/JUNE 7/GOLD UP $1.45 TO $1298.65/SILVER UP 12 CENTS TO $16.78/QUEUE JUMPING INTENSIFIES IN SILVER AT THE COMEX AS WE NOW HAVE 4.4 MILLION OZ OF SILVER STANDING IN A NON ACTIVE DELIVERY MONTH/HUGE DEMAND FOR SILVER WITH ALMOST 14,000 OPEN INTEREST INCREASE WITH RESPECT TO THE COMEX AND EFP ISSUANCE/CHAOS IN EMERGING MARKETS: INDONESIA, BRAZIL AND TURKEY/CHINESE DEMAND FOR GOLD HEADING FOR 2200 TONNES THIS YEAR WHICH IS ABSOLUTELY HUGE AND WILL CERTAINLY PUT A DENT INTO THE SUPPLY LINES FROM LONDON

 

GOLD: $1298.65 UP  $1.45 (COMEX TO COMEX CLOSINGS)

Silver: $16.78 UP  12 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1297.25

silver: $16.71

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 $7646/OFFER $7743: UP $37(morning)

Bitcoin: BID/ $7629/offer $7729: UP $23  (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: 1302.88

NY price  at the same time: 1296.85

PREMIUM TO NY SPOT: $6.05

Second gold fix early this morning: 1303.23

USA gold at the exact same time:1297.00

PREMIUM TO NY SPOT:  $6.23

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 ATMOSPHERIC 9088 CONTRACTS FROM  211,605  UP TO 220,693 ACCOMPANYING YESTERDAY’S 14 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 GIGANTIC SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP 4898 EFP’S FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 4898 CONTRACTS. WITH THE TRANSFER OF 4898 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 4898 EFP CONTRACTS TRANSLATES INTO 24.49 MILLION OZ  ACCOMPANYING:

1.THE 14 CENT RISE IN  SILVER PRICE  AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR JUNE COMEX DELIVERY. (4.4410 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: 

10,937 CONTRACTS (FOR 5 TRADING DAYS TOTAL 10,937 CONTRACTS) OR 54.685 MILLION OZ: (AVERAGE PER DAY: 2188 CONTRACTS OR 10.937 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  54.685 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:            1,369.03      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 AN ATMOSPHERIC SIZED INCREASE IN COMEX OI SILVER COMEX OF 9088 DESPITE THE TINY 14 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 HUMONGOUS SIZED EFP ISSUANCE OF 4898 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:  4898 EFP CONTRACTS FOR JULY, AND ZERO FOR ALL OVER MONTHS   FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 4898). TODAY WE GAINED AN OUT OF THIS WORLD: 13,986 TOTAL OI CONTRACTS  ON THE TWO EXCHANGES: i.e.4898 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH AN INCREASE OF 9088  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE SMALL 14 CENT RISE IN PRICE OF SILVER  AND A CLOSING PRICE OF $16.66 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. 1.104 MILLION OZ TO BE EXACT or 158% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JUNE MONTH/ THEY FILED AT THE COMEX: 93 NOTICE(S) FOR 465,000 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  (4.410 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 4927 CONTRACTS DOWN TO 445,714 DESPITE THE GAIN IN THE GOLD PRICE/YESTERDAY’S TRADING (RISE OF $1.30).  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 11,908 CONTRACTS :   JUNE SAW THE ISSUANCE OF 0 CONTRACTS , AND AUGUST SAW THE ISSUANCE OF:  11908 CONTRACTS WITH ALL OTHER MONTHS ZERO.  The new OI for the gold complex rests at 445,714. 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: 4927 OI CONTRACTS DECREASED AT THE COMEX AND AN STRONG SIZED 11,908 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 6981 CONTRACTS OR 698,100 OZ = 21.71 TONNES. AND ALL OF THIS DEMAND OCCURRED WITH A SMALL GAIN OF $1.30

YESTERDAY, WE HAD 11,947  EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 46,696 CONTRACTS OR 4,669,600  OZ OR 145.24 TONNES (5 TRADING DAYS AND THUS AVERAGING: 9,339 EFP CONTRACTS PER TRADING DAY OR 933,900 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 5 TRADING DAYS IN  TONNES: 145.24 TONNES

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

THUS EFP TRANSFERS REPRESENTS 145.24/2550 x 100% TONNES =  5.69% OF GLOBAL ANNUAL PRODUCTION SO FAR IN APRIL ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  3,597.08*  TONNES   *SURPASSED ANNUAL PROD’N

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

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

ACCUMULATION OF GOLD EFP’S FOR MARCH 2018:                741.89 TONNES  (22 TRADING DAYS)

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

ACCUMULATION OF GOLD EFP’S FOR MAY 2018:                     693.80 TONNES ( 22 TRADING DAYS)

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

Result: A CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 4927 DESPITE THE SMALL $1.30 GAIN  IN PRICE // GOLD TRADING YESTERDAY ($1.30 RISE).  WE ALSO HAD AN STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,908 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 11,908 EFP CONTRACTS ISSUED, WE HAD AN STRONG SIZED NET GAIN OF 6981 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

11,908 CONTRACTS MOVE TO LONDON AND 4927 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 21.71 TONNES). ..AND BELIEVE IT OR NOT BUT ALL OF THIS DEMAND OCCURRED AT THE COMEX WITH A TINY GAIN OF $1.30 IN TRADING!!!.

we had: 10 notice(s) filed upon for 1000 oz of gold at the comex.

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

GLD...

WITH GOLD  UP$1.45  TODAY: / A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A WITHDRAWAL OF 3.54 TONNES AS THE CROOKS CONTINUE TO RAID THE GLD VAULTS

Inventory rests tonight: 832.59 tonnes.

SLV/

WITH SILVER UP 14 CENTS TODAY A HUGE CHANGE IN THE SILVER INVENTORY AT  THE SLV INVENTORY/ A WITHDRAWAL OF 1.883 MILLION OZ WITH ALL OF THAT DEMAND!! GO FIGURE

/INVENTORY RESTS AT 320.678 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 AN ATMOSPHERIC SIZED 9088 CONTRACTS from  211,605 UP TO 220,693 (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), 4898 EFP’S FOR JULY AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 4898 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 9088 CONTRACTS TO THE 4898 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN OUT OF THIS WORLD  GAIN OF 13,986 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES:  69.93 MILLION OZ!!! AND THIS GIGANTIC SIZED DEMAND OCCURRED DESPITE JUST A TINY 14 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 14 CENT GAIN  IN SILVER PRICING YESTERDAY. BUT WE ALSO HAD ANOTHER STRONG SIZED 4898 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

i)THURSDAY MORNING/WEDNESDAY NIGHT: Shanghai closed DOWN 5.68 points or 0.18%   /Hang Sang CLOSED UP 253.53 points or 0.81%    / The Nikkei closed UP 197.53 POINTS OR 0.87% /Australia’s all ordinaires CLOSED UP .52%  /Chinese yuan (ONSHORE) closed UP at 6.3930/Oil UP to 65.29 dollars per barrel for WTI and 76.53 for Brent. Stocks in Europe OPENED ALL GREEN//.  ONSHORE YUAN CLOSED UP AT 6.3930 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3822/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA

b) REPORT ON JAPAN

3 c CHINA

i)What is going on here:  another debilitating sonic attack on an American consulate

( zerohedge)

ii)The uSA reaches a supposed definitive deal with ZTE according to Wilbur Ross

(courtesy zerohedge) 

4. EUROPEAN AFFAIRS

Italy

The ECB is giving its royal finger to Italy.  The ECB is the only purchaser of Italian bonds and now they are buying much less Italian bonds due to the change in government.  If the ECB stops purchasing of all debt by December, bond yields skyrocket and the game is basically over

( zerohedge)

ii)CZECH REPUBLIC

Now the Czech Republic Prime Minister rejects totally Merkel’s EU immigration plan as the crisis intensifies
( zero hedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/USA/EUROPE

European refiners fold and will not buy Iranian crude

( zerohedge)

6 .GLOBAL ISSUES

7. OIL ISSUES

8. EMERGING MARKET

i)Indonesia

Now Indonesia is begging the Fed to stop shrinking its balance sheet as contagion is spreading to that nation

( zerohedge)

ii)BRAZIL

Brazil’s Central bank intervenes again as the real crashes to almost 4 to 1

( zerohedge)

9. PHYSICAL MARKETS

i)Interesting:  the Swiss social insurance pension fund drops its paper claims on gold and takes real gold bars
(courtesy Barbara Ottawa/Investment Pensions and Europe/London/GATA)

ii)Switzerland is making its boldest financial experiment ever:( Clive Cook/Bloomberg news)

iii)The Texas metals depository is open for business and are willing to store investors gold

( Dallas Morning News/.GATA)

iv)Mongolia’s central bank launches a campaign to increase its gold reserves

( Xinhua News Agency/GATA)

v)This is a huge story:  Chinese demand up sharply in May and on a 10 month basis in 2018 we may hit 2200 tonnes of gold withdrawal.  Gold withdrawal equals gold demand.  If I take away 420 tonnes of Chinese sovereign gold mining and scrap of around 100 tonnes we get a net 1680 tonnes of gold for our citizens and 420 tonnes of gold for official sovereign use.
(courtesy Lawrie Williams/Sharp Pixley)

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

i)USA DATA

iv)MARKET DATA

Market trading this morning:

vi)SWAMP STORIES

The Dept of Justice caves and will show lawmakers additional documents on the “spygate affair”. It looks to me that the evidence that will be provided by Bill Priestap will be essential as to the genesis of the Russian collusion

(courtesy zerohedge)

Let us head over to the comex:

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 4927 CONTRACTS DOWN to an OI level 445,714 DESPITE THE  TINY RISE IN THE PRICE OF GOLD ($1.30 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 STRONG SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 11,908 CONTRACTS WERE ISSUED: FOR  JUNE, 0 CONTRACTS ISSUED,  FOR AUGUST 11908 CONTRACTS AND ZERO FOR ALL OTHER MONTHS:

TOTAL  11908 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: 6981 OI CONTRACTS IN THAT 11,908 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 4927 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 6981 contracts OR 698,100  OZ OR 21.71 TONNES.

