A second senior airline industry source has revealed his belief that there is some sort of conspiracy behind the disappearance of Malaysia Airlines flight MH370. As The Herald Sun reports, Emirates president and CEO Sir Tim Clark made world headlines in October when he revealed his doubts about the fate of the missing plane, which disappeared early in the morning of March 8 this year. Now a second senior airline industry source has voiced his doubts about the fate of the plane, with the even wilder claim that the Boeing 777 may have been shot down by US military personnel who were fearing a September 11-style attack on the US Navy base on Diego Garcia.
There are two key events driving overnight risk prices: first, there is the Bloomberg story that "China Offers Russia Help With Currency Swap Suggestion", which was previously covered extensively here a week ago, but now that the algos have official confirmaiton they have sent the Ruble shorts into a panic short squeeze, with the USDRUB tumbling another 5% as of latest. The other key development pushing oil prices modestly higher again, is yesterday's speech by Saudi oil minister Ali al-Naimi who "expressed confidence prices will pick up", however not due to a drop in supply - because he made it very clear OPEC will never cut output and instead will wait for the high cost producers to exit the game - but amid improved economic growth.
"The oil-price weapon, in the face of the terminal enfeeblement of the Obama administration, is the last recourse before the Saudis and Turks, whatever their autocues of racist rhetoric, invite Israel to smash the Iranian nuclear program from the air."
While the current episode of Russian geopolitical and economic turmoil may seem significant, the following chart from Goldman Sachs shows the tempestuous time the nation has had over the past 150 years...
- Icahn, Paulson Suffer Large Losses as Energy-Related Bets Sour (WSJ)
- Oil Investors Keep Betting Wrong on When Market Will Bottom (BBG)
- U.S. to sell final $1.25 billion shares of Ally Financial from bailout (Reuters)
- Ally Financial Gets Subpoena Related to Subprime Automotive Finance (WSJ)
- Russia's parliament rushes through bill boosting banking capital (Reuters)
- How a Memo Cost Big Banks $37 Billion (WSJ)
- ECB considers making weaker euro zone states bear more quantitative easing risk (Reuters)
- How the U.S. Could Retaliate Against North Korea (BBG)
The financial media is euphoric because stocks are rallying. But stocks are ALWAYS the last to “GET IT.” The currency markets (which trade $5 trillion per day) realize that something MASSIVE is underway. And it’s only just beginning.
This is it, folks; this is the endgame right in front of our faces. The year of 2014 is the new 2007, with all the negative potential but 100 times more explosive going into 2015. Our nation has wallowed in slowly degrading financial conditions for years, hidden by fake economic statistics and manipulated stock prices. All of it has been a prelude to a much more frenetic and shocking event. We expect a hailstorm of geopolitical crises over the next year to provide cover for the shift away from the dollar. Ultimately, the death of the dollar will be hailed in the mainstream as a “good and necessary thing.” They will call it “karma.” They will call it “progress.” They will even call it “decentralization” and a success for the free market. But it will not feel like a positive development for the American public, who will suffer greatly as the dollar crumbles.
- Citigroup is pleased: Obama signs $1.1 trillion government spending bill (Reuters)
- Oil holds below $60 as OPEC, Russia keep pumping (Reuters)
- 5 Things to watch at the December Fed Meeting (WSJ)
- Russia Tries Emergency Steps for 2nd Day to Stem Ruble Rout (BBG)
- Ruble crisis could shake Putin's grip on power (Reuters)
- Apple Curbs Russia Sales as McDonald’s Lifts Prices (BBG)
- Traders Betting Russia’s Next Move Will Be to Sell Gold (BBG)
- China Warms to a More Flexible Yuan (WSJ)
Sydney Hostage Standoff Update: 5 Escape, Gunman Identified; Demands Islamic State Flag, Conversation With Prime MinisterSubmitted by Tyler Durden on 12/15/2014 08:27 -0400
The Sydney hostage standoff at the Lindt chocolate store on Martin Place continues well into its 13th hour, where the latest news is that five people have escaped with others still held inside as neighboring blocks remain locked down, authorities said ABC reports. The first three people who fled sprinted out of the Lindt Chocolat Cafe about six hours into the standoff, while two women wearing aprons frantically ran from a side exit and into the arms of heavily-armed SWAT team police officers waiting outside. At the same time, media personalities said they received calls from hostages during the standoff. It remains unclear exactly how many people remain inside the cafe.
