May 24/STRONG DAY FOR BOTH GOLD AND SILVER/GOLD UP $12.40 TO $1305.00 AND SILVER IS UP 27 CENTS TO $16.66/ECB ANNOUNCES A SLOWING OF DEMAND/TRUMP SCRAPS NORTH KOREA SUMMIT SCHEDULED FOR JUNE 12/DEUTSCHE BANK ANNOUNCES DISMAL EARNINGS/AND CONFIRMS LAYOFFS AND STOCK PLUMMETS/SHARYL ATTKISSON HIGHLIGHTS 8 FACTS WHICH PROVE THE FBI/D.O.J’s COUNTER INTELLIGENCE ATTACK ON TRUMP AND CAMPAIGN/MORE SWAMP STORIES

PLEASE FORGIVE ME BUT MY COMPUTER CRASHED AT NOON AND EVEN MY BACKUP WAS KNOCKED OUT.

IT WAS FINALLY RESTORED.  HOWEVER IT TOOK ME A LONG TIME TO PUT THE COMMENTARY TOGETHER SO THERE WILL PROBABLY BE MANY SPELLING MISTAKES AND OTHER TYPOS.. SO PLEASE FORGIVE ME.

 

H.

 

GOLD: $1305.00  UP  $12.40  (COMEX TO COMEX CLOSINGS)

Silver: $16.66 UP  27 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1304.50

silver: $16.67

For comex gold:

MAY/

NUMBER OF NOTICES FILED TODAY FOR MAY CONTRACT:10 NOTICE(S) FOR 1000 OZ.

TOTAL NOTICES SO FAR 729 FOR 72900 OZ (2.267 tonnes)

For silver:

MAY

25 NOTICE(S) FILED TODAY FOR

125,000 OZ/

Total number of notices filed so far this month: 6192 for 30,960,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $7326/OFFER $7426: DOWN $128(morning)

Bitcoin: BID/ $7500/offer $7600: UP $46  (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: 1300.00

NY price  at the same time: 1294.20

PREMIUM TO NY SPOT: $5.80

ss

Second gold fix early this morning: 1301.00

USA gold at the exact same time:1294.30

PREMIUM TO NY SPOT:  $6.80

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 2077 CONTRACTS FROM  198,304  RISING TO 200,325  DESPITE YESTERDAY’S 17 CENT LOSS 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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP :   1247 EFP’S FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE OF 1247 CONTRACTS. WITH THE TRANSFER OF 1247 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 1247 EFP CONTRACTS TRANSLATES INTO 6.235 MILLION OZ  ACCOMPANYING:

1.THE  17 CENT LOSS IN  SILVER PRICE  AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR MAY COMEX DELIVERY. (31.885 MILLION OZ)

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

32,891 CONTRACTS (FOR 18 TRADING DAYS TOTAL 32,891 CONTRACTS) OR 164.455 MILLION OZ: (AVERAGE PER DAY: 1827 CONTRACTS OR 9.136 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  164.455 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 23.49% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:            1,309.78      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 CONSIDERABLE SIZED INCREASE IN COMEX OI SILVER COMEX OF 3324 DESPITE THE 17 CENT LOSS IN SILVER PRICE.  WE HAVE NOW ENTERED THE NEW ACTIVE MONTH OF MAY.   THE CME NOTIFIED US THAT IN FACT WE HAD AN STRONG SIZED EFP ISSUANCE OF 1247 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:  1247 EFP CONTRACTS FOR JULY, AND ZERO FOR ALL OVER MONTHS   FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 1247). TODAY WE GAINED 3324  TOTAL OI CONTRACTS  ON THE TWO EXCHANGES: i.e. 1247 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH AN INCREASE OF 2077  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE  17 CENT LOSS IN PRICE OF SILVER  AND A CLOSING PRICE OF $16.39 WITH RESPECT TO FRIDAY’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 LOOKS LIKE A FAILED BANKER SHORT COVERING EXERCISE!!

In ounces AT THE COMEX, the OI is still represented by OVER 1 BILLION oz i.e. 1.002 MILLION OZ TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED AT THE COMEX: 25 NOTICE(S) FOR 125,000 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: 31.885
  2.  MILLION OZ )
  3. HUGE RECORD OPEN INTEREST IN SILVER  243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018
  4. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  5. 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 FELL BY A CONSIDERABLE SIZED 6811 CONTRACTS DOWN TO 496,131 WITH THE LOSS IN THE GOLD PRICE/YESTERDAY’S TRADING (LOSS OF $2.35) WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF MAY.  THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED AN STRONG SIZED 10,136 CONTRACTS :   JUNE SAW THE ISSUANCE OF 9630 CONTRACTS , MAY SAW THE ISSUANCE OF 0 CONTRACTS  AND AUGUST SAW THE ISSUANCE OF: 506 CONTRACTS WITH ALL OTHER MONTHS ZERO.  The new OI for the gold complex rests at 496,131. 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 STRONG SIZED  OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES: 6811  OI CONTRACTS DECREASED AT THE COMEX AND AN STRONG SIZED 10,136 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.THUS  TOTAL OI GAIN: 3325 CONTRACTS OR 332,500 OZ = 10.34 TONNES. AND ALL OF THIS OCCURRED WITH A TINY GAIN OF $1.05 

YESTERDAY, WE HAD 9,200  EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 172,757 CONTRACTS OR 17,275,700  OZ OR 537.346 TONNES (18 TRADING DAYS AND THUS AVERAGING: 9,598 EFP CONTRACTS PER TRADING DAY OR 959,800 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :    THIS MONTH IN 17 TRADING DAYS IN  TONNES: 537.346 TONNES

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

THUS EFP TRANSFERS REPRESENTS 537.346/2550 x 100% TONNES =  21.07% 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 3,294.97*  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 DECREASE IN OI AT THE COMEX OF 6811 WITH THE $2.35 FALL  IN PRICE // GOLD TRADING YESTERDAY ($2.35 LOSS).  WE ALSO HAD AN STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 10,136 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 10136 EFP CONTRACTS ISSUED, WE HAD A GOOD SIZED NET GAIN OF 3325 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES: 

10136 CONTRACTS MOVE TO LONDON AND 6811 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 10.34 TONNES). ..AND BELIEVE IT OR NOT BUT ALL OF THESE OCCURRED AT THE COMEX WITH A TINY LOSS OF $2.05 IN TRADING!!!. 

we had: 10 notice(s) filed upon for 1000 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 UP  $12.40 / NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 862.04 TONNES

Inventory rests tonight: 852.04 tonnes.

SLV/

WITH SILVER UP 27 CENTS  NO CHANGES IN THE SILVER INVENTORY AT  THE SLV INVENTORY/ 

/INVENTORY RESTS AT 321.003 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 2077 CONTRACTS from 198,248 UP TO 200,325 (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 MAY  (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM), AND 2180 EFP’S FOR JULY AND ALL OTHER MONTHS ZERO. TOTAL EFP ISSUANCE:  1247 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 2077 CONTRACTS TO THE 1247 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  FAIR SIZED GAIN OF 3324 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES:  16.62 MILLION OZ!!! AND THIS OCCURRED WITH A 17 CENT LOSS 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, THE CONSTANT RAIDS, LIKE YESTERDAY ARE NOW BEING CALLED UPON BY OUR BANKER FRIENDS  IN AN ATTEMPT TO SHAKE AS MANY SILVER LEAVES FROM THE SILVER TREE AS POSSIBLE AND JUDGING BY THE RESULTS TO YESTERDAYS ACTION THEY WERE NOT AT ALL SUCCESSFUL.

RESULT: A CONSIDERABLE SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 17 CENT LOSS  IN SILVER PRICING YESTERDAY. BUT WE ALSO HAD ANOTHER STRONG SIZED 1247 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

)THURSDAY MORNING/WEDNESDAY NIGHT: Shanghai closed DOWN 14.31 points or  0.45%   /Hang Sang CLOSED UP 94.77points or 0.31%    / The Nikkei closed DOWN 252.73 POINTS OR 1.11% /Australia’s all ordinaires CLOSED DOWN .06%  /Chinese yuan (ONSHORE) closed UP at 6.3833/Oil DOWN to 71.38 dollars per barrel for WTI and 79.03 for Brent. Stocks in Europe OPENED ALL RED/MIXED.   ONSHORE YUAN CLOSED DOWN AT 6.3833 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3774/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

Trump scraps the summit with North Korea due to the hostility with North Korea

(Fabian/Samuels/the HILL:)

b) REPORT ON JAPAN

3 c CHINA

i)Seems that Trump has a problem with the Republican hawks on China.  He also wants to distance himself from the next guy to leave office Mnuchin

( zerohedge)

ii)

4. EUROPEAN AFFAIRS

i/ ECB minutes

Markets did not like this:  the ECB minutes pronounced a weakening of demand

 

( ECB/zerohedge)

ii)DEUTSCHE BANK/GERMANY/GLOBE

our favourite lemon, and the world’s largest derivative player crashes in price after giving another profit warning and confirmation of that massive layoff we reported on yesterday

( zerohedge)

 

iii)GREECE/TURKEY

seems that Turkey wants a confrontation with Greece: they have violated airspace 56 times every day

( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN

the rhetoric is rising to a feverish pitch as their leader says that Trump will vanish from history due to Pompeo’s 12 requirements

( zerohedge)

ii)RUSSIA/

With half the board of directors resigned from Rusal, it was inevitable that Russia will announce that they will completely ditch the dollar in favour the Euro and that is what they are going to do
( zerohedge)

 

 

 

6 .GLOBAL ISSUES

Trump dashes all hope of a NAFTA deal as he contemplates a 10% auto import tax.

(courtesy zerohedge)

 

7. OIL ISSUES

 

8. EMERGING MARKET

 

ARGENTINA

Interesting: an Argentine bank is trying to use Bitcoin for cross border transactions

 

(courtesy zerohedge)

9. PHYSICAL MARKETS

i)Interesting:  the Marshall Island which have always used the dollar is now going to use their own cryptocurrency
( the Verge,GATA)

ii)Anglo gold is having their troubles as they are laying off workers due to the lower price of gold( Sanderson/London’s Financial times/GATA)

iii)USA launches a criminal probe into bitcoin price manipulation because only 1000 investors own 40% of all bitcoin

(Bloomberg/.GATA)

iv)This stands to reason;  The  LME is also starting to launch a yuan denominated market in both gold and silver metals to compete with Shanghai

( Yiu/South China Morning Post/gata)

v)Louis Cammarosano of Smaulgld talks about the huge increase of gold acquired by Russia.

For the first 3 months of 2018: 71.3 tonnes or 23.76 tonnes per month well above their average

( Cammarosano/Smaulgld)

vi)

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

i)MARKET DATA

With higher interest rates, one would expect home sales to tumble and they did in April

 

( zero hedge)

ii)Amazing! Millenials do not want freight driving jobs.  As much companies must pay higher wages which in turn is causing prices of goods to rise

( zerohedge)

iii)SWAMP STORIES

a)Very important:  Sharyl Attkisson’s 8 points which point to a counter intelligence operation deployed against Trump

 

( Sharyl Attisson/Hill)

b)

Grassley seeks unredacted copies of the genesis of the Russian collusion escapade: he is very interested in this:  Strzok:  “the White House is running this”.  Since we know that Obama had his hands into everything, we are sure that he is part of this scandal

(courtesy zerohedge)

Let us head over to the comex:

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 6811  CONTRACTS DOWN to an OI level 496,131 WITH THE LOSS IN THE PRICE OF GOLD ($2.35 FALL/ 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 AN STRONG SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 10,136 CONTRACTS WERE ISSUED: FOR  JUNE, 9630 CONTRACTS ISSUED,  FOR AUGUST 506 CONTRACTS AND ZERO FOR ALL OTHER MONTHS:  TOTAL 10,160 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: 3325 OI CONTRACTS IN THAT 10,136 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 6811  COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 3325 contracts OR 332,500  OZ OR 10.34 TONNES.

Result: A CONSIDERABLE SIZED DECREASE IN COMEX OPEN INTEREST WITH THE LOSS IN PRICE /YESTERDAY  (ENDING UP WITH AN FALL IN PRICE OF $2.35).  THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 3325 OI CONTRACTS..

We have now entered the non  active contract month of MAY where we LOST 34 contracts FALLING TO 12 contracts. We had 34 notices filed upon yesterday, so we LOST 0 contracts STANDING AT THE COMEX or an additional NIL oz will stand in this non active delivery month of May  

The really big June contract month saw a LOSS of 26,004 contracts DOWN to 148,204 contracts. JULY saw a LOSS of 12 contracts to stand at 355   The next big delivery month after June is August and here the OI ROSE BY 7561 contracts UP to 240,120.

We had 10 notice(s) filed upon today for 1000  oz at the comex

 

ON MAY 23.2017 WE HAD 177,423 CONTRACTS STILL OUTSTANDING.

FOR THE JUNE/2017 CONTRACT INITIALLY 19.95 TONNES STOOD FOR DELIVERY.  AT THE END OF JUNE/2017:  9.176 TONNES STOOD AND THE REST MORPHED INTO LONDON BASED FORWARDS.

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: 506,569  contracts

CONFIRMED COMEX VOL. FOR YESTERDAY: 495,681 contracts

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And now for the wild silver comex results.

