DEC 24/DOW PLUMMETS ANOTHER 653 POINTS WHILE THE NASDAQ FELL 221 POINTS: EXPECT MASSIVE MARGIN CALLS WHICH WILL FURTHER CAUSE DESTRUCTION IN NEW YORK TRADING/GOLD RISES $15.15 TO $1269.80/SILVER UP 12 CENTS TO $14.77/MNUCHIN CONVENES THE PLUNGE PROTECTION TEAM ON SUNDAY TRYING TO AVOID A DOW MASSACRE: HE FAILED/ USA GOVERNMENT CONTINUES TO BE SHUTDOWN/

 

 

 

GOLD: $1269.80 UP $15.15 (COMEX TO COMEX CLOSINGS)

Silver:   $14.77 UP 12 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  1269.50

 

silver: $14.78

 

EXPECT MASSIVE MARGIN CALLS WHEN TRADING BEGINS ON WEDNESDAY.

 

 

 

 

 

For comex gold and silver:

DEC

 

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  DEC CONTRACT: 34 NOTICE(S) FOR 3400 OZ (0.1057 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  7422 NOTICES FOR 742200 OZ  (23.085TONNES)

 

 

SILVER

 

FOR DECEMBER

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

30 NOTICE(S) FILED TODAY FOR  150,000  OZ/

 

total number of notices filed so far this month: 4321 for 21,605,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE  $4096:  UP 176

 

Bitcoin: FINAL EVENING TRADE: $4025  UP 85 

 

end

 

XXXX

again either JPMorgan or Goldman Sachs take a huge issance (stopping) of gold at the comex.

today’  JPMorgan  9/34 contracts

EXCHANGE: COMEX
CONTRACT: DECEMBER 2018 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,253.800000000 USD
INTENT DATE: 12/21/2018 DELIVERY DATE: 12/26/2018
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
323 C HSBC 4
657 C MORGAN STANLEY 12
661 C JP MORGAN 9
737 C ADVANTAGE 22 21
____________________________________________________________________________________________

TOTAL: 34 34
MONTH TO DATE: 7,422

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total OPEN INTEREST FELL BY A FAIR SIZED  634 CONTRACTS FROM 174,547 DOWN TO 173,997 WITH FRIDAY’S 14 CENT LOSS 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 FAIR SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

610 EFP’S FOR DECEMBER AND 0 FOR MARCH AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 610 CONTRACTS. WITH THE TRANSFER OF 610 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 610 EFP CONTRACTS TRANSLATES INTO 9.32MILLION OZ  ACCOMPANYING:

1.THE 14 CENT LOSS 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 21.665 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: 25,518 CONTRACTS (FOR 16 TRADING DAYS TOTAL 25,518 CONTRACTS) OR 127.59 MILLION OZ: (AVERAGE PER DAY: 1594 CONTRACTS OR 7.974 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF DEC:  127.59 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 18.14% 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:           2,804.65    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 FAIR SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 634 WITH THE 14 CENT LOSS IN SILVER PRICING AT THE COMEX //YESTERDAY..THE CME NOTIFIED US THAT WE HAD A FAIR SIZED EFP ISSUANCE OF 610 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE LOST A TINY SIZED: 24 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 610 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 634 OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 14 CENT LOSS 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: 30 NOTICE(S) FOR 150,000 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 21.665 MILLION OZ
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT).

 

IN GOLD, THE OPEN INTEREST FELL BY A CONSIDERABLE SIZED 3776 CONTRACTS DOWN TO 434,324 WITH THE LOSS IN THE COMEX GOLD PRICE/(A FALL IN PRICE OF $10.15//.YESTERDAY’S TRADING) 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG  SIZED 10,412 CONTRACTS:

 

DECEMBER HAD AN ISSUANCE OF 10,412 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 432,997. 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 AN GOOD SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6636 CONTRACTS:  3776 OI CONTRACTS DECREASED AT THE COMEX AND 10,412 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 6636 CONTRACTS OR 663,600 OZ = 20.64 TONNES. AND ALL OF THIS GOOD DEMAND OCCURRED WITH A LOSS IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $10.15???

 

 

 

 

YESTERDAY, WE HAD 19099 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DEC : 144,792 CONTRACTS OR 14,472,000 OZ OR 450.36 TONNES (16 TRADING DAYS AND THUS AVERAGING: 9049EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 16TRADING DAYS IN  TONNES: 450.36 TONNES

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

THUS EFP TRANSFERS REPRESENTS 450.36/2550 x 100% TONNES = 17.64% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     7228.30  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 GOOD SIZED DECREASE IN OI AT THE COMEX OF 3776 WITH THE LOSS IN PRICING ($10.15) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A VERY STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 10,412 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 10,412 EFP CONTRACTS ISSUED, WE HAD AN GOOD GAIN OF 6636 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

10,412 CONTRACTS MOVE TO LONDON AND 3776 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 20.64 TONNES). ..AND ALL OF THIS  DEMAND OCCURRED WITH THE LOSS OF $10.15 IN FRIDAY’S TRADING AT THE COMEX??

 

 

we had: 34 notice(s) filed upon for 3400oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $15.15 TODAY 

 

 

A HUGE CHANGE IN GOLD INVENTORY: A MASSIVE DEPOSIT OF 5.00 TONNES OF GOLD.

 

 

 

 

 

 

 

 

 

 

/GLD INVENTORY   774.14 TONNES

Inventory rests tonight: 774.14 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 12 CENTS  TODAY:

 

A TINY CHANGE IN SILVER INVENTORY

A DEPOSIT OF ONLY 84,000 OZ

 

 

/INVENTORY RESTS AT 317.223 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 FAIR SIZED 634 CONTRACTS from 174,547 DOWN TO 173,913  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:

 

610 CONTRACTS FOR DECEMBER. 0 CONTRACTS FOR MARCH AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 610 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 634 CONTRACTS TO THE 610 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A TINY LOSS  OF 24 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 0.120 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 21.665 MILLION OZ  STANDING IN DECEMBER.

 

 

RESULT: A FAIR SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 14 CENT PRICING LOSS THAT SILVER UNDERTOOK IN PRICING// FRIDAY.BUT WE ALSO HAD ANOTHER GOOD SIZED 610 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)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 10.76 POINTS OR 0.43% //Hang Sang CLOSED DOWN 102.04 POINTS OR 0.40% //The Nikkei closed / Australia’s all ordinaires CLOSED UP 0.48%  /Chinese yuan (ONSHORE) closed UP  at 6.9011 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 44.98 dollars per barrel for WTI and 53.44 for Brent. Stocks in Europe OPENED RED 

//ONSHORE YUAN CLOSED UP AT 6.9011AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9068: 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/

 

 

 

b) REPORT ON JAPAN

 

 

3 C/  CHINA

I)China will not be too happy with this:  Another Chinese national is charged with theft of trade secrets from Petroleum company Phillips 66

( zerohedge)

II)China is now beginning to cut tariffs on 700 items as their are trying to push important by 30 trillion dollars over the next 15 years.  This is Xi’s plan initiated at the 2017 World Economic forum

(courtesy zerohedge)

 

4/EUROPEAN AFFAIRS

EUROPE

Europe’s last hope for a globalist view was Macron.  That ended with a thud. The European project has now come to an end.

( GEFIRA)

FRANCE
Although the numbers were down from last week, damage and rioting continued in France for the 6th straight week.
(courtesy zerohedge)

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

ISRAEL

In a risky move, Netanyahu dissolves the Israel Parliaments and calls for new elections

(courtesy zerohedge)

 

 

6. GLOBAL ISSUES

 

 

 

7. OIL ISSUES

 

 

 

8 EMERGING MARKET ISSUES

i)Venezuela

 

 

 

9. PHYSICAL MARKETS

i)This is a must see interview as Chris Powell lays out perfectly the manipulation of gold and silver by the bankers and the CFTC’s stonewalling.
( zerohedge)

ii)The New York Sun has a point:  should Powell resign because his views are different from the President( New York Sun/GATA)

iii)Mnuchin, the treasury security summons the plunge protection team on Sunday to protect Monday’s trading. As per early morning trading it did not help!!

( Lange/Reuters/GATA)

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

 

 

MARKET TRADING

SUNDAY

On Sunday, Mnuchin called in the Plunge Protection team to calm the markets this morning. So far it has not worked

(courtesy zerohedge)

MONDAY

a)Markets failed today as the Plunge protection team could not bail out the markets.

(courtesy zerohedge)

b)Then the PPT tried again pushing the Nasdaq to even:

(ZEROHEDGE)

c)A flash crash in the two yr treasury even though the Dow finished down over 600 points

( zerohedge)

d)And now for the first time in quite some time, the 2 yr curve inverts over the one yr rate.

(courtesy zerohedge)

ii)Market data/

 

 

 

 

iii)USA ECONOMIC/GENERAL STORIES

A)A good account of why Trump is withdrawing from Syria.  Strangely he acted unilaterally after a phone call from the nutcase Erdogan

( zerohedge)

B)Trump is not stupid..he is quite aware that Powell wants to blow up the economies of the globe by continually raising rates.
Trump is also quite aware that the USA economy is lousy and has been lousy for quite some time.
If he fires Powell, the stock market plummets by maybe 50% or greater
Does Trump take the blame for whacking the economy?
Does Trump finally come to realize that he may have to use the gold card..
have fun with this..
( zerohedge)

C)We have been continually seeing news of collateral and loan markets freezing up. Friday night we witness banks cannot resell 1.6 billion dollars of leveraged buy out loans.Although small in comparison to the huge 2.3 trillion corporate loan accounts, news will quickly spread and this  could cause the entire market to freeze.

( zerohedge)

D)Trump ready for a long partial lockout of government as he wants his wall

(courtesy zerohedge)

 

iv)SWAMP STORIES

the Democrats accuse Trump of plunging the country into chaos as the Dow plummets over 600 points and no end of the shutdown.

