOV 2/A TINY LOSS OF 137,000 OZ BUT THAT WAS TO PAY FOR FEES LIKE INSURANCE AND STORAGE/INVENTORY RESTS AT 319.018 MILLION OZ/

Nov 1/STRANGE! WITH SILVER’S HUGE 48 CENT GAIN WE HAD NO GAIN IN INVENTORY AT THE SLV/INVENTORY RESTS AT 319.155 MILLION OZ/

Oct 31/no change in silver inventory at the SLV/Inventory rests at 319.155 million oz

Oct 30/STRANGE!WITH SILVER UP THESE PAST TWO TRADING DAYS, WE HAD A HUGE WITHDRAWAL OF 1.133 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 319.155 MILLION OZ/

Oct 27/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.288 MILLION OZ

Oct 26/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.288 MILLION OZ/

Oct 25/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.288 MILLION OZ

Oct 24/no change in inventory at the SLV/inventory rests at 320.288 million oz/

oCT 23./STRANGE!!WITH SILVER RISING TODAY WE HAD A HUGE WITHDRAWAL OF 1.039 MILLION OZ/inventory rests at 320.288 million oz/

OCT 20NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.327 MILLION OZ

oCT 19/INVENTORY LOWERS TO 321.327 MILLION OZ

Oct 18 no change in silver inventory at the SLV/inventory rest at 322.271 million oz

Nov 29/2017:

Inventory 317.130 million oz

end

6 Month MM GOFO
Indicative gold forward offer rate for a 6 month duration

+ 1.61%
12 Month MM GOFO
+ 1.83%
30 day trend

end

Major gold/silver trading/commentaries for WEDNESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Goldcore:

Own Gold Bullion To “Support National Security” – Russian Central Bank

– We own gold bullion to “support national security” – Russian Central Bank
– Russia warns Washington: Confiscating fx reserves would be “declaration of financial war”
– Russia has quadrupled its gold bullion reserves in decade
– BRICs discussing ‘the possibility of establishing a single (system of) gold trade’
– Russia, China & maybe Saudi Arabia form alliances to unseat petrodollar

– Putin warns state-owned and private companies: be ready for rapid transition to war-time operations
– Russia, China gold-buying, Saudi strategic shift signal petrodollar era ending

Last week Russia’s Central Bank First Deputy Governor Sergei Shvetsov said Russians own gold bullion and their central bank is adding to its gold reserves in order to “beef up national security.”

Yesterday, the Russian Finance Minister Anton Siluanov warned Washington yesterday: “If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism.”

Russia is prepared for the possible toughening of US sanctions. However, if they include the seizure of Russia’s foreign exchange reserves, it would be regarded as a “declaration of a financial war,” the Russian finance minister warned as reported by RT.

This is not the first time, senior Russian officials has declared the importance of Russia’s gold and fx reserves and indeed the economic and political strategy behind the country’s fx diversification and gold buying activities. Putin has frequently signaled his belief in gold including in symbolic photos, as has the head of the Central Bank.

Russian gold bullion reserves have increased in value to $73.7 billion as of Nov. 1 from $60.2 billion at the beginning of the year. In September 34 tons of gold was added to the country’s reserves, pushing the country to sixth place in the global rankings of gold holdings. It now sits one place behind China.

Russia and China have taken a similar approach to reserve management. Both have been working hard to reduce their dependence on (and exposure to) the petrodollar system. Bilateral trade agreements between themselves and others have allowed participants to trade in gold and their own currencies rather than solely the US dollar.

When Shvetsov referred to gold as a strengthener to ‘national security’ he is not directly referring to the obvious – weapons and physical means of defence. He is referring to economic war and the currency wars that the U.S. has played for so long.

The time has come when major oil producing nations and global powerhouses have had enough of the ace card the United States has dangled above them for so long. Russia, China, Turkey, Iran and possibly Saudi Arabia are stepping out of the US dollar’s shadow with little shame.

As unease grows across the Middle East, East Asia as well as between Russia and bordering EU nations, national security is of utmost importance to individual nations, as are economic alliances. When Putin and his banks’ Deputy Governor refer to preparations of national security and war-time operations they mean financial as well as physical.

Russia, China and others are well aware of this and happy to diversify out of the US dollar and into more secure and trustworthy assets, reducing their exposure to greenback-supporting cronies at the same time.

Russia – leading the hunting pack

I would like to note that the ability of any economy to rapidly increase the output of defense products and services when it is needed is one of the most important conditions of the nation’s military security. All strategic and… large enterprises must be ready for this.

Putin, November 22, 2017.

It has been no secret over the last few years that Putin is pushing Russia’s agenda on the international stage. He is demonstrating the country’s lack of passion when it comes to towing the line of the Western agenda, keen to show that the players of the East are worthy competitors.

He is doing this in a multitude of ways whether through forming alliances, the supposed hacking of the US election, posturing during military exercises and particularly Russia’s stocking up of gold reserves alongside allies.

According to the World Gold Council, since 2000, the combined national gold reserves of Turkey, Russia and China have more than quadrupled to more than 4,000 tonnes in 2017.

Whilst the gold bullion reserves of the US, the UK and the Eurozone member states are alleged to be 5 times as large, they have also shrunk in size by 10% since the start of 2000. We say alleged as the U.S. gold reserves have not been audited since the 1950s. So arrogant in the knowledge are the Western allies, that the US dollar and fiat reserves will stand them strong in the years to come.

With a desire to step away from U.S. dollar hegemony and Western kowtowing comes the need to set up new trading agreements and mechanisms.

Deputy Governor Shvestov did not only say that gold was a weapon of war but that the current gold trading system was archaic and irrelevant:

“The traditional system based in London and partially in Swiss cities is becoming less relevant as new trade hubs are emerging, first of all in India, China and South Africa.”

The Deputy explained how Moscow and Beijing have signed a memorandum of intent regarding bilateral gold trading, no doubt this will lead to the launch of new pricing benchmarks.

“We are discussing the possibility to establish a single gold trade [system] both within the BRICS, and at the level of bilateral contacts.”

The news of cooperation between Russia and China is not big news. The Central Bank of Russia now has plans to form a single bilateral gold trade system with the People’s Republic of China in 2018.

What would strengthen this move away from US dollar hegemony? The cooperation of one of the main parties participating in the petrodollar agreement – Saudi Arabia.

Saudi is no longer playing the American tune

One of the overriding reasons for the petrodollar’s longevity is due to an agreement in 1974 between US President Nixon and Saudi King Faisal.

The two leaders agreed that the Arabian Kingdom would accept dollars as payment for its oil exports. At this point the petrodollar-era began.

Now we are on the cusp of something new. In the last six months the world has watched as Crown Prince Mohammed Bin Salman (MBS) has brought in a raft of new changes. Much of these have been introduced under his Vision for 2030 plan, a plan designed to reduce the country’s reliance on oil revenues.

According to economist Brandon Smith, there is an underlying motive here – reduce steps away from the petrodollar.

“… I believe this plan is NOT about ending reliance on oil, but ending reliance on the US dollar. In fact, the plan indicates a move away from the dollar as the world’s petrocurrency and a de-pegging of the riyal from the dollar.”

This plan has already involved strengthening ties to Russia and China, the two countries at the forefront of ending US dollar dominance.

Putin and King Salman – the petrodollar’s worst enemies?

In October Saudi Arabia’s King Salman visited Moscow, something which would have been unimaginable two years ago when Russia intervened in the Syrian conflict.

Today the two countries have a pressing issue that brings them both together – the falling oil price and the need to reduce global dependance on the US dollar.

The upheaval in the US administration has opened a window for Russia to show itself as a global power in the Middle East. Meanwhile Saudi is disappointed with Trump’s progress since his spring visit. There is little reason for the two to work separately towards the same goal.

Since 1960 Saudi Arabia has been able to move markets with a few select words. Not anymore, since last year Putin is now the world’s ‘energy czar’. Putin’s influence has been no more apparent than in recent weeks when Bloomberg declared he had crowned himself ‘OPEC King’.

Since engineering Russia’s pact with the Organization for Petroleum Exporting Countries to curb supplies a year ago, Putin has emerged as the group’s most influential player. As one senior OPEC official put it on condition of anonymity, the Russian leader is now “calling all the shots.”

The Kremlin’s growing sway within the cartel reflects a foreign policy that’s designed to counter U.S. influence across the globe through a wide mix of economic, diplomatic, military and intelligence measures. That strategy, which is undergirded by Russia’s vast natural-resource wealth, appears to be working.

China ‘compels’ Saudi Arabia to trade oil in yuan

China meanwhile is an economic and industrial powerhouse, with arguably as much power over the US dollar as those oil-producing nations. It recently usurped the US as the most oil-hungry nation on earth.

This gives it major bargaining power when it comes to paying for oil. Something with Saudi Arabia must be aware of. China has made its alliance with Russia, another major oil producer, on various fronts. It is now reportedly making its move with Saudi Arabia.

The economist Carl Weinberg says, Saudi Arabia has “to pay attention to this because even as much as one or two years from now, Chinese demand will dwarf U.S. demand…I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them.”

In recent years China has bought less and less oil from Saudi Arabia, which sells a dollar-denominated product, so keen is the PRC to step away from the greenback. This will begin the hurt the nation that is already suffering at the hands of the oil price.

Should Saudi bow to pressure from the Chinese then this will have a major impact on the US dollar:

“Moving oil trade out of dollars into yuan will take right now between $600 billion and $800 billion worth of transactions out of the dollar… (That) means a stronger demand for things in China, whether it’s securities or whether it’s goods and services. It is a growth plus for China and that’s why they want this to happen.” Weinberg.

As already mentioned, China has multiple trade agreements with Russia especially for oil. It has also ensured oil-for-gold is a trade that can take place without the involvement of the greenback. To support this, both countries have been ramping up efforts to acquire and mine physical gold. An asset the Saudis certainly understand.

Prepare for a major change in the global order

Whether you’re looking at North Korea’s latest missile launch, NATO and some of the Baltics preparing for war with Russia or Saudi stirring up tension in the Middle East things are changing and power is shifting.

With this comes a shift in economic and financial power. Whether or not the Russians and Chinese are successful in their usurping of the US dollar one can be sure that there will be disharmony and uncertainty.

All that Putin and Xi are doing is seeking to diversify and reduce their exposure to the most devalued and manipulated fiat currency on the planet. This is no different to the behaviour one should expect from the sensible investor and saver seeking to protect their own assets.

Gold cannot be devalued as fiat currencies can. It cannot be used by governments as a weight on the shoulders of others as we see with the US dollar. Allocated and segregated gold bullion coins and bars cannot be confiscated thanks to the irresponsible actions of a counterparty. It is borderless money that acts as the ultimate reserve and safe haven in a diversified portfolio.

Russia and China have a plan to take charge of their national security and financial future. Diversification and gold are at the centre of these plans, as it should be for anyone seeking personal financial security and seeking to protect themselves from the coming global monetary crisis.