Total silver OI ROSE BY A CONSIDERABLE SIZED 2077 CONTRACTS FROM 198,248 UP TO 200,325 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET APRIL 9.2018/ 243,411 CONTRACTS)  DESPITE THE 17 CENT LOSS IN SILVER PRICING/ YESTERDAY. SINCE WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF MAY. WE  WERE  INFORMED THAT WE HAD A GOOD SIZED 1247 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: 1247  ON A NET BASIS WE GAINED 3324  SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 2077 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 1247 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN  ON THE TWO EXCHANGES:   3324  CONTRACTS 

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the  active delivery month of MAY and here the front month ROSE BY 4 contracts RISING TO 220 contracts. We had 22 notices filed upon yesterday so we SURPRISINGLY GAINED 26 contracts or 130,000 additional ounces will  stand for delivery in this  active delivery month of May AS SOMEBODY AGAIN WAS DESPERATE FOR PHYSICAL SILVER ON THIS SIDE OF THE POND..

June saw a LOSS of 3 contracts to stand at 720.  The next big delivery month for silver is July and here the OI GAINED 319 contracts DOWN to 136,153. The next active delivery month after July for silver is September and here the OI ROSE by 1084 contracts UP to 29,548

We had 25 notice(s) filed for 125,00OZ for the MAY 2018 contract for silver

INITIAL standings for MAY/GOLD

MAY 24/2018.

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
10 notice(s)
 1000 OZ
No of oz to be served (notices)
2 contracts
(200 oz)
Total monthly oz gold served (contracts) so far this month
729 notices
72900 OZ
2.267 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz
 TODAY, WE HAVE NO 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 0 adjustment(s)

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  10 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 7 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 (729) x 100 oz or 72900 oz, to which we add the difference between the open interest for the front month of MAY. (12 contracts) minus the number of notices served upon today (10 x 100 oz per contract) equals 73,100 oz, the number of ounces standing in this active month of APRIL (2.2737 tonnes)

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

No of notices served (729 x 100 oz)  + {(12)OI for the front month minus the number of notices served upon today (10 x 100 oz )which equals 73,100 oz standing in this  active delivery month of MAY . THERE ARE 8.923 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.

WE LOST 0 OZ OF GOLD (0 CONTRACTS) STANDING IN THIS NON ACTIVE DELIVERY MONTH OF MAY

total registered or dealer gold:  286,891.437 oz or 8.923 tonnes
total registered and eligible (customer) gold;   9,032,390.443 oz 280.97 tones
THE COMEX IS AGAIN IN STRESS AS ONLY 8.923 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 24/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 1,956.400 oz
CNT
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
 1,060,889.230
oz
BRINKS
SCOTIA
No of oz served today (contracts)
25
CONTRACT(S)
(125,000 OZ)
No of oz to be served (notices)
194 contracts
(970,000 oz)
Total monthly oz silver served (contracts) 6177 contracts

(30,885,000 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 2 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 52.3% of all official comex silver. (140 million/268 million)

ii) Into Brinks: 593,211.860 oz

iii) Into Scotia: 467,677.270 oz

total customer deposits today: 1,060889.130 oz

we had 1 withdrawals from the customer account;

i) out of CNT:  1956.400 oz

total withdrawals;  1956.400 oz

we had 0 adjustments

total dealer silver:  69.156 million

total dealer + customer silver:  270.040 million oz

The total number of notices filed today for the MAY. contract month is represented by 25 contract(s) FOR 125,000 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 6177 x 5,000 oz = 30,885,000 oz to which we add the difference between the open interest for the front month of MAY. (220) and the number of notices served upon today (25 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY contract month: 6177(notices served so far)x 5000 oz + OI for front month of MAY(220) -number of notices served upon today (25)x 5000 oz equals 31,885,000 oz of silver standing for the MAY contract month 

WE GAINED 26 CONTRACTS OR AN ADDITIONAL 130,000 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: 40,677 CONTRACTS

CONFIRMED VOLUME FOR YESTERDAY: 95,681 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF  95,681 CONTRACTS EQUATES TO 478 MILLION OZ  OR 68.3% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42
The previous record was 224,540 contracts with the price at that time of $20.44

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -2.04% (MAY24/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.39% to NAV (MAY 24/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -2.04%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.39%/Central fund of Canada’s is still in jail but being rescued by Sprott.
Sprott WINS hostile 3.1 billion bid to take over Central Fund of Canada

(courtesy Sprott/GATA)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA): NAV FALLS TO -2.22%: NAV 13.45/TRADING 13.17//DISCOUNT 2.22.

END

And now the Gold inventory at the GLD/

MAY 24/WITH GOLD UP 412.40/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 852.04

MAY 22/WITH GOLD UP $1.05/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 852.04 TONNES

MAY 21/WITH GOLD DOWN 50 CENTS/A HUGE CHANGE IN GOLD INVENTORY/A WITHDRAWAL OF 3.24 TONNES FORM GLD INVENTORY/INVENTORY RESTS AT 852.04 TONNES

MAY 18/WITH GOLD UP $1.80/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A DEPOSIT OF 9.11 TONNES INTO GLD INVENTORY/INVENTORY RESTS AT 865.28 TONNES/

GLD WAS ONE MASSIVE FRAUD

May 17/WITH GOLD DOWN $1.75/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 856.17 TONNES

MAY 16./WITH GOLD UP $1.05: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 856.17 TONNES

MAY 15/WITH GOLD DOWN $27.35, THE CROOKS WITHDREW 10 TONNES OF GOLD FROM THE GLD WHICH WAS USED IN THE RAID TODAY/INVENTORY RESTS AT 856.17 TONNES

MAY 14/ WITH GOLD DOWN $2.35: A HUGE DEPOSIT OF 4.68 TONNES OF GOLD INTO THE GLD and then a withdrawal of 1.48 tonnes /INVENTORY RESTS AT 866.17

A net gain of 3.2 tonnes of gold.

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

MAY 24/2018/ Inventory rests tonight at 852.04 tonnes

*IN LAST 387 TRADING DAYS: 78.97 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 337 TRADING DAYS: A NET 77.33 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory/

MAY 24/WITH SILVER UP 27 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.003 MILLION OZ/

MAY 22/WITH SILVER UP 6 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.003 MILLION OZ/

MAY 21/ WITH SILVER UP 5 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.003 MILLION OZ/

MAY 18/WITH SILVER DOWN 5 CENTS  A SMALL CHANGE IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 942,000 OZ/INVENTORY RESTS AT 321.003 MILLION OZ/

May 17/WITH GOLD UP 6 CENTS/A SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 471,000 OZ//INVENTORY RESTS AT 321.945 MILLION OZ/

MAY 16./WITH SILVER UP 10 CENTS/A HUGE DEPOSIT OF 1.883 MILLION OZ OF SILVER INTO THE SLV/INVENTORY RESTS AT 321.474 MILLION OZ

MAY 15/WITH SILVER DOWN 33 CENTS, NO CHANGES AT THE SLV; THE CROOKS COULD NOT BORROW ANY SILVER BECAUSE THERE IS NONE: INVENTORY RESTS AT 319.591 MILLION OZ

MAY 14/WITH SILVER DOWN 10 CENTS/A SMALL CHANGES IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 858,000 FROM THE SLV/INVENTORY RESTS AT 319.591 MILLION OZ/

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

MAY 24/2018:  

Inventory 321.003 million oz

end

6 Month MM GOFO 2.10/ and libor 6 month duration 2.50

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

G0FO+ 2.10%

libor 2.50 FOR 6 MONTHS/

GOLD LENDING RATE: .40%

XXXXXXXX

12 Month MM GOFO
+ 2.75%

LIBOR FOR 12 MONTH DURATION: 2.59

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.17

end

 

Major gold/silver trading /commentaries for THURSDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Gold Is Rare and Valuable – 11 Must See Gold Visualisations

by Jeff Desjardins of Visual Capitalist

Since Ancient times, gold has served a very unique function in society.

Gold is extremely rare, impossible to create out of “thin air”, easily identifiable, malleable, and it does not tarnish. By nature of these properties, gold has been highly valued throughout history for every tiny ounce of weight. That’s why it’s been used by people for centuries as a monetary metal, a symbol of wealth, and a store of value.

Visualizing Gold’s Value and Rarity

With all that value coming from such a small package, sometimes it is hard to put gold’s immense worth into context.

The following 11 images help to capture this about gold, putting things into better perspective.

1. The U.S. median income, as a gold cube, easily fits in the palm of your hand.

U.S. Median Income as a Gold Cube

2. A gold cube worth $1 million, has sides that are 2/3 the length of a typical banknote.

One Million Dollars as a Gold Cube

3. All gold used for electrical connections in the Columbia Space Shuttle would be worth $1.6 million today.

All the Gold in the Columbia Space Shuttle in a Cube

4. Trump’s entire fortune of $3.7 billion as a gold cube would be shorter than Trump himself.

Donald Trump's fortune in a Gold Cube

5. As a gold cube, the entire value of the Bitcoin market would fit in a hallway.

The Bitcoin Market's Value as a Gold Cube

6. The fortune of the richest man on Earth, Bill Gates, would take up a single traffic lane.

Bill Gates' Wealth as a Gold Cube

7. The world’s entire annual production of gold is just a 5.5m sided (18 ft) cube.

Annual Gold Production a Gold Cube

8. Take the 147.3 million oz of gold out of Fort Knox, and it’s only slightly bigger.

All the Gold in Fort Knox Visualized as a Cube

9. All gold held by the Central Banks pales in comparison to the Brandenburg Gate.

The World's Central Banks Holdings as a Gold Cube

10. All gold mined in human history is dwarfed by the Statue of Liberty.

All Gold Mined in Human History Visualized as a Cube

11. To pay off $63 trillion of global sovereign debt, you’d need a gold cube the size of a building.

All Global Debt Visualized as a Gold Cube

Courtesy of Visual Capitalist

 

 

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube above

 

News and Commentary

Gold prices extend gains after dovish Fed stance (Reuters.com)

Nikkei, Kospi slide as automaker stocks tumble on new Trump tariff threat (MarketWatch.com)

Fed indicates it will let inflation run above 2 percent goal for ‘temporary period’ (CNBC.com)

Stock market stages rebound after Fed minutes hint at gradual rate hikes (MarketWatch.com)

U.S.-China trade deal ‘too hard to get done,’ Trump says (Reuters.com)


Source: Bloomberg.com

American Default – U.S. government’s devaluation of the dollar, repudiation of debt, and confiscation of monetary gold in 1933 (Part II) (Bloomberg.com)

Gold miner AngloGold Ashanti to cut South Africa jobs as costs rise (Fin24.com)

Spanish Galleon Laden with L13 billion in Gold Found at Bottom of Caribbean Sea, 300 Years after Sinking (Independent.co.uk)

Marshall Islands replaces U.S. dollar with its own cryptocurrency (TheVerge.com)

Blockchain Will Completely Revolutionize How We Mine Gold and Precious Metals (USFunds.com)

 

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

23 May: USD 1,294.00, GBP 967.91 & EUR 1,102.88 per ounce
22 May: USD 1,293.90, GBP 961.24 & EUR 1,095.29 per ounce
21 May: USD 1,285.85, GBP 959.24 & EUR 1,095.67 per ounce
18 May: USD 1,287.20, GBP 954.20 & EUR 1,091.16 per ounce
17 May: USD 1,288.85, GBP 952.07 & EUR 1,090.50 per ounce
16 May: USD 1,291.75, GBP 958.61 & EUR 1,093.60 per ounce
15 May: USD 1,310.05, GBP 966.42 & EUR 1,098.35 per ounce

Silver Prices (LBMA)

23 May: USD 16.53, GBP 12.38 & EUR 14.11 per ounce
22 May: USD 16.58, GBP 12.32 & EUR 14.04 per ounce
21 May: USD 16.34, GBP 12.19 & EUR 13.91 per ounce
18 May: USD 16.39, GBP 12.16 & EUR 13.92 per ounce
17 May: USD 16.39, GBP 12.14 & EUR 13.90 per ounce
16 May: USD 16.26, GBP 12.07 & EUR 13.79 per ounce
15 May: USD 16.41, GBP 12.12 & EUR 13.77 per ounce


Recent Market Updates

– Gold Looks A Better Investment Than UK Property
– Gold 2048: The Next 30 Years For Gold
– Beware “Snollygosters” and the Empty Promises of Pathological Politicians
– US 10-Year Surges, Emerging Markets Implode…Where Next for Gold?
– Welsh Gold Being Hyped Due To The Royal Wedding?
– Oil Price Is Going To Keep Rising And Inflation Is Coming
– Gold Price Manipulation – A Comprehensive Guide By James Rickards
– EU ‘Nightmare Scenario’ As Popular Anti-Euro and Anti-EU Government Takes Power In Italy
– “Oil price highest in 3 years, gold ready to follow”, by Daniel March
– 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

Mark O’Byrne
END

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
Interesting:  the Marshall Island which have always used the dollar is now going to use their own cryptocurrency
(courtesy the Verge,GATA)

The Marshall Islands replaces U.S. dollar with its own cryptocurrency

 Section: 

By Shannon Liao
The Verge, New York
Wednesday, May 23, 2018

The Marshall Islands has made its own cryptocurrency, doing away with the U.S. dollar. The government has signed the change into law, making the “sovereign” its new official cryptocurrency, as spotted by CNBC Africa cryptocurrency trader host Ran Neuner on Twitter yesterday.

The bill was signed into effect on March 1 but the news is making waves again this week. The Marshall Islands’ population is 53,066, so the change doesn’t affect many, but it is significant for citizens of the islands because banks and credit card companies will need to begin accepting it.

