"Only through a historical perspective can we fully understand the profound developments of our time and glean, perhaps only dimly, where they are taking us. One thing is clear: they are taking us into a new era. The only question is how much disruption, chaos and bloodshed will attend the transition from the Old Order to whatever emerges to replace it."
Putin Tells Merkel "Ukraine On The Verge Of A Civil War" As Germany Agrees To Re-Sell Russian Gas To UkraineSubmitted by Tyler Durden on 04/15/2014 19:36 -0400
A day after Putin called Obama to warn him that only the US president can prevent bloodshed in Ukraine - something which Obama failed at based on this morning's reports out of east Ukraine - German Chancellor Angela Merkel had a follow up phone call with the Kremlin a few hours ago, in which Putin told her that "The sharp escalation of the conflict puts the country, in essence, on the verge of a civil war".
Almost 10 million out of 43.7 million part-time workers in the European Union were under-employed in 2013. As Bloomberg Brief's Niraj Shah notes, based on Eurostat's Labour Forces Study, a record 72 percent of Greek part-time workers wished to work more hours compared with 4.2 percent in the Netherlands. As we explained in great detail here, the Greek "recovery" is a mirage and these numbers do not lie.
Another day ending in "y" means another day in which Putin plays the G(roup of most insolvent countries)-7 like a fiddle.
European partners have left Russia with "no alternative" but to halt supplies of gas to Ukraine and Europe, according to a letter from Russian president Putin to European leaders. The remarks, as Reuters reports, were the strongest sign yet that Russia could curtail supplies of gas to (and through) Ukraine affecting supplies of gas to Europe (as they fear Ukraine will siphon off Russian gas meant for Europe). Russia is getting angry, and an angry Russia can simply turn the gas switch to the "Off" position and hibernate for a bit.
Since 2007, when the financial crisis touched down across the world, the proportion of people going hungry in Europe has soared, according to the OECD. As Bloomberg's Niraj Shah notes, the number has doubled in Greece alone from 8.9% in 2007 to almost 18% currently unable to afford food. Across the European Union, the proportion of people going hungry ranges from 4.6% in Germany to over 30% in (ironically) Hungary. However, before one gloats at the weakness in Europe and the cleanest dirty shirt the US pretends to be, at 21.1% of Americans unable to afford food, only Hungary and Estonia are in worst shape... USA USA USA...
No Yen carry levitation overnight and, naturally, no Spoo levitation, with the futures struggling following the Nikkei's -1.7% drubbing (pushing it back to nearly -10% on the year) and down well from Friday's closing print. Risk averse sentiment following on from lower close on Wall Street on Friday, NASDAQ 100 (-2.7%) marked the worst session since 2011 dominated the price action in Asia, with JGBs up 32 ticks and the Nikkei 225 index (-1.7%). The Shanghai Composite was closed for a market holiday. Overall, stocks in Europe have recovered off lows but remain in negative territory (Eurostoxx50 -0.64%), with tech sector under performing in a continuation of sector weakness seen in the US and Asia, however Bunds remained under pressure as speculation of QE by ECB continued to undermine demand for core EU bonds. No major tier 1 releases scheduled for rest of the session, with focus likely turning to any policy related comments from ECB’s Weidmann, Constancio and Fed’s Bullard.
So, they might be on the opposite side of the Atlantic Ocean, but the Europeans and the Americans have one thing very much in common.
The risk that creditors, savers and bondholders, rather than taxpayers will bear the brunt of rescuing a bank in trouble form part of the first credit ratings given to 18 of Europe's biggest banks yesterday by new ratings agency, Scope.
- Why did Yellen use criminals in her employment case studies? Hilsenrath explainz (Hilsenrath)
- GM avoided defective switch redesign in 2005 to save a dollar each (Reuters)
- Xuzhou Zhongsen Said to Avert Bond Default on Guarantor Aid (BBG)
- France's New Finance Minister Faces Fiscal Challenge (WSJ)
- The magic is gone: Draghi’s Attempt to Talk Down Euro Lost on Traders (BBG)
- Another John Kerry smashing success: U.S. Gambit on Mideast Peace Talks Falters (WSJ)
- Combat-Ready China Military Seen as Xi’s Goal in Graft Battle (BBG)
- Huge earthquake off Chile's north coast triggers tsunami (Reuters)
- Pressure rises on Gross as investors pull $3.1 billion from Pimco's flagship fund (Reuters)
Quiz - 1. How much natural gas is the United States currently extracting?
(a) Barely enough to meet its own needs
(b) Enough to allow lots of exports
(c) Enough to allow a bit of exports
(d) The United States is a natural gas importer
"We should hang our heads in shame," UKIP's Nigel Farage blasted during last week's debate with Britain's Deputy PM Nick Clegg, adding that it was the British government that had encouraged the EU to pursue "imperialist, expansionist" ambitions in Ukraine. Clegg's comments on how the EU had turned "fascist dictatorships" in eastern Europe into democracies were met with derision from Farage who exclaimed, "we’ve given a false series of hopes to a group of people in western Ukraine and so geed up were they that they, actually, toppled their own elected leader."
London’s cobbled and quaint streets are no longer paved with gold as their fictitious character, Dick Whittington might have once believed in fairytale land. But, they certainly do attract the golden billionaire boys from around the world these days as London gets to the top position in the places to have a pad; but you don’t necessarily need to live there!
Over the past month, there has been a lot of "Hilsenrathing", or the biased media urgently "explaining" to the Western world, just what Russia's actions mean both tactically in response to Ukraine developments, and strategically as part of Putin's global perspective. So instead of relying on the broken media narrative which serves merely to perpetuate US corporate interests and rally the public behind this or that company's geopolitical interests, here, straight from the horse's mouth, in this case Russian foreign minister Sergey Lavrov, how Russia sees itself in a world in which it is allegedly "isolated", and "threatening Ukraine" with further invasion but more importantly, how the Russians view the rapidly changing global balance of power, in which post-USSR Russia has emerged from the backwood of slighted nations and stormed to the stage of nations who dare defy the former global hegemon, the US.
In a TV address to his divided nation, Ukraine's PM Yatsenyuk stunned the people by first suggesting heating prices would rise gradually, then confirming a plan that will see prices rise 100% in the next 2 years (and almost 200% by 2017) as the cost of imported Russian gas is expected to be around $500 (up from the current $84). This standard of living crushing move was then followed by tougher capital controls, restricting cash purchases to around $1300 per person per day after the Central bank basically admitted "amid a tense situation in the money markets" it was broke. And all of this comes on the heels of what can only be described as a vague pro-forma comment by US and EU governments over the riots by the "Right Sector" ultranationalists that clearly did not want to upset the state-sponsored thugs too much.