JUNE 6/GOLD UP $1.30 TO $1297.20/SILVER UP 14 CENTS TO $16.66/THE DOLLAR CONTAGION IS SPREADING TO EMERGING MARKETS; BOTH BRAZIL AND INDIA HAS SEVERE PROBLEMS/USA PRODUCTIVITY REPORT DISAPPOINTS THE STREET/ITALIAN YIELDS SPIKE TO 2.93%/THREE BIG SWAMP STORIES FOR YOU TONIGHT/

 

GOLD: $1297.20 UP  $1.30 (COMEX TO COMEX CLOSINGS)

Silver: $16.66 UP  14 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1296.60

silver: $16.68

For comex gold:

JUNE/

NUMBER OF NOTICES FILED TODAY FOR JUNE CONTRACT:109 NOTICE(S) FOR 10900 OZ.

TOTAL NOTICES SO FAR 1794 FOR 179400 OZ (5.5800 tonnes)

For silver:

JUNE

17 NOTICE(S) FILED TODAY FOR

85,000 OZ/

Total number of notices filed so far this month: 787 for 3,935,000 oz

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Bitcoin: BID $7575/OFFER $7675: UP $6(morning)

Bitcoin: BID/ $7574/offer $7674: UP $8  (CLOSING/5 PM)

end

First Shanghai gold fix comes at 10 pm est

The second Shanghai gold fix:  2:15 pm

First Shanghai gold fix gold: 10 pm est: 1300.65

NY price  at the same time: 1297.35

PREMIUM TO NY SPOT: $3.30

Second gold fix early this morning: 1302.85

USA gold at the exact same time:1298.65

PREMIUM TO NY SPOT:  $4.20

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 CONSIDERABLE 1531 CONTRACTS FROM  210,074  UP TO 211,605 ACCOMPANYING YESTERDAY’S  10 CENT RISE 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 SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP :  2568 EFP’S FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE OF 2568 CONTRACTS. WITH THE TRANSFER OF 2568 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 2568 EFP CONTRACTS TRANSLATES INTO 8.625 MILLION OZ  ACCOMPANYING:

1.THE 10 CENT RISE IN  SILVER PRICE  AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR JUNE COMEX DELIVERY. (3.945 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 JUNE: 

6039 CONTRACTS (FOR 4 TRADING DAYS TOTAL 6039 CONTRACTS) OR 30.195 MILLION OZ: (AVERAGE PER DAY: 1509 CONTRACTS OR 7.5487 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  30.195 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 2.01% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:            1,344.54      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 STRONG SIZED INCREASE IN COMEX OI SILVER COMEX OF 1531 WITH THE 10 CENT RISE 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 2568 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:  2568 EFP CONTRACTS FOR JULY, AND ZERO FOR ALL OVER MONTHS   FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 2568). TODAY WE GAINED A HUGE 4099 TOTAL OI CONTRACTS  ON THE TWO EXCHANGES: i.e.2568 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH AN INCREASE OF 1531  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE 10 CENT RISE IN PRICE OF SILVER  AND A CLOSING PRICE OF $16.52 WITH RESPECT TO FRIDAY’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. 1.058 MILLION OZ TO BE EXACT or 151% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JUNE MONTH/ THEY FILED AT THE COMEX: 17 NOTICE(S) FOR 85,000 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  (3.945 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 1703 CONTRACTS DOWN TO 450,641 DESPITE THE GAIN IN THE GOLD PRICE/YESTERDAY’S TRADING (RISE OF $5.30).  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 STRONG SIZED 11,947 CONTRACTS :   JUNE SAW THE ISSUANCE OF 0 CONTRACTS , AND AUGUST SAW THE ISSUANCE OF:  11947 CONTRACTS WITH ALL OTHER MONTHS ZERO.  The new OI for the gold complex rests at 450,641. 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: 1703 OI CONTRACTS DECREASED AT THE COMEX AND AN STRONG SIZED 11,947 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 10,244 CONTRACTS OR 1,024,400 OZ = 31.86 TONNES. AND ALL OF THIS DEMAND OCCURRED WITH A GAIN OF $5.30

YESTERDAY, WE HAD 5276  EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 34,788 CONTRACTS OR 3,478,800  OZ OR 108.20 TONNES (4 TRADING DAYS AND THUS AVERAGING: 8,697 EFP CONTRACTS PER TRADING DAY OR 8,69,700 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 4 TRADING DAYS IN  TONNES: 108.20 TONNES

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

THUS EFP TRANSFERS REPRESENTS 108.20/2550 x 100% TONNES =  4.24% OF GLOBAL ANNUAL PRODUCTION SO FAR IN APRIL ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  3,560.05*  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 SMALL SIZED DECREASE IN OI AT THE COMEX OF 1703 DESPITE THE $5.30 GAIN  IN PRICE // GOLD TRADING YESTERDAY ($5.30 RISE).  WE ALSO HAD AN STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,947 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 11,947 EFP CONTRACTS ISSUED, WE HAD AN STRONG SIZED NET GAIN OF 10,244 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

11,947 CONTRACTS MOVE TO LONDON AND 1703 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 31.86 TONNES). ..AND BELIEVE IT OR NOT BUT ALL OF THIS DEMAND OCCURRED AT THE COMEX WITH A GAIN OF $5.30 IN TRADING!!!.

we had: 109 notice(s) filed upon for 10900 oz of gold at the comex.

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

GLD...

WITH GOLD  UP$1.30  TODAY: / NO CHANGES IN GOLD INVENTORY AT THE GLD/

Inventory rests tonight: 836.13 tonnes.

SLV/

WITH SILVER UP 14 CENTS TODAY NO CHANGE IN THE SILVER INVENTORY AT  THE SLV INVENTORY/ A

/INVENTORY RESTS AT 322.561 MILLION OZ/

COMPARE GOLD TO SILVER

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 1531CONTRACTS from  210,074 UP TO 211,605 (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), 2568 EFP’S FOR JULY AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2568 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 1531 CONTRACTS TO THE 2568 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GIGANTIC SIZED GAIN OF 4099 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES:  20.495 MILLION OZ!!! AND THIS GIGANTIC SIZED DEMAND OCCURRED DESPITE JUST A 10 CENT RISE IN PRICE .  THE BANKERS ORCHESTRATED THEIR RAID THROUGHOUT LAST WEEK  DESPERATELY TRYING TO PARE THEIR GIGANTIC OPEN INTEREST SHORT ON BOTH EXCHANGES BUT TO NO AVAIL. JUDGING BY THE RECORD NUMBER OF EFP ISSUANCE DURING APRIL AT 385.75 MILLION OZ AND THE CONTINUAL 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 STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 10 CENT GAIN  IN SILVER PRICING YESTERDAY. BUT WE ALSO HAD ANOTHER STRONG SIZED 2568 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

)WEDNESDAY MORNING/TUESDAY NIGHT: Shanghai closed UP 0.97 points or 0.03%   /Hang Sang CLOSED UP 165.65 points or 0.53%    / The Nikkei closed UP 86.19 POINTS OR 0.38% /Australia’s all ordinaires CLOSED UP .46%  /Chinese yuan (ONSHORE) closed UP at 6.3948/Oil UP to 65.20 dollars per barrel for WTI and 75.28 for Brent. Stocks in Europe OPENED ALL GREEN//.  ONSHORE YUAN CLOSED UP AT 6.3948 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3826/ONSHORE YUAN TRADING STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING MUCH STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA

Trump demands from Kim a commitment for a nuclear disarmament timetable

( zerohedge)

b) REPORT ON JAPAN

3 c CHINA

i)CHINA/

China in the past few weeks witnessed some banking defaults.  In order to ensure banking liquidity, the POBC has now injected a massive $72 billion into the Chinese banking system

( zerohedge)

ii)China/USA

Tensions flare up again as US nuclear bombers fly over the Spratly Islands

( zerohedge)

4. EUROPEAN AFFAIRS

i)A must read commentary on the plight of the North: South divide in Europe.  There are 3 possibilities that Germany must pay:

  1. Germany and the creditor nations forgive enough debt for Europe to grow. This is the transfer union solution.
  2. Permanently high unemployment and slow growth in Spain, Greece, Italy, with stagnation elsewhere in Europe
  3. Breakup of the eurozone

Probably the best outcome would be for Italy to leave or Germany leave, laving the periphery intact

( MishShedlock/Mishtalk)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Russia/North Korea/USA

Putin, despite the sanctions initiated by Trump still has admiration for the President as he calls the meeting with North Korea: courageous and mature

( zerohedge)

6 .GLOBAL ISSUES

CANADA/USA

The trade dispute is getting out of hand. Trump in the heated discussion with Trudeau blames Canada for burning down the White House.

Actually this event occurred on this day, June 6, 1814.  However it was the British that burnt the White House down in retaliation for the Americans setting York (Toronto) on fire:

(courtesy zero hedge)

7. OIL ISSUES

Both crude and gasoline tumble after a huge USA inventory build: the highest build since 2008.  Also the USA continues with record production

(courtesy zero hedge)

8. EMERGING MARKET

i)INDIA

contagion is spreading fast as India was forced to hike rates to stop the drop in the rupee.  It will not help as the growing shortage of dollars is playing havoc to all emerging nations

( zerohedge)

ii)BRAZIL

A good look at the deteriorating conditions inside Brazil and why the Brazilian real is plummeting
(courtesy Jeffrey Snider/Alhambra Partners)

9. PHYSICAL MARKETS

i)Christopher Belding of Bloomberg comments that China is rigging its currency and asset prices, both higher and lower and offers reasons why
(Belding/Bloomberg)

ii)I wonder why Scotiabank is scraping half of its metal business:( Reuters)

iii)No appreciable change in gold swaps as commented by expert Robert Lambourne

( Robert Lambourne/GATA)

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

i)USA DATA

This is a key report and it will be very disappointing to the Fed:  USA productivity growth disappoints in Q1 as unit labour costs surge.  The gain in productivity was .4% quarter/quarter but they were expecting a gain of .6% q/q

( ZEROHEDGE)

ii)Seems Trump’s trade war is working;  the deficit is down 2.1% to 46.2 billion dollars from a revised $47.2 billion

(courtesy zerohedge)

iii)a very worrisome report:  Medicare will be insolvent in 8 years, much sooner than expected.  Social security runs out in 2034

(courtesy zerohedge)

iv)MARKET DATA

Market trading this morning:

Italian yields spike higher, Europe is imploding and yet the VIX collapses into the 11 column

( zerohedge)

v)Having destroyed bricks and mortar operations, Bezos is now thinking about offering home insurance.  That will be probably more difficult to set up but it is possible

( zerohedge)

vi)SWAMP STORIES

a)It seems our central co operative FBI counterintelligence officer, Priestap reports that FBI Strzok played a much more central role in both the Clinton email scandal probes and the Russian collusion probe

(courtesy zerohedge)

b)This ought to be interesting:  McCabe is seeking immunity so he can testify to the committee.  If he does not get it then he will plead the 5th
( zerohedge)

c)New questions arise from the Papadopoulos charges and new claims that Mueller threatened him with being an unregistered agent of Israel. We need Bill Priestap’s testimony as to who is this Prof. Misud, who fed Papadopoulos with the false  Russian narrative etc..

this is getting really good…
( zerohedge)

d)Leaks from IG Horowitz report shows Comey was insubordinate and also Horowitz offers a scathing attack onLynch

(courtesy zerohedge)

Let us head over to the comex:

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 1531  CONTRACTS DOWN to an OI level 450,641 DESPITE THE RISE IN THE PRICE OF GOLD ($5.30 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 GOOD SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 11,947 CONTRACTS WERE ISSUED: FOR  JUNE, 0 CONTRACTS ISSUED,  FOR AUGUST 11947 CONTRACTS AND ZERO FOR ALL OTHER MONTHS:

TOTAL  11947 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: 10,244 OI CONTRACTS IN THAT 11,947 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 1703 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 10,244 contracts OR 1,024,400  OZ OR 31.86 TONNES.

Result: A CONSIDERABLE SIZED DECREASE IN COMEX OPEN INTEREST DESPITE THE GAIN IN PRICE /YESTERDAY  (ENDING UP WITH AN GAIN IN PRICE OF $5.30).  THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: AT A STRONG 11,362 OI CONTRACTS..

We have now entered the active contract month of JUNE where we LOST 1383 contracts and that leaves us with 5554 contracts  We had 1491 notices filed upon yesterday so we SHOCKINGLY GAINED 108 contracts or 10,800 additional oz will stand for delivery at the comex AS SOMEBODY NEEDED BADLY SOME PHYSICAL GOLD.

.JULY saw a GAIN of 55 contracts to stand at 1436.  The next big delivery month after June is August and here the OI FELL BY 731 contracts DOWN to 324,863.

AFTER AUGUST, THE NEXT ACTIVE DELIVERY MONTH IS OCTOBER AND HERE THE OI ROSE BY 92 CONTRACTS UP TO 11,736 CONTRACTS.

We had 109 notice (s) filed upon today for 10,900 oz at the comex

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: 237,399  contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:  279,246   contracts

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And now for the wild silver comex results.

Total silver OI ROSE BY A CONSIDERABLE SIZED 1531 CONTRACTS FROM 210,074 UP TO 211,605 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET APRIL 9.2018/ 243,411 CONTRACTS)  WITH THE 10 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 2568 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: 2568.  ON A NET BASIS WE GAINED 4099 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 1531 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 2568 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN  ON THE TWO EXCHANGES:  4099 CONTRACTS

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the NON active delivery month of JUNE and here the front month FELL BY 22 contracts FALLING TO 19 contracts. We had 39 notices filed upon yesterday so we gained 17 contracts or an additional 85,000 oz will stand in this non active delivery month of June AS SOMEBODY IS IN URGENT NEED OF PHYSICAL ON THIS SIDE OF THE POND AND QUEUE JUMPING CONTINUES IN EARNEST

The next big active delivery month for silver is July and here the OI LOST 2047 contracts DOWN to 133,290.  The next delivery month is August and here we LOST 1 contract  to stand at 4. The next active delivery month after August for silver is September and here the OI ROSE by 3847 contracts UP to 43,807

We had 17 notice(s) filed for 85,000 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

JUNE 6/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
22,842.010 OZ
HSBC
Deposits to the Dealer Inventory in oz NIL oz
Deposits to the Customer Inventory, in oz   22,841.823

oz

JPMorgan

No of oz served (contracts) today
109 notice(s)
 10,900 OZ
No of oz to be served (notices)
5445 contracts
(544,500 oz)
Total monthly oz gold served (contracts) so far this month
1794 notices
179400 OZ
5.5800 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: gold comex comatose despite June being a huge delivery month.
 TODAY, WE HAVE  NO 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 HSBC 22,842.010 oz
total customer withdrawals:  22,842.010 oz
to which this landed as a deposit in JPMorgan:
we had 1 customer deposit
Into JPMorgan:
22,842.823 oz
and somehow .8 oz of weight miraculously appeared out of nowhere!!
total customer deposits: 22,842.823 oz
we had 0 adjustment(s)

For JUNE:

Today, 0 notice(s) were issued from JPMorgan dealer account and 4 notices were issued from their client or customer account. The total of all issuance by all participants equates to 109 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 46 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JUNE. contract month, we take the total number of notices filed so far for the month (1794) x 100 oz or 179,400 oz, to which we add the difference between the open interest for the front month of JUNE. (5554 contracts) minus the number of notices served upon today (109 x 100 oz per contract) equals 723,900 oz, the number of ounces standing in this active month of JUNE (22.516 tonnes)

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

No of notices served (1794 x 100 oz)  + {(5554)OI for the front month minus the number of notices served upon today (109 x 100 oz )which equals 723,900 oz standing in this  active delivery month of JUNE .