Result: A CONSIDERABLE SIZED DECREASE IN COMEX OPEN INTEREST DESPITE THE TINY GAIN IN PRICE /YESTERDAY  (ENDING UP WITH AN GAIN IN PRICE OF $1.30).  THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: AT A STRONG 6981 OI CONTRACTS..

We have now entered the active contract month of JUNE where we LOST 296 contracts and that leaves us with 5288 contracts  We had 109 notices filed upon yesterday so we lost a tiny 187 contracts or 18700 oz will not stand for delivery at the comex as these guys received a sweetened offer to morph into London based forwards.

.JULY saw a LOSS of 101 contracts to stand at 1335.  The next big delivery month after June is August and here the OI FELL BY 5163 contracts DOWN to 319,700.

AFTER AUGUST, THE NEXT ACTIVE DELIVERY MONTH IS OCTOBER AND HERE THE OI ROSE BY 264 CONTRACTS UP TO 12,000 CONTRACTS.

We had 10notice (s) filed upon today for 1000 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: 242,292  contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:  265,594   contracts

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And now for the wild silver comex results.

Total silver OI ROSE BY A HUMONGOUS SIZED 9088 CONTRACTS FROM 211,605 UP TO 220,693 (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 GIGANTIC SIZED 4898 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: 4898.  ON A NET BASIS WE GAINED 13,986 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 9088 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 4898 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN  ON THE TWO EXCHANGES:  13,986 CONTRACTS

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the NON active delivery month of JUNE and here the front month ROSE BY 76 contracts REACHING 95 contracts. We had 17 notices filed upon yesterday so we gained 93 contracts or an additional 465,000 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 GAINED 369 contracts UP to 133,659.  The next delivery month is August and here we GAINED 13 contracts  to stand at 17. The next active delivery month after August for silver is September and here the OI ROSE by 8603 contracts UP to 52,410

We had 93notice(s) filed for 465,000 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 7/2018.

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

oz

No of oz served (contracts) today
10 notice(s)
 1000 OZ
No of oz to be served (notices)
5248 contracts
(524,800 oz)
Total monthly oz gold served (contracts) so far this month
1804 notices
180400 OZ
5.611 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 0 withdrawal out of the customer account:
total customer withdrawals:  nil oz
to which this landed as a deposit in JPMorgan:
we had 0 customer deposit
total customer deposits: nil oz
we had 1 adjustment(s)
i was waiting for this:
i) Out of JPMorgan:
390,333.150 oz was adjusted out of the customer and this landed into the dealer account of JPMorgan

For JUNE:

Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 10 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 5 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 (1804) x 100 oz or 180,400 oz, to which we add the difference between the open interest for the front month of JUNE. (5258 contracts) minus the number of notices served upon today (10 x 100 oz per contract) equals 705,200 oz, the number of ounces standing in this active month of JUNE (21.934 tonnes)

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

No of notices served (1804 x 100 oz)  + {(5258)OI for the front month minus the number of notices served upon today (10 x 100 oz )which equals 705,200 oz standing in this  active delivery month of JUNE .

WE LOST 187 CONTRACTS OR AN ADDITIONAL 18,700 OZ WILL NOT STANDING FOR DELIVERY AS THESE GUYS MORPHED INTO LONDON BASED FORWARDS.

“THERE ARE ONLY 20.409 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY AGAINST 21.934 TONNES STANDING  WHICH WILL MAKE THIS JUNE CONTRACT MONTH AN EXTREMELY INTERESTING ONE 

total registered or dealer gold:  656.179/390 oz or 20.409 tonnes
total registered and eligible (customer) gold;   9,014,904.206 oz 280.401 tones

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 7/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 28,903.07 oz
Delaware
Malca
Deposits to the Dealer Inventory
nil;
oz
Deposits to the Customer Inventory
 nil
oz
No of oz served today (contracts)
93
CONTRACT(S)
(465,000 OZ)
No of oz to be served (notices)
2 contracts
(10,000 oz)
Total monthly oz silver served (contracts) 880 contracts

(4,440,000 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 2 deposits into the customer account

i) Into JPMorgan: nil oz

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

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

ii) into Delaware: 967.416 oz

iii) Into HSBC: 820,169.800 oz

total customer deposits today: 829,169.800 oz

we had 2 withdrawals from the customer account;

i) Out of malca: 24,999.920 oz

ii) Out of Delaware:  24,999.920 oz

total withdrawals;  28,903.07 oz

we had 0  adjustment/

total dealer silver:  66.078 million

total dealer + customer silver:  270.925 million oz

The total number of notices filed today for the JUNE. contract month is represented by 93 contract(s) FOR 465,000 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 880 x 5,000 oz = 4,400,000 oz to which we add the difference between the open interest for the front month of JUNE. (95) and the number of notices served upon today (93 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE contract month: 880(notices served so far)x 5000 oz + OI for front month of JUNE(95) -number of notices served upon today (93)x 5000 oz equals 4,410,000 oz of silver standing for the JUNE contract month

We gained 93 contracts or an additional 465,000 oz will stand in this non active delivery month of June as somebody was in urgent need of silver.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 132,573 CONTRACTS

CONFIRMED VOLUME FOR YESTERDAY:139,356 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF  139,356 CONTRACTS EQUATES TO 696 MILLION OZ  OR 99.4% 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 -2.83% (JUNE 7/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.46% to NAV (JUNE 7/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -2.83%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.46%/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 13.54/TRADING 13.20//DISCOUNT 2.47.

END

And now the Gold inventory at the GLD/

JUNE 7/WITH GOLD UP $1.45, THE CROOKS DECIDED TO RAID AGAIN THE GLD GOLD COOKIE JAR TO THE TUNE OF 3.54 TONNES/GOLD INVENTORY LOWERS TO 832.59 TONNES

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 7/2018/ Inventory rests tonight at 832.59 tonnes

*IN LAST 392 TRADING DAYS: 94.00 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 342 TRADING DAYS: A NET 62.30 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory/

JUNE 7/WITH SILVER UP ANOTHER 12 CENTS/A HUGE CHANGE IN SILVER INVENTORY AT THE SL: A WITHDRAWAL OF 1.883 MILLION OZ WITH ALL OF THAT SILVER DEMAND//INVENTORY RESTS AT 320.678 MILLION OZ/

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 7/2018:

Inventory 320.678 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: 2.59

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.15

end

Major gold/silver trading /commentaries for THURSDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Swiss Government Pension Fund To Buy Gold Bars Worth Some $700

Million

Swiss Government Pension Fund Allocating 2% Of Pension Fund To Gold Bars

via IPE Quest

The Swiss government pension fund, Switzerland’s AHV/AVS fund, has decided to diversify into physical gold bars in their substantial CHF35.2bn (€30.5bn) pension portfolio.

At the end of last week the first pillar buffer fund tendered a custodianship and storage for CHF 700m (EUR 600m / USD 700m / GBP 525m) in gold bars via IPE Quest.

The bars are to be stored in Switzerland either collectively or individually, the tender (QN-2447) states.

The tender marks a shift in the investment strategy for AHV/AVS, as it previously only invested in gold and silver via swaps.

“The supervisory board has decided we are to invest in physical gold bars from now on,” the fund told IPE in a statement.

In 2016 the supervisory board of the buffer fund decided to raise its the commodities exposure from 1% to 2% while divesting from energy-related commodity exposure.

The fund explained last year that gold was better suited to add “diversification and hedging in certain situations (inflation or recession)” than the previously preferred energy commodities.

In March the investment committee confirmed the decision to change the precious metal mandate from swaps to physical gold.

The fund told IPE: “The mandate has not been changed yet. The investment committee asked for the change to be implemented by year-end 2018.”

No further details were given on the mandate or the shift in strategy.

As per March 2018, the fund held CHF682m in gold and a minor investment in silver, with a target allocation to precious metals of 2%.

This means by year-end the swaps exposure to silver would have to be phased out and the precious metal portfolio would consist of physical gold only.

Switzerland remains one of the safest jurisdictions in which to own gold. Find out why in our Essential Guide to Gold in Switzerland here

News and Commentary

Gold inches up on weaker dollar (Reuters)

N. American gold ETF outflows up in May – World Gold Council (Reuters)

Perth Mint’s May gold sales dip to lowest in over 1 yr, silver sales up  (Reuters)

Mongolia’s central bank launches campaign to increase gold reserves (Xinhua Net)

London house prices to fall this year (City AM)


Source: Texasbulliondepository.gov

Swiss government social insurance pension fund buys gold bars (IPE.com)

Texas Bullion Depository – America’s first state-administered precious metals depository opens in Texas (Dallas News)

BIS intervention in gold remained steady in May (BIS.org)

New Swiss banking system based on ‘sovereign money’ would be progress (Bloomberg)

Which should you buy – bitcoin or bitcoin cash? (Moneyweek)

Gold Prices (LBMA AM)

06 Jun: USD 1,295.25, GBP 9,964.57 & EUR 1,101.48 per ounce
05 Jun: USD 1,292.25, GBP 1,966.73 & 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

Silver Prices (LBMA)

06 Jun: USD 16.55, GBP 12.33 & EUR 14.06 per ounce
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


Recent Market Updates

– Turkey Uses Gold Bullion To Stabilise Its Currency And Economy
– 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

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
This is a huge story:  Chinese demand up sharply in May and on a 10 month basis in 2018 we may hit 2200 tonnes of gold withdrawal.  Gold withdrawal equals gold demand.  If I take away 420 tonnes of Chinese sovereign gold mining and scrap of around 100 tonnes we get a net 1680 tonnes of gold for our citizens and 420 tonnes of gold for official sovereign use.
(courtesy Lawrie Williams/Sharp Pixley)

LAWRIE WILLIAMS: Chinese gold demand continues to rise yoy

June 7China’s Shanghai Gold Exchange, through which all gold demand transactions pass. Has just announced its gold withdrawal figures for May, and they continue to show a rising demand trend over figures released at this time in 2016 and 2017. May withdrawals this year, for example, were 9% up on the May 2017 withdrawal figure and the cumulative total year to date is also 8.6% on a year ago when full year withdrawals amounted to 2,030.48 tonnes. A continuation of the current trend would put this year’s total at around 2,200 tonnes or higher – the largest annual withdrawal figure since the record 2015 year when SGE withdrawals totalled just short of 2,600 tonnes.