Related reading

Russia Buys 34 Tonnes Of Gold In September

Russia Gold Rush Sees Record Reserves For Putin Era

China, Russia Alliance Deepens Against American Overstretch

Russia and China continue to Buy Gold

News and Commentary

Gold holds steady after N.Korea missile test (Reuters.com)

Gold edges up, near six-week high after Fed chair confirmation (Reuters.com)

Bitcoin Blasts to Record $10,000 as Bubble Warnings Multiply (Bloomberg.com)

Goldman Sachs among bidders for Scotiabank’s precious metals unit (Reuters.com)

London’s house price to salary ratio has hit a record high (CityAM.com)


Source: Silver Seek

Banks Again Defending Silver’s 200-Day Moving Average (SilverSeek.com)

India’s Gold Imports To Be Over 700 tonnes This Year – Up 40% (FirstPost.com)

Gold Jewelry In Demand After Two-Year Slump In China (Gold-Eagle.com)

Gold’s 47-Year Bull Market (Gold-Eagle.com)

Bitcoin – Too Far, Too Fast? (ZeroHedge.com)

Gold Prices (LBMA AM)

29 Nov: USD 1,294.85, GBP 965.70 & EUR 1,092.46 per ounce
28 Nov: USD 1,293.90, GBP 972.75 & EUR 1,088.95 per ounce
27 Nov: USD 1,294.70, GBP 969.73 & EUR 1,084.83 per ounce
24 Nov: USD 1,289.15, GBP 967.89 & EUR 1,086.37 per ounce
23 Nov: USD 1,290.15, GBP 969.93 & EUR 1,089.40 per ounce
22 Nov: USD 1,283.95, GBP 969.25 & EUR 1,092.51 per ounce
21 Nov: USD 1,280.00, GBP 967.04 & EUR 1,090.69 per ounce

Silver Prices (LBMA)

29 Nov: USD 16.90, GBP 12.60 & EUR 14.26 per ounce
28 Nov: USD 17.07, GBP 12.84 & EUR 14.36 per ounce
27 Nov: USD 17.10, GBP 12.81 & EUR 14.32 per ounce
24 Nov: USD 17.05, GBP 12.80 & EUR 14.38 per ounce
23 Nov: USD 17.10, GBP 12.84 & EUR 14.43 per ounce
22 Nov: USD 16.97, GBP 12.81 & EUR 14.44 per ounce
21 Nov: USD 17.00, GBP 12.85 & EUR 14.50 per ounce


Recent Market Updates

– Bitcoin $10,000 – Huge Volatility of Cryptocurrencies and Risky Fiat Making Gold Attractive
– Financial Advice from Dr Wayne Dyer
– Buy Gold As Fed Shows Uncertainty And Concern Over Financial ‘Imbalances’
– Brexit Budget – Grim Outlook As UK Economy Downgraded
– Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
– Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
– Money and Markets Infographic Shows Silver Most Undervalued Asset
– Is New Fed Chief A “Swamp Critter Extraordinaire”?
– Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe
– UK Debt Crisis Is Here – Consumer Spending, Employment and Sterling Fall While Inflation Takes Off
– Protect Your Savings With Gold: ECB Propose End To Deposit Protection
– Internet Shutdowns Show Physical Gold Is Ultimate Protection
– Gold Coins and Bars Saw Demand Rise 17% to 222T in Q3

end

 

Gold trading this morning

 

Crime Scene: 6 billion dollars of notional gold supplied short and yet they have 0 amount of gold to delivery at the comex. Regulators and bullion short bankers are crooks

(courtesy zerohedge)

Gold Slammed On Massive Volume To Key Technical Support On GDP Beat

The better-than-expected second revision for Q3 GDP prompted algos to instantly dump yen and precious metals.

Gold was slammed down top its 100-day moving average on around 45,000 contracts (almost $6 billion notional)

 

The Feb Gold futures contract is finding support at the intersection of the 50- and 100-day moving average for now…

 

Silver is also suffering after being beaten down from its 200DMA (red)…

 

end

 

Bitcoin close to $11000 per coin

(courtesy zerohedge)

Bitcoin Tops $10,100 – Fed’s Powell Says “Cryptocurrencies Just Don’t Matter”

Update: Cryptocurrencies are widely bid tonight with Bitcoin over $10,150, Ether holding $475, and LiteCoin topping $100 for the first time…

*  *  *

Bitcoin has now soared over 20% since Black Friday’s close, topping $10,000 for the first time in history (rising from $9,000 in just 2 days)… now up over 950% year-to-date.

image courtesy of CoinTelegraph

It’s been quite a year….

  • $0000 – $1000: 1789 days
  • $1000- $2000: 1271 days
  • $2000- $3000: 23 days
  • $3000- $4000: 62 days
  • $4000- $5000: 61 days
  • $5000- $6000: 8 days
  • $6000- $7000: 13 days
  • $7000- $8000: 14 days
  • $8000- $9000: 9 days
  • $9000-$10000: 2 days

BITCOIN TOPS $10,000 FOR THE FIRST TIME IN BLOOMBERG PRICING

Up 950% YTD…

Up over $2000 since Thanksgiving…

But for some context, we have seen two other ‘Bitcoin Bubbles’ before… which saw retracements and then roared to new record highs… were each of them “tulip-manias” too?

As CoinTelegraph reports, the year has been filled with major announcements that signal the widespread acceptance and growth of Bitcoin. Extensive coverage by mainstream analysts was followed by huge growth in Bitcoin hedge funds and institutional investors.

Now the launch of regulated futures markets is imminent, and Bitcoin has become the investment du jour of the financial community. Whether they love it or hate it, big bankers can’t keep their mouths shut about Bitcoin.

The attention Bitcoin has garnered from mainstream media has been astounding. Only a year ago, news would spread of a local newspaper mentioning Bitcoin, and the community would be thrilled. Now, major publications mention Bitcoin daily, and no one is surprised. Bitcoin has literally gone viral.

Further, the growth in hedge funds that invest in cryptocurrencies has exploded as well. As early as August, the news that 70 new funds could be starting was a headline. Now, the existence of 120 new or modified crypto related funds barely warrants a head nod.

Another major contributing factor for Bitcoin’s sizeable gains is the reality that Bitcoin futures will soon be traded on major regulated markets.

Two of the world’s largest futures markets, the Chicago Mercantile Exchange (CME) and the Chicago Board of Options Exchange (CBOE), will soon launch Bitcoin futures.

As adoption increases, the network is forced to keep pace. However, Bitcoin has continued to maintain a huge transaction volume as the price has increased. As shown below, the daily transaction volume is now over $2 bln.  

As transactions continue to proliferate, Bitcoin mining has become increasingly profitable as well. Miners today make $1.5 mln in fees alone, not including block rewards. As the market has increased, the mining returns have increased exponentially as well.

All this growth in adoption is not localized either. The entire global community has begun to embrace Bitcoin, from Venezuela to Zimbabwe, and from South Korea to Switzerland. The international transactions numbers have been steadily rising since Bitcoin’s inception.

The numbers are staggering, but what is most encouraging is that the growth in markets has not been geographically localized. A simple perusal of charts from various countries around the world indicates that adoption is not localized, but global, and nearly uniform.

So what happens next?

Coinivore reports that Hong Kong cryptocurrency exchange Gatecoin’s marketing chief Thomas Glucksmann says that Bitcoin’s price is “highly undervalued” even at $10,000 per coin.

In a televised interview with Bloomberg Today, Glucksmann was asked about Bitcoin’s “fair value,” at a time when the price is nearing $10,000 – an incredible unheard of 10x gain since just this year.

When he was asked if it was “impossible” to determine Bitcoin’s fair value, Glucksmann replied:

“I would still argue that it is highly, highly undervalued. If you look at the long-term potential of the technology in the next 10, 20, 30 years, $10,000 is cheap in my opinion,” he said.

While Bitcoin is now starting to be seen in the mainstream as a store of value among retail investors, it remains a peer-to-peer decentralized electronic cryptocurrency, a fact Glucksmann pointed out. “Bitcoin is divisible up to 8 decimal places,” he said.

Finally we levae you with this…

“In the long long run, cryptocurrencies could matter. They just don’t matter today.”

-Fed Chair Nominee Jerome Powell

 

end

 

And now Bitcoin at 11,000 dollars: Bundesbank sees no bubble!! (really??) Stiglitz states that bitcoin should be outlawed.

(courtesy zerohedge)

Bitcoin Tops $11,000 – Bundesbank Sees No Bubble, Stiglitz Says “Should Be Outlawed”

Well that re-escalated quickly…

It’s been quite a year….

  • $0000 – $1000: 1789 days
  • $1000- $2000: 1271 days
  • $2000- $3000: 23 days
  • $3000- $4000: 62 days
  • $4000- $5000: 61 days
  • $5000- $6000: 8 days
  • $6000- $7000: 13 days
  • $7000- $8000: 14 days
  • $8000- $9000: 9 days
  • $9000-$10000: 2 days
  • $10000-$11000: 1 day

Big dip overnight was bought and as US equity markets prepare to open, Bitcoin just topped $11,000…

Ethereum is also surging – above $500 for the first time in history…

Bundesbank’s Buch Says Difficult to Tell If Bitcoin Is a Bubble

“The question we have to ask ourselves is to what extent there is an overvaluation in a certain market segment, and I tend to shy away from calling something a bubble formation because that’s difficult to assess,” Bundesbank Vice President Claudia Buch says at press conference in Frankfurt.

 

“The question that occupies us is whether these trends are strongly financed through credit and money is used to speculate, and as it’s not a very large market segment there is little information at the moment

Doesn’t currently see bitcoin as a financial stability risk for Germany

While some see broader acceptance of the cryptocurrency

BITCOIN to pay freight? A shipowner wrote to me today to say that they accept Bitcoin/ Ethereum saying that using Crypto currencies is actually very easy & safe & quick as each payment takes a few minutes, as opposed to hours or days with the usual bank transfer. Brave new world.

Joseph Stiglitz, Nobel Laureate and Columbia University Professor, says the digital currency “ought to be outlawed.”

end

Late this afternoon, Bitcoin has a flash crash but it is now climbing back to 10,000 dollars

 

(courtesy zerohedge)

BTFD! Bitcoin Back Above $10,000 After Flash-Crashing To $8,500

Tyler Durden's picture

Chaos… Bitcoin bounced back $1500 from the lows, back above $10k…

*  *  *

Update: The crash is continuing with Bitcoin now collapsing below $9000…

Ethereum and Litecoin are also under pressure.

Funny!! Bloomberg explains fully how to short bitcoin

 

(courtesy Bloomberg/Chris Powell/GATA)

 

Bloomberg helpfully explains how to short bitcoin

 Section: 

No need to explain how to short gold, since central banks take care of that just fine as long as news organizations never inquire about it.

