MAY 11/GOLD FALTERS A BIT DOWN $1.75 TO $1320.55/SILVER DOWN 2 CENTS TO $16.72/BITCOIN WHACKED QUITE A BIT DOWN 578 DOLLARS TO $8383./THE ARGENTINIAN PESO COLLAPSES AS DOES THE TURKISH LIRA/WALL STREET JOURNAL REPORTS THAT THE FBI HAD A MOLE INSIDE THE TRUMP CAMPAIGN/ PLUS OTHER SWAMP STORIES FOR YOU TONIGHT/

 

 

GOLD: $1320,55  DOWN $ 1,75  (COMEX TO COMEX CLOSINGS)

Silver: $16.72 DOWN  2 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1318.50

silver: $16.65

For comex gold:

MAY/

NUMBER OF NOTICES FILED TODAY FOR MAY CONTRACT:5 NOTICE(S) FOR 500 OZ.

TOTAL NOTICES SO FAR 618 FOR 61800 OZ (1.9066 tonnes)

For silver:

MAY

173 NOTICE(S) FILED TODAY FOR

865,000 OZ/

Total number of notices filed so far this month: 5837 for 29,185,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $8648/OFFER $8748: DOWN $316(morning)

Bitcoin: BID/ $8383/offer $8483: DOWN $578  (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:  1325.88

NY price  at the same time: 1320.10

PREMIUM TO NY SPOT: $5.78

ss

Second gold fix early this morning:  1329.07

USA gold at the exact same time:  1319.80

PREMIUM TO NY SPOT:  $9.27

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 ROSE BY A CONSIDERABLE  3339 CONTRACTS FROM  194,936  RISING TO 198,275  WITH YESTERDAY’S 22 CENT GAIN IN SILVER PRICING   WE ARE NOW WITNESSING OUR USUAL AND CUSTOMARY COMEX LONG LIQUIDATION AS WE ENTERED INTO THE ACTIVE DELIVERY MONTH OF MAY AS LONGS PACK THEIR BAGS AND MIGRATE OVER TO LONDON.  WE WERE  NOTIFIED THAT WE HAD A GIGANTIC SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP :   3261 EFP’S FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE OF 3261 CONTRACTS. WITH THE TRANSFER OF 3261 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 3261 EFP CONTRACTS TRANSLATES INTO 16.31 MILLION OZ  ACCOMPANYING:

1.THE 22 CENT RISE IN  SILVER PRICE  AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR MAY COMEX DELIVERY. (29.95 MILLION OZ)

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

16,196 CONTRACTS (FOR 9 TRADING DAYS TOTAL 16,196 CONTRACTS) OR 80.98 MILLION OZ: AVERAGE PER DAY: 1799 CONTRACTS OR 8.997 MILLION OZ/DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  80.98 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 11.568% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:            1,226.4      MILLION 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

ACCUMULATION FOR APRIL 2018:                                          385.75         MILLION OZ

RESULT: WE HAD A HUGE SIZED INCREASE IN COMEX OI SILVER COMEX OF 3339 WITH THE 22  CENT GAIN IN SILVER PRICE. WE HAVE NOW ENTERED THE NEW ACTIVE MONTH OF MAY.   THE CME NOTIFIED US THAT IN FACT WE HAD AN GIGANTIC  SIZED EFP ISSUANCE OF 3261 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:  3261 EFP CONTRACTS FOR JULY, AND ZERO FOR ALL OVER MONTHS   FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 3261). TODAY WE GAINED 6600  TOTAL OI CONTRACTS  ON THE TWO EXCHANGES: i.e. 3261 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH AN INCREASE OF 3339  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE RISE IN PRICE OF SILVER OF 22 CENTS AND A CLOSING PRICE OF $16.73 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY IN THIS  ACTIVE MAY DELIVERY MONTH. IT SURE SEEMS THAT WE MUST HAVE HAD SOME BANKER SHORT COVERING ON BOTH EXCHANGES.

In ounces AT THE COMEX, the OI is still represented by UNDER 1 BILLION oz i.e. .991 MILLION OZ TO BE EXACT or 142% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED AT THE COMEX: 146 NOTICE(S) FOR 730,000 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 , APRIL: 2.485 MILLION OZ  AND MAY: 29.95 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/ 385.75 MILLION OZ/ (FINAL)

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, 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 A HUGE 11,165 CONTRACTS UP TO 506,316 WITH THE GAIN IN THE GOLD PRICE/YESTERDAY’S TRADING (GAIN OF $9.60) WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF MAY.  THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A LARGE SIZED 8945 CONTRACTS :   JUNE SAW THE ISSUANCE OF 8945 CONTRACTS , MAY SAW THE ISSUANCE OF 0 CONTRACTS  AND AUGUST SAW THE ISSUANCE OF: 0 CONTRACTS WITH ALL OTHER MONTHS ZERO.  The new OI for the gold complex rests at 506,316. 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. . 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 HUMONGOUS SIZED  OI GAIN IN CONTRACTS ON THE TWO EXCHANGES: 11,165  OI CONTRACTS INCREASED AT THE COMEX AND AN LARGE SIZED 8945 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.THUS  TOTAL OI GAIN: 20,110 CONTRACTS OR 20,110,000 OZ = 62.55 TONNES. AND ALL OF THIS OCCURRED WITH A GAIN OF $9.60

YESTERDAY, WE HAD 11948  EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 86,131 CONTRACTS OR 8,613,100  OZ OR 267.90 TONNES (9 TRADING DAYS AND THUS AVERAGING: 9,570 EFP CONTRACTS PER TRADING DAY OR 957,000 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :    THIS MONTH IN 9 TRADING DAYS IN  TONNES: 267.90 TONNES

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

THUS EFP TRANSFERS REPRESENTS 267.90/2550 x 100% TONNES =  10.50% OF GLOBAL ANNUAL PRODUCTION SO FAR IN APRIL ALONE.*** THE ACCUMULATION OF EFP CONTRACTS IS RISING PER MONTH.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE 3,025.84*  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  (22 TRADING DAYS)

ACCUMULATION OF GOLD EFP’S FOR APRIL 2018:                   713.84 TONNES  (21 TRADING DAYS)

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: A CONSIDERABLE SIZED INCREASE IN OI AT THE COMEX OF 11,165  WITH THE $9.60  RISE  IN PRICE // GOLD TRADING YESTERDAY ($9.60 GAIN). HOWEVER WE ALSO HAD A LARGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8945 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 8945 EFP CONTRACTS ISSUED, WE HAD A HUMONGOUS SIZED NET GAIN OF 20,110 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES: 

8945 CONTRACTS MOVE TO LONDON AND 11,165 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 67.59 TONNES). ..AND ALL OF THESE OCCURRED AT THE COMEX WITH A GAIN OF $9.60 IN TRADING. 

we had: 5 notice(s) filed upon for 500 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  $1.75 /NO CHANGES IN GOLD INVENTORY AT THE GLD

Inventory rests tonight: 862.96 tonnes.

SLV/

WITH SILVER DOWN 2 CENTS  TODAY: THIS MAKES NO SENSE!!  THE CROOKS AT THE SLV WITHDREW A HUGE 2.824 MILLION OZ FROM THE SLV INVENTORY

/INVENTORY RESTS AT 320.439 MILLION OZ/

end

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

1. Today, we had the open interest in SILVER ROSE BY A CONSIDERABLE SIZED 3339 CONTRACTS from 194,936 UP TO 198,275 (AND, CLOSER TO THE  NEW COMEX RECORD SET /APRIL 9/2017 AT 243,411/SILVER PRICE AT THAT DAY: $16.53). THE PREVIOUS RECORD OTHER THAN WAS ESTABLISHED AT: 234,787, SET ON APRIL 21.2017 OVER ONE YEAR AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.   OUR CUSTOMARY MIGRATION OF COMEX LONGS MORPH INTO LONDON FORWARDS CONTINUES AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE: 0 EFP CONTRACTS FOR APRIL, 0 EFP CONTRACTS FOR MAY  (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM), AND 3261 EFP’S FOR JULY AND ALL OTHER MONTHS ZERO. TOTAL EFP ISSUANCE:  3261 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI GAIN AT THE COMEX OF 3339 CONTRACTS TO THE 3261 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  GAIN OF 6600 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES:  33.00 MILLION OZ!!! AND THIS OCCURRED WITH ONLY A 22 CENT  RISE IN PRICE .  THE BANKERS ORCHESTRATED THEIR RAID THROUGHOUT LAST WEEK  DESPERATELY TRYING TO PARE THEIR GIGANTIC OPEN INTEREST SHORT ON BOTH EXCHANGES BUT TO NO AVAIL. JUDGING BY THE RECORD NUMBER OF EFP ISSUANCE DURING LAST MONTH OF APRIL AT 385.75 MILLION OZ AND THE TOTAL OI GAIN ON THE TWO EXCHANGES, I DO NOT THINK THAT OUR BANKERS HAVE BEEN TOO SUCCESSFUL. THE CONSTANT RAIDS ARE NOW BEING CALLED UPON BY OUR BANKER FRIENDS ARE DONE IN AN ATTEMPT TO SHAKE AS MANY SILVER LEAVES FROM THE SILVER TREE AS POSSIBLE.

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 22 CENT RISE  IN SILVER PRICING YESTERDAY. BUT WE ALSO HAD ANOTHER STRONG SIZED 3261 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.

(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)FRIDAY MORNING/THURSDAY NIGHT: Shanghai closed DOWN 11.15 points or 0 .35%   /Hang Sang CLOSED UP 312.84 points or 1.02%    / The Nikkei closed UP 261.30 POINTS OR 1.16% /Australia’s all ordinaires CLOSED UP .01%  /Chinese yuan (ONSHORE) closed UP at 6.3329/Oil DOWN to 71.39 dollars per barrel for WTI and 77.22 for Brent. Stocks in Europe OPENED RED.   ONSHORE YUAN CLOSED UP AT 6.3329 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3250/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER 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/South Korea/USA

b) REPORT ON JAPAN

3 c CHINA

4. EUROPEAN AFFAIRS

i)EU

Europe is not happy with Trump’s new Iranian sanctions/ two commentaries

( Mish Shedlock/Mishtalk)

ii)Europe ends on a high note and extends its longest winning streak since 2015 despite poor economic data

(courtesy zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Israel

It seems that the USA/Israeli plan is to assassinate Iran’s chief revolutionary guard commander, Soleimani.  It seems that Israel had him in their sights but Obama negated the attack

( zerohedge)

ii)The USA move to sanction Iran by cutting off dollar funding is certainly going to hurt Iran.  They will for sure seek the help of China, its no 1 buying of Iranian oil.  However the lack of dollar funding is certainly going to have an effect on Iran who is already suffering from a lack of dollars.  The USA move is to starve the Iranian central bank of dollars so it cannot fund the Revolutionary Guard
( zerohedge)
iii)Israel is deploying tanks to the Golan Heights on the border with Syria (next to the Quinetra). Is Israel planning a land invasion

( zerohedge)

iv)Turkey

The Turkish lira plummets again as Erdogan states that he will begin to target interest rates

( zerohedge)

6 .GLOBAL ISSUES

7. OIL ISSUES

8. EMERGING MARKET

ARGENTINA

i)The Argentine Peso just fell to 23 Pesos per dollar despite a 40% interest rate.  JPMorgan warns of disorder as 30 billion USA dollars of bonds come due.  This is becoming the kiss of death to Argentina who has a huge amount of external debt denominated in currencies other than the Peso.

( zerohedge)

ii)Panic in Argentina as the Peso hits 24.25 to the dollar. No doubt the central bank of Argentina must come in and raise rates again

( zerohedge)

EMERGING MARKETS

Very important:  the higher uSA dollar is playing havoc with our emerging markets, together with the higher price of oil.   This is creating a tightening effect with our emerging markets causing funds to flee.  Watch for the Brazilian real to reach 4..then we will witness panic in these markets which may cause contagion throughout the globe

( zerohedge)

9. PHYSICAL MARKETS

i)Emerging markets actually have two worries:  a strong USA dollar and a weaker Chinese yuan

(  Verma/Bloomberg/GATA)

ii)No doubt that Iran will use the purchase of gold to offset its problems of scarcity of dollars.

(Carpenter/Bloomberg)

iii)Interesting:  Putin wants to break with the USA but instead of dumping dollars, he dumped Euros

( Andrianova/Bloomberg/GATA)

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

i)USA morning data

U. of Michigan confidence hits 13month lows

( zerohedge)

ii)HAWAII rocked by a huge 6.9 magnitude earthquake.  Toxic gas surfaces and fears mount as lava approaches a Hawaii power plant

(courtesy zerohedge)

iii)SWAMP STORIES

a)My goodness:  it seems that Stormy’s lawyer is a crook himself.  He faces disbarment, tax evasion and host of other charges in a failed coffee chain purchase two years ago
( zerohedge)

b)What a riot:  A T and T paid 600,000 dollars upfront to Cohen for “insight”  (bribe) on the Time Warner merger. This is legal but this is how Washington works

( zerohedge)

c)A T and T states that it was a mistake to hire Cohen.  Why? because they were caught?

