MAY 31/GOLD FALLS SLIGHTLY BY $1.60 TO $1300.80/SILVER IS DOWN 7 CENTS TO $16.46/ A HUGE 32 TONNES OF GOLD STANDING AT THE COMEX AND ONLY 8.23 TONNES OF REGISTERED GOLD IS PRESENT TO SATISFY THIS DEMAND/A HUGE 3.4 MILLION OZ OF SILVER IS STANDING AT THE COMEX IN AN OFF DELIVERY MONTH/ITALY HAS A NEW GOVERNMENT AND IT INCLUDES A FINANCE MINISTER THAT IS A EUROSKEPTIC/DOW FALLS 252 POINTS AND NASDAQ FALLS 20 POINTS/SPANISH GOVERNMENT WILL FALL TOMORROW IN A NON CONFIDENCE VOTE/DEUTSCHE BANK HAD TO ISSUE A STATEMENT DUE TO FED’S CONCERNS WITH ITS USA OPERATIONS: STOCK FALLS TO ITS LOW OF 9.16 EUROS/MORE SWAMP STORIES FOR YOU TONIGHT/

 

GOLD: $1300.80 DOWN  $1.60 (COMEX TO COMEX CLOSINGS)

Silver: $16.46 DOWN  7 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1298.50

silver: $16.44

TODAY IS FIRST DAY NOTICE FOR BOTH THE GOLD AND SILVER COMEX CONTRACTS.

For comex gold:

JUNE/

NUMBER OF NOTICES FILED TODAY FOR JUNE CONTRACT:75 NOTICE(S) FOR 7500 OZ.

TOTAL NOTICES SO FAR 75 FOR 7500 OZ (0.23328 tonnes)

For silver:

JUNE

356 NOTICE(S) FILED TODAY FOR

1,780,000 OZ/

Total number of notices filed so far this month: 356 for 1,780,000 oz

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Bitcoin: BID $7494/OFFER $7594: UP $171(morning)

Bitcoin: BID/ $7483/offer $7583: UP $160  (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: 1306.67

NY price  at the same time: 1300.10

PREMIUM TO NY SPOT: $5.23

Second gold fix early this morning: 1309.57

USA gold at the exact same time:1303.40

PREMIUM TO NY SPOT:  $6.17

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 AN STRONG1748 CONTRACTS FROM  207,630  UP TO 209,358 ACCOMPANYING YESTERDAY’S GOOD 16 CENT GAIN IN SILVER PRICING.    WE ARE NOW WITNESSING OUR USUAL AND CUSTOMARY COMEX LONG LIQUIDATION AS WE ENTERED INTO THE NON ACTIVE DELIVERY MONTH OF JUNE 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 :   1577 EFP’S FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE OF 1577 CONTRACTS. WITH THE TRANSFER OF 1577 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 1577 EFP CONTRACTS TRANSLATES INTO 7.885 MILLION OZ  ACCOMPANYING:

1.THE 16 CENT GAIN IN  SILVER PRICE  AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR JUNE COMEX DELIVERY. (3.430 MILLION OZ) DESPITE IT BEING A NON ACTIVE DELIVERY MONTH.

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

42,011 CONTRACTS (FOR 22 TRADING DAYS TOTAL 42,011 CONTRACTS) OR 210.055MILLION OZ: (AVERAGE PER DAY: 1909 CONTRACTS OR 9.547 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  210.055 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 30.00% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:            1,314.3      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

ACCUMULATION FOR MAY 2018:                                            210.05       MILLION OZ

RESULT: WE HAD A CONSIDERABLE SIZED INCREASE IN COMEX OI SILVER COMEX OF 1748 WITH THE 16 CENT GAIN IN SILVER PRICE.  WE HAVE NOW ENTERED THE NEW NON ACTIVE MONTH OF JUNE.   THE CME NOTIFIED US THAT IN FACT WE HAD AN STRONG SIZED EFP ISSUANCE OF 1577 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:  1577 EFP CONTRACTS FOR JULY, AND ZERO FOR ALL OVER MONTHS   FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 1577). TODAY WE GAINED A HUGE 3524 TOTAL OI CONTRACTS  ON THE TWO EXCHANGES: i.e.1577 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH AN INCREASE OF 1748  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE 16 CENT GAIN IN PRICE OF SILVER  AND A CLOSING PRICE OF $16.53 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A GIGANTIC AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY IN THIS NON  ACTIVE JUNE 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. 1.047 MILLION OZ TO BE EXACT or 150% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JUNE MONTH/ THEY FILED AT THE COMEX: 356 NOTICE(S) FOR 1,780,000 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: 36.285 MILLION OZ /AND JUNE  (3.430 MILLION OZ SO FAR)
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/ (FINAL)

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

In gold, the open interest FELL BY A CONSIDERABLE 9471CONTRACTS DOWN TO 459,911 DESPITE THE GAIN IN THE GOLD PRICE/YESTERDAY’S TRADING (GAIN OF $2.70).  WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF JUNE. NO DOUBT THE BOYS ARE CASHING IN THEIR COMEX LONGS TO BEGIN THE PROCESS TO MOVE INTO LONDON FORWARDS.  THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS SIZED 17,163 CONTRACTS :   JUNE SAW THE ISSUANCE OF 172 CONTRACTS , AND AUGUST SAW THE ISSUANCE OF:  16,991 CONTRACTS WITH ALL OTHER MONTHS ZERO.  The new OI for the gold complex rests at 459,911. 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: 9471OI CONTRACTS DECREASED AT THE COMEX AND AN ATMOSPHERIC SIZED 17,163 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.THUS  TOTAL OI GAIN: 7692 CONTRACTS OR 769,200 OZ = 23.92 TONNES. AND ALL OF THIS DEMAND OCCURRED WITH A GAIN OF $2.70

YESTERDAY, WE HAD 14900  EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 223,058 CONTRACTS OR 22,305,800  OZ OR 693.80 TONNES (22 TRADING DAYS AND THUS AVERAGING: 10,139 EFP CONTRACTS PER TRADING DAY OR 1,013,900 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 22 TRADING DAYS IN  TONNES: 693.80 TONNES

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

THUS EFP TRANSFERS REPRESENTS 693.80/2550 x 100% TONNES =  27.20% 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:  3,452.20*  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)

ACCUMULATION OF GOLD EFP’S FOR MAY 2018:                     693.80 TONNES ( 22 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 9471 DESPITETHE $2.70 GAIN  IN PRICE // GOLD TRADING YESTERDAY ($2.70 RISE).  WE ALSO HAD AN HUMONGOUS SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 17,163 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 17,163 EFP CONTRACTS ISSUED, WE HAD AN STRONG SIZED NET GAIN OF 7692 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

17,163 CONTRACTS MOVE TO LONDON AND 9471 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 23/92 TONNES). ..AND BELIEVE IT OR NOT BUT ALL OF THIS DEMAND OCCURRED AT THE COMEX WITH A GAIN OF $2.70 IN TRADING!!!.

we had: 75 notice(s) filed upon for 7500 oz of gold at the comex.

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

GLD...

WITH GOLD  DOWN $1.60  TODAY: / NO CHANGE IN GOLD INVENTORY AT THE GLD/  /INVENTORY RESTS AT 851.45 TONNES

Inventory rests tonight: 851,45 tonnes.

SLV/

WITH SILVER DOWN 7 CENTS TODAY A HUGE CHANGE IN THE SILVER INVENTORY AT  THE SLV INVENTORY/ NO CHANGE IN INVENTORY AT THE SLV

/INVENTORY RESTS AT 322.039 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 STRONG SIZED 1748 CONTRACTS from  207,610 UP TO 209,358 (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:   (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM), 1577 EFP’S FOR JULY AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1577 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 1947 CONTRACTS TO THE 1577 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GIGANTIC SIZED GAIN OF 3524 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES:  16.625 MILLION OZ!!! AND THIS HUGE DEMAND OCCURRED WITHA 16 CENT GAIN 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  APRIL AT 385.75 MILLION OZ AND THE TOTAL OI GAIN ON THE TWO EXCHANGES, THE CONSTANT RAIDS, THAT 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 FROM YESTERDAYS ACTION THEY HAVE NOT BEEN AT ALL SUCCESSFUL.

