Nov 23/GOLD FALLS BY $4.25 DOWN TO $1223.20/SILVER DOWN 25 CENTS TO $14.27/DOW DOWN ANOTHER 178 POINTS/MARGIN DEBT AT THE NEW YORK MARKETS DROPS DRAMATICALLY DUE TO MARGIN CALLS AS LIQUIDITY DRIES UP/IRAN SEIZES A SAUDI FISHING VESSEL IN THE GULF/OIL DROPS TO 50 DOLLARS PER BARREL AS THE GLOBAL ECONOMY SEIZES UP!/

 

 

 

 

GOLD: $1223.20 DOWN  $4.25 (COMEX TO COMEX CLOSINGS)

Silver:   $14.27 DOWN  25 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  1223.30

 

silver: $14.27

 

 

 

 

 

 

 

 

For comex gold and silver:

NOV

 

 

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  NOV CONTRACT: 5 NOTICE(S) FOR 500 OZ

Total number of notices filed so far for NOV:  214  for 21400 OZ  (0.6656 TONNES)

 

 

 

 

 

FOR NOVEMBER

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

26 NOTICE(S) FILED TODAY FOR

130,000 OZ/

Total number of notices filed so far this month: 1485 for 7,425,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE  $4392: down 2

 

Bitcoin: FINAL EVENING TRADE: $4361  down $30.00 

 

end

 

XXXX

 

China is controlling the gold market

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 6983 CONTRACTS FROM 223,049 DOWN TO  216,066  DESPITE WEDNESDAY’S 23 CENT RISE IN SILVER PRICING AT THE COMEX. TODAY WE ARRIVED FURTHER FROM  AUGUST’S  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS.

WE HAVE ALSO WITNESSED A LARGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY(WELL OVER 30 MILLION OZ AT THE COMEX FOR JULY , 6 MILLION OZ FOR AUGUST AND NOW JUST LESS THAN 31 MILLION OZ STANDING IN SEPTEMBER. AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

EFP’S FOR NOV.  1722 EFP’S FOR DECEMBER AND 0 FOR MARCH AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1722 CONTRACTS. WITH THE TRANSFER OF 1722 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 1722 EFP CONTRACTS TRANSLATES INTO 8.610 MILLION OZ  ACCOMPANYING:

1.THE 23 CENT GAIN IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR THE JUNE/2018 COMEX DELIVERY MONTH. (5.420 MILLION OZ);  30.370 MILLION OZ  STANDING FOR DELIVERY IN JULY, FOR AUGUST: 6.065 MILLION OZ AND  39.505 MILLION  OZ STANDING  IN SEPT.  2,520,000 OZ STANDING IN OCTOBER. AND NOW SO FAR A HUGE 7,435,000 OZ STANDING FOR NOVEMBER

 

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF NOV: 40,455 CONTRACTS (FOR 16 TRADING DAYS TOTAL 40,455 CONTRACTS) OR 202.275 MILLION OZ: (AVERAGE PER DAY: 2528 CONTRACTS OR 12.64 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF NOV:  202.275 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 28.85% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:           2,628.35    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

ACCUMULATION FOR JUNE 2018:                                           345.43         MILLION OZ

ACCUMULATION FOR JULY 2018:                                            172.84          MILLION OZ

ACCUMULATION FOR AUGUST 2018:                                      205.23          MILLION OZ.

ACCUMULATION FOR SEPTEMBER 2018:                                 167,05          MILLION OZ

ACCUMULATION FOR OCTOBER 2018:                                     224.875        MILLION OZ

RESULT: WE HAD A HUGE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 6983 DESPITE THE 23 CENT RISE IN SILVER PRICING AT THE COMEX //YESTERDAY AS THE BOYS DID THEIR CUSTOMARY MIGRATION OVER TO  ETFS AT THE START OF AN ACTIVE DELIVERY MONTH. THE CME NOTIFIED US THAT WE HAD A VERY GOOD SIZED EFP ISSUANCE OF 1722 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) .

TODAY WE LOST A GOOD SIZED: 5261 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1722 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 6983 OI COMEX CONTRACTS. AND ALL OF THUS DEMAND HAPPENED WITH A 23 CENT RISE IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.52 WITH RESPECT TO YESTERDAY’S TRADING. YET WE HAD A GIGANTIC AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY IN THE BIG JULY DELIVERY MONTH OF SLIGHTLY OVER 30 MILLION OZ, IN AUGUST ANOTHER BIG 6.065 MILLION OZ IN A NON ACTIVE MONTH  IN SEPTEMBER A FINAL MONSTROUS 39.05 MILLION OZ OF SILVER STANDING FOR DELIVERY, WITH HUGE DELIVERIES OF OVER 2 MILLION OZ IN OCTOBER (A NON DELIVERY MONTH) AND NOW  7.430 MILLION OZ IN NOVEMBER….... NOBODY IS PAYING ATTENTION TO THE HUGE NUMBER OF PHYSICAL OUNCES STANDING FOR SILVER THESE PAST SEVERAL MONTHS.

 

In ounces AT THE COMEX, the OI is still represented by JUST OVER 1 BILLION oz i.e. 1.085 BILLION OZ TO BE EXACT or 151% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 26 NOTICE(S) FOR 130,000 OZ OF SILVER

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 243,411 CONTRACTS ON APRIL 9.2018 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $16.51.  

AND NOW WE RECORD FOR POSTERITY ANOTHER ALL TIME RECORD OPEN INTEREST AT THE COMEX OF 244,196 CONTRACTS ON AUGUST 22/2018 AND AGAIN WHEN THIS RECORD WAS SET, THE PRICE OF SILVER WAS $14.78 AND LOWER IN PRICE THAN PREVIOUS RECORDS.

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  AN INITIAL HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz AND NOW NOV AT 7.435 MILLION OZ.
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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 CONSIDERABLE  SIZED 4681 CONTRACTS DOWN TO 521,795 DESPITE THE  GAIN  IN THE COMEX GOLD PRICE/(A RISE IN PRICE OF $6.70//.WEDNESDAY’S TRADING) AS THESE GUYS JOINED SILVER IN THE ROUTINE MIGRATION OVER TO ETF’S AS WE APPROACH AN ACTIVE DELIVERY MONTH.

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 5812 CONTRACTS:

 

 

NOVEMBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 5812 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 521,259. 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 VERY SMALL SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1131 CONTRACTS:  4681 OI CONTRACTS DECREASED AT THE COMEX AND 5812 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 1131 CONTRACTS OR 113,100 OZ = 3.517 TONNES. AND ALL OF THIS  DEMAND OCCURRED WITH A  RISE IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $6.70.

 

 

 

 

YESTERDAY, WE HAD 8268 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF NOV : 116,259 CONTRACTS OR 11,625,900 OZ OR 361.61 TONNES (16 TRADING DAYS AND THUS AVERAGING: 7266 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 16 TRADING DAY IN  TONNES: 361.61 TONNES

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

THUS EFP TRANSFERS REPRESENTS 361.61/2550 x 100% TONNES =  14.15% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     6,578.42  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                      650.71 TONNES  (21 TRADING DAYS)

ACCUMULATION OF GOLD EFP FOR JULY 2018                       605.5 TONNES     (21 TRADING DAYS)

ACCUMULATION OF GOLD EFP FOR AUG. 2018                      488.54  TONNES  (23 TRADING DAYS)

ACCUMULATION OF GOLD EFP FOR SEPT 2018                       470.64 TONNES   (19 TRADING DAYS)

ACCUMULATION OF GOLD EFP FOR OCT. 2018                        543.92 TONNES  (23 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 4145 DESPITE THE GAIN IN PRICING ($6.70) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5812 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 5812 EFP CONTRACTS ISSUED, WE HAD AN VERY SMALL GAIN OF 1667 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5812 CONTRACTS MOVE TO LONDON AND 4681 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 3.517 TONNES). ..AND ALL OF THIS  DEMAND OCCURRED WITH A GAIN OF $6.70 IN YESTERDAY’S TRADING AT THE COMEX

 

 

we had: 5 notice(s) filed upon for 500 oz of gold at the comex.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD DOWN 4.25 TODAY: / 

 

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/

ANOTHER DEPOSIT OF 2.06 TONNES INTO THE GLD INVENTORY

LOOKS LIKE THE BOYS ARE GETTING NERVOUS AS THEY HAVE TO PUT BACK PAPER GOLD

 

 

 

 

 

 

 

 

 

 

/GLD INVENTORY   762.92 TONNES

Inventory rests tonight: 762.92 tonnes.

TO ALL INVESTORS THINKING OF BUYING GOLD THROUGH THE GLD ROUTE: YOU ARE MAKING A TERRIBLE MISTAKE AS THE CROOKS ARE USING WHATEVER GOLD COMES IN TO ATTACK BY SELLING THAT GOLD.  IT SURE SEEMS TO ME THAT THE GOLD OBLIGATIONS AT THE GLD EXCEED THEIR INVENTORY

SLV/

WITH SILVER DOWN 25 CENTS TODAY

 

 

 

NO CHANGE IN SILVER INVENTORY AT THE SLV

 

 

 

 

 

 

/INVENTORY RESTS AT 325.019 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 HUGE 6983 CONTRACTS from 223,049 DOWN TO 216,066  AND MOVING A LITTLE FURTHER FROM THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..

 

.

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

i) 0 EFP’s for November… and

 

1722 CONTRACTS FOR DECEMBER. 0 CONTRACTS FOR MARCH AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1722 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI LOSS AT THE COMEX OF 6983 CONTRACTS TO THE 1722 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A CONSIDERABLE  NET LOSS  OF 5261 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE  LOSS ON THE TWO EXCHANGES: 26.305 MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 6.065 MILLION OZ FOR AUGUST..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER., AND NOW 7.435 MILLION OZ STANDING IN NOVEMBER.

 

 

RESULT: A HUGE DECREASE IN SILVER OI AT THE COMEX DESPITE THE 23 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING// WEDNESDAY.BUT WE ALSO HAD ANOTHER GOOD SIZED 1722 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR SEPTEMBER, 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

)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 65.55 POINTS OR 2.49% //Hang Sang CLOSED DOWN 91.73POINTS OR 0.35% //The Nikkei closed UP 139.01 OR 0.65%/ Australia’s all ordinaires CLOSED UP 0.40%  /Chinese yuan (ONSHORE) closed UP  at 6.9473 AS POBC RESUMES  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER /Oil DOWN to 52.20 dollars per barrel for WTI and 60.55 for Brent. Stocks in Europe OPENED GREEN//.  ONSHORE YUAN CLOSED DOWN AT 6.9473AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9424: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOW ON   : /ONSHORE YUAN TRADING  WEAKER  AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

i

 

 

 

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

 

 

 

b) REPORT ON JAPAN

 

3 C/  CHINA

Chinese stocks tumble big time as there is a report that Trump as asked the West to boycott Hauwei

( zerohedge)

 

 

4/EUROPEAN AFFAIRS

i)Italy

The genius behind Salvini’s move.  He is trying to get the Italian populace to be against Brussels and it is working. The Euro is the deathbed for Italy..it must return to the Italian lira as quickly as possible.  Brussels does not care one bit about Italy only its on self perservation

( Tom Luongo)

ii)We have been highlighting to you the huge problems inside Italy.  Italy has 224 billion euros worth of bad debt as well as owing a huge percentage of Italian sovereign debt.  Once interest rates soar, this becomes a huge loss to the Italian banks who will be offside on their covenants
(courtesy Kimani/SafeHaven.com_

iii)EUROPE/NISSAN/GHOSN

Ghosn fired!!

(zerohedge)

iii)UK/Spain//Gibraltar/ Brexit

Gibraltar has always been a sore spot for Spain for over 300 years.  Spain wants this peninsula back into Spanish sovereignty.  Spain is now throwing her muscle around threatening to blow up the Brexit trade deal unless Spain and the UK have talks on this issue
( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Russia/Turkey/USA

Seems that the CIA has the smoking gun phone call of MbS giving the order to “silence’ Khashoggi

(courtesy zerohedge)

Iran/Saudi Arabia

This is going to get interesting:  Iran seizes an Saudi fishing boat in the Persian Gulf

( zerohedge)

6. GLOBAL ISSUES

 

7. OIL ISSUES

i)Oil continues to crash as it lowers by 4 dollars a barrel to $50.63.

(courtesy zerohedge)

ii)Oil jumps as Saudi’s plan a “disguised” production cut as they do not want to get on Trump’s nerves

(courtesy zerohedge)

 

8 EMERGING MARKET ISSUES

 

 

 

9. PHYSICAL MARKETS

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

 

 

MARKET TRADING

 

ii)Market data/

 

November PMI data for both Europe and the USA are raising flags about slowing global growth.  Today’s USA data certainly suggests this

(courtesy zerohedge)

 

iii)USA ECONOMIC/GENERAL STORIES

a)It does not look good for Goldman Sachs. It seems that Blankfein met privately with a shady  Malaysian banker named Low who is purported to be in the centre of all 3 mortgage deals  arranged by Goldman Sachs.  The stated purpose for the bond issuance was for infrastructure inside Malaysia.   Instead the money was confiscated by the Prime Minister with the help of some Goldman Sachs operatives

( zerohedge)

b)Stock margin margin debt plunges and it seems that there must have been huge margin calls.
As Wolf Richter explains:  this is getting serious…!!!
( Wolf Richter)

iv)SWAMP STORIES

this will go nowhere, as Goodlatte issues a subpoena to Comey and Lynch to appear before the committee in a closed session. Both Lynch and Comey want an open session so they can state they cannot answer questions due to the stuff being classified…such crooks and why in the 11th hr?

( zerohedge)

 

E)SWAMP STORIES/MAJOR STORIES//THE KING REPORT

Let us head over to the comex:

 

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 4681 CONTRACTS DOWN to an OI level 521,259 DESPITE THE GAIN IN THE PRICE OF GOLD ($6.70 IN WEDNESDAY’S COMEX TRADING). FOR TWO YEARS STRAIGHT WE HAVE NOTICED THAT ONE WEEK PRIOR TO FIRST DAY NOTICE OF AN ACTIVE DELIVERY MONTH THE COMEX OPEN INTEREST CONTRACTS AND EFP’S NOTICES EXPONENTIALLY INCREASE AS WELL AS WE WITNESS THE COMEX OPEN INTEREST COLLAPSE. ONCE WE GET TO FIRST DAY NOTICE, THEN THE OPEN INTEREST RISES AND AGAIN THEY DID NOT DISAPPOINT US.

 

 

WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF NOV..  THE CME REPORTS THAT THE BANKERS ISSUED A  STRONG SIZED COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 5812 EFP CONTRACTS WERE ISSUED:

NOV: 0 EFP’S AND DECEMBER:  5812 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  5812 CONTRACTS.

THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  1,677 TOTAL CONTRACTS IN THAT 5812 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE 4681 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 1,131 contracts OR 113,100 OZ OR 3.517 TONNES.

 

We are now in the non active contract month of November. For the November contract month, we have 9 notices standing so we LOST 3 contracts. We had 3 notices served WEDNESDAY so we gained 0 contracts or an additional NIL oz of gold will stand for gold at the comex and these guys refused to morphed into London based forwards as well as negate receiving a fiat bonus for the trouble.

 

 

 

 

 

The next delivery month after November is the very big December contract month and here the OI FELL by 22,590 contracts  to 232,621 contracts.  January saw a FALL TO 3532 FOR A LOSS OF 1 CONTRACT.  February gained 16,272 contracts to stand at 208,242 contracts.

FOR COMPARISON TO THE 2017 CONTRACT MONTH:

ON NOV 24/2017 WE HAD 164,753 OPEN INTEREST CONTRACTS (WITH 5 DAYS LEFT BEFORE FIRST DAY NOTICE) COMPARED TO THIS YEAR: 232,621.( COMPARED TO 6 DAYS BEFORE FIRST DAY NOTICE)

IT NOW LOOKS LIKE WE ARE GOING TO HAVE A DANDY AMOUNT OF GOLD STANDING FOR DELIVERY IN DECEMBER.

ON FIRST DAY NOTICE DEC 1/2017: 37.035 TONNES STOOD FOR DELIVERY

EVENTUALLY BY DEC 31.2017:  28.592 TONNES STOOD AND THE REST MORPHED INTO LONDON BASED FORWARDS.

AS A REMINDER WE HAVE ONLY 4.000 TONNES OF REGISTERED GOLD READY TO SERVE UPON OUR DEC LONGS.

 

 

 

 

WE HAD 5 NOTICES FILED AT THE COMEX FOR 500 OZ.

 

 

 

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And now for the wild silver comex results.

Total silver OI FELL BY 6983 CONTRACTS FROM 223,174 DOWN TO 216,066 (AND FURTHER FROM NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S GOOD  OI COMEX GAIN  OCCURRED WITH A 23 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF NOVEMBER AND, WE WERE  INFORMED THAT WE HAD A GOOD SIZED 1722 EFP CONTRACTS:  FOR NOVEMBER:  0 CONTRACTS AND FOR …

 

FOR DECEMBER: 1722 CONTRACTS, FOR MARCH 0 CONTRACTS, 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: 1722.  ON A NET BASIS WE LOST 5261 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A  6983 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1722 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET LOSS ON THE TWO EXCHANGES:   5261 CONTRACTS...AND ALL OF THIS  DEMAND OCCURRED WITH A 23 CENT GAIN IN PRICING// WEDNESDAY

 

 

 

 

We are now in the non active delivery month of NOVEMBER and here we now have 28 notices  standing for a loss of 50 contacts.  We had 51 notice served upon yesterday so we gained 1 contract or an additional 5,000 oz will  stand for delivery as these longs refused to  morph into London based forwards as well as not accepting a fiat bonus for their efforts.

