GOP Folds: Senate To Delay Healthcare Vote Until After July 4

So much for that “do or die” procedural vote we just noted.
Moments ago CNN reported that, as many speculated, Mitch McConnell will delay the vote on healthcare until after the July 4 recess, confirming last night’s news that Republicans simply don’t have the needed number of votes in the Senate. As a reminder, republicans don’t have short support for the bill, with at least 5 GOP senators saying they won’t even back a procedural vote on the measure that was supposed to take place this week.
McConnell to delay the vote on h'care until after July 4 recess, @mkraju & @Phil_Mattingly report.
— Kate Bolduan (@KateBolduan) June 27, 2017

This post was published at Zero Hedge on Jun 27, 2017.

Gold And Silver: Respect The Bar

1. At about 4:00am yesterday, gold suffered a dramatic sell-off in just a few seconds. More than 15,000 contracts quickly changed hands on the COMEX.
2. This caught most investors by surprise. That’s because they don’t follow the physical market meticulously.
3. The supply and demand of physical gold is what drives price discovery in the paper market. The leverage involved on the COMEX, SGE (Shanghai), and the LBMA (London) allows the paper market to significantly magnify the action taking place in the physical market.
4. The gold price trends are generally determined by the physical market, and magnified by the paper market. It’s that simple.
5. Janet Yellen has stated, ‘I don’t think anybody understands gold.’ I disagree. I’ll suggest that anybody who ignores the physical market will find that most of what happens in the paper market feels like an electric shock. It’s not a shock. It’s a magnification.
6. To view the latest key physical gold market news, please click here now. When the major banks stop importing gold into India, even if it’s for just a few days (as it is in this case), a ‘price vacuum’ can occur on the COMEX and/or the LBMA, and do so in just a few seconds.

This post was published at GoldSeek on 27 June 2017.

Stock Prices Fall as Google Faces Fines of $2.7 Billion

Stock prices fell Tuesday as investors reacted negatively to news that Alphabet Inc. (Nasdaq: GOOGL) is facing the largest antitrust fine ever levied by the European Commission. In addition, the U. S. Senate delayed its vote on a new healthcare bill, and a massive ransomware attack battered global networks.
Here are the numbers from Tuesday for the Dow, S&P 500, and Nasdaq:
Index Closing Point Change Percentage Change Dow Jones 21,310.66 -98.89 -0.46% S&P 500 2,419.38 -19.69 -0.81% Nasdaq 6,146.62 -100.53 -1.61%

This post was published at Wall Street Examiner on June 27, 2017.

Deutsche Faces $60MM Derivative Loss For Inflation Bet Gone Bad

Just two months after Deutsche Bank was fined $165 million for not only still rigging FX when its currency traders were found to still be participating in banned chat boards, but for violating the Volcker rule, the chronic German recidivist bank, whose endless criminal activity cost the jobs of the entire previous management team… has violated the Volcker rule one again. And this time the bank faces a double whammy of not only breaching the terms of its latest settlement with the Fed, but is also facing a $60 million derivative loss for a TIPS-linked trade gone bad, which also happened to frontrun its clients!
As Bloomberg reports, citing “people familiar”, DB made a bet on U. S. inflation that puts the firm on course to lose as much as $60 million, While the specifics of the trade are not available, it appears to have been a TIPS-linked bet on inflation rising. As everyone, and certainly the Fed knows, precisely the opposite has happened, and it is now another humiliating mark on the face of new CEO John Cryan, as he has to explain not only why the bank broke the terms of its consent order with the Federal Reserve, which stated, and we quote…

This post was published at Zero Hedge on Jun 27, 2017.

Stocks and Precious Metals Charts – Quiet Metals Options Expiration on the Comex

“Will I say there will never, ever be another financial crisis? No, probably that would be going too far. But I do think we’re much safer and I hope that it will not be in our lifetimes and I don’t believe it will.”
Janet Yellen
Yellen issued what sounds on the surface like the kind of statement that Irving Fisher made famous in 1929. Hi ho!
Today there was a quiet options expiration on the Comex for gold and silver.
The July contract is active for silver, but the gold action is already moved to August.
Stocks took a dive today and the VIX was up as you can see below.

