JAN 29/GOLD RISES BY $6.15 TO $1310.25/SILVER UP 9 CENTS TO $15.84/HUGE ADDITIONS OF GOLD AND SILVER INTO THE GLD/AND SLV RESPECTIVELY/CRIMINAL CHARGES LAID AGAINST HUAWEI/EXTRADITION PROCEEDINGS START AGAINST MENG//PG AND E FILES FOR BANKRUPTCY PROTECTION/HOUSE PRICES FALL TO WORST LEVELS IN MANY YEARS/

 

 

 

GOLD: $1310.25 UP $6.15 (COMEX TO COMEX CLOSING)

Silver:   $15.84 UP 9 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  1311.75

 

silver: $15.85

 

 

 

 

 

 

 

 

For comex gold and silver:

JANUARY

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  JAN CONTRACT: 25 NOTICE(S) FOR 2500 OZ (0.0777 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  585 NOTICES FOR 58500 OZ  (1.8195 TONNES)

 

 

SILVER

 

FOR JANUARY

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

351 NOTICE(S) FILED TODAY FOR 1,7555,000  OZ/

 

total number of notices filed so far this month: 1170 for 5,850,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE $3390: DOWN 44

 

Bitcoin: FINAL EVENING TRADE: $3418 DOWN   $15 

 

end

 

XXXX

JPMorgan or Goldman Sachs are taking a huge issuance (stopping) of gold at the comex.

today 10/25

EXCHANGE: COMEX
CONTRACT: JANUARY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,302.400000000 USD
INTENT DATE: 01/28/2019 DELIVERY DATE: 01/30/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
624 C MERRILL 4
657 C MORGAN STANLEY 3
661 C JP MORGAN 10 7
685 C RJ OBRIEN 6
737 C ADVANTAGE 3 5
905 C ADM 12
____________________________________________________________________________________________

TOTAL: 25 25
MONTH TO DATE: 585

 

 

 

 

Let us have a look at the data for today

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In silver, the total OPEN INTEREST ROSE BY A CONSIDERABLE SIZED 1127 CONTRACTS FROM 191,473 UP TO 192,066 ACCOMPANYING YESTERDAY’S 5 CENT GAIN  IN SILVER PRICING AT THE COMEX. TODAY WE ARRIVED CLOSER TO  AUGUST’S 2018  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 22 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:

386 EFP’S FOR MARCH,  0 FOR APRIL, 0 FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 386 CONTRACTS. WITH THE TRANSFER OF 386 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 386 EFP CONTRACTS TRANSLATES INTO 1.930 MILLION OZ  ACCOMPANYING:

1.THE 5 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

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

 21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

AND NOW: INITIALLY 5.805 MILLION OZ STAND IN JANUARY.

 

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF JANUARY: 40,416 CONTRACTS (FOR 19 TRADING DAYS TOTAL 40,416 CONTRACTS) OR 202.09 MILLION OZ: (AVERAGE PER DAY: 2224 CONTRACTS OR 11.120 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JAN:  202.09 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 28.87% 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 2019 TO DATE SILVER EFP’S:           202.09    MILLION OZ.

 

 

 

RESULT: WE HAD A GOOD SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1127 WITH THE 5 CENT GAIN IN SILVER PRICING AT THE COMEX //YESTERDAY..THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 386 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE GAINED A GOOD SIZED: 1513 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 386 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1127 OI COMEX CONTRACTSAND ALL OF THIS  DEMAND HAPPENED WITH A 5 CENT GAIN IN PRICE OF SILVER  AND A CLOSING PRICE OF $15.75 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. .896 BILLION OZ TO BE EXACT or 128% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JANUARY MONTH/ THEY FILED AT THE COMEX: 351 NOTICE(S) FOR 1785,000 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./ DEC. AT 21.925 MILLION OZ  AND NOW JANUARY AT  5.825 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 7237 CONTRACTS DOWN TO 530,368 DESPITE THE RISE IN THE COMEX GOLD PRICE/(A GAIN IN PRICE OF $5.30//YESTERDAY’S TRADING). 

THE LOSS IN OPEN INTEREST IS DUE TO SPREADERS WHO MUST LIQUIDATE THEIR POSITIONS AS THEY COME INTO AN ACTIVE DELIVERY MONTH. SINCE FEBRUARY IS AN ACTIVE MONTH FOR GOLD, THIS IS WHY WE ALWAYS SEE A CONTRACTION IN OPEN INTEREST ONCE WE APPROACH FIRST DAY NOTICE. SINCE THE SPREADERS HAVE AN IDENTICAL LONG AND SHORT POSITION, THE LIQUIDATION DOES NOT AFFECT PRICE.

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG  SIZED 8597 CONTRACTS:

 

FEBRUARY HAD AN ISSUANCE OF 8597 CONTACTS  APRIL 0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 537,076. 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 STRONG SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1360 CONTRACTS: 7237 OI CONTRACTS DECREASED AT THE COMEX AND 8597 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 1360 CONTRACTS OR 136,000 OZ = 4.23 TONNES. AND ALL OF THIS GOOD DEMAND OCCURRED WITH A RISE IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $5.30

 

 

 

 

 

YESTERDAY, WE HAD 7727 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY : 149,061 CONTRACTS OR 14,906,100 OZ  OR 463.63 TONNES (19 TRADING DAYS AND THUS AVERAGING: 7845 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAYS IN  TONNES: 436.88 TONNES

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

THUS EFP TRANSFERS REPRESENTS 463.63/2550 x 100% TONNES = 18.18% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     463.63  TONNES

 

 

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 GOODSIZED DECREASE IN OI AT THE COMEX OF 7237 (WITH THE MAJORITY OF THE LOSS COMING FROM THE LIQUIDATION OF THE SPREADERS) DESPITE THE GAIN IN PRICING ($5.30) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8597 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 8597 EFP CONTRACTS ISSUED, WE HAD A GOOD GAIN OF 1360 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

8597 CONTRACTS MOVE TO LONDON AND 7237 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 4.23 TONNES). ..AND ALL OF THIS  DEMAND OCCURRED WITH THE GAIN OF $5.30 IN YESTERDAY’S TRADING AT THE COMEX

 

 

we had: 25 notice(s) filed upon for 2500 oz of gold at the comex.

 

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

GLD...

 

WITH GOLD UP $6.15 TODAY 

 

ANOTHER BIG CHANGE IN GOLD INVENTORY AT THE GLD

A DEPOSIT OF 5.88 TONNES OF PAPER GOLD INTO THE GLD

 

 

 

 

 

/GLD INVENTORY   815.64 TONNES

Inventory rests tonight: 815.64 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 9 CENTS  IN PRICE  TODAY:

 

 

A BIG CHANGE IN SILVER INVENTORY/

A DEPOSIT OF 1.408 MILLION OZ/

 

 

 

 

 

 

/INVENTORY RESTS AT 308.659 MILLION OZ.

 

 

end

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in SILVER ROSE BY A GOOD SIZED 1127 CONTRACTS from 191,473 UP TO 192600  AND MOVING CLOSER TO 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:

 

386 CONTRACTS FOR MARCH. 0 CONTRACTS FOR APRIL., 0 FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 386 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI GAIN AT THE COMEX OF 1127 CONTRACTS TO THE 386 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD GAIN  OF 1513  OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 9.78 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.  21.925 MILLION OZ  STANDING IN DECEMBER AND 5.845 MILLION OZ STANDING IN JANUARY..

 

 

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 5 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING// FRIDAY.BUT WE ALSO HAD A GOOD SIZED 386 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)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.72 PTS OR 0.10% //Hang Sang CLOSED DOWN 45.64 POINTS OR 0.08% /The Nikkei closed UP 15.64  PTS OR 0.08%/ Australia’s all ordinaires CLOSED DOWN .53%

/Chinese yuan (ONSHORE) closed UP  at 6.7353 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 52.48 dollars per barrel for WTI and 60.53 for Brent. Stocks in Europe OPENED GREEN 

//ONSHORE YUAN CLOSED UP AT 6.7353AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.7571: / 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 WEAKER 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//USA/Sweden

 

 

b) REPORT ON JAPAN

 

 

3 C/  CHINA

 

 

i) CHINA/HUAWEI

Yesterday,we got word that Huawei would be charged with financial fraud and last night it became official.  The USA is now seeking the extradition of Meng

( zerohedge)

ii)Chinese tech stocks plunge on word of the criminal charges against Huawei corporation.

( zerohedge)

iii)Funny!  Meng’s lawyer accuses the USA of hostage taking after the Dept of Justice indictment

( zerohedge)

iv)The big divide still remains as China fights USA demands for deep structural changes ahead of this week’s trade talks

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

UKI/

The pound jumps as Theresa May asks for a mandate to renegotiate with the EU

( zerohedge)

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)/Russia

 

 

 

6. GLOBAL ISSUES

NATO

Even those who hate Trump, you must admit, that he did good on this one:  he scored a major victory as he caused delinquent NATO members to boost contributions by 100 billion dollars

( zerohedge)

Mexico

Mexico is now starting to look like Venezuela with thiefs drilling thousands of holes in their pipeline scheme stealing the state owned oil  No wonder there is a shortage of oil at the pumps

 

( Simon Black/SovereignMan.com)

7. OIL ISSUES

We have been highlighting this to you for the past 3 years..shale production and total reserves are just not there.  This should eventually lead to a big drop in total production from fracking

( Kurt Cobb/Oil Price.com)

 

 

 

8 EMERGING MARKET ISSUES

 

VENEZUELA/USA

i)John Bolton admits the real reason he wants Maduro out:  he wants American oil companies to enter Venezuela and pull the sour oil out of the ground

The Russians and Chinese who have lent considerable funds will not be happy

( zerohedge)

ii)Three important points to note here:

  1. USA issues a do not travel advisory to Venezuela
  2. Moscow orders Venezuela to pay on a debt due in March (100 million dollars)
  3. China is the other debt holder of 30 billion dollars

It looks like Venezuela with the sanctions will not be able to pay..

( zerohedge)

 

9. PHYSICAL MARKETS

i)As we pointed out to you yesterday, the budgetary deficits in the USA are climbing.  The greater USA spending causes the greater issuance of debt and with that count on more commodity price suppression
( Bloomberg/GATA)

ii)Alasdair’s 10 factors to look for in gold this year.(Alasdair Macleod)

iii)A joke:  it is governments that are stopping the repatriation of gold to Venezuela.

(courtesy Bloomberg/GATA)

iv)What a joke!!’ My nemesis Jeff Christian vouches for Chinese integrity in their “accurate” accounting of gold reserves

(courtesy GATA/Kitco)

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

 

 

MARKET TRADING

 

ii)Market data/

i)Another indicator of a faltering USA economy: consumer confidence collapses as well as job hopes.  This is the worst reading in 50 years

( zerohedge)

ii)Another indicator of the USA slowdown:  USA home price growth slumps to 4 yr lows
( zerohedge)

 

 

iii)USA ECONOMIC/GENERAL STORIES

a)PG and E tumbles last night on a report that creditors are rejecting the debt deal…they will proceed to bankruptcy

( zerohedge)

b) PG and E file for bankruptcy protection with 50 billion dollars in debt

( zerohedge)

iv)SWAMP STORIES

a)Whittaker says that the Mueller probe is “close to being completed”

( zerohedge)

b)It seems Guiliani is looking ahead the 2020 election rather than concerning himself with Mueller
( zerohedge)

 

 

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

 

end

 

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN FELL BY AN GOOD SIZED 7237 CONTRACTS DOWN TO A LEVEL OF 530,365 DESPITE THE RISE IN THE PRICE OF GOLD ($5.30) 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. THE REASON FOR THE COLLAPSE IS THE FORCED LIQUIDATION OF THE SPREADERS.

 

 

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF JANUARY..  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 8597 EFP CONTRACTS WERE ISSUED:

FOR FEBRUARY:  8597. FOR APRIL 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  8597 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:  1360 TOTAL CONTRACTS IN THAT 8597 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE A GOOD SIZED 7237 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 1360 contracts OR 136,000  OZ OR 4.23 TONNES.

 

We are now in the NON active contract month of JANUARY and here the open interest stands at 25 contracts as we LOST  23 contracts. We had 0 notices filed on yesterday so we LOST 23 contracts or NIL 2300 oz will NOT stand for delivery as these guys morphed into London based forwards as well as receiving a fiat bonus.

 

 

The next active delivery month is February and here the OI LOST 43,958 contracts DOWN to 104,946 contracts.  After February, March GAINED 119 contracts to stand at 1286.  After March, the next big delivery month is April and here the OI rose by 30,473 contracts up to 307,912 contracts. We have 2 days left before first day notice.

AT THIS TIME OF THE DELIVERY CYCLE LAST YEAR WE HAD FEB 2018 OPEN INTEREST OF 77,049 CONTRACTS//2 DAYS BEFORE FDN.( vs today:  104,946 contracts//2 DAYS BEFORE FDN)

 

 

 

FOR COMPARISON TO THE  January 2018 contract month/AND FEBRUARY 2018

 

 

ON JANUARY 1/2018: 1.297 TONNES STOOD FOR DELIVERY  (Jan 1 2019 initial standing 1.306 tonnes)

EVENTUALLY ON JAN 31.2018: 2.17 TONNES STOOD FOR DELIVERY AS QUEUE JUMPING STARTED IN EARNEST AT THE GOLD COMEX

ON FEB 1.2018: 20.07 TONNES OF GOLD STOOD FOR DELIVERY, BUT BY THE END OF MONTH ONLY 8.55 TONNES EVENTUALLY STOOD AS THE REST MORPHED INTO LONDON BASED FORWARDS.

 

WE HAD 25 NOTICES FILED AT THE COMEX FOR 2500 OZ. (0..0777 tonnes)

 

 

 

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And now for the wild silver comex results.

Total silver OI ROSE BY A GOOD SIZED 1127  CONTRACTS FROM 191,473 UP TO 192,600(AND CLOSER TO 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 5 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JANUARY AND THE  AMOUNT OF OPEN INTEREST READY TO STAND IS 357 CONTRACTS HAVING LOST  1 CONTRACT FROM YESTERDAY.  WE HADNOTICES FILED ON YESTERDAY, SO WE GAINED 4 CONTRACTS OR  20,000 ADDITIONAL OZ OF SILVER WILL STAND FOR SILVER AS THESE GUYS REFUSED TO  MORPH INTO LONDON BASED FORWARDS AS WELL AS NEGATING A FIAT BONUS. QUEUE JUMPING IS THE NORM AT THE SILVER COMEX AS THE DEALERS SCRAMBLE FOR WHATEVER PHYSICAL THEY CAN OBTAIN.

 

 

 

THE NEXT NON ACTIVE DELIVERY MONTH IS FEBRUARY AND HERE THE OI ROSE BY 1 CONTRACTS UP TO 429. AFTER FEBRUARY IS THE VERY BIG AND ACTIVE DELIVERY MONTH OF MARCH AND HERE THE OI LOST BY 386 CONTRACTS UP TO 137,823 CONTRACTS.

COMPARISON VS LAST YR:

AS A COMPARISON TO LAST YEAR WITH 2 DAYS TO GO BEFORE FIRST DAY NOTICE WE HAD 148 CONTRACTS STANDING FOR DELIVERY (VS 357 TODAY/2 DAYS BEFORE FIRST DAY NOTICE).

 

 

ON A NET BASIS WE GAINED 1513 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 1127 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 386 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:  1513 CONTRACTS...AND ALL OF THIS OCCURRED WITH A 5 CENT GAIN IN PRICING// FRIDAY

 

 

 

 

 

FOR COMPARISON TO THE COMEX 2017 CONTRACT MONTH AND JANUARY 2018 CONTRACT MONTH AND FEB 2018

 

 

 

ON FIRST DAY NOTICE JAN 1/2018 CONTRACT MONTH WE HAD A GOOD 2.695 MILLION OZ STAND FOR DELIVERY’

AT THE CONCLUSION OF JAN/2018 WE HAD 3.650 MILLION OZ STAND AS QUEUE JUMPING WAS THE NORM FOR SILVER

.

ON FIRST DAY NOTICE FEB 1 CONTRACT MONTH WE HAD 670,000 OZ.  AT THE MONTH’S CONCLUSION WE HAD 2.035 MILLION OZ STAND AS WE WITNESSED QUEUE JUMPING ON A REGULAR BASIS AT THE SILVER COMEX.

 

 

 

 

 

 

 

We had 351 notice(s) filed for 1,755,000 OZ for the FEB, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY:  370,542 CONTRACTS

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  388,065  contracts

 

 

 

 

 

 

 

 

 

 

 

INITIAL standings for  JAN/GOLD

JAN 29/2019.

