DEC 20/2018/DOW DOWN 464 POINTS AND THE NASDAQ DOWN 108 POINTS/GOLD UP $11.50 TO $1264.65//SILVER IS UP 4 CENTS TO $14.79/GOLDMAN SACHS CONTINUES TO RECEIVE (STOP) GOLD COMEX CONTRACTS/USA SET TO ISSUE NEW SANCTIONS ON THE CHINESE FOR CYBER ESPIONAGE/IN THE USA: BIG FUNDS ARE LEAVING THE LOAN ARENA BIG TIME (CLO’S)/TRUMP THROWS THE HOUSE IN DISARRAY BY REFUSING TO SIGN CONTINUING RESOLUTION SO AS TO CONTINUE FUNDING GOVERNMENT UNTIL FEB 8: HE WANTS HIS WALL/MORE SWAMP STORIES FOR YOU TONIGHT/

 

 

 

GOLD: $1264.65 UP $11.50 (COMEX TO COMEX CLOSINGS)

Silver:   $14.79 UP 4 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  1260.00

 

silver: $14.77

 

Again, Goldman Sachs. jpm takes 95% of the issued gold contracts. 80/84

 

EXCHANGE: COMEX
CONTRACT: DECEMBER 2018 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,252.100000000 USD
INTENT DATE: 12/19/2018 DELIVERY DATE: 12/21/2018
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 H GOLDMAN 80
323 C HSBC 11
657 C MORGAN STANLEY 4
661 C JP MORGAN 38
737 C ADVANTAGE 35
____________________________________________________________________________________________

TOTAL: 84 84
MONTH TO DATE: 7,361

 

 

 

 

 

For comex gold and silver:

DEC

 

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  DEC CONTRACT: 84 NOTICE(S) FOR 8400 OZ (0.,2612 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  7361 NOTICES FOR 736,100 OZ  (22.8958 TONNES)

 

 

SILVER

 

FOR DECEMBER

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

136 NOTICE(S) FILED TODAY FOR  680,000  OZ/

 

total number of notices filed so far this month: 4206 for 21,030,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE  $3998:  UP 332

 

Bitcoin: FINAL EVENING TRADE: $3909  up 245.00 

 

end

 

XXXX

 

 

Let us have a look at the data for today

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In silver, the total OPEN INTEREST FELL BY A TINY SIZED  288 CONTRACTS FROM 173,007 DOWN TO 172,577 DESPITE YESTERDAY’S 10 CENT GAIN IN SILVER PRICING AT THE COMEXTODAY 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 AS WE NOW HAVE JUST LESS THAN 20 MILLION OZ STANDING IN DECEMBER. 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:

1134 EFP’S FOR DECEMBER AND 0 FOR MARCH AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1134 CONTRACTS. WITH THE TRANSFER OF 1134 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 1134 EFP CONTRACTS TRANSLATES INTO 5.67 MILLION OZ  ACCOMPANYING:

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

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST SIX MONTHS:

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING FOR NOVEMBER AND

NOW 21.040 MILLION OZ INITIALLY STAND FOR DECEMBER.

 

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF DEC: 23,044 CONTRACTS (FOR 14 TRADING DAYS TOTAL 23,044 CONTRACTS) OR 115.220 MILLION OZ: (AVERAGE PER DAY: 1646 CONTRACTS OR 8.230 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF DEC:  115.220 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 16.45% 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:           2,792.28    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

ACCUMULATION FOR NOVEMBER /2018:                                 247.18         MILLION OZ

RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 288 DESPITE THE 10 CENT LOSS IN SILVER PRICING AT THE COMEX //YESTERDAY.. AS THE BOYS CONTINUE WITH THEIR CUSTOMARY MIGRATION OVER TO  ETFS AT THE START OF AN ACTIVE DELIVERY MONTH. THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 637 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 GAINED A FAIR SIZED: 846 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1134 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 288 OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 10 CENT GAIN IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.65 WITH RESPECT TO YESTERDAY’S TRADING. YET WE HAD A GIGANTIC AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY 

 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. .875 BILLION OZ TO BE EXACT or 125% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DEC MONTH/ THEY FILED AT THE COMEX: 136 NOTICE(S) FOR 680,000 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:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./AND NOW DEC. AT 21.205 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 ROSE BY A STRONG SIZED 5189 CONTRACTS UP TO 417,674 WITH THE GAIN IN THE COMEX GOLD PRICE/(A GAIN IN PRICE OF $3.15//.YESTERDAY’S TRADING) 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG  SIZED 13,284 CONTRACTS:

 

DECEMBER HAD AN ISSUANCE OF 13,284 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 417,674. 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 HUMONGOUS SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 18,473 CONTRACTS:  5189 OI CONTRACTS INCREASED AT THE COMEX AND 13.284 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 18,473 CONTRACTS OR 1,847,300 OZ = 57.46 TONNES. AND ALL OF THIS HUGE DEMAND OCCURRED WITH A GAIN IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $3.15???

 

 

 

 

YESTERDAY, WE HAD 6039 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DEC : 122,502 CONTRACTS OR 12,250,200 OZ OR 381.03 TONNES (14 TRADING DAYS AND THUS AVERAGING: 8750 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 14 TRADING DAYS IN  TONNES: 381.03 TONNES

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

THUS EFP TRANSFERS REPRESENTS 381.03/2550 x 100% TONNES = 13.45% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     7151.98  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)

ACCUMULATION OF GOLD EFP FOR NOV 2018:                        552.88 TONNES (21 TRADING DAYS)

 

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

Result: A STRONG SIZED INCREASE IN OI AT THE COMEX OF 5189 WITH THE GAIN  IN PRICING ($1.50) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A VERY STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 13,284 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 13,284 EFP CONTRACTS ISSUED, WE HAD A HUMONGOUS GAIN OF 18,473 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

13,284 CONTRACTS MOVE TO LONDON AND 5189 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 57.46 TONNES). ..AND ALL OF THIS  DEMAND OCCURRED WITH THE GAIN OF $3.15 IN YESTERDAY’S TRADING AT THE COMEX??

 

 

we had: 84 notice(s) filed upon for 8400 oz of gold at the comex.

FILED LATE

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $11.50 TODAY (PRE FOMC)

 

NO CHANGES IN GOLD INVENTORY

 

 

 

 

 

 

 

 

 

/GLD INVENTORY   771.79 TONNES

Inventory rests tonight: 771.79 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 UP 4 CENTS  TODAY:

 

A HUGE CHANGE IN SILVER INVENTORY/

A WITHDRAWAL OF 1.408 MILLION OZ

MAKES NO SENSE..SLV AND GLD ARE CRIMINAL ORGANIZATIONS

 

 

/INVENTORY RESTS AT 317.139 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 SMALL SIZED 288 CONTRACTS from 172,860 DOWN TO 172,577  AND MOVING 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:

 

1184 CONTRACTS FOR DECEMBER. 0 CONTRACTS FOR MARCH AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1184 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 132 CONTRACTS TO THE 1134 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A FAIR GAIN  OF 1002 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 5.01 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.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER. AND NOW 21.205 MILLION OZ  STANDING IN DECEMBER.

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 10 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING// YESTERDAY.BUT WE ALSO HAD ANOTHER GOOD SIZED 1134 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

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 13.29 POINTS OR 0.52% //Hang Sang CLOSED DOWN 241.86 POINTS OR 0.94% //The Nikkei closed DOWN 595/34 OR 2.84%/ Australia’s all ordinaires CLOSED DOWN 1.36%  /Chinese yuan (ONSHORE) closed UP  at 6.8865 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 46.91 dollars per barrel for WTI and 55.55 for Brent. Stocks in Europe OPENED RED 

//ONSHORE YUAN CLOSED UP AT 6.8865AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8902: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED   : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

Seems that the honeymoon is now over between the USA and North Korea as the Kim demands that the USA must eliminate the nuclear threat on the Peninsula first

( zerohedge)

 

 

 

b) REPORT ON JAPAN

 

 

3 C/  CHINA

For those of you who think that we might get a deal with China, guess again:  the USA and allies are planning a massive unprecedented sanctions against Beijing over cyber espionage

( zerohedge)

4/EUROPEAN AFFAIRS

i)EUROPE

Sanctions are having a chilling effect on investors in Europe as they are afraid to invest in companies that may be dealing with Russian entities

(courtesy zerohedge)

ii)SCARY!! Gatwick shut down for 13 hrs as mystery drones surround the perimeter of the airport..this forces mass cancellation.
(courtesy zerohedge)
iii)The Bank of England keeps rates unchanged as they warn that BREXIT uncertainty has intensified.  They expect growth in the third quarter to fall from .6% down to a measly .2%
(courtesy zerohedge)

 

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

TURKEY/SYRIA/USA/RUSSIA

An excellent commentary explaining how Turkey turned towards Russia vacating the USA.  With Syria gaining strength on the backs of Russian support, the alliance of Saudi Arabia, Israel and the USA faltered.  This is why the USA is leaving Syria: there is nothing more to be gained here.

(courtesy Tom Luongo)

 

6. GLOBAL ISSUES

i)MALAYSIA/GOLDMAN SACHS

this is good:  Malaysia wants Goldman Sachs to appear in court to answer to criminal charges.

Popcorn available for front seats….

(courtesy zerohedge)

ii)ROMANIA

Romania needs to shore up its deficit so the government is proposing to bring in an additional 10 billion lei tax bill.

Investors greeted that news by causing its stock market to plunge by 12%

(courtesy zerohedge)

7. OIL ISSUES

 

 

 

8 EMERGING MARKET ISSUES

i)Venezuela

 

 

 

9. PHYSICAL MARKETS

i)This data point is very important: we now have a huge 7.9 trillion dollars worth of paper currency trading with a negative yield.  This causes money to flow to the USA and they are also a basket case.  The problem is that the USA is raising rates which causes bond prices to fall. The USA needs a huge amount of dollars to fund its 1 trillion dollar deficit and that is causing a scarcity of global dollars (in Europe these dollars are called Eurodollars).
(courtesy Bloomberg/GATA)

ii)We pointed this out to you on Monday:  Chinese holdings of USA treasuries continue to fall and it now regissters 1.14 trillion dollars from 1.15 trillion.(Bloomberg/GATA)

iii)Craig Hemke: writes that there may be evidence that the bullion banks are not trading gold/silver for their own accounts but for governments.  Both Chris Powell and I agree on this

( Craig Hemke/Sprott/GATA)

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

 

 

MARKET TRADING

 

ii)Market data/

a)Soft data Philly mfg index tumbles to almost 3 yr low.  We are continually now getting awful readings even from soft data accounts

( zerohedge)

b)This is alarming:  we now are witnessing big funds liquidating as panic grips the loan market.  We highlighted this to you early in the week.  Huge funds are liquidating as they are receiving redemption notices from panic investors

( zerohedge)

 

 

 

 

iii)USA ECONOMIC/GENERAL STORIES

a)This should pass all levels of government:  the Senate passes a stopgap bill to avert a government shutdown and yet no wall funding.  Trump will sign this which will infuriate the tea party republicans

( zerohedge)

b)Housing is such an important part of the GDP.  We now witness Orlando home sales tank as inventory floods its market..a huge housing slowdown here

(courtesy zerohedge)

c)Billionaire hedge fund operator David Tepper urges everyone to move to cash as the Fed put is dead.

( zerohedge)

d)Graham Summers accurately predicted that the Fed will raise rates and will continue to prick the bubble as he wants to normalize things. He is certainly correct.

( Graham Summers  Part 3)

iv)SWAMP STORIES

Trump reverses: he wants a Trump wall and he will veto the CR unless he gets a perfect border security

i.e. a steel wall

( zerohedge)

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

Let us head over to the comex:

 

The total gold comex open interest ROSE BY A CONSIDERABLE SIZED 5189 CONTRACTS UP to an OI level 417,674 WITH THE GAIN IN THE PRICE OF GOLD ($3.15) IN YESTERDAY’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  ACTIVE DELIVERY MONTH OF DEC..  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 13,284 EFP CONTRACTS WERE ISSUED:

FOR DECEMBER:  13284 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  13,284 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:  18,473 TOTAL CONTRACTS IN THAT 13,284 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 5189 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 18,473 contracts OR 1,847,300 OZ OR 57.46 TONNES.

 

We are now in the active contract month of December and we now have a total of 213 contracts stand in December so we had a loss of 174 contracts.  We had 1 notice served yesterday, so we LOST 173 contracts or 17,300 oz will NOT stand as these guys  morphed into London based forwards and as well as accepting a fiat bonus.

 

 

The next delivery month after December is January which saw it FALL TO 2226 FOR A LOSS OF 238 CONTRACTS.  February GAINED A CONSIDERABLE 3966 contracts to stand at 307,583 contracts

 

FOR COMPARISON TO THE 2017 CONTRACT MONTH:

 

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.

 

 

 

WE HAD 84 NOTICES FILED AT THE COMEX FOR 8400 OZ. (0.037 tonnes)

 

 

 

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And now for the wild silver comex results.

