Dec 5/Another epic raid gives gold down $12.50 and silver down another 28 cents/Another huge 11000 contracts transferred via EFP (34 tonnes) to London in gold and 2700 contacts in silver (13.5 million oz)/THIS ONE HIT ME LIKE A TON OF BRICKS: SLV DESPITE THE WHACKING OF SILVER ADDS 2.507 MILLION OZ TO ITS INVENTORY/ Trump to announce recognition of Jerusalem as Israel’s true capital: expect firestorm/ Government shutdown looms!/

GOLD: $1262.50  DOWN $12.50

Silver: $16.06 DOWN 28 cents

Closing access prices:

Gold $1266.00

silver: $16.10

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: $1282.41 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1275.85

PREMIUM FIRST FIX: $6.56

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SECOND SHANGHAI GOLD FIX: $1299.55

NY GOLD PRICE AT THE EXACT SAME TIME: $1275.90

Premium of Shanghai 2nd fix/NY:$13.65

 

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1275.90

NY PRICING AT THE EXACT SAME TIME: $1275.50

LONDON SECOND GOLD FIX 10 AM: $1266.30

NY PRICING AT THE EXACT SAME TIME. 1267.16???

For comex gold:

DECEMBER/

 NUMBER OF NOTICES FILED TODAY FOR DECBER CONTRACT:  2 NOTICE(S) FOR 200 OZ.

TOTAL NOTICES SO FAR: 3014 FOR 301,400 OZ (9.375 TONNES)

For silver:

DECEMBER

405 NOTICE(S) FILED TODAY FOR

2,025,000 OZ/

Total number of notices filed so far this month: 4605 for 23,025,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $11,620/OFFER $11,680, up $29 (morning) 

BITCOIN : BID $11,730 OFFER: $11,789 // UP $141 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest  FELL BY TINY 152 contracts from 191,302 FALLING TO 190,055 WITH YESTERDAY’S ONE CENT FALL IN SILVER  AND NOW WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD SURPRISINGLY NO REAL COMEX LIQUIDATION AS WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER LARGE NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE :  2754 EFP’S FOR MARCH (AND ZERO FOR DEC AND OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 2754 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 2881 EFP’S FOR SILVER ISSUED.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF DECEMBER:  11,022 CONTRACTS (FOR 3 TRADING DAYS TOTAL 11,022 CONTRACTS OR 55.11 MILLION OZ: AVERAGE PER DAY: 3,674 CONTRACTS 18.37 MILLION OZ)

RESULT: A TINY SIZED FALL IN OI COMEX WITH THE ONE CENT FALL IN SILVER PRICE.  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 2754 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 2602 OI CONTRACTS i.e2754 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 152 OI COMEX CONTRACTS. AND ALL OF THIS INCREASED DEMAND  HAPPENED WITH THE FALL IN PRICE OF SILVER BY ANOTHER 1 CENT WITH A LOW CLOSING PRICE OF $16.34 YESTERDAY. WE STILL HAVE A MASSIVE AMOUNT OF SILVER STANDING AT THE COMEX.

 

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.950 BILLION TO BE EXACT or 136% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DECEMBER MONTH/ THEY FILED: 405 NOTICE(S) FOR 2,025,000 OZ OF SILVER

In gold, the open interest FELL BY A TINY 1455 CONTRACTS DOWN TO 473,406  DESPITE THE FALL  IN PRICE OF GOLD ON YESTERDAY ($4.50).  HOWEVER,  THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR TUESDAY  TOTALED ANOTHER 11,033 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 0 CONTRACTS AND FEB SAW THE ISSUANCE OF 11,033 CONTRACTS. The new OI for the gold complex rests at 474,135. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE WITNESS THE HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE AMOUNT OF GOLD OUNCES STANDING FOR DECEMBER. 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 APPRECIABLE 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 HAVE A NET GAIN OF 9582 OI CONTRACTS: 1451 OI CONTRACTS LOST AT THE  COMEX  BUT  11,033 OI CONTRACTS NAVIGATED OVER TO LONDON. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP ISSUANCE.  THEY ARE IMMEDIATELY REMOVING COMEX OPEN INTEREST NUMBERS BUT DELAYING RELEASE OF EFP’S FOR 24 HOURS OR GREATER AS NO DOUBT THEY ARE NEGOTIATING WITH THE LONGS FOR A FIAT BONUS.

YESTERDAY, WE HAD 15,472 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DECEMBER STARTING WITH FIRST DAY NOTICE42,278 CONTRACTS OR 4.227 MILLION OZ OR 131 TONNES (3 TRADING DAYS AND THUS AVERAGING:14,092 EFP CONTRACTS PER TRADING DAY OR 1.409 MILLION OZ)

Result: A SMALL SIZED DECREASE IN OI  WITH THE FAIR SIZED FALL IN PRICE IN GOLD YESTERDAY ($4.50). WE  HAD AN LARGE  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,033. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE REACHED THE HUGE DELIVERY MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES.  IF YOU TAKE INTO ACCOUNT THE 11,033 EFP CONTRACTS ISSUED, WE HAD A NET GAIN OPEN INTEREST OF 9582  contracts:

11,033 CONTRACTS MOVE TO LONDON AND 1451 CONTRACTS REMOVED FROM THE COMEX. THE NET GAIN IN OZ: 958,200 OZ AND IN TONNES: 29.80 TONNES

we had:  2  notice(s) filed upon for 200 oz of gold.

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

GLD:

Today, A HUGE CHANGE in gold inventory at the GLD/ A WITHDRAWAL  OF 2.64 TONNES. THIS WAS UNDERSTANDABLE WITH THE RAID TODAY.

Inventory rests tonight: 845.47 tonnes.

SLV

TODAY WE HAD A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A MASSIVE DEPOSIT OF 2.507 MILLION OZ DESPITE SILVER’S WHACKING  (PRICE DISCOVERY??)

INVENTORY RESTS AT 321.713 MILLION OZ

end

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

1. Today, we had the open interest in silver SURPRISINGLY FELL BY ONLY 152 contracts from 190,207 DOWN  TO 190,055 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE LOSS IN PRICE OF SILVER PRICE AND CONTINUAL BOMBARDMENT (A FALL OF 1 CENT ). HOWEVER,OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  2754  PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM).  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  WE HAD ZERO COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE OI LOSS AT THE COMEX (152 CONTRACTS)   TO THE 2754 OI TRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A NET GAIN OF  2602  OPEN INTEREST CONTRACTS, ON TOP OF THE HUGE AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN DECEMBER (SEE BELOW). THE NET GAIN IN OZ: 13.01 MILLION OZ!!! 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 1 CENT FALL IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 2754 EFP’S ISSUED TRANSFERRING  COMEX LONGS OVER TO LONDON . TOGETHER WITH THE HUGE AMOUNT OF SILVER OUNCES STANDING FOR DECEMBER, DEMAND FOR PHYSICAL SILVER INTENSIFIES.

(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 MONDAY night/TUESDAY morning: Shanghai closed DOWN 5.94 points or .18% /Hang Sang CLOSED DOWN 295.48 pts or 1.01% / The Nikkei closed DOWN 84.78 POINTS OR 0.37%/Australia’s all ordinaires CLOSED DOWN 0.22%/Chinese yuan (ONSHORE) closed up at 6.6130/Oil DOWN to 57.18 dollars per barrel for WTI and 62.27 for Brent. Stocks in Europe OPENED ALL MIXED .    ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6136. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6183 //ONSHORE YUAN STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS SLIGHTLY WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT  HAPPY TODAY.(MARKETS GENERALLY  WEAK)

 

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)North Korea/South Korea/Russia

Kim seems ready to raise the stakes before any talks begin. Russia claims that were are on the brink of war on the Korean Peninsula

 

( zerohedge)

 

b) REPORT ON JAPAN

3 c  CHINA

 

HNA is one of the big four Chinese conglomerates.  Does a 9% coupon with one yr expiry signalling a systemic risk?

 

( zerohedge)

4. EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6 .GLOBAL ISSUES

7. OIL ISSUES

Another massive oil and gasoline inventory build

 

(courtesy zerohedge)

8. EMERGING MARKET

9. PHYSICAL MARKETS

i)The Moscow stock exchange will soon issue a 1 billion of yuan denominated bonds.  It could be the startof a new financial system by-passing the USA dollar:

( Russia Today/GATA)

ii)Bullion star’s November charts shows strong demand for gold coming from China, India and Russia

 ( Bullionstar)

iii)Bitcoin jumps to $11850 as Governments, regulators and bankers begin to panic.  They would have been better off if gold/silver were not manipulated and then allowed to find its true value( zerohedge)

iv)Not a good sign for global growth:  copper plunges to 3 month lows

( zerohedge)

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

i)Trading today:

not good, a collapsing yield curve!

( zerohedge)

ii)Generally it is the Service sector that is the stronger of the two PMIs.  Today Service PMI is hit showing surging costs and lower growth.

( zerohedge)

iii)With the uSA dollar faltering, this should have eased on the trade deficit.  It did not as the deficit is now at 5 yr highs

( zerohedge)

iv)My goodness!! it looks like the Mueller investigation is deepening after it has been learned that 4 months ago Deutsche bank received a subpoena for Trump and family bank accounts

( zerohedge)

iv  b)Now even the Wall Street Journal is calling for the “too conflicted” Mueller to step down

( WallStreet Journal)

v)Unbelievable!! more anti trump messages reportedly sent by FBI members and they are unbiased? They should all be removed and a new team sent in

( zerohedge)
vi)We may see a government shutdown over the “dreamers” fate

( zerohedge)

Let us head over to the comex:

The total gold comex open interest  FELL BY  1451  CONTRACTS DOWN to an OI level of 473,406 WITH THE  GOOD SIZED FALL  IN THE PRICE OF GOLD ($4.50 LOSS WITH RESPECT TO YESTERDAY’S TRADING).  IN ACTUAL FACT WE DID NOT HAVE ANY GOLD  LIQUIDATION.  WE  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 0 EFPS WERE ISSUED FOR DECEMBER  AND 11,033 EFP’S WERE ISSUED FOR FEBRUARY FOR A TOTAL OF 11,033 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  ABORTED RAID WE WITNESSED ON FRIDAY AND AGAIN ON MONDAY . 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.

ON A NET BASIS IN OPEN INTEREST WE GAINED TODAY: 9582 OI CONTRACTS IN THAT 11,033 LONGS WERE TRANSFERRED AS LONGS TO LONDON AS A FORWARD AND WE LOST  1451 COMEX CONTRACTS.  NET GAIN: 9582 contracts OR .9582 MILLION OZ OR 29.6 TONNES

Result: A LESS THAN EXPECTED DECREASE IN COMEX OPEN INTEREST WITH THE  FALL IN THE PRICE OF GOLD YESTERDAY ($4.50.)   WE HAD NO REAL GOLD LIQUIDATION. TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 9582 OI CONTRACTS…

We have now entered the  active contract month of DECEMBER. The open interest for the front month of December saw it’s open interest decline by 637 contracts down to 6735.  We had 76 notices filed upon yesterday so we lost 561 COMEX contracts or an additional 56,100 oz will not stand for delivery in this active delivery month of December but they did migrate over to London as a forward for February…the reason for the move is that there is not any gold for them at the comex.

January saw its open interest GAIN OF 62 contracts UP to 2182. FEBRUARY saw a loss of 1266 contacts down to 365,093.

We had 2 notice(s) filed upon today for 7600 oz

PRELIMINARY VOLUME TODAY ESTIMATED;  300,800

FINAL NUMBERS CONFIRMED FOR FRIDAY:  267,463

comex gold volumes are increasing dramatically

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And now for the wild silver comex results.

Total silver OI FELL BY A TINY  152 CONTRACTS  FROM 190,207 UP TO 190,055 WITH YESTERDAY’S 1 CENT LOSS IN PRICE (AND CONTINUAL RAIDING OF OUR PRECIOUS METALS).  HOWEVER WE DID HAVE ANOTHER STRONG 2754 EMERGENCY EFP’S FOR MARCH ISSUED BY OUR BANKERS (ZERO FOR DECEMBER) TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.THE TOTAL EFP’S ISSUED: 2754.  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.  WITHOUT A DOUBT WE HAD NO REAL LONG SILVER  LIQUIDATION AS DEMAND FOR PHYSICAL SILVER REMAINS STRONG ESPECIALLY AS WE WITNESS A HUGE AMOUNT OF SILVER OUNCES STANDING FOR METAL IN DECEMBER AS WELL AS THAT MASSIVE MIGRATION OF EFPS OVER TO LONDON. IT SEEMS THAT ALL OF OUR LOST SILVER COMEX OI CONTRACTS HAVE MIGRATED OVER TO THE PHYSICAL HUB OF OUR PRECIOUS METALS, LONDON. ON A NET BASIS WE GAINED 2602 OPEN INTEREST CONTRACTS:

152 CONTRACTS LOST AT THE COMEX WITH THE ADDITION OF  2754 OI CONTRACTS NAVIGATING OVER TO LONDON.

We are now in the big active delivery month of December and here the OI fell by 494 contracts down to 1343.  We had 213 notices filed upon yesterday so we LOST 281 contracts or an additional 1,405,000 oz will NOT stand in this active delivery month of December.