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

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

nil

 

OZ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
25 notice(s)
 2500 OZ
No of oz to be served (notices)
0 contracts
(NIL oz)
Total monthly oz gold served (contracts) so far this month
585 notices
58,500 OZ
1.8195 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entries:

 

 

total dealer deposits: NIL oz

total dealer withdrawals: 0 oz

We had 0 kilobar entries

 

we had 0 deposits into the customer account

 

 

 

total gold customer deposits;  nil oz

 

we had 0 gold withdrawals from the customer account:

 

 

 

 

total gold withdrawing from the customer;  nil oz

 

we had 0  adjustments….

FOR THE JAN 2019 CONTRACT MONTH)

Today, 0 notice(s) were issued from JPMorgan dealer account and 7 notices were issued from their client or customer account. The total of all issuance by all participants equates to 25 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 10 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

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To calculate the INITIAL total number of gold ounces standing for the JANUARY/2019. contract month, we take the total number of notices filed so far for the month (585) x 100 oz , to which we add the difference between the open interest for the front month of JAN. (25 contract) minus the number of notices served upon today (25 x 100 oz per contract) equals 58,500 OZ OR 1.8195 TONNES) the number of ounces standing in this NON  active month of JANUARY

 

Thus the INITIAL standings for gold for the JAN/2019 contract month:

No of notices served (585 x 100 oz)  + {25)OI for the front month minus the number of notices served upon today (25 x 100 oz )which equals 5850oz standing OR 1.8195 TONNES in this NON  active delivery month of JANUARY.

Today we LOST 23 contracts or an additional 2300 oz will NOT stand in this non active month of January

.

 

 

 

 

 

THERE ARE ONLY 23.055 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 1.8195 TONNES STANDING FOR JANUARY

LAST MONTH WE HAVE 23.37 TONNES OF GOLD SUPPOSEDLY DELIVERED UPON BUT THIS AMOUNT OF GOLD DID NOT LEAVE THE REGISTERED GOLD CATEGORY AT THE COMEX.

 

 

total registered or dealer gold:  743,234.607 oz or   23.11 tonnes
total registered and eligible (customer) gold;   8,422,945.67 oz 261.98 tonnes

IN THE LAST 27 MONTHS 92 NET TONNES HAS LEFT THE COMEX.

 

end

And now for silver

AND NOW THE NOV DELIVERY MONTH

JAN INITIAL standings/SILVER

JAN 29, 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
216,115.891 oz
int delaware
HSBC
CNT

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
596,625,429 oz
Scotia
No of oz served today (contracts)
351
CONTRACT(S)
1755,000 OZ)
No of oz to be served (notices)
6 contracts
30,000 oz)
Total monthly oz silver served (contracts) 1170 contracts

(5,850,000 oz)

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

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits:  nil  oz

total dealer withdrawals: 0 oz

we had 1 deposits into the customer account

 

i) Into JPMorgan: nil  oz

 

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

JPMorgan now has 147.7 million oz of  total silver inventory or 50.77% of all official comex silver. (149.787 million/295 million)

 

ii) Into Scotia:  596,625.420oz

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today: 596,625.420   oz

we had 3 withdrawals out of the customer account:
i) Out of I Delaware:  24,198.223oz

ii) Out of HSBC  167,063.890 oz

iii) Out of CNT:  24,853.778 oz

 

 

 

 

 

total withdrawals: 216,115.891    oz

 

we had 1 adjustments..

i) out of CNT  1,685,887.420 oz was adjusted out of the customer CNT into the dealer account.

 

 

total dealer silver:  87.798 million

total dealer + customer silver:  297.831 million oz

 

 

 

 

The total number of notices filed today for the JANUARY 2019. contract month is represented by 351 contract(s) FOR 1,755,000  oz

To calculate the number of silver ounces that will stand for delivery in JAN., we take the total number of notices filed for the month so far at 1170 x 5,000 oz = 5,850,000 oz to which we add the difference between the open interest for the front month of JAN. (357) and the number of notices served upon today (351x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JANUARY/2019 contract month: 1170(notices served so far)x 5000 oz + OI for front month of JAN( 357) -number of notices served upon today (351)x 5000 oz equals 5,880,000 oz of silver standing for the JANUARY contract month.  This is a strong number of oz standing for an off delivery month. We gained 4 contracts or an additional 20,000 oz will  stand for delivery and these guys refused to morph into London based forwards as well as negating a fiat bonus.

 

 

 

 

 

 

 

 

 

 

 

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TODAY’S SILVER VOLUME:  59,588 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 62,076 CONTRACTS… 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 62,076 CONTRACTS EQUATES to 310 million OZ  44.3% 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 RISES TO -3.77% (JAN 29/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.93% to NAV (JAN 29 /2019 )
Note: Sprott silver trust back into NEGATIVE territory at -3.77%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.34/TRADING 12.88/DISCOUNT 3.42

END

And now the Gold inventory at the GLD/

JAN 29/WITH GOLD UP $6.15/A HUGE ADDITION OF 5.88 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 815.64 TONNES

JAN 28/WITH GOLD UP $5.30 TODAY:NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 809.76 TONNES

JAN 25/WITH GOLD UP $17.90: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 809.76 TONNES

jAN 24/WITH GOLD DOWN $3.70?: NO CHANGES AT THE GLD/INVENTORY RESTS AT 809.76 TONNES

JAN 23/WITH GOLD UP 50 CENTS: NO CHANGES AT THE GLD/INVENTORY RESTS AT 809.76 TONNES

JAN 22/WITH GOLD UP A TINY $.85 A MASSIVE PAPER DEPOSIT OF 12.06 TONNES OF GOLD INTO THE FRAUDULENT GLD/INVENTORY RESTS AT 809.76 TONNES

JAN 18/WITH GOLD DOWN $9.65: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 797.71

JAN 17/WITH GOLD DOWN $1.10: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 797.71

JAN 16/WITH GOLD UP $5.40 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 797.71

JAN 15/WITH GOLD DOWN $1.65: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 797.71 TONNES

JAN 14/WITH GOLD UP $1.60/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 797.71 TONNES

JAN 11/WITH GOLD UP $2.30 TODAY ANOTHER WITHDRAWAL OF 1.47 TONNES OF GOLD/INVENTORY RESTS AT 797.71 TONNES

JAN 10/WITH GOLD DOWN $4.00/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 799.18 TONNES

JAN 9/WITH SILVER UP $6.00/ TWO TRANSACTIONS: a) A TINY WITHDRAWAL OF .25 TONNES TO PAY FOR FEES ETC b) A HUGE DEPOSIT OF 2.65 TONNES INTO THE GLD INVENTORY./INVENTORY RESTS AT 799.18 TONNES

JAN 8/WITH GOLD DOWN $3.70 TODAY, A WITHDRAWAL OF 1.47 TONNES AND THIS GOLD WAS USED IN THE RAID/INVENTORY RESTS AT 796.78 TONNES

JAN 7/WITH GOLD UP $4.45 TODAY: A HUGE DEPOSIT OF 2.94 TONNES OF GOLD ENTERED THE GLD/INVENTORY RESTS AT 798.25 TONNES

JAN 4/WITH GOLD DOWN $8.65 TODAY; NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 795.31 TONNES

JAN 3/2019/WITH GOLD UP $10.65 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 795.31 TONNES

JAN 2.2019/WITH GOLD UP $3.35 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 7.64 TONNES/INVENTORY RESTS AT 795.31 TONNES

DEC 31/WITH GOLD DOWN $2.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 787.67 TONNES

DEC 28/WITH GOLD UP $2.20 STRANGELY A WITHDRAWAL OF 2.35 TONNES FROM THE GLD/INVENTORY RESTS AT 787.67 TONNES

DEC 27/WITH GOLD UP $8.65: A MASSIVE 15.88 TONNES WAS ADDED INTO THE GLD/INVENTORY RESTS AT 790.02 TONNES

DEC 26/WITH GOLD UP $0.15: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 774.14 TONNES

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

 

 

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JAN 29/2019/ Inventory rests tonight at 815.64 tonnes

*IN LAST 542 TRADING DAYS: 119.51 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 442 TRADING DAYS: A NET 40.52 TONNES HAVE NOW BEEN ADDED INTO THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

JAN 29/WITH SILVER UP 9 CENTS TODAY/A HUGE DEPOSIT OF 1.408 MILLION OZ  IN SILVER INVENTORY AT THE SLV.INVENTORY RESTS AT 308.659 MILLION OZ/

JAN 28/WITH SILVER UP 5 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 307.251 MILLION OZ/

JAN 25/WITH SILVER UP 40 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 307.251 MILLION OZ/

JAN 24/WITH SILVER DOWN 7 CENTS TODAY: NO CHANGES IN SILVER INVENTORY

JAN 23/WITH SILVER UP 4 CENTS: A HUGE LOSS OF 938,000 FROM THE SLV/INVENTORY RESTS AT 307.251 MILLION OZ/

JAN 22/WITH SILVER DOWN 5 CENTS: A HUGE DEPOSIT OF 1.179 MILLION OZ INTO THE SLV/SLV IS A FRAUDULENT VEHICLE/INVENTORY RESTS AT 308.189 MILLION OZ/

JAN 18/WITH SILVER DOWN 13 CENTS: NO CHANGE IN SILVER INVENTORY/NO DOUBT THE MASSIVE WITHDRAWAL OF PAPER SILVER WAS USED IN THE RAID TODAY/INVENTORY RESTS AT 307.110

JAN 17/WITH SILVER DOWN 9 CENTS TODAY:ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV; A MASSIVE WITHDRAWAL OF 3.895 MILLION OZ./INVENTORY RESTS AT 307.110 MILLION OZ/

JAN 16/WITH SILVER FLAT TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV

A WITHDRAWAL OF 2.158 MILLION OZ/INVENTORY RESTS AT 311.005 MILLION OZ/

JAN 15/WITH SILVER DOWN 4 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 469,000 OZ FROM ITS INVENTORY/INVENTORY RESTS AT 313.163 MILLION OZ/

JAN 14/WITH SILVER UP ONE CENT TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 313.632 MILLION OZ/

JAN 11/WITH SILVER UP 4 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 313.632 MILLION OZ/

JAN 10/WITH SILVER DOWN 11 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 313.632 MILLION OZ/

JAN 9/WITH SILVER  UP 4 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.126 MILLION OZ/INVENTORY LOWERS TO 313.632 MILLION OZ/???

JAN 8/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 314.758 MILLION OZ

JAN 7/WITH SILVER DOWN ONE CENT: A HUGE WITHDRAWAL OF 2.347 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 314.758 MILLION OZ/

JAN 4/WITH SILVER DOWN 3 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV.INVENTORY RESTS AT 317.105 MILLION OZ

JAN 3/2019/WITH SILVER UP 22 CENTS A SMALL CHANGE TODAY: A WITHDRAWAL OF 118,000 OZ TO PAY FOR FEES:  INVENTORY RESTS AT 317.105 MILLION OZ/

JAN 2/2019/WITH SILVER UP 10 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.233 MILLION OZ/

DEC 31/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.233 MILLION OZ/

DEC 28/WITH SILVER UP 10 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.233 MILLION OZ/

DEC 27/WITH SILVER UP 22 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: AN ADDITION OF 94,000 OZ/INVENTORY RESTS AT 317,233

DEC 26/WITH SILVER UP 27 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.139 MILLION OZ

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/

 

 

JAN 29/2019:

 

Inventory 308.659 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 2.30/ and libor 6 month duration 2.83

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

G0LD LENDING RATE: + .53

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.60%

LIBOR FOR 12 MONTH DURATION: 3.03

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.43

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold Consolidates Above $1,300 After 1.2% Gain Last Week

via Marketwatch:

Gold futures settled above $1,300 an ounce on Friday, with prices for the yellow metal at their highest since June as the U.S. dollar pulled back and investors eyed geopolitical turmoil and global growth worries.

Rising gold prices reflect “political uncertainty” in the U.S., Eurozone, Venezuela and pockets of South America, as well as China-U.S. trade talks, said George Gero, managing director in RBC.

Gold for February delivery added $18.30, or 1.4%, to settle at $1,304.20 an ounce after trading as high as $1,305.80. The April contract notched its highest finish since June and climbed by 1.2% for the week, according to FactSet data.

March silver rose 39.9 cents, or 2.6%, to $15.699 an ounce—settling 2% higher for the week.

Gold Note

The strong gains seen in gold and silver last week and gold’s close above $1,300 per ounce are bullish technically. It suggests that gold has broken out of its recent range and could move higher in the coming days.

Possibly what will determine gold’s short term price outlook is how equity markets perform. If risk appetite continues and stocks make further gains, gold may see some selling again. However, if stocks resume their declines then gold will likely catch a safe haven bid again.

We have seen an increase in safe haven demand from UK and Irish clients in recent days. It is nothing major though and nothing compared to the increase in demand we saw after the Brexit vote, the Northern Rock bank run or indeed the global financial crisis in 2008.

We are seeing little or no selling and nearly all buying. Bullion buyers tend to be risk averse and motivated by wealth preservation and therefore focus on owning gold (and silver) for the long term.

 

News and Commentary

Parliament to Challenge May for Brexit Power in Crucial Votes (Bloomberg.com)

U.K. Military Stockpiles Food, Fuel, Ammo Ahead of Brexit: Sky (Bloomberg.com)

Gold firm near 7-month peak on U.S. rate pause hopes (Reuters.com)

Asia shares pare gains as focus turns to crucial Sino-U.S. trade talks (Reuters.com)

Trump doubts border security deal, another government shutdown looms (Reuters.com)

Oil falls on increased U.S. rig count, China industrial slowdown (Reuters.com)


Source: Bloomberg

Bitcoin Investors Are Running From Crypto To Invest In Gold This Year (CNBC.com)

Why This Billionaire Just Bought Gold for the First Time in His Life (GoldSeek.com)

U.S. is behind Bank of England’s freeze of Venezuela’s gold (Bloomberg.com)

How Should We Then Invest? (GoldSeek.com)

Tumbling Asian Exports Confirm Global Earnings Recession (ZeroHedge.com)

How the U.K. Parliament Is Trying to Seize Control of Brexit (Bloomberg.com)

Chemical elements which make up mobile phones placed on ‘endangered list’ (St-Andrews.Ac.UK)

Listen on iTunes,Blubrry & SoundCloud  & watch on YouTube above

Gold Prices (LBMA PM)

25 Jan: USD 1,282.95, GBP 981.33 & EUR 1,132.08 per ounce
24 Jan: USD 1,279.75, GBP 981.70 & EUR 1,128.36 per ounce
23 Jan: USD 1,284.90, GBP 990.14 & EUR 1,131.74 per ounce
22 Jan: USD 1,284.75, GBP 994.14 & EUR 1,130.58 per ounce
21 Jan: USD 1,278.70, GBP 995.08 & EUR 1,124.11 per ounce
18 Jan: USD 1,285.05, GBP 993.34 & EUR 1,126.86 per ounce
17 Jan: USD 1,294.00, GBP 1,004.92 & EUR 1,135.87 per ounce

Silver Prices (LBMA)

25 Jan: USD 15.37, GBP 11.74 & EUR 13.55 per ounce
24 Jan: USD 15.30, GBP 11.75 & EUR 13.48 per ounce
23 Jan: USD 15.38, GBP 11.80 & EUR 13.54 per ounce
22 Jan: USD 15.26, GBP 11.84 & EUR 13.44 per ounce
21 Jan: USD 15.26, GBP 11.86 & EUR 13.42 per ounce
18 Jan: USD 15.47, GBP 11.96 & EUR 13.56 per ounce
17 Jan: USD 15.57, GBP 12.08 & EUR 13.66 per ounce

Recent Market Updates

– Gold Bullion Will Protect From Politicians, Brexit and Increasing Market Volatility In 2019
– Brexit – The Pin That Bursts London Property Bubble
– Davos: David Attenborough Warns We Are Damaging The World ‘Beyond Repair’
– Gold May Return 25% In 2019 Given Brexit, Trump and Other Risks – IG TV Interview GoldCore
– Brexit, EU, Germany, China and Yellow Vests In 2019 – Something Wicked This Way Comes
– Three Reasons Gold May Embark On An Extended Rally
– Political Turmoil in UK & US Sees Gold Hit 2 Week High
– Gold Holds Steady Over €1,100/oz – Increased Possibility Of A Disorderly Brexit
– Turbulence and Brexit Make Safer Options Like Gold and Cash Essential
– Where Will The “Pending” Financial Crisis Originate?
– Gold and Silver Prices To Rise To $1,650 and $30 By 2020? Video Update
– Gold Outlook 2019: Uncertainty Makes Gold A “Valuable Strategic Asset” – WGC
– Blackrock Say Gold Will Be A “Valuable Portfolio Hedge” In 2019

Mark O’Byrne
Executive Director
GATA STORIES AS IT RELATES TO PHYSICAL GOLD/SILVER
As we pointed out to you yesterday, the budgetary deficits in the USA are climbing.  The greater USA spending causes the greater issuance of debt and with that count on more commodity price suppression
(courtesy Bloomberg/GATA)

More spending and debt will compel more commodity price suppression

 Section: 

U.S. Treasury Set to Borrow $1 Trillion for a Second Year to Finance the Deficit

By Liz McCormick, Saleha Mohsin, and Alexandre Tanzi
Bloomberg News
Monday, January 28, 2019

The U.S. Treasury Department is set to maintain elevated sales of long-term debt to finance the government’s widening budget deficit, with new issuance projected to top $1 trillion for a second-straight year.

