http://www.zerohedge.com/fullrss2.xml/%2A%7CARCHIVE%7C%2A/594087 en US PMIs Tumble To 9-Month Lows, Catching Down To Collapse In 'Hard' Data http://www.zerohedge.com/news/2017-06-23/us-pmis-tumble-8-month-lows-catching-down-collapse-hard-data <p>Following disappointment from China last week, and Europe this morning, <strong>US PMIs (both manufacturing and services) dropped and disappointed</strong> as it appears the lagged impact of China&#39;s slumping credit impulse are finally hitting the world&#39;s economies.</p> <p>With &#39;hard&#39; data collapsing to 13 month lows, it is not surprising that<strong> &#39;soft&#39; survey data is finally catching down with Manufacturing at 9-month lows.</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_pmi.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_pmi_0.jpg" style="width: 600px; height: 314px;" /></a></p> <p><em>Who could have seen this tumble in &#39;soft&#39; data coming?</em></p> <p>Commenting on the flash PMI data, Chris Williamson, <a href="https://www.markiteconomics.com/public">Chief Business Economist at IHS Markit said</a>:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;<strong>The economy ended the second quarter on a softer note.</strong> The June PMI surveys showed some pay-back after a strong May, indicating the second weakest expansion of business activity since last September.</p> <p>&nbsp;</p> <p><strong>&ldquo;The average expansion seen in the second quarter is down on that seen in the first three months of the year, indicating a slowing in the underlying pace of economic growth.</strong> While official GDP data are expected to turn higher in the second quarter after an especially weak start to the year (our recent GDP tracker based on various official and survey data points to 3.0% growth), the relatively subdued PMI readings suggest there are some downside risks to the extent to which GDP will rebound.</p> <p>&nbsp;</p> <p>&ldquo;There are signs, however, that growth could pick up again: <strong>new orders showed the largest monthly rise since January,</strong> business optimism about the year ahead perked up and hiring remained encouragingly resilient. The survey is indicative of non-farm payroll growth of approximately 170,000.</p> <p>&nbsp;</p> <p>&ldquo;<strong>Average prices charged for goods and services meanwhile showed one of the largest rises in the past two years</strong>, pointing to improved pricing power amid healthy demand.&rdquo;</p> </blockquote> <p>So rising prices and tumbling growth - <u><strong>Stagflation looms once again.</strong></u></p> <p><strong>Historical comparisons of the PMI against GDP indicates that the PMI is running at a level broadly consistent with the economy growing at a 0.4% quarterly rate (1.5% annualized) in the second quarter,</strong> or just over 2% once allowance is made for residual seasonality in the official GDP data.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_pmi1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_pmi1_0.jpg" style="width: 600px; height: 457px;" /></a></p> <p><a href="http://www.zerohedge.com/news/2017-06-15/what-does-trump-know-gdp-numbers-are-going-be-shockingly-good">Not exactly the &quot;shockingly good numbers&quot; that President Trump said we would see in Q2?</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="958" height="502" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170623_pmi.jpg?1498225748" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/us-pmis-tumble-8-month-lows-catching-down-collapse-hard-data#comments 2015–16 Chinese stock market turbulence Business China Economic growth Economy flash Forms of government Gross domestic product Markit Purchasing Managers' Index Stagflation United States World Fri, 23 Jun 2017 13:53:57 +0000 Tyler Durden 598537 at http://www.zerohedge.com "The Hope Trade" Is Over: BofA Slashes Its 2017 GDP Forecast To Just 2.1% http://www.zerohedge.com/news/2017-06-23/hope-trade-over-bofa-slashes-its-2017-gdp-forecast-just-21 <p>First they came for the Trump Trade... then they came for the hope. And, as a result, BofA has thrown in the towel on its economic rebound for this year. </p> <p>As BofA's Michelle Meyer writes, "<strong>Hopes for a big fiscal stimulus have faded, prompting us to revise our 2018 GDP growth forecast to 2.1%, down from 2.5%. While growth will be slower, it is important to remember that the economy does not "need" stimulus to expand</strong>." Unless it does of course, because as Citi showed recently, all central bank liquidity injections are fungible, and prop up not only stocks but also economies. </p> <p><em>In any case, here is BofA's explanation why it, like the rest of Wall Street not to mention the Fed, were all wrong.