The January contract month ROSE by 59 contracts UP to 1276.  February saw a drop of ZERO OI contract REMAINING AT 22. The March contract LOST 256 contracts DOWN to 151,156.

We had 405 notice(s) filed initially for 2,025,000 oz for the DECEMBER. 2017 contract

INITIAL standings for DECEMBER

 Dec 5/2017.

amazing no activity

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
No of oz served (contracts) today
 
2 notice(s)
200 OZ
No of oz to be served (notices)
6733 contracts
(673,300 oz)
Total monthly oz gold served (contracts) so far this month
3014 notices
301400 oz
9.374 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 0 adjustment(s)

*December is the biggest delivery month of the year for gold and the fact that no gold has entered the vaults these past three trading days speaks volumes that there is no appreciable gold at the comex to deliver upon our longs and thus the reason for the migration to London

For DECEMBER:
Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 2 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 DECEMBER. contract month, we take the total number of notices filed so far for the month (3014) x 100 oz or 301,200 oz, to which we add the difference between the open interest for the front month of DEC. (6735 contracts) minus the number of notices served upon today (2 x 100 oz per contract) equals 974,700 oz, the number of ounces standing in this  active month of DECEMBER

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

No of notices served (3014) x 100 oz or ounces + {(6735)OI for the front month minus the number of notices served upon today (2) x 100 oz which equals 974700 oz standing in this active delivery month of DECEMBER (30.31 tonnes). INTERESTINGLY THERE IS ONLY 28 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.

WE LOST 561 COMEX CONTRACTS STANDING OR 56100 OZ BUT THESE CONTRACTS MORPHED INTO A FEB LONDON FORWARD.

.

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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 922,639.946 or 28.69 tonnes (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 8,906,485.958 or 277.02 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 DECEMBER DELIVERY MONTH

DECEMBER INITIAL standings

 Dec 5/ 2017
Silver Ounces
Withdrawals from Dealers Inventory  nil
Withdrawals from Customer Inventory
 20,291.000 oz
HSBC
Deposits to the Dealer Inventory
 nil
oz
Deposits to the Customer Inventory 
 611,004.561 oz
 CNT
Delaware
No of oz served today (contracts)
405 CONTRACT(S)
(2,025,000OZ)
No of oz to be served (notices)
938 contract
(4,690,000 oz)
Total monthly oz silver served (contracts) 5010 contracts

(25,050,000 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 1 customer withdrawal(s):

ii) Out of CNT: 20,291.000 oz??? exact weight

TOTAL CUSTOMER WITHDRAWAL  20,291.000 oz

We had 2 Customer deposit(s):

i) Into CNT: 600,861.385 oz

ii) Into Delaware: 10,143.176 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: 611,004.561 oz

we had 1 adjustment(s)

i) Out of CNT:

598,860.300 oz was adjusted out of the customer and this landed into the dealer account of CNT

 

The total number of notices filed today for the DECEMBER. contract month is represented by 405 contract(s) FOR 2,025,000 oz. To calculate the number of silver ounces that will stand for delivery in DECEMBER., we take the total number of notices filed for the month so far at 5010 x 5,000 oz = 25,050,0000 oz to which we add the difference between the open interest for the front month of DEC. (1343) and the number of notices served upon today (405 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the DECEMBER contract month: 5010 (notices served so far)x 5000 oz + OI for front month of DECEMBER(1343) -number of notices served upon today (405)x 5000 oz equals 29,740,000 oz of silver standing for the DECEMBER contract month. This is EXCELLENT for this active delivery month of November.

WE LOST AN ADDITIONAL  281 CONTRACTS OR 1,405,000 OZ THAT WILL NOT STAND AT THE COMEX BUT MORPHED INTO FORWARD CONTRACTS AT THE LONDON LBMA.

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: 77,511

CONFIRMED VOLUME FOR YESTERDAY:   75004 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF 75004 CONTRACTS EQUATES TO 375 MILLION OZ OR 53.5% 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: 57.258 million
Total number of dealer and customer silver: 239.851 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 2.3 percent to NAV usa funds and Negative 2.2% to NAV for Cdn funds!!!!
Percentage of fund in gold 63.0%
Percentage of fund in silver:36.7%
cash .+.3%( Dec 5/2017)

WILL UPDATE LATER TONIGHT WHEN RECEIVED

2. Sprott silver fund (PSLV): NAV FALLS TO -0.47% (Dec 4 /2017)
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.40% to NAV (Dec 4/2017 )
Note: Sprott silver trust back into NEGATIVE territory at -0.47%-/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

Dec 5/A WITHDRAWAL OF 2.64 TONNES FROM THE GLD/INVENTORY RESTS AT 845.47 TONNES

Dec 4/A MASSIVE DEPOSIT OF 8.56 TONNES OF GOLD INTO THE GLD/THE BLEEDING OF GLD GOLD HAS STOPPED/INVENTORY RESTS TONIGHT AT 848.11 TONNES

Dec 1/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 839.55 TONNES

Nov 30/no change in gold inventory at the GLD. Inventory rests at 839.55 tonnes

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Dec 5/2017/ Inventory rests tonight at 845.47 tonnes

*IN LAST 286 TRADING DAYS: 95.48 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 221 TRADING DAYS: A NET 61.80 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.
*FROM FEB 1/2017: A NET 30.69 TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

Dec 5/THIS ONE HIT ME LIKE A TON OF BRICKS: SLV ADDS 2.507 MILLION OZ DESPITE THE HUGE DRUBBING SILVER TOOK TODAY. (PRICE DISCOVERY?)

Dec 4/NO CHANGE IN SILVER INVENTORY AT THE SLV

INVENTORY RESTS AT 319.207 MILLION OZ/

Dec 1/VERY STRANGE!! WITH SILVER IN THE DUMPSTER THESE PAST FEW DAYS, SLV ADDS 2.076 MILLION OZ/???

INVENTORY 319.207 MILLION OZ/

Nov 30/no changes in silver inventory despite the huge drop in price/inventory rests at 317.130 million oz

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/

Dec 5/2017:

Inventory 321.713 million oz

end

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

+ 1.53%
12 Month MM GOFO
+ 1.82%
30 day trend

end

Major gold/silver trading/commentaries for TUESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Goldcore:

Bailins Coming In EU – 114 Italian Banks Have NP Loans Exceeding Tangible Assets

Bailins Coming In EU – 114 Italian Banks Have NP Loans Exceeding Tangible Assets

– Italy opposes ECB proposal that holds banks to firm deadlines for writing down bad loans
– Italy’s banks weighed down under €318bn of bad loans
– New ECB rules could ‘derail’ any recovery in Italy’s financial system
– Draft proposal requires banks to provision fully for loans that turn sour from 2018
– ECB insists banks have better access to collateral on delinquent debt to solve problem
– Investors should secure assets as proposal suggests more bailins on horizon and banks remain at risk

Source: ilsole24ore.com

Another week and another unjustifiable move by the ECB to ‘protect’ the EU’s banking system. This time it is the decision to toughen bad-loan rules for euro-area banks.

The rules state that banks must be held to firm deadlines for writing down loans that turn sour. Banks will be required to provision fully for loans that turn sour from the start 2018.

This is particularly bad news for Italy. The country has over €318 billion of bad loans. Should the banks be forced to dispose of these non-performing loans too quickly then a financial disaster could be triggered, derailing any form of recovery

This is a step too far for Italy’s bankers who argued the ECB had overstepped its supervisory role, instead enforcing measures that should only be enforced by lawmakers.

Should they be enforced these new measures will not only put extra pressure on smaller banks but result in yet more savers and businesses losing money. The idea that these new policies will be beneficial for all is arguably laughable. Especially when one looks at the overall state of the Italian banking system.

The Texan warning signal

The health of a bank’s non-performing loans (NPLs) can be measured using the Texas ratio. This is a measure of bad loans as a proportion of capital reserves. When the reading is over 100 it is a warning signal the banks need a solution quickly.

Data cited in a March 2017 article shows that 23% of Italy’s near 500 banks are showing signs of severe stress. 24 of the banks that have a Texas ratio reading of over 200.

The bureaucrats in the likes of the ECB aren’t worried about the majority of the Italian banks with a Texas ratio of over 100 as they are small local or regional savings banks with tens or hundreds of millions of euros in assets. But when a reading of over 100 basically means they don’t have enough money to pay for the bad loans, what happens to the people who have their money with these small banks?

This isn’t just about those with money in small banks. The larger banks that often prop up the system are also in bad shape:

  • Banco Popolare (the result of a merger between Banco Popolare di Verona e Novara and Banca Popolare Italiana in 2017 and then a subsequent merger with Banca Popolare di Milano on 1 January 2017): €120 billion in assets; TR: 217%.
  • UBI Banca: €117 billion in assets; TR: 117%
  • Banca Nazionale del Lavoro: €77 billion in assets; TR: 113%
  • Banco Popolare Dell’ Emilia Romagna: €61 billion in assets; TR: 140%
  • Banca Carige: €30 billion in assets; TR: 165%
  • Unipol Banca: €11 billion in assets; TR: 380%

i.e. with the exception of Unicredit (TR of 90%), Intesa Sao Paolo (TR of 90%) and Mediobanca all of Italy’s major banks have TR ratios of over 100.

As long as these banks continue to have worsening TR ratios then Italy’s banking system has little hope of finding its feet again. In turn, this means more of Italy’s savers, pensioners and businesses will suffer.

If you want help, ransack savings first

We all remember Cyprus in 2013. When savers went to their bank accounts to find their money gone thanks to ECB policy. Uproar was short-lived as the rest of Europe believed this wasn’t something that could happen to them. They remained arrogant when the ECB brought in official bail-in policies, which would see savers impacted even more should a bank begin to fail.

Sadly this is not something Italy can ignore.

If anywhere has felt the brunt of the ECB’s bank ‘rescue’ proposals then it is Italy that has been hit the hardest. Sadly it is set to happen time and time again.

Already this year the EU has seen four bank ‘rescues’, three in Italy thanks to the NPL market: Monte dei Paschi, Banca Veneto and Vicenza Banca in Italy and Banco Popular in Spain.

Each of them were crushed by the weight of NPLs on their balance sheets and insufficient capital to offset higher losses. Who suffered? Bank creditors, i.e. savers.

Andrew Fraser, Head of Financial Research (Credit) at Standard Life Investments, explained:

In each case, the outcome for subordinated bondholders was very negative, with falling prices reflecting the likelihood of zero recovery on an investment. 

“The failures have also raised questions as to whether there is sufficient clarity in the application of the regulatory rulebook. 

The risk of owning bank debt has increased materially. Investors more than ever need to fully understand the risks embedded in a bank’s balance sheet but also the thickness of each layer of a bank’s capital structure which could absorb losses in the event of distress.”

In order to ‘help’ the Italian banking system the ECB will no doubt end up doling out charitable lending (formally known as TLTRO II). But, banks don’t qualify so easily for public financing, without the help of their generous customer first.

Zerohedge explains:

In order to qualify for public assistance, banks must be solvent. Presumably, that would automatically disqualify any bank with a Texas Ratio of over 150%, which includes MPS, Banco Popolare, Popolare di Vicenza, Veneto Banca, Banca Carige and Unipol Banca. The bailout must also comply with current EU regulations including the Bank Recovery and Resolution Directive of Jan 1, 2016, which specifically mandates that before public funds are injected into a bank, shareholders and creditors must be bailed in for a minimum amount of 8% of total liabilities, as famously happened in the rescue of Cyprus’ banking system in 2013.

Savers suffer as banks fail

As we have written about previously EU banking regulations do not protect those who need protection – savers, pensioners and businesses.

It seems every few months there are new measures announced to further prop up the banking system. With each one is further punishment and risk for those with cash or investments in the banks.