* * *

This Is How You Can Short Bitcoin

By Camila Russo
Bloomberg News
Monday, November 27, 2017

Bitcoin’s assault on $10,000 has stirred bears who see fresh evidence of a bubble. There are ways to bet on a crash, but they’re even riskier than trading the cryptocurrency on the way up.

The options to short bitcoin are mostly through unregulated exchanges, and very risky given bitcoin’s volatility. Not to mention it hasn’t exactly been a good year for bitcoin bears given the 10-fold surge in price. But for those daring enough to try, there are ways to bet against bitcoin’s rise.

“All the options to short in common markets are becoming available in the bitcoin market,” said Charles Hayter, co-founder of market tracker CryptoCompare. “There’s pretty good liquidity for shorting bitcoin. The main difference with shorting the Nasdaq for example, is it will be a lot more volatile, so there’s a lot more risk. The rate to borrow will also be a bit higher.”

One of the most popular ways to short bitcoin is through CFDs, a derivative that mirrors the movements of the asset. It’s a contract between the client and the broker, where the buyer and seller of the CFD agree to settle any rise or drop in prices in cash on the contract date. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2017-11-27/calling-a-bitcoin-top…

END

My nemesis Jeffrey Christian tells the truth about gold as an escape from USA dollar hegemony

 

(courtesy Kitco,Jeff Christian/GATA)

 

Russia, China see gold as escape from dollar hegemony, CPM Group’s Christian says

 Section: 

2:08p GMT Tuesday, November 28, 2017

Dear Friend of GATA and Gold:

CPM Group Managing Partner Jeffrey Christian may not be able to acknowledge that his company’s clients, central banks, manipulate the gold market surreptitiously but in an interview yesterday with Daniela Cambone of Kitco News he said Russia, China, and other countries resent the “monetary hegemony that the United States has exercised since World War II” and so are diversifying their foreign exchange away from the dollar into gold in anticipation of changes in the world financial system.

Christian’s interview with Kitco News five minutes long, headlined “Gold Is Russian Answer to U.S. Dollar Dominance — CPM Group,” and is posted here:

http://www.kitco.com/news/2017-11-27/Gold-Is-Russian-Answer-To-U-S-Dolla…

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

END

 

Craig Hemke discusses how the bullion banks are defending silver’s 200 day moving average trying to stop speculators advancing the price of silver.

 

(courtesy Craig Hemke/Sprott/GATA)

 

 

(courtesy Reuters/GATA)


Your early WEDNESDAY 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 DOWN AT 6.6027/shanghai bourse CLOSED UP AT 4.21 POINTS .13% / HANG SANG CLOSED DOWN 57.02 POINTS OR 0.19%
2. Nikkei closed UP 40.96 POINTS OR 0.49% /USA: YEN FALLS TO 111.61

3. Europe stocks OPENED GREEN EXCEPT LONDON  /USA dollar index FALLS TO 93.24/Euro FALLS TO 1.1847

3b Japan 10 year bond yield: FALLS TO . +.03/ GOVERNMENT INTERVENTION !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111.61/ 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:: 57.79  and Brent: 63.80

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 10yr bund RISES TO +.360%/Italian 10 yr bond yield DOWN to 1.761% /SPAIN 10 YR BOND YIELD DOWN TO 1.457%

3j Greek 10 year bond yield FALLS TO : 5.372???

3k Gold at $1294.25 silver at:16.86: 6 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 19/100 in roubles/dollar) 58.30

3m oil into the 57 dollar handle for WTI and 63 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. 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 SIZED DEVALUATION SOUTHBOUND

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 111.61 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 0.9843 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1662 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 RISING to +0.360%

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 2.343% early this morning. Thirty year rate at 2.781% /

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

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

US Futures, World Stocks, Bitcoin All Hit Record Highs

 

US equity futures continued their push higher into record territory overnight (ES +0.1%), and the VIX is 1.5% lower and back under 10, after yesterday’s blistering surge in US stocks which jumped 1%, the most since Sept. 11, following Powell’s deregulation promise, ahead of today’s 2nd estimate of U.S. Q3 GDP which is expected to be revised up. U.S. Senate Budget Committee sent the tax bull to the full chamber to vote, and on Wednesday Senators are expected to vote to begin debating the bill.  It wasn’t just the S&P: MSCI’s all-country world index was at yet another record peak after all four major Wall Street indexes notched up new highs on Tuesday. Finally, completing the trifecta of records, and the biggest mover of the overnight session by far, was bitcoin which topped $10,000 in a buying frenzy which saw it go from $9,000 to $10,000 in one day, and which is on its way to rising above $11,000 just hours later.

In macro, the dollar steadies as interbank traders and hedge funds fade its rally this week; today’s major event will be testimony by outgoing Fed chair Janet Yellen after Powell said there is no sign of an overheating economy; the euro has rallied on strong German regional inflation while pound surges on Brexit bill deal news; yields on 10-year gilts climb amid broad bond weakness; stocks rise while commodities trade mixed.

In Asia, equity markets were mixed for a bulk of the session as the early euphoria from the rally in US somewhat petered out as China woes persisted (recovered in the latter stages of trade). ASX 200 (+0.5%) and Nikkei 225 (+0.5%) traded higher. Korea’s KOSPI was cautious following the missile launch from North Korea, while Shanghai Comp. (+0.1%) and Hang Seng (+-0.2%) initially remained dampened on continued deleveraging and regulatory concerns before paring losses into the latter stages of trade. Notably, China’s PPT emerged again with Chinese stock markets rallied in late trade, with the CSI 300 Index of mainly large-cap stocks paring a drop of as much as 1.3% to close 0.1% lower. The Shanghai Composite Index rose 0.1%, swinging up from a 0.8% loss, with property and materials companies among the biggest gainers on the mainland. The Shanghai Stock Exchange Property Index surged 3.8%, the most since August 2016. The Shenzhen Composite Index was little changed, after a 1.2% decline, while the ChiNext gauge retreated 0.4%, paring a 1.5% loss. In Hong Kong, the Hang Seng Index was little changed as of 3 p.m. local time, while the Hang Seng China Enterprises Index fell 0.3%Stocks in Europe gained, following equities from the U.S. to Asia higher as optimism over U.S. tax reform and euro-area economic growth overshadowed concerns about North Korea’s latest missile launch. The Stoxx 600 gained 0.8%, reaching a one-week high and testing its 50-DMA. Germany’s DAX, France’s CAC, Milan and Madrid were all up between 0.5 and 0.7% and MSCI’s all-country world index was at yet another record peak after all four major Wall Street indexes notched up new highs on Tuesday. “It seems to me markets are still trading on the theory that the glass is half full,” said fund manager Hermes’ chief economist Neil Williams.  

Meanwhile the FTSE 100 fell 0.5%. The UK stock index typically has an inverse relationship with the pound as its members get 3/4 of their revenues from outside the country. As a reminder, the British pound surged on Tuesday after media reports that the UK cleared a major Brexit hurdle.

“Today’s gains will be vulnerable, and the market will keep a very close eye on anything about North Korea. There’s serious risk of escalation, and it could offset any positive news on the U.S. tax bill,” Benjamin Philippe, fund manager at Degroof Petercam Gestion, says by phone.

Some analysts, however, did warn of the risks of unintended consequences if the package was passed. “Tax cuts will mainly boost the demand side of the economy at a time when the economy has little spare capacity,” said Jeremy Lawson, chief economist at Standard Life Investments. “For that reason, the package will primarily bring forward activity with most of the stimulus eventually offset by the Federal Reserve lifting interest rates more quickly.”

Meanwhile, in the U.K., price action was driven in reaction to the news that a Brexit divorce payment had been agreed upon, with gilts dropping and sterling jumping to a two-month high as investors brought forward their expectations for the next interest-rate increase by the BoE to September 2018 after Brexit negotiators agreed to an outline divorce deal. The FTSE 100 stock index fell.

It was a busy geopolitical session, with North Korean leader Kim Jong Un saying his regime completed its nuclear program after firing a missile that put the entire U.S. in range. The launch shattered a two-month period of relative quiet in its first provocation since U.S. President Donald Trump’s decision this month to label the country a state sponsor of terrorism. Trump responded that “we will take care of that situation.”

North Korea said its missile program will not threaten any country as long as North Korea’s sovereign gains are not infringed, and confirmed it fired a new type of ICBM named Hwasong-15 which was ordered by leader Kim, adds launch was successful and could reach all of mainland US. President Trump and Japanese PM Abe agreed to strengthen deterrence capability against North Korea, also agreeing that China needs to play a greater role regarding North Korea. Additionally, South Korean President Moon said South Korea will strengthen its capabilities against North Korean provocation, while urging North Korea to stop reckless provocation and come to path of dialogue.

Meanwhile, back in the US, the Senate tax bill is headed for a marathon debate this week after the budget committee voted Tuesday along party lines to send the Republican plan to the floor. Republican holdouts, Bob Corker of Tennessee and Ron Johnson of Wisconsin, dropped their objections shortly before the vote.

Following yesterday’s confirmation hearing testimony by Fed chairman nominee Powell, who said the case for a December rate hike “is coming together” and suggested that Dodd Frank would be rolled back as a new wave of deregulation hits the market, today it’s Janet Yellen’s turn to speak on the Hill.

Euro zone government bond yields edged higher meanwhile as the first instalments of German state inflation data pointed to another uptick for Europe’s largest economy, which should bolster the ECB’s move to wind down its stimulus. “In recent months we have seen core inflation dropping, and that has been identified by the ECB as a key measure,” said ING strategist Martin van Vliet. It all helped the euro reassert its recent dominance over the dollar. The euro climbed up to $1.1870 and against a basket of currencies the dollar was down 0.2 percent at 93.075 .DXY and not far off a two-month trough touched on Monday. The dollar was steadier against the yen at 111.54 yen and away from a 10-week low of 110.85, while the pounds jump on a trade-weighted basis was 1.4 percent, its best since April.

In other rates markets, the yield on 10-year Treasuries gained one basis point to 2.34%, Germany’s 10-year Bunds rose two basis points to 0.34%, the biggest increase in almost three weeks, while     Britain’s 10-year yield increased six basis points to 1.253 percent, the highest in more than two weeks on the largest increase in almost three weeks.

Elsewhere, crude oil fell for a third day as U.S. inventories expanded before OPEC meets to decide on prolonging supply cuts past the end of March. Industrial metals extended a slide.