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 16 CENT GAIN  IN SILVER PRICING YESTERDAY. BUT WE ALSO HAD ANOTHER STRONG SIZED 1577 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR JUNE, 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 UP 54.03 points or  1.78%   /Hang Sang CLOSED UP 411.77 points or 1.37%    / The Nikkei closed UP 183.30 POINTS OR 0.83% /Australia’s all ordinaires CLOSED UP .49%  /Chinese yuan (ONSHORE) closed UP at 6.4070/Oil UP to 67.80 dollars per barrel for WTI and 77.50 for Brent. Stocks in Europe OPENED ALL GREEN EXCEPT GERMAN DAX/.  ONSHORE YUAN CLOSED UP AT 6.4070 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4038/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH  STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING

/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA

b) REPORT ON JAPAN

3 c CHINA

4. EUROPEAN AFFAIRS

i)Europe/USA

Trump unable to win any concessions from the corrupt EU.  Now Trump will unleash his steel and aluminum tariff equal to 25% on the EU.  The EU will retaliate

( zerohedge)

ii)This is getting nasty:  Trump is not only planning tariffs on steel and aluminum with respect to imports from Europe but also from Canada and Mexico.  This will develop into a full scale war

( zerohedge)

iii)Europe and especially Germany is furious at the USA and they vow retaliation in hours

( zerohedge)

iv)Thursday morning/Italy
A good outline today as to what to expect with respect to Italy..basically the markets are not realizing the severity of what is happening
( zerohedge)

v)I think I have just seen about everything.  A British judge trying to solve the huge increase in stabbings in the UK has a solution:  the knives are too sharp and must be filed down

( Mac Slavo/SHFTPlan .com)

vi)First Italy and now we must assess the risk to Spain as it looks like Rajoy will be out on a non confidence vote tomorrow

( zerohedge)

vii)Five star and the League reach an agreement on government with Savona is to be Minister of EU affairs

Now they can form a government
(courtesy zerohedge)

viii)The new Italian government has now been confirmed and the ultra euro skeptic Finance Minister Tria has been accepted

( zerohedge)

viii b)Dave Kranzler correctly states the key problem hitting Italy. The banking industry is really only interested in the defaults that will occur on Italy’s debt obligations which in turn will set off a daisy chain OTC credit defaults + other exotic credit derivatives as he states that this will be a financial nuclear holocaust

( Dave Kranzler/IRD)

viii)No wonder Deutsche bank went unilaterally to the court and ask for smaller fines in their manipulation of gold and silver last year.  The Fed last year secretly put DB’s USA operations on a “troubled watchlist”.  Please remember that DB is the world’s largest derivative player and judging from market action, they must be on the wrong side on many of those derivative trades.

it also explains the lack of collateral..the need to feed losses on those derivatives

(courtesy zerohedge)

viii b)Markets scared:  Deutsche bank issues a statement as its stock crashes to 9.16 euros tonight

(courtesy zerohedge)
ix)Late this afternoon:  

Reassessment time:  It seems that Italy’s new Finance Minister is also a strong euroskeptic

( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Turkey/USA/Syria

Supposedly a deal has been reached whereby Kurdish forces will withdraw from a key Syrian town of Manbij.  Both the USA and Turkey will control the northern city until local authorities elect officials.  Both sides still call the deal tentative

(courtesy zerohedge)

6 .GLOBAL ISSUES

i)I brought the article to your attention yesterday but I forgot to give a little blurb why it is important.Everybody is talking about the increase risk in the system being Italy.  Jeffrey Snider via Alhambra Investment Partners is one smart cookie.  He is stating that it is not just Italy, it is the lack of collateral in the system.  That is why we are witnessing the yen rise lately in value

a very important commentary..

( Jeffrey Snider/Alhambra Investment Partners)

ii)CANADA/MEXICO

Both the Canadian dollar and the Mexican peso plunge on the USA plan to create tariffs on imported steel and aluminum from Canada.  So much for NAFTA

(courtesy zerohedge)

7. OIL ISSUES

This is a killer blow to the uSA dollar and its hegemony:  India is to buy oil from Iran in Rupees

( the dailyeconomist)

8. EMERGING MARKET

BRAZIL

This could be a death blow to Brazil and they may in a short order of time default as their GDP estimate is down 38% due to that awful nationwide strike

( zerohedge)

9. PHYSICAL MARKETS

The annual “in Gold We Trust” is out.  It is authored Ronald Stoeferle and Mark Valek.  They are coming to the same conclusion as us that the world is moving away form a dollar based financial system.
(courtesy GATA/Incrementum/Stoeferle/Valek)

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

i)USA DATA

a)The USA savings rate is back to record lows as Americans are having difficulty savings due to the higher costs to stay alive;  this is the 28th month in a row where spending trumped savings

( zerohedge)

b)Soft data Chicago Mfg PMI rebounds.  This goes in complete contrast to hard data

( zerohedge)

c)

The higher interest rates have now caused all 3 levels of housing sales to slump: New homes, existing homes and pending home sales
( zero hedge)

iii)SWAMP STORIES

a)I guess you are all aware of the Roseanne Barr story where she was fired for racial slurs.  Now Trump wants an apology from Disney’s Iger for offending millions of people.

( zero hedge)

Let us head over to the comex:

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 9471  CONTRACTS UP to an OI level 459911 DESPITE THE RISE IN THE PRICE OF GOLD ($2.70 GAIN/ YESTERDAY’S TRADING).   FOR TWO YEARS STRAIGHT WE HAVE NOTICED THAT ONE WEEK PRIOR TO FIRST DAY NOTICE OF AN ACTIVE DELIVERY MONTH THE COMEX OPEN INTEREST CONTRACTS AND EFP’S NOTICES EXPONENTIALLY INCREASE.   THE CME REPORTS THAT THE BANKERS ISSUED A HUMONGOUS SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 17,163 CONTRACTS WERE ISSUED: FOR  JUNE, 172 CONTRACTS ISSUED,  FOR AUGUST 16,991 CONTRACTS AND ZERO FOR ALL OTHER MONTHS:

TOTAL  17,163 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: 7692 OI CONTRACTS IN THAT 17,163 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 7948 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 7692 contracts OR 769,200  OZ OR 23.92 TONNES.

Result: A CONSIDERABLE SIZED DECREASE IN COMEX OPEN INTEREST WITH THE GAIN IN PRICE /YESTERDAY  (ENDING UP WITH AN RISE IN PRICE OF $2.70).  THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: AT A STRONG 7692 OI CONTRACTS..

We have now entered the active contract month of JUNE where we LOST 26,411 contracts and that leaves us with 10,337 contracts and by definition this is the initial amount of gold standing at the comex for June i.e. 10,337 contracts x 100 oz per contract which equals  1,033,700 oz or  32.152 tonnes

.JULY saw a GAIN of 267 contracts to stand at 1300.  The next big delivery month after June is August and here the OI ROSE BY 164607 contracts UP to 331,490.

AFTER AUGUST, THE NEXT ACTIVE DELIVERY MONTH IS OCTOBER AND HERE THE OI ROSE BY 3 CONTRACTS UP TO 11,389 CONTRACTS.

We had 75 notice (s) filed upon today for 7500 oz at the comex  which is surprisingly extremely low for a very active and strong delivery month of June.

FOR COMPARISON:

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: 368,185  contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:  763,221   contracts

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And now for the wild silver comex results.

Total silver OI ROSE BY A STRONG SIZED 1748 CONTRACTS FROM 207,610 UP TO 209,358 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET APRIL 9.2018/ 243,411 CONTRACTS)  WITH THE 16 CENT GAIN IN SILVER PRICING/ YESTERDAY. SINCE WE ARE NOW INTO THE NON  ACTIVE DELIVERY MONTH OF JUNE, WE  WERE  INFORMED THAT WE HAD A STRONG SIZED 1577 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: 1577.  ON A NET BASIS WE GAINED 3325 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 1748 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 1577 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN  ON THE TWO EXCHANGES:  3325 CONTRACTS

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the NON active delivery month of JUNE and here the front month SURPRISINGLY ROSE BY 8 contracts RISING TO 686 contracts.  Thus by definition this is the initial amount of silver that will stand for metal for the upcoming June contract month or 686 x 5000 oz = 3,430,000 oz. JUNE IS  a non active DELIVERY month.

The next big active delivery month for silver is July and here the OI GAINED 32 contracts UP to 140,620. The next active delivery month after July for silver is September and here the OI ROSE by 1381 contracts UP to 34,723

We had 356 notice(s) filed for 1,780,000 OZ for the JUNE 2018 COMEX contract for silver which is extremely large!!

PLEASE NOTE THE FOLLOWING FOR COMPARISON PURPOSES:

ON MAY 31.2017 WE INITIALLY HAD 396 OPEN INTEREST STAND OR A LARGE 1.98 MILLION OZ 

STOOD FOR METAL.

AT THE CONCLUSION OF JUNE 2017:  4.92 MILLION OZ FINALLY STOOD AS QUEUE JUMPING STARTED IN EARNEST AND IN THE ENSUING YEAR, IT CONTINUED WITH RECKLESS ABANDON INCLUDING WHAT YOU ARE WITNESSING TODAY

INITIAL standings for JUNE/GOLD

MAY 31/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
406.599 OZ
BRINKS
Deposits to the Dealer Inventory in oz NIL oz
Deposits to the Customer Inventory, in oz   3603.682

OZ

Delaware

No of oz served (contracts) today
75 notice(s)
 7500 OZ
No of oz to be served (notices)
10,262 contracts
(1,026,200 oz)
Total monthly oz gold served (contracts) so far this month
75 notices
7500 OZ
0.2332 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
VERY UNUSUAL: FIRST DAY NOTICE AND THE COMEX IS COMATOSE???
 TODAY, WE HAVE  A TINY PULSE AT THE GOLD COMEX
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 1 withdrawal out of the customer account:
i) out  of Brinks:
406.599 oz
total customer withdrawals:  406.599 oz
we had 0 customer deposit
total customer deposits: nil oz
we had only 1 adjustment(s)
i) Out of HSBC:  22,842.010  oz was adjusted out of the dealer and this landed into the customer account of HSBC.
we usually have a slew of these adjustments as there are settlements..it sure looks like there is no gold present at the gold coemx

For JUNE:

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  75 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 27 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

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To calculate the INITIAL total number of gold ounces standing for the JUNE. contract month, we take the total number of notices filed so far for the month (75) x 100 oz or 7500 oz, to which we add the difference between the open interest for the front month of JUNE. (10,337 contracts) minus the number of notices served upon today (75 x 100 oz per contract) equals 1,033,700 oz, the number of ounces standing in this active month of APRIL (32.152 tonnes)

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

No of notices served (75 x 100 oz)  + {(10,337)OI for the front month minus the number of notices served upon today (75 x 100 oz )which equals 1,033,700 oz standing in this  active delivery month of JUNE .