With the recent change, U.S. dollars are still likely to be accepted on the Marshall Islands. The sovereign will just be considered the nation’s official legal tender. …

… For the remainder of the report:

https://www.theverge.com/2018/5/23/17384608/marshall-islands-cryptocurre…

END

Anglo gold is having their troubles as they are laying off workers due to the lower price of gold

(courtesy Sanderson/London’s Financial times/GATA)

Maybe the laid-off South African miners can

become investment bankers

 Section: 

Gold Miner AngloGold Ashanti to Cut South Africam Jobs as Costs Rise

By Henry Sanderson
Financial Times, London
Wednesday, May 23, 2018

AngloGold Ashanti, the world’s third-largest gold miner, said it will cut almost a third of its workforce in South Africa as it struggles with a strengthening rand and a lacklustre gold price.

The miner said the restructuring will involve 2,000 jobs from different levels of its South African workforce, including senior management and its South African executive committee. It employs 8,200 people in the country. …

… For the remainder of the report:

https://www.ft.com/content/08b274e0-5e9d-11e8-ad91-e01af256df68

END

USA launches a criminal probe into bitcoin price manipulation because only 1000 investors own 40% of all bitcoin

(Bloomberg/.GATA)

U.S. launches criminal probe into bitcoin price manipulation

 Section: 

By Matt Robinson and Tom Schoenberg
Bloomberg News
Thursday, May 24, 2018

The Justice Department has opened a criminal probe into whether traders are manipulating the price of bitcoin and other digital currencies, dramatically ratcheting up U.S. scrutiny of red-hot markets that critics say are rife with misconduct, according to four people familiar with the matter.

The investigation is focused on illegal practices that can influence prices — such as spoofing, or flooding the market with fake orders to trick other traders into buying or selling, said the people, who asked not to be identified because the review is private. Federal prosecutors are working with the Commodity Futures Trading Commission, a financial regulator that oversees derivatives tied to bitcoin, the people said. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-05-24/bitcoin-manipulation-…

end

This stands to reason;  The  LME is also starting to launch a yuan denominated market in both gold and silver metals to compete with Shanghai

(courtesy Yiu/South China Morning Post/gata)

London Metal Exchange to launch yuan-denominated futures in sign of Chinese currency’s growing cachet

 Section: 

By Enoch Yiu
South China Morning Post, Hong Kong
Monday, May 21, 2018

The London Metal Exchange is planning to introduce yuan-denominated metal products, according its chief executive, a sign the currency’s status in international finance is on the rise.

“At present investors are trading our products in U.S. dollars. We would definitely like to explore the possibility of launching products denominated in offshore renminbi,” Matthew Chamberlain said in an interview in Hong Kong.

The LME, owned by Hong Kong Exchanges and Clearing (HKEX), already allows traders to use the Chinese currency as collateral. HKEX last July has also introduced yuan-denominated gold futures.

Chamberlain could not say when the new products will be launched but he is confident yuan-denominated products would be popular because the currency has become more widely use in global finance. …

… For the remainder of the report:

http://www.scmp.com/business/banking-finance/article/2146956/london-meta…

END

 

(courtesy zerohedge)

LME Plans To Launch Yuan-Denominated Metals

Futures Markets

In a sign the currency’s status in international finance is on the rise, and just a few short weeks after China unveiled its Yuan-denominated oil futures contract, the CEO of the London Metal Exchange has confirmed that it is planning to introduce yuan-denominated metal products.

As we noted recently, interest in China’s yuan-denominated oil futures contract has soared since inception…the share of yuan contracts in global trading jumped to 12% compared to eight percent in March and 14% of WTI volume, up from 2% in April.

“The contract is thundering into action,” said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore, as quoted by Reuters.

“It makes sense for Iran to begin selling oil under contracts denominated in yuan rather than dollars.”

 

Which could explain why, as The South China Morning Post reports, LME CEO Matthew Chamberlain said in an interview in Hong Kong…

 “At present, investors are trading our products in US dollars. We would definitely like to explore the possibility of launching products denominated in offshore renminbi,”

The LME, owned by Hong Kong Exchanges and Clearing (HKEX), already allows traders to use the Chinese currency as collateral. HKEX last July has also introduced yuan-denominated gold futures.

Chamberlain could not say when the new products will be launched but he is confident yuan-denominated products would be popular because the currency has become more widely use in global finance.

Chinese investors are definitely very active customers at the LME. They are trading through mainland brokers who are members of the LME or western firms.”

“We believe with the increasing number of Chinese trading in our market, there would be more Chinese companies wishing to join the LME.”

Additionally, International Finance reports that Gary Cheung, chairman of the Hong Kong Securities Association, said:

Allowing Chinese manufacturers and investors to trade in yuan instead of the US dollar would reduce their currency risk. If the LME wants to attract more Chinese investors to its market, it makes perfect sense for it to launch the yuan metal contracts.”

Is the tide turning on the USDollar’s reserve status? Remember, nothing lasts forever

Even The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.

“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.”

END

This is interesting:  the dept of justice is launching a probe into Bitcoin for price manipulation.  He are concerned that only 1000 people own 40% of bitcoin and thus easy to manipulate

(courtesy zerohedge)

DOJ Launches Criminal Probe Into Bitcoin Price Manipulation

After months of the SEC and the CFTC pursuing civil cases against individual initial coin offerings that had scammed investors out of millions, it looks like the Department of Justice is now ready to take the government’s crackdown against bitcoin to the next level by chasing down allegations of market manipulation in bitcoin and other popular cryptocurrencies.

According to Bloombergthe DOJ has opened a criminal investigation into whether large bitcoin traders – so-called “whales” – are manipulating the price of bitcoin. Market manipulation has been an increasingly popular topic in crypto world – particularly since prices started their historic surge.

Last summer, the SEC established the legal precedent that all digital tokens should be treated like legitimate securities and required them to be registered with the agency. Meanwhile, the CFTC, which is also working with the DOJ, declared bitcoin a commodity back in 2015, and is responsible for regulating bitcoin futures.

Investigators will likely look to bring charges against traders who engaged in spoofing – flooding the market with fake orders to push a price up or down depending on one’s position. Another illicit tactic that the DOJ is looking into is called wash trading, which is also prevalent in equity and futures markets. Wash traders trade with themselves to create the illusion of volume in an otherwise illiquid market.

The probe is reportedly focusing on bitcoin and ether, according to Bloomberg’s sources.

The investigation, which the people said is in its early stages, is the US’s latest effort to crack down on an industry that was initially embraced by those who were distrustful of banks and government control over monetary policy.

But Bitcoin’s meteoric rise – it surged to almost $20,000 in 2017 after starting the year below $1,000 – has been a lure for mom-and-pop investors. That’s prompted regulators to grow concerned that people are jumping into cryptocurrencies without knowing the risks. For instance, the Securities and Exchange Commission has opened dozens of investigations into initial coin offerings, in which companies sell digital tokens that can be redeemed for goods and services, due to suspicions that many are scams.

Cryptocurrency trading is fragmented on dozens of platforms across the globe, and many aren’t registered with the CFTC or SEC. As a derivatives watchdog, the CFTC doesn’t regulate what’s known as the spot market for digital tokens — which is the trading of actual coins rather than futures linked to them. But if the agency finds fraud in spot markets, it does have authority to impose sanctions.

Given the pressure that the IRS has put on companies like Coinbase to turn over customer information, the DOJ investigation could also ensnare a few exchanges – particularly after the collapse of Mt Gox, the former Tokyo-based exchange has been liquidated after losing hundreds of millions of dollars worth of its customers’ bitcoin.

According to Bloomberg, the limited oversight of the crypto market (the same reason given by the SEC for rejecting a proposed rule change that would’ve cleared the way for an ETF) makes it vulnerable to fraud. And exchanges are increasingly realizing that if manipulation isn’t eliminated, or at least suppressed, that customers could start walking away from what they now believe to be a rigged market… then again, investors have stuck with stocks and bonds through every financial crisis in the history of modern, post-central bank “capitalism.”

The limited oversight of crypto trading makes it a target for crooks, said John Griffin, a University of Texas finance professor who has studied manipulation, including in digital-coin markets. “There’s very little monitoring of manipulative trading, spoofing and wash trading,” Griffin said. “It would be easy to spoof this market.”

Signs are emerging that some crypto exchanges realize the industry’s growth could be constrained if large swaths of investors conclude that trading platforms have a “buyer beware” approach to oversight.

That said, good luck: determining who is manipulating prices and who has inside information would be next to impossible in the anonymous world of bitcoin, which is subject to different regulations in different markets. Japan and the Philippines have already developed their own legal framework for crypto markets.

Studies have shown that 1,000 people own 40% of the bitcoin market. Given this naturally top-heavy concentration, it could be difficult for prosecutors to prove that there’s anything illegal going on when the largest players step up to trade.

Ironically, most of the recent “manipulation” has been to the detriment of bulls: for example, when the Mt. Gox bankruptcy trustee who has earned the nickname “the Tokyo Whale” for his ability to crash prices while unloading massive quantities of bitcoin decides to sell tens of thousands of bitcoins in a single block – crashing the price – is he manipulating the market?

But that doesn’t mean spoofing isn’t happening. For years, the twitter user @bitfinexed (who has since switched his account to private) has documented the work of “spoofy” (who was also profiled here) – a nickname he used for a group of traders who would place, and then cancel, large orders on different exchanges. He has also highlighted other shady behavior, like the Bitfinexed tether token, which is supposed to allow crypto traders to go from cash to coin more quickly. But we imagine – particularly as more institutions become exposed to the bitcoin market – that the Feds will investigate every scrap of potentially nefarious activity in due time.

Meanwhile, we imagine crypto enthusiasts will be less than delighted at this news, with accusations that the US is turning into China set to emerge as crypto doomsayers claim the US government is finally making its move against bitcoin.

END

Louis Cammarosano of Smaulgld talks about the huge increase of gold acquired by Russia.

For the first 3 months of 2018: 71.3 tonnes or 23.76 tonnes per month well above their average

(courtesy Cammarosano/Smaulgld)

 

RUSSIAN GOLD RESERVES TOP 1900 TONS

Russian Central Bank Gold Reserves Rise to 1909.75 Tons in April.

Russian gold reserves are the fifth largest in the world.

Russia added 600,000 ounces of gold (18.6620861 tons) to reserves in April.

Russia added a record 224 tons of gold to reserves in 2017.

Since June 2015, the Central Bank of Russia has added over 628 tons of gold to reserves.

 

Overall Russian reserves rose from $457.995 billion in March to $459.883 billion in April.

Russian holdings of U.S. Treasuries were at $96.1 in March 2018.

Gold reserves worth $81.146 billion constitute 17.64% of overall Russian reserves.

 

Watch the video companion to “Russian Gold Reserves Top 1900 Tons”:

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Russian Gold Reserves

After adding 6,700,000 ounces (208 tonnes) of gold to her reserves in 2015, the Russian Central Bank added 6,400,000 ounces (199 tonnes) in 2016 and another 224 tons (7,202,000 ounces) in 2017.

The Central Bank of Russia ended 2016 with 1838.21 tonnes of gold on their balance sheet
.

Central Bank of Russia added 7.2 Million ounces (approximately 223.945 tonnes) in 2017.

Through April 2018, the Central Bank of Russia has added 2.3 million ounces or approximately 71.54 tons of gold.

The chart below shows the Central Bank of Russia’s Gold Reserves by month with tonnage rounded to the nearest metric ton.

Central Bank of Russia Gold Reserves June 2015 - April 2018

Russian Additions-Subtractions to Gold Reserves 1997 - 2017

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Since 2009, Russia has added over 1,100 tons of gold to its reserves more than China who added about 775 tons during the same time period.

Russian Monthly Gold Purchases June 2014 – April 2018

Russian Monthly Gold Purchases June 2014 -April 2018

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Russia Adding Gold To Reserves At A Faster Pace Than China

From March 2016 to May 2017 China added 45 tonnes of gold to its reserves, while Russia added 246 tonnes, or 447% more.

The People’s Bank of China’s gold reserves as of September 2017 are at the same level as of October 2016. The Central Bank of Russia added 7.6 million ounces (236.39 tons) of gold from October 2016 to September 2017.

Russian and Chinese central bank monthly gold additions November 2015 - November 2016

Roubles For Gold

Increasingly, Russia has been buying up more of their gold mining production, in effect converting roubles into gold.

The Russian Central Bank announced that it would begin buying gold on the Moscow Stock Exchange.

Russian gold additions vs russian gold reserves 2006 - 2017

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Gold Reserves by Country - Top Ten May 20 2018

Overall Russian Reserves

The reserves of the Central Bank of Russian have grown over $89 billion or about 24% since January 2016.

Gold represented about $81.146 billion of Russia’s overall reserves at the end of April 2018, or about 17.6%.

Russian Foreign and Currency reserves January 2016 - April 2018

Russian U.S. Treasury Holdings

Russia’s U.S. Treasury Bond Holdings 2014 – 2017

The Russian Central Bank has increased its US Treasury reserve holdings selling off a good portion of them in the summer of 2015.

As of March 2018, Russia held $96.1 billion in U.S. Treasury Bonds down from $131.8 billion in January 2014 but up from $66.5 billion in April 2015.

Russian Holdings of U.S. Treasuries March 2016 - March 2018

Further reading on Russia’s gold production:



___________________________________________________________________

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

 

i) Chinese yuan vs USA dollar/CLOSED UP TO 6.3833  /shanghai bourse CLOSED DOWN 14.31 POINTS OR 0.45%    / HANG SANG CLOSED UP 94.77  POINTS OR 0.31%
2. Nikkei closed DOWN 252.73 POINTS OR 1.11% /  /USA: YEN FALLS TO 109.65/  

3. Europe stocks OPENED RED/MIXED     /USA dollar index FALLS TO 93.79/Euro RISES TO 1.1718

3b Japan 10 year bond yield: FALLS 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:: 71.38  and Brent: 79.03

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 DOWN for WTI and UP FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.51%/Italian 10 yr bond yield UP to 2.37% /SPAIN 10 YR BOND YIELD UP TO 1.40%

3j Greek 10 year bond yield RISES TO : 4.22?????????????????