Markets Snapshot

  • E-Mini futures on Dow Jones 0.26% higher
  • E-Mini futures on S&P 500 0.08% higher  to 2,628
  • STOXX Europe 600 up 0.6% to 389.49
  • MSCI Asia up 0.3% to 172.42
  • MSCI Asia ex Japan up 0.05% to 564.05
  • Nikkei up 0.5% to 22,597.20
  • Topix up 0.8% to 1,786.15
  • Hang Seng Index down 0.2% to 29,623.83
  • Shanghai Composite up 0.1% to 3,337.86
  • Sensex up 0.03% to 33,627.88
  • Australia S&P/ASX 200 up 0.5% to 6,011.12
  • Kospi down 0.05% to 2,512.90
  • German 10Y yield rose 2.9 bps to 0.368%
  • Euro up 0.3% to $1.1871
  • Brent Futures down 0.6% to $63.20/bbl
  • Italian 10Y yield fell 0.5 bps to 1.514%
  • Spanish 10Y yield rose 0.7 bps to 1.467%
  • Brent Futures down 0.6% to $63.20/bbl
  • Gold spot up 0.06% to $1,294.81
  • U.S. Dollar Index down 0.2% to 93.08

Top Overnight News

  • A key concession that helped clear Republican tax legislation for a Senate vote as early as Thursday is drawing sharp opposition from conservative groups and some lawmakers, signaling that GOP leaders still face challenges in achieving a major legislative victory before year’s end
  • U.K. and the European Union negotiators reached an outline deal on the Brexit divorce bill, clearing a hurdle in negotiations and ramping up pressure to find a compromise on the thorny issue of the Irish border
  • North Korean leader Kim Jong Un claimed his regime’s missile launch showed it can strike the U.S. with a nuclear weapon, signaling a new phase in its standoff with President Donald Trump
  • Bitcoin surpassed $10,000 for the first time and continued higher, taking this year’s price surge to 11-fold even as warnings multiply that the largest digital currency is an asset bubble
  • Prince Miteb bin Abdullah, one of the most senior Saudi royals detained in the kingdom’s corruption crackdown, has been released after reaching a settlement deal believed to exceed the equivalent of $1 billion
  • Bitcoin surpassed $10,000 for the first time, bringing this year’s price surge to more than 10-fold even as warnings multiply that the largest digital currency is an asset bubble
  • Repeated bursts of political skirmishing have left Republican and Democratic panel leaders preparing competing findings of Russian meddling in the U.S. election
  • Not since before the creation of the monetary union in 1999 have growth rates across the more prosperous northern and weaker southern European states been as close as they are now
  • The $11 trillion market for credit derivatives is coming under renewed criticism in Europe because of concerns that one of the region’s riskiest companies is heading for a debt restructuring that could expose shortcomings in default insurance
  • In their 2018 outlooks, Deutsche Bank AG and Morgan Stanley present underweight recommendations on European cyclical stocks, including the technology sector

Asia equity markets were mixed for a bulk of the session as the early euphoria from the rally in US somewhat petered out as China woes persisted (recovered in the latter stages of trade). ASX 200 (+0.5%) and Nikkei 225 (+0.5%) traded higher following the record levels seen in their US counterparts where all major indices posted fresh all-time highs amid strength in financials and after the Senate Budget Committee approved the tax reform plan. Conversely, KOSPI (Unch.) was cautious following the missile launch from North Korea, while Shanghai Comp. (+0.1%) and Hang Seng (+-0.2%) initially remained dampened on continued deleveraging and regulatory concerns before paring losses into the latter stages of trade. Finally, 10yr JGBs were relatively quiet as focus remained on riskier assets, although prices have eked minimal gains with the BoJ in the market for JPY 700bln of JGBs in the belly to super-long end. PBoC injected CNY 160bln via 7-day reverse repos, CNY 70bln via 14-day reverse repos and CNY 10bln via 63-day reverse repos.  PBoC set CNY mid-point at 6.6011 (Prev. 6.5944). CBRC official stated China’s economy still faces relatively significant downward pressure, which could be apparent by early next year.

Top Asian News

  • A 91% Stock Rally, and Now a Unit of Temasek Is Knocking
  • Tencent Delays Unlimited Trial for ’Glorious Mission’ Game
  • Singapore Exchange Aims for Faster Trade Settlement Next Year
  • BOJ’s Nakaso Says Demographics to Stress Nation’s Regional Banks
  • Asia Stocks Track U.S. Gains as Markets Ignore North Korea Test

European stocks off to a good start this morning, aside from the FTSE 100 which has been hampered by the stronger GBP. Sentiment has been lifted by the progress in US tax cut plans, alongside a potential breakthrough in Brexit talks. In terms of sector specifics, financial names outperform, most likely driven by the pick-up in yields; led by the UK. Elsewhere, LSE (-2.25%) trade lower in the wake of reports that Xavier Rolet has finally settled the Co.’s board room battle by stepping down from his position as CEO. It’s been far more measured, and Eurex led this time, but bonds have witnessed more selling and Bunds enough to register a fresh low at 162.71, closer to a downside target on some intraday or short term charts around 162.61. The apparent early release of prelim German CPI, at 1.8% y/y vs 1.7% expected, may have provided some fundamental impetus for bears, despite the figures being pulled and the bias firmer than consensus anyway based on state data,  but in truth this leg down in bonds seems more overarching and part of a general shift in sentiment due to what appears to be positive outcomes, or at least progressive developments regarding several uncertain issues – namely Brexit negotiations, US tax reforms and the OPEC/nonOPEC deal extension. Conversely, fixed may glean a degree of underlying support on month end factors and balance sheet/portfolio positioning needs. Core EU benchmarks now some 10 ticks off worst levels, US Treasuries flat to a tad softer at the longer end of the curve.

Top European News

  • Sweden’s Economy Barrels Ahead as Housing-Market Anxiety Grows
  • Legal AI Gains Traction as U.K. Startup Targets U.S.
  • U.K. Consumer-Credit Growth Underlines BOE Bank Capital Action
  • East Europe’s Powerhouse Flees Balkan Woes for Western Calm
  • Bayer CEO Says Optimistic Monsanto Deal to Close Early 2018

European stocks off to a good start this morning, aside from the FTSE 100 which has been hampered by the stronger GBP. Sentiment has been lifted by the progress in US tax cut plans, alongside a potential breakthrough in Brexit talks. In terms of sector specifics, financial names outperform, most likely driven by the pick-up in yields; led by the UK. Elsewhere, LSE (-2.25%) trade lower in the wake of reports that Xavier Rolet has finally settled the Co.’s board room battle by stepping down from his position as CEO. It’s been far more measured, and Eurex led this time, but bonds have witnessed more selling and Bunds enough to register a fresh low at 162.71, closer to a downside target on some intraday or short term charts around 162.61. The apparent early release of prelim German CPI, at 1.8% y/y vs 1.7% expected, may have provided some fundamental impetus for bears, despite the figures being pulled and the bias firmer than consensus anyway based on state data,  but in truth this leg down in bonds seems more overarching and part of a general shift in sentiment due to what appears to be positive outcomes, or at least progressive developments regarding several uncertain issues – namely Brexit negotiations, US tax reforms and the OPEC/nonOPEC deal extension. Conversely, fixed may glean a degree of underlying support on month end factors and balance sheet/portfolio positioning needs. Core EU benchmarks now some 10 ticks off worst levels, US Treasuries flat to a tad softer at the longer end of the curve.

In FX, GBP/USD has continued to rally on reports (unconfirmed) that the UK and EU have reached a divorce settlement deal, in principle, with a EUR 60bln figure touted and payment terms said to be staggered. Cable has cleared the 1.3400 marker and is testing key fibo resistance in the 1.3415-20 area with stops said to be in place on a sustained break and little else on the technical front preventing further gains towards the next big/psychological figure. EUR/GBP back down in the low 0.8800 area despite a relatively firm single currency vs other majors. EUR Holding above key chart support vs the USD around 1.1813 despite positive news on the US tax reform bill with notable data from the session thusfar including Y/Y and M/M pick-ups in regional German CPIs. In terms of the boarder USD, the DXY is maintaining recovery gains just over the 93.300 level on Senate Budget Committee approval of the Reps tax proposal, which is expected to be put to the floor tomorrow, and Fed chair-in-waiting Powell  signalling his backing for another rate hike.

In commodities, crude futures slightly weaker and somewhat unfazed by source reports that OPEC and Non-OPEC members have agreed a 9-month extension to output cuts, given that expectations had been for an agreement to this effect. Furthermore, some commentators continue to highlight that an extension to output cuts could be by less than the touted 9 months if negotiations prove to be difficult. API crude report showed an unexpected build in the headline figure. In metals markets, gold prices have meandered alongside an uneventful greenback and copper languished from yesterday’s slump amid continued concerns regarding its largest consumer China. US API weekly crude stocks (20 Nov, w/e) 1.821M (Prev. -6.356M). Russia are not reluctant to extend production cuts to the end of next year, according to Oman.

Looking at the day ahead, the main focus today will be Fed Chair Yellen’s testimony before the congressional Joint Economic Committee in Washington in the afternoon. Will she speak a little freer now her tenor is nearly over? As a team player that might a stretch too far. Also worth noting is a scheduled speech from the Fed’s Williams. Datawise in Europe the big focus will be on the flash November CPI report in Germany. In the US we’ll get the second reading of Q3 GDP and Core PCE. Also due out is Q3 GDP in France, October money and credit aggregates for the UK, November confidence indicators for the Euro area and October pending home sales for the US. The Fed’s Beige Book will also be out in the evening.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 0.1%
  • 8:30am: GDP Annualized QoQ, est. 3.2%, prior 3.0%; Personal Consumption, est. 2.5%, prior 2.4%; GDP Price Index, est. 2.2%, prior 2.2%; Core PCE QoQ, est. 1.3%, prior 1.3%
  • 10am: Pending Home Sales MoM, est. 1.0%, prior 0.0%; NSA YoY, est. 3.0%, prior -5.4%
  • 2pm: U.S. Federal Reserve Releases Beige Book
  • 8:30am: Fed’s Dudley speaks About U.S. Economy
  • 10am: Yellen Appears before Joint Economic Committee of Congress
  • 1:50pm: Fed’s Williams Speaks at Economic Forecast Luncheon in Phoenix
  • 2pm: U.S. Federal Reserve Releases Beige Book
  • 3:30pm: Kashkari hosts a Q&A on Twitter

DB’s Jim Reid concludes the overnight wrap

Although the new Fed Chair Mr Powell’s prepared text for the Senate Banking Committee didn’t seem ground breaking and focused on continuity, investors appear to have liked his remarks on a potential regulatory easing on the financial sector that pushed US financials up +2.58% and the S&P (+0.98%) to a fresh record high. During Q&A, he noted “we will…consider
appropriate ways to ease regulatory burdens while preserving core reforms”.

Further, he added financial regulations are “tough enough” and supports a “rewrite” of the Dodd-Frank Volcker rule and believes we can do that in a way that is “faithful to both the language and the intent”. Notably, he did caveat that he no longer thinks any of the large US banks are “too big to fail”. On rates, he noted the case for a December rate hike is “coming together” and reiterated the expectation that “interest rates will rise somewhat further and the size of our balance sheet to gradually shrink”. Finally, he noted we are looking at an economy where unemployment is going to go below 4%.