THERE ARE ONLY 8.2316 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY  WHICH WILL MAKE JUNE AN EXTREMELY INTERESTING MONTH AS WE SEE HOW THIS PLAYS OUT!!!

total registered or dealer gold:  264,648.681 oz or 8.2316 tonnes
total registered and eligible (customer) gold;   9,017,569.272 oz 280.48 tones
THE COMEX IS AGAIN IN STRESS AS ONLY 8.2316 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 74 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE APRIL DELIVERY MONTH

JUNE INITIAL standings/SILVER

MAY 31/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 698,323.010 oz
Brinks
jpm
scotia
Malca
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
 nil
oz
No of oz served today (contracts)
356
CONTRACT(S)
(1,780,000 OZ)
No of oz to be served (notices)
330 contracts
(1,650,000 oz)
Total monthly oz silver served (contracts) 356 contracts

(1,780,000 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

total dealer deposits: nil oz

we had 0 deposits into the customer account

i) Into JPMorgan: nil oz

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

JPMorgan now has 140 million oz of  total silver inventory or 52.3% of all official comex silver. (140 million/268 million)

ii) into everybody else: nil oz

total customer deposits today: nil oz

we had 4 withdrawals from the customer account;

i) Out of Brinks: 995,58 oz

ii) Out of JPM: 617,325.400 oz

iii) Out of Scotia: 50,058.520

iv) Out of Malca: 29,943.510 oz

total withdrawals;  698,323.010 oz

we had 4  adjustments/ used for delivery purposes

i) Out of Brinks: 146,781.35 oz was adjusted out of the customer and this landed into the dealer account of Brinks

ii)  Out of CNT: 2,652,964.910 oz was adjusted out of the dealer and this landed into the customer account of CNT

iii) OUt of HSBC:  763,613.922 oz was removed out of the dealer account and this landed into the customer account of HSBC

iv) Out of Scotia:   166,621.500 oz was adjusted out of the dealer and this landed into the customer account of Scotia

total dealer silver:  65.522 million

total dealer + customer silver:  270.518 million oz

The total number of notices filed today for the JUNE. contract month is represented by 356 contract(s) FOR 1,780,000 oz. To calculate the number of silver ounces that will stand for delivery in JUNE., we take the total number of notices filed for the month so far at 356 x 5,000 oz = 1,780,000 oz to which we add the difference between the open interest for the front month of JUNE. (686) and the number of notices served upon today (356 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE contract month: 356(notices served so far)x 5000 oz + OI for front month of JUNE(686) -number of notices served upon today (356)x 5000 oz equals 3,430,000 oz of silver standing for the JUNE contract month

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ESTIMATED VOLUME FOR TODAY: 74,085 CONTRACTS

CONFIRMED VOLUME FOR YESTERDAY:70,102 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF  70,102 CONTRACTS EQUATES TO 350 MILLION OZ  OR 50.0% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -2.10% (MAY31/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.38% to NAV (MAY 31/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -2.10%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.38%/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 13.46/TRADING 13.14//DISCOUNT 2.35.

END

And now the Gold inventory at the GLD/

MAY 31/WITH GOLD DOWN 1.60/NO CHANGE IN GOLD INVENTORY/INVENTORY REMAINS AT 851.45 TONNES

MAY 30/WITH GOLD UP $2.70: A HUGE DEPOSIT OF 2.95 TONNES INTO THE GLD/INVENTORY REMAINS AT 851.45 TONNES

MAY 29/2018/WITH GOLD DOWN $4.50/ NO CHANGES IN GLD INVENTORY/INVENTORY REMAINS AT 848.50 TONNES

May 25/WITH GOLD UP ON THE WEEK BUT DOWN 80 CENTS TODAY: WE HAD A HUGE 3.54 TONNES OF GOLD WITHDRAWAL FROM THE CROOKED GLD/

MAY 24/WITH GOLD UP $12.40/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

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MAY 31/2018/ Inventory rests tonight at 851.45 tonnes

*IN LAST 389 TRADING DAYS: 79.56 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 339 TRADING DAYS: A NET 76.74 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory/

MAY 31/WITH SILVER DOWN 7 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 322.039 MILLION OZ/

MAY 30/WITH SILVER UP 16 CENTS: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/ A DEPOSIT OF 2.071 MILLION OZ/INVENTORY RESTS AT 322.039 MILLION OZ/

MAY 29.2018/ NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.968 OZ

May 25/INVENTORY LOWERS TO 319.968 AS WE HAD A WITHDRAWAL OF 1.035 MILLION OZ

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 30/2018:

Inventory 322.039 million oz

end

6 Month MM GOFO 2.15/ and libor 6 month duration 2.47

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

G0FO+ 2.15%

libor 2.47 FOR 6 MONTHS/

GOLD LENDING RATE: .32%

XXXXXXXX

12 Month MM GOFO
+ 2.71%

LIBOR FOR 12 MONTH DURATION: 2.60

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.11

end

Major gold/silver trading /commentaries for THURSDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Consequences of Ignoring Economic Reality Are Dangerous

“We can ignore reality, but we cannot ignore the consequences of ignoring reality…”


Source: Thequotepedia.com


Guest Post by Gary Christenson of  Deviant Investor

The western world has ignored economic realities for decades.

It’s not a Republican or Democratic problem. Banking, power, fiat currencies, dishonest money and transfers of wealth are the issues.

The consequences of ignoring reality are uncomfortable and dangerous. However, most people prefer palatable, easy to digest and believable stories.

In the United States, the U.K., Europe, and Japan it is comforting to believe:

  • Debt has increased exponentially for decades and for over 100 years in the US. We want to believe debt will grow for another century. (It won’t.)
  • Governments want to borrow, spend their way into prosperity, and pretend and extend indefinitely. (Not likely.)
  • It is comforting to believe our politicians and central bankers manage our countries and currencies for the benefit of the populace. (Don’t plan on it.)
  • Every major country uses a central bank. It is comforting to believe central banks are necessary. That delusion benefits the banking cartel and the political and financial elite.
  • It is comforting to believe gold is not necessary. Per Warren Buffett, we dig it from the ground and store it in a vault. Russians and Asians know its value and always want more.
  • It is comforting to believe in paper assets, debt based assets, fairy tales and the Easter Bunny. Gold, silver, platinum, land, and other real assets survive. Gold thrives, paper dies.

These comforting beliefs are incorrect and will be proven false in coming years.

The U.S. national debt has increased from about $3 billion in 1913 to over $21,000 billion ($21 trillion) in 2018. That is an average annual increase of about 8.8% per year. A similar debt increase for another 100 years will exceed $90,000 Trillion. Delusion!

  1. The crisis of 2008 hinted that “peak debt” had arrived. The Fed and other central banks responded by creating more debt and took credit for saving global economies. More debt is not a solution. The coming implosion will be destructive.
  2. Place one penny in a savings account at 6% annual interest and allow it to grow for 1,000 years. Your $0.01 has grown to a few hundred bucks—right? No! It has grown to $202,000,000,000,000,000,000,000. (Yes, the math is correct.)
  3. Compound interest rapidly increases debt. Debt will not increase forever and a reckoning will occur. What is the value of a 30 year bond yielding 3%, issued by an insolvent government that cannot pay the interest without going deeper into debt?

    CONSIDER:
  • Central Banks: Central banks and commercial banks produce paper and digital currency units that devalue all existing currency units. Central banks create profit for their owners and the financial and political elite. They are not beneficial for most people and small businesses.
  • Gold: The western financial and political elite claim gold is mostly useless. However gold has been money for thousands of years, is valued globally, and is convertible into paper and digital cash everywhere. An ounce of gold sold for about $42 in 1971 and sells for about $1,330 in March 2018 – a compounded annual increase of 7.6%.
  • Debt: The debt pyramid will crash and bonds and currencies will decline toward intrinsic value. Central banks will create more currency units to “paper over” the crisis and gold will increase in price as dollars devalue.

Ignoring Reality and the Consequences:

“We can ignore reality but we cannot ignore the consequences of ignoring reality.” The consequences are:

  • U.S. government spending and national debt growth are “out-of-control.” Expect continual dollar devaluation.
  • Based on Fed policies and government actions, the Fed can save either the dollar’s purchasing power or the bond market. Pick one!
  • Because an imploding bond market will destroy credit and the economy, expect the Fed to sacrifice the dollar, not the bond market.
  • However, the Fed and the U.S. government may kill all three – the stock market, bond market and dollar – in their delusional efforts to project military power and protect the banking cartel.
  • Gold and silver prices must increase as all fiat currencies devalue. Another country might back their currency with gold to prevent further devaluation. It won’t be the United States.
  • The cumulative damage from past economic delusions increases gold prices. The western financial world should be worried. Trouble, trauma, and a reckoning lie ahead.
  • Confidence in the dollar affects gold prices. When the dollar plummets, gold prices at $3,000, $5,000 and $10,000 will be sensible.

Which will have more purchasing power in ten years?

  • An ounce of gold or 14 one-hundred dollar bills?
  • An ounce of silver or a politician’s promise?
  • A ten year note for $10,000 purchased in 2018 that yields less than 3%, or 7 ounces of gold?

