In a nearly carbon-copy replica of last Friday when tensions escalated then de-escalated on rumors that Ukraine had attacked a Russian military convoy, today's Yellen speech has been completely upstaged by ongoing developments out of Ukraine, where Kiev condemned the entry of Russian humanitarian convoy trucks (subsequently adding it no longer knows where they are), following Russia's announcement it could wait no longer to provide aid to the citizens of the Donetsk People's Republic. And while NATO promptly echoed Ukraine' position once again as it did last Friday, now it is Russia's turn to explain why it rushed to enter the country, seemingly without express preapproval by the Ukraine government.
Out of the gate - based on the fact the word "slack" was present and the word "bubble" was not, stocks ramped higher as J-Yell's J-Hole speech hit. Bond yields surged (led by 5Y) and the USDollar also surged (as gold shrugged). However, once the machines were done, humans reacted to the fact that this was not the "full dovish" speech that was 'priced in' and have started to sell stocks back... but then again - we always have Draghi later to save Friday...
Russian Humanitarian Convoy Enters Ukraine Without Authorization; Ukraine Considers Move "Direct Invasion"Submitted by Tyler Durden on 08/22/2014 09:02 -0400
Update: the farce is complete, although at least this time it didn't take Ukraine several hours to fabricate then unfabricate its plot line, because literally minutes after it accused Russia of invading, Ukraine's foreign minister said the convoy was "allowed" to avoid provocations
Here we go again. Precisely a week after the fabricated headlines last Friday that Ukraine had blown up Russian military vehicles in Ukraine territory, "news" which promptly was forgotten when Russia denied and Ukraine couldn't produce any proof of said attack, now it is time for the real "humanitarian" convoy to become the topic du jour, and so it did a few hours ago when some 90 trucks from the convoy were said to have entered Ukraine territory, a move which Ukraine promptly denounced as a direct invasion.
- Ukraine accuses Russia of invasion after aid convoy crosses border (Reuters)
- Hunt for Foley’s Killer Spans Old Policing and Tech Tools (BBG)
- U.S. Probe Examines GM Lawyers (WSJ)
- Argentina accuses U.S. Judge Griesa of "imperialist" attitude (Reuters)
- Violence-weary Missouri town sees second night of calm (Reuters)
- Geneva Banks Break 200-Year Silence to Unveil Earnings (BBG)
- Richest Jailed Putin Foe Says Ukraine Fears Sparked Prosecution (BBG)
- Disclosure of Failed Attempt to Rescue James Foley Is Criticized (WSJ)
- Execution of U.S. journalist reveals the changing business of war coverage (Reuters)
While today's key events were supposed to be the Jackson speeches first by Janet Yellen at 10:00am Eastern and then by Mario Draghi at 2:30 pm, Ukraine quickly managed to steal the spotlight yet again when moments after the first Russian humanitarian aid convoys entered Ukraine allegedly without permission, Kiev first accused Russia of staging a direct invasion, even if moments later it changed its tune and said it had allowed the convoy in to "avoid provocations." In other words, your daily dose of Ukraine disinformation, which initially managed to push futures down some 0.3% before futs regained virtually all losses on the subsequent clarifications. Expect much more conflicting, confusing and very provocative headlines out of Kiev as the local government and the CIA try to get their story straight.
Police in the Liberian capital fired live rounds and tear gas on Wednesday to disperse a stone-throwing crowd trying to break an Ebola quarantine imposed on their neighbourhood. As Reuters reports, at least four people were injured in clashes with security forces, witnesses said, though it was unclear whether anyone was wounded by the gunfire. Liberian authorities introduced a nationwide curfew on Tuesday and put the West Point neighbourhood under quarantine to curb the spread of the disease. "The soldiers are using live rounds," said army spokesman Dessaline Allison, adding: "The soldiers applied the rules of engagement. They did not fire on peaceful citizens." Locals are angry, "I don't have any food and we're scared," screamed one, adding, "it is inhumane."
Forget Bloomberg, ignore Reuters, dismiss that 'well-informed trader' source... Ukraine's Central Bank has decided that critical medium for expressing its desperation to stop the collapse of its currency is... Facebook.