WE GAINED 108 CONTRACTS OR AN ADDITIONAL 10,800 OZ ARE STANDING FOR DELIVERY AND THIS SPELLS TROUBLE FOR THE BANKERS AS OUR LONGS REFUSED THE BONUS MONEY TO TRAVEL TO LONDON THROUGH THE EFP ROUTE.  THIS MAY SPELL TROUBLE FOR THE BANKERS AS ONLY 8.2689 TONNES ARE REGISTERED FOR DELIVERY.

As I stated on first day notice:

“THERE ARE ONLY 8.2689 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:  265,846.240 oz or 8.2689 tonnes
total registered and eligible (customer) gold;   9,014,904.206 oz 280.401 tones
THE COMEX IS AGAIN IN STRESS AS ONLY 8.2689 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

JUNE 6/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 789,746.385 oz
Delaware
Scotia
Deposits to the Dealer Inventory
nil;
oz
Deposits to the Customer Inventory
 166,621.470
oz
JPMorgan
No of oz served today (contracts)
17
CONTRACT(S)
(85,000 OZ)
No of oz to be served (notices)
2 contracts
(10,000 oz)
Total monthly oz silver served (contracts) 787 contracts

(3,935,000 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 1 deposits into the customer account

i) Into JPMorgan: 166.621.470 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) everybody else: zero oz

total customer deposits today: 166,621.470 oz

we had 2 withdrawals from the customer account;

i) Out of Scotia: 766,920.885 oz

ii) Out of Delaware:  22,825.500 oz

total withdrawals;  789,746.385 oz

we had 0  adjustment/

total dealer silver:  66.078 million

total dealer + customer silver:  270.132 million oz

The total number of notices filed today for the JUNE. contract month is represented by 17 contract(s) FOR 85,000 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 787 x 5,000 oz = 3,935,000 oz to which we add the difference between the open interest for the front month of JUNE. (19) and the number of notices served upon today (17 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE contract month: 787(notices served so far)x 5000 oz + OI for front month of JUNE(19) -number of notices served upon today (17)x 5000 oz equals 3,945,000 oz of silver standing for the JUNE contract month

We gained 17 contracts or an additional 85,000 oz will stand in this non active delivery month of June as somebody was in urgent need of silver.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 127,585 CONTRACTS

CONFIRMED VOLUME FOR YESTERDAY:88,340 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF  88,340 CONTRACTS EQUATES TO 441 MILLION OZ  OR 63.1% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -2.64% (JUNE 6/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.45% to NAV (JUNE 5/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -2.64%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.45%/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 -2.44%: NAV 13.52/TRADING 13.19//DISCOUNT 2.44.

END

And now the Gold inventory at the GLD/

JUNE 6/WITH GOLD UP $1.30 TODAY, WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.13 TONNES

JUNE 5/WITH GOLD UP $5.30 TODAY, WE HAD A TINY WITHDRAWAL OF .29 TONNES AND THAT NO DOUBT WAS TO PAY FOR FEES/836.13 TONNES

JUNE 4/WITH GOLD DOWN ONLY $2.50, THE CROOKS UNLEASHED A MASSIVE WITHDRAWAL OF 10.61 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 836.42 TONNES

JUNE 1/WITH GOLD DOWN $5.10 TODAY, A HUGE 4.42 TONNES OF GOLD WAS WITHDRAWN FROM THE GLD AND THIS WAS USED IN THE RAID TODAY/INVENTORY RESTS AT 847.03 TONNES

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JUNE 5/2018/ Inventory rests tonight at 836.13 tonnes

*IN LAST 392 TRADING DAYS: 90.46 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 342 TRADING DAYS: A NET 65.84 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory/

JUNE 6/WITH SILVER UP 14 CENTS TODAY/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 322.561 MILLION OZ/

JUNE 5/WITH SILVER UP 10 CENTS NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 322.561 MILLION OZ

JUNE 4/WITH SILVER DOWN 1 CENTA SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 522,000 OZ INTO THE SLV/.INVENTORY RISES AT 322.561 MILLION OZ/

JUNE 1/WITH SILVER DOWN 3 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 322.039 MILLION OZ/

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/

JUNE 5/2018:

Inventory 322.561 million oz

end

6 Month MM GOFO 2.13/ and libor 6 month duration 2.48

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

G0FO+ 2.13%

libor 2.48 FOR 6 MONTHS/

GOLD LENDING RATE: .35%

XXXXXXXX

12 Month MM GOFO
+ 2.74%

LIBOR FOR 12 MONTH DURATION: 2.58

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.16

end

Major gold/silver trading /commentaries for WEDNESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Turkey Uses Gold Bullion To Stabilise Its Currency And Economy

by Simon Constable for Middle East Eye

Turkey’s central bank has accumulated an additional 400 metric tonnes of gold since 2011 (Image via Wikimedia)

Turkey’s economy has been in a tailspin with an inflationary currency, but the country is using something rare to help stabilise itself: gold.

In late 2011, Turkey started to allow commercial banks to use gold instead of the Turkish lira for their required deposits at the central bank. These deposits are known as reserve requirements and help ensure that the banks are capitalised.

Over the past six-or-so years, Turkey’s central bank has accumulated an additional 400 metric tonnes of gold. That’s a lot of yellow bricks – more than what Britain has – and the sizeable stash has the possibility to take the edge off the crisis.

To put the Turkish gold haul in perspective, there are 10 million ounces of gold – roughly 311 tonnes – at the Bank of England, according to the New York-based financial consulting firm CPM Group.

The burgeoning balance of bullion comes as the result of a change in banking rules made earlier this decade.

“I thought the Turkish thing was pure genius,” says Jeff Christian, founder of CPM Group. “It was using gold in the way that you should use it.”

In the simplest terms, the tweak to the rules allows gold to be used as a financial asset by the banks. In addition, the new regulation helped flush out a lot of gold that was previously held privately.

“This change allowed the government to get hold of the under-the-mattress gold to help stabilise the banks and the underlying economy,” says Ivo Pezzuto, professor of global economics, entrepreneurship, and disruptive innovation at the International School of Management, Paris, France.

The result of the policy change has been that Turkey’s central bank has seen a huge jump in its apparent gold holdings.

There are now more than 18 million troy ounces of bullion deposited at Turkey’s central bank, up from less than four million before the rule change was introduced in 2011, according to the latest data from CPM Group. There are 32,150.7 troy ounces in a metric tonne.

Private gold deposits into Turkey’s central bank
Almost all of the increase came from commercial bank deposits of the metal at the central bank, rather than government purchases to bolster national reserves.

The Turkish gold, which previously would have languished under the proverbial mattresses, or in private safety deposit boxes, now serves a more useful economic purpose in allowing the banks to make more lira-based loans.

It also helps the banks during times of high inflation.

With inflation running at a 40 percent annualised rate, the value of the gold grows as well when measured in terms of lira. In short, the commercial banks’ deposits of gold become worth more and more in terms of the local currency as inflation rages onward and upwards.

Although the purchasing power of the local currency dwindles with each passing day of double-digit inflation, the gold’s value does not. For instance, while one dollar fetched 4.10 lira a month ago, it will now buy 4.53 lira, meaning the lira has fallen in value. Whereas, gold prices in dollars have remained roughly static versus the beginning of the same period.

So what does this all mean? It means that managers at commercial banks don’t have to worry as much about continually sending more deposits to the central bank to maintain the required reserves.

The value of the gold naturally adjusts upwards, meaning if the bank is growing its loan book, it doesn’t need to worry as much about stashing more cash with the central bank. Put another way, it automatically can help stabilise the banks’ finances – at least in theory.

However, it is also worth remembering that the government does not own these additional gold reserves. They are the assets of the commercial banks and/or those of the investors who deposited their bullion with the financial institution.

That in turn means that private investors have the choice to get their gold returned to them. It’s basically the same as someone taking cash out of a deposit account. It is also true that everyone taking their cash out would likely cripple a bank.

Similarly, although not identical, it is true with the gold that the investors deposited. If everyone took out their gold then the banks would need to immediately send a slew of Turkish lira to the central bank, which is theoretically possible.

Turkey’s economic problems
However, Turkey’s implementation of gold deposits may not offset its economic problems in the long run.

Turkey has a credit problem, which Middle East Eye reported last September. The economy grew too rapidly and sparked high inflation.

Ballooning inflation has led to the dwindling value of the lira. One dollar would fetch 4.48 Turkish lira recently versus 3.52 lira on 1 June 2017, according to data from Bloomberg.

While the official rate of inflation was an annualised 10.85 percent in April, which seems relatively measured for the economy, it may not reflect reality.

A more realistic rate is likely 40 percent, according to estimates from Steve Hanke, professor of applied economics at Johns Hopkins University, and also an expert on inflation. He uses a technique known by economists as purchasing-power-parity, which looks at the actual cost of goods and services inside Turkey.

The plunging currency has come hand-in-glove with a scramble for the exits by investors who wish to save their capital from the wealth-withering surge in the cost of living. In other words, they have sold their lira-denominated investments in favour of US dollars and other major currencies that aren’t suffering from high inflation.

“Basically the problem is that inflation is very high and they don’t want to slow the economy in order to crush the inflation,” Pezzuto says.

Those two policies tend not to go hand in hand, so observers are anticipating more inflation for the time being.

Courtesy of Middle East Eye

Gold and Silver Bullion – News and Commentary

Gold edges up as dollar, treasury yields ease (Reuters.com)

Asian Stocks Trade Mixed as Global Rally Pauses (Bloomberg.com)

Tiny Gold ETF Wages Fee War to Reap 10-Fold Surge in Assets (Bloomberg.com)

Gold poised for big breakout amid looming economic downturn – precious metals expert (RT.com)

Gold rebounds and approaches $1300 (FX Street)


Source: Reuters

As Good As Gold: Turkey Uses Bullion To Try To Stabilize Its Economy (Middle East Eye)

Markets will bite back against ECB dinosaurs (Independent)

China is rigging all currency and asset prices … (Bloomberg.com)

Gold Investing Goes AWOL As Google Searches To ‘Buy Gold’ Hit 11-Year Low (Forbes)

JPMorgan’s Stunning Conclusion: An Italian Exit May Be Rome’s Best Option (Zerohedge.com)

Gold Prices (LBMA AM)

05 Jun: USD 1,292.25, GBP 9,966.73 & EUR 1,105.13 per ounce
04 Jun: USD 1,294.65, GBP 1,966.46 & EUR 1,103.82 per ounce
01 Jun: USD 1,299.15, GBP 1,976.83 & EUR 1,111.42 per ounce
31 May: USD 1,303.50, GBP 1,978.54 & EUR 1,113.58 per ounce
30 May: USD 1,298.60, GBP 1,979.27 & EUR 1,119.26 per ounce
29 May: USD 1,302.05, GBP 1,983.83 & EUR 1,130.57 per ounce
25 May: USD 1,303.95, GBP 1,976.53 & EUR 1,113.70 per ounce

Silver Prices (LBMA)

05 Jun: USD 16.39, GBP 12.26 & EUR 14.03 per ounce
04 Jun: USD 16.44, GBP 12.29 & EUR 14.03 per ounce
01 Jun: USD 16.42, GBP 12.32 & EUR 14.02 per ounce
31 May: USD 16.55, GBP 12.42 & EUR 14.17 per ounce
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


Recent Market Updates

– Case for Gold in a Diversified Investment Portfolio
– Get “Positioned In Gold” Now As “You Will Not Have Time To Get Positioned” Later
– Consequences of Ignoring Economic Reality Are Dangerous
– Are Gold And Silver Bullion Obsolete In The Crypto Age?
– In Gold we Trust: 3 Important Factors Leading to the “Turning of the Monetary Tides”
– Silver Trading in Tight $1 Range As Pressure Builds For A Breakout
– Gold Back Above $1300 – Trump Cancels Historic Summit – Silver “Ready To Breakout”
– Gold Price Surges To Record In Turkey and Other Emerging Markets as Currencies Collapse
– 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?

davidrussell

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

Dear Harvey ,

The time has finally come! We are about to hold our first webinar explaining all you need to know about the upcoming KVT, initial token offering.

This special event will be hosted by our CEO, Thomas Coughlin and has been put together so we can cover all the important topics related to this highly anticipated event.

You’re invited to attend our first of a series of webinars hosted by Thomas Coughlin this Thursday 7th of June 14:00 BST.

Topics being covered are as follows:

  • An introduction into Kinesis Monetary System
  • Kinesis digital currencies and their yields
  • Kinesis Velocity Token (KVT) Initial Token Offering (ITO)
  • Frequently asked questions

To secure your place, register here.

Once you have registered you will receive a confirmation email and instructions on how to join the webinar.

We look forward to seeing you there.

Kind Regards,

Kinesis Money
a:C/O ILS Fiduciaries (IOM) Limited, First Floor,Millennium House, Victoria Road, Douglas, Isle of Man IM2 4RW
    
 END
Christopher Belding of Bloomberg comments that China is rigging its currency and asset prices, both higher and lower and offers reasons why.
(Belding/Bloomberg)

Christopher Belding: China is rigging all currency and asset prices …

 Section: 

… and only pretending to have markets.

* * *

China’s Not Feeling the Yuan Market Love

The Hand of the Government is the Only Certainty in This Currency Puzzle

By Christopher Balding
Bloomberg News
Tuesday, June 5, 2018

https://www.bloomberg.com/view/articles/2018-06-04/china-s-not-feeling-t…

The relationship between the value of the yuan and the U.S. dollar has broken down in the first few months of 2018, raising questions over the actions and objectives of China’s central bank.

Since unveiling a basket of reference currencies used to set the yuan’s exchange rate in 2015, the People’s Bank of China has largely left it alone. 1 The PBOC established the system to move the yuan, or renminbi, away from its historical soft peg against the dollar, aiming to broaden the currency’s value-setting base and reduce volatility

In practice the system has resulted in the yuan closely tracking the value of a U.S. dollar index that measures the greenback’s movement against a broad basket of major currencies. The rolling three-month correlation between the yuan’s exchange rate and the dollar index has averaged almost 0.8 since the basket’s inception (a figure of 1 would indicate they move in perfect lockstep, while minus 1 would mean they move exactly in opposite directions).

Note that it’s an inverse-value relationship: When the U.S. dollar index rises, the yuan tends to fall, and vice-versa. (Since the renminbi exchange rate is commonly expressed in yuan per dollar, a higher figure indicates that the Chinese currency has depreciated.)

For the three months from February through April, these correlations vanished. Whereas before a one-month coefficient would frequently hover upward of 0.9, the relationship was near zero and even negative. The dollar index rose about 6.4 percent between the end of January and May 29. Over the same period, the yuan lost only 2 percent.

What changed? At the start of the year, the PBOC told banks that traded foreign exchange to reduce use of a so-called counter-cyclical factor that was introduced in 2017 in an effort to lower volatility. This effectively weakened the importance of the yuan’s end-of-day closing price against the dollar, allowing banks to submit reference rates to the central bank that reflected more trading activity and smoothed out swings in the exchange rate.