( zero hedge)

d)Wow!! it certainly looks like the FBI hid a mole in the Trump campaign and that individual supplied information that may have led to the whole hoax of Russian interference in the uSA election.

Quite a story..

( Wall Street Journal/Strassel)

Let us head over to the comex:

The total gold comex open interest ROSE BY A HUMONGOUS SIZED 11,165  CONTRACTS UP to an OI level 506,316 WITH THE GAIN IN THE PRICE OF GOLD ($9.60 GAIN/ 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 LARGE SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 8945 CONTRACTS ISSUED: FOR  JUNE, 8945 CONTRACTS ISSUED,  FOR AUGUST 0 CONTRACTS AND ZERO FOR ALL OTHER MONTHS:  TOTAL  8945 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: 20,110 OI CONTRACTS IN THAT 8945 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 11,165  COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 20,110 contracts OR 2,011,000  OZ OR 2.55 TONNES.

Result: A CONSIDERABLE INCREASE IN COMEX OPEN INTEREST WITH THE GOOD GAIN IN PRICE YESTERDAY  (ENDING UP WITH AN ADVANCE OF $9.60)THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 20,110 OI CONTRACTS..

We have now entered the non  active contract month of MAY where we LOST 162 contracts FALLING TO106 contracts. We had 165 notices filed upon yesterday, so we GAINED 3 contracts or 0 additional 300 oz will stand in this non active delivery month of May SO SOMEBODY WAS IN URGENT NEED OF SOME PHYSICAL GOLD.

The really big June contract month saw a LOSS of 2042 contracts DOWN to 271,142 contracts. JULY saw a LOSS of 5 contracts to stand at 93.   The next big delivery month after June is August and here the OI ROSE BY 12,915 contracts UP to 147,506.

We had 5 notice(s) filed upon today for 500  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: 264,953  contracts

CONFIRMED COMEX VOL. FOR YESTERDAY: 399,496 contracts

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And now for the wild silver comex results.

Total silver OI ROSE BY A LARGE SIZED 3339 CONTRACTS FROM 194,936 UP TO 198,275 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET APRIL 9.2018/ 243,411 CONTRACTS)  WITH THE  22  CENT GAIN IN SILVER PRICING. SINCE WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF MAY. WE  WERE  INFORMED THAT WE HAD A STRONG SIZED  3261 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: 3261.   ON A NET BASIS WE GAINED 6600  SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 3339 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 3261 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)

NET GAIN  ON THE TWO EXCHANGES:   6600  CONTRACTS 

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the  active delivery month of MAY and here the front month LOST 122 contracts FALLING TO 326 contracts. We had 146 notices filed upon yesterday so we SURPRISINGLY AGAIN GAINED 24 contracts or 120,000 additional ounces will  stand for delivery in this  active delivery month of May AS SOMEBODY AGAIN WAS DESPERATE FOR PHYSICAL SILVER..

June saw a LOSS of 35 contracts to stand at 747  The next big delivery month for silver is July and here the OI ROSE by 1647 contracts UP to 140,897. The next active delivery month after July for silver is September and here the OI ROSE by 1213 contracts UP to 24,144

We had 173 notice(s) filed for 865,00OZ for the MAY 2018 contract for silver

INITIAL standings for MAY/GOLD

MAY 11/2018.

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
5 notice(s)
 500 OZ
No of oz to be served (notices)
101 contracts
(10100 oz)
Total monthly oz gold served (contracts) so far this month
618 notices
61800 OZ
1.922 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
 FINALLY AFTER MANY WEEKS, WE HAVE A PULSE AT THE GOLD COMEX TODAY
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 2 adjustment(s)
i) Out of Brinks:  12,627.709 oz was adjusted out of the dealer and this landed into the customer account of Brinks
ii) Out of Scotia; 5,021.758. was adjusted out of the dealer account and this landed into the customer account of Scotia
total amt leaving dealer;  17,664.467 oz

For MAY:
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  5 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 4 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 MAY. contract month, we take the total number of notices filed so far for the month (618) x 100 oz or 61800 oz, to which we add the difference between the open interest for the front month of MAY. (106 contracts) minus the number of notices served upon today (5 x 100 oz per contract) equals 71,900 oz, the number of ounces standing in this active month of APRIL (2.227 tonnes)

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

No of notices served (618 x 100 oz)  + {(106)OI for the front month minus the number of notices served upon today (5 x 100 oz )which equals 71,900 oz standing in this  active delivery month of MAY . THERE ARE 9.954 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.

WE GAINED 300 OZ OF GOLD (3 CONTRACTS) STANDING IN THIS NON ACTIVE DELIVERY MONTH OF MAY AS SOMEBODY BADLY NEEDED PHYSICAL GOLD AT THIS SIDE OF THE POND..

total registered or dealer gold:  302,407.266 oz or 9.499 tonnes
total registered and eligible (customer) gold;   9,049,522.743 oz 281.47 tones
THE COMEX IS AGAIN IN STRESS AS ONLY 9.499 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

MAY INITIAL standings/SILVER

MAY 11/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 nil oz
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
 nil oz
No of oz served today (contracts)
173
CONTRACT(S)
(865,000 OZ)
No of oz to be served (notices)
153 contracts
(765,000 oz)
Total monthly oz silver served (contracts) 5837 contracts

(29,185,000 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 0 inventory movement at the dealer side of things

i

total dealer deposits: nil oz

we had 0 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) Into everybody else: 0

total customer deposits today: 0 oz

we had 2 withdrawals from the customer account;

i) out of Brinks; 32711.03 oz

ii) Out of Scotia: 80,380.120 oz

total withdrawals;  113,091.150 oz

we had 2 adjustments

i) Out of CNT:  259,354.572 oz was adjusted out of the dealer and this landed into the customer account of CNY’

ii) Out of Delaware:  4887.134 oz was adjusted out of the dealer and this landed into the customer account of Delaware

total dealer silver:  69.161 million

total dealer + customer silver:  268,536 million oz

The total number of notices filed today for the MAY. contract month is represented by 173 contract(s) FOR 865,000 oz. To calculate the number of silver ounces that will stand for delivery in MAY., we take the total number of notices filed for the month so far at 5837 x 5,000 oz = 29,185,000 oz to which we add the difference between the open interest for the front month of MAY. (326) and the number of notices served upon today (173 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY contract month: 5837(notices served so far)x 5000 oz + OI for front month of MAY(326) -number of notices served upon today (173)x 5000 oz equals 29,950,000 oz of silver standing for the MAY contract month 

WE GAINED 24 CONTRACTS OR AN ADDITIONAL 120,000 OZ WILL  STAND AT THE COMEX AS SOMEBODY WAS IN URGENT NEED OF PHYSICAL SILVER ON THIS SIDE OF THE POND.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 55,386 CONTRACTS

CONFIRMED VOLUME FOR YESTERDAY: 91,807 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF  71,897 CONTRACTS EQUATES TO 459 MILLION OZ  OR 65.55% 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 RISES TO -1.57% (MAY11/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.32% to NAV (MAY 11/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -1.57%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.32%/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 RISES TO -2.14%: NAV 13.67/TRADING 13.37//DISCOUNT 2.14.

END

And now the Gold inventory at the GLD/

MAY 11/WITH GOLD DOWN $1.75/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 862.96 TONNES/

MAY 10/WITH GOLD UP $9.60/A WITHDRAWAL OF 1.17 TONNES FROM THE GLD/INVENTORY RESTS AT 862.96 TONNES/SUCH CROOKS

MAY 9/WITH GOLD DOWN $0.55/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 864.13 TONNES

MAY 8/WITH GOLD DOWN $0.10/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 864.13 TONNES

MAY 7/WITH GOLD DOWN $0.55/ANOTHER WITHDRAWAL OF 1.47 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 864.13 TONNES

MAY 4/WITH GOLD UP $2.05/A WITHDRAWAL OF 1.13 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 865.60 TONNES

MAY 3/WITH GOLD UP $7.05/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 866.77 TONNES

MAY 2/WITH GOLD DOWN $1.15/ A HUGE WITHDRAWAL OF 4.43 TONNES FROM THE GLD/INVENTORY RESTS AT 866.77 TONNES

MAY 1/WITH GOLD DOWN $12.15/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 871.20 TONNES

APRIL 30/WITH GOLD DOWN $4.05/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 871.20 TONNES.

APRIL 27./WITH GOLD UP $5.90/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 871.20 TONNES/

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

MAY 11/2018/ Inventory rests tonight at 862.96tonnes

*IN LAST 381 TRADING DAYS: 78.04 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 331 TRADING DAYS: A NET 78,26 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory/

MAY 11/WITH SILVER DOWN 2 CENTS/THE CROOKS WITHDREW A MONSTROUS 2.824 MILLION OZ FROM THE SLV INVENTORY/INVENTORY RESTS AT 320.439 MILLION OZ/

MAY 10/WITH SILVER UP 22 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 323.263 MILLION OZ/

MAY 9/WITH SILVER UP 6 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 323.263 MILLION OZ/

MAY 8/WITH SILVER DOWN 2 CENTS:NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 323.263 MILLION OZ.

MAY 7/WITH SILVER FLAT: A BIG CHANGE IN SILVER INVENTORY AT THE SLV// A WITHDRAWAL OF 942,000 OZ OF SILVER FROM THE SLV INVENTORY/INVENTORY RESTS AT 323.263 MILLION OZ/

MAY4/WITH SILVER UP 5 CENTS/A BIG CHANGES IN SILVER INVENTORY AT THE SLV/ A DEPOSIT OF 1.224 MILLION OZ/INVENTORY RESTS AT 324.205 MILLION OZ/

MAY 2/WITH SILVER UP 24 CENTS/A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A DEPOSIT OF 6.082 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 322.981 MILLION OZ/

MAY 1/WITH SILVER DOWN 24 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.899 MILLION OZ/

APRIL 30/WITH SILVER DOWN 11 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.899 MILLION OZ/

APRIL 27/WITH SILVER DOWN 5 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.899 MILLION OZ/

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

MAY 11/2018:  

Inventory 320.439 million oz

end

6 Month MM GOFO 2.09/ and libor 6 month duration 2.54

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

G0FO+ 2.09%

libor 2.54 FOR 6 MONTHS/

GOLD LENDING RATE: .45%

XXXXXXXX

12 Month MM GOFO
+ 2.77%

LIBOR FOR 12 MONTH DURATION: 2.54

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.23

end

At 3:30 pm we receive a totally useless report, the COT which gives position levels of our major players at the comex.  Due to the fact that

many transfer their holdings (liabilities) to London this report has no value whatsoever.

First gold COT

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
198,548 91,108 57,613 181,586 316,570 437,747 465,291
Change from Prior Reporting Period
-11,029 -11,690 -8,543 1,851 4,963 -17,721 -15,270
Traders
187 83 86 49 53 282 184
 
Small Speculators  
Long Short Open Interest  
53,651 26,107 491,398  
1,363 -1,088 -16,358  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, May 8, 2018

OUR LARGE SPECULATORS

those large speculators who have been long in gold pitched (transferred) 11,029 contracts from their long side

those large speculators who have been short in gold covered (transferred) 11,690 contracts from their short side

OUR COMMERCIALS

those commercials who have been long in gold added 1861 contracts to their long side.

those commercials who have been short in gold added 4963 contracts to their short side

OUR SMALL SPECULATORS

those small specs who have been long in gold added 1363 contracts to their long side

those small specs who have been short in gold covered (transferred) 1088 contracts from their short side.

And now for our useless COT silver report

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
72,713 72,834 15,233 77,127 94,204
4,185 -2,890 -170 -884 4,215
Traders
105 60 41 34 32
Small Speculators Open Interest Total
Long Short 195,865 Long Short
30,792 13,594 165,073 182,271
-1,951 25 1,180 3,131 1,155
non reportable positions Positions as of: 155 12

OUR LARGE SPECULATORS

those large speculators that have been long in silver added 4185 contracts to their long side

those large speculators that have been short in silver pitched (transferred) 2890 contracts from their short side

OUR COMMERCIALS

those commercials that have been long in silver pitched (transferred) 884 contracts from their long side

those commercials that have been short in silver added 4215 contracts to their short side

OUR SMALL SPECULATORS

those small specs that have been long in silver pitched (transferred) 1951 contracts from their long side

those small specs that have been short in silver added 25 contracts to their long side.

end

Major gold/silver trading /commentaries for FRIDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Gold Mining Supply Looks Set To Decline

  • Global demand for gold is increasing while new discoveries of gold remain small
  • Gold mining output in Australia is forecast to decrease by 50% in the next eight years
  • Decline in global gold mining supply makes a price increase almost certain

Gold nugget (placer gold) from Colorado, USA.  Source: Commons.wikimedia.org

by Lawrence Thomas, Gold Telegraph

The demand for gold is increasing, yet new discoveries of the precious metal have not kept pace with the demand. Funds for exploration are historically high, $54.3 billion, up 60 percent over the past 18 years.