As we have noted before there are contentious views on whether SGE gold withdrawals truly represent Chinese gold demand as they suggest figures far in excess of the Chinese gold consumption data estimated by the major precious metals analytical consultancies. However they are much more in line with known Chinese gold imports, plus China’s own gold production, plus an allowance for scrap recycling. China precious metals watcher Koos Jansen avers that SGE withdrawals are equal to real Chinese demand and cites figures in the China Gold Yearbook, which equate SGE gold withdrawals to true Chinese demand to support his viewpoint.

Table: SGE Monthly Gold Withdrawals (Tonnes)

Month   2018 2017 2016 % change 2017-2018 % change     2016-2018
January   223.58 184.41 225.08 +21.2%  -0.7%
February*   118.42 148.24 107.60 -20.1% +10.7%
March  192.61  192.25 183.24  +0.2%  +5.1%
April  212.65  165.78 171.40  +28.3% +24.07%
May  150.58  138.08 147.28  +9.1%  +2.2%
June  155.51 138.51
July  144.71 117.58
August  161.41 144.44
September  214.24 170.90
October  151.54  153.25
November  189.10  214.72
December  185.21  196.37
Year to date   899.65 828.76 834.60 +  8.55% +7.79%
Full Year  2,030.48  1,970.37

Source: Shanghai Gold Exchange. Lawrieongold.com

Whatever the truth of the matter, the fact that SGE gold withdrawals equate much more closely to known gold imports to the Chinese mainland from countries which detail their export statistics like Switzerland, the U.K., the U.S., Australia etc. plus gold flows from Hong Kong, suggests that the SGE figures are at worst a great guide o overall Chinese gold demand.

Arguably too, given that Hong Kong is actually a part of China, although treated separately in terms of statistics as a Special Administrative Region, to provide a true figure for Chinese consumption we should probably add in the Hong Kong figure to provide a more realistic total for true Chinese annual gold demand. This would make it even higher and bring the overall figure probably to the equivalent of around 70%, or higher, of global new mined gold output. With the Chinese middle class expanding and GDP rising and the propensity of the Chinese to buy gold as a wealth protector, this proportion of global new mined gold output is likely as not to continue upwards, particularly if peak gold, or thereabouts, is now with us as most analysts suggest.

https://www.sharpspixley.com/articles/lawrie-williams- chinese-gold-demand-continues-to-rise-yoy_280358.html

-END-

Interesting:  the Swiss social insurance pension fund drops its paper claims on gold and takes real gold bars
(courtesy Barbara Ottawa/Investment Pensions and Europe/London/GATA)

Swiss social insurance pension fund drops paper claims, takes gold bars instead

 Section: 

The fund cited here is the primary Swiss government social insurance pension fund.

* * *

Swaps Swapped: Switzerland’s AHV Moves into Physical Gold

By Barbara Ottawa
Investment Pensions & Europe, London
Tuesday, June 5, 2018

Switzerland’s AHV/AVS fund is shifting to physical gold for the commodity exposure in its SwFr35.2 billion (E30.5 billion, $35.6 billion) portfolio.

At the end of last week the first pillar buffer fund tendered a custodianship and storage for SwFr700 million ($707 million) in gold bars via IPE Quest.

At the end of last week the first pillar buffer fund tendered a custodianship and storage for SwFr700 million in gold bars via IPE Quest.

The bars are to be stored in Switzerland either collectively or individually, the tender (QN-2447) states.

The tender marks a shift in the investment strategy for AHV/AVS, as it previously only invested in gold and silver via swaps.

“The supervisory board has decided we are to invest in physical gold bars from now on,” the fund told IPE in a statement.

In 2016 the supervisory board of the buffer fund decided to raise its the commodities exposure from 1 to 2 percent while divesting from energy-related commodity exposure.

The fund explained last year that gold was better suited to add “diversification and hedging in certain situations (inflation or recession)” than the previously preferred energy commodities.

In March the investment committee confirmed the decision to change the precious metal mandate from swaps to physical gold. …

… For the remainder of the report:

https://www.ipe.com/news/mandates/swaps-swapped-switzerlands-ahv-moves-i…

END

Switzerland is making its boldest financial experiment ever:

(courtesy Clive Cook/Bloomberg news)

Clive Crook: Let’s watch the Swiss get radical and see what happens

 Section: 

By Clive Crook
Bloomberg News
Wednesday, June 6, 2018

This Sunday Swiss voters will decide whether to try what may be the boldest financial experiment ever contemplated — dismantling their orthodox banking system and building a new one based on so-called sovereign money, or Vollgeld.

The proposal is probably far too radical to have much chance of success. Yet that’s a pity. The idea of sovereign money isn’t crazy. It has a long and distinguished academic pedigree and, as a practical matter, there’s a lot to recommend it. Switzerland would do the world a favor by giving the plan a try. At the very least, give the Vollgeld sponsors some credit (forgive the expression) for reviving an interesting debate

Vollgeld, the Chicago Plan, narrow banking, limited-purpose banking — these and other variants of the same basic idea start from the fact that in a conventional financial system, banks as well as governments can create money. How so? Consider what happens when a bank issues a loan. It credits the account of the lender with a deposit, and that deposit is by definition money. In this way, banks can expand their balance sheets, simultaneously adding to their assets (loans) and liabilities (deposits), expanding the supply of money at will.

Vollgeld’s big idea is that this power to create money should be taken away from banks and strictly reserved for the government. …

… For the remainder of the commentary:

https://www.bloomberg.com/view/articles/2018-06-06/swiss-sovereign-money…

END

The Texas metals depository is open for business and are willing to store investors gold

(courtesy Dallas Morning News.GATA)

Too much gold around the house? Store it at Texas’ new precious metals depository

 Section: 

By Jackie Wang and Brianna Stone
Dallas Morning News
Wednesday, June 6, 2018

AUSTIN, Texas — Texans who have long stored gold and precious metals elsewhere can bring the bling back to their home state. The country’s first state-administered precious metals depository, the Texas Bullion Depository, officially opened Wednesday in Austin.

Like other facilities that store precious metals, the Texas Bullion Depository insures them and has complex security measures to guard people’s assets. Depositors can buy metals from a dealer and have them shipped directly to the depository, or send in what they already own.

People became more open to owning precious metals after the 2008 recession, depository executive director Matt Ferris said.

“When you look at our operating companies, the average person searching and hitting our websites makes over $100,000 a year and has an advanced degree,” he said. “They’re not just coming to our websites to look around — they’re inquiring on owning precious metals as part of their overall investment portfolio.” …

… For the remainder of the report:

https://www.dallasnews.com/business/business/2018/06/06/much-gold-around…

END

Mongolia’s central bank launches a campaign to increase its gold reserves

(courtesy Xinhua News Agency/GATA)

Mongolia’s central bank launches campaign to increase gold reserves

 Section: 

From Xinhua News Agency, Beijing
Tuesday, June 5, 2018

http://www.xinhuanet.com/english/2018-06/06/c_137232904.htm

ULAN BATOR, Mongolia — The Bank of Mongolia said today it has launched a campaign called “National Gold to the Fund of Treasures” within the framework of the “Gold-2” national program.

The five-month campaign is aimed at encouraging gold miners and individuals to sell their gold to the central bank and commercial banks, increasing the gold reserves, intensifying training and promotion on the process of gold purchase among the public, and introducing relevant laws and regulations, the Bank of Mongolia said in a statement.

The Bank of Mongolia purchased over 3.2 tons of gold from legal entities and individuals in the first four months of this year, which is an increase of 257.6 kilograms from the same period last year.

The government of Mongolia has carried out a number of measures directed at enriching the treasury fund and improving the legal environment on foreign exchange over the past five years. As a result, gold miners submitted 20.01 tons of gold to the central bank in 2017, contributing $800 million to the state budget.

Annual gold production had not surpassed 20 tons since 2005, when it reached its record high at 25 tons.



___________________________________________________________________

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

i) Chinese yuan vs USA dollar/CLOSED UP TO 6.3930  /shanghai bourse CLOSED DOWN 5.68 POINTS OR 0.18%     HANG SANG CLOSED UP 253.53  POINTS OR 0.81%
2. Nikkei closed UP 253.53 POINTS OR 0.81% /  /USA: YEN FALLS TO 109.96/

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 109.96/ 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:: 65.29  and Brent: 76.53

3f Gold UP/Yen UP

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +.51%/Italian 10 yr bond yield UP to 2.90% /SPAIN 10 YR BOND YIELD DOWN TO 1.45%

3j Greek 10 year bond yield FALLS TO : 4.57

3k Gold at $1298.25 silver at:16.74   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in roubles/dollar) 61.91

3m oil into the 65 dollar handle for WTI and 76 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 109.96 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 0.9809 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1612 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.51%

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 2.99% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.14%

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

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

Stock Euphoria Prevails Despite Gathering G-7,

EM Clouds; Dollar Slides

European stocks and U.S. futures blasted off higher early in the session following yesterday’s euphoric, meltup close to US trading, but have since pared their gains on Thursday as the stellar rally in tech shares showed signs of easing, amid growing concerns about a potential G-7 meeting fiasco, as well as growing emerging markets clouds, where after the recent turmoil in Turkey and Argentina, all eyes are now on Brazil (and India) to see if the contagion spreads to these behemoths.

