http://www.zerohedge.com/fullrss2.xml en The Housing Echo-Bubble Is Popping http://www.zerohedge.com/news/2014-08-28/housing-echo-bubble-popping <p><em>Submitted by <a href="http://charleshughsmith.blogspot.com/2014/08/the-housing-echo-bubble-is-popping.html">Charles Hugh-Smith of OfTwoMinds blog</a>,</em></p> <p><span><i>There is nothing remotely &quot;normal&quot; about the echo-bubble&#39;s rise, and we can anticipate that its deflation will be equally abnormal.</i></span><br />&nbsp;</p> <div><b><span>Conventional wisdom on the resurgence of the housing markets takes one of two paths:</span></b><br />&nbsp;</div> <div><span>1. Housing is not in a bubble, it is merely returning to &quot;normal&quot;</span><br />&nbsp;</div> <p><span>2. Housing is bubbly in some markets, but prices will continue to rise</span></p> <p>&nbsp;</p> <div><span><b>Here&#39;s an alternative view: housing is in an echo-bubble that&#39;s popping.&nbsp;</b>Courtesy of the excellent&nbsp;<a href="http://mdbriefing.com/us-realestate.shtml" target="resource">Market Daily Briefing</a>, here are some charts that make the case that the housing echo-bubble was just another Federal Reserve-induced speculative asset bubble that&#39;s popping, like every other speculative bubble in recorded history.</span><br />&nbsp;</div> <div><span><b>First up: home prices, as measured by the Case-Shiller Price Index.</b>&nbsp;Note the near-perfect symmetry of the echo-bubble: it has taken roughly the same time-span to inflate and reach a top as the first housing bubble from January 2004 to its peak 2+ years later.</span><br />&nbsp;</div> <div><span>The echo-bubble has topped out at about 50% of the decline from the primary bubble top to the trough in 2012.</span></div> <div><span><img border="0" src="http://www.oftwominds.com/photos2014/home-prices8-14.png" /></span></div> <div>&nbsp;</div> <div><span><b>The distorted fundamentals of the echo-bubble are revealed in this chart of mortgage debt to wages.</b>&nbsp;Current levels of mortgage debt are double historic levels, and 35% above the level of 2001, when the primary housing bubble lifted off.</span></div> <div><span><img border="0" src="http://www.oftwominds.com/photos2014/mortgage-debt-wages5-14.png" /></span></div> <div>&nbsp;</div> <div><span><b>The third charts tells us the echo-bubble is popping.</b>&nbsp;Note that housing sales lead price by about six months: sales started falling in late 2005, and prices rolled over in mid-2006.</span><br />&nbsp;</div> <div><span>Housing sales rolled over in December 2013, and sure enough, prices are starting to weaken in many markets.</span></div> <div><span><img border="0" src="http://www.oftwominds.com/photos2014/housing-mdbriefing8-14a.png" /></span></div> <div><span><b>The echo-bubble doesn&#39;t pass the sniff test as a &quot;normal&quot; housing recovery.</b>&nbsp;Exhibit #1: who&#39;s buying and who&#39;s not buying:</span><br />&nbsp;</div> <div><span>1. Marginal buyers using 3% down-payment FHA/VA loans who wouldn&#39;t qualify for conventional mortgages. The risk of marginal borrowers defaulting is high, a reality reflected in&nbsp;<a href="http://www.bostonglobe.com/business/2014/04/28/has-fha-gone-too-far-with-its-borrower-fees/JUVMR1a9uepsTbCi0j70kN/story.html" target="resource">FHA&#39;s default rate:</a></span><br />&nbsp;</div> <div><i><span>When lending sources dried up during the financial crisis, the FHA propped up the housing market by insuring the lenders it works with against losses and enticing them back into the market. But the FHA&rsquo;s default rate shot up as its loan volume expanded, depleting its cash reserves to levels below what is required by law. In September 2013, the FHA tapped taxpayer money to cover its losses for the first time in the agency&rsquo;s 80-year history.</span></i><br />&nbsp;</div> <div><span>2. Who&#39;s not buying:&nbsp;<a href="http://fanniemae.com/resources/file/research/datanotes/pdf/housing-insights-081814.pdf" target="resource">Upper-Income, Educated, Married with Children, and Still Not Buying:</a><i>Declining Homeownership among &quot;Prime&quot; First-Time Home Buying Candidates (Fannie Mae Housing Insights, Volume 4, Issue 4)</i></span><br />&nbsp;</div> <div><span>3. The dominance of all-cash buyers--generally investors (those close to the money spigots of the Fed&#39;s&nbsp;<i>free money for financiers</i>) and foreign buyers.</span><br />&nbsp;</div> <div><span><b>Note the difference between mortgage credit expansion, which has lagged price gains.</b>&nbsp;This suggests many of the sales (about 35% in many hot markets) were all-cash purchases that did not require a mortgage</span></div> <div><span><img border="0" src="http://www.oftwominds.com/photos2014/housing-mdbriefing8-14c.png" /></span></div> <div><span><b>Take away the Fed&#39;s zero-interest rate policy (ZIRP), its&nbsp;<i>free money for financiers</i>and foreign buyers seeking a safe haven for their&nbsp;<i>hot money</i>, and what&#39;s left of the supposedly &quot;normal&quot; housing recovery?</b>&nbsp;Not much.</span></div> <div><span>There is nothing remotely &quot;normal&quot; about the echo-bubble&#39;s rise, and we can anticipate that its deflation will be equally abnormal.</span><br />&nbsp;</div> <p><span>How do we know when an asset class is in a bubble? When everyone who stands to benefit from the continuation of the expansion declares it can&#39;t be a bubble.</span></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="468" height="337" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140827_chs.jpg?1409228924" /> </div> </div> </div> http://www.zerohedge.com/news/2014-08-28/housing-echo-bubble-popping#comments Case-Shiller default Default Rate Fannie Mae Free Money Housing Bubble Housing Market Reality recovery Thu, 28 Aug 2014 13:26:44 +0000 Tyler Durden 493626 at http://www.zerohedge.com GDP 'Good News' Sparks Bond Buying & Stock Selling, Treasury Curve Crumbles Further http://www.zerohedge.com/news/2014-08-28/gdp-good-news-sparks-bond-buying-stock-selling-treasury-curve-crumbles-further <p>US GDP beat expectations 'proving' that government data shows the recovery meme is on track (as long as it doesn't snow ever again). The market's reaction... intriguing - stocks shrugged even as a USDJPY pump tried to get things going; gold and silver moved modestly higher; and <strong>Treasury yields... fell notably at the long end</strong>. 30Y is now trading with a 3.06% handle and 5s30s is back below 145bps...!</p> <p>Bonds are rallying on the GDP beat...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140828_TSY1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140828_TSY1_0.jpg" width="600" height="314" /></a></p> <p>&nbsp;</p> <p>The yield curve continues to collapse...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140828_TSY2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140828_TSY2_0.jpg" width="600" height="300" /></a></p> <p>&nbsp;</p> <p>And stocks are shrugging..</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140828_TSY3.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140828_TSY3_0.jpg" width="600" height="445" /></a></p> <p>&nbsp;</p> <p>Chjarts: Bloomberg</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="862" height="640" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140828_TSY3.jpg?1409230766" /> </div> </div> </div> http://www.zerohedge.com/news/2014-08-28/gdp-good-news-sparks-bond-buying-stock-selling-treasury-curve-crumbles-further#comments Bond recovery Yield Curve Thu, 28 Aug 2014 13:00:28 +0000 Tyler Durden 493625 at http://www.zerohedge.com Q2 GDP Revision Unexpected Rises On Alleged Jump In Capex To Highest Since 2011 http://www.zerohedge.com/news/2014-08-28/q2-gdp-revision-unexpected-rises-alleged-jump-capex-highest-2011 <p>Following the unexpected surge in Q2 GDP, which beat most analyst estimates, there was widespread expectation that based on real-time data, the revised Q2 print would be worse. So perhaps it is appropriate that the Bureau of Economic Analysis punked everyone once again, when moments ago it released the first revision to the Q2 GDP print, which instead of dropping to the consensus expected 3.9%, it instead rose to 4.2%, up from the 4.0% initial report. </p> <p>This was driven not by a change in actual spending, the most important driver of the US economy, which was unchanged from the first estimate at 1.69%, but, amusingly enough, by a jump in fixed investment, i.e., CapEx, which rose from 0.3% in Q1 to 0.91% in the first Q2 GDP estimate to 1.25% currently: this is the highest CapEx print since Q4 2011. How is this possible (especially when one excludes Boeing orders)? Nobody knows, unless the BEA now adds stock buybacks to its definition of fixed investment, which as everyone now knows, is where the bulk of corporate free cash flow has been going.