3k Gold at $1296.30 silver at:16.52   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 4/100 in roubles/dollar) 61.35

3m oil into the 71 dollar handle for WTI and 79 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 109.65 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 0.9910 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1602 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 +0.560%

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

4. USA 10 year treasury bond at 3.00% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.16%

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

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

Markets Jittery As “Risk Factors Return To The

Fore”: Futures Flat, 10Y Hugs 3%

US equity futures are flat, following a drop in Asian shares and modest rise in European equities as markets digested the late Wednesday news that Trump’s administration started a Section 232 trade probe that may lead to new U.S. tariffs of as much as 25% on new imported vehicles, restarting global trade wars and weighing on Japanese and European automakers.

Trump’s push for tariffs drew pointed responses from Japan and South Korea and ended the temporary calm that came less than a week ago when the U.S. and China declared a truce in their trade dispute. S&P futures were unchanged while the tech sector rallied as Nasdaq futures break through yesterday’s session highs.

Offsetting concerns about Trump’s auto tariffs was a Bloomberg report that China is said to plan to cut tariffs on consumer goods, effective July 1st, on everything from cosmetics to food.

As Bloomberg notes, it has “already been a torrid week across markets so far, with investors forced to navigate escalating geopolitical and trade risks, from Trump’s decision to back away from an agreement with China to North Korea warning of a “nuclear-to-nuclear showdown.” Questions are swirling around the Italian populist government’s economic policies, while Brexit negotiations loom large over British assets. Amid the noise, the impact of somewhat dovish minutes from the Federal Reserve appeared to fade.”

European stocks started flat, dragged lower by automakers in response to Trump’s proposed tariffs, but then advanced after the ECB’s Peter Praet said in Brussels that economic conditions are good despite clouds. Stoxx Europe 600 Index climbed 0.3% to session high, extending earlier gains, with 15 of 19 industry groups up. Shares of technology, chemicals and retail companies gained the most, while European carmakers fell, with the Stoxx 600 Automobiles & Parts Index down 1.9% and underperforming the broader gauge.

Earlier, Trump’s tariff report also dragged the MSCI Asia Pacific Index lower, although modestly so, and led by Japan where the stronger yen was the primary reason for equity weakness. The Nikkei 225 (-1.1%) was the underperformer as currency strength sapped exporter sentiment and with automakers reeling from the prospects of the hefty import duties, while ASX 200 (unch) was pressured by financials amid the ongoing banking royal commission grilling on the sector, although losses in the index were stemmed by strength in consumer stocks. Elsewhere, Shanghai Comp. (-0.5%) and Hang Seng (+0.3%) traded mixed following a net neutral liquidity operation by the PBoC and mixed signals on trade talks from President Trump who stated discussions are moving along nicely, but then suggested a change in the structure may be needed.

The recent return of apparent calm to the market surface belies what is a return of many of the recent risks back to the forefront: “All the risk factors which had been pushed to the back are returning to the fore: uncertainty over U.S.-North Korea talk, U.S.-China trade tension, the Italian political situation as well as concerns about euro-zone growth,” Kumiko Ishikawa, an FX analyst at Sony Financial in Tokyo told Bloomberg.

Peripheral European bonds advanced, including Italy’s, on a La Stampa report that Luigi Zingales and Geminello Alvi are other possible candidates for Italian Finance Minister apart from favored eurosceptic Savona, whose name has spooked Italian bonds in recent days. Treasuries slipped, and after closing just under 3.0% on Wednesday, the yield on 10-year TSYs rose on Thursday and stabilizes around 3% after earlier touching their lowest level in ten days.

In global macro, the dollar weakened against most G-10 peers after Wednesday’s dovish Fed minutes and concerns about trade tensions between the U.S. and Asian economies increased. The BBDXY fell 0.1% to 1168 and the yen strengthened for a third day as Japanese stocks slumped on concern Trump’s probe of U.S. car and truck imports will lead to the introduction of higher auto tariffs: USDJPY fell as much as 0.6% to 109.38, while Japan’s Nikkei 225 dropped 1.1%. Asia was also spooked as the recent diplomatic achievements between Trump and Kim appeared to unravel after North Korea reiterated a threat to cancel a planned June summit with the U.S., further boosting demand for haven assets.

The yen’s haven peer, the Swiss franc saw Thursday’s biggest advance versus the dollar among G-10 peers. In Europe, the EUR rose for the first time in three days as tensions over Italy’s new government eased, while the pound recovered from Wednesday’s five-month low on better- than-expected U.K. retail-sales data. As noted earlier, the relief brought by Turkey’s interest-rate increase at Wednesday’s emergency central bank decision didn’t last long as the lira resumes its nosedive; the USD/TRY rose as much as 3.6%

Commodities were mixed as markets focus on US President Trump’s protectionist policies. WTI crude (-0.7%) and Brent (-0.8%) continue to extend losses alongside the lacklustre risk tone and following the prior day’s surprise DoE crude inventory build. Expectations that OPEC could boost output to offset the supply disruptions caused by Iran and Venezuela remain on traders’ minds. Meanwhile, gold (+0.5%) continues to creep higher as the yellow metal tracks the softer dollar. Elsewhere, Shanghai copper prices snapped a five-day winning streak and closed lower amid Trump stating that any deal with China will “need a different structure”. On the flip side, Chinese steel and iron ore futures closed higher, snapping its 7-day losing streak.

In other overnight news, the Times reported UK PM May is to ask EU for a new Brexit transition to last until 2023 to avoid a hard border. This was then dismissed by dismissed by government sources. Mexico NAFTA negotiator said a skinny NAFTA deal is not an option and that they are not interested in a partial agreement.

As noted above, Italy’s 5 Star is considering Zingales for Finance Minister, some see him as more of a mainstream candidate. Meanwhile, Forza Italia’s Berlusconi says he cannot support a 5 Star/League government

Late on Wednesday, US President Trump said he will know by next week if the summit with North Korea on June 12th will go ahead. In related news, North Korea said it condemns comments from US Vice-President Pence that North Korea may end up like Libya, while a Foreign Ministry official stated they will suggest to North Korea’s leadership to reconsider summit and that summit is entirely up to Washington.

Elsewhere, US Ambassador to Israel said the White House Middle East peace plan could be unveiled within next few months. Also overnight, the US expelled 2 Venezuelan diplomats in which they were ordered to leave in 48 hours.

In central bank news, ECB’s Praet says economic conditions are good despite clouds; ECB’s Vasiliauskas doesn’t disagree with ECB’s rate hike forecasts in six months.  Over in Japan, BoJ board member Sakurai says it’s too early to mull withdrawal of stimulus and now is the time to watch data carefully; he adds all policy options must be looked at when considering modifying policy.

Expected data include jobless claims and home sales. Best Buy, Medtronic, Royal Bank of Canada, and Autodesk are among companies reporting earnings

Market Snapshot

  • S&P 500 futures little changed at 2,732.25
  • STOXX Europe 600 up 0.3% to 393.55
  • MXAP down 0.2% to 173.20
  • MXAPJ up 0.3% to 565.79
  • Nikkei down 1.1% to 22,437.01
  • Topix down 1.2% to 1,775.65
  • Hang Seng Index up 0.3% to 30,760.41
  • Shanghai Composite down 0.5% to 3,154.65
  • Sensex up 0.4% to 34,497.12
  • Australia S&P/ASX 200 up 0.08% to 6,037.08
  • Kospi down 0.2% to 2,466.01
  • German 10Y yield rose 1.2 bps to 0.519%
  • Euro up 0.4% to $1.1740
  • Italian 10Y yield rose 7.2 bps to 2.138%
  • Spanish 10Y yield fell 5.0 bps to 1.394%
  • Brent futures down 0.8% to $79.20/bbl
  • Gold spot up 0.3% to $1,297.42
  • U.S. Dollar Index down 0.3% to 93.70

Top Overnight Headlines from Bloomberg

  • President Donald Trump’s administration has started an investigation into whether car and truck imports threaten national security, a move that could lead to new U.S. tariffs on foreign vehicles. Trump’s push for tariffs drew pointed responses from Japan and South Korea and ended the temporary calm that came less than a week ago when the U.S. and China declared a truce in their trade dispute
  • China is planning to reduce import duties on consumer goods ranging from food to cosmetics, people familiar with the matter said
  • La Stampa: Luigi Zingales and Geminello Alvi are other possible candidates for Italian Finance Minister apart from
  • favored eurosceptic Savona
  • North Korea renewed a threat to cancel its planned summit with Trump next month, hardening its rhetoric by saying it was ready for a “nuclear-to-nuclear showdown” if the U.S. didn’t change its approach to the disarmament talks
  • The U.S. Justice Department has opened a criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies, according to four people familiar with the matter
  • Italian bonds climbed as Giuseppe Conte accepted a mandate as premier-designate and began a search for ministers, bringing some stability to a market rattled by the prospect of a populist government
  • The European Commission unveiled a proposal to facilitate the development of sovereign bond-backed securities, or SBBS, as it seeks to shield Europe’s bond market from future crises in the face of German opposition to any instruments that would mutualize public debt
  • British Prime Minister Theresa May will ask the European Union for a second Brexit transition period to run until 2023, according to the Times, which didn’t say where it got its information from. Brexit red tape will shrink Irish-U.K. trade, Ireland’s central bank says
  • Federal Reserve officials signaled they are set to raise interest rates at their meeting in June, but sent no clear message on whether they’d hike one or two more times this year following that move
  • Turkey’s central bank raised its late liquidity window rate by 300 basis points to 16.5 percent, after an extraordinary meeting of its monetary policy committee on Wednesday. The lira reversed losses after earlier plunging as much as 5.5 percent to a record low

Asian equity markets traded subdued with Trump’s trade policies returning to the forefront of attention after the US President ordered the Commerce Department to consider a probe on auto imports for national security purposes under Section 232, while reports also noted that tariffs of as much as 25% are being considered and is likely an attempt to prod NAFTA counterparts for a better deal. In addition, increasing uncertainty whether the US-North Korea summit will take place added to dampened tone, which in turn has collectively overshadowed a slightly-dovish perceived FOMC minutes. Nikkei 225 (-1.1%) was the underperformer as currency strength sapped exporter sentiment and with automakers reeling from the prospects of the hefty import duties, while ASX 200 (-0.1%) was led lower by financials amid the ongoing banking royal commission grilling on the sector, although broader losses in the index were stemmed by strength in consumer stocks. Elsewhere, Shanghai Comp. (-0.5%) and Hang Seng (+0.3) traded indecisive following a net neutral liquidity operation by the PBoC and mixed signals on trade talks from President Trump who stated discussions are moving along nicely, but then suggested a change in the structure may be needed. Finally, 10yr JGBs were flat despite the underperformance seen in Japanese stocks, as prices took a breather from the prior day’s gains and with weaker demand seen in today’s enhanced-liquidity auction for 10yr-30yr JGBs. China Mofcom said it will encourage companies to import more from US and that it welcomes US sending officials to China, although it reiterated that China has not promised to reduce trade deficit by a certain amount and will unswervingly protect its interests.

Top Asian News

  • HSBC Said to Hire From Deutsche Bank, Citi in Asia Equities Push
  • Top Investment Executive Fired in Rare Chinese #MeToo Flare- Up
  • Singapore Warns Eight Crypto Exchanges as Scrutiny Increases
  • For Asia’s Newest Central Bank Chief, It’s a Trial by Fire
  • Samsonite Euro Bonds Tumble 11 Points After Short Seller Report

European bourses are currently positive (Euro Stoxx 50 +0.4%) with the current outperformer, the IBEX (+0.5%). FTSE 100 (-0.1%) is currently the underperforming bourse amid GBP strength post- Retail Sales. Auto names are being hit by the US import probe, with names such as Daimler (-2.9%), BMW (-2.8%), Volkswagen (-2.8%) and Peugeot (-2.1%) affected negatively by this news. In the M&A scope, the touted Barclays/Standard Chartered merger is stated to have created a rift between Barclays’ chief executive and chairman. Elsewhere, for Smurfit Kappa, a group of shareholders at the co. have asked the company to enter into talks with International Paper. However, the Smurfit board later reaffirmed their position against the deal.

Top European News

  • ECB Says Increased Risk-Taking in Markets Needs Close Attention
  • Silicon Valley-Backed Payment Company Adyen Plans Dutch IPO
  • U.K. Retail Sales Bounce Back in April as Weather Warms Up
  • U.K. Seen Becoming Too Reliant on EU to Keep Its Lights on

FX markets thus far are trading in a more relaxed fashion compared to yesterday’s sizeable moves seen in the early stages of European trade. Most majors are sticking to their recent ranges with the USD back below 94.00 (DXY -0.2%) in the wake of yesterday’s FOMC minutes release which was perceived as a tad dovish and did little to change the current ‘gradual hikes’ backdrop, while it also indicated the Fed would tolerate inflation temporarily above 2% and that there was a range of views on how many rate hikes are required. USD/JPY remains a key focus for the market with the JPY broadly firmer against its major peers (albeit off best levels) with the major pair sitting just above 109.50 after the move to the downside ran out of steam ahead of the 30DMA seen at 109.20. Elsewhere, the EUR has also been a beneficiary from the softer USD with EUR/USD reclaiming the 1.1700 handle after yesterday’s data-inspired rout with traders mindful over today’s ECB minutes release which will look to see if the official account of proceedings corroborates with Draghi’s vague overview of proceedings which left investors unclear as to what the ECB actually discussed at the meeting. Finally, the TRY has pared around half of its gains seen against the USD yesterday after the CBRT held an extraordinary meeting to evaluate recent developments in which it raised the Late Liquidity Window (the lending rate) by 300bps to 16.50%, while it added that it will use strong monetary tightening to support price stability. Given the price action in recent trade, it appears that markets still cast serious doubts over the autonomy of the CBRT and whether attempts to defy Erdogan will be sustainable in the long-term ahead of domestic elections next month.