The increased spending, however, has not produced the equivalent in new gold discoveries. During the past decade, 41 discoveries have resulted in a mere 215.5 million ounces of the precious metal. Even counting recently discovered but unexplored mines, which may hold as-yet major discoveries, the total available amount of gold in these discoveries are not expected to surpass 363 million ounces over the next ten years.

Gold discoveries have followed a predictable pattern. 263 major gold discoveries have been made in the past 28 years, but half of those discoveries happened in the 1990s. This boom lasted until the turn of the century when the rate of discovery began to decline. Only 16 discoveries were reported from 2000 to 2002, which produced 108.3 ounces of gold. That amount was below the average finds of the 1990s. This decline has continued, with both new discoveries and the amount of gold mined decreasing steadily. By 2010, only 18.6 million ounces of gold was discovered, a severe drop from the 61.5 ounces found in 2009.

Old sectors are being depleted, while active exploration for new discoveries has been slow. The amount of available gold has not met expectation and remains far below the 2009 high.

The lack of new discoveries is not the result of funding. $54.3 billion has been allocated to exploration during the past decade. Part of the problem is that the time span between discovery and production is around 20 years. Unless significant new discoveries are made, the amount of available gold could decrease in the near future, raising the demand for the metal even further. Scarcity invariably results in higher prices, and the decline in global gold makes a price increase almost certain.

Continued gold exploration has become critical. In 2018, Colorado-based Newmont Mining Corp., one of the world largest gold explorers, has allocated $1.3 billion to expand its current projects, an increase of $300 million from the previous year.

Much of the available gold in Australia’s northern Goldfield has been depleted, and companies are drilling to unprecedented depths of 3 kilometers below the surface hoping for new discoveries as new finds are becoming rarer and more expensive to pursue.

According to Richard Schodde, managing director of MinEx, Australia gold mining output could decrease by 50 percent over the next eight years, with only four mines remaining open by 2057.

The need to drill deeper will make gold harder to find and more expensive to produce.

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube

News and Commentary

PRECIOUS-Gold eases on firmer dollar; but eyes first weekly gain in four (Reuters.com)

Gold steady as dollar hovers below 2018 peak (Reuters.com)

Bottom in place? Gold jumped to 10-day high (FXStreet.com)

U.K. House-Price Gauge Drops to 5 1/2-Year Low as London Slumps (Bloomberg.com)

London house prices predicted to keep falling (CityAM.com)


Source: US Funds

Gold Love Trade Looks Promising in India and China (USFunds.com)

The Wealthy Are Hoarding $10 Billion of Bitcoin in Bunkers (Bloomberg.com)

Gold Gets a Lifeline From a Surprising Source: Cheap Flights and Cars (Bloomberg.com)

Putin Wants to `Break’ With the Dollar But Dumps Euros Instead (Bloomberg.com)

The 1970s All Over Again? Part 1: The Middle East Explodes (GoldSeek.com)

Central Banks: The Great Experiment Has Failed (DailyReckoning.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

10 May: USD 1,314.80, GBP 969.27 & EUR 1,106.80 per ounce
09 May: USD 1,306.85, GBP 965.11 & EUR 1,102.07 per ounce
08 May: USD 1,310.05, GBP 969.44 & EUR 1,101.88 per ounce
04 May: USD 1,309.35, GBP 965.78 & EUR 1,094.09 per ounce
03 May: USD 1,313.30, GBP 966.19 & EUR 1,094.64 per ounce
02 May: USD 1,310.75, GBP 960.52 & EUR 1,091.99 per ounce

Silver Prices (LBMA)

10 May: USD 16.60, GBP 12.24 & EUR 13.97 per ounce
09 May: USD 16.44, GBP 12.12 & EUR 13.84 per ounce
08 May: USD 16.45, GBP 12.17 & EUR 13.85 per ounce
04 May: USD 16.42, GBP 12.10 & EUR 13.72 per ounce
03 May: USD 16.47, GBP 12.12 & EUR 13.74 per ounce
02 May: USD 16.35, GBP 11.98 & EUR 13.62 per ounce


Recent Market Updates

– Gold Mining Supply Globally Looks Set To Decline
– Gold Bullion Demand In Iran May Surge On Trump Sanctions
– “Money Is Gold — and Nothing Else”
– U.K. Home Prices Plunge 3.1% In April – Largest Monthly Drop Since Financial Crisis In 2011
– Weekly Gold Update – Gold In Dollars Lower Despite Poor US Jobs and Other Data
– Own Some Gold and Avoid Overvalued Assets
– Gold Demand Falls In Q1 Despite Robust Central Bank and Investment Demand and Surging Demand In Turkey and Iran
– Smart Money Diversifying Into Gold – One Billionaire Invests Half His Net Worth
– “Blood In The Streets” Of U.S. Gold Bullion Market As Sale Of Gold Coins Collapse
– Most Important Chart Of The Century For Investors?
– Gold Mining Shares Are Speculative Making Gold Bullion A Better Investment
– Gold Price Increasingly Influenced By Declining Dollar Rather Than Interest Rates
– Cash “Vanishes” From Bank Accounts In Ireland

Mark O’Byrne
Executive Director
Mark O’Byrne
Executive Director
Mark O’Byrne

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

 END

end

Emerging markets actually have two worries:  a strong USA dollar and a weaker Chinese yuan

(courtesy  Verma/Bloomberg/GATA)

Dollar-plagued world now has another currency to worry about

 Section: 

By Sid Verma
Bloomberg News
Thursday, May 10, 2018

Winds of change in currency markets threaten to blow global investment trends further off course — but from the East as much as the West.

While investors have been focused on a strengthening U.S. dollar and rising Treasury yields, a weaker Chinese yuan also threatens to heap pressure on emerging market assets that have already wiped out their gains for the year.

That’s because a pause in the yuan’s appreciation path would challenge a clutch of developing economies by hitting their trade competitiveness against China, according to Morgan Stanley. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-05-10/the-dollar-plagued-wo.

END

No doubt that Iran will use the purchase of gold to offset its problems of scarcity of dollars.

(Carpenter/Bloomberg)

Iran’s gold demand set to spurt before Trump sanctions bite

 Section: 

By Claudia Carpenter
Bloomberg News
Wednesday, May 9, 2018

Iran’s gold demand will probably be “strong” for the next few months and then gradually decline as U.S. sanctions start to take effect, according to the researcher who covers the country for Metals Focus Ltd.

After a previous set of sanctions was imposed on Iran in 2012, it took two years for the country’s gold demand to start falling, according to data from the World Gold Council. It sank to only 45.1 tons by 2016, the lowest in at least six years and 65 percent lower than in 2013, according to gold council data. It rose to 64.5 tons last year.

“People will try to convert whatever they have into dollars or gold or whatever is of value that’s not going to depreciate,” Cagdas Kucukemiroglu, an analyst at London-based Metals Focus, said Wednesday by phone. “Then next year the demand will gradually start to go down but it’s not going to be drastic. The base is already very low.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-05-09/iran-s-gold-demand-po…

END

Interesting:  Putin wants to break with the USA but instead of dumping dollars, he dumped Euros

(courtesy Andrianova/Bloomberg/GATA)

Putin says he wants to break with the dollar but dumps euros instead

 Section: 

By Anna Andrianova
Bloomberg News
Thursday, May 10, 2018

Squeezed by ever-expanding U.S. sanctions, Vladimir Putin says he wants to dump the dollar. His central bank has been doing just the opposite.

In comments to lawmakers on Tuesday after his inauguration for a record fourth term as president, Putin said a “break” from the U.S. currency is necessary to bolster Russia’s “economic sovereignty,” especially in light of recent penalties and what he called politically motivated restrictions on trade

The numbers tell a different story. According to the central bank’s latest data, the dollar’s share in its international reserves climbed to nearly 46 percent in 2017 from just over 40 percent the previous year. Meanwhile, the euro accounted for almost 22 percent, sliding from more than 32 percent in 2016 and as high as 43.8 percent in 2009. The stockpile was at $459.9 billion in April, the highest since 2014.

Putin doesn’t have much to show for years of decrying the “dollar monopoly” that allows the U.S. to act like a “parasite” on the global economy. Now he has to contend with a deepening standoff with the U.S. after the latest round of sanctions in April ripped through Russia’s currency and stocks and cut off a major company’s access to Western financial markets. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-05-10/putin-wants-to-break-…

END


___________________________________________________________________

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

 

i) Chinese yuan vs USA dollar/CLOSED UP 6.3329  /shanghai bourse CLOSED DOWN 11.15 POINTS OR 0 .35%    / HANG SANG CLOSED UP 312.84 POINTS OR 1.02%
2. Nikkei closed UP 261.30 POINTS OR 1.16% /  /USA: YEN FALLS TO 109.32/  

3. Europe stocks OPENED RED     /USA dollar index FALLS TO 92.54/Euro RISES TO 1.1931

3b Japan 10 year bond yield: RISES TO . +.05/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.65/ 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:: 71.39  and Brent: 77.22

3f Gold UP/Yen UP

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +.56%/Italian 10 yr bond yield UP to 1.87% /SPAIN 10 YR BOND YIELD DOWN TO 1.28%

3j Greek 10 year bond yield FALLS TO : 4.04?????????????????

3k Gold at $1325.10 silver at:16.79   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 11/100 in roubles/dollar) 61.64

3m oil into the 71 dollar handle for WTI and 77 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 109.32 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 0.9998 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1933 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.56%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 2.96% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.11%

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

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

“Goldilocks Is Back”: Futures Spike As Dollar Tumbles; Curve Flattening Accelerates

Following several days of torrid newsflow, which markets digested without a glitch and continued their recent grind higher, the overnight session has been relatively quiet, and while trading was subdued post the European open, a burst of buying was observed in generally illiquid conditions as US traders walked in, sending S&P futures sharply to session highs as volatility continues to dip with the VIX now erasing its elevated level seen in 1Q.

Global equities are generally in the green this morning, with some exceptions across Europe.

There was no immediate catalyst for the move, although an acceleration in the slide of the dollar may have been the catalyst: after hitting a 2018 high on Wednesday, the BBDXY has been sliding since, dropping the most since March on Thursday, and then once again accelerating on the downside during the overnight session.

Aside from the recent burst in US buying, it was a lackluster European session as most markets drift with little momentum; earlier Asian stocks jumped after a disappointing US CPI print eased some pressure from the Fed to step up the pace of monetary tightening.

Europe’s Stoxx 600 Index erased an early advance, as a result of the sharp jump in the EURUSD this morning pressuring European exporters, although the index is still headed for its seventh week of increases, the longest streak in more than three years. In addition to exporter weakness, declines in the healthcare sector weighed on by a string of negative drug-trial results offset gains for basic resources as commodities, and oil in particular, continued to rise. After yesterday’s drubbing, Italian banks were supported by good earnings from Monte Dei Paschi (+13.5%),

As Bloomberg notes, investors have been weighing most recent economic data releases to judge the most likely path for global interest rates: in this regard Thursday’s U.S. CPI miss, which came as U.K. money markets priced out a hike this year after the Bank of England forecast slower price rises, suggests fears about accelerating tightening may have been premature, which in turn reincarnates the goldilocks buy everything” thesis. Comments from European Central Bank Governor Mario Draghi at a conference in Italy will be the focus later.

Easing geopolitical fears also helped, and aided gains in Asian stocks after Trump and Kim set for their landmark meeting in Singapore on June 12. Meanwhile, Malaysian assets trading offshore began to stabilize after the shock election win for the opposition. Emerging-market stocks headed for the best week since February and most developing-nation currencies extended a rebound from the past month’s selloff, thanks to the sharp move lower in the dollar in the past 2 days.

While 10-Year TSY yields remained below 3%, the continued flattening in the curve after yesterday’s unexpectedly strong 30Y auction has put some traders on edge: this morning the 5s30s curve has flattened to the lowest level since August 2007, breaking 30bps to trade at 27bps now, a level technicians have predicted would lead to an acceleration in the move, especially if some of the record short overhang decides to finally cover. Meanwhile, 10s30s swaps are on the verge of inversion with the move continuing in Europe trading.

Some believe it’s only a matter of time before yields and the dollar resume their rise: the “mismatch between higher U.S rate differentials and a weaker USD is starting to reverse,” as the Fed looks likely to match its “dots,” while other central banks across G-10 face challenges to begin or extend their tightening process, David Bloom and Paul Mackel, strategists at HSBC Holdings. Needless to say, unless US yields resume their move higher, dollar gains may be capped for the time being.

And with the dollar sliding, WTI found new bids this morning, now on the verge of $72, and heading for a second week of gains after the U.S. pulled out of the Iran nuclear deal.

In metals, gold is currently trading flat on the day, with aluminum witnessing a slide for the second session in a row. Copper also slipping on the day, after peaks on Thursday due to shortened inventories, but still set to close positively for the week. Steel in the green for the day on growing Chinese demand.

In geopolitical developments, the 5 Star Movement and League government may be formed next week, and the parties will pass a flat tax and citizens income in 2019. Meanwhile, a top 5 Star member said the next Italian PM could be an independent figure who is not part of either 5 Star or League.  Elsewhere, Iran Foreign Minister Zarif is to meet with Chinese Foreign Minister Wang on Sunday, Russian Foreign Minister Lavrov on Monday and EU officials on Tuesday to discuss preserving nuclear agreement.