</p> <p>As for inventory, it rose at a slightly lower pace, up 1.39% vs the 1.66% annualized pace reported previously, although on an absolute basis the number was again higher,&nbsp; and as JPM reports, inventories rose by 84 billion versus the $67 billion JPM had expected, "<em>potentially dragging on Q3.</em>"</p> <p>Finally, the other two components, Net Trade, were largely unchanged at -0.45%, and 0.27% respectively. </p> <p>All in all this simply means that either the final Q2 GDP revision will be where all the dirt is stuffed in one month, or Q3 GDP will be a reversion to a much lower mean.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/08/Q2%20GDP%20revised.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/08/Q2%20GDP%20revised_0.jpg" width="600" height="356" /></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1174" height="696" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/Q2%20GDP%20revised.jpg?1409229753" /> </div> </div> </div> http://www.zerohedge.com/news/2014-08-28/q2-gdp-revision-unexpected-rises-alleged-jump-capex-highest-2011#comments Boeing fixed Thu, 28 Aug 2014 12:44:00 +0000 Tyler Durden 493624 at http://www.zerohedge.com Initial Jobless Claims Drop Back Under 300k, Continuing Claims Rise http://www.zerohedge.com/news/2014-08-28/initial-jobless-claims-drop-back-under-300k-continuing-claims-rise <p>"Slack" or "no slack" - initial claims tumbling along the bottom of the lowest levels in a decade suggest the US economy's job creation is as good as it gets. <strong>Initial claims was stable at 298k (vs expectations of 300k)</strong> down very small from the 299k adjusted data for last week. Continuing claims rose 25k on the week and missed expectations but also continues to tread water at the <strong>lowest levels since 2007</strong>.</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140827_claims.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140827_claims_0.jpg" width="600" height="313" /></a></p> <p>&nbsp;</p> <p>Finally - some may remember this chart as the best indicator of why stocks should keep rallying... still feel that way?</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140827_claims1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140827_claims1_0.jpg" width="600" height="313" /></a></p> <p>&nbsp;</p> <p>Now where have we seen this before?</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140827_claims2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/08/20140827_claims2_0.jpg" width="600" height="320" /></a></p> <p>&nbsp;</p> <p><em>Chart: Bloomberg</em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="960" height="501" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140827_claims.jpg?1409229323" /> </div> </div> </div> http://www.zerohedge.com/news/2014-08-28/initial-jobless-claims-drop-back-under-300k-continuing-claims-rise#comments Continuing Claims Initial Jobless Claims Thu, 28 Aug 2014 12:37:25 +0000 Tyler Durden 493623 at http://www.zerohedge.com NATO Says Over 1000 Russian Troops In Ukraine, "Extremely Worrying... Dire Situation" http://www.zerohedge.com/news/2014-08-28/nato-says-over-1000-russian-troops-ukraine-extremely-worrying-dire-situation <p>Hot on the heels of Ukraine's claims of 'invasion' and retraction of said claim, NATO is once again stepping in with strong claims about Russian 'incursions':</p> <ul> <li><strong>*NATO OFFICER: ESTIMATED 20,000 RUSSIAN TROOPS NEAR UKRAINE<em> (not 17 or 45?)</em></strong></li> <li><strong>*NATO OFFICER: OVER 1,000 RUSSIAN TROOPS OPERATING IN UKRAINE</strong></li> <li><strong>*NATO OFFICER: 2ND FRONT RISKS CUTTING UKRAINE ARMY SUPPLY LINES</strong></li> <li><strong>*NATO OFFICER: NEW 2ND FRONT 'EXTREMELY WORRYING' FOR UKRAINE</strong></li> </ul> <p>While NATO statements in the past have caused dramatic weakness in stocks (or been entirely shurgged off), it appears this time markets are taking their concerns more seriously as the officer states <strong>Ukraine's forces are in a "dire situation."</strong></p> <p>As Bloomberg reports,</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>NATO estimates there are currently 20,000 Russian troops in the border region to Ukraine</strong>, says a North Atlantic Treaty Organization military officer speaking to reporters today on condition of anonymity at supreme headquarters in Mons, Belgium.&nbsp; </p> <p>&nbsp;</p> <p><strong>Well over 1,000 Russian troops now operating inside Ukraine: officer</strong></p> <p>&nbsp;</p> <p>Russian troops in Ukraine <strong><span style="text-decoration: underline;">operating advanced equipment, serving as advisers for separatists</span></strong>: officer</p> <p>&nbsp;</p> <p>As a result of Ukraine becoming more effective militarily starting in July, <strong>there has been a real upsurge in Russian activities of late</strong>. Cross border support, firing of rockets and artillery shells across border, supply of more weapons: officer</p> <p>&nbsp;</p> <p>Russia has effectively created second front in the south, this is an extremely effective way to take pressure off separatists: officer</p> <p>&nbsp;</p> <p><span style="text-decoration: underline;"><strong>Puts Ukraine forces in “dire situation” since from south Russian forces can move up to link with Donetsk forces or can even move west toward Crimea: officer</strong></span></p> <p>&nbsp;</p> <p><strong>Opening of second front in south is “extremely worrying”for Ukraine’s position</strong>; there’s a risk that Ukraine military’s supply lies will be cut: officer</p> <p>&nbsp;</p> <p><strong>Officer declines to call Russian moves in Ukraine an “invasion,” instead repeatedly uses the term “incursion”</strong></p> </blockquote> <p>Further, </p> <ul> <li><strong>*NATO OFFICER: RUSSIA SEEKS TO TAKE PRESSURE OFF REBEL FORCES</strong></li> <li><strong>*NATO OFFICER: RUSSIAN TROOPS IN UKRAINE MANNING ADVANCED ARMS</strong></li> </ul> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Russia is more openly backing the Ukrainian rebels, now with small Russian military formations moving into Ukraine’s territory, senior NATO diplomat says.</p> <p>&nbsp;</p> <p><strong>Russia has provided artillery and rocket support for rebels, from positions both in Russia and inside Ukraine, diplomat says</strong></p> <p>&nbsp;</p> <p><strong>SA-22 surface-to-air missiles are now being deployed, more sophisticated than the SA-11 missiles that downed the Malaysian airliner, diplomat says</strong></p> <p>&nbsp;</p> <p>Russian support has become more overt in the wake of Kiev government’s successes against the rebels near Luhansk and Donetsk, diplomat says</p> </blockquote> <ul> <li><strong>*NATO OFFICER: RUSSIAN TROOPS IN UKRAINE SERVING AS ADVISERS <em>(just like the humanitarian Americans in Iraq?)</em></strong></li> </ul> <p>This follows talk earlier in the week of more advanced surface-to-air missiles.</p> <p>*&nbsp; *&nbsp; *</p> <p>It appears the 'talk' is a little more real this morning as <strong>Ukraine's security council is considering calling a State of Emergency</strong> (which seems ironic given the constant threats they have been noting for months)</p> <p>*&nbsp; *&nbsp; *</p> <p>And then there's this...</p> <p>“Russian invasion” should be considered by UN Security Council, Latvian Foreign Minister</p> <blockquote class="twitter-tweet"><p>Russian invasion in Ukraine must be considered by the UN Security Council as act of aggression, UN must react accordingly, this is war</p> <p>— Edgars Rink?vi?s (@edgarsrinkevics) <a href="https://twitter.com/edgarsrinkevics/statuses/504922897652387840">August 28, 2014</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script> http://www.zerohedge.com/news/2014-08-28/nato-says-over-1000-russian-troops-ukraine-extremely-worrying-dire-situation#comments Belgium Iraq Ukraine Thu, 28 Aug 2014 12:20:25 +0000 Tyler Durden 493622 at http://www.zerohedge.com Frontrunning: August 28 http://www.zerohedge.com/news/2014-08-28/frontrunning-august-28 <ul> <li>Clearly it's time to bomb Assad (on Qatar instructions): Islamic State executes dozens of Syrian army soldiers (<a href="http://www.reuters.com/article/2014/08/28/us-syria-crisis-idUSKBN0GS10O20140828">Reuters</a>)</li> <li>Ukraine Declares Russian Invasion as Sanctions Threat Raised (<a href="http://www.bloomberg.com/news/2014-08-28/ukraine-rebel-assaults-spark-russia-invasion-claims.html">BBG</a>)</li> <li>Ukraine Reports Russian Invasion on a New Front (<a href="http://www.nytimes.com/2014/08/28/world/europe/ukraine-russia-novoazovsk-crimea.html?