‘( zerohedge)

 

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

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN FELL BY A CONSIDERABLE SIZED 3776 CONTRACTS DOWN to an OI level 432,997 WITH THE LOSS IN THE PRICE OF GOLD ($10.15) IN FRIDAY’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 10,412 EFP CONTRACTS WERE ISSUED:

FOR DECEMBER:  10,412 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  10,412 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:  6636 TOTAL CONTRACTS IN THAT 10,412 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 3776 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 6636 contracts OR 663,600  OZ OR 20.64 TONNES.

 

We are now in the active contract month of December and we now have a total of 131 contracts stand in December so we had a loss of 7 contracts.  We had 27 notices served yesterday, so we GAINED 20 contracts or 2000 oz will stand as these guys REFUSED TO  morph into London based forwards and as well as NEGATING a fiat bonus.

QUEUE JUMPING RETURNS TO THE GOLD COMEX!!

 

 

The next delivery month after December is January which saw it FALL TO 1608 FOR A LOSS OF 360 CONTRACTS.  February LOST A CONSIDERABLE 5442 contracts to stand at 317,662 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 34 NOTICES FILED AT THE COMEX FOR 3400 OZ. (0.037 tonnes)

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total silver OI FELL BY 634 CONTRACTS FROM 174,547 up TO 173,913 (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 14 CENT LOSS IN PRICING.

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF DECEMBER AND, WE WERE  INFORMED THAT WE HAD A FAIR SIZED 610 EFP CONTRACTS:

 

FOR DECEMBER: 610 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: 610.  ON A NET BASIS WE GAINED 113 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A  634 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 610 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET LOSS ON THE TWO EXCHANGES:   24 CONTRACTS...AND ALL OF THIS DEMAND OCCURRED WITH A 14 CENT LOSS IN PRICING// FRIDAY

 

 

 

 

We are now in the non active delivery month of DECEMBER and here in this front month of December we now have 42 contracts standing for a LOSS of 69 contracts.  We had 85 contracts stand for delivery yesterday so we gained 16 contracts or an additional 80,000 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 10 contracts up to 1642 contracts.  February saw a 11 contract GAIN to stand at 177. March, the next big delivery month after December saw a LOSS of 510 contracts UP to 142,602

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 30 notice(s) filed for 150,000 OZ for the DEC, 2018 COMEX contract for silver

 

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 139,232 contracts,

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  222,160  contracts

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

 

 

 

 

 

 

 

 

 

 

 

INITIAL standings for  DEC/GOLD

DEC 24-/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
5852.798
oz
HSBC
JPM
Deposits to the Dealer Inventory in oz nil oz

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

 

 

nil

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
34 notice(s)
 3400 OZ
No of oz to be served (notices)
97 contracts
(9700 oz)
Total monthly oz gold served (contracts) so far this month
7422 notices
742200 OZ
23.085 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 2 gold withdrawals from the customer account:

i) out of HSBC: 3823.798 oz

ii) Out of jPMorgan: 1929.000 oz??

total gold withdrawing from the customer;  5852.798 oz

 

we had 0  adjustments….

FOR THE DEC 2018 CONTRACT MONTH)

Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 34 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 9 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
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 (7422) x 100 oz , to which we add the difference between the open interest for the front month of DEC. (131 contract) minus the number of notices served upon today (34 x 100 oz per contract) equals 751,900 OZ OR 23.387 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 (7422 x 100 oz)  + {131)OI for the front month minus the number of notices served upon today (34 x 100 oz )which equals 751,900 oz standing OR 23.387 TONNES in this  active delivery month of DECEMBER.

WE GAINED 20 CONTRACTS OR 2000 OZ WILL  STAND AT THE COMEX AS THEY REFUSED TO MORPH INTO A LONDON BASED FORWARDS AS WELL AS NEGATING A FIAT BONUS.

 

 

 

 

 

THERE ARE ONLY 22.417 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 23.387 TONNES STANDING FOR DECEMBER

 

 

total registered or dealer gold:  720,731.855 oz or   22.417 tonnes*
total registered and eligible (customer) gold;   8,322,744.473 oz 258.87 tonnes
*however we have 23.085 tonnes of gold ALREADY SERVED UPON against dealer inventory of 22.417 tonnes and so far we have had very little 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 23.387 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 24, 2018
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
12,200.900 oz
HSBC
JPM

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
nil
oz
HSBC
No of oz served today (contracts)
30
CONTRACT(S)
150,000 OZ)
No of oz to be served (notices)
12 contracts
60,000 oz)
Total monthly oz silver served (contracts) 4321 contracts

(21,605,000 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 0 deposits into the customer account

 

i) Into JPMorgan: nil oz

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

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

 

ii) Into   everybody else:  nil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today: nil   oz

we had 2 withdrawals out of the customer account:
i)Out of HSBC: 2057.200 oz
ii) Out of JPMorgan: 5147.300 oz

 

 

 

 

 

total withdrawals: 12,200.900   oz

 

we had 1 adjustments and this is what I look for in settlements..we got it in silver but not in gold yet.

 

ii) Out of I D   5062.900 oz was adjusted out of the customer account and this landed into the dealer account of I D

 

 

total dealer silver:  83.398 million

total dealer + customer silver:  293.566 million oz

 

 

 

 

The total number of notices filed today for the DEC 2018. contract month is represented by 30 contract(s) FOR 150,000  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 4321 x 5,000 oz = 21,605,000 oz to which we add the difference between the open interest for the front month of DEC. (42) and the number of notices served upon today (30x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the DEC/2018 contract month: 4321(notices served so far)x 5000 oz + OI for front month of DEC( 42) -number of notices served upon today (30)x 5000 oz equals 21,665,000 oz of silver standing for the DEC contract month.  This is a strong number of oz standing for an off delivery month.

We GAINED 16 contracts or 80,000 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.

 

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY:  21,491 CONTRACTS  … 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 54.487 CONTRACTS… 

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

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 54,487 CONTRACTS EQUATES to 272 million OZ  38.91% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -4.00-% (DEC 24/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.28% to NAV (DEC 24 /2018 )
Note: Sprott silver trust back into NEGATIVE territory at -4.00%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.73/TRADING 12.28/DISCOUNT 3.61

END

And now the Gold inventory at the GLD/

DEC 24/WITH GOLD UP $15.15: A HUGE DEPOSIT OF 5.00 TONNES INTO THE GLD/INVENTORY RESTS AT 774.14 TONNES

DEC 21/WITH GOLD DOWN $10.15 TODAY: A HUGE WITHDRAWAL OF 2.65 TONNES/INVENTORY RESTS AT 769.14 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

DEC 24.2018/ Inventory rests tonight at 774.14 tonnes

*IN LAST 522 TRADING DAYS: 161.02 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 422 TRADING DAYS: A NET 1.02 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

DEC 24

DEC 21/WITH SILVER DOWN 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.139 MILLION OZ/

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 24/2018:

 

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 2.40/ and libor 6 month duration 2.91

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

G0LD LENDING RATE: + .51

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.64%

LIBOR FOR 12 MONTH DURATION: 3.07

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.43

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

off for Christmas

 

 
END
 
ii) GATA stories
This is a must see interview as Chris Powell lays out perfectly the manipulation of gold and silver by the bankers and the CFTC’s stonewalling.
courtesy zerohedge)

 J.P Morgan trader’s confession, CFTC’s stonewalling reviewed by GATA secretary

 Section: 

10:21a Sunday, December 23, 2018

Dear Friend of GATA and Gold:

Interviewed Friday by Chris Marcus of Arcadia Economics (https://arcadiaeconomics.com), your secretary/treasurer discussed recent developments in gold and silver market rigging by the U.S. government, its agents, and others. Among them:

— The confession by former JPMorganChase trader John Edmonds; whether he will incriminate the bank’s former commodities desk chief, Blythe Masters; and the possibility that the bank was front-running government trades brokered by the bank.

 

Silver market analyst Ted Butler’s longstanding accusations of market rigging against JPMorganChase and the bank’s refusal to sue him for libel or otherwise rebut him.

— The efforts of former U.S. Commodity Futures Trading Commission member Bart Chilton to force the commission to hear GATA formally at a commission hearing.

— The failure of the CFTC’s long-running investigation of manipulation of the silver market in light of the confession just obtained by the Justice Department from the former JPMorganChase trader.

— The refusal of CFTC to answer GATA’s questions as to whether the U.S. government and other governments are secretly trading U.S. futures markets and whether this trading is subject to the commission’s jurisdiction.

— The possibility of an international currency revaluation including gold.

The interview is 33 minutes long and can be viewed at You Tube here:

https://www.youtube.com/watch?v=vQiuQOggRxc&feature=youtu.be

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

END\\

The New York Sun has a point:  should Powell resign because his views are different from the President

(courtesy New York Sun/GATA)

New York Sun: Trump should take on the Fed

 Section: 

From The New York Sun
Sunday, December 23, 2018

Should the chairman of the Federal Reserve take a lesson from Secretary of Defense Mattis?

The ex-general is being praised for the letter tendering his resignation to the president. “Because you have the right to have a secretary of defense whose views are better aligned with yours on these and other subjects,” Secretary Mattis wrote, “I believe it is right for me to step down from my position.”

Well, if that’s such a call to honor, what about Chairman Jerome Powell? The misalignment of views between the president and Secretary Mattis is nothing compared to the differences between Mr. Trump and his Fed chairman. Mr. Mattis’s nose was out of joint because of a difference of opinion on our allies. Messrs. Trump and Powell are at odds over the core of the whole economy. …

… For the remainder of the commentary:

https://www.nysun.com/editorials/trump-should-take-on-the-fed/90510/

END

Why London is now longer the central player in gold mining as all gold mines struggle

 

(courtesy Biesheuvel/Bloomberg)

London’s streets are no longer paved with gold as miners struggle

 Section: 

By Thomas Biesheuvel
Bloomberg News
Sunday, December 23, 2018

Reports that AngloGold Ashanti Ltd. is considering a London listing provide some festive cheer to a city that’s lost its way as a home for gold miners.

