GOLD: $1254.60 DOWN $3.60(COMEX TO COMEX CLOSINGS)
Silver: $16.18 DOWN 8 CENTS (COMEX TO COMEX CLOSINGS)
Closing access prices:
Gold $1252.05
silver: $16.07
ON JUNE 29 OPTIONS, FOR OTIC/LONDON GOLD EXPIRE SO EXPECT CONTINUAL WHACKING OF GOLD UNTIL FRIDAY NIGHT.
For comex gold:
JUNE/
NUMBER OF NOTICES FILED TODAY FOR JUNE CONTRACT:40 NOTICE(S) FOR 4000 OZ
TOTAL NOTICES SO FAR 6890 FOR 689000 OZ (21.430 tonnes)
For silver:
JUNE
0 NOTICE(S) FILED TODAY FOR
nil OZ/
Total number of notices filed so far this month: 1076 for 5,380,000 oz
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Bitcoin: BID $6059/OFFER $6145: DOWN $54(morning)
Bitcoin: BID/ $6076/offer $6161: DOWN $38 (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: 1259.14
NY price at the same time: 1255.05
PREMIUM TO NY SPOT: $4.09
Second gold fix early this morning: 1258.45
USA gold at the exact same time:1256.45
PREMIUM TO NY SPOT: $2.00
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 FELL BY A CONSIDERABLE 2488 CONTRACTS FROM 220,905 DOWN TO 218,492 WITH YESTERDAY’S 8 CENT LOSS IN SILVER PRICING. HOWEVER AS WE ARE NOW WELL INTO THE NON ACTIVE DELIVERY MONTH OF JUNE WE CONTINUE TO WITNESS LONGS PACK THEIR BAGS AND MIGRATE OVER TO LONDON IN GREATER NUMBERS. WE WERE NOTIFIED THAT WE HAD A GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP: 802 EFP’S FOR JULY, 544 EFP’S FOR SEPT. , 0 EFP’S FOR DECEMBER AND ZERO FOR ALL OTHER MONTHS AND THEREFORE TOTAL ISSUANCE: OF 1346 CONTRACTS. WITH THE TRANSFER OF 1346 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 1346 EFP CONTRACTS TRANSLATES INTO 6.73 MILLION OZ ACCOMPANYING:
1.THE 8 CENT LOSS IN SILVER PRICE AT THE COMEX AND
2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR JUNE COMEX DELIVERY. (5.405 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:
59,910 CONTRACTS (FOR 19 TRADING DAYS TOTAL 59,910 CONTRACTS) OR 299.55 MILLION OZ: (AVERAGE PER DAY: 3153 CONTRACTS OR 15.76 MILLION OZ/DAY)
TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER: SO FAR THIS MONTH: 299.55* MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 39.77% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)* WE HAVE ALREADY PASSED LAST MONTH AND CLOSING IN ON THE RECORD MONTH OF APRIL/2018.
ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S: 1,615.67 MILLION OZ.
ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ
ACCUMULATION FOR FEB 2018: 244.95 MILLION OZ
ACCUMULATION FOR MARCH 2018: 236.67 MILLION OZ
ACCUMULATION FOR APRIL 2018: 385.75 MILLION OZ
ACCUMULATION FOR MAY 2018: 210.05 MILLION OZ
RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX OF 2488 DESPITE THE 8 CENT LOSS IN SILVER PRICE. WE HAVE NOW ENTERED THE NEW NON ACTIVE MONTH OF JUNE AND THE CME NOTIFIED US THAT IN FACT WE HAD A GOOD SIZED EFP ISSUANCE OF 1346 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: 802 EFP CONTRACTS FOR JULY, 544 EFP’S FOR SEPT, 0 EFP’S FOR DECEMBER AND ZERO FOR ALL OVER MONTHS FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 1346). TODAY WE LOST AN GOOD: 1142 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: i.e.1346 OPEN INTEREST CONTRACTS HEADED FOR LONDON (EFP’s) TOGETHER WITH AN DECREASE OF 2488 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 8 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $16.25 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A GIGANTIC AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY IN THIS NON ACTIVE JUNE DELIVERY MONTH. IT SURE LOOKS LIKE A FAILED BANKER SHORT COVERING EXERCISE!!
In ounces AT THE COMEX, the OI is still represented by OVER 1 BILLION oz i.e. 1.110 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: 0 NOTICE(S) FOR NIL 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:
- HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ AND MAY: 36.285 MILLION OZ /AND JUNE/2018 (5.405 MILLION OZ SO FAR)
- HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018
- HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
- 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).
In gold, the open interest FELL BY A LARGE 6325 CONTRACTS DOWN TO 468,573 WITH THE FALL IN THE GOLD PRICE/YESTERDAY’S TRADING (A DROP IN PRICE OF $9.10). 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 ISSUANCE AND IT TOTALED A STRONG SIZED 9008 CONTRACTS : JUNE SAW THE ISSUANCE OF 0 CONTRACTS , AND AUGUST SAW THE ISSUANCE OF: 9008 CONTRACTS WITH ALL OTHER MONTHS ZERO. The new OI for the gold complex rests at 468,573. 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 GIGANTIC OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES: 6325 OI CONTRACTS DECREASED AT THE COMEX AND A STRONG SIZED 9008 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS TOTAL OI GAIN: 2683 CONTRACTS OR 268300 OZ = 8.34 TONNES. AND STRANGELY ALL OF THIS DEMAND OCCURRED WITH A FALL IN THE PRICE OF GOLD TO THE TUNE OF $9.10.???
YESTERDAY, WE HAD 9375 EFP’S ISSUED.
ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 201,985 CONTRACTS OR 20,198,500 OZ OR 628.258 TONNES (19 TRADING DAYS AND THUS AVERAGING: 10,630 EFP CONTRACTS PER TRADING DAY OR 1,063,000 OZ/ TRADING DAY),,
TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS : THIS MONTH IN 19 TRADING DAYS IN TONNES: 628.26 TONNES
TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2555 TONNES
THUS EFP TRANSFERS REPRESENTS 628,26/2550 x 100% TONNES = 24.63% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JUNE ALONE.***
ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE: 4,080.07* TONNES *SURPASSED ANNUAL PROD’N
ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22 TONNES (21 TRADING DAYS)
ACCUMULATION OF GOLD EFP’S FOR FEBRUARY 2018: 649.45 TONNES (20 TRADING DAYS)
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)
ACCUMULATION OF GOLD EFP FOR JUNE 2018 (21 TRADING DAYS)
WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS. ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM. IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE.
Result: A CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 6325 WITH THE $9.10 DROP IN PRICING GOLD TOOK YESTERDAY // . WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 9008 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 9008 EFP CONTRACTS ISSUED, WE HAD AN ATMOSPHERIC NET GAIN OF 2683 CONTRACTS IN TOTAL OPEN INTEREST ON THE TWO EXCHANGES:
9008 CONTRACTS MOVE TO LONDON AND 6325 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 8.34 TONNES). ..AND BELIEVE IT OR NOT BUT ALL OF THIS DEMAND OCCURRED WITH A FALL OF $9.10 IN TRADING!!!. AT THE COMEX. THE COMEX IS AN OUTRIGHT FRAUD
we had: 40 notice(s) filed upon for 4000 oz of gold at the comex.
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With respect to our two criminal funds, the GLD and the SLV:
GLD...
WITH GOLD DOWN $3.60 TODAY: / TWO HUGE CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.42 TONNES FROM THE GLD INVENTORY/ AND THEN A WITHDRAWAL OF 2.94 TONNES
/GLD INVENTORY 821.69 TONNES
Inventory rests tonight: 821.69 tonnes.
SLV/
WITH SILVER DOWN 8 CENTS TODAY /ANOTHER HUGE CHANGE IN THE SILVER: A WITHDRAWAL OF 941,000 OZ/ STRANGE!! YESTERDAY THEY ADDED THE EXACT SAME 941,000 OZ!!! WHAT CROOKS
/INVENTORY RESTS AT 319.360 MILLION OZ/
end
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in SILVER FELL BY A CONSIDERABLE SIZED 2488 CONTRACTS from 221,411 DOWN TO 218,492 (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:
802 EFP’S FOR JULY, 544 EFP CONTRACTS FOR SEPT., 0 EFP CONTRACTS FOR DECEMBER AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1346 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 925 CONTRACTS TO THE 1346 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A NET LOSS OF 1142 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 5.71 MILLION OZ!!! AND YET THIS STRONG DEMAND OCCURRED WITH A 8 CENT LOSS IN PRICE??? . THE BANKERS ORCHESTRATED THEIR CONSTANT AND NEVER ENDING RAIDS DESPERATELY TRYING TO PARE THEIR GIGANTIC OPEN INTEREST SHORT ON BOTH EXCHANGES WITH HARDLY ANY SUCCESS. HOWEVER A DRAMATIC AMOUNT OF EFP ISSUANCE IS HEADING OVER TO LONDON AND NO DOUBT WE WILL COME CLOSE TO BREAKING APRIL’S RECORD OF 385 MILLION OZ.