Courtesy of DeviantInvestor.com

News and Commentary

Gold gains on U.S. growth data with lingering Italy uncertainty (Reuters.com)

Gold settles higher on weaker dollar, edges down after Fed Beige Book (MarketWatch.com)

Italian Bonds Rebound Before Auction That’s Seen as Litmus Test (Bloomberg.com)

Global equities tumble, bullion hasn’t yet pushed higher (Bloomberg.com)

Signs of overheating in Irish economy, OECD warns (IrishTimes.com)

Italian Euro Exit May Have Moved A Little Bit Closer (MoneyWeek.com)

Europe banks ALERT: Turkey on brink of COLLAPSE as Lira PLUMMETS threatening Euro crisis (Express.co.uk)

Why The Eurozone And The Euro Are Both Doomed (ZeroHedge.com)

China and Russia Planning A Gold Backed Crypto Currency – Rickards (DailyReckoning.com)

Breaking down America’s worst long-term challenges: #1- Debt. (TheDailyBell.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

30 May: USD 1,298.60, GBP 979.27 & EUR 1,119.26 per ounce
29 May: USD 1,302.05, GBP 983.83 & EUR 1,130.57 per ounce
25 May: USD 1,303.95, GBP 976.53 & EUR 1,113.70 per ounce
24 May: USD 1,296.35, GBP 967.73 & EUR 1,104.88 per ounce
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

Silver Prices (LBMA)

30 May: USD 16.37, GBP 12.33 & EUR 14.08 per ounce
29 May: USD 16.48, GBP 12.43 & EUR 14.26 per ounce
25 May: USD 16.67, GBP 12.49 & EUR 14.24 per ounce
24 May: USD 16.51, GBP 12.32 & EUR 14.09 per ounce
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


Recent Market Updates

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– Gold Rarity and Value Shown In Stunning Gold Visualisations
– 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

Mark O’Byrne
Executive DirectoR
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
The annual “in Gold We Trust” is out.  It is authored Ronald Stoeferle and Mark Valek.  They are coming to the same conclusion as us that the world is moving away form a dollar based financial system.
(courtesy GATA/Incrementum/Stoeferle/Valek)

Incrementum’s annual ‘In Gold We Trust Report’ sees ‘the turning of the monetary tides’

 Section: 

9a ET Wednesday, May 30, 2018

Dear Friend of GATA and Gold:

The annual “In Gold We Trust” report by Incrementum’s Ronald-Peter Stoeferle and Mark J. Valek, titled “Gold and the Turning of the Monetary Tides,” argues that the world is steadily moving away from a dollar-based financial system and that gold actually has been doing well for many years relative to other currencies.

Abbreviated and complete versions of the report are available at Incrementum’s internet site here:

https://www.incrementum.li/en/ingoldwetrust-report/

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

END



___________________________________________________________________

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 6.4070  /shanghai bourse CLOSED UP 54.03 POINTS OR 1.78%     HANG SANG CLOSED UP 411.77  POINTS OR 1.37%
2. Nikkei closed UP 183.30 POINTS OR 0.83% /  /USA: YEN RISES TO 108.85/

3. Europe stocks OPENED GREEN EXCEPT GERMAN DAX//     /USA dollar index FALLS TO 93.96/Euro RISES TO 1.1685

3b Japan 10 year bond yield: RISES TO . +.04/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.85/ 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:: 67.80  and Brent: 77.50

3f Gold UP/Yen DOWN

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +.37%/Italian 10 yr bond yield DOWN to 2.77% /SPAIN 10 YR BOND YIELD DOWN TO 1.51%

3j Greek 10 year bond yield FALLS TO : 4.53

3k Gold at $1305.00 silver at:16.58   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 11/100 in roubles/dollar) 61.98

3m oil into the 67 dollar handle for WTI and 77 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 108.85 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 0.9861 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1523 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 +0.370%

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

4. USA 10 year treasury bond at 2.86% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.03%

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

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

Markets On Edge As All Eyes Turn To Spain And

Rajoy’s No-Confidence Vote

A good summary of overnight events comes from UBS’ chief economist Paul Donovan who writes:

We are not back to normal, but markets have reacquainted themselves with what normal might look like. Italian bond yields fell and the euro recovered yesterday. A consensus is forming that there will not be elections in Italy until September at the earliest. Italian President Mattarella is waiting to see if the two anti-parties can in fact form a coalition.

Meanwhile, with European and Asian stocks all higher – if only for the duration of the Italian waiting game – helped by the jump in Italian bonds and plunging yields, all eyes more to Spain, with the Socialists getting close to lining up the support they need to oust Prime Minister Mariano Rajoy in a no-confidence vote.

As Bloomberg notes, lawmakers are due to vote on the no-confidence motion Friday and people close to the negotiations were signaling late Wednesday that Socialist leader Pedro Sanchez – who already has the backing of the anti-establishment group Podemos and Esquerra Republicana, one of two Catalan separatist groups and just needs the other Catalan party, PdeCat, and the Basque Nationalists to clinch it – is likely to get the support he needs to replace Rajoy as prime minister, who on Thrusday was starting to sound a little forlorn: “I know how these votes work, but you should at least be clear in your minds what you’re doing,” Rajoy, who will soon be unemployed, told lawmakers.

Incidentally, a poll published by El Confidencial, found that Ciudadanos remains in top spot with 28.6% of votes, followed by the Socialists who requested today’s no-confidence vote in 2nd with 20.6%, Podemos is third with 19.7% and the ruling PP is in fourth with 19.7%.

One additional note on the ongoing Italian drama, where should the Cottarelli government fail, Savona could be considered for Foreign minister in a League/5SM government, Angelo Ciocca a possible pick for finance minister, the local press reported. Italy’s League and Brothers of Italy are however quoted to join forces at the potential upcoming elections, 5SM are also open to a Brothers of Italy coalition. This is amid Italy League leader Salvini cancelling all his rallies today to return to Rome. 5SM’s Di Maio and League’s Salvini may meet today for government talks; according to an official. Should the talks between 5SM and League fail, Cottarelli could be sworn in as early as today.

Meanwhile, with European markets generally well in the green, one outlier has emerged: Germany’s DAX, which is lower on the day pressured by the stronger euro, which was boosted by the fastest European inflation in more than year…

… as well as President Trump’s threat to impose tariffs on European steel and aluminum imports as soon as tomorrow, driving Europe to prepare for a “trade brawl”, with sentiment especially shaky among the auto sector.

Incidentally, Deutsche Bank’s Jim Reid had an apt comment on Europe’s rising inflation at a time when the Italian crisis sent German bond yields sharply lower:

The most delicious irony about the last 48 hours is that a day after Italy drove German yields back down towards rock bottom levels, along comes a way above consensus German inflation print (2.2% YoY vs 1.8% expected) yesterday. We wrote a quick note on this last night and showed that the gap between German inflation and 2yr and 10yr Bund yields are both within a whisker of record levels with data stretching back to the 1950s. German yields are totally detached from German economic fundamentals.

That said, everyone was euphoric: “The likelihood of new elections in Italy has risen materially and outcomes could be binary while ECB is running out of bullets. We see further downside to our EUR and higher European equity risk premium should spreads widen further,” BofAML analysts wrote.

As such today’s market tension will be one between the relief rally from the lack of further bad news out of Italy (for now) offset by the threat of the Spanish political overhaul and Europe’s response to Trump’s tariffs.

Earlier in the session, Asian stocks posted their first sgain in three days with the MSCI Asia Pacific index rising 0.8%, while Australian and Japanese government bonds were little changed, and the yen was modestly stronger on month-end flows. Chinese stocks rallied after a surprising uptick in factory PMI, while the yuan rose as PBOC strengthens CNY fixing first time in six days even as it injected nearly 200 billion yuan in the financial system with a daily reverse repo.

Also overnight, China Mofcom said China is not willing to see an escalation in trade tensions with US, while it added that the measures against China are against WTO rules and that China reserves the right to respond with countermeasures. In other news, China Mofcom said that China will release a new negative list on foreign investment by June 30th at the latest, which will include measures to relax or drop restrictions on sectors including energy, resources and transportation.

Amid political and trade turbulence, the next focus for traders may well be the U.S. jobs report on Friday, the last one before the Federal Reserve meets next month, when it’s expected to lift interest rates for the seventh time since the end of 2015. Morgan Stanley Chief Executive Officer James Gorman said the Fed is unlikely to be dissuaded from pursuing its path of monetary tightening as a result of recent volatility in financial markets.

In macro, the euro enjoyed support from the crosses and rose for a second day versus the dollar as Italian bond yields continued to decline. The common currency stayed around the day’s high of 1.1724 after flash euro-zone  inflation data beat the highest estimate while the yen reversed earlier gains as London came to the market. The pound gained for the second day, rising beyond 1.33 against the dollar, benefiting from an improvement in euro- area investor sentiment. In EM, the Indonesian rupiah led a broader emerging-market currency rally after Bank Indonesia raised the benchmark interest rate for a second time in less than two weeks on Wednesday and flagged more increases to counter a selloff in the nation’s currency and bonds.

In rate, US 10Y Treasury yields were modestly higher, rising about 1 basis point, to 2.873%.

In overnight central banks news, Jonathan Haskel has been nominated to the BoE’s MPC by the Treasury replacing hawkish McCafferty. SNB’s Zurbrugg says current monetary policy takes into account of fragility in FX markets.

In geopolitical developments, President Trump is to impose metal tariffs on Canada, Mexico and EU, according to reports in Washington Post. US Commerce Secretary Ross says that US steel and aluminium tariffs on EU are to be announced before markets open or after markets close today; adding that US does not want a trade war. Trump has also told French President Macron that he would block German premium cars from entering the US market.

