November sales of U.S. American Eagle gold coins are on track to be the best in 14 years as uncertainty surrounding the U.S. fiscal cliff and the election of President Obama led to safe haven buying. Buyers timing the market also increased coin sales by buying during sharp price movements that occurred in the beginning and end of November, coin dealers noted. Bullion dealers in the U.S. report an influx of high net worth individuals that are buying gold coins in volume and taking physical possession of their bullion. Month to date 131,000 ounces of American Eagles sold, that tripled last year's November sales and is the strongest November since 1998, data from the U.S. Mint's website shows. In October, the U.S. Mint sold 59,000 vs 50,000 ounces the previous year, while November marked its 2nd successive monthly rise. Coin banks have come in to buy the stock as the mint usually ends 2012 coin production in early December so it can begin minting the 2013 coins.
- Union solidarity rubs up against slow economy in LA port strike (Reuters)
- Geithner predicts Republicans will allow higher tax rates (Reuters). And "no risk" of a US downgrade, "no risk"
- Geithner takes hard line on fiscal cliff (FT)
- Narrowing LDP lead points to Japan post-election confusion (Reuters) - not to mention, USDJPY plunges if LDP loses
- Vietnam Says China Must Avoid Trade Weapon in Maritime Spat (Bloomberg)... and real one, one hopes
- Greece unveils bond buyback plan (FT)
- ECB Can’t Deliver Spain Spread Rajoy Wants, Wellink Says (Bloomberg)
- UK’s euro trade supremacy under attack (FT)
- Merkel Signals Debt Write-Off Possible as Buyback Begins (Bloomberg)
- ECB's Noyer Says Bond-Buying Plan 'Is Bearing Fruit' (WSJ) - as long as just plan, and not execution.
Greece Announces Terms Of Bond Buyback, Repuchase Prices Higher Than Government Indicated PreviouslySubmitted by Tyler Durden on 12/03/2012 07:54 -0400
It may still be unclear just where Greece will get the ~€10 billion in cash needed to buyback up to 20 various tranches of the post-restructuring GGB2 bonds (full CUSIP list below), but what the Greek Public Debt Management Agency announced today was the sound of money in the ears of the hedge funds that had bought up Greek bonds in the low teens several months ago, if not so much Greek banks many of whom may still have this debt market at up to par, as no matter which particular group of taxpayers ends up funding this "buyback" - a process that will have zero benefit to the Greek population who will see not one penny of the buyback proceeds (as described before) - it is the hedgies that benefit, who also have clearly controlled the process from the beginning as the announced tender prices were well above the levels Greek bonds eligible under the buyback closed at on Nov. 23, even though Greece's lenders last week said they did not expect the bonds to be purchased for more than the closing price on that date. In other words, the Greek government lied to its people again for the benefit of wealthy financial interests yet again.
Several months after the world rejoiced following the 2011 Arab Spring took the world by storm, and replaced one dictator in the MENA region with what appears to be another now that the US-endorsed "democratically elected" Mursi is better known as Morsillini, having granted himself "temporary" dictatorial powers, we warned that it was only a matter of time before the Arab Spring turns into an Arab Thermodorian Reaction, aka an Arab Counterrevolution. And this time the world is devoid of such romantic concepts as a season of the year to tie this logical reaction to, as it now appears certain that this is going to be a long and drawn out process, lasting not only longer than just one season, but stretching years. Sure enough, after Egypt succumbed to the inevitable power vacuum response, it is now the turn of the place that started it all: Tunisia, where the local national guard is firing against its own people once more.
EU Allowing Rating Agencies To Be Sued For Errors Should Backfire Spectacularly - Cause Massive Downgrades Across The Continent!Submitted by Reggie Middleton on 11/30/2012 12:59 -0400
If common sense was truly common, the rating agencies should get the shit sued out of them unless & until they start downgrading EU countries en masse, and quite quickly. Read this & you'll have all you need to start suing! Hmmm, the best laid plans....