While Toronto, Johannesburg and Sydney have long hosted the biggest producers, London vies with New York as the world’s premier gold trading hub and its financiers have bankrolled the industry since the development of South Africa’s giant gold fields more than 130 years ago. When junior gold miners flocked to the city in the early 2000s, a renaissance seemed at hand.

That promise hasn’t been realized as companies from Petropavlovsk Plc and Acacia Mining Ltd. to Centamin Plc struggled to reach their potential. Star performer Randgold Resources Ltd. will exit next year after its acquisition by Barrick Gold Corp., capping a slump in the market value of London-listed gold and silver miners. That’s left fund managers struggling to find liquid gold stocks as the bullion price languishes.

“There has been a lot of value destruction in the sector,” said James Bell, an analyst at RBC Capital Markets in London. “Investors are saying: “not only do I have no conviction on where the gold price is going, but also these companies are fundamentally high risk.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-12-23/london-s-streets-no-l…

end

 

Mnuchin, the treasury security summons the plunge protection team on Sunday to protect Monday’s trading. As per early morning trading it did not help!!

(courtesy Lange/Reuters/GATA)

Treasury secretary summons ‘Plunge Protection Team’ as markets tumble

 Section: 

By Jason Lange
Reuters
Sunday, December 23, 2018

WASHINGTON — U.S. President Donald Trumps Treasury secretary called top U.S. bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team.”

U.S. stocks have fallen sharply in recent weeks on concerns over slowing economic growth, with the S&P 500 index on pace for its biggest percentage decline in December since the Great Depression.

… 

 

Today I convened individual calls with the CEOs of the nation’s six largest banks,” Treasury Secretary Steven Mnuchin said on Twitter shortly before financial markets were due to open in Asia. …

… For the remainder of the report:

https://www.reuters.com/article/us-usa-treasury/top-trump-official-calls…

end




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 MONDAY 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 6.9011/HUGE DEVALUATION FOR THE PAST FOUR WEEKS STOPS ON TRUCE/

//OFFSHORE YUAN:  6.9069   /shanghai bourse CLOSED UP 10.76 POINTS OR 0.43%

HANG SANG CLOSED DOWN 106.04 POINTS OR .40%

 

 

2. Nikkei closed

 

 

3. Europe stocks OPENED ALL RED 

 

 

 

 

 

 

/USA dollar index RISES TO 96.73/Euro RISES TO 1.1397

3b Japan 10 year bond yield: RISES TO. +.05/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111/03/ 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:: 44.98 and Brent: 53.44

3f Gold GOLD/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 RISES TO +.25%/Italian 10 yr bond yield UP to 2.83% /SPAIN 10 YR BOND YIELD UP TO 1.40%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.58: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 4.39

3k Gold at $1262.75 silver at:14.69   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 47/100 in roubles/dollar) 68.48

3m oil into the 44 dollar handle for WTI and 53 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 111.03 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 0.9927 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1314 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.25%

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 3.01%

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

6.  TURKISH LIRA:  UP  TO 5.3021

 

Futures Suddenly Plunge Ahead Of Mnuchin’s “Plunge Protection Team” Meeting

In what was a surprisingly quiet trading session following the weekend’s “Powell in Turmoil” newsflow and Mnuchin’s bizarre liquidity is fine” announcement, which only sparked memories of similar notices from the peak of the financial crisis, which some speculated could result in a major hit to the market in Monday’s holiday-shortened session, S&P futures suddenly tumbled in a what appears to be zero liquidity just around 7am (when we suppose at least some human traders walked in to their trading desks or logged in from the Maldives)…

… dragging all US equity futures sharply lower.

The sudden plunge came hours after Treasury Secretary Mnuchin said he called the heads of the 6 biggest banks (JP Morgan, Bank of America, Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup) from Cabo, to discuss recent market turmoil and assure liquidity conditionswhile also attempting to assure markets that Powell would not be ousted from the central bank following an earlier report that said Trump has repeatedly discussed removing him.  On top of that, the U.S. government shutdown now in its third day, looks set to last past Christmas as negotiations between Democrats and the White House continue over Trump’s demand for border wall funding.

“It would be extremely damaging for the President to carry through on his vague inquiries about whether or not he can fire the head of the Federal Reserve,” Stephen Davies, CEO and co-founder of Javelin Wealth Management told Bloomberg TV. “That will do market confidence no good whatsoever.”

As futures tumbled, gold continued it sharp recent ascent, rising to over USD 1262/oz which is just under a 6-month high. The yellow metal is benefiting from US political uncertainty as a partial government shutdown has begun alongside continued dollar weakness.

The sudden futures plunge followed what was a mixed if quiet session in Asia, where the MSCI Asia-ex Japan index dropped 0.4%. The  ASX 200 (+0.5%) and Shanghai Comp. (+0.4%) nursed opening losses with the former aided by IT and material names amid positive comments from China’s MOFCOM over the weekend that US and China have “made new progress” on trade and IP issues. Meanwhile, trade optimism also led Mainland China higher as most sectors moved into the green with telecom, healthcare and tech leading the gains, however, upside was capped after the PBoC’s liquidity efforts amounted to a net daily drain of CNY 140bln. Finally, Hang Seng (-0.4%) came off intra-day lows but ultimately underperformed after the Hong Kong Finance Chief stated there will be “fewer sweeteners” in the FY19/20 budget and as such, almost all sectors were in the red with hardware names leading the decline. Over in Japan, Nikkei 225 was closed as participants observe the Emperor’s day public holiday.

China’s Commerce Ministry said China and the US “made new progress” on the issues of trade balance and intellectual property during a phone call between officials. Chinese Finance Ministry said tariffs on some import and export products will be adjusted from Jan 1st, 2019. China will levy temporary import tariffs on over 700 items but not levy export tariffs on 94 items including fertiliser and iron ore. China will further cut MFN tariffs on 298 IT products from July 2019 and will maintain “relatively low” import tariffs temporarily on some aircraft engines.

Asia’s lukewarm optimism did not carry over into Europe, where major indices are in the red with miners and retailers among the biggest decliners in the Stoxx Europe 600 Index as several European markets are closed ahead of the festive season. Sectors are similarly in the red. In terms of notable movers JustEat (-2.5%) are in the red as shareholder rebellion gathers momentum following two of the Co’s largest investors gave support to Cat Rock Capital, which have attacked the flawed metrics surrounding executive bonuses.

Emerging market currencies and shares fell even as the dollar stumbled and China’s top policy makers said they’ll roll out more monetary and fiscal support in 2019, ratcheting up the targeted stimulus of 2018. Oil drifted as some OPEC members pledged to deepen output cuts.

The Bloomberg Dollar Spot Index dropped as Treasury Secretary Steven Mnuchin moved to reassure financial markets over Jerome Powell’s role as Fed chairman. Trading was subdued at the start of a holiday-shortened week, with Japan closed Monday.

The pound and euro both edged higher after Theresa May’s allies made plans that would keep her in office for more than two years after Brexit, the Sunday Times reported, citing a cabinet official it didn’t name AUD/USD snaps 3-day losing streak as leveraged funds buy the Aussie amid a rally in U.S. stock futures.

Treasuries rose along with U.K. gilts, while euro-area bond markets were closed.  JGBs and cash Treasuries closed in Asia due to Japan holiday.

In commodities, Brent (-0.1%) and WTI (-0.4%) prices have remained in a slim USD 1 range amidst holiday thinned conditions. Over the weekend, UAE Energy Minister Mazrouei stated that if a 1.2mln BPD production cut is insufficient, then an extraordinary meeting will be called where we will do what is necessary to balance the market. Mazrouei also added that a OPEC+ monitoring committee would meet late February or early March in Baku. Separately, ongoing concerns over oversupply were exacerbated by Friday’s Baker Hughes rig count which showed the number of active oil rigs increased by 10.

Expected economic events include the Chicago Fed activity index. No major companies are reporting.

Market Snapshot

  • S&P 500 futures down 0.4% to 2,402.00
  • STOXX Europe 600 down 0.5% to 335.09
  • MXAP down 0.2% to 144.79
  • MXAPJ down 0.4% to 470.62
  • Nikkei down 1.1% to 20,166.19
  • Topix down 1.9% to 1,488.19
  • Hang Seng Index down 0.4% to 25,651.38
  • Shanghai Composite up 0.4% to 2,527.01
  • Sensex down 0.8% to 35,458.78
  • Australia S&P/ASX 200 up 0.5% to 5,493.80
  • Kospi down 0.3% to 2,055.01
  • German 10Y yield rose 2.2 bps to 0.25%
  • Euro up 0.3% to $1.1400
  • Brent Futures down 0.4% to $53.61/bbl
  • Italian 10Y yield rose 9.2 bps to 2.471%
  • Spanish 10Y yield rose 2.7 bps to 1.401%
  • Brent Futures down 0.2% to $53.69/bbl
  • Gold spot up 0.4% to $1,262.47
  • U.S. Dollar Index down 0.2% to 96.78

Top Overnight News

  • Treasury Secretary Steve Mnuchin looked to quash big-bank worries over plunging stock markets and reports that Trump might move on his Fed chief by reassuring the financial community that market liquidity is in good shape
  • President Donald Trump directed Defense Secretary James Mattis to depart his administration by Jan. 1, two months earlier than planned, and will replace him with the Pentagon’s second-ranking official Patrick Shanahan
  • White House Budget Director Mick Mulvaney said Sunday the government shutdown may last into 2019, as Republicans and Democrats remain at an impasse over President Trump’s demand for billions of dollars in border-wall funding
  • OPEC hasn’t even started implementing its new six-month agreement to cut output, and already members responsible for most of the reductions have pledged to extend or even deepen it
  • Euronext NV is making a 625 million-euro ($712 million) cash tender offer for Oslo Bors VPS, the Norwegian Stock Exchange, as consolidation among trading exchanges accelerates

Asia-Pac bourses traded mixed in holiday-thinned liquidity following the downbeat lead from Wall St. on Friday, where the S&P notched a weekly loss of 7%, Nasdaq closed in bear market and the Dow posted its worst week since the 2008 financial crisis. ASX 200 (+0.5%) and Shanghai Comp. (+0.4%) nursed opening losses with the former aided by IT and material names amid positive comments from China’s MOFCOM over the weekend that US and China have “made new progress” on trade and IP issues. Meanwhile, trade optimism also led Mainland China higher as most sectors moved into the green with telecom, healthcare and tech leading the gains, however, upside was capped after the PBoC’s liquidity efforts amounted to a net daily drain of CNY 140bln. Finally, Hang Seng (-0.4%) came off intra-day lows but ultimately underperformed after the Hong Kong Finance Chief stated there will be “fewer sweeteners” in the FY19/20 budget and as such, almost all sectors were in the red with hardware names leading the decline. Over in Japan, Nikkei 225 was closed as participants observe the Emperor’s day public holiday.