At the beginning of November we broke the news that new ECB proposals outlined plans to remove the deposit protection scheme. The news was little reported in the mainstream media, demonstrating the lack of concern readers currently have for the safety of their money.

Italy has a lesson to teach us all, not about how to support a banking system but how to protect your savings from EU bureaucrats.

Policies from the EU’s legislators and bankers are created with one purpose in mind: keep the Eurozone afloat. To do this, they believe, individuals must make sacrifices through their savings, their pensions and even their homes.

This does not mean that those with money and investments in the bank must take the same approach. For some ignorance is bliss, for others the deposit protection insurance is enough of a safety net. However depositors and investors should be aware of the policies when it comes to keeping their money safe in the banking system. Whilst bail-ins will at present only hurt those who hold deposits above EUR 100,000, there is little stopping the protected amount being decreased, or ignored altogether.

The European Commission has forced all 28 countries to implement bail-in legislation, something anyone with exposure to an EU bank must be aware of. Consider  the health of a particular bank and the risk exposure of their portfolio.  This means diversifying your invesments and decreasing your own level of counterparty exposure.

Protect your savings, not your bank

Gold investment is seeing an uptick as a result of concerns surrounding counterparty risk. Gold investment saw a 15% climb in Q2 of 2016. Europe, in 2015, showed the largest regional demand for gold bars and coins (an increase of 12% year on year).

Do not believe that any gold investment will protect you. Unallocated gold is as much exposed to counterparties as any other bank-based asset. Wealth of individuals and businesses can by protected by investing in allocated gold, held in segregated accounts. The buyer has legal ownership, with no counterparties to pop along after going bust and take what is legally theirs. Allocated gold held in segregated accounts cannot disappear overnight.

Gold is the financial insurance against bail-ins, political mismanagement and overreaching government bodies.

Related reading

Bail-Ins In Italy? World’s Oldest Bank “Survival Rests On Savers”

Protect Your Savings With Gold: ECB Propose End To Deposit Protection

Invest In Gold To Defend Against Bail-ins

News and Commentary

Asia Stocks Mixed, Dollar Falls as Tax Boost Fades (Bloomberg.com)

Dollar stalls as next step in US tax reform awaited (Reuters.com)

Gold ends lower as tax-cut progress lifts U.S. dollar, stocks (MarketWatch.com)

Gold ETFs Soar as Russia Probe Closes In on Trump’s Inner Circle (Bloomberg.com)

U.S. Stock Rally Fizzles as Tech Drops, Oil Slumps (Bloomberg.com)


Source: Bloomberg

People have spent over $1 million buying virtual cats on ethereum blockchain (TechCrunch.com)

Russia-China bond market play could start a dollarless financial system (RT.com`)

World Gold Council plans another ETF (ETF.com)

The War On Gold Intensifies: It Betrays The Elitists’ Panic And Coming Defeat (ZeroHedge.com)

The Pound is Enjoying a Fresh Wave of Confidence From Investors (Bloomberg.com)

Gold Prices (LBMA AM)

05 Dec: USD 1,275.90, GBP 950.29 & EUR 1,075.71 per ounce
04 Dec: USD 1,279.10, GBP 952.67 & EUR 1,079.43 per ounce
01 Dec: USD 1,277.25, GBP 946.57 & EUR 1,072.51 per ounce
30 Nov: USD 1,282.15, GBP 952.64 & EUR 1,084.06 per ounce
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

Silver Prices (LBMA)

05 Dec: USD 16.29, GBP 12.14 & EUR 13.72 per ounce
04 Dec: USD 16.33, GBP 12.09 & EUR 13.77 per ounce
01 Dec: USD 16.42, GBP 12.16 & EUR 13.80 per ounce
30 Nov: USD 16.57, GBP 12.32 & EUR 14.00 per ounce
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


Recent Market Updates

– Silver’s Positive Fundamentals Due To Strong Demand In Key Growth Industries
– An Interview with GoldCore Founder, Mark O’Byrne
– Risk Of Online Accounts Seen As One of Largest Brokerages In World Halts Online Trading After “Glitch”
– Low Cost Gold In The Age Of QE, AI, Trump and War
– Own Gold Bullion To “Support National Security” – Russian Central Bank
– 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”?

END

 

Gold Breaks Below Key Support, Drops To 4-Month Lows

Tyler Durden's picture

At 0907ET, someone decided it was the perfect time to dump $1.5 billion notional worth of gold, smashing the precious metal below its 200-day moving-average and back down to 4-month lows…

 

And so, once again, gold futures are tumbling…

 

To 4-month lows…but still up around 10% year-to-date…

 

What’s driving the gold weakness? Who knows… because it’s not the dollar…

The Moscow stock exchange will soon issue a 1 billion of yuan denominated bonds.  It could be the startof a new financial system by-passing the USA dollar:

(courtesy Russia Today/GATA)

Russia-China bond market play could start a dollarless financial system

 Section: 

From Russia Today, Moscow
Monday, December 4, 2017

The Moscow stock exchange will soon issue nearly $1 billion of yuan-denominated bonds. It could become the start of a new financial system not based on the U.S. dollar, analysts say.

Russia will issue the 6-billion-yuan (about $900 million) bonds with a five-year maturity in December or January. The central bank says it is testing the water for future investments.

“Such steps will make it possible to remove the dollar from settlements and use only yuan and rubles (mostly yuan for the moment) in the mid-term, if more specialists from the Russian financial sector work in this direction,” Gleb Zadoya, head of analytics at Analitika Online told RT.

Russian bonds in yuan could be interesting for the Chinese, as China has trillions of dollars of excessive liquidity as well as hundreds of thousands of new investors who are interested in trying new markets, the analyst said. …

… For the remainder of the report:

https://www.rt.com/business/411877-russia-china-bonds-dollar/

 END
Bullion star’s November charts shows strong demand for gold coming from China, India and Russia
(courtesy Bullionstar)

Bullion Star’s November charts show gold demand rising in China, India, Russia

 Section: 

8:09p ET Monday, December 4, 2017

Dear Friend of GATA and Gold:

Bullion Star’s gold market charts for November, posted today, show rising demand for the metal in China, India, and Russia. The charts are posted at Bullion Star here:

https://www.bullionstar.com/blogs/gold-market-charts/gold-market-charts-…

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

END

 

People have spent over $1 million buying virtual cats on ethereum blockchain

 Section: 

By Fitz Tepper
Tech Crunch, San Francisco
Sunday, December 3, 2017

Launched a few days ago, CryptoKitties is essentially like a digital version of Pokemon cards but based on the ethereum blockchain. And like most viral sensations that catch on in the tech world, it’s blowing up fast.

Built by Vancouver and San Francisco-based design studio AxiomZen, the game is the latest fad in the world of cryptocurrency and probably soon tech in general.

People are spending a crazy amount of real money on the game. So far about $1.3 million has been transacted, with multiple kittens selling for about 50 ethereum (around $23,000) and the “genesis” kitten being sold for a record 246 ethereum, around $113,000.

This third-party site tracks the largest purchases made to date on the game. And like any good viral sensation prices are rising and fluctuating fast. Right now it will cost you about .03 ethereum, or $12, to buy the least expensive kitten in the game.

So now we have people using ethereum, an asset with arguably little tangible utility, to purchase an asset with unarguably zero tangible utility.

Welcome to the internet in 2017. …

… For the remainder of the report:

https://techcrunch.com/2017/12/03/people-have-spent-over-1m-buying-virtu…

end

 

Bitcoin jumps to $11850 as Governments, regulators and bankers begin to panic.  They would have been better off if gold/silver were not manipulated and then allowed to find its true value

(courtesy zerohedge)

Bitcoin Jumps To New Record High As Governments, Regulators, Bankers Panic

Another dip to be bought as the weekend’s pump’n’dump in Bitcoin has led to yet another new record high this morning at $11,850.

Bitcoin’s market cap is now $200 billion…

This resurgence comes after a week of considerably more active propagandizing from the establishment.

As we noted previously, this week has seen a new group of establishmentarians jump on to the offensive against anti-decentralization, de-control, pro-freedom cryptocurrencies – urging bans, crackdowns, fatwas, taxation, creating their own cryptocurrencies, demanding citizens sell, and outright confiscation (this group includes governments world wide and their mainstream media mouthpieces)

India

India’s finance minister, Arun Jaitley, has clarified that the government does not recognize bitcoin as legal tender.According to the Economic Times, when asked about the government’s plans to regulate the cryptocurrency, Jaitley told reporters, “recommendations are being worked at.” He continued:

“The government’s position is clear, we don’t recognize this as legal currency as of now.”

Concerned over bitcoin’s anonymity and its potential illicit uses, justices issued a notice to the central bank and other agencies asking them to answer a petition on the matter, reports indicated.

Turkey

Turkey has claimed Bitcoin is in fact “not compatible” with Islam due to its government being unable to control it.

In a statement from a meeting of the state Directorate of Religious Affairs (Diyanet), lawmakers said that Bitcoin’s “speculative” nature meant that buying and selling it was inappropriate for Muslims.

“Buying and selling virtual currencies is not compatible with religion at this time because of the fact that their valuation is open to speculation. They can be easily used in illegal activities like money laundering, and they are not under the state’s audit and surveillance,” Euronewstranslates the statement republished by local news outlet Enson Haber.

Diyanet added that the same principles of “unsuitability” in particular applied to Ethereum.

South Korea

Kim Dong-yeon, South Korea’s deputy prime minister and the minister of strategy and finance, revealed earlier this week that the government is investigating various methods to better regulate the local Bitcoin market and tax Bitcoin users accordingly.

While the South Korean government and its local financial authorities are actively discussing the possibility of enforcing a policy on Bitcoin taxation, at a press conference, Deputy Prime Minister Kim stated that the government does not intend to include any Bitcoin taxation policy in 2018’s amendment of the tax law.

Holland

A Dutch news paper urges its citizens to sell their bitcoins patriotically because cryptocurrencies can undermine government and destabilize the economy.

A bitcoin world can destabilize the real economy, a euro is also solidified trust.

First, the bitcoin undermines the government because a lot of transactions are about money laundering and tax avoidance. Another problem is that the profits of new bitcoins that come with it do not benefit the government (as with normal money creation), but are absorbed in heavily environmentally harmful computer power.

Central banks also have less influence on keeping the economy stable. In times of crisis, central banks can, through their influence on ordinary banks, ease credit conditions and encourage people to consume. The bank has no control over the bitcoin economy and an economic crisis can become deeper.

The investor has air in his hands when the bitcoin crashes, but also when the company turns out to produce baked air.

France

Putting money in an empty type of asset is “very, very worrying,” Robert Ophele, chairman of France’s market regulator. Bitcoin has no link to the real economy, Ophele says in a panel discussion at the Paris Europlace Financial Forum, warning that cryptocurrencies are a way to commit cybercrimes, allowing access to illicit goods and services.

If bitcoin was a currency, “it would be a bad one,” Ophel exclaimed, as it poses major challenge for central banks and regulators.

UK

The Telegraph reported just around the time of the big drop, UK “ministers are launching a crackdown on the virtual currency Bitcoin amid growing concern it is being used to launder money and dodge tax.”

Taking a page out of the Chinese playbook, the UK Treasury has announced plans to regulate the Bitcoin that will force traders in so-called crypto-currencies to disclose their identities and report suspicious activity.

According to the Telegraph, while “until now, anybody buying and selling Bitcoins and other  digital currencies have been able to do so anonymously, making it attractive to criminals and tax avoiders. But the Treasury has now said it intends to begin regulating the virtual currency, which has a total value of £145 billion, to bring it in line with rules on anti-money laundering and counter-terrorism financial legislation.

John Mann, a member of the Treasury select committee, said he expected to hold an inquiry into the need for better regulation of Bitcoin and other alternative currencies in the new year.

 

He said: “These new forms of exchange are expanding rapidly and we’ve got to make sure we don’t get left behind – that’s particularly important in terms of money-laundering, terrorism or pure theft.

 

“I’m not convinced that the regulatory authorities are keeping up to speed. I would be surprised if the committee doesn’t have an inquiry next year. “It would be timely to have a proper look at what this means. It may be that we want speed up our use of these kinds of thing in this country, but that makes it all the more important that we don’t have a regulatory lag.”

The proposed changes come amid increasing fears that Bitcoin is being used by gangs to launder the proceeds of crime while also attracting currency speculators – with the value of the coin soaring in the past 12 months.

In other words, the same reason why the IRS is cracking down on Coinbase clients in the US is also why UK and European regulators are joining China in cracking down on capital flight.

