APRIL 26/GOLD AND SILVER STILL UNDER PRESSURE FROM THE RISING DOLLAR AND OPTIONS EXPIRY: GOLD DOWN $4.70 TO $1316.50/SILVER DOWN 2 CENTS TO $16.52/WORLD’S LARGEST DERIVATIVE PLAYER, DEUTSCHE BANK REPORTS DISMAL EARNINGS/RHETORIC BETWEEN ISRAEL AND IRAN INTENSIFIES/ISRAEL WARNS RUSSIA NOT TO PROVIDE S 300 ANTI AIRCRAFT MISSILE SYSTEM/ DOW AND NASDAQ ADVANCE/ MORE SWAMP STORIES FOR YOU TONIGHT/

 

 

GOLD: $1316.50  DOWN $ 4.70  (COMEX TO COMEX CLOSINGS)

Silver: $16.52 DOWN 2 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1317.30

silver: $16.52

For comex gold:

APRIL/

NUMBER OF NOTICES FILED TODAY FOR APRIL CONTRACT:117 NOTICE(S) FOR 11700 OZ.

TOTAL NOTICES SO FAR 1086 FOR 108,600 OZ (3.3779 tonnes)

THE COMEX IS OUT OF GOLD

For silver:

APRIL

15 NOTICE(S) FILED TODAY FOR

75,000 OZ/

Total number of notices filed so far this month: 497 for 2,485,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $8780/OFFER $8882: DOWN $23(morning)

Bitcoin: BID/ $8998/offer $9098: UP $192  (CLOSING/5 PM)

 

end

First Shanghai gold fix comes at 10 pm est

The second Shanghai gold fix:  2:15 pm

First Shanghai gold fix gold: 10 pm est:  1331.25

NY price  at the same time: 1324.40

PREMIUM TO NY SPOT: $6.85

ss

Second gold fix early this morning:  1331.93

USA gold at the exact same time:  1323.00

PREMIUM TO NY SPOT:  $7.93

AGAIN, SHANGHAI REJECTS NEW YORK PRICING.

WE WILL NOT PROVIDE LONDON FIXES AS THEY ARE NOT ACCURATE AS TO WHAT IS GOING ON AT THE SAME TIME FRAME.

Let us have a look at the data for today

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In silver, the total OPEN INTEREST  FELL BY 5159 CONTRACTS FROM  201,707  FALLING TO 196,548  ACCOMPANYING YESTERDAY’S 18 CENT FALL IN SILVER PRICING. AFTER A  STRING OF 4 CONSECUTIVE OI GAINS, WE NOW REGISTER 4 CONSECUTIVE DROPS IN OI.  WE ARE NOW WITNESSING OUR USUAL AND CUSTOMARY COMEX LONG LIQUIDATION AS WE HEAD INTO THE ACTIVE DELIVERY MONTH OF MAY AS LONGS PACK THEIR BAGS AND MIGRATE OVER TO LONDON.  WE WERE  NOTIFIED THAT WE HAD AN STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP : 0 EFP CONTRACTS FOR APRIL3902 EFP’S FOR MAY , 782 EFP’S FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE OF 4684 CONTRACTS. WITH THE TRANSFER OF 4684 CONTRACTS, 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. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24-48 HRS IN THE ISSUING OF EFP’S. THE 4684 EFP CONTRACTS TRANSLATES INTO 23.420 MILLION OZ  ACCOMPANYING 1.THE FALL IN  SILVER PRICE (18 CENTS) AT THE COMEX AND 2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR APRIL COMEX DELIVERY.

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF APRIL:

73,158 CONTRACTS (FOR 19 TRADING DAYS TOTAL 73,158 CONTRACTS) OR 357.90 MILLION OZ: AVERAGE PER DAY: 3850 CONTRACTS OR 19.252 MILLION OZ/DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  357.90 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 51.128% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S1.0838      BILLION OZ.

ACCUMULATION FOR JAN 2018:                                               236.879     MILLION OZ

ACCUMULATION FOR FEB 2018:                                               244.95         MILLION OZ

ACCUMULATION FOR MARCH 2018:                                       236.67         MILLION OZ

RESULT: WE HAD A LARGE SIZED FALL IN COMEX OI SILVER COMEX OF 5159  WITH THE  18 CENT LOSS IN SILVER PRICE AS OUR CUSTOMARY COMEX LONG MIGRATION  INTO LONDON BASED FORWARDS COMMENCED IN EARNEST AS WE ARE APPROACHING THE NEW ACTIVE MONTH OF MAY.   THE CME NOTIFIED US THAT IN FACT WE HAD AN HUGE  SIZED EFP ISSUANCE OF 4684 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) . FROM THE CME DATA:  0 CONTRACTS WERE ISSUED FOR APRIL, 3902  EFP’S WERE ISSUED  FOR THE  MONTH OF MAY, AND 782 EFP CONTRACTS FOR JULY,   FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 4684). TODAY WE LOST 475  TOTAL OI CONTRACTS  ON THE TWO EXCHANGES: i.e. 4684 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH AN DECREASE OF 5159  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE  FALL IN PRICE OF SILVER OF 18 CENTS AND A CLOSING PRICE OF $16.54 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY IN THIS NON ACTIVE APRIL DELIVERY MONTH. 

In ounces AT THE COMEX, the OI is still represented by UNDER 1 BILLION oz i.e. .982 MILLION OZ TO BE EXACT or 140% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT APRIL MONTH/ THEY FILED: 15 NOTICE(S) FOR 15,000 OZ OF SILVER

IN SILVER, WE HAVE NOW SET THE NEW RECORD OF OPEN INTEREST AT 243,411 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $16.51  ON APRIL 9.2018.

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH 27 MILLION OZ AND APRIL 1.8 MILLION OZ)
  2. HUGE RECORD OPEN INTEREST IN SILVER  243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 357.9 MILLION OZ/ (SO FAR)

AND YET WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT). IT ALSO LOOKS LIKE BANKER CAPITULATION IN SILVER AS THEY STRUGGLE TO REMOVE SOME OF THEIR HUGE OBLIGATIONS.

In gold, the open interest ROSE BY 373 CONTRACTS UP TO 506,783 DESPITE THE FALL IN PRICE/YESTERDAY’S TRADING ( FALL OF $9.80).  WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF APRIL HEADING INTO THE NON ACTIVE MONTH OF MAY. THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A GIGANTIC SIZED 12,209 CONTRACTS :   JUNE SAW THE ISSUANCE OF 11,659 CONTRACTS , MAY SAW THE ISSUANCE OF 400 CONTRACTS  AND AUGUST SAW THE ISSUANCE OF: 150 CONTRACTS (REPORTED LATE YESTERDAY) WITH ALL OTHER MONTHS ZERO.  The new OI for the gold complex rests at 506,783. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI  TOGETHER WITH  THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR FEBRUARY COMEX. 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 WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A LARGE SIZED  OI GAIN IN CONTRACTS ON THE TWO EXCHANGES: 373 OI CONTRACTS INCREASED AT THE COMEX AND AN GIGANTIC SIZED 12,209 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.THUS  TOTAL OI GAIN: 12,582 CONTRACTS OR 1,258,200 OZ = 39.135 TONNES.

YESTERDAY, WE HAD 8946  EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF APRIL : 212,950 CONTRACTS OR 21,295,000  OZ OR 662.36 TONNES (19 TRADING DAYS AND THUS AVERAGING: 11,207 EFP CONTRACTS PER TRADING DAY OR 1,120,700 OZ/ TRADING DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 19 TRADING DAYS IN  TONNES: 662.36 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2555 TONNES

THUS EFP TRANSFERS REPRESENTS 662.36/2550 x 100% TONNES =  25.97% OF GLOBAL ANNUAL PRODUCTION SO FAR IN MARCH ALONE.*** THE ACCUMULATION OF EFP CONTRACTS IS RISING PER MONTH.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE 2,702.063*  TONNES   *SURPASSED ANNUAL PROD’N

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018:           653.22  TONNES

ACCUMULATION OF GOLD EFP’S FOR FEBRUARY 2018:         649.45 TONNES

ACCUMULATION OF GOLD EFP’S FOR MARCH 2018:                741.89 TONNES

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

Result: AN  INCREASE IN OI AT THE COMEX OF 373 DESPITE THE FALL IN PRICE // GOLD TRADING YESTERDAY ($9.80 LOSS). WE ALSO HAD A GIGANTIC SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 12,209 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX.  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 12,209 EFP CONTRACTS ISSUED, WE HAD A STRONG SIZED NET GAIN OF 12,209 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES: 

12,209 CONTRACTS MOVE TO LONDON AND 373 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 39.135 TONNES).

we had:117 notice(s) filed upon for 11700 oz of gold at the comex.

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

GLD…

WITH GOLD DOWN  $4.90 /NO CHANGE IN GOLD INVENTORY AT THE GLD

Inventory rests tonight: 871.20 tonnes.

SLV/

WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/

/INVENTORY RESTS AT 316.899 MILLION OZ/

end

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

1. Today, we had the open interest in SILVER FELL BY 5159 CONTRACTS from 201,707 DOWN TO 196,548 (AND FURTHER FROM THE  NEW COMEX RECORD SET /APRIL 9/2017 AT 243,411). THE PREVIOUS RECORD OTHER THAN WAS ESTABLISHED AT: 234,787, SET ON APRIL 21.2017 ALMOST ONE YEAR AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89. AFTER WE HAVE HAD FOUR CONSECUTIVE OI GAINS WE NOW HAVE FOUR  CONSECUTIVE OI DROPS  AS OUR CUSTOMARY MIGRATION OF COMEX LONGS MORPH INTO LONDON FORWARDS HAVING COMMENCED WITH OUR MARCH INTO THE UPCOMING ACTIVE  MAY DELIVERY MONTH (AT THE COMEX).  TRUE TO FORM OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE: 0 EFP CONTRACTS FOR APRIL, 3902 EFP CONTRACTS FOR MAY  (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM), AND 782 EFP’S FOR JULY AND ALL OTHER MONTHS ZERO. TOTAL EFP ISSUANCE:  4684 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI LOSS AT THE COMEX OF 5159 CONTRACTS TO THE 4684 OI TRANSFERRED TO LONDON THROUGH EFP’S, SURPRISINGLY WE OBTAIN A TINY LOSS OF 475 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES:  2.375 MILLION OZ!!! AND THIS OCCURRED DESPITE A FALL IN PRICE OF 18 CENTS.  THE BANKERS ORCHESTRATED THEIR RAID ON MONDAY TO DESPERATELY TRY AND PARE THEIR GIGANTIC OPEN INTEREST SHORT ON BOTH EXCHANGES BUT TO NO AVAIL. JUDGING BY THE RECORD NUMBER OF ISSUANCE DURING THIS MONTH OF APRIL AT 357.4 MILLION OZ. I DO NOT THINK THAT OUR BANKERS HAVE BEEN TOO SUCCESSFUL. PLEASE REMEMBER THAT THERE CAN BE DELAY OF 24 TO 48 HOURS IN THE ISSUANCE OF THESE EFP’S, SO EXPECT THE NUMBERS ANNOUNCED (EFP’S) WILL INCREASE STEADILY AS WE HEAD INTO FIRST DAY NOTICE THIS MONDAY APRIL 30.

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE FALL IN SILVER PRICING / YESTERDAY (18 CENTS/) . BUT WE ALSO HAD ANOTHER HUMONGOUS SIZED 4684 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR APRIL, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON. EXPECT EFP ISSUANCE TO INCREASE DURING THIS WEEK AS WE HEAD INTO THE ACTIVE DELIVERY MONTH OF MAY.

(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)THURSDAY MORNING/WEDNESDAY NIGHT: Shanghai closed DOWN 42.94 POINTS OR 1.38%  /Hang Sang CLOSED DOWN 320.47 POINTS OR 1.06%   / The Nikkei closed UP 104.29 POINTS OR 0.47%/Australia’s all ordinaires CLOSED UP .56%  /Chinese yuan (ONSHORE) closed DOWN at 6.3238/Oil DOWN to 68.45 dollars per barrel for WTI and 74.53 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN.   ONSHORE YUAN CLOSED DOWN AT 6.3238 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.3179/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH  STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

/NORTH KOREA/SOUTH KOREA

 

i)North Korea/

b) REPORT ON JAPAN

3 c CHINA

i)China’s big worry:  North Korea unifies with the South and becomes a strong USA ally with missiles pointing toward Beijing

( zerohedge)

ii)China is planning to lower the auto tariffs from 25% to either 15% or 10%. However cars manufactured in the uSA will still have its 25% tariff as Xi is still dueling with Trump

( zerohedge)

iii)USA top admiral warns that China now controls the South China Sea

( zerohedge)

4. EUROPEAN AFFAIRS

i)European ECB report to Europe/Press conference

Optimism from Draghi has he downplays soft economic data sends the Euro higher along with gold/silver

( zerohedge)

ii)Germany/Deutsche bank

World’s largest derivative bank and player reports disastrous results as it totally retreats from USA banking:

( zerohedge)

iib)the massive layoffs begin as Deutsche bank fires 400 USA bankers.  It is these guys that we need to testify in the gold/silver manipulation

(courtesy zerohedge)

iii)Bill Blain correctly states that the reason millenials are not buying cars or home is simple: lack of money and huge amounts of debt

( Bill Blain/Mint partners)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Israel/Syria/Russia

This is deadly:  Russia has decided to send the new advanced S 300 anti aircraft missiles to Syria.  This is a red line for Israel as they warn of catastrophic consequences.