_r=0">NYT</a>)</li> <li>German Unemployment Rises as Risks to Economy Build (<a href="http://www.businessweek.com/news/2014-08-28/german-unemployment-unexpectedly-rises-as-risks-to-economy-build">BBG</a>)</li> <li>Ebola spreads to Nigeria oil hub Port Harcourt (<a href="http://www.bbc.com/news/world-africa-28966258">BBC</a>)</li> <li>FBI Probes Possible Hacking Incident at J.P. Morgan (<a href="http://online.wsj.com/articles/fbi-probes-possible-computer-hacking-incident-at-j-p-morgan-1409168480">WSJ</a>)</li> <li>FBI, Secret Service investigate reports of cyber attacks on U.S. banks (<a href="http://www.reuters.com/article/2014/08/28/us-jpmorgan-cybersecurity-idUSKBN0GR25R20140828">Reuters</a>)</li> <li>If you like your Venezuela, you can stay in Venezuela: Airlines Abandon Fliers Amid Currency Dispute (<a href="http://online.wsj.com/articles/trapped-in-venezuela-airlines-abandon-fliers-amid-currency-dispute-1409162327">WSJ</a>)</li> <li>Boomer Wealth Dented by Mortgages Poses U.S. Risk (<a href="http://www.bloomberg.com/news/2014-08-28/boomer-wealth-depressed-by-mortgages-poses-u-s-spending-risk.html">BBG</a>)</li> <li>People Aren't Buying Guns (<a href="http://www.businessweek.com/articles/2014-08-27/gun-sales-are-down#r=read">BusinessWeek</a>)</li> <li>Icelandic Bardarbunga Volcano Update: Fractures, Sinkholes Spotted During Research Flight (<a href="http://www.weather.com/news/icelandic-bardarbunga-volcano-new-fractures-and-sinkholes-spotted-20140827">Weather Channel</a>)</li> <li>Silva Shakes Up Brazilian Election (<a href="http://www.ft.com/intl/cms/s/0/1a496d8c-2e02-11e4-b330-00144feabdc0.html">FT</a>)</li> <li>Samsung unveils smartwatch that can make calls (<a href="http://www.reuters.com/article/2014/08/28/us-samsung-elec-smartwatch-idUSKBN0GS0EK20140828">Reuters</a>)</li> </ul> <p>&nbsp;</p> <p><strong>Overnight Media Digest</strong></p> <p><em><span style="text-decoration: underline;">WSJ</span></em></p> <p>* The Islamic State runs a self-sustaining economy across territory it controls in Syria and Iraq, pirating oil while exacting tribute from a population of at least eight million, Arab and Western officials said, making it one of the world's richest terror groups and an unprecedented threat. (<a href="http://on.wsj.com/1lg9Qvt" title="http://on.wsj.com/1lg9Qvt">http://on.wsj.com/1lg9Qvt</a>)</p> <p>* The Federal Bureau of Investigation is probing a computer-hacking attack on J.P. Morgan Chase &amp; Co and as many as four other banks, in what people familiar with the probe described as a significant breach of corporate computer security. (<a href="http://on.wsj.com/1td4fso" title="http://on.wsj.com/1td4fso">http://on.wsj.com/1td4fso</a>)</p> <p>* Argentina's international reserves are starting to dwindle in the wake of the country's second sovereign-debt default in almost 13 years, putting added stress on the peso and an economy believed to be in recession. (<a href="http://on.wsj.com/1zHU1Pu" title="http://on.wsj.com/1zHU1Pu">http://on.wsj.com/1zHU1Pu</a>)</p> <p>* Alibaba Group Holding Ltd &lt;IPO-BABA.N&gt; reported big growth in revenue from mobile devices, which may bolster its case next month when the Chinese e-commerce giant begins to pitch investors on its long-awaited initial public offering. (<a href="http://on.wsj.com/1qAtKl3" title="http://on.wsj.com/1qAtKl3">http://on.wsj.com/1qAtKl3</a>)</p> <p>* A federal judge on Wednesday denied a request from Apple Inc to bar Samsung Electronics Co from selling smartphones and tablets in the United States that infringe on Apple patents. Apple had sought a permanent injunction against certain Samsung products after a judge and jury found in May that the Korean firm had infringed on three of its patents in a high-profile intellectual property dispute. (<a href="http://on.wsj.com/1tEPAVN" title="http://on.wsj.com/1tEPAVN">http://on.wsj.com/1tEPAVN</a>)</p> <p>* With Venezuela holding back on releasing $3.8 billion in airline-ticket revenue because of strict currency controls, Delta Air Lines Inc, American Airlines Group Inc and other airlines have slashed service to Venezuela by half since January. (<a href="http://on.wsj.com/1pjKopL" title="http://on.wsj.com/1pjKopL">http://on.wsj.com/1pjKopL</a>)</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">FT</span></em></p> <p>The head of the International Monetary Fund, Christine Lagarde, is facing a formal investigation by a French court for alleged negligence in a political fraud affair dating from 2008 when she was finance minister.</p> <p>The European Central Bank has hired BlackRock Solutions to provide consultancy services in its preparations for a programme to buy asset-backed securities.</p> <p>Sales at Tesco slipped 4 percent on a quarterly basis according to industry data, highlighting the wounds inflicted by the supermarket price war on Britain's No.1 grocer.</p> <p>The battle for Brazil's telecoms market is hotting up after one of the country's largest phone companies, Grupo Oi SA , unveiled plans to take over Telecom Italia's local mobile business.</p> <p>Europe's largest budget carrier Ryanair is set to offer "business class" service on all of its flights as it tries to gain a bigger share of the European corporate travel market.</p> <p>Fashion chain Zara, owned by Spain's Inditex, pulled from sale on Wednesday a striped children's top decorated with a large six-pointed star following public outcry that it resembled clothing worn by inmates in Nazi concentration camps during the Holocaust. </p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">NYT</span></em></p> <p>* A number of United States banks, including JPMorgan Chase &amp; Co and at least four others, were struck by hackers in a series of coordinated attacks this month, according to four people briefed on a continuing investigation into the crimes. (<a href="http://nyti.ms/VREJu6" title="http://nyti.ms/VREJu6">http://nyti.ms/VREJu6</a>)</p> <p>* Christine Lagarde, the head of the International Monetary Fund, said on Wednesday that French prosecutors had placed her under formal investigation, in an escalation of a long-running inquiry into a murky business affair that dates to her time as finance minister under President Nicolas Sarkozy. (<a href="http://nyti.ms/1sBSnfy" title="http://nyti.ms/1sBSnfy">http://nyti.ms/1sBSnfy</a>)</p> <p>* With less than a month before its initial public offering, the Alibaba Group Holding Ltd &lt;IPO-BABA.N&gt; is intent on showing just how profitable - and focused on mobile - it truly is. The Chinese e-commerce behemoth disclosed on Wednesday that its profit nearly tripled in the quarter that ended June 30, to $2 billion. Its sales climbed 46 percent, to $2.5 billion. (nyti.ms/1tXKbHr)</p> <p>* A British regulator fined Royal Bank of Scotland Group PLC 14.5 million pounds, or about $24 million, on Wednesday for failing to offer proper advice to mortgage customers, and criticized the bank for its delays in responding to the initial complaints. (nyti.ms/1qgvMFK)</p> <p>* Tyson Foods Inc has reached a deal with the U.S. Justice Department to sell its hog-purchasing business as part of its planned $7.7 billion acquisition of Hillshire Brands Co . The Justice Department said Wednesday that it would require Tyson to sell its Heinold Hog Markets unit to win antitrust approval for the merger. (nyti.ms/1rBpkwM)</p> <p>* Lawmakers and governor Jerry Brown of California on Wednesday said they had reached an agreement to expand the California film incentive program, capping a drive by entertainment industry unions, filmmakers and executives to bolster sagging movie and television production in the state. (<a href="http://nyti.ms/1qiJBn7" title="http://nyti.ms/1qiJBn7">http://nyti.ms/1qiJBn7</a>)</p> <p>* The Securities and Exchange Commission unanimously approved rules on Wednesday that would require issuers of asset-backed securities - complex investments based on mortgages, auto loans or other types of debt - to disclose more information about the underlying loans. (nyti.ms/1nFOJ14)</p> <p>* Chiquita Brands International and Fyffes PLC tried to reassure investors about their planned merger, saying on Wednesday that they now expected the combined company to achieve an additional $20 million in annual cost savings by 2016. (nyti.ms/1leh17k)</p> <p>* The federal government is expected to finish its fiscal year with a relatively modest budget deficit as the gap between revenue and spending continues a sharp decline, the Congressional Budget Office said Wednesday. (<a href="http://nyti.ms/1q6GjEO" title="http://nyti.ms/1q6GjEO">http://nyti.ms/1q6GjEO</a>)</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">China</span></em></p> <p>CHINA SECURITIES JOURNAL</p> <p>- Yu Shengfa, vice president of e-commerce giant Alibaba's &lt;IPO-BABA.N&gt; future financial company, said the company has submitted applications to related regulators to set up "Ali Bank" which could be approved in September.