Top Asian News

  • China Cuts Tariffs on More Than 700 Goods Amid Open-Trade Drive
  • Thin Trading and Slew of Weekend News Leave Asia Stocks Mixed
  • Nissan Asks Staff to Avoid Contacting Ghosn, Kelly Amid Probe
  • Top Fund Proves Value Investing Works in China With 159% Return

Major European Indices are in the red [FTSE 100 -0.6%; CAC 40 -1.0%] despite Asian bourses trading mostly higher and as
several European markets are closed ahead of the festive season. Sectors are similarly in the red. In terms of notable movers JustEat (-2.5%) are in the red as shareholder rebellion gathers momentum following two of the Co’s largest investors gave support to Cat Rock Capital, which have attacked the flawed metrics surrounding executive bonuses.

Top European News

  • OPEC Is in ‘Whatever It Takes’ Moment to Prop Up Oil Prices
  • Euronext Makes $712 Million Takeover Offer for Oslo Bourse
  • London’s Streets No Longer Paved With Gold as Miners Struggle
  • Telefonica Chairman Takes No Chances as Activist Stalks Europe

In FX, AUD/NZD was the major beneficiary of latest US-China trade developments, and reports about fresh progress on certain issues ahead of official negotiations set for early 2019, while Beijing has also announced a series of import tariffs to be implemented on January 1st at concessionary levels. Aud/Usd and Nzd/Usd have subsequently rebounded relatively firmly of recent and new ytd lows to 0.7050+ and towards 0.6750 respectively, with the former eyeing resistance around 0.7073 ahead of 0.7085-90 and Kiwi looking to breach its 50 DMA at 0.6741 convincingly, as the Aud/Nzd cross slips back under 1.0500.

  • EUR/GBP – Also prospering at the Greenback’s expense, as Eur/Usd climbs above a cloud base to retest 1.1400+ levels, while Cable is pivoting 1.2650 and Eur/Gbp hovers around 0.9000. A distinct lack of independent drivers as much of mainland Europe enjoys a full Xmas Eve holiday and UK markets are only open until midday or 12.30GMT, though weekend Brexit news appears marginally supportive for the Pound as PM May’s allies are said to be more confident that Parliament will decide in favour of the draft withdrawal agreement.
  • CAD/JPY – Both mildly firmer vs the Buck, with the Loonie deriving some traction from comparative stability in crude prices to pare worst losses from yet another new 2018 low just under 1.3600, while the Jpy is consolidating recent hefty gains within a tight  range around 111.00 having tested, but not breaching the 200 DMA (circa 110.94).

In commodities, Brent (-0.1%) and WTI (-0.4%) prices have remained in a slim USD 1 range amidst holiday thinned conditions.   Over the weekend, UAE Energy Minister Mazrouei stated that if a 1.2mln BPD production cut is insufficient, then an extraordinary meeting will be called where we will do what is necessary to balance the market. Mazrouei also added that a OPEC+ monitoring committee would meet late February or early March in Baku. Separately, ongoing concerns over oversupply were exacerbated by Friday’s Baker Hughes rig count which showed the number of active oil rigs increased by 10. Gold has risen to over USD 1262/oz which is just under a 6-month high. The yellow metal is benefiting from US political uncertainty as a partial government shutdown has begun alongside continued dollar weakness. Separately, a subsidiary of China Minmetals Corp has begun the initial phase of a new battery raw materials project in Tangshan; with the project being part of China’s push to safeguard new resources as demand for batteries continues to rise.

US Event Calendar

  • 8:30am: Chicago Fed Nat Activity Index, est. 0.2, prior 0.2

 

3. ASIAN AFFAIRS

i)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 10.76 POINTS OR 0.43% //Hang Sang CLOSED DOWN 102.04 POINTS OR 0.40% //The Nikkei closed / Australia’s all ordinaires CLOSED UP 0.48%  /Chinese yuan (ONSHORE) closed UP  at 6.9011 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 44.98 dollars per barrel for WTI and 53.44 for Brent. Stocks in Europe OPENED RED 

//ONSHORE YUAN CLOSED UP AT 6.9011AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9068: 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/

3 b JAPAN AFFAIRS

 

END

3 C CHINA

China will not be too happy with this:  Another Chinese national is charged with theft of trade secrets from Petroleum company Phillips 66

(courtesy zerohedge)

US Arrests Chinese National Charged With Theft Of Trade Secrets At Phillips 66

One day after the US officially declared war on Chinese “cyberwarriors”, the DOJ announced late on Friday that 35-year-old Chinese national and legal permanent resident, Hongjin Tan, was arrested on Dec. 20 and charged with theft of trade secrets from his employer, an unidentified U.S. petroleum company.

“Hongjin Tan allegedly stole trade secrets related to a product worth more than $1 billion from his U.S.-based petroleum company employer, to use for the benefit of a Chinese company where he was offered employment,” said Assistant Attorney General Demers. “The theft of intellectual property harms American companies and American workers. As our recent cases show, all too often these thefts involve the Chinese government or Chinese companies. The Department recently launched an initiative to protect our economy from such illegal practices emanating from China, and we continue to make this a top priority.”

“The value of the trade secrets in this case is estimated to be more than $1 billion dollars. Theft of critical research, development, and other intellectual property harms the economic prosperity and security of the United States. My office and the Federal Bureau of Investigation will utilize all tools available to respond to these types of threats. We will protect Oklahomans and Oklahoma businesses by prosecuting those who violate the law” said U.S. Attorney Trent Shores for the Northern District of Oklahoma.

While the company was not named, Shores, said the company  has “significant operations” in Oklahoma. A quick look at Hongjin Tan’s LinkedIn bio shows that he was employed as in the Disruptive Technologies team at energy giant Phillips 66.

Secrets stolen involve the manufacture of a “research and development downstream energy market product,” according to the criminal complaint.

This is how Tan described his responsibilities on LinkedIn:

Dr. Hongjin Tan is a materials scientist with extensive industrial R&D experience. His current interests include materials and systems development for renewable energy storage, and functioning materials for various thermal, optical, and electrical devices. He is experienced in developing new materials, leading teams and research projects, supporting corporate strategic planning, and applying for federal research grants. He also specializes in working with X-rays, electron microscope, battery modeling, and “in-situ” analytical techniques.

The criminal charge, and confirmation that Washington plans to aggressively crack down on Chinese industrial espionage and theft of trade secrets, comes just hours after the Nikkei reported that Trump trade advisor Peter Navarro said that an agreement with China in 90 days “would be difficult” unless Beijing does a full overhaul of how it engages in trade as “China is basically trying to steal the future of Japan, the U.S. and Europe, by going after our technology”, confirms that any hopes for a deal with Beijing by March 1 can now be safely put to sleep.

END
China is now beginning to cut tariffs on 700 items as their are trying to push important by 30 trillion dollars over the next 15 years.  This is Xi’s plan initiated at the 2017 World Economic forum
(courtesy zerohedge)

China Cutting Tariffs On 700 Items Amid Push To Boost Imports By $30 Trillion

As part of China’s efforts to open its economy – something its leaders have been touting at least since President Xi’s keynote speech at the 2017 World Economic Forum – Xi revealed on Monday a detailed breakdown of what will be the third round of tariff reductions this year, measures that were teased by President Xi during a speech nearly two months ago.

The plans to spend more on foreign goods are part of China’s plan to import an additional $30 trillion over the next 15 years as the world’s second-largest economy continues its transition from an industrial powerhouse to a service-focused economy, according to Bloomberg.

In addition to the $30 trillion in goods (which is higher than the $24 trillion previously promised by Xi), China is also hoping to increase services imports by $10 trillion during the same period. The measures come as China is weighing whether to abandon its “Made in China 2025” initiative and speed up the liberalization of its economy and its openness to foreign competition as a means of reducing wasteful state-directed spending that has heavily contributed to the massive pile of bad debt swirling around China’s corporate sector.

China Cutting Tariffs On 700 Items Amid Push To Boost Imports By $30 Trillion

As part of China’s efforts to open its economy – something its leaders have been touting at least since President Xi’s keynote speech at the 2017 World Economic Forum – Xi revealed on Monday a detailed breakdown of what will be the third round of tariff reductions this year, measures that were teased by President Xi during a speech nearly two months ago.

The plans to spend more on foreign goods are part of China’s plan to import an additional $30 trillion over the next 15 years as the world’s second-largest economy continues its transition from an industrial powerhouse to a service-focused economy, according to Bloomberg.

In addition to the $30 trillion in goods (which is higher than the $24 trillion previously promised by Xi), China is also hoping to increase services imports by $10 trillion during the same period. The measures come as China is weighing whether to abandon its “Made in China 2025” initiative and speed up the liberalization of its economy and its openness to foreign competition as a means of reducing wasteful state-directed spending that has heavily contributed to the massive pile of bad debt swirling around China’s corporate sector.

China

The tariffs will have the added bonus of cutting costs for Chinese consumers at a time when a dramatically weaker yuan is expected to stoke inflation. The announcement follows a raft of disappointing economic data released earlier this month raised fears of a global recession (and sent stocks around the world tumbling lower).