RESULT: A SMALL SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE THE 8 CENT LOSS THAT SILVER TOOK IN PRICING ON YESTERDAY. BUT WE ALSO HAD ANOTHER STRONG SIZED 1346 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)WEDNESDAY MORNING/TUESDAY NIGHT: Shanghai closed DOWN 31.33 POINTS OR 1.10% /Hang Sang CLOSED DOWN 525.14 POINTS OR 1.82% / The Nikkei closed DOWN 70.23 POINTS OR 0.31% /Australia’s all ordinaires CLOSED DOWN 0.03% /Chinese yuan (ONSHORE) closed DOWN at 6.6075 AS POBC EXERCISES A HUGE DEVALUATION IN THE LAST FEW DAYS/Oil UP to 71.06 dollars per barrel for WTI and 76.89 for Brent. Stocks in Europe OPENED IN THE GREEN EXCEPT SPAIN//. ONSHORE YUAN CLOSED DOWN AT 6.6075 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.5990 :HUGE DEVALUATION/PAST FEW DAYS//ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING MUCH WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR IS BEGINNING/
/NORTH KOREA/SOUTH KOREA
i)North Korea/South Korea/USA
b) REPORT ON JAPAN
3 c CHINA
i)China/USA
Last night, the yuan tumbles to a 6 month low at 6.61 to th dollar. News out of China suggests that they will reduce their purchases of USA treasuries something that the uSA desperately needs
( zerohedge)
ii)Then this morning, Trump blinks and decides against the harshest measures on Chinese investment
( zerohedge)
iii) This Chinese think tank is worried that markets are going to collaps
(courtesy zerohedge)
4. EUROPEAN AFFAIRS
Germany/Deutsche Bank
No reason given but Deutsche bank[‘s stock fell below 9 euros. Deutsche bank is the world’s largest derivative player and owner of one of the largest portfolio of junk bonds
( zerohedge)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
6 .GLOBAL ISSUES
A town in rural Mexico Ocampo has seen its entire police force arrested on suspicion of murder after a mayoral candidate for the town was assassinated
( zerohedge)
7. OIL ISSUES
8. EMERGING MARKET
9. PHYSICAL MARKETS
Turkey in one year has doubled its official gold reserves from 116 tonnes up to 239 tonnes
( Lawrie Williams/Sharp’s Pixley)
10. USA stories which will influence the price of gold/silver)
i)Wednesday morning trading
Crude jumps to 72 dollars on fears that Trump may be winning in his battle with Iran
( zerohedge)
ib)LATE MORNING
(courtesy zerohedge)
ic)Afternoon:
Dow gives up all of its morning gains and breaks below critical support
(courtesy zerohedge)_
a)Seems that the USA economy has turned on a dime: today core durable goods slump with the main culprit capital spending
( zerohedge)
b)Another indicator that the economy has stalled: Pending home sales slumped again
(courtesy zerohedge)
iii)New Jersey is on the brink of a shutdown as they still have not passed a budget. The governors party wants to raise corporate income tax to the highest level in the country. New Jersey is second to Illinois in the basket case category
( zerohedge)
iv)the left is going nuts as they surround Trump employees and politicians demanding better immigration policy
(courtesy zerohedge)
v)After Trump blinked, Mnuchin states it is “unfortunate” that the markets got mixed messages. CFIUS will not target China specifically
(courtesy zerohedge)
vi)As expected, the House rejects the second immigration bill after the hardline measure failed earlier in the week.
(courtesy zerohedge)
vii)SWAMP STORIES
a)The house approves a resolution demanding the DOJ/FBI documents that Rosenstein has restricted the oversight boys from seeing. If Rosenstein does not comply they will initiate impeachment
( Sara Carter)
Trading Volumes on the COMEX
PRELIMINARY COMEX VOLUME FOR TODAY: 240,145 contracts
CONFIRMED COMEX VOL. FOR YESTERDAY: 262,236 contracts
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And now for the wild silver comex results.
Total silver OI FELL BY A CONSIDERABLE SIZED 2488 CONTRACTS FROM 220,980 DOWN TO 218,492 (AND A LITTLE FURTHER FROM THE THE NEW RECORD OI FOR SILVER SET APRIL 9.2018/ 243,411 CONTRACTS) DESPITE THE 8 CENT LOSS IN SILVER PRICING/ YESTERDAY. SINCE WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE, WE WERE INFORMED THAT WE HAD A GOOD SIZED 802 EFP CONTRACT ISSUANCE FOR JULY, 544 EFP CONTRACTS FOR SEPT., 0 EFP CONTRACTS FOR DECEMBER 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: 1346. ON A NET BASIS WE LOST 1142 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 2488 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1346 OI CONTRACTS NAVIGATING OVER TO LONDON.
NET LOSS ON THE TWO EXCHANGES: 1142 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 4 contracts RISING TO 5 contracts. We had 0 notices filed upon yesterday so we gained 4 contracts or an additional 20,000 oz will stand in this non active delivery month of June AS TODAY SOMEBODY WAS IN URGENT NEED OF PHYSICAL ON THIS SIDE OF THE POND
The next big active delivery month for silver is July and here the OI LOST 14,911 contracts DOWN to 39,272. The next delivery month is August and here we GAINED 123 contracts to stand at 811 The next active delivery month after August for silver is September and here the OI ROSE by 11,053 contracts UP to 137,918
FOR COMPARISON AT THIS TIME IN THE DELIVERY CYCLE, JUNE 27.2017, FOR SILVER, WE HAD 40,677 OPEN INTEREST CONTACTS STILL STANDING.VS 39,272 TODAY. LAST YEAR AT THIS TIME WE HAD 3 MORE TRADING DAYS LEFT BEFORE FIRST DAY NOTICE (JUNE 27-JUNE 30), THIS YEAR WE HAVE 2 MORE TRADING DAYS BEFORE FDN (JUNE 26-29).
ON JUNE 28/2017 WE HAD 25,397 CONTRACTS OUTSTANDING VS 39,272 WITH THE EXACT NUMBER OF DAYS LEFT BEFORE FDN I.E. TWO TRADING DAYS.WE NO DOUBT WILL HAVE A DOOZY AMOUNT OF SILVER OZ STANDING FOR THE HUGE JULY CONTRACT MONTH
FROM LAST YEARS DATA, ON FIRST DATE NOTICE FOR THE JULY 2017 COMEX DELIVERY MONTH WE HAD 12.115 MILLION OZ OF SILVER STANDING FOR DELIVERY. AT MONTH’S END WE HAD 16.435 MILLION OZ EVENTUALLY STAND AS WE ALREADY HAD QUEUE JUMPING BEGIN IN EARNEST FROM APRIL 2017 ONWARD EVEN TO TODAY.
We had 0 notice(s) filed for NIL OZ for the JUNE 2018 COMEX contract for silver
INITIAL standings for JUNE/GOLD
JUNE 27/2018.
Gold | Ounces |
Withdrawals from Dealers Inventory in oz | nil oz |
Withdrawals from Customer Inventory in oz |
1,480.152 OZ
Scotia
|
Deposits to the Dealer Inventory in oz | NIL oz |
Deposits to the Customer Inventory, in oz | nil
oz |
No of oz served (contracts) today |
40 notice(s)
4000 OZ
|
No of oz to be served (notices) |
42 contracts
(4200 oz)
|
Total monthly oz gold served (contracts) so far this month |
6890 notices
689,000 OZ
21.430TONNES
|
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 |
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 40 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.
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To calculate the INITIAL total number of gold ounces standing for the JUNE. contract month, we take the total number of notices filed so far for the month (6890) x 100 oz or 689,000 oz, to which we add the difference between the open interest for the front month of JUNE. (82 contracts) minus the number of notices served upon today (40 x 100 oz per contract) equals 693,200 oz, the number of ounces standing in this active month of JUNE (21.561 tonnes)
Thus the INITIAL standings for gold for the JUNE contract month:
No of notices served (6890 x 100 oz) + {(182)OI for the front month minus the number of notices served upon today (40 x 100 oz )which equals 693,200 oz standing in this active delivery month of JUNE .
WE LOST A SMALL 12 CONTRACTS OR AN ADDITIONAL 1200 OZ WILL NOT STAND FOR DELIVERY AS THESE GUYS MORPHED INTO LONDON BASED FORWARDS AND RECEIVED AN ADDITIONAL SWEETENER FOR THEIR EFFORT..
THERE ARE ONLY 7.4177 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY AGAINST 21.561 TONNES STANDING WHICH IS MAKING THIS JUNE CONTRACT MONTH AN EXTREMELY INTERESTING ONE TO WATCH.
WE HAVE HAD 3 ADJUSTMENTS FROM DEALER TO THE CUSTOMER ACCOUNT SO FAR THIS MONTH AND THAT USUALLY MEANS A SETTLEMENT:
I) 5.90 TONNES (TWO WEEKS AGO)
II) 7.9 TONNES (3 DAYS AGO)
III) .56 TONNES (TWO DAYS AGO)
IV) ZERO (FRIDAY/JUNE 22)
v) ZERO (jUNE 25)
vi) zero (June 26)
vii) zero (June 27)
TOTAL: 14.36 TONNES HAVE BEEN SETTLED AGAINST THE 21.561TONNES STANDING.
IN THE LAST 18 MONTHS 81 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE APRIL DELIVERY MONTH
JUNE INITIAL standings/SILVER
Silver | Ounces |
Withdrawals from Dealers Inventory | nil oz |
Withdrawals from Customer Inventory |
106,913.17 oz
Scotia
|
Deposits to the Dealer Inventory |
nil;
oz
|
Deposits to the Customer Inventory |
nil
oz
|
No of oz served today (contracts) |
0
CONTRACT(S)
(NIL OZ)
|
No of oz to be served (notices) |
5 contract
(25,000 oz)
|
Total monthly oz silver served (contracts) | 1076 contracts
(5,380,000 oz) |
Total accumulative withdrawal of silver from the Dealers inventory this month | NIL oz |
Total accumulative withdrawal of silver from the Customer inventory this month |
we had 0 inventory movement at the dealer side of things
total dealer deposits: nil oz
we had 0 deposits into the customer account
i) Into JPMorgan: NIL oz
*** JPMorgan for most of 2017 and in 2018 has adding to its inventory almost every single day.
JPMorgan now has 141 million oz of total silver inventory or 52.0% of all official comex silver. (141 million/270 million)
ii) Into everybody else: 0
total customer deposits today: nil oz
we had 1 withdrawals from the customer account;
i) Out of Scotia: 106,913.17.oz
total withdrawals: 106,913.17 oz
we had 0 adjustment/
total dealer silver: 69.384 million
total dealer + customer silver: 275.290 million oz
The total number of notices filed today for the JUNE. contract month is represented by 0 contract(s) FOR NIL 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 1076 x 5,000 oz = 5,380,000 oz to which we add the difference between the open interest for the front month of JUNE. (5) and the number of notices served upon today (0 x 5000 oz) equals the number of ounces standing.
.
Thus the INITIAL standings for silver for the JUNE/2018 contract month: 1076(notices served so far)x 5000 oz + OI for front month of JUNE(5) -number of notices served upon today (0)x 5000 oz equals 5,405,000 oz of silver standing for the JUNE contract month
PLEASE NOTE THE FOLLOWING FOR COMPARISON PURPOSES:
WITH THE JUNE 27/2017 READING HAD 40,677 CONTRACTS STANDING SO FAR FOR THE JULY 2017 DELIVERY MONTH (WHICH WILL ALWAYS BE A VERY VERY ACTIVE MONTH/3 DAYS LEFT BEFORE FDN) VS.39,272 OUTSTANDING TODAY/JUNE 27.2018 (2 DAYS LEFT BEFORE FDN).