</p> <p>SHANGHAI SECURITIES NEWS</p> <p>- Shanghai's municipal government has published a document outlining its strategies to develop the city into a global trading centre, including plans to build international trading platforms for commodities such as natural gas and iron ore in its free-trade zone.</p> <p>SECURITIES TIMES</p> <p>- China could implement real estate registration system in 2017, said Leng Hongzhi, an official at the Ministry of Land and Resources.</p> <p>CHINA DAILY</p> <p>- Lenovo Group Ltd will soon settle a year-old class action lawsuit over laptop malfunctions in the United States for approximately $70 million.</p> <p></p> <p><em><span style="text-decoration: underline;">Britain</span></em></p> <p>The Times</p> <p>SALMOND'S SCOTLAND WILL LIVE IN ETERNAL POVERTY, SAYS BROWN</p> <p>Inequality and poverty could "survive until doomsday" if Alex Salmond wins Scotland's independence referendum, according to former British Prime Minister Gordon Brown.</p> <p>TESCO'S WOES DEEPEN AS SHOPPERS CHECK OUT</p> <p>Sales at Britain's largest supermarket group have plunged and its market share has slipped again, highlighting the challenge facing Dave Lewis, Tesco's incoming chief executive.</p> <p>The Guardian</p> <p>DAVID CAMERON MULLS JOINING OBAMA IN BOMBING ISIS IN IRAQ</p> <p>David Cameron is planning to indicate to U.S. President Barack Obama and other NATO leaders at a summit in Wales next week that Britain is keeping open the option of joining the United States in launching air strikes against forces of the Islamic State in Iraq.</p> <p>CHRISTINE LAGARDE TO BE INVESTIGATED FOR ALLEGED ROLE IN POLITICAL FRAUD CASE</p> <p>The head of the International Monetary Fund, Christine Lagarde, has been charged with "simple negligence" over her handling of a controversial 400 million euro payout to French business tycoon Bernard Tapie when she was finance minister.</p> <p>The Telegraph</p> <p>DECLARE THE SOCIAL MIX OF YOUR STAFF, BRITISH COMPANIES TOLD Alan Milburn, head of the Social Mobility and Child Poverty Commission, condemns the scale of "elitism" at the top of British public life as he calls for companies to engineer a more socially balanced workforce.</p> <p>Sky News</p> <p>RYANAIR LAUNCHES 'BUSINESS CLASS' BENEFITS The no-frills carrier sees advantages of offering the business traveller a more flexible experience as part of its new approach. </p> <p>&nbsp;</p> <p><strong>Fly On The Wall Pre-Market Buzz</strong></p> <p>ECONOMIC REPORTS</p> <p>Domestic economic reports scheduled for today include:<br />Second estimate of Q2 GDP at 8:30--consensus up 4.0%<br />Jobless claims for week of August 23 at 8:30--consensus 300K<br />Pending home sales index for July at 10:00--consensus up 0.5% for the month</p> <p>ANALYST RESEARCH</p> <p>Upgrades</p> <p>Cott Corp. (COT) upgraded to Buy from Hold at Stifel<br />First Horizon (FHN) upgraded to Outperform from Market Perform at Keefe Bruyette<br />National Bank of Canada (NTIOF) upgraded to Perform from Underperform at Oppenheimer<br />Randgold Resources (GOLD) upgraded to Neutral from Underweight at HSBC</p> <p>Downgrades</p> <p>Brown Forman downgraded to Hold from Buy at Deutsche Bank<br />GT Advanced (GTAT) downgraded to Underperform from Market Perform at Raymond James<br />Genuine Parts (GPC) downgraded to Neutral from Buy at SunTrust<br />InterMune (ITMN) downgraded to Neutral from Buy at UBS<br />Sungy Mobile (GOMO) downgraded to Perform from Outperform at Oppenheimer<br />Visa (V) downgraded to Market Perform from Outperform at Raymond James<br />Williams-Sonoma (WSM) downgraded to Equal Weight from Overweight at Morgan Stanley</p> <p>Initiations</p> <p>Advance Auto Parts (AAP) initiated with a Buy at SunTrust<br />Allstate (ALL) initiated with a Neutral at Compass Point<br />AutoZone (AZO) initiated with a Neutral at SunTrust<br />Cooper Tire (CTB) initiated with a Neutral at SunTrust<br />Farmland Partners (FPI) initiated with an Outperform at FBR Capital<br />FireEye (FEYE) initiated with a Buy at Stifel<br />GasLog Partners (GLOP) initiated with an Overweight at Barclays<br />Goodyear Tire (GT) initiated with a Buy at SunTrust<br />ITC Holdings (ITC) coverage resumed with an Equal Weight at Barclays<br />Mercury General (MCY) initiated with a Neutral at Compass Point<br />Monro Muffler (MNRO) initiated with a Reduce at SunTrust<br />Monro Muffler (MNRO) initiated with a Reduce at SunTrust<br />O'Reilly Automotive (ORLY) initiated with a Buy at SunTrust<br />PGT, Inc. (PGTI) initiated with a Neutral at SunTrust<br />Safety Insurance (SAFT) initiated with a Buy at Compass Point<br />WEX Inc. (WEX) initiated with a Hold at Deutsche Bank<br />Whole Foods (WFM) initiated with a Neutral at Wedbush</p> <p>COMPANY NEWS<br />DuPont (DD) to pay $1.28 to resolve toxic gas leak allegations with DOJ, EPA<br />Deutsche Bank (DB) fined GBP4.7M by FCA for failing to properly report transactions<br />CME Group (CME) promoted John Pietrowicz to CFO<br />China Recycling Energy (CREG) chairman said its chairman made additional $18.9M investment in the company<br />Lear (LEA) signed a definitive agreement to acquire Eagle Ottawa for $850M<br />Keurig Green Mountain (GMCR) announced the appointment of José Octavio Reyes Lagunes, the retired vice chairman of The Coca-Cola Export Corporation (KO), to its board effective August 25</p> <p>EARNINGS</p> <p>Companies that beat consensus earnings expectations last night and today include:<br />Violin Memory (VMEM), Workday (WDAY)</p> <p>Companies that missed consensus earnings expectations include:<br />Coty (COTY), Greif (GEF), Exa Corp. (EXA), Sungy Mobile (GOMO), Guess (GES), Bally Technologies (BYI), Gordmans Stores (GMAN)</p> <p>Companies that matched consensus earnings expectations include:<br />Williams-Sonoma (WSM), Jiayuan.com (DATE), DHT Holdings (DHT), Casella Waste (CWST), Tilly's (TLYS)</p> <p>NEWSPAPERS/WEBSITES</p> <p>Hackers targeted JPMorgan Chase (JPM), 'at least' four other banks, NY Times reports<br />FBI investigating whether Russia involved with JPMorgan (JPM) hacking, Bloomberg says<br />GSK (GSK), Shire (SHPG) rumored to be interested in Tekmira (TKMR), Daily Mail says<br />Samsung (SSNLF) hit by new allegations of child labor in China, FT reports<br />Samsung (SSNLF), Lenovo (LNVGY) China supplier rejects child labor claims, Reuters says<br />Judge denies Apple (AAPL) request to block sale of Samsung (SSNLF) devices, AP says<br />Tiffany (TIF) stock should continue higher, Barron's says</p> <p>SYNDICATE</p> <p>Castle Brands (ROX) files $30M mixed securities shelf<br />Gramercy Property Trust (GPT) files to sell 22.24M shares of common stock<br />Nordstrom (JWN) files to sell common stock, no amount given <br />Orient Paper (ONP) raises $2.5M in a registered direct offering<br />Tiffany (TIF) files automatic mixed securities shelf </p> http://www.zerohedge.com/news/2014-08-28/frontrunning-august-28#comments Apple Asset-Backed Securities Barack Obama Barclays Blackrock Budget Deficit China Congressional Budget Office default Deutsche Bank European Central Bank FBI International Monetary Fund Iraq JPMorgan Chase Keefe Market Share Morgan Stanley Natural Gas Nicolas Sarkozy Raymond James Real estate Recession Reuters Royal Bank of Scotland Securities and Exchange Commission Ukraine Unemployment Thu, 28 Aug 2014 11:57:14 +0000 Tyler Durden 493621 at http://www.zerohedge.com Ukraine Accuses Russia Of Launching Invasion, Then Promptly Retracts http://www.zerohedge.com/news/2014-08-28/ukraine-accuses-russia-launching-invasion-then-promptly-retracts <p>It has been a busy morning: following a substantial surge in Ukraine separatist activity in the past 24 hours, which saw them capture the strategic Sea of Azov port town of Novoazovsk, a move which the NYT classified as "<a href="http://www.nytimes.com/2014/08/28/world/europe/ukraine-russia-novoazovsk-crimea.html?