Before Trump takes credit for the cuts as another victory in his trade war with China, Bloomberg pointed out that Xi’s latest comments “don’t move the needle very far on trade policy”. China has already cut tariffs this year (case in point: the recent reductions in auto tariffs) and has repeatedly said it’s planning more cuts.

Bar

The lowered tariffs, which will impact some 700 goods, will take effect on Jan. 1. The “temporary” rates can be changed at will and also can be lower than the current most-favored nations levels, though these tariffs will also apply to goods imported from all WTO members.

Here’s a breakdown of the tariff highlights courtesy of Bloomberg.

  • With tariffs on U.S. soybeans stopping a key source of edible meal (often used for animal feed), China will implement zero tariffs on imports of a variety of meals including sunflower and canola.
  • Some materials for pharmaceutical manufacturing will also be subject to zero tariffs, and taxes on high-tech imports will be set “relatively low,” including at 1 percent for a type of generator for aircraft, and 5 percent for a type of welding robots used in car assembly lines.
  • The ministry said MFN tariffs will be further cut for a wide-range of information technology imports starting from July 1, 2019, including for medical diagnosis machines, speakers and printers, according to a separate table on its website.
  • The nation will also scrap export tariffs on 94 items of products starting from the new year, including fertilizers, iron ore, coal tar, and wood pulp. Export tariffs on these goods are as high as 40 percent currently.
  • Imports from nations that have reached a trade pact with China will be levied at the rates agreed by both sides. China’s bilateral deals with New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Georgia already included promises to further lower tariffs in 2019, as does the Asia-Pacific Trade Agreement.
  • Imports from Hong Kong, Macau will also enjoy lower taxes.

China’s stated plans to liberalize its economy could help improve the chances for an enduring trade pact with the US, as one of Trump’s central demands is that the Communist Party take steps to narrow China’s trade surplus with the US. Then again, China has a long and storied history of promising to open up its markets – a process which created holes in its storied captial account firewall; whether it actually follows up on them has been a different matter entirely.

China

The tariffs will have the added bonus of cutting costs for Chinese consumers at a time when a dramatically weaker yuan is expected to stoke inflation. The announcement follows a raft of disappointing economic data released earlier this month raised fears of a global recession (and sent stocks around the world tumbling lower).

Before Trump takes credit for the cuts as another victory in his trade war with China, Bloomberg pointed out that Xi’s latest comments “don’t move the needle very far on trade policy”. China has already cut tariffs this year (case in point: the recent reductions in auto tariffs) and has repeatedly said it’s planning more cuts.

Bar

The lowered tariffs, which will impact some 700 goods, will take effect on Jan. 1. The “temporary” rates can be changed at will and also can be lower than the current most-favored nations levels, though these tariffs will also apply to goods imported from all WTO members.

Here’s a breakdown of the tariff highlights courtesy of Bloomberg.

  • With tariffs on U.S. soybeans stopping a key source of edible meal (often used for animal feed), China will implement zero tariffs on imports of a variety of meals including sunflower and canola.
  • Some materials for pharmaceutical manufacturing will also be subject to zero tariffs, and taxes on high-tech imports will be set “relatively low,” including at 1 percent for a type of generator for aircraft, and 5 percent for a type of welding robots used in car assembly lines.
  • The ministry said MFN tariffs will be further cut for a wide-range of information technology imports starting from July 1, 2019, including for medical diagnosis machines, speakers and printers, according to a separate table on its website.
  • The nation will also scrap export tariffs on 94 items of products starting from the new year, including fertilizers, iron ore, coal tar, and wood pulp. Export tariffs on these goods are as high as 40 percent currently.
  • Imports from nations that have reached a trade pact with China will be levied at the rates agreed by both sides. China’s bilateral deals with New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Georgia already included promises to further lower tariffs in 2019, as does the Asia-Pacific Trade Agreement.
  • Imports from Hong Kong, Macau will also enjoy lower taxes.

China’s stated plans to liberalize its economy could help improve the chances for an enduring trade pact with the US, as one of Trump’s central demands is that the Communist Party take steps to narrow China’s trade surplus with the US. Then again, China has a long and storied history of promising to open up its markets – a process which created holes in its storied captial account firewall; whether it actually follows up on them has been a different matter entirely.

4.EUROPEAN AFFAIRS

EUROPE

Europe’s last hope for a globalist view was Macron.  That ended with a thud. The European project has now come to an end.

(COURTESY GEFIRA)

The European Project Comes To An End

(courtesy GEFIRA)

 

The end of the EU and the Balkans as China’s foothold in Europe grows…

 

Though the end of the European Union is inevitable, the proponents of a further integrated or federal superstate are busy making a last effort to achieve their goal.

The opposition against the project is mounting with every day. Europe is suffering from economic stagnation, and is facing a demographic calamity.

The pro-European establishment’s last hope was the newly-elected French President Emanuel Macron who was to revive the economy and integrate the European Union under French leadership. Gefira was of the opinion that all these expectations were misplaced. The once great nation is broken beyond repair. France’s problems are much worse than those of Italy. Though Italy has a higher debt-to-GDP ratio than France, France has a larger budget deficit, and the difference is that while Italy has a trade surplus France has a trade deficit, so the country cannot pay for its imports.

While the Italian “populist” Mateo Salvini is earning the nation’s respect, Emmanuel Macron’s popularity is at a historic low. All of France is engulfed by riots, civil unrest and looting. In city after city, village after village, protesters have been clashing with the police for weeks now while President Macron has nothing to offer to appease them, unless he violates the budget deficit boundary of 3%.

Like the Soviet Union once was, France is a sizeable social-multicultural experiment, and like the empty shops in communist countries, the demographic changes in France are visible in every section of the society, but nobody dares to name them. Once the whole world saw that the French team playing at the FIFA World Cup was made up of almost exclusively Africans, and even on Twitter Africans boasted about it. Yet, the French establishment insisted that those Africans were genuinely French. Dissenters were branded as racists or Nazis.

Academia as well as the political and business establishment deny what is clear to see for all. The French society has lost its economic strength and its spirit. The country was once known for its first high-speed-trains (TGV) and Concorde, but now it is notorious for social dystopia and Islamist attacks.

To prove that they are right, the French and European elites will push the multicultural society even further by signing the Global Compact for Safe, Orderly and Regular Migration. Also the report entitled: “Replacement Migration: Is it a solution for an ageing population” is the United Nations’ comprehensive plan for replacing the European population.

The Fifth Republic has come to an end, and we do not expect President Macron will finish his term. France’s socio-economic collapse will drag the European Union into the abyss.

Now that the heart of Europe is ungovernable, its peripheries will not fare any better.

The multicultural and multireligious Bosnia is not sustainable. The borders in the region will be redrawn again, which will come with a price. A war between Muslims and Christians in the Balkans will reverberate in the suburbs of Paris, Amsterdam and Berlin because of the Muslim large minorities there. The European establishment has allowed Islam to grow in Europe, and, strange enough, they believed that European Muslims would feel grateful for such generosity.

From the point of view of non-European powers the Balkans are a bridgehead worth fighting for. In the nineteenth century it was the Europeans who were expanding into China, now it is the Chinese who are trying to gain a foothold in Europe. Chinese investments and influence are growing in the Balkans. For centuries this part of Europe has been the battlefield between (Orthodox and Catholic) Christianity on the other hand and Islam on the other. Now a new global player has emerged in the region: China. For many Europeans, this part of Europe seems of little importance, but we think that ignoring the Balkans is going to be a fatal error. The conflicts there are far from being solved and the West through its ignorance of the intricacies of the Balkans’ history is stoking the fire by the solutions it implements there.

END
May preparing for a secret Plan B?
(courtesy zerohedge)

May Prepares “Secret” Brexit Plan B To Avoid “No Deal” Armageddon

Three weeks have passed, and we’re back at ‘Plan B’.

After months of pushing an EU-backed deal that has almost no chance of passing Parliament (at least, as of now), Theresa May’s strategizing as she seeks to run out the clock until Brexit day has come to resemble a nightmarish loop: May tries to whip up votes for her deal, MPs either resign, or threaten to resign, reports are floating saying May and her cabinet are considering a second referendum/Plan B/calling off Brexit, those reports are promptly denied, May begs the EU for more concessions, the EU tells her to drop dead, and then we’re back to whipping up votes for the draft plan.

Theresa May has been stuck in neutral for weeks now, having survived a no confidence vote, and Labour having backed down on a formal challenge to her government, May has called for a vote on her deal on Jan. 14 – a vote that, though the margin has reportedly been whittled to just 20 MPs, is still widely expected to fail.

Brexit

And as May’s minority government struggles to win the support of the 10 DUP MPs who have helped prop up her minority government (and who have exercised an outsize influence on the process since May’s general election gambit last summer resulted in disaster for the conservatives), reports are again circulating that May & Co. are considering a variety of “dramatic” alternatives should her deal be defeated – including a possible Plan B Brexit deal that would lay the foundation for a ‘Super Norway’ trade arrangement, delaying ‘Brexit Day’ or calling for a second referendum.

Theresa May’s senior team are wrestling with the same question: What should she do if her deal is thrown out? In private, the options on the table are dramatic and include postponing the divorce from the European Union, calling another referendum or even announcing fresh national elections.

In under 100 days, the U.K. is due to leave the EU, fulfilling the mandate of the 2016 referendum and marking the culmination of two years of negotiations between London and Brussels. There is one massive obstacle standing in the prime minister’s path: Parliament won’t go along with the terms she’s agreed.

May is trying everything she can to win support among increasingly suspicious lawmakers for the unpopular divorce settlement she’s negotiated. She was forced to pull out of a vote on it on Dec. 11 and has now rescheduled the ballot for the week of Jan. 14.

In public, May and all her ministers are adamant that her exit deal is the only one available to avoid potential economic and social chaos. They are putting all their efforts into winning the vote in Parliament.

Behind closed doors, her inner circle is discussing the options if she fails.