Following Russia's closure on several McDonalds in Moscow, the CEO of the American Chamber of Commerce is worried: "The question on my mind is: Is this going to be a knock on the door, or is this going to be the beginning of a campaign?" As Reuters reports, businessmen from both West and East are increasingly frustrated with the tit-for-tat sanctions (and their apparent lack of efficacy at anything but slowing global growth). Russian and Ukrainian CEOs joined Richard Branson to write "We, as business leaders from Russia, Ukraine and the rest of the world, urge our governments to work together to ensure we do not regress into the Cold War misery of the past." As we noted previously, Europe has suffered most, and the following European companies remain the most exposed to escalation.
"Isolation Procedures Put In Place" After Ebola Suspect Dies In Ireland; Ebola-Like Disease Claims 70 In CongoSubmitted by Tyler Durden on 08/21/2014 15:03 -0400
Last week Ireland rushed to deny that a man with Ebola-like symptoms who was being tested in Dublin, did not have the disease. It may find such a refutation more difficult this time after Irish Times reported that a man was found dead last night in Donegal, after working in Sierra Leone, the epicenter of the current Ebola outbreak, and where "it is understood that a number of colleagues had contracted the virus." The deceased was taken to Letterkenny General Hospital where the HSE is carrying out tests to see whether the death resulted from Ebola.
It was nearly three weeks ago when American missionary doctor Kent Brantly, who contracted Ebola treating victims of the deadly virus in Liberia, was brought to Atlanta's Emory University Hospital. Today, following a treatment with an experiment drug ZMapp made by Mapp Biopharma, it appears that Brantley has recovered enough that he will be discharged later on Thursday.
- FTW: Europe Stocks Rise as Data Signals Need for Stimulus (BBG)
- More de-escalation: Dozens die in Ukraine in street battles, Donetsk shelling (Reuters)
- Calm largely holds in Missouri after grand jury opens shooting investigation (Reuters)
- Attorney General Eric Holder Vows Thorough Probe of Ferguson Shooting (WSJ)
- World’s Biggest Wealth Fund Slows Emerging Market Investment (BBG)
- Market Chilly to Argentine Debt Proposal (WSJ)
- Israeli air strike kills three Hamas commanders in Gaza (Reuters)
- Retooled Hamas Bloodies Israel With Help From Hezbollah (BBG)
- Investors Pour Into Vanguard, Eschewing Stock Pickers (WSJ)
- Fed Debates Early Rate Increases (WSJ)
Three more banks have been permitted to import gold to China, as IBTimes notes, the country redoubles its efforts to attain pricing power of the commodity. The move, which brings the number of firms allowed to import gold into China to 15, comes ahead of the SGE launching its Yuan settled bullion exchange, in hopes of replacing the now discredited London Fix and become a price-discovery center. Shanghai Pudong Development Bank and China Merchants Bank were joined by Standard Chartered - only the 3rd foreign bank to be allowed to import gold into China as the nation continues to increase the pace of liberalisation of the gold market following the approval last year of the country's first gold-backed WTFs.
Sanctions blowback? Russian food safety watchdog Rospotrebnadzor has ordered the closure of four McDonalds restaurants in Moscow, according to Reuters, due to "numerous sanitary breaches."
*MOSCOW TEMPORARILY CLOSES SEVERAL MCDONALD'S RESTAURANTS
This was not entirely a surprise since Russia had previously raised concerns over McDonalds cheese and was angered when the fast-food restaurant ceased operations in Crimea. This also comes on the heels of McDonalds problems in China and Japan over food supply issues. It appears the "tangible losses" Putin promised, are beginning.
While the world awaits the test results from an Ebola suspect in Sacramento to learn if Ebola has now officially entered the US, the epidemic in Africa has now drifted away from the confines of its original hotspots of Guinea, Liberia and Sierra Leone, and after spreading to Africa's most populous nation Nigeria, and the third most populated city in the world, Lagos, it appears to have just entered the second largest country in Africa by area, and fourth most populous African nation: the Democratic Republic of the Congo.