 

 

 

 

After November, we have a December contract and here we LOST 11,454 contracts DOWN to 88,535.  January saw a GAIN of 169 contracts up to 1448 contracts.   March, the next big delivery month after December saw a gain of 3860 contracts  up to 103,120

FOR COMPARISON TO THE COMEX 2017 CONTRACT MONTH:

ON NOV 24. 2017 WE HAD STILL  56,169 (6 days before first day notice) OPEN  INTEREST CONTRACTS LEFT TO BE SERVED UPON AND THIS COMPARES TO TODAY: 88,535 CONTRACTS (5 days before first day notice)

IT ALSO LIKES LIKE WE ARE GOING TO HAVE A DANDY AMOUNT OF SILVER STANDING FOR DELIVERY AT THE COMEX.

ON FIRST DAY NOTICE DEC 1.2017 WE HAD A RATHER LARGE: 19.47 MILLION OZ STAND FOR DELIVERY

BY THE END OF DECEMBER:  33.295 MILLION OZ AS QUEUE JUMPING WAS THE NAME OF THE GAME IN SILVER.

.

 

 

 

 

 

 

 

 

We had 26 notice(s) filed for 130,000 OZ for the NOV, 2018 COMEX contract for silver

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 301,924 contracts,

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  287,968  contracts..

 

 

 

 

 

 

 

 

 

 

 

INITIAL standings for  NOV/GOLD

NOV 23-/2018.

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

 

Deposits to the Customer Inventory, in oz  

 

 

nil

 

oz

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
5 notice(s)
 500 OZ
No of oz to be served (notices)
4 contracts
(400 oz)
Total monthly oz gold served (contracts) so far this month
214 notices
21400 OZ
0.6656 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entry:

 

total gold entering dealer:  0 oz

total gold withdrawing from the dealer;  0 oz

 

we had 0 kilobar transaction/
we had 0 withdrawal out of the customer account:
total customer withdrawals:  nil oz
we had 0 customer deposits
total customer deposits nil oz
we had 0  adjustments..

FOR THE NOV 2018 CONTRACT MONTH)

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 5 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.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the NOV/2018. contract month, we take the total number of notices filed so far for the month (214) x 100 oz , to which we add the difference between the open interest for the front month of NOV. (9 contracts) minus the number of notices served upon today (5 x 100 oz per contract) equals 21,800 OZ OR 0.6781 TONNES) the number of ounces standing in this non active month of NOV

 

Thus the INITIAL standings for gold for the NOV/2018 contract month:

No of notices served (209 x 100 oz)  + {9)OI for the front month minus the number of notices served upon today (5 x 100 oz )which equals 21800 oz standing OR 0.6781 TONNES in this NON active delivery month of NOVEMBER.

WE GAINED 0 CONTRACTS OR AN ADDITIONAL NIL OZ WILL STAND AT THE COMEX AS THESE LONGS REFUSED TO MORPH INTO LONDON BASED FORWARDS AS WELL AS RECEIVE A FIAT BONUS. QUEUE JUMPING IN GOLD DID RETURN AS THE DEALERS QUEUE JUMPING OBTAINING GOLD AS THEY TRY AND PUT OUT FIRES ELSEWHERE.

 

 

 

 

 

THERE ARE ONLY 3.995 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 0.6781 TONNES STANDING FOR NOVEMBER  

 

 

 

total registered or dealer gold:  128,451.881 oz or   3.995 tonnes
total registered and eligible (customer) gold;   8,015,760.647 oz 249.32 tonnes
 I BELIEVE THAT THIS IS THE LOWEST REGISTERED GOLD READING IN THE COMEX HISTORY..AS WELL AS THE LONGEST WE HAVE SEEN THE REGISTERED COLUMN AT 5 TONNES OR LESS. WE HAVE NOW BROKEN THE 4 TONNES BARRIER TO READ; 3.995 TONNES OF DEALER (REGISTERED) GOLD.

IN THE LAST 27 MONTHS 108 NET TONNES HAS LEFT THE COMEX.

LADIES AND GENTLEMEN: THERE IS NO GOLD AT THE COMEX..AS THE CROOKS SEEMS TO BE FORCING LONGS TO TAKE DELIVERY OF LONDON FORWARDS AND NOT TAKE POSSESSION OF ANY GOLD AT THE COMEX/

end

And now for silver

AND NOW THE NOV DELIVERY MONTH

NOV INITIAL standings/SILVER

NOV 23, 2018
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
1,194.448.410 oz
jpmorgan

 

 

Deposits to the Dealer Inventory
629,057.760
oz
Deposits to the Customer Inventory
1,203,904.800 oz
hsbc
No of oz served today (contracts)
26
CONTRACT(S)
130,000 OZ)
No of oz to be served (notices)
2 contracts
(10,000 oz)
Total monthly oz silver served (contracts) 1485 contracts

(7,425,000 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 1 inventory movement at the dealer side of things

i) Into the dealer Brinks:  629,057.760 oz

 

total dealer deposits: 627,057.760 oz

total dealer withdrawals: 0 oz

we had 1 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 151.7 million oz of  total silver inventory or 52.09% of all official comex silver. (152.0 million/292 million)

ii)Into HSBC  :  1,203,904.800 OZ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today: 1,203,904.800  oz

we had 1 withdrawal out of the customer account:
i) Out of JPM: 1,194,448.410 oz

 

 

 

 

 

total withdrawals: 1,1194,488.410 oz

 

we had 0 adjustments

 

 

total dealer silver:  80.551 million

total dealer + customer silver:  293.060  million oz

The total number of notices filed today for the NOV 2018. contract month is represented by 26 contract(s) FOR 130,000 oz. To calculate the number of silver ounces that will stand for delivery in NOV., we take the total number of notices filed for the month so far at 1485 x 5,000 oz = 7,425,000 oz to which we add the difference between the open interest for the front month of NOV. (28) and the number of notices served upon today (26 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the NOV/2018 contract month: 1485(notices served so far)x 5000 oz + OI for front month of NOV( 28) -number of notices served upon today (26)x 5000 oz equals 7,435,000 oz of silver standing for the NOV contract month.  This is a gigantic number of oz standing for an off delivery month. Somebody is after a large supply of physical silver. We GAINED 1 contract or an additional 5,000 OZ will  stand at the comex as these longs refused to accept a London based forwards as well as negating the right to receive a fiat bonus. As we explained above somebody was in urgent need of physical silver today.

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 138,472 CONTRACTS  … 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 101,707 CONTRACTS… 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 101,707 CONTRACTS EQUATES to 508 million OZ  72.6% 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 -5.10% (NOV 23/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -2.05% to NAV (NOV 23/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -5.10%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA):

NAV 12.38/TRADING 11.875/DISCOUNT 437

END

And now the Gold inventory at the GLD/

NOV 23/WITH GOLD DOWN $4.25/A HUGE DEPOSIT OF 2.06 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 762.92 TONNES

NOV 21/WITH GOLD UP $6.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 760.86 TONNES

NOV 20/WITH GOLD DOWN $3.95: A BIG CHANGE: A GOOD SIZED DEPOSIT OF 1.18 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 760.86 TONNES

NOV 19/WITH GOLD UP $2.05: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 759.68 TONNES

NOV 16/WITH GOLD UP $8.00: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.48 TONNES/INVENTORY RESTS AT 759.68 TONNES

NOV 15/WITH GOLD UP $5.35/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.16 TONNES

NOV 14/WITH GOLD UP $8.15: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.16 TONNES

NOV 13/WITH GOLD DOWN $1.75: A HUGE DEPOSIT OF 6.77 TONNES AT THE GLD/THAT SHOULD END THE WHACKING OF GOLD FOR NOW AND A SMALL WITHDRAWAL OF 84 TONNES: INVENTORY RESTS AT 761.16 TONNES

NOV 12/WITH GOLD DOWN $4.65: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 755.23

NOV 9/WITH GOLD DOWN $16.80: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 755.23 TONNES

NOV 8/WITH GOLD DOWN $3.30: A WITHDRAWAL OF 1.47 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 755.23 TONNES

NOV 7/WITH GOLD UP $2.60″ NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 756.70 TONNES

NOV 6/WITH GOLD DOWN $5.80 A SMALL WITHDRAWAL OF .58 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 756.70 TONES

NOV 5/WITH GOLD DOWN $1.05 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.77 TONNES OF GOLD FROM THE GLD INVENTORY/INVENTORY RESTS AT 757.29 TONNES

NOV 2/WITH GOLD DOWN $5.05: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.76 TONNES FROM THE GLD INVENTORY//INVENTORY RESTS AT 759.06 TONNES

NOV 1/: 2 TRANSACTIONS:WITH GOLD UP $23.85,A SMALL WITHDRAWAL OF .80 TONNES OF GOLD TO PAY FOR FEES, INSURANCE AND STORAGE: INVENTORY AT THE GLD RESTS AT 754.06 TONNES THEN A DEPOSIT OF 6.76 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 760.82

OCT 31: WITH GOLD DOWN $11.35: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RE3STS AT 754.94 TONNES

OCT 30/WITH GOLD DOWN $2.00: A HUGE DEPOSIT OF 5.30 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 754.94 TONNES

OCTOBER 29/WITH GOLD DOWN $7.75 TODAY/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 749.64 TONNES

OCTOBER 26/WITH GOLD UP $3.65 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 749.64 TONNES

OCT 25/WITH GOLD UP $1.15: A DEPOSIT OF 1.76 TONNES OF GOLD INTO THE GLD INVENTORY/INVENTORY RESTS AT 749.64 TONNES. FROM ITS LOW POINT AT THE BEGINNING OF OCTOBER THE GLD HAS ADDED.19.47 TONNES OF GOLD

OCT 23/WITH GOLD UP $11.85 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 747.88 TONNES

Oct 22/WITH GOLD DOWN $3.90 TODAY: A WITHDRAWAL OF 2.97 TONNES OF GOLD FROM THE GLD INVENTORY/INVENTORY RESTS AT 745.82

AND THEN: A DEPOSIT OF 2.06 TONNES SUCH THAT THE FINAL RESTING INVENTORY IS 747.88 TONNES

OCT 19/WITH GOLD DOWN $1.70 : NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 748.76 TONNES

OCT 18/WITH GOLD UP $2.80/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RSTS AT 748.76 TONNES

OCT 16/WITH GOLD UP BY ONLY $1.00/WE HAD ANOTHER 4.12 TONNES OF GOLD ADDED TO THE GLD/INVENTORY RESTS AT 748.76 TONNES

OCT 15/WITH GOLD UP $8.45/ANOTHER 5.65 TONNES OF GOLD WAS ADDED TO THE GLD INVENTORY/INVENTORY RESTS AT 744.64 TONNES

OCT 12/WITH GOLD DOWN $4.35/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 738.99 TONNES

OCT 11/WITH GOLD UP $35.20 TODAY: A HUGE PAPER GOLD INVENTORY GAIN OF 8.82 TONNES/INVENTORY RESTS AT 738.99 TONNES

OCT 10/WITH GOLD UP $2.65 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 730.17 TONNES

OCT 9/WITH GOLD UP $2.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 730.17

OCT 8/WITH GOLD DOWN $18.60 NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 730.17 TONNES

 

 

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NOV 23.2018/ Inventory rests tonight at 762.92 tonnes

*IN LAST 501 TRADING DAYS: 172.23 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 401 TRADING DAYS: A NET 12.23 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

NOV 23

NOV 22/WITH SILVER DOWN 25 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 325.019 MILLION OZ.

NOV 21/WITH SILVER UP 23 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 325.019 MILLION OZ/

NOV 20/WITH SILVER DOWN 14 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 563,000 OZ INTO THE SLV/INVENTORY RESTS AT 325.019 MILLION OZ/

NOV 19/WITH SILVER UP 3 CENTS TODAY:NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 324.456 MILLION OZ/

NOV 16/WITH SILVER UP 9 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 324.456 MILLION OZ/

NOV 15/WITH SILVER UP 21 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 324.456 MILLION OZ

NOV 14/WITH SILVER UP 10 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 324.456 MILLION OZ

NOV 13/WITH SILVER DOWN 15 CENTS; A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 328,000 OZ FROM THE SLV/INVENTORY RESTS AT 324.456 MILLION OZ/

NOV 12/WITH SILVER DOWN 10 CENTS/ A SMALL CHANGE IN SILVER INVENTORY A THE SLV: A WITHDRAWAL OF 940,000 OZ/INVENTORY RESTS AT 324.784 MILLION OZ

NOV 9/WITH SILVER DOWN 29 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 325.724 MILLION OZ/

NOV 8/WITH SILVER DOWN 15 CENTS: A SMALL WITHDRAWAL OF 281,000 OZ FROM THE SLV/INVENTORY RESTS AT 325.724 MILLION OZ.

NOV 7: WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.005 MILLION OZ/

NOV 6/WITH SILVER DOWN 14 CENTS: NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 326.005 MILLION OZ/

NOV 5/WITH SILVER DOWN 9 CENTS TODAY: ANOTHER BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.315 MILLION OZ FROM THE SLV INVENTORY/INVENTORY RESTS AT 326.005 MILLION OZ/

NOV 2/WITH SILVER DOWN 6 CENTS TODAY: A SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 143,000 OZ/INVENTORY RESTS AT 327.320 MILLION OZ/

NOV 1/WITH SILVER UP 54 CENTS TODAY: A BIG CHANGE IN SLV” A WITHDRAWAL OF 1.033 MILLION OZ FROM THE SLV. /INVENTORY RESTS AT 327.463 MILLION OZ.

OCT 31/WITH SILVER DOWN  18 CENTS: NO CHANGES IN SLV INVENTORY/INVENTORY RESTS AT 328.496 MILLION OZ/

OCT 30/WITH SILVER UP 4 CENTS TODAY: NO CHANGES IN SLV INVENTORY/INVENTORY RESTS AT 328.496 MILLION OZ

OCTOBER 29/WITH SILVER DOWN 27 CENTS NO  A HUGE CHANGE IN SILVER INVENTORY AT THE SLV” A WITHDRAWAL OF 1.879 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 328.496 MILLION OZ.

OCTOBER 26/WITH SILVER UP 7 CENTS NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 330.375 MILLION OZ

OCT 25/WITH SILVER DOWN 7 CENTS: ANOTHER HUGE WITHDRAWAL OF 1.315 MILLION OZ FROM THE SLV INVENTORY/INVENTORY RESTS AT 330.375 MILLION OZ/

OCT 23/WITH SILVER UP 22 CENTS/A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.819 MILLION OZ /INVENTORY RESTS AT 331.690 MILLION OZ.

OCT 22/WITH SILVER DOWN 8 CENTS: A SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 470,000/INVENTORY RESTS AT 334.509 MILLION OZ/

OCT 19/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INV. RESTS AT 334.039 MILLION OZ

OCT 18/WITH SILVER DOWN 6 CENTS: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.127  MILLION /RESTS AT 334.039 MILLION OZ/

OCT 16/WITH SILVER DOWN 2 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 15/WITH SILVER UP 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 12/WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 11/WITH SILVER UP 25 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 10/WITH SILVER DOWN 7 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 9/WITH SILVER UP 9 CENTS TODAY: NO CHANGE IN SILVER INVENTORY: SLV INVENTORY RESTS AT 332.912 MILLION OZ

OCT 8/WITH SILVER DOWN 33 CENTS, A GOOD SIZE WITHDRAWAL OF 563,000 OZ/INVENTORY RESTS AT 332.912 MILLION OZ.

 

 

NOV 22/2018:

 

Inventory 325.019 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

SMALL JUMP IN LIBOR RATES TODAY./

 

 

THE RISE IN LIBOR IS CREATING A SCARCITY OF DOLLARS BECAUSE FOREIGN EXCHANGE SWAPS (COSTS) ARE SIMPLY PROHIBITIVE

YOUR DATA…..

6 Month MM GOFO 2.47/ and libor 6 month duration 2.89

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

G0LD LENDING RATE: + .42

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.74%

LIBOR FOR 12 MONTH DURATION: 3.11

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.37

end

 

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Is Brexit a Massive Threat to Globalisation?

Is Brexit a Massive Threat to Globalisation?

As Theresa May heads back to Brussels today in a last ditch effort to renegotiate her Brexit deal in order to get it passed through the British Parliament, we take a look not just at the current state of DIS-unity but also ask the question – is Brexit a Massive Threat to Globalisation?

May’s Brexit deal was literally laughed out of the House of Commons last week and commentators noted that they hadn’t seen such aggression towards an incumbent Prime Minister by members of his or her own party since Neville Chamberlain’s oversight of the disastrous Norwegian Campaign in 1939.

Conservative hard line Brexiteers won’t support this deal as it effectively still sees them following EU rules without any say in their making (an obvious side effect of resigning your membership to the club!). Conservative Remainers are also unwilling to support the deal but may feel forced to pick the lesser of two evils, a bad deal rather than no deal at all. Labour MPs are 86% Remainers and therefore highly unlikely to be supportive of the deal. The DUP, who prop up May’s government and are lead by Arlene Foster won’t support the deal because it effectively changes the relationship of Northern Ireland with the Union, a red-line issue for them despite the fact that this could be a great boon for Northern Ireland, who heavily voted in favour of remaining! The Scottish Nationalist Party (the SNP), representing the area that most heavily voted remain are also unlikely to support the deal and may use Brexit as a rationale for another independence referendum.

So May is caught between a rock and a hard place!

She needs to get a deal passed because she knows that any deal is better than the political and economic suicide of crashing out of the EU with no deal at all. But she has been sent like a modern day Michael Collins to attempt to secure a deal that cannot possibly be achieved.