Indeed, reading between the lines of the anonymously sourced trial balloons and May’s public remarks has become a skill in and of itself.

Reading between the lines of what May says is key to trying to understand the latest thinking of a prime minister who’s U-turned in the past to get out of a political bind. May’s most recent comment doesn’t rule out a change of heart.

First, there is the idea that while now might not be the time to seek an extension, it could be necessary later. Secondly, she implies that if Parliament fails to deliver Brexit by backing the deal, someone else — perhaps the British electorate — could be asked to decide.

May’s officials have sought to play down reports in recent days that there could be another referendum. Her office has made public that she will not countenance a rerun of the 2016 vote for as long as she’s in power. But people familiar with the matter are clear that May herself might not be in a position to decide.

One cudgel that May is trying to wield is the notion that, if her deal is voted down, it could give Labour an opening to force through another general election by calling, and winning, a no confidence vote in the government. The fear of Corbyn winning power could be enough to win support for May’s deal from some Brexiteers.

They know that if her deal is ultimately voted down, the campaign for a second referendum will gain momentum. One way of stopping that would be to trigger an election. That’s a threat some in May’s government are using to try to persuade the small party propping up her minority administration to come back on board.

May’s team believes this argument could be particularly effective in winning over the DUP, which opposes the current Brexit deal over the backstop, which it fears could lead to the UK becoming a ‘vassal’ state of the EU by leaving it permanently bound to the EU customs union.

Northern Ireland’s Democratic Unionist Party won’t want an election, in part because it brings closer the threat of a Labour government led by Jeremy Corbyn.

But the DUP is at the moment vowing to oppose the deal May has secured with the EU. Without the party’s support, May has no majority in the House of Commons. The DUP says it is ready to vote against May and bring down her government unless major changes can be made to the Brexit deal.

The premier and her ministers are mounting a charm offensive to woo the DUP, while May is engaged in a desperate attempt to persuade the EU to shift position on the most contentious part of the divorce package.

If the DUP come back on side, May’s team believes it’s possible that enough of her own Tories – who have also pledged to vote against the deal – will also sign up to give the accord a slim chance of surviving.

If all else fails, there’s always “Project Fear”, the latest iteration of which appeared in the Times of London Friday in a report that warned Britons to prepare to ‘change their diets’ to cope with possible food shortages following a ‘no deal’ Brexit (while the government doesn’t expect wholesale food shortages, certain perishable goods like fruits and vegetables might be harder to come by).

Officials are planning to tell Britons to change what they eat in the event of a chaotic Brexit because Whitehall predicts that some sources of fresh food from European Union countries would be cut off. The government has begun detailed planning on food supplies if Britain leaves without a deal and has identified a number of sites for massive hangars to stockpile food, including one near Carlisle and others in Scotland and on the south coast.

According to plans revealed to The Times, officials do not believe there will be a shortage of food in general. However, there is an issue with some perishable goods that come from the EU. Fruit from Spain or vegetables from the Netherlands could be held up by delays at the border if the EU limits trade or there need to be stringent checks.

With the path forward so muddled, there’s still plenty of room for unexpected twists and turns (like May resigning or being pushed out, despite surviving her Tory leadership contest). Though one thing is looking increasingly clear: Whatever happens, it likely won’t happen until the very last minute.

In fact, one ministers’ invocation of a classic Winston Churchill quote offers a dishearteningly apt evaluation of May’s negotiating strategy (which her European peers recently criticized as “chaotic” and “disorganized”:

“The Conservative Party on Brexit puts me in mind of what what Winston Churchill said about the Americans,” the minister said. “You can always count on them to do the right thing – after they have tried everything else.”

 end
FRANCE
Although the numbers were down from last week, damage and rioting continued in France for the 6th straight week.
(courtesy zerohedge)

Yellow Vests Chase French Police Out Of Champs Elysees In Pre-Christmas Rumble

France’s Yellow Vest protests continued into their sixth week on Saturday – albeit in much smaller numbers. France’s Interior Ministry reported 23,800 protesters came out across the country as of 2 p.m. local time Saturday, vs. 66,000 last weekend, and 136,000 two weeks ago. 

142 people were arrested in Paris by 7 p.m. – down from 170 the week before. 

The Macron government has tried to contain the protests – offering economic concessions to try and curb anger over a fuel tax hike and other grievances which have brought protesters out en masse.

Saturday’s protests started off peaceful as the diminished number of demonstrators appeared to be less organized in previous weeks. “The mobilization is quieter, we’re in a holiday season,” Yellow Vest organizer Paul Marra said on national television.

Several hundred gathered near the Sacré Coeur Basilica in the Paris neighborhood of Montmartre, before making their way toward the Palais Garnier opera house. Most stores and restaurants remained open, and protesters intermingled with Christmas shoppers. –WSJ

Then things grew tense as violence broke out. At one point a group of Yellow Vests reported to be in the famous Champs Elysees were filmed throwing road cones at police as they drove away from the scene, while police deployed tear gas as clashes broke out. 

Embedded video

Bellingdog@Bellingdawg

Macronists in full retreat from the #ChampsElysees as the Free French Revolutionaries Brigade of the Manifest Victory seize control of the area.

Embedded video

nonouzi@Gerrrty

#Lyon : Clashes are breaking out in the 7th arrondissement right now between police and #GiletsJaunes protesters. #yellowvests #22Decembre

 

Protesters also tipped a police van as mayhem broke out.

Embedded video

srb news@srbnews0

A French policeman drew his weapon and was forced to abandon his motorcycle as protesters threw objects.

Embedded video

nonouzi@Gerrrty

A police motorcycle had to be abandoned to exfiltrate the forces. A policeman pulled out his service weapon. #GiletsJaunes #Yellowvests #Acte6

And a fire was started on the A9 highway in the southern French town of Boulou near the border with Spain:

#BREAKING UPDATE: Tensions are rising at the French🇫🇷 capital in #Paris! as Sixth protests started today! #GiletsJaunes #YellowVests #Acte6 pic.twitter.com/S1QqNp5Uk4

Embedded video

srb news@srbnews0

#BREAKING UPDATE: Fire’s are being started at the highway of #A9 in #Boulou in #France!🇫🇷 #GiletsJaunes #YellowVests #Acte6 pic.twitter.com/ACUYytqDYO

Embedded video

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISRAEL

In a risky move, Netanyahu dissolves the Israel Parliaments and calls for new elections

(courtesy zerohedge)

Netanyahu Dissolves Israeli Parliament, Calls For New Elections In Risky Political Gambit

Israeli Prime Minister Benjamin Netanyahu has somehow retained his popularity with the Israeli electorate despite the fact that he and his wife Sarah Netanyahu (who was indicted back in June) have been implicated in several corruption and briberyscandals. If prosecutors accept the advice of Israeli police, the prime minister could face criminal charges in the new year.

But none of this has apparently deterred Netanyahu from a risky political gambit: On Monday, Netanyahu and the leaders of Israel’s coalition government formally dissolved the Knesset (Israel’s parliament) and hold early elections as soon as April in order to try and win a broader majority that will allow them to pass a controversial military conscription reform bill that has alienated some far-right members of Netanyahu’s coalition. The Knesset is expected to approve the dissolution during a Wednesday vote.

According to the Washington Post, which cited local media reports, the election will likely take place on April 9. During the vote, Netanyahu is hoping to expand his coalition’s razor-thin one-vote majority in the legislative body (various member parties control 61 of 120 votes), which would (in theory) allow him to pass a bill aimed at making it easier to draft ultra-orthodox Israeli’s into the Israeli Defense Force, which has been struggling in recent years with a shortage of man power.

Net

As it stands, all Israelis must serve at least two years in the IDF. But most ultra-othodox jews who study in the country’s Yeshivas have been exempted from this rule. The new law, if passed, would mandate service from all ultra-orthodox men except the very best scholars.

Netanyahu publicized his decision in a tweet:

Embedded video

Benjamin Netanyahu

@netanyahu

יש לנו הישגים אדירים בכל תחום, ויש לנו עוד הרבה עבודה לטובת אזרחי ישראל ומדינת ישראל. בעזרת השם ובעזרתכם – נקבל את אמון הבוחר ונמשיך לעבוד!

Likud’s governing coalition has been struggling since the Nov. 14 resignation of Defense Minister Avigdor Liberman, who stepped down over the government’s handling of demonstrations  along the border between Israeli territory and the Gaza Strip.

Making the situation worse for Likud, after Liberman’s resignation, ultranationalist Education Minister Naftali Bennett threatened to withdraw his Jewish Home party from the governing coalition if Netanyahu didn’t allow him to take over defense duties. Instead, Netanyahu said he was determined to add the defense minister post to his responsibilities (the prime minister also occupies the roles of foreign minister, immigration minister and health minister), forcing Naftali to backtrack.

But the final straw that lead to the vote appeared to be an earlier announcement from opposition leader Yair Lapid, leader of the centrist Yesh Atid party, who said his party would not support the conscription reform bill.

Drafting a law that all of Netanyahu’s coalition members would support has proven impossible, so without a stronger majority, or a popular mandate to force more support from the opposition, the bill would have little chance of passing. Centrist critics have accused Netanyahu of not going far enough with the bill and “surrendering to the orthodox”, while the orthodox oppose all efforts to extend conscription to their community.

Netanyahu remains very popular in Israel, and has vowed to stay on and fight any criminal charges that might arise. According to Reuters, recent polls show he has a good chance of winning the votes he needs to strengthen his position. But if he falters, he could face a challenge from the center as well as from his right. No one in the Likud Party has said they would challenge Netanyahu, and he’s expected to retain his position as prime minister barring a major upset.

 

 

6. GLOBAL ISSUES

MALAYSIA/GOLDMAN SACHS

 

7  OIL ISSUES

The USA is continually losing a foothold into the world’s global economy. This weekend we learn that Chinese refiners are not buying USA crude

(courtesy Irina Slav//OilPrice.com)

Chinese Refiners Aren’t Buying U.S. Crude

Authored by Irina Slav via Oilprice.com,

Chinese refiners are not buying more U.S. oil despite the three-month truce agreed by Presidents Trump and Xi last month, Reuters reports, citing cargo loading plans of Chinese downstream operators.