AT THE CONCLUSION OF JUNE 2017: 4.92 MILLION OZ FINALLY STOOD (INITIALLY 1.98 MILLION OZ STOOD FOR DELIVERY/ JUNE 1) AS QUEUE JUMPING STARTED IN EARNEST AND THROUGHOUT THE ENSUING YEAR IT CONTINUED WITH RECKLESS ABANDON INCLUDING WHAT YOU ARE WITNESSING TODAY.THIS IS COMPARED TO TODAY’S AMOUNT STANDING: 5.405 MILLION OZ.(INITIAL STANDING JUNE 1/2018 WAS 1.780 MILLION OZ)
FOR THE JUNE 2018 CONTRACT MONTH:
We gained 5 contracts or an additional 25,000 oz will stand in this non active delivery month of June as nobody was in urgent need of silver today. IN SILVER QUEUE JUMPING HAS BEEN THE NORM FOR OVER A YEAR. IT LOOKS LIKE GOLD IS TAKING A HOLIDAY FROM THIS SAME PHENOMENON…
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ESTIMATED VOLUME FOR TODAY: 150,612 CONTRACTS
CONFIRMED VOLUME FOR YESTERDAY: 139,685 CONTRACTS absolutely criminal
YESTERDAY’S CONFIRMED VOLUME OF 139,685 CONTRACTS EQUATES TO 698 million OZ OR 99.7% 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 -4.11% (JUNE 27/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.57% to NAV (JUNE 27/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -4.11%-/Sprott physical gold trust is back into NEGATIVE/
(courtesy Sprott/GATA)
3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA): NAV FALLS TO -3.53%: NAV 13.21/TRADING 12.80//DISCOUNT 3.53.
END
And now the Gold inventory at the GLD/
June 27/WITH GOLD DOWN $3.60// TWO ENTRIES:/STRANGELY THE CROOKS RETURNED THE WITHDRAWAL OF 4.42 TONNES LAST NIGHT (THUS WE HAD A DEPOSIT OF 4.42 TONNES/INVENTORY RESTS AT 824.63 TONNES. /THEN LATE THIS AFTERNOON A WITHDRAWAL OF 2.94 TONNES
INVENTORY RESTS AT 821.69 TONNES/THIS VEHICLE IS AN OUTRIGHT FRAUD.
june 26/LATE LAST NIGHT, WITH GOLD DOWN $9.10 WE HAD A HUGE WITHDRAWAL OF 4.42 TONNES OF GOLD/INVENTORY RESTS AT 820.21 TONES
JUNE 25/WITH GOLD DOWN $1.45/NO CHANGE IN GOLD INVENTORY AT THE GLD.INVENTORY RESTS AT 824.63 TONNES
JUNE 22/WITH GOLD UP 25 CENTS TODAY, THE CROOKS WITHDREW A MASSIVE 4.13 TONNES OF GOLD/INVENTORY RESTS AT 824.63 TONNES
JUNE 21/WITH GOLD DOWN $4.00/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONNES
JUNE 20/WITH GOLD DOWN $3.55/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONNES
JUNE 19/WITH GOLD DOWN $1.50/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONES
JUNE 18/WITH GOLD UP $1.90/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONNES
JUNE 15/WITH GOLD DOWN $28.90/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONNES
JUNE 14/WITH GOLD UP $7.10/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONNES/
JUNE 13/WITH GOLD UP $2.20/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONNES
JUNE 12/WITH GOLD DOWN $4.75:NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.76 TONNES
JUNE 11/WITH GOLD UP 65 CENTS/THE CROOKS RAIDED THE COOKIE JAR FOR 3.83 TONNES/INVENTORY RESTS AT 828.76 TONNES
JUNE 8/WITH GOLD DOWN 10 CENTS/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 832.59 TONNES./
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
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JUNE 27/2018/ Inventory rests tonight at 821,69 tonnes
*IN LAST 404 TRADING DAYS: 104,90 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 354 TRADING DAYS: A NET 51.40 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.
end
Now the SLV Inventory/
JUNE 27.2018/WITH SILVER DOWN 8 CENTS/NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 819.360 MILLION OZ/
june 26./2018/WITH SILVER DOWN 8 CENTS, THE CROOKS WITHDREW THE DEPOSIT OF TWO DAYS AGO; 941,000 OZ OUT OF INVENTORY/INVENTORY RESTS AT 819.360 OZ
JUNE 25/WITH SILVER DOWN 12 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.301 MILLION OZ/
JUNE 22/WITH SILVER UP 12 CENTS TODAY,ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV” A DEPOSIT OF 941,000 OZ INTO INVENTORY/INVENTORY RESTS THIS WEEKEND AT 320.301 MILLION OZ/
JUNE 21/WITH SILVER UP ONE CENT/ANOTHER CHANGE IN SILVER INVENTORY AT THE SLV/: A DEPOSIT OF 2.918 MILLION OZ/INVENTORY RESTS AT 319.360 MILLION OZ/ THUS FOR TWO STRAIGHT DAYS A TOTAL OF 5.26 MILLION OZ OF SILVER HAS BEEN ADDED WITH NO CHANGE IN PRICE.
JUNE 20/WITH SILVER DOWN ONE CENT/A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY / A DEPOSIT OF 2.35 MILLION OZ/INVENTORY RESTS AT 316.442 MILLION OZ/
JUNE 19/2018/WITH SILVER DOWN 11 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 314.090 MILLION OZ/
JUNE 18/WITH SILVER DOWN 6 CENTS TODAY/NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 314.090 MILLION OZ/
JUNE 15/WITH SILVER DOWN 75 CENTS/A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.788 MILLION OZ//INVENTORY RESTS AT 314.090 MILLION OZ
JUNE 14/WITH SILVER UP 30 CENTS, THE CROOKS DECIDED THAT THEY NEEDED SILVER INVENTORY BADLY SO THEY RAID THE SLV OF 1.412 MILLION OZ/INVENTORY RESTS AT 315.878 MILLION OZ/
JUNE 13/WITH SILVER UP 11 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.290 MILLION OZ/
JUNE 12/WITH SILVER DOWN 5 CENTS/A HUGE CHANGES IN SILVER INVENTORY AT THE SLV/ THE CROOKS RAID THE SILVER COOKIE JAR BY 1.976 MILLION OZ/INVENTORY LOWERS TO 317.290 MILLION OZ/
jUNE 11/NO CHANGE IN SILVER INVENTORY/319.266 MILLION OZ
JUNE 8/WITH SILVER DOWN 5 CENTS/A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.412 MILLION OZ//INVENTORY LOWERS TO 319.266 MILLION OZ/
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/
JUNE 27/2018:
Inventory 319.360 MILLION OZ
6 Month MM GOFO 2.12/ and libor 6 month duration 2.50
Indicative gold forward offer rate for a 6 month duration/calculation:
G0FO+ 2.12%
libor 2.50 FOR 6 MONTHS/
GOLD LENDING RATE: .38%
XXXXXXXX
12 Month MM GOFO
+ 2.77%
LIBOR FOR 12 MONTH DURATION: 2.50
GOFO = LIBOR – GOLD LENDING RATE
GOLD LENDING RATE = +.27
end
Major gold/silver trading /commentaries for WEDNESDAY
GOLDCORE/BLOG/MARK O’BYRNE.
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|
Dear Harvey Organ,
Thank you for your participation in our webinar on June 7th with our host and CEO of Kinesis, Thomas Coughlin.
The response we received has been incredible, we appreciate you taking the time to join us and hope you found it to be beneficial.
Due to such a high influx of questions we received we were unable to have them all answered. Nevertheless, if there was anything which requires more clarification, or you have a query which needs to be rectified, we invite you to join our telegram group:
We apologize for the technical issues we incurred during the webinar which resulted in it running a little over schedule, we hope that the next one we host will run seamlessly.
A video has been put together and uploaded onto our YouTube channel which can be found here:
Please share and subscribe to our YouTube channel to be notified of all the latest videos as they become available.
The rapid growth that we are currently experiencing has been incredible and with your support, is only going to get better.
We are working behind the scenes very hard to create a better experience for everyone involved! Stay tuned in as we have many more announcements to be released in the upcoming days.
Kind Regards,
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a:C/O ILS Fiduciaries (IOM) Limited, First Floor,Millennium House, Victoria Road, Douglas, Isle of Man IM2 4RW
|
The following is self explanatory
(courtesy GATA/Chris Powell and Harvey Organ)
GATA asks bank regulator to check risks of gold
futures maneuver
Submitted by cpowell on Sun, 2018-06-10 16:17. Section: Daily Dispatches
12:21p ET Sunday, June 10, 2018
Dear Friend of GATA and Gold:
GATA has appealed to the U.S. comptroller of the currency, who has regulatory authority over banks, to review financial risks certain banks may have incurred through derivatives in the monetary metals markets, particularly through the recent heavy use of the “exchange for physicals” mechanism of settling gold and silver futures contracts on the New York Commodities Exchange.
The appeal was made in a letter sent May 5 to the comptroller, Joseph M. Otting, whose office is part of the U.S. Treasury Department, by your secretary/treasurer and GATA futures market consultant Harvey Organ.
“Exchange for physical” settlements of futures contracts long were considered emergency procedures when a seller was not able to deliver metal from an exchange-approved warehouse and wanted to settle with delivery elsewhere. But now such settlements appear to constitute most gold and silver futures settlements on the Comex. It is a strange development that appears to have been necessitated by the increasing difficulties of central banking’s gold and silver price suppression policy.
GATA has received no acknowledgment of the letter. Its text is below and a PDF copy of it is here:
http://www.gata.org/files/ComptrollerOfCurrencyLetter.pdf
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
* * *
May 5, 2018
Joseph M. Otting, Comptroller of the Currency
U.S. Treasury Department
400 7th Street, SW
Washington DC 20219
Dear Comptroller Otting:
Please let us bring to your attention financial risks to major banks involving their possibly unreported exposure to derivatives in the monetary metals markets.
In recent months gold and silver future contracts issued by U.S. banks on the New York Commodities Exchange have been moved off-exchange for delivery through a mechanism known as “exchange for physical” (EFP) contracts. Until recently use of this mechanism was considered an emergency procedure when a seller did not have access to metal for delivery through Comex warehouses. Now the mechanism seems to be in use for a large share of front-month contracts for which delivery is sought.
Here is an example that is happening at the Comex in the front active month of April for gold and the inactive delivery month of April for silver.
In gold, there were 229,436 EFP contracts for 713.64 tonnes, an average of 10,925 contracts and 1,092,500 ounces per trading day.