This post was published at Jesses Crossroads Cafe on 27 JUNE 2017.

Stocks Slammed After Fed Williams Warns “Market Rally Running On Fumes”

While the old saying is “they don’t ring a bell at the top,” we suspect Fed vice-chair Stanley Fischer just came as close as one can without screaming “sell.”
It’s getting clearer that Fed officials are getting concerned about where asset markets are going.
*FISCHER: ‘NOTABLE UPTICK IN RISK APPETITES’ IN ASSET MARKETS *FISCHER: EQUITY P/E RATIOS ARE NEAR TOP OF HISTORICAL LEVELS

This post was published at Zero Hedge on Jun 27, 2017.

The Trump-South Korea Meeting This Week Will Do Nothing to Stop Kim Jong Un

The Trump-South Korea meeting this week won’t result in any concrete plan between the two world leaders for countering North Korea’s future threats.
The cause of this anticipated Washington/Seoul standstill: starkly different policy approaches held by both world leaders – South Korea’s new commander in chief President Moon Jae-in and President Donald Trump.
Here’s a look at those specific differences… and how a stalemate between Washington and Seoul will leave Pyongyang unrestrained in its ongoing weapons-testing…
Moon Supports Diplomacy, and So Did Trump… Last Year
Let’s start by examining South Korean President Moon Jae-in’s recent rise to power.
Moon was elected on May 9 after running a slapdash campaign to replace South Korea’s disgraced, impeached President Park Geun-hye. He campaigned on taking a diplomatic approach to North Korea.
Specifically, Moon touted reviving a limited version of the Sunshine Policy of Engagement – a policy that South Korea employed briefly in the early 2000s. The Sunshine Policy aimed to build trust between North and South Korea through investments, exchanges, and aid programs.
This policy, however, ended in October 2006 when South Korea suspended aid shipments to Pyongyang, seemingly unprovoked.

This post was published at Wall Street Examiner on June 27, 2017.

Janet Yellen Discusses Global Economic Issues: Live Feed

Confused by Yellen’s direction? You’re not alone.
It’s not just a state of mind, that’s the name of the latest slideshow by the economics team at ING bank…

.. which shows how much confusion there is in a market which refuses to agree with the Fed’s hiking forecast (for good reason) and which is the biggest question in capital markets these days: will the Fed continue on its aggressive tightening path even without the inflation needed to justify it, or will it do what it did the last time it laid out a tightening plan which promptly imploded in early 2016.

This post was published at Zero Hedge on Jun 27, 2017.

One Sector Is Propping Up the US Stock Market

US stock benchmarks hit new all-time highs this month, and despite rich valuations, buyers think they’ll go higher still.
One reason for this exuberance is the growing dominance of passively indexed ETFs.
Rather than go to the trouble of picking individual stocks, people dump their cash into index ETFs. The ETF sponsor then buys every stock in the index – even the ugly ones.
Profit growth seems to justify this, even in the broad indexes. In its June 16 bulletin, FactSet Research estimated that combined profits in the S&P 500 companies will rise 6.5% in this year’s second quarter.
So, ‘combined profits’ means some companies (and sectors) performed better than average, some worse, right?
Actually, no.
What we really have is one sector growing profits at a gangbuster rate. The others, not so much.
Break down that 6.5% profit growth by sector, and you get this:

This post was published at Mauldin Economics on JUNE 27, 2017.