</em></p> <p><strong>Revising 2018</strong></p> <p>Back in November when we released our Year Ahead piece, we argued that growth would be a trend-like 2% this year but would rise to 2.5% next year amid fiscal stimulus. We feel generally comfortable with our forecast for this year but now believe growth will end up being slower next year. We are therefore revising our forecast to 2.1% for 2018, implying that the economy will continue to grow modestly above trend .</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20gdp_0.jpg" width="500" height="209" /></p> <p><strong>The hope trade</strong></p> <p>There are three main reasons for our downward revision to growth next year:</p> <ol> <li>The prospects of tax reform have dimmed. While it is still possible that legislation is passed, it seems that it would be later and smaller than previously speculated. </li> <li>Policy uncertainty is high and threatens to remain elevated into next year given tensions in Washington and controversies in the Trump administration. This has contributed to a "wait and see" mode among businesses and consumers.</li> <li>The auto sector is shifting from a tailwind to a headwind next year. This means that auto output should go from adding a few tenths to annual GDP growth to slicing a tenth or two.</li> </ol> <p>Keep in mind that our downward revision in growth next year simply returns our forecast to the post-recession average of 2.1%. The US does not need fiscal easing to enjoy slightly above-trend growth. There are plenty of reasons to feel confident that the expansion will persist into 2018 without stimulus. The labor market is still adding workers in excess of what is necessary to keep up with population growth. The housing recovery is slow but steady. Financial conditions are supportive with low rates, recent softening in the dollar and appreciating equity markets. Household balance sheets appear robust with strong gains in net worth and low leverage.</p> <p><strong>Factor 1: where is the fiscal stimulus?</strong></p> <p>After the US presidential election expectations were high that President Trump and the Republican-controlled Congress would enact fiscal stimulus involving tax reform and, possibly, infrastructure spending. We therefore penciled into our forecasts tax reform (akin to the Better Way proposal (Ryan plan)) and some small amount of infrastructure spending. We estimated that this would add roughly 0.5pp to annualized GDP growth.</p> <p>The path ahead for tax reform is challenging. We are halfway through the year and there has been little tangible progress made on tax reform. As Joe Song writes in Fiscal foibles, Congress is tied up with healthcare reform, negotiations around the debt ceiling and the budget. The likelihood of progress this year appears to be declining, especially for comprehensive reform of the tax system. As such, we think that we either see no legislation passed or a much simpler and smaller plan. </p> <p><strong>Factor 2: Waiting and seeing</strong></p> <p>While business and consumer confidence climbed higher after the election, it was accompanied by greater policy uncertainty. This seems like a natural contradiction - how can you be more confident about the outlook when you are also more uncertain? The result is to delay investments or spending until there is clarity on potential changes. Recent surveys suggest this is the case. The Duke CFO Business Outlook Survey from June 9th revealed that almost 40% of CFOs indicated that uncertainty is higher than normal and of those, 60% said that this uncertainty has caused them to delay new projects and investments. In other words - 1 out of every 4 companies are delaying or canceling investments.</p> <p>We have recently seen a rationalization of these measures with sentiment slipping lower, particularly among consumers (Chart 2). The most recent University of Michigan consumer sentiment report was particularly notable, highlighting how developments in Washington can influence confidence.</p> <p><strong>Factor 3: Auto sector pumping the breaks</strong></p> <p>Auto sales have been on a weak trend since the beginning of the year, leading John Murphy and team to revise down forecasts for sales and production. They now believe that auto sales and production peaked last year and will be on a downward trajectory over the next several years. As John notes, the concern rests in the "looming tsunami" of off-lease vehicle volumes that will flood supply in the used car market and provide competition for new vehicles. Moreover, the credit environment has become more challenging with auto delinquencies on the rise and the demand for auto loans declining while lenders tighten lending standards.