United States

The US Senate Judiciary Committee is currently tackling bill S.1241 that aims to criminalize the intentional concealment of ownership or control of a financial account. The bill also would amend the definition of ‘financial account’ and ‘financial institution’ to include digital currencies and digital exchanges, respectively. According to ranking committee member Senator Dianne Feinstein, the proposed bill is needed to modernize existing AML laws.

The bill would amend the definition of ‘financial institution,’ in Section 53412(a) of title 31, United States Code, to include:

“An issuer, redeemer, or cashier of prepaid access devices, digital currency, or any digital exchanger or tumbler of digital currency.”

If passed, the bill would likely have far-reaching effects for users of digital currencies both in the US and abroad.

Earlier reports also indicate that the White House is actively monitoring cryptocurrencies which could only mean more attempts to regulate the world’s first successful decentralized monetary system. With the growing involvement of Wall Street and the ever escalating media attention, it is not surprising that governments are stepping up their attempts to regulate digital currency.

image courtesy of CoinTelegraph

Simply put, Bitcoin must be providing something of value to the ‘people’ if all these establishmentarian status-quo-defenders are panicking.

end

Not a good sign for global growth:  copper plunges to 3 month lows

(courtesy zerohedge)

Dr.Copper Plunges To 3-Month Lows As ‘Global Growth’ Narrative Stumbles

Remember in October, as copper soared incessantly, signaling that the global ‘synchronized’ recovery was well under way and everything was awesome… well it’s not anymore!

Copper is back below $3 as China slowdown concerns start to get priced in…

Additionally, Bloomberg reports that copper inventories held in the London Metal Exchange’s global warehouse network jumped on Tuesday, ending a 14-day streak of drawdowns and suggesting that the seesawing trend in copper stockpiles on the bourse isn’t over yet.

With prices trading at their lowest in 2 months, the spike may dent sentiment further by signaling that there’s still plenty of copper around, despite a recent rebound in demand.

“The metal’s left the exchange, but the spreads haven’t tightened, meaning that it’s very unlikely that it’s due to consumption,” he said. “It’s highly likely to be a stock shift.”

It seems it is time for the speculative fervor in levered futures is about to unwind back to the ‘raw’ commodity reality on the ground…

 

Funny how the mainstream media is not chatting it up about Dr.Copper anymore?

end


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

i) Chinese yuan vs USA dollar/CLOSED UP AT 6.6136 /shanghai bourse CLOSED DOWN AT 5.94 POINTS .18% / HANG SANG CLOSED DOWN 295.48 POINTS OR 1.01%
2. Nikkei closed DOWN 84.78 POINTS OR 0.37% /USA: YEN RISES TO 112.51

3. Europe stocks OPENED MIXED   /USA dollar index RISES TO 93.12/Euro FALLS TO 1.1865

3b Japan 10 year bond yield: RISES TO . +.046/ GOVERNMENT INTERVENTION !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.51/ 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:: 57.18  and Brent: 62.27

3f Gold UP/Yen DOWN

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.332%/Italian 10 yr bond yield UP to 1.733% /SPAIN 10 YR BOND YIELD UP TO 1.423%

3j Greek 10 year bond yield FALLS TO : 4.82?????????????????????

3k Gold at $1275.25 silver at:16.29: 6 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 9/100 in roubles/dollar) 58.70

3m oil into the 57 dollar handle for WTI and 62 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 REVALUATION NORTHBOUND

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 112.51 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 1.1680 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 +0.332%

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 2.376% early this morning. Thirty year rate at 2.7760% /

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

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

Tax Euphoria Fades As Tech Rout Spreads

One look at S&P futures this morning reveals an unchanged market, however it is again the violent sector rotation that is taking place behind the scenes that is the real story, with defensive sectors real estate, retail, food, utilities outperforming while investors continue to bail and book profits on tech stocks after sharp gains since the start of the year. Monday’s Nasdaq rout also spread to European and Asian markets which fall on last minute changes to the tax plan, most notably the retaining of AMT which could prevent companies from making use of intellectual property tax breaks, effectively raising their tax rates. As a reminder, on Monday the Nasdaq fell 1.2% following broad based hedge fund liquidation from the most crowded sector, after tax experts said Senate Republicans unwittingly passed a bill that would mean higher-than-intended taxes for technology firms and other corporations; in sympathy Europe’s Stoxx tech sector index SX8P hit the lowest since late September, down 8% since mid-November

European stocks dipped, trimming the previous session’s sharp gains amid a renewed selloff in tech stocks globally and as weaker industrial metal prices weighed on mining shares which slumped “due to a marked slowdown in China’s metal consumption growth, with market participants foreseeing weaker public infrastructure spending growth extending into 2018,” SP Angel analysts including John Meyer, Simon Beardsmore and Sergey Raevskiy write in note.

The Stoxx 600 is down 0.2%, remaining in a range between its 50-DMA and 200-DMA started in mid-November. The Stoxx tech sector SX8P index falls 0.6%, mirroring a drop in the Nasdaq Monday. As noted above, Europe’s tec sector is down about 8% since a peak in early November, amid a sharp sector rotation out of momentum stocks and into potential winners of the U.S. tax reform. UK’s FTSE 100 outperforms peers amid the weaker pound which had briefly tripped through 1.34 as Brexit talks had been unravelled over disagreements from the DUP in regards to a hard border between Ireland and Northern Ireland. UK grocery retailers are among the top movers in the FTSE 100 after a positive note from Goldman Sachs. Elsewhere, to the downside, health care and material names lag.

Another sharp drop in UK car buying also dampened the mood though analysts said the pound’s drop might only be temporary. “The immediate fallout should be limited as markets have become well versed with the idea that Brexit won’t be solved overnight,” said ING. “We remain constructive on GBP.”

Earlier, benchmark indexes fluctuated in Tokyo, while shares in Hong Kong and Shanghai fell even as a report showed China’s service sector expanded more firmly last month than in October. ASX  200 (-0.2%) and Nikkei 225 (-0.4%) were negative as tech names tracked the weakness of their US counterparts. Hang Seng (-1.0%) was also subdued by tech woes, while Shanghai Comp (-0.2%) traded indecisive after encouraging Caixin Services and Composite PMIs were counterbalanced by continued PBoC inaction, which resulted to net daily drain of CNY 170bln. Finally, 10yr JGBs were lacklustre with demand sapped amid a 10yr auction, which showed weaker demand and lower accepted prices than prior.

In macro, sterling continued to weaken, at one point triggering stops below 1.34, as Brexit talks continued to resolve the Irish border question and retail sales and services data disappointed.

The euro pared losses as indicators showed economic momentum accelerated to its fastest pace in over six years in November. The early blitz of European data included the best Spanish industrial production numbers in 14 months a rebound in Italy’s services sector, a private sector jump in Sweden and signs of a hiring boom in France. Most European government bonds rose, with Greek bonds outperforming after progress on the country’s bailout.

The Australian dollar strengthens to a three-week high on stronger-than-expected retail sales data and after the central bank signaled inflation is set to quicken.  Overnight, the RBA kept the Cash Rate at a record low 1.50% as expected and reiterated it judged steady policy is consistent with growth and inflation targets, and while noting that wage growth remains weak, the RBA said that “some
employers are finding it more difficult to hire workers with the
necessary skills”. Furthermore, the central bank repeated that rising AUD would slow economy and inflation, while it also commented that forecast remains for inflation to increase gradually and that the outlook for non-mining business investment further improved.  RBNZ Acting Governor Spencer said should be cautious on making any recommendations for changes to current policy framework and that there remains broad confidence in effectiveness of current framework. Spencer also commented that weak global inflation is assumed to persist in line with the forecasts of the international institutions, which now puts some risk on the upside for inflation
and interest rates.

Going back to the tax bill and the reason behind the tech rout, Bloomberg explained that as amended, the Senate tax bill would preserve the existing 20 percent corporate alternative minimum tax, a levy designed to stymie companies’ tax avoidance that applies to fewer than 1 percent of U.S. companies under current law. But under the Senate plan, retaining the AMT could prevent companies from making use of planned tax breaks related to intellectual property, to spending on new equipment and to research and development. The AMT may fall hardest on technology and utilities companies — though the snag would apply broadly, experts say. “The fact is, almost everyone who’s a corporate taxpayer is going to be an AMT taxpayer” under the bill, said Bret Wells, a tax law professor at the University of Houston.

In the U.S., House and Senate lawmakers are now poised to begin working on compromise tax-overhaul legislation — a key step in their drive to send a bill with tax cuts for corporations and individuals to President Donald Trump by the end of the year. A global stock rally that has led indexes to record highs has stalled so far this month as investors lock in profits in tech stocks, the year’s best performers, and switch to firms seen benefiting most from a potential reduction in the corporate tax rate such as banks.

“It’s been noticeable that there has been a distinct sector rotation over the last week which is impacting the momentum of the market,” Jim Reid, global head of credit strategy at Deutsche Bank AG in London, wrote in a note to clients.

In bond markets, U.S. Treasuries were still lingering below 2.4%, while the euro zone data and signs the ECB’s bond buying continues to have favorites cut Italian-German spread to its smallest in more than a year.  France and Italy each enjoyed ECB purchases last month that were nearly a billion euros above their ‘capital key’ at 10.439 billion euros and 9.077 billion euros.  “The latest ECB buying data underscores the flexibility of the scheme that tends to benefit the periphery,” said Commerzbank rates strategist Christoph Rieger.

The day’s other significant moves came in metal markets on a retreat. Copper, which is often jumpy around key China data, dropped over 2 percent to a near two-month low. Nickel took a similar hit and zinc dropped 1 percent. That was despite UBS raising its forecast for electric vehicles, which eventually led to an upgrade in the 2020-2021 nickel outlook. However, the Swiss brokerage warned there remained at a vast inventory pile of the metal and its ore.

Crude prices softened further this morning with investors weighing the impact of rising US output in light of last week’s deal between OPEC and Non-OPEC members; WTI extended losses below $58 a barrel before U.S. government data forecast to show crude stockpiles decreased for a third week. Energy newsflow for energy markets remains light with markets looking ahead to an expected decline in inventories in the API report.

Some market players fear the killing of former Yemeni president Ali Abdullah Saleh on Monday may destabilize the impoverished and worn-torn country even further, threatening the safety of a major shipping route through the Strait of Bab al-Mandeb on the Red Sea off the Yemeni coast.

In the precious metals complex, gold prices have held within a tight range with support from a slightly weaker USD. Elsewhere, base metals prices saw some modest softness overnight despite encouraging Chinese data amid touted profit-taking.

Looking at the day ahead, a fairly packed day for data including the final November services and composite PMIs in Europe and the US. Also, in the US, the October trade balance and November ISM non-manufacturing will be out (59 expected).