Many strategists at primary-dealer firms predict that this Wednesday’s quarterly refunding announcement will see the Treasury maintain note and bond sales at the record high levels they have boosted them to in recent months.

The total amount of 3-, 10- and 30-year securities to be offered at next week’s refunding auctions is seen by most at $84 billion. While that’s $1 billion more than the total for these maturities three months ago, that’s only because the size of the three-year sale was already nudged higher in December. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-01-28/another-year-another-…

* * *

END

A joke:  it is governments that are stopping the repatriation of gold to Venezuela.

(courtesy Bloomberg/GATA)

UK government pretends Bank of England is some independent entity

 Section: 

So how come the voters don’t elect the bank’s governor?

* * *

U.K. Leaves Fate of Venezuela’s Gold Up to the Bank of England

By Stuart Biggs and Jess Shankleman
Bloomberg News
Monday, January 28, 2019

The U.K. government said it is up to the Bank of England to decide what to do with the “significant amount” of gold it is holding under contract for the embattled Venezuelan regime of Nicolas Maduro.

“This is a decision for the Bank of England, not for government,” Foreign Office Minister Alan Duncan told Parliament today during an urgent question on Venezuela. “It is they who have to make a decision on this, but no doubt they will take into account when they do so, that a large number of countries across the world are now questioning the legitimacy of Nicolas Maduro.”

The Bank of England holds about $1.2 billion worth of gold for Venezuela, a significant chunk of the $8 billion in foreign reserves held by the nation’s central bank. That’s put the British regulator at the center of the growing international opposition to Maduro’s government. U.S. officials are trying to steer Venezuela’s assets to National Assembly leader Juan Guaido to bolster his chances of taking power.

Retrieving the gold from the BOE has been a major priority for the Maduro regime for weeks. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-01-28/u-k-leaves-fate-of-ve…

* * *

END.

Alasdair’s 10 factors to look for in gold this year….a must read….

(Alasdair Macleod)

Alasdair Macleod: 10 factors to look for in gold in 2019

 Section: 

7:53p ET Monday, January 28, 2019

Dear Friend of GATA and Gold:

GoldMoney research director Alasdair Macleod tonight itemizes 10 factors he expects to bear heavily on the world economy and the gold price this year. Of course they are all bullish for the monetary metal. So why hasn’t gold’s price already reached, say, $5,000 per ounce? Also at work are factors long covered by GATA, just not by Macleod tonight. His analysis is headlined “Ten Factors to look for in Gold in 2019” and it’s posted at GoldMoney here:

https://www.goldmoney.com/research/goldmoney-insights/ten-factors-to-loo…

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

END

Ten Factors To Look For In Gold In 2019

The following is a list of the ten most important factors likely to affect gold in 2019. I have grouped them under two broad headings, economic developments, and factors affecting gold itself.

Possible economic developments to look for

  • It’s late in the credit cycle, and it appears the end of the expansion phase is in sight. This being the case, we can see that government deficits are going to increase, due to lower tax receipts and higher welfare commitments as economic activity contracts. This will be covered by an increase in the rate of monetary inflation, which we are already seeing.
  • International trade flows have slowed sharply, as can be seen from China’s slump in demand. There can be no doubt that US tariff policies are having what could turn out to be a catastrophic effect on international trade.
  • Besides the decline in global trade being a clear signal that the global economy is in trouble, the budget deficit in the US will rise and therefore the trade deficit will tend to rise as well. If not, an increase in the savings rate must occur, which I think we can rule out, or there has to be a contraction in bank credit. In other words, contracting international trade can be expected to propel the US and other domestic economies into a slump. This is bound to provoke the Fed into financing the US government deficit through yet more QE.
  • The main economies in Asia (China, Russia, India and Iran) are all turning their backs on the dollar for trade settlement. This will have a profound effect on central bank reserves not just in Asia, but elsewhere as well, with the dollar being sold. Some countries, notably Russia, are buying gold instead.
  • Foreign ownership of dollar assets and cash exceeds US GDP: $18.412 plus $4.22bn equals $22.6tn. This is the highest rate relative to GDP ever seen. When the dollar and US securities markets begin to fall in earnest measured in declining dollars, there is bound to be massive foreign selling of dollars and dollar assets.

Factors directly affecting gold

  • Geopolitics – Asia, and Russia publicly, have swapped reserve dollars for gold. Given Russia is the world’s largest energy exporter, she will continue to have dollars to sell for gold. Also, Central Europeans, notably Hungary and Poland, are accumulating gold reserves. It is clear which way the Asian wind is blowing, and the Asians know gold is America’s weak point.
  • Price inflation has been badly misrepresented by CPI figures and have been averaging closer to about 8% annually since gold topped in Sept 2011. Since then the purchasing power of the dollar has declined by about 43%, so that in 2011 dollars the gold price is $740. No one seems to have noticed, leaving gold extremely cheap.
  • Monetary inflation post-Lehman crisis has not been fully absorbed. FMQ is still over $5tn above the pre-Lehman long-term expansion trend, and the Fed is unable to bring it down. Rather, they are likely to increase the fiat money quantity to save the government from having to borrow at market rates as the recession bites.
  • These are exactly the conditions faced by the German government between 1918 and 1923, and the likely response by the Fed will be the same. Print money to fund government deficits. Result, wealth transferred from the productive economy to be destroyed in government spending. The only difference is US and other welfare states have a stronger tax base than post-war Germany, so the rate of monetary expansion relative to the size of the economy will be less. Nevertheless, we are on the slippery slope to currency destruction and it will take much more political courage to address the inflation issue than the current political class appear to be capable of.
    • Gold is massively under-owned in the west.

end

What a joke!!’ My nemesis Jeff Christian vouches for Chinese integrity in their “accurate” accounting of gold reserves

(courtesy GATA/Kitco)

 

CPM Group’s Jeff Christian vouches for Chinese government’s integrity

 Section: 

10:36p ET Monday, January 28, 2019

Dear Friend of GATA and Gold:

Interviewed by Daniela Cambone for Kitco News at the recent Vancouver Resource Investment Conference, Jeffrey Christian of metals consultancy CPM Group vouched for the integrity of the gold reserve reporting of China’s government.

While it sometimes goes months and even years without reporting changes in its gold reserves, the People’s Bank of China is fully transparent about them, Christian said.

… 

 

This transparency may cheer the Chinese government’s millions of political prisoners.

Some years ago Christian described CPM Group as being a consultant to many major central banks. With her unfailing talent for staying miles away from any incisive question, Cambone declined to ask Christian if CPM Group has a business relationship with the People’s Bank of China that might be disturbed if he ever publicly questioned its candor.

The interview with Christian is headlined “What’s the Real Deal Behind China’s Gold Purchases?,” is six minutes long, and can be viewed at Kitco here:

https://www.kitco.com/news/video/show/VRIC-2019/2246/2019-01-23/Whats-th…

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

* * *





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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A politician in the UK government urges the Bank of England to hand the gold over to opposition leader Guaido.
(courtesy zerohedge)

Bank Of England Urged To Hand Over Venezuela’s Gold To Guaidó

Just hours after The Bank of England refused to hand over $1.2 billion of Venezuela’s gold from its custody vaults (stored there after the completion of a gold-swap transaction with Deutsche Bank) to President Maduro (after heavy lobbying from US officials), The Guardian reports that a UK foreign office minister is now urging the same Bank of England to transfer the bullion to the self-proclaimed interim leader Juan Guaidó.

In a statement to British MPs, Sir Alan Duncan said the decision was a matter for the Bank and its governor, Mark Carney, and not the government. But he added:

“It is they who have to make a decision on this, but no doubt when they do so they will take into account there are now a large number of countries across the world questioning the legitimacy of Nicolás Maduro and recognising that of Juan Guaidó.”

Guaidó has already written to Theresa May asking for the funds to be sent to him.

The former chair of the foreign affairs select committee Crispin Blunt said the current Venezuelan central bank president was not legitimate, since he had not been appointed by the country’s national assembly.

Blunt has sent letters to the foreign secretary, Jeremy Hunt, and to the chancellor, Philip Hammond, urging a decision.

Notably, the reason the BoE initially gave for its initial refusal to release was due to its insistence that standard measures to prevent money-laundering be taken – “including clarification of the Venezuelan government’s intentions for the gold.”

“There are concerns that Mr. Maduro may seize the gold, which is owned by the state, and sell it for personal gain,” the newspaper said.

Separately, as we reported previously an official told Reuters that the repatriation plan has been held up for nearly two months due to difficulty in obtaining insurance for the shipment, needed to move a large gold cargo:

“They are still trying to find insurance coverage, because the costs are high,” an official told Reuters.

All of which appears to have suddenly been swept under the carpet now Guaidó has been installed.

Duncan said Hunt would be discussing the next steps in the European Union’s efforts to support Guaidó in Bucharest on Thursday.

However, it’s not a done deal yet as  shadow foreign secretary, Emily Thornberry, cautioned against a rush to oust Maduro:

“Judging by its record in recent years, the Maduro government fits none of those descriptions, but I would also believe that it is a mistake in situations like this simply to think that changing the leader will automatically solve every problem, let alone the kind of US-led intervention being threatened by Donald Trump and [the US national security adviser] John Bolton.

Nevertheless, with much of the Western world now backing Guaidó in his coup, it seems the gold bullion will be winging its way to The Assembly’s coffers very soon.

end
GOLD TRADING/THIS MORNING

Gold Jumps To 8-Month Highs As Geopolitical Chaos Reigns

Gold extended gains to an eight-month high as fallout from geopolitical turmoil including US-China trade tensions, a WW3-inducing Venezuelan ‘coup’, and Brexit uncertainty has spurred demand for the safe-haven metal.

 

Spot gold is now at its highest since May 2018…

 

 

 

Your early TUESDAY 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 6.7353/

 

//OFFSHORE YUAN:  6.7571   /shanghai bourse CLOSED DOWN 2.72 PTS OR 0.10%

 

HANG SANG CLOSED DOWN 45.28 POINTS OR 0.16%

 

 

2. Nikkei closed UP 45.28  POINTS OR 0.16%

 

 

 

 

 

3. Europe stocks OPENED ALL GREEN

 

 

 

 

 

 

 

/USA dollar index RISES TO 95.76/Euro FALLS TO 1.1428

3b Japan 10 year bond yield: RISES TO. +.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.47/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 52.48 and Brent: 60.53

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.20%/Italian 10 yr bond yield DOWN to 2.65% /SPAIN 10 YR BOND YIELD UP TO 1.23%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.45: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 4.01

3k Gold at $1299.40 silver at:15.69   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 0/100 in roubles/dollar) 66.24

3m oil into the 52 dollar handle for WTI and 60 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 109.47 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 0.9936 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1356 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to +0.20%

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 2.74% early this morning. Thirty year rate at 3.07%

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

6.  TURKISH LIRA:  UP  TO 5.3141

 

Markets Mixed Ahead Of Barrage Of News As Gold Hits 6 Month High

In a session that has seen global markets drift around ahead of a barrage of key events and gold climb to a seven-month high…

… European stocks reversed modest early losses to trade 0.8% higher, with UK’s FTSE 100 rising 1.4% as cable fluctuated ahead of today’s “Plan B” Brexit vote, with S&P futures erasing early losses in Asia to trade flat, some 12 points off sessions low as markets opted for caution before three major macro events and a blizzard of big tech company earnings in the coming days.

Despite the upcoming action – a key Brexit vote in the UK , Wednesday’s Fed decision, Thursday’s conclusion of the latest Sino-U.S. trade talks and Friday’s payrolls – European and Asian stocks held up relatively well, however news that the U.S had leveled charges against China’s telecom giant Huawei days before the next round of trade talks between Washington and Beijing knocked sentiment.  That, however, was offset by promises of more economic stimulus from China, which had berated Washington on Monday for blocking the appointment of judges for its World Trade Organisation appeal against U.S. tariffs.

As SocGen’s Kit Juckes writes overnight, traders are puzzled by various market inconsistencies, with more questions about what’s NOT happening in markets than about what is going on, such as: “Why didn’t Mario Draghi’s admission of downside economic surprises weaken the euro? And why didn’t the end of the US government shutdown give Treasury yields a nudge higher?”

In short, markets are in limbo, waiting for new news and with the FOMC and the payroll data due later this week.

“Investors are very cautious with many uncertainties on U.S.-China trade talks and Brexit. Huawei is at the center of dispute, creating very noisy background for the trade talks,” said Margaret Yang, a market analyst at CMC Markets. “All these are making it more difficult for investors to judge the market’s direction. Money is fleeing into assets such as gold, seeking safety.”

Indeed, as noted above it was a mixed picture across global stock markets on Tuesday, with European shares climbing, U.S. futures trimming a drop and Asian equities slipping as investors juggled concerns about the fallout from America’s trade war with China against hopes for progress in this week’s talks offset by yesterday’s criminal charges against Huawei and formally seeking the extradition of its CFO. Personal goods and travel companies were among the biggest gainers in the Stoxx Europe 600 Index as most sectors turned higher following a directionless start.

Meanwhile in the US, Dow Jones, S&P 500 and Nasdaq futures all showed U.S. stocks were heading for a lackluster open especially after poor guidance by 3M and Pfizer, as focus turned to Apple’s earnings report. PG&E tumbled in pre-market trading after the U.S. utility sought bankruptcy protection with $52 billion in debt.

Markets will have more catalysts this week with over 100 of the S&P500 companies reporting results, including Amazon, Apple and Facebook. Overnight on Wall Street, the Dow and S&P 500 each closed down 0.8 percent and the Nasdaq was off more than 1 percent. The losses came after Caterpillar and Nvidia Corp joined a growing list of companies cautioning about the crippling effects of softening Chinese demand.

In Asia, shares were mixed, with losses for Australia and New Zealand, with their benchmark indices down 0.5 percent and 1.2 percent respectively. Japanese and Chinese stocks both recovered from early wobbles to finish in the green. Technology stocks underperformed after American prosecutors filed criminal charges against Huawei. Worryingly, earnings at China’s industrial firms  shrank in December, pointing to more troubles for the country’s vast manufacturing sector, which are already struggling with a decline in orders, job layoffs and factory closures.

China Foreign Ministry expressed serious concern regarding US charges on Huawei and its CFO, whilst strongly urging the US to halt unreasonable suppression of Chinese companies and asked US to withdraw arrest order for Huawei’s CFO. China Minister of Industry and Information Technology Miao said China will continue to lower taxes and fees for SMEs, while China will also significantly reduce the investment negative list.

As Bloomberg notes, after a robust start to the year for equities, investors are looking for reasons to chase the rally in a corporate earnings season that’s been mixed so far. Against the backdrop of U.S.-China stress and geopolitical tensions in Venezuela they also need to navigate the Federal Reserve rate decision, developments in the U.K.’s Brexit process and a potential slew of American economic data that was delayed by the government shutdown.

“Even though this has been a good start of the year,’’ investors now “want to be kind of defensive,’’ Ben Emons, managing director of global macro strategy at Medley Global Advisors, said on Bloomberg TV. “Earnings will not grow strongly, and we still deal with leverage in the corporate sector that has not been unwound in any way.’’

Most European government bond yields were little changed. Weaker economic data and unknowns like the trade feuds and Brexit have all boosted expectations that interest rates will stay low.  European yields little changed to 2bps higher across core and periphery, 10-year gilt yield 1bp higher, 10-year UST yield 1bp lower.

New debt deals from Greece, Belgium and Austria were also in the pipeline. The slide in rates has also encouraged governments to launch new bond deals. Even Angola, which has just taken IMF aid, said it was eyeing a bond sale.

The U.S.-Sino moves, as well as bets that the U.S. Fed will sound more cautious on Wednesday, kept the dollar near a two-week low and heightened the safe-haven appeal of the Japanese yen and the Swiss franc. The Bloomberg USD index also little changed within a tight range, with NZD leading G-10 gains and GBP lagging, although sterling off its worst session level ahead of key parliamentary Brexit votes after the London close.

Sterling held at $1.3166 and 86.88 pence to the euro before crucial votes later in the day aimed at breaking a deadlock in the UK parliament over Brexit. The pound has rallied 6 percent from Jan. 4 lows, but further gains may be limited unless lawmakers emerge with a big majority on the votes.

