Bonds & Interest Rates

For October, U.S. consumer spending was up more than expected while inflation remained flat. Consumer price for the last month showed a decline, which was largely unexpected; however, it will provide some room to Federal Reserve to continue with its current pace of bond purchases. Rise in consumer spending across a range of consumer good signals positive momentum for the U.S. economy in the fourth quarter.

Consumer spending may limit downside risk

According to the data from the Commerce Department, for October, retail sales or core sales excluding automobiles, gasoline and building materials was up 0.5% versus 0.3% in September. Retail sales, which most closely reflect consumer spending, were expected to rise 0.3% by the economists polled by Reuters.

Better numbers of core retail sales indicate that the consumer spending, which touched a two year low in the third quarter, may limit the downside risk to the economy growth, in the coming quarters.

A senior analyst at Moody’s Analytics told Reuters “Overall this suggests the consumers are supporting the current recovery.”

Housing market slowing

On one hand, where consumer spending is showing hopes of better growth, the housing market, which has been driving economic growth, showed signs of slowing down.

As per the data from the National Association of Realtors, sales of existing homes were down 3.2% in October while the median price of the previously owned home increased 12.8% from last year. Rising home values and increasing stock market prices are providing support to the consumer spending.

Inflation may worry officials

In a separate report, from the Labor Department, the Consumer Price Index was down 0.1% owing to a sharp decline in gasoline prices. For September, the index was up 0.2%.

CPI, for a period of twelve months ending October, was up 1%, which is the smallest gain since October 2009. Economist expected the consumer prices to be unchanged for September. Excluding energy and food component, core CPI was up only 0.1%, for the third time in a row.

Core CPI, for the past 12 months, increased 1.7%, which is similar to the last months rise. Low inflation indicates that the Fed may carry on with its monthly $85 billion bond buying program for few more months.

Millan Mulraine, senior economist at TD Securities in New York told Reuters “”The inflation backdrop continues to be supportive to the Fed’s ultra-accommodative policy stance.”

ComEX Halts Gold Trading Twice In One Day After $200 Million Sell Trades

Today’s AM fix was USD 1,248.50, EUR 929.64 and GBP 775.76 per ounce.
Yesterday’s AM fix was USD 1,271.50, EUR 939.69 and GBP 787.11 per ounce.

Gold fell $28.70 or 2.25% yesterday, closing at $1,244.70/oz. Silver slid $0.47 or 2.31% closing at $19.85/oz. Platinum dropped $22.80 or 1.6% to $1,389.00/oz, while palladium fell $9.75 or 1.4% to $708.25/oz.

Gold was trading near four month lows today after its biggest drop in seven weeks yesterday. Another bout of peculiar concentrated selling led to Comex halting trading in December gold futures twice yesterday, the fourth time in less than 3 months.

goldcore bloomberg chart1 21-11-13-1

Gold in U.S. Dollars  and Suspensions Of COMEX Gold Trading – 3 Month (Bloomberg)

….read more HERE

Dropbox Planning Fresh Funding, Valuing It Worth $8 Billion [Report]

Dropbox Inc, a file-sharing and storage start-up, is planning to raise $250 million in additional funding. The funding would take the value of the fast growing company to over $8 billion, as reported by Bloomberg Businessweek. Dropbox joins the elite list of tech start ups The six-year-old company joins the list of the Silicon Valley…

….full article HERE

I think the gold “dumping” has reached an extreme in more ways than one…

http://blogs.marketwatch.com/thetell/2013/11/20/1-million-in-gold-found-in-airplane-toilet/

Peter Grandich

Athletes & Business Alliance www.scoreforbusiness.com

Trinity Financial, Sports & Entertainment Management Co. www.trinityfsem.com

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OIl & Gas: The Lomonosov Ridge Mystery”

OIl & Gas: “All Hell is Breaking Loose in the Arctic”

On days like today, I don’t have to spend much time deciding which of the dozens of teaser pitches we receive to cover — it’s unanimous, Gumshoe readers are crying out for a solution to the latest pitch from Dr. Kent Moors.

Moors is an energy expert and Duquesne professor, and he sells the expertise he’s gained as an energy consultant over the years by turning it into stock ideas that are sold through both an entry level newsletter (Energy Advantage) and an “upgrade” letter for those folks who want his very best super-secret ideas called Energy Inner Circle.

That basic strategy is not, of course, unique to Dr. Moors or to his publisher, Money Map Press — every newsletter publisher’s goal is to break even on the $39 subscriptions and use those people as the marketing pool for their super-lucrative $300 or $1,200 or $5,000 newsletters. From the comments I get this makes readers crazy (“I already paid for this guy’s information that he promised would be awesome, why is he now offering to sell me something better for a lot more money?”), but it also must work great … because everyone does it.

But anyway, most of you don’t care about this “behind the veil” stuff about newsletterland — you just want the idea, right? So let’s try to ID it for you.

Dr. Moors’ pitch is based on the Russian push to dominate the next wave of oil discovery and production in the Arctic — they got a lot of attention for planting their flag on the sea bed at the North Pole six years ago, part of a global dispute over territory in the arctic, territory that is becoming open to energy exploration and additional sea traffic partly because of receding ice and partly because of new technologies. Norway, Denmark, Canada, the US and several other countries with arctic borders are disputing Russia’s claim that it “owns” the 2/3 or so of the subsea arctic that extends North of their land mass, and the current international agreement is for a 200 mile “economic zone,” so the political squabbling will no doubt continue for a long time — and become much more vociferous if natural resources can feasibly be extracted. Moors reports the claim that 20% of the world’s oil and gas reserves are waiting to be discovered or developed deep under the northern ice, and it’s a huge area so, well, who knows?

But his big claim for this pitch is that the other pundits who recommend the arctic explorers and the oil majors who are staking claims off of Greenland or Alaska or north of Russia or Canada aren’t the best idea for making money — largely because it will take years and years before any of this bears fruit.

No, he says that the best way to profit immediately is by buying the subsea pipeline expert that can build the infrastructure for this arctic work.

Here’s a taste of the big picture tease, just to get you up to speed:

Screen Shot 2013-11-21 at 4.44.37 AM

…..read more HERE (Warning, its long)