Ten companies are on the earnings list on Friday, while macro investors can look forward to Michigan sentiment and data on import and export price indexes.

Bulletin Headline Summary from RanSquawk

  • Major FX pairs trading within short ranges. EM currencies finding some respite
  • European bourses flat on thin news flow ahead of the weekend
  • Looking ahead, highlights include Canadian jobs report, Uni of Michigan, Baker Hughes, Fed’s Bullard and ECB’s Draghi

Market Snapshot

  • S&P 500 futures up 0.3% to 2,726.25
  • STOXX Europe 600 down 0.01% to 391.95
  • MXAP up 1% to 175.74
  • MXAPJ up 0.9% to 573.81
  • Nikkei up 1.2% to 22,758.48
  • Topix up 1% to 1,794.96
  • Hang Seng Index up 1% to 31,122.06
  • Shanghai Composite down 0.4% to 3,163.26
  • Sensex up 0.4% to 35,382.05
  • Australia S&P/ASX 200 down 0.04% to 6,116.19
  • Kospi up 0.6% to 2,477.71
  • German 10Y yield fell 1.4 bps to 0.543%
  • Euro up 0.07% to $1.1923
  • Italian 10Y yield rose 5.2 bps to 1.678%
  • Spanish 10Y yield fell 2.0 bps to 1.293%
  • Brent Futures unchanged at $77.47/bbl
  • Gold spot up 0.1% to $1,323.34
  • U.S. Dollar Index down 0.02% to 92.63

Top Overnight News from Bloomberg

  • Trump: Administration will have “great health plans” coming out within four weeks; plans to release a proposal to bring down U.S. drug prices
  • BOE’s Broadbent: 1Q weakness partly due to weather, still seen as temporary
  • Corriere: if Five Star/Northern League talks go well, new government would be sworn in by end of next week
  • As President Trump games out a historic summit with North Korea’s Kim Jong Un in Singapore next month, he is gambling he can construct a complicated pact to dismantle Pyongyang’s nuclear program. This is even though Trump’s track record shows he’s better at breaking than making deals
  • The Treasury yield curve from 5 to 30 years flattened Thursday to the lowest level since August 2007, as a combination of weaker-than-expected U.S. inflation and solid demand for a record bond auction bolstered investor confidence in owning long-dated securities
  • The global backlash against wages and migrants has hits the heart of Europe with Italy’s anti-establishment Five Star Movement and anti-immigrant League now taking until Monday to finish their plan to form a government in Rome
  • Russia’s president, Putin said a “break” from the dollar is necessary to bolster the nation’s “economic sovereignty,” especially in light of recent penalties. But data show his central bank’s dollar reserves are rising, while the euro’s share is sliding
  • Mark Carney’s window to raise interest rates before Brexit is closing. As the U.K. draws nearer to its divorce from the EU at the end of March with little certainty as to the economic repercussions, BOE policy makers with a benchmark interest rate of just 0.5 percent could be left with limited room to cut should they need to act
  • Emerging markets with the weakest financial metrics, especially those with high inflation, tend to be the worst affected by U.S. interest-rate shocks, according to a study by Federal Reserve Board economists
  • The lightest part of the refinery barrel may be the hardest hit by U.S. sanctions on Iran. Asian buyers have been scrambling to get both condensate and naphtha this year amid speculation that Iran sanctions will be renewed
  • Former U.K. Prime Minister John Major said Theresa May’s quest for a post-Brexit alternative to the European Union’s Customs Union that provides for frictionless trade is one that’s doomed to fail
  • United Nations Secretary-General Antonio Guterres said he’s optimistic that the U.S. and North Korea can reach a historic nuclear deal, crediting a toughened sanctions regime pushed by President Donald Trump at the UN Security Council for the isolated country’s willingness to negotiate
  • The U.K. government has asked business groups to map their supply chains to flag the areas of the economy most at risk if Brexit imposes additional trading costs on exporters, two people familiar with the matter said
  • Squeezed by ever-expanding U.S. sanctions, Vladimir Putin says he wants to dump the dollar. His central bank has been doing just the opposite

Asian stocks traded mostly positive after sentiment rolled over from the US where soft CPI data spurred hopes the Fed may have to slow the pace of hikes, while all sectors in the S&P 500 finished in the green with gains led by tech, telecoms and pharmaceuticals, which in turn underpinned NDX outperformance. ASX 200 (+0.2%) and Nikkei 225 (+1.0%) were positive with earnings also a key driver of price action and the top performing stocks in Japan spurred by corporate updates including KDDI, Panasonic and Suzuki. Hang Seng (+1.5%) and Shanghai Comp. (-0.2%) were mixed as Hong Kong sustained its outperformance streak, while the mainland lagged after the PBoC refrained from open market operations and widened the amount of liquidity it drained for the week. Finally, 10yr JGBs were quiet amid similar flat trade witnessed in T-notes and heightened appetite for riskier assets, while the BoJ’s rinban announcement also failed to spur demand with the amounts kept unchanged and at paltry JPY 285bln total for the day. PBoC skipped open market operations for a net weekly drain of CNY 140bln vs. last week’s net drain of CNY 110bln.

Top Asian News

  • Hong Kong 1Q GDP Expands 2.2% Q/q; Est. 0.8%
  • Q Technology Slumps by Record After Warning Its Profit May Halve
  • Singapore Regulator Fines Ex-Genting Exec for Insider Trading
  • Sri Lanka Holds Benchmark Rates as Consumer Prices Ease

European equities are mixed (Eurostoxx 50 -0.2%) with the exception of Spain’s IBEX (+0.2%). Looking at the sectors, health care is a noticeable underperformer amid negative drug updates from AstraZeneca (-0.3%) and Roche (-1.7%), subsequently dragging other health names across Europe (Novartis -0.7%, GSK -0.8%, Merck -0.9%) in sympathy. On the flip side, material names outperform following strong earnings from the world’s largest steelmaker ArcelorMittal (+1.7%) as it lifts the likes of Thyssenkrupp (+1.2%) with it. Elsewhere, Sika (+10%) rose to the top of the Stoxx 600 after striking a deal with France’s Saint Gobain (+2.4%) who are also seen higher on the news

Top European News

  • Silver Lake Agrees to Buy Property Portal ZPG for $3 Billion
  • Sika, Saint-Gobain Reach Deal to End Bitter Takeover Battle
  • Interserve’s Woes Deepen as U.K. Watchdog Opens Probe
  • AstraZeneca’s Fasenra Fails in Trial of Severe Lung Disease

In FX, the Greenback is down vs G10 rivals and the index rangebound between 92.630-840 after its retracement from new ytd highs just shy of 93.500 to around 92.500 in wake of some softer than expected components in the latest CPI release and ahead of more price indicators via import/export data and inflation expectations in the Michigan survey. AUD: A marginal outperformer, with Aud/Usd back up near 0.7550 and Aud/Nzd seemingly forming a more solid base above 1.0800. No lasting adverse effects on the back of weak housing data overnight as the broader risk tone remains relatively positive, while OTM option bids and hedge fund buying interest has been reported on dips;  GBP/EUR/JPY/CHF: All slightly stronger vs the Dollar, with Cable sustaining recovery gains above 1.3500 in consolidative trade after initial post-BoE super Thursday losses and getting another M&A boost from US-based Silver Lake’s purchase of Zoopla (Gbp2.2 bn deal). Eur/Usd looks hemmed in between 1.1900-50 amidst heavy expiry option interest at either strike and 1.1925 (3.8 bn in total) and awaiting a speech from ECB President Draghi. Usd/Jpy has retreated a bit further from recent 110.00 or so multi-top peaks, but appears supported just ahead of 109.00, while Usd/Chf has also slipped back towards the base of a 1.0000-50 band after briefly touching parity on Thursday.

In commodities, oil is seeing profit taking heading into weekend as both WTI and Brent come off of recent highs, currently both down 0.3% and 0.1% respectively with newsflow relatively muted ahead of today’s Baker Hughes rig count. In the metals scope, gold is currently trading flat on the day, with aluminium witnessing a slide for the second session in a row. Copper also slipping on the day, after peaks on Thursday due to shortened inventories, but still set to close positively for the week. Steel in the green for the day on growing Chinese demand.

US Event Calendar

  • 8:30am: Import Price Index MoM, est. 0.5%, prior 0.0%; Import Price Index ex Petroleum MoM, est. 0.2%, prior 0.1%
    • Export Price Index MoM, est. 0.35%, prior 0.3%; Export Price Index YoY, prior 3.4%
  • 10am: U. of Mich. Sentiment, est. 98.3, prior 98.8; Current Conditions, prior 114.9; Expectations, prior 88.4
    • U. of Mich. 1 Yr Inflation, prior 2.7%; U. of Mich. 5-10 Yr Inflation, prior 2.5%

DB’s Jim Reid concludes the overnight wrap

So populism is back. The people have spoken and will continue to do so in Europe over the next 36 hours. Many behind the scenes deals will be struck and old tensions will resurface. Political bloc voting will dominate as will glitter! Yes tomorrow sees the 63rd annual Eurovision Song Contest – the largest singing (if you can call it that) competition in the world and one watched by hundreds of millions of people on TV worldwide.

It seems like the favourites are Cyprus, Norway and Israel. I’ve seen Cyprus’s entry and it reminds me of being in Ibiza circa 1992. The lead singer has very very big hair and a tight five piece dance troop behind her. In fact as I was watching I was petrified that one of the dancers would be slightly out of sync as slipping one beat behind could ensure being lassoed by the singer’s hair and having their eye taken out. Anyway one to watch if you have nothing better to do tomorrow night across Europe (and Australia).

Staying with the popular vote, it’s looking increasingly likely that Northern League and Five Star will form an anti-euro, anti-austerity full on populist coalition in Italy perhaps over the weekend, per Bloomberg. This is a pretty monumental political moment but its impact is likely more slow burning than immediate. In terms of implications, the shock value has been limited by the fact that neither campaigned to leave the Euro. However their fiscal pledges – if pursued – will put them on a collision course with the EU as will their desire to reverse pension and labour market reforms. So we’ll see if they can make good on their populists promises or whether they get watered down by the realities of power. It will also be interesting to see how it politicises the ECB end of QE decision. So lots to consider.

See DB’s Clemente De Lucia note from last night for more info (Link). For now, Italian risk is a bit soft. The MIB -0.96% underperformed a risk-on market yesterday and BTP 10yr yields rose +5.2bp on a day of falling yields (US 10yr -4.2bps) due to soft US inflation and a BoE hold that clearly wasn’t fully priced into 10yr Gilts (-2.7bps).

The core US CPI was on the softer side in April at +0.1% mom (vs. +0.2% expected). The unrounded number was +0.098% so it was also a genuine miss as opposed to just rounding. The monthly reading also meant that the annual rate remained unchanged at +2.1% yoy after expectations were for a lift to +2.2%, while the 6-month annualized rate nudged down to +2.35%. The details of the data showed that weakness was fairly broad based across core goods and core services with the biggest declines coming in airfares and car inflation. It’s worth noting that following the average hourly earnings miss in last week’s payrolls report, that now means that we’ve had two softer than expected US inflation prints in close succession. Combined with the healthcare component of the PPI on Wednesday, the read through for core PCE also looks soft for later this month. We still think higher inflation is inevitable in the US this year but there’s no doubt that the last week increases the risks to our view.

The weaker inflation helped risk and reduce vol with all US bourses ending higher (S&P +0.94%, Dow +0.80%; Nasdaq +0.89%). The S&P is now at the highest since mid-March, with all sectors up yesterday and gains led by the telco, utilities and tech stocks. Apple’s share price rose +1.43% to a record high while the VIX is below its 200 days moving average for the first time since mid-January.

In Europe, the DAX (+0.62%) and FTSE (+0.50%) also firmed but the Stoxx 600 dipped -0.12%, weighed down by the Italian MIB (-0.96%) as Italy’s Five Star and League parties said they’ve taken “significant steps forward” to form a  new government.

In FX, the USD dollar index pared back losses to end -0.42% lower while the Euro jumped 0.54%. The Sterling fluctuated within a 1.2% intraday range before closing -0.21% lower after the dovish BOE meeting. Emerging markets benefited from the USD weakness and risk on tone too, with the 10y bond yields for Turkey (-12bp), Argentina (-20bp) and Russia (-23bp) all down. In commodities, WTI oil firmed +0.31% while precious metals also advanced (Gold +0.68%; Silver +1.38%).

This morning in Asia, markets are following US markets higher with the Nikkei (+0.90%), Kospi (+0.61%) and Hang Seng (+1.28%) all up, while the Shanghai Comp. is down -0.13%. Elsewhere, President Trump has confirmed that he  and North Korea’s Kim Jong-Un will meet in Singapore on 12 June and he has high hopes of “doing something very meaningful” on denuclearisation.