In commodities, WTI and Brent trade 1.1% and 1.3% higher respectively. West Texas crude edged higher as the U.S. slapped a de facto ban on oil from Venezuela. Emerging-market shares and their currencies were steady. Gold rose to highest level since June.

Expected data include Conference Board Consumer Confidence, while the government shutdown will delay some reports yet this week and next. Apple, Danaher, Harley-Davidson, Lockheed, Pfizer and Verizon are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures little changed at 2,640.75
  • STOXX Europe 600 up 0.6% to 356.32
  • MXAP down 0.2% to 154.33
  • MXAPJ down 0.3% to 503.19
  • Nikkei up 0.08% to 20,664.64
  • Topix up 0.1% to 1,557.09
  • Hang Seng Index down 0.2% to 27,531.68
  • Shanghai Composite down 0.1% to 2,594.25
  • Sensex down 0.3% to 35,538.29
  • Australia S&P/ASX 200 down 0.5% to 5,874.17
  • Kospi up 0.3% to 2,183.36
  • German 10Y yield rose 0.5 bps to 0.21%
  • Euro up 0.1% to $1.1441
  • Italian 10Y yield rose 1.5 bps to 2.308%
  • Spanish 10Y yield rose 0.9 bps to 1.229%
  • Brent futures up 1% to $60.55/bbl
  • Gold spot up 0.4% to $1,308.19
  • U.S. Dollar Index down 0.1% to 95.67

Top Overnight News

  • PG&E Corp., California’s biggest power company, filed for Chapter 11 bankruptcy in Northern California bankruptcy court as investigators probe whether its equipment ignited the deadliest fire in state history
  • PM Theresa May is backing a plan to ditch the most contentious part of her Brexit deal as she scrambles for a compromise all sides can support, with time running out before the U.K. leaves the European Union. Some EU states are said to weigh conditions for Brexit extension
  • The Trump administration will press China to prove it can keep promises in talks this week aimed at ending the trade war, Treasury Secretary Steven Mnuchin said. China will offer to buy more U.S farm products, according to WSJ
  • The U.S. Treasury Department indicated that the government’s borrowing needs are rising faster than previous estimates as the Trump administration finances a widening budget deficit
  • Australian firms suffered the worst slump in conditions since the 2008 global financial crisis as evidence mounts that the economy slowed in the latter part of last year
  • U.S. prosecutors filed criminal charges against Huawei Technologies Co., China’s largest technology company, alleging it stole trade secrets from an American rival and committed bank fraud by violating sanctions against doing business with Iran
  • Oil held most of its biggest loss in a month as renewed concern over slowing global growth largely outweighed U.S. sanctions against Venezuela’s state oil company
  • Acting Attorney General Matthew Whitaker said that Special Counsel Robert Mueller’s Russia investigation is “close to being completed”
  • Wall Street has become obsessed with the Federal Reserve’s balance-sheet runoff, as investors debate why it’s suddenly roiling markets more than a year after it began
  • Greece will on Tuesday sell bonds for the first time since the end of its international bailout, testing investor interest in the country’s newfound economic independence

Asian equity markets traded lower for most the session as the region followed suit to the negativity on Wall St where sentiment was dampened by corporate updates in which industrial bellwether Caterpillar missed on earnings and Nvidia reduced its guidance with both citing a slowdown in China, while the DoJ announcement of charges against Huawei raised concerns regarding the potential impact this could have on US-China relations. ASX 200 (-0.5%) was negative on return from the extended weekend with the index dragged lower by underperformance in healthcare as Resmed shares tumbled on poor sales figures and with energy names pressured by the recent 3% drop in oil prices, while price action in the Nikkei 225 (Unch.) was at the whim of the JPY-risk dynamic. Elsewhere, Hang Seng (-0.2%) and Shanghai Comp. (-0.1%) weakened after the US announced charges against Huawei including intellectual property theft, as well as bank and wire fraud, although markets gradually rebounded off lows as focus shifted to the upcoming trade discussions. Finally, 10yr JGBs were flat as prices failed to benefit from the weakness across stocks, while a mixed 40yr JGB auction also failed to provide a catalyst for direction.

Top Asian News

  • China Life Says Profit May Fall Up to 70% Amid Stock Market Rout
  • India Media Giant Rocked by Claims of Ties With Fraud Probe
  • Asia’s $1.6 Trillion Stock Rally Is Looking Increasingly Fragile
  • Mothers Futures Hit Circuit Breaker After SanBio Trial Fails

Major European equities are modestly in the green [Euro Stoxx 50 +0.5%], outperformance is seen in the FTSE 100 (+1.4%) where index heavyweights British American Tobacco (+4.6%) and Unilever (+1.7%) are in the green after a broker move and purchase of New York based ‘The Laundress’ products business respectively. Sectors are mixed, with outperformance seen in consumer staples, largely due to the aforementioned British American Tobacco and Unilever. Other notable movers include Royal Mail (-10.5%) who are at the bottom of the Stoxx 600 following their earnings, whilst Sartorius (+16.0%) are at the top of the index following a double digit increase to their 2018 sales revenue and earnings. Separately, SAP (-2.0%) are down in spite of the Co.raising their 2020 non-IFRS revenue outlook and confirming their non-IFRS profit outlook.

Top European News

  • Swedbank Drags Down Swedish Banks Amid Fee-Income Concerns
  • Norwegian Air Falls Most on Record After Emergency Stock Sale
  • Chips Lead Tech Slide on Report TSMC Suppliers to Cut Prices
  • OMV Says Romanian Strife Casts Doubt on Black Sea Development

In FX, NZD/AUD/EUR – The Kiwi is back in pole position and just outperforming G10 peers like the Euro that is also benefiting from some cross-flows, and a generally soft US Dollar. Nzd/Usd is back up around 0.6850, with some support emanating from NZ trade data overnight alongside ongoing Aud/Nzd selling as the pair delves deeper below 1.0500 (to circa 1.0450 at one stage). Note, Aud/Usd was undermined by a sharp deterioration in NAB business conditions, but subsequently derived some traction to pare losses from 0.7140 to 0.7175 on the back of broadly upbeat comments from RBA’s Harper who reiterated guidance for the next policy move to be a hike based on strength in the Aussie jobs market and the country’s healthy budget situation. Meanwhile, Eur/Usd has inched a bit further above 1.1400 to test its 100 DMA (1.1446) having cleared a 50% Fib (1.1430), but not quite able to breach 1.1450 and challenge the next upside chart resistance at 1.1463 (61.8% Fib). Note also, the single currency may encounter option-related offers ahead of 1 bn expiries at 1.1465-75.

  • CAD/GBP/CHF/JPY – All narrowly mixed vs the Greenback, as the Loonie draws some solace from relative calm in the  oil/commodity complex and recovers towards 1.3250, while Cable is pivoting 1.3150 and awaiting the outcome of UK Parliament’s vote on Brexit Plan B alongside amendments, but the Pound still trading weaker vs the Euro on customary month end factors (Eur/Gbp RHS demand lifting the cross over 0.8700 earlier). Usd/Chf and Usd/Jpy are just off Monday’s lows within narrow ranges of 0.9910-25 and 109.15- 45 respectively, with the Franc not really reacting to Swiss trade data even though the surplus shrank substantially.
  • NOK/SEK – Contrasting fortunes for the Scandi Crowns as the Nok also derives comfort from a partial recovery in crude prices vs the Sek acknowledging more Riksbank commentary highlighting no rush to hike rates again (vs the Norges Bank on course to continue its tightening cycle in March). Eur/Nok sub-9.7150, Eur/Sek 10.3500+.

In commodities, Brent (+1.0%) and WTI (+0.9%) prices are higher, and around the USD 60/bbl and USD 52/bbl level respectively, after somewhat pairing back the sessions initial losses; as the risk sentiment has improved from yesterday. US have imposed sanctions on Venezuelan state-owned oil firm PDVSA, aiming to significantly reduce their crude exports to the US; additionally, trying to pressure President Maduro into stepping down. Elsewhere, Nord Stream 2, a new gas export pipeline running from Russia to Europe, continues in discussions to raise EUR 6bln in financing. Separately, Total have announced a significant new discovery in the North Sea, which has an estimated 250mln barrels of oil equivalent of recoverable resources. Gold (+0.3%) is in the green, benefitting from dollar weakness amidst an uneventful overnight session; with the yellow metal towards its session high of USD 1309.4/oz. Following the lifting of sanctions against Rusal, the LME has begun accepting aluminium deliveries from the Co. into their warehouses

US Event Calendar

  • 9am: S&P CoreLogic CS 20-City YoY NSA, est. 4.89%, prior 5.03%; 20-City MoM SA, est. 0.4%, prior 0.41%
  • 10am: Conf. Board Consumer Confidence, est. 124, prior 128.1; Present Situation, prior 171.6; Expectations, prior 99.1

DB’s Jim Reid concludes the overnight wrap

A long opening para today but as the reader you have the right to skip! Anyway, of all the stories I’ve told in my first para over the years the one that I got most mail back about and the one I still get reminded of most was the one where I woke up one morning to find 40 freshly planted trees had been stolen overnight from our garden. I was apoplectic with rage. 5 years on I’m still not sure I’ve gotten over it. Well today I report another theft, this time of a more baffling variety. Last week I was listening to Spotify and kept on getting booted out as someone was apparently listening elsewhere. As I was travelling I put this down to my wife. However when I did get in, new playlists and albums kept on being added that indicated that my wife was going through an experimental stage. Albums by artists called Hoshi, Lil Peep, Maes, Ozel and Polock appeared – most of which seemed to sing in French and none of which I’d ever heard of. Anyway I meant to grill my wife about it wondering whether she was trying to impress a younger (French) man but I forgot about it.

Last night over dinner I got booted out of the account again and I asked her if she’d added all these new albums. She looked at me with deep confusion and as she was in the room with me I realised it couldn’t be her. After much soul searching and more random music being added to my account while I was trying to play some dinner music myself, the only explanation I could find is that someone had stolen my account. I changed my password and all was fine again. It’s quite creepy knowing someone is on your music account though. Anyway I’m sure I had some revenge on the thief as over the weekend my daughter wanted a 1970s children’s TV theme song called “Jamie and the magic torch” on about 20 times in a row. She loves it. We introduced her to this as we call one of our twins Jamie (as my family still call me to this day – I reinvented myself as Jim when I went to a new school 34 years ago). This was the song everyone sung at me when I was 5. There will be a small group of readers who will remember it well. Anyway I can now picture this very cool young French man with big headphones in an arty cafe in Paris thinking he was very clever stealing my account but suddenly being bombarded with 40 year old U.K. children TV soundtracks. However where my trees are 5-plus years later still haunts me.

Like Spotify, you can always skip the bits of my research you don’t like and if you’re a bull you may want to do a little bit of skipping today. Monday certainly painted a downcast start to the week ahead of a busy calendar of catalysts: today’s latest Brexit shenanigans, tomorrow’s Federal Reserve meeting conclusion, US/China trade talks starting on the same day, Q4 Euro GDP on Thursday, the US jobs report on Friday, and plenty of potential tape-bombs from the equity world as earnings season reaches a peak. Indeed earnings were the main culprit yesterday as US and European equity markets were all down. The S&P 500 and DOW retreated -0.79% and -0.84%, respectively, as earnings from macro bellwether Caterpillar and a pre-announcement from NVIDIA both disappointed (details below). The S&P 500 machinery index shed -3.33% and the NASDAQ fell -1.11%, as the poor company-level earnings were extrapolated to their parent sectors. Ten-year treasury yields fell -1.5bps while US HY credit widened +5bps.

Earlier, European stocks had opened lower as well, extending their falls throughout the day, although by the close they had stabilised somewhat, with the STOXX 600 ending -0.97%. Energy stocks led the falls in Europe (-1.86%), as Brent Crude dipped below $60 a barrel for the first time in two weeks before closing at $60.03. Fixed income in Europe struggled to rally though, with 10y Bunds +1.2bp, OATs +1.0bps and BTPs +1.6bps.

As mentioned, the negative tone was set by poor company earnings, with Caterpillar reporting adjusted EPS of $2.55 (vs $2.99 estimated) a 14.6% miss and the biggest margin miss since 2008. The company also said their outlook “assumes a modest sales increase”, below previous expectations. Caterpillar shares fell -9.13%, and the company said lower demand from China was partly responsible for their reduced estimates, with the company expecting sales from the country to be roughly flat in 2019 year-on-year. Nvidia later added to the negative picture, with its shares opening over 18% lower after the company cut its Q4 revenue forecast from $2.7bn to $2.2bn, before paring back losses to close down -13.82%. Nvidia also cited “deteriorating macroeconomic conditions, particularly in China” as a factor affecting its sales, and the company will be releasing Q4 earnings on 14 February. This comes after data last week showed that the Chinese economy grew at its slowest annual rate in 2018 since 1990. Note that the key earnings release today is Apple which is already -33.05% off its 2018 peak, after it warned on its outlook late last year. So earnings and the outlook here will be a key contributor to the macro outlook.

After US markets closed yesterday, the Department of Justice announced two separate indictments covering 23 criminal accusations against Huawei and its executives. The US is formally asking Canada to extradite the company’s CFO Meng Wanzhou to face the charges. The move could complicate trade talks between the US and China which are set to begin later this week, though the offshore renminbi traded flat after the news, perhaps signaling that the news has already been discounted.

Staying in the region, equity markets have fallen in Asia this morning, although are paring back losses, with the Nikkei (-0.17%), up from its lows of the session where it was down over 1%. The Hang Seng (-0.53%), the Shanghai Composite (-0.62%) and the KOSPI (-0.17%) are also lower. Meanwhile oil has steadied since its declines yesterday, with Brent Crude trading at $60.11 a barrel.

Before we recap more of the last 24 hours let’s move to the exhausting topic of covering Brexit. Today UK MPs will vote on a variety of different amendments on where to go next. Although the specific amendments to be debated will be decided by the Speaker of the House of Commons, two of particular interest are the one by Sir Graham Brady (who chairs the 1922 committee of Conservative backbench MPs) and the cross-party one offered by the Labour MP Yvette Cooper and the Tory MP Nick Boles. The Brady amendment calls for the backstop “to be replaced with alternative arrangements to avoid a hard border”. Supporters of the amendment argue that if a majority of MPs voted in favour, it would demonstrate that changes to the backstop would be sufficient to get the withdrawal agreement through Parliament, and would encourage the EU to modify its position. However, the Irish government have remained uncompromising on the issue, with Simon Coveney, the Irish Deputy Prime Minister, telling The Andrew Marr TV Show on Sunday that “the backstop … is part of a balanced package that isn’t going to change”.

The other amendment of interest put forward is the Cooper-Boles amendment, which is another attempt to avoid a no-deal Brexit. This would require that parliamentary time be made for MPs to debate new legislation, which would require there to be an extension of the Article 50 negotiations if the House of Commons has not approved a deal by February 26. DB’s Oliver Harvey published a preview on Friday of today’s vote (link here ). UK equities fell yesterday along with the rest of Europe, with the FTSE 100 (-0.91%) falling for the fifth consecutive day, while sterling fell back somewhat against the dollar to trade -0.26% weaker at 1.3162.

Ahead of the votes today, leading Brexiter Jacob Rees-Mogg last night said that the influential European Research Group of hard Brexit supporters within the Tory party will not vote in favour of any amendments at this stage. Simultaneously, PM May has endorsed the Brady-backed motion and the government will reportedly whip the party into voting for the amendment. The problem for the government is that without either the ERG or support from other parties, none of their amendments will get a majority. Labour has not yet tipped its hand in either direction, though the party leadership is reportedly leaning toward supporting the Cooper-Boles motion that could potentially lead to a delay to Article 50. Anyway the votes will begin at 7pm this evening.

Before turning back to yesterday’s action, note that DB’s European equity strategist Sebastian Raedler haslowered his tactical outlook for European equities from positive to neutral, following the 8% rally since late December, as the market has gone from being almost 10% too low on his model (based on Euro area PMIs, the EUR and Euro area real bond yields) to being in line with fair-value. He expects Euro area PMI momentum (i.e. the six- month change in PMIs and a key driver of European equities) to improve from the current seven-year low of -4.5 points to +1.5 points by mid-year. But even this mild PMI improvement implies little further upside for European equities over the coming months, leading him to turn more cautious on the market.

Back to yesterday and staying in Europe, ECB President Draghi appeared before the Economic and Monetary Affairs Committee at the European Parliament yesterday, following last week’s ECB meeting where the Governing Council acknowledged that the risks had “moved to the downside”. The euro rose against the dollar as Draghi spoke, reaching its highest level in nearly two weeks and ultimately closing up +0.19%. Draghi said that if the outlook worsened further, the ECB could still use other tools to combat this, but said that “at this point in time, we don’t see such contingency as likely to materialise, certainly this year”.