However, if the counter-cyclical factor was the driving force, we should have seen a quick reaction after the announcement. In fact, correlations remained high into late January. So what is driving the change?

Beijing is facing immense pressure in two specific areas. One is trade. By propping up the renminbi’s value, China takes away one of President Donald Trump’s charges — that the country manipulates its currency to drive export growth.

The dollar’s rally should have pushed the yuan to below 6.5 or even 6.6 per greenback. Instead it sits at 6.4. Given the trade pressures, it’s not unreasonable to ask whether Beijing is trying to appease Trump by manipulating the currency basket — a much less-noticed route than yielding to tariff demands.

The second factor is capital outflows. It’s possible Beijing is concerned that allowing the yuan to weaken too much will spur investors to pull money out of the country, and so is tapping the brakes. With current and capital account net outflows topping $500 billion after the unexpected yuan devaluation in August 2015, the government is hyper-sensitive to anything that might trigger a repeat.

Net outflows are currently close to zero, with banks and the foreign-exchange regulator applying greater scrutiny to every international transaction. Depreciation pressures have been reduced by the implementation in January 2017 of a rule that restricts banks to paying out only as much foreign currency as they receive.

Whatever the explanation, the problem that will remain is Beijing’s meddling hand in asset prices. The yuan basket was created not only to move away from a dollar seen as excessively volatile but also to create the appearance of a market-determined exchange rate.

As in other areas of the economy, this remains a chimera. China controls the value of financial assets from the currency to stocks to commodities. In the equity and raw-materials markets, traders design strategies around what they expect the government to do.

If Chinese authorities are trying to support the yuan to weaken Trump administration allegations of currency manipulation, they can just as easily decide at some point to push it down. What Beijing fails to grasp is that manipulation is manipulation, whether the desired direction is up or down.

A market that’s loved only when it gives you the price you want isn’t a market.

—–

Christopher Balding is an associate professor of business and economics at the HSBC Business School in Shenzhen, China, and author of “Sovereign Wealth Funds: The New Intersection of Money and Power.”

end

I wonder why Scotiabank is scraping half of its metal business:

(courtesy Reuters)

Scotiabank to scrap half its metals business: sources

LONDON (Reuters) – Canada’s Bank of Nova Scotia (Scotiabank) is limiting lending by its ScotiaMocatta metals unit as it embarks on a radical restructuring likely to halve the size of the business, sources familiar with the matter said.

FILE PHOTO: A woman leaves a Bank of Nova Scotia (Scotiabank) branch in Ottawa, Ontario, Canada, on May 31, 2016. REUTERS/Chris Wattie/File Photo

Mocatta is the largest financier of the global precious metals supply chain, accounting for some 15-20 percent of lending to clients ranging from refiners and jewelers to carmakers and petrochemicals producers, industry sources say.

Those sources place the value of its leases, credit lines and consignment lending of precious metal at $8 billion.

While rivals are likely to take on most of Scotia’s business, its withdrawal will see the pool of cash available to the industry dwindle further after banks including Barclays, Deutsche Bank and Commerzbank scaled back or exited the market in recent years.

It could also leave smaller clients short of financing options and facing higher borrowing costs.

Ten industry sources told Reuters that ScotiaMocatta was curtailing lending to the physical metals supply chain and would refocus on major corporate clients which have broader relationships with Scotiabank.

“Scotia has already started calling clients and exiting … they are not going to deal with standalone ScotiaMocatta clients anymore,” one source said.

Clients were being given time to make alternative arrangements with the wind-down expected to take at least a year and a half, sources said.

“Some institutions they deal with will continue at least for the foreseeable future,” said a banking source, adding that other clients are being given dates by which to move their business.

In response to a request for comment, Scotia referred to a statement by its investment banking chief Dieter Jentsch in February in which he said the Mocatta business would change but gave few details.

“We are making organizational changes to simplify our operating model to better align our resources with our strategy and priorities,” Jentsch said at the time.

“In North America and Europe, the metals lending business will be integrated into our corporate lending platform while metals sales and trading will be integrated into our global commodities trading business. We remain committed to meeting the needs of our clients.”

SHRINKING FAST

Scotia’s pullback comes after a strategic review of Mocatta began in 2016 following a string of lawsuits related to the manipulation of gold and silver benchmarks and dissatisfaction with performance.

It also follows a failed attempt to sell the business.

Mocatta’s origins stretch back to the 17th century and sources estimate its annual revenue at $150-$180 million, the bulk of which comes from precious metals.

It has large operations in India and China, the top consumers of physical gold, and is one of five banks that settle bullion in London’s $5 trillion a year gold market, the world’s biggest.

Scotia has not yet decided on the future of Mocatta’s Asian arm or whether to continue clearing and vaulting precious metals, sources said.

But in Europe and the United States it is shrinking fast, sources said.

“In North America they’ll keep more of the business because they are a North American bank. Europe is non-core. (Globally) they’ll keep half,” said one.

Mocatta’s managing director in North America, Tim Dinneny, left the bank in mid-May, four sources said.

Around six more trading and sales staff in London and New York have been told they will be made redundant in October, said a source.

These cuts come after staff including Mocatta’s head of Europe and global head of base metals sales were let go in May and the business was incorporated into Scotia’s broader commodities business.

ScotiaMocatta had around 60-65 trading and sales staff before the restructuring began, sources said.

Scotia also still aims to sell parts of Mocatta, one source said.

“They were hoping a buyer would take everything, but that didn’t happen. Now they are going to carve up some pockets of the business and try to sell those,” the source said, adding that JPMorgan was organizing the sales.

JPMorgan declined to comment.

‘PRICES WILL GO UP’

The removal of such a large low-cost lender means borrowing costs will rise across the industry, sources said.

Corporate clients such as carmakers and large refiners will be least affected as banks including Canada’s Toronto-Dominion Bank, U.S. lender JPMorgan and China’s ICBC Standard [SBKJLS.UL] are already offering to expand credit, sources said.

But banks generally are increasingly shying away from smaller industrial clients who were Scotia’s speciality, with loans often secured using physical metal or equipment as collateral.

Financing costs were likely to double, said the director of a small refinery in Europe.

Scotia’s exit could mark the end of an era when banks straddled the supply chain, said an executive at a major Swiss refiner.

“We will have again commission houses, brokers and refineries taking care of the physical markets and the banks restricting themselves to pure lenders.”

(This version of the story has been refiled to fix quote in paragraph seven)

Reporting by Peter Hobson; editing by David Evans

end
No appreciable change in gold swaps as commented by expert Robert Lambourne
(courtesy Robert Lambourn/GATA)

GATA) Robert Lambourne: BIS intervention in gold remained steady in May

Submitted by cpowell on 04:55PM ET Wednesday, June 6, 2018. Section: Daily Dispatches

By Robert Lambourne

Wednesday, June 6, 2018

The Bank for International Settlements has published its May statement of account, giving limited information on its use of gold swaps and other gold-related derivatives during the month:

https://www.bis.org/banking/balsheet/statofacc180531.pd f

The information provided by the BIS monthly statements is not sufficient to calculate a precise amount of gold- related derivatives, including swaps, used by the bank, but it appears that the bank’s total exposure as of May 31 was around 415 tonnes of gold, which is essentially unchanged from April’s 420 tonnes.

This compares to estimates of 360 tonnes, 525 tonnes, 580 tonnes, 450 tonnes, 600 tonnes, and 570 tonnes, respectively, at the February, January, December, November, and October month-ends and an audited swaps figure of 438 tonnes as of March 31, 2017.

It seems that the BIS is continuing to trade actively in gold derivatives and the amounts disclosed each month have been following an irregular pattern.

When it comes to its activities in the gold market, the BIS provides little information on what it is doing, why, and for whom. The bank has refused GATA’s request to explain its involvement in the gold market:

http://www.gata.org/node/17793

This lack of transparency fuels suspicion that the bank’s trading is related to official efforts to suppress the gold price.

—–

Robert Lambourne is a retired business executive in the United Kingdom who consults with GATA about the involvement of the Bank for International Settlements in the gold market



___________________________________________________________________

Your early WEDNESDAY 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 6.3948  /shanghai bourse CLOSED UP 0.97 POINTS OR 0.03%     HANG SANG CLOSED UP 165.65  POINTS OR 0.53%
2. Nikkei closed UP 86.19 POINTS OR 0.38% /  /USA: YEN RISES TO 110.18/

3. Europe stocks OPENED GREEN  /     /USA dollar index FALLS TO 93.65/Euro RISES TO 1.1767

3b Japan 10 year bond yield: RISES TO . +.06/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.18/ 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:: 65.20  and Brent: 75.28

3f Gold DOWN/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 FALLS TO +.45%/Italian 10 yr bond yield DOWN to 2.85% /SPAIN 10 YR BOND YIELD DOWN TO 1.46%

3j Greek 10 year bond yield RISES TO : 4.60

3k Gold at $1295.10 silver at:16.56   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 12/100 in roubles/dollar) 62.03

3m oil into the 65 dollar handle for WTI and 75 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 110.18 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 0.9879 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1635 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to +0.45%

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

4. USA 10 year treasury bond at 2.96% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.10%

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

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

Stocks And Euro Rise, Bonds And Dollar Slump

After ECB Comments, With Italy, Trade War

Fading

Global stocks, US equity futures and Treasury yields extended gains while the dollar slumped as “risk-on” sentiment returned after the U.S. and China exchanged trade proposals meant to avoid an escalation of economic tensions, while European bonds declined and the euro strengthened following a Bloomberg report and hawkish comments from ECB speakers suggesting that the ECB’s next, June 14 meeting will be “live” to debate the end of QE.

Not even persisting concerns about the Italian political situation and “radical” budget of the populists, manifesting in another early blowout in Italian yields, with 2-year yields climbing as much as 50bps despite no news flow…

… could dampen broader bullish sentiment with Europe’s Stoxx 600 Index rising led by energy, miners and materials stocks, though it faced a headwind as the common currency rose for a third day, hitting the highest level since May 23, amid a short squeeze prompted by a Bloomberg report that the ECB may announce the end of QE next week, while ECB chief economist Peter Praet on Wednesday confirmed that next week’s gathering will be pivotal for reaching a decision on when to end the institution’s bond-buying program.

Boosting the euro was a slew of ECB speakers following source reports yesterday. As a reminder, Tuesday saw the release of a Bloomberg “source” report, stating the June meeting as “live” to discuss QE exit. In light of this and ahead of the ECB blackout period commencing on Thursday, a slew of members came out with comments:

  • ECB’s Praet (Dovish) said inflation expectations are increasingly consistent with their aim, post QE forward guidance on policy rates will then have to be further specified. He further added that markets are expecting an end of QE at end of 2018, this is an observation and input that is up for discussion and that it is clear that next week will need to discuss end of QE programme.
  • ECB’s Hansson (Hawk) said the ECB could lift rates before mid-2019 due to “moderately” rising inflation. (Newswires)
  • ECB’s Weidmann (Hawk) said that inflation is now expected to gradually return to levels compatible with their target, adding that market expectation of end of QE by end of 2018 is plausible.
  • ECB’s Knot (Hawk) said it is reasonable to end QE soon inflation outlook is stable and less dependent on stimulus. He adds that the ECB should wind down QE as soon as possible.

Perhaps the take home message here is that as Bloomberg’s Lisa Abramowicz said, “it’s kind of amazing that the ECB has to spend so much time deciding whether or not to even talk about exiting its bond-buying program.

Still, not all was well as Italy’s FTSE MIB slumped -1.0%, weighed on by Italian banks (-1.6%) following Conte setting Italy on a collision course with the EU Tuesday, even though analyst comments pushed the narrative that for now Italy’s problem is not Europe’s problem: “The problems in Italy are only Italy’s problem again,” said Commerzbank’s Esther Reichelt. “For the euro there is a small but significant difference between a crisis in a member state that euro investors can avoid by shifting their portfolios to a different euro zone country and a systemic crisis of the single currency.”

Earlier the MSCI Asia Pacific Index climbed after China was said to offer to buy more American products and on reports the U.S. Treasury Department favors less sweeping investment limits on the Asian nation. The U.S. and China continued to discuss the shape of a deal to fend off an impending trade war, with China offering to boost purchases of American goods and the U.S. finalizing a deal to allow China’s ZTE to resume purchases from American suppliers.

“European markets will remain focused on the latest chapter of the political development, which covers the subject of trade tariffs given that we do not have any significant data on the agenda today,” said Naeem Aslam, chief market analyst at TF Global Markets U.K.

Meanwhile, trade “has an impact on sentiment, but doesn’t necessarily have an impact on the broader fundamentals,” Dwyfor Evans, head of Asia-Pacific macro strategy and managing director at State Street Global Markets, told Bloomberg Television, perhaps explaining why good trade news are bullish while bad trade news are ignored. “Looking at the fundamentals alone, it’s not a bad environment for global markets, it’s just getting pushed from one side to the next by headlines and politics and volatility right now.”
Traders are also looking ahead to the G-7 (or rather G-6 +1) meeting later this week for further developments in the trade story.

In macro, the dollar fell against most of its peers ahead of U.S. economic data, and as Treasury yields snapped as high as 2.96% the day after Gartman closed his TSY short. Government bonds across the euro zone fell, led by the slide in Italian securities.

The euro climbed on ECB news and the pound was helped by the weaker dollar and the U.K. opposition party’s softening Brexit stance. Australia’s dollar strengthened against all its 31 major peers after first-quarter economic growth beat forecasts. The yen weakened as gains in Asian stocks reduced demand for haven assets; USD/CHF edged higher even as Swiss inflation accelerated to the fastest since early 2011 in May. In Emerging Markets, investors will be closely watching Brazilian assets after the real closed at the lowest since 2016 following a failed attempt by the central bank to halt the currency’s slide.

In the latest Brexit news, UK opposition Labour party are reportedly going to announce a major shift towards a soft Brexit, in which party leader Corbyn will table “internal market” amendment to the withdrawal bill, customs bill and trade bill.  UK Brexit Secretary David Davis is “not backing down” in dislike of elements of the backstop plan, according to The Times.

In commodities, oil prices were mixed as prices come off recent highs after nursing recent losses with overnight gains post-API, which showed a larger than expected draw in crude stockpiles. Nonetheless, the inventory report pressured RBOB after a significant build in gasoline stockpiles, although this was then gradually pared throughout the session. Overnight Russia’s Energy Minister Novak reiterated OPEC+ countries should consider a possible easing of oil output restrictions depending on demand conditions.

In metals, gold is trading marginally lower albeit still rangebound and currently testing USD 1295/oz to the downside. Meanwhile, Chinese iron ore futures rose to 2-week highs amid an explosion on Tuesday at an iron ore mine in China’s north-eastern province of Liaoning.