( zerohedge)

ii)Iran/USA

More threats:  this time the Iranian Naval Commander has threatened to sink USA ships in the Gulf and create a catastrophic situation if Trump kills the deal. If the deal is dropped, then Iran loses 1 million barrels of oil per day on top of other sanctions

( zerohedge)

iii)Israel/Iran

the rhetoric intensifies:  Israel claims that the Iranian regime is in its final days economically and militarily

( zerohedge)

6 .GLOBAL ISSUES

Why Canada is heading down the same path as other countries with no gold

( Alex Deluce/GoldTelegraph.com

7. OIL ISSUES

8. EMERGING MARKET

i)Venezuela

 

9. PHYSICAL MARKETS

i)For some inexplicable reason, the Government chose to drop all charges against Flotron except the spoofing and that is what the acquittal was based on
( Bloomberg/GATA)
ii)The higher dollar is having its effect on commodities including gold and silver
( Craig Hemke/Sprott Money/GATA)

iii)Simon Black comments on gold:

  1. very few gold discoveries in this last decade so supply of gold diminishes
  2.  inflation is raring its ugly read

( Simon Black/SovereignMan.com)

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

i)This morning’s early trading:

ii)This morning’s reports:

First: initial claims drop but durable goods also disappoint

( zerohedge)

iii)SWAMP STORIES

a)Giuliani has met Mueller and surprisingly he is discussing the upcoming Trump interview

( zerohedge)

b)Trump is interviewed on Fox and Friends:
1. Trump says that his approach to the DOJ may change
2. Upset with Tester of VA nominee Jackson and his subsequent departure from the nomination process
3. Iran; Trump will no doubt leave the agreement despite the urging of Macron to continue with it
4. Cohen: does a small part of his personal stuff and the raid has nothing to do with him but he is still upset by it
5. Very critical of the crook Comey
( zerohedge)

Let us head over to the comex:

The total gold comex open interest  ROSE BY 373 CONTRACTS UP to an OI level 506,783 DESPITE THE CONSIDERABLE FALL IN THE PRICE OF GOLD ($9.90 LOSS/ YESTERDAY’S TRADING).   FOR TWO YEARS STRAIGHT WE HAVE NOTICED THAT ONE WEEK PRIOR TO FIRST DAY NOTICE OF AN ACTIVE DELIVERY MONTH THE COMEX OPEN INTEREST CONTRACTS AND EFP’S NOTICES EXPONENTIALLY INCREASE.   THE CME REPORTS THAT  THE BANKERS ISSUED A HUMONGOUS SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. WE HAD A LARGE 11,659 FOR  JUNE, 400 CONTRACTS ISSUED FOR MAY, 150 EFP CONTRACTS FOR AUGUST AND ZERO FOR ALL OTHER MONTHS:  TOTAL  12,209 CONTRACTS.  THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 12,582 OI CONTRACTS IN THAT 12,240 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 373  COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 12,582 contracts OR 1,258,200  OZ OR 39.135 TONNES.

Result: AN INCREASE IN COMEX OPEN INTEREST DESPITE THE FALL IN PRICE YESTERDAY  (ENDING UP WITH A LOSS OF $9.80)THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 12,582 OI CONTRACTS..

We have now entered the  active contract month of APRIL where we LOST 3 contracts LOWERING TO  525 contracts.  We had 2 notices served  yesterday, so we LOST 1  contract or an additional 100 oz will NOT  stand for delivery in this active delivery month of April AND THIS GUYS MORPHED INTO A LONDON BASED FORWARD.

May saw A GAIN of 334 contracts to stand at 1226. The really big June contract month saw a LOSS of 2702 contracts DOWN to 367,998 contracts.   The next big delivery month after June is August and here the OI ROSE BY 2041 contracts UP to 55,353.

We had 117 notice(s) filed upon today for 11700  oz at the comex

THERE IS NO QUESTION THAT THE COMEX DOES NOT HAVE ANY  GOLD TO SATISFY UPON OUR LONGS.

Trading Volumes on the COMEX

PRELIMINARY COMEX VOLUME FOR TODAY:280,880  contracts

CONFIRMED COMEX VOL. FOR YESTERDAY: 283,076 contracts

comex gold volumes are RISING AGAIN

Here is a summary of the latest gold trading volumes at the Comex per year

certainly the introduction of EFP’s has certainly had an effect:

Meanwhile, gold-trading volumes on the COMEX have never been higher:

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And now for the wild silver comex results.

Total silver OI FELL BY A CONSIDERABLE 5159 CONTRACTS FROM 201,707 DOWN TO 196,548 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET APRIL 9.2018/ 243,411 CONTRACTS)  WITH THE 18 CENT FALL IN SILVER PRICING. SINCE WE ARE HEADING INTO AN ACTIVE DELIVERY MONTH OF MAY, WE HAVE NOW WITNESSED OUR USUAL AND CUSTOMARY COMEX LIQUIDATION AND WE SHOULD SEE A GREATER MIGRATION OVER TO LONDON DURING THIS WEEK.  AS A MATTER OF FACT, WE  WERE  INFORMED THAT WE HAD A GIGANTIC 3902 EFP CONTRACTS ISSUED FOR MAY,  A SMALLER 782 EFP CONTRACT ISSUANCE FOR JULY AND ZERO FOR ALL OTHER MONTHS.  THESE EFPS WERE ISSUED TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  THE TOTAL EFP’S ISSUED: 4684.   ON A NET BASIS WE LOST 475 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 5159 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 4684 OI CONTRACTS NAVIGATING OVER TO LONDON. DUE TO THE FACT THAT THE BOYS WERE VERY BUSY NEGOTIATING LONG COMEX CONTRACTS EMIGRATING TO LONDON,(AND WAITING FOR THEIR PASSPORTS) DO NOT BE SURPRISED TO SEE A HUGE ISSUANCE OVER THIS WEEK AS THE DELAY IN ISSUANCE CAN BE IN EXCESS OF 24 TO 48 HRS.

NET LOSS  ON THE TWO EXCHANGES:   475  CONTRACTS 

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the non active delivery month of April and here the front month LOST 5 contracts FALLING TO 15 contracts.  We had 5 notices filed upon  so in essence we LOST 0 contracts or NIL additional ounces of silver will   stand for delivery in this non active delivery month of April .

The next big active delivery month for silver will be May and here the OI LOST 10,522 contracts DOWN to 30,394. June saw a GAIN of 145 contracts to stand at 533.  The next big delivery month for silver is July and here the OI ROSE by 5136 contracts UP to 117,341.

We had 15 notice(s) filed for 75,000 OZ for the APRIL 2018 contract for silver

INITIAL standings for APRIL/GOLD

APRIL 26/2018.

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
117 notice(s)
 11,700 OZ
No of oz to be served (notices)
408 contracts
(40,800 oz)
Total monthly oz gold served (contracts) so far this month
1086 notices
108600 OZ
3.3779 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
 from the last week of March til today, we have had only 5 small entries for gold and they were all of the “kilobars” variety
From my vantage point, the comex is void of gold.  This rarely happens in a delivery month as gold is called upon to deliver.
***
we had 0 kilobar transaction/
We had 0 inventory movement at the dealer accounts
total inventory deposit into the dealer accounts:  NIL  oz
total inventory withdrawals out of dealer accounts; nil oz
we had 0 withdrawals out of the customer account:
total customer withdrawals:  NIL oz
we had 0 customer deposit
total customer deposits: nil oz
we had 0 adjustment(s)

For APRIL:
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  117 contract(s) of which 2 notices were stopped (received) by j.P. Morgan dealer and 117 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the APRIL. contract month, we take the total number of notices filed so far for the month (1086) x 100 oz or 108,600 oz, to which we add the difference between the open interest for the front month of APRIL. (525 contracts) minus the number of notices served upon today (117 x 100 oz per contract) equals 149,400 oz, the number of ounces standing in this active month of APRIL (4.646 tonnes)

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

No of notices served (969 x 100 oz or ounces + {(525)OI for the front month minus the number of notices served upon today (117 x 100 oz )which equals 149,400 oz standing in this  active delivery month of APRIL . THERE IS 12.003 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.

WE LOST 1 COMEX OI CONTRACTS OR 100 OZ OF GOLD WILL STAND

total registered or dealer gold:  386.220.357 oz or 12.013 tonnes
total registered and eligible (customer) gold;   9,049,756.666 oz 281.48 tones
THE COMEX IS AGAIN IN STRESS AS ONLY 12.003 TONNES OF GOLD ARE LEFT TO SERVICE DELIVERIES. THERE IS HARDLY ANY GOLD AT THE COMEX TO SERVE UPON LONGS AND THUS THE REASON FOR THE EFP TRANSFER OVER TO LONDON.

IN THE LAST 18 MONTHS 73 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE APRIL DELIVERY MONTH

APRIL INITIAL standings/SILVER

APRIL 26/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 616,534.730  oz
CNT
Deposits to the Dealer Inventory
691,565.04
SCOTIA
Brinks
oz
Deposits to the Customer Inventory
  302,394.200 oz
DELAWARE
MALCA
691,565
No of oz served today (contracts)
15
CONTRACT(S)
(75,000 OZ)
No of oz to be served (notices)
0 contracts
(0 oz)
Total monthly oz silver served (contracts) 497 contracts

(2,485,000 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

we had 2 inventory movement at the dealer side of things

i) Into dealer Scotia:  591,435,100 oz

ii) Into dealer Brinks: 89,275.900 oz

total dealer deposits: 691,565.041 oz

we had 3 deposits into the customer account

i) Into JPMorgan: nil oz

*** JPMorgan for most of 2017 and in 2018 has adding to its inventory almost every single day.

JPMorgan now has 140 million oz of  total silver inventory or 53.4% of all official comex silver. (140 million/263 million)

JPMorgan did not  deposit  into its warehouses (official) today.

ii) Delaware: 1081.10: OZ

iii) Into Malca: 299,327.300

iv) Into Scotia: 1985.800

total deposits today: 302,394.200  oz

we had 1 withdrawals from the customer account;

i) Out of CNT 616,534.730 oz

total withdrawals;  616,534.730  oz

we had 0 adjustment

.

total dealer silver:  63.884 million

total dealer + customer silver:  261.417 million oz

The total number of notices filed today for the APRIL. contract month is represented by 15 contract(s) FOR 75,000 oz. To calculate the number of silver ounces that will stand for delivery in APRIL., we take the total number of notices filed for the month so far at 497 x 5,000 oz = 2,485,000 oz to which we add the difference between the open interest for the front month of April. (15) and the number of notices served upon today (15 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the APRIL contract month: 497(notices served so far)x 5000 oz + OI for front month of April(15) -number of notices served upon today (15)x 5000 oz equals 2,485,000 oz of silver standing for the April contract month 

WE LOST 0  SILVER CONTRACT OR NIL ADDITIONAL OUNCES WILL  STAND IN THIS NON ACTIVE DELIVERY MONTH OF APRIL 

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CRIMINALS!!

ESTIMATED VOLUME FOR TODAY: 116,079 CONTRACTS (WOW)  626 MILLION OZ OR 89% OF ANNUAL PRODUCTION.

CONFIRMED VOLUME FOR YESTERDAY: 137,751 CONTRACTS (my goodness)

YESTERDAY’S CONFIRMED VOLUME OF  137,751 CONTRACTS EQUATES TO 688 MILLION OZ (0..688 billion oz) OR 133% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.95% (APRIL 26/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.61% to NAV (APRIL 26/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -1.95%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.61%/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)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA): NAV FALLS TO -1.95%: NAV 13.62/TRADING 13.35//DISCOUNT 1.95.

END

And now the Gold inventory at the GLD/

APRIL 26/WITH GOLD DOWN $4.90/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 871.20 TONNES

APRIL 25/AFTER 9 CONSECUTIVE DAYS OF NO MOVEMENT OF GOLD INTO OUT OF THE GLD, WE HAD A HUGE DEPOSIT OF 5.31 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 871.20 TONNES.

APRIL 24./WITH GOLD UP $9.90, WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 865.89 TONNES/

APRIL 23.2018/WITH GOLD DOWN $14.00/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 865.89 TONNES.