Moving back to the BoE yesterday. The bank kept rates on hold as widely expected, but the vote was not unanimous (7-2), with both Saunders and McCafferty dissenting as they did in February. Our UK economists noted that the meeting brought out mixed messages from the BoE. On the one hand, the Bank retained its hawkish rhetoric by remaining relatively upbeat in its forecasts for growth in the medium term and likened the weakening in Q1 to noise.

Furthermore, the Bank was relatively sanguine on the softer wage growth to date emphasizing the continued erosion in slack, which will lift inflation in the forecast horizon. On the other hand, the BoE revised down its inflation forecasts both in the short and medium term, while reducing growth this year by 40bps. Later  on, BoE’s Carney told the BBC that a rate hike was “likely by the end of the year”. Following all the above, the Bloomberg implied odds of a rate hike in the August meeting fell 12ppt to 42%. Overall, our UK team noted that given the lower urgency for a rate hike due to the need for “limited tightening” over the forecast horizon, they see an increase in rates contingent on growth bouncing back and negotiations on the Brexit front staying positive, while their call for an August rate hike stands.

Turning to US equities, DB’s Binky Chadha noted that equity markets are broadly flat post corporate results despite reporting the strongest earnings session in 8 years as investors’ focus shifts to rising cost pressure and its impacts on margins. He argued that cost pressures do not rise in isolation. Corporates respond through pricing and productivity measures, which combined with operating leverage to sales growth have historically more than offset rising costs.  Overall, his team see the recent rise in cost pressures as a natural late cycle phenomenon while corporates can employ several levers in response as they have done historically. They believe that its much too early to be pricing in peak earnings and reiterate their S&P target of 3,000 by the end of 2018 (+10% from current levels)

Our European equity strategist Sebastian Raedler highlights that European equities have rebounded by 8% since late March even as European growth momentum has continued to soften. The main reason for the rebound is the weakness in the euro, with the EUR/USD falling by 5% over the same period. The team sees only marginal further EUR downside over the coming months however, in line with our FX strategists’ tactically neutral stance. In combination with the assumption of a continued fade in the Euro area PMI, this would imply a level of around 390 for the Stoxx 600 by end-Q2 (in line with current levels) before a decline to below 360 by end-Q3 (8% below current levels). The main upside risk for European equities is a further fall in the EUR. If the EUR/USD were to decline below 1.10, as implied by the recent moves in Euro area versus US PMIs, this would push up the implied fair-value for the Stoxx 600 to 415 by early Q3 (6% above current levels).

Before we take a look at today’s calendar, let’s wrap up with other data releases from yesterday. In the US, the weekly initial jobless claims (211k vs. 219k expected) and continuing claims (1,790k vs. 1,800k expected) were both lower than consensus. The four week moving average for the former is now the lowest for 49 years. Elsewhere, the April monthly budget surplus was slightly above expectations ($214bln vs. $212bln expected) and also the highest monthly print on record.

In the UK, the March IP was below consensus at 2.9% yoy (vs 3.1% expected) while manufacturing production was in line at 2.9% yoy. The March trade deficit widened more than expected to -£3.1bln (vs. -£2bln), partly due to a stronger rebound in imports. The RICS house price balance fell to -8 in April, which is the weakest since November 2012. On balance, surveyors expect prices to continue to decline over the next three months despite fewer reporting declining buyer interest. Finally, Italy’s March IP was above expectations at 1.2% mom (vs. 0.5%).

Looking at the day ahead, the only significant data coming from the US will be the April import price index and preliminary May University of Michigan consumer sentiment report. Elsewhere, the Spanish April CPI print is also due. ECB President Draghi will address an audience at the ADEMU conference in Florence.

3. ASIAN AFFAIRS

i)FRIDAY MORNING/THURSDAY NIGHT: Shanghai closed DOWN 11.15 points or 0 .35%   /Hang Sang CLOSED UP 312.84 points or 1.02%    / The Nikkei closed UP 261.30 POINTS OR 1.16% /Australia’s all ordinaires CLOSED UP .01%  /Chinese yuan (ONSHORE) closed UP at 6.3329/Oil DOWN to 71.39 dollars per barrel for WTI and 77.22 for Brent. Stocks in Europe OPENED RED.   ONSHORE YUAN CLOSED UP AT 6.3329 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3250/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER 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/usa

END.

3 b JAPAN AFFAIRS

end

c) REPORT ON CHINA/HONG KONG

4. EUROPEAN AFFAIRS

EU

Europe is not happy with Trump’s new Iranian sanctions/ two commentaries

(courtesy Mish Shedlock/Mishtalk)

Europe’s Shakespearean Response To Iran Sanctions: New Word “Unisolationism”

Authored by Mike Shedlock via MishTalk,

Europe is huffing and puffing and full of fury over Trump’s Iran decision. The French even coined a new word.

Trump’s decision to re-impose sanctions means a blanket ban on all new business with Iran, effective immediately. Existing operations have three to six months to be wound down.

The US’s new ambassador to Germany, Richard Grenell, wasted no time poking a finger in the eyes of his host.

END

Merkel: “Trump’s Decision Damages Trust In The International Order”

One day after Angela Merkel said Europe can no longer rely on the US “to protect it” in the aftermath of Trump’s unilateral withdrawal from the Iran nuclear accord, stating that “It’s no longer the case that the United States will simply just protect us. Rather, Europe needs to take its fate into its own hands, that’s the task of the future”, the  German Chancellor has doubled down, and said President Trump’s decision to scrap the Iran nuclear accord was “not right.”

“It’s not right to unilaterally cancel an accord that was negotiated, that was unanimously approved in the UN Security Council,” Merkel said in a speech at a Catholic religious conference in Muenster, Germany “That damages the trust in the international order.”

“What we’re seeing at the moment, which is probably the most alarming, is that multilateralism is in a real crisis” she added. She then echoed her prior warning: “I’ve said this about the U.S. decision on the Iran accord, I could say the same thing about the climate accord, the WTO – if we always say that something doesn’t suit us, and we don’t get a new international order, and everybody simply does what they want – then that’s bad news for the world.”

Or it could simply be bad news for Europe, or rather everyone but the US, and since Trump’s promise was “America first” it should hardly come as a surprise. Perhaps what Angela should be more worried about is that her disastrous “open door” immigration policy has ushered in not only Brexit but – as of yesterday – laid the groundwork for the first populist, anti-establishment government in Italy where the Five Star and League are about to form a government, which will have immigration as its key talking point.

Alas, none of this was discussed and instead Merkel kept hammering on the Iran situation, questioning whether the Iran Nuclear accord can be saved: “The extent to which we can keep this accord alive when one huge economic power isn’t taking part is something that’ll have to be discussed with Iran,” Merkel said. “We hope so, but many factors are in play and we shouldn’t pretend to be stronger than we are. That can lead to severe miscalculations.”

Nonetheless, Germany confirmed its commitment to the Iranian deal, siding with the EU, France, China, Russia, France and the UK on the issue; Merkel also said that options to save the deal without the United States needed to be discussed with Tehran and added that Trump’s decision to withdraw from the Iran nuclear deal is no reason to call into question relationships between Europe and the US.

Iran’s foreign minister Zarif is scheduled to meet with the EU High Representative for Foreign Affairs and Security Policy, Federica Mogherini, on Tuesday 15 May in Brussels in a meeting which will be attended by E3 Foreign Ministers (Germany, France, U.K.) to discuss Iran nuclear accord. Zarif will also meet with China and Russia on the prior two days.

END

Europe ends on a high note and extends its longest winning streak since 2015 despite poor economic data

(courtesy zerohedge)

European Stocks Surge To Longest Win Streak Since 2015 (As Economic Data Collapses)

European stocks are up seven straight weeks (the longest win streak since March 2015), accelerating into the green for 2018 this week…

All as European economic data surprises crash to their weakest since August 2011.

Once again – bad news is good news…

Draghi gets his excuse to keep doing “whatever it takes” and drone-like investors buy on his coat-tails.

8. EMERGING MARKET

ARGENTINA

The Argentine Peso just fell to 23 Pesos per dollar despite a 40% interest rate.  JPMorgan warns of disorder as 30 billion USA dollars of bonds come due.  This is becoming the kiss of death to Argentina who has a huge amount of external debt denominated in currencies other than the Peso.

(courtesy zerohedge)

Peso Plunges Back To Record Lows As JPM Warns Of “

Disorder” As Notes Come Due

It appers that 1275bps of rate-hikes, hopes for an IMF bailout, and promises-promises from government are not enough to halt the capital flight from Argentina as the Peso just crashed back to a new record low over 23 per USD.

With 7-day repo-rtates at 40.00%, still the currency is collapsing…

Ironically, BNP Paribas says the Peso is too risky to even short, even taking into account the carry return…

“…we prudently decided to close our tactical short 1m NDF USDARS at 23.75,” strategists led by Gabriel Gersztein write in a report,

“If anything, this is not the time to be structurally positioned in ARS assets, in our view”

But JPMorgan is even more concerned, warning that the peso may face “disorder” next week if the nation’s central bank struggles to roll over about $30 billion of short-term notes set to expire.

As Bloomberg reports, the central bank is scheduled to auction notes known as Lebacs on Tuesday, in order to roll over about 674 billion pesos ($30 billion) of securities that mature on Wednesday.

The yield on Lebacs due June jumped to 43.6 percent in the secondary market today, forcing the central bank to intervene in secondary markets.

“A failure in rolling over the maturing Lebac stock would lead to a disorder bid on the dollar and renovated capital outflow,” JPMorgan analysts Diego Pereira and Lucila Barbeito wrote in a note.

“The recent measures by the central bank, together with Lebac rates above 40 percent suggest the authority would be able to roll a significant share of the stock.”

Yields on ARGENT bonds are spiking with the century bond prices tumbling.

“Funds are liquidating their positions to cover withdrawals and pressuring the rate,” said CMF Bank Chief Financial Officer Juan Jose Ciro.

“The local situation is still ugly: the spot exchange rate won’t budge and the rate is firm. We are seeing the tail-end of the crisis, when it starts to hit retail investor.”

END

Panic in Argentina as the Peso hits 24.25 to the dollar. No doubt the central bank of Argentina must come in and raise rates again

(courtesy zerohedge)

Argentine Central Bank Intervenes As JPM Warns Of “Disorderly” Peso Collapse

 

Update 2: Freefall…

  • *ARGENTINE CENBBANK SAID TO INTERVENE AS PESO HITS 24/USD

As Bloomberg explains, the central bank’s policy error earlier this year, in which it cut the rate despite high inflation, has proved horribly costly. Macri’s whole project of economic reforms is at stake. Mention of the IMF brings back bad memories for Argentines and part of Macri’s appeal was that he promised economic competence. This latest mess shows how hard it can be to return an economy to orthodoxy after years of improvisation and price-controls. Luckily, the next election isn’t until next year and the opposition remains divided, but Cristina Fernandez de Kirchner hasn’t gone away.

*  *  *

Update 1: The Argentine Peso is now down 3% to a new record low and the central bank is desperate…

  • *ARGENTINE CENBANK SAID TO SELL $200M TO STEM PESO DROP
  • *ARGENTINE CENBANK SAID TO BUY MAY LEBACS AS YIELD HITS 50%

*  *  *

Very important:  the higher uSA dollar is playing havoc with our emerging markets, together with the higher price of oil.   This is creating a tightening effect with our emerging markets causing funds to flee.  Watch for the Brazilian real to reach 4..then we will witness panic in these markets which may cause contagion throughout the globe

(courtesy zerohedge)

Emerging Markets Hit With Biggest Outflows Since December 2016

For all the rhetoric in recent weeks, the sudden turmoil in emerging markets really boils down to one simple thing: a strong dollar; or put more specifically, the stronger the dollar and the faster its appreciation, the greater the EM turmoil.

This is shown simplistically on the following chat mapping the inverse correlation between the strong dollar and the Emerging Market debt index.

Just as important is the catalyst behind the recent EM rout – i.e. USD strength – which as as we explained recently, was the unexpected Chinese central bank easing in the form of an RRR cut, a dovish capitulation which sent the dollar into orbit while slamming the Yuan, all of course in the context of the escalating trade war between the US and China.

And with the dollar rally accelerating in the early part of the week when it hit a fresh 2018 high, only to fizzle in the last two days, it is hardly a surprise that investors started to get nervous. As a result, when looking at the latest EPFR weekly fund flow data, Bank of America found that while risk flows in the past week were at best tentative ($3.6bn inflow to equities, $0.6bn into gold, $1.2bn out of bonds), one category stood out clearly: emerging-market stocks and debt finally saw $3.7b of outflows in week ending May 9, most since December 2016.

This is notable because it represents the first material weekly outflow since late 2017 even though Emerging Market equities had been hit several weeks earlier as seen in the chart below.

It’s probably obvious that should the dollar resume its rise – which now that rate differentials have recoupled would likely mean even higher yields – the EM turmoil would get worse, and outflows would accelerate.

And while we already know that EMs have started to crack and outflows are accelerating, how long before EM contagion spills over, and what is the best indicator to keep track of to gauge the severity? Conveniently, earlier this week we asked just this question and according to Bank of America the answer was the following

“EM FX never lies and a plunge in Brazilian real toward 4 versus US dollar is likely to cause deleveraging and contagion across credit portfolios.”