Market Snapshot

  • S&P 500 futures little changed at 2,637.50
  • MSCI Asia down 0.07% to 169.67
  • MSCI Asia ex Japan down 0.3% to 551.75
  • Nikkei down 0.4% to 22,622.38
  • Topix up 0.2% to 1,790.97
  • Hang Seng Index down 1% to 28,842.80
  • Shanghai Composite down 0.2% to 3,303.68
  • Sensex down 0.2% to 32,815.64
  • Australia S&P/ASX 200 down 0.2% to 5,971.82
  • Kospi up 0.3% to 2,510.12
  • STOXX Europe 600 down 0.2% to 386.80
  • German 10Y yield fell 1.9 bps to 0.325%
  • Euro down 0.1% to $1.1853
  • Italian 10Y yield unchanged at 1.452%
  • Spanish 10Y yield fell 1.1 bps to 1.403%
  • Brent Futures down 0.3% to $62.29/bbl
  • Gold spot little changed at $1,275.93
  • U.S. Dollar Index down 0.1% at 93.13

Top Overnight news

  • One of the last-minute, late-night changes Senate Republicans made to
    their tax-overhaul plan may mean higher taxes for corporations,
    including technology firms, than the bill’s drafters intended, experts
    say.
  • U.S. House votes to go to conference with Senate to reconcile tax bills
  • A divided U.S. Supreme Court let President Donald Trump’s travel ban take full effect while legal challenges go forward, handing him a major victory and suggesting the court ultimately will uphold the restrictions
  • Special prosecutor Robert Mueller zeroed in on President Donald Trump’s business dealings with Deutsche Bank AG as his investigation into alleged Russian meddling in U.S. elections widens
  • Theresa May came closer than ever on Monday to the Brexit deal she’s been working on for months. A last-minute upset over the Irish border left all parties embarrassed and doesn’t bode well for a second run at a breakthrough; no meeting planned between PM May and DUP leader Foster today, according to people familiar
  • European Union finance ministers will discuss the U.S. plan to slash taxes at a meeting in Brussels Tuesday and whether the new plan violates international trade rules
  • Geopolitics: Saudi Arabia says U.S. administration’s intention to recognize Jerusalem as Israel’s capital could have “grave consequences”; Turkish President Erdogan calls Jerusalem a red line
  • RBA keeps rate unchanged; notes non-mining outlook improvement, says inflation likely to pick up as economy strengthens
  • OPEC crude production dropped again in November to a six-month low of 32.47 million barrels a day as Angola led declines
  • The inflation miss is likely to trouble Marvin Goodfriend, President Donald Trump’s latest nominee to serve as a Fed Board governor, say people who know him, and he is the kind of scholar who will seek innovative ways to address it
  • Trump’s legal team says it’s no longer a question of whether Trump’s firing of FBI director James Comey could be considered obstruction of justice; they now say it’s impossible for the president to be charged with that crime at all
  • Brevan Howard AM is readying two funds to bet on a recovery in Greek assets as it branches out to stem an investor exodus
  • European Nov. Service PMIs: Spain 54.4 vs 55.0 est; Italy 4.7 vs 53.2
    est; France 60.4 vs 60.2 est; Germany 54.3 vs 54.9 est; U.K. 53.8 vs
    55.0 est; Markit note wage pressures within Italy, France and German
    service sectors; Eurozone November composite PMI 57.5 vs flash reading 57.5
  • China November Caixin Services PMI 51.9 vs 51.2 prev.
  • U.K. services PMI fell to 53.8 in November, from 55.6 in October as price pressures intensified

Asia equity markets were subdued following a similar close on Wall St where the S&P 500 and DJIA pulled back from intraday record levels and tech underperformed as rotation out of the sector resumed. ASX 200 (-0.2%) and Nikkei 225 (-0.4%) were negative as tech names tracked the weakness of their US counterparts. Hang Seng (-1.0%) was also subdued by tech woes, while Shanghai Comp. (-0.2%) traded indecisive after encouraging Caixin Services and Composite PMIs were counterbalanced by continued PBoC inaction, which resulted to net daily drain of CNY 170bln. Finally, 10yr JGBs were lacklustre with demand sapped amid a 10yr auction, which showed weaker demand and lower accepted prices than prior. In overnight Chinese data, the Chinese Caixin Services PMI (Nov) printed 51.9 vs. Exp. 51.5 (Prev. 51.2); Chinese Caixin Composite PMI (Nov) 51.6 (Prev. 51.0); More notably, the PBoC skipped open market operations again for a third day, for a net daily drain of CNY 170bln. PBoC set CNY mid-point at 6.6113 (Prev. 6.6105).

Top Asian News

  • Foreign Investors Find Handful of Gems Among Shenzhen Stocks
  • China Large Caps Jump as Investors Shy Away From Riskier Stocks
  • India Govt Cash Position Was ’Somewhat Stressed’ in 2Q: Finmin
  • FamilyMart Uny Is Said to Mull Sale of Hong Kong Retail Business
  • Wary China Eyes U.S. Tax Cut as Currency Risk and Reform Chance

European bourses relatively mixed this morning. FTSE 100 outperforms peers amid the weaker pound which had briefly tripped through 1.34 as Brexit talks had been unravelled over disagreements from the DUP in regards to a hard border between Ireland and Northern Ireland. UK grocery retailers are among the top movers in the FTSE 100 after a positive note from Goldman Sachs. Elsewhere, to the downside, health care and material names lag. Amidst ongoing doubts about a Brexit deal in time for the mid-month EU Summit, some evidence of investor caution via the latest 6 year cash offering that was only just twice oversubscribed and came with a 0.3 bp tail. However, the 10 year benchmark future is maintaining the bulk of its recovery gains and holding near the top of its trading parameters as Bunds inch up again to probe a marginal new Eurex high at 163.49. Market contacts flag another upside chart hole to plug up to 163.54, and if follow through buying lifts prices through 163.58 then stops could carry the core German bond up towards 163.73 before any revisit of last Friday’s 163.92 Dec17 contract best. Elsewhere, US Treasuries also grinding high and recouping overnight losses, just.

Top European News

  • BOE Discussed Unexpected Increase in Banks’ Buffers on Brexit
  • Tod’s, Moncler Raised to Buy at Deutsche Bank, LVMH Downgraded

In FX, another ‘deadline’ day failure to secure an EU divorce agreement has pushed the Pound off its lofty pedestal, with Cable now testing support around 1.3380 having rallied to within striking distance of recent peaks (1.3550). From a USD perspective, aside from recovery gains vs Sterling, the Dollar has lost some of its US tax reform bullish momentum, as the Index consolidates on comeback gains in the low 93.000s. USD/JPY back below 113.00 and rangebound between 112.30-70 after light bids noted near the overnight base, while offers are said to be housed from 113.00-10. Elsewhere, a fillip overnight for both antipodeans, as Australian retail sales data beat consensus (RBA unchanged and
not much new in terms of forward guidance) and RBNZ Governor Stevens said that the persistence of low global inflation poses
risks to the upside for prices and rates. AUD/USD back up near 0.7650 and NZD/USD just under 0.6900 having briefly reclaimed
big figure-plus status at one stage. Note, option expiries from 0.7645 to 0.7655-60 (600 and 300 mn approx.), and in the
0.6825/0.6900 strikes (circa 350 and 390 mn respectively).

In currencies, crude prices softer this morning with investors weighing the impact of rising US output in light of last week’s deal between
OPEC and Non-OPEC members. Energy newsflow for energy markets remains light with markets looking ahead to an expected
decline in inventories in the API report. In the precious metals complex, gold prices have held within a tight range with
support from a slightly weaker USD. Elsewhere, base metals prices saw some modest softness overnight despite encouraging
Chinese data amid touted profit-taking.

 

US Event Calendar

  • 8:30am: Trade Balance, est. $47.5b deficit, prior $43.5b deficit
  • 9:45am: Markit US Services PMI, est. 55.2, prior 54.7
  • 9:45am: Markit US Composite PMI, prior 54.6
  • 10am: ISM Non- Manf. Composite, est. 59, prior 60.1

DB’s Jim Reid concludes the overnight wrap

As the S&P 500 (-0.11%) reversed strong gains from the opening (+0.87% at the day’s early highs), it’s been noticeable that there has been a distinct sector rotation over the last week which is impacting the momentum of the market. The NASDAQ fell -1.05% yesterday and more recently, the ‘FANG’ names have sold off -5.61% in last 5 sessions and were -1.83% lower yesterday. Within the S&P, the IT sector fell -1.93% and has fallen -3.9% over the same 5 days and is at c5 week lows. Meanwhile Telecoms (+1.60%) and US Financials (+1.55%) were the star performers yesterday and are now up 7.99% and 6.84% respectively over the last 5 days. For Financials the rally seemed to coincide with incoming Fed Chair Mr Powell confirming his belief that bank regulation shouldn’t go any further and also with momentum building that the tax reform package would pass the senate. The sector is at the highest level since October 2007. Elsewhere, Telcos were seen as big beneficiaries from proposed corporate tax cuts. So there’s a fair bit going on internally in US equities at the moment.

There’s also a fair bit going on with regards to Brexit this week and yesterday was an emotional rollercoaster for everyone involved and those following it. To cut a long story short, hopes built throughout the day that a deal had been reached. However these hopes were dashed c.40 minutes before the European close, most likely because of the Irish question and possibly because of the
minutiae around the ECJ powers. The DUP party seem to be the biggest roadblock as they want Northern Ireland to leave on the same terms as the rest of the UK. This seemed to put pay to the idea that the UK could offer some kind of special case scenario to avoid a hard border. Given the DUP effectively prop up the minority UK government, it’s a fascinating one. Do the Conservative Party play hard ball and gamble on the DUP folding knowing that the alternative is fresh elections and them likely losing their power? Or is there a political compromise coming after posturing and a brief cooling off period? It might be that today’s UK cabinet meeting is a chance for Mrs May to regroup and get the authority to move in either direction. The most likely scenario is we do get a  compromise this week to at least postpone this hard decision on Ireland to allow talks to progress. However it really is getting close to make or break. If no compromise is possible it could be difficult for the current administration to continue and new elections could be around the corner in the NY. So a pivotal week still. The GBPUSD also went on a mini roller coaster ride yesterday, initially up c0.9% and then falling back down c0.9% before inching higher to close broadly flat for the day.

Across the pond, the reconciliation of the House and Senate’s versions of the tax bill is likely to formally start this week once the conference committee members are named. Overnight, the House has named nine Republican and five Democrat lawmakers. However, the Senate will take “a couple of days” to appoint its members because of Senate procedures. Elsewhere, the Richmond Fed has confirmed they had chosen Thomas Barkin from McKinsey & Co as the institutions next President. Mr Barkin is a senior partner and chief risk officer at Mckinsey and is a 30 year veteran at the firm. Bloomberg noted the appointment may be controversial as Mr Barkin has plenty of consulting experience but has no background in monetary policy making. Note the Richmond’s President will
be a FOMC voter in 2018.

Elsewhere, given how topical the low vol environment is, DB’s equity derivative strategy team yesterday published their 2018 outlook called ‘O’VIX Spikes Where Art Thou?’ They find it difficult to argue for a regime change for now with bullish drivers for US equities in place and robust global growth anticipated. They expect equity vol in the US to remain relatively subdued – albeit above  current levels – in Q1 next year and forecast the VIX to average 12-14 during the quarter. That said, they caveat that the market could see spikes in the range of 18-20 in H1, above the high of 16  in 2017. However in their view these spikes would be the cause of higher average volatility, rather than slowing economic growth. That said they do also highlight a few factors that have changed throughout 2017 and point to greater volatility spike potential going forward. This includes; (1) A greater risk of a 5% pullback for the S&P 500 (based on DB’s Binky Chadha’s 2018 US equity outlook) which can be intensified by crowded carry trades, (2) Short vol positioning which has grown and rapid de-risking which would exacerbate a downturn, (3) Leverage continuing to build in the long-running bull market and low levels of cash in retail accounts, (4) Less investor protection to limit losses after the pain trade of burning through options premiums in the rally. You can find the link to the report here.

This morning in Asia, markets are mixed but little changed. The Kospi (+0.21%) and China’s CSI 300 (+0.44%) are both up modestly, while the Hang Seng (-0.45%) and Nikkei (-0.18%) are down as we type. China’s November Caixin composite PMI was slightly above last month at 51.6 (vs. 51) while Japan’s Nikkei composite PMI retreated from October’s five month high to 52.2 (vs. 53.4 previous). Elsewhere, the US Supreme Court has let President Trump’s travel ban to take effect while the case is on appeal. The ban will allow Trump to restrict the entry of those people from countries such as Iran, Syria, Chad, Somalia, Libya, Yemen and North Korea.

Now recapping other markets performance from yesterday. European equities were broadly higher, up 0.5%-1.5% in key markets and largely reversing Friday’s losses. Across the region, the Stoxx 600 (+0.91%), CAC (+1.36%), FTSE (+0.53%) and DAX (+1.53%) all advanced, with the latter up the most for c5 weeks, likely helped by increased prospects of forming the next coalition government. The VIX rose for the sixth consecutive day to 11.68 (+2.2%).

Government bonds sold off modestly, reversing much of the changes on Friday. The UST 10y yields was up 1.1bp, while core European bond yields were up 4-5bp (Bunds +3.8bp; OATs +4.2bp; Gilts +5.4bp) and peripherals were little changed. Turning to currencies, the US dollar index and Sterling gained 0.22% and 0.02% respectively while the Euro weakened 0.25%. In commodities, WTI oil fell 1.53% as some investors were concerned that the higher oil price may induce more supply from US shale assets. Elsewhere, precious metal weakened slightly (Gold -0.35%; Silver -0.74%) and other base metals were little changed (Copper +0.08%; Aluminium -0.31%; Zinc -0.76%). Higher grade Iron ore jumped 3.67% (c24% since 31 Oct) and is up for the fifth consecutive day with prices continuing to benefit from higher demand from Chinese steel mills.

Away from markets and back to Germany. The prospects of forming a new coalition government appear to be higher with the National leadership of the SPD endorsing “open ended” talks with Ms Merkel’s Party to explore “whether and in which form the SPD can support a new federal government” and that we’ll conduct these talks “without prejudging the outcome”.