In commodities, Brent (-0.6%) and WTI (-0.4%) gradually extended losses on the day following the latest API crude inventory printing a surprise build in headline crude stockpiles. Elsewhere, Gold (+0.2%) trades marginally higher as it tracks the greenback following the uneventful Asia-Pac session. Meanwhile,  base metals (with the exception of copper) were boosted by a strong Chinese manufacturing PMI reading with Shanghai nickel soaring to fresh three-year highs and London zinc higher by 0.8%. On the trade front, US Secretary Wilbur Ross said that US steel and aluminium tariffs on EU will be announced as early as today, before US markets open or after markets close.

Expected data include jobless claims and personal income. Costco, Dollar General, VMware, Workday, and Lululemon are among companies reporting earnings.

Bulletin Headline Summary from RanSquawk

  • BTPs recovering as tensions calm in Italy, with talks set to resume later in the day; EZ CPI provides no shocks
  • Focus set on Spanish no-confidence debate, as Cuidadanos ahead in polls and PP collapses to 4th
  • Looking ahead, highlights include, US personal consumption and PCE price index, Chicago PMI, Canadian GDP and DoEs

Market Snapshot

  • S&P 500 futures little changed at 2,723.75
  • STOXX Europe 600 up 0.2% to 386.23
  • MXAP up 0.9% to 172.10
  • MXAPJ up 1% to 562.53
  • Nikkei up 0.8% to 22,201.82
  • Topix up 0.7% to 1,747.45
  • Hang Seng Index up 1.4% to 30,468.56
  • Shanghai Composite up 1.8% to 3,095.47
  • Sensex up 0.5% to 35,074.00
  • Australia S&P/ASX 200 up 0.5% to 6,011.88
  • Kospi up 0.6% to 2,423.01
  • German 10Y yield rose 3.1 bps to 0.403%
  • Euro up 0.4% to $1.1714
  • Italian 10Y yield fell 24.5 bps to 2.646%
  • Spanish 10Y yield fell 3.4 bps to 1.499%
  • Brent futures down 0.4% to $77.19/bbl
  • Gold spot up 0.2% to $1,304.06
  • U.S. Dollar Index down 0.3% to 93.83

Top Overnight News from Bloomberg

  • President Trump plans to announce as soon as Thursday the imposition of tariffs on steel and aluminum imports from Canada, Mexico, and EU, the Washington Post reports, citing three unidentified people familiar with the plan
  • Italian President Sergio Mattarella is ready to appoint a new premier, but he’s still waiting on a signal from the populists who denounced him as an enemy of democracy.
  • A top North Korean official met Secretary of State Mike Pompeo for dinner in New York on Thursday night, the highest-level talks between the two countries on American soil in 18 years as the Trump administration works to prepare for a summit in Singapore with the isolated regime. Here’s where things stand on the Trump-Kim summit
  • China’s official factory gauge rose more than estimated as export orders accelerated, signaling that the expansion continues to be driven by global trade
  • The Socialists, Spain’s biggest opposition party, are close to lining up the support they need to oust Prime Minister Mariano Rajoy in a no- confidence vote Friday, according to people briefed on the talks
  • JPMorgan Chase & Co. won the title of world’s largest currency trader by market share, ending Citigroup Inc.’s four- year run at the top, according to a Euromoney Institutional Investor Plc survey that featured a new methodology. XTX Markets, a computerized trading firm, placed third, with 7.4 percent
  • Humming factories lifted China’s official manufacturing gauge above economist estimates in May, following an acceleration of industrial production in April. Even so, gauges of demand across property, investment and consumption indicate weakness is in store
  • The Swiss economy started the year with faster-than- expected growth, helped by consumers and investment spending
  • As all Asian emerging-market currencies but one head for a losing month, consistency in central bank policy may have been an element that dictated their fortunes
  • Europe’s biggest debt collector, Intrum AB, says it doesn’t see the political turmoil in Italy hurting its business

Asian markets traded positive across the board as the regional bourses follow suit from the rebound seen in their global counterparts after political fears surrounding Italy subsided, while participants also digested strong Chinese PMI data. ASX 200 (+0.4%) was led higher by the energy sector following similar outperformance on Wall St after source reports suggested OPEC and Non-OPEC are not yet ready to fully lift controls and that any adjustment in oil output will be gradual, while Nikkei 225 (+0.8%) was also positive but with gains initially contained after a pullback in USD/JPY and miss on Industrial Production data. Elsewhere, Hang Seng (+0.8%) and Shanghai Comp. (+1.4%) conformed to the positivity with outperformance in mainland China after better than expected Chinese Official Manufacturing and Non-Manufacturing PMIs in which the former data release printed an 8-month high. In addition, officials also did their part to help out with China to further cut import tariffs for consumer goods and will announce a new negative list which would ease investment restrictions on certain sectors, while the PBoC conducted a substantial daily net liquidity injection of CNY 180bln. Finally, 10yr JGBs were lacklustre amid a similar subdued performance in T-Notes, due to a broad recovery in risk sentiment and after weaker demand in today’s 2yr JGB auction. China Mofcom said China is not willing to see an escalation in trade tensions with US, while it added that the measures against China are against WTO rules and that China reserves the right to respond with countermeasures. In other news, China Mofcom said that China will release a new negative list on foreign investment by June 30th at the latest, which will include measures to relax or drop restrictions on sectors including energy, resources and  transportation

Top Asian News

  • BOJ Bond Buying Back Under Scrutiny as Japan’s Yield Halves
  • Alibaba-Backed WeWork Rival Is Said to Seek New Funding Round
  • India’s Growth Rebound Collides With Emerging Market Chaos
  • India’s Central Bank Needs Better Rupee Policy, Modi’s Aide Says

European stocks (Euro Stoxx 50 +0.3%) are largely tracking higher as the tension surrounding Italian politics cools further. The underperforming bourse is the DAX (-0.4%) which is being weighed upon by a possible US import ban on German autos. Large index constituents Daimler (-1.0%), Volkswagen (-1.9%) and BMW (-0.5%) all negative on the day. Spanish banks are seeing positivity as the no confidence vote debate in Spain begins (Santander +1.2% and Banco Bilbao +1.4%), with expectations set on the ousting of Spanish PM Rajoy. Firstgroup collapsing to the bottom of the Stoxx 600 (-14.5%) after the resignation of their CEO

Top European News

  • Italy’s Conte Says Euro Exit Never Raised in Talks: Corriere
  • Italian Woes Fail to Deter Czech Businesses Embracing Euro
  • Euro-Area Inflation Accelerates to Fastest in More Than a Year

In FX, the Greenback is weaker across the board again, and partly due to gains in rival currencies, but also as simmering tit-for-tat tariff threats have resurfaced hot on the heels of yesterday’s mainly sub-forecast US data. Hence, the index has pulled back further from 2018 peaks just above 95.000 to 93.710, while EMs continue their recovery or at least consolidate off all time/multi-year lows. EUR: Back to best G10 performer on more stronger than expected Eurozone inflation data (French, Italian and the pan print), and another downturn in investor concerns regarding the political stalemate in Rome. The single currency has cleared another big figure at 1.1700 and its 10 DMA (1.1690) on the way up to a circa 1.1725 peak, but may now get bogged down by hefty option expiries spanning 1.1700-50. CAD/CHF: Both around 0.2-0.25% up vs the Usd, with the Loonie extending post-BoC gains to 1.2835 and now looking for Canadian GDP data to back up the Central Bank’s more upbeat economic assessment. The Franc has climbed a bit further vs the Usd to around 0.9870, but like Sterling has not kept pace with the Eur after latest SNB comments underlining that the current monetary policy stance is apt for choppy currency market conditions. Note, not much net response to a Swiss retail sales beat or a mixed GDP release. JPY:  Still stuck in a narrow band vs the Usd just under 109.00, after much weaker than anticipated Japanese IP data and amidst more decent option interest between 108.90-109.00 (1.1 bn).

Commodities are trading mixed today with Brent (-0.6%) and WTI (-0.4%) gradually extending losses on the day following the latest API crude inventory printing a surprise build in headline crude stockpiles. Note we will see the release of the weekly DoE’s today due to the US Memorial Day on Monday. Elsewhere, Gold (+0.2%) trades marginally higher as it tracks the greenback following the uneventful Asia-Pac session. Meanwhile, base metals (with the exception of copper) were boosted by a strong Chinese manufacturing PMI reading with Shanghai nickel soaring to fresh three-year highs and London zinc higher by 0.8%. On the trade front, US Secretary Wilbur Ross said that US steel and aluminium tariffs on EU will be announced as early as today, before US markets open or after markets close.

Looking at the day ahead, we’ll get April personal income and spending reports, weekly initial jobless claims, May Chicago PMI and April pending home sales data. In the morning the Fed’s Bullard will speak in Tokyo again, while in the evening the Fed’s Bostic is due to speak. G7 finance ministers and central bankers are also due to gather in Whistler with the topic of the conference being “Investing in Growth that Works for Everyone”. Good luck with that!!