In other words, the best indicator of imminent emerging market turmoil is shown in the chart below: if and when the BRL starts sliding, and approaches 4, it may be a good time to panic.

However, besides just the stronger dollar, turmoiling EMs are a symptom of another, even more serious condition: tighter financial conditions around the globe, which BofA’s Michael Hartnett summarizes as follows in the context of the largest EM outflows since late 2016:

3% UST yields + $70/bbl. oil + rising US dollar = tighter global financial conditions = deleveraging in high beta, high leverage, low liquidity assets

And, as he did earlier this week, Hartnett repeats that BRL remains key EM risk-metric…closer to 4 it gets the more EM deleveraging and potential for global contagion.”

Finally, now that everyone realizes we are late cycle, what about that other trade that traditionally mirrors EM flows: commodities. Here is Hartnett on why one should start buying “Secular humiliation”: “Late-cycle oil: commodities late-cycle & only asset class bar cash suffering secular humiliation (10yr rolling returns = -6.5%, worst since 1930s – Chart 4).”

And some more good news for commodity bulls: FX destruction in Venezuela & Iran indicates oil supply shock…

… which together with BofA’s oil price target of $100, is not reflected in energy fund flows.

end

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

Euro/USA 1.1931 UP .0018/ 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 ALL  RED   

USA/JAPAN YEN 109,32 DOWN 0.137(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 1.3561 UP.0040  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2738 DOWN .0033 (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 FRIDAY morning in Europe, the Euro ROSE by 18 basis points, trading now ABOVE the important 1.08 level RISING to 1.1931; / Last night Shanghai composite CLOSED DOWN 11.15 POINTS OR 0.35%  /   Hang Sang CLOSED UP 312.84 POINTS OR 1.02% /AUSTRALIA CLOSED UP.01% / EUROPEAN BOURSES  ALL RED

The NIKKEI: this FRIDAY morning CLOSED UP 261.30 OR 1.16% 

Trading from Europe and Asia

1/EUROPE OPENED  ALL RED

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 312.84 POINTS OR 1.02%   / SHANGHAI CLOSED DOWN 11.15 POINTS OR 0.35%  /

Australia BOURSE CLOSED UP .01%

Nikkei (Japan) CLOSED UP 261.30 POINTS OR 1.16%

INDIA’S SENSEX  IN THE GREEN 

Gold very early morning trading: 1324.80

silver:$16.79

Early FRIDAY morning USA 10 year bond yield: 2.96% !!! DOWN 0  IN POINTS from THURSDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/ 

The 30 yr bond yield 3.11 DOWN 0  IN BASIS POINTS from THURSDAY night. (POLICY FED ERROR)/

USA dollar index early  THURSDAY morning: 92.54 DOWN 11  CENT(S) from THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.679% DOWN 5  in basis point(s) yield from THURSDAY/

JAPANESE BOND YIELD: +.0.47%  DOWN 3/5   in basis points yield from THURSDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.273% DOWN 4  IN basis point yield from THURSDAY/

ITALIAN 10 YR BOND YIELD: 1.872  DOWN 6  POINTS in basis point yield from THURSDAY/

the Italian 10 yr bond yield is trading 60 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD:RISES TO +.559%   IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1949 UP .0036(Euro UP 36 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 109.27 DOWN 0.185 Yen UP 19 basis points/

Great Britain/USA 1.3551 UP .0029( POUND UP 29 BASIS POINTS)

USA/Canada 1.2778 UP  .0008 Canadian dollar DOWN 8 Basis points AS OIL FELL TO $71,05

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This afternoon, the Euro was UP 36 to trade at 1.1949

The Yen ROSE to 109.27 for a GAIN of 19 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 29 basis points, trading at 1.3551/

The Canadian dollar ROSE by 8 basis points to 1.2778/ WITH WTI OIL FALLING TO : $71.05

The USA/Yuan closed AT 6.3340
the 10 yr Japanese bond yield closed at +.047%  DOWN 3/5  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield DOWN 1   IN basis points from THURSDAY at 2.964% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.104  DOWN 4      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, 92.50  DOWN 15 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED UP 23.58 POINTS OR 0.31%
German Dax :CLOSED DOWN 21.63 POINTS OR 0.17%
Paris Cac CLOSED DOWN 4.01 POINTS OR .24%
Spain IBEX CLOSED UP 24.80 POINTS OR 0.25%

Italian MIB: CLOSED UP 125.44 POINTS OR 0,52%

The Dow closed UP 91.64 POINTS OR 0.37%

NASDAQ closed DOWN 2.09 Points OR  0.03.%      4.00 PM EST

WTI Oil price; 71,05  1:00 pm;

Brent Oil: 77.34 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 61.52 UP 7/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 7 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO +.559% 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:$70.53

BRENT: $77,00

USA 10 YR BOND YIELD: 2.97%   THIS RAPID RISE IN YIELD IS ALSO VERY DANGEROUS/RECESSION COMING/DERIVATIVES FRY!!

USA 30 YR BOND YIELD: 3.10%/DEADLY

EURO/USA DOLLAR CROSS: 1.1937 UP .0023  (UP 23 BASIS POINTS)

USA/JAPANESE YEN:109.34 DOWN 0.110 YEN UP 11 BASIS POINTS/ .

USA DOLLAR INDEX: 92.56 DOWN 9 cent(s)/dangerous as the lower the dollar the higher the inflation.

The British pound at 5 pm: Great Britain Pound/USA: 1.3538 up 0.0016  (FROM YESTERDAY NIGHT UP 16 POINTS)

Canadian dollar: 1.2786 DOWN 15 BASIS pts

German 10 yr bond yield at 5 pm: +0.559%


VOLATILITY INDEX:  12.65  CLOSED  DOWN 0.58   

LIBOR 3 MONTH DURATION: 2.355%  .

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

TRADING IN GRAPH FORM FOR THE DAY

Stocks Surge But Cryptos Tanked, ARS Spanked, & Dollar Bid Yanked

So… Trump stirs up the Middle-East by withdrawing from JCPOA and… The Dow gains 600 points (best week in 2 months), VIX tumbles to a 12 handle (lowest close since Jan), Oil rises just 1.25% on the week (but at 4 year highs), Gold managed a modest gain (the first weekly rise in a month) and The Dollar and The Long Bond end the week unchanged

BTFINDWD!!

But it all started last week…

VIX was monkeyhammered to a 12 handle…

VIX lowest close since Jan..

The Dow found resistance at the 100DMA…

AAPL was set for the longest daily win streak since 2010… but closed lower today…

Symantec was clubbed like a baby seal..

TSLA stock remains decoupled from reality…

Healthcare-related stocks dipped then ripped on Trump’s announcement…

Bank stocks started to fade a little relative to the market in the last two days as the yield curve collapsed…

Treasury yields were very mixed on the week with the long-end lower and short-end higher…

Which meant massive flattening across the curve:

  • 5s30s -6bps to 27bps (flattest since Aug 2007)
  • 2s30s -5bps to 57bps (flattest since Aug 2007)
  • 2s10s -2bps to 43bps (flattest since Sept 2007)
  • 7s10s -2bps to 2.7bps (flattest on record)
  • 10s30s -3bps to 13bps (flattest Jul 2007)

As CPI sparked a significant dump…

30Y Yields peaked midweek then were bid into the weekend…

Once again 30Y yields find resistance at around 3.20%…

10Y Yields rejected 3.00% again…

The Dollar Index closed the week flat as the early week bid evaporated on Thursday and Friday…

ARS was spanked early on before BCRA piled in with massive $1 billion intervention to rescue the day (but in context the bounce is marginal ahead of next week’s massive liquidity needs)…

Cryptocurrencies suffered this week as MtGox liquidation rumors, Nvidia forecasts, and a South Korean exchange raid sparked FUD…

The dollar’s wild ride left all commodities green on the week, though we note that WTI gave back a lot of the mid-week gains…

Finally, we leave it to Gluskin-Sheff’s David Rosenberg for some much-needed context…

David Rosenberg@EconguyRosie

The stock market has gone 74 days without making a new high but that hasn’t stopped the bulls from boasting about how it is up or flat six days in a row. I still say to sell into strength.

end

USA morning data

U. of Michigan confidence hits 13month lows

(courtesy zerohedge)

UMich Sentiment Flat As Stock Market Confidence

Hits 13-Month Lows

  • Current Conditions dropped from 114.9 to 113.3
  • Expectations ‘hope’ rose from 88.4 to 89.5.

The headline index was unchanged…

What is likely to capture attention, however, are the small uptick in near term inflation expectations, the downward slippage in income expectations, and the expected stabilization of the national unemployment rate at decade lows.

Confidence in a rising stock market dropped to its lowest since April 2017…

The data will “provide some additional points for both sides in the debate about the timing and number of future interest-rate hikes,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement.

The Michigan report showed 59 percent of respondents expected higher gasoline prices in the next 12 months. That’s up from April’s 47 percent share and is the highest in two years, and 8 in 10 respondents expected rising interest rates in year ahead.

END

HAWAII rocked by a huge 6.9 magnitude earthquake.  Toxic gas surfaces and fears mount as lava approaches a Hawaii power plant

(courtesy zerohedge)

Toxic Gas, Massive Explosion Fears Mount As Lava Nears Hawaii Power Plant

There have been a number of powerful earthquakes since the volcano started erupting.

In Pahoa, the nearest village to Kilauea, some schools remained closed after the area was hit by a 6.9 magnitude earthquake on Friday, the biggest since 1975.

And while the destruction is already terrible, RT reports that the relentlessly advancing lava from the Kilauea volcano in Hawaii is now closing in on a geothermal power plant, prompting a frantic scramble to move tens of thousands of gallons of highly flammable chemicals.

Hawaii Governor David Ige revealed that an emergency task force is removing large amounts of pentane from the Puna Geothermal Venture plant after a new fissure opened up approximately half a mile from the facility on Wednesday.

It was estimated that an enormous explosion with a blast radius of approximately a mile (1.6 kilometers) could be unleashed if the fluid ignites.

There are still nearly 50,000 gallons of pentane stored at the siteaccording to Hawaii News Now.

“Everything is still on property, ” Magno said. “They moved it to high ground just in case any flowings would start going that style, give them a little more day. But their plans are made to get them out of there if it gets to that next level.”

A total of 15 new fissures have appeared on Hawaii’s Big Island since the eruption began. Geologists have warned that it may now be entering a more violent phase of explosive eruptions, the likes of which Hawaii has not seen in nearly a century.

As if that was not enough to worry about, as Reuters reports, Hawaii County authorities sent a text message to residents of the southeast corner of the island warning them of a wind change that would bring rising levels of sulfur dioxide gas, which can be fatal if inhaled in large quantities.

“It’s just horrible. You can’t breathe in there,” said evacuated resident Robynn Stagg, 58, who drove through the thick, orange sulfur dioxide haze earlier this week in a failed attempt to check on her home.

Hawaii’s governor has warned that mass evacuations may be required as more fissures open in the ground and spew lava and gas into semi-rural residential areas on the east flank of Kilauea, one of the world’s most active volcanoes.

“A mass evacuation of the lower Puna District would be beyond current county and state capabilities, and would quickly overwhelm our collective resources,” he said, adding in a separate post that he has signed a request for federal disaster assistance.

The Leilani Estates community remains in greatest danger, with 15 volcanic fissures so far having destroyed 36 structures, most of them homes, and forcing the evacuation of about 2,000 residents.

But as the eruption progresses, “other areas of the lower East Rift Zone may also be at risk,” the Hawaiian Volcano Observatory said in a bulletin.

“There is the potential for additional outbreaks,” Christina Neal, the chief scientist at the U.S. Geological Survey’s Hawaiian Volcano Observatory at Kilauea told a news briefing. “There are other communities, other residential neighborhoods that could, depending on the evolution of activity, be in harm’s way.”

Kilauea is the youngest and southeastern-most volcano on the Big Island. It has actually been erupting continuously since 1983, however, its previous activity was largely confined to remote parts of the coastline.

end

Trump who is having a running feud with Amazon’s Bezos, is not going to look the report of a huge loss of 1.4 Billion dollars at the US Postal Service.  For the past decade it has lost 62 billion dollars

(courtesy zerohedge)

US Postal Service Loses $1.4 Billion, Burns Through $62 Billion In Past Decade

With the US Postal Service recently in the crosshairs in the on again/off again feud between the world’s most powerful man, US President Donald Trump and the world’s richest man, Amazon CEO Jeff Bezos, today’s otherwise boring earnings release by the USPS got some additional scrutiny by the investing public.

The report had some good, but mostly bad news, because whereas revenue increased modestly in the quarter, largely thanks to a 5% jump in package volume – thanks Amazon – even as mail volumes declined by 2.1%, expenses soared by 5.7% in the quarter, mostly as a result of unsustainable increases in retiree health benefits, which surged by $766 million. The result: a total quarterly loss of $1.3 billion.