With calls for another “Peoples Vote” falling on deaf ears and time running out, it appears that British politicians willingness to gamble with the economic future of its citizens is going to go down to the wire. They may also inadvertently set in motion a process that sees the break-up of the United Kingdom if Brexit triggers another Scottish independence referendum and a referendum in Ireland for re-unification.

And this is not just about the UK, Brexit is a challenge to the EU project and globalisation as a whole. When the UK leave (one way or the other) this paves the way for similar dis-unification in Europe and beyond as nationalism and populism and the era of fake news continues.

Where is the strategic leadership of old gone, the leadership and vision that created trading partners out of historic enemies in the first place?

And what is next?

 

 
 

NOV 23.2018

Gold and Silver Hold Firm as Stocks and Oil Lower in to US Holiday Weekend

Key Gold and Precious Metals News, Commentary and Charts This Week

Gold and silver traded sideways this week as we saw stock markets take some heat and undo most of the recent recovery from the October sell off. Oil has sold off and is now at levels that we haven’t seen since 2017.

Credit: Weekly relative performance (Finviz.com)

While the US markets are quiet due to Thanksgiving all eyes are focused on Europe and the continuing debacle that is Brexit. With the expectation that a deal is going to be signed between the UK and the EU, this will mark the next step in the attempt for the UK to leave the world largest single market.

Following the signing of the agreement, Theresa May next has the mammoth task of trying to get the British Parliament to agree to the deal. As it is highly unlikely that the House of Commons will co-operate, what next for Brexit? GoldCore CEO Stephen Flood discusses Brexit and its potential effect on globalisation in this week’s video.

Given the continued uncertainty for the UK and the potential disastrous economic implications of the UK crashing out of the EU with no deal, cautious investors are starting to move their gold out of the UK. To facilitate this demand from clients, GoldCore has launched the first institutional-grade gold vault in Ireland. Irish, UK and international investors can for the first time store gold bullion bars and coins in professionally managed and secure, institutional grade vaults in Dublin.

This has been widely picked up in the media again this week with CNBC covering on Tuesday. You can check out the story here.

We also discussed the finer details and the thought process of our clients in a special episode of The Goldnomics Podcast which you can view here:

 

News and Commentary

Oil falls to lowest since late 2017 on emerging supply glut, OPEC expected to cut (Reuters.com)

Gold holds steady on Fed interest rate hike uncertainty (Reuters.com)

Gold edges up ahead of G20 meeting; set to post second weekly gain (CNBC.com)

German GDP data confirms contraction in 3Q (-0.2%) (MarketWatch.com)

Is Brexit a Massive Threat to Globalisation? (GoldCore.com)

The truth about a no-deal Brexit (Economist.com)

Did We Just Witness The Bottom in the Gold Market? (GoldSeek.com)

Crypto Losses Near $700 Billion in Worst Week Since Bubble Burst (Bloomberg.com)

 

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

22 Nov: USD 1,228.25, GBP 950.42 & EUR 1,074.72 per ounce
21 Nov: USD 1,224.00, GBP 957.29 & EUR 1,075.04 per ounce
20 Nov: USD 1,223.10, GBP 951.45 & EUR 1,069.97 per ounce
19 Nov: USD 1,223.55, GBP 951.07 & EUR 1,070.97 per ounce
16 Nov: USD 1,215.80, GBP 948.93 & EUR 1,073.07 per ounce
15 Nov: USD 1,210.60, GBP 948.26 & EUR 1,072.71 per ounce

Silver Prices (LBMA)

22 Nov: USD 14.52, GBP 11.26 & EUR 12.72 per ounce
21 Nov: USD 14.42, GBP 11.26 & EUR 12.65 per ounce
20 Nov: USD 14.44, GBP 11.24 & EUR 12.63 per ounce
19 Nov: USD 14.36, GBP 11.21 & EUR 12.57 per ounce
16 Nov: USD 14.29, GBP 11.15 & EUR 12.61 per ounce
15 Nov: USD 14.13, GBP 11.02 & EUR 12.49 per ounce


Recent Market Updates

– Is Brexit a Massive Threat to Globalisation?
– Stock Markets Remains Extremely Overvalued – Hussman
– Stocks are Now in ‘Complete Bitcoin Territory,’ Asset Manager Says
– Brexit’s Safe Haven Is a Dangerous Place
– Gold and Silver Rise As Stocks Fall On Valuation Concerns, Italy and Brexit Risks
– Pound Falls 2.5% Against Gold as UK Government in Turmoil Over Brexit
– GoldCore Capitalising On Brexit With Dublin Gold Vault
– Store Gold In The Safest Vaults In Ireland
– Investors Set To Store Gold In Dublin Due To Brexit Risks
– Investors Start Buying Gold ETFs In October In Bullish Shift
– As Brexit Looms and Stocks Plunge In October – Now May Be The Time to Invest in Gold

Mark O’Byrne
Executive Director
END
ii) GATA stories

 




iii) Other Physical stories

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Your early FRIDAY 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 6.9473/HUGE DEVALUATION FOR THE PAST FOUR WEEKS RESUMES/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER NOW ON //OFFSHORE YUAN:  6.9424   /shanghai bourse CLOSED DOWN 65.55 POINTS OR 2.49%

. HANG SANG CLOSED DOWN 91.73 POINTS OR 0.35%

 

 

2. Nikkei closed UP 138.01 POINTS OR 0.65%

 

3. Europe stocks OPENED ALL GREEN

 

 

 

 

/USA dollar index RISES TO 96.83/Euro FALLS TO 1.1283

3b Japan 10 year bond yield: FALLS TO. +.10/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.83/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 52.20 and Brent: 60.55

3f Gold DOWN/JAPANESE Yen UP CHINESE YUAN:   ON SHORE DOWN/OFF- SHORE: 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 DOWN for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.35%/Italian 10 yr bond yield UP to 3.42% /SPAIN 10 YR BOND YIELD UP TO 1.64%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 3.07: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 4.55

3k Gold at $1221.25 silver at:14.21   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 15/100 in roubles/dollar) 65.78

3m oil into the 52 dollar handle for WTI and 60 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 112.83DESTROYING 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 0.9969 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1367 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 +0.35%

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

4. USA 10 year treasury bond at 3.05% early this morning. Thirty year rate at 3.30%

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

6.  TURKISH LIRA:  UP  TO 5.2862

 

Thursday Nov 22 trading from Europe

Global Markets Slide In Thin Trading, Pound Soars On Post-Brexit Agreement

S&P futures slumped into the red, following a drop in European stocks while Asian shares traded mixed in a subdued day of trading thanks to Thanksgiving holidaythe big moves were in FX where the pound jumped, the euro strengthened and the dollar slumped after a draft deal on post-Brexit ties was tentatively agreed.

US cash markets may be closed, but futures are open, and overnight the Emini slumped to Wednesday’s session lows before rebounding modestly.

Europe’s bourses dropped back into the red on Thursday as investor worries mounted about slowing global growth in the face of rising U.S. interest rates and trade tensions. The Stoxx Europe 600 Index dropped as much as 0.9%, giving up much of Wednesday’s gains as almost every sector fell, led by basic resources and banking shares. The biggest decliners include BAT -1.9%, Total -1.1%, HSBC -1%, AstraZeneca -1.1%, although trading volumes were lethargic.  Italy was under pressure in both stock and bond markets as sparring resumed over its budget plans. Some disappointing big-name earnings added to the gloom.

Europe’s tech sector lost another 1.2 percent, but it wasn’t the worst performer. Banks were 1.6 percent weaker and mining companies and other resources firms were down nearly 2 percent and approaching a one-month low, reflecting the bitter Sino-U.S. trade war, encouraging investors to take money off the table before U.S. President Donald Trump and his Chinese counterpart, Xi Jinping, meet in Argentina next week.

The pound soared, rising sharply above 1.29 and gilts fell as a draft Brexit deal pointing to deep ties between the U.K. and European Union as well as a solution to the Irish border question was agreed at a “political level,” according to the EU. Enthusiasm was dented however after Reuters reported that Spain will vote against the current Brexit draft proposal because of a lack of clarity on Gibraltar.

Earlier, Asian indexes swung between gains and losses before turning higher, with Japanese stocks getting an end-of-session boost on a report about a possible government rebate. MSCI’s broadest index of Asia-Pacific shares outside Japan had ended little changed after recovering from an initial wobble. The index has managed to hold up so far in November after three straight monthly declines, but is on track for its worst annual performance since 2011. Japan’s Nikkei had finished almost 0.7 percent higher but Chinese shares closed 0.4 percent in the red.

“Investors are still wary about whether they’ll see further lows, given none of the issues that drove the recent correction have dissipated,” said Shane Oliver, Sydney-based head of investment strategy at AMP.

Trading volumes in the region were also depressed. Singapore became the latest to warn about the potential impact on Thursday. The city state is considered as a bellwether for international trade.

“Risks in the global economy are tilted to the downside,” said Loh Khum Yean, Singapore’s permanent secretary for trade and industry.

Elsewhere, Bitcoin steadied, emerging-market assets were broadly stable and gold nudged upward. Treasuries didn’t trade because of the U.S. holiday. In commodities, China-sensitive metals like copper fell and oil prices reversed early gains, although they were still above one-year lows touched earlier this week. U.S. crude futures were last down 8 cents at $54.55 a barrel after hitting a one-year low of $52.77 on Tuesday. Brent eased 15 cents to $63.33, off Tuesday’s low of $61.71.

The US is closed today for Thanksgiving holiday.

Top Overnight News from Bloomberg

  • E.U., U.K. see free-trade area and deep regulatory cooperation; state “determination” to replace backstop: Draft
  • U.K. and European negotiators are working through the night to hammer out the final part of the Brexit deal as Theresa May fights to keep a crunch summit on Sunday on track. After meeting EU Commission President Jean-Claude Juncker Wednesday, PM Theresa May announced that she will return to Brussels for last minute talks on Saturday, just a day before EU leaders are due to sign off on the deal. That wasn’t expected: Brexit update
  • Technology stocks rose Wednesday, posting a partial rebound from a bruising three-day decline, though analysts said further volatility and losses are likely
  • Federal Reserve Chairman Jerome Powell and his colleagues are likely to turn more wary about marching interest rates higher after delivering a widely anticipated quarter percentage-point increase in December. Fed may pause cycle of rate hikes as early as spring: MNI
  • The Republican chairman of the U.S. Senate committee overseeing trade rebuffed a call by a dozen GOP senators to vote on a revised a U.S.-Canada-Mexico trade agreement this year, a move that likely will doom their effort
  • U.S. consumers will be hit hard if President Donald Trump goes ahead with tariffs on the remaining imports from China, worth about $260 billion in 2017. That’s because China has an “exceptionally large” market share in goods that have so far escaped the tariffs, according to Deutsche Bank AG. They note that 93 percent of U.S. laptop imports came from China in 2017 while 80 percent of mobile phone imports came from China
  • Italy PM Conte confident spread will narrow; acting responsibly on budget; Italy’s Di Maio sees margins for dialogue with EU; infringement procedure would be unfair; Salvini/Di Maio say won’t change a comma on budget: Repubblica
  • BTP Italia total placement closed at EU2.16b: Treasury
  • WSJ: Apple to offer Japan carriers discount to up iPhone XR sales

DB’s Jim Reid concludes the overnight wrap

Happy Thanksgiving to all our US readers. Apparently Americans will consume up to 4,500 calories each over the course of today, although I read that us Brits consume around 7,000 on Xmas Day so our friends stateside are lightweights. For those working in financial markets both these numbers might be eclipsed this year after the stresses of the last couple of weeks. However, ahead of the holiday, there were some healthier markets yesterday to raise a glass to. In addition to that, we ran the numbers yesterday and the Friday after Thanksgiving has seen a ratio of positive to negative days for the S&P 500 of just under 2 to 1. This long-term daily average is 1.13 to 1.

Anyway, back to the present, where the rout which plagued just about every risk asset on Tuesday reversed to some degree yesterday with the NASDAQ (+0.92%), S&P 500 (+0.31%) and NYSE FANG (+0.51%) all closing higher. These indexes pared their peak intraday gains (S&P 500 up just over 1% at highs) though amid thin afternoon liquidity ahead of today’s US holiday. The DOW closed flat, while in Europe the STOXX 600 (+1.14%) and DAX (+1.61%) both rallied before the US dipped after Europe went home. HY spreads in the US and Europe were both around -7bps tighter, and WTI and Brent rallied +1.97% and +1.34% respectively. The climb for oil was fairly steady during the day helped partly by a drop in the latest API inventories data and also President Trump’s early morning tweet in which he thanked Saudi Arabia for lower oil prices. Inventories data out of the EIA later in the session didn’t really move the dial.

There were seemingly a few reasons for the turn in sentiment. One was the decent rally for BTPs, where two- and 10-year yields fell -23.3bps and -14.6bps respectively, for their best day in over a month. As expected, the European Commission rejected the latest Italian draft 2019 plan, with Commissioner Moscovici warning against Italy adopting free-rider behaviour in comments with the press. The EC confirmed that they are not yet opening the EDP but suggested that they see this as the path which is opening ahead. Moscovici confirmed yesterday that Italy will have two weeks to answer queries put forward by the EC. After that, the EC will have to make the decision whether or not to recommend opening an EDP to the Eurogroup. The hope for Italy might be that Moscovici sounded willing to keep a dialogue open, rather than shutting the door completely. Our economists rightly noted that the ball is now back with Italy. On that, Deputy PM Salvini initially said yesterday that the Government is open to a dialogue on spending revisions but wouldn’t stretch to discussing the budget deficit or pension reform. A potential sign of compromise appeared to be enough for the market though with the FTSE MIB also climbing +1.41% and an index of Italian banks up +2.35%, both snapping a five-day losing run.

Also attracting some interest yesterday was an MNI article quoting ‘senior Fed sources’ as suggesting that the Fed is considering a pause in hiking rates and may also consider ending its tightening cycle as soon as spring next year. The article went on to say that Fed officials appear to be converging around 3% for the neutral rate and that policymakers see inflation as peaking around the current 2% level before falling lower. A couple of comments are worth making on this. The first is that MNI isn’t seen as the most reliable source for Fed news, and the second is that this story broadly repeats commentary we have already heard from Clarida and Powell in recent days. So not particularly groundbreaking in our view. Treasuries didn’t move much on the article and 10y  yields ended flat, while two-year yields sold off +1.0bps by the close of play and the Dollar index edged down -0.11%.

Overnight Asian markets are mixed in thin trading due to today’s Thanksgiving holiday in the US and a holiday in Japan tomorrow. The Nikkei (+0.61%) and Hang Seng (+0.06%) are up while the Shanghai Comp (-0.55%) and Kospi (-0.39%) are down. Elsewhere, crude oil prices both WTI and Brent are down c. -0.35% this morning. On the data front, Japan’s October CPI printed in line with consensus at +1.4% yoy and core at +1.0% yoy while core-core CPI stood at +0.4% yoy.

Yesterday’s Brexit newsflow was fairly thin on the ground again, though Prime Minister May did meet with EU Commission President Juncker in Brussels. The two leaders made “good progress” according to a spokesman. More talks are planned for Saturday which is cutting it fine for Sunday’s summit, especially with some reports (BBC) suggesting that Friday is the key deadline to have things ready for the summit. Negotiators are working through the night to hammer out more on the agreement. Earlier in the session Gilt yields rose +1.3bps and the pound traded -0.09% weaker, as markets remain in a holding pattern ahead of the EU summit and the eventual UK Parliament vote, which is due sometime over next few weeks.

Meanwhile, the latest in the trade debate was the announcement by the WTO yesterday that they intend to launch a dispute investigation into the US allegations about China continuing a state-backed campaign of IP and technology theft. A decision is expected next year. In Germany Economy Minister Altmaier also announced that Germany planned to increase regulatory barriers to foreign investors by the end of this year, in effect making it harder for Chinese companies to launch takeovers of German companies. All this before the G20 meeting in just over a week now which will include a meeting between Trump and Xi Jinping on the sidelines. On that the FT reported yesterday that the draft communique made no explicit comment on fighting protectionism – language which has in essence been a mainstay of the statement since 2008.

The OECD released updated macroeconomic forecasts yesterday, and revised down its global growth projection for 2019 -0.4pp to 3.5% from the last May edition. The forecast for euro area growth was revised down -0.3pp to 1.8%, the US down -0.1pp to 2.7%, and China down -0.1pp to 6.3%. In their first projections for 2020, the OECD expects global growth to remain steady as faster growth in most EMs balances a further slowdown in developed markets and China.

It was a busy day for US economic data ahead of the Thanksgiving holiday, headlined by somewhat soft durable goods orders which fell -4.4% mom, the sharpest drop in over a year. Durables ex-transportation were soft as well, up +0.1% mom versus the expected +0.4%. Core capital goods orders were flat after a revised -0.5% mom drop in September. Our economists had highlighted their expectations for capex to slow over the medium term, so this data does not change their baseline forecasts. Separately, initial jobless claims ticked higher to 224,000 from 216,000 last week, which presents some downside risks to the  November nonfarm payrolls report due two weeks from Friday. Finally, the University of Michigan consumer sentiment index moderated slightly to 97.5, though 5-10 year inflation expectations ticked up to 2.6% from 2.4%, matching their highest level since March 2016.

As far as the day ahead is concerned, with it being a holiday in the US and markets subsequently closed, we’re extremely sparse on data releases with November confidence indicators in France and the November consumer confidence print for the Euro Area the only readings of note. That being said it’s a packed day for the ECB with Angeloni, Weidmann, Knot, Visco and Mersch all due to speak. The ECB’s October meeting minutes are also out today with Italian Finance Minister Tria due to face questions in the Upper House this afternoon.The BoE’s Saunders then speaks tonight.