Staying in politics, House minority leader Ms Pelosi and Senate minority leader Mr Schumer have rescheduled their cancelled meeting and will meet with President Trump on Thursday to discuss the federal spending deal to avoid a partial US government shutdown.

Finally, the latest ECB holdings were released yesterday. Net CSPP purchases last week were €1.4bn and Net PSPP purchases €10.9bn. This left the CSPP/ PSPP ratio at 12.8% last week (14.1% over last 4 weeks vs. 11.5% before QE was trimmed in April 2017). We still think the ECB will likely keep CSPP relatively unscathed when they halve their APP in January.

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 modestly above expectations. The October factory orders fell less than expected, at -0.1% mom (vs. -0.4% expected) and the prior reading was revised upwards by 0.3ppt. Elsewhere, the final reading for the October durable goods orders was also above market at -0.8% mom (vs. -1.1% expected), along with core capital goods orders at 0.3% mom (vs. -0.5% previous), leading to annual growth of 9.3% yoy.

In Europe, the October PPI was a touch higher than expectations at 0.4% mom (vs. 0.3%), but the prior reading was revised down by 0.1ppt. Elsewhere, the Sentix investor confidence for December fell from last month’s decade high to a still solid level of 31.1 (vs. 33.4 expected). Investors appear to be a little more positive about the current situation but a bit less positive about the outlook.

Looking at the day ahead, a fairly packed day for data including the final November services and composite PMIs in Europe and the US. Also, in the US, the October trade balance and November ISM non-manufacturing will be out (59 expected).

3. ASIAN AFFAIRS

i)Late MONDAY night/TUESDAY morning: Shanghai closed DOWN 5.94 points or .18% /Hang Sang CLOSED DOWN 295.48 pts or 1.01% / The Nikkei closed DOWN 84.78 POINTS OR 0.37%/Australia’s all ordinaires CLOSED DOWN 0.22%/Chinese yuan (ONSHORE) closed up at 6.6130/Oil DOWN to 57.18 dollars per barrel for WTI and 62.27 for Brent. Stocks in Europe OPENED ALL MIXED .    ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6136. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6183 //ONSHORE YUAN STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS SLIGHTLY WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT  HAPPY TODAY.(MARKETS GENERALLY  WEAK)

3 a NORTH KOREA/USA

NORTH KOREA/South Korea/Russia

Kim seems ready to raise the stakes before any talks begin. Russia claims that were are on the brink of war on the Korean Peninsula

 

(courtesy zerohedge)

Russia Warns Korean Peninsula “On Brink Of War”

Following the launch of the “largest ever” US-South Korean aerial military drills, and Pyongyang’s latest, most impressive, missile test, the Russian foreign ministry issued a warning that the situation on the Korean Peninsula is on the brink of war,” adding that “Kim seeks to raise the stakes before any talks.”

The US and South Korea launched their largest aerial drills yet on Monday, less than a week after North Korea tested its new Hwasong-15 missile which military observers said has the capacity to strike Washington DC, or nearly any other location in the continental US. The launched shattered nearly two months of calm as many suspected the North’s benefactors in China were making good on their promises to rein in the restive state’s belligerent behavior.

As we reported Sunday, the annual US-South Korean drills, called Vigilant Ace, will run until Friday. Six F-22 Raptor stealth fighters will be deployed among the more than 230 aircraft taking part. The North has condemned the exercises as yet another provocation.

F-35 fighters will also participate in the drill, which will involve the largest number of 5th generation fighters, according to a South Korea-based US Air Force spokesman quoted by Reuters.

Around 12,000 US troops, including the Marines and Navy, will join South Korean troops. Aircraft participating in the drills will take off from eight different US and South Korean military installations.

And now Interfax reports that, amid concerns that war is inevitable, the Russian foreign ministry has offered to facilitate dialogue between North Korea and The US:

We have open channels of communication with DPRK, ready to use our influence on Pyongyang.

 

Washington needs to work out security assurances for DPRK to get Pyongyang back to the negotiating table.

 

Russia assigns blame equally for the rising tensions to Korea’s nuclear missile tests and joint US-South Korea drills.

In what seems like a signal of hope:

Russia says that Pyongyang is cautiously optimstic about the idea of suspending its nuclear missile tests for 2 months in the absence of US-Seoul maneuvers (on and off the peninsula).

While Rex Tillerson has signalled his willingness to ‘negotiate’, Trump continues to play ‘bad cop’, but this does seem like an opportunity, brokered by The Russians, no matter how hard The Deep State wants armageddon…

In Washington, U.S. State Department spokeswoman Katina Adams said the Trump administration still wanted a peaceful, diplomatic solution to the nuclear and missile threat from Pyongyang, but told Reuters:

“(North Korea) has shown through its actions that it is not interested in talks.

 

We must remain focused on increasing the costs for Pyongyang to continue to advance its WMD programs.”

However, Russia did conclude by warning that“Kim seeks to raise the stakes before any talks

end

 

b) REPORT ON JAPAN

c) REPORT ON CHINA

 

HNA is one of the big four Chinese conglomerates.  Does a 9% coupon with one yr expiry signalling a systemic risk?

 

(courtesy zerohedge)

China: Systemic Risk Surges As HNA’s High Coupon Borrowing Binge Accelerates

In early November 2017, we returned to one of our favourite subjects, systemic risk in China related to its big four highly-indebted conglomerates, HNA, Anbang, Evergrande and Dalian Wanda. In particular, we asked whether the extortionately high coupon of 9% on an HNA dollar bond issue, with less than one year to maturity, marked the beginning of China’s Minsky moment? As we noted at the time, HNA has $28 billion of short-term debt maturing before the end of June 2018, much of it accumulated during an acquisition binge over the last two years, which has seen it become a major shareholder in companies such as Deutsche Bank AG and Hilton Worldwide Holdings.

Speaking to Bloomberg at the time, Warut Promboon, managing partner at credit research firm, Bondcritic, noted…

“Nine percent is really high for one year. Basically, it tells you that the worry is real.”

In a sign that HNA is under pressure, both from the Chinese government and its creditors, CEO Adam Tan announced last week that the company was reversing its previous strategy. From Reuters.

HNA Group CEO Adam Tan said the acquisitive company is making adjustments to conform with national policies, and has sold some investments and real estate projects to improve its liquidity, domestic media reported on Tuesday.

 

Tan said the company would not invest in those areas not backed by the government, while supporting Beijing’s Belt and Road initiative, the 21st Century Herald reported. “Companies cannot invest chaotically overseas, because chaotic investment creates trouble,” Tan was quoted in a separate article by the media portal Sina.com.

HNA is already in trouble, the question is how much? The group is planning an IPO of Gategroup Holding AG, an airline catering company it only purchased in 2016 for $1.5 billion, next year. However, its interest expenses have been rising rapidly and paying 9% coupons is only going to make it worse.

Meanwhile, it continues to tap bond markets at high rates, this time paying 8.2% for an issue by a subsidiary of Hainan Airlines, the core business from which HNA developed. According to Bloombergunits of HNA Group Co. are stepping up fundraising in the local bond market even as borrowing costs soar, adding to concerns about the Chinese conglomerate’s debt burden. Yunnan Lucky Air Co., a unit of Hainan Airlines Holding Co. — HNA’s flag carrier — sold a 270-day yuan bond to yield 8.2 percent last week, the highest coupon rate ever for the Yunnan airline. Tianjin Airlines Co., another subsidiary of Hainan Airlines, issued similar-maturity notes at the highest coupon rate in five years in November.

As Bloomberg notes, while other Chinese companies have cancelled bond issues, HNA doesn’t have that luxury.

While surging onshore bond yields last month forced Chinese companies to cancel the most bond offerings since April, HNA’s units didn’t slow their pace of financing. They revived debt sales from November, following a lull after news emerged in June about a crackdown by China’s banking regulator. The accelerated fundraising suggests a need for money and may hurt the conglomerate’s credit profile, according to credit research firm Bondcritic Ltd.

“They just keep piling on debt,” said Warut Promboon, managing partner at Bondcritic. “It’s not going to work.”

 

Two calls to Hainan Airlines’ public relations officers weren’t answered. There were no replies to questions sent via text messages.

The flood of issues from constituents of the HNA group is expected to continue, assuming that bond markets are amenable.

Hainan Airlines said last week that it is planning to sell 1 billion yuan of perpetual bonds on Dec. 6. That would be its third note sale in the local Chinese market in a month, according to Bloomberg-compiled data. In the carrier’s most recent sale of onshore securities last month, the company, which has top ratings from local credit assessors, issued local bonds at yields equivalent to junk notes in the nation.

 

Another HNA unit, Sanya Phoenix International Airport Co., is planning its third bond sale in three weeks on Monday, according to a statement on Nov. 29.

During his presentation last week, CEO Adam Tan commented that “Each of our business groups has its own cash flow management”. However, if Hainan Airlines is paying junk rates despite its “top” local ratings, it suggests that creditors are assessing risk from a group perspective…and unfavourably. Last week, Bloomberg noted that S&P cuts the HNA Group’s credit rating to five times below junk, citing its significant debt maturities, rising borrowing costs and proposed acquisition of New Zealand’s UDC Finance (will it ever learn).

S&P said on Wednesday it lowered HNA’s credit profile by one notch to b, or five levels below investment grade, from b+. The change was disclosed in a report by S&P on New Zealand’s UDC Finance Ltd., which HNA is seeking to buy.

 

“HNA Group has significant debt maturities over the next several years and its funding costs are meaningfully higher than that of a year ago,” Andrew Mayes and Sharad Jain, analysts at S&P, wrote in their report. “We will closely monitor HNA Group’s access to capital markets and funding costs to determine whether additional actions are necessary.”

 

As to Australia & New Zealand Banking Group Ltd.’s UDC Finance, S&P said it may cut the company’s long-term debt rating by four notches to a junk level of BB- from BBB if its sale to HNA is completed. The deal, announced in January, has yet to be completed pending approval from New Zealand’s overseas investment approvals board.

It’s possible that HNA is approaching the “catastrophic margin call”, from its practice of pledging its own shares and those of its investments, which we first postulated in July 2017 in “A Reverse Rollup From Hell’: China’s ‘Boldest Dealmaker’ Faces Margin Call Disintegration”. From our post.

…while most Chinese companies pledged “only” their own shares to get loans, a handful of companies also used shares of the acquired companies as pledged collateral. This is precisely what HNA Group did, which now faces not only growing regulatory scrutiny from Beijing that threatens to spook bond investors and raise HNA’s financing costs, but also send its shares plunging as holders are forced to liquidate even as most of the shares pledged to fund its buying spree are already declining, accelerating its demise. And, in a scenario that can only be dubbed as a “reverse rollup from hell” – on steroids and margin – one that would make even Valeant blush and snicker, if the value of its collateral, i.e. stock price, falls enough, HNA will soon be forced to sell its holdings to repay debt, thereby resulting in the disintegration of the company.

HNA is a private company, hence a detailed breakdown of its borrowing position and its share pledges is not available. However, the circumstantial evidence remains highly negative and the systemic risk it poses for China is likely rising not falling.

4. EUROPEAN AFFAIRS

5. RUSSIA AND MIDDLE EASTERN AFFAIRS

Turkey/Saudi Arabia/Israel/USA

Both Turkey and Saudi Arabia warn the USA not to recognize Jerusalem as the Capital of Israel.  They state that that would be a “red line’ and have “catastrophic consequences”

(courtesy zerohedge)

6 .GLOBAL ISSUES

 

Another issue we should be concerned about: Antarctic volcano warning which could enircle the globe with ash and provide worldwide health problems

 

(courtesy Mac Slavo)

7.OIL ISSUES

 

Another massive oil and gasoline inventory build

 

(courtesy zerohedge)

WTI/RBOB Sink On Massive Product Inventory Builds

A relatively stable day in energy markets as many other markets turmoiled, but as tonight’s data hit, both WTI/RBOB kneejerked lowerafter API showed massive product inventory builds (despite a big crude draw).