“Despite growth in our package business, our financial results reflect systemic trends in the marketplace and the effects of an inflexible, legislatively mandated business model that limits our ability to generate sufficient revenue and imposes costs upon us that we cannot afford,” Postmaster General and CEO Megan J Brennan complained.

“America needs a financially strong Postal Service that can invest in its future and can continue to fulfill the needs of American businesses and consumers. With continued aggressive management and greater legal authority to respond to changes in our marketplace and to control our costs, the Postal Service can return to financial sustainability.”

Until then, what the USPS will continue to do is effectively subsidize the Amazon business model, even if it means buying the effectively insolvent USPS a few additional years of life.

Some additional details:

  • Total revenue of $17.5 billion for the second quarter ended March 31, 2018: an increase of $235 million, or 1.4% Y/Y, as shipping and packages revenue grew by $445 million, or 9.5% while First-Class and Marketing Mail revenue fell by a combined $181 million. The trends observed in previous quarters persisted as growth in package volume grew by 69 million pieces, or 5.0% (Amazon), while snail mail volumes declined by another 700 million pieces, or 2.1%, compared to the same quarter last year.
  • The total “controllable loss” for the quarter was $656 million, compared to controllable income of $12 million in Q2 last year. This was driven by a $236 million increase in the cost of retiree health benefits due to changes in actuarial assumptions and a $364 million increase in compensation expenses due to additional hours incurred to support the labor-intensive package business as well as contractual wage adjustments. Additionally, transportation expense grew by $155 million due to highway contract rate inflation as well as higher fuel costs.
  • Total operating expenses were $18.8 billion for the quarter, an increase of $1.0 billion, or 5.7 percent, compared to the same quarter last year. In addition to the controllable expenses referenced above, unfunded retirement and retiree health benefits grew by a combined $766 million due to changes in actuarial assumptions. Workers’ compensation expense declined by $658 million compared to the same quarter last year, resulting primarily from changes in interest rates.

In total, the net loss for the second quarter totaled $1.3 billion, more than double the $562 million reported one year ago, and may explain the desperation in the CFO’s comment:

“The continued secular decline in First Class mail, rising costs and legislative and regulatory constraints resulted in larger losses this quarter,” said Chief Financial Officer Joseph Corbett.

Putting these results in context, we find a “business” that has had 4 profitable quarters in the past 10 years

… and which despite generating $684 billion in revenue over the past decade, has managed to lose nearly $62 billion, an effective – and subsidized – transfer of wealth to that “other” company.

Or, to loosely paraphrase Jamie Dimon, there’s a reason why the man in the photo below is richer than (all of) you.

end
SWAMP STORIES
My goodness:  it seems that Stormy’s lawyer is a crook himself.  He faces disbarment, tax evasion and host of other charges in a failed coffee chain purchase two years ago
(courtesy zerohedge)

Avenatti Exposed: Stormy’s Lawyer May Face Disbarrment, Legal Action As Past Catches Up

Stormy Daniels’ lawyer Michael Avenatti has some explaining to do…

After appearing on CNN 59 times to claim the moral high ground over President Trump’s alleged decade-old affair with Daniels, skeletons in Avenatti’s closet are now beginning to pour out.

Questions have emerged over who’s funding Avenattihow he was privy to Trump attorney Michael Cohen’s bank records – and how exactly did he obtain banking transactions for two men also named Michael Cohen, who he wrongly accused in a seven-page “dossier” released this week. 

Other questions have come to light over a bankrupt coffee chain Avenatti left in smoldering ashes with $5 million in unpaid taxes to the IRS, an alleged $160,000 owed for unpaid coffee, and over 45 lawsuits filed in connection with the failed venture.

Bitter coffee deal

As outlined in a legal complaint seeking Avenatti’s disbarment, the balding provocateur “bought a company out of bankruptcy and then used it for a “pump and dump” scheme to deprive federal and state taxing authorities of millions of dollars,” which left over $5 million in unpaid taxes to the IRS.

Avenatti purchased Tully’s out of bankruptcy in 2013, in partnership with actor Patrick Dempsey, who is best known for his role as Derek “McDreamy” Shepherd in the TV show “Grey’s Anatomy.” Dempsey sued Avenatti in August 2013 to break off the partnership.

Since then, Tully’s has significantly struggled. More than 45 lawsuits have been filed against the chain’s parent company, which Avenatti says he no longer owns. In 2017, the company owed roughly $5 million in unpaid taxes to the Internal Revenue Service. And, in March, the coffee chain abruptly closed all locations. –Business Insider

Robert Barnes@Barnes_Law

Not everybody owes $5M+ in federal taxes…meet Michael Avenatti…

According to Dempsey, Avenatti was supposed to bankroll the deal through his company, Global Baristas, but didn’t have the funds – instead borrowing $2 million at an “exorbitant” 15% to close on the transaction. The actor sued to get out of the partnership after he claimed “Avenatti concealed the Loan and the Security Agreement from Dempsey.”

Since 2013, 46 cases have been filed against Global Baristas US LLC and its parent company, Global Baristas LLC in Washington’s King County Superior Court.

One of the companies left in Avenatti’s wake is Dillanos Coffee Roasters, which CEO David Morris says is owed over $160,000 for beans.

David J. Morris

@coffeemaverick

@seanhannity@FoxNews So @StormyDaniels hot shot lawyer @MichaelAvenatti , owes my small company @Dillanos $160,179 for coffee. He talks a big talk about integrity. We trusted him. Retweet if you think he should pay up!

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TrumpGirlFierce🇺🇸@j3nnp4c3

Pay your coffee bill boy! Geeeesh😂😂😂😂😂😂

Speaking of back taxes, Avenatti reportedly paid himself $1.85 million in 2015 and 2016 while his law firm racked up over $1.5 million iun back taxes.

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Techno Fog@Techno_Fog

Court documents:

Why was Michael Avenatti paying himself $1.85 million in 2015-2016 while his law firm ran up over $1.5 million in back taxes?

Robert Barnes@Barnes_Law

is reportedly under a rather massive California State Bar inquiry; there is a good chance he gets disbarred.

Jody Della Barba@cellinoatt
Replying to @Barnes_Law

Why isn’t he disbarred?

Read the bar complaint against Avenatti here:

https://www.scribd.com/embeds/378843745/content?start_page=1&view_mode=scroll&access_key=key-LKNEHjwUyfJWIMXPzGQU&show_recommendations=true

Big trouble over leaks?

Next there’s the question of who exactly leaked Trump attorney Michael Cohen’s bank records – and the records of two unrelated men named Michael Cohen who Avenatti wrongly accused of.  Yesterday we reported that the US Treasury launched a probe into the leak, as Avenatti refuses to disclose his source.

Accordingly, someone may be in deep trouble over the leaks. As The Daily Beast‘s Kate Briquelet notes, Cohen’s attorneys filed court papers questioning the veracity of Avenatti’s “dossier,” along with how he came to obtain the banking transactions.

A spokesman for the Office of the Inspector General told ABC News that investigators are probing whether Suspicious Activity Report information “has been improperly disseminated.” The IG investigation arose from a New York Times report that apparently included the same information Avenatti released, according to ABC News.

tax lawyers interviewed by The Daily Beast say they’re puzzled that Avenatti would have access to Cohen’s banking info—especially after Daniels’ civil case was put on hold, and because the feds are still investigating Cohen. They said it’s highly unusual for SARs, which are confidential and not to be made public, to be leaked.

Experts told The Daily Beast the level of detail in Avenatti’s report suggests he obtained Treasury documents that only the agency’s Financial Crimes Enforcement Network (FinCEN) had access to or which were requested by law enforcement—such as the U.S. Attorney’s Office for the Southern District of New York, which has been investigating Cohen for months, reportedly eyeing the Trump stalwart for possible bank fraud, wire fraud, and campaign-finance violations.The Daily Beast

I think somebody from the SDNY is leaking,” said Las Vegas-based trial attorney Robert Barnes. “The degree to which Avenatti had details implicates them badly.”

Robert Barnes@Barnes_Law

The only people who had BOTH the bank information & the FINCEN information is the team & . Either way, federal law enforcement is illegally leaking private records to embarrass Trump in violation of criminal laws through ethically-suspect lawyer .

Jack Posobiec🇺🇸

@JackPosobiec

Mueller raids Michael Cohen’s office and suddenly his clients and bank records get leaked to Stormy Daniels lawyer

Gee, I wonder who leaked them

Avenatti published details on the identities of and payments from Cohen’s “business clients” AT&T and Novartis, Ryan stated. The defense attorney denied Columbus Nova, the firm connected to the Russian oligarch, routed funds to Cohen on behalf of Vekselberg and his cousin Andrew Intrater.

Federal investigators have Cohen’s bank records as a result of the April raids, Ryan said, adding, “but we are not aware of any lawful attempts by Mr. Avenatti to obtain these records.” –The Daily Beast

Martin Sheil, a retired IRS branch chief of the Criminal Investigation division, told The Daily Beast that whoever leaked the SARs to Avenatti could face criminal penalties.

That person has to be either bank connected and therefore knowledgeable as to the confidentiality provisions of the SAR process, or this person could be law-enforcement related,” Sheil said. He added, “Every law-enforcement person who has access to the FinCEN database containing SARs must take an online course that goes over the confidentiality provisions of the Bank Secrecy Act and FinCEN protocols.”

Techno Fog@Techno_Fog

This is fun. Cohen’s lawyer asked the Judge that Avenatti be “required to explain to this Court how he came to possess and release” Cohen’s bank records.

Might be the only time a lawyer has plead the 5th at a simple pro hac vice hearing.

Who’s funding Avenatti?

Last but not least are questions swirling over exactly who is funding Michael Avenatti’s crusade.

After Stormy Daniels admitted over Twitter that she’s not paying for his services, rumors began to swirl that his efforts could be bankrolled by everyone from George Soros to Prince Alwaleed Bin Talal.

Jack Posobiec🇺🇸

@JackPosobiec

I wonder what @Alwaleed_Talal is up to these days, which I bring up for no reason whatsoever

Richard Armande Mills (RAM)

@RAMRANTS

The lawyer of Stormy Daniels, Michael Avenatti, was on CNN 59 times in 54 days & they never asked him more about how he was introduced to Stormy Daniels, his random ties to the far-left, his $2.4M tax lien reimbursement payments, & how he is able to afford them crowdfunding.

SMH

But this release of a “report” by Avenatti also raises the question of where and how did he get this detailed financial information because he didn’t find it on Google. This is the kind of information that would have been known only by the Treasury Department, his banks or by prosecutors, raising some serious questions about what kind of operation Avenatti is running. Is there a team of people digging this up? Are they paying off sources? Is Fusion GPS involved? Are there political donors behind it that could make this campaign work? He can’t be both an attorney and then participate as an officer of the court in trafficking illegally obtained information.

Avenatti has been given a free, unfettered media perch on TV to spread his stuff without the networks forcing him to meet any disclosure requirements, saying that he is Daniels’s attorney when someone else entirely is paying for this operation is not true disclosure that allows the viewer to evaluate the source and potential conflicts. He is now being given deference as though he is a journalist interested in protecting unverified sources while he makes the most headline-grabbing statements he can. Lawyers need to disclose the source of their evidence. –The Hill, op-ed

Avenatti, meanwhile, tells the Daily Caller that “any suggestion or claim that somehow this is being funded by the Left or funded by some PAC or funded by left-wing political interests or funded by any other political interests is complete and utter bullshit.”

Peter J. Hasson

@peterjhasson

.@MichaelAvenatti tells @DailyCaller: “any suggestion or claim that somehow this is being funded by the Left or funded by some PAC or funded by left-wing political interests or funded by any other political interests is complete and utter bullshit.” http://dailycaller.com/2018/05/10/who-is-paying-michael-avenatti-political-interests/ 

EXCLUSIVE: ‘Utter Bulls***’ — Avenatti Denies ‘Political Interests’ Are Paying Him Via @dailycaller

‘You can quote me on that’

Avenatti repeatedly pointed to an April 30 tweet in which he said, “The only source of outside funds for the legal fight we are waging is the [CrowdJustice] site and Ms. Daniels’ personal funds. No PACs, no political party, no special interests, no fat cat donors. The haters need to come up with a new conspiracy theory.”

TheDCNF asked Avenatti about his funding source after The Hill ran a Thursday column that claimed “Avenatti needs to come forward with exactly who is financing his operation, who his sources were for detailed banking information, and whether he really is an attorney solely representing Stormy Daniels or just using her as cover to wage a political operation.”

The only sources of funding for his legal battle against Trump are a small payment Daniels gave him up front, plus money raised on a crowdfunding site, CrowdJustice, Avenatti indicated to TheDCNF.

“Ms. Daniels paid a de minimis amount — plus the CrowdJustice, period,” Avenatti said. To date, the crowdfunding effort has raised over $425,000. –Daily Caller

And there we have it – as Michael Avenatti comes under fire for naming the wrong “Michael Cohens” and his access to confidential banking records in his quest to take down Donald Trump and his attorney, his past is catching up with him – and threatens to erase any semblance of credibility he may have once had.