Total silver OI fell BY 288 CONTRACTS FROM 172,860 DOWN TO 172,577 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S OI COMEX GAIN  OCCURRED DESPITE A 10 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF DECEMBER AND, WE WERE  INFORMED THAT WE HAD A GOOD SIZED 1134 EFP CONTRACTS:

 

FOR DECEMBER: 1134 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: 1134.  ON A NET BASIS WE GAINED 846 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A  288 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1134 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:   846 CONTRACTS...AND ALL OF THIS DEMAND OCCURRED WITH A 10 CENT GAIN IN PRICING// YESTERDAY

 

 

 

 

We are now in the non active delivery month of DECEMBER and here in this front month of December we now have 171 contracts standing for a LOSS of 86 contracts.  We had 119 contracts stand for delivery yesterday so we gained 33 contracts or an additional 165,000 oz will stand for delivery as these guys refused to morph into London based forwards as well as negating a fiat bonus.

 

After  December we have the non active  January contract month and here we saw a LOSS of 56 contracts up to 1704 contracts.  February saw a 3 contract loss to stand at 117. March, the next big delivery month after December saw a LOSS of 678 contracts down to 141,184.

FOR COMPARISON TO THE COMEX 2017 CONTRACT MONTH:

 

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 136 notice(s) filed for 680,000 OZ for the DEC, 2018 COMEX contract for silver

 

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 293,611 contracts,

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  284,635  contracts

volumes at the comex for both gold and silver are much less than usual.

 

 

 

 

 

 

 

 

 

 

 

INITIAL standings for  DEC/GOLD

DEC 20-/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

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
84 notice(s)
 8400 OZ
No of oz to be served (notices)
129 contracts
(12,900 oz)
Total monthly oz gold served (contracts) so far this month
7361 notices
736,100 OZ
22.8958 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 entries:

 

 

total dealer deposits: nil  oz

total dealer withdrawals: 0 oz

We had 0 kilobar entries

 

we had 0 deposits into the customer account

 

total gold customer deposits;  nil oz

 

we had 0 gold withdrawals from the customer account:

 

total gold withdrawing from the customer;  NIL oz

 

we had 0  adjustments….

FOR THE DEC 2018 CONTRACT MONTH)

Today, 35 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 84 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 and 80 notices by the squid  (Goldman Sachs)

 

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To calculate the INITIAL total number of gold ounces standing for the DEC/2018. contract month, we take the total number of notices filed so far for the month (7361) x 100 oz , to which we add the difference between the open interest for the front month of DEC. (213 contract) minus the number of notices served upon today (84 x 100 oz per contract) equals 749,000 OZ OR 23.29 TONNES) the number of ounces standing in this  active month of DECEMBER

 

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

No of notices served (7361 x 100 oz)  + {213)OI for the front month minus the number of notices served upon today (84 x 100 oz )which equals 749,000 oz standing OR 23.29 TONNES in this  active delivery month of DECEMBER.

WE LOST 173 CONTRACTS OR 17,300 OZ WILL NOT  STAND AT THE COMEX AS THEY MORPHED INTO A LONDON BASED FORWARDS AS WELL AS RECEIVING A FIAT BONUS.

 

 

 

 

 

THERE ARE ONLY 22.417 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 23.29 TONNES STANDING FOR DECEMBER

 

 

total registered or dealer gold:  720,731.855 oz or   22.417 tonnes*
total registered and eligible (customer) gold;   8,338,693.721 oz 259.368 tonnes
*however we have 22.8958 tonnes of gold ALREADY SERVED UPON against dealer inventory of 22.417 tonnes and so far we have had no settlements  as of yet.  We generally get a settlement when we see an adjustment from the dealer side to the customer side..
we have a total of 23.29 tonnes of gold standing for metal against only 22.417 tonnes of dealer gold and .182 tonnes has been settled so far…(Dec 17)

IN THE LAST 27 MONTHS 95 NET TONNES HAS LEFT THE COMEX.

 

end

And now for silver

AND NOW THE NOV DELIVERY MONTH

DEC INITIAL standings/SILVER

DEC 20, 2018
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
1,260,523.500 oz
CNT
JPM

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
341,202.300
oz
CNT
No of oz served today (contracts)
136
CONTRACT(S)
680,000 OZ)
No of oz to be served (notices)
35 contracts
175,000 oz)
Total monthly oz silver served (contracts) 4206 contracts

(21,030,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

we had 0 inventory movement at the dealer side of things

 

total dealer deposits: nil oz

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 150.55 million oz of  total silver inventory or 51.03% of all official comex silver. (152.0 million/292 million)

 

ii) Into CNT:  341,202.300  oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today: 341,202.300   oz

we had 2 withdrawals out of the customer account:
iii)Out of CNT: 66,531.500 oz
v) Out of JPMorgan:  1,193,992.000 oz ??

 

 

 

 

 

total withdrawals: 1,260,523.500   oz

 

we had 2 adjustments and this is what I look for in settlements..we got it in silver but not in gold yet.

i) Out of Brinks:  136,554.350 oz was adjusted out of the dealer and this landed into  the customer account of Brinks

and this would be deemed a settlement

ii) Out of HSBC:  513,252.658 oz was adjusted out of the customer account and this landed into the dealer account of HSBC

 

 

total dealer silver:  83.339 million

total dealer + customer silver:  294.784 million oz

 

 

 

 

The total number of notices filed today for the DEC 2018. contract month is represented by 136 contract(s) FOR 680,000  oz

To calculate the number of silver ounces that will stand for delivery in DEC., we take the total number of notices filed for the month so far at 4206 x 5,000 oz = 21,030,000 oz to which we add the difference between the open interest for the front month of DEC. (171) and the number of notices served upon today (136x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the DEC/2018 contract month: 4206(notices served so far)x 5000 oz + OI for front month of DEC( 171) -number of notices served upon today (136)x 5000 oz equals 21,205,000 oz of silver standing for the DEC contract month.  This is a strong number of oz standing for an off delivery month.

We GAINED 33 contracts or 165,000 additional oz will stand and these guys refused to accept a London based forward as well as negate receiving a fiat bonus. The EFP route is nothing but a cash settlement process and it is done in London to avoid detection. It is becoming quite obvious that the bankers are in urgent need of silver as we witness the constant queue jumping in silver these past 20 months.

 

 

 

 

 

 

 

 

 

 

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ESTIMATED VOLUME FOR TODAY:  72,247 CONTRACTS  … 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 74,582 CONTRACTS… 

volumes at the comex very light considering the break out in silver.

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 74,582 CONTRACTS EQUATES to 372 million OZ  53.2% 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 -3.77-% (DEC 20/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.73% to NAV (DEC 20 /2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.77%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.67/TRADING 12.17/DISCOUNT 3.77

END

And now the Gold inventory at the GLD/

DEC 20/WITH GOLD UP $11.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY AT 771.79 TONNES

DEC 19/WITH GOLD UP $3.15 TODAY: A HUGE DEPOSIT OF 8.23 TONNES OF GOLD ENTERED THE GLD/INVENTORY RESTS AT 771.79 TONNES

DEC 18/WITH GOLD UP $1.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC  17 WITH GOLD UP $10.60 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC 14/WITH GOLD DOWN $5.60: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC 13/WITH GOLD DOWN $2.00: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC 12/WITH GOLD UP $3.05 A HUGE DEPOSIT OF 3.24 TONNES OF GOLD INTO THE GLD/SOMETHING IS BURNING…/INVENTORY RESTS AT 763.56 TONNES

DEC 11/WITH GOLD DOWN $4.85 A SMALL DEPOSIT OF .59 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 760.32 TONNES

DEC 10/WITH GOLD DOWN $3.05 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 759.73 TONNES

DEC 7/WITH GOLD UP $8.35/A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.51 TONNES/INVENTORY RESTS AT 759.73 TONNES

DEC 6/WITH GOLD UP $1.60: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 758.21 TONNES

DEC 5/WITH GOLD DOWN $4.25: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 758.21 TONNES

DEC 4/WITH GOLD UP $7.25: A HUGE WITHDRAWAL OF 3.53 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 758.21 TONNES

DEC 3/WITH GOLD UP $13.25: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 30/WITH GOLD DOWN $4.00: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 29/WITH GOLD UP $1.30: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 28/WITH GOLD UP $9.45 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 27/WITH GOLD DOWN $8.60 A WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 26/WITH GOLD DOWN 65 CENTS: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 762.92 TONNES

 

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

 

 

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DEC 20.2018/ Inventory rests tonight at 771.79 tonnes

*IN LAST 520 TRADING DAYS: 163.37 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 420 TRADING DAYS: A NET 3.37 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

DEC 20/WITH SILVER UP 4 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.408 MILLION OZ OF SILVER FROM THE SLV/ INV. RESTS AT 317.139 MILLION OZ/

DEC 19/WITH SILVER UP 10 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 751,000 OZ INTO THE SLV./INVENTORY RESTS AT 318.547 MILLION OZ/

DEC 18/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.796 MILLION OZ/

DEC 17/WITH SILVER UP 13 CENTS TODAY/ A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 939,000 OZ FROM THE SLV/INVENTORY RESTS AT 317.796 MILLION OZ/.

DEC 14/WITH SILVER DOWN 22 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 13/WITH SILVER UP 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 12/WITH SILVER UP 22 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ

DEC 11/WITH SILVER UP ONE CENT TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY ESTS AT 318.735 MILLION OZ/

DEC 10/WITH SILVER DOWN 8 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 7/WITH SILVER UP 16 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 6/WITH SILVER DOWN 5 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.817 MILLION OZ//INVENTORY LOWERS TO 318.735 MILLION OZ/

DEC 5/WITH SILVER DOWN 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 321.552 MILLION OZ.

DEC 4/WITH SILVER UP 10 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV:A WITHDRAWAL OF 134,000 OZ//INVENTORY RESTS AT 321.552 MILLION OZ/

DEC 3/WITH SILVER UP 29 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.686 MILLION OZ/

NOV 30/WITH SILVER DOWN 17 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.22 MILLION OZ FROM THE SLV /INVENTORY RESTS AT 321.686 MILLION OZ/

NOV 29/WITH SILVER DOWN 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 322.906 MILLION OZ.

NOV 28/WITH SILVER UP 23 CENTS TODAY: A DEPOSIT OF 188,000 OZ/INVENTORY RESTS AT 322.906 MILLION OZ/

NOV 27/WITH SILVER DOWN 14 CENTS TODAY: A HUGE WITHDRAWAL OF 2.301 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 322.718 MILLION OZ/

NOV 26/WITH SILVER DOWN ONE CENT: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 325.019 MILLION OZ

NOV 23/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/

 

 

DEC 20/2018:

 

Inventory 317.139 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

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

YOUR DATA…..

6 Month MM GOFO 2.51/ and libor 6 month duration 2.87

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

G0LD LENDING RATE: + .36

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.69%

LIBOR FOR 12 MONTH DURATION: 3.05

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.36

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

 

Gold Prices Likely To Go Higher In 2019 After 4% Gain In Q4 2018

by Frank Holmes of USFunds.com

Gold traders appear excited about gold again as stocks are on pace for their worst year since 2008, and their worst December since 1931.

Bullish bets on the yellow metal outnumbered bearish ones for the week ended December 11, resulting in the first instance of net positive contracts since July, according to Commodity Futures Trading Commission (CFTC) data.

As many of you know, December has historically been a strong month for stocks. But fears of a slowdown in global growth, rising interest rates and the U.S.-China trade war have prompted many investors to pare down their stocks in favor of gold, often perceived as a safe haven in times of economic and financial instability.

Now, as we head into 2019, gold “is poised to take the bull-market baton from the dollar and stocks,” writes Bloomberg  Commodity Strategist Mike McGlone. Although the U.S. dollar has been strengthening since September, which would ordinarily dent the price of gold, the yellow metal has shown “divergent strength on the back of increasing equity-market volatility,” McGlone adds.

Gold and Metal Miners Have Crushed the Market

So far this quarter, gold has crushed the market, returning more than 5 percent as of December 18, compared to negative 11.9 percent for the S&P 500 Index. Gold miners, though, as measured by the NYSE Arca Gold Miners Index, have been the top performer, climbing nearly 12 percent.

We could see even higher gold and gold equity prices next year and beyond, but the dollar will likely need to come down. For that to happen, the Federal Reserve will need to call time out on its quarterly rate hikes. Many industry leaders now support this idea, including Jeffrey Gundlach and Stanley Druckenmiller, not to mention President Donald Trump.

“I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make another mistake,” Trump warned in a tweet Tuesday morning. “Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!”

The WSJ editorial Trump refers to makes the case that “economic and financial signals suggest [Fed Chairman Jerome Powell] should pause,” a line the president has been repeating for months now.

 

Investment Case For Gold In Next 5 Years Is Attractive

Looking ahead five years, the investment case for gold and gold miners gets even more attractive. London-based precious metals consultancy firm Metals Focus projects a gradual increase in gold consumption between now and 2023, supported by strong jewelry demand and physical investment.

“From late 2019 onwards,” Metals Focus analysts write, “we expect a bull market in gold to emerge, which in our view will remain in place for the next two to three years.”

Greenspan Urges Investors to “Run for Cover”

In an interview this week with CNN, former Federal Reserve Chairman (and gold fan) Alan Greenspan urged investors to “run for cover,” as he doesn’t see the market moving much higher than they are now.

“It would be very surprising to see it sort of stabilize here, and then take off,” Greenspan said.

I believe the best way to “run for cover” is with gold and short-term, tax-free municipal bonds. As for gold, I always recommend a 10 percent weighting, with 5 percent in bullion, coins and jewelry, the other 5 percent in high-quality gold stocks, mutual funds and ETFs.