_r=0">Ukraine Reports Russian Invasion on a New Front</a>", Ukraine has turned on the disinformation spigot to max resulting in a constant verbal, and headline, diarrhea as follows:</p> <ul> <li><strong>POROSHENKO CONVENES SECURITY COUNCIL ON RUSSIAN `INVASION'</strong></li> <li>POROSHENKO: SITUATION IN UKRAINE'S EAST DETERIORATED SHARPLY</li> <li>UKRAINE EU AMBASSADOR CALLS FOR JOINT EFFORT TO `STOP THIS WAR'</li> <li>POROSHENKO SAYS SECURITY COUNCIL WILL DRAW UP FURTHER PLANS</li> <li>RUSSIAN ARMY CONTROLS NOVOAZOVSK: UKRAINE SECURITY COUNCIL</li> <li>YATSENYUK URGES UN SECURITY COUNCIL TO DEBATE UKRAINE SITUATION</li> </ul> <p>So sure was Ukraine that this time (unlike all those previous disinformation launches) Russia has invaded that Anton Herashchenko, adviser to Ukrainian Interior Ministry, actually commented on his Facebook page saying "Invasion of regular Russian army of Putin to Ukraine is an accomplished fact,” Adding that Putin "de-facto places Ukraine on a war-footing at a time when a decree was signed to dissolve parliament."</p> <p>Well, yes, Ukraine has no government, but Russia of course denied all of it:</p> <ul> <li><strong>PESKOV WON'T COMMENT ON REBEL CLAIM OF RUSSIAN TROOP SUPPORT</strong></li> </ul> <p>All of this latest disinformation propaganda was summarized by <a href="http://www.reuters.com/article/2014/08/28/us-ukraine-crisis-idUSKBN0GS10C20140828">Reuters best</a>:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>Ukraine accused Russia on Thursday of mounting an invasion in the southeast of the country in support of pro-Moscow separatist rebels. </strong>Ukraine's security and defense council said the border town of Novoazovsk and other parts of Ukraine's south-east had fallen under the control of Russian forces who together with rebels were staging a counter-offensive.</p> <p>&nbsp;</p> <p>"A counter-offensive by Russian troops and separatist units is continuing in south-east Ukraine," the council said in a post on Twitter.</p> <p>&nbsp;</p> <p>President Petro Poroshenko, in a statement explaining his decision to cancel a visit to Turkey, said: "An invasion of Russian forces has taken place."</p> <p>&nbsp;</p> <p><strong>Russia denies intervening in Ukraine by arming the rebels or sending soldiers across the border. The defense ministry declined to comment on reports of Russian tanks in Novoazovsk.</strong></p> <p>&nbsp;</p> <p>“The Russian authorities clearly said many times there are no regular Russian troops there. Russia is not taking part in this armed conflict,” said a Russian diplomatic source. The latest escalation in the five-month crisis came only two days after the presidents of the two countries held their first talks in more than two months and agreed to work towards launching a peace process.</p> <p>&nbsp;</p> <p>Ukrainian Prime Minister Arseny Yatseniuk appealed to the United States, European Union and G7 countries "to freeze Russian assets and finances until Russia withdraws armed forces, equipment and agents". Rebel advances this week have opened a new front in the conflict just as Ukraine's army appeared to have gained the upper hand, virtually encircling the separatists in their main strongholds of Donetsk and Luhansk.</p> <p>&nbsp;</p> <p>Anton Gerashchenko, an adviser to Ukrainian Interior Minister Arsen Avakov, said on Facebook:<strong> "The invasion of Putin’s regular Russian army of Ukraine is now an established fact!"</strong></p> <p>&nbsp;</p> <p>French President Francois Hollande said it would be "intolerable and unacceptable" if it was proved true that Russian troops had entered Ukrainian territory.</p> </blockquote> <p>So a lot of words all of which were best summarized by Ukraine's <em>Prime Minister in dissolutia</em>, Yatseniuk, who as a reminder does not have an official role any more after the Ukraine government was dissolved (on Twitter) last week:</p> <ul> <li><strong>PUTIN STARTED WAR IN EUROPE, UKRAINE’S PREMIER YATSENYUK SAYS</strong></li> </ul> <p>Ok so far so good: accusations, counteraccusations - we are used to that. </p> <p>But where things once again got surreal, making everyone not only laugh but wonder how the CIA has lost the plotline so badly, was the following "clarification" headline from Reuters, which noticed some rather substantial change in the language on the website of the Ukraine president: </p> <ul> <li><span style="text-decoration: underline;"><strong>CORRECTED-UKRAINIAN PRESIDENT POROSHENKO SAYS RUSSIAN TROOPS HAVE BEEN BROUGHT INTO UKRAINE (NOT 'RUSSIAN MILITARY INVASION HAS TAKEN PLACE') - PRESIDENTIAL WEBSITE</strong></span></li> </ul> <p>Indeed, instead of explicitly saying a "Russian military invasion has taken place", the <a href="http://www.president.gov.ua/en/news/31102.html">website now reads</a>: "I have made a decision to cancel my working visit to the Republic of Turkey due to sharp aggravation of the situation in Donetsk region, particularly in Amvrosiivka and Starobeshevo, <strong>as Russian troops were actually brought into Ukraine," the President noted.</strong>"</p> <p>For all those wondering if to <em>BTFATH </em>or <em>STFR</em>, please sit tight until Ukraine gets its marching orders from the US State Dept whether to brand the "Russian troops being brought into Ukraine" as an invasion, or merely an accidental crossing, depending on how all of this will impact US strategy in Syria, which all of this is really all about: because remember, if and when the US begins to bomb the Assad regime under the guise it is fighting ISIS, all it will do is greenlight Qatar sending its gas pipeline to Europe... which after all has been the plan all along since 2012. </p> <p>So stay tuned as this "socially-networked war" comedy unfolds before our eyes.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="567" height="390" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/Ukraine%20troops.jpg?1409224809" /> </div> </div> </div> http://www.zerohedge.com/news/2014-08-28/ukraine-accuses-russia-launching-invasion-then-promptly-retracts#comments BTFATH European Union Greenlight Reuters Turkey Twitter Twitter Ukraine Thu, 28 Aug 2014 11:24:21 +0000 Tyler Durden 493620 at http://www.zerohedge.com Futures Slide As Ukraine Fighting "Re-Escalates" Again http://www.zerohedge.com/news/2014-08-28/futures-slide-ukraine-fighting-re-escalates-again <p><em>If you like your de-escalation, you can keep your de-escalation. </em>To think that heading into, and following the Russia-Ukraine "summit" earlier this week there was so much hope that the tense Ukraine civil war "situation" would somehow fix itself. Oh how wrong that thinking was considering overnight, following rebel separatists gains in the southeast of Ukraine which included the strategic <a href="https://www.google.com/maps/place/Novoazovs%27k,+Donetsk+Oblast,+Ukraine/@46.3136914,38.8336015,7z/data=!4m2!3m1!1s0x40e6b8b1453d2e51:0x6907c69ba1f8db8c">port of Novoazvosk&nbsp;</a>and which is "<a href="http://www.bbc.com/news/world-europe-28951319">threatening to open up a new front in the war</a>" including setting up a land corridor to Russia controlled-Crimea, Ukraine's president Poroshenko for the first time came out and directly accused Russia of an "Invasion", or at least a first time in recent weeks, saying he has convened the security council on the recent Russian actions.</p> <p>And while none of this is particularly new or unexpected, that it happens on a day in which Europe reported yet another batch of very adverse data, including a big drop in European confidence as well as Spain sliding again into outright deflation, is hardly supportive of risk especially following yesterday's Reuters comment that no ECB action is to be expected absent a dramatic slide in inflation. As a result bond yields have fallen to fresh record lows across the board, pushing US TSYs higher as well, while for the first time equities can't find solace in the hope that bad news out of Europe is really great news out of the ECB, and as a result have tumbled.