- Ukraine's leaders say have U.S. backing to take on 'aggressors' (Reuters)
- Goldman Sachs Stands Firm as Banks Exit Commodity Trading (BBG)
- Obama reassures Japan, other allies on China as Asia trip begins (Reuters)
- China Challenges Obama’s Asia Pivot With Rapid Military Buildup (BBG)
- Google’s Stake in $2 Billion Apple-Samsung Trial Revealed (BBG)
- No bubble here: Numericable Set to Issue Record Junk Bond (WSJ)
- 'Bridgegate' scandal threatens next World Trade Center tower (Reuters)
- Supreme Court Conflicted on Legality of Aereo Online Video Service (WSJ)
- Barclays May Cut 7,500 at Investment Bank, Bernstein Says (BBG)
Bloomberg Television’s “On The Move Asia” had a fascinating interview with Albert Cheng, the World Gold Council’s Managing Director, Far East. He discussed China’s gold market and what’s driving the country’s demand with Rishaad Salamat.
Since 2003, we have pointed out how China’s liberalization of its gold market would have enormous ramifications for the global gold market in terms of a huge new source of demand and would ultimately lead to higher prices in the long term.
On Friday Russia’s parliament voted to write off roughly 90 percent of North Korea’s debt as Moscow seeks to build a gas pipeline through the Hermit Kingdom. Moscow has been pushing for the Korean gas pipeline and railway for years as part of its strategy to diversify its energy markets away from Europe and toward Asia. This general goal has gained new urgency in the wake of Russia’s clash with the West over the Ukraine and Crimea.
It seems the truce "deal" is well and truly dead...
600 U.S. TROOPS HEADING TO EUROPE FOR EXERCISES: PENTAGON
U.S. AIRBORNE TROOPS GOING TO POLAND, LITHUANIA, LATVIA,ESTONIA
U.S. MILITARY EXERCISES ARE IN RESPONSE TO UKRAINE CRISIS:KIRBY
MORE MILITARY EXERCISES 'COMING THROUGH' NATO: PENTAGON
The question now, of course, is - what will Putin do in response to this action?
In yet another surprising 'loss' for the current administration, RT reports a three-judge 2nd Circuit Court of Appeals overturned a previous ruling that would have allowed the federal government to keep the rationale behind drone killings classified. The US Department of Justice must turn over important details from a key "White Paper" which the government has used to justify targeted killings across the Middle East. While the document was no secret (with parts leaked before Brennan's swearing in as CIA chief last year), the judges ruled that "whatever protection the legal analysis might once have had has been lost be virtue of public statements of public officials and official disclosure of the DOJ White Paper." As the ACLU stated, "This is a resounding rejection of the government’s effort to use secrecy, and selective disclosure, as a means of manipulating public opinion about the targeted killing program."
- Ukraine Accord Nears Collapse as Biden Meets Kiev Leaders (BBG)
- Novartis reshapes business via deals with GSK and Lilly (Reuters)
- Moscow Bankers See Fees Slide 67% as Ukraine Crisis Grows (BBG)
- Why ECB's QE will be Ukraine's fault: Draghi Gauges Ukraine Effect as ECB Tackles Low Inflation (BBG)
- As Phone Subsidies Fade, Apple Could Be Hurt (WSJ)
- Amazon Sales Take a Hit in States With Online Tax (BBG)
- Ford Speeds Up Succession Plan: Mark Fields, Auto Maker's No. 2, Seen Replacing Alan Mulally as CEO Ahead of Schedule (WSJ)
- U.S. force in Afghanistan may be cut to less than 10,000 troops (Reuters)
- IBM End to Buyback Splurge Pressures CEO to Boost Revenue (BBG)
The charts below gives an indication as to the terrifying magnitude and speed of the recent decline in the value of the currency. Year to date, Ukraine’s national currency has collapsed by 69% against gold in less than four months. This has resulted in the cost of food, fuel and basic staples surging for ordinary people in Ukraine.