Today’s calendar includes MBA mortgage applications and the trade balance. Brown-Forman, Five Below, Thor Industries and Okta are among companies reporting earnings

Bulletin Headline Summary from RanSquawk

  • Slew of ECB speakers emerged following source reports yesterday
  • RBI hiked interest rate and reverse repo rate in a surprise move
  • Looking ahead, highlights include DoEs, and BoE’s McCafferty

Market Snapshot

  • S&P 500 futures up 0.2% to 2,756.75
  • STOXX Europe 600 up 0.08% to 387.21
  • MXAP up 0.4% to 175.23
  • MXAPJ up 0.6% to 576.55
  • Nikkei up 0.4% to 22,625.73
  • Topix up 0.2% to 1,777.59
  • Hang Seng Index up 0.5% to 31,259.10
  • Shanghai Composite up 0.03% to 3,115.18
  • Sensex up 0.7% to 35,147.54
  • Australia S&P/ASX 200 up 0.5% to 6,025.11
  • Kospi up 0.3% to 2,453.76
  • Brent futures up 0.3% to $75.64/bbl
  • Gold spot little changed at $1,295.44
  • U.S. Dollar Index down 0.2% to 93.72
  • German 10Y yield rose 5.3 bps to 0.422%
  • Euro up 0.3% to $1.1753
  • Italian 10Y yield rose 24.8 bps to 2.521%
  • Spanish 10Y yield rose 7.9 bps to 1.475%

Top Overnight News

  • Bunds fell and the euro climbed as European Central Bank chief economist Peter Praet confirmed that next week’s policy meeting will be pivotal for reaching a decision on when to end the institution’s bond-buying program
  • China has offered to boost purchases of American goods by about $25 billion this year to fulfill President Donald Trump’s desire to shrink the U.S. trade deficit with the world’s second-largest economy, according to two people familiar with the matter
  • The White House wants North Korean leader Kim Jong Un to commit to a timetable to surrender his country’s nuclear arsenal when he meets President Donald Trump next week in Singapore, a high-stakes summit that could last as long as two days — or just minutes
  • Treasury Secretary Steven Mnuchin asked President Trump on Tuesday to exempt Canada from steel and aluminum tariffs, ABC News reports, citing unidentified administration official. Mnuchin said to favor less-sweeping investment limits for China
  • Italian Prime Minister Giuseppe Conte passed his first parliamentary hurdle, but alarmed markets with a maiden speech pledging a raft of populist measures from boosting spending on the poor and the jobless to sweeping tax cuts
  • The pound climbed on news that the U.K.’s main opposition party proposed a plan to effectively stay in the European Union’s single market, a move that could nudge the country toward keeping closer to the bloc after Brexit
  • China’s central bank stepped up injections of cash to the financial system, as lenders face a seasonal liquidity squeeze complicated by an oncoming U.S. Federal Reserve rate hike.
  • The U.S. and China continued to haggle over the shape of a deal to fend off an impending trade war, with China offering to boost purchases of American goods and the U.S. finalizing a deal to allow China’s ZTE Corp. to resume purchases from American suppliers
  • The hedge fund managed by billionaire Alan Howard gained about 36 percent in May, according to a person with knowledge of the matter, burnishing a trading image dulled in recent years by poor returns at his investment firm
  • India’s central bank raised its benchmark interest rate for the first time since 2014 and retained its neutral policy stance, leading sovereign bonds to slip and the rupee to advance

Asian equity markets traded somewhat mixed after a similar performance on Wall St, where tech extended on gains and the Nasdaq edged fresh records highs, although the DJIA underperformed amid weakness in energy and financials. ASX 200 (+0.5%) was positive with gains led by miners after recent upside in metal prices and with BHP also higher due to interest in its US shale assets, while better than expected GDP data also contributed to the upbeat tone. Elsewhere, Nikkei 225 (+0.4%) eked modest gains amid a weaker currency but with upside capped as wage data added to the recent slew of disappointing releases from Japan, while Shanghai Comp. (flat) and Hang Seng (+0.5%) were mixed as trade uncertainty lingered. Furthermore, the PBoC refrained from reverse repo operations and instead opted to inject via its Medium-term Lending Facility, while there was also speculation PBoC is likely to lift rates on its lending facilities and reverse repos should the Fed hike as expected next week. Finally, 10yr JGBs were subdued amid weakness in USTs and modest gains in Tokyo stocks, while the BoJ Riban announcement was largely ignored as the central bank kept purchase amounts unchanged in 1yr-10yr maturities. China may reduce RRR and increase yields on MLF and reverse repos.

Top Asian News

  • Malaysia’s 1MDB Scandal Takes Down Its Central Bank Governor
  • Lira Fate Hangs in Balance as Turkey Rate Decision Splits Street
  • India Joins Emerging Market Central Banks by Raising Key Rate
  • Tencent’s Ma Unveils WeChat Travel Plan for China, H.K. Bay Area
  • Indonesia Central Bank Governor Flags More Rate Hikes If Needed

European equities are mixed (Euro stoxx 50 flat) with the energy and material sector outperforming following higher commodity prices. FTSE 100 (+0.26%) is the leading bourse being supported by energy and material names. FTSE MIB (-1.0%) currently underperforming bourse and being weighed on by Italian banks (-1.6%) following Conte setting Italy on a collision course with the EU Tuesday. In individual stock news Schindler Holding (+5.6%) is seeing positivity following an upgrade to buy at Goldman Sachs. WH Smith (+5.67%) is also up on the day following positive earnings results. RBS (-0.75%) is down on the day following the announcement that the UK government may further divest from the co. in September of this year.

Top European News

  • Barclays Hires Morgan Stanley Distressed-Debt Trader Rachidi
  • Italian Bonds Slide for Second Day as Fiscal Plans Rattle Market
  • Repsol Shows Faith in Oil’s Rally With Dividend, Spending Boost
  • Smurfit Gains Despite International Paper Throwing In the Towel

In FX, EUR was the biggest mover as the single currency has extended gains made late yesterday on the back of hawkish ECB sourced reports about a live policy meeting next Thursday, as no less than 3 GC members essentially confirm that the next stage of the exit strategy will be on the agenda. Eur/Usd has tripped stops at 1.1755 to trade just short of 1.1770, but may be hampered by decent option expiry interest between 1.1750-60 (1 bn) and almost double that amount at the 1.1800 strike (1.8 bn). AUD: Off overnight peaks vs its US counterpart, but firmly back above 0.7600 after Tuesday’s sharp pull-back (on a gaping Aussie current account deficit and still neutral RBA) as Q1 GDP surpassed expectations and broad risk sentiment improves on latest global trade reports (including China offering to buy around Usd70 bn worth of US goods). CAD: Another relative reprieve for the Loonie after NAFTA and data disappointment amidst reports that US Treasury Sectretary Mnuchin attempted to persuade President Trump to give Canada a steel and aluminium pardon. Usd/Cad has retreated to the mid 1.2900 area from around 1.3065 at one stage yesterday ahead of several releases slated for today, like trade, building permits and the Ivey PMI. CHF/JPY: The Franc is holding off recent lows vs the Usd with some support gleaned from firmer than forecast Swiss CPI, but Usd/Jpy has climbed above 110.00 in wake of yet more disappointing Japanese data that will keep the BoJ in full QQE mode. DXY: Given all the above, 94.000+ status has been relinquished again and the index is only just keeping its head above 93.500.

In Rates, ECB officials, including the more pragmatic Praet, plus hawkish Hansson, Weidmann and Knot seem to be confirming source suggestions that next Thursday could well be another crucial policy convene in terms of conveying to markets the next phase of policy normalisation. Hence, Bunds have come under renewed pressure after a fleeting rebound to a fresh Eurex peak at 161.32, which could have been BTP-related or on more June-September rolls, and have now extended losses to 93 ticks at 160.52, while Euribor futures are as much as 4.5 ticks in the red. Elsewhere, and in the absence of anything major on the UK front ahead of a 2023 Gilt tap and BoE commentary, the 10 year Liffe benchmark and Short Sterling contracts are largely following suit with the former flitting between 122.25-68 vs yesterday’s 122.84 settlement price and the 3 month strip down 4 ticks at worst. Back to supply, German Bobls drew better demand than the 5yr DMO tap (see headline feed for further details), but cored debt futures knee-jerked to fresh intra-day lows amidst hedge unwinds, at 131.30 on Eurex and 122.21 on Liffe.

Commodities are mixed with Brent (+USD 0.4) and WTI (-USD 0.2) as prices come off recent highs after nursing recent losses with overnight gains post-API, which showed a larger than expected draw in crude stockpiles. Nonetheless, the inventory report pressured RBOB after a significant build in gasoline stockpiles, although this was then gradually pared throughout the session. Overnight Russia’s Energy Minister Novak reiterated OPEC+ countries should consider a possible easing of oil output restrictions depending on demand conditions. Elsewhere, gold is trading marginally lower albeit still rangebound and currently testing USD 1295/oz to the downside. Meanwhile, Chinese iron ore futures rose to 2-week highs amid an explosion on Tuesday at an iron ore mine in China’s north-eastern province of Liaoning. LME base metals are performing well with LME 3-month copper rising as much as 0.8%, its highest since late February, while LME aluminium climbed to its highest since May 10th earlier in the session.

Looking at the day ahead now where it’s a very quiet one for data with Q1 nonfarm productivity and unit labour costs (final revisions) and the April trade balance in the US the only releases of note. Elsewhere, the ECB’s Praet, Knot, Hakkarainen and Angeloni as well as BoE’s McCafferty are due to speak at various stages through the day. Meanwhile, the EU banking authority Chairman Enria and Bank of Portugal Vice Governor Ferreira will also speak at a conference on supervision and regulation of the financial industry.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -2.9%
  • 8:30am: Revisions: Trade Balance
  • 8:30am: Nonfarm Productivity, est. 0.6%, prior 0.7%
  • 8:30am: Unit Labor Costs, est. 2.8%, prior 2.7%
  • 8:30am: Trade Balance, est. $49.0b deficit, prior $49.0b deficit

DB’s Jim Reid concludes the overnight wrap

It might be the hangover effect from last week or a bit of a lull in the calendar ahead of the Fed and ECB next week but whatever the reason, markets haven’t really got going this week. A combination of NAFTA headlines, the speech from new Italian Prime Minister Giuseppe Conte and some pressure on Oil prices meant markets stalled a bit yesterday but it was hardly a run for the hills situation as the S&P 500 did still manage to bat on to a small +0.07% gain after European bourses had faded from early highs. The Dow finished -0.06% lower although the Nasdaq (+0.41%) and Russell 2000 (+0.68%) bourses continue to shrug off any attempts to slow them down by climbing to yet another all-time high.

Just on those NAFTA headlines, what got a bit of airtime yesterday was White House economic advisor Larry Kudlow’s comments in an interview with Fox News saying that President Trump’s preference was to “actually negotiate with Mexico and Canada separately”. The read through being that the US was therefore seeking bilateral NAFTA talks which in theory would mean leaving NAFTA. Although Kudlow was also quick to point out that the President doesn’t plan to quit the Agreement. As DB’s Alan Ruskin noted yesterday the issue here is the disruptive back and forth rather than the negotiating position itself. This also means trade uncertainties have the potential to linger for a while longer if  Trump chooses to go country to country.

As for Italy and the new Prime Minister’s speech, the BTP market was already pretty weak going into Conte’s speech but did then proceed to sell-off a little more after he spoke. By the closing bell 2y yields were +27.7bps higher and 10y yields +26.6bps higher. To be fair it’s getting harder to judge what a ‘big’ move is in the BTP market now given that the average daily change in basis points over the last 7 sessions for 2y BTPs has been 65bps. In contrast 10y Bund yields were -5.1bps lower yesterday (the spread to BTPs therefore widening 30bps and for the first time since last Tuesday). Treasuries ended -1.5bps lower at 2.929%.

In terms of the speech itself, to be honest it didn’t appear that Conte was overly controversial. Indeed there was talk of reducing the current huge public debt burden and also focusing on economic growth pursued within a framework of financial stability and market trust. There was no mention of the single currency or pension reform although the nervousness in the bond market was likely more a factor of calls for a citizen’s income for the poor and curbs on immigration which, while not new, attracted unsurprising headlines. So with bond markets hypersensitive at the moment that was probably enough for investors to take some profits on the recent BTP rally. The FTSE MIB also turned an early +0.83% gain into an -1.18% loss by the end of play, dragging the likes of the IBEX (-0.66%) lower while the DAX (+0.13%) also closed off its early highs. The Euro spent most the session lower but bounced back to a +0.16% gain in the evening following a Bloomberg headline suggesting that the ECB was viewing next Thursday’s monetary policy meeting as a “live” meeting for debating the end of QE. To be fair that didn’t feel like particularly new news.

As noted at the top weakness across the Oil complex was also a factor yesterday, notwithstanding a bit of a bounce back in the evening. Brent ended the session marginally up and just north of $75/bbl (+0.12%), although was down as  much as -1.97% at its lows intraday. This followed the news that the US government had supposedly asked OPEC to increase supply by 1 million barrels a day according to Bloomberg.

This morning in Asia, various trade related headlines are helping to support small gains across risk assets with the Nikkei (+0.23%), ASX (+0.45%) and Hang Seng (+0.37%) all up. Just on those headlines, the WSJ reported that China has offered to buy up to $70bn of US farming and energy related products if the US abandons its tariffs plans. Later on, unnamed sources clarified to Bloomberg that much of that represent imports China had already promised to buy, so the incremental amount is likely smaller at $25bn. Meanwhile, Reuters reported that Chinese telecoms company (ZTE) has signed an agreement in principle with the US that would lift the ban on buying from American suppliers. The fine is expected to be up to US$1.4bn on ZTE. Finally Treasury Secretary Steven Mnuchin has, according to ABC News, supposedly told President Trump to exempt Canada from tariffs on steel and aluminium. That’s helping the Canadian Dollar to rise slightly this morning while US equity futures are also up slightly.

Coming back to politics briefly, here in the UK Sky News reported yesterday that MPs are set to vote next Tuesday on the Lord amendments of the Brexit Withdrawal Bill. Our FX strategists’ view has been that the amendments fail and
the crunch point as one could call it happens later with the EU customs bill where there is greater agreement on staying in the customs union among MPs compared to the multiple amendments on the Withdrawal Bill. Next week’s vote is worth watching however. In the meantime Sterling benefited from a decent bid yesterday versus the Greenback (+0.60% to $1.339) after the May services PMI surprised to the upside at 54.0 (vs. 53.0 expected), which importantly meant it was up 1.2pts from April. That put the composite at 54.5 compared to 53.2 in April and so matching the high this year made back in February. So that should lend some comfort to the BoE following disappointing data of late.

As for the other PMIs, in Europe there were no real surprises in the final May services and composite revisions. The Eurozone services reading was confirmed at 53.8 (down 0.1pts from the flash) and the composite at 54.1 (unchanged versus the flash). Composite prints for Germany (53.4 versus 53.1 flash) and France (54.2 versus 54.5 flash) also saw slight revisions from the flash while as for the noncore, Spain’s composite print surprised slightly to the upside after rising 0.5pts to 55.9 (vs. 55.6 expected), while Italy more or less matched expectations at 52.9 but more importantly held steady versus April. Away from that we did get some softer April retail sales data for the Euro area after sales were reported as rising just +0.1% mom (vs. +0.5% expected), albeit offset by upward revisions to prior months.

Across the pond, in the US the services PMI was actually revised up a fairly robust 1.1pts to 56.8 which puts the composite at 56.6 compared to 54.9 in April and the highest in over 3 years. Backing the data up was the ISM non-manufacturing print for May which came in 2pts higher at 58.6 (vs. 57.6 expected). Notably prices paid rose to a very solid 64.3 from 61.8, meaning its edging closer to the 2017 seven-high of 65.9. Finally the April JOLTS data, while backward looking, still showed an increasingly tight labour market. The number of job openings rose to a fresh record high of 6.698m (vs. 6.350m expected) with vacancies outpacing the number of unemployed workers. Meanwhile the  quits rate remained at its cyclical high of 2.3%.