Courtesy of Frank Holmes and USFunds.com

 

CHRISTMAS SCHEDULE

We will be closed from 24th of December (next Monday), and reopen again on the 2nd of January (Wednesday). Our last trading day will be on the 21st of December (tomorrow) and insured deliveries will begin again in the first week of January 2019.

We wish all our subscribers & clients a Happy Christmas and a Healthy & Wealthy 2019

 


Secure Storage Ireland – Click here for information

News and Commentary

Gold settles higher as Fed lifts a key interest rate (MarketWatch.com)

Stocks Retreat on Fears of Fed Mistake; Oil Slumps: Markets Wrap (Bloomberg.com)

Asia Stock Carnage Deepens as Hopes Fizzle With Policy Updates (Bloomberg.com)

Gold steadies, Fed signals ‘some’ rate hikes for 2019 (Reuters.com)

Fed lifts rates, now sees ‘some further’ hikes ahead (Reuters.com)


Source: Bloomberg

Gold Bulls Just Regained the Upper Hand (USFunds.com)

$7.9 trillion pile of negative-yielding debt is growing fast (Bloomberg.com)

China’s holdings of U.S. Treasuries fall to lowest since May 2017 (Bloomberg.com)

Investors Should ‘Run For Cover’ – Greenspan Warns after Yellen, IMF, BIS Warnings (CNBC.com)

Alan Greenspan Warns Investors: Bad Economic Times Are Looming (Fortune.com)

Jarring FedEx Outlook Cut Suggests “Severe Global Recession” (ZeroHedge.com)

France and the Crisis of Democracies (FPCS.es)

Brexit Bulletin: The Predictions Edition (Bloomberg.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA PM)

19 Dec: USD 1,248.60, GBP 986.77 & EUR 1,094.65 per ounce
18 Dec: USD 1,248.80, GBP 987.43 & EUR 1,096.70 per ounce
17 Dec: USD 1,239.10, GBP 982.61 & EUR 1,093.13 per ounce
14 Dec: USD 1,239.15, GBP 983.39 & EUR 1,096.90 per ounce
13 Dec: USD 1,244.45, GBP 982.87 & EUR 1,093.62 per ounce
12 Dec: USD 1,244.75, GBP 993.31 & EUR 1,098.24 per ounce

Silver Prices (LBMA)

19 Dec: USD 14.65, GBP 11.58 & EUR 12.84 per ounce
18 Dec: USD 14.66, GBP 11.55 & EUR 12.86 per ounce
17 Dec: USD 14.60, GBP 11.55 & EUR 12.86 per ounce
14 Dec: USD 14.58, GBP 11.61 & EUR 12.92 per ounce
13 Dec: USD 14.68, GBP 11.60 & EUR 12.90 per ounce
12 Dec: USD 14.66, GBP 11.68 & EUR 12.93 per ounce


Recent Market Updates

– Everything Bubble Started Bursting In 2018 – GoldCore Video
– Global Financial System Is ‘Unstable’ and Risk Of ‘Clearing System Seizure’, BIS Warns
– Gold Flowing From West To East and Now To Goldman Sachs
– Brexit Risk Sees Gold Rise To Test EUR 1,100 Per Ounce
– Yellen Warns Another Financial Crisis Is Brewing
– Gold Krugerrand Coin Worth $1,200 Donated To Charity Again
– EU Recession Imminent – Euro Disunion as Brexit, Italy and End of QE Loom
– Gold and Silver Gained 2% and 3% Last Week While Stocks Dropped Nearly 5%
– Irish Central Bank Refuses To Discuss Gold Reserves In Bank of England Vaults

Watch on Youtube here

Mark O’Byrne
 
END
 
ii) GATA stories
This data point is very important: we now have a huge 7.9 trillion dollars worth of paper currency trading with a negative yield.  This causes money to flow to the USA and they are also a basket case.  The problem is that the USA is raising rates which causes bond prices to fall. The USA needs a huge amount of dollars to fund its 1 trillion dollar deficit and that is causing a scarcity of global dollars (in Europe these dollars are called Eurodollars).
(courtesy Bloomberg/GATA)

The $7.9 trillion pile of negative-yielding debt is growing fast

 Section: 

By Ruth Carson and Chikako Mogi
Bloomberg News
Tuesday, December 18, 2018

For all the hand wringing over the end of ultra-loose monetary policy, the world just doesn’t seem able to shake its addiction to negative-yielding debt.

Only two months ago speculation was rife that the Bank of Japan would have to step in to stop yields from rising. Now rates on benchmark bonds are poised to drop back below zero. In Germany there are no positive yields as far as seven years along the curve. And globally, bonds with negative yields total $7.9 trillion — close to levels seen at the start of the year — and up from the 2017 low of $5.7 trillion reached in October.

Bonds are back in demand after a sea change in sentiment swept financial markets in recent weeks as the outlook for growth decisively worsened. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-12-18/japan-yields-on-cusp-…

end

We pointed this out to you on Monday:  Chinese holdings of USA treasuries continue to fall and it now regissters 1.14 trillion dollars from 1.15 trillion.

(Bloomberg/GATA)

China’s holdings of U.S. Treasuries fall to lowest since May 2017

 Section: 

By Andrew Mayeda and Katherine Greifeld
Bloomberg News
Monday, December 17, 2018

China’s holdings of U.S. Treasuries fell to the lowest in a year and a half, as its foreign currency reserves declined and the yuan weakened near a key symbolic level.

China’s holdings of notes, bills, and bonds dropped for a fifth straight month to $1.14 trillion in October, from $1.15 trillion in September, according to data from the Treasury Department released on Monday. That’s the lowest level since May 2017. China remains the biggest foreign creditor, followed by Japan, whose holdings slipped by $9.5 billion to $1.02 trillion. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-12-17/china-s-u-s-treasurie…

end

Craig Hemke: writes that there may be evidence that the bullion banks are not trading gold/silver for their own accounts but for governments.  Both Chris Powell and I agree on this

(courtesy Craig Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: The endless war on gold and silver

 Section: 

3:56p ET Wednesday, December 19, 2018

Dear Friend of GATA and Gold:

The bullion banks trading the gold and silver futures markets, the TF Metal Report’s Craig Hemke writes today at Sprott Money, have just let the managed money funds off easy in covering their short positions in the monetary metals so the short covering would not boost prices much. The banks, Hemke writes, could have squeezed the shorts much more violently and made a lot more money.

This, Hemke writes, is more evidence that the bullion banks are not and never will be on the side of gold and silver investors and rising metal prices.

This also might be evidence that the bullion banks are not really trading for their own accounts but for the U.S. government and other governments, whose objective is not to make money by trading, since they make money by printing and keyboarding it, but to protect the desirability of the money they create by hobbling its potential competitors.

Hemke’s analysis is headlined “The Endless War on Gold and Silver” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/the-endless-war-on-gold-and-silver.html

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




iii) Other Physical stories
Due to the criminal conviction of trader Edmonds, the USA prosecution is seeking to halt the civil lawsuit. I was misinformed: all discoveries in a civil suit are public and because of that, the prosecution gives the defendants the right to plead the 5th if their testimony incriminates them
(courtesy zerohedge/Chris Powell)

US seeks halt in civil lawsuit accusing JP Morgan of manipulating metals market, citing criminal case

  • The U.S. wants a federal judge to halt a civil lawsuit accusing J. P. Morgan of manipulating precious metals markets. The Justice Department cited an ongoing criminal case as its reason for the request.
  • A former J. P. Morgan trader pleaded guilty in Connecticut last month to manipulation charges.
  • In the guilty plea, the trader said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors.

A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

Amr Alfiky | Reuters
A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

The Justice Department is asking a judge to put the brakes on a civil lawsuit against J. P. Morgan Chase, citing an ongoing probe into a “related criminal case” that involves alleged manipulation of precious metals markets.

The department wants a six-month postponement in the proceedings of the civil lawsuit, which was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders. The government also says it could ask for a longer delay in the case, according to a court filing on Monday.

The move comes days after Shak’s lawyer, David Kovel, sought permission to reopen questioning of two former J. P. Morgan traders and the bank’s current global head of base and precious metals trading.

Kovel, in making the request with the Manhattan federal judge in the civil case, cited last month’s guilty plea by one of those former traders, John Edmonds, in federal court in Connecticut.

Edmonds admitted making bogus bids on precious metals contracts while working at the bank from 2009 to 2015.

Neither J. P. Morgan Chase nor Kovel’s clients have opposed the Justice Department’s request.

In arguing for a delay, the Justice Department said Shak’s lawsuit is “related” to Edmonds’ criminal case and that Edmonds has “pleaded guilty and acknowledged his own participation in such conduct, as well as that of other traders.”

“Edmonds awaits sentencing, but the broader investigation is ongoing,” the Justice Department said. The U.S. wants to delay the civil case “to protect the integrity of its ongoing criminal investigation,” it said.

J. P. Morgan did not respond to a request for comment by CNBC. Kovel declined to comment.

Tuesday night, after this story first was published, Judge Paul Engelmayer ordered the federal prosecutors to explain in detail by Monday why postponing proceedings in the civil lawsuit would not harm those involved, and why reopening questioning “would be detrimental to the Government’s ongoing criminal investigation.”

Englemayer also wrote that he regards Edmonds’ guilty plea “as potentially highly consequential” to the civil case.

In his guilty plea, the 36-year-old Edmonds said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors. He admitted to working with “unnamed co-conspirators” at J. P. Morgan, according to the Justice Department.

Kovel wants to question Edmonds again as well as Michael Nowak, the bank’s global head of base and precious metal trading, and former J. P. Morgan Chase Managing Director Robert Gottlieb. The three had previously answered questions under oath in the civil case.

Kovel said in court filings that Nowak was the immediate supervisor of Edmonds, while Gottlieb was Edmonds’ mentor.

In his prior deposition, Edmonds said that Gottlieb sat only a “couple feet” away from him for about five years, and that he was “somebody [he] looked up to in the business,” who helped guide and train him.

Nowak is described by Edmonds as his direct supervisor, with whom he would sometimes discuss trading strategies. Nowak was also the person responsible for overseeing the performance and risk of Edmonds’ portfolio, according to the deposition.

Edmonds also stated in his prior deposition that he would enter precious metals trades for both Nowak and Gottlieb, among others.

The civil lawsuit claims Shak and his fellow plaintiffs lost tens of millions of dollars as a result of actions by J. P. Morgan’s traders.

 

-END-

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

i) Chinese yuan vs USA dollar/CLOSED UP TO 6.8865/HUGE DEVALUATION FOR THE PAST FOUR WEEKS STOPS ON TRUCE/

//OFFSHORE YUAN:  6.8902   /shanghai bourse CLOSED DOWN 13.29 POINTS OR 0.52%

HANG SANG CLOSED DOWN 241.86 POINTS OR 0.94%

 

 

2. Nikkei closed DOWN 595.34 POINTS OR 2.84%

 

3. Europe stocks OPENED ALL RED 

 

 

 

 

 

 

/USA dollar index FALLS TO 96.34/Euro RISES TO 1.1461

3b Japan 10 year bond yield: FALLS TO. +.03/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.35/ 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:: 46.91 and Brent: 55.55

3f Gold UP/JAPANESE Yen UP CHINESE YUAN:   ON -SHORE UP/OFF- SHORE: UP

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

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

3h Oil 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 +.23%/Italian 10 yr bond yield UP to 2.75% /SPAIN 10 YR BOND YIELD UP TO 1.38%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.52: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 4.29

3k Gold at $1254.75 silver at:14.74   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 9/100 in roubles/dollar) 67.52

3m oil into the 46 dollar handle for WTI and 55 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 111.75 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning 0.9891 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1335 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 +0.23%

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

4. USA 10 year treasury bond at 2.77% early this morning. Thirty year rate at 2.98%

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

6.  TURKISH LIRA:  UP  TO 5.2768

 

 

Futures Whipsaw Violently In Aftermath Of Fed Hike Turmoil

Markets whipsawed violently in the aftermath of the Fed’s “less dovish than expected” rate hike, with European stocks sliding to 2 year lows, and Japanese stock entering a bear market as crude oil tumbled after another mini flash crash after the European open as the dollar slumped.

US equity futures initially rose, then tumbled sliding to a new 2018 low around midnight dragged lower by Asian market fears, then once again rebounded around the time EUrope opened, and were trading mostly flat as US traders walked in.

Investors “think the Fed has completely misjudged the situation and now it’s just a matter of just trying to find an exit while you can,” said Kyle Rodda, a market analyst at IG Group in Melbourne. “We’re probably entering a stage now where markets have got it their head that we’re preparing for quite sustained downside going into 2019.”

The sell-off that began Wednesday after Powell disappointed markets with a rate hike and a promise to keep reversing quantitative easing after downplaying the implications of market volatility, gathered pace in Asia and Europe. Markets were mostly spooked by Powell’s comment that the process of unwinding QE is on “autopilot.”

The Fed’s been a huge friend of the stock market and they are now a little bit of an enemy” and will probably become a worse enemy before this is all over, Bob Doll, Nuveen chief equity strategist and senior portfolio manager, said on Bloomberg Television.