</p> <p>In the Asian session overnight, major bourses are mostly trading softer following the lackluster performance in US and European equities yesterday. The Nikkei and the Shanghai Composite are down -0.5% and -0.6%, respectively. Away from equities, Treasuries have firmed further following on from yesterday’s rally. As we go to print the 10yr and 30yr UST yield is around 2.35% and 3.10%, respectively. Indeed following the 4bp and 6bp decline in the 10yr and 30yr UST yield yesterday, the 10s30s curve is now around 75bps and the flattest as it has ever been since 30 Sept 2009. The 10s/30s was nearly as wide as 100bps in February but in reality it has been on a flattening trend throughout the course of this year. The flatter US rates curve is also providing support to longer dated USD sovereigns in Asia.* Asian stocks fall with the Sensex outperforming and the Hang Seng underperforming. <strong>MSCI Asia Pacific down 0.3% to 148.3, Nikkei 225 down 0.5%, Hang Seng down 0.7%, Kospi up 0%, Shanghai Composite down 0.6%, ASX down 0.5%, Sensex up 0.3%. 2 </strong>out of 10 sectors rise with telcos, health care outperforming and energy, utilities underperforming</p> <p>European shares fall with the basic resources and financial services sectors underperforming and utilities, food &amp; beverage outperforming. The Swedish and Italian markets are the worst-performing larger bourses, the Dutch the best. Spanish 2Q GDP in line with estimates. Italy’s top banks said to seek up to $36b from ECB. The euro is stronger against the dollar. Greek 10yr bond yields rise; Portuguese yields increase. &nbsp; 1 out of 19 Stoxx 600 sectors rise; utilities, food &amp; beverage outperform, basic resources, financial services underperform; 20.2% of Stoxx 600 members gain, 77% decline.</p> <p>Looking to the day ahead we have quite a busy day for data. In Europe we have Spanish August inflation data (expected -0.6% MoM) and the second read on Spanish Q2 GDP (expected unch at +0.6%), German August unemployment and inflation reads (expected at 6.7% and +0.0% MoM respectively), Italian June retail sales and business confidence (expected at -0.5% MoM and 99.2 respectively) and also Euro area August economic, industrial, consumer and services confidence which are expected to come in at 101.5, -4.5, -10 and 3.5 respectively). Over in the US we have August initial jobless claims (expected in at 300k), the second read on Q2 GDP (BBG consensus is for a read of +3.9% whilst DB expects it at +3.8%) and the second read on Q2 Core PCE (BBG consensus is for a read of +2%), July Pending Home Sales (expected +0.5% by the market and +1.5% by DB) and the Kansas City Fed manufacturing index (expected in at 7).</p> <p><strong>Market Wrap</strong></p> <ul> <li>S&amp;P 500 futures down 0.4% to 1989.5</li> <li>US 10Yr yield down 3bps to 2.327%</li> <li>German 10Yr yield down to at 0.88%</li> <li>MSCI Asia Pacific down 0.3% to 148.3</li> <li>Gold spot up 0.5% to $1289.3/oz</li> </ul> <p><strong>Bulletin Headline Summary from RanSquawk and Bloomberg</strong></p> <ul> <li>European fixed income markets retreat from all-time highs as German and Spanish inflation data dampen the case for ECB action next Thursday </li> <li>European equities slump on further evidence of Russian activity in eastern Ukraine and dwindling prospects of ECB action </li> <li>Attention turns to US GDP (expected to be revised to 3.9% from 4.0%) and the final issue from the US Treasury (USD 29bln 7yr Notes)</li> <li>Treasuries gain, 10Y notes near 2.339% support as ECB rally continues; 10Y bunds yield 0.89% as Ukraine warns of Russian invasion, Germany threatened Moscow with further sanctions.</li> <li>Week’s auctions conclude with $29b 7Y notes, WI yield 2.032% vs 2.250% award in July</li> <li>Pro-Russian rebels widened their attacks on government forces, taking several towns outside the strongholds of Donetsk and Luhansk, including near the Sea of Azov, opening a new front and supply channel, according to a Ukrainian official</li> <li>Euro-area economic confidence fell more than forecast, Spanish consumer prices dropped the most in five years and German unemployment unexpectedly rose in a burst of data backing Draghi’s warning that more stimulus may be needed</li> <li>Rising stress in China’s $6t shadow banking industry is testing central bank Governor Zhou Xiaochuan’s resolve to limit monetary easing as risks to the government’s growth target climb</li> <li>Emmanuel Macron’s appointment as France’s&nbsp; economy and industry minister in place of Arnaud Montebourg shows the gulf between rank-and-file members of Hollande’s Socialist Party and the competing visions of France’s economic future</li> <li>A year after he threatened attacks on Syrian forces loyal to President Bashar al-Assad, Obama is weighing airstrikes against Islamic State extremists in Syria that could benefit Assad</li> <li>More than 20,000 people may be infected with the Ebola virus before the outbreak in West Africa is controlled, the World Health Organization said as it sought $490m in funding</li> <li>The IMF’s board will meet as early as this week to hear Managing Director Christine Lagarde explain her involvement in a French court decision that threatens to tarnish the lender’s reputation</li> <li>Sovereign yields extend declines. Asian, European stocks, U.S. stock futures decline. WTI crude and copper lower, gold gains</li> </ul> <p><strong>US Econ Docket </strong></p> <ul> <li>8:30am: GDP Annualized, 2Q revised, est. 3.9% (prior 4%); </li> <li>Personal Consumption, 2Q revised, 2.4% (prior 2.5%)</li> <li>GDP Price Index, 2Q revised, est. 2Q revised, est. 2% (prior 2%)</li> <li>Core PCE, 2Q, est. 2% (prior 2%)</li> <li>8:30am: Initial Jobless Claims, Aug. 23, est. 300k (prior 298k)</li> <li>Continuing Claims, Aug. 16, est. 2.51m (prior 2.5m)</li> <li>9:45am: Bloomberg Consumer Comfort, Aug. 24 (prior 36.6)</li> <li>10:00am: Pending Home Sales m/m, July, est. 0.5% (prior -1.1%); Pending Home Sales y/y, July, prior -4% (prior -4.5%)</li> <li>11:00am: Kansas City Fed Manufacturing Activity, Aug., est. 7 (prior 9)</li> <li>1:00pm: U.S. to sell $29b 7Y notes</li> </ul> <p>&nbsp;</p> <p><strong>FIXED INCOME</strong></p> <p>Bund futures softened from the open as markets pulled back their expectations of ECB easing as soon as next Thursday. Spanish and German CPI data continued to show a dire inflation picture across the Eurozone, however failed to provide what ECB sources referred to as an ‘inflation slump’ yesterday, in order to drive the ECB toward ABS purchases. Furthermore, ECB money supply data ticked higher than expected (1.5% vs. Exp. 1.3%), supporting the view that June’s easing measures could be sufficient to drive inflation expectations higher. As such, Eurozone spreads modestly widened against the German benchmark, with Italian underperforming as EUR 6.5bln of BTP issuance came onto the market at an unsurprisingly record low of 2.39% on 10yr debt.<br />Final Barclays month end extension for Pan-Euro Agg at +0.03y (Prev. 0.12yrs, 12m average +0.03yrs), Sterling Agg Tsy at +0.08y, US Treasuries +0.13yrs (Prelim. +0.12yrs, 12m average +0.09yrs)</p> <p><strong>EQUITIES</strong> </p> <p>European equity markets trade softer, with underperformance in the benchmark DAX as dwindling expectations of ECB ABS purchases, or ‘private QE’, alongside further militarization in eastern Ukraine drags equities away from multi-month highs printed earlier in the week. The leader of the pro-Russian separatists Zakharchenko stated that serving Russian soldiers are among the rebel ranks, however are operating on leave from their posts in order to fight with the separatist military – further heightening concerns that Russia could fall under further sanctions pressure. Separately, UK miners sharply underperform, with Rio Tinto and Anglo-American falling as much as 2.5% after Chinese iron ore futures slumped as much as 3% to contract lows overnight as a clampdown on credit weighed on industrial metal purchases. US stock futures have been dragged down by their European counterparts, indicating a lower open on Wall Street.</p> <p><strong>FX</strong> </p> <p>EUR/USD reclaimed 1.32 on the back of stronger than expected ECB money supply figures, and continues to trade in between large expiring option strikes at 1.3200 (USD 1.14bln) and 1.3250 (USD 2bln), due to roll off at the 1500BST NY cut. Elsewhere, AUD/USD broke above the 50DMA after Q2 Australian Private Capital Expenditure posted the first positive reading since September 2013 (1.1% vs. Exp. -0.9% (Prev. -4.2%, Rev. -2.5%), a result likely to be welcomed by the RBA ahead of their rate decision next week, especially given the recent poor data out of Australia.