Looking at the day ahead now where it’s a very quiet one for data with Q1 nonfarm productivity and unit labour costs (final revisions) and the April trade balance in the US the only releases of note. Elsewhere, the ECB’s Praet, Knot, Hakkarainen and Angeloni as well as BoE’s McCafferty are due to speak at various stages through the day. Meanwhile, the EU banking authority Chairman Enria and Bank of Portugal Vice Governor Ferreira will also speak at a conference on supervision and regulation of the financial industry.

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/TUESDAY NIGHT: Shanghai closed UP 0.97 points or 0.03%   /Hang Sang CLOSED UP 165.65 points or 0.53%    / The Nikkei closed UP 86.19 POINTS OR 0.38% /Australia’s all ordinaires CLOSED UP .46%  /Chinese yuan (ONSHORE) closed UP at 6.3948/Oil UP to 65.20 dollars per barrel for WTI and 75.28 for Brent. Stocks in Europe OPENED ALL GREEN//.  ONSHORE YUAN CLOSED UP AT 6.3948 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3826/ONSHORE YUAN TRADING STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING MUCH STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

3 a NORTH KOREA/USA

North Korea/South Korea/usa

Trump demands from Kim a commitment for a nuclear disarmament timetable

(courtesy zerohedge)

Trump Will Demand Kim Commitment To Nuclear Disarmament Timetable

With less than a week to go until the historic Trump-Kim summit on June 12 in Singapore, details of the US-led agenda are starting to emerge, with Bloomberg and Reuters reporting that the White House wants North Korean leader Kim Jong Un to commit to a timetable to surrender his country’s nuclear arsenal when he meets with Trump during the high-stakes summit that could last as long as two days, or end right there and then if Kim balks at the demand.

Citing a US official, Bloomberg reported that Trump has been advised not to offer Kim any concessions as the White House seeks to put the onus on the North Koreans to make the summit a success; having already canceled the meeting once, the president is reportedly determined to walk out of the meeting if it doesn’t go well.

Alternatively, if things go as planned and if the two men hit it off, Trump may offer Kim a follow-up summit at his Mar-a-Lago resort in Palm Beach, Florida, as soon as this fall.

Other than confirming what we already knew, namely that the two will first meet next Tuesday at 9 a.m. at the Capella Hotel on Singapore’s Sentosa Island, the White House has described no schedule for the summit.  If the first meeting goes well, there will be further events that day and perhaps even the next day.

The Capella Hotel stands on the island of Sentosa in Singapore

Trump will be joined in Singapore by Secretary of State Mike Pompeo, White House chief of staff John Kelly and national security adviser John Bolton. The U.S. delegation also tentatively includes the CIA’s top Korea expert, Andrew Kim; the National Security Council’s point person on the Koreas, Allison Hooker; and White House deputy chief of staff Joe Hagin, who has negotiated much of the groundwork for the summit.

CNBC

@CNBC

Trump’s summit with North Korea’s Kim will take place at the Capella Hotel on Singapore’s Sentosa Island. https://cnb.cx/2JduCO9 

Absent from Trump’s delegation will be some notable names: Vice President Mike Pence, who will remain in the U.S., and Defense Secretary Jim Mattis. Mattis said Sunday at a defense conference in Singapore that North Korea will win relief from crippling U.S. economic sanctions “only when it demonstrates verifiable and irreversible steps to denuclearization.”

To be sure, North Korea has publicly bristled at U.S. officials’ insistence on the so-called “Libya Approach”, i.e., that it must agree to disarm before receiving anything in return, instead calling for a step-by-step approach to ridding the Korean Peninsula of nuclear weapons. Trump has indicated flexibility in his approach, although it is still unclear what a path to denuclearization would look like.

Pompeo, who has traveled to Pyongyang twice since March, has prepared Trump for the summit in eight to 10 hours of briefings per week for several weeks, two U.S. officials said. The CIA’s Kim has usually joined him. On Tuesday, former Sens. Sam Nunn and Richard Lugar, who cosponsored a law aimed at securing and dismantling nuclear weapons after the fall of the Soviet Union, briefed Trump and Pence on the lessons they had learned.

Some more details on the actual summit:

Typically, the president’s preparations for meetings with foreign leaders are shaped by several administration officials and result in a pair of briefing books. One, on customs and protocol, primarily is assembled by the State Department and is shared with much of the U.S. delegation. The other is a more exclusive document for the president that includes a biography of the foreign leader assembled by the U.S. intelligence community. It also sometimes includes memos from individual Cabinet members with their private assessments of the leader.

Trump’s aides consider him ready for a summit in which the White House believes he holds an advantage — Singapore is a Westernized metropolis and will be the farthest Kim Jong Un has traveled since taking charge of his country in 2011. It was not clear if Kim still demands that someone foot the bill for his hotel room.

Meanwhile, U.S. officials reportedly believe Kim is extremely worried about security at the summit and is fearful of assassination attempts, according to two people familiar with the matter.

Frustrated after the North Koreans cut off communications for about five days last month and snubbed Hagin at a preparatory meeting in Singapore, Trump canceled the summit on May 24. Talks resumed, however, and Kim dispatched an envoy — spy chief Kim Yong Chol — to Washington on Friday to deliver a letter to Trump. The letter, handwritten by Kim in Korean, expressed his desire for the summit.

Trump said later that day that the Singapore meeting was back on. Kim Yong Chol also brought Trump a gift, and Trump reciprocated with a gift for Kim. White House officials declined to describe either present.

On Tuesday, the White House announced that the summit will be held at the Capella Hotel on Singapore’s southern island of Sentosa, as had been leaked previously.

To avoid “incidents”, Singapore airspace will be restricted during the planned summit, according to a notice posted by the International Civil Aviation Organization and the U.S. Federal Aviation Administration said Wednesday.

3 b JAPAN AFFAIRS

end

c) REPORT ON CHINA/HONG KONG

CHINA/

China in the past few weeks witnessed some banking defaults.  In order to ensure banking liquidity, the POBC has now injected a massive $72 billion into the Chinese banking system

(courtesy zerohedge)

China Offers $72 Billion MLF “To Ensure Banking Liquidity Remains Stable”

Just hours after we warned that it was time to start worrying about China’s debt default avalanche, and shortly after the PBOC lowered its credit quality restrictions for collateral, China offered its Medium-term Lending Facility (MLF) to inject CNY463bn (~$72bn) of liquidity.

As we detailed earlier, the recent blow out in Chinese corporate bond spooked none other than the PBOC, which last last Friday announced that it will accept lower-rated corporate bonds as collateral for a major liquidity management tool in a move that analysts see as designed in part to restore confidence in the country’s corporate bond market.

Specifically, the central bank said that it had decided to expand the collateral pool for the medium-term lending facility (MLF) to include corporate bonds rated AA+ or AA by domestic rating agencies.  The central bank also added as collateral financial bonds rated AA and above with proceeds to support rural development, small enterprises and green projects, as well as high-quality loans supporting green projects and small enterprises, the PBoC said in a statement posted on its website.

The PBoC said the expansion of collateral would “help alleviate the financing difficulties of small companies and to promote the healthy development of the corporate bond market.”

CICC confirmed as much, writing in a note that “the expansion of collateral for MLF, to some extent, is intended to bolster confidence in lower-rated corporate bonds … and to avoid creating an apparent net financing gap which would impact the real economy.”

Translated: the PBOC is providing yet another backdoor bailout to China’s latest and greatest distressed sector in hopes of avoiding an avalanche of defaults as credit conditions become increasingly tighter as the PBOC hikes tit for tat with the Fed.

*  *  *

Today’s MLF was offered at 3.3% -very marginally above the 3.25% one-year term rate for the last MLF in February saying it was “to ensure banking liquidity remains stable”

Notably, 259.5 billion yuan of MLF loans werer set to mature on Wednesday, so today 463 billion yuan really exposes the need for liquidity (rolling all the prior loans and an additional 203.5 billion yuan was required).

However, there was also a net withdrawal of open market operations of 180 billion yuan due to maturing repo agreements.

Which means the net liquidity injected today was 23.5 billion yuan (still around $3.6 billion).

While today’s PBOC intervention may delay the moment of reckoning for the world’s most indebted corporate sector, it will not eliminate it. One potential catalyst: Chinese companies have to repay a total of 2.7 trillion yuan of bonds in the onshore and offshore market in the second half of this year, and together with another 3.3 trillion yuan of trust products set to mature in the second half, the funding problems will get worse. As already more than eight high-yield trust products have delayed payments so far this year.

To be sure, Beijing will do everything in its power to avoid a default waterfall, but another emerging – pardon the pun – risk is that as Boyd concludes, negative sentiment towards Chinese corporates could become a major headwind for EM debt, even as the crises in Argentina, Brazil and Turkey appear to calm down, resulting in another significant capital outflow from Emerging Markets, and even more pained complaints from EM central bankers begging the Fed to halt its tightening, or else.

END

China/USA

Tensions flare up again as US nuclear bombers fly over the Spratly Islands

(courtesy zerohedge)

U.S. Nuclear Bombers Flyby Disputed Islands Amid Escalating Tensions With China

A U.S. defense official Monday told CNN’s Washington bureau that two nuclear-capable U.S. Boeing B-52 Stratofortress bombers flew very close to the heavily contested and militarized Spratly Islands in the South China Sea.

The aggressive flybys come days after Secretary of Defense James Mattis warned of “consequences” if Beijing continues weaponizing the South China Sea, further accusing China of “intimidation and coercion” in the Indo-Pacific region, which he specifically made clear that Washington has zero plans on leaving the heavily disputed area.

His speech, well, it promoted an angry Chinese response during IISS Shangri-La Dialogue, a civilian and military defense summit in Singapore, where Lieutenant General He Lei told reporters, “Any irresponsible comments from other countries cannot be accepted.”

As we explained on Saturday during the IISS Shangri-La Dialogue,” The United States and China appear to be headed for a military collision in the Southeast Asia region.”

Beijing claims that most of the resource-rich sea, which overlaps claims from Brunei, Malaysia, the Philippines, Taiwan, and Vietnam, belongs to China. To reinforce such claims, Beijing quickly built artificial islands and erected military bases on Parcels and Spratly islands. Regarding trade, more than USD five trillion in shipping trade flows through the region per annum.

The U.S. defense official, who has classified knowledge of the B-52s original flight plan, said the operation called for two nuclear-capable U.S. Boeing B-52 Stratofortress bombers to fly roughly 20-miles from the militarized Spratly islands.

U.S. Air Force Captin Victoria Hight, a spokeswoman for U.S. Pacific Air Forces, told CNN that the bombers did not fly in the vicinity of the islands.

A Pentagon spokesperson said the Guam-based bombers were on “a routine training mission,” departing from Andersen Air Force Base “to the Navy Support Facility” at Diego Garcia Atoll, a British Indian Ocean Territory.

U.S. Lieutenant Colonel Chris Logan said the operation was part of U.S. Pacific Command’s “Continuous Bomber Presence” missions, which he explained are “intended to maintain the readiness of U.S. forces.”

“U.S. Pacific Command’s CBP missions, which have been routinely employed since March 2004, are flown in accordance with international law,” Logan added.

The B-52s operation to buzz China’s militarized islands came shortly after Mattis warned Beijing that “the placement of these weapons systems is tied directly to military use for the purposes of intimidation and coercion,” adding that “China’s militarization of the Spratlys is also in direct contradiction to President Xi Jinping’s 2015 public assurances in the White House Rose Garden that they would not do this.”

U.S. Dept of Defense

@DeptofDefense

Mattis discusses US leadership and security challenges during the June 2. The Dialogue, held by the @IISS_org, is an inter-governmental security forum attended by defense ministers and delegates from more than 50 nations.

Last week, the Pentagon increased its rhetoric about China’s militarization of islands in the South China Sea, even as the Trump administration asked Beijing for cooperation on North Korea. When questioned by a journalist about the ability of the Pentagon to “blow apart” China’s artificial islands, Lieutenant General Kenneth McKenzie, director of the Joint Staff, told reporters, “I would just tell you that the United States military has had a lot of experience in the Western Pacific taking down small islands.”

Meanwhile, Beijing reacted to the threat via Pentagon statements. On Thursday, Chinese Foreign Ministry spokeswoman Hua Chunying said the U.S. accusing China of militarizing the islands was, “like a thief crying, Stop thief!’”

“Why does the U.S. choose to sail every now and then close to Chinese South China Sea islands and reefs? What is the U.S. trying to do?” she said.

Last month, we reported that the U.S. Navy conducted its “freedom of navigation” patrols near the heavily disputed islands to demonstrate the right to sail through those international waters, which sparked outrage via Bejing.

From Mattis to Lt. General He militant jawboning this past weekend at the IISS Shangri-La Dialogue, to U.S. Naval warships and B-52s encircling the militarized islands, followed by China’s warning that any tariffs by Trump would kill a trade deal between the U.S. and China, it appears that Sino-American relations continue to plunge. It seems like the heavily disputed waters in the South China Sea could emerge as the next geopolitical and military flashpoint. Which, when one considers that according to the RAND Corp, and the IMF, China will surpass the U.S. as the world’s leading military superpower some time in the next 2 decades… As stated below, the trend is evident, Washington and Bejing are preparing for war.

END

4. EUROPEAN AFFAIRS

A must read commentary on the plight of the North: South divide in Europe.  There are 3 possibilities that Germany must pay:

  1. Germany and the creditor nations forgive enough debt for Europe to grow. This is the transfer union solution.
  2. Permanently high unemployment and slow growth in Spain, Greece, Italy, with stagnation elsewhere in Europe
  3. Breakup of the eurozone

Probably the best outcome would be for Italy to leave or Germany leave, laving the periphery intact

(courtesy MishShedlock/Mishtalk)

8. EMERGING MARKET

INDIA

contagion is spreading fast as India was forced to hike rates to stop the drop in the rupee.  It will not help as the growing shortage of dollars is playing havoc to all emerging nations

(courtesy zerohedge)

Why India’s Surprise Rate Hike May Lead To The Next Emerging Market Crisis

Following RBI governor Urjit Patel’s Op-ed earlier this week, in which he lamented the growing dollar shortage as a result of the Fed’s ongoing tightening, it is perhaps not surprising that this morning India became the latest central bank to “surprise” markets with an unexpected rate hike as the country did everything it could to if not prevent, then delay the capital outflow Patel hinted at.

And it was a “surprise”, because only a third, or 14 of 44 economists surveyed by Bloomberg, predicted the RBI would hike the repurchase rate by 25 bps to 6.25%, as it did, with the rest predicting an unchanged announcement.

To be sure, the decision was welcomed domestically, where inflation has been trending higher, and Economic Affairs Secretary Subhash Chandra Garg said in a twitter post that he Welcomes the “monetary policy statement. Quite balanced assessment of growth, inflation and external situation and expectations.”

The market was a bit more tempered, although after an confused initial reaction to the hike in the INR, which first jumped, the slumped, it eventually closed near session highs, just as the RBI had intended.

The desired response may not last, however.

In a note by Bloomberg’s Abhishek Gupta, the economist writes that the rate hike may not help the rupee, because as a standard rule of thumb, while raising interest rates attracts capital inflows, causing the local currency to appreciate, this is generally only true for developed economies, and doesn’t necessarily hold for emerging markets, where capital typically doesn’t have free mobility. For that reason, a rate hike by the Reserve Bank of India “would likely add to downward pressure on the rupee, which is already suffering from higher crude oil prices.”