APRIL 20/WITH GOLD DOWN $10.20: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 865.89 TONNES

APRIL 19/WITH GOLD DOWN $4.25: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 865.89 TONNES/

APRIL 18/WITH GOLD UP $3.65: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 865.89 TONNES

APRIL 17/WITH GOLD DOWN $1.00 NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 865.89 TONNES/

April 16/WITH GOLD UP$2.80/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 865.89 TONNES/

April 13/WITH GOLD UP $6.15, A HUGE DEPOSIT OF 5.90 TONNES INTO THE GLD INVENTORY/INVENTORY RESTS AT 865.89 TONNES

April 12/WITH GOLD DOWN $17.40/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 859.99 TONNES

April 11/WITH GOLD UP $13.85/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 859,99 TONNES

APRIL 10/WITH GOLD UP $5.25/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 859.99 TONNES

APRIL 9/WITH GOLD UP$4.50/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 859.99 TONNES

APRIL 6/WITH GOLD UP $7.50 ,A HUGE CHANGE IN INVENTORY AT THE GLD/ A DEPOSIT OF 5.90 TONNES/INVENTORY RESTS AT 859.99 TONNES

APRIL 5/WITH GOLD DOWN $8.20 WE HAD TWO ENTRIES: 1) TINY WITHDRAWAL OF .28 TONNES TO PAY FOR FEES AND 2) A DEPOSIT OF 2.06 TONNES//INVENTORY RESTS AT 854.09 TONNES

April 4/WITH GOLD UP $2.90 WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 852.31 TONNES

APRIL 3./WITH GOLD DOWN $9.30 WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 852.31 TONNES

APRIL 2/WITH GOLD UP $19.50, WE HAD A BIG  CHANGES IN GOLD INVENTORY AT THE GLD A DEPOSIT OF 6.19 TONNES/INVENTORY RESTS AT 852.31 TONNES

MARCH 29/WITH GOLD DOWN $3.20 AND OPTIONS EXPIRY FINISHED, WE HAD NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS A 846.12 TONNES

March 28/WITH GOLD DOWN $16.70, ANOTHER RAID ORCHESTRATED, AGAIN NO SURPRISES AS WE WITNESS ANOTHER 1.18 TONNES OF GOLD REMOVED/INVENTORY RESTS AT 846.12 TONNES

MARCH 27/WITH GOLD DOWN $11.70 AND A RAID INITIATED, IT WAS NO SURPRISE TO SEE THAT A MASSIVE WITHDRAWAL OF 3.24 TONNES WAS USED IN THE ABOVE RAID/INVENTORY RESTS AT 847.30 TONNES

MARCH 26./WITH GOLD UP $4.60/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 850.54 TONNES

MARCH 23/WITH GOLD UP $23.30/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 850.54 TONNES

MARCH 22.WITH GOLD UP $5.90, NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 850.54 TONNES/

MARCH 21/WITH GOLD UP $9.65 NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 850.54 TONNES

March 20/WITH GOLD DOWN $5.75, A SURPRISING HUMONGOUS DEPOSIT OF 10.32 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 850.64 TONNES/

SO FAR, FOR THE MONTH OF MARCH, THE GLD HAS ADDED 19.61 TONNES WITH A NET LOSS OF $17.45

March 19/WITH GOLD UP $5.25: ANOTHER HUGE DEPOSIT OF GOLD TO THE TUNE OF 2.07 TONNES/GOLD INVENTORY RESTS TONIGHT AT 840.22 TONNES

MARCH 16/WITH GOLD DOWN $5.65/OUR CROOKS DEPOSITED ANOTHER 4.42 TONNES INTO GLD INVENTORY/INVENTORY RESTS AT 838.15 TONNES

FOR THE WEEK: GOLD LOST  $11.80, BUT GOLD INVENTORY ADVANCED:4.42 TONNES

MARCH 15/WITH GOLD DOWN $7.85, NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.73 TONNES

MARCH 14/WITH GOLD DOWN $1.55/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.73 TONNES

MARCH 13/WITH GOLD UP $6.25/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.73 TONNES

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

APRIL 26/2018/ Inventory rests tonight at 871.20 tonnes

*IN LAST 370 TRADING DAYS: 69.84 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 320 TRADING DAYS: A NET 86.46 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory/

APRIL 26/WITH SILVER DOWN 2 CENT/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316,899 MILLION OZ/

APRIL 25./WITH SILVER DOWN 18 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.899 MILLION OZ/

APRIL 24./WITH SILVER UP 8 CENTS/SOMETHING SPOOKED OUR CROOKS TO ADD SOME PAPER SILVER: A DEPOSIT OF 1.601 MILLION OZ/INVENTORY RESTS AT 316.899 MILLION OZ/

APRIL 23.2018/WITH SILVER DOWN 50 CENTS, ANOTHER HUGE WITHDRAWAL FROM THE SLV INVENTORY: A WITHDRAWAL OF 1.413 MILLION OZ/INVENTORY RESTS AT 315.298 MILLION OZ.

APRIL 20/WITH SILVER DOWN 11 CENTS: ANOTHER HUGE CHANGE IN SILVER INVENTORY: A WITHDRAWAL OF 1.13 MILLION OZ//SLV RESTS TONIGHT AT 316.711 MILLION OZ/

APRIL 19/WITH SILVER UP 3 CENTS TODAY: WE HAD A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.355 MILLION OZ/ MAKES ABSOLUTELY NO SENSE!!/INVENTORY RESTS AT 317.841 MILLION OZ

APRIL 18/WITH SILVER UP 44 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.196 MILLION OZ

APRIL 17/WITH SILVER UP 10 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS  AT 320.196 MILLION OZ

April 16/WITH SILVER UP 7 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.196 MILLION OZ/

April 13/WITH SILVER UP 17 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.196 MILLION OZ.

April 12/WITH SILVER DOWN 27 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.196 MILLION OZ/

April 11/2018/WITH SILVER UP 16 CENTS:  NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.196 MILLION OZ/

APRIL 10/WITH GOLD UP 8 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.196 MILLION OZ/

APRIL 9/WITH SILVER UP 12 CENTS/WE HAD NO CHANGES IN SILVER INVENTORY/INVENTORY RESTS AT 320.196 MILLION OZ/

APRIL 6/WITH SILVER UP 4 CENTS, WE HAD A HUGE DEPOSIT OF 1.319 MILLION OZ INTO THE SLV INVENTORY/INVENTORY RESTS AT 320.196 MILLION OZ

APRIL 5/WITH SILVER UP 6 CENTS/NO CHANGES IN INVENTORY AT THE SLV/INVENTORY RESTS AT 318.877 MILLION OZ/

April 4/WITH SILVER DOWN 11 CENTS/A SMALL CHANGE IN SILVER INVENTORY AT THE SLV/ A WITHRAWAL OF 135,000 OZ AND THIS IS PROBABLY TO PAY FOR FEES/INVENTORY RESTS AT 318.877 MILLION OZ/

APRIL 3./WITH SILVER DOWN 16 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.012 MILLION OZ/

APRIL 2/WITH SILVER UP 34 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.012 MILLION OZ/

MARCH 29/WITH SILVER UP 6 CENTS, THE CROOKS DECIDED THAT THEY HAD BETTER ADD SOME 943,000 PAPER OZ TO THEIR INVENTORY/INVENTORY RESTS AT 319.012 MILLION OZ

March 28/WITH SILVER DOWN 27 CENTS/AGAIN NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ

MARCH 27/WITH SILVER DOWN 14 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ/

WITH SILVER UP 11 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ/

MARCH 23/WITH SILVER UP 19 CENTS, A HAD A BIG WITHDRAWAL OF 1.602 MILLION OZ.INVENTORY RESTS AT 318.069 MILLION OZ/

MARCH 22/WITH SILVER DOWN ONE CENT, NO CHANGE IN SLV INVENTORY/INVENTORY RESTS AT 319.671 MILLION OZ/

March 21/WITH SILVER UP 21 CENTS/NO CHANGE IN SLV INVENTORY/INVENTORY RESTS AT 319.671 MILLION OZ/

March 20/WITH SILVER DOWN 13 CENTS/NO CHANGE IN SLV INVENTORY/INVENTORY RESTS AT 319.671 MILLION OZ/

March 19/WITH SILVER UP 5 CENTS, THE SLV ADDS A SMALL 659,000 OZ TO ITS INVENTORY/INVENTORY RESTS AT 319.671 MILLION OZ/

MARCH 16/WITH SILVER DOWN 15 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.012 MILLION OZ.

FOR THE WEEK;  SILVER IS DOWN 42 CENTS YET ADDS 943,000 OZ OF SILVER INTO THE SLV/

MARCH 15/WITH SILVER DOWN 11 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.012 MILLION OZ/

MARCH 14/WITH SILVER DOWN 8 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.012 MILLION OZ/

MARCH 13/WITH SILVER UP 10 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.012 MILLION OZ/

HAD ANOTHER HUGE ADDITION OF 1.315 MILLION OZ/INVENTORY RESTS AT 316.590 MILLION OZ/

APRIL 26/2018:  NO  CHANGES IN SILVER INVENTORY:  

Inventory 316.899 million oz

end

6 Month MM GOFO 2.03/ and libor 6 month duration 2.52

Indicative gold forward offer rate for a 6 month duration/calculation:

G0FO+ 2.03%

libor 2.52 FOR 6 MONTHS/

GOLD LENDING RATE: .49%

XXXXXXXX

12 Month MM GOFO
+ 2.77%

LIBOR FOR 12 MONTH DURATION: 2.51

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.26

end

Major gold/silver trading /commentaries for THURSDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Gold Price Increasingly Influenced By Declining Dollar Rather Than Interest Rates

Gold Price Gains Due To Declining Dollar Rather Than Interest Rates

– Investors should not be put off by higher interest rates, World Gold Council research finds they do not always have a negative impact on gold
– Only short-term movements in gold are ‘heavily influenced by US interest rates’
– Correlation between US interest rates and gold is waning, with US dollar a better indicator of short-term gold price

– New findings will reassure gold investors that there is no single driver of the gold price including interest rates and the myth of the “all powerful” central bank

Editor: Mark O’Byrne

What drives the gold price? There is no single answer to that question. It is a multiple of factors, all of which vary in their influence depending on an even greater number of factors.

According to latest research from the World Gold Council, there are two factors in the short and medium-term that attract investors’ attention the most: the US dollar and US interest rates.

One overriding belief by gold market commentators and observers is that the direction of the US dollar carries a greater impact on the gold price than US interest rates.

This is understandable given gold’s consistently negative correlation to the US dollar.

However, we have all noticed how gold has only reacted positively since the Federal Reserve has been hiking rates since last December – increasing by 8.5%.

So should we therefore assume that US interest rates do in fact matter more to the direction of the gold price?

There is no straight forward answer says the World Gold Council. ‘Generally’ the US dollar matters most to the precious metal’s price movements, ‘but there are exceptions to this rule’.

Gold and interest rates: a negative correlation

It makes sense that gold and interest rates should be negatively correlated. One is seen as the opportunity cost of another. Between 2013 and 2017 the negative correlation was strong:

‘[This] was likely a result of the strong influence that US monetary policy was exerting across global markets. This period coincided with a shift in investor expectations of US monetary policy from being very accommodative to moving towards normalisation.’

Conversely, higher rates are not always linked to higher prices

We are always quick to assume that US interest rate changes will begin to affect the price of gold. But consider the variety of demands involved in the gold market: jewellery, or technological demands- are they all influenced by US interest rates? The chances are, no.

‘US interest rates do not necessarily influence the behaviour of global consumers of gold jewellery or of technology demand. Nor do they affect the behaviour of investors outside the US for whom local interest rates matter more than US rates’

Interestingly the WGC research finds that whilst gold does react best to negative US interest rates, they can remain below 2.5% (significantly higher than today) and average gold returns remain positive.

‘Falling rates are generally linked to higher gold prices; yet rising rates are not always linked to lower prices.’ 

Take the above with a pinch of salt

These findings with a pinch of salt. There are so many factors that affect the price of gold that investors should not focus on the policies and currency of one country to determine their buying and selling decisions.

The WGC finds four broad categories which affect the price of gold. It is interactions between these categories that affect the performance of the precious metal.

Wealth and economic expansion: periods of growth are very supportive of jewellery, technology, and long-term savings

Market risk and uncertainty: market downturns often boost investment demand for gold as a safe haven

Opportunity cost: the price of competing assets such as bonds (through interest rates), currencies and other assets influence investor attitudes towards gold

Momentum and positioning: capital flows and price trends can ignite or dampen gold’s performance.

When it comes to gold’s long-term trend, the lobbying group finds that:

‘drivers related to wealth and economic expansion are generally more relevant for gold’s long-term trend. And drivers linked to the other three categories play a significant role in gold’s countercyclical behaviour.’

The US dollar will overtake rates when it comes to influence on gold price

In our view, one of the reasons the dollar will overtake rates to explain the direction of the gold price, is that movements in the dollar already reflect inflation expectations of monetary policy in the US. At the same time, they also reflect expectations of interest rate differentials between the US and major economies, as well as investors’ views on trade imbalances – all factors that are currently relevant for gold.

There is an ‘asymmetric correlation’ between gold prices and the US dollar. Why? Because not everyone pays for their gold in US dollars. Local currency movements impact demand more.