According the Reuters, Chinese demand for U.S. crude has been dampened by political uncertainty around the trade war and, more directly, by relatively high costs of transportation. This means that despite the truce and future positive developments in bilateral talks on trade, U.S. oil will have yet to become a major element of China’s imported crude oil mix.

One Chinese analyst told Reuters that price was the top consideration of buyers and the price of U.S. oil simply wasn’t competitive.

“Chinese companies have little incentive to buy U.S. crude due to the wide availability of crude supplies today from Iran and Russia,” Seng Yick Tee from consultancy SIA Energy said. Yet trade tensions are not helping, either. With the constant threat of more tariffs, refiners are reluctant to change their buying habits.

“Even though the trade tension between China and the U.S. had been defused recently, the executives from the national oil companies hesitate to procure U.S. crude unless they are told to do so.”

U.S. crude oil exports hit a high of 23.95 million barrels in October 2017, data from the Energy Information Administration shows, but have since then declined, reaching 2.17 million barrels in September this year before Chinese refiners completely stopped buying U.S. crude in October.

Yet China’s total oil imports in October, on the other hand, hit 40.80 million tons (9.61 million bpd), of which teapots imported 8.22 million tons. This was the highest monthly oil import amount on record, according to customs data from Beijing. The increase came despite depressed refining margins that could have motivated lower appetite for crude but apparently did not. The independent refiners drove the increase as they sought to fulfill their import quotas until year-end.

8. EMERGING MARKETS

Venezuela

 

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

Euro/USA 1.1397 UP .0030 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems + USA election:///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES MOSTLY RED (EXCEPT GERMAN DAX)

 

 

 

 

USA/JAPAN YEN 111.03  DOWN 0.160 (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 1.2642 UP    0.0021  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3580 DOWN .0018 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 MONDAY morning in Europe, the Euro ROSE by 30 basis point, trading now ABOVE the important 1.08 level RISING to 1.1397/ Last night Shanghai composite CLOSED UP 10.76 POINTS OR 0.43%

 

//Hang Sang CLOSED DOWN 102.04 POINTS OR 0.40%

 

/AUSTRALIA CLOSED UP  0.48% /EUROPEAN BOURSES MOSTLY RED

 

 

 

 

 

 

The NIKKEI: this MONDAY morning CLOSED/HOLIDAY  

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED MOSTLY RED

 

 

 

 

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 102.04POINTS OR 0.40% 

 

 

/SHANGHAI CLOSED UP 10.76  POINTS OR 0.43%

 

 

 

Australia BOURSE CLOSED UP  0.48%

Nikkei (Japan) CLOSED/HOLIDAY

 

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1261.70

silver:$14.67

Early MONDAY morning USA 10 year bond yield: 2.77% !!! DOWN 2 IN POINTS from FRIDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.01 DOWN 1  IN BASIS POINTS from FRIDAY night. (POLICY FED ERROR)/

USA dollar index early MONDAY morning: 96.73 DOWN 29 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

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And now your closing MONDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.69% UP 0    in basis point(s) yield from FRIDAY/

JAPANESE BOND YIELD: +.05%  UP 0  BASIS POINTS from FRIDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY…

 

SPANISH 10 YR BOND YIELD: 1.40% UP 0  IN basis point yield from FRIDAY

ITALIAN 10 YR BOND YIELD: 2.83 UP 0     POINTS in basis point yield from FRIDAY/

 

 

the Italian 10 yr bond yield is trading 143 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES UP TO +.25%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.58% 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 MONDAY

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

Euro/USA 1.1413 UP  .0045 or 45 basis points

 

 

USA/Japan: 110.46 DOWN  0.737 OR 74 basis points/

Great Britain/USA 1.2721 UP .0099( POUND UP 99  BASIS POINTS)

Canadian dollar UP 31 basis points to 1.3586

 

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The USA/Yuan,CNY closed UP AT 6.8991-  ON SHORE  (YUAN UP)

THE USA/YUAN OFFSHORE:  6.9028(  YUAN UP)

TURKISH LIRA:  5.2978

the 10 yr Japanese bond yield closed at +.05%

 

 

 

Your closing 10 yr USA bond yield DOWN 3 IN basis points from FRIDAY at 2.77 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.01 DOWN 3 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, 96.55 DOWN 40 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 MONDAY: 4:00 PM 

London: CLOSED DOWN 35.18 POINTS OR 0.52%

German Dax : CLOSED UP 22.72 POINTS  OR 0.21%
Paris Cac CLOSED DOWN 67.99 POINTS OR 1.45%
Spain IBEX CLOSED DOWN 76.20 POINTS OR 0.89%

Italian MIB: CLOSED

 

 

 

WTI Oil price; 44.24 1:00 pm;

Brent Oil: 52.53 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    68.34  THE CROSS LOWER BY .61 ROUBLES/DOLLAR (ROUBLE HIGHER BY 61 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  5.2907 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.25 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 :42.68

 

BRENT :50.43

USA 10 YR BOND YIELD: 2.74%…deadly..strong indicator of recession .

 

 

USA 30 YR BOND YIELD: 2.99%/.

 

 

 

EURO/USA DOLLAR CROSS: 1.1399 ( UP 32 BASIS POINTS)

USA/JAPANESE YEN:110.43 UP 0.136 (YEN 14 BASIS POINTS/ DEADLY TO ALL OF OUR YEN SHORTERS.

 

USA DOLLAR INDEX: 96.63 DOWN 33 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.2692 UP 74 POINTS FROM YESTERDAY

the Turkish lira close: 5.2909

the Russian rouble:  68.63 UP .31 Roubles against the uSA dollar.( UP 31 BASIS POINTS)

 

Canadian dollar: 1.3608 UP 9 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8991  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.9039 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.25%

 

The Dow closed DOWN 653.17 POINTS OR 2.91%

 

NASDAQ closed DOWN 140.07 POINTS OR 2.21%

 


VOLATILITY INDEX:  36.07 CLOSED UP 5.96 

 

LIBOR 3 MONTH DURATION: 2.822%  .LIBOR  RATES ARE RISING/

 

FROM 2.823

 

 

 

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

 

The Longest Bull Market In History Is Over – S&P Enters Bear Market

The S&P crashed below its bear market level of 2352.7 – the lowest since April 2017 – ending the longest bull market in history

This is the worst December for the S&P 500 since The Great Depression (and there are still a few more days left)…

Risk aversion is now extreme; even though the Street may point to a ‘less dovish’ FOMC and concerns about a U.S. government shutdown as possible reasons for the selloff, the apparent lack of positive drivers and headlines has curbed risk appetite,” Nomura strategist Masanari Takada wrote in a note.

“While sentiment looks to be skewed towards fear, most market participants seem to be looking for a plausible excuse to sell.”

 

..

:

 

Steve Mnuchin epicly failed to calm the market over the weekend…

As Michael O’Rourke, JonesTrading’s chief market strategist, said:

 

…nothing says don’t panic like saying ‘I’m calling the plunge protection team tomorrow.’ I honestly think that’s the type of event that’s going to startle markets and create more panic and fear when it’s meant to create confidence.”

And sure enough, the plunge protection team’s best efforts utterly failed to stem the tide…

 

A bloodbath…

 

As waves of selling hit the market… (very notable for such a normally quiet day – volume was almost double the recent average)

 

S&P volume set to be almost triple that of the past 9 pre-Christmas sessions

 

 

Bank stocks suffered…

 

And just the mention of the word ‘liquidity’ sent bank credit risk soaring…

Even the supposed safe-haven stocks were pummelled… The S&P 500 utilities index drops as much as 4.6% intraday, most since August 2011, amid the broader market rout and continued threat of higher interest rates in 2019.

 

And along with stocks, the dollar was dumped wholesale…

 

And credit markets were monkeyhammered…to their widest since Brexit

 

Bonds were bid (with 30Y back below 3.00% intraday)…

 

And inflation breakevens were clubbed like a baby seal…

 

Yuan strengthened…

 

Cryptos soared since Friday, with Ethereum up 36% and Bitcoin back above $4,000…

 

Despite the dollar weakness, crude prices collapsed further as PMs rallied…

 

Gold soared (in dollars) on the day…

 

Breaking above its 200DMA…

 

And gold in yuan broke out of its channel…

 

WTI tumbled to almost a $43 handle…

 

Finally, since The Fed hiked rates and Powell didn’t back down on auto-pilot, the S&P is down 8%, the dollar is down over 1%, and gold and the long bond are up around 1%…

And,@IvanOnTech provides a little context for just how bad this bloodbath is…

This is not ICOs, this is NASDAQ % drop from ATHs. Scam? GOPRO -95% FIT -92% LC -91% SNAP -83% P -80% ZNGA -77% HIVE -73% TRUE -66% TWTR -63% SONO -60% DBX -57% Z -57% PS -50% FTCH -49% PSTG -48% SPOT -48% BOX -46% DOCU -45% SVMK -45% FB -42%”

And the odds of a rate hike in 2020 are now the same as the odds of rate-cut…

 

END

market trading

SUNDAY

On Sunday, Mnuchin called in the Plunge Protection team to calm the markets this morning. So far it has not worked

(courtesy zerohedge)

‘Plunge Protector’ Mnuchin Reportedly Called Bank CEOs To Calm Markets Ahead Of Monday Open

Having quickly tried to stymie any panic yesterday about rumors that Trump wants to fire Jay Powell:

“I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.”

Treasury Secretary Mnuchin reported ly interrupted his time in Cabo San Lucas, Mexico, to call the chief executives of some of the country’s largest banks in an effort to calm any further collapse in the market when Wall Street opens Monday.

“It’s being pre-emptive,” a person familiar with the matter told CNN.

“It’s sending the proper message to the market so they can calculate the real picture into their Monday opening. They don’t have to wait until something happens to be reassured.”