 

API

  • Crude -5.48mm (-2.5mm exp)
  • Cushing -1.95mm (-2.4mm exp)
  • Gasoline +9.196mm – biggest build since Jan 2016
  • Distillates +4.259mm – biggest build since Jul 2017

After last week’s surprise product builds and huge destocking at Cushing, expectations are high for more of the latter, but Cushing’s Draw was less than expeted and the massive builds in Gasoline and Distillates was shocking…

 

The initial rection to the API data was both WTI and RBOB kneejerked lower…

8. EMERGING MARKET

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

Euro/USA 1.1865 DOWN .0003/ 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 MIXED 

USA/JAPAN YEN 112.51 UP 0.014(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 1.3404 DOWN .0069 (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 1.2641 DOWN .0035(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS TUESDAY morning in Europe, the Euro FELL by 3 basis points, trading now ABOVE the important 1.08 level RISING to 1.1865; / Last night the Shanghai composite CLOSED DOWN 5.94 POINTS OR .18% / Hang Sang CLOSED DOWN 295.48 POINTS OR 1.01% /AUSTRALIA CLOSED DOWN 0.22% / EUROPEAN BOURSES OPENED ALL MIXED 

The NIKKEI: this MONDAY morning CLOSED DOWN 84.78 POINTS OR 0.37%

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

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 295.48 POINTS OR 1.01% / SHANGHAI CLOSED DOWN 5.94 POINTS OR .18% /Australia BOURSE CLOSED DOWN 0.22% /Nikkei (Japan)CLOSED DOWN 84.78 POINTS OR 0.37%

INDIA’S SENSEX IN THE RED

Gold very early morning trading: 1275.15

silver:$16.27

Early TUESDAY morning USA 10 year bond yield: 2.377% !!! UP 0 IN POINTS from FRIDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%. (POLICY FED ERROR)

The 30 yr bond yield 2.7760 UP 1 IN BASIS POINTS from MONDAY night. (POLICY FED ERROR)

USA dollar index early TUESDAY morning: 93.12 DOWN 7 CENT(S) from MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing TUESDAY NUMBERS \1 PM

Portuguese 10 year bond yield: 1.885% DOWN 2 in basis point(s) yield from MONDAY

JAPANESE BOND YIELD: +.046% UP 1/2  in basis point yield from MONDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.413% DOWN 0  IN basis point yield from MONDAY

ITALIAN 10 YR BOND YIELD: 1.706 DOWN 1 POINTS in basis point yield from MONDAY

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

GERMAN 10 YR BOND YIELD: +.320% DOWN 2 IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1819 DOWN.0049 (Euro DOWN 49 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 112.72 UP 0.228(Yen DOWN 23 basis points/

Great Britain/USA 1.3450 DOWN 0.0023( POUND DOWN 23 BASIS POINTS)

USA/Canada 1.2689 UP  .0013 Canadian dollar DOWN 13 Basis points AS OIL FELL TO $57,48

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This afternoon, the Euro was DOWN 49 to trade at 1.1819

The Yen fell to 112.82 for a LOSS of 23 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND FELL BY 23 basis points, trading at 1.3450/

The Canadian dollar FELL by 13 basis points to 1.2698/ WITH WTI OIL FALLING TO : $57.48

The USA/Yuan closed AT 6.6193
the 10 yr Japanese bond yield closed at +.046% UP 1/2  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield UP  5 IN basis points from MONDAY at 2.367% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.747 DOWN 4  in basis points on the day /

Your closing USA dollar index, 93.37 UP 18 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 TUESDAY: 1:00 PM EST

London: CLOSED DOWN 11.47 POINTS OR 0.16%
German Dax :CLOSED DOWN 10.06 POINTS OR 0.08%
Paris Cac CLOSED DOWN 13.76 POINTS OR 0.26%
Spain IBEX CLOSED UP 2.70 POINTS OR 0.03%

Italian MIB: CLOSED UP 54.20 POINTS OR 0.24%

The Dow closed DOWN109.41 POINTS OR 0.45%

NASDAQ WAS closed DOWN 13.15 Points OR 0.19% 4.00 PM EST

WTI Oil price; 57.48 1:00 pm;

Brent Oil: 62.68 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 58.71 DOWN 8/100 ROUBLES/DOLLAR (ROUBLE HIGHER BY 8 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO +.320% 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:$57.45

BRENT: $62.63

USA 10 YR BOND YIELD: 2.350% (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 2.732%

EURO/USA DOLLAR CROSS: 1.1826 DOWN .0041

USA/JAPANESE YEN:112.58 UP 0.083

USA DOLLAR INDEX: 93.33 UP 14 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3442 : DOWN 30 POINTS FROM LAST NIGHT

Canadian dollar: 1.2695 DOWN 18 BASIS pts

German 10 yr bond yield at 5 pm: +0.320%

END

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

TRADING IN GRAPH FORM FOR THE DAY

Copper Crash And Yield Curve Carnage As Tech, Trannies, & TBTFs All Tumble

Today was a day in the upside-down: Banks underperformed Tech; High tax underperformed Low tax; Momo outperformed Value; Nasdaq outperformed S&P; and VIX down with stocks down…

 

While Nasdaq (green) outperformed on the day, and was bid at the open, Trannies (blue) underperformed; note that as Europe closed, everything rolled over….

 

Only Trannies are holding on to gains post-Tax vote, post-Ross-Rout-Retraction…

 

For the first time in 7 days, high-tax companies underperformed low-tax compaies…

 

Momentum outperformed value for the first time in 6 days…

 

The Tech sector clung to green on the day as Financials leaked lower…

 

While tech outperformed banks, they all rolled over after the European close…

 

High yield bond prices have now closed below the 200-day moving average for 20 days straight (the longest run since April 2016)…

 

Treasury yields were lower across the board today as the long-end continues to outperform…10Y and 30Y now lower in yield since Friday…

 

The yield curve carnage is accelerating…

 

The Dollar Index gained on the day but reamins in a tight range for the last week…

 

Gold and Silver were slammed early on once again (tumbling to 4- and 5-month lows respectively)…

 

Notably gold was slammed even as the dollar index wasnt moving significantly…

 

But Copper was the biggest news  – plunging 4.5% back to 2 month lows (biggest drop since Jan 2015). WTI managed to hold gains ahead of tonight’s API data…

 

Finally, Bitcoin surged  to a new record high today (at $11,850) – up 50% since Square’s announcement (while SQ is down 20%)…

 

end

 

Trading today:

 

not good, a collapsing yield curve!

(courtesy zeorhedge)

The Yield Curve Just Keeps Collapsing…

“probably nothing…”

The Treasury yield curve continues to plumb new cycle lows with 2s30s now below 94bps and 5s30s testing below 60bps…

 

If the tax deal is so ‘growthy’ – why is the yield curve signaling degrowth?

Who’s right about growth? Bonds or Stocks?

end

 

Generally it is the Service sector that is the stronger of the two PMIs.  Today Service PMI is hit showing surging costs and lower growth.

 

(courtesy zerohedge)

Stagflation Looms As PMI Shows Surging Costs And Sinking Growth

Following Manufacturing’s drop, the US Services sector PMI disappointed in November, falling to its lowest since June (as business confidence tumbled to its weakest since February). Average selling prices soared as growth slumped setting the scene for a stagflationary future. ISM Services confirmed this weakness, tumbling to 3-month lows.

Of course, between Markit and ISM, there has been at least something to hang some hope on but in November they appeared to line up with PMI Manufacturing and Services (5mo low) sinking (upper pane) and ISM Manufacturing (4mo low) and Services (3mo low) also tumbled…

 

Under the covers, ISM shows busines activity, new orders, and employment weaker…

Non-seaonally-adjusted new orders tumbled…

But the respondents appear confident still…but are showing some signs that the trajectory is slowing…

  • “Domestic business is strong, with positive growth indicators for 2018 from both internal sources and client feedback.” (Management of Companies & Support Services)
  • “Construction labor continues to be constrained in the West.” (Construction)
  • “Steady; no material changes.” (Finance & Insurance)
  • “We continue to struggle with understanding the [potential] changes to the Affordable Care Act, and are trying to be flexible in how we respond. Also, Hurricane Maria has affected some of our pharmaceutical supplies.” (Health Care & Social Assistance)
  • “Mixed bag of goods for November 2017. Typical seasonal increases for specific braising cuts of beef as the holidays approach. Some volatility on produce items such as brussel sprouts. Expect cream to spike due to holiday season.” (Accommodation & Food Services)
  • “Business seems to be leveling off. Attribute this to the holiday season that is approaching.” (Professional, Scientific & Technical Services)
  • “Business is strong, but not as strong as Q3.” (Retail Trade)
  • “Bookings would suggest a strong run to the end of the year.” (Wholesale Trade)

Commenting on the PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

The slowest growth of service sector business activity since June, alongside a slight dip in the pace of manufacturing expansion, means the November PMI surveys registered a modest cooling in the overall rate of business growth.

 

“The surveys’ employment indices are meanwhile pointing to solid non-farm payroll growth of circa 200,000 as companies continue to take on staff in encouraging numbers to meet rising order books.

 

Disappointingly, optimism about the year ahead deteriorated as companies grew increasingly cautious about the outlook for 2018, suggesting risk aversion may start to rise, which could hit hiring and investment. However, for now, businesses generally remain in expansion mode and the upturn shows few signs of losing momentum to any significant extent.

 

“In terms of prices, the upturn continues to show signs of gradually feeding through to higher inflationary pressure. Average selling prices for goods and services showed one of the largest increases recorded over the past four years, linked to rising cost pressures.”

Williamson concludes, mid-way through the fourth quarter, the surveys are still pointing to a reasonable GDP growth rate of approximately 2.5%…

 

 

end

 

With the uSA dollar faltering, this should have eased on the trade deficit.  It did not as the deficit is now at 5 yr highs

 

(courtesy zerohedge)

US Trade Deficit Surges Near Five Year High Despite Sliding Dollar

The US trade balance surprisingly blew out in October, increasing from $44.9 billion to $48.7 billionas unexpectedly exports decreased and imports increased despite the ongoing dollar weakness, missing estimates of $47.5 billion. October’s number was tied for the widest deficit going back to early 2012…

… and marks a stark divergence with the recent dollar weakness which would suggest an improvement in US trade data.

Broken down by components, the goods deficit increased $3.8 billion in October to $69.1 billion. The services surplus decreased less than $0.1 billion in October to $20.3 billion.

Exports of goods and services decreased less than $0.1 billion, or less than 0.1 percent, in October to $195.9 billion. Exports of goods decreased $0.3 billion and exports of services increased $0.3 billion.

  • The decrease in exports of goods mostly reflected decreases in foods, feeds, and beverages ($1.3 billion) and in capital goods ($1.2 billion). An increase in industrial supplies and materials ($2.6 billion) partly offset the decreases.
  • The increase in exports of services mostly reflected increases in financial services ($0.1 billion) and in other business services ($0.1 billion), which includes research and development services; professional and management services; and technical, trade?related, and other services.

Imports of goods and services increased $3.8 billion, or 1.6 percent, in October to $244.6 billion. Imports of goods increased $3.5 billion and imports of services increased $0.3 billion.

  • The increase in imports of goods mostly reflected increases in industrial supplies and materials ($1.8 billion), in other goods ($1.1 billion), and in consumer goods ($0.8 billion).
  • The increase in imports of services mostly reflected an increase in transport ($0.3 billion).

Broken down by region, the October figures show surpluses, in billions of dollars, with South and Central America ($3.9), Hong Kong ($2.3), Brazil ($1.1), Singapore ($0.7), Saudi Arabia ($0.3), and
United Kingdom ($0.2). Deficits were recorded, in billions of dollars, with China ($31.9), European Union ($12.0), Mexico ($6.0), Japan ($5.9), Germany ($5.3), Italy ($2.7), South Korea ($2.7), India ($2.1), Canada ($1.9), OPEC ($1.6), France ($1.6), and Taiwan ($1.6).

  • The deficit with China increased $2.1 billion to $31.9 billion in October. Exports decreased $0.8 billion to $10.6 billion and imports increased $1.2 billion to $42.5 billion.
  • The deficit with the European Union decreased $2.5 billion to $12.0 billion in October. Exports increased $1.4 billion to $25.0 billion and imports decreased $1.1 billion to $37.0 billion
  • The balance with members of OPEC shifted from a surplus of $0.6 billion to a deficit of $1.6 billion in October. Exports decreased $0.9 billion to $4.3 billion and imports increased $1.3 billion to $5.9 billion.

Needless to say, Trump who has repeatedly voiced his displeasure with the soaring US trade deficit, will not be happy, and may pressure the Fed to weaken the dollar even further to boost US exports.