Thus, gold’s behaviour is best understood as a broad fiat currency hedge rather than simply a dollar hedge. This is apparent in periods when major currencies weaken, and investors buy gold to hedge that risk – for example, during the European sovereign debt crisis. In such instances, gold and the dollar have tended to move in sync, with both benefiting from safe haven inflows.

This further explains why the uncertain times ahead due to heightened geopolitical risk are likely to see further gold price gains. Even if the dollar strengthens on announcement of war in Syria (for example) we may still see the price of gold rise.

Read the original research here.

Recommended reading

Four Key Themes To Drive Gold Prices In 2018 – World Gold Council

Stock Market Selloff Showed Gold Can Reduce Portfolio Risk

Gold Does Not Fear Interest Rate Hikes

News and Commentary

Gold hovers near 5-wk lows amid dollar pressure, rising yields (Reuters.com)

Asian Stocks Mixed as Tech Rises; Dollar Steady (Bloomberg.com)

Gold prices could ‘test five year highs’ later this year: Researcher (CNBC.com)

Ex-UBS Metals Trader Beats Spoofing Conspiracy Charge (Bloomberg.com)

Deutsche Bank to Reduce Investment Banking in Focus on Europe (Bloomberg.com)

Central Bankers Can’t Agree on Cryptocurrencies (Bloomberg.com)

Debt-Enabled Asset-Bubbles Are On A Crash With Demographics (ZeroHedge.com)

It’s 2-Year Yields, Not 10-Years, We Worry About Most (ZeroHedge.com)

Gold prices could ‘test five year highs’ later this year (CNBC.com)

ABN Amro: Geo-politics and sanctions support commodities (Abnamro.nl)

Andrew Maguire’s Kinesis money which is a “bitcoin” but backed 100% by allocated gold and silver is set to go.

it think it would be a great idea to look at this!

please read at:  https://kinesis.money/#/

(Andrew Maguire)

Andrew Maguire

2:57 PM (1 hour ago)
to me

Harvey

Here It is my friend!  https://kinesis.money/#/ Please let everyone know.

Let catch up on Monday if you have time. We have billions in the hopper ready to be allocated on the 1st day of trading. The paper market days are over.

Warm regards

Andy

_________________
___________________________________________________________________

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

 

i) Chinese yuan vs USA dollar/CLOSED DOWN 6.3238  /shanghai bourse CLOSED DOWN 42.94 POINTS OR 1.38%   / HANG SANG CLOSED DOWN 104.29 POINTS OR 0.47%
2. Nikkei closed UP 104.29 POINTS OR 0.47%/  /USA: YEN FALLS TO 109.20/  

3. Europe stocks OPENED GREEN     /USA dollar index FALLS TO 91.10/Euro RISES TO 1.2182

3b Japan 10 year bond yield: FALLS TO . +.06/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.10/ 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:: 68.45  and Brent: 74.53

3f Gold UP/Yen UP

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.61%/Italian 10 yr bond yield DOWN to 1.76% /SPAIN 10 YR BOND YIELD DOWN TO 1.28%

3j Greek 10 year bond yield FALLS TO : 3.94?????????????????

3k Gold at $1325.20 silver at:16.58     7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 39/100 in roubles/dollar) 62.05

3m oil into the 68 dollar handle for WTI and 74 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/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 109.10 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 0.9832 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1977 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to +0.61%

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 3.00% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.19% /

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

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

Stocks Rebound As 10Y Slides Back Under 3%; All Eyes On Draghi

Markets have slowed down modestly ahead of today’s key event, the ECB’s monetary policy decision and Draghi press conference, which will likely feature repeated versions of the same question: how worried is the ECB president? From sagging business confidence to falling industrial output, the region seems to be losing economic momentum after the best performance in a decade last year. We did a full ECB preview overnight; the summary scenario analysis of what to expect is shown below:

Meanwhile, despite generally muted volumes, there has been a lot of action with European stocks rising after an early drop amid a deluge of earnings, while Asian stocks were mixed led lower by selling out of China as investors digested the latest flood of company earnings, including a blockbuster beat by Facebook overnight.

The Stoxx 600 was up 0.5%%, nearing its 200-DMA which was tested earlier this week. Energy stocks gained ground, helped by rising oil prices and good quarterly results from a number of companies.  Utilities showing strength (+0.9%) with the energy sector underperforming (-0.5%) following Shell earnings (-2.5%). Conversely with positive results for Total (+0.6%), Telefonica (+0.1%) and Volkswagen (+3%) but negative results for Deutsche Bank (+0.3%) and Roche (-0.1%%).

Asian stocks were generally downbeat, despite strength from the Nikkei 225 (+0.5%) which was underpinned by recent JPY weakness while the KOSPI (+1.1%) was the biggest gainer amid optimism ahead of tomorrow’s inter-Korean summit and after tech giant Samsung Electronics released its Q1 final results. Elsewhere, the Shanghai Comp. (-1.3%) and Hang Seng (-1.0%) were downbeat amid the backdrop of rising money market rates and another substantial consecutive net liquidity drain of CNY 150bln by the PBoC while tech stocks continued to reel from an FBI probe into Huawei.

Despite yesterday’s huge beat by Facebook, which sent its share 7% higher after hours, US equity futures were only modestly in the green.

The big story of the early half of the week, the level of the benchmark 10Y Treasury, fluctuated and recently dipped back under 3% as oil climbed. As Bloomberg adds, TSY futures rallied after early block trades, similar seen in bund futures as curves flatten; Open Interest changes hint that yesterdays huge German/UST 5s10s box trade was a new risk trade.

Meanwhile, the dollar hovered at a three-month high, although it has followed the 10Y lower and was trading at session lows. The biggest decliner versus the greenback was the krona after the Riksbank delayed its tightening; the Swedish currency touched its weakest level since December 2009 against the euro after the decision (more below).

In other FX news, the euro halted the previous day’s decline versus the dollar and inched higher from an almost two-month low. The common currency has weakened on each of the past four Draghi press conferences, and charts and trader positioning suggest it may do so again on Thursday on a dovish tone; ECB President will speak at 2:30pm Frankfurt time.

In notable central bank announcements, the Swedish Riksbank kept its overnight Rate unchanged at -0.50% as expected, however it surprised the market by announcing the rate will begin to increase towards the end of the year which is somewhat later than forecast previously. Underlying inflation has been somewhat lower than expected recently, which raises questions regarding the strength of the development in inflation. Deputy Ohlsson dissented at keeping the interest rate unchanged, advocating a hike to -0.25%

In key geopolitical news overnight, South Korea said that President Moon will meet with North Korea leader Kim at the border on Friday at 0930 local time In related news, there were also comments from a BoK official that any economic cooperation with North Korea will bolster South Korean consumer sentiment. Separately, French President Macron said he thinks US President Trump will not want US to remain in Iran nuclear deal based on prior statements.

In Brexit news, UK PM May is said to issue a wish list of her trade demands for a Brexit trade deal. UK PM May has held a cabinet meeting with Conservative Brexiteers whereby she was asked to stick to her plan of making a clean
break from the EU.

WTI and Brent crude futures sit in modest positive territory, continuing yesterday’s recovery. Prices remain firmer in spite of the latest DoE release which had an overall bearish impact on the market as traders continue to assess the plausibility of the US re-imposing sanctions upon Iran as well as declines in Venezuelan oil output. In metals markets, spot gold trades with little in the way of firm direction and in close proximity to 5-week lows as a firmer USD keeps a lid on gains for the precious metal. Elsewhere, aluminium has continued to face selling pressure in London amid the fallout from the latest updates for Rusal, whilst Chinese steel futures were supported overnight by domestic construction demand.

Economic data on Thursday include initial jobless claims, durable goods orders. PepsiCo, Bristol-Myers Squibb, General Motors and Intel are among companies due to release results.

Bulletin Headline Summary from RanSquawk

  • Equity markets largely subdued after negative trading on Wednesday ahead of ECB’s rate decision
  • SEK at eight year lows, however, following Riksbank rolling back rate hike expectations
  • Looking ahead, highlights include, ECB’s rate decision and press conference, US durables, weekly jobs,
  • advanced goods trade balance and a slew of earnings

Market Snapshot

  • S&P 500 futures down 0.06% to 2,643.00
  • STOXX Europe 600 up 0.5% to 381.95
  • MXAP down 0.06% to 171.77
  • MXAPJ down 0.2% to 556.79
  • Nikkei up 0.5% to 22,319.61
  • Topix up 0.3% to 1,772.13
  • Hang Seng Index down 1.1% to 30,007.68
  • Shanghai Composite down 1.4% to 3,075.03
  • Sensex up 0.3% to 34,593.88
  • Australia S&P/ASX 200 down 0.2% to 5,910.77
  • Kospi up 1.1% to 2,475.64
  • German 10Y yield fell 1.5 bps to 0.619%
  • Euro up 0.1% to $1.2177
  • Brent Futures up 0.5% to $74.33/bbl
  • Italian 10Y yield rose 1.0 bps to 1.523%
  • Spanish 10Y yield fell 1.1 bps to 1.291%
  • Brent Futures up 0.5% to $74.33/bbl
  • Gold spot up 0.03% to $1,323.59
  • U.S. Dollar Index up 0.03% to 91.20

Top Overnight News from Bloomberg

  • Mario Draghi’s press conference on Thursday may well feature repeated versions of the same question: how worried is he? From sagging business confidence to falling industrial output, the region seems to be losing economic momentum after the best performance in a decade last year
  • French President Emmanuel Macron said he thinks U.S. President Donald Trump will withdraw from the Iran nuclear accord, dealing a blow to the six-nation agreement reached in 2015 and endorsed by world powers
  • Fox News says Trump will join “Fox & Friends” at 8:00 a.m. New York time for an interview
  • The European Union will begin surveillance of aluminum imports as part of a plan for possible curbs resulting from the controversial U.S. tariff imposed last month
  • Brexit-backing Conservatives held private talks with U.K. PM Theresa May to demand that she sticks to her plan for a clean break with the EU; At the Tuesday meeting, May reassured euroskeptics she will deliver the kind of Brexit they want, according to two people familiar with the conversation
  • The Riksbank again pushed back a plan to raise interest rates, announcing on Thursday they don’t see a tightening until “towards the end of the year,” while also holding their key rate at minus 0.5%
  • This was a delay from their previous assessment that they could see tighter policy by the second half of this year
  • China is considering proposals to cut import duty on passenger cars by about half, according to people with direct knowledge of the matter, a move that’s set to give a lift particularly to luxury-car makers such as BMW AG and Toyota Motor Corp.’s Lexus unit
  • Deutsche Bank AG’s new chief executive officer can claim his first success. The European Central Bank has granted Germany’s largest lender an exemption from rules limiting how it can use funds at its Postbank retail subsidiary, a bank spokesman confirmed on Wednesday

The major Asia-Pac bourses traded mixed as markets failed to fully benefit from a mild tailwind after the gains in Wall St and as focus across global stock markets turned to a deluge of earnings. Nikkei 225 (+0.5%) was underpinned by recent JPY weakness and with Tokyo Electron the outperformer after its FY net firmly topped estimates, while the KOSPI (+1.1%) was the biggest gainer amid optimism ahead of tomorrow’s inter-Korean summit and after tech giant Samsung Electronics released its Q1 final results. Elsewhere, ASX 200 (-0.2%) was indecisive as Australia also reflected on the broad weakness during the prior day’s holiday closure, while Shanghai Comp. (-1.3%) and Hang Seng (-1.0%) were downbeat amid the backdrop of rising money market rates and another substantial consecutive net liquidity drain of CNY 150bln by the PBoC. Finally, 10yr JGBs were quiet with markets focused on earnings releases and amid a lack of Rinban announcement. Furthermore, the BoJ also kick-started its 2-day policy meeting today in which the central bank is expected to maintain policy settings, while focus would also be on the forecasts in the Outlook Report and whether there will be any changes to inflation estimates with the inclusion of the newly appointed Deputy Governors including known-reflationist Wakatabe. China MOFCOM repeated its opposition to unilateralism and protectionism, while it added that some Chinese firms have given up on the US market amid uncertainty. In other news, a China MIIT official said China is working on a significant tariff reduction for auto imports, while there were also reports that China is mulling lowering car import tariffs to 10% or 15% from the current 25%, with a decision possibly as early as next month

Top Asian News

  • Komatsu Full Year Operating Income Forecast Misses Estimates
  • Nomura Holdings 4Q Net Income 22.7b Yen
  • Nippon Steel’s Operating Profit Misses Estimate, Stock Drops
  • Philippine Bank of Communications Elects New Treasurer
  • Tencent Wipeout Topping $118 Billion Reveals Depth of Tech Gloom
  • SoftBank Names Ex-Goldman, Japan Post Bank Executive to Board