We suspect Mr. Mnuchin is calling the wrong guys – does he not think they have been pulling every lever to try and stop the utter carnage in their own stock prices (which are down 12 of the last 13 days in the biggest crash since Aug 2011’s USA downgrade)…

In his conversations with executives, CNN reports that the person said, Mnuchin sought to convey the strength of the US economy despite recent market turbulence.

“The market volatility is not changing the strong fundamentals of the economy,” said the person.

“Systems remain normal.”

If systems remain normal, why are the stocks of the world’s largest and most systemic financial companies also collapsing?

And if systems are normal, why is the Treasury Secretary unterrupting his Mexican riviera time with Mrs. Mnuchin to beg the banks to do something?

Given the drop in USDJPY early indications already, we suspect Sunday night futures may not obey the Treasury Secretary’s wishes.

 

end

MONDAY

Markets failed today as the Plunge protection team could not bail out the markets.

(courtesy zerohedge)

 

Stocks & Dollar Plunge As Bank Credit Risk & Bullion Prices Spike

We’re gonna need another call to those banks…

It seems Mnuchin’s confidence-inspiring calls with the CEOs over “liquidity” has had exactly the opposite effect he hoped for…

Bank credit risk is surging…

 

Stocks are accelerating their losses after the cash open…

 

And confidence in the USDollar is disappearing…

 

And bonds and bullion are rallying on a safe haven bid…

Maybe it’s time for Mnuchin to put his wife down and head back to the States…

 

 end
Then the PPT tried again pushing the Nasdaq to even:
(ZEROHEDGE)

“America Is Respected Again” – Plunge Protection Team Arrives, Ramps Nasdaq Green

PPT dip-buyers versus everyone-else rip-sellers…

Nasdaq has been monkey-hammered straight up – after plunging 1.9% – back into the green…

Futures show the action better as the machines lifted the Nasdaq perfectly to unchanged (didn’t hear any complaints about algos on the bid)

And as stocks go green, Trump tweets so ironically…

Donald J. Trump

@realDonaldTrump

AMERICA IS RESPECTED AGAIN!

The question is – what happens next?

end
A flash crash in the two yr treasury even though the Dow finished down over 600 points
(courtesy zerohedge)

2 Year Treasury Yield Flash Crashes

If you thought the frenzied, panicked selloff into abysmal liquidity would end when the stock market plunged into the close, tumbling 2.71% and officially ending the longest bear market in history when the S&P dropped over 20% from its Sept 20 all time highs… you were wrong, because while stocks closed at 1pm, bonds are still open (until 2pm), and just after 1:24pm, the 2Y Treasury yield flash crashed (as prices Flash Smashed).

What caused this latest algo-driven market freakout? It certainly wasn’t today’s poor 2Y auction which saw the lowest bid-to-cover since December 2008.

The most likely culprit is what we discussed just yesterday when we noted that the short squeeze observed by Jeff Gundlach has yet to materialize, and not just at the long end, where net specs have never been shorter…

… but also the short end, where 2Y treasury net specs have rarely been shorter.

With stock markets in freefall, record low liquidity across all asset classes, and yields sliding all day, it was only a question of “max pain” before yet another big short was stopped out and threw in the towel, capitulating and covering their position at any price which appears to be precisely what happened with the 2Y Treasury.

Expect many more fireworks as more TSY shorts across the curve follow suit.

end
And now for the first time in quite some time, the 2 yr curve inverts over the one yr rate.
(courtesy zerohedge)

Treasury Flash Crash Inverts 1Y-2Y Curve

Things are just breaking left and right in the market now.

Shortly after the 1PM stock market close (but before the 2PM bond market closure) we pointed out that the 2Y yield had flash crashed on what appeared to be a short seller capitulating violently. Well, something else rather remarkable happened in that brief spike in activity: as 2Y yield tumbled first below 2.58% and then below 2.56%, the 12 Month (1 Year) Treasury – 2 Year Treasury curve inverted suddenly, sliding as low as -0.02%.

As one would expect, this was yet another of those “since 2008” events, because the last time the 1Y-2Y curve inverted was during the panic of the 2008 financial crisis.

And with a massive short overhanging still waiting across the entire curve as we discussed yesterday, expect many more such “breakage” events to take place in the coming days.

market data/

USA ECONOMIC STORIES OF INTEREST

A good account of why Trump is withdrawing from Syria.  Strangely he acted unilaterally after a phone call from the nutcase Erdogan

(courtesy zerohedge)

SWAMP STORIES

the Democrats accuse Trump of plunging the country into chaos as the Dow plummets over 600 points and no end of the shutdown.

‘(courtesy zerohedge)

Dems Accuse Trump Of “Plunging Country Into Chaos,” End Of Shutdown “Hard To See”

Mere minutes before the market closed at 1 pm ET on Christmas Eve, the S&P 500 broke below its lows from April 2017, signaling the end to the longest bull market in US history. And now that Treasury Secretary Steven Mnuchin’s fumbling plan to “calm” markets by ringing up the Plunge Protection Team on the day before Christmas has spectacularly backfired – and a good chunk of the federal government is set to remain closed through the holiday (ensuring that the White House Christmas tree will remain symbolically dark) –  the Democrats just couldn’t resist kicking sand in the President’s face as the majority of Americans tune out for the holiday.

In a joint statement from Chuck Schumer and Nancy Pelosi, the Democratic leaders chided Trump for “plunging the country into chaos” by obeying the whims of conservative talk radio hosts, repeatedly lashing out at the Federal Reserve and “firing” the Secretary of Defense.

Pelosi

And as long as Trump remains beholden to the destabilizing elements within the House Freedom Caucus, there’s no telling when the government shutdown will end. “Different people from the White House are saying different things about what the president would accept or not accept to end his Trump Shutdown, making it impossible to know where they stand at any given moment.”

“The president wanted the shutdown, but he seems to not know how to get himself out of it. As long as the president is guided by the House Freedom Caucus, it’s hard to see how he can come up with a solution that can pass both the House and the Senate and end his Trump Shutdown.”

Presumably, this means the Democrats have rejected the latest White House overture – a deal that reportedly would have included $2.5 billion in funding for a border fence and $400 million for “border security.” With most lawmakers already back in their home districts for the holiday, the government will almost certainly remain closed until at least Thursday.

And judging by the tone of debate, the shutdown could endure at least until Democrats retake the House officially in January.

Read the full statement below:

ABC News

@ABC

JUST IN: Joint statement from Democratic leaders Chuck Schumer and Nancy Pelosi: “It’s Christmas Eve and President Trump is plunging the country into chaos.” https://abcn.ws/2EMGbIJ 

 

 

end
SWAMP STORIES/MAJOR STORIES//THE KING REPORT
and special thanks to Chris Powell of GATA for sending this down for us:
@realDonaldTrump: Senator Mitch McConnell should fight for the Wall and Border Security as hard as he fought for anything… The Democrats, whose votes we need in the Senate, will probably vote against Border Security and the Wall even though they know it is DESPERATELY NEEDED. If the Dems vote no, there will be a shutdown that will last for a very long time. People don’t want Open Borders and Crime!  Mitch, use the Nuclear Option and get it done! Our Country is counting on you!
     The Democrats now own the shutdown!
 
@BEA_News: People’s incomes rose 0.2% in November; spending grew 0.4%. https://go.usa.gov/xEaeH
 
A late Noon Balloon developed as the Senate started the process to vote on the CR to keep the US government open and fund ‘the wall’.  The hope was that McConnell would utilize ‘the nuclear option’, which would allow the Senate to pass the spending bill on a majority vote. The rally lasted 15 minutes.
 
US stocks slid to new lows as the Senate began its rollcall vote on the short-term funding bill.  The selling continued into the final hour of trading.  Indices hit new session lows after DJT Trade Rep Navarro said reaching a trade deal with China is 90 days is “difficult” unless China does a full trade overhaul.
 
China is trying to steal our future: Navarro
Hard-line White House adviser says trade agreement in 90 days will be difficult

 

Mystery Filing Appears to Ask High Court to Act in Mueller Probe
The appeals court order described the company only as a “corporation” owned by “Country A.” The three-judge panel rejected contentions that a federal sovereign-immunity law shielded the company from having to comply.  The new filing asks Chief Justice John Roberts to temporarily block that ruling…
 
Today – After expiry, there is usually a post-expiration position squaring rally at some point in the morning.  With stocks closing at 13:00 ET, most action should occur early.  After the European close, activity should be muted due to high absenteeism – but a select few might juice ESHs in the thin market.
 
The window for the Santa Rally opens today and continues through the first two trading sessions of 2019.
 
The S&P 500 Index “Death Cross” and Rising Wedge downward breach, as well as the Dow Theory Sell Signal were very prescient.
 
As we write, ESHs are +12.75 because Mnuchin will have a Monday morning teleconference with the Plunge Protection team.  https://twitter.com/stevenmnuchin1/status/1076958380361543681
 
It’s absurd and demeaning for the PPT to meet for a nonemergency.  Reports have the Street complaining about the stock carnage and/or Powell.  This makes Mnuchin looks like a Street stooge or a DJT soother.
 
Traders should heed intraday patterns and indicators, particularly, the First-Hour Indicator, ESZ overnight high/low; S&P 500 Index high and low from yesterday and NYSE A/Ds.
 
The S&P 500 Index 50-day MA: 2692; 100-day MA: 2785; 150-day MA: 2779; 200-day MA: 2753 
The DJIA 50-day MA: 24,914; 100-day MA: 25,454; 150-day MA: 25,255; 200-day MA: 25,046
 
S&P 500 Index support: 2400, 2380, 2360, 2352, 2328, 2320-22, 2300
Resistance: 2428, 2446, 460, 2474, 2488, 2504-09, 2520, 2528-32, 2540, 2566, 2573, 2585, 2601
END
A MERRY CHRISTMAS TO YOU ALL
I WILL SEE YOU ON WEDNESDAY
H
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