FRIDAY/NOV 23

 

US Equity Futures Slide After Euro PMIs Stumble;

China, Crude Plunge

Returning from Thanksgiving holiday, US traders who braved record cold temperatures on their office commute are in a sour mood, with S&P futures sharply lower, following the latest sharp drop in Chinese stocks, where as noted earlier the Shanghai composite lost the 2,600 level, tumbling 2.5% to one month lows after the WSJ reported Trump asked allies to boycott China’s telecom giant Huawei.

The news dragged Asian shares lower, while Europe was mixed after the latest disappointing PMI which saw German Manufacturing and Services miss expectations, dragging the Eurozone Manufacturing PMI to 51.5, missing expectations of a 52.0 print, a 30 month low and the weakest since print since May 2016, while the composite index tumbled to the lowest level in 4 years in November.

Contracts on the Dow, S&P and Nasdaq all pointed lower, after Chinese equities led regional declines in Asia, with the technology sector weak on concern the U.S. is ratcheting up a campaign against Huawei Technologies. The result was a sharp drop in the Shanghai Composite, which slumped to levels last seen in late October, wiping out the recent rally.

In European trading, the preliminary PMI data dented hopes of an economic rebound into year end, sparking a rally in bunds and gilts, while 10Y TSY yields dropped to session lows of 3.04% after Thursday’s Thanksgiving holiday. Euribor contracts pushed higher after officials flagged downside risks and data added to nerves ahead of the ECB’s December meeting. Meanwhile in Italy, BTPs printed fresh highs for the week on signs of a budget compromise. European equities were mixed, printing small gains after a steady open, largely ignoring trade war concerns, which weighed on Chinese stocks. Italy’s FTSE MIB outperformed peers on renewed deficit discussion optimism and helping local banks rise over 1.5%. Technology and telecommunications stocks pared initial gains as equity gains are tempered by oil oversupply concerns, acting as a drag on energy/basic resources sectors

The dollar climbed and the euro reversed earlier gains as data showed German’s growth outlook weakened; the Euro slumped on renewed fears the slowing economy may delay any ECB balance sheet normalization while the pound handed back most of Thursday’s gains. In the latest Brexit news, Tory Brexiteer Iain Duncan Smith stated that the Brexit deal will be killed off by him and his Brexiteer colleagues in Parliament, while he is said to dismiss PM May’s efforts to adopt a tech solution to the Irish border problem and implied it is meaningless, according to ITV’s Peston.

Elsewhere, emerging market currencies and shares fell on renewed China trade concerns. Bitcoin declined and is on course to lose more than 20% this week.

Meanwhile, in commodities, WTI saw another sharp decline through $53, after energy minister Khalid Al-Falih said Saudi Arabia is producing oil in excess of 10.7 million barrels a day, more than in recent years, giving the strongest indication yet that the kingdom has boosted output to record levels. “We were at 10.7-something in October, and we are above that. We will know exactly when the month is over,” Al-Falih said. That said, he added that “we will not flood the market. We will not send oil that customers don’t need. And we’ve started doing that in December, and I expect we’ll continue doing that into the new year.”

The Organization of Petroleum Exporting Countries and allied producers warned earlier this month that oil markets will probably be oversupplied in 2019. Concerns that slower economic growth and a trade war could erode demand for oil are outweighing fears of potential shortages caused by U.S. sanctions on Iranian exports and supply disruptions elsewhere.

As a result, WTI has wiped out all modest gains observed in recent days, and was trading back at 1 year lows headed for its 7th weekly drop.

Falling energy prices are just one of several indicators that concern investors about the strength of global economic growth. Meanwhile, political turmoil in Europe, lingering uncertainty over a Brexit agreement and a trade war that’s engulfed the world’s biggest economies add to nervousness according to Bloomberg. Slowing growth is one of several prospects in the U.S. that may lead Federal Reserve to more caution in 2019 should they raise rates next month.

Elsewhere, base metals decline with LME copper 1% lower. EUR offered after PMIs to trade weakest levels this week, cable declines on broad USD strength.

In overnight geopolitical news, North Korea appeared to be expanding operations at its main nuclear site, according to the IAEA, while there were also reports that atomic agency inspectors are said to be demanding North Korea allow nuclear inspectors back into the country amid reactor activity concerns. China is to reportedly resume the purchase of Iranian oil in November after their waiver.

Expected data include PMIs. No major companies are scheduled to report earnings.

Market Snapshot

  • S&P 500 futures down 0.5% to 2,636.75
  • STOXX Europe 600 up 0.4% to 353.88
  • MXAP down 0.05% to 150.61
  • MXAPJ down 0.2% to 481.05
  • Nikkei up 0.7% to 21,646.55
  • Topix up 0.8% to 1,628.96
  • Hang Seng Index down 0.4% to 25,927.68
  • Shanghai Composite down 2.5% to 2,579.48
  • Sensex down 0.6% to 34,981.02
  • Australia S&P/ASX 200 up 0.4% to 5,716.21
  • Kospi down 0.6% to 2,057.48
  • German 10Y yield fell 1.6 bps to 0.354%
  • Euro down 0.2% to $1.1376
  • Italian 10Y yield fell 1.6 bps to 3.082%
  • Spanish 10Y yield fell 1.6 bps to 1.621%
  • Brent futures down 1.2% to $61.84/bbl
  • Gold spot down 0.5% to $1,223.00
  • U.S. Dollar Index down 0.04% to 96.67

Top Overnight News from Bloomberg

  • Following the weak German PMI figures, the euro-area composite index fell to the lowest in four years in November, denting expectations for an economic pickup after a summer slowdown. Adding to worries, the data also showed that employment and orders growth slowed and companies’ expectations dropped
  • A Spanish official criticized the inclusion of an article in the Brexit text that his government believes has unacceptably blurred the issue of future talks over Gibraltar
  • Some countries are frustrated that PM Theresa May is coming to Brussels on Saturday to see European Commission President Jean-Claude Juncker. The last pre-summit meeting of member-state officials is Friday — and they don’t want anything to change after that
  • U.S. President Donald Trump and Chinese leader Xi Jinping have indicated they’re both ready for a highly anticipated meeting at the Group-of-20 summit next week. Trump told reporters that China wants to make a deal “very badly” after his administration placed tariffs on on about $200 billion worth of Chinese goods
  • The Bank of England may need to increase interest rates at a quicker pace than currently envisaged by markets, according to policy maker Michael Saunders. Spare capacity in the economy has been used up, and, assuming Brexit reaches a smooth conclusion, inflationary pressures will probably build somewhat faster than officials predicted in their latest projections, Saunders said Thursday
  • The Chinese consulate in Karachi was assaulted by militants on Friday in an attack that killed at least seven people in Pakistan’s largest city and financial hub. The incident is the second major attack this year on Chinese officials in Karachi, in a country that is one of the key partners in China’s Belt and Road initiative
  • With Brexit in sight, Paris should become the next center for the clearing of interest-rate derivatives, said Bank of France Governor Francois Villeroy de Galhau
  • Shoppers across the U.S. poured into stores for Black Friday at the traditional kickoff of the holiday gift-giving season
  • A way out of Sweden’s political crisis is closing for the speaker of parliament. After his third pick to form a government threw in the towel on Thursday, speaker Andreas Norlen will need to get creative to break the gridlock caused by Sweden’s inconclusive election more than two months ago. He will hold a press conference at 10 a.m. in Stockholm on Friday
  • It may take until February or even later for some of Iran’s biggest oil buyers to resume purchases after winning waivers from the U.S. as they seek to resolve complications over insurance, shipping and payments.

Asian stocks traded mostly lower with sentiment in the region subdued by trade concerns and holiday-thinned conditions in the US, while Japan and India also observed public holidays. ASX 200 (+0.4%) was positive with the index supported by strength in its top-weighted financials sector amid gains in Australia’s largest banks after Macquarie pulled-off a rarity at the banking royal commission in which it emerged unscathed and with its reputation enhanced. Elsewhere, Shanghai Comp. (-2.5%) and Hang Seng (-0.4%) were negative amid ongoing trade uncertainty as China responded to the recent trade report by the US, in which it dismissed the accusations of unfair trade practices as groundless and totally unacceptable. In addition, the US called for its allies to stop using Huawei equipment and weak earnings results from Meituan Dianping in which the online service provider’s losses ballooned, further added to the glum. China responded to the recent US report in which it labelled the accusation by the US of  China continuing with unfair trade practices as groundless and totally unacceptable, while it added that it hopes US drops rhetoric and behaviour that are damaging to relations.

Top Asian News

  • China’s Capital Controls Keep a Bad Year From Getting Worse
  • The World’s Best and Worst Markets Are Both in China This Year
  • China Railway Unit Said to Be Planning 30 Billion Yuan IPO
  • Apple to Offer Japan Carriers Subsidy to Up iPhone XR Sales: WSJ

After opening with little in the way of firm direction amid holiday thinned markets (US, Japan and India), European equities have posted modest gains with the EuroStoxx 50 higher by 0.2%. Leading the charge in Europe is the FTSE MIB  (+0.6%) with Italian assets underpinned by optimism that the populist government could reign in some of their budgetary demands with reports suggesting that the EU Affairs Minister Savona could step down from his position (later denied) due to dissent over  Italy’s intentions to violate EU budget laws. This also comes amidst a backdrop of increasing pressure from President Mattarella who wants the technocratic PM Conte to get a deal done with the EC, whilst other Italian press report highlight the need for Italy to increase the sincerity of Italy’s concessions to Europe. In terms of sector specifics, upside in Italian banking names has helped spur gains in European financials with the telecoms sector outperforming. To the downside, energy names lag, in-fitting with price action in the complex with crude seemingly unable to stem recent losses. Individual movers include Renault (+4.2%), who have been granted some reprieve from recent losses following a broker upgrade at Jefferies and as Nissan continue to reorganise their corporate leadership. Elsewhere, GEA Group (-14.3%) are lower after cutting guidance whilst Altice (-9.8%) continue to face selling pressure following yesterday’s disappointing market update

Top European News

  • EU, U.K. See Free-Trade Area, Deep Regulatory Cooperation:Draft
  • German Growth Slows More Than Expected to Four- Year Low
  • Denmark Wants Danske Whistle-Blower to Explain His Testimony
  • Ericsson Rises as Goldman Sees ‘Strong Competitive Position’

In currencies,  the Dollar has benefited from the aforementioned relative weakness elsewhere, and the index is holding nearer the upper end of 96.394-751 parameters as a result, and on course to end the holiday-shortened week with a net gain, albeit modest having traded up to 96.898 and down to 96.037 at the other extreme. the Euro was not the most discounted major currency on offer, but cut price in wake of considerably weaker than forecast preliminary PMIs from France, Germany and the Eurozone overall. The single currency is now under 1.1400 vs the Usd and has broken the 10DMA to the downside at 1.1356, with fibs now being eyed ahead of 1.1300, while pivoting 0.8850 against the Gbp even though Sterling is also suffering in sympathy and jittery on Brexit issues following initial euphoria due to the UK-EU Political Declaration. CAD/NZD/AUD – Also going relatively cheap and underperforming against their US peer, with the Loonie back below 1.3200 amidst an even steeper slide in crude prices ahead of Canadian CPI and retail sales data. Meanwhile, the Aud has retreated through 0.7250 again and hardly helped by overnight developments as ANZ revised its RBA outlook to unchanged until August 2020, and the ASIC launched a probe of CBA for the alleged mis-selling of insurance products. Similarly, the Kiwi has lost grip of 0.6800 amidst speculation that the RBNZ could loosen mortgage restrictions as part of its FSR due next week. GBP – As noted above, the Pound has lost a bit more positivity after Thursday’s rally on the draft PD reached by Brexit negotiators given a mixed reaction to the details in UK political circles and ongoing doubt about approval by EU leaders. Cable is back below 1.2850 vs circa 1.2900 at best yesterday, albeit ‘comfortably’ above the recent 1.2785 low with decent bids noted at 1.2800. EM – Some consolidation at the end of a solid week for the likes of the Zar and Try that have both made potentially significant breaks of key levels at 14.0000 and 5.3000 vs the Usd respectively due to a combination of bullish technical and fundamental factors, ie the SARB ¼ point hike yesterday.

In commodities, WTI (-4.3%) and Brent (-2.6%) are on track for their seventh weekly loss with WTI prices briefly breaching the USD 52.00/bbl level to the downside while Brent lingers just above USD 61/bbl. Some traders are citing the recent decline to technical factors, while Saudi Arabia signalled that its output may have reached a record high of above 10.7mln BPD, and the kingdom’s Energy Minister Al-Falih noted that demand for oil will be lower in January 2019 compared to December 2018. This comes amidst the backdrop of this week’s EIA data which showed that US production remained at a record high of 11.7mln barrels, the most since at least 1983; according to government data. Therefore, the complex is suffering from a double whammy with supply glut concerns and weaker demand concerns weighing on traders’ minds. Oil fell into bear market territory this month after the US granted temporary waivers to eight countries in regard to Iranian oil, in turn pouring cold water on some supply concerns, while sources emerged this morning noting that China are to resume the purchase of Iranian oil in November after their waiver. Some analysts highlighted that due to complications over insurance, shipping and payments, it may take until February or later until some of Iran’s largest buyers such as South Korean and Japan resume purchases.

Elsewhere, gold (-0.4%) prices saw some downside after the yellow metal felt pressure from the firmer USD and copper weakened amid underperformance in China alongside a decline in Chinese commodity prices. Furthermore, China’s Dalian Exchange are to relax their risk management restrictions on some futures in an attempt to attract more investors to boost liquidity given the recent slump in iron ore prices.

US Event Calendar

  • 9:45am: Markit US Manufacturing PMI, est. 55.7, prior 55.7
  • 9:45am: Markit US Services PMI, est. 55, prior 54.8
  • 9:45am: Markit US Composite PMI, prior 54.9

DB’s Jim Reid concludes the overnight wrap

For those brave enough to attempt to snap up a few bargains today at the Black Friday sales then good luck. The day also marks 25 business days left in 2018 which after the last few weeks might feel like 24 too many. A shining light is that the Friday after Thanksgiving tends to favour the bulls looking back at moves for the S&P 500 however expect it to be another relatively thin day for volumes.

Ahead of today, there was little sign of any holiday spirit for markets in Europe yesterday with equities down across the board. With volumes about 25% below average, the STOXX 600 closed down -0.70%, which means the index has now closed lower on 6 out of the last 7 days and 8 of the last 10. It wasn’t any better for the DAX (-0.94%), CAC (-0.75%), FTSE MIB (-0.69%) and IBEX (-0.61%). The FTSE 100 (-1.28%) was the biggest faller with a +0.77% rally for the Pound to blame following more Brexit developments, although the domestically focused FTSE 250 (-0.30%) did at least put up more of fight.

More on that shortly but a quick refresh of our screens this morning shows that sentiment hasn’t improved at all in Asia this morning. Markets in Japan are closed which is sapping some more energy out of the session however there have been particularly heavy losses in China with the CSI 300, Shanghai Comp and Shenzhen down -1.59%, -1.75% and -2.72% respectively. The Hang Seng is down a more modest -0.40% while the Kospi is down -0.78%. Futures on the S&P 500 (-0.35%) are also in the red. Another sharp fall for WTI Oil (-2.23%) this morning which has seen the price of a barrel fall to $53.59 isn’t helping however the relative big moves in China appear to be due to an earlier WSJ article which suggested that the US was contacting key allies in order to join forces and persuade telecoms firms in their countries to avoid using equipment from China’s Huawei Technologies. Huawei is private however ZTE has shed over 3% this morning. The story has more than offset what is a seemingly positive sound  bite from President Trump last night ahead of the G-20 meeting next week, with Trump saying that he believes China “wants to make a deal and we’re very happy with that.”

Back to yesterday, where, in a quiet newsflow and light volume session, the highlight was confirmation that the EU and UK had finally come to an agreement on the draft terms of the UK’s exit from the EU. The agreement has been “agreed at the negotiators’ level and agreed in principle at political level, subject to endorsement”. That endorsement will need to come from this Sunday’s European Council summit which, for those interested, kicks off at 8.30am GMT and includes a press conference at 12.00pm GMT. PM May is due to continue meetings with EC President Juncker on the weekend prior to the summit taking place. Back to the draft text, despite the bounce for the Pound yesterday, it didn’t appear that there was anything substantially different in the political declaration text and therefore unlikely to convince the opposition to the deal – the remainers and Brexiteers – to change their minds. One outstanding issue remains Gibraltar however PM May did sound confident that an agreement with Spain on this would be met.

Perhaps unsurprisingly, the agreement was shot down by the Labour Party and also Tory Brexiteers later in the day when May addressed MPs at the House of Commons. Labour’s Corbyn called the text “empty” and said that it falls short of Labour’s six tests. There’s no date set for the parliamentary vote yet but clearly there is still much for the PM to do to make the numbers stack up in her favour, which at this stage still looks a long way off.

As for the rest of markets yesterday, well it was a slightly better day for credit spreads in Europe with cash spreads for IG and HY 0.4bps and 2.6bps tighter respectively. That being said, CDS markets were a lot weaker with Main and Xover +2.0bps and +8.7bps wider respectively. There wasn’t much to talk about in bond markets where Bunds closed 0.5bps lower in yield and at 0.368%, have essentially fluctuated in a 0.34-0.40% range for the last 6 sessions which is impressive given the scale of the risk-off moves that we’ve seen elsewhere. BTPs did outperform again yesterday, not quite to the scale of Wednesday, however 2y and 10y yields did fall 10.7bps and 1.7bps respectively. Italian Deputy PM Di Maio said that there are “margins for a dialogue and discussion” between the government and the EU which appeared to help sentiment. It’s worth noting that next week the BTP market faces the test of a 5y and 10y auction on the same day which could be an important marker in light of recent poor retail demand for BTPs. On that, yesterday’s linker auction in Italy received the second-lowest order book on record.