</p> <p>As we wrote back in April, trouble in the auto sector threatens to weigh on economic growth and inflation. While auto output has been a shrinking share of the economy, it is still an important sector with strong linkages to other parts of the economy. As a simple rule of thumb, we estimate that a slowdown of one million in the annual pace of auto sales slices 0.2pp from annualized GDP growth (Table 1). Since 2010, auto output has added an average 0.2pp to annual GDP growth. We think we could see a modest drag from the sector this year and perhaps a more severe hit next year.</p> <p><strong>The economy doesn't "need" stimulus</strong></p> <p>While the economy would have received a jolt from fiscal stimulus, we do not believe that fiscal easing is a necessary condition for the recovery to persist. Rather, a large degree of fiscal stimulus at this stage of the business cycle would risk overheating the economy. The stock market is at a record high while the unemployment rate is hovering near record lows - stimulus could create undue pressure for both. This would put the Fed in a difficult position having to fight inflation at the risk of pushing the economy into recession.</p> <p><strong>The role of the Fed</strong></p> <p>The Fed has been savvy in its approach to handling the uncertainty around fiscal policy that followed the election. The majority of Fed officials did not alter forecasts to account for potential changes in fiscal policy. As such, the median expectation for GDP growth next year is 2.1% which has been the forecast (give or take a tenth) since the 2018 forecasts were first released in September 2015. The prospects of fiscal policy changed how Fed officials considered the balance of risks around the forecast, but it did not affect the modal forecast.</p> <p>Our new forecast for 2018 is consistent with the Fed's expectation. <strong>As such, even with our change in the outlook, we are holding to our view of a hike in December and three hikes next year</strong>. That said, <strong>we think the risks are clearly skewed toward a slower cycle, particularly next year. This has less to do with weaker growth and more to do with weaker inflation.</strong> As Alex Lin explains in his latest inflation write up, <strong>inflation has been weaker than expected and transitory shocks are only part of the disappointment, with risks skewed to the downside for inflation going forward</strong>. Moreover, there is a wide error band in forecasting Fed policy next year given the potential for a change in leadership. The bond market is pricing in less than 1 hike next year while the Fed dots imply 3 hikes. The truth will likely lie somewhere in between. </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="1326" height="553" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/bofa%20gdp.jpg?1498225370" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/hope-trade-over-bofa-slashes-its-2017-gdp-forecast-just-21#comments Auto Sales Bond Business Congress Consumer Confidence Consumer Sentiment Debt Ceiling Deficit reduction in the United States Economic policy Economy Equity Markets Fiscal policy Inflation Macroeconomics Michigan Monetary policy Political debates about the United States federal budget Quantitative easing Recession Recession recovery Trump Administration Unemployment University Of Michigan University of Michigan US Federal Reserve Fri, 23 Jun 2017 13:43:23 +0000 Tyler Durden 598536 at http://www.zerohedge.com Trump Explains Why He Bluffed On 'Comey Tapes'; Blasts Mueller's Hiring Of "Clinton Supporters" http://www.zerohedge.com/news/2017-06-23/trump-explains-why-he-bluffed-comey-tapes-blasts-muellers-hiring-clinton-supporters <p>After weeks without a live interview, President Trump, much to the dismay of the left-leaning MSM, appeared on Fox &amp; Friends this morning with Melania.&nbsp; The interview will undoubtedly be described throughout the day as a 'softball' piece but it did at least result in some new insights, maybe.</p> <p>First, on the now infamous 'Comey tapes.'&nbsp; Given that Trump has now admitted that there never were any 'tapes,' at least as far as he knows, why the bluff?&nbsp; Apparently, Trump believes <strong>the bluff helped to steer Comey toward the path of truth in his testimony, a path that Trump believes he'd lost before the bluff.</strong>&nbsp; Here's Trump on the topic:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“Well I didn’t tape him.