When no more money flows in, to fund outflows, then the jig is up for the pension fund ponzi. This, as evidenced by the 'punching, kicking, and tearing at clothes' that a Greek pension fund manager endured recently, is exactly what has begun in Greece. As Reuters reports, the fund manager "enraged" here audience when she asked the Greek journalists to 'double their contributions' to their social security fund, and spent the night in hospital for her efforts to keep the ponzi alive. It was a brutal sign of the fury many Greeks feel at the way the country's debt crisis has dashed hopes of a comfortable old age. As New Democracy's leader noted: "From July 2010 it was obvious that a debt restructuring would be inevitable. While foreign banks were unloading their Greek government bonds, no one moved to tell Greek pension funds to do something, that a haircut was coming." Under a law passed in 1997 and refined in 2007, pension funds have to place 77% of any surplus cash in a pool of 'common capital' which must be invested only in Greek government bonds or Treasury bills (T-bills). So the PSI saved German and French banks but crushed Greek pensioners...
- Turns out no free lunch after all: Greeks rage against pension calamity (Reuters)
- Athens banks told of debt buyback ‘duty’ (FT)
- U.N. Gives Palestinians 'State' Status (WSJ)
- Obama's Cliff Offer Spurned (WSJ)
- Republicans Reject Obama Budget as He Sells It to Public (Bloomberg)
- Macau Gangster Who Missed Boom to Be Freed After 14 Years (Bloomberg)
- China Economic Optimism Returns in Poll as Xi Beats Hu (Bloomberg)
- Spain May Escape European Bailout, Former ECB Board Member Says (Bloomberg)... but they won't
- After a bashing, BOJ weighs "big bang" war on deflation (Reuters)
- Recession Left Baby Bust as U.S. Births Lowest Since 1920 (Bloomberg)
- Japan unveils second Y880bn stimulus package (FT)
Just as the ever soaring Argentina default swaps indicated that a technical default for the Latin American country - one which would eventually morph into a second full blown default in a decade - was all but inevitable (and previews extensively here), the twisting and turning multi-year story of Argentina vs its "vulture" holdout creditors got its latest dramatic installment last night. Shortly after market close, the Second Circuit court of appeals once again override last week's critical order by Judge Griesa that Argentina promptly pay everyone or face monetary exclusions, lumping together any and all agents who facilitated the ongoing isolation of the holdout hedge funds from the broader group which in Griesa's view had pari passu status throughout.
As ever, it is very difficult to pinpoint exactly why gold and all precious metals fell in price. Interestingly, oil fell by even more - NYMEX crude was down by 1% and was down by more than 1.7% at one stage. The CME Group, which operates the U.S. COMEX gold futures market, said Wednesday's plunge in gold was not the consequence of a "fat finger" or a human error. The trading wasn’t even fast enough to trigger a pause on Globex, said CME. One thing that we can say for certain was that there was massive, concentrated selling as the New York stock markets opened with some 35,000 lots sold which is equivalent to 3.5 million ounces and saw the price fall from $1,735/oz to $1,711/oz between 0825 and 0830 EST. One sell order alone was believed to be 24 tonnes or 770,000 troy ounces. Incredibly there was 35% daily volume in just 60 seconds. The selling, like all peculiar, counter intuitive, sharp sell offs in recent months, was COMEX driven with COMEX contracts slammed leading to further stop loss selling. The selling may have been by speculative players on the COMEX. It may have been algo or computer trading driven or tech selling – although this is less likely. Informed commentators questioned the nature of the selling as a large institutional COMEX trading entity would normally gradually sell a position of this size in order to maximise profit.
- As this has been priced in since September 13, it should come as no surprise to anyone: Fed Stimulus Likely in 2013 (Hilsenrath)
- Bowles Says Fiscal Cliff Deal Unlikely by End of Year (Bloomberg)
- Argentina debt repayment order frozen (FT)
- Obama Is Flexible on Highest Tax Rates (WSJ)... not really
- Geithner deployed for fiscal cliff talks (FT)
- Audit firms Deloitte and KPMG sued in HP's Autonomy acquisition (Reuters)
- Euro-Zone Budget Proposal Is Unveiled (WSJ)
- EU Nations Clash on Thresholds for Direct ECB Oversight (Bloomberg)
- LDP leader Abe: BOJ must ease until inflation hits 3 percent (Reuters)
- SNB’s Jordan Says High Swiss Franc Burdens Many Companies (Bloomberg)
- EU to launch free trade negotiations with Japan: EU officials (Reuters)
Guess which country German officials claim will be a bigger problem than Spain or Greece? Answer: France.