As for the immediate impact on US economic data, expect this number to subtract approximately 0.3% from Q4 GDP, pushing the consensus estimate into the lower 2% range.

end

 

My goodness!! it looks like the Mueller investigation is deepening after it has been learned that 4 months ago Deutsche bank received a subpoena for Trump and family bank accounts

 

(courtesy zerohedge)

Mueller Goes After Trump’s Bank Accounts, Subpoenas Deutsche Bank

Special Counsel Robert Mueller has subpoenaed Deutsche Bank, demanding that it disclose details of transactions and documents on accounts held by President Trump and members of his family as the “Russian collusion” probe now turns its attention to Trump’s bank accounts. According to Handelsblatt, which first reported the news, the bank received the subpoena several weeks ago. Trump has had a banking relationship with Deutsche Bank dating back nearly two decades and the German lender’s $300 million loan accounts for nearly half of his outstanding debt (based on a July 2016 analysis by Bloomberg). Trump’s debt to Deutsche includes $170m relating to a Washington hotel. 

The media is taking the Deutsche Bank news as a sign that Mueller’s investigation into alleged Russian interference in the 2016 alleged campaign is “deepening”. However, it was clear that a subpoena was coming more than four months ago (see below) and, besides Michael Flynn, Mueller’s investigation has included interviews with three other former Trump aides recently, former Chief of Staff Reince Priebus, former spokesman Sean Spicer and National Security Council chief of staff Keith Kellogg, according to people familiar with the investigation.

As Bloomberg adds, “the news comes as Mueller’s investigation appears to be entering a new phase, with Trump’s former national security adviser, Michael Flynn, pleading guilty Friday to lying to FBI agents, becoming the fourth associate of the president ensnared by Mueller’s probe. More significantly, he also is providing details to Mueller about the Trump campaign’s approach to Flynn’s controversial meeting with a Russian envoy during the presidential transition.”

In June 2017, Deutsche Bank cited privacy laws for rejecting a request from US lawmakers to provide details of its relationship with Trump. The bank said that releasing information on Trump was illegal unless it received a formal request – hence the subpoena. The goal of the top Democrat on the House Financial Services Committee, Maxine Waters, had been to discover whether Russian entities had provided guarantees – or were connected in any way – to the loans to Trump or his family. According to The Guardian newspaper, Deutsche had conducted an internal investigation but.

The internal review found no evidence of any Russia link, but Deutsche Bank is coming under pressure to appoint an external and independent auditor to review its business relationship with President Trump.

A Deutsche Bank executive told Bloomberg that management was prepared to share information on its business dealings with Trump in the hope that it will end the series of inquiries. The news of the subpoena was expected.

In our July post, “Deutsche Bank Faces DOJ Subpoena Over Trump-Russia Probe”, we noted the following:

Deutsche’s relationship with Trump and questions about hundreds of millions in loans have dogged the German bank and the White House for months, and now, ‘according to sources’ reported by The Guardian, Robert Mueller’s team and Trump’s bankers have established informal contacts and formal requests for information are forthcoming.

According to an analysis by Bloomberg, Trump now owes Deutsche, his biggest creditor, around $300m. He has four large mortgages, all issued by Deutsche’s private bank. The loans are guaranteed against the president’s properties: a new deluxe hotel in Washington DC’s old post office building, just around the corner from the White House; his Chicago tower hotel; and the Trump National Doral Miami resort.

The Guardian reports that executives inside Deutsche Bank, Donald Trump’s personal bankers, are expecting that the bank will soon be receiving subpoenas or other requests for information from Robert Mueller, the special counsel who is investigating possible collusion between the Kremlin and the Trump campaign.

As we further noted, other financial institutions with links to the Trump family were likely to receive requests for information from Mueller and his team. One of these is Bank of America, so we might see more news on subpoenas like the one issued to Deutsche Bank. In the meantime, the “balanced” media reporting continues. Here is Eugene Robinson, an opinion writer for the Washington Post, writing yesterday.

We know that President Trump and his campaign either colluded with the Russian effort to undermine U.S. democracy or tried mightily to do so. We know that Trump has apparently obstructed justice to try to halt investigation into what happened. What we don’t know is whether Congress, in the end, will do its sworn duty to protect the Constitution.

We also don’t know what else special counsel Robert S. Mueller III might have discovered, especially about the Trump family’s international financial dealings. Or what Mueller might be learning from Trump’s former national security adviser, Michael Flynn, who pleaded guilty Friday to lying to the FBI and is cooperating with investigators. Or how far Trump, who is increasingly frantic, might yet go to squash the Mueller probe.

Robinson serves as chair for the Pulitzer Prize board, so it must be accurate.

Unbelievable!! more anti trump messages reportedly sent by FBI members and they are unbiased?
They should all be removed and a new team sent in
(courtesy zerohedge)

WSJ Editorial Board Calls On “Too Conflicted” Mueller To Step Down

Via The Wall Street Journal Editorial Board,

The special counsel is stonewalling Congress and protecting the FBI…

Donald Trump is his own worst enemy, as his many ill-advised tweets on the weekend about Michael Flynn, the FBI and Robert Mueller’s Russia probe demonstrate. But that doesn’t mean that Mr. Mueller and the Federal Bureau of Investigation deserve a pass about their motives and methods, as new information raises troubling questions.

The Washington Post and the New York Times reported Saturday that a lead FBI investigator on the Mueller probe, Peter Strzok, was demoted this summer after it was discovered he’d sent anti-Trump texts to a mistress. As troubling, Mr. Mueller and the Justice Department kept this information from House investigators, despite Intelligence Committee subpoenas that would have exposed those texts. They also refused to answer questions about Mr. Strzok’s dismissal and refused to make him available for an interview.

The news about Mr. Strzok leaked only when the Justice Department concluded it couldn’t hold out any longer, and the stories were full of spin that praised Mr. Mueller for acting “swiftly” to remove the agent. Only after these stories ran did Justice agree on Saturday to make Mr. Strzok available to the House.

This is all the more notable because Mr. Strzok was a chief lieutenant to former FBI Director James Comey and played a lead role investigating alleged coordination between the Trump campaign and Russia during the 2016 election.

Mr. Mueller then gave him a top role in his special-counsel probe. And before all this Mr. Strzok led the investigation into Hillary Clinton’s emails and sat in on the interview she gave to the FBI shortly before Mr. Comey publicly exonerated her in violation of Justice Department practice.

Oh, and the woman with whom he supposedly exchanged anti-Trump texts, FBI lawyer Lisa Page, worked for both Mr. Mueller and deputy FBI director Andrew McCabe, who was accused of a conflict of interest in the Clinton probe when it came out that Clinton allies had donated to the political campaign of Mr. McCabe’s wife. The texts haven’t been publicly released, but it’s fair to assume their anti-Trump bias must be clear for Mr. Mueller to reassign such a senior agent.

There is no justification for withholding all of this from Congress, which is also investigating Russian influence and has constitutional oversight authority. Justice and the FBI have continued to defy legal subpoenas for documents pertaining to both surveillance warrants and the infamous Steele dossier that was financed by the Clinton campaign and relied on anonymous Russian sources.

While there is no evidence so far of Trump-Russia collusion, House investigators have turned up enough material to suggest that anti-Trump motives may have driven Mr. Comey’s FBI investigation.

The public has a right to know whether the Steele dossier inspired the Comey probe, and whether it led to intrusive government eavesdropping on campaign satellites such as Carter Page.

All of this reinforces our doubts about Mr. Mueller’s ability to conduct a fair and credible probe of the FBI’s considerable part in the Russia-Trump drama. Mr. Mueller ran the bureau for 12 years and is fast friends with Mr. Comey, whose firing by Mr. Trump triggered his appointment as special counsel. The reluctance to cooperate with a congressional inquiry compounds doubts related to this clear conflict of interest.

*  *  *

Mr. Mueller’s media protectorate argues that anyone critical of the special counsel is trying to cover for Mr. Trump.

But the alleged Trump-Russia ties are the subject of numerous probes – Mr. Mueller’s, and those of various committees in the House and Senate. If there is any evidence of collusion, Democrats and Mr. Mueller’s agents will make sure it is spread far and wide.

Yet none of this means the public shouldn’t also know if, and how, America’s most powerful law-enforcement agency was influenced by Russia or partisan U.S. actors. All the more so given Mr. Comey’s extraordinary intervention in the 2016 campaign, which Mrs. Clinton keeps saying turned the election against her. The history of the FBI is hardly without taint.

Deputy Attorney General Rod Rosenstein, who appointed Mr. Mueller, is also playing an increasingly questionable role in resisting congressional oversight. Justice has floated multiple reasons for ignoring House subpoenas, none of them persuasive.

First it claimed cooperation would hurt the Mueller probe, but his prosecutions are proceeding apace. Then Justice claimed that providing House investigators with classified material could hurt security or sources. But House Intelligence Chairman Devin Nunes has as broad a security clearance as nearly anyone in government. Recently Justice said it can’t interfere with a probe by the Justice Department Inspector General—as if an IG trumps congressional oversight.

Mr. Nunes is understandably furious at the Strzok news, on top of the other stonewalling. He asked Justice to meet the rest of his committee’s demands by close of business Monday, and if it refuses Congress needs to pursue contempt citations against Mr. Rosenstein and new FBI Director Christopher Wray.

The latest news supports our view that Mr. Mueller is too conflicted to investigate the FBI and should step down in favor of someone more credible. The investigation would surely continue, though perhaps with someone who doesn’t think his job includes protecting the FBI and Mr. Comey from answering questions about their role in the 2016 election.

My goodness! that did not take long!! Now top Senate Republicans now want to repeal AMT
(courtesy zero hedge)

In Dramatic Reversal, Top Senate Republicans Now Want To Repeal AMT They Passed Just Days Ago

When we laid out the key highlights of the Senate tax plan passed just before 2am on Saturday morning, we made one thing clear: nobody had read the massive 479-page bill which had several pages with handwritten revisions in the margin.

I was just handed a 479-page tax bill a few hours before the vote. One page literally has hand scribbled policy changes on it that can’t be read. This is Washington, D.C. at its worst. Montanans deserve so much better.

Now, three days after the bill’s passage and with tech stocks slumping around the globe after at least a few tax experts noticed “The Alternative Minimum Tax Bombshell“, or the retention of the controversial corporate AMT clause which “imperils GOP promises of business growth and more hiring,” republicans appear to have finally figured out that rushing to pass the biggest tax overhaul since Ronald Reagan in the deep of the night wasn’t the best idea, and according to Bloomberg, the chief Senate tax writer – the person who put together the bill that was passed 51-49 in the first place – wants AMT repealed.

According to Bloomberg, in a stunning reversal, two influential GOP senators – Senator Rob Portman of Ohio, one of the chamber’s main tax writers, along with Senator Orrin Hatch, chairman of the tax-writing Senate Finance Committee – said their preference is to repeal the corporate AMT.

“I’m not a big AMT fan,” said Portman, who also wants to repeal the individual AMT. “I’d like to end up there, but we’ve got to do the back and forth with the House.” Hatch added: “I’d like to get rid of it.”

Well, it was your bill, and you added the AMT: how did that happen?  We don’t know – perhaps the Goldman Sachs ghostwriter of the tax bill was unaware of that one small detail and left it in. As previously discussed, in a last-minute change, the Senate bill preserved the corporate AMT at its current 20 percent rate, along with a modified version of the individual AMT. The House legislation repeals both levies.

The result has been a swift and sharp slide in tech stocks, which is probably what clued in the Senate that it is about time to read what they had actually passed.

Another GOP member, Senator David Perdue of Georgia, said he too would like to see the AMT eliminated for corporations and individuals by the House-Senate conference committee that’s expected to begin working out compromise legislation this week.

Of course, the simplest reason for keeping the AMT is because the bill would not stay under the $1.5 trillion deficit-boosting threshold if it has been eliminated:

“We couldn’t go all the way because we needed the revenue,” Perdue said, referring to the corporate AMT. Repealing it would have cost about $40 billion over a decade — which shows just how close tax writers were to hitting the $1.5 trillion deficit limit set by their budget resolution. Perdue added that his top priority is setting the corporate rate at 20 percent.

President Donald Trump endorsed the work of the conference committee early Tuesday afternoon, calling the panel a “mixer,” where lawmakers will pick the good things and get rid of the things they don’t like. The result will be “something that is perfecto,” Trump said.

Maybe not. As Bloomberg concludes, opinion polls suggest a majority of voters aren’t happy with what they’ve seen, with 53% of U.S. voters disapproving of the Republican overhaul plan, and 64% say it favors the wealthy, according to a Quinnipiac University poll released Tuesday. Well, maybe not the wealthy, but it certainly favors corporations at the expense of America’s middle class.

We may see a government shutdown over the “dreamers” fate
(courtesy zerohedge)

Well that about does it for today

I will see you WEDNESDAY night

HARVEY

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