Commodities are mixed as markets focus on US President Trump’s protectionist policies. WTI crude (-0.7%) and Brent (-0.8%) continue to extend losses alongside the lacklustre risk tone and following the prior day’s surprise DoE crude inventory build. Expectations that OPEC could boost output to offset the supply disruptions caused by Iran and Venezuela remain on traders’ minds. Meanwhile, gold (+0.5%) continues to creep higher as the yellow metal tracks the softer dollar. Elsewhere, Shanghai copper prices snapped a five-day winning streak and closed lower amid Trump stating that any deal with China will “need a different structure”. On the flip side, Chinese steel and iron ore futures closed higher, snapping its 7-day losing streak. Russian Energy Novak says that gradual oil output recovery will be discussed in June.

Looking at the day ahead, we get weekly initial jobless claims, Q1 house price purchase index, March FHFA house price index, April existing home sales and the May Kansas City Fed PMI are all due. Over at the Fed, Dudley will speak in the morning, along with BoE Governor Carney, while in the evening Harker is due to speak again. It’s worth noting that Russia’s acting energy minister is due to discuss the US exit from the Iran accord with Saudi Arabia’s energy minister on Thursday. The ECB will also publish its Financial Stability review report while the ECB’s Praet will speak shortly after.

US Event Calendar

  • 8:30am: Initial Jobless Claims, est. 220,000, prior 222,000; Continuing Claims, est. 1.75m, prior 1.71m
  • 9am: House Price Purchase Index QoQ, est. 0.65%, prior 1.61%; FHFA House Price Index MoM, est. 0.6%, prior 0.6%
  • 9:45am: Bloomberg Consumer Comfort, prior 54.6
  • 10am: Existing Home Sales, est. 5.55m, prior 5.6m; MoM, est. -0.89%, prior 1.1%
  • 11am: Kansas City Fed Manf. Activity, est. 20, prior 26

DB’s Jim Reid concludes the overnight wrap

I don’t know about you but it’s hard to get work done at the moment without the constant ping of an email about GDPR. Companies that I only hear from once every few weeks are suddenly sending me daily emails pleading to opt in before tomorrow’s deadline. The only ones I’ve accepted so far are one that promises to cut my golf handicap and one that might be able to get me Champions League Final flights to Kiev for Saturday. Of the two I’m not sure which is the more realistic.

Markets were as erratic as my golf game yesterday, especially in Europe as the Euro PMIs disappointed, North Korea and Italy continued to focus everyone’s minds and the Turkish lira was on course for its worst day since October 2008 as it fell around -5.5% intra-day and to the lowest level on record. However the day was partly rescued first by an after the European close emergency meeting by the Turkish Central Bank where they raised their “late liquidity  window” rate 300bps to 16.5% and then by the perception of a slightly dovish set of Fed minutes.

The Turkish Lira saw a huge turnaround and was up 1.99% on the day at the end of the US trading session. For background, the Turkish Lira has fallen -20.5% this year and -12.7% in May alone as Erdogan has threatened to take more control of monetary policy if successful in an upcoming election. YTD the Lira is only behind the Argentinian Peso which is down -31.5% in 2018.

Our FX strategists made a good point last night in a blog where they argued that every Fed tightening cycle creates a meaningful crisis somewhere and it backs up a point we made in last year’s “The next financial crisis” The blog last night noted that going back in history, the 2004-6 Fed tightening created the US housing collapse and the catalyst for the global financial crisis. The late 1990s Fed stop start tightening cycle included the Asia crisis, LTCM and Russia collapse, and when tightening resumed, the pop of the equity bubble. The early 1993-4 tightening phase included the bond market turmoil and the Mexican crisis. The late 1980s tightening ushered along the S&L crisis. Greenspan’s first fumbled tightening in 1987 helped trigger Black Monday, before the Fed eased and ‘the Greenspan put’ took off in earnest. The early 80s included the LDC/Latam debt crisis and Conti Illinois collapse. The 1970s stagflation tightening was when the Fed was behind ‘the curve’ and where inflation masked a prolonged decline in real asset prices.

A reminder that our note from last September suggested that financial crises have been a very regular feature of the post-Bretton Woods system (1971-) and that based on history we’d be stunned if we didn’t have another one in some form or another by around the end of this decade/turn of the next one. The most likely catalyst was the “great unwind” of loose monetary policy/QE around the world at a time of still record debt levels. We would stand by this and I suppose the newsflow and events this year so far makes me more confident of this even if we’re still unsure on the timing or the epicentre.

Back to yesterday, the slightly dovish Fed minutes seemed to help the S&P 500 to reversed earlier losses to close in  positive territory for the day (+0.32%). Our US economists believes the minutes indicated that a further rate hike should be expected in June but that the Committee is not in a rush to clearly signal a more hawkish trajectory at this juncture. In the details, the minutes noted that “most participants judged that….it would likely soon be appropriate…to take another step in removing policy accommodation”. On balance, the minutes didn’t seemed to be too concerned about an overheating economy and inflation over shooting. It noted that a temporary period of inflation “modestly above 2% would be consistent with the committee’s symmetric inflation objective…” and that “it was premature to conclude that inflation would remain at levels around 2%….” On the labour market, the minutes noted the Employment cost index for 1Q indicated the strength in the labour market was “…showing through to a gradual pickup in wage increases, although the signal from other wage measures was less clear.” while many participants commented that overall wage pressures were still moderate or were strong only in industries and occupations…” Overall, given our economists’ expectations for the ongoing tightening of the labour market, they still expect three more hikes this year.

This morning in Asia, markets are broadly lower with the Nikkei (-1.23%), Kospi (-0.27%) and Shanghai Comp. (-0.04%) all down while the Hang Seng is rebounding modestly (+0.07%). In the US, President Trump has ordered the Commerce Department to investigate whether car and truck imports threaten national security, to which Bloomberg cited unnamed sources that suggest these investigations under Section 232 could lead to higher tariffs. Back in early May, Trump told US car markers he was planning to impose tariffs of 20-25% on some imported vehicles. Elsewhere, the Secretary of State Pompeo seemed to be easing his demands on North Korea, now calling for the regime to take “credible steps” towards denuclearisation rather than give up its weapons program immediately.

Now recapping other markets performance from yesterday. European equities were all lower, weighed down by softer PMIs, Italian politics and rising US / China trade tensions. Across the region, the DAX (-1.47%), FTSE (-1.13%) and  Stoxx 600 (-1.10%) were all down, although the latter is still up 0.9% on an YTD basis.

Elsewhere, the VStoxx jumped 16.0% to 15.06 and has been back above the VIX (12.58) for three out of the last four trading sessions after a few months of mostly being below. Despite the softer European session, US bourses turned around to close modestly higher after the FOMC minutes (S&P +0.32%; Dow +0.21%; Nasdaq +0.64%). In the retail space, Target dropped -5.7% post poor results, but Tiffany & Co. (+23.3%) and Ralph Lauren (+14.3%) rallied post a beat on earnings.

Following on, government bonds rallied following the dovish FOMC minutes and softer than expected PMIs. The yield on UST 10y fell below 3% (-6.7bp to 2.994%), while Bunds (-5.3bp) and Gilts (-8.4bp) also declined, with the latter’s outperformance partly due to a softer than expected core CPI print for April.

Meanwhile, Italian BTPs resumed their slide (10y +7.2bp) as the Italian President Mattarella named law professor Giuseppe Conte as the new PM, who will now start the process of forming a new government. Mr Conte said he “is aware of the need to confirm Italy’s position in Europe” but added that his government will based on the accord agreed by the 5SM and League Party. Elsewhere, WTI oil nudged down -0.50% to $71.84/bbl while precious metals were little changed.

Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the flash May PMIs were above market with the composite PMI at 55.7 (vs. 54.9 previous) while the services (55.7 vs. 55  expected) and manufacturing (56.6 vs. 56.5 expected) prints were also above expectations, with the latter at the highest in almost four years. Elsewhere, April new home sales fell -1.5% mom to 662k (vs. 680k expected). The number of properties for sale rose 12.4% yoy and the median sales price was little changed yoy. In Europe, the May flash PMIs were broadly below expectations and helping to cause the market weakness in the European session. The Euro area’s Composite PMI was 1pt below consensus at 54.1 (vs. 55.1) and the lowest reading in 18 months, while the services (53.9 vs. 54.7 expected) and manufacturing (55.5 vs. 56.1 expected) prints also disappointed. Across the region, all three of Germany’s PMIs were below expectations while France’s manufacturing PMI was modestly above. For composite PMIs, Germany was 53.1 (vs. 54.6 expected) while France was 54.5 (vs. 56.8 expected). DB’s Peter Sidorov noted the data point to a softening in external demand but beyond that, the mixed details do not offer much clarity and consistency in terms of the direction or drivers of the cycle after the Q1 surprise. Growth remains above trend but the murky data will make the ECB’s approaching QE decision more complex.

Elsewhere, the Euro zone’s May consumer confidence was below market but remains relatively sound at 0.2 (vs. 0.5 expected) while France’s 1Q unemployment rate was 8.9% (vs. 8.5% expected). In the UK, the April CPI was 0.1ppt lower than expectations with headline CPI at 0.4% mom (vs. 0.5% expected) and core CPI down to a 13-month low  of 2.1% yoy (vs 2.2% expected). The weakness was partly due to the timing of Easter and lower inflation for airfares. Meanwhile, RPI was in line at 3.4% yoy while core PPI was above at 2.4% yoy (vs 2.1% expected).

Looking at the day ahead, data due includes the final Q1 GDP revisions in Germany along with June consumer confidence, May confidence indicators in France and April retail sales data in the UK. In the US weekly initial jobless  claims, Q1 house price purchase index, March FHFA house price index, April existing home sales and the May Kansas City Fed PMI are all due. Over at the Fed, Dudley will speak in the morning, along with BoE Governor Carney, while in the evening Harker is due to speak again. It’s worth noting that Russia’s acting energy minister is due to discuss the US exit from the Iran accord with Saudi Arabia’s energy minister on Thursday. The ECB will also publish its Financial Stability review report while the ECB’s Praet will speak shortly after

3. ASIAN AFFAIRS

i)THURSDAY MORNING/WEDNESDAY NIGHT: Shanghai closed DOWN 14.31 points or  0.45%   /Hang Sang CLOSED UP 94.77points or 0.31%    / The Nikkei closed DOWN 252.73 POINTS OR 1.11% /Australia’s all ordinaires CLOSED DOWN .06%  /Chinese yuan (ONSHORE) closed UP at 6.3833/Oil DOWN to 71.38 dollars per barrel for WTI and 79.03 for Brent. Stocks in Europe OPENED ALL RED/MIXED.   ONSHORE YUAN CLOSED DOWN AT 6.3833 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3774/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

 

Trump scraps the summit with North Korea due to the hostility with North Korea

(Fabian/Samuels/the HILL:)

Trump scraps summit with North Korea

President Trump on Thursday canceled his nuclear summit with North Korean leader Kim Jong Un, citing Kim’s “tremendous anger and open hostility” toward the United States.

“I feel it is inappropriate, at this time, to have this long-planned meeting,” Trump wrote in a letter to Kim that was released by the White House.

Speaking later at the White House, Trump said his “maximum pressure campaign” against North Korea would continue and threatened a military response if Kim resumes nuclear activity.

But he also left the door open for the talks to take place if Kim takes “constructive” steps toward peace.

“It’s possible that the existing summit could take place, or a summit at some later date,” Trump said during a bill signing ceremony.

The two were scheduled to meet June 12 in Singapore in what would have been the first meeting between a sitting U.S. president and a North Korean leader.

The sudden cancellation is a major setback for Trump, who made nuclear diplomacy with Pyongyang his top foreign policy goal. The president was eager to have the meeting, openly musing about how brokering an agreement with Kim could earn him a Nobel Peace Prize.

“I believe this is a tremendous setback for North Korea and, indeed, a setback for the world,” Trump said.

Trump agreed to sit down with Kim in March, following months of hurling insults and threats at the North Korean leader.

But tensions between the U.S. and North Korea rapidly escalated over the past week as both sides wrangled for leverage ahead of the talks, developments that foreshadowed the cancellation.

Trump publicly expressed doubt about whether the summit would take place after North Korea threatened to pull out if the U.S. continued to demand full denuclearization.

On Wednesday, a top North Korean official launched another verbal fusillade at the Trump administration, calling Vice President Pence a “political dummy” and saying his government is just as ready to inflict an “appalling tragedy” on the U.S. as it is to talk.

The president returned the favor in his letter, writing that while Kim likes to “talk about” his nuclear capabilities, “ours are so massive and so powerful that I pray to God they will never have to be used.”

Republicans in Congress applauded the president’s decision, saying he had to nix the meeting over North Korea’s increasingly aggressive rhetoric.

