Turkey

The EU is warning Greece it faces suspension from the Schengen passport-free travel zone unless it overhauls its response to the migration crisis by mid-December, as frustration mounts over Athens’ reluctance to accept outside support. Meanwhile non-EU member Turkey gloats as it gets a soon to be embezzled wire transfer of €3.0 billion for its "proactive" refugee response.

It is only logical that a day after the S&P500 surged, hitting Goldman's 2016 target of 2,100 more than a year early because the US manufacturing sector entered into a recession, that Europe would follow and when Eurostat reported an hour ago that European headline inflation of 0.1% missed expectations of a modest 0.2% increase (core rising 0.9% vs Exp. 1.1%), European stocks predictably surged not on any improvement to fundamentals of course, but simply because the EURUSD stumbled once more, sliding by 40 pips to a session low below the 1.06 level.

“Russia’s installation of their anti-aircraft missile-defense system increases that possibility of — whether it’s intentional or even an accidental event — where one side may shoot down the other side’s plane. And that’s really where the potential is for this devastating nuclear war."

So what do you do when you’re a barbaric monarchy with a justice system remarkably similar to ISIS, but at the same time want to remain very close ally of the U.S. government? You create a sophisticated propaganda network, naturally.

By the look on President Obama's face, Erdogan must have just announced the addition of dozens of coal-fired power plants...

D'uh!

"A tense moment occurred when the 133-meter ship, the Yauda, arrived at the Dardanelles from the Aegean Sea at around 10 a.m. on Nov. 30. and encountered a Turkish submarine across the shores of Canakkale's Eceabat."

“These special operators will over time be able to conduct raids, free hostages, gather intelligence, and capture ISIL leaders."

In a broad-based press conference, President Obama is expected to address everything from climate change and fossil fuels to more mundane threats such as ISIS, Boko Haram, Turkey, Russia, and Saudi Arabia. As you watch the President explain how he is solving all these 'issues', bear in mind his statement from earlier today that the global pact on climate control is "an act of defiance" against terrorism that proves the world stands undeterred by ISIS. Yeah that really showed them, eh?!

With Jeremy Corbyn's divided Labour MPs free to break party rank in Wednesday's key vote, "RAF crews could be bombing the Isis headquarters in Raqqa by the end of the week." Meanwhile, "German Chancellor Angela Merkel’s Cabinet approved deploying warplanes over Syria in the fight against Islamic State."

• Global Stocks Edge Higher on Expected ECB Stimulus (WSJ)
• Moment of truth as Puerto Rico faces crucial debt payment (Reuters)
• Obama urges Turkey to reduce tensions with Russia, stresses support (Reuters)
• Russian Media Takes Aim at Turkey (WSJ)
• Support Grows for U.S. Commando Raids to Fight Islamic State (BBG)
• Yuan Drops as SDR Approval Seen Prompting PBOC to Reduce Support (BBG)

There was something for everyone in last night's much anticipated Chinese PMI data, with the official number sliding to the lowest in over 3 years, suggesting the PBOC will need to do more stimulus and is thus bullish, while the unoffocial Caixin print rising to the highest since June, suggesting whatever the PBOC is doing is working, and is also bullish. Not unexpectedly, global stocks decided to take the bullish way out, and have risen across the globe led by Asia, where stocks rose as much as 1.8%, Europe also green and US equity futures up 10 points as of this writing.

"At the moment we have received additional information confirming that that oil from the deposits controlled by Islamic State militants enters Turkish territory on industrial scale."