Across the Atlantic, the US Congressional Budget Office published its latest Budget and Economic Outlook, including forecasts for the next 10 years. The report makes for stark reading for US policymakers, but at least the outlook is somewhat improved relative to last year’s edition. For the 2018-2028 period, deficits are now forecast to average -4.3% of GDP per year, down from the previous forecast of -4.8% per year. That level of deficit spending has only been hit a handful of times over the last 50 years, and always amid a recession. So to have it every year is incredible. The improvement in forecasts though is driven by lower projections for federal outlays as a percent of GDP, partially helped by lower interest rate projections. Instead of a peak in 10-year treasury yields around 4.1%, the CBO now pencils in 3.7%. Revenues are forecast to be lower as well, with slightly shallower economic growth projections from previously, but this dynamic is outweighed by the outlay side. Overall, these numbers should still worry those who look beyond the immediate path of markets even if there is an interest rate improvement from last year. As a market aside, the projections include around $245bn in reduced deficits for 2020-2021, which could cause the US Treasury to adjust its future issuance plans if the figures are borne out.

Yesterday saw very few data releases, although the Dallas Fed’s Manufacturing index for January came in above estimates at 1.0 (vs -2.7 expected), marking a rebound from the previous month’s two-and-a-half year low. In Europe, M3 money supply growth rose to +4.1% yoy from +3.8%, though M1 growth slowed to 6.6% from 6.7%. The credit impulse turned slightly negative as well.

Turning to the day ahead and as well as the latest Brexit votes in the UK Parliament, we have earnings releases for Apple, Pfizer and SAP. In terms of data, we have French consumer confidence figures for January, Italian PPI inflation for December, and in the US we also have the Conference Board consumer confidence reading and preliminary wholesale inventories for December.

 

 

3. ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.72 PTS OR 0.10% //Hang Sang CLOSED DOWN 45.64 POINTS OR 0.08% /The Nikkei closed UP 15.64  PTS OR 0.08%/ Australia’s all ordinaires CLOSED DOWN .53%

/Chinese yuan (ONSHORE) closed UP  at 6.7353 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 52.48 dollars per barrel for WTI and 60.53 for Brent. Stocks in Europe OPENED GREEN 

//ONSHORE YUAN CLOSED UP AT 6.7353AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.7571: / 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 WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

 

 

 

i)North Korea//USA/Sweden

 

end

3 b JAPAN AFFAIRS

 

3 C CHINA

i) CHINA/HUAWEI

Yesterday,we got word that Huawei would be charged with financial fraud and last night it became official.  The USA is now seeking the extradition of Meng

(courtesy zerohedge)

US Charges Huawei With Financial Fraud, Formally Seeks Extradition Of CFO To US

As previewed earlier, after the close U.S. prosecutors filed criminal charges against Huawei, China’s largest smartphone maker, alleging it stole trade secrets from an American rival and committed bank fraud by violating sanctions against doing business with Iran. In a 13-count indictment unsealed in Brooklyn on Monday afternoon, the government alleged Huawei, two affiliated companies and its chief financial officer engaged in fraud and conspiracy in connection with deals in Iran.

A separate 10-count indictment in Seattle accused the company of stealing trade secrets from T-Mobile USA Incand offering bonuses to employees who succeeded in getting technology from rivals.

The criminal case against Huawei first emerged in 2014, when T-Mobile USA sued the Chinese telecom giant, and three years later, a federal jury in Seattle found Huawei liable for both breach of contract and misappropriation of trade secrets. A Bloomberg source said that T-Mobile’s claims regarding the theft of its technology caught the attention of federal authorities in the Western District of Washington.

In what may be the first instance of robotic espionage, T-Mobile said Huawei sent its engineers to T-Mobile’s Bellevue, Washington, facility to see a robot, called “Tappy,” which simulates smartphone use. T-Mobile said in its lawsuit that Huawei was able to use stolen parts from the robot to “develop, improve and troubleshoot its own robot.”

In the indictment, the U.S. explained in detail how Huawei’s engineer allegedly stole information related to “Tappy” – two employees of Huawei USA improperly abused their badges to let the engineer, identified as F.W. in the indictment, into the T-Mobile lab where Tappy was located. A T-Mobile employee discovered F.W. there without permission and told him to leave, according to the indictment.

But perhaps more importantly, the DOJ formally announced it was seeking the extradition of Huawei CFO Meng Wanzhou, the daughter of the company’s founder, who was arrested in Vancouver on Dec. 1 on allegations that she committed fraud to sidestep sanctions against Iran. She has since become a flash-point in trade tensions between the U.S. and China; her release by the US and Canada was expected by some commentators who were confident the US would send a signal of goodwill to the US; instead Trump appears to be escalating the crackdown against Chinese technological theft.

Meng remains free in Vancouver, staying at her $4.2 million mansion with GPS monitoring, after posting bail of C$10 million ($7.5 million) as she fights extradition to the U.S. to face criminal charges.

The U.S., which had requested Canadian authorities arrest Meng, had to submit a formal extradition request by Jan. 30, which it did today. Canada’s justice minister now has up to 30 days to assess it. If she issues an “authority to proceed,” that means Canada is officially moving to extradition hearings. If so, they would likely be scheduled months later, even as relations between the US and China implode.

* * *

Needless to say, the news of fresh criminal charges against Huawei – and the extradition demand of CFO Meng – will add to the doubts of any deal between the US and China which are already hovering over Asian markets for Tuesday’s open, and increasing fears ahead of this week’s U.S.-Sino trade talks that there will be no favorable outcome. And, as Bloomberg’s Garfield Reyonds adds, “with Mnuchin and Kudlow out just now saying enforcement will be key in those talks, investors would be wise to temper any optimism on the potential results of the negotiations.”

If there is progress, it will be gradual, with a range of issues needing to be nailed down in subsequent meetings. As for comments from the U.S. that the two issues are separate, China’s foreign minister made it clear how important the telco giant is to the mainland government with his spirited comments in Huawei’s defense last week. Indeed, it is becoming harder to see what potential outcome from this week’s gatherings could be sufficient to set off a sustained equities rally.

Meanwhile, the China-driven weakness in earnings reports, as per Caterpillar and Nvidia, will keep coming and any triumphal announcements by Trump et al, that the trade feud has been resolved would be vulnerable to the same sort of disappointment that dogged Korean assets after the Trump-Kim summit once investors realized that little had actually come from the dialogue, the Bloomberg analyst concludes.

The indictment of Huawei for theft of trade secrets is below:

https://www.scribd.com/embeds/398424119/content?start_page=1&view_mode=scroll&show_recommendations=false&access_key=key-5AeOCtjalhEiP2Ay9es7

END
Chinese tech stocks plunge on word of the criminal charges against Huawei corporation.
(courtesy zerohedge)

Chinese Tech Stocks Plunge After Huawei Headlines, Nasdaq Slides

Following the US prosecutors decision to charge Huawei with financial fraudChinese tech stocks are tumbling on concerns the trade war will hit corporate profits.

Bloomberg notes that shares of Huawei suppliers are also impacted after the U.S. accused Huawei of stealing trade secrets and defrauding banks.

  • In Taipei, TSMC -3.1%, Largan -1.5%, MediaTek -1.4%
  • In Hong Kong, ZTE Corp. -1%; China Telecom -1.4%; China Unicom -1.3%; Sunny Optical -4.1%; Q Technology -2.3%; Chinasoft International -4.8%
  • In China, Zhejiang Crystal-Optech -3.6%; O-film Tech -6.5%; Shenzhen Everwin Precision -2.6%; Sunwoda Electronic -3%; Shenzhen Sunyes Electronic Manufacturing -1.5%; Shenzhen Sunway Communication -3.5%; Fiberhome Telecom Technologies -2%.

US tech companies are also under further pressure overnight as Nasdaq futures slide to the day-session lows…

END
Funny!  Meng’s lawyer accuses the USA of hostage taking after the Dept of Justice indictment
(courtesy zerohedge)

Huawei CFO’s Lawyer Accuses US Of “Hostage Taking” After DOJ Indictment

With the US reportedly preparing to formally request the extradition of Huawei CFO Meng Wanzhou following a series of indictments against Meng and the telecoms giant that her father founded, her lawyers are stepping up their rhetoric, accusing the US of “hostage-taking” and using Meng as a political “pawn”.

Huawei

According to Reuters, Meng’s lawyer said Tuesday that the Huawei’s CFO “should not be a hostage” to Sino-US relations. The remarks come ahead of trade talks between President Trump and a coterie of his senior trade officials, with Chinese Vice Premier Liu He leading a delegation on the Chinese side.

Her lawyer Reid Weingarten, partner at Steptoe & Johnson, pointed to “complex” Sino-U.S. relations. Our client, Sabrina Meng, should not be a pawn or a hostage in this relationship. Ms. Meng is an ethical and honorable businesswoman who has never spent a second of her life plotting to violate any U.S. law, including the Iranian sanctions.” Huawei said it had sought to discuss the charges with U.S. authorities “but the request was rejected without explanation.” It said it “denies that it or its subsidiary or affiliate have committed any of the asserted violations” and “is not aware of any wrongdoing by Ms. Meng.” China’s foreign ministry urged the United States drop the arrest warrant and end “unreasonable suppression” of Chinese companies. Spokesman Geng Shuang also said China had issued stern representations to both Canada and the United States after the U.S. formally issued its extradition request for Meng.

Now that the charges have been filed, Canadian authorities have 30 days to decide whether they will proceed with the request and refer the case to the Supreme Court in British Columbia, where a hearing will be held. The whole process could take weeks or months.

Despite US officials’ insistence that the charges against Huawei are “wholly separate” and won’t impact the trade talks, Reuters reported that it’s almost inevitable that the US’s efforts against Huawei will factor into Beijing’s calculus. And given President Trump’s claim that he would be willing to intervene in the case if it means striking a trade deal with China, Beijing may expect that he might make good on this promise.

Acting Attorney General Matthew Whitaker said on Monday that the alleged criminal activity at Huawei “goes back at least 10 years and goes all the way to the top of the company.” Meng has been accused of misleading banks about the relationship between Huawei and a subsidiary that sought to sell goods in Iran.

end
The big divide still remains as China fights USA demands for deep structural changes ahead of this week’s trade talks
(courtesy zerohedge)

“Big Divides Remain”: China To Fight US Demands For “Deep Structural Changes” In This Week’s Trade Talks

With trade talks between China and the US set to resume on January 30, when a Chinese delegation of led by Vice Premier Liu He and also includes Yi Gang, governor of China’s central bank, the early warning by Commerce Secretary Wilbur Ross that the two sides remain “miles and miles” apart remains spot on because according to a WSJ update “early indications are that the two sides remain sharply divided, suggesting a hard slog ahead for a deal to be cut before a March 1 deadline.”

While China is prepared to make modest, and largely cosmetic concessions, offering a big increase in purchases of U.S. farm products and energy, along with modest reforms in industrial policies, the WSJ reports that Beijing “will fight U.S. demands for deep structural changes in the Chinese economy” including the elimination of subsidies to favored industries, as well as regulatory help and other aid to Chinese companies, especially state-owned enterprises.

In response to US demands that Beijing has not done enough, Chinese officials say they have already taken concrete steps toward reform, citing more liberal rules for foreign competitors in sectors such as autos and financial services, and tougher enforcement of intellectual property, which however the US side finds insufficient. As a result, a draft negotiating document laying out terms has yet to be assembled, WSJ sources report.

Meanwhile, even those which China has agreed to – such as allowing S&P to offer credit rating services on the mainland, wouldn’t take effect immediately, as there are other bureaucratic hurdles to clear. And eliminating requirements that U.S. firms form joint ventures—a key demand for Washington, which is leery about Chinese firms and officials pressuring U.S. partners to transfer technology—is likely to stretch out over years, said people quoted by the WSJ.

Despite skepticism, markets have already priced in a favorable outcome to the talks, thanks to Treasury Secretary Steven Mnuchin who said on Monday that he expects “significant progress” to be made in the coming days. And yet, just days before the talks resumed, any optimistic mood will be overshadowed by the administration’s actions on Monday against China’s Huawei Technologies when federal prosecutors accused China’s telecom giant of violating U.S. sanctions on Iran and of stealing trade secrets from a U.S. business partner, and made public charges against Huawei Chief Financial Officer Meng Wanzhou, who is fighting extradition to the U.S.

This week’s talks, which will take place in the Eisenhower Executive Office Building next to the White House, are aimed at further delaying or canceling Trump’s plans to raise tariffs on $200 billion of Chinese goods to 25%, up from the 10% levies imposed last year. Mr. Liu is scheduled to meet with President Trump at the end of the talks, Mnuchin said.

As noted above, the Chinese delegation also includes PBOC head Yi Gang who spent many years teaching at Indiana University, while the US side will offer a bevy of cabinet officials, including U.S. Trade Representative Robert Lighthizer, White House trade adviser Peter Navarro and Treasury Secretary Steven Mnuchin.

Despite a nebulous picture for the outcome of this week’s talks, “markets have generally come to the view that tariffs won’t ratchet up and there will be some resolution down the line,” said Seth Carpenter, UBS’s chief U.S. economist. “If we go in the opposite direction, it will have a real impact on the market.”

Already China’s slowing economy is sending shockwaves around the globe, with first Apple, then Caterpillar and Nvidia all complaining about a sharp drop in Chinese demand in recent months, with many claiming that tariffs are the key culprit for the slowing economy.

Nonetheless, perhaps in order to preserve some leverage, U.S. officials said Mr. Trump is prepared to raise tariffs and will rely for advice on Mr. Lighthizer, who believes such measures are necessary to get China to change. Unlike Mnuchin, who has urged to scrap tariffs as soon as possible, Lighthizer has argued in favor of keeping the 10% tariffs in place at least until China has proved that it has lived up to its promises even if the two sides reach a trade deal this week. Lighthizer regularly brings up the importance of enforcement in meetings of administration trade officials, according to National Economic Council Director Larry Kudlow.

China, meanwhile, is urging to scrap all tariffs for the simple reason that the constant threat of new or more tariffs makes economic reform politically risky for Chinese officials, while further threatening to slow down Chinese growth. Should officials make a concession to the U.S., such as handing U.S. firms licenses, they could be criticized within the Communist Party for being soft on the U.S., especially if tariffs aren’t removed in exchange.

Yet in addition to facing pushback from Trump’s trade hawks, Beijing has found that while in the past it could count on U.S. business to back its demands, that support has waned as big companies complain of threats to require them to transfer technology to Chinese partners. Those companies are also trying to get along with a protectionist U.S. administration.

“From our point of view, the tariffs need to go, but realistically the administration doesn’t agree with us,” said Erin Ennis, senior vice president of the U.S.-China Business Council, a trade association of large U.S. firms. “As a consequence, the best scenario is to come up with a plan of action that includes a way to have measurable, commercially meaningful outcomes that are tied to removal of the tariffs.”

How either side will be able to spin that as the favorable outcome from this week’s talks, one which the market has already priced in, remains unclear.

end

 

4.EUROPEAN AFFAIRS

UKI/

The pound jumps as Theresa May asks for a mandate to renegotiate with the EU

(courtesy zerohedge)

Pound Jumps As Theresa May Asks For Mandate To Renegotiate With EU

Update: In another positive sign for the pound, DUP Deputy Leader Nigel Dodds said the party “welcomes the fact that May says she will reopen the withdrawal agreement.”

Meanwhile, here’s a quick guide to Tuesday’s Brexit deal courtesy of BBC.

Brexit

* * *

The pound surged on Tuesday morning, sending it close to $1.32, following reports that Prime Minister Theresa May is expected to throw her support behind the Malthouse plan, a sign that May is finally willing to do whatever it takes to win over the support of the DUP after the party was reluctant to back her plan to support the Brady Amendment, which would have called for replacing the backstop with an “alternative arrangement.”

GBP

In a statement Tuesday morning, May said Parliament must unite behind one of the amendments to send a massage to the EU about “what we want on Brexit.” “Today we have the chance to show the EU what it takes for a deal,” as May re-commits to seeking a “legally binding change” to the deal.

“I want to go back to Brussels with the clearest possible mandate to secure a deal that this House can support,”  May said.

May promised MPs a meaningful vote on a revised deal as soon as possible. If there isn’t any progress, then she will call for another amendable motion vote on Feb. 14.

“Clearest possible message to Brussels” is rapidly emerging as May’s preferred catchphrase in this statement.

Here’s the statement on the DUP announcing its support for the Malthouse plan.

Harry Yorke

@HarryYorke1

DUP officially endorses the Malthouse plan.

Arlene Foster says: “The DUP has given its endorsement to the plan. We believe it can unify a number of strands in the Brexit debate including the views of remainers and leavers.”

Harry Yorke

@HarryYorke1

Full statement from Arlene Foster pic.twitter.com/jhbCAC7buG

View image on Twitter

The Malthouse plan, proposed by Tory Kit Malthouse, calls for renegotiation of the backstop, plus a Brexit-transition extension and a paid-for “standstill” period if backstop negotiations fail

Meanwhile, the Cooper amendment, which calls for a delayed Brexit, has been selected for a vote, along with a handful of other amendments.