Staying in the US, the Senate tax plans appear to be heading in the right direction. The Senate budget committee has voted 12-11 to send the tax bill for debate, which could allow a full Chamber vote as early as this Thursday. President Trump noted “the bill will have lots of adjustments before it ends, but the end result will be very massive”. In the meantime, he has met with some of the  undecided Republican Senators and described the meeting as “somewhat of a lovefest” and that “they want to see it (tax reforms) happen”. Elsewhere, one of the swing voters, Senator Murkowski noted “I’m feeling better today and I’m optimistic about the bill”.

Over in the UK, all seven UK based banks have passed the annual stress tests with no bank ordered to raise additional capital or change their strategies. In the details, the 2017 stress test was based on a scenario more severe than the GFC with assumptions including: a UK and global economic decline, GBPUSD down 27%, house prices down 1/3 and a further £40bln of misconduct charges. However, the test showed that these losses can now be absorbed within banks’ existing capital buffers. Notably, the BOE has raised the counter cyclical capital buffer from 0.5% to 1%, potentially adding £6bln of additional capital to the banks’ minimum requirement going forward. At a press conference later, BOE’s Governor Carney has warned that a minimum 18-24 months of Brexit transition is required and “the combination of a disorderly Brexit, a severe global recession and stressed misconduct tests could result in more severe conditions than in the stress test”. Of the major UK banks, HSBC and RBS rose c1% while Barclays dipped 0.1% and Lloyds fell 1%.

Staying in the UK, the Telegraph has reported that the UK and the EU reached an outline deal on the financial settlement issue late last week. Without citing sources, the paper noted the UK will improve its offer to €45bln-€55bln (from €20bln) depending on how each side calculates the outputs. If true, this should clear one of the key issues that is stalling the Brexit talks, but the issue of Irish borders remain. Although Sterling had originally dipped on the day, this news sent it around 1% higher from the lows.

The US rally only briefly missed a beat when late in the US session, Yonhap reported that North Korea has fired a ballistic missile. It landed into the Sea of Japan with no casualties and reactions from US markets have been muted with President Trump noting “we’ll take care of that situation”. This morning, Asian markets are trading mixed. The Nikkei is up 0.27% and Kospi is broadly flat, but Hang Seng (-0.36%) and China’s CSI 300 (-0.89%) are down as we type. China’s 10y policy bank bond yield has increased by 70bp in the last 2 months. DB’s Zhiwei Zhang take a closer look at the potential causes such as financial sector deleveraging, regulatory tightening and changing inflation expectations.

Now recapping market performance from yesterday in more detail. US equities strengthened to fresh highs, with the S&P 500 (+0.98%), Dow (+1.09%) and Nasdaq (0.49%) all firmly higher. Within the S&P, with the exception of the real estate sector, all other sectors were in the green. European markets were also all higher, with the Stoxx 600 and DAX up c0.6%, while the FTSE outperformed (+1.04%), boosted by Royal Dutch Shell, which rose c4% after restoring its practice of full cash dividends for the first time in more than two years. The VIX rose 1.6% to 10.03.

Government bonds were little changed. The UST 10y yield pared back minor gains to closed flat at 2.329% following broadly stronger US macro data. Elsewhere, core 10y European bond yields were little changed (Bunds & OATs -0.3bp; Gilts flat).

Turning to currencies, the US dollar index and Sterling gained 0.39% and 0.16% respectively, while the Euro fell (-0.49%) for the second consecutive day. In commodities, WTI oil fell 0.64% ahead of tomorrow’s OPEC meeting. Precious metals softened (Gold -0.04%; Silver -1.05%) and other base metals also weakened (Copper -1.08%; Zinc -0.68%; Aluminium -1.55%).

Away from the markets and over in Germany, the upcoming coalition talks between Ms Merkel and SPD may have hit a small obstacle. The acting agriculture minister Mr Schmidt has defied the SPD’s objections and unilaterally voted on Monday in favour of keeping one of the world’s widely used herbicides on EU markets for another five years. The SPD noted Mr Schmidt’s decision was a breach of trust. Ms Merkel was quick into damage control, noting “this was not in accord with the guidance…in the government” and it “is something that can’t be repeated”.

Staying in politics, over in the US, two top democratic leaders have pulled out of a scheduled meeting with President Trump to discuss the federal spending plan to prevent a partial government shutdown post funding expiring on December 8th. House minority leader Nancy Pelosi and Senate minority leader Chuck Schumer skipped the meeting in protest following Trump tweeted “meeting with Chuck and Nancy…problem is they want… I don’t see a deal!” ahead of their meeting. Notably, markets reactions have been fairly muted.

Finally, the l atest OECD semi-annual report suggests global economic growth will strengthen to 3.7% in 2018 before slowing to 3.6% in 2019. The softening from 2018 to 2019 is evident across most countries including US (-0.4ppt to 2.1%), China (-0.2ppt to 6.4%), the Euro area (-0.2ppt to 1.9%) and the UK (-0.1% to 1.1%). OECD’s Chief economist Ms Mann cautioned 2018 may be “the peak of the cycle” and that the “fiscal and monetary space are too limited to weather a financial downdraft”. Elsewhere, the report warned “financial asset prices are inconsistent with expectations for future growth and the policy stance, exacerbating the risks of financial corrections”.

Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the macro data was broadly above expectations. The November conference board consumer confidence reading rose to a fresh 17 year high of 129.5 (vs. 124 expected). In the details, the present situation index rose 1.9pts to 153.9 and the expectations index was up 4.3pts to 113.3. The Richmond Fed manufacturing index also beat at 30 (vs. 14 expected) – the highest since 1993, with sharp improvements seen across the shipments, new orders and employment indices. The September’s Corelogic House price index rose 0.5% mom (vs.0.3% expected), lifting annual growth to 6.2% yoy (vs. 6.04% expected). Elsewhere, the October advanced goods trade deficit was wider than expected at -$68.3bn (vs. -$64.9bln). Exports fell 1.0% mom and imports rose 1.5% mom, leading to annual growth of 5.5% yoy and 7.1% yoy respectively. Finally, October wholesale inventories fell 0.4% mom (vs. +0.4% expected), although the softness was partly due to a 0.2ppt downward revision in the prior month.

In France, the November consumer confidence was above market at 102 (vs. 101 expected), while Germany’s December GfK consumer confidence was in line at 10.7 and just below its recent 16 year high. Finally, the Eurozone’s October M3 money supply was a tad softer at 5.0% yoy (vs. 5.1% expected). After adjusting for sales and securitization, loans to households was steady at 2.7% yoy and  loans to corporates was up 2.9% yoy.

Looking at the day ahead, the main focus today will be Fed Chair Yellen’s testimony before the congressional Joint Economic Committee in Washington in the afternoon. Will she speak a little freer now her tenor is nearly over? As a team player that might a stretch too far. Also worth noting is a scheduled speech from the Fed’s Williams. Datawise in Europe the big focus will be on the flash November CPI report in Germany. In the US we’ll get the second reading of Q3 GDP and Core PCE. Also due out is Q3 GDP in France, October money and credit aggregates for the UK, November confidence indicators for the Euro area and October pending home sales for the US. The Fed’s Beige Book will also be out in the evening.

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 4.21 points or .13% /Hang Sang CLOSED DOWN 57.02 pts or 0.19% / The Nikkei closed UP 40.96 POINTS OR 0.49%/Australia’s all ordinaires CLOSED UP 0.48%/Chinese yuan (ONSHORE) closed DOWN at 6.6027/Oil DOWN to 57.79 dollars per barrel for WTI and 63.80 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON.    ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6027. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6039 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS  HAPPY TODAY.(MARKETS STRONG)

3 a NORTH KOREA/USA

NORTH KOREA/CHINA/USA

 

War-monger Lindsay Graham warns that the USA is headed for war with North Korea is things do not change.  The USA cannot afford to have a madman capable of striking the uSA

 

(courtesy zerohedge/Lindsay Graham)

b) REPORT ON JAPAN

 

c) REPORT ON CHINA

4. EUROPEAN AFFAIRS

5. RUSSIA AND MIDDLE EASTERN AFFAIRS

This is big!! Russia seems to have some of its gold at the NYFed  along with USA holdings. The Russian foreign minister has just declared that if the USA were to freeze Russian central bank holdings of gold and/or cash it would be a “declaration of Financial war”

 

(courtesy zerohedge)

 

Russia Warns Washington: Confiscating Gold Reserves Would Be “Declaration Of Financial War”

In a surprising, and unexpected warning – which seemingly came out of nowhere – Russia’s Finance Minister Anton Siluanov cautioned Washington yesterday that “If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism.”

The comment appears to have been prompted by consideration of escalating US/EU sanctions which could ultimately impact Russia’s offshore held gold and reserves. If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said, although he added that he considers such a scenario unlikely (for now).

After making the point that Russia’s budget is prepared for the possibility of tougher US/EU sanctions, RT reports that Siluanov warned if the west include the seizure of Russia’s foreign exchange reserves, it would be regarded as a “declaration of a financial war.”

According to Siluanov, the budget takes into account the risk of income shortfalls. The budget is based on oil prices at $40 per barrel, which is almost a third lower than the current price.

 

The budget “has a margin of safety in case of restrictions and sanctions.” It also includes losses incurred by a probable ban on investment in Russian government bonds for foreign funds. The US Treasury is currently considering such penalties.

 

“If we did not have a margin of safety, then it would be easy to weaken us. And then, our so-called friends would say – if you want to get help from the International Monetary Fund, you must do this and that,” said Siluanov.

 

If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said. He added that he considers such a scenario unlikely.

As a reminder, in June, Reuters reported that soon after the Crimea reunification with Russia, the Central Bank of Russia allegedly withdrew about $115 billion from the New York FedAfter about two weeks, Russian officials reportedly returned most of the money to its Fed account.

end

Prince Miteb, son of former King Abdullah buys his freedom for a cool ONE BILLION USA DOLLARS

 

(courtesy zerohedge)

 

6 .GLOBAL ISSUES

 

This is very troublesome: We have two plates, one moving northbound and the other southbound.  This may cause a massive earthquake and swallow up New Zealand

 

(courtesy Mac Slavo/SHFTPlan.com)

7.OIL ISSUES

 

Looks like Oil is “running out of gas” as it dropped with considerable selling overnight despite Russia and Saudi jawboning that they were going to restrict output

 

(courtesy zerohedge)

Then falls some more as a surprise inventory buildup and another record high production level
(courtesy zerohedge)

RBOB Fades On Surprise Product Build, New Record High Production

Last night’s API-reported surprise crude build sparked selling that not even Russia/Saudi jawboning could rescue, but DOE data showed the exact opposite with a big crude draw and even bigger gasoline draw. Added to a new record high in US crude production and RBOB is fading and WTI is not rallying.