European equities (Eurostoxx 50+0.2%, DAX flat) trade with little in the way of firm direction as traders await today’s ECB meeting (albeit fireworks expected from the event); IBEX (+0.4%) and FTSE MIB (+0.5%) outperform. Utilities showing strength (+0.9%) with the energy sector underperforming (-0.5%) following Shell earnings (-2.5%). Conversely with positive results for Total (+0.6%), Telefonica (+0.1%) and Volkswagen (+3%) but negative results for Deutsche Bank (+0.3%) and Roche (-0.1%%). Looking ahead for Shire at 12:00 today, which may give some indication on the Takeda news

Top European News

  • Iberdrola Turns a Takeover War With Enel Into an EU Problem
  • BP Brings in Former BG Boss Lund to Succeed Svanberg as Chairman
  • Lufthansa Falls on Fare Drop, Cost of Assets From Air Berlin
  • Barclays Trading Gives Staley Momentum, But Misconduct Bites
  • Telefonica First-Quarter Sales Drop as Spain Recovery Not Enough
  • Nokia Sales Miss Estimates as Network Market Slump Persists

In currencies, the DXY continues to grind higher above the 91.000 level and eke out more fresh multi-month highs amidst widespread Dollar gains vs counterparts. 91.300 or so is the latest peak, as the DXY inches closer to then next upside technical targets circa 91.500 and then 91.750. CHF/GBP/CAD/NZD/AUD: All softer vs the  Greenback, with Usd/Chf only a few pips below 0.9850 resistance, while Cable has breached the top of a support zone straddling 1.3900 to extend its sharp reversal from April highs (1.4377) and further undermine bullish seasonal dynamics, plus M&A factors that had been boosting the Pound. Usd/Cad towards the upper end of a relatively tight 1.2825-60 range with overriding Dollar strength marginally outweighing Loonie support from near term NAFTA deal expectations. Nzd/Usd looking more vulnerable just above 0.7050 as the Aud/Nzd cross climbs over 1.0700 and Aud/Usd derives a degree of traction from above forecast Aussie export/import price data overnight. EUR/JPY: The single currency has survived a stern test of support vs the Usd around 1.2155 to trade back up near the top of its  trading parameters (1.2190), awaiting fresh/independent impetus from the ECB and still gleaning some direction from mega 1.2200 option expiries that run off later today. Usd/Jpy firmer above 109.00 between 109.25-50 amidst latest month end rebalancing models indicating a Jpy sell signal and with the BoJ not seen altering its easy/dovish stance at the culmination of the 2-day meeting early Friday

In commodities, WTI and Brent crude futures sit in modest positive territory (albeit off best levels) broadly continuing yesterday’s recovery. Prices remain firmer in spite of the latest DoE release which had an overall bearish impact on the market as traders continue to assess the plausibility of the US re-imposing sanctions upon Iran as well as declines in Venezuelan oil output. In metals markets, spot gold trades with little in the way of firm direction and in close proximity to 5-week lows as a firmer USD keeps a lid on gains for the precious metal. Elsewhere, aluminium has continued to face selling pressure in London amid the fallout from the latest updates for Rusal, whilst Chinese steel futures were supported overnight by domestic construction demand.

Looking at the day ahead, the highlight will be the ECB meeting just after midday followed  by President Draghi’s media briefing shortly after. The BOE’s Brazier and ECB’s Nouy will also speak. Data due out includes Germany consumer confidence for May and US initial jobless claims, March advance goods trade balance and flash durable and capital goods orders data for March. Amazon, Microsoft, Total, Intel, Royal Dutch Shell and Volkswagen are notable earnings releases due out.

US Event Calendar

  • 8:30am: Initial Jobless Claims, est. 230,000, prior 232,000; Continuing Claims, est. 1.85m, prior 1.86m
  • 8:30am: Durable Goods Orders, est. 1.6%, prior 3.0%; Durables Ex Transportation, est. 0.5%, prior 1.0%
  • 8:30am: Cap Goods Orders Nondef Ex Air, est. 0.46%, prior 1.4%; Cap Goods Ship Nondef Ex Air, est. 0.3%, prior 1.4%
  • 8:30am: Retail Inventories MoM, prior 0.4%, revised 0.4%; Wholesale Inventories MoM, est. 0.65%, prior 1.0%
  • 9:45am: Bloomberg Consumer Comfort, prior 58.1
  • 11am: Kansas City Fed Manf. Activity, est. 17, prior 17

DB’s Jim Reid concludes the overnight wrap

Morning from Helsinki, it’s been a busy tour of the region but I did manage to watch the astonishing game of football on Tuesday night. I’m still recovering. Meanwhile bond markets aren’t really recovering even with what has been a negative risk reaction this week to the rising yield environment. Obviously our pieces highlighted at the top give chapter and verse on this theme so we won’t go into detail here but it is quite clear in 2018 that US treasuries are struggling to rally in risk off environments. That I think shows the direction of travel at the moment. The US 10y held above 3% yesterday and ended the day at 3.027% (just above 3.03% in Asia) with the latest move meaning that yields have risen for seven consecutive sessions which is the joint longest run since mid-April 2016.

Yields are up 29bps since early April and as discussed it appears that equity and credit markets are struggling a bit in the face of that. Having said that the Dow (+0.25%) climbed back into the close to rise for the first time in six days yesterday. The reaction to what is a good headline US earnings season continued to be mixed with Twitter (-2.4%) lower although Boeing rose +4.2% after it raised this year’s earnings forecasts. However, in after hours trading Facebook jumped around 7% after its results, while Visa and Qualcomm was up c3% and c2% respectively following their above market quarterly results.

Before these late results the S&P 500 also recovered from earlier losses to close slightly higher (+0.18%), but is comfortably in the red YTD (-1.28%) again after this past week. The Nasdaq (-0.05% yesterday) is still holding its head above water for 2018. European bourses weakened further yesterday (Stoxx -0.77%; DAX -1.02%; FTSE -0.62%) and EM equities also appeared to be showing signs of stress with the MSCI EM index closing last night -1.21% down. The US dollar index firmed 0.45% to a fresh 3 month high while the Euro and Sterling fell -0.59% and -0.33% respectively. Elsewhere, Gold (-0.54%) and the Yen (-0.56%) seemed to be absent from any safe haven flows. Credit indices widened modestly in Europe but tightened in the US (Main +1bp; CDX IG -0.7bp) reflecting the  late day rebound in equities.

This morning in Asia, markets are trading mixed with the Kospi up +1.25% as Samsung’s result beat expectations, while the Nikkei is up +0.59% and Hang Seng (-0.70%) and Shanghai Comp. (-0.92%) are both down as we type. The futures on the S&P are up c0.3%.

The next test for the bond market will likely come with this afternoon’s ECB meeting, followed closely by President Draghi’s press conference. Our European economists (link) expect the “dovish exit” strategy to remain intact. They  expect the ECB to retain confidence in the above-trend growth despite the recent loss of momentum (although the PMIs and Bank Lending survey this week should install confidence) and they expect the optimism – which increasingly extends to inflation – to remain conditional on the ECB being patient, persistent and prudent with stimulus. They also expect the ECB to signal ample monetary stimulus after QE ends.

In light of a core unchanged message then, the risk is that Draghi errs on the side of caution today. As our colleagues point out, the ECB is already highlighting the relative importance of policy rates and guidance post-QE. Draghi recently said that policy adjustments would proceed at a “measured pace” and conditional on the scale of the inflation gap and the uncertainties around the output gap and wages. The team expects Draghi to repeat this in the Q&A, but a more dovish outcome would be inserting “measured pace” into the press statement to strengthen forward guidance. Another dovish move would be recognition of risks by “monitoring” economic developments. Our economists still expect the ECB to pre-announce in June that QE will end in December after a taper in Q4, but the risk is that the ECB waits until July to announce something. A one-month delay shouldn’t impact the prospect of a likely Q4 taper though. Beyond this and as a reminder, DB’s base case is for the first policy rate hike to come in June 2019 – a 20bp deposit rate hike and 25bp refi rate hike. A second hike is forecast for December 2019. Today’s ECB meeting outcome is at 12.45pm BST and Draghi is due to speak at 1.30pm BST.

Ahead of today’s ECB meeting, two policy makers were quoted yesterday as sounding fairly upbeat despite some signs of softer data in recent weeks. The comments, published by Eurofi, came from Board Member Mersch and Governing Council member Vasiliauskas. Mersch was quoted as saying that “confidence has recently risen and convergence is being confirmed – partly because the temporary decline in the inflation rate has been weaker than our internal calculations had predicted”. Vasiliauskas was also noted as saying that “we have witnessed the strengthening of broad-based growth and steadily declining unemployment, providing conditions for inflation convergence to our objective” and that “this has increased my confidence that it is time to transition from the APP”.

Closer to home, Brexit headlines are likely to be back in vogue today with the UK government facing a motion vote in the House of Commons called by senior MPs on the UK’s future participation in the EU customs union. The motion calls for the government to change its position to seek an effective customs union with the EU27 after Brexit. DB’s Oliver Harvey highlighted in his report yesterday that the vote is non-binding and a government defeat does not  represent a no confidence vote and will not result in a resignation from PM May. He highlights however that if the  government were to lose, it may cast doubt on its ability to proceed with the legislation necessary to implement Brexit, in particular amendments to the UK withdrawal bill made by the House of Lords this week, and the  government’s Trade and Customs Bill which is set to be voted on next month. So worth keeping an eye on. See Oli’s report for a lot more detail on the latest Brexit news.

Turning to trade, the FT reported President Trump will dispatch Treasury Secretary Mnuchin and Trade  representative Lighthizer to China next week to discuss trade relations. Trump noted there was a “very good chance of making a deal” but warned that he would continue with plans for new tariffs if no progress was made.

Finally, our European team now believe the Euro area GDP has grown 0.4% qoq in Q1, rather than the 0.6% qoq growth they had pencilled in previously. While growth was expected to lose momentum in 2018 and 2019, they argue that temporary factors such as adverse weather conditions might have added some volatility in Q1. In order to map the signals coming from high-frequency monthly data into a real time estimate of GDP growth, they have built several “Now-Casting” models. These point to growth in the range of 0.4-0.5% qoq in Q1. Please see their  note for more details. There were limited data releases from yesterday. In France, the April consumer confidence edged up 1pt mom to 101 (vs. 100 expected).

Looking at the day ahead, the highlight will be the ECB meeting just after midday followed  by President Draghi’s media briefing shortly after. The BOE’s Brazier and ECB’s Nouy will also speak. Data due out includes Germany consumer confidence for May and US initial jobless claims, March advance goods trade balance and flash durable and capital goods orders data for March. Amazon, Microsoft, Total, Intel, Royal Dutch Shell and Volkswagen are notable earnings releases due out.

3. ASIAN AFFAIRS

i)THURSDAY MORNING/WEDNESDAY NIGHT: Shanghai closed DOWN 42.94 POINTS OR 1.38%  /Hang Sang CLOSED DOWN 320.47 POINTS OR 1.06%   / The Nikkei closed UP 104.29 POINTS OR 0.47%/Australia’s all ordinaires CLOSED UP .56%  /Chinese yuan (ONSHORE) closed DOWN at 6.3238/Oil DOWN to 68.45 dollars per barrel for WTI and 74.53 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN.   ONSHORE YUAN CLOSED DOWN AT 6.3238 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.3179/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH  STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

3 a NORTH KOREA/USA

North Korea/South Korea

Leaders to meet tomorrow

(courtesy zerohedge)

Leaders Of Two Koreas Will Meet Friday Morning At The DMZ

In a meeting that’s widely viewed as a preamble to a historic summit involving President Trump and North Korean leader Kim Jong Un, the leaders of the two Korea’s – North Korean leader Kim Jong Un and South Korean President Moon Jae-in – are preparing to meet at the border at 9:30 am local time on Friday.

Friday’s summit will take place in the Peace House in in the border town of Panmunjom, located in the heart of the demilitarized zone.

Korea

Im Jong-seok, the chief of staff for President Moon, provided a full itinerary of the meeting – which will involve the ceremonial planting of a pine tree on the border – to Bloomberg:

  • Kim to walk across border to South
  • Kim to review South Korean military’s honor guard after walking together with Moon
  • Moon, Kim to start summit at 10:30am local time Friday
  • Moon, Kim to have lunch separately after morning meeting
  • Moon, Kim to plant pine tree on border after lunch
  • Moon, Kim to walk together around border before afternoon session
  • Two Koreas to sign, announce agreements after summit
  • Moon to host banquet for Kim from 6:30pm at peace house
  • No Plan to extend summit to Saturday for now
  • S. Korea: undecided whether Kim’s wife will accompany; hopes Kim’s wife to join dinner
  • Kim Jong Un’s sister part of North Korean delegation
  • S. Korea says issues related to denuclearization can’t be fully resolved at the inter-Korean summit; S. Korea would consider the summit a success if the North’s intention of denuclearization is included in the agreement

Meanwhile, South Korean Foreign Minister Kang Kyung-wha credited President Trump with bringing the two Korean leaders together for Friday’s summit during an interview with CNN’s Christiane Amanpour that’s slated to air Thursday night.

“Clearly, credit goes to President Trump,” Kang told CNN’s Christiane Amanpour in Seoul. “He’s been determined to come to grips with this from day one.”