So basically, May is hoping that she can win a majority of votes for either the Malthouse or Brady amendment, in order to show the EU that this is what her MPs would accept in an attempt to force the EU27 to come to the table. Meanwhile, she took a few moments on Tuesday to once again denounce attempts to delay Brexit Day.

May says proposals from her colleague Dominic Grieve and from Labour’s Yvette Cooper’s are “deeply misguided” because they delay decision-making. Supporting the Brady amendment, MPs can give her a mandate to go back to Brussels, May tells them.

May insisted Tuesday that there is “willingness on the EU side to agree to a deal”. But Pete Wishart, an MP with the Scottish National Party, asked a question that is undoubtedly on the mind of many MPs: What happens when the EU says ‘no’ to May once again?

end
THEN!! BANG!!
5 amendments have been rejected but the Spelman one was adopted. No word of the Malthouse amendment.  The pound tumbles.

Pound Tumbles As MPs Reject 2 Amendments To Delay Brexit

Update: The Spelman amendment has been accepted 318-310 – an eight vote margin. The amendment (which is non-binding) calls for adding language to the end of May’s withdrawal agreement stating that Parliament rejects leaving the EU without a withdrawal deal in place.

We’re now waiting for one last vote – on the government-backed Brady amendment. That will be an important vote, given reports that members of the ERG have reluctantly agreed to back the amendment.

* * *

The pound sunk Tuesday afternoon as MPs voted down two amendments, proposed by Labour MPs Yvette Cooper and Rachel Reeves, respectively, to raise the possibility of delaying Brexit.

Brexittwo

The Cooper amendment was one of a series of amendments that had been voted down on Tuesday. Some 139 lawmakers had put their names to the amendment, including 11 Tories, prompting speculation that the amendment would have a chance of passing. Reeves’ amendment would have called for a delay of Brexit Day if no deal had been passed by Feb. 26.

Here’s a rundown of the seven amendments being voted on Tuesday, and the results so far.

  • Corbyn: Various options including customs union No
  • Scottish/Welsh nationalists: Delay Brexit No
  • Grieve: Give Parliament control of process No
  • Cooper: Debate bill on extending Article 50 No
  • Reeves: Extend Article 50 if no deal by Feb. 26 No
  • Spelman: Avoid no-deal
  • Brady: Ditch Irish backstop for alternatives

And it’s worth remembering that this might not be the end of the Cooper amendment. Conservative backers have said that if the amendment fails, they might try again.

Steven Swinford

@Steven_Swinford

Worth remembering it’s not the end for the Cooper amendment.

Expect it to be brought back to the Commons in two weeks time ahead of the meaningful vote.

But even if it succeeds second time round, it will face an uphill struggle to get through Parliament in time for Brexit

Labour had been pinning its hopes of defying May on these amendments, and as BBG noted, there are “a lot of glum faces” in the Labour benches.

end

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6. GLOBAL ISSUES

Even those who hate Trump, you must admit, that he did good on this one:  he scored a major victory as he caused delinquent NATO members to boost contributions by 100 billion dollars

(courtesy zerohedge)

Trump Scores Major Victory As “Delinquent” NATO Members Boost Contributions By $100 Billion

NATO states have agreed to increase their defense spending by $100 billion over two years after President Trump went on a fiery tirade last July – calling on “delinquent” countries to boost their contributions by 2% to 4% of GDP. According to NATO Secretary General Jens Stoltenberg, the alliance heard Trump’s call “loud and clear” and that member nations are “stepping up,” according to the Telegraph.

In conciliatory comments apparently designed to smooth over repeated public criticism of other alliance members by the US leader, Mr Stoltenberg said member states had agreed to add $100 billion to defence budgets over the next two years.

Mr Trump has repeatedly complained that other members of Nato do not meet their spending commitments, including  a  blistering tirade at the NATO summit in Brussels  in July in which called other member governments “delinquent.” –Telegraph

Donald J. Trump

@realDonaldTrump

What good is NATO if Germany is paying Russia billions of dollars for gas and energy? Why are there only 5 out of 29 countries that have met their commitment? The U.S. is paying for Europe’s protection, then loses billions on Trade. Must pay 2% of GDP IMMEDIATELY, not by 2025.

“President Trump has been very clear. He is committed to NATO… but at the same time he has clearly stated that NATO allies need to invest more,” said Stoltenberg. “So we see some real money and real results, and we see that a clear message from President Trump is having an impact. NATO allies have heard the president loud and clear. NATO allies are stepping up.”

“What he’s doing is to help us adapt the alliance, which we need,” he added. “This is a clear message to Russia and I think they see that.”

On Sunday, President Trump celebrated the announcement, tweeting: “Jens Stoltenberg, NATO Secretary General, just stated that because of me NATO has been able to raise far more money than ever before from its members after many years of decline.”

Donald J. Trump

@realDonaldTrump

Jens Stoltenberg, NATO Secretary General, just stated that because of me NATO has been able to raise far more money than ever before from its members after many years of decline. It’s called burden sharing. Also, more united. Dems & Fake News like to portray the opposite!

 

Trump sent NATO members scrambling last year when he openly questioned the value of remaining in the alliance, while the New York Times reported last week that he had multiple discussions in 2018 with top security advisers about withdrawing. Trump’s ire was on public display during a bilateral breakfast with Stoltenberg and others last July, in which Trump blasted Germany for their reliance on Russian energy while the US is expected to pay for their defense.

Embedded video

Donald J. Trump

@realDonaldTrump

Bilateral Breakfast with NATO Secretary General in Brussels, Belgium…

7

As muni expert Cate Long commented after the exchange:

“President Trump called out Germany for expecting the US to pay for their defense against Russia while they cut a massive oil and natural gas deal with Russia. The simplicity and elegance of his argument cannot be overstated. The duplicity of the German govt is outrageous.”

Leading up to the summit, Trump said that many countries were “nowhere close” to their commitments, and that “by some accounts the US is paying for 90 percent of NATO.”

Donald J. Trump

@realDonaldTrump

The United States is spending far more on NATO than any other Country. This is not fair, nor is it acceptable. While these countries have been increasing their contributions since I took office, they must do much more. Germany is at 1%, the U.S. is at 4%, and NATO benefits…….

In 2014, NATO member nations agreed to spend 2% of their GDPs on defence by 2024 – however just four of the alliance’s 29 countries have met that target, with only 15 expected to do so by the deadline

end

Mexico

Mexico is now starting to look like Venezuela with thiefs drilling thousands of holes in their pipeline scheme stealing the state owned oil  No wonder there is a shortage of oil at the pumps

 

(courtesy Simon Black/SovereignMan.com)

 

 

Mexico Is Starting To Look Like Venezuela

Authored by Simon Black via SovereignMan.com,

Mexico is in the midst of a crisis again.

And no, it doesn’t have anything to do with the border wall that caused the US government to be hopelessly deadlocked for more than a month.

Or the economy. Or murders and violence. Or drug trafficking. Or bird flu.

Nope. Mexico is battling an enormous problem with its oil pipelines.

In a way that almost sounds ridiculous.

But oil thieves have been drilling holes in Mexico’s extensive network of oil and gas piplelines across the country to steal fuel and sell it on the black market.

State-owned oil company PEMEX found more than 12,500 illegal holes in the pipelines last year.

And these oil thieves went as far as building a 2-mile long pipe themselves to divert oil directly from the refineries.

Selling oil on the secondary market is a highly lucrative business in Mexico. And some farmers who take up a job as lookouts for the thieves can earnmore than five times their regular income doing so.

The work is also incredibly dangerous… more than 80 people recently died in a pipeline explosion north of Mexico City when they were trying to siphon off gas.

But Mexico’s new president has decided to do something about this.

And in typical, political brilliance, he ordered the pipelines to be shut down.

So now, instead of transporting oil and gas via pipelines, they’ll ship everything via truck and rail.

There are only a few TINY issues with that solution: it costs up to 14 times more to send fuel via trucks. And more importantly, it takes weeks longer to arrive at the stations.

The result? Severe gasoline shortages.

Across the entire country, including in the biggest cities of Mexico City and Guadalajara, more than 1,000 gas stations have been closed. Many of those still open have limited purchases of gas up to five gallons per person.

And the lines to get to them can reach up to a mile-long.

People have now started hoarding gasoline and re-selling it on the black market.

So much for cracking down on oil theft.

The result is millions of people with no access to gas. They cannot go to work, see their families, or go about their lives as they did just a few days ago.

It’s almost starting to look like Venezuela – the storybook example of what happens to a country gripped by corrupt socialism.

Around 20 years ago, Hugo Chavez came to power and enacted political reforms that granted him and his government enormous power. And he started massive, socialist programs in Venezuela that the country couldn’t afford.

And despite the country’s rich natural resource sector, it went broke.

Now Venezuela has hyperinflation (bringing the average, monthly wage to around $32/month). And people are running out of food, water, medicine and toilet paper. Venezuelans are fleeing the country en masse.

Things couldn’t get much worse in Venezuela. And the people, fed up with this long-running socialist disaster, just elected a new president, Juan Guaidó, who is now battling for power with Maduro. Buyt we’ll leave that story for another day.

The point is, you can look at Venezuela and say “what a bunch of idiots.” Or you can point to Mexico and say the same.

But let’s hold up a mirror to the situation in the US today…

The Treasury Department should soon release its annual financial report for the fiscal year ended September 30 (notice the government gives itself four months to prepare its statements – a full, three months longer than it gives private companies).

I already know what the report will show… that the government’s insolvency has only grown.

Social security is broke, pensions are broke, entitlement spending is eating up a larger and larger portion of tax revenue (while tax revenue is falling).

At the same time, we’ve seen this rise of hardcore, self-avowed socialists in the US… and these folks want to throw more money at this broken system (without any semblance of a plan, at least not one they’ve cared to share with us).

And they’re going to pay for all of this with your tax dollars…

At this point, it’s become passé to call for confiscatory levels of taxation, more regulation and government control and the confiscation of private assets.

You’ve got the governor of California, Gavin Newsom, who wants to centrally plan housing. He wants to tax people and let the government dole out houses.

Then you’ve got de Blasio in NYC who wants to take profits out of the hands of the people that earned it… and put it right into his hands.

Of course these socialist ideas to make the rich pay their “fair share” aren’t going to fix anything.

Placing more money in the hands of the government, instead of the private sector, will only accelerate these fiscal problems.

Remember, we’ve seen how socialist governments fix problems in Venezuela and Mexico. Do you think the result will be any different in the US?

And to continue learning how to ensure you thrive no matter what happens next in the world, I encourage you to download our free Perfect Plan B Guide.

end

 

7  OIL ISSUES

We have been highlighting this to you for the past 3 years..shale production and total reserves are just not there.  This should eventually lead to a big drop in total production from fracking

(courtesy Kurt Cobb/Oil Price.com)

Is The Permian Bull Run Coming To An End?

Authored by Kurt Cobb via OilPrice.com,

The bad news coming out of the shale oil fields of America could all be put down to slumping oil prices. That is certainly a big factor. But as investment professionals like to say, when the tide goes out, we all find out who’s been skinny-dipping.

The pattern of negative news from shale country is not just related to price, however. Oil production, it seems, is being overstated industry-wide by 10 percent and 50 percent in the case of some companies, according to The Wall Street Journal.

The CEO of one of the largest players in the industry, Continental Resources, predicted that growth in shale oil production could fall by 50 percent this year compared to last year. In reality, we should expect worse as the industry for obvious reasons tends to exaggerate its prospects.

The place where the damage to investors has become severe is in private equity firms who hold a large portion of the shale oil industry’s high-yield debt. The plan for the firms was always to unload the debt on somebody else when better opportunities presented themselves. But the firms overstayed their welcome and are having a hard time even finding a bid in the market for these bonds.

With the big Wall Street players now questioning the value of their existing investments in shale oil, the industry is finding it hard to raise money. Not a single bond sale has come off since November in an industry which must continuously raise capital to survive.

To add to the problems, the future of U.S. shale oil production seems to be in the Permian Basin in Texas which has been providing the lion’s share of oil production growth for the entire country. But ongoing drought in an already arid West Texas has raised doubts about whether the Permian will have enough water to meet all the demand for fracking new wells.

Because of the rapid declines in the rates of production from shale wells, companies must first drill enough new wells to offset the loss of production from previous wells—a task akin to walking up the down escalator.

This was not such a difficult task when the shale boom was just beginning. But with the huge increase in the number of operating wells, companies are having to spend more than half of their capital budgets on simply replacing lost production before drilling wells that add to production. That number is expected to reach 75 percent by 2021. At some point it could reach 100 percent. (For this reason some analysts refer to shale oil development as a Ponzi scheme.)

With rig counts dropping; capital expenditures likely to be cut in the face of low prices; and more and more of that budget being used simply to replace existing production, it’s possible that the death spiral long anticipated by the industry’s critics has arrived.

Shale players for years have been unable to finance their drilling programs out of operating revenues as free cash flow (operating cash flow minus capital expenditures) remains wildly negative for most companies. In other words, what companies spend on acquisition of leases and land; drilling and well completion; current operating expenses; and general and administrative expenses far exceeds the cash generated by their sales of petroleum and related products from existing wells.

That means the companies must borrow from investors (usually in the form of high-yield debt) or get them to buy new shares in order to raise the money needed not only to drill enough wells to make up for lost production from declining wells, but also to drill enough to grow production—something investors have been counting on to secure the value of their bonds and increase the value of their shares.

If the needed capital is not forthcoming, it means that companies will be faced with declining revenues from declining production. With lower operating cash flow and little access to additional capital, these companies will be unable to drill enough wells to offset declining ones. That means even lower revenues in the future which will mean even lower investment in new wells. That’s what a death spiral looks like.

Of course, oil prices could revive and with it, investor interest. No one can know for sure. But the big question is this: The next time oil prices do rise, will investors risk getting caught during a subsequent downturn with shale oil company bonds that can’t catch a bid in the market (or shares that could end up worthless)?

Of course, if the current downturn in oil prices continues, there might not be a next time for many shale operators.

8. EMERGING MARKETS

VENEZUELA/USA

John Bolton admits the real reason he wants Maduro out:  he wants American oil companies to enter Venezuela and pull the sour oil out of the ground

The Russians and Chinese who have lent considerable funds will not be happy

(courtesy zerohedge)

John Bolton Openly Admits He Wants Maduro Out, American Oil Companies In

Embattled Venezuelan President Nicolas Maduro might be forgiven for thinking there’s a foreign-backed conspiracy against him in repeatedly accusing the US of engineering a “coup” and waging “economic war” against his regime, especially given that US advisers are now quite openly admitting this is precisely the case. In fact just after Maduro’s contested reelection and swearing in to a second six-year term, his foreign minister Jorge Arreaza told Democracy Now that “Nothing that the opposition does is without the permission or authorization of the State Department… They say, ‘We have to make consultations with the embassy. We have to make consultations with the Dept of State.'”

While that broad brush assertion could remain over-simplistic, White House officials aren’t making it any easier for the opposition in terms of Maduro painting it as tainted by a foreign hand. As a prime example, Trump’s national security advisor John Bolton recently admitted to Fox Business that the US has a “lot at stake” amidst the ongoing Venezuela crisis given the fact that it has the world’s largest proven oil reserves. Bolton told host Trish Regan:

It will make a big difference to the United States economically if we could have American oil companies invest in and produce the oil capabilities in Venezuela.

So it appears that as the administration contemplates ratcheting up both economic and political pressures in favor of opposition National Assembly leader Juan Guaidó, and as “all options are on the table” according to senior officials last week, Bolton in a candid moment which went largely overlooked by the rest of the mainstream media has given us a glimpse into the administration’s less than pure motives on Venezuela.

Embedded video

HootHootBerns #RunBernieRun🌹🐦@HootHootBerns

“We’re in conversation with major American companies now…It would make a difference if we could have American companies produce the oil in Venezuela. It would be good for Venezuela and the people of the United States.” – John “Chickenhawk” Bolton, servant of Swamp King Trump.

“Venezuela’s one of the three countries I call the ‘troika of tyranny,'” Bolton continued (he’s previously identified Cuba and Nicaragua as the other two). After essentially admitting US policy in Venezuela is focused on American oil companies taking over the economically collapsed socialist country’s vast untapped oil reserves, he concluded by expressing hope that “we can make this come out the right way.”

Meanwhile in another Fox appearance last week, Bolton echoed a similar theme, though less explicit, saying regime change was the US end goal in Venezuela as a “potential major step forward” for US “business” advancement in the region.

These admissions come as U.S. officials are now trying to steer Venezuela’s overseas assets to Guaido to help bolster his chances of effectively taking control of the government.