Europe’s Stoxx 600 trimmed most of its early gains and briefly turned flat after rising as much as 0.6% earlier, as the euro strengthened again despite disappointing data on euro-area exports and German factory orders (Germany April factory orders fall 2.5% m/m vs est. +0.8% m/m), and as bond-proxy defensive sectors including telecoms, real estate and food & beverage lost ground amid a sharp rise bund yields on concerns that the ECB will discuss the end of QE at its Thursday meeting next week. As a result, the German 10-year bund yield up 5bps at 0.51%.

Alongside the selling in European core bonds, Treasuries added to recent losses, with 10-year yields crawling toward 3 percent, trading as high as 2.99% this morning.

As discussed yesterday, the Euro has continued to strengthen, and was up to 1.1830 this morning, up for a fourth straight day amid talk of an end to the ECB’s quantitative easing program. However, not even renewed talk of an end to ECB bond buying could dent Italian bonds today after the country new Prime Minister Giuseppe Conte, whose populist government has already been buffeted by financial markets, sought to reassure on his fiscal expansion plans with a pledge to gradually reduce the country’s massive debt burden, sending 2Y yields modestly lower on the session.

Curiously, while traditionally the stronger Euro would have resulted in stock weakness, the following chart from Bloomberg shows an abrupt reversal ever since the start of Italian turmoil in mid-May, roughly around the time redenomination risk re-emerged, and equities are glad to see that the common currency isn’t continuing to slide – as it did pre-Draghi’s “whatever it takes” speech – on fears Italeave may bring the grand experiment to a close.

Earlier shares rose from Tokyo to Sydney in the wake of another record finish for the Nasdaq. Asian stocks traded higher as the regional bourses took impetus from the gains in their US counterparts in which the S&P 500 and
Nasdaq notched a 4th consecutive win streak, with the latter closing at fresh all time highs. ASX 200 (+0.5%) and Nikkei 225 (+0.9%) both opened higher on the tailwind from Wall St and with commodity related sectors leading Australia higher, while the Japanese benchmark continued to benefit as the recent weak JPYrisk appetite dynamic remained intact despite the currency attempting to nurse losses overnight. Elsewhere, Shanghai Comp. b and Hang Seng (+0.8%) conformed to the optimism seen across global stock markets with trade concerns placed on the back burner, although gains in the mainland were capped following a net drain by the PBoC.

After weeks in the doldrums, stocks have managed to regain some composure and upward momentum in recent days. Helped by Treasury yields holding below the psychological barrier of 3 percent, the global “expansion narrative” remains intact and U.S. technology shares – the biggest driver of past rallies – have been notching successive records.

“If you think of where we were relative to the start of the year, we’ve seen quite a lot of de-risking, particularly from systematic strategies, which paves the way for equities to do well in the second half,” Grace Peters, European equities strategist at JPMorgan Private Bank, told Bloomberg TV.

However, despite the recent post-Italy relief euphoria, dark clouds remain and investors will now be watching the G-7 meeting this week for clues on the trade outlook. We reported this morning that France is joining Germany in warning President Donald Trump that it won’t sign a joint statement at the G7 summit without major concessions from the U.S.  At the same time, President Trump is said to be planning on adopting a confrontational tone at G7 in response to the other 6 nations collectively pressuring him regarding tariffs. The impact has been to sharply weaken the dollar in the past few days as traders were on edge over the outcome of the Toronto meeting.

At the same time, all eyes are fixed on the growing economic and financial storm in Brazil that seems to be gathering strength, so it’s worth keeping an eye on European companies with exposure to the country and there are quite a few of them. Overnight, Mohamed El-Erian became the latest voice to warn that Brazil may be the next domino to fall in emerging markets. The other EM hot spot is Turkey, where President Recep Tayyip Erdogan called on Turks to deposit their savings in banks, according to state-run Anadolu Agency. Turkey’s benchmark index entered bear  market territory yesterday, and the focus is now on the central bank meeting at 2pm local time today.

Commodities are mostly higher on the day, with Oil +0.6%, extending the reprieve following a dip on yesterday’s surprise DoE crude stockpile build. In the metals scope Gold is marginally positive on tailwinds offered by a weaker USD. Copper has hit 2018 highs, with gains for the 6th straight session, as supply concerns are being exacerbated through Chilean mine disruption. Steel futures have hit 6-month highs as environmental inspections have slowed suggestions of a supply glut in China and boosted market sentiment.

In the latest Brexit news, UK PM May and Brexit Secretary Davis reported to be at loggerheads regarding EU customs split, which sparked some rumours that Davis was close to resigning, according to reports. (The Sun) however, the latest reports have suggested no Cabinet resignations are to be tendered today. Further to this Kuenssberg added that “more clarity” will be provided on the time limit on the backstop later in the day. US House will vote on rescission package today

Today’s expected data include jobless claims. Broadcom, Dollarama, J.M. Smucker, Saputo, and Vail Resorts are among companies reporting earnings.

Bulletin Headline Summary from RanSquawk

  • Asian stocks traded higher as the regional bourses took impetus from the gains in their US counterparts
  • USD was weaker with the DXY stuck around the 93.50 level to the benefit throughout the session
  • European bourses largely higher with FTSE the laggard, weighed on by a firmer GBP
  • Early suggestions of a resignation in the British cabinet rebuked, with markets awaiting information on the UK’s backstop arrangement
  • Looking ahead, highlights include, Turkish rate decision, US weekly jobs and BoE’s Ramsden
  • US President Trump is said to be planning on adopting a confrontational tone at G7 in response to the other 6 nations collectively pressuring him regarding tariffs
  • Looking ahead, highlights include Turkish rate decision, US weekly jobs, and BoE’s Ramsden

Market Snapshot

  • S&P 500 futures little changed at 2,778.25
  • STOXX Europe 600 up 0.3% to 388.21
  • MXAP up 0.6% to 176.42
  • MXAPJ up 0.5% to 580.03
  • Nikkei up 0.9% to 22,823.26
  • Topix up 0.6% to 1,789.01
  • Hang Seng Index up 0.8% to 31,512.63
  • Shanghai Composite down 0.2% to 3,109.50
  • Sensex up 1.1% to 35,553.45
  • Australia S&P/ASX 200 up 0.5% to 6,057.29
  • Kospi up 0.7% to 2,470.58
  • Brent futures up 0.4% to $75.67/bbl
  • Gold spot up 0.2% to $1,298.81
  • U.S. Dollar Index down 0.4% to 93.28
  • German 10Y yield rose 3.5 bps to 0.5%
  • Euro up 0.4% to $1.1821
  • Italian 10Y yield rose 14.8 bps to 2.669%
  • Spanish 10Y yield fell 3.9 bps to 1.463%

Top Overnight News from Bloomberg

  • France has joined Germany in warning President Donald Trump that it won’t sign a joint statement of the Group of 7 at the summit in Quebec this week without major concessions from the U.S., a French official in the president’s office said
  • Italy’s new Prime Minister Giuseppe Conte, whose populist government has already been buffeted by financial markets, sought to reassure on his fiscal expansion plans with a pledge to gradually reduce the country’s massive debt burden
  • Donald Trump’s top economic adviser, Larry Kudlow, called trade tensions shadowing the G-7 conference beginning Friday “a family quarrel” and said Trump will meet one-on-one with Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron at the summit
  • China reiterated it is willing to expand imports from the U.S. if the world’s two largest economies “meet half-way” in trade negotiations. A spokesman for the Ministry of Commerce said that China doesn’t want to escalate trade tensions with the U.S., and that boosting imports is an established strategy
  • German factory orders unexpectedly dropped for a fourth month in April, raising the prospect that an economic slowdown at the start of the year may be worsening
  • German bonds fell for a second day as traders brought forward the pricing for an interest-rate increase by the European Central Bank. Money markets are now betting that policy makers will raise the deposit rate in July 2019, compared with September 2019 as of Wednesday
  • Brexit Secretary David Davis is said to be furious over May’s plan to tie the U.K. into European Union customs rules for an open-ended period of time after the country leaves the bloc next March
  • The highest yields in the European Union aren’t juicy enough to make Romanian bonds attractive. A cocktail of above- target inflation, rising interest rates and volatile politics have forced investors to the sidelines of the leu debt market, which saw a 2.7 percent loss over the past year
  • U.K. Environment Secretary Michael Gove revived his criticism of the Bank of England and its peers over the fallout from monetary- policy loosening, saying they have unduly benefited the wealthy
  • The appointment of economist Jonathan Haskel to the Bank of England despite a shortlist dominated by women shows that the job was awarded on merit, according to Ian McCafferty

Asian stocks traded higher as the regional bourses took impetus from the gains from the euphoric US session in which the S&P 500 and Nasdaq notched a 4th consecutive win streak, while the DJIA atoned for Tuesday’s underperformance and led the advances to surmount the 25K level. ASX 200 (+0.5%) and Nikkei 225 (+0.9%) both opened higher on the tailwind from Wall St and with commodity related sectors leading Australia higher, while the Japanese benchmark continued to benefit as the recent weak JPYrisk appetite dynamic remained intact despite the currency attempting to nurse losses overnight. Elsewhere, Shanghai Comp (down -0.2%) and Hang Seng (+0.8%) conformed to the optimism seen across global stock markets with trade concerns placed on the back burner, although gains in the mainland were capped following a net drain by the PBoC. Finally, 10yr JGBs were initially lacklustre amid similar price action in T-notes and due to the broad appetite for risk, although prices later saw mild gains on reopen from the break and following an enhanced liquidity auction in the super-long end which attracted a higher b/c than prior. China Mofcom reiterated China doesn’t want trade tensions with US to escalate and that China is willing to raise imports from US and other countries. Furthermore, Mofcom stated some specific progress was made in just completed trade talks with US which included discussions on agriculture and energy.