In silver, there were 77,150 EFP contracts for 385,750,000 ounces, an average of 3,673 contracts and 18,369,000 ounces per trading day.
London Bullion Market Association rules suggest that these contracts may not be reported to regulators. The LBMA’s bylaws say:
“Figures above exclude any contracts not subject to risk-based capital requirements, such as FX contracts with an original maturity of 14 days or less, futures contracts, written options, and basis swaps. Therefore, the total notional amount of derivatives by maturity will not add to the total derivatives figure in this table.”
We are told that these EFP contracts are transferred from the Comex to London as what are called “serial forwards” and their duration is always less than 14 days, which exempts them from being reported.
It is our understanding that in each quarter your office prepares a report detailing risk undertaken by the banks under the comptroller’s supervision.
These risks include derivatives undertaken by U.S. banks and other obligations that may cause a bank to fail. Our concern is that your office may not be aware of large unreported derivative exposure by banks.
Could you review this matter and let us know your conclusions?
Sincerely,
CHRIS POWELL
Secretary/Treasurer
HARVEY ORGAN
Consultant
Gold Anti-Trust Action Committee Inc.
7 Villa Louisa Road
Manchester, Connecticut 06043-7541
END
Turkey in one year has doubled its official gold reserves from 116 tonnes up to 239 tonnes
(courtesy Lawrie Williams/Sharp’s Pixley)
* * *
Your early WEDNESDAY morning currency, Asian stock market results, important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/9 AM EST
i) Chinese yuan vs USA dollar/CLOSED DOWN TO 6.6075/HUGE DEVALUATION /shanghai bourse CLOSED DOWN 31.33 POINTS OR 1.10%// HANG SANG CLOSED DOWN 525.14 PTS OR 1.82%
2. Nikkei closed DOWN 70.23 POINTS OR 0.31% / /USA: YEN RISES TO 109.98/
3. Europe stocks OPENED DEEPLY IN THE GREEN EXCEPT SPAIN / /USA dollar index RISES TO 94.89/Euro FALLS TO 1.1612
3b Japan 10 year bond yield: RISES TO . +.04/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109987/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD FINALLY IN THE POSITIVE/BANK OF JAPAN LOSING CONTROL OF THEIR YIELD CURVE AS THEY PURCHASE ALL BONDS TO GET TO ZERO RATE!!
3c Nikkei now JUST BELOW 17,000
3d USA/Yen rate now well below the important 120 barrier this morning
3e WTI:: 71.06 and Brent: 76.89
3f Gold DOWN/Yen DOWN
3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS AND SELLING THE SHORT END
Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.
3h Oil UP for WTI and UP FOR Brent this morning
3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.33%/Italian 10 yr bond yield DOWN to 2.83% /SPAIN 10 YR BOND YIELD DOWN TO 1.34%
3j Greek 10 year bond yield FALLS TO : 4.09
3k Gold at $1258.30 silver at:16.26 7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50
3l USA vs Russian rouble; (Russian rouble DOWN 4/100 in roubles/dollar) 62.97
3m oil into the 71 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 109.98 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 0.9928 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1531 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.
3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017
3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to +0.33%
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 2.85% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.00%
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
Global Markets Slide As Trade Fears Return:
China Bear Market Deepens, Deutsche Hits
Record Low
Trade fears have returned with a twist, as global market weakness has spread to European banks while safe havens including the yen and sovereign bonds are broadly higher amid renewed risk-off sentiment.
Once again, it started in China where the Shanghai Composite slumped for another session, dropping 1.1%, and falling deeper into a bear market.
The weakness was prompted by a renewed decline in the “weaponized” Yuan, which fell for a 10th consecutive day, matching a record losing stretch, and prompting questions whether Beijing is seeking to retaliate to Trump’s protectionism with another round of devaluation.
As we noted last night, last time the yuan devalued this fast, it unleashed hell on the world’s financial markets
The continued slump in the yuan has stoked concerns that Chinese policy makers are less willing to temper its decline, which may remove an anchor of stability for emerging-market currencies. Still, it may not be all Beijing’s doing as policymakers set the fixing at a level that was stronger than analysts expected on Wednesday, while the decline could have been far worse when at least one major Chinese bank sold the dollar in the onshore market to keep the yuan stronger than 6.6, according to two traders, prompting speculation of intervention.
A foreign-exchange trader in Asia told Bloomberg the offshore yuan ran into a large dollar-seller – possibly an agent bank working for Chinese authorities – after weakening beyond 6.61 per dollar. Tommy Ong, managing director for treasury and markets at DBS Hong Kong Ltd., said he wouldn’t be surprised if the People’s Bank of China intervened if speculative bets against the yuan grew. “The PBOC may think that fundamentally the yuan should weaken, but the move is too fast in the past week and that could ignite capital outflows,” Ong said. “Any intervention should aim only to smooth out such market moves
Whatever Beijing’s intentions, the Chinese drop pressured the MSCI Asia Pacific index lower for third day, while the yuan led to a decline in Asian currencies, as developing-market stocks also tumbled, with the MSCI Emerging Markets Index hitting the lowest in 10 months.
In Europe, the Stoxx 600 reversed initial gains and fell with beaten-down autos sector index resuming its sell-off, down 0.8% and hitting its lowest level since September 2017 amid worries over trade tensions.
The banking sector did not help, as Deutsche Bank suffered a sharp selloff shortly after the start of trading, sending the stock to new all time lows, and dragging the European banking sector to the lowest level since 2016, and down 14% YTD.
U.S. equity-index futures also slid amid a rush for safety, which sent the dollar higher and the yield on 10Y Treasurys as low as 2.84%, briefly sending the 2s10s below 33 bps.
In FX, the dollar was headed for a second day of gains in early trading, only surpassed by the yen, which was boosted by demand for haven assets. The pound slipped while Brexit tensions kept demand for pound puts strong across tenors, though BOE policy maker Ian McCafferty’s stance that officials shouldn’t wait any longer to increase interest rates eases pressure on the medium term. The kiwi led declines among Group- of-10 peers, dropping to its lowest since November and also dragging down the Aussie, before the RBNZ’s interest-rate decision on Thursday,
Continued mixed signals on global trade have complicated the investment picture, after President Donald Trump signaled he may take a less confrontational path toward curbing Chinese investments, only for his trade representative Robert Lighthizer to once again pour fuel on the showdown with countries including the EU, blasting the various retaliatory tariffs the U.S.’ trading partners have advanced in reaction to the Trump administration’s trade policies, calling the tariffs proof of the “complete hypocrisy” of the global trade system.
“[T]he European Union has concocted a groundless legal theory to justify immediate tariffs on U.S. exports. Other WTO Members, including China, have adopted a similar approach. These retaliatory tariffs underscore the complete hypocrisy that governs so much of the global trading system,” Lighthizer said in a statement Tuesday evening.
Also overnight, the US House voted 400 vs. 2 in favor of passing bill to tighten oversight of US foreign investment due to concern over China. In related news, US President Trump suggested he would back down from his demand for new tight restrictions on Chinese investments into technology and instead rely on other channels already in place such as CFIUS.
And speaking of trade, the Fed’s Bostic who is a FOMC voter this year noted overnight that “the more (trade tensions) progresses in this more contentious way, the more it pulls me to feel like the risks are on the downside for the broader economy”. He added that “there is some likelihood I’ll be moving away from four (rate hikes) as a real possibility”. Elsewhere, the Fed’s Kaplan spoke on the yield curve as being a signal of recession. He said based on past experience “I’m loathe to say this time will be different. It’s significant to watch the yield curve”. For now, he noted the flattening yield curve is telling you that the short term US growth is strong while medium and long term growth is “sluggish”. Meanwhile the Fed’s Barkin noted the “aggregate effects of corporate tax cuts are especially hard to predict…and given these many uncertainties, the FOMC has been cautious when assessing the future impacts of the recent tax legislation”. That said, he added it’s reasonable to expect “at least a moderate boost” for the economy from recent tax cuts.
In commodities, oil was up ~0.8% on the day and around the month-long high levels seen post Tuesday afternoon’s rally after reports the US was pressing its allies to halt all oil imports from the nation by November. Further, API inventory report showed the largest drawdown to crude stockpiles since September 2016, although the impact was relatively contained on slight fatigue considering WTI had already rallied over 3% prior to the release. In the metals scope, gold is uneventful at its lowest levels since December 2017 as the overnight weakening has abated slightly. Copper has hit 12 week lows as trade concerns have hit the building material at USD 6,679/tonne, alongside ongoing supply concerns from Chile.
Expected data include MBA mortgage applications, wholesale inventories, and durable-goods orders. Canopy Growth, General Mills, Paychex, Bed Bath & Beyond and Rite Aid are among companies reporting earnings
Market Snapshot
- S&P 500 futures down 0.6% to 2,713.00
- STOXX Europe 600 down 0.8% to 374.43
- German 10Y yield fell 2.9 bps to 0.311%
- Euro down 0.2% to $1.1631
- Italian 10Y yield rose 6.2 bps to 2.619%
- Spanish 10Y yield fell 2.9 bps to 1.364%
- Brent futures up 0.1% to $76.41/bbl
- Gold spot down 0.2% to $1,256.19
- U.S. Dollar Index up 0.1% to 94.78
- MXAP down 0.7% to 165.81
- MXAPJ down 1.1% to 535.03
- Nikkei down 0.3% to 22,271.77
- Topix up 0.02% to 1,731.45
- Hang Seng Index down 1.8% to 28,356.26
- Shanghai Composite down 1.1% to 2,813.18
- Sensex down 0.7% to 35,244.36
- Australia S&P/ASX 200 down 0.03% to 6,195.86
- Kospi down 0.4% to 2,342.03
Top Overnight News from Bloomberg
- U.S. President Donald Trump signaled he may take a less confrontational path toward curbing Chinese investments in sensitive American technologies, potentially relying on a U.S. committee that scrutinizes foreign acquisitions for national security risks
- An accelerating slump in China’s yuan is stoking fear that policy makers are less willing to temper the currency’s decline as the economy slows and a trade battle with the U.S. worsens
- The Canadian government is preparing new measures to prevent a potential flood of steel imports from global producers seeking to avoid U.S. tariffs, according to people familiar with the plans
- S&P Global Ratings affirmed the U.S.’s sovereign credit score at AA+, the assessor’s second- highest grade, citing the country’s “diversified and resilient economy” while noting the impact of ongoing political wrangling on public finances
- Oil held gains above $70 a barrel as the U.S. pressed allies to end Iranian imports by a November deadline and after industry data showed American inventories declined
- U.K. house-price growth slowed in June, dropping to its weakest pace in five years, according to Nationwide Building Society.