Up To 40 Hostages In Sydney Financial District Coffee Shop, Jihadists Suspected; US Consulate Evacuated - Live FeedSubmitted by Tyler Durden on 12/15/2014 00:58 -0400
LINDT AUSTRALIA CEO STEVE LOANE: PROBABLY ABOUT 30 CUSTOMERS, ABOUT 10 STAFF WORKING IN SYDNEY CAFE TODAY
"We have moved to a footing of a terrorism event," -NSW Police Commissioner Andrew Scipione
Only weeks after Australia broke up a plan by ISIS to publicly behead a member of public, reports suggest 2 gunmen are holding up to 40 hostages at a Lindt coffee-shop in Sydney, Australia. The terrorists have shown a black jihadist flag - which is not an IS flag - and has paraded the hostages at the windows. The coffee shop is directly across the street from the Reserve Bank of Australia - which is under lockdown.
The central banks are now out of dry powder - impaled on the zero-bound. That means any resort to a massive new round of money printing can not be disguised as an effort to “stimulate” the macro-economy by temporarily driving interest rates to “extraordinarily” low levels. They are already there. Instead, a Bernanke style balance sheet explosion like that which stopped the financial meltdown in the fall and winter of 2008-2009 will be seen for exactly what it is—-an exercise in pure monetary desperation and quackery. So duck and cover. This storm could be a monster.
- New Normal headlines: Global stocks up on hopes of China policy easing (Reuters)
- China inflation eases to five-year low (BBC)
- U.S. Lawmakers Agree on $1.1 Trillion Spending Bill (WSJ)
- U.S. Braced for Blowback as CIA Report Lays Bare Abuses (BBG)
- CIA tortured, misled, U.S. report finds, drawing calls for action (Reuters)
- CIA Made False Claims Torture Prevented Heathrow Attacks (BBG)
- Oil Resumes Drop as Iran Sees $40 If There’s OPEC Discord (BBG)
- OPEC Says 2015 Demand for Its Crude Will Be Weakest in 12 Years (BBG)
- Greek yield curve inverted as politics raise default fears (Reuters)
Having secured for himself the most expensive suite of all the leaders at the G-20 meeting in Brisbane, Australia on November 15th, The Daily Mail reports that President Obama's 4,096-room entourage of security guards and assistants cost taxpayers a stunning $1.732 million for the one-night-stand against Putin. "Some folks are being ripped off..."
PBOC Tries To Pop Equity Bubble, Tightens FX & Slashes Collateral/Margin Availability; Yuan Crashes Most Since 2008Submitted by Tyler Durden on 12/08/2014 23:29 -0400
Unlike the Federal Reserve - which openly encourages speculative wealth creation/redistribution and has never seen an equity bubble it didn't believe was contained - the PBOC appears, by its actions tonight, to be concerned that things have got a little overheated in its corporate bond and stock markets as hot money ripped into the nation's capital markets on hints of further easing and QE-lite a few months ago. In a show of force, the PBOC simultaneously fixed CNY significantly stronger (implicit tightening) and enforced considerably stricter collateral rules on short-term loans/repos. With Chinese stocks concentrated is even fewer hands than in the US (and recently fearful of the surge in margin trading), it appears the PBOC is trying to stall the acceleration is as careful manner as possible. The result, as Bloomberg notes, is a major squeeze in CNY (biggest drop since Dec 2008), interest-rate swaps ripped higher along with corporate bond yields, and most Chinese stocks sold off (with two down for every one up) though the latter is stabilizing now.