Over the weekend it was revealed that Maduro’s embattled regime, desperate to hold onto the dwindling cash pile it has abroad, was stymied in its bid to pull $1.2 billion worth of gold out of the Bank of England. The $1.2 billion of gold is a big chunk of the $8 billion in foreign reserves held by the Venezuelan central bank; however, the whereabouts of much of it is unknown.

The Bank of England’s (BoE) decision to deny Maduro officials’ withdrawal request came after top U.S. officials, including Secretary of State Michael Pompeo and National Security Adviser John Bolton, lobbied their U.K. counterparts to help cut off the regime from its overseas assets,according to sources speaking to Bloomberg.

Given all of this, it increasingly appears escalating diplomatic and economic pressures could fast put Washington on the path of some level of military involvement in Caracas. Toward this end, an Axios report predicts: “We expect the Trump administration will target Nicolás Maduro’s oil and offshore wealth in the coming weeks and try to divert that wealth to the opposition leader, Juan Guaidó…”. It appears this process has already begun in earnest.

end

Three important points to note here:

  1. USA issues a do not travel advisory to Venezuela
  2. Moscow orders Venezuela to pay on a debt due in March (100 million dollars)
  3. China is the other debt holder of 30 billion dollars

It looks like Venezuela with the sanctions will not be able to pay..

(courtesy zerohedge)

US Issues “Do Not Travel” Advisory For Venezuela As Moscow Warns Caracas To Pay Its Debt On Time

With speculation that the US may (or may not) be sending troops in Latin America, ostensibly to “advise” on any possible military unrest in Venezuela, moments ago the US state department raised its Travel Advisory to Venezuela to “Level 4: Do Not Travel” due to crime, civil unrest, poor health infrastructure, and arbitrary arrest and detention of U.S. citizens. This follows the January 24, advisory in which the Department ordered the departure of non-emergency U.S. government employees and family members “due to ongoing political instability.”

Separately, in what many saw was a warning not so much to Venezuela as to the US which yesterday implemented what amounts to an effective oil blockade of the Latin American nation, the Russian Ministry of Finance said that it expects Venezuela to make its next scheduled debt repayment to Moscow on schedule at the end of March.

Hours earlier, Russia’s deputy finance minister Sergei Storchak said that he expected Venezuela to have problems repaying its debts to Moscow in comments made after Washington imposed sanctions on Venezuela’s state oil firm. The finance ministry issued a separate statement later on Tuesday, saying it still expected a payment of over $100 million to be made on time.

“No changes in the agreement have been introduced and correspondingly Venezuela must fulfill the obligations it has taken upon itself to the creditor,” the ministry said.

Also on Tuesday, Russia repeated its criticism of the U.S. stance on Venezuela, describing the latest sanctions against the government of President Nicolás Maduro as illegitimate. Russian President Vladimir Putin’s spokesman, Dmitry Peskov, said the new U.S. measures blocking all U.S. revenue from Venezuela’s national oil company were the latest example of Washington using economic sanctions to further U.S. commercial interests. The Kremlin has leveled similar criticism against U.S. sanctions on Iran and Ukraine.

“You know the consistent attitude of Moscow toward such actions, which our American colleagues are taking more and more frequently,” Peskov said. “We believe that in most cases, this is an instance of unfair competition.”

Russian officials have continued to insist that Maduro is Venezuela’s legitimate president and offered to mediate, along with Iran, among “responsible political forces” in the country. But they have not offered details about any specific new help that Russia would be willing to provide to Maduro.

Meanwhile, while Russia has repeatedly warned it does not accept US interference in Venezuela’s affairs, the question is what the country’s other major foreign creditor, China, will say… or do. As one of Venezuela’s biggest trade partners and creditors, China, has already opposed foreign interference in Venezuela’s affairs, saying the US will bear responsibility for sweeping sanctions it imposed.

As reported previously, China has provided $50 billion in loans to the Latin American country over the past decade. Through loans and outbound direct investments, Beijing has poured funding into Venezuela while many other countries backed off from doing business with the cash-strapped nation.

Caracas has been gradually paying off that debt with oil shipments, but has struggled to fulfill its commitments because of falling production. It still owes Beijing about $20 billion.

According to Caracas Capital, Venezuela has not paid a sovereign bond since December 2017, and is now in default on 16 sovereign bonds and coupons totaling $1.81 billion. Now, with a new US package of sanctions in place, China’s multi-billion dollar lending as well as investments and business ties with countries like Russia, India, Turkey and others, have all been put at risk.

Even so, and despite the ongoing crisis in Venezuela, New Delhi and Caracas have been continuing their joint investments in the energy sector. India is one of the largest buyers of Venezuelan crude, with over 400,000 bpd procured by Indian companies. The firms had plans to boost crude purchases from Venezuela in the future.

Venezuela is one of the major crude exporters in Latin America and its oil revenues account for about 98 percent of export earnings, according to OPEC. However, oil output fell 33,000 barrels daily from November and hit a new low in December, with 1.15 million barrels per day produced in contrast to more than 2 million in 2017.

Venezuela’s partner in the Middle East, Turkey was also maintaining close ties with Caracas despite the sanctions and international pressure. According to RT, the sides were working on a deal to ship tons of gold to refine and certify in the Turkish city of Corum this year (although should the Bank of England refuse to hand over Venezuela’s gold to the Maduro regime, this agreement may need to be adjusted).

Caracas has been exporting its gold to Turkey for safekeeping since the beginning of last year. Statistics show that Turkey imported $900 million in gold – about 23.6 tons – from Venezuela in the first nine months of 2018. According to Mehmet Ozkan, a former Turkish official who worked on bilateral relations with Venezuela until last year, the main objective was to refine the raw metal and create a capital inflow to Venezuela, likely in the form of services because of US sanctions that prohibit financial institutions from dealing with Venezuela in dollars.

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

Euro/USA 1.1428 DOWN .0001 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  GREEN 

 

 

 

 

 

USA/JAPAN YEN 109;47  UP 0.211 (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…DEADLY TO OUR YEN SHORTERS

GBP/USA 1.3168     UP   0.0009  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3262 UP .0001 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS TUESDAY morning in Europe, the Euro FELL by 1 basis points, trading now ABOVE the important 1.08 level FALLNG to 1.1428/ Last night Shanghai composite CLOSED  DOWN 2.2 POINTS OR 0.10% 

 

 

//Hang Sang CLOSED DOWN 45.28 POINTS OR 0.16%

 

/AUSTRALIA CLOSED DOWN 0.53%  /EUROPEAN BOURSES GREEN

 

 

 

 

 

 

The NIKKEI: this TUESDAY morning CLOSED UP 15.64 POINTS OR 0.08%

 

 

 

 

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED GREEN 

 

 

 

 

 

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 45.28 POINTS OR 0.16% 

 

 

 

/SHANGHAI CLOSED DOWN 2.72 PTS OR 0.10%

 

 

 

 

Australia BOURSE CLOSED DOWN .53%

 

Nikkei (Japan) CLOSED UP 15.64 PTS OR 0.08%

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1308.60

silver:$15.86

Early TUESDAY morning USA 10 year bond yield: 2.74% !!! UP 0 IN POINTS from MONDAY’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 3.07 UP 0  IN BASIS POINTS from MONDAY night. (POLICY FED ERROR)/

USA dollar index early TUESDAY morning: 95.76 UP 2 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing TUESDAY NUMBERS \12: 00 PM

 

Portuguese 10 year bond yield: 1.67% UP 2    in basis point(s) yield from  MONDAY/

JAPANESE BOND YIELD: +.01%  UP 1   BASIS POINTS from MONDAY/JAPAN losing control of its yield curve/

 

 

SPANISH 10 YR BOND YIELD: 1.24% UP 2   IN basis point yield from MONDAY

ITALIAN 10 YR BOND YIELD: 2.63 DOWN 4     POINTS in basis point yield from MONDAY/

 

 

the Italian 10 yr bond yield is trading 129 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS UP TO +.20%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.42% 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 TUESDAY

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

Euro/USA 1.1427 DOWN   .0002 or 2 basis points

 

 

USA/Japan: 109.35 UP  0.095 OR 10 basis points/

Great Britain/USA 1.3141 DOWN.0019( POUND DOWN 19  BASIS POINTS)

Canadian dollar DOWN 5 basis points to 1.3266

 

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The USA/Yuan,CNY closed UP AT 6.7346 0N SHORE  (YUAN UP)

THE USA/YUAN OFFSHORE:  6.7484(  YUAN UP)

TURKISH LIRA:  5.3149

the 10 yr Japanese bond yield closed at +.01%

 

 

 

Your closing 10 yr USA bond yield DOWN 2 IN basis points from MONDAY at 2.72 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.06 DOWN 1  in basis points on the day /

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

Your closing USA dollar index, 95.76 UP  2  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 TUESDAY: 12:00 PM 

London: CLOSED UP 86.83 OR 1.29%

German Dax : UP 8.52 POINTS OR 0.08%

Paris Cac CLOSED UP 39.60 POINTS OR 0.81%

Spain IBEX CLOSED UP 56.70 POINTS OR  0.63%

Italian MIB: CLOSED UP 93.47 POINTS OR 0.48%

 

 

 

 

WTI Oil price; 53.44 12:00 pm;

Brent Oil: 61.46 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    66.01  THE CROSS LOWER BY 0.17 ROUBLES/DOLLAR (ROUBLE HIGHER BY 1 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  5.3149 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.20 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 :  53.17

 

 

BRENT :  61.13

USA 10 YR BOND YIELD: … 2.70

 

 

USA 30 YR BOND YIELD: 3.04

 

 

 

EURO/USA DOLLAR CROSS:  1.1434 ( UP 5    BASIS POINTS)

USA/JAPANESE YEN:109.34 UP .081 (YEN DOWN 8   BASIS POINTS/..

 

.

 

USA DOLLAR INDEX: 95.81 UP 6 cent(s)/

The British pound at 4 pm: Great Britain Pound/USA:1.3063  DOWN 97 POINTS FROM YESTERDAY

the Turkish lira close: 5.3123

the Russian rouble 66.03:   UP .21 Roubles against the uSA dollar.( UP 21 BASIS POINTS)

 

Canadian dollar:  1.3275 DOWN 14 BASIS pts

USA/CHINESE YUAN (CNY) :  6.7344  (ONSHORE)

USA/CHINESE YUAN(CNH): 6.7474  (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.20%

 

The Dow closed UP 51.74 POINTS OR 0.21%

 

NASDAQ closed DOWN 57.40 POINTS OR 0.81%

 


VOLATILITY INDEX:  19.25 CLOSED UP  0.38 

 

LIBOR 3 MONTH DURATION: 2.750%  .LIBOR  RATES ARE FALLING/

 

FROM 2.769

 

 

 

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

 

Golden Crosses, Tech Wrecks, & Confidence Crumbles

Investors clung to the positivity of The Dow today, ignoring the recessionary indications from sentiment indicators, tumble in earnings expectations, Nasdaq slump, and bod for safe-haven bonds and bullion… remember again “The Dow was green… Don’t forget the FOMC ‘Drift'”…

China tech stocks tumbled overnight as Huawei headlines rippled through Asian suppliers…

 

European stocks rebounded with UK’s FTSE leading (closed before all the amendments were voted on)

 

 

US markets were very mixed with The Dow positively diverging from Nasdaq at the cash open, then all tumbling together into the European close…

 

The Dow desperately clung to green into the close as Small Caps, S&P and Nasdaq all ended red…Trannies outperformed

 

It appears for now that the squeeze has run out of ammo…

 

CAT rebounded modestly from yesterday’s ugliness but NVDA did not…

 

Credit spreads compressed today but VIX was flat…

 

Bonds were bid today safe-havens rallied on Nasdaq weakness. Notably, the long-end continues to underperform…

 

The 16th day in a row that 10Y Yields have traded with a 2.7x% handle…

 

For the second day in a row, the dollar trod water in a very narrow range…

 

Cable chopped around (in a surprisingly small range) amid various Brexit headlines then dumped after MPs rejected the Brexit delay amendment…

 

Offshore Yuan found resistance/support at its 200DMA…

 

Cryptos dropped and popped on the day but remain lower on the week…

 

Crude (ahead of API inventory data) and Copper rebounded today and PMs rallied…

 

Spot Gold surged to 8-month highs today as gold futures triggered a ‘GOLDEN CROSS’ pattern (50DMA crossing upwards thru the 200DMA)

 

Gold pushed back into the green against the Yuan for 2019 also…

 

Finally, with The Fed due to make a statement (and a press conference) tomorrow, we note that since The Fed hiked rates in December, Gold is the clear winner outpacing stocks (USDollar lower)

And as The Fed prepares to tell us how everything is still awesome BUT they want to be cautious – or some such bollocks – we note the Conference Board’s expectations index has crashed in the last 3 months by an amount that has always been associated with recession…

And Jeff Gundlach agrees…

Jeffrey Gundlach

@TruthGundlach

The most recessionary signal at present is consumer future expectations relative to current conditions. It’s one of the worst readings ever.

END

market trading/

TRADING LATE MORNING

Nasdaq Tumbles Below Yesterday’s Lows, Dow Holding Green

The Dow (up) and Nasdaq (down) are dramatically divergent so far today…

 

with the Nasdaq breaking below yesterday’s lows as the former holds green for now…

January remains strongly positive though still…

 

 

MARKET DATA

Another indicator of a faltering USA economy: consumer confidence collapses as well as job hopes.  This is the worst reading in 50 years

 

(courtesy zerohedge)

Consumer Confidence Collapses As Job Hopes Crash Most In 50 Years

After tumbling in December, expectations were for a further decline in The Conference Board consumer confidence data and despite the resurgence of the stock market, confidence plunged more than expected.

The headline confidence index fell to 120.2 from a revised lower 126.6 (and well below the 124.0 expected). Both Current and future expectations also plunged…

“The Present Situation Index was virtually unchanged, suggesting economic conditions remain favorable. Expectations, however, declined sharply as financial market volatility and the government shutdown appear to have impacted consumers. Shock events such as government shutdowns (i.e. 2013) tend to have sharp, but temporary, impacts on consumer confidence. Thus, it appears that this month’s decline is more the result of a temporary shock than a precursor to a significant slowdown in the coming months.”

Americans’ current perceptions about the labor market remain high, but they’re less confident the good times will last as the new year approaches as the share expecting more jobs in the next six months fell to 14.7 percent from 22.7 percent, the steepest two-month drop since 1968…

USA ECONOMIC STORIES OF INTEREST

PG and E tumbles last night on a report that creditors are rejecting the debt deal…they will proceed to bankruptcy

(courtesy zerohedge)

PG&E Tumbles On Report Rejecting Debt Deal, Will Proceed To Bankruptcy

PG&E stocks is down over 7% after hours on a Bloomberg report that, according to people familiar with the situation, the company still expects to file for Chapter 11 protection as soon as Tuesday, despite last-minute proposals by investors to keep the utility out of bankruptcy

All the day’s gains gone and some…

Bloomberg reports that the board evaluated secured-debt arrangements and other forms of capital, but decided they weren’t the best alternatives to address billions of dollars in potential wildfire liabilities, according to one of the people, who asked not to be identified because the information isn’t public.

A key stumbling block remains California’s inverse condemnation policy that can hold utilities liable for wildfire damages regardless of whether they’re negligent, according to the people.

Investigators have already determined that PG&E’s equipment caused at least 17 major wildfires in 2017, though it remains to be determined whether PG&E will be found liable for November’s Camp Fire, which killed 86 people and destroyed about 14,000 homes, making it the deadliest fire in the state’s history.

Additionally, Bloomberg reports that PG&E looks set to secure $2 billion in debtor-in-possession term loans on better terms than it was initially expecting.  The term loans are part of $5.5 billion total financing to fund operations during a Chapter 11, making it the largest bankruptcy loan package to be syndicated since June 2017, according to Bloomberg data.

“The DIP is multiples covered as it is well collateralized by the company’s asset and enterprise values,” said Steven Oh, head of credit and fixed-income investments at money manager Pinebridge Investments.

“The PG&E loan is more iron-clad than most triple B rated loans in the market.”

The deal had a BBB- rating from Fitch Ratings… and while some investors had passed (looking for more spread to cover their risk), we are sure will be scooped up by various CLO entities and pitched on to yield-hungry pension funds.

end
PG and E file for bankruptcy protection with 50 billion dollars in debt
(courtesy zerohedge)

PG&E Files For Bankruptcy Protection With $50 Billion In Debt

In what’s expected to be one of the most complicated bankruptcies in recent memory thanks to the involvement of indignant state and federal regulators, activist shareholders, worried bond holders and angry fire victims, PG&E has officially filed for bankruptcy.