- Europe’s junk-debt investors are gaining ground after years of borrowers chipping away at the safeguards enshrined in the small print of bond documents
- Bank of Japan’s Deputy Governor Masayoshi Amamiya sees the central bank as “very far off from the exit”, underpinning monetary policy divergence that could keep the pair in bullish trajectory as long as trade concerns ease
Asian equity markets were negative with the region cautious as trade concerns lingered, albeit with a slight moderation after US President Trump suggested he would ease off on demands for new tight restrictions regarding Chinese investments and instead go through channels already in place such as the Committee on Foreign Investment in the United States. ASX 200 (flat) was choppy as the initial gains led by the energy sector were briefly eclipsed by weakness in telecoms and financials, while Nikkei 225 (-0.3%) exporter names were dampened by currency strength. Elsewhere, Hang Seng (-1.8%) and Shanghai Comp. (-1.1%) were also subdued amid the current backdrop of trade concerns and after a net liquidity drain by the PBoC which saw the mainland index extend on its descent through bear market territory. Finally, 10yr JGBs were relatively flat with only minimal support seen from the risk-averse tone in Japan and the BoJ’s presence for JPY 810bln of JGBs across the curve. Chinese President Xi is said to have warned leaders to be prepared in the event of a full-scale trade war with US during a 2-day meeting, according to a note from SGH Macro Advisors that also suggested the PBoC will refrain from buying US Treasuries and seek to lower them.
Top Asian News
- BreadTalk Soars to Record High as It Presents at Citi Roadshow
- Bank Rakyat Is Said to Revive Sale of Stake in Life Insurer
- China H Shares, Once World’s Hottest, Tumble Into Bear Market
- Yuan’s Rapid Selloff Puts China’s Market-Anchor Role in Danger
European equity bourses were initially negative across the board as trade concerns hit European markets following US congressional approval of increased US-Chinese investment scrutinization. There was a turnaround, however, into positive territory with the DAX currently the outperforming bourse, after hitting 2 month lows, on the back of US Defence Secretary Mattis striking a positive tone after talks with Chinese President Xi. Most bourses are still below their 100DMA, however, and have not been able to eliminate the losses seen throughout the week, with the DAX at 12,210 vs. its 50DMA of 12,761, the FTSE 100 at 7,534 vs its 50DMA of 7,616 and the CAC at 5,268 vs. its 50DMA of 5,473. The financial sector (-0.4%) is currently underperforming as falling treasury yields are weighing on the sector.
Top European News
- European Banks Decline as Deutsche Bank Hits Fresh Low
- Banks in Denmark Are Facing a Capital Hit as Early as This Year
- Norway Sells Out of SAS in Move That May Ease Consolidation
- Bulgaria Blames ‘Constantly Changing’ Demands for Euro Delay
In FX, it was a cagey start to European trade in FX markets with most majors sticking to their recent ranges. Subsequently, the USD trades relatively unchanged thus far with the DXY sitting just above 94.50 as markets pause for breath after US President Trump took a slightly more conciliatory tone yesterday by suggesting he would ease off on demands for new tight restrictions regarding Chinese investments. That said, despite these comments from Trump, they are unlikely to signal a U-turn in US trade policy and the threat of an escalation in trade tensions remains at the forefront of investor sentiment. From a Chinese perspective, preparations are said to be made by leaders of the communist regime to help protect the nation’s economy in the event of a trade war with the US. It’s worth noting that the PBoC set the CNY mid-point fix at its softest level since 25th December last year with USD/CNY back below 6.6000 as the recent move to the downside continues to gather momentum; scepticism remains as to whether this is actually a targeted policy measure by China and how fair they would be willing to tolerate the move given the risk of capital outflows. Elsewhere, not too much to report for EUR as focus on the most recent ECB policy announcements and communications somewhat abates Subsequently, in the absence of any major USD traction at this stage of the session, option activity could dictate performance for the pair with 1.6bln in expiries at 1.1650, 3.3bln at 1.1625 and 2.4bln at 1.1600.
In commodities, oil is up ~0.8% on the day and around the month-long high levels seen post Tuesday afternoon’s rally after reports the US was pressing its allies to halt all oil imports from the nation by November. Further, API inventory report showed the largest drawdown to crude stockpiles since September 2016, although the impact was relatively contained on slight fatigue considering WTI had already rallied over 3% prior to the release. In the metals scope, gold is uneventful at its lowest levels since December 2017 as the overnight weakening has abated slightly. Copper has hit 12 week lows as trade concerns have hit the building material at USD 6,679/tonne, alongside ongoing supply concerns from Chile.
Looking at the day ahead, the main focus will likely be on the preliminary May durable and capital goods orders data, while the May advance goods trade balance is also due along with May pending home sales. Central bank speak continues with the BoE’s Carney speaking in the morning about the BoE’s Financial Stability Report, followed later by the ECB’s Praet and Fed’s Rosengren.
US Event Calendar
- 7am: MBA Mortgage Applications, prior 5.1%
- 8:30am: Advance Goods Trade Balance, est. $69.0b deficit, prior $68.2b deficit, revised $67.3b deficit
- 8:30am: Wholesale Inventories MoM, est. 0.2%, prior 0.1%; Retail Inventories MoM, prior 0.6%, revised 0.5%
- 8:30am: Durable Goods Orders, est. -1.0%, prior -1.6%; Durables Ex Transportation, est. 0.5%, prior 0.9%
- 8:30am: Cap Goods Orders Nondef Ex Air, est. 0.45%, prior 1.0%; Cap Goods Ship Nondef Ex Air, est. 0.3%, prior 0.9%
- 10am: Pending Home Sales MoM, est. 0.5%, prior -1.3%; Pending Home Sales NSA YoY, prior 0.4%
DB’s Jim Reid concludes the overnight wrap
Unlike London’s rail network during a heatwave, the fallout from the weekend trade related headlines proved to be fairly short-lived in the end with the last 24 hours making for a much calmer affair in markets. Last night the S&P 500 closed +0.22% with energy names leading the way after WTI Oil surged +3.60% while the Dow (+0.12%) rose for only the second time in the last eleven sessions. The Nasdaq closed +0.39% while prior to that in Europe the Stoxx 600 closed out an uneventful session +0.02% with volumes well below average. The VIX edged back below 16 and is now back to its YTD average again more or less while moves for bond markets were similarly muted outside of the periphery with Bunds just 1.3bp higher while Treasuries nudged down -0.3bps. The US dollar index (+0.41%) was stronger also.
As for the newsflow, well Peter Navarro’s soothing words on Monday night appeared to do its job although to be honest yesterday felt more like a no news is good news sort of day. President Trump did tweet his disdain at Harley Davidson’s pledge to move production out of the US, saying that “it will be the beginning of the end” and that “they will be taxed like never before”. Harley Davidson’s shares fell as much as -2.70% before ending -0.60% lower. Trump also tweeted that his administration is finishing its study of tariffs on cars from the EU, while House Speaker Paul Ryan also weighed in with some comments of his own yesterday afternoon. Speaking to reporters in response to the Harley-Davidson situation, Ryan said that “there are better tools than tariff increases” and that “tariffs aren’t the right way to go”. All in all then, nothing that really got the market too excited. Later in the session though Trump then spoke at the White House and indicated that he might be favouring Treasury Secretary Steven Mnuchin’s softer approach towards protecting US intellectual property from China, specifically by using the Committee on Foreign Investments in the US (CFIUS).
Despite that, this morning, after China’s Shanghai Comp won the race to be the first major equity index to hit correction territory this year, the index is extending on losses (-0.45%) while the rest of Asia is also trading modestly lower with the Nikkei (-0.27%), Kospi (-0.13%) and Hang Seng (-0.58%) all down. In the US, rating agency S&P has affirmed the US’s sovereign credit rating of AA+ with stable outlook and noted “we expect that debates over funding the government and raising the debt ceiling will continue to be resolved at the last minute”. Meanwhile Reuters cited unnamed sources saying that Canada may be preparing higher tariffs on steel to prevent a flood of steel imports as producers divert their output away from the US. Back in Asia, BOJ’s Deputy Governor Amamiya sees the BOJ as “very far off from exit” in terms of stimulus policies, in part as he does not think “the side effects exceed the benefits at this point”, although “the effects are cumulative and we’re watching this carefully”. As for data this morning, China’s May industrial profits moderated 0.8ppt mom to a still solid level of 21.1% yoy.
Moving on. There was a bit of macro data out yesterday in the US with the June consumer confidence print coming in at a weaker than expected 126.4 (vs. 128.0 expected). It also fell 2.4pts from May although the absolute level is still indicative of an upbeat US consumer (130.0 is the post-recession high made back in February). In the details the present conditions gauge was actually more or less unchanged at 161.1 although the expectations gauge did slip 4pts to 103.2. Meanwhile the Richmond Fed manufacturing index rose 4pts to 20 (vs. 15 expected) with new orders rising to the highest since February and prices paid the highest since 2012.
Meanwhile, Sterling was kept busy yesterday with a couple of BoE speakers doing the rounds in the morning. Incoming MPC member Jonathan Haskel said that “given current conditions and economic data, I agree with the broad direction of travel” but also that “the first risk involved in raising interest rates would be if this is done too quickly, disturbing investment and borrowing plans by more than would have been expected”. Haskel’s testimony leant slightly dovish at the margin which was in contrast to outgoing MPC member and well-known hawk Ian McCafferty who said that the BOE “should not dally” in raising rates.
Unsurprisingly there was greater weight placed on Haskel’s comments with Sterling falling as much as -0.55%, before paring some of that move into the close to finish -0.42%. Gilts were also the relative outperformer yesterday in bond markets (2y closing +0.4bps higher and 10y +1.0bps higher) while the probability of a hike at the August meeting continues to hover just north of a coin flip (currently 58%).