&nbsp; You never know what’s happening when you see that the Obama administration and perhaps longer than that was doing all this unmasking and surveillance and you read all about it and I’ve been reading about it for the last couple of months about the seriousness of the and the horrible situation of surveillance all over the place."</p> <p>&nbsp;</p> <p>“But I didn’t tape, and I don’t have any tapes, and I didn’t tape, <strong>but when he found out that there may be tapes out there, whether its governmental tapes or anything else and who knows, I think his story may have changed."</strong></p> <p>&nbsp;</p> <p>“You’ll have to take a look at that. Because then he’ll have to tell what actually took place at the events. And my story never changed. My story was the straight story. My story was always the truth.”</p> <p>&nbsp;</p> <p><strong>"But you'll have to determine for yourself whether or not his story changed.</strong> He did admit that what I said was right.&nbsp; <strong>And, if you look further back, before he heard about that, I think maybe he wasn't admitting that.&nbsp; So, you'll have to do a little investigative reporting to determine that, but I don't think it will be that hard."</strong></p> </blockquote> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">.<a href="https://twitter.com/POTUS">@POTUS</a> on why he wanted former FBI Dir. James Comey to believe there were tapes of their conversations <a href="https://t.co/pCuibM5Z6k">pic.twitter.com/pCuibM5Z6k</a></p> <p>— FOX &amp; friends (@foxandfriends) <a href="https://twitter.com/foxandfriends/status/878202728144445442">June 23, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>&nbsp;</p> <p>And on Robert Mueller:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>“Well he’s very, very good friends with Comey. Which is very bothersome.&nbsp;</strong> We’re going to have to see. But there has no obstruction, there has been no collusion. There has been leaking by Comey. And virtually everyone agrees on that.”</p> <p>&nbsp;</p> <p><strong>“The people who have been hired are all Hillary Clinton supporters.&nbsp; Some of them worked for Hillary Clinton. </strong>I mean the whole thing is ridiculous if you want to know the truth from that standpoint."</p> <p>&nbsp;</p> <p>"But he is an honorable man, and hopefully he’ll come up with an honorable solution.”</p> </blockquote> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">"There has been no obstruction. There has been no collusion. There has been leaking by Comey." -<a href="https://twitter.com/POTUS">@POTUS</a> <a href="https://t.co/tqpEuMNUJM">pic.twitter.com/tqpEuMNUJM</a></p> <p>— FOX &amp; friends (@foxandfriends) <a href="https://twitter.com/foxandfriends/status/878203996141264896">June 23, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>&nbsp;</p> <p>And, in case there is any doubt, here is <a href="http://thehill.com/homenews/administration/339116-trump-questions-special-counsel-muellers-objectivity">The Hill's</a> confirmation that some of the folks on Mueller's team may be slightly less that completely 'independent.'</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The Hill previously reported that <strong>Jeannie Rhee</strong>, a member of Mueller’s team, <strong>donated $5,400 to Hillary Clinton’s presidential campaign PAC Hillary for America.</strong></p> <p>&nbsp;</p> <p>Another person on Mueller’s team, <strong>Andrew Weissmann,</strong> donated money to former President Obama’s campaign in 2008 while working at a law firm. Weissmann is the senior lawyer on the special counsel team, Bloomberg reported.</p> <p>&nbsp;</p> <p><strong>James Quarles,</strong> who served as an assistant special prosecutor on the Watergate Special Prosecution Force, <strong>has donated to over a dozen Democratic PACs since the late 1980s</strong>. He was also identified by the Washington Post as a member of Mueller's team.</p> </blockquote> <p>In the end, not much new was learned but it all makes for entertaining tv.</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="667" height="375" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017.06.23%20-%20Trump%20Tease.JPG?1498219275" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/trump-explains-why-he-bluffed-comey-tapes-blasts-muellers-hiring-clinton-supporters#comments Business Dismissal of James Comey Donald Trump Draft:Investigations of collusion between Russia and the Trump campaign FBI Federal Bureau of Investigation Federal Bureau of Investigation Hillary Clinton presidential campaign James Comey Obama Administration Obama administration Russian interference in the 2016 United States elections Special Prosecution Force Testimony Trump Tower wiretapping allegations Twitter Twitter United States Fri, 23 Jun 2017 13:29:51 +0000 Tyler Durden 598531 at http://www.zerohedge.com North Korea Blames Obama Administration For Warmbier's Death http://www.zerohedge.com/news/2017-06-23/north-korea-blames-obama-administration-warmbiers-death <p>A day after US student Otto Warmbier was laid to rest at a funeral service in his home town of Cincinnati on Thursday, the North Korean foreign ministry released a statement to local state-controlled television saying his death was a mystery and dismissing accusations that he had died because he was tortured and beaten during his captivity, <a href="http://www.reuters.com/article/us-usa-northkorea-idUSKBN19E0VY">according to Reuters.