JUNE 27/DOW FALLS 98.89/NASDAQ FALLS 100.53 AFTER IMF SAYS THAT THE DOLLAR IS 20% OVERVALUED AND THAT THE USA WILL EXPERIENCE TEPID GROWTH/GOLD UP A FRACTION AND SO IS SILVER/SWITZERLAND EXPORTS …

GOLD: $1246.40 UP $0.10
Silver: $16.58 UP 2 cent(s)
Closing access prices:
Gold $1247.50
silver: $16.68
SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
SHANGHAI FIRST GOLD FIX: $1253.94 DOLLARS PER OZ
NY PRICE OF GOLD AT EXACT SAME TIME: $1243.80
PREMIUM FIRST FIX: $10.03
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SECOND SHANGHAI GOLD FIX: $1262.15
NY GOLD PRICE AT THE EXACT SAME TIME: $1250.00
Premium of Shanghai 2nd fix/NY:$12.15
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LONDON FIRST GOLD FIX: 5:30 am est $1240.85
NY PRICING AT THE EXACT SAME TIME: $1241.85
LONDON SECOND GOLD FIX 10 AM: $1245.25
NY PRICING AT THE EXACT SAME TIME. $1244.25
For comex gold:
JUNE/
NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 77 NOTICE(S) FOR 7700 OZ.
TOTAL NOTICES SO FAR: 2850 FOR 285,000 OZ (8.8646 TONNES)
For silver:
JUNE
2 NOTICES FILED TODAY FOR
10,000 OZ/
Total number of notices filed so far this month: 993 for 4,915,000 oz
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
END
We have now officially entered options expiry week:
comex options expiry : Tuesday June 27 finished tonight
London options expiry: Friday June 30
first day notice Friday June 30
The big news is the fact that the mainstream media are commenting on the unusual trading of gold and silver.
Also the IMF stated that the dollar is overvalued by 20% and that their growth is quite anemic. This should be the catalyst to explode the price of gold and silver.
end
Let us have a look at the data for today
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In silver, the total open interest SURPRISINGLY FELL BY ONLY 1479 contract(s) DOWN to 203,137 DESPITE THE RAID AND THE FALL IN PRICE OF SILVER THAT TOOK PLACE WITH YESTERDAY’S TRADING (DOWN 7 CENT(S). In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.0150 BILLION TO BE EXACT or 145% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT MAY MONTH/ THEY FILED: 2 NOTICE(S) FOR 10,000 OZ OF SILVER
In gold, the total comex gold SURPRISINGLY ROSE BY 214 CONTRACTS DESPITE THE RAID IN THE PRICE OF GOLD ($9.90 with YESTERDAY’S TRADING). The total gold OI stands at 450,301 contracts.
we had 77 notice(s) filed upon for 7,700 oz of gold.
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With respect to our two criminal funds, the GLD and the SLV:
GLD:
We had a big change in tonnes of gold at the GLD: a withdrawal of 2.64 tonnes from the GLD
Inventory rests tonight: 853.66 tonnes
SLV
Today: no change in silver inventory at the SLV:
THE SLV Inventory rests at: 339.888 million oz

This post was published at Harvey Organ Blog on June 27, 2017.

Why the Fed Will Fail Once Again

John Maynard Keynes once wrote, ‘Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.’
Truer words were never spoken, although if you updated Keynes today, the quote would begin with ‘practical women’ to take account of Fed Chair Janet Yellen. The ‘defunct economist’ in question would be William Phillips, inventor of the Phillips curve, who died in 1975.
In its simplest form, the Phillips curve is a single-equation model that describes an inverse relationship between inflation and unemployment. As unemployment declines, inflation goes up, and vice versa. The equation was put forward in an academic paper in 1958 and was considered a useful guide to policy in the 1960s and early 1970s.
By the mid-1970s the Phillips curve broke down. The U. S. had high unemployment and high inflation at the same time, something called ‘stagflation.’ Milton Friedman advanced the idea that the Phillips curve could only be valid in the short run because inflation in the long run is always determined by money supply.
Economists began to tweak the original equation to add factors – some of which were not empirical at all but model-based. It became a mess of models based on models, none of which bore any particular relationship to reality. By the early 1980s, the Phillips curve was no longer taken seriously even by academics and seemed buried once and for all. RIP.

This post was published at Wall Street Examiner on June 26, 2017.