Top Asian News

  • Tencent’s Six-Day Breakout Signals Bulls May Be Back in Control
  • Jittery Casino Investors Weigh Risks of China Cash Crackdown
  • Financier Jho Low to Cooperate in Malaysia’s Probe Into 1MDB
  • Steel Surges to Three-Month High as China Boosts Checks on Mills
  • Abraaj Creditor Seeks Embattled Dubai PE Firm’s Liquidation

European equities followed suit from Asia with all the major bourses opening firmly in the green (Euro Stoxx 50 +0.4%) with broad-based gains across all indices. UK’s FTSE failed to open with its peers due to a technical glitch, trading resumed at 0900BST. Financials lead the gains as banks surge, boosted by rising yields on speculation the ECB may soon start to wind down stimulus, with the first discussions signalled to start at the monetary policy meeting next week. In terms of individual movers, Remy Cointreau shares are eyeing losses of 6% despite reporting strong numbers as investors  show concern over flat dividend and valuation.

Top European News

  • German Factory Orders Extend Slide as Economic Worries Build
  • U.K. Home Price Growth Slows in ‘Relatively Subdued’ Market
  • House of Fraser Store-Closing Plan Threatens 6,000 Jobs
  • Euro Options Reflect Perception Shift Over ECB’s Next Meeting
  • Ukraine Nears Crunch Vote on Long-Delayed Anti-Graft Court

In FX, the USD remains on the back foot (DXY -0.3%) as EUR strength and jitters ahead of the G7 meeting this weekend hampers the greenback. With regards to the G7, some traders might opt to take a cautious view on the USD amid the latest reports that US President Trump is said to be planning on adopting a confrontational tone at G7 in response to the other 6 nations collectively pressuring him regarding tariffs. Nonetheless, the broader risk tone has seen the USD out-muscle the JPY with USD/JPY approaching 110.00 to the upside where there is 2bln of option expiries is due to roll-off. From a EUR perspective, EUR/USD losses from the unexpected contractionary German factory orders proved to be short-lived as positioning ahead of next week’s ‘live’ ECB meeting remains the dominant force. Subsequently EUR/USD has reclaimed 1.1800 to the upside and breached the 30DMA at 1.1818 with ECB speakers now in their blackout period. BNP Paribas look for EUR/USD at 1.23 in the next 3-months. Elsewhere, GBP was initially resilient to some of the latest Brexit-related turmoil. GBP/USD reclaimed 1.3450 to the upside in early trade before traders began selling GBP ahead of the US entrance to market despite news that there are to be no resignations in the Cabinet. Sentiment may have soured for the GBP as it remains unclear what concessions (if any) May might have been forced to make to Davis and the Brexiteers in order to avoid mutiny. From a NAFTA perspective, CAD is unable to benefit from the broadly softer USD after NEC Director Kudlow poured cold water over the reports that Treasury Secretary Mnuchin requested exemptions for Canada is ‘patently false’. Kudlow also stated there will
be discussions on trade at G7 meeting as well as a bilateral meeting with Canadian PM Trudeau. Focus going forward will likely fall on TRY ahead of the CBRT rate decision with consensus looking for the Bank to stand pat on its one week-repo rate at 16.5%. Capital Economics suggests that the recent appreciation of the TRY following the central bank’s emergency rate hike and tweaking of its policy framework suggests that the CBT will stand pat, but concedes that there is marginal risks of a rate rise, particularly so given its recent tough talk and an emphasis on tackling high, unanchored inflation

Commodities are mostly higher on the day, with Oil +0.6%, extending the reprieve following a dip on yesterday’s surprise DoE crude stockpile build. In the metals scope Gold is marginally positive on tailwinds offered by a weaker USD. Copper has hit 2018 highs, with gains for the 6th straight session, as supply concerns are being exacerbated through Chilean mine disruption. Steel futures have hit 6-month highs as environmental inspections have slowed suggestions of a supply glut in China and boosted market sentiment

Looking at the day ahead, the latest weekly initial jobless claims print will be out along with April consumer credit data. Elsewhere, Japan PM Abe is due to meet with US President Trump to discuss the planned US summit with North Korea and the BOE’s Ramsden will speak. Meanwhile the Turkish central’s rate decision is also due today following last month’s emergency rate hike.

US Event Calendar

  • 8:30am: Initial Jobless Claims, est. 220,390, prior 221,000
  • 8:30am: Continuing Claims, est. 1.74m, prior 1.73m
  • 9:45am: Bloomberg Consumer Comfort, prior 55.2
  • 12pm: Household Change in Net Worth, prior $2.08t
  • 3pm: Consumer Credit, est. $14.0b, prior $11.6b

DB’s Jim Reid concludes the overnight wrap

Morning from Berlin after a day speaking at various events associated with one of our key German conferences. There was a lot of disagreements, arguments, heated debate but the one thing all clients agreed on was that England wouldn’t win the World Cup. In return I thanked the German audience for providing Liverpool with their current goalkeeper who cost us the Champions League 2 weeks ago.

One of my themes yesterday was how Bund yields were one of the most mispriced global assets (see link here ) and the last 24 hours have been supportive of that as the ECB seemed to send a coordinated message to the bond market that next week’s monetary policy meeting on Thursday is very much on the table for signalling the date for the end point of the great QE experiment. The general feeling in the market prior to all this was that we may have to wait until July for some form of announcement. At one point last week some wondered whether the ECB could taper at all what with Italy’s huge problems. What a difference a week makes.

As for what rattled markets, the most significant comments made were probably those from the ECB’s Peter Praet given that he has previously been one of the more vocal doves. Praet said that “it’s clear that next week the Governing Council will have to make this assessment, the assessment on whether the progress so far has been sufficient to warrant a gradual unwinding of our net asset purchases”. Indeed the context of Praet’s speech was overwhelmingly positive and it was followed by similar hawkish comments from Weidmann – who said that market expectations for QE ending in 2018 are “plausible” – and Knot who said that it is “reasonable” to announce the end of asset buying soon.

By the end of play European bond yields were sharply higher everywhere you looked. 10y Bunds rose by +9.6bps to 0.459% – the second biggest single day rise in yields this year. At the intra-day lows last week we hit 0.185%. OATs were +10.8bps higher, BTPs +14.5bps and Bonos +10.0bps. Gilts (+9.0bps) and Treasuries (+4.4bps to 2.973%) were dragged along too while the Euro finished last night up +0.48% versus the US Dollar. Equity markets weren’t particularly spooked by the bond move initially but did struggle into the afternoon session before US strength took over after Europe went home. The Stoxx 600 ended the session unchanged while the DAX and FTSE nudged up c0.3%. The periphery actually held in a little better with the IBEX (+1.09%) in particular the big mover. Last night in the US, the Nasdaq rose 0.67% to a new, record high for the third straight day (+11.4% CYTD). Meanwhile, the S&P advanced for the fourth consecutive day (+0.86%), lifted by financials and materials stocks and an easing in trade tensions, while utilities was the only sector in the red. The VIX also closed at the lowest level since late January (-6% to 11.64).

That relative calm in equity markets certainly suggests that there isn’t much by the way of concern about the ongoing trade war shenanigans. As a reminder the G7 meeting kicks off tomorrow and Politico ran a relatively eye catching story yesterday which included a reference to a US official who thought there was no chance that the US and other G7 members could reach common ground. The story also talked about President Trump having a “terrible” phone call with France President Macron last week. Meanwhile, White House economic adviser Mr Kudlow also sought to down play the trade tensions between the US and its G7 partners as “a family quarrel”, and noted that President Trump will hold bilateral meetings with his French and Canadian counterparts during this weeks’ G7 summit. Elsewhere, Bloomberg noted the US Treasury Secretary Mnuchin prefers to rely on existing legislations to tighten Chinese investments in the US rather than introduce new sweeping limits.

Overnight markets in Asia are extending on the positive US lead with the Nikkei (+0.87%), Kospi (+0.68%), Hang Seng (+0.63%) and Shanghai Comp. (+0.31%) all modestly higher. This morning, a spokesman for the Chinese Commerce  Ministry said China does not want an escalation of trade tension with the US and is willing to increase imports if the two countries “meet half way” on trade talks without elaborating more. Meanwhile in the US, President Trump has met with 13 GOP senators yesterday to seek support and push back against proposed legislation that would require the President to seek Congressional approval before authorising tariffs going forward. Post the meeting, Senator Graham said “now is not the time to undercut President Trump’s ability to negotiate better trade deals”.

Now recapping other markets performance from yesterday. WTI oil fell -1.21% after EIA reported a surprise rise in US crude stockpiles, but oil is rebounding modestly this morning, in part as Reuters reported that an Iraqi oil minister said OPEC won’t discuss an oil supply boost in its upcoming meeting on 22 June. In FX, the US dollar weakened for the third straight day (-0.28%) while the Brazilian real extended losses to the lowest since March 2016 (-1.1%; -16.4% CYTD). Elsewhere, Gold was flat while copper made further gains on concerns of potential supply disruptions (Copper +1.71%; Zinc -0.12%; Aluminium +0.98%).

Back in the UK, there seems to be more political conflict on how the post Brexit world should be. Bloomberg noted the Brexit Secretary Davis could quit the cabinet if PM May continues her proposal to tie the UK into EU customs rules for an open ended period of time. Elsewhere, unnamed sources told Bloomberg that a group of 12 rebel conservatives have signed an amendment calling for the UK to stay in the EU’s single market instead. So lots bubbling along before
the Parliamentary voting session on PM May’s Brexit policies next Tuesday.