US Event Calendar

  • 8:30am: Personal Income, est. 0.3%, prior 0.3%; Personal Spending, est. 0.4%, prior 0.4%
  • PCE Core MoM, est. 0.1%, prior 0.2%; PCE Core YoY, est. 1.8%, prior 1.9%
  • 8:30am: Initial Jobless Claims, est. 228,000, prior 234,000; Continuing Claims, est. 1.73m, prior 1.74m
  • 9:45am: Chicago Purchasing Manager, est. 58.3, prior 57.6;
  • 9:45am: Bloomberg Consumer Comfort, prior 55.2
  • 10am: Pending Home Sales MoM, est. 0.4%, prior 0.4%; Pending Home Sales NSA YoY, prior -4.4%
  • 12:30pm: Fed’s Bostic Speaks in Moderated Q&A in Orlando
  • 1pm: Fed’s Brainard Speaks on Economic and Monetary Policy Outlook
  • 8:30pm: Fed’s Kaplan Speaks in Dallas

DB’s Jim Reid concludes the overnight wrap

The most delicious irony about the last 48 hours is that a day after Italy drove German yields back down towards rock bottom levels, along comes a way above consensus German inflation print (2.2% YoY vs 1.8% expected) yesterday. We wrote a quick note on this last night and showed that the gap between German inflation and 2yr and 10yr Bund yields are both within a whisker of record levels with data stretching back to the 1950s. German yields are totally detached from German economic fundamentals.

Whether Italian yields are totally detached from fundamentals in the near-term is at the mercy of their politicians and yesterday was a better day on that front as we’ll see below. However the longer-term stresses have lingered for years and will likely continue for many more to come. On that, yesterday we also published a ‘best of’ note of all the Italy related charts we’ve published in our annual Long Term Asset Return Studies over the last few years. We regularly return to Italy in this note due to how remarkable some of the long-term charts look for this country. See the link here.

Before we work out where we are on Italy it’s worth making a couple of additional points on German inflation. HICP at 2.2% YoY was the joint highest print since April 2012 so it’s wrong to say there is no inflation is Europe especially as Spanish HICP climbed back above 2% YoY yesterday (1.7% expected). Although much of the increase was energy related it wasn’t all from commodities. Today we see the same for France, Italy and the Euro area, so some eyes should be diverted in that direction. It’s easy to miss in this ongoing Italian saga.

Anyway onto Italy. The news-flow calmed yesterday and culminated in the President providing more time for the Five-Star and League parties to try to form a government. Meanwhile the PM designate Cottarelli also said possibilities had emerged “for the birth of a political government” (rather than a technocrats led government). Further, the 5Star leader Di Maio noted the 5SM and League Party never sought Euro exit and that he was willing to find a new finance minister who was “the same level of the excellent Professor Savona”. Conversely, the League leader Salvini didn’t seem to be that supportive as he said “either the government is the one proposed or there is no government” and in terms of “Di Maio’s overture? We’re not at the market (for a new deal)” while he hoped for elections “as soon as possible, but not at the end of July”. Elsewhere, the Italian government sold €3.6bn of 5 and 10y bonds yesterday and although the demand was mixed the fact that markets absorbed them seemed to help sentiment.

Following on, markets yesterday went into a partial but significant reversal of Tuesday’s sell off, as Italian bonds snapped back, equities firmed and safe haven core bonds sold off. In government bonds, the yields on 2y and 10y Italian BTPs dropped -110bp and -27bp respectively, albeit still up 73bp and 21bp from Monday. Meanwhile, core 10y bond yields rose 4-11bp (UST +7.4bp; Gilts +6bp) with Bunds leading the losses following its above market CPI print (+11bp). Notably, the 10y spread between BTPs and Bunds dropped 38bp yesterday to 251bp while the 5y sovereign CDS on Italy also narrowed -15bp to 254bp.

Elsewhere, European and US equities both rebounded given the risk on tone. Key European bourses rebounded 0.3%-1% (Stoxx 600 +0.27%; DAX +0.93%; FTSE +0.75%) while the Italian market jumped +2.09% to now be only modestly lower than Monday’s close (-0.6%). The S&P rallied +1.27%, which now makes it 34 days in 2018 when the index has moved by at least 1% up or down (just under a third of all sessions). This compares to 2017 which only had 8 such occasions when this happened (3% of all trading days). Within the S&P, all sectors were up with gains led by the energy (+3.1%), financials and the health care sector. The former was boosted by a stronger oil price as WTI oil was up for the first time in 6 days (+2.2% to $68.21/bbl), in part as Reuters reported that OPEC plans to stick with its output cuts until the end of 2018 while further adjustments to offset any supply shortage would be gradual.

This morning in Asia, markets are rebounding after the positive European/ US leads. Across the region, the Nikkei (+0.82%), Kospi (+0.48%), Hang Seng (+0.76%) and Shanghai Comp. (+1.38%) are up modestly. Datawise, China’s May manufacturing and non-manufacturing PMIs both nudged up mom and were above expectations at 51.9 (vs. 51.4 expected) and 54.9 (vs. 54.8 expected) respectively. Elsewhere, the prep work for a potential US / North Korea leaders’ summit have moved a step closer as a top North Korean official (Kim Yong Chol) arrived at NY yesterday for two days of talks with the Secretary of State Pompeo.

Now recapping other markets performance from yesterday. The US dollar index fell for first time in four days (-0.79%) while the Euro regained +1.08% as Italian fears eased. Elsewhere, precious metals advanced modestly following the dollar’s weakness (Gold +0.20%; Silver +0.86%) and other base metals were mixed (Copper -0.12%; Zinc +1.48%; Aluminium +0.03%).

Moving onto trade. The Washington Post has cited unnamed sources that the Trump administration plans to announce 25% tariffs on imported steel / aluminium on the EU if negotiations were not satisfactory ahead of tomorrows’ deadline.  Meanwhile after yesterday’s announcement that the US will implement 25% tariffs on $50bn worth of Chinese imports shortly after 15th June, our US and China economists have updated their views on the potential impacts.  Notably, DB’s Zhiwei Zhang pointed out that the persistent trade tension likely makes China cautious in dealing with its domestic economic problems. In particular, the government seems reluctant to crack down further on the booming property market in some cities while the new rule on wealth management businesses has been revised with a longer grace period into 2020. Overall, he believes economic momentum likely remains stable, with potential upside risk to property and infrastructure investments over the next few months.

Over in Spain, the no confidence vote on PM Rajoy proposed by the Socialists Party (2nd largest opposition) is scheduled for tomorrow. Unnamed sources told Bloomberg that the Socialists are close to achieving sufficient votes, although other parties such as the PNV (the Basque Nationalists) and Catalan separatists have not made a firm decision yet.

Back onto Italy, Nick Burns in my team published a note showing that HY Italian issuers are the largest contributor (across non-financials and financials) to the EUR HY index. Nick also looks at how HY Italian names have performed against the non-Italian names recently as well as trying to put the moves in the context of the relative performance we saw around the European sovereign crisis. Of particular interest is that many Italian HY bonds now trade in line or at lower yields than Italian government bonds. In the near-term this might reverse through falling government bond yields. But if that’s not the case then some of those Italian HY names will start to look expensive on a relative basis.

Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the May ADP employment change number was below market at 178k (vs. 190k expected) and the prior month’s reading was downwardly revised by 41k. There was some talk within the report about companies struggling to hire as we increasingly hit labour shortages. The second reading on Q1 GDP was revised down by 0.1ppt to 2.2% qoq. In the details, consumption (-0.1ppt), inventories (-0.3ppt) and residential investment (-2ppt) were revised down while non-residential fixed investment was revised up 3.1ppt.

DB’s Alan Ruskin noted these revisions were on net modestly positive for underlying growth momentum, as less inventory build and stronger capex should support growth momentum in the coming quarters. As evidence of this, final sales to domestic purchasers was revised up 0.3ppt. The 1Q Core PCE was also revised 0.2ppt lower to 2.3% qoq. Elsewhere, the April wholesale inventories was flat mom (vs. 0.5% expected) while the April advance goods trade deficit was narrower than expected (-$68.2bln vs. -$71bln expected).

The latest Fed Beige book noted that: i) more than half of the Districts reported a pickup in industrial activity and a third of the Districts classified manufacturing activity as “strong”, ii) labour market conditions have “remained tight across the country” but in aggregate, wage increases were still described as “modest in most Districts”, while iii) on inflation “some Districts noted that their retail contacts were more able to pass along price increases to their customers than in the recent past”

In Germany, the May unemployment rate edged down 0.1ppt mom to a fresh record low of 5.2% (vs. 5.3% expected) while the April retail sales rebounded more than expected after four consecutive months of decline to +2.3% mom (vs. 0.5% expected). Moving along, the Euro zone’s May economic confidence was 112.5 (vs. 112 expected) while  the final reading for the consumer confidence index was unrevised at 0.2. Over in France, the 1Q GDP was revised 0.1ppt lower to 0.2% qoq, leading to an annual growth of 2.2% yoy. Meanwhile, consumer spending for April was quite weak, falling 1.5% mom to be up 0.2% yoy (1.8% expected).

Looking at the day ahead, inflation data should be the big focus today with the May CPI report for the Euro area (core CPI of 1% yoy expected) and the April PCE report in the US both due (core PCE of 1.8% yoy expected). Away from that, May CPI for France and Italy and April money and credit aggregates data in the UK are all due this morning. In the US we’ll also get April personal income and spending reports, weekly initial jobless claims, May Chicago PMI and April pending home sales data. In the morning the Fed’s Bullard will speak in Tokyo again, while in the evening the Fed’s Bostic is due to speak. G7 finance ministers and central bankers are also due to gather in Whistler with the topic of the conference being “Investing in Growth that Works for Everyone”. Good luck with that!!