During the summit, Kim will become the first North Korean leader to cross the DMZ.

The detente between the two countries was an unexpected – but welcome – development, Kang said, for which President Moon also deserves credit. According to her, the combination of tough rhetoric and sanctions was key in bringing the North to the table.

Kang told Amanpour that the détente was unexpected. “I think we’re all surprised. Obviously pleasantly surprised. I think by all indications we are headed towards a very successful summit between my president and Chairman Kim tomorrow.”

She said that Moon’s determination also played a role in the thaw. In her analysis, the combination of tough rhetoric and economic and travel sanctions were instrumental.

President Trump’s rhetoric, of course, has shifted on North Korea as a summit became a more real possibility.

In August, he threatened “fire and fury like the world has never seen.” In September, he said “Rocket Man s on a suicide mission.” This week, he said that Kim Jong-un had been “very open and I think very honorable.”

Kang admitted Presidents Moon and Trump have at times had “different messaging,” but insisted that they maintained close consultations.

At the end, the message was North Korea will not be accepted — never be accepted as a nuclear power.”

Kang said that, if the two leaders can produce a written statement of understanding “on a broad set of issues”, then the meeting would be considered a success.

When asked what would constitute success for President Moon’s summit with Kim, Kang suggested a joint statement of understanding “on a broad set of issues” including denuclearization, peace, and relations between the two countries.

“If we can get — put in writing the North Korean leader’s commitment to denuclearization, that would be a very solid outcome.” She said that it would be “unrealistic” to expect sudden movement toward a formal peace treaty between the two countries.

They have formally been at war since the 1950s, restrained only by an armistice agreement. “You need to create the reality of peace by removing hostilities… And then when there is sufficient confidence on both sides, then you are ready to sign a peace treaty.” Sanctions on North Korea, she said, will not be eased until Kim takes “visible, meaningful steps” toward denuclearization.

Trump reaffirmed earlier during an interview with Fox News that, while there’s still a chance the US-North Korea talks might not happen, the two sides had picked out three possible dates and five possible locations for the summit.

 

3 b JAPAN AFFAIRS

end

c) REPORT ON CHINA/HONG KONG

China’s big worry:  North Korea unifies with the South and becomes a strong USA ally with missiles pointing toward Beijing

(courtesy zerohedge)

As Trade War Escalates, China Fears Being “Outflanked” By US In North Korea

Until very recently, China’s paramount worry regarding the Korean Peninsula involved the possibility that the “cold” war that has endured since the 1953 armistice could might erupt into an all-out nuclear conflict.

But since Kim Jong Un signaled his willingness to negotiate with the US and consider abandoning its nuclear program, China has become more concerned about a suddenly US-allied North Korean reunifying with the South – or worse, pointing its missiles toward Beijing.

Pyongyang

Ahead of talks between South Korean President Moon Jae-in and North Korean leader Kim Jong Un set to begin Friday – talks that are widely viewed as a preamble to negotiations with Trump expected to take place roughly one month later – the Financial Times reported Wednesday that China is worried about being outflanked by the US in the ongoing battle of influence over the peninsula that started with the Korean War.

“Any bilateral deals could take place at China’s expense if Beijing doesn’t have a seat at the table,” said Zheng Yongnian, director of the East Asian Institute at the National University of Singapore and an expert on Chinese foreign policy.

The paranoia gripping Beijing is being articulated by China’s cohort of geopolitical analysts, whose public views often mirror the privately-held beliefs of China’s leadership. Since the US and North Korea first announced their intentions to engage in diplomatic talks, China has expressed cautious optimism over the prospects for a peaceful outcome. But Chinese officials have also insisted that the dialogue be replaced with the resumption of negotiations between Moscow, Beijing, Seoul, Tokyo and Washington – also known as the “six-party talks” – which were last held in 2007.

“Many Chinese experts are worried about a re-unified Korea with a security alliance relationship with the United States and with US troops to stay on the peninsula,” he said.

Although observers say such an eventual outcome is highly unlikely, China’s guard is up. Since the planned talks between Mr Trump and Mr Kim were announced in March, China’s mantra has been that it welcomes dialogue, but bilateral talks with Pyongyang should soon be replaced with a resumption of negotiations that include Moscow, Beijing, Seoul, Tokyo, and Washington. Known as the six-party talks, these were last held in 2007 and could be restarted as early as this summer, diplomats say.

[…]

With China excluded from the bargaining table, any number of outlandish scenarios seem possible in the fevered dreams of the China’s analyst community: from a reunification of North and South Korea under a US security umbrella to a suddenly pro-American North Korea with nuclear weapons pointed at China.

As the FT reminds us, China’s worries aren’t without precedent: Russia accused the US of breaking pledges it made during the reunification of Germany back in 1990 – a grudge the country’s leadership harbors to this day.

Meanwhile, some analysts have cited the increase in oil supplies flowing to the North – in violation of US sanctions – as evidence that the North is still economically dependent on its historical benefactor.

Wang Chong of the Charhar Institute in Beijing, said the meeting between the two leaders meant “the settlement of the peninsula issue cannot be reached without China’s contribution . . . I do not think China is excluded. Only some countries take turns being out in front.”

Mr Kim has gone out of his way to reassure China. Evoking their common socialist roots, a North Korean troupe performed a Chinese Cultural Revolution ballet called The Red Detachment of Women in Pyongyang last week.

[…]

When a busload of Chinese tourists crashed in Pyongyang on Sunday, killing 32, Mr Kim met with the Chinese ambassador in Pyongyang to deliver condolences, and then went to the hospital to meet survivors — an unheard of step for the leader.

[…]

More likely than any grand bargain, say diplomats, is incremental progress towards dismantling its nuclear weapons programme and lifting of sanctions. “Kim is doing everything to secure his regime — he is not going to suddenly throw it all away for unification,”said one diplomat from an Asian country.

Not to mention the fact that China is still responsible for roughly 90% of the foreign trade flowing in and out of the reclusive Communist state.

The leaders of the world’s second-largest economy have also been engaged in a battle of wills with President Trump over the US’s demands that China abandon its purportedly “unfair” trade practices.

However, others are more suspicious of the North’s motives. One analyst suspects the North is trying to play the US and China off each other and hoping the benefit by securing more flexibility for its nuclear program. After all, China has become steadily more critical of the North’s nuclear ambitions in recent years as the country’s scientists have come incredibly close to being able to manufacture a nuclear warhead capable of fitting atop one of the North’s intercontinental ballistic missiles.

But in the latest sign that the North’s sudden willingness to negotiate with the US might be some kind of geopolitical ploy, reports surfaced Wednesday morning that a crucial tunnel in the North’s Punggye-ri nuclear test site had finally collapsed.

This immediately aroused speculation that Kim might’ve had an ulterior motive for proclaiming the tests had been suspended. But at the very least, it calls into question Kim’s motives for seeking the talks in the first place.

So, is China right to worry about Pyongyang cozying up to the US? Or is it Trump who is underestimating Kim’s cunning.

What do you think?

END

China is planning to lower the auto tariffs from 25% to either 15% or 10%. However cars manufactured in the uSA will still have its 25% tariff as Xi is still dueling with Trump

(courtesy zerohedge)

China Planning To Lower Auto Tariffs As Soon As Next Month

Two weeks after Chinese President Xi Jinping reiterated China’s plan to begin liberalizing its automobile market by lowering tariffs on imported cars – dealing what could be a death blow to the government’s strategy of forcing foreign manufacturers to enter into profit-sharing (and intellectual property sharing) agreements with local manufacturers, just to gain entry to the mainland market – senior officials at the State Council, China’s cabinet, are saying the lower tariffs could be announced as soon as next month, according to Bloomberg.

Xi isn’t the only senior Chinese official to speak on the issue. Back in January, Chinese Premier Liu He promised his audience at Davos that the tariffs would be lowered.

Auto

High-end brands like BMW and Lexus have the most to gain from lower tariffs in China because they often don’t have a manufacturing presence in the country, which means their cars face the full 25% import tariff.

The State Council, or China’s cabinet, is weighing proposals to reduce the levy on imported cars to 10 percent or 15 percent, said the people, who asked not to be identified as the information isn’t public. The current rate is 25 percent. An announcement on the decision could be made as soon as next month, they said. The finance ministry didn’t respond to a fax seeking comment.

The move comes as investors and executives fret about a trade war between China and the U.S. China has responded to U.S. President Donald Trump’s tariff threats with similar force — though at the same time it has signaled opening up its finance and auto industries. Trump said on Tuesday that Treasury Secretary Steven Mnuchin will depart for China within days.

A lower tariff would also benefit brands such as Daimler AG’s Mercedes-Benz and Volkswagen AG’s Porsche as their imported models would become more competitive.

Elon Musk will likewise be delighted if this report is true.

And this isn’t the only major policy change China is considering. China last week said it planned to allow foreign automakers to own more than 50% of domestic factories. But despite President Donald Trump’s delight earlier this month when Xi mentioned lowering the tariffs – which Trump mistakenly interpreted as an olive branch in the burgeoning trade war between the two countries – US carmakers might still face scrutiny. China is threatening to slap an additional 25% import duty on cars made in the US. Higher tariffs on US cars would be particularly bad news for Tesla CEO Elon Musk, who has reportedly been trying to build a Tesla factory in Shanghai’s free economic zone. Musk hailed Xi’s announcement as a “very important action by China.”

Still, imports only comprise a small part of the Chinese market. China imported 1.22 million vehicles last year, or about 4.2% of its total.

end

USA top admiral warns that China now controls the South China Sea

(courtesy zerohedge)

Top US Admiral Warns China Now Controls The South China Sea

An unclassified 50-page transcript on Advance Policy Questions for Admiral Philip Davidson, USN Expected Nominee for Commander, U.S. Pacific Command, just confirmed the collapse of American exceptionalism in the South China Sea. Adm. Davidson, the likely nominee to replace departing U.S. Pacific Command Chief Admiral Harry Harris, warned that Beijing has the capability and capacity to control the South China Sea “in all scenarios short of war with the United States.”

Navy Adm. Philip Davidson testifies during a Senate Armed Services Committee hearing on Capitol Hill in Washington, Tuesday, April 17, 2018. (Source: AP)

In written testimony to the US Senate Armed Services Committee released last Tuesday, Adm. Davidson said China is seeking “a long-term strategy to reduce the U.S. access and influence in the region,” which he claims the U.S. must maintain its critical military assets in the area. He views China as “no longer a rising power,” but rather a “great power and peer competitor to the United States in the region.” Adm. Davidson agreed with President Trump’s recent assessment on China, calling the country a “rival.”

Adm. Davidson warns, that it is Beijing’s clear intent to disintegrate the seventy years of U.S. alliances and partnerships in the region.

“I am also concerned about Beijing’s clear intent to erode U.S. alliances and partnerships in the region. Beijing calls them a relic of the Cold War. In fact, our alliances and partnerships have been the bedrock of stability in the Indo-Pacific region for the past seventy years, and they remain a core element of our defense strategy.”

Adm. Davidson was then questioned about China’s militarization activities in the South China Sea. He responded by indicating Beijing “would easily overwhelm military forces,” because of their strategic weaponized islands in the region.

“China will be able to extend its influence thousands of miles to the south and project power deep into Oceania. The PLA will be able to use these bases to challenge U.S. presence in the region, and any forces deployed to the islands would easily overwhelm the military forces of any other South China Sea-claimants. In short, China is now capable of controlling the South China Sea in all scenarios short of war with the United States.”

US Senate Armed Services Committee then questioned Adm. Davidson about his stance concerning Beijing’s Belt and Road Initiative (BRI). He replied, calling the economic initiative, “predatory” in nature because China’s low-interest loans would enable Beijing to manipulate trade deals.

“The predatory nature of many of the loans and initiatives associated with the Belt and Road Initiative (BRI) lead me to believe that Beijing is using BRI as a mechanism to coerce states into greater access and influence for China. The nations that accept China’s offer of low-interest loans, grants, and other financial incentives risk Beijing later manipulating economic deals into future security arrangements, and when these countries are unable to pay, Beijing often offers to swap debt for equity (e.g., the Port of Hambantota in Sri Lanka). Ultimately, BRI provides opportunities for China’s military to expand its global reach by gaining access to foreign air and maritime port facilities. This reach will allow China’s military to extend its striking and surveillance operations from the South China Sea to the Gulf of Aden. Moreover, Beijing could leverage BRI projects to pressure nations to deny U.S. forces basing, transit, or operational and logistical support, thereby making it more challenging for the United States to preserve international orders and norms. “

In response to questions about how the U.S. Navy in the South China Sea should handle the increased military presence in the region. Adm. Davidson advocated for a sustained U.S. military approach, with the increased investment in new high-tech weaponry.

“US operations in the South China Sea—to include freedom of navigation operations—must remain regular and routine. In my view, any decrease in air or maritime presence would likely reinvigorate PRC expansion.”