 

API

  • Crude +1.82mm (-2.95mm exp)
  • Cushing -3.178mm – most since Sept 2009
  • Gasoline -1.529mm (+1.2mm exp)
  • Distillates +2.696mm (+200k exp) – biggest since July

DOE

  • Crude -3.43mm (-2.95mm exp)
  • Cushing -2.914mm – biggest draw since Sept 2009
  • Gasoline +3.63mm (+1.2mm exp) – biggest build since July
  • Distillates  (+200k exp) – biggest buils since Jan

DOE data showed the exact reverse of API with big surprise draw in crude and build in gasoline… Additionally Cushing saw the biggest destocking since Sept 2009 last week…

US crude production rose 24k b/d – to a new record high…

Gasoline exports hit a record high…

 

WTI was lower and RBOB higher heading into the DOE data but the trend reversed after on the surprise bearish product builds…

 

 end

8. EMERGING MARKET

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

Euro/USA 1.1847 DOWN .0002/ REACTING TO MERKEL’S FAILED COALITION/ 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 all GREEN EXCEPT LONDON 

USA/JAPAN YEN 111.61 DOWN 0.018(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 1.3400 UP .0036 (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 1.2829 UP .0016(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS WEDNESDAY morning in Europe, the Euro FELL by 2 basis points, trading now ABOVE the important 1.08 level RISING to 1.1847; / Last night the Shanghai composite CLOSED UP 4.21 POINTS OR .13% / Hang Sang CLOSED DOWN 57.02 POINTS OR 0.19% /AUSTRALIA CLOSED UP 0.48% / EUROPEAN BOURSES OPENED ALL GREEN EXCEPT LONDON 

The NIKKEI: this WEDNESDAY morning CLOSED DOWN 9.75 POINTS OR 0.04%

Trading from Europe and Asia:
1. Europe stocks OPENED ALL GREEN EXCEPT LONDON 

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 57.02 POINTS OR 0.19% / SHANGHAI CLOSED UP 4/21 POINTS OR .13% /Australia BOURSE CLOSED UP 0.48% /Nikkei (Japan)CLOSED UP 40.96 POINTS OR 0.49%

INDIA’S SENSEX IN THE RED

Gold very early morning trading: 1294.80

silver:$16.87

Early WEDNESDAY morning USA 10 year bond yield: 2.343% !!! UP 2 IN POINTS from TUESDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%. (POLICY FED ERROR)

The 30 yr bond yield 2.781 UP 2 IN BASIS POINTS from TUESDAY night. (POLICY FED ERROR)

USA dollar index early WEDNESDAY morning: 93.24 DOWN 3 CENT(S) from TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now your closing WEDNESDAY NUMBERS \1 PM

Portuguese 10 year bond yield: 1.931% UP 1 in basis point(s) yield from TUESDAY

JAPANESE BOND YIELD: +.03% DOWN 1  in basis point yield from TUESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.485% UP 3  IN basis point yield from TUESDAY

ITALIAN 10 YR BOND YIELD: 1.792 UP 1 POINTS in basis point yield from TUESDAY

the Italian 10 yr bond yield is trading 31 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.385% UP  5 IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1856 UP.0008 (Euro UP 8 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 111.77 UP 0.141(Yen UP 14 basis points/

Great Britain/USA 1.3423 UP 0.059( POUND UP 59 BASIS POINTS)

USA/Canada 1.2851 UP  .0034 Canadian dollar DOWN 34 Basis points AS OIL FELL TO $57,39

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was UP 8 to trade at 1.1856

The Yen fell to 111.77 for a GAIN of 14 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 ROSE BY 59 basis points, trading at 1.3423/

The Canadian dollar FELL by 34 basis points to 1.2851 WITH WTI OIL FALLING TO : $57.39

The USA/Yuan closed AT 6.6017
the 10 yr Japanese bond yield closed at +.030% down 1  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield UP 6 IN basis points from TUESDAY at 2.3810% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.822 UP 8  in basis points on the day /

Your closing USA dollar index, 93.15 DOWN 11 CENT(S) ON THE DAY/1.00 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 WEDNESDAY: 1:00 PM EST

London: CLOSED DOWN 67.09 POINTS OR 0.90%
German Dax :CLOSED UP 2.34 POINTS OR 0.02%
Paris Cac CLOSED UP 7.57 POINTS OR 0.14%
Spain IBEX CLOSED UP 123.30 POINTS OR 1.22%

Italian MIB: CLOSED UP 34.17 POINTS OR 0.15%

The Dow closed UP 103.97 POINTS OR 0.44%

NASDAQ WAS closed down 88.01 Points OR 1.27% 4.00 PM EST

WTI Oil price; 57.39 1:00 pm;

Brent Oil: 63.52 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 58.61 UP 19/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 19 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO +.385% FOR THE 10 YR BOND 1.00 PM EST EST

END

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:30 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM:$57.43

BRENT: $63.37

USA 10 YR BOND YIELD: 2.384% (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 2.823%

EURO/USA DOLLAR CROSS: 1.1847 DOWN .0002

USA/JAPANESE YEN:111.92 UP 0.302

USA DOLLAR INDEX: 93.26 down 1 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3409 : UP 46 POINTS FROM LAST NIGHT

Canadian dollar: 1.2863 DOWN 50 BASIS pts

German 10 yr bond yield at 5 pm: +0.385%

END

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

TRADING IN GRAPH FORM FOR THE DAY

Turmoil...

GDP surged above expectations, Matt Lauer fired, Crude carnage, Semis slaughtered, Momo massacred, Nasdaq knackered, Precious metals pummeled, Bond bloodbath, and Bitcoin bounced and trounced… But everyone loves Trannies!

 

Spot the odd one out… (biggest divergence between Transports and Nasdaq since Nov 2009) – Dow and Small Caps closed at record highs…

 

Futures show the moves this week in a little more context…

(NOTE – today was the biggest divergence between The Dow and Nasdaq in over 5 months)

Today was Trannies biggest day since Nov 2011 to a new record high…

 

A look at Nasdaq and Bitcoin suggest some relationship in the collapse – while Nasdaq broke first, at around 1012amET both suddenly plunged together…

 

Is Nasdaq playing catchdown to FX carry?

And bonds?

 

Nasdaq VIX spiked above 16…

 

And Dow VIX spiked today even as Dow rallied…

 

Financials extended Powell-hype gains…

 

Massive rotation from momentum to value today… (biggest momo factor plunge since election)

 

NOTE – Today’s 3.9% dispersoin between Value and Momo is the biggest since the election…

 

Were investors rotating out of Nvidia and into the underlying?

 

FANG Stocks suffered their biggest daily drop since Feb 2016…to one-month lows…

 

The Philly Semi Index crashed today…biggest single-day drop since Brexit (June 2016)

 

…and just happens to have occurred as the index finally cleared the 2000 dotcom peak

 

 

Bonds were whacked today – while Chinese yields fell modestly, German and US 10Y Yields spiked notably (we do note that Alibaba dropped a $7 billion multi-part bond today which may be a factor)

 

All yields are up on the week…

 

10Y yield back at one-month highs…

 

The yield curve steepened most since September…

 

The Dollar whipsawed around today but ended practically unchanged…

 

Copper continued to collapse – dropping to its lowest since October 10th…

 

Crude carnaged (as did RBOB) on ‘sell-the-leaked-news’ from OPEC (Saudi officials were not worried)…

 

Gold and Silver were slammed lower – silver back at its lowest since Oct 6th…

 

Finally, let’s focus on Bitcoin – having broken $11,000 this morning, it surged on to $11,485, before collapsing to $8595.. then bouncing hard to $10,485, before losing $10k again into the US equity market close…

 

And while everyone i talking about the drop in cryptocurrencies – today’s $60 billion drop in FANG market cap is the largest ever…

 

END

 

Trading this morning:

 

the Clown speaks:  asset valuations are high  (no kidding..bitcoin??) but risk is contained???
(courtesy zerohedge)

Dollar Jumps As Yellen Goes Full Bernanke: Warns “Asset Valuations Are High” But Risk Is “Contained”

Yes, departing Fed chair Janet Yellen used the ‘c’ word…

Federal Reserve Chair Janet Yellen, in prepared remarks ahead of what may be her last appearance before Congress as head of the central bank, somewhat gloated at the steadily brightening picture for the U.S. economy she has left behind for Jay Powell (while downplaying the risks of financial instability).

“The economic expansion is increasingly broad based across sectors as well as across much of the global economy,” Yellen said in prepared testimony to the bicameral Joint Economic Committee on Wednesday in Washington.

 

“I expect that, with gradual adjustments in the stance of monetary policy, the economy will continue to expand and the job market will strengthen somewhat further, supporting faster growth in wages and incomes.”

In her statement, she echoed the same phrasing as Powell used yesterday, that she expects the Fed to continue gradually raising interest rates and trimming its balance sheet.

However, with stocks trading at record highs, Yellen downplayed the threat of financial instability, dropping the ‘c’ word in a completely reassuring Bernanke-esque manner…

“Although asset valuations are high by historical standards, overall vulnerabilities in the financial sector appear moderate, as the banking system is well capitalized and broad measures of leverage and credit growth remain contained,” she said.

While admitting she had no idea still if low inflation was transitory, Yellen urged Congress to address the two issues undermining the potential for faster economic growth in the U.S.: the decline in the size of the U.S. workforce relative to population, and disappointing levels of productivity growth.

“Congress might consider policies that encourage business investment and capital formation, improve the nation’s infrastructure, raise the quality of our educational system, and support innovation and the adoption of new technologies,’’ Yellen said.

Full prepared remarks below (hearing is set to start at 10amET):

Chairman Tiberi, Ranking Member Heinrich, and members of the Committee, I appreciate the opportunity to testify before you today. I will discuss the current economic outlook and monetary policy.

The Economic Outlook

The U.S. economy has strengthened further this year. Smoothing through the volatility caused by the recent hurricanes, job gains averaged about 170,000 per month from January through October, a somewhat slower pace than last year but still above the range that we estimate will be consistent with absorbing new entrants to the labor force in coming years. With the job gains this year, 17 million more Americans are employed now than eight years ago. Meanwhile, the unemployment rate, which stood at 4.1 percent in October, has fallen 0.6 percentage point since the turn of the year and is nearly 6 percentage points below its peak in 2010. In addition, the labor force participation rate has changed little, on net, in recent years, which is another indication of improving conditions in the labor market, given the downward pressure on the participation rate associated with an aging population. However, despite these labor market gains, wage growth has remained relatively modest. Unemployment rates for African Americans and Hispanics, which tend to be more sensitive to overall economic conditions than those for whites, have moved down, on net, over the past year and are now near levels last seen before the recession. That said, it remains the case that unemployment rates for these minority groups are noticeably higher than for the nation overall.

Meanwhile, economic growth appears to have stepped up from its subdued pace early in the year. After having risen at an annual rate of just 1-1/4 percent in the first quarter, U.S. inflation-adjusted gross domestic product (GDP) is currently estimated to have increased at a 3 percent pace in both the second and third quarters despite the disruptions to economic activity in the third quarter caused by the recent hurricanes. Moreover, the economic expansion is increasingly broad based across sectors as well as across much of the global economy. I expect that, with gradual adjustments in the stance of monetary policy, the economy will continue to expand and the job market will strengthen somewhat further, supporting faster growth in wages and incomes. Although asset valuations are high by historical standards, overall vulnerabilities in the financial sector appear moderate, as the banking system is well capitalized and broad measures of leverage and credit growth remain contained.