END

3. ASIAN AFFAIRS

i)THURSDAY MORNING/WEDNESDAY NIGHT: Shanghai closed UP 54.03 points or  1.78%   /Hang Sang CLOSED UP 411.77 points or 1.37%    / The Nikkei closed UP 183.30 POINTS OR 0.83% /Australia’s all ordinaires CLOSED UP .49%  /Chinese yuan (ONSHORE) closed UP at 6.4070/Oil UP to 67.80 dollars per barrel for WTI and 77.50 for Brent. Stocks in Europe OPENED ALL GREEN EXCEPT GERMAN DAX/.  ONSHORE YUAN CLOSED UP AT 6.4070 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.4038/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

3 b JAPAN AFFAIRS

end

c) REPORT ON CHINA/HONG KONG

end

4. EUROPEAN AFFAIRS

Europe/USA

Trump unable to win any concessions from the corrupt EU.  Now Trump will unleash his steel and aluminum tariff equal to 25% on the EU.  The EU will retaliate

(courtesy zerohedge)

8. EMERGING MARKET

BRAZIL

This could be a death blow to Brazil and they may in a short order of time default as their GDP estimate is down 38% due to that awful nationwide strike

(courtesy zerohedge)

Brazil Commodities Slammed As Nationwide Strike Intensifies,

GDP Estimate Down 38%

  • Brazil’s nationwide truck driver strike has entered its 10th day
  • Key exports have been severely affected, from beef and soybeans to coffee and cars
  • Bloomberg cuts GDP growth estimate from 3.2% to 2%, a decline of 37.5%
  • Concessions made to truckers will cost the Brazilian government 14.4b Real (US$3.85 Billion) throughout the remainder of 2018
  • Lower GDP may reduce revenue by additional 20b-25b reais, or 0.25% of GDP, could force govt to cut expenditures further by 3b-10b reais to meet 159b-real fiscal deficit target (Bloomberg)
  • Brazilian oil workers began a 72-hour strike on Wednesday, and have demanded that Petrobras fire CEOP Petro Parente while permanently lowering fuel prices
  • Millions of chickens have been prematurely slaughtered as feed failed to reach farmers

The situation in Brazil has gone from bad to worse, as the nationwide trucker strike has expanded into a strike by oil workers, who began a 72-hour strike on Wednesday – affecting several rigs, plants, refineries and ports in the latest challenge for state-owned oil firm Petroleo Brasileiro SA, whose shares have fallen roughly 30% in two weeks. Brazil produces approximately 2.1 million barrels of oil per day, making it Latin America’s largest producer of crude.

The oil worker strike is yet another blow to conservative President Michel Temer, as Brazil’s political climate is fiercely polarized.

Late on Tuesday, Reuters reported that Temer was considering an overhaul of a market-based fuel pricing policy at Petrobras, which could provoke even more investor flight. Temer’s office said in a Wednesday morning statement that he would preserve the policy.

The oil sector strike included workers on at least 20 oil rigs in the lucrative Campos basin of 46 operated by Petrobras, as the company is known, according to FUP, Brazil’s largest oil workers union. Petrobras said any disruption would not have an immediate major impact on its production or overall operations. –Reuters

The strike has crippled virtually every major industry countrywide, while key commodities such as soybeans, beef, coffee and cars have been severely affected.

Most export terminals ran out of soybeans for shipments scheduled for Tuesday and Wednesday, Lucas Trindade de Brito, manager at export group Anec, said in a telephone interview.

Among Brazil’s 109 beef plants, 107 suspended operations and two are running below 50% of capacity, exporter group Abiec said in an email.

Exports of 40,000 tons of beef haven’t been shipped as planned, and thousands of trucks loaded with perishable products, including boned meat, are halted on roads.  –Bloomberg

Alas, the strike has also triggered the premature slaughter of millions of chickens after vital feed failed to reach farmers.

The government announced Sunday that it will cut taxes on diesel fuel, while freezing the price for 60 days followed by a monthly adjustment going forward. The measures will reportedly cost around 9.5 billion reais (US$2.6 billion) through the end of the year, which led Bloomberg to cut GDP growth estimates from 3.2% to 2%.

The measures will cost about 9.5 billion reais ($2.6 billion) through the end of the year, Finance Minister Eduardo Guardia said Monday at a news conference. Part of that bill will be covered by using a government contingency fund and by erasing payroll-tax cuts enjoyed by some industries, but other, as-yet undisclosed, measures will also be required, Mr. Guardia said.

“The loss of tax revenue will need to be compensated,” he said. –WSJ

Meanwhile, as hundreds of demonstrations rage across the country, many are calling for the country to return to a dictatorship that ran for two decades until 1985.

“We need help from the military to resolve our problems in Brasília, to remove the bandits from there and to put the house in order,” said one driver, Gabriel Berestov, 44.

José Lopes, leader of the Brazilian Truck Drivers’ Association, warned on Monday that the strike movement had been hijacked. “There is a very strong group of interventionists,” he told reporters. “They are people who want to bring down the government.”

The subject ricocheted around Brazil. On Tuesday, Temer told foreign journalists he saw “zero risk” of a military intervention. His minister of institutional security, Gen Sergio Etchegoyen, said the armed forces had no intention of intervening and that the idea was a “subject from the last century”.

The theme is deeply controversial in Brazil, which lived under a military dictatorship for 21 years, during which hundreds of regime opponents were executed and thousands more tortured. –The Guardian

Around 15-20% of Brazilians support military intervention, according to Marcus Melo, professor of political science at the Federal University of Pernambuco.

“Those who are still mobilising are militants and outliers,” he said. “We are in a situation of social convulsion.

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 1.1685 UP .01048/ 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:///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES GREEN EXCEPT GERMANY 

USA/JAPAN YEN 108.85   UP 0.127  (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 1.3338 UP  0.0055  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2827 DOWN .0065 (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 148 basis points, trading now ABOVE the important 1.08 level RISING to 1.1685; / Last night Shanghai composite CLOSED UP 54.03 POINTS OR 1.78%  /Hang Sang CLOSED UP411.77 POINTS OR 1.37% /AUSTRALIA CLOSED UP .49% / EUROPEAN BOURSES  ALL GREEN EXCEPT GERMANY/

The NIKKEI: this THURSDAY morning CLOSED UP 183.30 OR 0.83%

Trading from Europe and Asia

1/EUROPE OPENED ALL GREEN EXCEPT GERMANY

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 411.77 POINTS OR 1.37%  / SHANGHAI CLOSED UP 54.03 POINTS OR 1.78%  /

Australia BOURSE CLOSED UP .49%

Nikkei (Japan) CLOSED UP 183.30 POINTS OR 0.83%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1305.15

silver:$16.56

Early THURSDAY morning USA 10 year bond yield: 2.86% !!! UP 1 IN POINTS from FRIDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.03 UP 1  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early  THURSDAY morning: 93.96 DOWN 11  CENT(S) from FRIDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now your closing THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.981% DOWN 7  in basis point(s) yield from WEDNESDAY/

JAPANESE BOND YIELD: +.04%  UP 6/10   in basis points yield from WEDNESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.503% DOWN 3  IN basis point yield from WEDNESDAY/

ITALIAN 10 YR BOND YIELD: 2.794  DOWN 11  POINTS in basis point yield from WEDNESDAY/

the Italian 10 yr bond yield is trading 130 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO +.341%   IN BASIS POINTS ON THE DAY

END

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1673 UP .0006(Euro UP 6 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 108.73 UP 0.050 Yen DOWN 5 basis points/

Great Britain/USA 1.3288 UP .0005( POUND UP 5 BASIS POINTS)

USA/Canada 1.2971 UP  .0078 Canadian dollar DOWN 78 Basis points AS OIL FELL TO $67.28

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was UP 6 to trade at 1.1673

The Yen FELL to 108.73 for a LOSS of 5 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 GAINED 5 basis points, trading at 1.3288/

The Canadian dollar LOST  78 basis points to 1.2971/ WITH WTI OIL FALLING TO : $67.28

The USA/Yuan closed AT 6.410
the 10 yr Japanese bond yield closed at +.040%  UP 5/10  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield DOWN 1   IN basis points from WEDNESDAY at 2.844 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.006  DOWN 2      in basis points on the day /

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

Your closing USA dollar index, 94.07  UP 1 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 11.37 POINTS OR 0.15%
German Dax :CLOSED DOWN 178.87 OR 1.40%
Paris Cac CLOSED DOWN 28.95 POINTS OR 0.53%
Spain IBEX CLOSED DOWN 100.70 POINTS OR 1.05%

Italian MIB: CLOSED DOWN 13.64 POINTS OR 0,06%

The Dow closed DOWN 251.94POINTS OR 1.02%

NASDAQ closed UP  620.34 OR .89%4.00 PM EST

WTI Oil price; 67.28  1:00 pm;

Brent Oil: 77.28 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 62.35 UP 26/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 26 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO +.341% 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:$67.10

BRENT: $77.72

USA 10 YR BOND YIELD: 2.86% the dropping yields signify markets are in turmoil

USA 30 YR BOND YIELD: 3.03%/

EURO/USA DOLLAR CROSS: 1.1689 up .0020  (up 20 BASIS POINTS)

USA/JAPANESE YEN:108.80 up 0.0503 YEN down 5 BASIS POINTS/ .

USA DOLLAR INDEX: 93.98 down 9 cent(s)/dangerous as the HIGHER dollar IS DESTROYING THE EMERGING MARKETS.