Robert Barnes@Barnes_Law

Is there anybody hasn’t defrauded? He’s already been sued, has warrants, liens or judgments for defrauding employees, customers, vendors, investors, partners, cities, counties, states, the feds, and accused of lying to sheriffs, judges, bankruptcy courts & creditors.

END

What a riot:  A T and T paid 600,000 dollars upfront to Cohen for “insight”  (bribe) on the Time Warner merger. This is legal but this is how Washington works

(courtesy zerohedge)

AT&T Paid Cohen Up To $600,000 For “Insight” On Time Warner Merger

When Stormy Daniels’ lawyer Michael Avenatti first leaked wire transfer records showing that corporations including AT&T, Novartis, Korea Aerospace and Viktor Vekselberg’s Columbus Nova had paid hundreds of thousands in “consultant” fees to Donald Trump’s personal attorney Michael Cohen (which, it turns out, while frowned upon are perfectly legal in the Washington swamp, just as it is legal to “donate” millions to a Clinton charity to buy influence), we congratulated Cohen for having the sheer temerity to hustle major corporations into believing he knew something he did not (as all his brand new clients would soon find out).

Then overnight, we learned that Cohen’s corporate hustling was even more remarkable than initially reported, with the WaPo reported that AT&T paid Cohen up to $600,000 for “insights” – about $400,000 more than that alleged by Michael Avenatti – and asked him to specifically look into its proposed $85 billion merger with Time Warner Inc as it sought government antitrust approval.

As the WaPo adds “It is unclear what insight Cohen — a longtime real estate attorney and former taxi cab operator — could have provided AT&T on complex telecom matters.

The unstated message, naturally, is that AT&T “sponsored” Cohen to influence Trump to fast-track the merger; instead AT&T’s plan backfired dramatically and while AT&T may or may not have bribed sponsored Trump’s attorney, Trump’s DOJ remains engaged in a bitter fight seeking to block the proposed megamerger. In other words, had AT&T simply burned the $600,000, it would have had a higher return on its investment.

Actually it was even worse, because instead of getting a favorable outcome on its investment, all AT&T got was to testify to Robert Mueller about the money: as reported previously, AT&T and pharma giant Novartis, another Cohen “client”, said this week that they provided information about their dealings with Trump’s lawyer to special counsel Robert Mueller III last year. Cohen is also under investigation by prosecutors in New York for possible bank fraud and campaign finance violations.

Meanwhile, as Americans get a glimpse of how things really get done in DC, a “scope of work” describing Cohen’s contract in an internal AT&T document stated that he was hired to “focus on specific long-term planning initiatives as well as the immediate issue of corporate tax reform and the acquisition of Time Warner.” Cohen was also directed to “creatively address political and communications issues” facing the company and advise the company on matters before the Federal Communications Commission.

In an internal email to AT&T employees on Wednesday, the company said that Cohen was one of several consultants it hired to get advice on the administration’s approach on antitrust enforcement – as it sought approval for the deal that Trump had criticized – as well as a corporate tax overhaul and “regulatory reform” before the Federal Communications Commission.

However, as Bloomberg adds, the commission chairman, Ajit Pai, said Thursday that the commission never heard from Cohen. “No,” Pai responded when asked at a news conference about any inquiries arranged by Cohen on possible changes to the commission’s Obama administration requirements that internet services treat all web content equally.

Meanwhile, as part of the DOJ’s lawsuit to block the AT&T-Time Warner merger, a federal judge is slated to issue his ruling in that case June 12.

Finally, AT&T said in the internal email that “Cohen did no legal or lobbying work for us, and our contract with Cohen expired at the end of its term in December 2017.” The company also said that “it was not until the following month in January 2018 that the media first reported, and AT&T first became aware of, the current controversy surrounding Cohen.”

* * *

Below is the AT&T email in full:

From: T Now
Sent: Wednesday, May 09, 2018 12:10 PM
Subject: Perspective on the news

To: All U.S. AT&T employees

Late yesterday, many media outlets reported that in 2017, AT&T hired Michael Cohen, a former lawyer with the Trump Organization. We want you to know the facts.

In early 2017, as President Trump was taking office, we hired several consultants to help us understand how the President and his administration might approach a wide range of policy issues important to the company, including regulatory reform at the FCC, corporate tax reform and antitrust enforcement. Companies often hire consultants for these purposes, especially at the beginning of a new Presidential Administration, and we have done so in previous Administrations, as well.

Cohen was one of those consultants. Cohen did no legal or lobbying work for us, and our contract with Cohen expired at the end of its term in December 2017. It was not until the following month in January 2018 that the media first reported, and AT&T first became aware of, the current controversy surrounding Cohen.

END

A T and T states that it was a mistake to hire Cohen.  Why? because they were caught?

(courtesy zero hedge)

“Hiring Michael Cohen Was A Big Mistake” Says AT&T CEO As He “Forces Out” Exec Behind Cohen Contract

Following the overnight report that AT&T had paid Trump’s personal lawyer Michael Cohen $600,000 for “insight” on the company’s Time Warner merger, moments ago AT&T’s top Washington executive and policy chief, and the man who authorized the Cohen payment – Robert Quinn – was forced out of the company, and is “retiring” after what AT&T called a reputation-damaging and mistaken hiring of Mike Cohen.

AT&T executive Bob Quinn arriving for a meeting with U.S. President-elect Donald Trump at Trump Tower; source: WSJ/Reuters

The company told employees in an internal memo Friday that Bob Quinn was retiring, but as the WSJ reported, a person familiar with the matter said Mr. Quinn was being forced to leave.

“Our company has been in the headlines for all the wrong reasons these last few days and our reputation has been damaged,” CEO Randall Stephenson said in a memo to employees. “There is no other way to say it – AT&T hiring Michael Cohen as a political consultant was a big mistake.”

Full letter below:

However, it was not immediately clear why the hiring of Cohen was a big mistake: because it was corrupt, or because it failed to achieve the intended goal and “bribe” its way into a done deal with Time Warner, and instead all AT&T got for its $600,000 were several close on the record interviews with Robert Mueller and a lawsuit with the DOJ which has pushed the AT&T-Time Warner deal on the verge of collapse.

Of course, the simplest explanation is that “it was a big mistake” because… AT&T got caught.

end

Wow!! it certainly looks like the FBI hid a mole in the Trump campaign and that individual supplied information that may have led to the whole hoax of Russian interference in the uSA election.

Quite a story..

(courtesy Wall Street Journal/Strassel)

WSJ: The FBI Hid A Mole In The Trump Campaign

On Wednesday we reported on an intense battle playing out between House Intel Committee Chairman Devin Nunes (D-CA), the Department of Justice, and the Mueller investigation concerning a cache of intelligence that Deputy Attorney General Rod Rosenstein refuses to hand over – a request he equated to “extortion.”

On Tuesday, the Washington Post reported that Nunes was denied access to the information on the grounds that it “could risk lives by potentially exposing the source, a U.S. citizen who has provided intelligence to the CIA and FBI.

After the White House caved to Rosenstein and Nunes was barred from seeing the documents, it also emerged that this same intelligence had already been shared with Special Counsel Robert Mueller as part of his investigation into alleged Russian involvement in the 2016 US election.

On Wednesday afternoon, however, news emerged that Nunes and House Oversight and Government Reform Committee Chairman Trey Gowdy (R-SC) would receive a classified Thursday briefing at the DOJ on the documents. This is, to put it lightly, incredibly significant.

Why? Because it appears that the FBI may have had a mole embedded in the Trump campaign.

In a bombshell op-ed in the Wall Street Journal, Kimberly Strassel shares a few key insights about recent developments. Perhaps we should start with the ending and let you take it from there. Needless to say Strassel’s claims, if true, would have wide ranging implications for the CIA, FBI, DOJ and former Obama administration officials.

Strassel concludes: 

“I believe I know the name of the informant, but my intelligence sources did not provide it to me and refuse to confirm it. It would therefore be irresponsible to publish it.”

Authored by Kimberley Strassel, op-ed via The Wall Street Journal,

About That FBI ‘Source’

Did the bureau engage in outright spying against the 2016 Trump campaign?

The Department of Justice lost its latest battle with Congress Thursday when it allowed House Intelligence Committee members to view classified documents about a top-secret intelligence source that was part of the FBI’s investigation of the Trump campaign. Even without official confirmation of that source’s name, the news so far holds some stunning implications.

Among them is that the Justice Department and Federal Bureau of Investigation outright hid critical information from a congressional investigation. In a Thursday press conference, Speaker Paul Ryan bluntly noted that Intelligence Chairman Devin Nunes’s request for details on this secret source was “wholly appropriate,” “completely within the scope” of the committee’s long-running FBI investigation, and “something that probably should have been answered a while ago.” Translation: The department knew full well it should have turned this material over to congressional investigators last year, but instead deliberately concealed it.

House investigators nonetheless sniffed out a name, and Mr. Nunes in recent weeks issued a letter and a subpoena demanding more details. Deputy Attorney General Rod Rosenstein’s response was to double down—accusing the House of “extortion” and delivering a speech in which he claimed that “declining to open the FBI’s files to review” is a constitutional “duty.” Justice asked the White House to back its stonewall. And it even began spinning that daddy of all superspook arguments—that revealing any detail about this particular asset could result in “loss of human lives.”

This is desperation, and it strongly suggests that whatever is in these files is going to prove very uncomfortable to the FBI.

The bureau already has some explaining to do. Thanks to the Washington Post’s unnamed law-enforcement leakers, we know Mr. Nunes’s request deals with a “top secret intelligence source” of the FBI and CIA, who is a U.S. citizen and who was involved in the Russia collusion probe. When government agencies refer to sources, they mean people who appear to be average citizens but use their profession or contacts to spy for the agency. Ergo, we might take this to mean that the FBI secretly had a person on the payroll who used his or her non-FBI credentials to interact in some capacity with the Trump campaign.

This would amount to spying, and it is hugely disconcerting. It would also be a major escalation from the electronic surveillance we already knew about, which was bad enough. Obama political appointees rampantly “unmasked” Trump campaign officials to monitor their conversations, while the FBI played dirty with its surveillance warrant against Carter Page, failing to tell the Foreign Intelligence Surveillance Court that its supporting information came from the Hillary Clinton campaign. Now we find it may have also been rolling out human intelligence, John Le Carré style, to infiltrate the Trump campaign.

Which would lead to another big question for the FBI: When? The bureau has been doggedly sticking with its story that a tip in July 2016 about the drunken ramblings of George Papadopoulos launched its counterintelligence probe. Still, the players in this affair—the FBI, former Director Jim Comey, the Steele dossier authors—have been suspiciously vague on the key moments leading up to that launch date. When precisely was the Steele dossier delivered to the FBI? When precisely did the Papadopoulos information come in?
And to the point, when precisely was this human source operating? Because if it was prior to that infamous Papadopoulos tip, then the FBI isn’t being straight. It would mean the bureau was spying on the Trump campaign prior to that moment. And that in turn would mean that the FBI had been spurred to act on the basis of something other than a junior campaign aide’s loose lips.

We also know that among the Justice Department’s stated reasons for not complying with the Nunes subpoena was its worry that to do so might damage international relationships. This suggests the “source” may be overseas, have ties to foreign intelligence, or both. That’s notable, given the highly suspicious role foreigners have played in this escapade. It was an Australian diplomat who reported the Papadopoulos conversation. Dossier author Christopher Steele is British, used to work for MI6, and retains ties to that spy agency as well as to a network of former spooks. It was a former British diplomat who tipped off Sen. John McCain to the dossier. How this “top secret” source fits into this puzzle could matter deeply.

I believe I know the name of the informant, but my intelligence sources did not provide it to me and refuse to confirm it. It would therefore be irresponsible to publish it. But what is clear is that we’ve barely scratched the surface of the FBI’s 2016 behavior, and the country will never get the straight story until President Trump moves to declassify everything possible. It’s time to rip off the Band-Aid.

end
Let us close out the week as usual with this wrap up courtesy of Greg Hunter/USAWatchdoge

North Korea Success, Iran & Israel Tangle, Blue Wave Sinks

By Greg Hunter’s USAWatchdog.com (WNW 334 5.11.18)

Even the biased propaganda of the mainstream media (MSM) had to call what is happening in North Korea a good thing. Will Trump win the Nobel Peace Prize?  Who knows, but there is zero doubt that Trump has made more progress on North Korea than any president since Truman.

Iran has been building military bases in Syria for war, and Israel is attacking them. Syria is also attacking Israel in what looks to be a new chapter in the Syrian conflict.

This week featured several primaries in multiple states. Instead of a so-called “Blue Wave” hitting the political shores, what we saw was a blue fizzle and laid bare the advantage the Democrats have been touting for the upcoming 2018 mid-terms.  The Dems are running on tax increases, impeachment of Trump, destroying the 2nd Amendment and basic Marxism.  That is a very tough bill to sell without outright lying and cheating, which is what I predict the Dems will have to resort to come November.

Join Greg Hunter as he talks about the top stories in America and around the world in the Weekly News Wrap-Up.

(To Donate to USAWatchdog.com Click Here) 

end

I will  see you MONDAY night

HARVEY

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