</a></p> <p>Instead, the North&rsquo;s foreign ministry blamed the Obama administration for Warmbier&#39;s death, which never formally requested Warmbier&rsquo;s release, claiming Warmbier was <strong>&ldquo;a victim of the policy of strategic patience.&rdquo;</strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;The fact that Warmbier died suddenly in less than a week just after his return to the U.S. in his normal state of health indicators is a mystery to us as well,&quot;</strong> the foreign ministry was quoted by KCNA as saying.</p> </blockquote> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/06/10/warmbier.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/06/10/warmbier_0.JPG" style="width: 500px; height: 286px;" /></a></p> <p>Warmbier, 22, was arrested in the reclusive country while visiting as a tourist. He was sentenced to 15 years of hard labor for trying to steal an item bearing a propaganda slogan from his hotel, North Korea state media said. He was brought back to the United States last week with brain damage, in what doctors described as state of &quot;unresponsive wakefulness&quot;, and died on Monday. US doctors who had traveled to the North last week to evacuate him had recognized that the former student had been provided with medical treatment, according to a ministry official.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;Although Warmbier was a criminal who committed a hostile act against the DPRK, we accepted the repeated requests of the present US administration and, in consideration of his bad health, sent him back home on humanitarian grounds,&quot;</strong> the spokesman said.</p> </blockquote> <p>The exact cause of Warmbier&#39;s death remains unclear. Officials at the University of Cincinnati Medical Center, where he was treated after his return from the North, declined to provide details, and his family asked the Hamilton County Coroner on Tuesday not to perform an autopsy.</p> <p>In a written statement, the foreign ministry claimed the US was spreading lies about North Korea&rsquo;s role in Warmbier&rsquo;s death.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;The smear campaign against DPRK staged in the US compels us to make firm determination that humanitarianism and benevolence for the enemy are a taboo and we should further sharpen the blade of law.&rdquo;</strong></p> <p>&nbsp;</p> <p>&ldquo;The US should ponder over the consequences to be entailed from its reckless and rash act.&rdquo;</p> </blockquote> <blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/DPRK?src=hash">#DPRK</a> foreign ministry says Otto Warmbier was a criminal and it&rsquo;s America&rsquo;s fault he died. <a href="https://t.co/065SGpmaHs">pic.twitter.com/065SGpmaHs</a></p> <p>&mdash; Steve Herman (@W7VOA) <a href="https://twitter.com/W7VOA/status/878203957423874048">June 23, 2017</a></p></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <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="839" height="480" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/warmbier.JPG?1498216636" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/north-korea-blames-obama-administration-warmbiers-death#comments Cincinnati Medical Center Gender Genealogy Korean Central News Agency North Korea North Korea Obama Administration Obama administration Otto Otto Warmbier Reuters Twitter Twitter University of Cincinnati US Administration Young Pioneer Tours Fri, 23 Jun 2017 13:11:22 +0000 Tyler Durden 598525 at http://www.zerohedge.com Some US Airlines Are Testing Mandatory Facial Recognition Scans On Americans Flying Abroad http://www.zerohedge.com/news/2017-06-23/us-airlines-are-testing-mandatory-facial-recognition-scans-americans-flying-abroad <p><a href="https://libertyblitzkrieg.com/2017/06/22/certain-u-s-airlines-are-testing-mandatory-facial-recognition-scans-for-americans-flying-abroad/"><em>Authored by Mike Krieger via Liberty Blitzkrieg blog,</em></a></p> <p><strong>Just when you thought air travel couldn&rsquo;t get any more invasive, authoritarian and downright miserable, </strong>the Department of Homeland Security and two U.S. carriers are determined to prove you wrong.