Meanwhile, the BOE’s McCafferty noted business investments in the UK should be growing at double digits in the current economic cycle but is now slower, partly due to Brexit uncertainty. On rates, he flagged that most MPC officials believes a modest rise in rates is required over the next two years, although the overall level of rates will stay relatively low for some time. Notably, he also added that there is plenty of room for more QE in case of a downturn.

Over in Italy, there were not much material new developments as PM Conte reaffirmed to the Lower House Parliament that he plans to follow the program set out by the two populist parties and noted that “this government has the audacity to seek new economic policies…which means promoting social and economic growth, (and) respecting the principle of a gradual reduction of debt”.

Moving along, a quick mention that next week on Thursday 14th June we have the latest speaker in DB’s London Speaker Series for 2018. Sebastian Raedler, head of European Equity Strategy, will discuss the outlook for economic growth, interest rates, FX and political risk and their likely impact on European equities. Sebastian will also focus on the prospect for key sectors like banks, autos and energy – and highlight his favourite picks among European country indices.

Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the April trade deficit fell to a 7 month low and was narrower than expectations at -$46.2bln (vs. -$49bln), as exports rose to a record high with increased shipments in industrial materials and soybeans (exports +0.3% mom vs. imports -0.2% mom). Elsewhere, the final reading for 1Q nonfarm productivity was revised down to 0.4% (vs. 0.6% expected) while unit labour costs was revised up slightly to 2.9% (vs. 2.8%). Following the above, the Atlanta Fed’s estimate of 2Q GDP growth stands at 4.5% saar. Meanwhile, Spain’s April IP was much weaker than expected at -1.8% mom vs. -0.2% expected.

Finally, as for the day ahead, the final Q1 GDP revisions for the Euro area will be made along with the various growth components, while April factory orders in Germany, April trade balance in France and May house prices data in the UK is also due. In the US the latest weekly initial jobless claims print will be out along with April consumer credit data. Elsewhere, Japan PM Abe is due to meet with US President Trump to discuss the planned US summit with North Korea and the BOE’s Ramsden will speak. Meanwhile the Turkish central’s rate decision is also due today following last month’s emergency rate hike.

3. ASIAN AFFAIRS

i)THURSDAY MORNING/WEDNESDAY NIGHT: Shanghai closed DOWN 5.68 points or 0.18%   /Hang Sang CLOSED UP 253.53 points or 0.81%    / The Nikkei closed UP 197.53 POINTS OR 0.87% /Australia’s all ordinaires CLOSED UP .52%  /Chinese yuan (ONSHORE) closed UP at 6.3930/Oil UP to 65.29 dollars per barrel for WTI and 76.53 for Brent. Stocks in Europe OPENED ALL GREEN//.  ONSHORE YUAN CLOSED UP AT 6.3930 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3822/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

3 a NORTH KOREA/USA

North Korea/South Korea/usa

3 b JAPAN AFFAIRS

end

c) REPORT ON CHINA/HONG KONG

CHINA/

What is going on here:  another debilitating sonic attack on an American consulate

(courtesy zerohedge)

Americans Evacuate From US Consulate In China After Debilitating Sonic Attacks

Several US citizens have been evacuated from the US consulate in Guangzhou, China, after falling ill with various neurological symptoms from mysterious “sonic attacks” similar to incidents reported in Havana Cuba which left 20 State Department employees with serious injuries.

On Wednesday night, consulate worker Mark Lenzi and his family were evacuated after hearing strange noises over the course of several months, which Lenzi described as “marbles bouncing and hitting a floor then rolling on an incline with a static sound,” according to the Washington Post

At first, he and his wife thought that their neighbor — a fellow Foreign Service officer in the U.S. Consulate in Guangzhou, China — was responsible. The neighbor denied having anything to do with it.

A few months later, the headaches started — excruciating pain that lasted for days at a time. Lenzi, his wife, and their 3-year-old son experienced the same symptoms, which soon included chronic sleeplessness as well. Lenzi says that he asked his superiors for help but that they dismissed his concerns. Consulate doctors prescribed painkillers and Ambien, which did nothing to address the underlying causes of the problem. –WaPo

Lenzi then learned that his next-door neighbor had been evacuated from the consulate and flown back to the United States to undergo a thorough medical assessment – which concluded that the person was suffering from “mild traumatic brain injury.”

The State Department issued a statement on May 23, warning that an unnamed “U.S. government employee in China recently reported subtle and vague, but abnormal, sensations of sound and pressure,” and urging anyone with “concerns about symptoms or medical problems that developed during or after a stay in China” to “consult a medical professional.”

The statement also said that the U.S. government was unaware of any other cases — a point strongly disputed by Lenzi, who insists that he had repeatedly informed both the embassy in Beijing and State Department headquarters in Washington of his family’s predicament. “Mark is a very capable guy,” says political consultant Michael Getto, a longtime friend of Lenzi’s. “If he says something is wrong or amiss, then it is.” –WaPo

The description of the sound – which the victim said produced abnormal sensations and pressures – sound eerily familiar to a series of similar “sonic attacks” that afflicted US embassy personnel in Havana, beginning shortly after President Trump defeated Hillary Clinton in the 2016 presidential race.

On May 23, Secretary of State Mike Pompeo noted the comparisons between the China incidents and the Cuban attacks during a House hearing, stating “The medical indications are very similar, and entirely consistent with, the medical indications that were taking place to Americans working in Cuba.”

Meanwhile, a team of scientists at the University of Michigan say they may have found the source of the mysterious sounds.  They said that two sources of ultrasounds – such as eavesdropping – may have been placed too closely together, provoking an intense sound like the one described by the victims, according to the Miami Herald.

US-China relations

Though their source has never been determined, the attacks damaged relations between the US and Cuban governments and also left some embassy employees with mild brain damage. The US recalled most of its embassy staff from Havana before expelling 15 Cuban diplomats from Washington in response to the alleged attack.

Lenzi says he believes that the number of those affected will turn out to be higher than Washington expects. If he’s right, U.S.-Chinese relations could start to enter a rocky patch. -WaPo

Likewise, the new sonic attacks risk straining relationships between Washington and Beijing – which the Trump administration has been pressing hard on trade, while at the same time relying on China to help negotiate with North Korean leader Kim Jong Un. As WaPo notes, “A widening scandal involving the possible mistreatment of U.S. diplomats couldn’t come at a worse time.

So far, the fact that only a single staff member is publicly known to have been affected has allowed the Trump administration to play down the Guangzhou case. That may no longer be possible if more victims present themselves — and Lenzi, for one, is not prepared to go away quietly. –WaPo

Would you if your wife and three-year-old had been sonically attacked to the point of brain injury?

Mike Pompeo has dispatched the “Health Incidents Response Task Force” to Guangzhou on May 31 to examine consulate employees who so request, including Lenzi and his family – who have been told they will likely receive a detailed brain analysis in the United States.

The high-level medical team’s role includes “identification and treatment of affected personnel and family members, investigation and risk mitigation, messaging, and diplomatic outreach.

In the same announcement, Pompeo said that “24 US government personnel and family members who served in Cuba have been medically-confirmed as having symptoms and clinical findings similar to those noted following concussion or minor traumatic brain injury”, as well as the initial China consulate victim.

Chinese foreign ministry spokesman Lu Kang said in a press briefing that China had investigated the May 16 cases but found no reason for the illness.

“China has conducted a very careful investigation and has given preliminary findings to the US, and we haven’t found the reason or clues that led to the situation mentioned by the US,” he said.

“China has always followed the Vienna Convention on diplomatic relations and consular relations to protect the US diplomatic staff and staff from other countries.”

What could be causing these mysterious attacks?

END
The uSA reaches a supposed definitive deal with ZTE according to Wilbur Ross
(courtesy zerohedge)

US Has Struck A “Definitive” Deal With ZTE: Ross

After weeks of haggling over trade, Commerce Secretary Wilbur Ross announced on CNBC Thursday morning that the US had reached a “definitive” deal with Chinese telecom giant ZTE to allow it to resume purchases from American suppliers, preventing a collapse of the massive Chinese corporation which was facing near certain death otherwise, and which, according to many, was a critical gating factor for China to greenlight the US-North Korea summit on June 12.

“At about 6 a.m. this morning, we executed a definitive agreement with ZTE. And that brings to a conclusion this phase of the development with them,” Ross said on CNBC.

ZTE had been crippled by the White House’s decision to ban US firms from selling parts to ZTE after it had been found in violation of a settlement stemming from illegal sales to Iranian companies, although rumors of a deal began circulating in recent weeks and culminated yesterday.

While it is not yet clear what the terms of the deal are, some claim that compromising with the Chinese company which has been a repeat violator of U.S. sanctions against Iran and North Korea, and has been identified as a national security threat, could set a dangerous precedent for trade negotiations with China.

Speaking on CNBC, Ross said the deal includes a $1 billion penalty against ZTE, and that a compliance team selected by the US would be embedded at the company.

Since the US first imposed its restrictions on ZTE in April, it has come close to striking a deal several times. Ross also waived aside speculation that the deal was part of a broader quid pro quo, adding that the ZTE deal was “quite separate” from other trade talks.

As Bloomberg pointed out last night, Trump’s backpedaling on ZTE has angered both Democrats and Republicans who are pressing for stiffer restrictions on ZTE. Some are even considering action to block Trump from reversing the sales ban, with Marco Rubio among the most vocal critics. However, as Reuters reports, there’s little Congress can do to stop Trump from striking a deal with ZTE. ZTE makes smartphones and is also a large manufacturer of telecom equipment. The company was famously the first Chinese state-owned telecoms equipment maker to go public, and is listed in Shenzen and Hong Kong.