In regards to the type of weapons, Adm. Davidson outlined some critical technologies for immediate investment:

“A more effective Joint Force requires sustained investment in the following critical areas: undersea warfare, critical munitions stockpiles, standoff weapons (Air-Air, Air-Surface, Surface-Surface, Anti-Ship), intermediate range cruise missiles, low cost / high capacity cruise missile defense, hypersonic weapons, air and surface lift capacity, cyber capabilities, air-air refueling capacity, and resilient communication and navigation systems.”

Adm. Davidson’s testimony to the US Senate Armed Services Committee, provides us with the much-needed knowledge that American exceptionalism is quickly deteriorating in the South China Sea after more than seventy years of control. The transcript reveals how America’s military will continue to drain the taxpayers, as it will need an increasing amount of investments and military assets in the Eastern Hemisphere to protect whatever control it has left. The clash of exceptionalism between Beijing and Washington is well underway, will war come next?

end

4. EUROPEAN AFFAIRS

European ECB report to Europe/Press conference

Optimism from Draghi has he downplays soft economic data sends the Euro higher along with gold/silver

(courtesy zerohedge)

Euro Rebounds, Reclaims 1.22 As Draghi Downplays Soft Econ Data

One look at the recent Citi Eurozone Economic Surprise Index, which as shown below, recently plunged to 6 year lows, confirming that Eurozone economic growth recently hit a brick wall and has been in freefall (largely due to the collapsing Chinese credit impulse)…

… is sufficient to explain why most traders were expecting a more dovish Draghi to emerge from today’s press conference. Instead, Draghi once again surprised with his bubbly optimism, downplaying the clearly soft economic data.

Specifically, the ECB president said that he expects economic growth to remain solid, and underscored the hawkish case by stating that he expects “solid, broad-based growth.” In a follow up question, Draghi attributed some of the recent slowdown in economic data to “one-off” factors, which would read as fairly positive for the outlook. Specifically, he blamed the weather, and – once again – the timing of Easter:  “Some normalisation was expected, mostly due to temporary factors, for example cold weather, strikes, timing of Easter”.

He also cited continued strength in data flow on an absolute basis – he summarizes with the line “caution, tempered by unchanged confidence.”

Having touched on FX volatility in recent press conference, Draghi was also asked a question about recent FX moves, although he swerved away from an outright comment on EUR, saying the ECB did not discuss exchange rate volatility and does not comment on recent EUR weakness despite given an opportunity.

Commenting on the presser, ING said that Draghi’s optimism may encourage Euro bulls, and adding that Draghi “not expressing too much concern over recent softening” in economic data has helped the euro and may encourage investors who are bullish on the currency: “EUR passes its first test on Draghi’s comments” according to ING analyst Viraj Patel.

According to ING, the message is that euro-zone growth outlook “remains solid and broad-based could excite some lingering EUR bulls” Patel said, and added that “reading between the lines, one could see these are levels that the ECB are comfortable with.”

He concluded that lower EUR/USD levels will be seen by bulls as “an attractive entry point to go long again ahead of the June” ECB meeting, although notes that hard economic data will determine conviction.

Sure enough, in response to the ECB’s lack of concerns about the economy and FX volatility, the EUR jumped, rising above 1.22.

end

Germany/Deutsche bank

World’s largest derivative bank and player reports disastrous results as it totally retreats from USA banking:

(courtesy zerohedge)

8. EMERGING MARKET

Venezuela

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

Euro/USA 1.2182 UP .0011/ 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/JAPAN TAPERING BOND PURCHASES /USA FALLING INTEREST RATES AGAIN/HOUSTON FLOODING/EUROPE BOURSES DEEPLY IN THE GREEN    

USA/JAPAN YEN 109.20 DOWN  0.169 (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 1.3964 UP .0028  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2839 UP .0002 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS THURSDAY morning in Europe, the Euro ROSE by 11 basis points, trading now ABOVE the important 1.08 level RISING to 1.2201; / Last night Shanghai composite CLOSED DOWN 42.94 POINTS OR 1.38% /   Hang Sang CLOSED DOWN 320.47 POINTS OR 1.06% /AUSTRALIA CLOSED UP .56% / EUROPEAN BOURSES  OPENED GREEN

The NIKKEI: this THURSDAY morning CLOSED UP 104.29 POINTS OR 0.47%

Trading from Europe and Asia

1/EUROPE OPENED  DEEPLY IN THE GREEN

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 320.47 POINTS OR 1.06%  / SHANGHAI CLOSED DOWN 42.94 POINTS OR 1.38%   /

Australia BOURSE CLOSED UP .56%

Nikkei (Japan) CLOSED UP 104.29 POINTS OR 0.47%

INDIA’S SENSEX  IN THE GREEN 

Gold very early morning trading: 1325.25

silver:$16.58

Early THURSDAY morning USA 10 year bond yield: 3.00% !!! DOWN 3  IN POINTS from WEDNESDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/ 

The 30 yr bond yield 3.19 DOWN 2  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early  THURSDAY morning: 91.10 DOWN 7  CENT(S) from TUESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.685% DOWN 3  in basis point(s) yield from WEDNESDAY/

JAPANESE BOND YIELD: +.0.06%  DOWN 7/10   in basis points yield from WEDNESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.270% DOWN 3  IN basis point yield from WEDNESDAY/

ITALIAN 10 YR BOND YIELD: 1.747  DOWN 3  POINTS in basis point yield from WEDNESDAY/

the Italian 10 yr bond yield is trading 48 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD:FALLS TO +.593%   IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.21110 DOWN .0060 (Euro DOWN 60 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 109.26 DOWN 0.108 Yen UP 11 basis points/

Great Britain/USA 1.3927 DOWN .0009( POUND DOWN 9 BASIS POINTS)

USA/Canada 1.2865 UP  .0028 Canadian dollar DOWN 28 Basis points AS OIL FELL TO $67.84

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This afternoon, the Euro was DOWN 60 to trade at 1.21110

The Yen FELL to 109.27 for a GAIN of 11 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 9 basis points, trading at 1.3927/

The Canadian dollar FELL by 28 basis points to 1.2868/ WITH WTI OIL FALLING TO : $67.84

The USA/Yuan closed AT 6.3365
the 10 yr Japanese bond yield closed at +.06%  DOWN 7/10   IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield DOWN 1   IN basis points from WEDNESDAY at 2.992% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.1784  DOWN 2     in basis points on the day /

THE RISE IN BOTH THE 10 YR AND THE 30 YR ARE VERY PROBLEMATIC FOR VALUATIONS

Your closing USA dollar index, 91.59  UP 41 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED UP 42.11 POINTS OR 0.57%
German Dax :CLOSED UP 78.17 POINTS OR 0.63%
Paris Cac CLOSED UP 40.28  POINTS OR 0.74%
Spain IBEX CLOSED UP 44.30 POINTS OR 0.45%

Italian MIB: CLOSED UP 238.43 POINTS OR 1.00%

The Dow closed UP 238.51 POINTS OR 0.99%

NASDAQ closed UP  114.94 Points OR 1.64%      4.00 PM EST

WTI Oil price; 67.84 1:00 pm;

Brent Oil: 74.361 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 62.76 UP 35/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 35 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO +.593% 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:$68.20

BRENT: $74.69

USA 10 YR BOND YIELD: 2.98%   THIS RAPID RISE IN YIELD IS ALSO VERY DANGEROUS/RECESSION COMING/DERIVATIVES FRY!!

USA 30 YR BOND YIELD: 3.17%/DEADLY

EURO/USA DOLLAR CROSS: 1.2103 DOWN .0067  (DOWN 67 BASIS POINTS)

USA/JAPANESE YEN:109.36 DOWN 0.018/ YEN UP 2 BASIS POINTS/ .

USA DOLLAR INDEX: 91.577 UP 41 cent(s)/dangerous as the lower the dollar the higher the inflation.

The British pound at 5 pm: Great Britain Pound/USA: 1.3917: DOWN 0.0018  (FROM YESTERDAY NIGHT DOWN 18 POINTS)

Canadian dollar: 1.2880 DOWN 44 BASIS pts

German 10 yr bond yield at 5 pm: +0.634%


VOLATILITY INDEX:  16.48  CLOSED  down 1.36  

LIBOR 3 MONTH DURATION: 2.3617%  .

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

TRADING IN GRAPH FORM FOR THE DAY

Facebook Feeding Frenzy Saves Market From Draghi Doldrums

Coming into today, in its preview of the day’s main event, the ECB decision and presser, UBS’ Paul Donovan said that “the main point of interest at today’s ECB press conference is what color tie ECB President Draghi will wear. That is a far more uncertain outcome than the policy decision.” He was right: Mario Draghi downplayed the recent collapse in European economic data, said the ECB is not concerned about the EUR and promised that the ECB is not engaging in a stealth taper.

And while the market’s initial read was of a hawkish take by Draghi, just before 10am ET something snapped, and the EURUSD tumbled…

… sending the dollar index surging.

Whoever put on the trade, also lit a fire under stocks…

… while 10Y yields dumped, with 3.00% now proving to be a formidable resistance, as all those who just had to dump in the past few days, appear to have been washed out.

Perhaps Citi had something to do with today’s action, issuing a trade reco to Buy 3% 10-Year Treasuries with a Target of 2.65% and a stop out at a close over 3.15%.

What was most interesting about today’s bond market action was the return of the acute flattening that we had observed in the last few weeks until the recent sharp steepening.

Incidentally, today’s curve shifts mean that the mega relative curve trade is now deep underwater to the tune of $15-20MM in book losses in just one day.

As for the strange intraday action, Citi put it best: “There are no real headlines to note. We did hear from Kudlow sounding constructive on trade tensions, while Mattis has said that no decision has been made on any withdrawal from the Iran nuclear deal (deadline for sanction waivers expires May 12). However the comments are not exactly groundbreaking. More likely, it seems that the US equity open is enjoying how yields traded lower overnight. The squeeze upon open seems to have triggered a broader bid for USD assets. As we highlighted in the NY open, it looks like positioning is continuing to be cleaned out and this makes for choppy intraday price action.”

There was no surprise what happened in the Nasdaq however, where as we noted earlier Gartman decided to unveil a new short, only to be stopped out minutes later.

Joking aside, for once the euphoria from a couple of huge beats did not fade away, and tech shares rallied after blockbuster earnings from Facebook and AMD. The Nasdaq 100 Index surged as much as 2.3%, with Facebook soaring 10%, its best day in two years, while AMD lifted beleaguered chipmakers.

That said, the party may not last long: Apple’s earnings loom on May 1, and if the recent stories of a collapse in demand are true, the tech party will prove very short lived.

Still, putting it all together, and stocks are basically where they started the week, and have just barely managed to erase the shock from Caterpillar’s “high water mark” guidance.

Elsewhere, aluminum climbed and Alcoa Corp. gained after Oleg Deripaska was reported to keep control of United Co. Rusal even as the Russian aluminum giant battles for survival in the face of harsh U.S. sanctions, according to a Bloomberg report. Amid the commodity metal chaos, oil went nowhere.

END

This morning’s trading:

Stocks Spike As Confused Bank Admits “There Are No Real Headlines To Note”

Confused as to why stocks are soaring… along with the dollar… and bonds… join the gang as one confused bank trading desk admits there are no real headlines to note” behind this price action…

Bonds are bid, stocks are bid, and the dollar is bid…

EURUSD dived – which is odd since the ECB meeting came and went with little of note.

Stocks are suddenly spiking (and VIX plunging) – Dow futures have retraced Fib 61.8% of the early week plunge…

For no good reason:

We did hear from Kudlow sounding constructive on trade tensions, while Mattis has said that no decision has been made on any withdrawal from the Iran nuclear deal (deadline for sanction waivers expires May 12). However the comments are not exactly groundbreaking.

And Treasury yields are sliding – 10Y back below 3% and holding…

…perhaps reflexively driving the gains in stocks as extreme longs in VIX Futs, S&P Futs, & extreme shorts in Treasury futs can’t coexist forever.

end

This morning’s reports:

First: initial claims drop but durable goods also disappoint

(courtesy zerohedge)

Initial Claims Drop To 49-Year Low But Durable Goods Orders Disappoint

Another week, another near record low in US initial claims, which in the week ended April 21 dropped to just 209K from 233K last week, the lowest print since September 1969, and below consensus estimates of 230K. Continuing claims also fell, although less dramatically, by 29k to 1.837 million. That said, some of the data was questionable, with the Labor Department saying claims for Colorado and Maine were estimated last week.

Meanwhile, while Durable Goods rose 2.6% in March, beating expectations of 1.6% if lower from last month’s 3.5% increase, much of this was thanks to transports, which rose 7.6% as well as nondefense aircraft, which soared 44.5%. Excluding transports, durables missed, and were unchanged on the month, down from 0.9% last month, and below the 0.5% expected increase.

Core Capex in the form of capital goods orders nondefense ex air also missed, declining -0.1% in March, far below the 0.5% expected increase, and confirming once again that instead of investing the Trump tax reform proceeds in their businesses, companies are largely allocating capital to dividends and buybacks.