The enemy was revealed in European trading, where more than three-quarters of Stoxx Europe 600 members declined, with the index sliding to the lowest level since December 2016. Major European Indices are in the red, continuing from the declines seen in Asia which were spurred by US equity markets hitting YTD lows in reaction to the FOMC rate target hike; with EUR strength weighing on European equity markets as the dollar declines. FTSE 100 (-0.4%) is the outperforming index despite being weighed on by poor performance in the mining and materials sectors. Shell (-1.8%) is weighing on both the FTSE 100 and the AEX (-1.5%) which is the underperforming index, also impacted by semiconductor ASML (-3.3%) in the red after Apple’s poor performance yesterday. Sectors are firmly in the red, with the aforementioned materials sector lagging.

Earlier in the Asian session, Japanese stocks entered a bear market as the last policy statement of the year from the BOJ added to mounting investor concerns, sending the yen to its strongest since mid-September. The Topix index fell 2.5%, extending its decline after the BOJ kept its policy unchanged. Electronics makers and telecommunications stocks were the biggest drags on the benchmark gauge, which closed almost 21 percent below its January high.

Some investors thought the drop in Japanese stocks went too far. “This is an adjustment on the market from a strongly crowded position, especially on U.S. equities, to a more normal level,” said Frank Benzimra, head of Asia equity strategy at Societe Generale. “I’m surprised at the reaction of the Japanese market, which I find a bit excessive.”

USD/JPY fell below 112 for the first time since Oct.; the yen was supported amid concerns about slowing global growth after the Fed said it still intends to raise interest rates two more times next year; yields on super-long JGBs dropped to five-month lows after the Bank of Japan kept policy unchanged.

Elsewhere in currencies, the dollar fell broadly, with the BBDXY sliding back under 1,200 while treasuries held most of their steep gain from Wednesday.

Sweden’s krona rose against all Group-of-10 peers after a surprise interest rate hike by the Riksbank which raised its policy rate by 25 bps, as expected by 10 of 24 economists in a Bloomberg survey; the krona rose as much as 1% against the euro to a three-day high, before paring gains as traders digested a lowered rate projection.

In other central bank news overnight, the BoJ left monetary policy steady with short-term rate target at -0.1% and JGB yield target at around 0.0%; unchanged as expected. The Central Bank maintained pledge to buy JGBs in a flexible manner with holdings to increase at a pace of JPY 80tln per annum. Forward guidance was unchanged with BoJ stating it “will keep current extremely low rates for an extended period of time”. Board members Kataoka and Harada dissented on YCC as expected.

Also in Asia, the Hong Kong Monetary Authority raised rates by 25bps to 2.75% in lockstep with the Fed, as expected. HKMA stated that rising interest rates reflect normalization from a low-rate environment and more data in needed to determine if the local property market is in a downturn. Meanwhile, somewhat surprisingly the PBoC left interest and reverse repo rates unchanged, once again refusing to hike rates in lockstep with the Fed.

In another surprise move, the Swedish Riksbank raised rates for the first time in 7 years, to -0.25% vs. Exp. -0.5%. The bank’s forecast for the Repo rate indicates the next hike will likely occur in the second half of 2019. Deputy Governor Jansson dissented the rate hike, and did not support the repo-rate path in the monetary policy report. The Riksbank also sees the repo rate averaging 0.48% in Q4 2020, vs. Prev. 0.66% forecast and, 0.98% in Q4 2021, vs. Prev. 1.23% forecast. The bank noted that even though inflation has been lower than expected, conditions remain good for inflation to stay close to the inflation target going forward. The hike sent the SEK sharply higher against all of its peers.

After posting a modest rebound on Wednesday, oil once again tumbled, sliding more than 3 percent in New York. Brent (-3.4%) and WTI (-3.5%) have continued to decline as concerns over slowing global growth and supply concerns continue to
weigh on price; taking out USD 56 and USD 47 a barrel respectively. IEA’s Birol exerting additional pressure by stating that he does
not expect a sharp oil price increase in the short term, and he expects serious US oil production growth to continue until 2025. In
addition the El Sharara oil field is to reopen following the Libyan PM’s visit, although production has not yet restarted as workers
are awaiting orders from state oil Co NOC.

Gold is firmly in the green benefitting from safe haven flows following the weaker dollar post-FOMC. Aluminium prices in London
dropped to a 16-month low after aluminium producer Rusal confirmed that the US intends to lift sanctions on the Co which were
imposed in April. Separately, China’s aluminium firms are to meet to discuss falling prices and lower demand for the metal.

Expected data include jobless claims and November’s Leading Index. Accenture, Blackberry, Carnival, Walgreens Boots, and Nike are among companies reporting earnings

Market Snapshot

  • S&P 500 futures little changed at 2,505.25
  • STOXX Europe 600 down 1.2% to 337.29
  • MXAP down 1.3% to 146.16
  • MXAPJ down 0.9% to 474.60
  • Nikkei down 2.8% to 20,392.58
  • Topix down 2.5% to 1,517.16
  • Hang Seng Index down 0.9% to 25,623.53
  • Shanghai Composite down 0.5% to 2,536.27
  • Sensex down 0.3% to 36,368.40
  • Australia S&P/ASX 200 down 1.3% to 5,505.82
  • Kospi down 0.9% to 2,060.12
  • German 10Y yield fell 1.7 bps to 0.222%
  • Euro up 0.8% to $1.1467
  • Italian 10Y yield fell 16.3 bps to 2.413%
  • Spanish 10Y yield rose 0.2 bps to 1.38%
  • Brent futures down 2.8% to $55.64/bbl
  • Gold spot up 1% to $1,255.60
  • U.S. Dollar Index down 0.7% to 96.37

Top Overnight News from Bloomberg

  • Fed Chairman Jerome Powell suggested he will be more cautious about raising rates next year after boosting them for the fourth time in 2018. “There’s significant uncertainty about both the path and the ultimate destination of any further rate increases,’’ he told a press conference
  • The Bank of Japan left its stimulus settings unchanged at its final policy meeting of the year, with Governor Haruhiko Kuroda acknowledging that risks are tilted to the downside; Japanese stocks entered a bear market
  • People’s Bank of China said it would supply lower-cost liquidity for as long as three years to banks willing to lend more to smaller companies, as policy makers roll out targeted measures aimed at shoring up the flagging economy
  • New Zealand’s economy grew at half the pace economists predicted in the third quarter, suggesting inflation will remain subdued and raising the possibility the central bank may cut interest rates.
  • Australia’s labor market softened a little in November in a setback for the Reserve Bank’s drive for higher wages and faster inflation
  • Special Counsel Robert Mueller will be cautious about implicating President Donald Trump — or even a thinly disguised “Individual-1” — directly in criminal activity in legal filings he’s expected to issue in the next few months, according to people familiar with his investigation
  • Soros Fund Management has reduced most of its macro wagers, moving away from the strategy that made George Soros a billionaire, according to people familiar with the changes

Asian equities drowned in a sea of red following the decline seen on Wall Street post-FOMC where the Dow, S&P 500 and Nasdaq all dived to fresh YTD lows and tech-giant Apple sunk over 3%. ASX 200 (-1.3%) was mostly pressured by the material sector as metals fell with the Fed-induced USD strength, similarly Nikkei 225 (-2.8%) retreated further below the 21,000 handle to levels last seen in September 2017 as its heavy mining sector slumped, while a firmer JPY further distressed the benchmark. Elsewhere, Shanghai Comp. (-0.5%) was weighed on by financial names (China Banks sector -2.3%) after the PBoC refrained from raising reverse repo rates following the FOMC and HKMA 25bps hikes. Meanwhile, Hang Seng (-1.0%) was pressured by the regional risk sentiment alongside weakness in the property and financial sectors, on the flip side, shares in Rusal provided the industrial sector with modest support after spiking higher in excess of 20% after the reports that US will terminated sanctions against the company.

Top Asian News

  • China, Canada Said to Discuss Third Detainee’s Return, Post Says
  • Asia Stock Carnage Deepens as Hopes Fizzle With Policy Updates
  • Developer Jiayuan International Jumps By Record 25% in Hong Kong
  • Bank Indonesia Pauses Rate Hikes as Fed Turns Cautious
  • Emerging Markets Seen Coming Back From Dour 2018 Led by Brazil

Major European Indices are in the red [Euro Stoxx 50 -1.5%] continuing from the declines seen in Asia which were spurred by US equity markets hitting YTD lows in reaction to the FOMC rate target hike; with EUR strength weighing on European equity markets as the dollar declines. FTSE 100 (-0.4%) is the outperforming index despite being weighed on by poor performance in the mining and materials sectors with index heavyweights Anglo American (-3.1%), Rangold Resources (-2.6%) and Rio Tinto (-2.6%) in the red. Shell (-1.8%) is weighing on both the FTSE 100 and the AEX (-1.5%) which is the underperforming index, also impacted by semiconductor ASML (-3.3%) in the red after Apple’s poor performance yesterday. Sectors are firmly in the red, with the aforementioned materials sector lagging. Other notable movers include Wirecard (-3.7%) who are at the bottom of the DAX (-0.9%) following a article stating the Co only has a 5-10% share in German online transactions

Top European News

  • U.K. Retailers Get Black Friday Boost as Sales Surge
  • Bang & Olufsen Loses Quarter of Its Value on Lower Forecast
  • Societe Generale to Take $123 Million Charge on Serbia Sale
  • London Gatwick Airport Shut by Drone Scare Amid Holiday Rush
  • After Brexit and Italy, Poland Shows Cost of Clashing With EU

In FX, the Dollar has recoiled sharply from initial recovery highs seen after the Fed delivered its latest 25 bp hike, but not quite the dovish future guidance that most seemed to be anticipating. However, 2019 dot plots were trimmed to 2 from 3, the neutral rate was shaved to 2.8% from 3% and the accompanying statement was tweaked to a degree in terms of the amount of further policy normalisation in the current cycle. Hence, on reflection the FOMC has shifted towards a more cautious stance, and this was
highlighted by Chair Powell in the post-meeting press conference, particularly with regard to subdued if not expressly declining  inflation pressure. The upshot, an unwind and part-reversal in the Usd and index through pre-FOMC lows around 96.200.

  • SEK – In stark contrast to the Greenback’s relatively abrupt U turn, the Swedish Crown received a semi-surprise boost from the Riksbank that raised the repo rate by ¼ point against majority, albeit not unanimous by any means market expectations. Indeed, Eur/Sek has tested 10.2500 vs almost 10.3700 at one stage ahead of the contentious final policy meeting of the year, even  though the decision to hike was contested by one Board member and came with a shallower projected tightening path out to 2021.
  • EUR – The single currency is heading gains vs the back-pedalling Usd and finally cleared recent highs just ahead of 1.1450 on its way to circa 1.1485 and mega option expiries/barriers at 1.1500 (5.6 bn) that also coincide with early November peaks
  • CHF/GBP/JPY – All benefiting from the aforementioned Dollar demise, with the Franc breaching 0.9900 resistance and perhaps also aided by a widening Swiss trade surplus. Similarly, Cable has overcome a sticky level around 1.2650 to briefly peer above 1.2700 despite ongoing Brexit uncertainty and helped in part by a strong pre-Xmas UK retail sales update, but highly unlikely to derive any further purchase from the BoE that is unanimously seen standing pat. Meanwhile, broad risk-off sentiment/positioning and even flatter yield curves have sparked strong demand for the Jpy that has now rallied through 112.00 to just over 111.70,  even though Japanese monetary authorities are monitoring the situation and BoJ Governor Kuroda maintains the option of further easing if needed following an unchanged final policy meeting of the year.
  • AUD/NZD/CAD – The Aud is markedly outperforming vs its fellow non-US Dollars, albeit within a significantly lower range vs its US counterpart around 0.7100, as the Kiwi is undermined by much weaker than forecast Q3 GDP overnight and ANZ’s dovish call for a 25 bp RBNZ rate cut. Nzd/Usd is languishing below 0.6800 and the Aud/Nzd cross is back over 1.0500 accordingly. Elsewhere, sliding crude prices and the Canadian-Chinese diplomatic situation continues to weigh heavily on the Loonie, but the Cad has rebounded from 1.3500+ lows to circa 1.3450.
  • EM – Regional currencies now all in the ascendency vs the Usd and regaining lost ground after the initial Fed fall-out and rout in risk assets.

In commodities, Brent (-3.4%) and WTI (-3.5%) have continued to decline as concerns over slowing global growth and supply concerns continue to weigh on price; taking out USD 56 and USD 47 a barrel respectively. IEA’s Birol exerting additional pressure by stating that he does not expect a sharp oil price increase in the short term, and he expects serious US oil production growth to continue until 2025. In addition the El Sharara oil field is to reopen following the Libyan PM’s visit, although production has not yet restarted as workers are awaiting orders from state oil Co NOC. Gold is firmly in the green benefitting from safe haven flows following the weaker dollar post-FOMC. Aluminium prices in London dropped to a 16-month low after aluminium producer Rusal confirmed that the US intends to lift sanctions on the Co which were imposed in April. Separately, China’s aluminium firms are to meet to discuss falling prices and lower demand for the metal.