Perhaps Gupta is right, but at least the kneejerk move was as one would expect. As for tomorrow, we’ll see.

Separately, in its comments on the RBI’s surprise move, Nomura’s Sonal Varma said that the Reserve Bank of India’s decision to maintain a neutral stance signals that it doesn’t want to embark on “a tightening cycle” and that it remains data dependent. The bank said it sees an additional 25 bps rate hike in August as both economic growth and inflation are likely to head higher in coming months. Looking further ahead, Nomura said it sees a pause after that as tightening financial conditions, higher oil prices and political uncertainty may slow economic activity after September.

Which brings us to the main point.

In his take on the RBI’s surprise decision, Bloomberg macro commentator Srinivasan Sivabalan writes that after today’s rate hike, “the turmoil that has moved from one emerging-market currency to another this year (Argentina, Turkey, Indonesia and now Brazil) is threatening to claim India as the next victim.” Specifically, the economistenvisions the “familiar coming together of economic doubts and political risks” and lists the following three risk factors which may see the EM contagion spread to the world’s second most populous nation.

  • While the central bank raised interest rates to keep a lid on inflation (and support the rupee), the move may harm growth that is uneven, as evidenced by yesterday’s PMI miss. That raises the bar for further hikes.
  • In addition, some government advisors have been arguing against higher interest rates, further complicating the central bank outlook.
  • Prime Minister Modi is meanwhile looking a shade more vulnerable going into 2019’s elections – his Bharatiya Janata Party and its allies won just three of the 14 seats for parliament and local assemblies in by-elections in May, a united opposition scooped up the rest. If the opposition comes together and poses a more serious challenge this time around, Modi – and investors banking on his victory – may be in for a rude awakening.

As a result, he concludes, investors will be closely watching the central bank to determine how seriously it sees the risk of further currency losses, and whether it is prepared to become more actively involved, even as the economy leaves very little room for additional tightening.

Ultimately, if India’s only recourse is to beg the Fed to stop its tightening cycle and balance sheet reduction, the rehearsal to the EM crisis looks like it will soon spread to what may soon be the real ground zero of the real EM crisis.

END

BRAZIL
A good look at the deteriorating conditions inside Brazil and why the Brazilian real is plummeting
(courtesy Jeffrey Snider/Alhambra Partners)

Brazil Battered: This Is What Happens When The Dollar Double Whammy Lands On You (Again)

Authored by Jeffrey Snider via Alhambra Investment Partners,

A recent poll in Brazil showed that one-third of Brazilians favor “military intervention.” The country had been gripped by a crippling trucker’s strike, the results of which have been almost complete economic shutdown. Intervention, as it is softly termed, would be nothing less than a coup.

The direct cause of the strike is quite simple. Under former President Dilma Rousseff, the state used national oil company Petrobras to subsidize the price of diesel. Monthly adjustments were made, but by and large any oil price fluctuations on global markets made little difference to the country’s vast fleet of trucks snaking their way over highways. It nearly bankrupted the company.

After Rousseff was impeached, her replacement Michel Temer removed the subsidy. Petrobras may be healthier for it, but the price of fuel has skyrocketed for anyone using diesel. Adjustments are often difficult.

But they have been made nearly impossible by what’s going on beyond the cost of keeping Brazil’s trucks, and truckers, moving. Like everywhere else on the planet, Temer’s government claims to have ended the recession and fostered recovery.

That’s true but only in the technical sense; there are now positive economic numbers in Brazil after years of only minus signs.

Michel Temer

@MichelTemer

Há dois anos, assumi o governo do Brasil com uma dura missão: retirar o país da sua mais grave recessão, estancar o desemprego, recuperar a responsabilidade fiscal e manter os programas sociais. De fato, tudo isso foi feito.

What the nationwide strike showed was not just the unrest created by uneasy shippers, it was the massive unease that permeates a country whose economy has shrunk.

Like Italians, Brazilians are starting to get the notion it isn’t coming back.

“We have watched a flirtation with collective suicide,” wrote rightwing commentator Reinaldo Azevedo, who compared Brazilians heading to the polls in October’s congressional and presidential elections to lemmings heading for a clifftop.

Leftist commentators are equally alarmed. “It is a dangerous moment,” said Laura Carvalho, a professor of economy at the University of São Paulo. “This is related to the economic crisis, the political crisis, the corruption scandals.”

Economic malaise or, dare I write, depression is a pressure vessel. Whatever social divisions will always exist wherever on Earth, they become increasingly untenable where hopelessness sets in without the medicine of opportunity. There’s a reason every political regime seeks robust economic growth, it reduces so many even serious social maladies.

The problem since 2008 is that this far into 2018 politicians keep calling it a recovery when it’s not. That can only make things worse, sowing further mistrust and even, as recent events have shown, the very real possibility of total political breakdown. Brazil is not some extreme outlier, it is merely ahead of the curve.

If one may wonder why India’s central bank chief took to the Financial Times this weekend to mildly plead with the Federal Reserve to do something (though that something would be just as ineffectual and irrelevant as anything the Fed has done or might do) about the world’s recent flaring “dollar” problems, this would be the prime example. In public, they all say recovery; in private, authorities might still use the term with each other but their fingers are crossed, their brows are furled, and they are surely covered in sweat while forming the word on their lips.

Many officials particularly in EM nations understand the peril. In the US, we were largely spared the wrath of the “rising dollar”, taking only a near recession downturn for that cause. But it’s something of a mistake to think we were lucky in that regard; it was merely a continuation of an eleven-year monetary saga without an end yet in sight. We took our lumps in 2008 and early 2009.

Many if not most EM economies survived the Great “Recession” with no prolonged collapse. They recovered quickly, but it didn’t last. By 2012, after the big eurodollar event in 2011, things were already coming apart. Brazil like China went through a noticeable rough spot in 2013, but that merely forewarned what was to come. To these places, what happened in 2015-16 was for them their 2008.

The statistics so far this year bear that out. While positive for the most part, again that is meaningless especially when compared to several years of serious contraction. A small rebound after a big drop is practically indistinguishable from that drop. This, quite naturally, appears to be the way Brazilians are feeling about the “recovery”, a sentiment they share with people all over the world – at least with those who are not currently sitting in some elected office.

From GDP to Industrial Production to Retail Sales, there is every indication that Brazil’s economy has seen its best of a rebound; and it wasn’t much. Like GDP (+1.2% year-over-year in Q1 2018, following +2.1% in Q4 2017 and +1.4% last Q3) there is the growing sense that things may already be slowing again after such a brief and small reprieve.

That all starts with, as always, the “dollar.” The one thing that doesn’t yet plague Brazil’s system is high consumer price inflation. During the real’s crash in 2014 and 2015, consumer prices necessarily skyrocketed as the cost of funding the country’s “dollar short” had to have been passed on to Brazil’s workers and consumers.

With this particular currency once again leading the renewed EM crisis, this small positive isn’t likely to be the case in the coming months.

There is every possibility that things could go from really bad to worse as BRL ticks back down toward 4.00, and the world’s Economists struggle to define let alone explain it.

And the media in the developed world will dismiss all of this as Brazil being Brazil, South America’s basket case reverting to type.

The siren song of globally synchronized growth has gripped all commentary, and they aren’t about to let it go now. Certainly not for the other side of the eurodollar when FOMC officials who despite their entire track recordassure everyone there couldn’t possibly be anything wrong in banks, banking, and funding. For them, there is no eurodollar system. For everyone who lives on Planet Earth, there is only continuing, escalating fallout from that which still does not officially exist. 

And despite intervention, the real is tumbling…

END

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

Euro/USA 1.1767 UP .0041/ 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 /

USA/JAPAN YEN 110.18   UP 0.300  (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 1.3415 UP  0.0010  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2911  DOWN .0029 (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 WEDNESDAY morning in Europe, the Euro ROSE by 41 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1684; / Last night Shanghai composite CLOSED UP 0,97 POINTS OR 0.03%  /Hang Sang CLOSED UP 165.65 POINTS OR 0.53% /AUSTRALIA CLOSED UP .47% / EUROPEAN BOURSES  ALL GREEN /

The NIKKEI: this WEDNESDAY morning CLOSED UP 86.19 OR 0.38%

Trading from Europe and Asia

1/EUROPE OPENED ALL GREEN 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 165.65 POINTS OR 0.53%  / SHANGHAI CLOSED UP 0,97 POINTS OR 0.03%  /

Australia BOURSE CLOSED UP .47%

Nikkei (Japan) CLOSED UP 86.19 POINTS OR 0.38%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1294.75

silver:$16.54

Early WEDNESDAY morning USA 10 year bond yield: 2.95% !!! UP 4 IN POINTS from MONDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.10 UP 2  IN BASIS POINTS from TUESDAY night. (POLICY FED ERROR)/

USA dollar index early  TUESDAY morning: 93.65 DOWN 22  CENT(S) from TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 1.945% UP 10  in basis point(s) yield from TUESDAY/

JAPANESE BOND YIELD: +.055%  UP 1/10   in basis points yield from TUESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.502% UP 10  IN basis point yield from TUESDAY/

ITALIAN 10 YR BOND YIELD: 2.939  UP 15  POINTS in basis point yield from TUESDAY/

the Italian 10 yr bond yield is trading 144 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES TO +.465%   IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1773 UP .0047(Euro UP 47 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 110.05 UP 0.164 Yen DOWN 16 basis points/

Great Britain/USA 1.3411 UP .0005( POUND UP 5 BASIS POINTS)

USA/Canada 1.2912 DOWN  .0030 Canadian dollar UP 30 Basis points AS OIL FELL TO $64.84

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This afternoon, the Euro was UP 47 to trade at 1.1773

The Yen FELL to 110.05 for a LOSS of 16 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 1.3411/

The Canadian dollar GAINED 30 basis points to 1.2912/ WITH WTI OIL FALLING TO : $64.84

The USA/Yuan closed AT 6.3880
the 10 yr Japanese bond yield closed at +.055%  UP 1/10  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield UP 6   IN basis points from TUESDAY at 2.968 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.124  UP 6  in basis points on the day /

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

Your closing USA dollar index, 93.56  DOWN 32 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 TUESDAY: 1:00 PM PM

London: CLOSED UP 25.57 POINTS OR 0.33%
German Dax :CLOSED UP 42.94 OR 0.34%
Paris Cac CLOSED DOWN 3.39 POINTS OR 0.06%
Spain IBEX CLOSED UP 105.20 POINTS OR 1.09%

Italian MIB: CLOSED UP 57.44 POINTS OR 0,26%

The Dow closed UP 346.41 POINTS OR 1.40%

NASDAQ closed UP  51.28 OR .67%4.00 PM EST

WTI Oil price; 64.84  1:00 pm;

Brent Oil: 74503 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 61.93 DOWN 22/100 ROUBLES/DOLLAR (ROUBLE HIGHER BY 22 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO +.465% 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:$65.00

BRENT: $75.69

USA 10 YR BOND YIELD: 2.97% the dropping yields signify markets are in turmoil

USA 30 YR BOND YIELD: 3.12%/

EURO/USA DOLLAR CROSS: 1.1775 UP .0049  (UP 49 BASIS POINTS)

USA/JAPANESE YEN:110.18 UP 0.305 YEN DOWN 31 BASIS POINTS/ .

USA DOLLAR INDEX: 93.64 DOWN 24 cent(s)/dangerous as the HIGHER dollar IS DESTROYING THE EMERGING MARKETS.

The British pound at 5 pm: Great Britain Pound/USA: 1.3413 UP 0.0008  (FROM YESTERDAY NIGHT UP 8  POINTS)

Canadian dollar: 1.2943 DOWN 2 BASIS pts

German 10 yr bond yield at 5 pm: +465%


VOLATILITY INDEX:  11.64  CLOSED  down 0.76

LIBOR 3 MONTH DURATION: 2.319%  .

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

TRADING IN GRAPH FORM FOR THE DAY

The Melt-Up Is Back As VIX Is Crushed To 11

Everything is awesome again…

The S&P 500’s dip negative around 11ET (right around the European Close) was met with a wall of buying, until Europe actually closed at 1130 then stocks went sideways. until around 1400ET (after Trump’s NAFTA comments), US equities were panic-bid… Even Trannies gained despite oil’s weakness… The Dow (breaking above 25k) led the markets today (thanks to BA, GS, and UNH)

Since the start of June its been a buying panic every morning…

VIX tumbled to an 11 handle…

For the first time since Feb 1st, RVX/VIX (Russell 2000 VIX / S&P 500 VIX) ratio rose above 1.2 – the 85-day stretch below that level is the longest in history…

S&P 500 Financials actually outperformed tech today (for once), breaking back above the pre-Italy chaos levels from last week…European banks, not so much…

Meanwhile, Musk made some more big promises and Tesla bond and stock shorts got mauled…

“Most Shorted” Stocks had their faces ripped off once again in a non-stop squeeze this week…

Treasury yields pushed higher all day today as prospects for the end of easy money in Europe helped the record bond shorts…

But 10Y remains below 3.00% for now…

And the yield curve steepened a little more…back to Memorial Day levels…

Italian bonds tumbled…

The Dollar Index tumbled early on but once again found support…

At what appears to be some magical range of the last three weeks…(1168, 1170, 1169, 1168, 1169, 1168,  1171, 1173, 1177, 1170, 1171, 1172, 1171, 1172, 1170…)

USDJPY rallied on the day (Yen weakened), breaking above its 200DMA…

The Brazilian real tumbled at the open and at the close to a new cycle low…

Cryptos took a leg lower today at around 12ET – mirroring the surge that occurred at 12ET yesterday…

Copper soared as hopes for a G-7 trade deal were high (remind us again when the G-& has actually done anything?)…Silver also outperformed…

WTI Crude slumped to two-month lows as inventory data surprised with the biggest aggregate build since 2008…

$1300 remains a key pivot level for gold…

The Gold/Silver ratio tumbled today to its lowest since Feb 1st

And silver’s relative outperformance of oil has sent the ratio notably lower…

But while The Dow hits 3-month highs, once again, the SMART money ain’t buying it…

END

Market trading this morning:

Italian yields spike higher, Europe is imploding and yet the VIX collapses into the 11 column

(courtesy zerohedge)

VIX Plunges To 11 Handle As Italian Bond Yields

Spike

With European stocks tumbling (again), Italian bond yields spiking (again), and redenomination risks surging (again), US investors have decided now is the time to dump protection to its lowest level since January

Europe is imploding again…

And it’s Italy’s fault…

All those $500 million worth of BTPs that Italy’s FinMin bought last week… are now underwater…

The dollar is tumbling as EUR strengthen son ECB comments…

  • ECB’s Praet (Dovish) said inflation expectations are increasingly consistent with their aim, post QE forward guidance on policy rates will then have to be further specified. He further added that markets are expecting an end of QE at end of 2018, this is an observation and input that is up for discussion and that it is clear that next week will need to discuss end of QE program.
  • ECB’s Hansson (Hawk) said the ECB could lift rates before mid-2019 due to “moderately” rising inflation. (Newswires)
  • ECB’s Weidmann (Hawk) said that inflation is now expected to gradually return to levels compatible with their target, adding that market expectation of end of QE by end of 2018 is plausible.
  • ECB’s Knot (Hawk) said it is reasonable to end QE soon inflation outlook is stable and less dependent on stimulus. He adds that the ECB should wind down QE as soon as possible.