"Marubeni [the world's largest soybean exporter to China] is deluded in thinking that payments will come once the cargoes have sailed," is the message from an increasing number of liquidity-strapped Chinese firms, "If they take these cargoes, some could go bankrupt. That's why they choose not to honor the contracts." As we explained in great detail here, this is the transmission mechanism by which China's commodity-financing catastrophe spreads contagiously to the rest of the world. A glance at the Baltic Dry is one indication of the global nature of the problem (and Genco Shipping's $1 billion bankruptcy), but as Reuters reports, "If buyers cannot resolve the issue, they may also cancel future shipments."
Now that everyone is breathing down the PBOC's neck to finally reveal - with a five year delay - just how much gold it does hold, the Chinese central bank has done a U-turn on its indirect transparency and, as Reuters reports, has begun allowing gold imports through its capital Beijing, sources familiar with the matter said, "in a move that would help keep purchases by the world's top bullion buyer discreet at a time when it might be boosting official reserves."
- Putin playing the long game over Russian kin in Ukraine (Reuters)
- U.S.-Russia Relations Come Full Circle After Ukraine (WSJ)
- Japan PM makes offering to Yasukuni Shrine, angers China, South Korea (Reuters)
- In Gold Miners' Talks, Scale Is Crucial: Combined Barrick-Newmont Would Be Able to Trim Costs (WSJ)
- SEC Said to Weigh Shining Light on Brokers’ Stock Routing (BBG)... and protmply unweigh it
- Exelon Beating Facebook in S&P 500 After Valuation Scare (BBG)
- Court Case May Help Define 'Insider Trading' (WSJ)
- Spanish banks face tough rivalry in small companies bet (Reuters)
Mere days before President Obama is due to visit on his Asia tour, Japan is making some rather uncomfortable 'diplomatic' moves. First, a senior Japanese cabinet official - Keiji Furuya - visited the highly controversial Yasukuni shrine (which is where "Class A" war criminals are enshrined alongside other war dead). And second, and perhaps even more concerning, is, as Reuters reports, Japan began its first military expansion at the western end of its island chain in more than 40 years on Saturday, breaking ground on a radar station on a tropical island off Taiwan. Both moves risk angering China at a time when non-Chinese Asia is looking for reassurance from Obama on his willingness to suport them.
And to think it was just two days ago when all the USDJPY momentum ignition algos roared to life on flashing headline news of yet another diplomatic "de-escalation" of tensions in Ukraine. What was clearly ignored is that since John Kerry was involved, it was nothing but the latest sham. And the proof came moments ago when Reuters reported, citing Russian state television on Sunday, that five people were killed when Ukraine gunmen attacked a checkpoint manned by pro-Russian separatists near the eastern Ukrainian city of Slaviansk.
For the first time, Russia has confirmed that it has built up its military presence on the Ukrainian border (according to Agence France Presse). On the heels of the de-escalation and the West's threat of tougher sanctions (if Russia failed to abide by the new 'deal'), Kremlin spokesman Dmirty Peskov told Rossiya TV that "we have troops in different regions, and there are troops close to the Ukrainian border. Some are based there, others have been sent as reinforcements due to the situation in Ukraine." Reuters also reports that Washington statements "are unlikely to help dialogue," and further sanctions would be "absolutely unacceptable." It seems the 'deal' has done little to calm anything but the US equity market as Peskov blasted "You can't treat Russia like a guilty schoolboy."
- Putin Doesn't Rule Out Sending Troops (WSJ)
- Japan Cuts Economic View on Tax Rise (WSJ)
- No "harsh weather" in Chipotle restaurants where comp store sales rose 13.4% (PR)
- No sanctions for you: EU sanctions push on Russia falters amid big business lobbying (FT)
- Consumer Spending on Health Care Jumps as Obamacare Takes Hold (BBG)
- China Seen Cracking on Property Controls (BBG)
- Google, IBM results raise questions about other tech-sector companies (Reuters)
- California city evacuation lifted after military ordnance found (Reuters)
- For Obama, Standoff With Moscow Jumbles Plans at Home and Abroad (WSJ)
“Bail-in” means that the bank’s owners - the shareholders, and creditors - the bondholders and now even depositors, will be line to absorb losses banks will incur, before outside sources of finance may be called upon. Deposit confiscation cometh ...