The Wall Street Journal reported that as we previewed last night, the troubled utility which serves 16 million California customers, filed for bankruptcy early Tuesday, claiming more than $50 billion in debt.Facing what some analysts estimate could be some $27 billion in fines relating to the role of malfunctioning equipment in causing wildfires, the bankruptcy process is expected to be a protracted mess as state and federal regulators try to figure out the best plan for holding the country’s largest utility accountable. When it’s all said and done, the outcome is expected to have wide-ranging implications for utility customers, fire victims, shareholders and wholesale power providers.

In the filing, the utility revealed that it’s facing some 750 complaints on behalf of 5,600 fire victims, with fire-related liabilities amount to some $30 billion.

PGE

Though PG&E was cleared last week of involvement in the 2017 Tubbs fire that tore through the state’s wine country, its equipment has been implicated in 18 other wildfires that burned nearly 200,000 acres, destroyed 3,256 buildings and homes and killed 22 people during the 2017 wildfire season. And investigators are still working to figure out whether PG&E’s equipment played a role in starting November’s Camp Fire, which killed 86 people, making it the deadliest fire in state history. The company’s shares soared on the news that it would be freed from liability in the Tubbs fire, which reduced its potential liabilities by as much as $11 billion.

While it’s true that utilities rarely declare bankruptcy because of state guarantees, California law allows utilities to be held responsible for fires caused by their equipment, even if the company wasn’t negligent. PG&E previously declared bankruptcy back in 2001 thanks to the California energy crisis.

One thing is clear: the bankruptcy is bad news for Californians, who could face double-digit increases in their energy bills despite already paying some of the highest rates in the country. The bankruptcy could also be problematic for wholesale power providers like NextEra and Consolidated Edison as PG&E is expected to try and renegotiate contracts to purchase wind and solar power after cancelling some $34.5 billion in longstanding contracts.

“It could have a real ripple effect throughout the power industry, not just with respect to the existing contracts that are there,” said Luckey McDowell, a partner in Baker Botts’ restructuring group. “It could have a chilling effect in respect to new investment.”

By declaring bankruptcy, PG&E becomes not just a ‘fallen angel’ – a term used to describe firms that go bankrupt shortly after losing their Investment Grade rating – but a ‘failing angel’ – a term coined by BofA indicating that a firm went from investment grade to bankruptcy within the span of a year. PG&E also joins Lehman Brothers and WorldCom.

pge

And it become only the fourth ‘failing angel’.

PGE

Before filing, PG&E rebuffed two rival financing bids, one led by Elliott Management Corp. and the other led by Citadel, that sought to help the company avert a bankruptcy filing.

But now that the die has been cast, it’s difficult to say where the process the will take PG&E

“There are some bankruptcy cases that get finished very quickly,” said Melissa Jacoby, a law professor at the University of North Carolina at Chapel Hill. “This is just not one of those cases.”

Some state officials have publicly mulled a state-sponsored plan to break up the utility, the country’s largest. At one point, lawmakers had considered a plan to help PG&E pass on fire-related liabilities to its customers, but reluctance to be seen as bailing out the utility ultimately killed that plan and led to PG&E trying – and failing – to call lawmakers’ bluff. The company is set to hire turnaround specialist James Mesterharm as its chief restructuring officer to help the company navigate bankruptcy proceedings.

end
Another indicator of the USA slowdown:  USA home price growth slumps to 4 yr lows
(courtesy zerohedge)

US Home Price Growth Slumps To 4 Year Lows

Minutes after Pulte Homes’ CEO warning that 2019 will be a “challenging year” for homebuilders, Case-Shiller reports its 20-City Composite price index rose just 4.68% YoY in November (dramatically below the 4.89% expected and the 5.02% October print).

This is the weakest home price growth since January 2015…

All 20 cities in the index showed year-over-year gains, led by a 12 percent increase in Las Vegas and 8.1 percent advance in Phoenix.

The weakest gains were in Washington, Chicago, and San Diego. New York also had a subdued increase, at 3.5 percent.

Notably, all cities but Washington saw home prices grow faster than incomes yet again…

The data further underscore a slowdown in the housing market, along with figures showing sales cooled throughout 2018 as mortgage rates increased, compounding the problem of affordability for many potential buyers already facing steep property prices and scarce supplies.

“Price increases are being dampened by declining sales of existing homes and weaker affordability,” David Blitzer, chairman of the S&P index committee, said in a statement.

“Housing market conditions are mixed while analysts’ comments express concerns that housing is weakening and could affect the broader economy.”

Finally, as Bloomberg notes, housing will likely weigh on US growth for the first time since 2012. Residential investment has added a few tenths of a percent to economic growth each year since 2012. The latest GDP data indicate the sector subtracted from growth in the first three quarters of this year. Poor performance in 4Q implies the sector’s growth for 2018 remains in negative territory.

 

SWAMP STORIES

Whittaker says that the Mueller probe is “close to being completed”

(courtesy zerohedge)

Acting AG Whitaker Says Mueller Probe “Close To Being Completed”

A visibly sweating acting Attorney General Matthew Whitaker said late on Monday that he was briefed on special counsel Robert Mueller’s Russia investigation and that it is “close to being completed”, the first public indication by the government that the probe is drawing to a close.

Embedded video

ABC News

@ABC

NEW: Acting Attorney General Matt Whitaker says Mueller investigation “is, I think, close to being completed, and I hope that we can get the report from Director Mueller as soon as possible.” http://abcn.ws/2hFejwL 

Whitaker said the Russia investigation “is, I think, close to being completed, and I hope that we can get the report from Director Mueller as soon as possible.” Whitaker, who has previously critical of Mueller’s inquiry, made the remarks to reporters at a news conference related to charges against Chinese telecom company Huawei Technologies.

“I have been fully briefed on the investigation,” Whitaker said adding that “I look forward to Director Mueller delivering the final report.” The acting AG also said that “I am comfortable that the decisions that were made are going to be reviewed.” Whitaker didn’t elaborate, but a Justice Department official said later he sought to convey that he’d follow department regulations regarding Mueller’s closing documents.

The regulations require Mueller to provide the attorney general with “a confidential report explaining the prosecution or declination decisions reached by the Special Counsel” according to Bloomberg, which clarified that Whitaker meant to say he would look at the decisions, but has no intention to try to revisit or change Mueller’s decisions.

Democratic Senator Chris Coons of Delaware said Whitaker’s statement that decisions made in the investigation would be reviewed is “chilling,” adding he doesn’t have confidence that Whitaker will respect the independence of Mueller’s probe.

“I hope to be pleasantly surprised that he is not attempting to interfere in any way with the Mueller investigation or slow or prevent release of his report, but one could draw those inferences,” Coons said.

Whitaker’s remarks shed some light on the status of the nearly two-year-old probe into whether Trump associates aided Russia’s efforts to interfere in the 2016 U.S. election, which Trump has repeatedly called a “giant witch hunt”.

Whitaker’s comments came days after Mueller’s team obtained a seven-count indictment against longtime Trump political adviser Roger Stone, accusing him not of collusion with Russia but of lying to Congress to cover up his efforts to obtain and share with Trump campaign officials plans by WikiLeaks to publish emails Russian hackers stole from Democrats in 2016.

Earlier on Monday, Trump’s attorney general nominee, William Barr, said he has been exploring whether Whitaker should remain in the Justice Department if Barr is confirmed in the coming weeks.

More notably, Barr told lawmakers that Justice Department standards may prevent him from releasing Mueller’s final report or allowing the president to be charged with a crime while in office. Barr provided written answers to follow-up questions from his confirmation hearing. His answers could result in more criticism from lawmakers who are seeking ironclad assurances that the public will get to read Mueller’s report.

Barr, who has also criticized aspects of the Mueller probe, has repeatedly said he would seek the guidance of ethics officials, but would decide on his own whether to recuse himself from the investigation.

Earlier on Monday, two Senate Judiciary panel members – Republican Chuck Grassley and Democrat Richard Blumenthal – said that they’re proposing legislation that would require Mueller’s report to be made available to the public and Congress when the investigation is completeIf the special counsel were fired or resigned, a public report would have to be released in two weeks.

With Mueller continuing to unspool his findings, issuing another indictment last week when Mueller arrested Trump’s longtime ally Roger Stone, accusing him of lying to Congress and obstructing a congressional inquiry, many speculate that Mueller’s case against Trump is complete, although a cynical take is that if indeed the Mueller report is almost out and nothing tangible has been leaked about an imminent Trump impeachment, then Mueller was unable to find anything with which to take down Trump.

GreekFire23@GreekFire23

Which means if he had anything to impeach and send Trump to jail it would’ve already been leaked, like everything else in his “investigation”. This is devastating news to journalists worldwide https://twitter.com/cnbc/status/1090009285461970944?s=21 

CNBC

@CNBC

Special counsel Robert Mueller’s investigation is close to being completed, acting AG Matthew Whitaker says https://cnb.cx/2G8r6S7 

See GreekFire23’s other Tweets

The good news is that we will finally have a definitive answer some time in the next few weeks. As for casual observers, the outcome is a coin toss, with Trump’s impeachment probability during his first term currently at even odds, or 50c, according to PredictIt.

end
It seems Guiliani is looking ahead the 2020 election rather than concerning himself with Mueller
(courtesy zerohedge)

Is This The Method To Giuliani’s Madness?

As Robert Mueller and his team of prosecutors have implicated the president in vague allegations of wrongdoing and collusion through a series of leaks, the plea agreement struck by Michael Cohen, and most recently, the indictment of Roger Stone, President Trump’s lead lawyer Rudy Giuliani has often been tasked with rebutting the allegations on cable news and in interviews with the press. And as many have pointed out, he hasn’t done a very competent job of it. In fact, in recent months, Giuliani has appeared to contradict the administration’s timeline on the Trump Tower Moscow discussions, implicate Trump in a campaign finance violation and allude to the existence of new “tapes” of conversations between Cohen and Trump. Because of this, Trump’s aides have reportedly been pushing the president to finally muzzle the former New York City mayor, who has been one of his most dogged supporters and defenders.

Mueller

But given Giuliani’s record, many have expressed surprise that he would behave so incompetently with such regularity. It’s prompted some to wonder if there is in fact a method to Giuliani’s (perceived) madness.

In a report published Monday, the Financial Times produced what some believe might explain Giuliani’s purported “lapses” (some have even speculated that Giuliani has been drinking before his interviews, though he denies it).

Because Giuliani has already established that a sitting president cannot be indicted, Trump’s legal defense is already pretty much iron clad. Therefore, Giuliani isn’t concerned about the legal ramifications of the allegations: He’s more concerned with making sure Trump has the best possible chance of winning re-election in 2020.

One school of thought is that Mr Giuliani is trying to soften the blow for any eventual legal findings against Mr Trump by first airing them on television — either to lessen their sting or purposefully muddy the waters. Having concluded that a sitting president cannot be indicted, this thinking goes, Mr Giuliani is not mounting a classic legal defence but instead putting up a political one — rallying Mr Trump’s supporters in the hope that their electoral support will help head off a possible impeachment.

Speaking to The New Yorker magazine, Mr Giuliani hinted at such a strategy, saying of Mr Trump’s case: “I thought legally it was getting defended very well. I thought publicly it was not getting defended very well.”

Could Giuliani implying a direct link between Trump and the Cohen payments have been intended to muddy the waters so when the inevitable news breaks, the public treats it like a forgone conclusion? If this line of reasoning is accurate, then that would be a reasonable assumption. One FT source, identified as a “long-serving city official” insisted that Giuliani was either trying to “make [Trump] look like the sane one” or “tie up the news cycle so they don’t report on other things.”

Maybe – just maybe – he’s trying, and succeeding, at doing both?

One thing’s for sure: If Trump wanted Giuliani gone, he’d be gone already. The fact that he’s still the lead attorney (he has said little since the Stone indictment on Friday, but then again the indictment has no direct link to Trump or anybody close to the president) suggests that he’s being kept there for a reason.

END

Roger Stone Enters ‘Not Guilty’ Plea

Roger Stone has officially entered a plea of ‘not guilty’ on Tuesday morning to seven criminal charges including charges of making false statements to Congress, witness tampering and obstruction of justice, according to CNN.

Stone

After warning for months that he would likely be indicted, Stone on Friday became the 34th person charged in the Mueller probe. Once Magistrate Judge Deborah Robinson has heard Stone’s arraignment, Stone’s case will move before District Judge Amy Berman Jackson, who is also handling the Manafort guilty plea in a Washington court. Stone was the 34th individual charged in the Mueller probe. But aside from the Russian firm Concord Management and Consulting, he is the only person fighting the charges.

END

SWAMP STORIES/MAJOR STORIES//THE KING REPORT
and special thanks to Chris Powell of GATA for sending this down for us:

Mueller Probe ‘Close to Being Completed,’ DOJ’s Whitaker Says

Acting attorney general says he’s been briefed on probe

https://www.bloomberg.com/news/articles/2019-01-28/mueller-probe-close-to-being-completed-doj-s-whitaker-says

 

Barr’s Senate confirmation vote is scheduled for the week of February 11.  Things could get interesting.

 

WaPo: Pelosi invites Trump to deliver State of the Union on Feb. 5 in the House chamber

[Did polls induce her to reverse her block on DJT’s SOTU address?]

 

The forecast for Chicago today is -23 degrees with a -50 to -60 wind chill.  Wednesday is forecast to be -30 with a -50 wind chill.  We could really use some global warming around here!

 

Telling Fired Journalists “Learn To Code” Is Now “Abusive Behavior” On Twitter

So once again – it is not the message that is censored but the messenger (left, good; right, bad)…

https://www.zerohedge.com/news/2019-01-28/telling-fired-journalists-learn-code-now-abusive-behavior-twitter

 

@25lrock: 54% of U.S. Senators and 37% of House members are attorneys.  Harvard Law and Georgetown Law top the list of law schools they attended. Read more in a @BLaw Insight by Thomas Lewis from @ChambersAssochttps://news.bloomberglaw.com/us-law-week/insight-law-school-popular-for-congress-with-harvard-georgetown-topping-list

 

Chris Christie bashes Jared in this new book.  Christie prosecuted Kushner’s dad for tax evasion.

 

Trump Thought Firing Flynn Would End ‘Russia Thing,’ Chris Christie Writes in Book

President Trump and his son-in-law, Jared Kushner, believed that the “Russia thing” would end as a side effect from the firing of the national security adviser, retired Lt. Gen. Michael T. Flynn… He  [Christie] became a key, early supporter of Mr. Trump after withdrawing from the race, and then ran Mr. Trump’s transition — until he was fired shortly after the election, reportedly at the direction of Mr. Kushner…

    Mr. Kushner, whose power has grown recently, appears as a shadow campaign manager and chief of staff in the White House, often giving his father-in-law questionable and problematic advice, according to the book, on topics including Mr. Flynn; how Democrats would perceive the firing of James B. Comey as F.B.I. director; his initial support for the campaign chairman, Paul Manafort; and how West Wing and key cabinet jobs were filled…

https://www.nytimes.com/2019/01/27/us/politics/chris-christie-book-trump.html?smtyp=cur&smid=tw-nytimes

 

Democratic donors slam Howard Schultz for flirting with an independent 2020 campaign

https://www.cnbc.com/2019/01/28/wall-street-ny-democratic-donors-slam-howard-schultz-over-possible-run.html

 

Bloomberg: Independent presidential bid would ‘end up re-electing’ Trump

https://www.politico.com/story/2019/01/28/bloomberg-2020-elections-howard-schultz-1129214

 

Howard Schultz Heckles within Seconds of First Campaign Appearance in NYC

‘Go back to Davos with the other billionaires!’

https://news.grabien.com/story-howard-schultz-heckled-within-seconds-first-campaign-appeara

 

@MarkSimoneNY: Give Howard Schultz credit for building a huge coffee empire and getting $12 a cup, without ever learning how to make a cup of coffee that actually tastes good.

 

Billionaire Amazon Founder Jeff Bezos Barely Gives Any Money to Charity: Report

Just over $145 million to charity over the years.  That figure equals .0906 percent of his fortune…

https://www.theepochtimes.com/billionaire-amazon-founder-jeff-bezos-barely-gives-any-money-to-charity-report_2781598.html

 

Ex-fed prosecutor @SidneyPowell1: Christopher Wray was Andrew Weissmann’s “supervisor” at DOJ while Weissmann was running over everyone in Houston & destroying people for nothing. Wray is part of the problem. [Why did Trump hire Swamp Creature Wray to run the FBI given Wray’s history?]

 

Top Saudi Official: Barack Obama Lied, Set Middle East Back 20 Year

Obama, Bandar Bin Sultan said, “would promise something and do the opposite.” He spoke critically of the Iran nuclear deal and how the former president spoke about curbing Iran but failed.

https://www.jpost.com/Arab-Israeli-Conflict/Top-Saudi-official-says-Obama-lied-set-Middle-East-back-20-years-578922

end

I WILL SEE YOU WEDNESDAY NIGHT
.
H
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