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170622_flight.jpg"><img height="294" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170622_flight_0.jpg" width="600" /></a></p> <p>Yesterday, Harrison Rudolph, a law fellow at the Center on Privacy &amp; Technology at Georgetown Law, wrote a very troubling article at <em>Slate</em> titled,&nbsp;<a href="http://www.slate.com/blogs/future_tense/2017/06/21/dhs_s_biometric_exit_program_is_starting_to_scan_americans_faces_before.html" rel="noopener" target="_blank">DHS Is Starting to Scan Americans&rsquo; Faces Before They Get on International Flights</a>. Here&rsquo;s some of what we learned:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>Decades ago, Congress mandated that federal authorities keep track of foreign nationals as they enter and leave the United States. If the government could record when every visitor stepped on and off of U.S. soil, so the thinking went, it could easily see whether a foreign national had overstayed a visa.</em></p> <p>&nbsp;</p> <p><strong><em>But in June of last year, without congressional authorization, and without consulting the public, the Department of Homeland Security started scanning the faces of Americans leaving the country, too.</em></strong></p> <p>&nbsp;</p> <p><em>You may have heard about new JetBlue or Delta programs that let passengers board their flights by submitting to a face recognition scan. <strong>Few realize, however, that these systems are actually the first phase of DHS&rsquo;s &ldquo;Biometric Exit&rdquo; program.</strong></em></p> <p>&nbsp;</p> <p><em><strong>For certain international flights from <a href="http://news.delta.com/delta-tests-next-generation-biometric-cbp-egates-atlanta-jfk" rel="noopener" target="_blank">Atlanta and New York</a>, DHS has partnered with <a href="https://www.gao.gov/assets/690/683036.pdf" rel="noopener" target="_blank">Delta</a> to bring mandatory face recognition scans to the boarding gate.</strong> The Delta system checks a passenger is supposed to be on the plane by comparing her face, captured by a kiosk at the boarding gate, to passenger manifest photos from State Department databases. It also checks passengers&rsquo; citizenship or immigration status. Meanwhile, in Boston, DHS has partnered with <a href="http://www.mediaroom.jetblue.com/investor-relations/press-releases/2017/05-31-2017-112155081" rel="noopener" target="_blank">JetBlue</a> to roll out a voluntary face recognition system for travelers flying to Aruba. In JetBlue&rsquo;s case, you can actually get your face scanned instead of using a physical ticket.</em></p> <p>&nbsp;</p> <p><em>While these systems differ in details, they have two things in common. <strong>First, they are laying the groundwork for a much broader, mandatory deployment of Biometric Exit across the country. Second, they scan the faces of everyone&mdash;including American citizens.</strong></em></p> <p>&nbsp;</p> <p><strong><em>Treating U.S. citizens like foreign nationals contradicts years of congressional mandates. DHS has never consulted the American public about whether Americans should be subject to face recognition. That&rsquo;s because Congress has never given Homeland Security permission to do it in the first place. Congress has passed Biometric Exit bills at least <a href="http://www.gao.gov/assets/690/683036.pdf" rel="noopener" target="_blank">nine times</a>. In each, it has been clear: This is a program meant for foreign nationals. In fact, when President Trump issued an executive order in January on Biometric Exit, it was actually <a href="http://www.planetbiometrics.com/article-details/i/5609/desc/biometric-exit-wording-changes-in-latest-trump-order/" rel="noopener" target="_blank">reissued</a> to clarify that it didn&rsquo;t apply to American citizens.</em></strong></p> <p>&nbsp;</p> <p><em>Behind the scenes, DHS is already handling your face recognition photo in ways many travelers might find alarming. For instance, after JetBlue scans your face, your photo is temporarily stored in DHS&rsquo;s <a href="http://www.vocativ.com/435077/jetblue-face-recognition-boarding/" rel="noopener" target="_blank">threat modeling ecosystem</a>. What is it doing there? While there is no indication right now that DHS is, for example, comparing your face against a hotlist of known or suspected terrorists, it&rsquo;s easy to imagine DHS pulling the trigger. People with foreign-sounding names have already struggled for years with false matches on the No Fly List. Will people with &ldquo;foreign-looking&rdquo; faces encounter the same discrimination?