US Event Calendar

  • 8:30am: Philadelphia Fed Business Outlook, est. 15, prior 12.9
  • 8:30am: Initial Jobless Claims, est. 215,000, prior 206,000; Continuing Claims, est. 1.66m, prior 1.66m
  • 9:45am: Bloomberg Consumer Comfort, prior 59.4; Bloomberg Economic Expectations, prior 56
  • 10am: Leading Index, est. 0.0%, prior 0.1%

 

3. ASIAN AFFAIRS

i)THURSDAY MORNING/ WEDNESDAY NIGHT: 

SHANGHAI CLOSED DOWN 13.29 POINTS OR 0.52% //Hang Sang CLOSED DOWN 241.86 POINTS OR 0.94% //The Nikkei closed DOWN 595/34 OR 2.84%/ Australia’s all ordinaires CLOSED DOWN 1.36%  /Chinese yuan (ONSHORE) closed UP  at 6.8865 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 46.91 dollars per barrel for WTI and 55.55 for Brent. Stocks in Europe OPENED RED 

//ONSHORE YUAN CLOSED UP AT 6.8865AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8902: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED   : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER 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

 

 

i)North Korea/South Korea/USA/

Seems that the honeymoon is now over between the USA and North Korea as the Kim demands that the USA must eliminate the nuclear threat on the Peninsula first

(courtesy zerohedge)

US Must Eliminate “Nuclear Threat” First, Demands Jarring North Korea Statement

In the latest sign that the Trump-Kim brief honeymoon phase of mutually presenting glowing letters and heaping praise on each other is over, North Korea said Thursday it will never voluntarily give up its nuclear weapons unless the “U.S. nuclear threat to Korea” is eliminated, according a statement presented by its official Korean Central News Agency (KCNA).

“The proper definition of denuclearization of the Korean Peninsula is completely eliminating the American nuclear threat to North Korea before eliminating our nuclear capability,” the statement said. The aggressive statement asserting the US must blink first comes a moment the US and North Korea have been deadlocked over negotiations related to easing sanctions, and after the Trump-Kim historic summit on June 12 in Singapore wherein both leaders pledged to “work toward complete denuclearization of the Korean Peninsula.”

And though advancements between the North and South have been perhaps presented in a rosier light than what Thursday’s statement suggest is the actual state of relations, it appears the pressing issue remains of extensive military assets in South Korea as well as the South being under the US nuclear umbrella. The statement indicated North Korea will eventually demand withdrawal of the some 28,500 US troops currently stationed on the peninsula.

“The United States must now recognize the accurate meaning of the denuclearization of the Korean Peninsula, and especially, must study geography,” the statement said.

And further, the KCNA statement said the following, according to the AP:

When we talk about the Korean Peninsula, it includes the territory of our republic and also the entire region of (South Korea) where the United States has placed its invasive force, including nuclear weapons. When we talk about the denuclearization of the Korean Peninsula, it means the removal of all sources of nuclear threat, not only from the South and North but also from areas neighboring the Korean Peninsula.

The statement also charged Washington with altering what had been agreed upon at Singapore and using threats to create an impasse over post-summit talks. And since the the stalled talks, satellite imagery recently published in international media suggests North Korea is actively upgrading its nuclear facilities.

The KCNA said, “If we unilaterally give up our nuclear weapons without any security assurance despite being first on the U.S. list of targets for pre-emptive nuclear strikes, that wouldn’t be denuclearization — it would rather be a creation of a defenseless state where the balance in nuclear strategic strength is destroyed and the crisis of a nuclear war is brought forth.”

And demanding the end of sanctions and “and end to hostile policies” as a precondition to denuclearization, the statement continued:

The corresponding measures we have asked the United States to take aren’t difficult for the United States to commit to and carry out. We are just asking the United States to put an end to its hostile policies (on North Korea) and remove the unjust sanctions, things it can do even without a snap of a finger.

Meanwhile this week the State Department issued an update on stalled negotiations, saying the US “remains confident” about the push toward denuclearization, and that the US looks forward to the “commitments that Chairman Kim and President Trump have made.”

But Thursday’s North Korean statement has left the skeptics feeling justified as denuclearization looks further away than ever, given the seeming sheer impossibility of the demand for “the removal of all sources of nuclear threat, not only from the South and North but also from areas neighboring the Korean Peninsula“.

3 b JAPAN AFFAIRS

 

END

3 C CHINA

For those of you who think that we might get a deal with China, guess again:  the USA and allies are planning a massive unprecedented sanctions against Beijing over cyber espionage

(courtesy zerohedge)

US, Allies Planning Unprecedented Sanctions Against Beijing Over Cyber espionage

Update: The latest batch of indictments has been handed down. The DOJ has indicted two hackers for their alleged involvement in a global hacking campaign, carried out at the behest of the Tianjin office of China’s MSS. The behavior allegedly happened over two time periods, one of which began in 2006, and the other beginning in 2014. They compromised more than 40 computers belonging to the US Navy.

Here’s a breakdown of the indictment, courtesy of CNBC:

  • Prosecutors accused the hackers of operating in connection with the Chinese government.
  • They are accused of stealing information from at least 45 U.S. tech companies and government agencies.
  • Agencies targeted included the Department of Energy’s National Laboratory and NASA’s jet propulsion lab.
  • The hackers also allegedly targeted defense industrial companies and managed service providers, as a way to gain entry to U.S. corporations and agencies through their suppliers.
  • The two defendants, Zhu Hua and Zhang Shilong, were allegedly members of a group known as “Advanced Persistent Threat 10,” or “APT10.” The group was also known within the cybersecurity community as “Stone Panda,” “Red Apollo” and “POTASSIUM.”
  • APT10 allegedly hacked into more than 40 computers connected to the U.S. Navy and stole confidential data, including “the personally identifiable information of more than 100,000 Navy personnel.”
  • They’re also accused of hacking three communications technology companies, three companies “involved in manufacturing advanced electronic systems,” a maritime technology company, an oil and gas company, and at least 25 other technology-related companies.

While whether they will ever end up in a US jail cell is an open question, there will be an Interpol warrant out for their arrest, meaning if they ever leave China, they will put themselves at risk.

* * *

The steady drumbeat of indictments of Chinese companies, hackers and even bad actors allegedly working on behalf of China’s Ministry of State Security in recent months has provoked whispers that sanctions against Beijing in retaliation for its hacking and espionage efforts – something that has become a sticking point in the US-China trade war – could be in the offing.

Now, it appears that moment has finally arrived, according to a story in the Washington PostTo wit, several western government officials reportedly told WaPo that the Trump administration and more than a dozen of its allies are expected to condemn Beijing on Thursday over the MSS’s campaign to steal other countries’ trade secrets and advanced technologies, as well as its efforts to compromise sensitive government and corporate computer networks.

White House

The “gesture” suggests that the rest of the world is gradually coming around to President Trump’s insistence that China isn’t playing fair – it’s not abiding by internationally recognized norms for trade and fair play – and that its path to becoming a global super power and economic and technological leader was greased by cheating. The denunciation portends a long-awaited indictment of Chinese intelligence agents who have allegedly led a long-running campaign to infiltrate communications networks in the US and other countries (something that was foreshadowed by the US’s efforts to convince its allies to abandon telecoms equipment manufactured by China’s Huawei).

But more importantly, after the gesture of contempt, sanctions related to China’s cyberespionage efforts are expected to be announced – a decision that will almost certainly infuriate Beijing. The process of coming together to condemn China was led by presidents and prime ministers of the countries that are taking part.

Reports emerged earlier this month that the DOJ was preparing to indict Chinese intelligence officials who are believed to be members of a hacking group known as ATP10 (“Advanced Persistent Threat 10”). As we explained at the time, ATP10 is believed to have broken into “managed service providers” in various countries in an effort to worm their way into secure corporate and government networks.

Trump is also reportedly preparing to go after China for breaking its promise to the Obama administration to refrain from further state-sponsored hacking – a promise made after the infamous infiltration of the US’s Office of Personnel Management’s system, which is believed to have compromised the identities of US intelligence assets.

Also known as APT10, the hacking group broke into so-called “managed service providers” in the United States, Britain, Japan, Canada, Australia, Brazil, France, Switzerland and South Korea, among other countries. The goal: to worm their way into the networks of the service providers’ clients to gain access to their intellectual property and sensitive data.

Also expected is a condemnation by Trump administration officials of China for allegedly violating a landmark 2015 pact to refrain from hacking for commercial gain. Taking part in the administration’s actions are the State and Homeland Security departments.

The gesture is part of a concerted effort by the US and its allies in Europe and Asia to push back against China’s aggressive military and economic stance.

It also risks complicating trade talks between China and the US, as Beijing has warned that any further economic sanctions applied against China from the West could be a dealbreaker for any further cooperation.

4.EUROPEAN AFFAIRS

EUROPE

Sanctions are having a chilling effect on investors in Europe as they are afraid to invest in companies that may be dealing with Russian entities

(courtesy zerohedge)

Europe Losing Appetite On Russia Sanctions As Banks Remain Skittish

Nearly five years after the Crimean crisis and subsequent western sanctions on Russia, Europe is increasingly “losing the appetite for punishing actions against Moscow,” writes Bloomberg in a new report suggesting investors are impatiently waiting for clarity on Russia as its economy enters bunker mode. Even willing European companies are now “starved of financing” on the mere threat of more punitive measures to come.

However, it’s precisely the psychological uncertainty of more looming US sanctions as lawmakers make continued threats over accusations of Russian meddling in the 2016 presidential elections that’s part of Washington’s arsenal. And when sanctions are handed down, it’s further the cloudy ambiguity in terms of what’s targeted when that produces a chilling effect: “The most effective sanctions are the ones that aren’t entirely clear, because the lack of clarity has a chilling effect on investment,” Frank Schauff, chief executive officer of the Association of European Businesses in Russia, told Bloomberg. He cited one sanctions law passed by Congress last year that has absurdly confusing language saying particular actions “will be in place for a long, long time.”

Pavel Chinsky, head of the Franco-Russian Chamber of Commerce and Industry, noted past data on countries under US sanction shows Washington throwing its weight around is enough to keep willing companies away: “The U.S. has such a major role with the weight of the dollar and the extra-territoriality of their laws,’’ he said. For example, “French banks don’t finance Franco-Russian projects. Full stop. Not because it’s forbidden, but because they’re being ultra-cautious,” Chinsky said. They all fear repercussions on their U.S. activities,’’ he added.

The mere risk of new measures following last month’s Kerch Strait incident has been enough to keep foreign businesses waiting nervously on the sidelines, despite the EU showing no signs that it will penalize Moscow in the wake of the incident. During talks in Paris on Monday French Economy Minister Bruno Le Maire and his Russian counterpart Maxim Oreshkin announced plans for further cooperation in areas including energy, nuclear, space and tourism, but this is easier said that done as neither Macron nor Putin appear willing to find a way forward on contrary Ukraine stances.

Given that tensions are higher than ever, with Ukraine still under temporary martial law as its president hypes a “Russian invasion” threat, and with a Russian build-up of forces including S-400 air defense systems on Crimea, there’s been no offered EU track for easing the penalties. Instead it’s bunker mentality on both sides at a moment that sliding oil prices have added to Russia’s pain, though as one recent study on the sanctions impact since 2014 study found, “The underperformance has been much bigger than crude alone can explain.”

via BloombergThus even an oil price recovery likely won’t have much impact on Russia’s pummeled economy, per Bloomberg:

With sluggish annual growth of less than 2 percent and the Russian state’s expanding role in business, even a recovery in oil prices isn’t likely to give a boost to the economy, according to Putin’s former finance minister, Alexei Kudrin, who now heads the Audit Chamber that monitors the budget.

For now, major European companies with operations in Russia are hunkered down but are finding it hard to finance expansion because banks are wary of U.S. reprisals. German investment averaged $550 million annually since 2013 compared to $3.6 billion a year from 2007-2012. French companies invested $666 million in the first half of 2018, down from a peak of $2.6 billion in 2010.

Last month Putin confirmed while speaking at an investor conference in Moscow that annual trade with the EU “had fallen by almost half from a peak of $450 billion to $236 billion,” according to the Bloomberg report.

via BloombergAnd one recent study claimed that US sanctions have knocked as much as a whopping 6% off Russia’s economy over the past four years when compared to expected GDP growth after 2014 without sanctions in place.

For a reminder of just what types of statements out of the White House and State Department have kept European banks and investors skittish, US Assistant Secretary of State for International Security and Nonproliferation Christopher Ford said just over a month ago related to the Skripal case: “Under statute… there is a menu of options if you will, things that need to be considered. As part of that, we do not have an inter-agency decision answer on what those pieces are yet. It is under active consideration.” He threatened further at the time: “The second round of sanctions under the statue is a more draconian menu than the first round.”

Projected/imagined GDP growth after 2014 without sanctions in place assuming prior patterns…

Pompeo has promised over the past weeks efforts toward a further squeeze on Russian energy export efforts, saying, “We will keep working together to stop the Nord Stream 2 project that undermines Ukraine’s economic and strategic security.” Nord Stream 2 is expected to be put into operation by the end of 2019 and is seen as a vital European lifeline Russia needs to halt its economic slide, and an issue where Europe – most especially Germany – has shown itself unwilling to bow to US demands.

It remains the “unknown” and corresponding emotional/psychological impact of US economic warfare and potential negative fallout for those third parties who “might” be caught in the cross-hairs that appears precisely a secondary effect in place by design of Washington planners.

END
SCARY!! Gatwick shut down for 13 hrs as mystery drones surround the perimeter of the airport..this forces mass cancellation.
(courtesy zerohedge)

“There Are Bodies On Every Seat” – Thousands Stranded At Gatwick Airport As Mystery Drones Force Mass Cancellations

In a scary preview of the disruptions that could soon become commonplace in our technology-infused future, London’s Gatwick airport has been shut down for more than 13 hours due to mysterious drones flying “over the perimeter fence and into where the runway operates from”. Hundreds of flights have been cancelled, leaving tens of thousands of travelers stranded in the airport’s “freezing” terminals during the holiday rush, according to reports in the BBC and the Guardian.