Short All Retail, Especially Amazon

‘Bubbles require ever more money to sustain them. Currently that’s not happening. A severe market selloff could come at any moment.’
The quote above is from Fred Hickey, who writes the The High-Tech Strategist newsletter. Mario Draghi, Chairman of the ECB, is under pressure to reduce the Central Banks’ asset purchases (it’s buying corporate bonds, including junk-rated bonds). Apparently some Dutcn legislators presented Draghi with a tulip in reference to the Dutch tulip mania in the 1630’s.
The Bank of Japan and the Chinese Government are working to reduce their money printing. The Fed is still buying mortgages but it seems determined to slowly tighten monetary policy. The problem faced by these Central Planners is that they’ve created a massive global Ponzi scheme that requires an increasing amount of liquidity (money printing + credit expansion) in order to sustain valuation levels. Once they slow down the liquidity spigot, all fiat currency- driven assets (except physical precious metals) are at risk of collapsing.
The Dow finished the week closing down 4 days in row to close essentially unchanged for week (up 9 pts). The SPX also was flat for the week (up 6 pts). It managed to squeak out a slight gain on Friday to avoid 4 consecutive down days. Both the Dow and SPX started out Friday with a big rally from Thursday’s close but faded over the last 2 hours of trading on no apparent news triggers. This for me is a possible indicator that the stock market losing energy.

This post was published at Investment Research Dynamics on June 27, 2017.

Where Is Today’s “Rack” Trade?

Ever have a pairs (spread) trade where both sides were moving against you? Ouch! Been there, don’t want to do that. Well, this is what we call the rack trade (Kudos to Doug Skrypek for coining the term).
You can usually find these rack trades where the fast money is way offside. Where is that today, you ask? Long 10-year T-Notes and short crude oil.
Recall earlier this year, the fast money had record shorts in the T-Note at 2.60 percent and record longs in crude oil and $50-55 bbl.. Betting against that crowd would have made you a lot of money.
Notes and bonds are down today, which we would attribute to Mario Draghi’s comments that deflation is dead and QE is on its way out the door in Europe.

This post was published at Zero Hedge on Jun 27, 2017.

The Pefect Economic Storm Is About To Hit & Most People Are Not Ready – Episode 1317a

The following video was published by X22Report on Jun 27, 2017
The conference board and the gallup polls show that the consumer believes that economy is getting worse and not improving. Case-Shiller reports that the increase of housing prices has slowed. Fannie Mae reports that mortgage apps are declining, the banks confirm this. The central banks have been purchasing tech stock to keep the market up, now it seems they are in trouble and if they go down the entire market crashes. IMF revised the US growth outlook, there review shows that Trumps policies will not happen and the economy now declining and will not improve

Dan Loeb Scores A Quick Victory: Nestle Announces CHF20 Billion Stock Buyback

Two days after Dan Loeb announced he had acquired a $3.5 billion position in the world’s biggest food company, Nestle, making him the 6th largest holder, and going activist with a list of demands including 1) Improving Productivity; 2) Returning Capital to Shareholders; 3) Re-shaping the Portfolio; and, 4) Monetizing its L’Oral Stake, moments ago the company responded by effectively conceding on day 2 of the activist campaign, announcing a plan to buyback CHF20 billion in shares by the end of June 2020, and added that in the future “capital spending will be focused particularly on advancing high-growth food and beverage categories such as coffee, petcare, infant nutrition and bottled water,”
On the buyback, Nestle said that “in the context of low interest rates and strong cash flow generation, share buybacks offer a viable option to create shareholder value. Therefore, as a result of its review, the Board of Directors approved a share buyback program of up to CHF 20 billion, to be completed by the end of June 2020. Should any sizeable acquisitions take place during this period, the share buyback program will be adapted accordingly.

This post was published at Zero Hedge on Jun 27, 2017.

Gold and Silver Market Morning: June 27 2017 – Gold recovers very quickly from dubious sale!