</p> <p><strong>COMMODITIES</strong></p> <p>Spot gold and silver have been supported from the open by the weaker USD and the tensions in eastern Ukraine. Silver sharply outperforms, lifting spot gold toward the 100DMA at USD 1,295.50. WTI and Brent crude futures trade lower after yesterday’s build in Cushing OK stockpiles, further pressured by expectations of Libyan production coming back online (expected to reach 1mln bpd by the end of September).</p> <p>* * * </p> <p><strong>DB's Jim Reid concludes the overnight recap</strong></p> <p>Yesterday European government bond yields once again hit new all-time lows as the 10 year yields on Dutch, German, Spanish, Italian and French government bonds all shed around 2-4bps. The 10Y Bund has been trading sub-1% in yield since August 21st and reached an intraday low of 0.895% yesterday before closing at 0.91%. This all comes on the back of what has been a truly impressive month for the asset class which has seen 10 year government yields across Europe drop, including on Dutch (-28bps), German (-22bps), Spanish (-41bps), Italian (-37bps) and French (-26bps) govies. These moves have come on the back of a darkening picture for the euro area economy and a rise in the probabilities being attached to ECB QE (more on this later) but have also been part of a broader global downward trend in yields. UK and US 10Y government bond yields have also dropped 18bps and 12bps respectively this month. We have talked previously about the ongoing debate as to the destination of long-term bond yields in this cycle and in an interesting recent paper entitled, “The Revived Bretton Woods System’s First Decade” DB Group Chief Economist David Folkerts-Landau adds to this debate whilst discussing the current global macroeconomic system and the role China has played in it over the past decade. On the real rates issue the piece highlights how, “China’s … export-driven development strategy has depressed long-term real interest rates in industrial countries at every stage of the business cycle. This occurred because exchange rate undervaluation generated massive exports of capital via official intervention, absorbed principally by the US. Even as the China phase of the system gradually ends, long-term real rates are likely to stay unusually low because there is still a large pool of surplus labor for the global system to absorb.” </p> <p>Moving back to yesterday’s moves, one of the big pieces of news was that the ECB has hired BlackRock to advise it on developing a program to buy asset-backed securities (Bloomberg News). Our main take-away from this news is that it is further evidence (if more were required) that the ECB is very much walking down the path to QE. As we noted in yesterday’s EMR, our European economists expect the ECB to announce private QE at their next meeting on September 4th. Yesterday’s weak confidence data probably increased the pressure on the ECB to act as French August business confidence fell to 91 (vs expectation it would hold at 93) and manufacturing confidence fell to 96 (from 97), the Italian August consumer confidence index read came in at 101.9 (vs 104.6 previously and 104 expected) and German September consumer confidence fell to 8.6 (from 9 previously and 8.9 expected). French July jobseekers data also disappointed, rising +26.1k vs expectation it would rise +14.5k. On the back of this data equity markets seemed in wait and see mode yesterday and were broadly flat in Europe and the US. European credit underperformed with iBoxx Main widening +0.5bps and Xover +3bps wider.</p> <p>Turning to the Asian session overnight, major bourses are mostly trading softer following the lackluster performance in US and European equities yesterday. The Nikkei and the Shanghai Composite are down -0.5% and -0.3%, respectively. Although the Hang Seng (+0.2%) and KOSPI (+0.2%) are somewhat more resilient this morning. Away from equities, Treasuries have firmed further following on from yesterday’s rally. As we go to print the 10yr and 30yr UST yield is around 2.35% and 3.10%, respectively. Indeed following the 4bp and 6bp decline in the 10yr and 30yr UST yield yesterday, the 10s30s curve is now around 75bps and the flattest as it has ever been since 30 Sept 2009. The 10s/30s was nearly as wide as 100bps in February but in reality it has been on a flattening trend throughout the course of this year. The flatter US rates curve is also providing support to longer dated USD sovereigns in Asia. </p> <p>Before we wrap up with the day ahead, there are fresh reports that Russian troops have launched an incursion into south-east of Ukraine (BBC). Ukraine said Russian forces had crossed the border and were supporting separatist attacks and the US State Department said it suspected a Russian directed counter-attack was underway. German Chancellor Merkel has demanded an explanation from Mr Putin. A rebel leader in Donetsk told reporters that Russia was not involved in the current offensive. Clearly this remains an ongoing story but geopolitics seems to have taken a backseat for now given the focus on ECB's upcoming policy moves. </p> <p>Looking to the day ahead we have quite a busy day for data. In Europe we have Spanish August inflation data (expected -0.6% MoM) and the second read on Spanish Q2 GDP (expected unch at +0.6%), German August unemployment and inflation reads (expected at 6.7% and +0.0% MoM respectively), Italian June retail sales and business confidence (expected at -0.5% MoM and 99.2 respectively) and also Euro area August economic, industrial, consumer and services confidence which are expected to come in at 101.5, -4.5, -10 and 3.5 respectively). Over in the US we have August initial jobless claims (expected in at 300k), the second read on Q2 GDP (BBG consensus is for a read of +3.9% whilst DB expects it at +3.8%) and the second read on Q2 Core PCE (BBG consensus is for a read of +2%), July Pending Home Sales (expected +0.5% by the market and +1.5% by DB) and the Kansas City Fed manufacturing index (expected in at 7).</p> http://www.zerohedge.com/news/2014-08-28/futures-slide-ukraine-fighting-re-escalates-again#comments Asset-Backed Securities Australia Barclays Blackrock Bloomberg News Bond China Consumer Confidence Consumer Prices Continuing Claims Copper CPI Crude Equity Markets Eurozone fixed Germany Initial Jobless Claims Jim Reid Money Supply Nikkei None Personal Consumption RANSquawk Real Interest Rates Reality Reuters Shadow Banking Sovereigns Ukraine Unemployment Thu, 28 Aug 2014 11:04:52 +0000 Tyler Durden 493619 at http://www.zerohedge.com Gold Shines Most in September on Seasonal Buys- Bloomberg Chart of Day http://www.zerohedge.com/news/2014-08-28/bloomberg-chart-day-gold-shines-most-september-seasonal-buys <p style="line-height: 1.1500000000000001; margin-top: 0pt; margin-bottom: 0pt;" dir="ltr"><span style="font-size: 19px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: bold; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><span style="color: #222222; font-family: Calibri;"><span style="font-size: 19px; line-height: 21.850000381469727px; white-space: pre-wrap;"><strong><a href="http://www.goldcore.com/goldcore_blog/Gold_Shines_Most_in_September_on_Seasonal_Buy_Bloomberg_Chart_of_Day">Bloomberg Chart of Day: Gold Shines Most in September on Seasonal Buys</a><br /></strong></span></span><br class="kix-line-break" /></span><span style="font-size: 19px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: bold; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><img src="https://lh4.googleusercontent.com/FoU50xP7_jCNZeeg7si0Db83myXyiG2vRSoHfwzloZhhihCzEicCP-hhHY21gZ2eGfHZxUTmWS_FroSzQ77ZAylUIHOiYUyV8oBn-TErFlllPBPzPYwuNerJLWSBl-NBHQ" width="624px;" height="325px;" style="border: none; transform: rotate(0.00rad);" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: bold; font-style: italic; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BLOOMBERG CHART OF THE DAY - September Sees 3% Gains Over 20 Years</span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Gold investors hurting from recent price falls and a long period of consolidation will be encouraged by the historical record and research and showing gold performs best in September.