Drones

According to the Guardian, which is providing live coverage of the ongoing disruption, Chris Woodroofe, the airport’s chief operating officer, apologized to passengers and explained during a Sky News interview that the drones would not be shot down because of the risks posed by stray bullets. Police are asking the public’s help in finding the drone operators.

Drone

Police have been searching the perimeter of the airport to find the operators of the drones – who could face up to five years in prison if apprehended. The incident has kickstarted a conversation in the UK about imposing tighter regulations on drone operators (and stiffer penalties for anybody operating drones without the proper authorization).

“As I stand here, there is a drone on my airfield as we speak,” Woodroofe said.

While two drones had terrorized the runway for most of Wednesday evening. The BBC reported that 110,000 passengers had been expected to use the airport on Thursday, traveling on 760 flights. Gatwick had been expecting a record number of passengers during the holiday travel season.

Gatwick Airport LGW

@Gatwick_Airport

1/2 Thurs 09.15: All flights to and from Gatwick are suspended due to ongoing drone activity activity around the airport. Unfortunately, there are significant delays and cancellations to all flights today.

Gatwick Airport LGW

@Gatwick_Airport

2/2 Please do not travel to the airport without checking the status of your flight with your airline first. We apologise to everyone affected, but the safety of all our passengers and staff is our no.1 priority.

The runway was briefly reopened at about 3 am London Time (10 pm ET), but was swiftly closed when the drones returned. the airport said, but forced to close again about 45 minutes later amid “a further sighting of drones”.

Christopher Lister@Listy_cl

Flight from Kiev to was due to land last night at 21.45. We landed in Birmingham airport. Now almost 4am, still on the plane, no food or updates from our crew. Not allowed to disembark. Bodies sleeping on every seat and across the floors. 🇬🇧🙏❤️✈️

The closure – now in its 13th hour – has been extended until at least noon London time (7 am ET).

AIRLIVE

@airlivenet

UPDATE London Gatwick closure now extended till 12.00 UTC https://www.airlive.net/breaking-london-gatwick-closed-after-a-drone-spotted-close-to-runway/ 

BREAKING London Gatwick closed after a drone spotted close to runway

London Gatwick arrivals and departures have been stopped due to a drone.British Airways confirmed: “Gatwick has stopped all arrivals and departures due to a drone, we’ve been told.A drone

airlive.net

The government has criticized the drone operators as acting ‘”incredibly irresponsibly”:

Dept for Transport

@transportgovuk

Aviation Minister Baroness Sugg: “These drones have been flown illegally and the operators, who have acted incredibly irresponsibly, could face up to five years in jail.”

Gatwick Airport LGW

@Gatwick_Airport

Due to drone activity on the airfield at Gatwick, all arriving and departing flights are currently suspended. Please check with your airline before travelling to the airport today. We’re sorry to everyone affected, safety is our number 1 priority . https://bddy.me/2USFiUx

 

Gatwick, which is London’s second-busiest airport after Heathrow, is advising passengers not to travel to the airport without checking with their airline first. Though the motives of the drone operators remain shrouded in mystery, Sussex Police have said “There is absolutely nothing to suggest that this is terrorism-related.”

Embedded video

Press Association

@PA

Ten thousand passengers have suffered flight chaos after the runway at Gatwick Airport was closed due to drones being flown nearby

It is illegal to fly a drone within one kilometer of an airport. Incoming planes are being diverted to other UK airports, including Heathrow, and some have been rerouted as far away as Amsterdam and Paris.

Incidents involving drones have been increasing:

Drones

One passenger who spoke with the BBC and the Guardian described a chaotic scene in the terminal, where pregnant women were seen sleeping on the floor.

Andri Kyprianou, from Cyprus, who had been visiting London, said: “There were pregnant women, one of them was sleeping on the floor.

There were people with small babies in here overnight, we saw disabled people on chairs. There were young children sleeping on the floor.”

The cancellations have sown widespread confusion among passengers, who are struggling to figure out whether their flights have been rescheduled or moved to different airports.

Arthur Serbejs, 22, and Domante Balciuniate, 21, factory workers from Hastings, sat on the floor by a prayer room, approaching their 16th hour of waiting for a flight to Barcelona.

“We came about 6pm yesterday, and we’re going to be here until like 7pm,” Serbejs said. “At 9pm yesterday we were on the plane for four hours – they turned the lights off and everything like it was going to take off.”

“But we were still sitting there,” Balciunate added. Serbejs said he had fallen asleep while the plane sat on the apron, hoping to wake up in Spain, “and I woke up and we hadn’t moved.”

Eventually they were taken off the flight, and offered a hotel in Brighton, which they declined as they live close by. They were told they would get an email with a ticked for another flat, but none came. “We stood in line for three hours for a 30 second conversation saying ‘your flight has already been transferred hours ago,’ but we didn’t know about it,” Serbejs said.

“It’s crazy, it’s my worst airport experience.”

Several techniques have been devised for safely disabling rogue drones, including this surprisingly low-tech solution, devised by Dutch police:

END

The Bank of England keeps rates unchanged as they warn that BREXIT uncertainty has intensified.  They expect growth in the third quarter to fall from .6% down to a measly .2%
(courtesy zerohedge)

Bank of England Warns Brexit Uncertainty Has “Intensified Considerably” In Past Month As It Keeps Rates On Hold

Unlike Sweden’s Riskbank, which surprised this morning with its first rate hike in 7 years, a move that was expected by only 10 of 24 analysts polled by BBG, the Bank of England had nothing up its sleeve when its Monetary Policy Committee voted unanimously (9-0) to leave rates unchanged at 0.75% and warned that Brexit uncertainties had “intensified considerably” since its November meeting.

Bank of England

@bankofengland

MPC voted unanimously to keep #BankRate at 0.75%

 

“The broader economic outlook will continue to depend significantly on the nature of EU withdrawal,” the minutes of the meeting said. “The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.”

With little idea whether the UK is going to leave the EU smoothly or crash out with no deal in March, the bank’s Monetary Policy Committee for the first time gave no indication of how recent data were shaping its thinking on monetary policy, the FT noted.  Instead, the central bank merely repeated what it had said at its November meeting — that if there was a smooth Brexit with a transition period, the economy was likely to need roughly one quarter point interest rate rise a year to keep inflation anchored to its target of 2 per cent. But turmoil since then puts that assessment in doubt.

As the FT notes, the MPC’s reticence in providing markets with any guidance was even starker because it noted that there had been significant changes in the UK and global economies since it last met to discuss interest rates in early November.

“Brexit uncertainties have intensified considerably since the committee’s last meeting,” the minutes of the meeting said. “The further intensification of Brexit uncertainties, coupled with the slowing global economy, has also weighed on the near-term outlook for UK growth”.

The BoE said it now sees inflation slowing below the 2% target as soon as January after oil prices fell. Nevertheless, stronger-than-anticipated wage growth and weak productivity suggest that underlying inflation pressures are building.

The economic outlook has weakened since the bank’s last round of forecasts in November. While growth was 0.6% in the third quarter, the BOE expects 0.2% expansion at the end of the year and about the same in the first three months of 2019.

Prime Minister Theresa May is running down the clock before putting her withdrawal agreement to a vote in Parliament. If lawmakers reject the deal, the risk of leaving the EU without a transition period rises. A disorderly Brexit would put the BOE in crisis-fighting mode – the pound would fall, fanning inflation, while new trade barriers would put the brakes on growth. The MPC said that the current monetary policy stance is “appropriate” for now, though it expects greater-than-usual short-term volatility in U.K. data.

While the MPC was generally downbeat on the changes to the UK economy since its last meeting, it noted that conditions in the labour market had improved further and this was likely to generate stronger inflationary pressure in the medium term. “Annual growth in regular pay had risen to 3.3 per cent, stronger than anticipated in the November inflation report, and the committee judged that near-term risks were slightly to the upside,” the MPC minutes of the December meeting said.

Separately, the MPC warned on growing inflation pressures, saying that with continued low productivity growth, rising pay was likely to increase firms’ costs and put upward pressure on prices. And the committee judged that Philip Hammond’s the late October Budget had also injected further spending into the economy which was likely to raise output 0.3 per cent over three years, further boosting inflationary pressure. But the MPC declined to give any assessment how it balanced these contradictory forces. All the committee was willing to say was, “the MPC judged at this month’s meeting that the current stance of monetary policy was appropriate”.

In response to the widely expected announcement, there were no notable reactions in assets, with cable dipping modestly after rising by nearly 100 pips earlier largely as a result of the sharp drop in the dollar.

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/SYRIA/USA/RUSSIA

An excellent commentary explaining how Turkey turned towards Russia vacating the USA.  With Syria gaining strength on the backs of Russian support, the alliance of Saudi Arabia, Israel and the USA faltered.  This is why the USA is leaving Syria: there is nothing more to be gained here.

(courtesy Tom Luongo)

Turkey And Russia Push Towards A Resolution In Syria

Authored by Tom Luongo,

Turkish-US relations are terrible and deteriorating by the day despite bromides to the contrary. Actions speak louder than words. And that has been all President Trump seems capable of anymore, words not actions.

 

Since the beginning of l’affair Khashoggi Turkey has been extracting concession after concession from the US as the Trump administration tries to salvage its soon-to-be-unveiled Middle East peace plan.

The latest concession may be the biggest. There’s a report out now that the Trump administration is readying the extradition of cleric Fethulah Gulen, who President Erdogan believes was behind the coup attempt against him in July of 2016.

The US has protected Gulen well beyond any reasonable measure for someone not in their pay so Erdogan’s claims ring true enough. I’ve always thought he was a US intelligence asset and that the US was the ones truly behind the coup attempt.

And since the Trump administration has been desperate to get the Turks to stop leaking details of the Khashoggi murder, Erdogan has pretty much had a free hand to conduct business as he’s seen fit for the past two-plus months.

Whether the US ever returns Gulen to Ankara or not is actually irrelevant; keeping it a sore spot open is its biggest value while Turkey prepares an assault against US-backed YPG forces in Manbij, Syria.

It helps raise Turkey’s position with the other countries involved in the Astana peace process for Syria while keeping Trump, his foreign policy mental midgets and Saudi Arabia on their collective back foot.

Turkey has grown increasingly restless about the US’s lack of movement in turning Manbij over to them. And have now unleashed attacks on Kurdish forces in Northern Iraq to hamper them further.

All of this is making the US presence in eastern Syria more untenable over time while the Saudis struggle with falling oil prices and no longer want to pay the bill for the US’s proxy war.

Don’t kid yourself, the US is struggling to keep its financial pressure up on Iran.

If these things weren’t enough Turkish Prime Minister Mevlut Cavusoglu said recently that Ankara was now willing to work with Syrian President Bashar al-Assad if he survives “democratic and credible” elections. This is rich coming from Turkey, but whatever.

The importance of this statement, however, cannot be overstated. Turkey was one of the major partners in the mission to destroy Syria. And now they have joined with Russia, Iran and China in negotiating the peace process.

They have gone from “Assad must go!” to “Assad can stay.” It is an admission that the US plan for balkanization of Syria will eventually fail and that their best bet is putting maximum pressure on the US to give up its regional plans.

Russia, of course, stands behind Turkey in this and themselves are now upping the costs on the US and the Israelis. Because, it is now Russian policy to assist Syrian Arab Army forces in proportional retaliation against Israeli aggression in Syrian territory, according to Elijah Magnier.

No longer will the Russians stand aside and allow Israel a free hand over bombing what it says are Hezbollah and Iranian targets within Syria. The SAA will now strike back with a proportional response.

An airport for an airport, as it were.

What started as a State Department operation to install a puppet government and sow chaos in Syria under Hillary Clinton then became one to drain Russian and Iranian resources by wasting their time under John Kerry.

Today, that US/Israeli/Saudi strategy has been turned on its head.

It is now the US and the Saudis that are feeling the pinch of yet another quagmire without end. Moreover, the Israeli security situation is now worse than it was before all of this started in the first place. This necessitates an even more unhinged response from Washington which it cannot defend to the American people as to why we need to stay in Syria forever.

None of this is what President Trump campaigned on. None of this is what candidate and citizen Trump argued for.

The real war of attrition was never about physical resources and money. It was always about time. The Iranians and Russians have played for time. Time brought out the truth about the Syrian invasion. It exposed the real causes of the conflict.

The hope now for the US is that financial pressure will get Iran to knuckle under. But, look at what is happening. Oil prices are in freefall as the global economy slows down thanks to debt saturation, a rising dollar and increasing opposition in the West to neoliberalism and globalism.

Trump whines about this because it upsets his mercantilist plans to corner the energy markets while weaponizing the use of the dollar.

EU technocrats who fancy themselves the inheritors of a waning US empire, bristle under Trump’s plans. They will build an alternative payment vehicle to buy goods and services from sanctioned entities. This is about much more than Iranian oil.

So, while Trump, Bolton, Mnuchin and Pompeo, the Four Horsemen of the Foreign Policy Apocalypse, think they are winning this war on commerce, all they are doing is falling into the very trap Putin, Xi and Rouhani have set for them.

Again, they playing for time. The dollar is the US’s strength and also its Achilles’ heel. And if you are playing for time it is to build alternative channels for trade oil, gas and whatever else the US deems against its interests without need for dollars.