In other news, yesterday’s ECB minutes didn’t throw up too many surprises. The text revealed that “it needed to be emphasized that the incoming data, while somewhat weaker than expected, remained overall consistent with an ongoing broad-based expansion”. There was also an acknowledgement of a “number of uncertainties and fragilities” but this was in the context of officials agreeing to a “continuity and steadiness with respect to monetary policy”. The next ECB meeting is in just under 3 weeks and as a reminder we’ll get new economic forecasts which as the minutes noted “would provide an occasion for a more indepth
assessment” of the economy.

It’s perhaps timely then that today we’ve got the flash November PMIs in Europe which will act as the last major growth input for the December staff forecasts. The consensus for the Euro Area composite is 53.0 which is marginally down from the October print of 53.1. Manufacturing is expected to hold steady with the decline coming in the services sector. Germany’s composite is expected to fall a slightly greater 0.3pts to 53.1 while France is expected to fall 0.2pts to 53.9. DB’s Peter Sidorov noted that as things stand, the survey data present a downside risk to the ECB’s 1.8% 2019 GDP forecast in September, so it’s something worth watching. That said falling oil prices could at least provide some offset.

As far as the rest of the day ahead is concerned, we’ll also get the November PMIs in the US while prior to that we get the final revision to Q2 GDP in Germany (no change from -0.2% qoq expected) as well as the accompanying growth components. The ECB’s Luis de Guindos is also slated to speak in Madrid at lunchtime while as noted earlier, Black Friday officially gets underway, marking the traditional start to the US holiday shopping season.

 

 

3. ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 65.55 POINTS OR 2.49% //Hang Sang CLOSED DOWN 91.73POINTS OR 0.35% //The Nikkei closed UP 139.01 OR 0.65%/ Australia’s all ordinaires CLOSED UP 0.40%  /Chinese yuan (ONSHORE) closed UP  at 6.9473 AS POBC RESUMES  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER /Oil DOWN to 52.20 dollars per barrel for WTI and 60.55 for Brent. Stocks in Europe OPENED GREEN//.  ONSHORE YUAN CLOSED DOWN AT 6.9473AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9424: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOW ON   : /ONSHORE YUAN TRADING  WEAKER  AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

North Korea/South Korea/USA/China

3 b JAPAN AFFAIRS

END

3 C CHINA

Chinese stocks tumble big time as there is a report that Trump as asked the West to boycott Hauwei

(courtesy zerohedge)

Chinese Stocks Tumble On Report Trump Asks Allies To Boycott Huawei

An explosive report published early last month detailing how Chinese intelligence managed to infiltrate hardware used by dozens of US companies and government agencies, from Apple to the Department of Defense, made clear one simple, if disturbing, fact: The US is losing the race to contain China’s sprawling intelligence apparatus as it becomes increasingly embedded in the global tech and telecommunications infrastructure.

But the Trump Administration is doing everything in its power to change that. And after threatening the future of one Chinese telecoms supplier (ZTE),the US has been pushing its allies around the world to stop using equipment from another mainland firm with an even larger global reach: Chinese consumer tech and telecoms giant Huawei.

Huawei

The news sent Asian markets reeling on what was expected to be a quiet day, given the US Thanksgiving holiday: Chinese stocks fell, with the Shanghai Composite tumbling 2.7%, sending it to the lowest level since the end of October, while the ChiNext index plunged over 3.3%.

According to the Wall Street Journal, the US government has launched an “extraordinary outreach campaign” aimed at international telecom companies and friendly foreign governments to try and convince them to drop Huawei as a supplier over concerns that equipment produced by the company could be vulnerable to Chinese spies. But beyond the warnings, the US is even said to be considering financial incentives for telecoms firms that abandon Huawei and switch to a US-based or Western-based supplier. The purpose of the push is to stop Huawei components from being used in commercial and government networks over fears that the Chinese government would easily be able to tap into communications flowing through those channels.

American officials have briefed their government counterparts and telecom executives in friendly countries where Huawei equipment is already in wide use, including Germany, Italy and Japan, about what they see as cybersecurity risks, these people said. The U.S. is also considering increasing financial aid for telecommunications development in countries that shun Chinese-made equipment, some of these people say.

One U.S. concern centers on the use of Chinese telecom equipment in countries that host American military bases, according to people familiar with the matter. The Defense Department has its own satellites and telecom network for sensitive communications, but most traffic at many military installations travels through commercial networks.

To justify the campaign, officials who spoke with WSJ said the US feared that the presence of Huawei components could make it easier for China to intercept communications headed to and from US military bases, as not all of these flow through private DoD networks.

One U.S. concern centers on the use of Chinese telecom equipment in countries that host American military bases, according to people familiar with the matter. The Defense Department has its own satellites and telecom network for sensitive communications, but most traffic at many military installations travels through commercial networks.

Some see the campaign as an effort to establish a buffer zone for Huawei products as the US has sought to keep them out of its domestic market. According to WSJ’s sources, efforts to combat the growing influence of Chinese telecom firms predate the Trump era.

The international effort pushes out the battle lines of a U.S. campaign to keep Huawei electronics out of the U.S. Some officials see the initiative as part of a broader technological Cold War between U.S.-led allies and China for control of a world that is increasingly digitally connected—and thus increasingly vulnerable to surveillance and malfeasance. They fear the rise of technological giants that could benefit authoritarian governments, including irritants or outright foes of the U.S.

But the timing of this push is key: While US telecoms firms struggle to catch up, Huawei is already preparing to roll out its first batch of 5G technology.

The overseas push comes as wireless and internet providers around the world prepare to buy new hardware for 5G, the coming generation of mobile technology. 5G promises superfast connections that enable self-driving cars and the “Internet of Things,” in which factories and such everyday objects as heart monitors and sneakers are internet-connected.

U.S. officials say they worry about the prospect of Chinese telecom-equipment makers spying on or disabling connections to an exponentially growing universe of things, including components of manufacturing plants.

“We engage with countries around the world about our concerns regarding cyberthreats in telecommunications infrastructure,” a U.S. official said. “As they’re looking to move to 5G, we remind them of those concerns. There are additional complexities to 5G networks that make them more vulnerable to cyberattacks.”

Setting aside fears about the cybersecurity threat, the US has at least one clear ulterior motive to stymie Huawei’s growing global presence: Huawei has already become the dominant global player in 5G – a position that the US covets.

“There is only one true 5G supplier right now, and that is Huawei,” said Neil McRae, chief network architect for large British carrier BT Group PLC, at a Huawei event in London earlier this week. “The others need to catch up.”

And even after US officials interceded, warning European telecoms about the dangers of using Huawei’s equipment, some – including one unnamed Italian company – said they simply couldn’t find a suitable replacement for Huawei’s equipment.

Though government officials in China and the US have signaled that the meeting between President Trump and President Xi in Buenos Aires is definitely happening, these latest reports support what has become the ‘base case’ view of most Wall Street banks: Expect little to no progress from the meeting, as even a commitment from the US to delay its planned end-of-year tariff escalation now appears be much of an ask.

Still, President Trump remained upbeat about the prospects for a deal when he told reporters on Thursday that China wanted to do a deal on trade “very badly” and added that the US side is “very happy with that,” meanwhile, China’s Vice Minister of Commerce Wang Shouwen said China hoped to meet the US half way on addressing trade issues.

Despite the pleasant words, there’s still a not-insignificant risk that the talks lead to a further deterioration in ties between the two countries. If that happens, sectors that have been the hardest hit by the trade war (miners, automakers, chip makers) could take another leg lower.

zerohedge@zerohedge

at this rate Trump and Xi will have duel to the death in Argentina

Kate O’Keeffe

@Kate_OKeeffe

NEW: The U.S. has launched an extraordinary campaign to get foreign allies to block Chinese telecom giants Huawei and ZTE on national security grounds. It will be a tough sell: https://www.wsj.com/articles/washington-asks-allies-to-drop-huawei-1542924205?mod=searchresults&page=1&pos=1 
with @stuwoo

View image on Twitter

end

nothing new here:  China and Russia looking at bilateral agreements in order to ditch the dollar

(South China Morning Post)

China and Russia look to ditch dollar with new payments system in move to avoid sanctions

China and Russia are drafting a pact to boost the use of their national currencies in bilateral and international trade, underscoring their intent to cut their reliance on the US dollar.

The development of a new international financial payments system aims to address rising concerns over additional US sanctions and trade tariffs.

Russian Prime Minister Dmitry Medvedev, during his visit to China earlier this month, said the two nations were discussing the launch of a new cross-border system for direct payment of trade invoices in the yuan and the rouble.

He also said discussions were under way to allow the use of China’s UnionPay credit card in Russia and Russia’s Mir card in China.

The impetus for creating a new financial infrastructure is the continued deterioration in both countries’ relations with the United States and the threat that Washington will impose more economic sanctions on one or both of them.

“The Chinese should protect their system while Russia should protect its own system,” Medvedev said earlier this month, ahead of the 22nd regular meeting of Russian and Chinese heads of government.

“In this respect, this kind of cooperation is very useful because in this situation no one will be able to block the development of financial traffic,” he said, predicting that China-Russia bilateral trade would reach US$200 billion in 2020, double the US$100 billion level in 2014.

ZTE will be monitored by US compliance officer for two extra years for breaking probation, judge orders

The US, European Union and other Western countries imposed sanctions on Russia officials and businessmen after its forceful annexation of Crimea in 2014.

Many Russian and Chinese firms have also been fined or put on a blacklist by US authorities for violating US sanctions law. For instance, Chinese telecommunications equipment maker ZTE Corp was fined US$1.4 billion fine in June for shipping goods to Iran and North Korea in violation of those sanctions.

Medvedev made clear the payment system initiative was an attempt to move away from the current dollar-dominated financial system.

Russian Prime Minister Dmitry Medvedev, seen on November 19. Photo: Sputnik/Russian Government Press Service Pool via EPA-EFE

“No one currency should dominate the market, because this makes all of us dependent on the economic situation in the country that issues this reserve currency, even when we are talking about a strong economy such as the United States,” Medvedev said.

“I want to say something that may raise a few eyebrows, but I think some of these [US] sanctions are good or useful because they forced us to do what we should have done 10 years ago,” he said.

“But it is unclear to me why we have been trading oil and gas for dollars and euros all of these years without trying to involve the rouble.

“Trading for roubles is our absolute priority, which, by the way, should eventually turn the rouble from a convertible currency into a reserve currency.”

How a global payment system cashes in on the yuan’s increased use – learn Chinese

Since some 42 per cent of transactions on the Swift international payments system are in US dollars, exclusion from the current system is a powerful weapon Washington could use to punish sanctions violators.

The development of a new cross-border payments system could allow China and Russia to avoid using Swift for many transactions, potentially allowing them to circumvent any US sanctions.

“If the trade war escalates, using Swift to make financial payments becomes a potential channel to sanction a country,” Nathan Chow, an economist at DBS Bank said.

“So starting a new payments system will help avoid such a situation, on top of other uses such as yuan internationalisation and Russia-China trade development.”

China’s share of Russia’s international trade increased to 15 per cent last year from 11 per cent in 2013, largely reflecting increased purchases of oil and gas, according to Dmitry Dolgin, Russia chief economist at ING Bank.

Russian imports from China replaced some of the EU imports that were cut off by Western sanctions, which increased China’s share of total Russian imports to 22 per cent from 17 per cent five years ago.

US-China trade war is helping to boost use of yuan in international transactions

However, ING’s Dolgin said several hurdles would need to be overcome before the full benefits of a new payments system could be realised.

China’s heavy integration into global manufacturing supply chains means it has limited power to set prices in its own currency.

And US dollar-denominated payments had long been used by oil exporters for their convenience as well as for their faith in the dollar as a safe store of value, Dolgin said.

-END-

4.EUROPEAN AFFAIRS

Italy

The genius behind Salvini’s move.  He is trying to get the Italian populace to be against Brussels and it is working. The Euro is the deathbed for Italy..it must return to the Italian lira as quickly as possible.  Brussels does not care one bit about Italy only its on self perservation

(courtesy Tom Luongo)

Take Heed Italy, Brussels Doesn’t Care One Whit About

You

Authored by Tom Luongo via The Strategic Culture Foundation,

Watching the complete betrayal of Brexit by British Prime Minister Theresa “The Gypsum Lady” May is proving to be a wake up call for Italians. The latest polling results coming out of Italy show that while the populist coalition in Italy is unpopular in Brussels it is still very popular with Italians.

And that’s a good thing because when you look closely at Brexit negotiations it is clear that all that matters is the EU retaining power over the U.K. and not what is in the best interest of anyone involved, British or otherwise.

The Italian coalition partners still command nearly 60% of all Italians’ support, only their preference has changed. Lega now outpolls Five Star Movement (M5S) 33% to 26%, while the other center-right parties, namely Silvio “Stalking Horse” Berlusconi’s Forza Italia have collapsed (from 14% at March’s elections to just 7% now).

And roughly that same number now see the EU as mistreating Italy. These numbers will only get worse if the EU goes through with levying fines against Italy for submitting a budget Brussels doesn’t like.

Moreover, now we’re seeing support for Italeave rise as wellA recent poll by Politico Magazine posted over at Zerohedge shows a slight majority of Italians under age 45 are ready to do just that, leave the European Union.

The over 45 crowd is still enamored with the ideal of the EU tying together a warring Europe rather than confront the reality of what it actually is, a distant and tyrannical oligarchy led by unelected technocrats with strong ties to old money and old power.

The source of this support comes from, I think, the stark contrast between May’s appeasement of rankled EU leadership over the British people’s temerity to want out of their wretched union and how Deputy Prime Minister Matteo Salvini is attacking Brussels’ hypocrisy over fiscal restraints.

Salvini is doing exactly what he needs to do to shore up support and push the Italian electorate away from Brussels. It was a stroke of political genius to submit a budget which placated both halves of the coalition – tax and regulation cuts along with universal basic income – while ever so gently flaunting EU budget rules.

Salvini and his partner in insurrection Luigi Di Maio crafted a perfect piece of political poison for the EU to swallow. There’s nothing really objectionable in the budget proposal. It won’t solve any of Italy’s problems nor make them materially worse.

It was put forth to rankle EU leadership that has grown fat and lazy on having everything rigged in their favor. And they have over-reacted in the most predictable manner.

Think about what the EU is doing over this budget. They are threatening billions in fines to an Italian government that is in debt up to its eyeballs.

This is the very definition of “bad optics.”

But, consider the way they’ve handled Brexit. They’ve demanded a massive fee from the U.K. for leaving. This is on top of the money it already pays into the EU budget every year.

And don’t forget folks that the only reason the Italian sovereign debt issue isn’t front page news is because the European Central Bank is the only marginal buyer of Italian debt. And ECB President Mario Draghi isn’t doing this out of the goodness of his Goldman-Sachs-trained heart.

He’s doing it because if he doesn’t then the entire European banking system collapses.

So this whole thing is nothing more than Kabuki theatre. And Salvini knows it.

He understands that the euro is a death trap for Italy. He also knows he has all the leverage because of the size of the debt pile.

And yet, watching the EU now is exactly like watching it in handle the Greek debt talks in 2015.

They refused to negotiate. They make unreasonable demands. In Greece’s case they had a feckless Greek electorate which wouldn’t back Grexit and give equally feckless Prime Minister Alexis Tsipras the support he needed to take Greece out of the Euro.

So the strategy worked.

And the same thing is happening with Brexit. The British aristocracy do not want to leave the EU. Theresa May is a Remainer and so obviously on the take it’s not even funny at this point. From the beginning she’s had all the leverage and yet she acts as if she doesn’t.

So now she’s thrown together the exact deal that Brussels wanted all along, control over Britain’s tax and trade policy while removing their voice from the EU parliament. Honestly, Britain’s status once this deal is signed off on is simply a glimpse into every country’s future that stays.

Taxation without representation.

It should, then, come as no shock to anyone that the EU is handling Salvini and his government with the same disdain and derision. And that’s exactly what Salvini wants. He has to maneuver Brussels into making them be the bad guys.

Because if he’s going to get Italy free from Brussels it can’t be his idea. It has to be a popular groundswell.

Thankfully for him and Italians in general, the dopes in high places in Brussels are only too happy to oblige. I think they like being odious jerks, frankly.

They really do think they can lawyer their way through this. But the truth is they can’t.

Why do you think French President Emmanuel Macron and Lame Duck German Chancellor Angela Merkel want a Grand Army of the EU so badly? It’s to invade and occupy wayward member states not protect themselves from Russia.

The more the EU tries to bully and force Italy to do what it wants the more Italians, even older ones, will support Salvini’s crusade against them. Populism is popular all over Europe.

And the EU parliamentary elections in May will likely prove to be a major turning point in the EU’s trajectory. All of the Euroskeptic parties are vastly under-represented versus their current polling numbers. Hundreds of seats are set to change hands in May.

And many of the newcomers will not be in the pay of The Davos Crowd.

Maybe then the EU will realize just how fragile the entire project is.

end

EUROPE/NISSAN/GHOSN

Ghosn fired!!

(zerohedge)

 

Going, Going, Ghosn Fired As Nissan Chairman

Nissan’s board on Thursday fired Carlos Ghosn as chairman and representative director, ousting the main architect of the automaker’s alliance with France’s Renault and Japanese peer Mitsubishi Motors, and ushering in a period of uncertainty for the company’s 19-year alliance with Renault. The decision came in response to Ghosn’s arrest in Tokyo on Monday. Representative director Greg Kelly, a close Ghosn aide, was also voted out.