</span></p> <p><span style="line-height: 1.3em; font-size: 15px; font-family: Calibri; color: #2d2b2c; vertical-align: baseline; white-space: pre-wrap;">The </span><a href="http://www.bloomberg.com/news/2014-08-26/gold-shines-most-in-september-on-seasonal-buys-chart-of-the-day.html" style="font-size: 1em; line-height: 1.1500000000000001;"><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">BLOOMBERG CHART OF THE DAY</span></a><span style="line-height: 1.3em; font-size: 15px; font-family: Calibri; color: #2d2b2c; vertical-align: baseline; white-space: pre-wrap;"> shows bullion averaged gains of 3% each September over the past 20 years, beating next best month November, when prices rose an average 1.8% according to Bloomberg based on a market update by GoldCore. We covered gold’s seasonality and gold’s best performing months </span><a href="http://www.goldcore.com/goldcore_blog/Gold_s_Sweet_Spot_Strongest_Months_Are_August_September_November_And_January" style="font-size: 1em; line-height: 1.1500000000000001;"><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">here</span></a><span style="line-height: 1.3em; font-size: 15px; font-family: Calibri; color: #2d2b2c; vertical-align: baseline; white-space: pre-wrap;">.</span></p> <p style="line-height: 1.1500000000000001; margin-top: 0pt; margin-bottom: 0pt;" dir="ltr"><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Buying increases with India’s festival period, which runs from late August to October and is followed by the wedding season. At these times, bullion is bought for part of the bridal trousseau or in jewelry and bar form as gifts from relatives.</span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Chinese purchases may also increase toward year-end, before the country’s Lunar New Year celebration in February. China &nbsp;replaced India as the largest gold buyer in 2013.</span></p> <p><span style="color: #2d2b2c; font-family: Calibri; font-size: 15px; line-height: 1.1500000000000001; white-space: pre-wrap;">“Indian jewelers and dealers will be stocking up in the coming weeks, so it should affect prices,” said Mark O’Byrne, a director at brokerage GoldCore Ltd. in Dublin. </span></p> <p style="line-height: 1.1500000000000001; margin-top: 0pt; margin-bottom: 0pt;" dir="ltr"><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“A lot of traders are aware of this trend towards seasonal strength, so that may contribute to higher prices. They tend to buy and that creates momentum.”</span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><a href="http://www.goldcore.com/goldcore_blog/Gold_s_Sweet_Spot_Strongest_Months_Are_August_September_November_And_January" style="text-decoration: none;"><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span></a><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See </span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: italic; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Gold’s Sweet Spot - Strongest Months Are August, September, November And January</span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="text-decoration: underline; font-size: 15px; font-family: Calibri; color: #2d2b2c; font-weight: normal; font-style: normal; font-variant: normal; vertical-align: baseline; white-space: pre-wrap; background-color: #ffffff;"><a href="http://www.goldcore.com/goldcore_blog/Gold_s_Sweet_Spot_Strongest_Months_Are_August_September_November_And_January" style="text-decoration: none;">here </a></span><a href="http://www.goldcore.com/goldcore_blog/Gold_s_Sweet_Spot_Strongest_Months_Are_August_September_November_And_January" style="text-decoration: none;"><span style="text-decoration: none; font-size: 15px; font-family: Calibri; color: #2d2b2c; font-weight: normal; font-style: normal; font-variant: normal; vertical-align: baseline; white-space: pre-wrap; background-color: #ffffff;"><br class="kix-line-break" /></span></a></p> <p style="line-height: 1; margin-top: 0pt; margin-bottom: 0pt;" dir="ltr"><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><img src="https://lh3.googleusercontent.com/PZtj6mvGBKEZw4-_XGe96_JN39NPwK3ZswtRZzAtPDO__4zBsy_pyTIdxy40zACfqYvTR3UP_Y0iu9Oq-3erQ8uPUlwbUYytSFjQeILSslapEGsyzvgrShroPccPmaiBTA" width="624px;" height="304px;" style="border: none; transform: rotate(0.00rad);" /></span><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: bold; font-style: italic; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Gold in U.S. Dollars - 2 Years (Thomson Reuters)</span></p> <p><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This morning </span><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><span id="docs-internal-guid-3fc50743-1ba3-a739-5401-e7557651a073"><span style="text-decoration: underline;"><span style="color: #222222; vertical-align: baseline;"><a href="http://www.goldcore.com/">gold in Singapore</a></span></span><span style="vertical-align: baseline;"> ticked higher to $1,285/oz and gold in London has been bid higher to $1,293/oz. </span></span><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #222222; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Gold is now trading above its 200 moving average of $1284, and the gold price remains relatively strong despite a stronger dollar, rallying equity market indexes, and a relative easing of geopolitical tensions. Geopolitical risk remains heightened and yet complacency remains extremely high.</span></p> <p><span style="font-size: 15px; font-family: Calibri; color: #222222; vertical-align: baseline; white-space: pre-wrap;">The gold/silver ratio is currently 66.10, near its one year high showing silver remaining very good value versus gold.</span><span style="font-size: 15px; font-family: Calibri; color: #222222; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; vertical-align: baseline; white-space: pre-wrap;"><br /><br class="kix-line-break" /></span><span style="font-size: 19px; font-family: Calibri; color: #222222; font-weight: bold; vertical-align: baseline; white-space: pre-wrap;">Receive our award winning </span><span style="font-size: 19px; font-family: Calibri; color: #222222; font-weight: bold; vertical-align: baseline; white-space: pre-wrap; background-color: #ffffcc;">research</span><span style="font-size: 19px; font-family: Calibri; color: #222222; font-weight: bold; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="http://info.goldcore.com/goldcore_email_subscription_preferences"><span style="font-size: 19px; font-family: Calibri; color: #222222; font-weight: bold; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap; background-color: #ffffcc;">here</span><span style="font-size: 15px; font-family: Calibri; color: #2d2b2c; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span></a></p> http://www.zerohedge.com/news/2014-08-28/bloomberg-chart-day-gold-shines-most-september-seasonal-buys#comments China India Reuters Thu, 28 Aug 2014 08:10:06 +0000 GoldCore 493618 at http://www.zerohedge.com Merkel Slams US Hegemony? "America Can't Solve All The World's Problems Anymore" http://www.zerohedge.com/news/2014-08-27/merkel-slams-us-hegemony-america-cant-solve-all-worlds-problems-anymore <p>First Russia and China, then UAE, Egypt, and Turkey... and now it appears Germany (following a phone call with Putin) is pulling the rug out from under US hegemony - just as Obama's warmongery ramps up...</p> <ul> <li><strong>*MERKEL SAYS U.S. CAN'T SOLVE ALL THE WORLD'S PROBLEMS ANYMORE</strong></li> </ul> <p>Which is odd because just yesterday, President Obama (who never lies) stated <em>"<strong>The United States is and will remain the one indispensable nation in the world...</strong>"</em> adding that<em> "no other nation can do what we do."</em> Perhaps he is wrong?</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>“Even a superpower can’t solve all of the problems alone anymore,” German Chancellor Angela Merkel says.</strong></p> </blockquote> <p>Merkel did not stop there...</p> <ul> <li><strong>*PUTIN, MERKEL URGE DE-ESCALATION IN UKRAINE, KREMLIN SAYS</strong></li> <li><strong>*PUTIN, MERKEL DISCUSSED GAS TRANSIT VIA UKRAINE, KREMLIN SAYS</strong></li> <li><strong>*PUTIN INFORMED MERKEL OF NEW EAST UKRAINE AID PLAN: KREMLIN</strong></li> <li><strong>*MERKEL URGES HOLLANDE TO CONTINUE REFORMS IN FRANCE</strong></li> <li><strong>*MERKEL SAYS HOLLANDE HAS CHANCE TO REVIVE FRENCH ECONOMIC POWER</strong></li> </ul> <p>Seems like she is returning to the offensive from the defensive...</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="673" height="486" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140827_fmerk.jpg?1409158154" /> </div> </div> </div> http://www.zerohedge.com/news/2014-08-27/merkel-slams-us-hegemony-america-cant-solve-all-worlds-problems-anymore#comments China France Germany President Obama Turkey Ukraine Thu, 28 Aug 2014 03:29:39 +0000 Tyler Durden 493581 at http://www.zerohedge.com