Currency wars are set to intensify as the US Senate is considering new sanctions against Iran that would prevent Iran getting paid for its natural resource exports in gold bullion. The new sanctions aimed at reducing global trade with Iran in the energy, shipping and precious metals sectors may soon be considered by the U.S. Senate as part of an annual defense policy bill, senators and aides said on Tuesday, according to Reuters. The sanctions would end "Turkey's game of gold for natural gas," Reuters reported a senior Senate aide as saying, referring to reports that Turkey has been paying for natural gas with gold due to sanctions rules. The legislation "would bring economic sanctions on Iran near de facto trade embargo levels with the hope of speeding up the date by which Iran's economy will collapse," the aide said. Last week Turkish Deputy Prime Minister Ali Babacan has revealed a critical detail about a widely discussed Turkey-Iran gold trade boom, disclosing that the Islamic republic was exporting gas to Turkey in exchange for payment in gold bullion. It is also reported that Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey’s natural gas purchases, the deputy prime minister said at midnight Nov. 22 during a parliamentary session. Iran cannot transfer monetary payments to Iran in U.S. dollars due to U.S sanctions against the country’s alleged nuclear weapons program. Iran has been forced to shun the international financial system and the petrodollar as means of payment and turn to the international gold market to ensure it gets paid for its natural resources in order to prevent absolute economic collapse.
- Egypt protests continue in crisis over Mursi powers (Reuters)
- Greece hires Deutsche, Morgan Stanley to run Greek voluntary debt buy back, sources say (Kathimerini)
- Executives' Good Luck in Trading Own Stock (WSJ)
- Hollande Presents Mittal Nationalization Among Site Options (Bloomberg)
- Eurozone states face losses on Greek debt (FT)
- Spain's rescued banks to shrink, slash jobs (Reuters)
- EU Approves Spanish Banks' Restructuring Plans (WSJ)
- At SAC, Portfolio Managers Are Treated Like Stocks (BBG)
- China considers easing family planning rules (Reuters)
- European Court to Rule Over ECB’s Secret Greek File (BusinessWeek)
- And another top tick indicator: Asia Funds Buy London Offices in Bet Volatility Is Past (Bloomberg)
- Harvard Doctor Turns Felon After Lure of Insider Trading (BBG)
- Zucker Is Lead Candidate to Head CNN (WSJ) - it's not true until CNN misreports it
- Iran "will press on with enrichment:" nuclear chief (Reuters)
Germany now has a formal working group assessing the cost of a Grexit. Even large US-based multinationals are implementing contingency plans for a Grexit. The list includes JP Morgan, Bank of America Merrill Lynch, Visa, PricewaterhoursCoopers, Boston Consulting Group, Juniper Networks, and others.
CME Group declared a force majeure at one of its New York precious metals depositories yesterday, run by bullion dealer and major coin dealer Manfra, Tordella and Brooks (MTB), due to “operational limitations” posed by Hurricane Sandy. MTB has “operational limitations” following Hurricane Sandy and can’t load gold bullion, platinum bullion or palladium bullion, CME Group Inc., the parent of the Comex and New York Mercantile Exchange, said today in a statement. MTB must provide holders with metal at Brinks Inc. in New York to meet current outstanding warrants in relevant delivery periods with compensation for costs, Chicago-based CME said. The CME said that MTB will not be able to deliver metal as the lower Manhattan company deals with "operational limitations" almost a month after the arrival of Hurricane Sandy. MTB is one of five depositories licensed to deliver gold against CME's benchmark 100-troy ounce gold contract, held 29,276 troy ounces of gold and 33,000 troy ounces of palladium as of Nov. 23, according to data from CME subsidiary Comex. In a notice to customers on Monday, CME declared force majeure for the facility, a contract clause that frees parties from liability due to an event outside of their control.