Nissan executives have five seats on the nine-member board, Renault loyalists have two seats and the remaining two are held by unaffiliated outside directors, a former bureaucrat and a race driver.

 

Renault has refrained from firing Ghosn as chairman and CEO, although he remains in detention along with Kelly, whom Nissan also accuses of financial misconduct. But Mitsubishi Motors plans to remove Ghosn from his post of chairman at a board meeting next week.

The legendary executive, who led Nissan in various capacities since 2000, faces allegations of understating his income by 5 billion yen ($44 million) over five years, starting in fiscal 2010, diverting investment money for personal use and misusing company funds. Over 10 Nissan executives have voluntarily agreed to answer prosecutors’ questions, including Saikawa and former Chief Operating Officer Toshiyuki Shiga, also a board member.

The Franco-Japanese alliance, enlarged in 2016 to include Japan’s Mitsubishi Motors has been rattled to its core by Ghosn’s arrest in Japan on Monday, with the 64-year-old group chairman accused of financial misconduct. Ghosn had shaped the relationship and was pushing for a deeper tie-up, including potentially a full Renault-Nissan merger at the French government’s urging, despite strong reservations at the Japanese firm.

As Nissan scrambles to contain the scandal and strengthen its governance, the board decided to establish an independent advisory committee made up of lawyers and outside experts. The panel is expected to not only investigate Ghosn’s alleged misconduct but also consider ways to prevent similar behavior and review executive compensation.

Amid growing uncertainty over the future of the alliance, Japan’s industry minister and France’s finance minister are due to meet in Paris on Thursday to seek ways to stabilise it.

“For me, the future of the alliance is the bigger deal,” a senior Nissan official told reporters on Wednesday, when asked about Ghosn’s arrest. “It’s obvious that in this age, we need to do things together. To part would be impossible.”

* * *

Japanese prosecutors said Ghosn and Representative Director Greg Kelly, who has also been arrested, conspired to understate Ghosn’s compensation at Nissan over five years from 2010, saying it was about half the actual 10 billion yen ($88 million). Shin Kukimoto, deputy public prosecutor at the Tokyo District Public Prosecutors Office, said on Thursday that court approval was received a day earlier to detain Ghosn for 10 days but he could not comment on whether he had admitted to the allegations.

Nissan said on Monday an internal investigation triggered by a tip-off from an informant had revealed that Ghosn engaged in wrongdoing including personal use of company money and under-reporting of his earnings for years.

The Asahi Shimbun said on Thursday that Ghosn had given Kelly orders by email to make false statements on his remuneration. Tokyo prosecutors likely seized the related emails and may use them as evidence, the report said.

Separately, The Yomiuri, Japan’s biggest-circulation daily, cited unnamed sources as saying Nissan’s internal investigation found that Ghosn had since 2002 instructed that about $100,000 a year be paid to his elder sister as remuneration for a non-existent advisory role. The paper said Nissan had found through the investigation that Ghosn’s sister had in fact been living in and managing a luxury apartment in Rio de Janeiro that the company had bought through an overseas subsidiary, but had done no advisory work for the car maker. Nissan has shared the information with prosecutors, Yomiuri said.

* * *

Prosecutors said Ghosn is being held at the Tokyo detention centre, which is known for its austere regime, a far cry from his usual luxury lifestyle, including restrictions on sleeping during the day and a requirement to wear a mask when meeting with visitors to prevent the spread of disease.

The detention house “is pretty cold at this of time year,” internet entrepreneur and convicted fraudster Takufumi Horie told his followers on Twitter, according to Reuters. Motonari Otsuru, a former public prosecutor who is known for overseeing the case against Horie, was hired as Ghosn’s lawyer, NHK reported.

END
We have been highlighting to you the huge problems inside Italy.  Italy has 224 billion euros worth of bad debt as well as owing a huge percentage of Italian sovereign debt.  Once interest rates soar, this becomes a huge loss to the Italian banks who will be offside on their covenants
(courtesy Kimani/SafeHaven.com_

The Big Bet Against Italian Banks

Authored by Alex Kimani via SafeHaven.com,

The eurozone’s third-largest economy, Italy, is marooned in a deep political and economic crisis, with seeming endless problemsan economy that has barely grown in decades, sky-high unemployment rates, ballooning national debt, an inability to form a stable coalition government and, lately, a looming showdown with the EU over mounting debt.

These have precipitated a wave of populism that has rejected the old establishment and brought in a new guard.

Unfortunately, that has done little to resolve another Italian bugaboo: a massive banking crisis.

European banks have accumulated about $1.2 trillion in bad and non-performing loans (NPLs) that have continued weighing down heavily on their balance sheets. Italian banks are sitting on the biggest pile of bad debt: €224.2B ($255.9B), with NPLs and advances making up nearly a quarter of all loans.

(Click to enlarge)

Source: Bloomberg

As if that is not bad enough, the banks now have to contend with potentially heavy penalties coming from Brussels after Italy’s recalcitrant leadership refused to revise the country’s fiscal 2019 budget to lower debt and borrowing.The sharks can already smell the blood in the water, and investors have been shorting Italian banking stocks to death. Italian banks hold nearly a fifth of the country’s government bonds.

(Click to enlarge)

Source: Reuters

Short sellers have mainly been targeting medium-sized lenders as well as asset manager Banca Mediolanum and investment bank Mediobanca. According to FIS Astec Analytics data, the volume of these banks’ shares on loan—a good proxy for short interest—has shot to its highest in 15 months.

Short interest on Mediolanum’s shares now stands at 8.7 percent of outstanding shares, while Mediobanca has 15 percent of its shares sold short.

Rome Refuses To Back Down

Investors seem justified in their pessimism on the Italian banking sector – if the latest developments are any indication.

A month ago, the European Commission rejected Italy’s 2019 budget on grounds that it flouted EU requirements and Italy’s commitment to lower its expanding budget deficit. The latest budget hiked the deficit to 2.4 percent of GDP–way higher than the targeted 1.8 percent this year. Meanwhile, total debt sits at a staggering 130 percent of GDP, the fourth highest in the world. The EC rules are clear: national debt should be maintained below 60 percent of GDP while deficit should not exceed three percent of GDP

Italy’s deputy prime minister Matteo Salvini, however, has sent strong signals that the country will not back down from the current budget or revise it to satisfy EU requirements. He has even accused the bloc of “hypocrisy and double standards.’’

Speaking to France24 on Tuesday, Mr. Salvini balked at the whole idea saying:

“Who has complied with rules in the past? Not Germany, not France, not Spain. Spain had an average deficit way above the rules. It’s double standards. What is 2.4? That is the point.”

Although Mr. Salvini is right in his assessment that the commission has allowed exceptions to the rules in the past (including in 2016 when it turned a blind eye to France’s debt prompting EC president to famously quip “France is France”), not reacting [to Italy] is not an option, as Wolfango Piccoli, co-president of EC advisory firm, Teneo Intelligence, has noted.

 The Moment of Truth

Some Italian politicians have been seeking curbs on the short selling in a bid to prevent a rise in bond yield spreads.While a ban on short-selling might alleviate short-term selling pressure, the moment of truth always arrives in the end… determined by underlying fundamentals. The continuing challenges on the Italian banking sector directly affects returns on shareholder equity, and will continue to reflect on share prices:

(Click to enlarge)

Source: Reuters

UK/Spain//Gibraltar/ Brexit
Gibraltar has always been a sore spot for Spain for over 300 years.  Spain wants this peninsula back into Spanish sovereignty.  Spain is now throwing her muscle around threatening to blow up the Brexit trade deal unless Spain and the UK have talks on this issue
(courtesy zerohedge)

Pound Slides As ‘Gibraltar Issue’ Threatens To Blow Up Brexit Talks

Negotiations over the post-Brexit political statement had appeared to show some progress on Thursday ahead of this weekend’s make-or-break summit of EU leaders, sparking a jump in the pound even as more sign of opposition to May’s draft Brexit deal emerged. Though some might have sensed that there could be trouble ahead when media reports about the statement indicated that it included no references to Gibraltar despite Spain’s threats to blow up the talks if the issue wasn’t addressed.

As it turned out, this read turned out to be correct, as the pound has now reversed nearly all of those gains, and then some, as the EU Sherpas hammering out the ‘political statement’ that will accompany the Brexit withdrawal treaty have apparently reached an impasse over the issue of the post-Brexit treatment of Gibraltar. According to Bloomberg, the sherpas have failed to reach a deal over Gibraltar, jeopardizing the entire statement, and possibly May’s draft Brexit deal itself, which Spain has vowed to oppose unless it receives assurances that it will have the opportunity to bilaterally negotiate with the UK over the issue during the transition period.

Pound

EU sources confirmed that the issue of the post-Brexit treatment of Gibraltar – or rather, the framework for post-Brexit negotiations over the treatment of Gibraltar – remain the only significant issue preventing the statement from being finalized.

Chief EU negotiator Michel Barnier told reporters that both the UK and EU are “working hard” on the compromise over Gibraltar after negotiators failed to finalize a deal during a Friday morning meeting in Brussels. Unlike virtually all of the Brexit-related contretemps until now, the UK isn’t the problem here: the Gibraltar issue must be worked out between Spain and other EU members, after Spain accused the bloc of ‘treachery’ over Gibraltar and threatened to blow up the last stage of talks before this weekend’s summit.

European Commission spokesman Alexander Winterstein emphasized that finding a solution to this issue rests with EU governments.

“Work on this issue, which is one of the issues that is still outstanding, is ongoing,” Winterstein tells reporters in the Brussels headquarters of the commission, the 28-nation European Union’s executive arm.

BuzzFeed reported earlier that Spain has been asking if Article 132 – extending the Brexit transition period – could be changed, then why couldn’t Article 184, which says the EU and UK must do their best to negotiate a future trade deal during the transition.

For everybody who is still confused about why the post-Brexit status of Gibraltar is suddenly such a major sticking point in the negotiations to establish what is merely a non-binding framework for post-Brexit trade talks, the BBC’s Katya Adler offers a thorough explanation in the thread below:

katya adler@BBCkatyaadler

1) How much of a threat is the Spain/Gibraltar question to the #Brexit summit on Sunday? This issue has the potential to be either a) huge or b) to disappear in to a puff of smoke

katya adler@BBCkatyaadler

2) Spain feels hoodwinked. Gibraltar is of huge national interest (and hurt pride) for many Spaniards. Many at the very least saw an opportunity with #Brexit to gain considerable influence over the Rock

katya adler@BBCkatyaadler

3) At the beginning of #Brexit negotiations Spain was promised that no decisions could be taken over the future of Gibraltar without consultation with Spain which is why throughout the negotiations process, there have been bilateral Spain-U.K. talks in parallel

katya adler@BBCkatyaadler

4) BUT when EU-U.K. talks reached an impasse over the Irish border backstop, Barnier and his team proposed going into a ‘tunnel’ – blocking out political and media noise to maximise chances of sealing a deal. It is in that tunnel time that Spain feels it was ‘betrayed’

katya adler@BBCkatyaadler

5) Suddenly the Irish backstop became a U.K.-wide customs area – meaning it was potentially straying in to post-#Brexit trade deal territory. Neither there in that text, nor in the draft of the political declaration on EU-UK future relations was there mention of Gibraltar

katya adler@BBCkatyaadler

6) Spain feels its positive attitude in the EU-U.K. bilateral talks was now being taken for granted and that their concerns over Gibraltar were being ‘sacrificed’ to give an extra something to the U.K. in negotiations. The European Commission denies this

katya adler@BBCkatyaadler

7) But Spain is not alone in feeling that their national interests were ignored during ‘tunnel’ negotiations. France, Denmark and the Netherlands feel let down by their EU negotiators over pinning down ongoing fishing rights in U.K. waters after #Brexit for example

katya adler@BBCkatyaadler

8) Spanish PM Sanchez is hugely pro-European. Sees himself as a bit of a Macron #2. It’s not in his nature to scupper EU plans or an EU summit. Remember when Italy’s Salvini refused to taken in migrant boats, Sanchez was the first to volunteer help BUT

katya adler@BBCkatyaadler

9) He’s under a lot of domestic pressure over Gibraltar and he heads a minority government. It’s just possible he’s learned from Salvini – if you dig in your heels in the EU, you can get results. Remember the EU thought it possible to hold the #Brexit summit in December instead..

 

katya adler@BBCkatyaadler

10) The Commission thinks this can be solved without reopening the #Brexit texts by noting Spain’s insistence on continuing U.K.-Madrid bilateral talks regarding post-Brexit relations in a declaration added to the texts or other EU formulas

katya adler@BBCkatyaadler

11) It’s certainly important to know the issue will be solved ahead of Sunday. Spain doesn’t have an actual veto over the divorce deal in the sense that EU leaders don’t vote on issues as such BUT

Meanwhile Tory Brexiteer Iain Duncan Smith threatened on Friday that he and his fellow eurosceptic Torys would kill May’s Brexit plan regardless of promises to adopt a “tech solution” to the Irish border problem and implied it is meaningless.

 

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Russia/Turkey/USA

Seems that the CIA has the smoking gun phone call of MbS giving the order to “silence’ Khashoggi

(courtesy zerohedge)

CIA Has “Smoking Gun Phone Call” Of MbS Giving

Order To “Silence” Khashoggi: Report

The Turks may still yet have the ultimate “smoking gun” leak up their sleeve which could put to bed the whole question over whether Saudi crown prince MbS personally ordered the October 2nd killing of Jamal Khashoggi.

The story broke on Thursday as Americans were celebrating Thanksgiving, and as President Trump — spending the holidays a Mar-a-Lago — took time to tell reporters at a press conference that the CIA “didn’t conclude” that MbS ordered the killing while hedging that he “might have done it”.

Turkish newspaper Hurriyet Daily News said on Thursday the CIA has a recording of a phone call in which the crown prince gave instructions to “silence Jamal Khashoggi as soon as possible.” The possible existence of such a tape could put Trump in an awkward position if its contents are leaked given his consistent defense of MbS amidst the scandal and growing calls for accountability.

Photos via the APThus far the slow drip of Turkish leaks have proven accurate, and Hurriyet columnist Abdulkadir Selvi broke the news of the first recording that captured Khashoggi’s death inside the Istanbul consulate, which proved accurate according to reports. Selvi wrote on Thursday, “There is talk of another recording” which involves a CIA eavesdrop of a call between MbS and his brother Khaled bin Salman, Saudi Arabia’s ambassador to the U.S.

The Turkish newspaper claimed based on its sources:

The crown prince gave an instruction to silence Jamal Khashoggi as soon as possible and this instruction was captured during [a] CIA wiretapping.

Selvi also reported that during her trip to Ankara last month, CIA Director Gina Haspel “signaled” the existence of the tape.

“It is being said that CIA chief Gina Haspel indicated this during her visit to Turkey,” Selvi wrote. The revelation, though not confirmed, came a day after Turkish news site Haberturk published what it said were quotes from a tape of Khashoggi’s last moments as he was apprehended the moment he stepped inside the consulate.

“Release my arm! What do you think you are doing?” Khashoggi was reported to have said upon entering the visa department of the consulate building, and where the seven minutes of the tape are recorded. “Traitor! You will be brought to account,” one among the assassination team is captured in the audio as staying, according to Haberturk.

The rest of the audio includes what the Turkish news site describes as “verbal fighting, brawling and torture.”

Last weekend it was revealed by the Washington Post that a confidential CIA report pointed directly to crown prince MbS ordering the hit. Trump received the full report on Tuesday, after which he issued a written statement praising Saudi Arabia and underscoring that the US close relationship, vital to the economy, is with the kingdom and no one ruler.

“You can conclude maybe he did or maybe he didn’t,” Trump said about the CIA report during his Thursday comments. “Whether he did or whether he didn’t, he denies it vehemently.” When asked who should be held accountable for the crime Trump responded“Maybe the world should be held accountable because the world is a very, very vicious place.”

But Turkey’s President Erdogan is unlikely to let MbS off that easy given the tortuously slow, and mostly accurate, leaks that have dripped out of Turkish state media so far. Likely the public is only days or weeks away from hearing the no doubt shocking audio of Khashoggi’s killing for themselves, as Turkish sources have signaled more major evidence is coming.

 

 

end

This is going to get interesting:  Iran seizes an Saudi fishing boat in the Persian Gulf

(courtesy zerohedge)

 

 

 

Iran Seizes Saudi Fishing Boat In Persian Gulf, Arrests

Crew

Iran’s elite Revolutionary Guards have detained a Saudi Arabian fishing boat and arrested its crew, Reuters reports citing Iran’s judiciary’s website Mizan reported on Friday.

A local official at the Iranian port city of Bushehr told Mizan that the reason for the detention was under investigation, although subsequent reports suggested that the crew was detained for “illegally fishing” in Iran’s territorial waters.

“Yesterday, the coast guards deployed in the country’s Southern waters came to spot two vessels in Iran’s protected waters in the South using electronic and optic tools and equipment,” Commander of Bushehr province Coast Guards Qalandar Lashkari said, according to Fars news agency.

 

Lashkari added that the Iranian coast guards rushed to the scene and were faced with two vessels which were illegally fishing in the Iranian waters under the Saudi flag.

Noting that 9 sailors were arrested thereafter, Lashkari said further investigation showed that the 9 people are nationals of different countries.

IRGC boat; stock photo

Earlier in 2018, IRGC forces seized another Saudi vessel and its four-strong crew after it illegally entered Iranian waters. The vessel was later expelled. In a reciprocal event on January 3, Saudi Arabia detained 21 Iranian nationals who were aboard two boats near al-Harqus Island 42 miles (78 km) off the Saudi coast, the Saudi border guard said.