The British pound at 5 pm: Great Britain Pound/USA: 1.3281 DOWN 0.00031  (FROM YESTERDAY NIGHT DOWN 3 POINTS)

Canadian dollar: 1.2956 DOWN 64 BASIS pts

German 10 yr bond yield at 5 pm: +341%


VOLATILITY INDEX:  15.53  CLOSED  UP 0.49

LIBOR 3 MONTH DURATION: 2.300%  .

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

TRADING IN GRAPH FORM FOR THE DAY

Did You Sell In May?

May-hem: Small Caps Surge Most Since US Election As Crypto, Credit, & The Yield Curve Crash

It all started off quite calmly and then…

Or put another way…

May was quite a month. Here’s the high- (and low-) lights…

  • All major US Equity indices rose in May
  • Small Caps surged over 6% – best month since Nov 2016 (US election)
  • General Motors best month since Oct 2015 (thanks to Softbank)

  • All thanks to biggest short squeeze since Nov 2016 (US election)

  • S&P Financial stocks dropped for the 4th straight month – longest losing streak since Sept 2011
  • European Bank stocks worst month since June 2016 (Brexit) – lowest close since Nov 2016

  • Italian 2Y Yields biggest absolute monthly spike since Nov 2011
  • Italian 10Y Yields biggest absolute monthly spike in history

  • 2Y TSY Yield’s biggest monthly plunge since June 2016 (Brexit) – the first monthly yield compression since Aug 2017
  • 10Y TSY Yield’s biggest monthly drop since Aug 2017

  • US 2s10s Spread tumbled to flattest since Sept 2007
  • US 2s30s Spread tumbled to flattest since Aug 2007 (flatter for 15 of the last 18 months)

  • US HY Credit Risk biggest spread widening since Aug 2017

  • The Dollar Index surged to its best month since Nov 2016 (US election)

  • Euro and Cable were the worst performers…

  • Cryptocurrencies ugly for 3rd of last 5 months

  • WTI dropped for only the 2nd month in the last 9 months
  • Gold fell for 3rd of last 4 months – lowest since Nov 2017
  • Silver rose 0.75% in May – its first monthly gain since January

May saw the best combined stock and bond performance since Feb 2017…

Finally, May was an ugly month for US macro data and the Fed balance sheet…

*  *  *

The holiday-shortened week has been volatile in equity-land as Italy fears faded, replaced by Spanish panic and trade turmoil…

The S&P broke below its 100DMA…

European VIX remains above US VIX for now…

Italian banks managed some late gains with BMPS now green for the week…

But US banks continues to fade…

FANG stocks continues to rally…

Treasury yields continues to slide today – apart from the 2Y which ended modestly higher…

The Dollar Index rallied after Trump’s tariffs headlines pushing back to unchanged for the week…

Cryptocurrencies managed modest gains today back to unchanged on the week…

All commodities are back in the red for the week now…

We leave you with the following…

And this…

end

MARKET DATA/REPORTS

The USA savings rate is back to record lows as Americans are having difficulty savings due to the higher costs to stay alive;  this is the 28th month in a row where spending trumped savings

(courtesy zerohedge)

Savings Rate Tumbles Back Near Record Lows As

Americans Spend More Than They Make For

28th Month In A Row

While US personal incomes grew, as expected, at 0.3% MoM, Americans resumed spending fare more than they make (increasing 0.6% MoM in April). For the 28th month in a row, YoY growth in spending has outpaced incomes, sending the savings rate back down to just 2.8, the lowest since the debt-funded holiday spending spree of December 2017, and just shy of record lows.

Spending YoY is the highest since April 2017:

Adjusted for inflation, real consumption rose 0.4%, double the median projection of 0.2%. The Commerce Department said spending for gasoline and other energy goods, as well as household utilities, were leading contributors to the monthly increase in real outlays. Real durable goods spending, rose 0.3% after a 1.9% increase in the prior month; nondurable goods advanced 0.4% for a second month. Outlays on services, adjusted for inflation, rose 0.4% after a 0.3% gain in prior month.

On the income side:

  • Private sector wages rose 4.9% YoY vs 5.0% in March
  • Government wages accelerated to +2.6% YoY, vs 2.5% in March

And at the end of all this, spending more than you’re making sent the savings rate back down near record lows.

Meanwhile, looking at the inflation side of things, the PCE Deflator, or headline spending – the Fed’s preferred inflation indicator – rose 2.0% Y/Y, in line with expectations, while core PCE rose 1.8%, a drop from last month’s original 1.9% print which was however revised lower to 1.8%. Yet curiously, on a monthly basis core PCE rose 0.2%, or more than the 0.1% expected.

END

Soft data Chicago Mfg PMI rebounds.  This goes in complete contrast to hard data

(courtesy zerohedge)

Chicago PMI Survey Rebounds Despite Slump In ‘Hard’ Data

After tumbling through March and stabilizing in April, Chicago PMI rebounded in May printing a better-than-expected 62.7, despite the ongoing slump in ‘hard’ actual economic data.

May’s PMI print was above the highest analyst forecast (forecast range 56.6 – 62 from 30 economists surveyed)

Under the hood, everything is awesome:

  • Prices paid rose at a slower pace, signaling expansion
  • New orders rose at a faster pace, signaling expansion
  • Employment rose at a faster pace, signaling expansion
  • Inventories rose at a faster pace, signaling expansion
  • Supplier deliveries rose at a faster pace, signaling expansion
  • Production rose at a faster pace, signaling expansion
  • Order backlogs rose and the direction reversed, signaling expansion
  • Business activity has been positive for 12 months over the past year.
  • Number of components rising vs last month: 6
 end
The higher interest rates have now caused all 3 levels of housing sales to slump: New homes, existing homes and pending home sales
(courtesy zero hedge)

Housing Rebound Dies: Higher Rates Spark New, Existing, & Pending Home Sales Slump

After disappointment in new- and existing-home-sales, pending home sales in April tumbled 1.3% MoM (missing expectations of a 0.4% gain – and well below the lowest analysts estimate).

Contract signings to purchase previously owned U.S. homes unexpectedly declined in April, underscoring the housing market’s challenge centered around a persistent inventory shortage, according to data released Thursday from the National Association of Realtors in Washington.

Signings dropped in three of four regions, led by a 3.2 percent decline in the Midwest; fell 1 percent in the South and 0.4 percent in the West, while sales agreements were unchanged in the Northeast. Pending home sales index for West was lowest since June 2014.

A limited number of for-sale properties is keeping prices elevated at a time when mortgage rates have climbed to an almost seven-year high.

“The unfortunate reality for many home shoppers is that reaching the market will remain challenging if supply stays at these dire levels,” Lawrence Yun, NAR’s chief economist, said in a statement.

At the same time, “demand for buying a home is very robust,” Yun said. “Listings are typically going under contract in under a month, and instances of multiple offers are increasingly common and pushing prices higher.”

As a reminder, economists consider pending sales a leading indicator because they track contract signings. Purchases of existing homes are tabulated when a deal closes, typically a month or two later

And housing does not look like it’s going to get a bounce anytime soon…

end

SWAMP STORIES

I guess you are all aware of the Roseanne Barr story where she was fired for racial slurs.  Now Trump wants an apology from Disney’s Iger for offending millions of people.

(courtesy zero hedge)

Trump Demands Apology From Disney’s Iger For

“Offending Millions Of People”

Following on from his tweet yesterday, accusing ABC of a double standard in its decision to cancel the hit sitcom ‘Roseanne’ – after Roseanne Barr, who is a vocal Trump supporter, came under fire for a racist tweet she sent earlier in the week – where he exclaimed, “Bob Iger of ABC called Valerie Jarrett to let her know that ‘ABC does not tolerate comments like those’ made by Roseanne Barr. Gee, he never called President Donald J. Trump to apologize for the HORRIBLE statements made and said about me on ABC. Maybe I just didn’t get the call?”

Donald J. Trump

@realDonaldTrump

Bob Iger of ABC called Valerie Jarrett to let her know that “ABC does not tolerate comments like those” made by Roseanne Barr. Gee, he never called President Donald J. Trump to apologize for the HORRIBLE statements made and said about me on ABC. Maybe I just didn’t get the call?

President Trump has unleashed a more damning tweet this morning, demanding an apology from the Disney CEO: “Iger, where is my call of apology? You and ABC have offended millions of people…” and recalling more of the one of the biggest fake news stories of his presidency“How is Brian Ross doing? He tanked the market with an ABC lie, yet no apology. Double Standard!”

Donald J. Trump

@realDonaldTrump

Iger, where is my call of apology? You and ABC have offended millions of people, and they demand a response. How is Brian Ross doing? He tanked the market with an ABC lie, yet no apology. Double Standard!

As The Hill reports, White House press secretary Sarah Huckabee Sanders said Wednesday that “nobody is defending her comments,” which she called “inappropriate.”

But she said Trump is frustrated by a “double standard” in the media.

She rattled off a list of grievances with Disney, which is the parent company of ABC and ESPN, citing anti-Trump comments made by personalities such as Jemele Hill, Keith Olbermann, Joy Behar and Kathy Griffin.

“The president is pointing to the hypocrisy in the media, saying that [sic] the most horrible thing about this president and nobody addresses it,” Sanders said.

Hill was suspended by ESPN in part due to her tweets calling Trump a “white supremacist” and Griffin was fired by CNN, which is not affiliated with Disney, for tweeting a gruesome image of Trump.

END

I will  see you FRIDAY night

HARVEY

 

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