Gold Today – New York closed at $1,244.30 yesterday after closing at $1,255.90 Friday. London opened at $1,250.00 today.
Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
– The $: was weaker at $1.1256 after yesterday’s $1.1199: 1.
– The Dollar index was weaker at 96.97 after yesterday’s 97.25.
– The Yen was weaker at 111.77 after yesterday’s 111.49:$1.
– The Yuan was weaker at 6.8145 after yesterday’s 6.8427: $1.
– The Pound Sterling was slightly weaker at $1.2748 after yesterday’s $1.2751: 1.
Yuan Gold Fix
Shanghai ignored the price action in London and New York. As you can see above, the gold price there has steadily risen in the last three days and adjusted for the gyrations in the Yuan as it suddenly went strong after weakening in the last two days. With both London and New York recovering fast now Shanghai is pulling them up. New York went $16 lower than Shanghai yesterday, but London opened $13.42 lower than Shanghai. If the recovery continues in both London and New York today, we will see more evidence of Shanghai dominating pricing power.
The action on the Yuan corrected our view that thought that the P. B. of C. was allowing the Yuan to weaken. Its sudden strength showed they do not want a weaker Yuan at all and will act accordingly. Those positioning in a weaker Yuan paid a hefty price. We think such actions by them discourage speculative action by punishing speculators with losses.

This post was published at GoldSeek on 27 June 2017.

Trump “Increasingly Frustrated With China” Over North Korea, Trade: Reuters

Two weeks after Trump’s ominous “China “tried and failed” to contain North Korea tweet, the US president appears to be getting closer to that default condition in US-China relations which many had anticipated from day one: a not particularly cooperative one. Here’s Reuters:
TRUMP IS INCREASINGLY FRUSTRATED WITH CHINA OVER NORTH KOREA, TRADE DIFFERENCES-SENIOR ADMINISTRATION OFFICIALS TRUMP DROPPED BY MEETING LAST WEEK BETWEEN SENIOR CHINESE OFFICIAL AND WHITE HOUSE ADVISERS KUSHNER, MCMASTER – SENIOR ADMINISTRATION OFFICIAL TRUMP IS CONSIDERING TOUGHER STANCE ON TRADE WITH CHINA; STEEL TARIFFS ARE AMONG OPTIONS-SENIOR ADMINISTRATION OFFICIALS The report follows last night’s news that the United States plans to place China on its global list of worst offenders in human trafficking and forced labor, a step that according to Reuters could aggravate tension with Beijing that has eased under President Donald Trump.

This post was published at Zero Hedge on Jun 27, 2017.

BofA Institutional Clients Sell Tech Stocks For 3rd Straight Week

As tech stocks continue to hit new all time highs, the general assumption is that they are being, well, bought by the broader population even if non-growth stocks remain largely shunned. Well, at least according to Bank of America that is not happening. And it’s not just tech stocks.
In the latest client flow report from BofA’ Jill Hall, we learn that last week, during which the S&P 500 climbed 0.2%, BofAML clients were net sellers of single stocks for the third consecutive week, although the number was almost offset by net buying of ETFs. Institutional clients were the biggest sellers and have now sold stocks the last two weeks, while private clients were also sellers following two weeks of buying. Hedge funds were net buyers for the second consecutive week. Clients bought mid caps for the third week in a row, and sold both large and small caps. Buybacks by corporate clients slowed ahead of quarter-end, and continue to track below typical June levels.
As for Tech, it appears thatit goes up the more traders sellit:

This post was published at Zero Hedge on Jun 27, 2017.

Warren Buffett Says America Is “So Rich” It Can Afford Single Payer

In the latest example of a multi-billionaire “knowing” what is best for the average American, Berkshire founder Warren Buffett told PBS that UK-style single-payer healthcare would be the best system for the US.
While Buffett admits that he’s ‘no expert’ on health care, that apparently hasn’t deterred him from broadcasting his amateur opinion far and wide. Buffett, the world’s fourth-richest man with an estimated net worth of $73.3 billion, says that America is ‘such a rich country’ that it ‘can afford’ to provide health care to all its citizens.
‘”With my limited knowledge, I think that probably [single payer] is the best system. Because it is a system, we are such a rich country, in a sense we can afford to do it. But in almost every field of American business, it pays to bring down costs. There’s an awful lot of people involved in the medical – the whole just the way the ecosystem worked, there was no incentive to bring down costs.”


This post was published at Zero Hedge on Jun 27, 2017.