Turkey

German Media Continues To Aid Merkel In "Culture of Denial"

German media is solidly behind Angela Merkel as the US media was behind Hillary Clinton. German reporting of the recent terrorist truck incident was in a single word “pathetic”. Thanks to chancellor Merkel, it’s politically incorrect to presume refugees are a problem. Worse yet, the media cooperates.

Frontrunning: December 22

  • Fingerprints of Tunisian suspect in Berlin attack found on truck door (Reuters)
  • Germany Ill-Prepared for Terror Fight, Critics Say (WSJ)
  • Monte Paschi Will Need a Huge State Rescue (BBG)
  • Trump denounces attack, vows tough immigration plan (AP)
  • Trump’s New Appointments Shake Up Trade, Regulation (WSJ)

Frontrunning: December 21

  • Futures little changed after Dow, Nasdaq hit records (Reuters); Europe Stocks’ Rally Dims as Banks Drop; Oil Gains (BBG)
  • Monte dei Paschi says could run out of liquidity after four months (Reuters)
  • Spanish Banks Lose EU Case on Mortgage Interest Repayments (BBG)
  • Russia says trust needed for global oil output deal to be success (Reuters)
  • U.S. plays down absence from Moscow talks on Syria, says not 'sidelined' (Reuters)

US Army Deploys Tanks To Europe Ratcheting Up Tensions With Russia

In January, the US Army in Europe is due to deploy a total of 4,000 American troops and around 2,000 military vehicles on a rotational basis to Poland, Romania, Bulgaria and the Baltic nations. NATO forces will move to the Baltic States in early spring. In an overtly provocative move, an American battalion will be stationed in Poland near the border with Kaliningrad, Russia’s Baltic enclave.

The Bears Are Dying: Even Bob Janjuah Turns (Somewhat) Bullish

"The trends over H1 2017 should be higher (especially US) equities and yields, steeper curves, a stronger USD, and mixed performance in credit (especially in the IG sphere) and EM. So for me, most likely over the middle two quarters of 2017, I can see the S&P 500 cash index up at 2450 +/- 50 points, with the Nasdaq weakest and the Dow strongest of the big three US indices."

Turkish Pro-Government Media Blames US, CIA For Assassination Of Russian Ambassador

The pro-government Yeni Safak newspaper announced the murder of the ambassador with a headline saying, “Great sabotage.” The daily said “The pro-FETÖ assassins of the CIA have been mobilized” in order to ruin Turkish-Russian relations. “It is stated that the US has begun open attacks [against Turkey] over FETÖ,” said the daily.

Frontrunning: December 20

  • Trump wins Electoral College vote; a few electors break ranks (Reuters)
  • European Stocks Head for a One-Year High (BBG)
  • Japan's Central Bank Keeps Policy Unchanged, Upgrades Economic Outlook (BBG)
  • Russia and Turkey vow to keep detente on track after murder (FT)
  • The Political Implications of Events in Ankara and Berlin (BBG)

S&P Futures Rise Propelled By Stronger Dollar; Europe At 1 Year High As Yen, Bonds Drop

It appears nothing can stop the upward moment of equities heading into the year end, and as US traders walk in, S&P futures are again higher, proppeled by European stocks which climbed to their highest in almost a year, while the USD rose and bonds and gold fell, failing again to respond to terrorist attacks in Ankara, Berlin and Zurich. The yen tumbled after the BOJ maintained its stimulus plan.

Obama Hits The Golf Course After Learning About Turkey, Berlin Attacks

"During his vacation in Hawaii, President Barack Obama has been briefed by his national security team on the assassination of the Russian ambassador to Turkey. The president on Monday directed his team to give him updates as warranted. After a morning workout, Obama headed to Lanikai, where he will play golf at Mid Pacific Country Club."