Over in the US, the Fed’s Bostic who is a FOMC voter this year noted “the more (trade tensions) progresses in this more contentious way, the more it pulls me to feel like the risks are on the downside for the broader economy”. He added that “there is some likelihood I’ll be moving away from four (rate hikes) as a real possibility”. Elsewhere, the Fed’s Kaplan spoke on the yield curve as being a signal of recession. He said based on past experience “I’m loathe to say this time will be different. It’s significant to watch the yield curve”. For now, he noted the flattening yield curve is telling you that the short term US growth is strong while medium and long term growth is “sluggish”. Meanwhile the Fed’s Barkin noted the “aggregate effects of corporate tax cuts are especially hard to predict…and given these many uncertainties, the FOMC has been cautious when assessing the future impacts of the recent tax legislation”. That said, he added it’s reasonable to expect “at least a moderate boost” for the economy from recent tax cuts.
Coming back to Oil, the complex rallied around 3% (WTI +3.60%; Brent +2.11%) yesterday on the prospect of reduced oil supply after Bloomberg reported the US has pressed its allies to stop importing oil from Iran by the November 4 deadline as part of its sanction efforts. Notably, an unnamed State Department official said the US administration would not rule out waivers or extensions to the November deadline, but it is not discussing those options either. Meanwhile, the US energy secretary Perry also noted the recent OPEC plans for higher crude output “may be a little short” of what’s required to prevent an oil price spike.
As for other news, there was some positive headlines in Germany yesterday with two CSU leaders (Seehofer and Dobrindt) stressing that they do not want to break up the coalition. Merkel also added that the CDU sees scope for broad agreement with the CSU on migration however she also added that it’s unlikely that this week’s EU summit will make for an overall deal on all aspects of migrant policy. So expect this to drag on a little longer. Elsewhere, it was interesting to note a Bloomberg story yesterday suggesting that Special Counsel Robert Mueller is intending to accelerate his investigation into the Russia-US election probe. The story suggested that Mueller and his team have a view to present conclusions by Autumn, conveniently timed with the US mid-terms.
Before we wrap up, a quick mention that yesterday our House View team published a note focusing on the latest trade war developments. The report has a special focus on (1) Trade tensions – different measures, potential macro impact and the scope for policy response in the US and China, and (2) Policy divergence between the Fed and ECB. It also covers the upcoming EU council summit later this week. The document as usual also summarises our economists’ macro and monetary policy outlook and forecasts, as well as the key strategy views across rates, FX and Credit. You can find a link to the report here.
Looking at the day ahead, it looks set to be a relatively quiet session in Europe with the only data due being June consumer confidence data in France and May M3 money supply data for the Euro area are due. In the US the main focus will likely be on the preliminary May durable and capital goods orders data, while the May advance goods trade balance is also due along with May pending home sales. Central bank speak continues with the BoE’s Carney speaking in the morning about the BoE’s Financial Stability Report, followed later by the ECB’s Praet and Fed’s Rosengren.
3. ASIAN AFFAIRS
i)WEDNESDAY MORNING/TUESDAY NIGHT: Shanghai closed DOWN 31.33 POINTS OR 1.10% /Hang Sang CLOSED DOWN 525.14 POINTS OR 1.82% / The Nikkei closed DOWN 70.23 POINTS OR 0.31% /Australia’s all ordinaires CLOSED DOWN 0.03% /Chinese yuan (ONSHORE) closed DOWN at 6.6075 AS POBC EXERCISES A HUGE DEVALUATION IN THE LAST FEW DAYS/Oil UP to 71.06 dollars per barrel for WTI and 76.89 for Brent. Stocks in Europe OPENED IN THE GREEN EXCEPT SPAIN//. ONSHORE YUAN CLOSED DOWN AT 6.6075 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.5990 :HUGE DEVALUATION/PAST FEW DAYS//ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING MUCH WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR IS BEGINNING/
3 a NORTH KOREA/USA
North Korea/South Korea/usa
3 b JAPAN AFFAIRS
c) REPORT ON CHINA/HONG KONG
Last night, the yuan tumbles to a 6 month low at 6.61 to th dollar. News out of China suggests that they will reduce their purchases of USA treasuries something that the uSA desperately needs
(courtesy zerohedge)
4. EUROPEAN AFFAIRS
Germany/Deutsche Bank
No reason given but Deutsche bank[‘s stock fell below 9 euros. Deutsche bank is the world’s largest derivative player and owner of one of the largest portfolio of junk bonds. What is really scaring the market is a BREXIT as huge amounts of underwriting have been done in England with various counterparties. The big question: what happens when Great Britain leaves?
(courtesy zerohedge)
6 .GLOBAL ISSUES
Mexico
A town in rural Mexico Ocampo has seen its entire police force arrested on suspicion of murder after a mayoral candidate for the town was assassinated
(courtesy zerohedge)
8. EMERGING MARKET
Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings WEDNESDAY morning 7:00 am
Euro/USA 1.1612 DOWN .0037/ 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 IN THE GREEN EXCEPT SPAIN /
USA/JAPAN YEN 109.98 DOWN 0.145 (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 1.3173 DOWN 0.0047 (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED
USA/CAN 1.3316 UP .0013 (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 TUESDAY morning in Europe, the Euro FELL by 37 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1612; / Last night Shanghai compositeCLOSED DOWN 31.33 POINTS OR 1.10% /Hang Sang CLOSED DOWN 525.14 POINTS OR 1.82% /AUSTRALIA CLOSED DOWN 0.03% / EUROPEAN BOURSES IN THE GREEN EXCEPT SPAIN /
The NIKKEI: this WEDNESDAY morning CLOSED DOWN 70.23 POINTS OR 0.31%
Trading from Europe and Asia
1/EUROPE OPENED IN THE GREEN EXCEPT SPAIN
2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 525.14 POINTS OR 1.82% / SHANGHAI CLOSED DOWN 31.33 POINTS OR 1.10%
Australia BOURSE CLOSED DOWN 0.03%
Nikkei (Japan) CLOSED DOWN 70.23 POINTS OR 0.31%
INDIA’S SENSEX IN THE RED
Gold very early morning trading: 1256.50
silver:$16.17
Early WEDNESDAY morning USA 10 year bond yield: 2.85% !!! DOWN 3 IN POINTS from TUESDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/
The 30 yr bond yield 3.00 DOWN 3 IN BASIS POINTS from TUESDAY night. (POLICY FED ERROR)/
USA dollar index early WEDNESDAY morning: 94.89 UP 21 CENT(S) from TUESDAY’s close.
This ends early morning numbers WEDNESDAY MORNING
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And now your closing WEDNESDAY NUMBERS \1: 00 PM
Portuguese 10 year bond yield: 1.848% DOWN 4 in basis point(s) yield from TUESDAY/
JAPANESE BOND YIELD: +.039% UP 1/10 in basis points yield from TUESDAY/JAPAN losing control of its yield curve/
SPANISH 10 YR BOND YIELD: 1.355% DOWN 4 IN basis point yield from TUESDAY/
ITALIAN 10 YR BOND YIELD: 2.8090 DOWN 9 POINTS in basis point yield from TUESDAY/
the Italian 10 yr bond yield is trading 145 points HIGHER than Spain.
GERMAN 10 YR BOND YIELD: FALLS TO +.321% IN BASIS POINTS ON THE DAY
END
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IMPORTANT CURRENCY CLOSES FOR WEDNESDAY
Closing currency crosses for WEDNESDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/1:00 PM
Euro/USA 1.1584 DOWN .0066(Euro DOWN 66 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/
USA/Japan: 110,43 UP 0.260 Yen DOWN 26 basis points/
Great Britain/USA 1.3143 DOWN .0077( POUND DOWN 77 BASIS POINTS)
USA/Canada 1.32308 UP .0007 Canadian dollar DOWN 7 Basis points AS OIL ROSE TO $72.79
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This afternoon, the Euro was DOWN 66 to trade at 1.1584
The Yen FELL to 110.39 for a LOSS of 26 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 LOST 77 basis points, trading at 1.3143/
The Canadian dollar LOST 7 basis points to 1.3308/ WITH WTI OIL RISING TO : $72.79
The USA/Yuan closed AT 6.6083
the 10 yr Japanese bond yield closed at +.03900% UP 1/10 IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield DOWN 3 IN basis points from TUESDAY at 2.845 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.987 DOWN 4 in basis points on the day /
THE RISE IN BOTH THE 10 YR AND THE 30 YR ARE VERY PROBLEMATIC FOR VALUATIONS
Your closing USA dollar index, 95.13 UP 46 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 WEDNESDAY: 1:00 PM PM
London: CLOSED UP 83.77 POINTS OR 0.37%
German Dax :CLOSED UP 114.27 OR 0.93%
Paris Cac CLOSED UP 45.91 POINTS OR 0.87%
Spain IBEX CLOSED UP 21,20 POINTS OR 0.22%
Italian MIB: CLOSED UP 138.64 POINTS OR 0.65%
The Dow closed DOWN 165.52 POINTS OR 0.68%
NASDAQ closed DOWN 116.54 points or 1.54%4.00 PM EST
WTI Oil price; 72.79 1:00 pm;
Brent Oil: 77.98 1:00 EST
USA /RUSSIAN ROUBLE CROSS: 63130 UP 9/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 9 BASIS PTS)
TODAY THE GERMAN YIELD FALLS TO +.321% 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, 4:00 pm/and 10 year USA interest rate:
WTI CRUDE OIL PRICE 4:30 PM:$72.39
BRENT: $77.36
USA 10 YR BOND YIELD: 2.83% the dropping yields signify markets are in turmoil
USA 30 YR BOND YIELD: 2.97%/
EURO/USA DOLLAR CROSS: 1.1557 DOWN .0093 ( DOWN 93 BASIS POINTS)
USA/JAPANESE YEN:110.28 UP 0.156 (YEN DOWN 16 BASIS POINTS/ .
USA DOLLAR INDEX: 95.31 UP 64 cent(s)/
The British pound at 5 pm: Great Britain Pound/USA: 1.3117 DOWN 0.0104 (FROM LASTDAY NIGHT DOWN 104 POINTS)
Canadian dollar: 1.3345 DOWN 43 BASIS pts
German 10 yr bond yield at 5 pm: +,340%
VOLATILITY INDEX: 17.91 CLOSED UP 1.99
LIBOR 3 MONTH DURATION: 2.335% .