Iranian media reported last year that Saudi border guards had opened fire on Iranian fishing boats in the Gulf, killing a fisherman and arresting three others. Saudi Arabia said the vessel was carrying explosives, an allegation Iran denied.

 

6. GLOBAL ISSUES

this has the potential to be a huge problem as the major of Tijuana declares that he has a crisis at the border.  The Dept of Home Land Security warns of criminal gangs among the migrants

(courtesy zerohedge)

Tijuana Mayor Declares Crisis At Border; DHS Warns Of Criminals, Gang Members Among Caravan

The mayor of Tijuana declared an international humanitarian crisis on Thursday following the arrival of more than 6,200 mostly Central American migrants – with more on the way.

During a press conference, Mayor Juan Manuel Gastélum called on the United Nations and other international groups to step in and assist with the massive influx of migrants, reports AZ Central. Up to 10,000 migrants could eventually end up in Tijuana, according to the federal government.

For now, the majority of caravan members who have arrived in Tijuana are camped out on a dirt baseball field at an outdoor sports arena and underneath bleachers. The city opened the complex after their other shelters reached capacity, while church groups have chipped in to provide portable showers, bathrooms and sinks. Local businesses, meanwhile, have complained of migrants panhandling and stealing.

View image on TwitterView image on TwitterView image on Twitter
Rafael Carranza@RafaelCarranza

Another dawn breaks at the sports complex-turned-shelter for the #MigrantCaravan in #Tijuana. Seven more bus loads of migrants arrived here overnight from #Mexicali. They were allowed inside, but the only space available for most to settle in is the cold/damp baseball field.

Donald J. Trump

@realDonaldTrump

The Mayor of Tijuana, Mexico, just stated that “the City is ill-prepared to handle this many migrants, the backlog could last 6 months.” Likewise, the U.S. is ill-prepared for this invasion, and will not stand for it. They are causing crime and big problems in Mexico. Go home!

“They have categorically omitted and not complied with their legal obligations,” said Gastélum of aid organizations, adding “So we’re now asking them and international humanitarian aid groups to bring in and carry out humanitarian assistance.”

The municipal government estimated it has spent nearly $27,000 daily to house and care for the nearly 4,700 migrants currently in the city. They are housed mostly in the Unidad Deportiva Benito Juarez, a sport complex converted into a makeshift shelter, but well over capacity since the start of the week. –AZ Central

“I will not compromise public services,” Gastelum told reporters while speaking from city hall. “I will not spend Tijuanans’ money, I will not bring Tijuana into debt now, in the same way we haven’t done so these past two years.

Gastélum has drawn both criticism and support in recent days over his strict approach to the migrant caravan. He was spotted last week wearing a red hat that reads “Make Tijuana Great Again,” while Tijuana locals have been slinging insults – and rocks – at the migrants.

Meanwhile, a small group of around 500 of the migrants “slowly and peacefully pushed within 500 feet of the US border” on Thursday, pressing against armed Mexican federal police near the US-Mexico pedestrian crossing, according to the San Diego Union Tribune

Asking for more humane conditions in the overflowing Benito Juarez shelter and trying to present themselves to United States immigration authorities for asylum, the group carried white flags as they marched from the migrant camp to the foot of the U.S. pedestrian bridge, a distance of about five city blocks.

There are sick children here, and we are cold and hungry,” said Carlos Lopez, a Honduran who was leading the group. Lopez added it was inappropriate to shelter the women and children outside. “The whole world is watching what is happening here.” –San Diego Union Tribune

The migrants have demanded better housing conditions and food while they await US officials to process their asylum requests.

President Trump, meanwhile, said on Thursday that he’s signed an order to close the US border with Mexico, and that he has authorized troops to use lethal force gainst migrants who attempt to enter the US “If they have to.”

Embedded video

The Hill

@thehill

President Trump: “As you probably see over the news what’s happening at our southern border… Large numbers of people, and in many cases we have no idea who they are, and in many cases they are not good people. They are bad people.” http://hill.cm/TBY8QTx 

The Department of Homeland Security on Monday estimated that there are around 500 criminals traveling in the caravan.

Paloma Zuniga, a dual Mexican-American citizen who has more than 32,000 followers on a Facebook page called “Paloma for Trump” said she is worried about public safety in Tijuana because some in the group are traveling without ID’s. –San Diego Union Tribune

“We have no idea who they are, Zuniga said. “Also, we have a lot of poverty here in Mexico already. We’ve been working hard, fighting every day to have a better life, to have a better quality of life, to have more jobs … and we don’t feel it’s fair that our government is allowing these people to come in and giving them benefits we don’t even have as Mexicans.”

Sound familiar?

Meanwhile, DHS Secretary Kristjen Nielsen warned on Wednesday that the caravan is “the majority of the caravan that we see is made up of single adult males or teenage males. In addition, we have identified over 500 criminals to include known gang members contained in the flow of the caravan.” 

On Wednesday, President Trump hit out against “activist” judges who continue to strike down his orders to secure the border.

Donald J. Trump

@realDonaldTrump

There are a lot of CRIMINALS in the Caravan. We will stop them. Catch and Detain! Judicial Activism, by people who know nothing about security and the safety of our citizens, is putting our country in great danger. Not good!

45.6K people are talking about this

Trump threatened to pull all aid and funding from Honduras if its government does not halt the migrant caravan, and has pressured the Mexican government to stop the migrants from crossing into the United States.

On Tuesday, White House chief of staff John Kelly reportedly signed a “Cabinet order” which allows US troops stationed at the border permission to act in a law enforcement capacity, including the use of lethal force, if necessary.

7  OIL ISSUES

Oil continues to crash as it lowers by 4 dollars a barrel to $50.63.

(courtesy zerohedge)

Oil Crashes To One Year Low, Brent Below $60 As

Saudis Pump Record Crude

Update:

  • U.S. CRUDE EXTENDS LOSSES, TRADES DOWN MORE THAN $4 A BARREL TO SESSION LOW OF $50.63 A BARREL
  • BRENT FALLS BELOW $60/BBL FOR FIRST TIME SINCE OCT. 2017

* * *

The first time oil tumbled two weeks ago when it crashed by 7%, Goldman – which has been telling its clients to keep buying crude all the way down from $80 – blamed it on “negative convexity” and other arcane reasons because the far simpler explanation, more supply, less demand,would be just too obvious for its brilliant strategists not to notice.

There was no “negative convexity” – Wall Street’s catch phrase to “”explain anything that can not be otherwise explained -overnight, when oil resumed its plunge, sliding to the lowest in a year and dropping below $51 after Saudi Arabia signaled its output reached a record high, while growing U.S. inventories stoked fresh concerns over a global supply glut.

WTI futures dropped as much as 5.4% from the Wednesday settlement (there was no Thanksgiving settlement price) and were set for a seventh weekly decline, dropping as low as $51.62/barrel the lowest price in one year.

Brent dropped below $60/barrel for the first time since October 2017.

And with Iranian export restrictions lifted after Trump provided most of its clients oil import waivers, traders are now focused on growing risks of a new glut of crude: Saudi Arabia’s oil minister said Thursday production from the world’s largest exporter climbed further this month after a surge in October, and U.S. stockpiles have risen for nine straight weeks.

Saudi Arabia is producing oil in excess of 10.7 million barrels a day, more than in recent years, Energy Minister Khalid Al-Falih said, giving the strongest indication yet that the kingdom has boosted output to record levels.

We were at 10.7-something in October, and we are above that. We will know exactly when the month is over,” Al-Falih said. “We will not flood the market. We will not send oil that customers don’t need. And we’ve started doing that in December,and I expect  we’ll continue doing that into the new year.”

At the same time, the world’s biggest exporter said it would respond to demand for oil and won’t oversupply the market, he told reporters on Thursday at the mining complex of Wa’ad Al Shamal in northwestern Saudi Arabia. Why the hedge? Because demand for Saudi crude may be lower in January than in December, he said.

Saudi Arabia set an oil production record of 10.72 million barrels a day in November 2016, just before the kingdom led a group of OPEC and non-OPEC countries in cutting output. The surge in output this month will come into the spotlight when  producers meet on Dec. 6 in Vienna to discuss their 2019 output strategy. Riyadh has already indicated it supports a deep  production cut and as a first step will reduce its shipments by 500,000 barrels a day in December from November levels. “As the year comes to an end, customers tend to cut their liftings,” Al-Falih said. “And of course we’ve seen the waivers on the Iranian sanctions. So, for all we know, January demand from Saudi Arabia will be even lower.”

And speaking of Iran, overnight Bloomberg reported that Chinese oil refiners have resumed their purchases of Iranian crude scheduled to be shipped in November; Saudi Arabia will be eager to retain this market and the resulting price war with Iran will lead to even lower prices.

Furthermore, as of this moment the Saudis are no longer complying with the terms of the 2016 Vienna output curbs, as the nation seeks to grab market share at the lower price points. While Riyadh has signaled it would throttle back production in December, unless OPEC and Russia can reach a new deal to constrain supply at their meeting next month, analysts see the prospect of sustained oversupply in 2019 in a repeat of what happened after the Thanksgiving massacre of 2014, undoing the group’s success over the last two years to drain global inventories.

Earlier this month, OPEC+ warned that markets will probably be oversupplied in 2019 and it would likely have to trim production by roughly 1 million barrels. U.S. stockpiles expanded to the highest level since December 2017 last week and oil producers there are producing at the highest rate since at least March 1983, according to government data.

Quoted by Bloomberg, Hong Sungki, a Seoul-based commodities trader at NH Investment said that “prices have taken a dive as Trump continues to put pressure on OPEC and Saudi Arabia to create a low-price environment, and that has coupled with increasing American stockpiles. A potential game-changer will be what OPEC+ agrees to do in terms of supply.”

Should there be no agreement, watch out below as oil retraces the entire rebound from early 2016. Should that happen, US junk bonds better beware as another round of high yield-funded E&P defaults will be almost certainly assured.

end

Oil jumps as Saudi’s plan a “disguised” production cut as they do not want to get on Trump’s nerves

(courtesy zerohedge)

Oil Jumps As Saudis Plan “Disguised” Production Cut To Hide From Trump

After tumbling all day, oil finally caught a bid with 20 minutes left into the holiday-shortened trading day, when the WSJ reported that Saudi Arabia and OPEC are inching toward a “compromise” between pleasing Trump – who has repeatedly warned OPEC in general and Saudi Arabia in particular not to cut output – with policies that won’t lead to price spikes and “throttling back the flow of its oil to rebalance oversupplied global markets.”

According to the WSJ, the “clandestine” solution sought by the cartel: a production cut that doesn’t look like a production cut.

Under such a scenario, the OPEC would announce plans to retain the current output targets, first set during the 2016 Vienna summit. And since Saudi Arabia is currently overproducing by nearly 1 million barrels a day, a reversion to the quotas from 2 years ago would imply a production pullback.

“It will be still a big cut but less pronounced,” a senior Saudi oil advisor said.

Still, it is unclear why Saudi Arabia – which would be the marginal output reducer – would agree to such a deal if, as the WSJ reports, the price of oil won’t rise yet the only difference would be a reduction in Saudi output.

Whatever the answer, algos heard enough and sent WTI sharply higher even if doubt appeared to creep back in and oil has faded more than half of the jump already.

And putting the bounce in context of today’s move suggest they are going to need more jawboning.

 

8. EMERGING MARKETS

 

 

END

 

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

Euro/USA 1.1354 DOWN .0049 REACTING TO MERKEL’S FAILED COALITION/ 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 MOSTLY GREEN

 

 

 

 

 

USA/JAPAN YEN 112.83  UDOWN 0.159 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL

GBP/USA 1.2823 DOWN   0.0047  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3221  UP .0040 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 FRIDAY morning in Europe, the Euro FELL by 49 basis point, trading now ABOVE the important 1.08 level FALLING to 1.1354 / Last night Shanghai composite CLOSED DOWN 65.95 POINTS OR 2.49%

 

//Hang Sang CLOSED UP 91.73 POINTS OR 0.35% 

 

/AUSTRALIA CLOSED UP  0.40% /EUROPEAN BOURSES GREEN

 

 

 

 

The NIKKEI: this FRIDAY morning CLOSED DOWN UP 139.01 POINTS OR 0.65%

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED GREEN

 

 

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 91.73 POINTS OR 0.35% 

 

 

/SHANGHAI CLOSED DOWN 65.95  POINTS OR 2.49%

 

 

 

Australia BOURSE CLOSED UP 40%

Nikkei (Japan) CLOSED UP 139.01 POINTS OR 0.65%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1222.40

silver:$14.28

Early FRIDAY morning USA 10 year bond yield: 3.05% !!! DOWN 1 IN POINTS from WEDNESDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.30 DOWN 1  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early FRIDAY morning: 96.83 UP 12  CENT(S) from WEDNESDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

And now your closing FRIDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.94% DOWN 2    in basis point(s) yield from THURSDAY/

JAPANESE BOND YIELD: +.10%  DOWN 0  BASIS POINTS from THURSDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY…

 

SPANISH 10 YR BOND YIELD: 1.63% DOWN 0  IN basis point yield from THURSDAY

ITALIAN 10 YR BOND YIELD: 3.41 DOWN 6   POINTS in basis point yield from THURSDAY/

 

 

the Italian 10 yr bond yield is trading 178 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS UP TO +.34%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 3.07% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A MASSIVE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1334 DOWN .0069 or 69 basis points

 

 

USA/Japan: 112.84 DOWN, .145 OR 15 basis points/

Great Britain/USA 1.2812 DOWN .0064( POUND DOWN 64 BASIS POINTS)

Canadian dollar DOWN 19 basis points to 1.3210

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was FELL BY 69 BASIS POINTS  to trade at 1.1334

The Yen ROSE to 112.84 for a GAIN of 15 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 64 basis points, trading at 1.2812/

The Canadian dollar LOST 19  basis points to 1.3210

 

 

The USA/Yuan,CNY closed UP AT 6.9485-  ON SHORE  (YUAN UP)

THE USA/YUAN OFFSHORE:  6.9434(  YUAN UP)

TURKISH LIRA:  5.2952

the 10 yr Japanese bond yield closed at +.10%

 

 

 

Your closing 10 yr USA bond yield DOWN 3 IN basis points from WEDNESDAY at 3.05 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.31 DOWN 2 in basis points on the day /

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

Your closing USA dollar index, 96.92 UP 21 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 FRIDAY: 4:00 PM 

London: CLOSED DOWN 7.46 POINTS OR 0.11%

German Dax : CLOSED UP 54.20 POINTS  OR 0.49%
Paris Cac CLOSED UP 8,81 POINTS OR 0.81%
Spain IBEX CLOSED UP 10.50 POINTS OR 0.12%

Italian MIB: CLOSED UP: 111.86 POINTS OR 0.60%/

 

 

WTI Oil price; 50.94 1:00 pm;

Brent Oil: 58.86 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    66.34  THE CROSS HIGHER BY .70 ROUBLES/DOLLAR (ROUBLE LOWER by 70 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  5.2952 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.34 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:50.94

 

BRENT:58.86

USA 10 YR BOND YIELD: 3.05%..

 

 

USA 30 YR BOND YIELD: 3.31%/.

 

 

 

EURO/USA DOLLAR CROSS: 1.1334 ( down 69 BASIS POINTS)

USA/JAPANESE YEN:112.84 DOWN .145 (YEN UP 15 BASIS POINTS/ .

 

USA DOLLAR INDEX: 96.92 UP 21 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.2812 DOWN 64 POINTS FROM YESTERDAY

the Turkish lira close: 5.2953

the Russian rouble:  66.34 DOWN 70 Roubles against the uSA dollar.( UP 70 BASIS POINTS)

 

Canadian dollar: 1.320 DOWN 19 BASIS pts

USA/CHINESE YUAN (CNY) : 6.9485  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.9434 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.34%

 

The Dow closed  DOWN 178.74 POINTS OR 0.73%

NASDAQ closed DOWN 33.27  points or 0.48% 4.00 PM EST


VOLATILITY INDEX:  21.52 CLOSED UP  0.72

LIBOR 3 MONTH DURATION: 2.689%  .LIBOR  RATES ARE RISING/GIGANTIC JUMP today

 

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

TRADING IN GRAPH FORM FOR THE DAY/WEEKLY SUMMARY/FOLLOWED BY TODAY

 

Crude, Credit Crash As Stocks Suffer Worst Black Friday Loss Since 2010

Give thanks? “You get nothing!!”

Dow’s worst Black Friday performance since 2010

 

 

Chinese stocks tumbled after a supported start to the week – this is the worst week for China in six weeks…

 

European stocks were also down across the board…

 

Dow was the week’s biggest loser but this was Nasdaq’s worst week since March…ugly close…S&P has confirmed its correction, closing down 10% from its record closing high…

 

Futures show the weakness during yesterday’s cash market holiday was quickly erased by the machines at today’s cash open… and then dumped…

Nasdaq’s mid-week bounce managed to get it back into the green barely for the year – everything else is red for 2018…

 

The early week bounce in FANG stocks faded…

 

Financials had an ugly week…

 

Credit had an ugly week with IG spreads blowing out to fresh cycle highs (even as VIX compressed)…

 

Treasury yields ended the week mixed with the short-end marginally higher and the rest of the curve lower in yield – despite the collapse in stocks…

 

Inflation breakevens tumbled to their lowest since Dec 2017, tracking oil lower…

It appears the broad derisiking across bonds and stocks on Tuesday decoupled the two asset classes on the week…

 

The Dollar rallied back up to last Friday’s pre-plunge highs again…

 

Cable slid today as reality hit that the Brexit ‘deal’ still has plenty of hurdles ahead…

 

Crude was the week’s biggest loser as the rest of the commodity space largely trod water…

 

This was Oil’s worst week since Jan 2016…

 

We do note that oil spiked a little into the close amid some OPEC/Saudi jawboning…(but still ended down 6% on the day)

Saudi Arabia and OPEC are inching toward a compromise between pleasing the U.S. with policies that won’t lead to price spikes and throttling back the flow of its oil to rebalance oversupplied global markets. The solution the cartel is considering: A production cut that doesn’t look like a production cut. Under such a scenario, the Organization of the Petroleum Exporting Countries would announce plans to retain current output targets, first set in 2016. That move would imply a production pullback because Saudi Arabia is overproducing by nearly 1 million barrels a day, according to people familiar with the matter.