Even with a step-up in growth of economic activity and a stronger labor market, inflation has continued to run below the 2 percent rate that the Federal Open Market Committee (FOMC) judges most consistent with our congressional mandate to foster both maximum employment and price stability. Increases in gasoline prices in the aftermath of the hurricanes temporarily pushed up measures of overall consumer price inflation, but inflation for items other than food and energy has remained surprisingly subdued. The total price index for personal consumption expenditures increased 1.6 percent over the 12 months ending in September, while the core price index, which excludes energy and food prices, rose just 1.3 percent over the same period, about 1/2 percentage point slower than a year earlier. In my view, the recent lower readings on inflation likely reflect transitory factors. As these transitory factors fade, I anticipate that inflation will stabilize around 2 percent over the medium term. However, it is also possible that this year’s low inflation could reflect something more persistent. Indeed, inflation has been below the Committee’s 2 percent objective for most of the past five years. Against this backdrop, the FOMC has indicated that it intends to carefully monitor actual and expected progress toward our inflation goal.

Although the economy and the jobs market are generally quite strong, real GDP growth has been disappointingly slow during this expansion relative to earlier decades. One key reason for this slowdown has been the retirement of the older members of the baby-boom generation and hence the slower growth of the labor force. Another key reason has been the unusually sluggish pace of productivity growth in recent years. To generate a sustained boost in economic growth without causing inflation that is too high, we will need to address these underlying causes. In this regard, the Congress might consider policies that encourage business investment and capital formation, improve the nation’s infrastructure, raise the quality of our educational system, and support innovation and the adoption of new technologies.

Monetary Policy

I will turn now to the implications of recent economic developments and the outlook for monetary policy. With ongoing strengthening in labor market conditions and an outlook for inflation to return to 2 percent over the next couple of years, the FOMC has continued to gradually reduce policy accommodation. The Committee raised the target range for the federal funds rate by 1/4 percentage point at both our March and June meetings, with the range now standing at 1 to 1-1/4 percent. And, in October, the Committee began its balance sheet normalization program, which will gradually and predictably reduce our securities holdings. The Committee set limits on the pace of balance sheet reduction; those limits should guard against outsized moves in interest rates and other potential market strains. Indeed, there has been little, if any, market effect associated with the balance sheet runoff to date. We do not foresee a need to alter the balance sheet program, but, as we said in June, we would be prepared to resume reinvestments if a material deterioration in the economic outlook were to warrant a sizable reduction in the federal funds rate.

Changes to the target range for the federal funds rate will continue to be the Committee’s primary means of adjusting the stance of monetary policy. At our meeting earlier this month, we decided to maintain the existing target range for the federal funds rate. We continue to expect that gradual increases in the federal funds rate will be appropriate to sustain a healthy labor market and stabilize inflation around the FOMC’s 2 percent objective. That expectation is based on the view that the current level of the federal funds rate remains somewhat below its neutral level–that is, the rate that is neither expansionary nor contractionary and keeps the economy operating on an even keel. The neutral rate currently appears to be quite low by historical standards, implying that the federal funds rate would not have to rise much further to get to a neutral policy stance. If the neutral level rises somewhat over time, as most FOMC participants expect, additional gradual rate hikes would likely be appropriate over the next few years to sustain the economic expansion.

Of course, policy is not on a preset course; the appropriate path for the federal funds rate will depend on the economic outlook as informed by incoming data. The Committee has noted that it will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. More generally, in determining the timing and size of future interest rate adjustments, the Committee will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

Thank you. I would be pleased to answer your questions.

*  *  *

And the market’s reaction to this ‘reassuring’ commentary that says nothing new… USD spikes as Citi notes “The continued willingness to overlook inflation misses on ‘transitory factors’ is thus relatively hawkish, in a sense. This is reassuring enough for US assets it seems.”

end

 

My goodness!! Such fraudulent data:  The estimated Q3 GDP revised up to 3.3%  (with huge reduction in inventories?)

 

(courtesy zerohedge)

Q3 GDP Revised Up To 3.3%, Highest In 3 Years

After the BEA estimated that US GDP rose an already impressive 3.0% in Q3, moments ago the Department of Commerce revised its estimate for third quarter growth to 3.3% annualized, higher than the 3.2% print expected, the highest since the third quarter of 2014.

On a Y/Y basis, GDP rose by 2.3%, the highest since Q3 2015:

The increase in real GDP reflected increases in consumer spending, inventory investment, business investment, and exports. A notable offset to these increases was a decrease in housing investment. Imports, which are a subtraction from GDP, decreased. The increase in consumer spending reflected increases in spending on both goods and services. The increase in goods was primarily  attributable to motor vehiclesThe increase in services primarily reflected increases in health care, financial services and insurance, and recreation services. The increase in inventory investment primarily reflected increases in the manufacturing and wholesale trade industries. The increase in business investment reflected increases in equipment and intellectual property products; these increases were partly offset by a decrease in structures.

Putting numbers to the data, Q3 Consumer Expenditures were revised modestly lower, from contributing 1.62% to the bottom line GDP, to 1.60%. This however was offset by upward revisions to all other GDP components, from Fixed Investment (from 0.25% to 0.39%) and Private Inventories (0.73% to 0.80%), to net trade (from 0.40% to 0.44%) and finally, government consumption, which also rose from -0.02% to 0.07%.

Some other numbers: Core PCE 1.4%, in line with the expected and above 1.3% from the initial estimate. PCE Prices rose 1.5% in Q3, same as consensus and unchanged from the initial estimate. The GDP Deflator came in a little weaker than expected, at 2.1% vs 2.2% exp. That miss however was offset by GDP Sales, which rose from 2.3% in the preliminary report to 2.5%, above the 2.4% expected.

Also notable in today’s release was the Corporate Profits number, which surged at a 4.3% annual rate in Q3, after increasing 0.7 percent in the second quarter.  Year over year corporate profits are up 5.4% in 3Q after rising 6.4% prior quarter, driven by financial industry profits which increased 13.7% in 3Q after falling 7.1% prior quarter. Also notable: Federal Reserve bank profits up 1.5% in 3Q after falling 10.6% prior quarter, while the nonfinancial sector profits rose 1% in 3Q after rising 4.9% prior quarter.

 

Pending Home Sales Jump Most In 8 Months On Hurricane Rebound

Following the bounces in new- and existing-home sales in October, all eyes are on Pending Home Sales to complete the trifecta of ‘proof’ that housing is back baby… and it did rising 3.5% MoM (beating expectations of a 1.0% gain). The driver of the surge was The South (up 7.4% MoM) as September’s 3% hurrican tumble is erased.

September’s data was revsised slightly lower (from 0.0% to -0.4%) but October’s jump is the biggest since Feb..

The surprise surge was driven by a huge rebound in The South:

  • Northeast up 0.5%; Sept. rose 1.2%
  • Midwest up 2.8%; Sept. rose 1.4%
  • South up 7.4%; Sept. fell 3%
  • West fell 0.7%; Sept. rose 1.5%

(note- the 2010 surge and purge was the pre- and post- moves around the homebuyer tax credits’ expiration”

“Home shoppers had better luck finding a home to buy in October, but slim pickings and consistently fast price gains continue to frustrate and prevent too many would-be buyers from reaching the market,” Lawrence Yun, NAR’s chief economist, said in a statement.

“Until new home construction climbs even higher and more investors and homeowners put their home on the market, sales will continue to severely trail underlying demand.”

The cover-up begins.  Judicial Watch is to receive FBI documents on that famous tarmac meeting of Lynch and former President Bill Clinton

 

(courtesy zerohedge)

 

“The Cover-Up Begins To End”: Judicial Watch Hints At Explosive New Clinton-Lynch Tarmac Docs

Back on June 29, 2016, Obama’s Attorney General, Loretta Lynch, tried to convince us that the following ‘impromptu’ meeting between herself and Bill Clinton at the Phoenix airport, a private meeting which lasted 30 minutes on Lynch’s private plane, was mostly a “social meeting” in which Bill talked about his grandchildren and golf game.  It was not, under any circumstances, related to the statement that former FBI Director James Comey made just 6 days later clearing Hillary Clinton of any alleged crimes related to his agency’s investigation.

Not surprisingly, following the above media clip several concerned watchdog groups filed FOIA requests seeking any and all DOJ and/or FBI documents related to what was either (i) a really poorly timed meeting, in the best case, or (ii) a clear attempt by a former President of the United States to apply leverage over the current Attorney General to obstruct justice and get his wife elected President, in the worst case.

After originally being told by the FBI there were no documents to produce in response to their July 2016 FOIA request, Judicial Watch’s Tom Fitton was subsequently told in October 2017 that the FBI had simply overlooked 30 pages worth of relevant docs…30 pages which Fitton now says will mark the “beginning of the end” of the DOJ’s “cover-up” when they’re released this Thursday.

FBI Hid Clinton/Lynch Tarmac Meeting Records. But the cover-up begins to end — thanks to @JudicialWatch — the day after tomorrow. @RealDonaldTrump needs to clean house at FBI/DOJ.

FBI Hid Clinton/Lynch Tarmac Meeting Records. But the cover-up begins to end — thanks to @JudicialWatch — the day after tomorrow. @RealDonaldTrump needs to clean house at FBI/DOJ. https://youtu.be/zvlGh_lDCyg 

Of course, Fitton expressed his frustration with the botched FOIA response back in October after describing the FBI as “out of control” and saying it’s “stunning that the FBI ‘found’ these Clinton-Lynch tarmac records only after we caught the agency hiding them in another lawsuit.”  Per Judicial Watch:

“The FBI is out of control. It is stunning that the FBI ‘found’ these Clinton-Lynch tarmac records only after we caught the agency hiding them in another lawsuit,” stated Judicial Watch Tom Fitton. “Judicial Watch will continue to press for answers about the FBI’s document games in court. In the meantime, the FBI should stop the stonewall and release these new records immediately.”

 

This case has also forced the FBI to release to the public the FBI’s Clinton investigative file, although more than half of the records remain withheld.  The FBI has also told Judicial Watch that it anticipates completing the processing of these materials by July 2018.

 

There is significant controversy about whether the FBI and Obama Justice Department investigation gave Clinton and other witnesses and potential targets preferential treatment.

So what say you?  Will Judicial Watch finally manage to release documents that expose collusion between a former U.S. President, the FBI and the sitting Attorney General to cover-up a massive Clinton scandal or will they simply release more heavily redacted documents that tell us precisely nothing.  We’ll let you know on Thursday.