Will the dollar break down from its recent range?

All of which means… Sell US vol with both hands and feet…

Oh and ignore the fact that there’s The Fed and the North Korea Summit next week.

Market data

This is a key report and it will be very disappointing to the Fed:  USA productivity growth disappoints in Q1 as unit labour costs surge.  The gain in productivity was .4% quarter/quarter but they were expecting a gain of .6% q/q

(COURTESY ZEROHEDGE)

US Productivity Growth Disappoints In Q1, Unit

Labor Costs Surge

For the eighth straight quarter, US productivity grew in Q1, rising 0.4% QoQ (improving on Q4’s +0.3%). However, the Q1 gain was less than the +0.6% expectation (and well below the preliminary +0.7% level) as Unit Labor Costs accelerated more than expected.

This is the equal longest streak of productivity gains since 2010 (which corresponded to the V-shaped bounce off the great financial crisis lows).

On the bright side for some, unit labor costs rose more than expected up 2.9% QoQ SAAR, the fastest rate since Q1 2017 and has accelerated in each of the last 4 quarters…

However, real compensation declined for the 3rd straight quarter.

end

Seems Trump’s trade war is working;  the deficit is down 2.1% to 46.2 billion dollars from a revised $47.2 billion

(courtesy zerohedge)

Trump’s “Trade War” Is Working: US Trade Deficit Collapses

One month after the biggest plunge in the US trade deficit since the financial crisis – good news for Trump who has engaged in “trade war” with the rest of the world to boost US trader and exports – the good news continued in April, when according to the Census Bureau, the US deficit shrank again, down 2.1% from a revised $47.2BN to $46.2BN – the lowest since September 2017, and beating not only the $49BN consensus estimate, but also also the lowest Wall Street estimate of $46.2BN.

The number was so good, some were wondering why Trump didn’t pre-tweet it, as he did with the payrolls report.

Incidentally, with today’s revision, the March plunge in the US trade deficit has now risen to $10BN, the highest since 2008, and the second biggest improvement in the US deficit on record.

According to the census bureau, the deficit decreased from a revised $47.2 billion in March to $46.2 billion in April, amid a perfect trade environment as exports rose and imports declined for the second month in a row, or as Trump would say, “his policies to boost US trade worked.”

Broken down by category, the goods deficit decreased $1.0 billion in April to $68.3 billion. The services surplus decreased less than $0.1 billion in April to $22.1 billion.

The good news: exports of goods and services increased $0.6 billion, or 0.3%, in April to $211.2 billion. Exports of goods increased $0.3 billion and exports of services increased $0.3 billion.

  • The increase in exports of goods mostly reflected increases in industrial supplies and materials ($1.3 billion) and in foods, feeds, and beverages ($0.7 billion). A decrease in capital goods ($1.4 billion) partly offset the increases.
  • The increase in exports of services mostly reflected increases in other business services ($0.1 billion), which includes research and development services; professional and management services; and technical, trade-related, and other services, in financial services ($0.1 billion), and in charges for the use of intellectual property ($0.1 billion).

Also good news, if only for GDP bean-counters: imports declined, decreasing by $0.4 billion, or 0.2%, in April to $257.4 billion. Imports of goods decreased $0.7 billion and imports of services decreased $0.3 billion.

  • The decrease in imports of goods mostly reflected decreases in consumer goods ($2.8 billion) and in automotive vehicles, parts, and engines ($0.9 billion). Increases in other goods ($1.3 billion) and in industrial supplies and materials ($1.2 billion) partly offset the decreases.
  • The increase in imports of services mostly reflected increases in transport ($0.1 billion), in other business services ($0.1 billion), and in charges for the use of intellectual property ($0.1 billion)

Broken down by trading partner, the March figures showed surpluses with South and Central America ($4.1), Hong Kong ($2.2), United Kingdom ($0.9), Singapore ($0.7), and Brazil ($0.6

Meanwhile, the countries that should be worried that they may fall in Trump’s trade war sights, and recorded deficit with the US in March, included China, of course, with a $30.8 billion deficit, down sharply from $34.2 billion a month earlier, but also the European Union ($13.2), Mexico ($6.0), Japan ($5.9), Germany ($5.6), OPEC ($3.3), Italy ($2.4), India ($2.0), Canada ($1.7), France ($1.6), South Korea ($1.3), Taiwan ($1.1), and Saudi Arabia ($0.9).

Finally, to help Trump make his economic case even stronger, the US deficit excluding petroleum products: after hitting a record in February, continued its dramatic improvement in April, suggesting that whatever Trump is doing to boost overall trade (we already know US petroleum exports are soaring), may be working, as it shrank from over $50BN in February to just $41BN in April.

And now, we expect even more upward revisions to Q2 GDP, which according to the Atlanta Fed will now likely print above 5.0%

end

 a very worrisome report:  Medicare will be insolvent in 8 years, much sooner than expected.  Social security runs out in 2034

(courtesy zerohedge)

Medicare Will Be Insolvent In 2026, Sooner Than Expected; Social Security To Follow In 2034

Medicare’s trust fund has just eight more years of solvency until 2026, and Social Security will be exhausted in 2034, according to Thursday projections by the trustees for the government programs.

While Social Security’s expected depletion is unchanged from last year’s projection, the date for Medicare’s demise was moved up three years.

Social Security is made up of several funds; the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) are combined for the designation OASDI, while Medicare’s Hospital Insurance trust fund is designated HI.

If allowed to expire, beneficiaries would face an immediate reduction of around 20% in benefits.

The costs of Medicare and Social Security will increase substantially as a percentage of GDP through 2035 due to a sharp rise in beneficiaries as baby-boomers retire, and lower birth rates that have persisted since the baby boom resulting in slower growth of the labor force and GDP.

Social Security’s annual cost as a percentage of GDP is projected to increase from 4.9 percent in 2018 to about 6.1 percent by 2038, then decline to 5.9 percent by 2052 before generally rising to 6.1 percent of GDP by 2092. Under the intermediate assumptions, Medicare cost rises from 3.7 percent of GDP in 2018 to 5.6 percent of GDP by 2035 due mainly to the growth in the number of beneficiaries, and then increases further to 6.2 percent by 2092. The growth in health care cost per beneficiary becomes the larger factor later in the valuation period, particularly in Part D.

Over 62 million retirees, disabled workers, spouses and surviving children are tapping into Social Security benefits with an average monthly benefit of $1,294 for all beneficiaries. Medicare, meanwhile, provides health insurance to around 60 million people – most of whom are over the age of 65.

The revised dates for Medicare’s demise raises the chances of a major fiscal battle facing Congress.

The individual tax cuts implemented as part of the GOP tax overhaul are also set to expire at the end of 2025, meaning that lawmakers could have to navigate major changes in federal taxing and spending in short order, just as they did with the 2012 “fiscal cliff.”

Over a long time frame of 75 years, the hypothetical combined Social Security trust fund faces a shortfall of around $13.2 trillion, up from $12.5 trillion last year. –Washington Examiner

Closing the gap would require an immediate hike in the payroll tax of 2.78% to 15.18% or an immediate reduction in current benefits of 17%, according to the Trustees.

If there’s a silver lining in the report, it’s that fewer people are applying for and receiving disability insurance through Social Security while the economy improves. Perhaps this will help the disability insurance fund last past its projected demise in 2032.

end
Having destroyed bricks and mortar operations, Bezos is now thinking about offering home insurance.  That will be probably more difficult to set up but it is possible
( zerohedge)

Bezos Vs Buffett? Amazon Contemplating Offering Home Insurance

Having already destroyed the “brick and mortar” retail sector, and looking to expand into various other industries from groceries to healthcare to banking, it is probably not surprising that Jeff Bezos is quietly seeking to the big kahoona, Berkshire Hathaway, by launching a home insurance business.

As the Information reports, Amazon.com has “contemplated offering home insurance as an offshoot of its development work on robots and other connected devices for the home” with the underlying idea being that robots and other smart devices can be used to monitor for threats such as fires and burglaries, making it possible to offer cheaper premiums.

And while the publication cautioned that there is “nothing that suggests Amazon has any concrete plans for insurance, the fact it was discussed shows how ambitious Amazon is to sell home services.” It is this latest “ambition” that spooked the S&P insurance index which promptly slumped on the news.

That said, some such as Bloomberg macro commentator Michael Regan are skeptical, noting that “home insurance is a complicated industry; it can involve sending adjusters to homes to assess storm damage. And you can’t just store those guys in a warehouse.”

Of course, the premise is relatively simple if all it involves is integrating the various IoT enabled homes to merely sound the alarm when something is wrong: As The Information has previously reported, Amazon sees Alexa-powered devices such as smart locks, light bulbs and the Echo as helping it sell services such as house cleaning.

The risk, of course, is what happens when the underlying technology malfunctions as it recently, and embarrassingly has on at least two occasions, first when Alexa started laughing “creepily” a month ago, without reason, and more recently, when it was revealed that Alexa had been secretly recording a Portland couple’s conversation and then emailed it to a 3rd party. What can possibly go wrong when this same flawed underlying technology is used to secure and protect valuables and lives…

SWAMP STORIES

It seems our central co operative FBI counterintelligence officer, Priestap reports that FBI Strzok played a much more central role in both the Clinton email scandal probes and the Russian collusion probe

(courtesy zerohedge)

Priestap: FBI’s Strzok Played “More Central Role

Than Previously Known” In Clinton, Russia

Probes

Peter Strzok, the FBI counterintelligence agent pulled off Special Counsel Robert Mueller’s probe last year for sending anti-Trump / pro-Clinton text messages to his “lovebird” FBI mistress, played a more central role than previously known in both the Russia and Hillary Clinton investigations, a lawmaker told Fox News on Tuesday. 

The assessment of Strzok’s involvement comes after six hours of closed-door interviews with FBI espionage chief Bill Priestap, along with an analysis of “recent records.”

Chad Pergram

@ChadPergram

Colleague Catherine Herridge rpts a mbrs familiar w/Hse closed-door i-view w/FBI espionage chief Bill Priestap has been cooperative. But says FBI Agent Strzok played an more central role than previously known in Clinton email/Russia investigations beyond Strzok/Page text messages

Priestap was interviewed Tuesday as part of an ongoing joint investigation by the House Judiciary and Oversight committees. Priestap was Strzok’s supervisor and oversaw both the Russia and Clinton investigations.

The lawmaker described Strzok as a very cooperative witness, but added that unanswered questions remained about Priestap’s overseas travel. One line of questioning Tuesday concerned a trip to London by Priestap in May 2016 and whether it was connected to the Russia case.

The trip was referenced by Strzok in a May 4, 2016 text message to FBI lawyer Lisa Page that said “Bill” would be “back from London next week.” –Fox News

Strzok emailed Priestap on January 30, 2016 along with another colleague to express dismay about statements made by former White House Press Secretary Josh Earnest claiming that Hillary Clinton was not the target of the FBI probe into her use of a private server while she was Secretary of State.

“Below not helpful,” Strzok wrote. “Certainly the WH is going to do whatever it wants, but there is a line they need to hold with regard to the appearance of non-interference.”

We also learned in May that Peter Strzok went on a secret trip to Londonin the summer of 2016 to meet with Australian ambassador, Alexander Downer, to describe his meeting with Trump campaign advisor, George Papadopoulos. The FBI kept details of the operation secret from most of the DOJ – with “only about five Justice Department officials” aware of the full scope of the case.

View image on TwitterView image on Twitter

Sean Davis

@seanmdav

It was an assignment so secretive that Peter Strzok giddily texted his side piece about it on an unsecured line. It’s also weird for NYT to characterize the meeting as “not yet reported” seeing as how Strzok’s texts about it have been out for months. https://mobile.nytimes.com/2018/05/16/us/politics/crossfire-hurricane-trump-russia-fbi-mueller-investigation.html 

Fearful of leaks, they kept details from political appointees across the street at the Justice Department. Peter Strzok, a senior F.B.I. agent, explained in a text that Justice Department officials would find it too “tasty” to resist sharing. “I’m not worried about our side,” he wrote. –NYT

And in what appears to reveal Strzok’s own doubts over the case right after he returned from London, a text message he sent to his mistress, former FBI lawyer Lisa Page, reads “I cannot believe we are seriously looking at these allegations and the pervasive connections.”Strzok was reassigned to the FBI’s Human Resources department following the discovery of over 50,000 text messages sent between he and Page, many of which showed overt bias towards Hillary Clinton and against Donald Trump. While Strzok remains on the FBI’s payroll, Lisa Page resigned in May to “pursue other opportunities.”Congressional investigators will interview two other FBI officials later in the month; Michael Steinbach – former head of the agency’s national security division, and Steinbach’s predecessor, John Giacalone. Furthermore, DOJ Inspector General Michael Horowitz – whose highly anticipated report on FBI misconduct is reportedly going to come any day, is also expected to brief lawmakers.
END
This ought to be interesting:  McCabe is seeking immunity so he can testify to the committee.  If he does not get it then he will plead the 5th
(courtesy zerohedge)

McCabe Scrambles To Secure Immunity Before Senate Testimony

Former Deputy FBI Director Andrew McCabe is said to be in negotiations with Senate Judiciary Committee Chairman Chuck Grassley for immunity ahead of his testimony on the upcoming DOJ Inspector General report on the FBI’s conduct during the Clinton email probe.

“Grassley, an Iowa Republican, has quietly requested that several former officials appear in front of the Judiciary Committee to discuss the long-awaited internal Justice Department report, which sources say will detail a series of missteps surrounding the Justice Department and FBI’s investigation into Clinton’s handling of classified information while secretary of state,” reports CNN.

McCabe’s attorney, Michael Bromwich, insisted that “Under the terms of such a grant of use immunity, no testimony or other information provided by Mr. McCabe could be used against him in a criminal case,” adding “Mr. McCabe is willing to testify, but because of the criminal referral, he must be afforded suitable legal protection.”

This is a textbook case for granting use immunity… If this Committee is unwilling or unable to obtain such an order, then Mr. McCabe will have no choice but to invoke his Fifth Amendment privilege against self-incrimination.” -Michael Bromwich

As we reported Friday, federal investigators from the D.C. U.S. Attorney’s office recently interviewed former FBI director James Comey as part of an ongoing probe into whether McCabe broke the law when he lied to federal agents, reports the Washington Post.

Investigators from the D.C. U.S. Attorney’s Office recently interviewed former FBI director James B. Comey as part of a probe into whether his deputy, Andrew McCabe, broke the law by lying to federal agents — an indication the office is seriously considering whether McCabe should be charged with a crime, a person familiar with the matter said. –Washington Post

Of particular interest is that Comey and McCabe have given conflicting reports over the events leading up to McCabe’s firing, with Comey calling his former deputy a liarin an April appearance on The View.

Justice Department Inspector General Michael Horowitz issued a criminal referral for McCabe following a months-long probe which found that the former acting FBI Director leaked a self-serving story to the press and then lied about it under oath. McCabe was fired on March 16 after Horowitz found that he “had made an unauthorized disclosure to the news media and lacked candor – including under oath – on multiple occasions.