Gold managed gains against the yuan while treading water against the dollar…

Finally, we note that ‘soft’ survey data is starting to catch down to the ‘hard’ reality of real economic data…

 

 

end

market trading

 

market data/

November PMI data for both Europe and the USA are raising flags about slowing global growth.  Today’s USA data certainly suggests this

(courtesy zerohedge)

November PMIs “Raise Warning Flags” About Slowing US Growth

After Germany, France, and Eurozone PMIs (47-month low) gravely disappointed, Markit’s US Manufacturing and Services PMI also printed below expectations.

After a brief rebound in October, US PMIs are both contracting back to ‘hard’ data’s reality…

This reversed the bounce in US Composite PMI also

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

The November survey does raise some warning flags to suggest growth could slow in coming months.

In particular, growth of hiring has waned as companies grew somewhat less optimistic about the outlook.

Goods exports also appear to also be coming under increasing pressure, often linked to trade wars having dampened demand. However, it should also be remembered that some pull back in growth was to be expected after October’s numbers were boosted by a post-hurricane rebound, especially given the historically high levels of production, order books and employment.

However, Williamson concludes:

“Solid flash PMI numbers for November add to evidence that the US is enjoying sustained robust economic growth in the fourth quarter. The surveys are broadly consistent with the economy growing at an annualised rate of 2.5%, building further on the country’s best growth spell since 2014 seen in the second and third quarters.

“With growth remaining reassuringly robust and price pressures elevated, policymakers will be encouraged that the economy has so far withstood both the headwinds of trade war worries and the steady progress made to date towards normalising interest rates.”

And finally, while Eurozone PMIs at 47-month lows and China’s slump dominates but the US rebound appears to be over…

Global synchronized recovery?

USA ECONOMIC STORIES OF INTEREST

It does not look good for Goldman Sachs. It seems that Blankfein met privately with a shady  Malaysian banker named Low who is purported to be in the centre of all 3 mortgage deals  arranged by Goldman Sachs.  The stated purpose for the bond issuance was for infrastructure inside Malaysia.   Instead the money was confiscated by the Prime Minister with the help of some Goldman Sachs operatives

(courtesy zerohedge)

Blankfein Met Privately With Fugitive At Center Of 1MDB Fraud In Goldman’s HQ

 

 

Former Goldman Sachs CEO Lloyd Blankfein has said he has “no recollection” of meeting corrupt Malaysian financier Jho Low. Maybe this will jog his memory.

Blankfein

Following reports published earlier this month that Blankfein attended two meetings with Low –  an “introductory meeting” in 2009 and another meeting at the Mandarin Hotel in New York in 2013 with about 20 other Goldman bankers (now-jailed ex-Prime Minister Najib Razak also attended these meetings) – the New York Times on Thursday published a report revealing that Blankfein’s involvement in securing 1MDB’s business for the bank was even deeper than previously believed.

Back in December 2012, when the bank was still struggling with the legal fallout from its predatory sales of mortgage-backed securities during the run-up to the financial crisis, Blankfein met privately with Low at Goldman’s headquarters in Lower Manhattan, according to three anonymous sources purportedly familiar with the details of the meeting, theNYT reported. The meeting occurred after the bank’s compliance department had already objected to involving Low in any of its business dealings.

Of course, nearly six years later, Low is now international fugitive, accused of being the mastermind in a multibillion-dollar fraud involving a Malaysian government investment fund.

Needless to say, this is problematic for the recently retired Blankfein, who left the bank on Oct. 1, coincidentally just one month before the DOJ started handing down indictments to Goldman bankers, one of whom has agreed to cooperate against the bank).

Why? Because it undercuts the bank’s PR line that the bribes paid in furtherance of a massive money laundering scheme were the work of a handful of “rogue employees.” The meeting was described as a “one-on-one” sitdown between Blankfein and the corrupt Malaysian banker, who reportedly played a central role in bribing officials in Malaysia, Saudi Arabia and the UAE.

Prosecutors in Malaysia and the US are looking to indict Low for his involvement in the fraud. The banker is currently on the run, living in an undisclosed location while he wages an expensive PR campaign to clear his name.

A PR rep for Blankfein confirmed that he did meet with Low, but that the meeting in question wasn’t one-on-one. Instead, the spokesman said Mohamed Ahmed Badawy Al-Husseiny, the head of an Abu Dhabi investment fund that is now suing Goldman over its involvement with 1MDB, also attended the meeting.

A Goldman spokesman, Jake Siewert, said that Mr. Blankfein had a meeting with Mr. Low on Dec. 14, 2012, but that it was also attended by Mohamed Ahmed Badawy Al-Husseiny, who ran an Abu Dhabi investment fund, Aabar. “Mr. Blankfein had an introductory, high-level meeting in December 2012 with the C.E.O. of Aabar, which was an existing client of the firm,” Mr. Siewert said. “At Aabar’s request, Mr. Low accompanied the C.E.O. to that meeting.”

In the three years between the 2009 and 2012 meetings with Low, Goldman’s compliance department raised multiple red flags surrounding the source of his mysterious wealth. However, Blankfein’s staff ignored these warnings.

In the three years before the 2012 meeting, the bank’s compliance staff had repeatedly rejected Mr. Low’s attempts to become a Goldman client because it was unclear how he had amassed his wealth.

But when Mr. Blankfein’s aides sought information about Mr. Low in preparation for the meeting, a senior investment banker in Asia praised Mr. Low and did not mention the compliance concerns, according to a person who has reviewed internal Goldman emails about the meeting.

Nor did the compliance red flags stop the bank from doing extensive business with 1MDB, which Malaysia’s prime minister had set up in 2008 ostensibly to invest in infrastructure and other projects to improve Malaysians’ daily lives. Goldman ultimately helped 1MDB sell more than $6 billion in bonds to investors, earning about $600 million in fees.

[…]

From the start, Goldman’s relationship with 1MDB unsettled some bank employees, according to interviews with current and former Goldman officials and a person involved in government investigations into the bank. They spoke on the condition of anonymity because of the criminal investigation.

Goldman’s internal compliance team, known as the business intelligence group, had repeatedly blocked Mr. Low from opening an account with the bank’s elite private client group, citing concerns about the source of his money, according to court documents filed by federal prosecutors.

The compliance team also identified Mr. Low as someone Goldman should avoid working with on any 1MDB transactions, according to the court documents.

What’s more, Low’s name didn’t appear on any of the three bond deals that Goldman secured for 1MDB. But according to Tim Leissner’s plea agreement (Leissner is the former Goldman Southeast Asia chief who purportedly spearheaded the 1MDB deals), it was widely known – including, apparently, by Blankfein himself – that Low was a “key intermediary” in all three deals.

The Times also reported details about the efforts of one former Goldman executive, David Ryan, to stop the 1MDB deals over concerns about corruption and oversight. However, Goldman, which had long been weaker in Asia than many of its rivals, pushed ahead, and Ryan was overruled by Blankfein and senior Goldman executive Stephen Scherr, who is now the bank’s chief financial officer.

Goldman eventually completed three bond deals for 1MDB worth $6 billion. Because of the “high risk” associated with the deals, the bank collected 10% of the total amount in fees – some $600 million. The bank underwrote two bond offerings in 2012, and another in 2013.

If nothing else, Blankfein’s involvement makes two things clear: that Morgan Stanley raised a good point when it said in a downgrade of Goldman this week that investors should stay away from Goldman shares, because, as of now, it’s impossible to tell how deep this scandal will cut, and until the dust settles, the risks associated with Goldman are just too great.

Bankfein’s involvement also laid bare the hypocrisy in CEO David Solomon’s faux “outrage” over 1MDB. Solomon claimed that this incident wasn’t representative of Goldman’s culture. But culture is set from the top down. And if the CEO was willing to okay these deals over the objections of the bank’s compliance department, then what does that say about the “culture of corruption” alleged by Leissner?

end
Stock margin margin debt plunges and it seems that there must have been huge margin calls.
As Wolf Richter explains:  this is getting serious…!!!
(courtesy Wolf Richter)

Stock-Market Margin Debt Plunges Most Since Lehman Moment

by Wolf Richter •  • 101 Comments

It gets serious. Margin calls?

No one knows what the total leverage in the stock market is. But we know it’s huge and has surged in past years, based on the limited data we have, and from reports by various brokers about their “securities-based loans” (SBLs), and from individual fiascos when, for example, a $1.6 billion SBL to just one guy blows up. There are many ways to use leverage to fund stock holdings, including credit card loans, HELOCs, loans at the institutional level, loans by companies to its executives to buy the company’s shares, or the super-hot category of SBLs, where brokers lend to their clients. None of them are reported on an overall basis.

The only form of stock market leverage that is reported monthly is “margin debt” – the amount individual and institutional investors borrow from their brokers against their portfolios. Margin debt is subject to well-rehearsed margin calls. And apparently, they have kicked off.

In the ugliest stock-market October anyone can remember, margin debt plunged by $40.5 billion, FINRA (Financial Industry Regulatory Authority) reported this morning – the biggest plunge since November 2008, weeks after Lehman Brothers had filed for bankruptcy:

During the stock market boom since the Financial Crisis, this measure of margin debt has surged from high to high, reaching a peak in May 2018 of $669 billion, up 60% from the pre-Financial Crisis peak in July 2007, and up 117% since January 2012. Since the peak in May, margin debt has dropped by $62 billion (-9.2%). Note the $40.5-billion plunge in October:

In the two-decade scheme of things, the relationship between stock market surges and crashes and margin debt becomes obvious.

Back during the dot-com bubble, dot-com stocks, traded mostly on the Nasdaq, included what today are booming survivors like Amazon [AMZN], barely hangers-on like RealNetworks [RNWK], or goners like eToys.

At the time, these stocks soared by stunning amounts, and people, such as myself, used margin debt, to enhance their returns. When stocks plunged, the margin calls came, and these people had to sell their holdings into an illiquid and plunging market. They ended up selling their best and most liquid stuff first and watched their trash get trashed further.

When it was over by October 2002, the Nasdaq had plunged 78%. Over the same period, margin debt plunged 54%. A similar scenario played out during the Financial Crisis crash. And now we have the “Everything Bubble” to deal with:

Surging margin debt creates stock-market liquidity out of nothing, and this new liquidity is used to buy more stocks. In this manner, rising margin debt is the great accelerator on the way up.

When prices on individual stocks drop sharply – even as the S&P 500 index might decline at a moderate pace – investors, including hedge funds, with margin debt and concentrated holdings in these stocks may find that their portfolio has taken enough of a hit to where they get margin calls.

Now they have to dump stocks to pay down margin debt. This begets further selling pressure, which begets more margin calls, which begets more forced selling….  In this manner, a high level of margin debt turns into the great accelerator on the way down.

But this money from those stock sales doesn’t go into other stocks or another asset class, and it doesn’t sit at the “sidelines” waiting to jump in again at the next dip. Nope, it is used to pay down margin debt. And thus, this liquidity just evaporates without a trace.

October’s plunge in margin debt was just the beginning, a little dimple in the overall chart. Unwinding such a huge pile of margin debt and overall stock-market leverage takes time, years, and they’ll be interrupted with some brief increases that’ll make everyone feel better for a moment.

It gets costly when the entire market depends on a handful of over-hyped mega-caps. Read…  FANGMAN Stocks Plunge 4.4% Today, Down $905 Billion, or 20%, since Aug. 31 

Chaos runs supreme around the world with shootings and stampedes trying to get items
(courtesy zerohedge)

Shootings, Stampedes, & Scraps: Black Friday Chaos Erupts Around The World

Even as more shoppers migrate online, Black Friday is becoming equally notorious for the chaotic scenes and episodic violence as it is for the sales that brought shoppers to the stores in the first place. And this year was no exception.

As shoppers lined up around the world, videos of scuffles and stampedes from Brazil to South Africa spread online. At one mall in Sao Paolo, shoppers fought one another to grab deeply discounted TVs.

Brazil

In one particularly shocking video that, according to the Daily Mail, was taken Friday morning in South Africa, a crowd of frantic shoppers can be seen literally swarming through the entrance of a department store as scuffles break out left and right. Hapless store employees try to direct the crowd into orderly lines to little avail.

At one point, a security guard could be seen holding a gun as the crowd streamed into the store.

Gun

A similar scene played out at a Game store in South Africa…

…Here’s another video showing the chaos from a different perspective:

Embedded video

Muhammad Waqas@Muhamadwaqas29

Black Friday shopping
Kimberley, NC, South Africa
12:00 Mid night#BlackFriday #blackfridaysa

By mid-morning on Friday, compilations of Black Friday fights from years’ past were circulating on social media. They are well worth another watch…

Elsewhere in South Africa, tensions were running high at the Mall of Africa in Gauteng as mall staff struggled to clear massive lines.

Embedded video

Jacaranda News

@JacaNews

#BlackFriday The checkers inside Mall of Africa is already packed.

Back in the US, shots rang out at a mall in Alabama.

Embedded video

m$ginnetta Nation@msginnetta

More exclusive
footage from the Galleria as shots being fired

And this video of a group of teens throwing hands surfaced online.

Embedded video

Mady@viamadison

bro a fight just broke out at the mills!!! #BlackFriday

As one twitter user observed…

Parson Brown@StarkTTT

Black Friday is the greatest day of the year for insomniacs that want to go out and start fights

end

SWAMP STORIES

this will go nowhere, as Goodlatte issues a subpoena to Comey and Lynch to appear before the committee in a closed session. Both Lynch and Comey want an open session so they can state they cannot answer questions due to the stuff being classified…such crooks and why in the 11th hr?

(courtesy zerohedge)

Following Comey Subpoena, Goodlatte Confirms Lynch Ordered To Appear As

Well 

House Judiciary Committee Chairman Bob Goodlatte (R-VA) confirmed in a Friday statement that he has issued subpoenas for former FBI Director James Comey and former US Attorney General Loretta Lynch.

View image on TwitterView image on Twitter

Manu Raju

@mkraju

House Judiciary Chairman Bob Goodlatte, in one of his last acts in power, issued subpoenas for James Comey and Loretta Lynch to come for private depositions on Dec. 3 and Dec. 4, respectively.

The subpoenas came early, as they were previously expected on November 29 and December 5, as reported by CNN‘s Manu Raju.

While Comey revealed his subpoena in a Thanksgiving tweet – stating he plans to resist a “closed door” testimony (during which confidential information could be discussed), Goodlatte’s confirmation is the first we have learned of Lynch’s order to appear.

James Comey

@Comey

Happy Thanksgiving. Got a subpoena from House Republicans. I’m still happy to sit in the light and answer all questions. But I will resist a “closed door” thing because I’ve seen enough of their selective leaking and distortion. Let’s have a hearing and invite everyone to see.

Comey was ordered to appear on December 3 at 10:00 a.m., and Lynch on December 4 at 10:00 a.m. as well.

“The Committees have repeatedly requested to interview Mr. Comey and Ms. Lynch respectively regarding their roles in certain decisions, but they have yet to voluntarily appear,” reads the statement from the Judiciary Committee.

***

In October Comey rejected a request by the House Judiciary Committee to appear at a closed hearing as part of the GOP probe into allegations of political bias at the FBI and Department of Justice, according to Politico.

“Mr. Comey respectfully declines your request for a private interview,” said Comey’s attorney, David Kelly, in a response to the request.

The Judiciary Committee, chaired by Bob Goodlatte (R-VA) didn’t appreciate Comey’s response.

We have invited Mr. Comey to come in for a transcribed interview and we are prepared to issue a subpoena to compel his appearance,” said a committee aide.

Goodlatte invited Comey to testify as part of a last-minute flurry of requests for high-profile Obama administration FBI and Justice Department leaders, including former Attorney General Loretta Lynch and former Deputy Attorney General Sally Yates. He threatened to subpoena them if they didn’t come in voluntarily. –Politico

The House committee has been investigating whether overwhelming anti-Trump bias with in the FBI and Department of Justice translated to their investigations of the President during and after the 2016 US election.

SWAMP STORIES/MAJOR STORIES//THE KING REPORT
END
Let us close out the week with this offering courtesy of Greg Hunter
(courtesy Greg Hunter)

Greg Hunter Weekly News Wrap-Up & Thanksgiving Message 11.23.18

By Greg Hunter On November 22, 2018 In Weekly News Wrap-Ups

By Greg Hunter’s USAWatchdog.com (WNW 361 11.22.18)

This Wrap-Up will talk about the upcoming problems on the U.S. southern border, the dark clouds I see coming for the markets and the banks. I also want to talk about what I think is the Democrat plan for President Obama’s third term. Oh, and the Clintons and their global charity fraud is not going away as Congress will hold hearings before it flips to Democrat control.

Still, there is much to be thankful for, and I’ll take about that too.

After the Interview:

Catherine Austin Fitts, founder of Solari.com, will be the guest for the early Sunday Release.

Video Link

https://usawatchdog.com/greg-hunter-weekly-news-wrap- up-thanksgiving-message-11-23-18/

I HOPE TO SEE YOU ON MONDAY IF ALL GOES WELL
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