And now your more important USA stories which will influence the price of gold/silver
TRADING IN GRAPH FORM FOR THE DAY
Bank Bloodbath Batters Stocks Below Key
Support As Yield Curve Crashes
Yeah that happened…
China was ugly overnight (after The National Team tried to save things on Tuesday)…
European stocks rebounded (along with US stocks early) on the heels of soothing White House comments – but remember they closed before the collapse in US had got going…
But that dead-cat-bounce died again as Larry Kudlow assured investors that Trump was not backing away from China at all… The Dow ended down ove 450 points from its highs of the day…
Small Caps are clinging to their June gains still…
This is now the 3rd day in a row the The Dow has closed below its 200DMA – something that hasn’t happened since March 2016
Banks bloodbath’d
Remember the ‘fortress balance sheet’ banks – “no brainers” in a rising rate, lower regulation environment? Yeah how’s that working out for you? S&P Financials index is down 13 days in a row – a record losing streak – and has seen 10 days in a row of fund outflows (also a record).
“What we see here is the market taking a glass-half-empty type of view of potential risks,” Sandler O’Neill & Partners analyst Jeff Harte said on Bloomberg TV. “The really big investing-centric banks have taken it on the chin even more because I think people are rightly concerned about trade wars. They’re truly international companies so the extent that trade wars were to break out, it would be worse news for them.”
And while US financials were lower, the collapse of Deutsche Bank once again today, sent GSIBs (Global Systemically Important Banks) down to 14-month lows…down 22% from the highs.
Time for US Stocks to catch down…
VIX topped 18…
Emerging Markets were massacred today after a few days of respite. The surge in the dollar crushed EM stocks (blue) which are catching down to the early warning signals from EM FX and EM Debt…
Treasury yields tumbled across the curve with the long-end outperforming…
30Y dropped back below 3.00%…
And the yield curve flattened to a new cycle low…collapsing since The Fed hiked rates
The Dollar Index surged again today – the biggest 2-day spike in over 2 months…
Yuan is in freefall… smashing above 6.62/USD today and down over 6% in the last few weeks…
Makes you wonder…this 10-day losing streak is the longest ever
And the inversion of the Yuan vol term structure is eerily reminiscent of the collapse in February..
Just when you thought the worst was over for Emerging Market FX… it collapses…
Dollar strength weighed broadly on commodities with silver underperforming but WTI exploded higher on the back of solid inventory data…
WTI tagged $73 and last month’s highs and then faded..
Crude is now at its most expensive in terms of silver since Nov 2014…
Gold/Silver surged…
Finally we noted that as the dollar spiked, so did WTI – competing against each other to see who break the most correlation algos…
WEDNESDAY trading
WEDNESDAY morning trading
Crude jumps to 72 dollars on fears that Trump may be winning in his battle with Iran
(courtesy zerohedge)
Energy Stocks Lead The Market Ramp As WTI
Nears
$72
US Energy stocks are surging this morning on the heels of the continued ramp in WTI – now nearing $72 – as a tougher US stance on Iran sanctions (and a massive crude draw reported by API overnight) is trumping Saudi production ramp headlines.
“Saudi Arabia faces the daunting, if not impossible, task of managing the oil market; prices are going to stay elevated,” said Victor Shum, a vice president at consultants IHS Energy. “The uncertainty over Iranian crude supply is going to cast a shadow over the oil market. The cut in supply may be even bigger than thought, depending on how successful the U.S. is in getting countries not to buy Iranian oil.”
XLE is on track for the best quarter since 2011…and broke above its 50DMA today…
However, while energy stocks are ramping today, they don’t seem convinced that crude’s gains will hold…
end
LATE MORNING
An absolute joke: Kudlow comes on the air and states that Trump is not retreating on China. Up goes the dollar and down the markets
(courtesy zerohedge)
Stocks Drop, Dollar Spikes After Kudlow Says Trump “Not Retreating On China”
The Trump administration wants its trade war cake and to eat all time highs in the S&P too.
Earlier today, the S&P spiked after the Trump administration appeared to relented, offering Beijing an “olive branch” by agreeing not to use new “harsh” methods to halt China’s investments. The trade off, of course, was that Trump was seen as “retreating” to China’s position and, or leverage – hardly an enjoyable alternative for the president.
Which perhaps explains why moments later, Trump’s chief economic advisor hit the wires, with a reminder that contrary to the market reaction, Trump was not retreating on China.
- KUDLOW SAYS TRUMP NOT RETREATING ON CHINA
- KUDLOW SAYS U.S. ECONOMY GROWING, WHILE CHINA’S NOT DOING WELL
The immediate reaction was a spike in the dollar which took it to fresh intraday highs…
While the stock rally promptly fizzled, and after the Dow Jones rose as much as 250 earlier in the day, it has now cut roughly half of those gains, as the market scramble to figure out just what Trump’s real position is, and how much the market really has to drop for Trump to relent (incidentally, a topic discussed in “We Now Know What The “Trump Tariff Put” Is”).
END
Afternoon: Dow gives up all of its morning gains and breaks below critical support
(courtesy zerohedge)_
Dow Breaks Below Critical Support As Stocks
Give Up Day’s Gains,
Small Caps are leading the day’s losses but since Kudlow admitted the “no retreat, no surrender” policy on China, markets have gone south, the yield curve has flattened… and the dollar AND oil have exploded higher??
The Dow is back below its 200-day moving average…
VIX tagged 18.00…
And the yield curve is collapsing to fresh decade lows…
The Dollar is spiking…
Meanwhile, WTI topped $73…(up from $63.42 a week ago)
Market data
Seems that the USA economy has turned on a dime: today core durable goods slump with the main culprit capital spending
(courtesy zerohedge)
Core Durable Goods Slump In May As Capital
Spending Proxy Disappoints
For the first time since June 2016, Durable Goods Orders fell in May for the second month in a row…
Core Durable Goods Orders tumbled after surging for 3 straight months…
And everyone’s favorite proxy for Capital Spending (Capital Goods New Orders Non-defense, Ex-Aircraft & Parts) fell 0.2% MoM (against expectations of a 0.5% MoM gain) – not a good sign for the tax cut plan.
And all of this happened with a 21.1% surge MoM in Defense aircraft orders (and 7.0% plunge in non-defense aircraft orders)…
Finally, we note that it appears to ‘different this time’ as the stock market is perfectly willing to ramp higher and higher despite being completely decoupled from the underlying economy…
Probably nothing.
end
Another indicator that the economy has stalled: Pending home sales slumped again
(courtesy zerohedge)
Pending Home Sales Slump As NAR Warns “Activity Has Essentially Stalled”
New Home Sales rose in May, Existing Home Sales dropped in May, and today we find out that Pending Home Sales also tumbled in May… so that’s 2 down, 1 up – not good (especially as mortgage apps are tumbling in June).
This is the second monthly decline in a row, but Pending home sales are down 2.2% YoY – the 5th straight month of annual sales declines.
Home sales fell for the year in all regions YoY, but the decline in the last month was concentrated in the South, while the other three regions reported MoM increases.
“Realtors in most of the country continue to describe their markets as highly competitive and fast moving, but without enough new and existing inventory for sale, activity has essentially stalled,” Lawrence Yun, NAR’s chief economist, said in a statement.
He now forecasts 2018 existing-home sales of 5.49 million, which would mark a 0.4 percent drop from 2017. Previously he had projected 5.54 million, a 0.5 percent increase.
As a reminder, economists consider pending sales a leading indicator because they track contract signings. Purchases of existing homes are tabulated when a deal closes, typically a month or two later
Finally, we note that homebuilder stocks continue to trend lower with disappointing US housing data…
New Jersey is on the brink of a shutdown as they still have not passed a budget. The governors party wants to raise corporate income tax to the highest level in the country. New Jersey is second to Illinois in the basket case category
(courtesy zerohedge)
New Jersey Governor Offers “Compromise” Budget As State Teeters On The Brink Of Shutdown
In his first budget showdown with intransigent lawmakers from his own party, New Jersey Governor (and Goldman Sachs alum) Phil Murphy has made a major concession on his budget plan in a last-minute attempt to work out a compromise that would avert a shutdown of the state government on Saturday.
Phil Murphy
In a letter circulated to lawmakers, Murphy said that while he’s unwilling to accept the legislature’s budget – a budget that would raise the state’s corporate income tax to the highest level in the country – he’d be willing to work out a compromise plan that included a smaller corporate tax hike and also eliminated a budget shortfall that would’ve left the state with a $100 million deficit and no emergency reserves, according to NJ.com.
“I remain … unable to certify that the revenues contained in this budget are sufficient to fund the programs we all support. Failure to provide sufficient funding places all of these programs at risk,” Murphy wrote.
“It is not too late for us to bridge this shortfall,” he continued.
Murphy offered a more modest increase in the Corporation Business Tax, a smaller increase on taxes on personal income over $1 million and a two-year phase-in of a sales tax hike. Democrats had reportedly discussed similar concessions last week, but those talks ultimately broke down. But despite the opposition, Murphy insists that his new “merged” bill represents a “significant compromise” from his initial plan, which would’ve restored the sales tax from 6.625% to 7% and would’ve raised the 8.97% marginal tax rate on gross income over $1 million to 10.75%, and remains the best path forward for the state.
Of course, passing a fiscally responsible budget is more important than ever before for New Jersey, which was forced to “immediately halt state spending and hiring” earlier this month in a desperate attempt to close out the fiscal year with the state’s general fund in the green, as the state’s reserve funds have dwindled.
Meanwhile, the proposal passed by Senate President Stephen Sweeney (who lost out to Murphy in the gubernatorial primary) and Assembly Speaker Craig Coughlin would create two new tiers for businesses, levying 11.5% on businesses with net income between $1 million and $25 million while charging 13% on businesses with net income over $25 million.Murphy has insisted that any increase in the business rate must not be large enough to make New Jersey an outlier. Furthermore, any new taxes must be extended for more than two years (the budget passed by the legislature relies mostly on short-term tax hikes). Whether the stalemate ends with a compromise, government shutdown or $855 million in spending cuts should the legislator pass Murphy’s budget still remains to be seen. But after a meeting between the two factions yesterday failed to yield any progress, it’s looking like this budget battle could go down to the wire.
end
the left is going nuts as they surround Trump employees and politicians demanding better immigration policy
(courtesy zerohedge)
Mnuchin: “Unfortunate” Market Got Mixed Messages; CFIUS Won’t Target China Specifically
Confirming that the Trump administration was clearly spooked by the market’s Monday drop, following news that Trump “blinked” on the escalating trade war, and had decided against creating a new regime to review Chinese investment in the US and will instead rely on the existing CFIUS approach to protect US technology, Treasury Secretary Steven Mnuchin told CNBC that it was “unfortunate” the market got mixed messages and that all Trump advisors were unanimous on this decision.