“Kim Jong Un is a murderous despot and habitual liar. The president made the right call to cancel this summit,” said Sen. Ben Sasse (R-Neb.), who added that North Korea “should know that half-measures and spin about its nuclear program” will not result in a deal.

Trump, however, did not close the door to sitting down with the reclusive North Korean leader in the future.

“Some day, I look very much forward to meeting you,” he wrote. “If you change your mind having to do with this most important summit, please do not hesitate to call me or write.”

Despite the mounting tensions, Trump’s decision appeared sudden. U.S. officials were expected to meet over the weekend with North Korean representatives to plot logistics for the Singapore talks.

But Secretary of State Mike Pompeo said Thursday that Pyongyang has been unresponsive to Washington’s efforts to prepare for the meeting.

“We have received no response to our inquiries from them,” he said during testimony before the Senate Foreign Relations Committee, adding “I don’t believe in that sense that we’re in a position to believe that there could be a successful outcome.”

Trump’s decision to agree to talks with Kim was similarly unexpected. He immediately accepted North Korea’s offer after it was presented by South Korean officials during a March 8 meeting at the White House, even before consulting with some members of his national security team.

Trump’s announcement on Thursday appeared to catch South Korea by surprise. President Moon Jae-in urged Trump and Kim to recommit to direct talks after convening an emergency meeting with his national-security team.

“Denuclearization of the Korean Peninsula and the establishment of permanent peace are historic tasks that can neither be abandoned nor delayed,” Moon said in the meeting, according to South Korea’s Yonhap News Agency.

Trump said he informed South Korea and Japan of his decision, but it is unclear if that happened before it was made public.

The last couple months of diplomacy with North Korea did produce some wins for the U.S.

Just hours before Trump’s announcement, Kim made good on his promise to demolish a nuclear test site, a goodwill move ahead of the talks. The U.S. also secured another concession from North Korea earlier this month when it released three American detainees.

But some foreign policy experts had warned that striking a nuclear deal with Kim Jong Un would be next to impossible.

“The summit was bound to fail as @realDonaldTrump admin badly overestimated what NK would agree to; the issue was/is US willingness to accept an outcome short of total denuclearization,” tweeted Council on Foreign Relations President Richard Haas. “All or nothing foreign policy w NK, Iran, China trade risks producing nothing or conflict.”

Harry Kazianis, director of defense studies at the Center for the National Interest, said the United States and North Korea were simply too far apart on what they wanted from the summit.

Pyongyang, he said, wanted to follow the “classic Kim regime model” of setting an aspirational goal in exchange for economic relief — something Trump would never agree to.

“It was night and day. There was no way to bridge that within weeks,” Kazianis said.

As for what comes next, he said, the next two to three days will be key in seeing whether talks can quietly continue through back channels or if tensions ratchet up to where they were last year.

“If they lob a rhetorical bomb overnight, that’s a sign that we’re going back to the brink and North Korea is going to start testing missiles again,” he said.

Robert Gallucci, the chief U.S. negotiator during the 1994 North Korean nuclear crisis, said he does not read Trump’s letter as a negotiating tactic to get Kim to give into his demands at any rescheduled summit. Rather, he said, it appears the Trump administration was coming to the realization that it “did not to like smell of all of this.”

And while Pyongyang’s recent statements may have been more about posturing than actually cancelling the summit, Gallucci said, it is likely not upset at the outcome.

“I don’t think they were afraid of that happening or they wouldn’t have said what they said about the vice president,” he said.

He added that he thinks it would be “implausible” for back channel talks to happen now.

“The world is not safer the day after the decision is made not to meet,” he said. “I did not enjoy 2017 as a North Korea-U.S. year, and I’m afraid we’re back in the soup now.”

Rebecca Kheel contributed. 

Updated at 12:41 p.m.

3 b JAPAN AFFAIRS

end

c) REPORT ON CHINA/HONG KONG

 

Seems that Trump has a problem with the Republican hawks on China.  He also wants to distance himself from the next guy to leave office Mnuchin

(courtesy zerohedge)

Trump Distances Himself From Mnuchin After

Trade Hawks Knock China Deal

After praising a weekend Trade deal with China earlier in the week, President Trump has now distanced himself from the “framework” between the two countries which has been widely panned by China hawks. Treasury Secretary Steve Mnuchin has taken heavy criticism over a tarriff “truce” with Beijing, as well as an agreement which would reverse a recent ban on companies selling to Chinese telecom giant ZTE Corp.

“Our Trade Deal with China is moving along nicely, but in the end we will probably have to use a different structure in that this will be too hard to get done and to verify results after completion,” Trump said in a Wednesday tweet.

Trump’s about-face may not bode well for Mnuchin’s tenure in the administration.

After boasting of the deal’s benefits for farmers in tweets on Monday, Trump first indicated on Tuesday he was having second thoughts as some of his loyalists publicly criticized the agreement. Asked if he was pleased with the direction of his administration’s negotiations with China, Trump told reporters “no, not really.” He later added, “they’re a start.” –Bloomberg

Following last weekend’s agreement, the Trump administration said it would back down from prior threats of new tariffs against China after the two nations agreed to “substantially” downsize the U.S. merchandise trade deficit, which hit a record $375 billion last year. In response, Beijing promised to “significantly” increase US purchases going forward – albeit with no dollar figure attached. The White House, however, gave assurances that China would cave to its demand for a $200 billion annual trade-gap reduction.

On Tuesday, China announced that it would slash its auto tariff, while the administration said it had agreed on the “broad outline” of a deal that would save imperiled Chinese telecom giant ZTE Corp., according to the Wall Street Journal

The US has promised to remove a ban on US companies selling components to ZTE – imposed last month, purportedly because ZTE failed to fire certain employees and cut bonuses according to the terms of a settlement after it was caught selling US goods to Iran.

While Mnuchin insisted Tuesday morning that there was no “quid pro quo” involved in the ZTE aspect of the negotiations, President Trump began to distance from the talks – stating on Wednesday that the US and China have yet to reach a deal on trade, and adding that he is “not pleased” with how the talks are progressingWhile the talks with China were “a start”, Trump said he’s not yet satisfied.

Trump’s about-face on ZTE adds to his allies’ concerns. The Commerce Department announced April 16 that the company would be cut off from its U.S. suppliers, crippling its business, for what Commerce Secretary Wilbur Ross called “egregious” violations of U.S. sanctions. But Trump said on Tuesday that he had agreed to re-examine the matter as a personal favor to Chinese President Xi Jinping. –Bloomberg

Trump now says that the U.S. may instead require that ZTE clean house – appointing a new board of directors and pay a “very large fine” potentially as high as $1.3 billion.

Fourteen Republican senators including the party’s second-ranking leader, John Cornyn of Texas, joined 13 Democratic and independent senators in sending Trump a public letter Tuesday urging him not to soften ZTE’s punishment. They called ZTE’s sanction violations “serial and pre-meditated.”

Mnuchin Slammed

Former White House chief strategist Steve Bannon took Mnuchin to task on Monday over the weekend deal, telling Bloomberg that Trump “changed the dynamic regarding China, but in one weekend Secretary Mnuchin has given it away,‘ adding that Mnuchin “misses the central point” of the economic competition between the two nations.

“They’re in a trade war with us and it hasn’t stopped,” Bannon said. “Mnuchin has completely misread the geopolitical, military, and historical precedence and what President Trump had done was finally put the Chinese on their back heels.”

Marco Rubio (R-FL) also slammed the weekend deal, tweeting on Tuesday “Sadly #China is out-negotiating the administration & winning the trade talks right now. They have avoided tariffs & got a #ZTE deal without giving up anything meaningful in return by using N.Korea talks & agriculture issues as leverage.”

Senator Steve Daines (R-MT) also criticized Mnuchin during a hearing at the Capitol on Tuesday, stating:

It’s very important as we engage in these negotiations, we can’t just see this as a standard trade dispute with China,” Daines told the Treasury secretary. “We must keep in mind China’s long-term strategic approach and their long-term goal of becoming the world’s superpower, militarily and economically.”

Doesn’t make sense to have the Treasury secretary negotiating trade policy — that’s the USTR’s job,” said former Nucor Corp. CEO Dan DiMicco told Bloomberg, which notes that DiMicco was an adviser to Trump’s campaign and presidential transition who now sits on an advisory committee for U.S. Trade Representative Robert Lighthizer.

“We supported Trump in the elections, support a lot of the things he stands for, and we need him to come through on trade like he promised,” DiMicco said.

As Bloomberg notes, “Mnuchin and White House economic adviser Larry Kudlow are free-trade supporters regarded as more conciliatory toward Beijing than Lighthizer and White House trade adviser Peter Navarro, the administration’s fiercest China hawk. Mnuchin said in an interview on CNBC Monday that he speaks with Lighthizer ten times a day and that he and the trade representative and Ross are “unified” on trade strategy.”

end

4. EUROPEAN AFFAIRS

 

Markets did not like this:  the ECB minutes pronounced a weakening of demand

 

(courtesy ECB/zerohedge)

ECB Minutes: “Pronounced Weakening Of

Demand Can Not Be Ruled Out” As

“Uncertainty” Rises

Hardly stating anything new to those who have seen the recent collapse in the Citigroup Euro Econ Surprise Index, which has recently plunged tumbled to the lowest level observed since the 2011 sovereign debt crisis…

… this morning the ECB the released minutes from its 25-26 Governing Council meeting, in which “it was widely cautioned that the uncertainty around the outlook had increased since the March monetary policy meeting” and that “a more pronounced weakening of demand, notably related to external factors, could therefore not be ruled out.

Confirming the cautious tone from the ECB’s April meeting, the key highlights from the minutes confirm that the ECB is becoming increasingly sour on the outlook, with the threat of protectionism once again receiving the highest billing: “in particular, risks related to global factors, including the threat of increased protectionism, had become more prominent and warranted monitoring with regard to their implications for the medium-term outlook for growth and prices.”

The ECB also warned of violent FX moves: “It was also remarked that turbulent trade relations had the potential to give rise to disorderly movements in exchange rates and to heightened volatility in financial markets”

For now the outlook remains the same but that cah change: while “it was underlined that the signs of a moderation in economic growth at the start of the year did not change the picture regarding the underlying pace of expansion,” officials agreed that “data releases ahead of the June monetary policy meeting would need to be carefully scrutinized to better understand the sources of the recent moderation in growth”

The good news – stronger wages: “Some comfort was drawn from encouraging signs of a strengthening in nominal wage growth and the continued anchoring of long-term inflation expectations”

But not strong enough, as overall inflation remains weak: “While a view was expressed that the Governing Council’s criteria for a sustained adjustment in the path of inflation could be considered as close to being satisfied over a medium-term horizon, there was broad agreement that the evidence remained insufficient at the current stage.”

* * *

Whether because most traders are already out for the holiday weekend, or “just because”, there was hardly any market reaction to the minutes: as RanSquawk notes, at the post-meeting press conference, President Draghi said that the ECB discussed little directly on monetary policy “per se”, and that seems to be reflected in the minutes, and accordingly, the market reaction.

Source: ECB

END

 

DEUTSCHE BANK/GERMANY/GLOBE

our favourite lemon, and the world’s largest derivative player crashes in price after giving another profit warning and confirmation of that massive layoff we reported on yesterday

(courtesy zerohedge)

Deutsche Bank Crashes After Profit Warning,

Confirmation Of Massive Layoffs

One day after the WSJ reported that the biggest German bank is set to “decimate” its workforce, firing 10,000 workers or one in ten, this morning Deutsche Bank confirmed plans to cut thousands of jobs as part of new CEO Christian Sewing’s restructuring and cost-cutting effort. The German bank said its headcount would fall “well below” 90,000, from just over 97,000. But the biggest gut punch to employee morale is that the bank would reduce headcount in its equities sales and trading business by about 25%.

The announcement came as Deutsche Bank was set for tough questions from investors at its annual general meeting in Frankfurt, including a vote of no confidence for Chairman Paul Achleitner who defended the supervisory board’s decision last month to replace former Chief Executive John Cryan as “unavoidable.” As the WSJ reports, the new CEO, Christian Sewing, laid out strategic priorities for the lender, telling investors that the lender remains committed to investment banking.

Paul Achleitner
 
“This time is different,” Sewing said, referring to the bank’s years-long habit of missing cost-control targets although markets naturally seem skeptical. The bank had already cut 600 employees at the investment bank in the past seven weeks.

And in what Wall Street took as a tacit profit warning, the CEO warned that second-quarter results would reflect a “revenue environment [that] remains challenging,” particularly in the investment bank. He didn’t provide figures. The news sent DBK stock plunging 3.5%, just above €10, and rapidly approaching the all time lows hit during the bank’s existential crisis days of September 2016.

Restructuring and severance charges will also hurt full-year results Sewing said, warning that 2018 results would be hit by restructuring charges of up to €800 million ($935.9 million). Sewing, like Mr. Cryan before him, also said Deutsche Bank aims to find itself in fewer media headlines, another goal it has missed. “It won’t do us any harm to be a bit more boring,” Sewing told investors.

Thursday’s announcement of job cuts follow months of thorny debate over how fast and deep job losses should be at the beleaguered bank, the WSJ reported Wednesday. The process has divided senior executives and left investors unconvinced. The bank’s shares have fallen by nearly a third this year to their lowest level since a crisis of confidence hit the lender in late 2016.

At the investor meeting, the bank’s supervisory board and senior executives are facing probing questions about last month’s chief executive handoff and the tough choices the lender has to make. They’re also confronting a proposal to break up the company, although with nearly €50 trillion gross notional in derivatives on the bank’s books that may be next to impossible absent an ECB backstop.