Trump’s energy dominance plan is as transparent as his narcissism. More likely the sanctions exemptions for buying Iranian oil will be extended in May because he can’t have a global crisis be his fault as he prepares for re-election in 2020.

But, that’s exactly what he’s setting up.

So, now back to Syria.

Those who were set up to be scapegoats – namely Qatar and Turkey – washed their hands of the operation quickly, made deals with Russian President Vladimir Putin and charted their own independent paths. By the time the truth about US involvement in Syria was exposed they were long gone and only the real perpetrators left holding onto poor positions and worse arguments.

All Trump can do now is openly admit that we’re there on behalf of Israel and Saudi Arabia to get Iran. That’s it. He can sell that to part of his base. But, not enough of them to win re-election.

His peace plan is DOA. It died along with the 15 Russian airmen on that IL-20 back in August. I’ll be surprised if it is ever actually announced. That one event set us on this path. It permanently poisoned Russian/Israeli relations as Netanyahu overplayed his hand assisting NATO in a needless provocation which nearly sparked a wider war.

Reports are  Putin doesn’t return his phone calls and now dictates to Bibi what happens next. This also tells me Putin now has control over his Israeli fifth columnists within the Kremlin otherwise this order would never have been issued and made public.

Now Netanyahu is hemmed in on all sides and the Saudis are political pawns between the warring factions of the US government – Trump who wants an Arab NATO and the Deep State that wants him on a platter. Their benefactor, Trump, is in an increasingly untenable position who will soon be forced to choose between hot war and impeachment.

Meanwhile, Iran, Turkey and Russia will continue to bleed out the US forces in Syria while sanctions prove to be increasingly less effective. Simultaneously, the Astana process moves forward with all groups trying to reach out to each other around the sclerotic reach of the US and put an end to this shameful period of US foreign policy insanity.

6. GLOBAL ISSUES

MALAYSIA/GOLDMAN SACHS

this is good:  Malaysia wants Goldman Sachs to appear in court to answer to criminal charges.

Popcorn available for front seats….

(courtesy zerohedge)

“We Want Goldman Sachs Here”: This Is Malaysia’s Playbook For Prosecuting 1MDB Case

“Bring me Goldman Sachs!”

As outlandish as it might sound, Malaysian authorities are in the process of dragging the bank – or at least, some of its employees and subsidiaries – to Malaysia to face criminal charges filed against subsidiaries of the bank, as well as two senior bankers (who have also been indicted in the US), over charges alleging that the bank lied in its bond covenants with the intention of misleading investors in the three bond issuances it handled for 1MDB, and that Goldman knew corrupt Malaysian officials were preparing to loot 1MDB, the sovereign wealth fund at the center of one of history’s largest money laundering scandals, but chose to pursue the deals anyway.

Goldman

In a guide to how the criminal charges filed yesterday against three subsidiaries of the bank and two of its employees, Bloomberg explained that Malaysian prosecutor M Kurup, who has been tasked with overseeing the case, isn’t playing around. “We want Goldman Sachs here,” he said.

Malaysian trials are similar to the English common law system (upon which they are based):

Criminal court proceedings are public and open to all, barring exceptions made by a judge or a court gag order. (Najib’s lawyers have sought such an order for his case to prevent a “trial by media.”) Malaysia’s legal system won’t be altogether alien to western companies and lawyers, since it’s fashioned on English common law. (Malaysia gained independence from Britain in the 1950s.) So there’s a presumption of innocence for defendants and a requirement by prosecutors to prove a case beyond reasonable doubt. Goldman’s cases would be tried by a judge, highlighting one difference from English law: Malaysia scrapped juries in 1995. The seriousness of the charges — which carry fines for businesses and jail terms of up to 10 years and fines for individuals — means defendants are required to attend. A trial might be delayed or lengthened if the prosecution attempts to subpoena overseas-based personnel. “We want Goldman Sachs here,” said Malaysia’s prosecutor M Kurup.

The bank will be given the opportunity to make its defense – namely, that it was misled by corrupt Malaysian officials.

Goldman said the charges came without a chance for the firm to provide its view. “Certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions,” the bank said in a statement. “1MDB, whose CEO and board reported directly to the prime minister at the time, also provided written assurances to Goldman Sachs for each transaction that no intermediaries were involved.” According to Nizam Ismail, a partner at RHTLaw Taylor Wessing LLP in Singapore, a criminal conviction against one or more Goldman units could “affect their status as fit and proper persons” and impact their standings as licensed entities. “Regulators that are regulating Goldman entities worldwide will be watching developments in Malaysia closely,” he said. In the U.S., criminal convictions against banks used to be considered a death sentence, but they’ve become common-place after a flurry of currency-rigging cases.

But perhaps the most concerning aspect of this criminal case is the possible culpability of senior Goldman executives, including CEO David Solomon and CFO Stephen Scherr, both of whom were involved with the committees of senior partners who signed off on the deal. Unlike previous Goldman scandals, 1MDB is unique in that it originated with Goldman’s investment bank – not its trading desk, which is notorious for ripping off the faces of clients, according to CNBC.

“Anyone who’s been there a long time knows you can’t do big things without senior people knowing, period,” said one former Goldman employee, who spoke on condition of anonymity because he still has dealings with the bank. “No matter how senior you are, there’s always somebody above you. So a lot of people had to decide they were comfortable committing billions of dollars to this.”

Goldman has argued that it couldn’t have known that corrupt Malaysian financier Jho Low was planning to plunder 1MDB (DOJ officials allege $4.5 billion was diverted into slush funds and used to pay bribes). But it’s becoming increasingly clear to all that the bank knew the deals – which generated a staggering $600 million in fees (on $6.5 billion in business) due to the bank’s need to hold the bonds on its books instead of immediately pawning them off on investors. The bank said 1MDB didn’t care about the higher fees because it wanted the capital “right away”. That this also didn’t raise red flags doesn’t reflect well on Goldman’s compliance systems, which current Malaysian Prime Minister Mahathir Mohamed joked “don’t work very well.”

The upshot: As the DOJ probe ramps up and governments from Switzerland and Singapore pursue prosecutions of their own related to the 1MDB fraud, Goldman won’t be able to simply write off the Malaysians as a side show to the maneuvering of prosecutors in the US. And that probably doesn’t bode well for Goldman’s battered share price.

END

ROMANIA

Romania needs to shore up its deficit so the government is proposing to bring in an additional 10 billion lei tax bill.

Investors greeted that news by causing its stock market to plunge by 12%

(courtesy zerohedge)

Romania Stocks Plunge 12% On Proposed Bank “Greed Tax”

After the Romanian government unveiled a surprise plan to bring in about 10 billion lei ($2.5 billion US) in extra revenue, Romanian stocks plunged and bond yields spiked the most in over three years, according to Bloomberg. To fix a budget deficit that could push the country beyond critical EU thresholds, Finance Minister Eugen Teodorovici presented a package of changes targeting ways for the country to bring in more revenue. The changes are supposed to begin in 2019 and include a tax on the banking industry, which is dominated by foreign players.

It would also include new taxes on energy and telecommunications companies, in addition to capping natural gas prices. The plan also revamps a once proposed initiative to make massive changes to the retirement system in the country.

Needless to say, the markets didn’t like this proposal, with the Bucharest exchange’s BET Index plunging 11.8%, its biggest fall since 2009. Additional asset classes also saw extreme volatility. The 10 year yield jumped over 30 basis points at one point and the country’s currency, the leu, was weaker by 40 basis points. One of the biggest foreign bank operating in the country, Raiffeisen Bank International AG, was down 3.4% during trading in Vienna.

The country’s president, Klaus Iohannis, in conjunction with large businesses, urged the government to slow down before acting and called the new slate of proposed changes “hasty and illogical”.

Iohannis said the plan “clearly shows there’s a problem with the budget. The conclusion is they don’t have money, they don’t know how to get it and they’re making up all sorts of taxes on the spot.”

The additional revenue would offset many of the fiscal giveaways that have occurred under the regime of the ruling Social Democrats, including higher state salaries. The proposed slate of changes echoes moves made in countries like Hungary that similarly catalyzed shock and volatility in its investment markets.

A part of the plan that includes levies on banks assets, dubbed a “tax on greed”, could generate 3.6 billion lei next year. It would also help protect citizens from higher loan repayment costs, as it will kick in if interbank rates go above 1.5%.

Erste Group Bank economist Eugen Sinca said:

“The timing — with a few days before going live at the beginning of 2019 — the extent and the size of the measures taken together are deemed to have a seriously disruptive effect on the financial system as well as the energy, utilities and telecom markets”.

Despite the unrest and turmoil the proposed changes have created, Romania gets credit for at least trying to “take the medicine” and make sweeping changes to correct its deficit – something we’ll likely never get around to fixing in the United States.

 end

7  OIL ISSUES

8. EMERGING MARKETS

Venezuela

 

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

Euro/USA 1.1461 UP .0075 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 ALL RED

 

 

 

 

USA/JAPAN YEN 111.75  DOWN 0.655 (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 1.2681 UP   0.0056  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3465  DOWN .0010 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS THURSDAY morning in Europe, the Euro ROSE by 75 basis point, trading now ABOVE the important 1.08 level RISING to 1.1461/ Last night Shanghai composite CLOSED DOWN 13.29 POINTS OR 0.52%

 

//Hang Sang CLOSED DOWN 241.86 POINTS OR 0.94%

 

/AUSTRALIA CLOSED DOWN  1.36% /EUROPEAN BOURSES RED

 

 

 

 

 

 

The NIKKEI: this THURSDAY morning CLOSED  DOWN 595.34 POINTS OR 2.84%

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED RED

 

 

 

 

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 241.86 POINTS OR 0.94% 

 

 

/SHANGHAI CLOSED DOWN 13.29  POINTS OR 0.52%

 

 

 

Australia BOURSE CLOSED DOWN  1.36%

Nikkei (Japan) CLOSED DOWN 595.34 POINTS OR 2.84%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1255.00

silver:$14.74

Early THURSDAY morning USA 10 year bond yield: 2.77% !!! DOWN 0 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 2.98 DOWN 3  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early THURSDAY morning: 96.34 DOWN 70 CENT(S) from  WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

And now your closing THURSDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.66% UP 1    in basis point(s) yield from WEDNESDAY/

JAPANESE BOND YIELD: +.03%  DOWN 1  BASIS POINTS from WEDNESDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY…

 

SPANISH 10 YR BOND YIELD: 1.38% DOWN 0  IN basis point yield from WEDNESDAY

ITALIAN 10 YR BOND YIELD: 2.74 DOWN 3     POINTS in basis point yield from WEDNESDAY/

 

 

the Italian 10 yr bond yield is trading 136 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS UP TO +.23%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.51% 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 WEDNESDAY

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

Euro/USA 1.1435 UP  .0048 or 48 basis points

 

 

USA/Japan: 111.36 DOWN  1.048 OR 105 basis points/

Great Britain/USA 1.2653 UP .0028( POUND UP 28  BASIS POINTS)

Canadian dollar DOWN 21 basis points to 1.3520

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY closed UP AT 6.885-  ON SHORE  (YUAN UP)

THE USA/YUAN OFFSHORE:  6.8975(  YUAN UP)

TURKISH LIRA:  5.2713

the 10 yr Japanese bond yield closed at +.03%

 

 

 

Your closing 10 yr USA bond yield DOWN 5 IN basis points from WEDNESDAY at 2.76 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.98 DOWN 6 in basis points on the day /

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

Your closing USA dollar index, 96.62 DOWN 41 CENT(S) ON THE DAY/1.00 PM/

 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for THURSDAY: 4:00 PM 

London: CLOSED DOWN 54.01 POINTS OR 0.80%

German Dax : CLOSED DOWN 155.11 POINTS  OR 1.44%
Paris Cac CLOSED DOWN 84.99 POINTS OR 1.78%
Spain IBEX CLOSED DOWN 172.90 POINTS OR 1.97%

Italian MIB: CLOSED DOWN: 365.00 POINTS OR 1.93%/

 

 

WTI Oil price; 46.29 1:00 pm;

Brent Oil: 55.15 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    68.34  THE CROSS HIGHER BY .92 ROUBLES/DOLLAR (ROUBLE LOWER BY 92 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  5.2713 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD FALLS +.23 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 :46.12

 

BRENT :54.26

USA 10 YR BOND YIELD: 2.80%…deadly..strong indicator of recession .

 

 

USA 30 YR BOND YIELD: 3.03%/.

USA: 2 YR 2.67%

 

 

 

EURO/USA DOLLAR CROSS: 1.1455 ( UP68 BASIS POINTS)

USA/JAPANESE YEN:111.27 DOWN 1.135 (YEN UP 114 BASIS POINTS/ .

 

USA DOLLAR INDEX: 96.38 DOWN65 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.2662 UP 36 POINTS FROM YESTERDAY

the Turkish lira close: 5.2587

the Russian rouble:  68.23 down .89 Roubles against the uSA dollar.( down 89 BASIS POINTS)

 

Canadian dollar: 1.3487 DOWN 13 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8885  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8927 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.23%

 

The Dow closed  DOWN 464.06 POINTS OR 1.99%

 

NASDAQ closed DOWN 108.42 POINTS OR 1.63%

 


VOLATILITY INDEX:  28.36 CLOSED UP 2.78 

 

LIBOR 3 MONTH DURATION: 2.789%  .LIBOR  RATES ARE RISING/SMALL FALL 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

 

Shutdown Shudders Spark Dollar Dump As Powell Plunge Goes Global

No bounce after Powell crushed the Fed Put dream and then Fed’s Dudley chimed in today adding that “The Fed is not there to take away the market’s pain,” adding that The Fed “doesn’t care about market prices for themselves.”