“If there are mixed messages, that’s something that is unfortunate,” Mnuchin told CNBC’s “Squawk Box.” “What happened over the weekend there were leaks saying that president had made a decision had been made. It was completely not true.”
“When the president and I discussed this, he suggested I tweet on behalf of him to clarify that a decision had not been made,” Treasury secretary added. “Those leaks were not helpful to the markets or not helpful to the process.”
Mnuchin blamed White House trade advisor Peter Navarro for sending mixed signals Monday about the Chinese investment restrictions.
* * *
Earlier on Wednesday, the White House announced that it won’t be looking to block companies with 25 percent or more of Chinese ownership from buying certain U.S. tech-related companies. Instead, the government will rely on the newly-strengthened Committee on Foreign Investment in the United States, or CFIUS, to deal with concerns.
In explaining the move, Mnuching told reporters that the move to use CFIUS to protect U.S. technology was “not intended to target China,” and added that CFIUS was able to respond appropriately to different threats on different technologies posed by different entities from different countries.
Mnuchin also said that if Congress fails to pass Firrma, the administration will look at new executive branch tools.
Separately, Trump made the following comment on his pivot: “I urge Congress to send me a strong bill as soon as possible and look forward to implementing it” to protect U.S. security and prosperity, President Trump says about the Foreign Investment Risk Review Modernization Act, known as FIRRMA.
“Upon enactment of FIRRMA legislation, I will direct my Administration to implement it promptly and enforce it rigorously, with a view toward addressing the concerns regarding state-directed investment in critical technologies identified in the Section 301 investigation”
“Should Congress fail to pass strong FIRRMA legislation that better protects the crown jewels of American technology and intellectual property from transfers and acquisitions that threaten our national security – and future economic prosperity- I will direct my Administration to deploy new tools, developed under existing authorities, that will do so globally.”
For now the market is taking the news in stride, seeing it as Trump walking back from “irreversible” escalations, and not only recovered all pre-market losses, but was modestly in the green.
end
As expected, the House rejects the second immigration bill after the hardline measure failed earlier in the week.
(courtesy zerohedge)
Meet Trump’s Next Supreme Court Nominee (According To The Online Bookies)
In the aftermath of Justice Anthony Kennedy’s bombshell announcement that he is retiring from the Supreme Court, attention turns who will replace him. And while Trump has yet to unveil his list of 25 potential replacements, here is the list of the most likely nominees according to online betting marketplace PredictIt, which has the 53-year-old Brett Kavanaugh as a leading frontrunner.
Some background on Kavanaugh:
Brett Michael Kavanaugh (born February 12, 1965) is a United States Circuit Judge of the United States Court of Appeals for the District of Columbia Circuit. He was Staff Secretary in the Executive Office of the President of the United States under President George W. Bush.
Kavanaugh himself was nominated to the D.C. Appeals Court by Bush in 2003. His confirmation hearings were contentious and stalled for three years over charges of partisanship. Kavanaugh was ultimately confirmed in May 2006 after a series of negotiations between Democratic and Republican Senators.
A former Kennedy law clerk with close ties to the retiring justice. Kavanaugh is a longtime Washington insider, having served as a law clerk to Kennedy and then as a key member of independent counsel Kenneth Starr’s team that produced the report that served as the basis for President Bill Clinton’s impeachment. In October, Kavanaugh dissented when his court ruled that an undocumented teen in federal custody should be able to obtain an abortion immediately.
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SWAMP STORIES
The house approves a resolution demanding the DOJ/FBI documents that Rosenstein has restricted the oversight boys from seeing. If Rosenstein does not comply they will initiate impeachment
(courtesy Sara Carter)
House Approves Resolution Demanding DOJ/FBI Docs
The House Judiciary Committee approved for the first time a resolution Tuesday demanding that Deputy Attorney General Rod Rosenstein turn over all requested documents regarding the FBI’s handling of the Russia investigation during the presidential election after seven days or face possible impeachment or contempt.
The decision to move forward with the resolution came after a year of battles with the Justice Department and FBI to turn over requested documents. The committee voted on party lines 15-11 to pass the resolution directing Rosenstein to comply within the next seven days or face the consequences.
Rep. Jim Jordan, R-Ohio, who has been one of the lawmakers at the frontlines of the committee’s investigation, said the resolution is the result of the frustration felt among lawmakers conducting oversight. He noted that it will be up to House Republican leaders to decide whether or not to take it to the full House for a vote.
“If they don’t comply with the resolution they know the remedies the House has, contempt and impeachment,” said Jordan.
“If we don’t get that information entitled to us, everybody knows that we’ll do what we have to do to get it done.”
Jordan and Freedom Caucus Chairman Mark Meadows, R-N.C., were the authors of the resolution. Both members have criticized Rosenstein and the FBI for failing to deliver documents. House Intelligence Committee Chairman Devin Nunes, R-CA, has also been fighting the Justice Department for documents and has threatened as well to hold Rosenstein in contempt or impeachment if they are not produced.
U.S. Rep. Mark Meadows (R-NC)
The resolution does not include a penalty but Jordan noted that the lawmakers are prepared to file impeachment or contempt against Rosenstein. The resolution is expected to sit on the House floor until members return from their break after the next week.
Rosenstein, who is known for his quick temper with lawmakers during negotiations, has stonewalled numerous members of Congress questioning the Special Counsel Robert Mueller’s investigation into alleged collusion between President Trump’s campaign and the Russians.
On Thursday, Rosenstein and FBI Director Christopher Wray are expected to testify before the House Judiciary Committee, where they will be asked questions regarding their failure to comply with the oversight committees.
House Speaker Paul Ryan, R-Wis., said last week they are not taking contempt charges off the table. He told reporters on Tuesday “we do expect full compliance very, very soon, and if we do not get that then we will keep every single option available to us.”
“He’s Out!”: Establishment Democrats Rocked By Joe Crowley Primary Loss To Socialist Millennial
Establishment Democrat Joe Crowley’s nearly two-decade career in Congress came to an end Tuesday night in a shocking primary loss to 28-year-old Democratic Socialist and former Bernie Sanders organizer Alexandria Ocasio-Cortez – a harsh critic of Israel and immigration enforcement.
Crowley – the 56-year-old Chairman of the House Democratic caucus had long been viewed as a potential House Speaker, and has been a staple in New York City politics as chairman of the Queens County Democratic Party.
His loss to insurgent candidate Ocasio-Cortez, his first primary challenge in 14 years, is a major upset to establishment Democrats trying to cobble together a “blue wave” of progressive support to combat Republicans in the upcoming midterms. Instead, it looks like Democrats are as fractured as ever.
(there are eleven more tweets listing Crowley donors, so we’ll stop here)
And speaking of Glenn Greenwald, The Intercept has covered New York’s 14th Congressional District race extensively (see here). Here’s why they thought she might have a chance back in May:
THE SAFE MONEY on a race in a machine-dominated district is to bet on the boss. And, to be sure, Crowley is likely to be the favorite. But Ocasio-Cortez has a few plausible reasons to believe there’s a path to victory:
- She has more than 8,000 individual donors; that’s a pool she’ll continue to grow and can keep tapping into if her campaign gains momentum. It suggests that the 5,000+ signatures she turned in were no fluke.
- Primaries are very low-turnout affairs, meaning the absolute number of votes she needs to win is quite low, in the high-four figures or low-five figures.
- Crowley is the king of Queens, but he represents the Bronx from a distance. If Ocasio-Cortez can organize and run up her numbers in the Bronx, while holding her own in Queens, she can win.
The case against her isn’t based on substance, but on raw politics. Crowley is a very good old-school politician: engaging on the stump, charismatic, and diligent about building relationships. He has close relationships with the bosses of the Bronx machine, which can turn out votes. And, for many Democratic voters, he’s not that bad. –The Intercept
President Trump took the opportunity to throw salt in Crowley’s wounds Tuesday night, tweeting: “Big Trump Hater Congressman Joe Crowley, who many expected was going to take Nancy Pelosi’s place, just LOST his primary election. In other words, he’s out!”
Or, maybe Ocasio-Cortez schooling Crowley over ICE was the nail in the coffin in these politically charged times?
Real Inflation Rate 10% Squeezing Consumers – John Williams
By Greg Hunter On June 27, 2018 In Market Analysis
By Greg Hunter’s USAWatchdog.com
Economist John Williams says if Hillary would have won the 2016 election, we would “most likely be in a full blown depression.” The problems in the economy started long ago no matter who was elected. Williams says, “I would contend we were already in a recession at the end of the Obama Administration. That’s one reason why Donald Trump got elected.”
Williams says another negative for the economy is resistance on both sides of the isle of swamp creatures who do not want to pass legislation so Trump can bring home better jobs. Williams says, “Their motivation is not to provide those jobs.” So, Congress is working against “We the People,” and Williams goes on to say, “Yes . . . Yes, let me put it this way. Mr. Trump was something of an anti-establishment candidate, and the establishment had been in place on both sides of the isle for a long time. . . . Now, you have someone who is going to change the approach, one that is needed to get the system back on stabile footing. As a result, you have extraordinary turmoil in the press and a lot of opposition in Congress on both sides of the isle. He also has some support, and that’s where this next mid-term election is going to be interesting. My bet is the same people that voted for Mr. Trump for President are sensitive to the fact he has run into a lot of trouble here. If he had a slate of Congressional candidates that were looking at the same thing (as Trump), this whole thing might have gotten off to a little faster footing. There is going to be more people running for Congress this time that are aware of what needs to be done. I think you are going to have some surprises that will help the President.”
Williams sees a declining economy and says, “This is what I see happening. As the economy turns down, that’s a negative for the dollar. Most importantly here, if the Fed backs off its tightening and moves back towards quantitative easing, and their minutes allow for it . . . they’re going to do that. Right now, the dollar is being supported by expectations of a higher interest rate. As the fed moves back towards quantitative easing, you are very likely going to see a massive sell-off in the dollar. The massive sell-off in the dollar becomes very inflationary. This is a big problem right now for the Fed.”
Williams says everyone should hold a core position of physical gold and silver because they will work well as financial protection from a dollar sell-off and inflation.
Join Greg Hunter as he goes One-on-One with economist John Williams, founder of ShadowStats.com.
Video Link
https://usawatchdog.com/real-inflation-rate-10- squeezing-consumers-john-williams/
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WE WILL SEE YOU ON THURSDAY NIGHT.
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