Specifically, McCabe was fired for lying about authorizing an F.B.I. spokesman and attorney to tell Devlin Barrett of the Wall St. Journal – just days before the 2016 election, that the FBI had not put the brakes on a separate investigation into the Clinton Foundation, at a time in which McCabe was coming under fire for his wife taking a $467,500 campaign contribution from Clinton proxy pal, Terry McAuliffe. 

During an April appearance on ABC’s The View to peddle his new book, A Higher Royalty Loyalty, where he called McCabe a liar, and said he actually “ordered the [IG] report” which found McCabe guilty of leaking to the press and then lying under oath about it, several times.

Comey was asked by host Megan McCain how he thought the public was supposed to have “confidence” in the FBI amid revelations that McCabe lied about the leak.

It’s not okay. The McCabe case illustrates what an organization committed to the truth looks like,” Comey said. “I ordered that investigation.

Comey then appeared to try and frame McCabe as a “good person” despite all the lying.

“Good people lie. I think I’m a good person, where I have lied,” Comey said. “I still believe Andrew McCabe is a good person but the inspector general found he lied,” noting that there are “severe consequences” within the DOJ for doing so.

Full letter from McCabe’s lawyers to Senator Grassley…https://www.scribd.com/embeds/381104092/content?start_page=1&view_mode=scroll&access_key=key-ourGdBqJdG9ktIskf5m2&show_recommendations=true

END
New questions arise from the Papadopoulos charges and new claims that Mueller threatened him with being an unregistered agent of Israel. We need Bill Priestap’s testimony as to who is this Prof. Misud, who fed Papadopoulos with the false  Russian narrative etc..
this is getting really good…
(courtesy zerohedge)

Bombshell Claim Raises New Questions: Mueller Threatened To Charge Papadopoulos As Unregistered Agent Of Israel

Special Counsel Robert Mueller threatened to charge former Trump campaign adviser George Papadopoulos as an unregistered agent of Israel, according to his wife.

Simona Mangiante Papadopoulos, an Italian attorney who married Papadopoulos roughly 90 days ago, claimed that Mueller had evidence her husband had worked on behalf of Israel without registering as a foreign agent during his time as an energy consultant, and prior to joining the Trump campaign. The claim was made in interviews with the Daily Caller and the Washington Post – where Simona also said George Papadopoulos pleaded guilty to avoid the Israel-linked charges.

“I know he doesn’t have anything to do with Russia,” she told The Post. “We know he was under scrutiny because of his ties to Israel, not his ties to Russia. So what’s this about?

In October 2015, Papadopoulos wrote a column for the Israeli publication Haaretz entitled “Natural Gas Isn’t Just about Israel.” He also attended a series of energy conferences in Israel, including one held in April 2016, just days after he was named to Trump’s campaign, according to Israeli media accounts.

During those years, he became acquainted with Eli Groner, who has served since 2015 as a top aide to Israeli Prime Minister Benjamin Netanyahu. –WaPo

Simona’s new claims are vastly different than what she said in January before she and George married – when she suggested to the Washington Post that Papadopoulos would be remembered like John Dean, the former White House counsel who flipped on Nixon’s administration and became a key witness.

“There’s a lot to come,” she said then. “He was the first one to break a hole on all of this.”

On Tuesday, however, her tune had changed – saying that her earlier comments were misinterpreted and that she and George had reassessed events after learning that Cambridge professor Stefan Halper had been conducting espionage on the Trump campaign for the FBI. Halper hired Papadopoulos to write an energy paper in London in the fall of 2016, paying him $3,000 for his efforts.

George took responsibility for lying to the FBI and cooperated with the government. Cooperating doesn’t mean following an agenda,” she said. “Cooperating doesn’t mean against the president. . . . It means cooperating with the truth.”

Simona says George has been wronged and deserves a pardon from President Trump – that he is “a victim, honestly,” who “made a mistake. He pleaded guilty for that mistake. It would make sense for the president to pardon him.”

Before joining the Trump campaign in March 2016 as a foreign policy advisor, George Papadopoulos lived in London, working as a researcher for the Hudson Institute think tank, and later as an independent energy consultant. Despite his work on Israel, Cyprus and Greece while at the Hudson Institute, a person familiar with the Institute told the Washington Post that nobody from the Special Counsel’s office has ever contacted them regarding Papadopoulos’s work there.

Meanwhile, it was Papadopoulos’ May 10 alleged “drunken barroom admission” to former Australian diplomat Alexander Downer that the Russians had information which “could be damaging” to Hillary Clinton. Papadopolous was originally told of the allged Russian plot two weeks earlier on April 26, by Maltese professor Joseph Mifsud (missing since October 2017) – whose organization George Papadopoulos met his wife through.

Which brings us to an interesting thread

Noting that Papadopoulos and his new wife met on LinkedIn, Twitter user @rising_serpent makes the case that some things just aren’t adding up. The 27-part tweetstorm is condensed underneath the first post:

Rising serpent@rising_serpent

1. Fiction is truly anemic compared to the rich tapestry of the bizarre that we are privy to in daily life: consider this:
Simona Mangiante first connected with Papadopoulos on LinkedIn after Papadopoulos noticed they shared a mutual connection.

2. That connection was Joseph Mifsud, a most mysterious former Maltese government official who ran an institute called the London Centre of International Law Practice in Britain. THE Joseph Mifsud now made infamous by her husbands indictment by Robert Muller.

3. Mangiante, started working at the organization after meeting Mifsud while she was employed at European Parliament in Brussels. Papadopoulos, who had worked for Mifsud’s organization as well, reached out to say he liked her profile picture.

(articleGeorge Papadopoulos, his bride-to-be, and the Russia-linked ‘professor’ who brought them together)

4. Mangiante left the London Centre of International law after three months, after concluding the law office was “a facade for something else.” But the two continued to talk over the Internet, before meeting in person for the first time in New York in spring 2017.

5. Mangiante was introduced to Mifsud in 2012 by Gianni Pittella, a well-known Italian MEP who in 2014 became president of the Socialists and Progressive Democrats group. “I always saw Mifsud with Pittella,” So, Mangiante knew Mifsud for many years before she did Papadopoulos

6. Mangiante worked for 2 European parliament officials, Mairead McGuinness, a vice-president & McGuinness’s Italian predecessor Roberta Angelilli. She was also admin to home affairs committee under Martin Schulz, then a German MEP & now leader of Germany’s Social Democrats

7. So Mangiante moved within the corridors of power within Europe’s Italian Democrats & German social democrats.When her contract expired, Pittella suggested she go work for Mifsud in London who offered her a job in 2016 at the London Centre of International Law Practice

8. in September 2016, Mangiante received a message on the LinkedIn social network from George Papadopoulos. Papadopoulos had worked at the same London Center of International law centre briefly before joining Trump’s campaign. That was the beginning of their acquaintance.

9. It appears that Mangiante started her job around September 2016, the same time as she started corresponding with Papadopoulos. Mangiante was not happy with her work in London.

(articleThe boss, the boyfriend and the FBI: the Italian woman in the eye of the Trump-Russia inquiry)

10. The entire institution seemed “fake”, “artificial”, with Mifsud interested solely in organising political meetings. “I didn’t smell a culture of academia” Mifsud’s diplomatic activity, Mangiante now believes, was a facade. “I never met any Russians there”

11. Mangiante quit her post there after three months, in November 2016. In the meantime, Mangiante’s romance with George began. After several unsuccessful efforts to get together in London, they met in March 2017 in New York. They hit it off, began dating and fell in love

12. Prior to meeting Mangiante, FBI had interviewed Papadopoulos Jan 2017 in connection with the collusion investigation. Papadopoulos gave federal agents a false account of his meetings with Mifsud. So he deleted his Facebook account and changed his cellphone number.

13. So almost 3 months prior to Papadopoulos actually meeting Mangiante he was already in the crosshairs of FBI, he was deleting facebook, changing phone numbers and like James Bond, was actively romancing a beautiful woman. Plausibility check # 1, what do you think ?

14. On the day Papadopoulos pleaded guilty, Mangiante was at her boyfriend’s family home in Chicago. There was a ring at the door. A casually dressed man informed her that he was a federal agent. He was serving her with a subpoena from Mueller.

15. Mangiante decided not to hire a lawyer after discovering they cost $800 an hour. She turned up alone at Chicago FBI headquarters. the FBI was interested in her relationship with Papadopoulos. Was it genuine? “They asked: “Do you love him?” “Yes”. They replied: ‘He is lucky’”

16. Plausibility check # 2. Do you think about how much lawyers cost when the FBI tells you that your boyfriend is chin deep in legal manure and you may be too? Stormy Daniels gets a lawyer for free, but someone being investigated by the FBI thinks about a lawyers cost?

17. March 2016 Papadopoulous learned he would be Trumps foreign policy advisors, he ended up meeting Mifusud on March 14 2016 while he was traveling in Italy (where Mangiante was, coincidentally). Important: He met Mifsud first in Italy, see indictment (click here)

18. Mifusd’s interest is piqued when he learned that Papadopoulos was going to be involved with the Trump campaign. They meet again subsequently in London on March 24th 2016 when Mifusd was accompanied by the “Putins niece” Olga Vinogradova, who like Mifsud has now disappeared.

19. Papadopoulos met Mifusd again on April 24th 2016 for breakfast at a London hotel. This is the first time that Mifsud tells him he knows the Russians have “dirt” on Hillary. Mind you the DNC leaks weren’t published till June/July 2016. Important point right there.

20. That DNC was hacked by the Russians remains a matter of great contention and those with exquisite expertise in cybersecurity don’t agree with the assertion that Russians hacked it. Remember the only people that conducted the investigation into the hack were CrowdStrike

21. Now we turn the bizarre dial to 11, why did Papadopoulos say to Mangiante when he was looking at her LinkedIn profile that they worked for the same company? Two things wrong with this: I couldn’t find any evidence that Paps worked for the London center of international law

22. and if he did, he would have known Mifsud from his work, so the whole theory of his being introduced to Mifusd falls flat.

23. The BIG question: by the time Papadopoulos began corresponding with Mangiante in Sept 2016, he was a part of the Trump Campaign, what was he looking at LinkedIn profiles of people working at the London center of international law for? What am I missing here?

24. I have more questions than answers, but the timeline just doesn’t add up, there is a lot missing here apart from my functioning neuronal circuitry. All of this is important in the context of Mangiante’s recent media blitz and her asking for Trump to pardon Papadopoulos.

25. Feel free to add to what I have just outlined. Things are not only a little askew here but seems that we are seeing this whole matter askance and many facts are obscured by layers of hearsay disguised as factual information. -fin.

26. Addendum: anybody else find it most peculiar that Mangiante worked for Italian and German social democrats? Especially now that we know that MI6 (Downer/Steele/Halper) were probably involved with the genesis of the Steele dossier?

27. Mifusud appears to be more aligned with the UK than he is with the Russians, Mangiante herself said so. Also she has since dialed down her touting of her husbands role in the Trump campaign, why?

Questions?

end
Leaks from IG Horowitz report shows Comey was insubordinate and also Horowitz offers a scathing attack onLynch
(courtesy zerohedge)

OIG Report Finds Comey “Defied Authority” And Was “Insubordinate”

The Department of Justice’s internal watchdog has found that James Comey defied authority several times while he was director of the FBI, according to ABC, citing sources familiar with the draft of a highly anticipated OIG report on the FBI’s conduct during the Clinton email investigation.

One source told ABC News that the draft report explicitly used the word “insubordinate” to describe Comey’s behavior. Another source agreed with that characterization but could not confirm the use of the term.

In the draft report, Inspector General Michael Horowitz also rebuked former Attorney General Loretta Lynch for her handling of the federal investigation into Hillary Clinton’s personal email server, the sources said. –ABC

President Trump complained on Tuesday of “numerous delays” in the release of the Inspector General’s report, which some have accused of being slow walked or altered to minimize its impact on the FBI and DOJ.

“What is taking so long with the Inspector General’s Report on Crooked Hillary and Slippery James Comey,” Trump said on Twitter. “Hope report is not being changed and made weaker!”

Donald J. Trump

@realDonaldTrump

What is taking so long with the Inspector General’s Report on Crooked Hillary and Slippery James Comey. Numerous delays. Hope Report is not being changed and made weaker! There are so many horrible things to tell, the public has the right to know. Transparency!

“It’s been almost a year and a half and it is time that Congress receives the IG report,” said Congressman Ron DeSantis (R-FL), who has been on the front lines of the battle against the DOJ and FBI’s stonewalling of lawmakers requesting documentation. “This has gone on long enough and the American people’s patience is wearing thin. We need accountability,” said DeSantis.

Another congressional official, who’s been fighting to obtain documents from the DOJ and FBI, said it is no surprise that they are putting pressure on Horowitz. According to the official, “They continue to slow roll documents, fail to adhere to congressional oversight and concern is growing that they will wait until summer and then turn over documents that are heavily redacted.”

Sara Carter

ABC reports that there is no indication Trump has seen – or will see – the draft of the report prior to its release. Inspector General Horowitz, however, could revise the draft report now that current and former officials have offered their responses to the report’s conclusions, according to the sources.

The draft of Horowitz’s wide-ranging report specifically called out Comey for ignoring objections from the Justice Department when he disclosed in a letter to Congress just days before the 2016 presidential election that FBI agents had reopened the Clinton probe, according to sources. Clinton has said that letter doomed her campaign.

Before Comey sent the letter to Congress, at least one senior Justice Department official told the FBI that publicizing the bombshell move so close to an election would violate longstanding department policy, and it would ignore federal guidelines prohibiting the disclosure of information related to an ongoing investigation, ABC News was told. –ABC

During an April interview, Comey was asked by ABC News anchor George Stephanopoulos “If Attorney General Lynch had ordered you not to send the letter, would you have sent it?”

“No,” replied Comey. “I believe in the chain of command.”

Deputy Attorney General slammed Comey’s letter to congress while recommending that Trump fire Comey last year – saying it “was wrong” for Comey “to usurp the Attorney General’s authority” when he revealed in July 2016 that he would not be filing charges against Hillary Clinton or her aides (many of whom were granted immunity).

“It is not the function of the Director to make such an announcement,” Rosenstein wrote in a letter recommending that Comey be fired. “At most, the Director should have said the FBI had completed its investigation and presented its findings to federal prosecutors.”

The draft OIG report dings Comey for not consulting with Lynch and other senior DOJ officials before making his announcement on national TV. Furthermore, while Comey said there was no “clear evidence” that Hillary Clinton “intended to violate” the law, he also said that Hillary Clinton had been “extremely careless” in her “handling of very sensitive, highly classified information.”

And as we now know, Comey’s senior counterintelligence team at the FBI made extensive edits to Clinton’s exoneration letter, effectively decriminalizing her behavior.

“I have not coordinated or reviewed this statement in any way with the Department of Justice or any other part of the government. They do not know what I am about to say,” Comey said on live TV July 5, 2016.

By then, Lynch had taken the unusual step of publicly declaring she would accept the FBI’s recommendations in the case, after an impromptu meeting with former president Bill Clinton sparked questions about her impartiality.

Comey has defended his decisions as director, insisting he was trying to protect the FBI from even further criticism and “didn’t see that I had a choice.” –ABC

“The honest answer is I screwed up a couple of things, but … I think given what I knew at the time, these were the decisions that were best calculated to preserve the values of the institutions,” Comey told ABC News. “I still think it was the right thing to do.

Comey is currently on a tour promoting his new book, “A Higher Loyalty.”

I will  see you THURSDAY night

HARVEY

 

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