 

 

 

In other words – to all the whiners who are seeing their ‘no brainer’ stocks sinking…

 

 

 

 

However, Dudley’s internal ‘bad cop’ quickly disappeared and out came the ‘good cop’ to rescue things: if the economy starts to weaken, The Fed should definitely pause” and that sent stocks rocketing back higher… but then he spoiled it again “We need to slow the economy down, and so somewhat tighter financial conditions aren’t really a bad thing.”  

So hike until you really break something…

*  *  *

China was relatively well behaved last night, but did extend the losses from Wednesday (SHCOMP -30% from highs)…

 

Japan was ugly with TOPIX dropping into a bear market…

 

European stocks plunged… (the Bloomberg Europe 500 index is down 17% from highs)

 

And while overnight US futures failed to catch a bid, they trod water until around 7amET, then accelerated lower at the US open, rescued only by Dudley talking about easing…

 

The Dudley bounce saved stocks from what could have been a lot worse.., but it was still ugly…

 

And volume was huge (double recent average volume)…

 

 

 

For the month, Dow, S&P, and Nasdaq are down 10% with Trannies and Small Caps even worse…

 

On the year, Nasdaq is now down almost 6%…

 

Since The Fed statement, The Dow is down 5%, Gold and Bonds higher and the Dollar slightly lower…

 

How much further can it go? 300 more S&P points to just catch down to the tightening of financial conditions…

 

Biotechs were battered (XBI down 33%)

 

Banks continue to slide (11th day of the last 12)…

 

with Citi down a record 11 days in a row…

 

Credit markets carnage continued…

 

And stocks are catching down…

 

Bonds and stocks decoupled this afternoon…

 

Treasuries were also dumped along with stocks (Risk Parity deleveraging) with the long-end underperforming (+2-4bps)…

 

Breakevens continue to crash along with crude…

 

10Y Yield remains below the 2.80 level though…

 

The Dollar Index dumped overnight, giving up all its post-Powell gains and accelerating lower again on shutdown concerns…Today is the biggest drop in the dollar since March

 

Safe haven buying in Swissy sent the currency to its strongest in 3 months and back above its 200DMA…

 

Cryptos caught a bid again – Bitcoin up 25% this week, back above $4000…

 

Briefly..

 

Crude and gold continue to diverge dramatically…

 

Gold was also well bid (safe-haven buying) which sent it above $1265 and above its 200DMA to the highest since June…

Silver broke above its 50- and 100-DMA…

 

WTI crashed again – dumping 4.5% back to a $45 handle…the lowest since Aug 2017

Is the ‘value’ of oil nearing a ‘low’…

 

Finally, we note that hedge funds have slumped so far that all the post-Trump-election gains have been eviscerated…

And the market remains dramatically divergent from The Fed on where rates are going from here..

The world’s most systemically important banks have crashed to the lowest since Nov 2016…

There has only been one December (1931) in the history of the stock market that was worse than this…

As Rosie concluded: “All markets are flashing a yellow flag on the economy.”

But for now – $16.7 trillion of market cap has been erased from global stock markets this year…

market trading

Stocks fall badly, yields fall as the yield curve collapses after Mnuchin jawboning fails

(courtesy zerohedge)

Stocks, Credit, Yield Curve Collapse After Mnuchin “Market Over-Reacted” Jawbone Fails

Stocks dropped to sessions lows, with the Nasdaq following the Russell 2000 and Tokyo-traded shares into bear-market territory, after Treasury Secretary Steven Mnuchin said Thursday that the market “overreacted” to Fed Chairman Jerome Powell’s remarks a day earlier.

  • MNUCHIN SAYS MARKET OVER-REACTED TO FED’S COMMENTS
  • MNUCHIN: MARKET WAS DISAPPOINTED WITH FED CHAIRMAN COMMENTS
  • MNUCHIN SAYS HE FOCUSES ON FED’S INFLATION PROJECTION
  • MNUCHIN: IF LOW INFLATION CONTINUES, FED RATE PATH MAY CHANGE
  • MNUCHIN: WE’RE COMFORTABLE WITH TREASURY SUPPLY, NOT AS WORRIED AS MARKETS APPEAR

But the market seems anxious that Mnuchin feels the need to jawbone this back… and it’s failing fast.

All the major indices are falling hard..

The Nasdaq just entered a bear market and is down 5% from the FOMC Statement:

And VIX is above 28…

And if The Fed keeps ‘normalizing’, expect it to get a lot worse…

Across the majors:

  • Dow -15%
  • S&P -16%
  • Nasdaq Composite -20%
  • Trannies -22%
  • Russell 2000 -24%
  • FANGs -29%
  • GSIBs -35%
  • Goldman Sachs -39%

Credit markets are crashing…

And the yield curve is flashing bright red policy error signals…2s10s down to single-digits

And don’t forget tomorrow is Quad witch.

end
two things here to point out:
1. credit is crashing
2. liquidity is non existent
(courtesy zerohedge)

Credit Is Crashing (And It’s Not Just Energy Junk)

High yield bond prices are collapsing, but it is clear that liquidity has evaporated as traders have sent high yield bond ETFs (more liquid) dramatically below its fair-value as they seek hedges ahead of their liquidation needs.

Today is HYG’s worst day since Brexit, with price crashing to lowest since April 2016… (HY risk nearing the key 500bps level)

And demand for more lioquid hedges has sent HYG below its implied value (as market participants use ETFs to cover their book because they can’t transact in the cash markets)…

And it’s not just energy junk – its systemic…

And it’s time to start worrying…for stocks…

And VIX…

end
Early this afternoon:

Dow Dumps 1400 Points From Post-Powell Highs

With S&P nearing bear market territory (and Nasdaq already there), The Dow is accelerating its losses, down 600 points today amid shutdown fears, and down 1400 points from its post-Powell highs yesterday…

Leaving Dow and S&P down 8% year-to-date…

And the S&P only 3% away from bear market…

Somebody do something!!

end

Everyday you must pay attention to what Jeffrey Snider states.  Today he lands into the Fed’s statement that the economy is strong and healthy.  The market response: AYFKM?!!!

Powell: “Strong, Healthy”; Market: AYFKM?!

Authored by Jeffrey Snider via Alhambra Investment Partners,

The official statement that accompanies each every FOMC policy action is by nature bland and sterile. Still, despite the sparseness of printed words those that are included can say a lot. Here’s its essence for what just wrapped up in December 2018:

The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term.

The statement used the word “strong” three times in the paragraph before, too. You can see just how much the unemployment rate grabs these empty suits in spite of so much else.

Markets reacted uniformly with AYFKM. What else can they say, and trade, at this point?

Powell has trapped himself in Yellen’s prior position.

If he’s not careful, he’ll smile his way past that all the way to Bernanke’s “contained.”

Things are accelerating to the downside, not stabilizing.

How about:

Besieged by investor withdrawals, mutual funds that invest in risky corporate loans have been unloading big chunks of loans in recent days. The selling is driving down prices to levels not seen in more than two years and forcing banks to keep some of the unwanted debt on their balance sheets.

Strong. Definitely healthyAs noted earlier, there’s something to this SIFI business, just not what regulators were shooting for when they created the designation.

Congrats Chairman Powell, you are officially a market joke. This will actually be healthy in the long run. Only then can we really talk about strong – and mean it.

market data/

Soft data Philly mfg index tumbles to almost 3 yr low.  We are continually now getting awful readings even from soft data accounts

(courtesy zerohedge)

‘Soft’ Survey Data Slammed To Reality: Philly Fed Tumbles To 28-Month Lows

All that inherently over-priced-in optimism that sparked a notable divergence between slumping ‘hard’ real economic data and soaring ‘soft’ survey data is slowly getting sucked out of participants’ narratives.

The latest example is The Philly Fed survey, which dropped from 12.9 to 9.4 (against expectations of a bounce to 15.0). This is the weakest Philly Fed print since August 2016…erasing all of Trump’s hope.

Under the hood it was more mixed with prices paid lower but employment and orders higher as the average work week collapsed.

  • Dec. prices paid fell to 38.0 vs 39.3
  • New orders rose to 14.5 vs 9.1
  • Employment rose to 18.3 vs 16.3
  • Shipments fell to 10.0 vs 21.6
  • Delivery time rose to 6.7 vs 5.0
  • Inventories fell to -0.2 vs 9.5
  • Prices received rose to 26.2 vs 21.9
  • Unfilled orders rose to 9.7 vs -4.8
  • Average workweek fell to 0.5 vs 6.3

So for now it seems that new orders are being satisfied from inventories and not new production…

end

USA ECONOMIC STORIES OF INTEREST

This is alarming:  we now are witnessing big funds liquidating as panic grips the loan market.  We highlighted this to you early in the week.  Huge funds are liquidating as they are receiving redemption notices from panic investors

 

(courtesy zerohedge)

SWAMP STORIES

Trump reverses: he wants a Trump wall and he will veto the CR unless he gets a perfect border security

i.e. a steel wall

(courtesy zerohedge)

Trump Throws Stopgap Bill Into Disarray, Will Not Sign Anything Without “Perfect” Border Security

Sighs of relief over an averted government shutdown turned into chaos Thursday morning after President Trump announced via Twitter that he won’t sign any legislation unless it has “perfect” border security.

“The Democrats, who know Steel Slats (Wall) are necessary for Border Security, are putting politics over Country,” tweeted Trump. “What they are just beginning to realize is that I will not sign any of their legislation, including infrastructure, unless it has perfect Border Security. U.S.A. WINS!”

Donald J. Trump

@realDonaldTrump

The Democrats, who know Steel Slats (Wall) are necessary for Border Security, are putting politics over Country. What they are just beginning to realize is that I will not sign any of their legislation, including infrastructure, unless it has perfect Border Security. U.S.A. WINS!

Meanwhile Politico‘s Jake Sherman tweeted “WARNING … I’ve spoken to multiple senior White House aides this morning who have no idea what the plan is for the stopgap spending bill. Concerns he might veto are rampant.”

Jake Sherman

@JakeSherman

WARNING … I’ve spoken to multiple senior White House aides this morning who have no idea what the plan is for the stopgap spending bill. Concerns he might veto are rampant.

On Wednesday night, the Senate passed a seven-week stopgap funding bill to prevent a partial government shutdown set to begin on midnight Friday. 

Senators passed the legislation by voice vote, which represented the final item on the Senate’s to-do list as they wrap up their work for the year this week; the bill will now go to the House – after which President Trump will decide on whether to endorse it or not.

House Republican leadership has told members in the chamber that they will vote on the stopgap measure on Thursday.

Several prominent conservatives, meanwhile, have called on Trump to veto the spending bill over its lack of wall funding.

Via Rush Limbaugh:

A government shutdown never hurts a damn soul, and every year at this time, “The government might shut down! It might shut down! It might shut down!” Trump should not sign this bill and leave for Mar-a-Lago, and tell them it’s not gonna get signed and their precious government’s not gonna get back up and running ’til there’s $5 billion. What are they gonna do? Impeach him? Huh? –Rush Limbaugh:

Mark Meadows

@RepMarkMeadows

Punting to Feb. 8 on a CR not only gives Democrats a Christmas present, it offers them a Valentine’s Day gift. Democrats will win, the wall will not be built, and Congress will once again have punted when we should’ve been taking a stand. The time to fight is now. Zero excuse.

Washington Examiner

@dcexaminer

Pete Hegseth called on President Trump to reject a government spending bill that doesn’t include any money for his border wall.https://washex.am/2CqdSOG

Jake Sherman

@JakeSherman

Hannity — being guest hosted by Dan Bongino — is on an extended A block about the border wall, saying the base “wants the wall and wants it now”

Jake Sherman

@JakeSherman

Matt Schlapp: Trump should veto the stopgap funding bill

end
SWAMP STORIES/MAJOR STORIES//THE KING REPORT
AND SPECIAL THANKS TO CHRIS POWELL OF GATA FOR SENDING THIS TO US:
@rollcall: Senate Majority Leader Mitch McConnell announces short-term funding bill that would run through Feb. 8, officially punting border wall debate to February [No chance with Dems running House]
 
John McCain Associate Gave Dossier to Buzzfeed [and they broke the story]
David Kramer, a former State Department official who was an executive at the McCain Institute, met on Dec. 29, 2016 with BuzzFeed reporter Ken Bensinger, according to a filing submitted Wednesday by U.S. District Court Judge Ursula Ungaro…
     McCain dispatched Kramer to London to meet with Steele. After that Nov. 28, 2016 encounter, Kramer obtained a copy of the dossier from Glenn Simpson, the founder of Fusion GPS, the firm that hired Steele on behalf of the Clinton campaign and DNC…
 
Der Spiegel says top journalist faked stories for years – “made up stories and invented protagonists” in at least 14 out of 60 articles that appeared in its print and online editions…

 

-END-

I WILL SEE YOU ON FRIDAY
I WILL REPORT TO YOU VERY LATE IN THE EVENING
AND I WILL PROBABLY NOT SUPPLY THE EARLY MORNING CURRENCY DATA.
H
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