The meeting follows a messy year for Deutsche Bank. The April 8 ouster of former CEO Mr. Cryan in the middle of his management contract appeared botched to some clients and investors, and shook employees launching an exodus of some the bank’s most prominent bankers

end

 

GREECE/TURKEY

 

seems that Turkey wants a confrontation with Greece: they have violated airspace 56 times every day

 

(courtesy zerohedge)

Turkish Fighter Jets Violate Greek Airspace 56

Times In A Single Day

In the last three months, tensions between two NATO member states have escalated dramatically – Turkey has threatened to invade Greek islandsGreece has responded, and Greeks now see Turkey as the greatest threat to their existence.

And while Turkish President Erdogan was busy talking up his currency and begging his people not to sell Lira for dollars, his air force was once again running interference with Greece.

As GreekReporter.com reports,Turkish fighter jets violated Greek airspace over the Aegean 56 times, making such incidents an almost daily phenomenon.

According to the Greek Ministry of National Defense, the air force recorded 56 violations of national airspace in the Northeast, Central and Southeastern Aegean.

Eleven Turkish aircraft – two F-16s that were flying in formation, two CN-235s and seven helicopters – also committed 14 air-traffic law violations in the Athens Flight Information Region.

According to the General Staff, in all cases, the Turkish aircraft were identified and intercepted by Greek fighter planes in line with international rules of engagement.

Two Turkish aircraft were armed.

However, despite all this provocation, the rapidly souring tensions between Greece and Turkey are “not an issue for NATO,” the General Secretary of the North Atlantic Alliance, Jens Stoltenberg in an interview with Turkish news agency Anadolu.

With friends like this – who needs enemies?

END

 

8. EMERGING MARKET

ARGENTINA

Interesting: an Argentine bank is trying to use Bitcoin for cross border transactions

 

(courtesy zerohedge)

Argentine Bank To Use Bitcoin For Cross-Border

Transactions

May has not been a good month for Emerging Markets in general, but perhaps none (other than Turkey now) were hit harder than Argentina which raised rates to an astonishing 40% in an effort to defend massive capital flight and the crash in its currency as IMF bailout hope is all that remains – aside from Franklin Templeton’s global bond fund.

But as the BCRA and Argentine government desperately shore up confidence in their collapsing currency, NewsBTC.com’s Tim Copeland reports that Argentine bank, Banco Masventas (BMV), has revealed a partnership with Bitex to allow customers to make cross-border payments in Bitcoin.

They aim to utilise Bitcoin as a low-fee cryptocurrency which can be transferred across borders and easily exchanged for fiat currencies.

image courtesy of CoinTelegraph

Bank Moves from SWIFT to Bitcoin

BMV said in a statement:

“The service allows you to reduce costs associated with international transfers as there are no international banks as intermediaries. The logistics solution allows for a reduction in the time it takes to send or receive transfers up to a maximum of 24 hours. Bitex has a wide network of partners that enables international transfers to more than 50 countries.”

Bitcoin enables transfers to be made without using third parties and does not rely on any trusted parties. Instead, it uses a network of nodes that validate transactions and uses incentives to ensure that the network operates accurately. It also uses cryptography, such as hash functions, to ensure that only the person who holds their Bitcoin can spend it as well as providing a public ledger to ensure accountability.

Bitex is a blockchain-based financial services provider for both individuals and institutions. They help to create logistics solutions which allow for payments to be made between multiple countries. Bitex are self-regulated, but follow compliance and KYC rules. They have also hired Deloitteservices to fulfil audits on the company’s operations and holding of funds.

U.K. bank Santander has continued their move into the blockchain ecosystem by announcing their new app One Pay FX which uses Ripple technology in April. The app was launched in Spain, the U.K., Brazil, and Poland and is designed to make cross-border payments in a matter of minutes. It runs on xCurrent, a payment solution provided by Ripple Net but does not exclusively use XRP which is associated with Ripple. XRP is used by xRapid, another solution, and has been successfully trialled by Mercury FX.

Mercury-fx Ltd@mercury_fx_ltd

In Q1, along with other xRapid pilots customers, we have proved that can lower liquidity costs & increase payment speed and transparency using . We are looking forward to continued successful testing and going into production.https://ripple.com/insights/q1-2018-xrp-markets-report/ 

Q1 2018 XRP Markets Report | Ripple

To continue to provide transparency to the XRP ecosystem globally, we share regular updates on the state of the market, including quarterly sales, relevant XRP-related announcements and commentary on…

ripple.com

Ripple have targeted banks and, specifically, cross-border payment providers and argue that XRP can save costs and deliver faster transactions than using SWIFT or Bitcoin. This move by BMV shows a preference for the number one ranked cryptocurrency by market cap instead of XRP which is aimed at being used by banks.

Should Bitcoin Be Used by Banks?

Many token holders will welcome real-world integration as an increase in use of a coin usually leads to an increase in price. However, Bitcoin was initially set up in a libertarian environment which was hostile to banks. In fact, the Bitcoin’s genesis block contains an extract from the Times which references the 2008 financial crisis. Bitcoin is also pseudonymous which makes it harder for governments to keep track of payments and users.

In this partnership, we have an example of a low-fee cryptocurrency being used by a bank which is then charging 3% plus VAT for the service. This means that the bank is profiting from the low fees that Bitcoin offers. On the other hand, BMV did suggest it has passed some of the savings on to the customer. Instead of going through a bank, users could set up their own wallets and send transactions without using a bank, but novices may find this risky as mistakes can happen.

*  *  *

The question is – will this enable BMV customers to get around any future capital controls enforced by the government should this currency collapse turn even more crisis-er?

 

 

 

 

end

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

Euro/USA 1.1718 UP .0009/ 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 GREEN

USA/JAPAN YEN 109.65   DOWN   0.224  (Abe’s new negative interest rate (NIRP), a total DISASTER/SIGNALS U TURN WITH INCREASED NEGATIVITY IN NIRP/JAPAN OUT OF WEAPONS TO FIGHT ECONOMIC DISASTER/

GBP/USA 1.3400 UP  0.0033  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2864 UP .0028 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS THURSDAY morning in Europe, the Euro ROSE by 9 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1718; / Last night Shanghai composite CLOSED DOWN 14.31 POINTS OR 0.45%  /   Hang Sang CLOSED UP 94.77 POINTS OR 0.31% /AUSTRALIA CLOSED DOWN .06% / EUROPEAN BOURSES  ALL RED/MIXED

The NIKKEI: this THURSDAY morning CLOSED DOWN 252.73 OR 1.11%

Trading from Europe and Asia

1/EUROPE OPENED ALL RED/MIXED

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 94.77 POINTS OR 0.31%   / SHANGHAI CLOSED DOWN 14.31 POINTS OR 0.45%  /

Australia BOURSE CLOSED DOWN .06%

Nikkei (Japan) CLOSED DOWN 252.73 POINTS OR 1.11%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1296.30

silver:$16.52

Early THURSDAY morning USA 10 year bond yield: 3.00% !!! UP 12 IN POINTS from WEDNESDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/ 

The 30 yr bond yield 3.16 UP 1  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early  TUESDAY morning: 93.79 DOWN 22  CENT(S) from YESTERDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.90% DOWN 6  in basis point(s) yield from WEDNESDAY/

JAPANESE BOND YIELD: +.0.5%  UP 4/10   in basis points yield from WEDNESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.39% DOWN 5  IN basis point yield from WEDNESDAY/

ITALIAN 10 YR BOND YIELD: 2.40  UP 0  POINTS in basis point yield from WEDNESDAY/

the Italian 10 yr bond yield is trading 99 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO +.47%   IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1723 UP .0014(Euro UP 14 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 109.30 DOWN 0.574 Yen UP 57 basis points/

Great Britain/USA 1.3388 UP .0019( POUND UP 19 BASIS POINTS)

USA/Canada 1.2872 UP  .0035 Canadian dollar DOWN 35 Basis points AS OIL FELL TO $70.65

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This afternoon, the Euro was UP 14 to trade at 1.1723

The Yen ROSE to 109.30 for a GAIN of 58 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND ROSE BY 9 basis points, trading at 1.3388/

The Canadian dollar FELL by 35 basis points to 1.2872/ WITH WTI OIL FALLING TO : $70.65

The USA/Yuan closed AT 6.3784
the 10 yr Japanese bond yield closed at +.05%  UP 4/10  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield DOWN 3   IN basis points from WEDNESDAY at 2.98 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.13  DOWN 3      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, 93.77  DOWN 23 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED DOWN 71.70 POINTS OR 0.92%
German Dax :CLOSED DOWN 121.75 OR 0.94%
Paris Cac CLOSED DOWN 17.40 POINTS OR 0.31%
Spain IBEX CLOSED DOWN 29.00 POINTS OR 0.29%

Italian MIB: CLOSED DOWN 162.63 POINTS OR 0,71%

The Dow closed DOWN 75.05 POINTS OR 0.30%

NASDAQ closed DOWN 1.53  OR .02%  4.00 PM EST

WTI Oil price; 70.65  1:00 pm;

Brent Oil: 78.78 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 61.61 UP 30/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 30 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO +.47% 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:$70.65

BRENT: $78.78

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

USA 30 YR BOND YIELD: 3.16%/DEADLY

EURO/USA DOLLAR CROSS: 1.1723 UP .0014  (UP 14 BASIS POINTS)

USA/JAPANESE YEN:109.30 DOWN 0.574 YEN UP 57 BASIS POINTS/ .

USA DOLLAR INDEX: 93.77 DOWN 23 cent(s)/dangerous as the lower the dollar the higher the inflation.

The British pound at 5 pm: Great Britain Pound/USA: 1.3388 UP 0.0019  (FROM TUESDAY NIGHT UP 19 POINTS)

Canadian dollar: 1.2872 DOWN 35 BASIS pts

German 10 yr bond yield at 5 pm: +0.47%


VOLATILITY INDEX:  12.60  CLOSED  UP 0.02   

LIBOR 3 MONTH DURATION: 2.330%  .

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

TRADING IN GRAPH FORM FOR THE DAY

Bonds & Bullion Surge Amid Korean Chaos,

Trade Turmoil

Stocks round trip on the day, bonds roundtrip on the week, dollar roundtrips on the year… sometimes it’s better not to play…

 

Just when you thought it was safe to buy Italian bonds or banks… they resume their decline…

Trannies had a good day as oil prices leaked lower but the rest of the majors managed to bounce back to the flatline after Trump killed the Korea Summit…

 

It looks like today’s bounce from the Trump headlines was prompted by a need to get green for the week…

 

The Dow remains stuck around unchanged for the year and the 50% retrace of the Feb Flop…

 

S&P is finding support at its 100DMA…

 

In single-stock-land, Twitter is now bigger than Deutsche Bank…

 

And Netflix is bigger then Comcast and Disney…

h/t David Wilson

 

HY Bonds remain unimpressed since The Fed Minutes…

 

Stocks briefly tried to catch back down to bond’s reality today after trump’s comments, but dip-buying machines piled in…

 

Treasury yields continue to tumble – down 5 days in a row…

 

Erasing last week’s spike…

This is the best 5-day price gain for 10Y Note futures since May 2017.

 

The dollar index extended losses post-FOMC Minutes…

 

Despite a weaker dollar, EM FX resumed its decline…

 

Cryptos tumbled early on, but rebounded starting around 9amET…

 

Leaving Bitcoin green by the end of the day..

 

A weaker dollar sent PMs and copper higher but crude crumbled…

 

WTI ended back below $71…

 

Gold surged back above $1300… best day for gold in 6 weeks

 

Since The Fed Minutes, gold is the big winner, bonds are slightly outpacing stocks and the dollar is down…

END

MARKET DATA

 

With higher interest rates, one would expect home sales to tumble and they did in April

 

(courtesy zero hedge)

Existing Home Sales Tumble In April As Rate-

Hikes Crush Affordability

Following the April drop in  new home sales amid record high average prices, existing home sales tumbled 2.5% MoM (considerably worse than the 0.9% drop expected) to 5.36m SAAR.

 

Purchases fell in three of four regions, including a 2.9 percent decline in the South and a 3.3 percent drop in the West

Notably, while single-family home sales decreased 3 percent last month to an annual rate of 4.84 million, purchases of condominium and co-op units rose 1.6 percent to a 620,000 pace.

On a YoY basis, it looks like we have hit peak housing…

“Since NAR began tracking this data in May 2011, the median days a listing was on the market was at an all-time low in April, and the share of homes sold in less than a month was at an all-time high.

The median existing-home price for all housing types in April was $257,900, up 5.3 percent from April 2017 ($245,000). March’s price increase marks the 74th straight month of year-over-year gains, but price growth is slowing…

And just like new home sales, all the positives are at the higher-end…

“We are seeing no breakout in home sales,” Lawrence Yun, NAR’s chief economist, said at a press briefing accompanying the report. “We are stuck in this narrow range at a time when the economy is doing well.”

“However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers can afford,” Yun said in a statement.

With mortgage rates at 8-year highs, it should not be surprise…

END

Amazing! Millenials do not want freight driving jobs.  As much companies must pay higher wages which in turn is causing prices of goods to rise

(courtesy zerohedge)

 

“We’ve Never Seen Anything Like This” – Freight

Companies Scramble To Hike Wages As Trucker

Shortage Intensifies

Millennials would apparently rather live in their mothers’ basements for the rest of their lives than take a “blue collar” job like joining the ranks of America’s long-haul truckers – and that’s creating serious problems for the US economy that could prompt the Federal Reserve to hike interest rates even more quickly, as the central bank attempts to head off an “overheating” economy.