4. EUROPEAN AFFAIRS

Italy

The ECB is giving its royal finger to Italy.  The ECB is the only purchaser of Italian bonds and now they are buying much less Italian bonds due to the change in government.  If the ECB stops purchasing of all debt by December, bond yields skyrocket and the game is basically over

(courtesy zerohedge)

8. EMERGING MARKET

Indonesia

Now Indonesia is begging the Fed to stop shrinking its balance sheet as contagion is spreading to that nation

(courtesy zerohedge)

“Dollar Is King”: Indonesia Joins India In Begging Fed To Stop Shrinking Its Balance Sheet

It’s getting a little tight around the neck for emerging market central bankers.

On the same day that the governor of Malaysia’s central bank quit, and just days after Urjit Patel, governor of the Reserve Bank of India, took the unprecedented step of writing an oped to the Federal Reserve, begging the US central bank to step tightening monetary conditions, and shrinking its balance sheet, thereby creating a global dollar shortage which has slammed emerging markets (and forced India into an unexpected rate hike overnight), Indonesia’s new central bank chief joined his Indian counterpart in calling on the Federal Reserve to be “more mindful” of the global repercussions of policy tightening amid the ongoing rout in emerging markets.

As Bloomberg reports, in his first interview with international media since he took office two weeks ago, Bank Indonesia Governor Perry Warjiyo – who bears a remarkable resemblance to what Jamie Dimon would look like if he were about 40 pounds overweight – echoed what Patel said just days earlier, namely that the pace of the Fed’s balance sheet reduction was a key issue for central bankers across emerging markets.

Bank Indonesia Governor Perry Warjiyo

As a reminder, the RBI Governor made exactly thew same comments earlier this week, arguing that slowing the pace of stimulus withdrawal at a time when the US Treasury is doubling down on debt issuance, would support global growth, as the alternative would be an emerging markets crisis that would spill over into developed markets.

In a thinly veiled warning addressing the Fed, Warjiyo said that “we know every country must decide their policy based on domestic circumstances but look, you have to take account of your actions and the impact of your actions to other countries, especially the emerging markets.”

Actually, no it doesn’t: the only thing the Fed has to take into account is what its private owners (see “Bernanke’s Former Advisor: “People Would Be Stunned To Know The Extent To Which The Fed Is Privately Owned“) ask and proceed accordingly.

The growing complaints from EM central bankers come at a time when the Fed continues to tighten monetary policy, and with another interest-rate hike expected next week, emerging markets across the globe are bracing for a further selloff. Bank Indonesia has already raised its key rate twice to help bolster its currency, while the Reserve Bank of India on Wednesday became the latest to move, increasing its policy rate by 25 basis points to 6.25%, surprising a majority of analysts who expected no change.

“Communication is very important,” Warjiyo said. “We are looking for the Fed to communicate more clearly the intention of their policy so the market can understand clearly and also react and all the central banks can also anticipate and consider it in their policy making.”

Actually, here the Fed has been especially clear, often more so than the market, and unlike in 2015 and 2016, has been hiking just as often as its “dot plot” said it would.

Still, Warjiyo’s comments underscore the difficult policy choices central bankers are being forced to make as they try to respond to external forces driving their currencies.

On Tuesday, South African central bank Governor Lesetja Kganyago said the Fed is communicating its intentions better than it did in 2013 during the taper tantrum, but its job is being complicated by U.S. fiscal policy.

“Nobody figured out that the U.S. could embark on all of these trade policies that they had embarked on and that complicates the work of the Fed,” he said in Johannesburg. “I don’t think that they had factored in earlier that there will be stimulus that had been put in for the U.S. economy from the fiscus.”

Unfortunately for all these central bankers, it’s about to get even more difficult as policy normalization in Japan and Europe will bring more uncertainty, further monetary tightening and more outflows from emerging markets. Warjiyo said that while the “dollar is king” at the moment, it may lose that status next year.

“There are three global players that impact the future of interest rates and exchange rates. Now it’s only the U.S.,” Warjiyo said. “That’s why the U.S. and the dollar are king. But next year if Europe starts normalizing, Japan starts normalizing, then I don’t think the U.S. or the dollar will be the only king.”

Like India, the Indonesian central bank moved decisively – and unexpectedly – to support the rupiah, holding an out-of-cycle meeting last week in which he increased the benchmark rate by 25 bps to 4.75%. The thinking goes that by pre-empting the uncertainty in financial markets, the central bank has been able to stabilize the currency, Warjiyo said on Wednesday, adding that more rate hikes are possible if financial and economic conditions warrant it.

“Yes, there is a possibility of a rate hike,” Warjiyo said. “Of course, the magnitude and timing will be measured and will depend on our calibration of new information that will be coming.”

And while rate hikes are great to stabilize EM currencies and capital outflows, if only briefly, there is a just as unpleasant tradeoff: they cripple economic growth, and the result – in virtually every single case – is a recession, which sooner or later shits into capital markets..

Indeed, as Bloomberg’s Garfield Reynolds writes, “India’s rate hike was Asia’s latest forced policy action as USD strength and Fed tightening spur emerging-market central banks to follow suit to stop FX routs. The result has been a massive surge in the average 2-year swap rate for EM Asia, and that may make conditions tight enough to hold down the region’s equities relative to U.S. peers.

And once enough peripheral emerging markets tumble, it is only a matter of time before the contagion spills over into the core, and – eventually – the US.

end

BRAZIL

Brazil’s Central bank intervenes again as the real crashes to almost 4 to 1

(courtesy zerohedge)

Brazil Central Bank Intervenes Again As Real Crashes

Update: As the Real plunged to 3.90, Brazilian authorities have decided it is time to intervene once again (having failed just two days ago). While the intervention has not occurred yet (Brazil to auction up to 40,000 FX swaps between 10:20am to 10:30am ET), there is no ‘pricing in’ effect at all in the Real spot market.

Finally, by popular demand from many of our Brazilian readers, there is a silver lining – things are much worse in Argentina and Turkey, so that’s something!

*  *  *

Mohamed El-Erian warned overnight that Brazilian policy makers are “in quite a tricky position — and there’s little room for error,” and judging buy this morning’s rout in the real, he is dead right.

Crippling nationwide trucker strikes, which prompted the resignation of Petrobras CEO, and forced Brazil and Argentina to roll back their planned fuel-price increases have, according to Bloomberg’s Davison Santana, undermined their already fragile currencies and deter investors eager for signs authorities are serious about putting fiscal accounts in order.

Brazil’s projected budget deficit as a percentage of gross domestic product stands at 7.4 percent, the highest among major emerging-market peers.

The gap, as El-Erian explained succinctly, leave government with a stark choice: keep borrowing or cut spending.

As Santana notes, borrowing more isn’t a healthy option. Higher deficits make currencies less attractive, leading to rising interest rates that reduce growth and erode government revenue in a cycle that ends up, you guessed it, swelling the deficit. Reining in spending typically makes more sense. That’s why it’s all the more remarkable that Brazil recently capitulated in their efforts to remove artificial price controls that kept fuel costs low. After all, it’s much harder to reduce spending while maintaining subsidies.

So where does this leave the real? It means authorities will have to keep intervening in currency markets, a costly use of foreign-exchange reserves that can only stop for good once the nations tackle their underlying fiscal problems. And indeed, after Brazil’s real tumbled to a two-year low on Tuesday, the government effectively tripled its support – which has already failed dismally.

month ago we explained how critical the Brazilian Real is to identifying just when the Emerging Market turmoil will go viral.

How can one decide if the Emerging Market turmoil is about to sweep across the entire sector, and result in DM contagion? According to Bank of America the answer is simple:

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

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

And one glimpse at the chart below makes it very clear, Brazil is now flashing bright red on the EM turmoil SHTF index…

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

Euro/USA 1.1834 UP .0054/ 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 109.96   DOWN 0.156  (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 1.3446 UP  0.0027  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2954  UP .0008 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS THURSDAY morning in Europe, the Euro ROSE by 54 basis points, trading now ABOVE the important 1.08 level RISING to 1.1834; / Last night Shanghai composite CLOSED DOWN 5,08 POINTS OR 0.18%  /Hang Sang CLOSED UP 253.53 POINTS OR 0.81% /AUSTRALIA CLOSED UP .52% / EUROPEAN BOURSES  ALL GREEN /

The NIKKEI: this THURSDAY morning CLOSED UP 197.53 OR 0.87%

Trading from Europe and Asia

1/EUROPE OPENED ALL GREEN 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 253.53 POINTS OR 0.81%  / SHANGHAI CLOSED DOWN 5,68 POINTS OR 0.18%  /

Australia BOURSE CLOSED UP .56%

Nikkei (Japan) CLOSED UP 197.53 POINTS OR 0.87%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1298.75

silver:$16.75

Early THURSDAY morning USA 10 year bond yield: 2.99% !!! UP 4 IN POINTS from WEDNESDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.14 UP 4  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early  THURSDAY morning: 93.27 DOWN 35  CENT(S) from WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now your closing THURSDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 2.025% UP 8  in basis point(s) yield from WEDNESDAY/

JAPANESE BOND YIELD: +.055%  UP 0/10   in basis points yield from WEDNESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.5458% DOWN 5  IN basis point yield from WEDNESDAY/

ITALIAN 10 YR BOND YIELD: 3.020  UP 18  POINTS in basis point yield from WEDNESDAY/

the Italian 10 yr bond yield is trading 156 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES TO +.490%   IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1828 UP .0047(Euro UP 47 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 109.94 DOWN 0.189 Yen UP 19 basis points/

Great Britain/USA 1.3440 UP .0021( POUND UP 21 BASIS POINTS)

USA/Canada 1.2984 UP  .0037 Canadian dollar DOWN 37 Basis points AS OIL ROSE TO $65.79

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was UP 47 to trade at 1.1828

The Yen ROSE to 109.94 for a GAIN of 19 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND GAINED 21 basis points, trading at 1.3440/

The Canadian dollar LOST 37 basis points to 1.2984/ WITH WTI OIL RISING TO : $65.79

The USA/Yuan closed AT 6.3921
the 10 yr Japanese bond yield closed at +.055%  UP 0/10  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield UP 0   IN basis points from WEDNESDAY at 2.964 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.107  DOWN 2  in basis points on the day /

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

Your closing USA dollar index, 93.31  DOWN 30 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED DOWN 7.97 POINTS OR 0.10%
German Dax :CLOSED DOWN 19.02 OR 0.15%
Paris Cac CLOSED DOWN 9.20 POINTS OR 0.17%
Spain IBEX CLOSED UP 44.50 POINTS OR 0.45%

Italian MIB: CLOSED DOWN 39.99 POINTS OR 0,18%

The Dow closed UP 95.02 POINTS OR 0.38%

NASDAQ closed down  54.17 OR .70 % 4.00 PM EST

WTI Oil price; 65.79  1:00 pm;

Brent Oil: 76.78 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 62.32 UP 51/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 22 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO +.490% 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:$65.92

BRENT: $77.31

USA 10 YR BOND YIELD: 2.93% the dropping yields signify markets are in turmoil

USA 30 YR BOND YIELD: 3.07%/

EURO/USA DOLLAR CROSS: 1.1803 UP .0021  (UP 21 BASIS POINTS)

USA/JAPANESE YEN:109.71 DOWN 0.423 (YEN UP 42 BASIS POINTS/ .

