West On Edge As Erdogan Meets With Putin: "Turkey's Relations With The US Are The Worst In 50 Years"

In a slap to the face of its Western friends, as the FT puts it, instead of visiting a Nato ally, Erdogan's first trip abroad since surviving last month’s coup attempt the Turkish president is going to Vladimir Putin’s Russia. As one Turkish diplomat in Moscow said: “Our relations with the US are the worst in 50 years  . . .  and that definitely makes engaging Russia an attractive option.” Needless to say, Putin will be most delighted by this development...

Meanwhile, In The Philippines...

The killing of over 400 drug dealers in he Philippine government's "war on narco-politics" has reportedly led to an additional 500,000 turning themselves in... “I’ll really have you killed… My order is shoot to kill you. I don’t care about human rights, you better believe me.” Those are the words of recently elected Philippine President Rodrigo Duterte, adding during a televised national address "my mouth has no due process."

German, Austrian Politicians Compare Erdogan To Hitler

The leader of Germany's liberal Free Democrats likened Turkish President Erdogan's purge of state institutions to the actions of the Nazi party in the 1930s. His comments echo those of Austria's far-right Heinz-Christian Strache who said on Saturday that Erdogan's use of the failed putsch in July to crack down on his opponents was reminiscent of Hitler's use of the Reichstag blaze to amass greater power.

Diplomatic Scandal Erupts After Turkey Calls Austria The "Capital Of Radical Racism"

Turkish Foreign Minster Mevlut Cavusoglu called Austria the "capital of radical racism" on Friday after Chancellor Christian Kern suggested ending European Union accession talks with Ankara. Cavusoglu said Kern's comments, spurred by a crackdown on suspected perpetrators of a failed coup last month, were "ugly" and that he rejected them all.

30,000 Refugees "Go Missing" As Swedes Face Increasing Violence From Asylum-Seekers

The daily Svenska Dagbladet reported that 30,000 people whose asylum application had been rejected and were scheduled for deportation, had gone missing. The police say they lack the resources to track down these illegals... but do not complain: "If you disagree with the establishment, you are immediately called a racist or fascist, which we definitely are not. At times I felt that this was what it must have been like to live in the old Soviet Union."

Support For Merkel Plunges After German Terrorist Attacks

After the recent surge in terrorist attacks on US soils conducted by ISIS-affiliated refugees who had entered the country thanks to Chancellor Merkel's "Open Door" policy, we expected that popular support for Merkel would once again drop in the polls, but not even we expected such a dramatic move.

Frontrunning: August 5

  • Expected solid job gains seen as boost to economy (Reuters)
  • Oil prices slip as short-covering rally fizzles (Reuters)
  • Hillary Clinton’s Lead Over Donald Trump Widens to 9 Points, Poll Shows (WSJ)
  • Justice Department Officials Raised Objections on U.S. Cash Payment to Iran (WSJ)
  • Terrorist Suspects in Europe Got Welfare Benefits While Plotting Attacks (WSJ)

Futures, Global Stocks Rise As Oil, USDJPY Drops: All Eyes On The Jobs Report

With all eyes on today's jobs report, where consensus expects a 180K payrolls gain, European, Asian stocks and S&P futures all rise amid a surge in government debt as markets digest the BOE's "kitchen sink" easing for a second day. But please don't overthink it. In deja vu fashion, Bloomberg summarizes the action simply as "stocks rose around the world on speculation central bank stimulus measures will support the global economy." We've heard that just a few times before.

A "Revolted" French President Lashes Out At Donald Trump: "His Excesses Are Sickening"

While over the past week Trump has hardly needed outside help to generate a spectacular dose of media scandals, overnight an unexpected attack came from none other than French socialist president Hollande expressed extreme revulsion at Donald Trump’s “excesses” in the U.S. presidential campaign and warned against the authoritarian tone adopted by the Republican nominee.

US Begins Upgrading Its Nuclear Bomb Arsenal

Obama has given the go-ahead for work to begin on upgrading the B61 airborne nuclear bomb, as the Pentagon is eager to embark on a multi-billion-dollar scheme to improve the US nuclear arsenal. The decision by the NNSA authorized the program to enter a post-engineering phase, which comes after four years of work. As a result, the first upgraded bombs are set to roll out by 2020. The B61 has been the principal US airborne nuclear bomb since 1968, when the first version was commissioned

Germany Furious After Turkey Issues Ultimatum, Threatens With Refugee Exodus

Turkey's foreign minister has told Germany that “if there is no visa abolition, we will be forced to abandon the agreement struck on March 18 concerning taking back [refugees]” to which Germany's vice chancellor had a quick response: "Germany and Europe should under no circumstances be blackmailed."