However, perhaps the most important print came in the form of the far less closely followed Advance Goods Trade Deficit, which unexpectedly narrowed substantially, from 75.9BN to just $68.0BN, and far better than the $75BN expected. This suggests that tomorrow’s Q1 GDP print could be a material upside surprise.

end

First we had Sears in trouble, then Toys R Us and now PetSmart hurdles towards bankruptcy as it looks like another  LBO

bites the dust

(courtesy zerohedge)

PetSmart Bonds Sink As Most Expensive LBO In Retail History Hurtles Toward Bankruptcy

With Sears’ hedge-fund owner stepping in the backstop the flailing retail giant as it shambles toward bankruptcy, and what’s left of Toys R’ Us is struggling through the indignity of liquidation after the company failed to find a buyer in bankruptcy, 2018 is shaping up to be just as bad – if not worse – of a year for American retailers as 2017 was. Already, retail defaults reached an all-time high during the first quarter, Moody’s Investors Service revealed. And the fallout is far from over.

And in what’s shaping up to be the next big private-equity backed retailer to crumble under a stupefying pile of debt, Bloomberg reported today that investors in pet supply retailer PetSmart are panicking as the $8.1 billion in bond and loan maturities that are soon coming due might force it too into bankruptcy, even as the market for pet supplies in the US is in the midst of an unprecedented boom.

Americans spent $70 billion on pet supplies in 2017, compared with $41 billion in 2007, according to data provided to Bloomberg by the American Pet Products Association.

PetSmart

The company’s troubles have caused the value of its bonds trading on the secondary market to plummet, with some of these bonds are now trading at half of face value and a yield of 21.2%, according to Bloomberg. What’s worse, the adjustable-rate bonds carry a coupon of 300 basis points above Libor, with a floor of 1%. This is hugely problematic, given 3M USD Libor recently touched its highest level in 13 years.

In retrospect, BC Partner’s offer seems almost ridiculously high.

But BC Partners’ purchase price amounted to retail’s most expensive takeover to date. It valued PetSmart shares 11 percent higher than analysts’ consensus, and at a 40 percent premium to their price before the sale process began.

Of course, this is hardly news to anybody who has been following the troubled world of American retail. In what sounds to us like a recipe for instant business success, private equity firm BC Partners led a leveraged buyout of the company in 2015, topping its own highest bid to lock in the winning offer at $8.7 billion, or $83 a share,despite having no retail experience. That makes the PetSmart buyout the most expensive takeover in retail history.

One rival, Apollo Management, which had submitted a bid for $81.50 as a handful of firms weighed a buyout later confided in PetSmart’s investment bank, JP Morgan, that Apollo would never have paid anything close to the $83 per share that BC and its partners did. Yet, it was already too late. The deal was done.

And as one might expect given their lack of experience in the industry, the store’s private equity managers quickly realized that running a giant big-box chain isn’t a particularly good business strategy unless you have a massive e-commerce presence to compliment it.

So last year, BC returned to the debt markets and – true to the firm’s MO – massively overpaid for Chewy.com,a buzzy e-commerce startup, in what is still the largest e-commerce acquisition ever. The final price tag? $3.4 billion, beating out Wal-Mart’s acquisition of online retailer Jet.com.

Barely four months after leading the company through the acquisition, PetSmart CEO Michael Massey decided to step down. Board member Raymond Svider stepped in to take the reins while the board conducted a search for a new CEO. Nine months later, no successor has been found.

Now, one of PetSmart’s biggest problems – at least as far as its bondholders are concerned – is that it closely fits an unflattering profile: The specialty retailer taken private in an LBO that suddenly couldn’t manage its pile of debt. The biggest difference between PetSmart and other failures of the genre like Toys R’ Us and Sports Authority is that the PetSmart LBO happened after the financial crisis.

PetSmart is one of the starkest examples yet of the troubles afflicting all of those big-box chains that specialize in one type of goods. Many retailers, such as Sports Authority and Toys “R” Us, were bought by private equity shops and loaded with leveraged buyout debt.

But the big-box model was designed before the encroachment of online shopping and predicated on large sales volumes. When Amazon came along and cut into revenue, the companies flailed under the debt payments. Bookseller Borders Group and electronics chain Circuit City shut down during the recession. Sports Authority closed in 2016, while Toys “R” Us is now liquidating its U.S. business.

“Big-box LBO’d concepts are having a hard time surviving,” said Derek Pitts, head of restructuring at investment bank PJ Solomon.

And so far, every hint at the company’s earnings confirms this narrative. Reuters managed to get its hands on the company’s third-quarter earnings late last year (since PetSmart is privately held, this information isn’t public). The third quarter was the company’s first full quarter after the Chewy deal, and the results weren’t encouraging, to say the least, and they also drew some undesirable comparisons to Amazon (a company PetSmart had sought to emulate but…not like this).

However, the combined company’s Ebitda sank 34% to US$189m, from US$288m a year earlier, driven by negative Ebitda at Chewy that has been exacerbated by ongoing costs related to growth initiatives and customer acquisition. Petsmart’s standalone Ebitda fell 15%.

“The company is draining cash out of existing Petsmart to fund Chewy,” one of the sources said. “It’s the Amazon model – Amazon takes money from the cloud business to fund the retail business.”

The company’s debt includes the term loan, a US$1.35bn secured note used to fund the Chewy purchase and US$2.55bn of unsecured notes, US$650m of which was also used to fund the Chewy deal.

But while most of PetSmart’s problems are common in the retail space (too much debt, squeezed margins etc.), the company is presently grappling with a scandal that threatens to alienate its most loyal customers: A rash of dog deaths during grooming appointments at its locations has elicited protests and calls for the company to improve its oversight.

PetSmart has yet to announce the rash of store closures that typically precedes a retailers’ final lurch into bankruptcy. But one thing’s for sure: Hell hath no fury like a dog owner who must suddenly come to grips with the loss of a pet.

SWAMP STORIES

Giuliani has met Mueller and surprisingly he is discussing the upcoming Trump interview

(courtesy zerohedge)

Giuliani Meets With Mueller To Discuss Trump Interview

After former White House lead attorney John Dowd was pushed out for insisting that President Trump agree to an in-person interview with Special Counsel Robert Mueller, Rudy Giuliani, the newest member of Trump’s legal team and also now apparently the de facto leader, has reportedly met with Mueller to begin negotiating the terms of a Trump meeting, the Washington Post reported Wednesday.

The irony in Giuliani meeting with Mueller is that Giuliani once served as the US attorney for the Southern District of New York – the same office that is investigating Trump lawyer Michael Cohen.

Giuliani

The meeting is also surprising for another reason: Until recently, it had appeared as if Trump would ultimately decline to sit for an interview with Mueller. Furthermore, rumors recently circulated that Mueller and his team were preparing a path forward that didn’t involve a presidential interview.

But all that has changed, apparently.

During their meeting, Giuliani reportedly sought to wrestle some information out of Mueller about the probe and how much longer it could reasonably be expected to continue. It has previously been reported that Mueller could conclude the probe within a few months of an interview with Trump, and that a presidential interview was the special counsel’s last major remaining obstacle. Mueller also reportedly told Giuliani that his questions would mostly pertain to the transition and Trump’s first months in office.

The face-to-face discussions ­illustrated how Giuliani is functioning as Trump’s chief liaison and lead negotiator with the special counsel. The meeting renewed talks that had largely faltered since the resignation last month of John Dowd, a veteran lawyer who was serving as Trump’s lead outside attorney on the investigation.

“I’m doing it because I hope we can negotiate an end to this for the good of the country and because I have high regard for the president and for Bob Mueller,”Giuliani said in an interview with The Washington Post last week.

Trump said in a statement last week that Giuliani “wants to get this matter quickly resolved.”

Of course, Giuliani is a particularly suitable lead attorney – and it’s somewhat surprising that he is only just joining the Trump team – thanks to his longstanding friendship with Mueller.

Giuliani, 73, a former New York mayor and U.S. attorney, has known Mueller for decades through their work in federal law enforcement. Both men were joined by members of their teams in the Tuesday sit-down meeting at Mueller’s office in southwest Washington.

During their first meeting, the former New York mayor reportedly made it clear to Mueller that Trump is still feeling reluctant – a position that’s hardened since the FBI raid on Cohen’s home, hotel room and office. And while an interview now appears more likely, Trump could still pull out at the last minute and risk a subpoena from Mueller. If a subpoena is issued, it could trigger a legal battle that would likely require the Supreme Court to weigh in.

But maybe all that can be avoided.

Compared to some of the other characters on the Trump legal team, Giuliani actually seems like the adult in the room. But is it also possible that Mueller knows Giuliani well enough to know that the former New York City mayor can be, at times, too trusting? In other words, just because Giuliani seems like he has a steady hand on the wheel, doesn’t mean he can prevent Trump from walking into a perjury trap.

 end
Trump is interviewed on Fox and Friends:
1. Trump says that his approach to the DOJ may change
2. Upset with Tester of VA nominee Jackson and his subsequent departure from the nomination process
3. Iran; Trump will no doubt leave the agreement despite the urging of Macron to continue with it
4. Cohen: does a small part of his personal stuff and the raid has nothing to do with him but he is still upset by it
5. Very critical of the crook Comey
(courtesy zerohedge)

Trump Says “Hands Off” Approach To DOJ “Could Change” In Fox Interview

During a call-in interview with Fox & Friends Thursday morning that snowballed into an angry rant about “fake news” organizations, Ronny Jackson, James Comey, Michael Cohen, Kanye West, US relations with Iran, the upcoming talks with North Korea, President Trump lashed out at the FBI and its former director, James Comey, while the president claimed he has “nothing to do” with Cohen’s legal troubles.

Despite the cloud of the Russia probe hanging over his head, Trump said he’s still managed to accomplish a lot during his first term in office. And while Trump says he’s tried to “stay away” from interfering with the Department of Justice, at some point his “hands off” approach could change.

Of course, his aggressive remarks followed reports last night that the newest member of his legal team, Rudy Giuliani, had restarted talks with Special Counsel Robert Mueller.

The interview started with Trump calling out Montana Democratic Sen. John Tester for bringing up allegations about Jackson, including his nickname, “the candy man,” which he purportedly earned due to his willingness to hand out prescription drugs in his role as personal physician to US presidents.

Trump said Jackson had withdrawn his nomination to lead the VA largely to spare his family from Democratic scrutiny. Trump insisted that Jackson is an example of an American who should be admired, and that while nobody is truly qualified to lead the VA, Jackson would’ve done a great job.

FOX & friends

@foxandfriends

President @realDonaldTrump reacts to Dr. Ronny Jackson withdrawing his nomination to be VA Secretary

Asked about his next pick to lead the VA, Trump said only that the candidate would have a “political” background.

Commenting on his meeting with Emmanuel Macron, Trump said the two men had “a fantastic time” and that they “accomplished a lot”. Though Trump wouldn’t say specifically what they agreed on, he said Macron would be leaving with “a different view on Iran”. “He knows where I’m coming from,” he said.

FOX & friends

@foxandfriends

What’s the fate of the Iran nuclear deal? President @realDonaldTrump responds after Macron predicts POTUS will scrap the deal

When it comes to Iran, Trump said the Iranian government has mostly refrained from provocative acts and “death to America” rhetoric since he took office. “They don’t try that stuff with me, you don’t see their little boats circling our ships with me. Because if they do, they  know they’re not going to be there very long.”

Moving on to the subject of Michael Cohen, Trump blasted the FBI for raiding Cohen’s home early in the morning while his wife was still in bed, and generally dismissed the raid as part of a witch hunt. Cohen only handles a “tiny fraction” of Trump’s legal work, and that the investigation into his former personal attorney “has nothing to do with me.”

FOX & friends

@foxandfriends

President @realDonaldTrump comments on Michael Cohen

On the subject of North Korea, Trump said negotiations between the US and the reclusive state are going “very well”. And in information that hadn’t previously been disclosed, Trump revealed that Mike Pompeo’s clandestine meeting with Kim Jong Un hadn’t been planned in advance. Meanwhile, Trump added that the US has “three or four” dates for the historic summit picked out, as well as about five potential locations.

Trump again congratulated Kanye West for saying he respects the president, and argued that West sees black unemployment at historical lows under Trump and understands that Republicans are doing more for the black community than Democrats ever would. The president also gave a shoutout to Diamond & Silk, a pair of black women who are outspoken Trump supporters who reportedly faced censorship at the hands of Facebook.

FOX & friends

@foxandfriends

Former FBI Dir. James Comey says he’s not a leaker. President @realDonaldTrump reacts.

But the president saved his harshest language for James Comey, who had appeared in a CNN town hall the night before. Trump again branded him a “leaker” and a “liar” who should be facing criminal charges.

Fox News

@FoxNews

.@POTUS on @foxandfriends: “Happy birthday to Melania.”

Early in the interview, which ran for about 30 minutes, Trump shared what he bought Melania for her birthday with the Fox & Friends team.

END

I will  see you FRIDAY night

HARVEY

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