USA DOLLAR INDEX: 93.45 DOWN 17 cent(s)/dangerous as the HIGHER dollar IS DESTROYING THE EMERGING MARKETS.

The British pound at 5 pm: Great Britain Pound/USA: 1.3421 UP 0.0002  (FROM YESTERDAY NIGHT UP 2  POINTS)

Canadian dollar: 1.2977 DOWN 31 BASIS pts

German 10 yr bond yield at 5 pm: +490%


VOLATILITY INDEX:  12.13  CLOSED  UP 0.49

LIBOR 3 MONTH DURATION: 2.321%  .

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

TRADING IN GRAPH FORM FOR THE DAY

Bond Bulls Battered In Yield Flash-Crash As Tech

Stocks Tumble

Only one clip for today really…

Well, instead of starting with stocks, Bonds and FX dominate the headlines today – a flash-crash across the Treasury yield curve and a collapse and failed intervention in the Brazilian Real.

Treasury yields topped around 5amET this morning (with 10Y unable to reach 3.00% despite a good run at it in the last few days). The bid started in bonds, picked up through the US cash open, then accelerated dramatically at around midday ET, flash-crashing 10-12bps across the entire treasury market…

With massive volume flooded through futures – more volume than on the payrolls print…

10Y Treasury yields were unable to break 3.00% before tumbling..

The yield curve flattened on the day also …

Meanwhile, the most significant of EM FX markets – Brazil – was in utter turmoil as another $3 billion intervention failed miserably and the Real crashed to new cycle lows…

Putting that in context, it’s really ugly…

We also note that Brazil halted its bond market trading and there is an unmistakable relationship between the timing of the Real’s plunge and the collapse in Treasury yields…

And that’s why what happens in Brazil matters! Everything is connected.

Tech stocks extended their underperformance from yesterday afternoon…

Value dominated growth today…

Trannies remain red on the week as Dow outperforms…

VIX briefly popped its head back above 13 today but was quickly slapped lower…

After spiking to its highest levels since the peak of the dotcom bubble in March 2000, the S&P tech sector relative to financials has

The Dollar Index did it again – basically flatlining for 16 straight days… (1168, 1170, 1169, 1168, 1169, 1168,  1171, 1173, 1177, 1170, 1171, 1172, 1171, 1172, 1170, 1170…)

But while the broad dollar index has gone nowhere, EM FX has collapsed relative to it…

Cryptos also flatlined today with all holding gains for the week…

Oil outperformed but copper faded off early gains as gold and silver trod water…

Three days in a row now gold has spiked, finding support on any drop at the $1300 level…

Copper/Gold and 10Y Yields have recoupled once again…

end

SWAMP STORIES

The Dept of Justice caves and will show lawmakers additional documents on the “spygate affair”. It looks to me that the evidence that will be provided by Bill Priestap will be essential as to the genesis of the Russian collusion

(courtesy zerohedge)

DOJ Caves, Will Show Lawmakers Additional Documents On “Spygate” Informant

The Department of Justice is planning to show senior lawmakers several highly-classified documents in an additional briefing on the FBI’s use of a spy as part of a counterintelligence operation on the Trump campaign, Politico reports.

A senior DOJ official said that the so-called “Gang of Eight” will have an opportunity next Monday or Tuesday to review the additional documents which were not furnished during a high-level classified briefing in May. 

The Department and FBI are prepared to brief members on certain questions specifically raised by the Speaker and other members,” the DOJ official said. “The Department will also provide the documents that were available for review but not inspected by the members at the previous briefing along with some additional material.” –Politico

The group includes Reps Devin Nunes (R-CA), Adam Schiff (D-CA), Richard Burr (R-NC), Mark Warner (D-VA), Paul Ryan (R-WI), Nancy Pelosi (D-CA), Mitch McConnell (R-KY) and Chuck Schumer (D-NY).

Paul Ryan and Trey Gowdy have notably said that the FBI’s use of Halper to spy was appropriate, while President Trump has labeled the affair “spygate.” 

Donald J. Trump

@realDonaldTrump

SPYGATE could be one of the biggest political scandals in history!

Rep. Matt Gaetz (R-FL) hit back on Fox News Wednesday evening, saying There is no defense today for Paul Ryan siding with the FBI and Department of Justice against those of us in the Congress fighting for transparency and accountability.”  “We need the speaker to be an institutionalist for the Congress, not to be a defender of the deep state,” he added.

Heavy Spin

It’s worth noting that Politico and seemingly every other mainstream organization seems to be trying to discredit or minimize “spygate” by suggesting that somehow Trump’s original claim that the FBI “planted a spy within his ranks” is somehow less insidious than revelations that the spying was done through targeted espionage involving Trump campaign aides.

Politico writes:

Trump has railed against the FBI and accused it of planting a spy within his ranks for political purpose, though he’s presented no evidence to support the claim, which he’s labeled “spygate.” -Politico

Except we’re a little beyond that. The fact that Halper spied on the Trump campaign for the FBI is not in dispute – though a vicious argument over semantics has ensued. Halper’s contacts with the campaign were revealed in March of this year in a much-overlooked report by the Daily Caller – which was corroborated by the New York Times and Washington Post in May.

Halper’s infiltration of the Trump campaign also corresponds with the two of the four targets of the FBI’s Operation Crossfire Hurricane

Halper’s involvement in spying on the Jimmy Carter campaign ahead of the 1980 US election has been well documented. (read more about Halper here)

Evidence that Halper received over $1 million in academic contracts from the Obama Pentagon going back to 2012 is not in dispute – in fact it’s easily verifiable public record; with $282,000 awarded in 2016 and $129,000 in 2017 ($411,000 combined).

Award ID Recipient Name Start Date End Date Amount Awarding Agency
HQ003416P0148 HALPER, STEFAN 9/26/2016 3/29/2018 $411,575 Department of Defense
HQ003415C0100 HALPER, STEFAN 9/24/2015 9/27/2016 $244,960 Department of Defense
HQ003414C0076 HALPER, STEFAN 7/29/2014 7/31/2015 $204,000 Department of Defense
HQ003412C0039 HALPER, STEFAN 5/30/2012 5/29/2013 $197,626 Department of Defense

(h/t ProHeat)

And as the Washington Post noted on Monday:

Halper, a longtime source of information for U.S. intelligence and law enforcement personnel, used his position at Cambridge to reach out to three Trump advisers in 2016, introducing himself as a scholar interested in discussing foreign policy, according to people familiar with the interactions.

Recent revelations that the 73-year-old academic was a confidential source for the FBI have fueled President Trump’s attacks on the Justice Department and the FBI. “Spygate,” as the president put it in a tweet, is a “scandal the likes of which this country may never have seen before!”

In other words – Trump doesn’t need to offer evidence of anything; there are more than enough data-points to call this “spygate” no matter how many times the Intelligence Community tries to say that Halper was but a humble elderly FBI “informant” trying to help Trump by rooting out dastardly Russians in his midst (without notifying Trump, of course).

As an aside – Politifact’s “debunking” of Halper’s payments as “False” is sadly very misleading – as they “debunk” an obscure website’s hyperbolic article with an indicated 52 views that reads:

“BOMBSHELL!! Obama Paid FBI Informant Over $1 MILLION To Do It To Trump!”

Politifact latched onto the false claim that all the money was used on the Trump campaign…

About 40 percent of the money was awarded before Trump even got into the race in June 2015. So even if there were a tie between the contracts and Halper’s conversations with Trump campaign advisers – and there’s zero indication of that —  the amount would be less than $1 million. –Politifact

We couldn’t find any other publications claiming that the entire $1 million-plus went towards spying on Trump’s team except for the website used in Politifact’s “debunking” – which was registered in January of 2018 and has no Alexa rank.

The entire point of “spygate” is that the Obama administration paid a known FBI and CIA asset – whose father-in-law was Ray Cline, former Deputy Director of the CIA – over $1 million in contracts through the Department of Defense. The FBI/DOJ then spied on the Trump campaign for the FBI in an unprecedented abuse of power, while also using an unverified dossier assembled by a former British spy which used high-level Kremlin sources to obtain a FISA warrant to surveil former Trump aide Carter Page.

And while Trey Gowdy and Paul Ryan may think the Obama administration was justified in their actions, “spygate” has all the appearances of a ham-handed setup in an attempt to cripple Donald Trump and ensure that Hillary Clinton won the 2016 election.

I will  see you FRIDAY night

HARVEY

 

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