I am delighted that Wells Fargo may be hit with a “repeat offender” as they continually engage in defrauding practices..could not happen to a better bunch of guys!!~
(courtesy zerohedge)_

Wells Fargo May Be Hit With “Repeat Offender” Formal Enforcement Action

It’s beginning to seem like every day there’s a new scandal breaking out at Wellls Fargo.

Earlier this week, the Wall Street Journal dished on Wells Fargo’s latest scandal when it reported that several regulators and even one US attorney were investigating the bank for gouging clients of its foreign-exchange trading desk.

Among the many humiliating details, the public learned that Wells had tacitly encouraged this behavior with an idiosyncratic bonus structure and even embarrassed and demoted an employee who complained to management about this behavior.

The scandal marked the latest blemish on Wells Fargo’s once-pristine public image following a series of other scandals in its retail lending and banking division. Earlier this year, the public learned that Wells had forced customers in its auto-lending division to buy collision insurance they didn’t need. And when 20,000 customers refused or failed to pay the insurance, the bank had their cars repossessed.

While the bank’s CEO Tim Sloane has been making the media rounds trying to rehabilitate its image, the Comptroller of the Currency, one of the bank’s regulators, has been preparing yet another enforcement action against the bank – what would be its fifth in as many years, according to WSJ.

The paper reported that the OCC has informed Wells Fargo’s board of directors that it is considering an enforcement action known as a consent letter over the bank’s failure to remedy internal controls following its infamous cross-selling scandal – when 5,000 branch managers opened fake accounts in customers’ names that the customers themselves were often unaware of – and the auto-insurance scandal, which the bank publicly admitted over the summer. In the letter would label the bank a repeat offender and purportedly increase the penalties that could be assessed if the bank doesn’t finally fix its compliance controls.

The banks also admitted to overcharging some of its mortgage customers.

In a harshly worded letter sent earlier this month, the Office of the Comptroller of the Currency, one of the bank’s chief regulators, said Wells Fargo had willingly harmed its customers in those two business lines and had until Nov. 24 to respond, according to people familiar with the matter. The letter said the bank repeatedly failed to correct problems in a broad range of areas, not just the auto-insurance and mortgage-lending units, the people said.

 

Wells Fargo declined to comment on the letter or its response. In a statement, the bank said there “is still work to be done,” and that it “is dedicated to making things right, fixing the problems, and building a better bank.”

 

The bank said it is making changes “across our risk management functions and line of business operations to rebuild the trust of our customers and team members.” An OCC spokesman declined to comment on an ongoing regulatory matter.

 

The OCC’s letter to the Wells Fargo directors centers on irregularities in two of the bank’s operations – auto insurance and mortgage lending – both of which have emerged this year.

Typically, notifications like this are a formality: Nine times out of ten, the regulator follows up with an enforcement action, typically a fine and a promise for the bank to take certain agreed-upon steps to strengthen its internal controls while making restitution to the customers it wronged.

The bank has also said it charged some customers improper fees to extend the interest-rate commitments they received from Wells Fargo on their mortgage applications. In October the bank said it is reaching out to around 110,000 customers who paid a total of $98 million in such fees, and expects refunds to be lower than that total because, the bank said it “believes a substantial number of those fees were appropriately charged under its policy.”

 

The enforcement action being weighed against Wells Fargo is a cease-and-desist order, the people familiar with the matter said. Also known as a consent order, it is among an array of formal enforcement proceedings the OCC can take when it determines that deficiencies in a bank’s operations are severe, uncorrected, unsafe or unsound. The issuance of a consent order typically includes steps the bank’s board or management must take to correct the deficiencies and a time period for doing so.

 

The OCC’s letter underscores the continuing challenges faced by Wells Fargo as it seeks to emerge from a widespread scandal that came to a head last year. It involved disclosures that Wells Fargo had created as many as 3.5 million accounts using fictitious or unauthorized customer information. Any new sanction by regulators could further dent the bank’s reputation and could provide ammunition for private lawsuits against the company.

 

Last year’s disclosure about the unauthorized accounts led the OCC to issue Wells Fargo a cease-and-desist order. The regulator levied penalties of $35 million in that September 2016 action, stipulating that Wells Fargo’s board “achieves and maintains an enterprisewide risk-management program designed to prevent and detect unsafe or unsound sales practices.”

While the OCC has broad power to restrict acquisitions and the bank’s other activities, it has for whatever reason been reluctant to use them.Even though there was rarely a moment over the last five years where the bank wasn’t taking advantage of its customers in some way, it has only been assessed a grand total of $55 million in fines by the OCC – a pittance compared to the $4.6 billion net profit the bank earned last quarter.

The enforcement letters, however, have at least one utility: Plaintiffs who were wronged by Wells can use it to justify a lawsuit. And we imagine many consumers will take advantage of this opportunity: After all, imagine how angry you’d be if a bank wrongly repossessed your car? Customers could lose their jobs. All because of a bank’s negligence.

For what it’s worth, the bank appears to have found its scape goat. As WSJ reports, earlier this month, the bank dismissed Franklin Codel, the head of consumer lending. Codel was purportedly responsible for cleaning up questionable practices with auto lending and mortgages in that unit of the bank. He was dismissed for reportedly making disparaging comments about the bank’s regulators, according to people familiar with the matter. Wells Fargo said it would replace Codel by the end of the year. Codel previously said in a brief interview that he was “proud of my career with Wells Fargo” but declined to comment on details of his firing, saying additional questions should be directed to the bank.

In its consent letter to Wells, the OCC “identified irregularities” in its insurance operations and accused the bank of having “weak” compliance risk.

The report also said the bank had underestimated the amount of restitution it owed to wronged customers. Of course, if this were the bank’s first warning, this language might seem appropriate. But keep in mind: Despite the public outrage that the bank’s cross-selling scandal elicited, the organization itself came away with a slap on the risk.

Maybe – just maybe – when banks are allowed to gouge and mistreat customers with minimal repercussions, they’re never forced to adjust their assessment of just how far to push questionable behaviors.

But then again, who are we to say? Perhaps letter number six will make all the difference.

end

Very popular Michael Snyder details the destruction in the retail sector of the USA economy.  And it is not just Amazon’s fault.  This real we will see over 6700 stores close. In the last 10 yrs the growth in the uSA economy has been only 1.33%.  Snyder basically is stating that the retail bubble has now burst.
a must read.
(courtesy Michael Snyder/Economic Collapse Blog)

 

Recovery? We Have Tripled The Number Of Store Closings From Last Year…

Authored by Michael Snyder via The Economic Collapse blog,

Did you know that the number of retail store closings in 2017 has already tripled the number from all of 2016?

Last year, a total of 2,056 store locations were closed down, but this year more than 6,700 stores have been shut down so far. 

That absolutely shatters the all-time record for store closings in a single year, and yet nobody seems that concerned about it.  In 2008, an all-time record 6,163 retail stores were shuttered, and we have already surpassed that mark by a very wide margin.  We are facing an unprecedented retail apocalypse, and as you will see below, the number of retail store closings is actually supposed to be much higher next year.

Whenever the mainstream media reports on the retail apocalypse, they always try to put a positive spin on the story by blaming the growth of Amazon and other online retailers.  And without a doubt that has had an impact, but at this point online shopping still accounts for less than 10 percent of total U.S. retail sales.

Look, Amazon didn’t just show up to the party.  They have been around for many, many years and while it is true that they are growing, they still only account for a very small sliver of the overall retail pie.

So those that would like to explain away this retail apocalypse need to come up with a better explanation.

As I noted in the headline, there are 20 different major retail chains that have closed at least 50 stores so far this year.  The following numbers originally come from Fox Business

1. Abercrombie & Fitch: 60 stores
2. Aerosoles: 88 stores
3. American Apparel: 110 stores
4. BCBG: 118 stores
5. Bebe: 168 stores
6. The Children’s Place: hundreds of stores to be closed by 2020
7. CVS: 70 stores
8. Guess: 60 stores
9. Gymboree: 350 stores
10. HHgregg: 220 stores
11. J.Crew: 50 stores
12. JC Penney: 138 stores
13. The Limited: 250 stores
14. Macy’s: 68 stores
15. Michael Kors: 125 stores
16. Payless: 800 stores
17. RadioShack: more than 1,000 stores
18. Rue21: up to 400 stores
19. Sears/Kmart: more than 300 stores
20. Wet Seal: 171 stores

If the U.S. economy was really doing well, then why are all of these major retailers closing down locations?

Of course the truth is that the economy is not doing well.  The U.S. economy has not grown by at least 3 percent in a single year since the middle of the Bush administration, and it isn’t going to happen this year either.  Overall, the U.S. economy has grown by an average of just 1.33 percent over the last 10 years, and meanwhile U.S. stock prices are up about 250 percent since the end of the last recession.  The stock market has become completely and utterly disconnected from economic reality, and yet many Americans still believe that it is an accurate barometer for the health of the economy.

I used to do a Black Friday article every year, but I have ended that tradition.  Yes, there were still a few scuffles this year, but at this point the much bigger story is how poorly the retailers are doing.

So far this year, more than 300 retailers have filed for bankruptcy, and we are currently on pace to lose over 147 million square feet of retail space by the end of 2017.

Those are absolutely catastrophic numbers.

And some analysts are already predicting that as many as 9,000 storescould be shut down in the United States in 2018.

Are we just going to keep blaming Amazon every time another retail chain goes belly up?

What we should really be focusing on is the fact that the “retail bubble” is starting to burst.  In the aftermath of the last financial crisis, retailers went on an unprecedented debt binge, and now a lot of that debt is starting to go bad.

In fact, in a previous article I discussed the fact that “the amount of high-yield retail debt that will mature next year is approximately 19 times larger than the amount that matured this year”.  This is going to have very serious implications on Wall Street, but very few people are really talking about this.

Most stores try to stay open through Christmas, but once the holiday season is over we will see another huge wave of store closings.

And as individual stores close down, this will put a lot of financial pressure on malls and shopping centers.  Not too long ago, one report projected that up to 25 percent of all shopping malls in the entire nation could close down by 2022, but I tend to think that number is too optimistic.

The retail industry in the United States is dying, and the biggest reason for that is not Amazon.

Rather, the real reason why the retail industry is in so much trouble is because of the steady decline of the middle class.  The gap between the ultra-wealthy and the rest of us is greater than ever, and we can clearly see the impact of this in the retail world.

Retailers that serve the very wealthy are generally doing well, and those that serve the other end of the food chain (such as dollar stores and Wal-Mart) are also doing okay.

But virtually all of the retailers that depend on middle class shoppers are really struggling, and this is going to continue for the foreseeable future.

Most American families are either living paycheck to paycheck or are close to that level, and these days U.S. consumers simply do not have much discretionary income to play around with.  More hard working Americans are going to fall out of the middle class with each passing month, and that is extremely bad news for a retail industry that is literally falling apart right in front of our eyes.

*  *  *

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

Well that about does it for today

I will see you Thursday night

HARVEY

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