Trucker

In a report published Tuesday, the Washington Post became the latest US news organization to explore the factors driving up freight costs in the US. These include a shortage of drivers that is forcing trucking companies to hike wages at a seriously rapid clip. As we pointed out last year, the Trump administration’s focus on restoring blue-collar jobs in the US has inadvertently helped create a “yuge” labor shortage. According to a study done by one industry group, freight companies could be facing a shortage of more than 175,000 drivers by 2024.

Trucker

The problem is that few young people are willing to dedicate their careers to long-haul trucking for fear that tech giants like Uber and Google will soon render them obsolete by introducing fleets of self-driving trucks.

The US has been struggling with a shortage of drivers for years. But in 2018, that shortage has reached a crisis level as a strong economy has caused demand for goods to soar across nearly every sector of he US. In addition, the federal government introduced a new rule in December that limits driving shifts to 11 hours before drivers must take a legally mandated break.

In response to these circumstances, Joyce Brenny, chief executive of Brenny Transportation in Minnesota, gave her drivers a 15% raise this year, but she still can’t find enough workers for a job that now pays $80,000 a year – well above the national median income. Brenny added that she might be forced to hand out another 10% raise later this year.

“I’ve never seen it like this, ever,” said Brenny, who has been in the trucking industry for 30 years. “It doesn’t matter what the load even pays. There are just not drivers.”

Trucking executives say their industry is experiencing a perfect storm: The economic upswing is creating heavy demand for trucks, but it’s hard to find drivers with unemployment so low. Young Americans are ignoring the job openings because they fear self-driving trucks will soon dominate the industry. Waymo, the driverless car company owned by Alphabet, just launched a self-driving truck pilot program in Atlanta, although trucking industry veterans argue it will be a long time before drivers go away entirely.

Brenny anticipates she will have to raise pay another 10 percent before the end of the year to ensure that other companies don’t steal her drivers.

“The drivers deserve the wages. They really do, but the raises are coming so fast that it’s hard to handle,” said Brenny, who is having to adjust contracts for drivers – and customers – rapidly.

[…]

“It’s as bad as it’s ever been” to find drivers, said Bob Costello, chief economist at the American Trucking Associations. “Companies are doing everything they can to make drivers happy: increasing pay and getting them home more often, but that means they aren’t driving as many miles.”

America had a shortage of 51,000 truck drivers at the end of last year, Costello found, up from a shortage of 36,000 in 2016. He says “without a doubt” it’s going to be even higher this year, even though many companies are giving double-digit raises. He gets asked about the driver scarcity daily as companies try to figure out how to handle the growing backlog. His best advice is for companies to invest in technology like what Uber and Lyft have to cut down on the time a driver or truck sits idle between runs.

Trucking executives who spoke with WaPo said their industry is facing what they described as a “perfect storm”. Low unemployment is making it hard to find drivers. And young Americans are wary of taking a job that could soon disappear thanks to intensifying automation and AI. Alphabet’s Waymo just launched a self-driving truck pilot program in Atlanta – though industry veterans say it’ll be years, or even decades, before the program is ready to expand.

Trucker

Meanwhile, rising wages and climbing energy prices are driving the trucking price per mile to its highest level since the financial crisis.

This rise is eating away at profit margins for everybody from grocers to manufacturers. Eventually, companies will have no choice but to pass on these expenses to their customers in the form of consumer price inflation.

And the situation will likely only get worse as the summer driving season jumps into full swing.

Logistics and transportation accounts for about 10 cents of every dollar in the U.S. economy, says Donald Broughton of Broughton Capital and author of the Cass Freight Index publication.

“I don’t normally speak in hyperbole, but we’re entering some uncharted territory,” Broughton said. “If there is a 10 percent increase in transportation costs, that gives you a 1 percent increase in inflation for the broader economy. That’s real.”

It could mark a turning point for the U.S. economy. Inflation has stayed unusually low in the past decade, largely because costs have stayed low for food, clothes and other items Americans buy in store or online as companies got more efficient and worker wages barely increased. But rising shipping costs could change that dynamic in 2018, potentially forcing people to have to spend more and employers to hike pay as they try to compete for workers with the trucking industry.

There already aren’t enough trucks on the road to keep up with demand this spring. It could get even worse when the holiday season hits.

Long-haul trucking doesn’t require a college degree – but drivers must repeatedly pass drug tests, something that’s becoming a major hindrance for younger male workers.

But perhaps as young people start to realize that they need to find a job that pays better than the $30,000 a year they’re making as a social media guru, then the shortage of drivers will start to clear up.

SWAMP STORIES

 

Very important:  Sharyl Attkisson’s 8 points which point to a counter intelligence operation deployed against Trump

 

(courtesy Sharyl Attisson/Hill)

Sharyl Attkisson: 8 Signs Pointing To A Counter-Intel Op

Deployed Against Trump

Authored by Sharyl Attkisson, op-ed via The Hill,

It may be true that President Trump illegally conspired with Russia and was so good at covering it up he’s managed to outwit our best intel and media minds who’ve searched for irrefutable evidence for two years. (We still await special counsel Robert Mueller’s findings.)

But there’s a growing appearance of alleged wrongdoing equally as insidious, if not more so, because it implies widespread misuse of America’s intelligence and law enforcement apparatus.

Here are eight signs pointing to a counterintelligence operation deployed against Trump for political reasons.

1. Code name

The operation reportedly had at least one code name that was leaked to The New York Times: “Crossfire Hurricane.”

2. Wiretap fever

Secret surveillance was conducted on no fewer than seven Trump associates: chief strategist Stephen Bannon; lawyer Michael Cohen; national security adviser Lt. Gen. Michael Flynn; adviser and son-in-law Jared Kushner; campaign chairman Paul Manafort; and campaign foreign policy advisers Carter Page and George Papadopoulos.

The FBI reportedly applied for a secret warrant in June 2016 to monitor Manafort, Page, Papadopoulos and Flynn. If true, it means the FBI targeted Flynn six months before his much-debated conversation with Russia’s ambassador, Sergey Kislyak.

The FBI applied four times to wiretap Page after he became a Trump campaign adviser starting in July 2016. Page’s office is connected to Trump Tower and he reports having spent “many hours in Trump Tower.”

CNN reported that Manafort was wiretapped before and after the election “including during a period when Manafort was known to talk to President Trump.” Manafort reportedly has a residence in Trump Tower.

Electronic surveillance was used to listen in on three Trump transition officials in Trump Tower — Flynn, Bannon and Kushner — as they met in an official capacity with the United Arab Emirates’ crown prince.

The FBI also reportedly wiretapped Flynn’s phone conversation with Kislyak on Dec. 31, 2016, as part of “routine surveillance” of Kislyak.

NBC recently reported that Cohen, Trump’s personal attorney, was wiretapped. NBC later corrected the story, saying Cohen was the subject of a “pen register” used to monitor phone numbers and, possibly, internet communications.

3. National security letters

Another controversial tool reportedly used by the FBI to obtain phone records and other documents in the investigation were national security letters, which bypass judicial approval.

Improper use of such letters has been an ongoing theme at the FBI. Reviews by the Department of Justice’s Inspector General found widespread misuse under Mueller — who was then FBI director — and said officials failed to report instances of abuses as required.

4. Unmasking

“Unmasking” — identifying protected names of Americans captured by government surveillance — was frequently deployed by at least four top Obama officials who have subsequently spoken out against President Trump: James Clapper, former Director of National Intelligence; Samantha Power, former U.S. Ambassador to the United Nations; Susan Rice, former national security adviser; Sally Yates, former deputy attorney general.

Names of Americans caught communicating with monitored foreign targets must be “masked,” or hidden within government agencies, so the names cannot be misused or shared.

However, it’s been revealed that Power made near-daily unmasking requests in 2016.

Prior to that revelation, Clapper claimed ignorance. When asked if he knew of unmasking requests by any ambassador, including Power, he testified: “I don’t know. Maybe it’s ringing a vague bell but I’m not — I could not answer with any confidence.”

Rice admitted to asking for unmasked names of U.S. citizens in intelligence reports after initially claiming no knowledge of any such thing.

Clapper also admitted to requesting the unmasking of “Mr. Trump, his associates or any members of Congress.” Clapper and Yates admitted they also personally reviewed unmasked documents and shared unmasked material with other officials.

5. Changing the rules

On Dec. 15, 2016 — the same day the government listened in on Trump officials at Trump Tower — Rice reportedly unmasked the names of Bannon, Kushner and Flynn. And Clapper made a new rule allowing the National Security Agency to widely disseminate surveillance material within the government without the normal privacy protections.

6. Media strategy

Former CIA Director John Brennan and Clapper, two of the most integral intel officials in this ongoing controversy, have joined national news organizations where they have regular opportunities to shape the news narrative — including on the very issues under investigation.

Clapper reportedly secretly leaked salacious political opposition research against Trump to CNN in fall 2017 and later was hired as a CNN political analyst. In February, Brennan was hired as a paid analyst for MSNBC.

7. Leaks

There’s been a steady and apparently orchestrated campaign of leaks — some true, some false, but nearly all of them damaging to President Trump’s interests.

A few of the notable leaks include word that Flynn was wiretapped, the anti-Trump “Steele dossier” of political opposition research, then-FBI Director James Comey briefing Trump on it, private Comey conversations with Trump, Comey’s memos recording those conversations and criticizing Trump, the subpoena of Trump’s personal bank records (which proved false) and Flynn planning to testify against Trump (which also proved to be false).

8. Friends, informants and snoops

The FBI reportedly used one-time CIA operative Stefan Halper in 2016 as an informant to spy on Trump officials.

Another player is Comey friend Daniel Richman, a Columbia University law professor, who leaked Comey’s memos against Trump to The New York Times after Comey was fired. We later learned that Richman actually worked for the FBI under a status called “Special Government Employee.”

The FBI used former reporter Glenn Simpson, his political opposition research firm Fusion GPS, and ex-British spy Christopher Steele to compile allegations against Trump, largely from Russian sources, which were distributed to the press and used as part of wiretap applications.

*  *  *

These eight features of a counterintelligence operation are only the pieces we know.

It can be assumed there’s much we don’t yet know. And it may help explain why there’s so much material that the Department of Justice hasn’t easily handed over to congressional investigators.

end

Grassley seeks unredacted copies of the genesis of the Russian collusion escapade: he is very interested in this:  Strzok:  “the White House is running this”.  Since we know that Obama had his hands into everything, we are sure that he is part of this scandal

(courtesy zerohedge)

“The White House Is Running This”: Grassley Demands DOJ

Unredact Mystery Strzok-Page Texts

Senate Judiciary Committee Chairman Chuck Grassley (R-IA) fired off a letter to the Department of Justice Wednesday demanding unredacted versions of text messages between FBI agent Peter Strzok and former bureau attorney Lisa Page, including one exchange which took place after Strzok had returned from London as part of the recently launched “Operation Crossfire Hurricane” – referring to the White House “running” an unknown investigation.

After Senator Ron Johnson (R-WI) fought tooth-and-nail for their release, the DOJ provided heavily redacted texts on May 1 and May 18. The visible portions of the texts, however, are troubling in light of recent developments – prompting Grassley’s request for unredacted copies.

“When viewing the still redacted portions in context with the unredacted material, it appeared that the redacted portions may contain relevant information relating to the Committee’s ongoing investigation into the matter in which the Department of Justice and FBI handled the Clinton and Russia investigations.” –Sen. Chuck Grassley (R-IA)

In particular, Grassley notes:

  • “As one example of redacted material, in a text message produced to the Committee, the price of Andrew McCabe’s $70,000 conference table was redacted.”
  • “In another, an official’s name was redacted in reference to a text about the Obama White House ‘running’ an investigation, although it is unclear to which investigation they were referring

What’s notable about the message referring to the White House is that Strzok had returned from London to interview Australian ambassador Alexander Downer about a drunken conversation with Trump campaign aide George Papadopoulos, who – after reportedly being fed information – mentioned Russia having Hillary Clinton’s emails.

Strzok: And hi. Went well, best we could have expected. Other than [REDACTED] quote: “the White House is running this.” My answer, “well, maybe for you they are.” And of course, I was planning on telling this guy, thanks for coming, we’ve got an hour, but with Bill [Priestap] there, I’ve got no control….

Page: Yeah, whatever (re the WH comment). We’ve got the emails that say otherwise.

Grassley requested that the DOJ turn over unredacted copies of the exchanges by June 6.

https://www.scribd.com/embeds/380025938/content?start_page=1&view_mode=scroll&access_key=key-4Fnw3GhaHVayiJ11uG93&show_recommendations=false

Strzok and Page were kicked off of Special Counsel Robert Mueller’s Russia probe over the summer when the Justice Department’s Inspector General, Michael Horowitz discovered over 50,000 texts between the two FBI employees – many of which showed clear bias for Hillary Clinton and against Donald Trump.

In a Monday meeting with President Trump, Deputy Attorney General Rod Rosenstein agreed to instruct Horowitz to investigate how the FBI “conducted its counterintelligence investigation of persons suspected of involvement with the Russian agents who interfered in the 2016 presidential election.”

“Based on the meeting with the President, the Department of Justice has asked the Inspector General to expand its current investigation to include any irregularities with the Federal Bureau of Investigation’s or the Department of Justice’s tactics concerning the Trump Campaign,” a White House statement said.

“It was also agreed that White House Chief of Staff [John] Kelly will immediately set up a meeting with the FBI, DOJ, and DNI together with Congressional Leaders to review highly classified and other information they have requested.”

I will  see you THURSDAY night

HARVEY

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