</em></p> <p>&nbsp;</p> <p><em>And this may only be the beginning. According to U.S. Customs and Border Protection&rsquo;s John Wagner, Homeland Security is in internal negotiations to bring face recognition to the TSA security checkpoint.</em></p> <p>&nbsp;</p> <p><em>What might mission creep look like? One possible scenario involves DHS deciding to search your face against state and local law enforcement databases. Would you be comfortable with your face being compared to the faces of wanted criminals simply because you flew home to see your parents? Or maybe DHS could decide to share your face with the FBI. That could mean your face being compared with unknown suspects in security camera footage. Imagine being investigated for a crime you didn&rsquo;t commit because, while passing through the airport, an algorithm matched your face to a suspect in a grainy surveillance video.</em></p> </blockquote> <p><strong>This is absolutely absurd.</strong></p> <p>Meanwhile, here&rsquo;s <a href="http://news.delta.com/delta-tests-next-generation-biometric-cbp-egates-atlanta-jfk" rel="noopener" target="_blank">Delta&rsquo;s announcement</a> of the facial-recognition test. They write it as if customers will be excited about this Orwellian surveillance.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>Delta customers departing Hartsfield-Jackson Atlanta airport&nbsp;and New York-JFK for international destinations this summer will be part of a test that captures customers&rsquo; biometrics upon exit of the United States at the same time they self-scan their boarding pass. Delta is the first airline Customs and Border Protection has partnered with to test new biometric exit immigration procedure and technology designed to give CBP an enhanced ability to record when visitors depart the U.S.</em></p> <p>&nbsp;</p> <p><em>Delta&rsquo;s tests,&nbsp;powered by biometric identification and management providers <a href="http://www.vision-box.com/">Vision-Box</a> at JFK (pictured) and&nbsp;<a href="https://www.necam.com/AdvancedRecognitionSystems/">NEC</a> Corporation of America at ATL, confirms passenger identity using advanced facial recognition technology and Delta ticketing information in a single, automated, reliable and highly secure solution. Upon successful screening at JFK, the eGate will open for individual customers to pass into the boarding area. In Atlanta, a different,&nbsp;self-contained unit will capture and verify customer&rsquo;s identity before the customer continues on to boarding. All customer data is securely managed by CBP.</em></p> <p>&nbsp;</p> <p><em><strong>&ldquo;Delta is always willing to partner with the CBP as it continues testing new technologies to improve its processes,&rdquo; said Gil West, Delta&rsquo;s Chief Operating Officer.</strong> &ldquo;Its spirit of innovation aligns with Delta&rsquo;s as we continue pioneering our own biometric customer experience solutions to enhance the airport travel experience for customers while giving employees the ability to focus on higher-touch customer needs.&rdquo;</em></p> <p>&nbsp;</p> <p><em>Delta&rsquo;s JFK test launched June 12 at gate B24, while customers will start experiencing the one-step process in ATL at gates E10 and E12 later this summer. The Atlanta pilot will build on a year-long collaboration between Delta, NEC and CBP that has been testing facial recognition and boarding technology for exit screening on ATL gates F6 and F9.</em></p> <p>&nbsp;</p> <p><em>&ldquo;CBP has been working with our stakeholders to build a simplified, but secure travel process that not only meets the biometric exit mandate, but also aligns with CBP&rsquo;s and the travel industry&rsquo;s modernization efforts,&rdquo; said John Wagner, Deputy Executive Assistant Commissioner, Office of Field Operations, CBP. &ldquo;We are happy to be working with partners, like Delta, to expand the use of facial biometric technology to create an innovative, more efficient travel experience for passengers.&rdquo;</em></p> <p>&nbsp;</p> <p><em>Technology providers Vision-Box and NEC added: </em></p> <p>&nbsp;</p> <p><em>&ldquo;Vision-Box is excited to partner with Delta to provide an innovative self-boarding e-Gate system that combines airline boarding and biometric exit capture capabilities in a single process,&rdquo; said Miguel Leitmann, Vision-Box CEO. &ldquo;Passenger experience, high biometric accuracy and personal data protection are among the key metrics the pilot is addressing in order to establish a foundation to scale up to other airports.&rdquo;</em></p> <p>&nbsp;</p> <p><em>NEC Corporate of America Senior Vice President&nbsp;Raffie Beroukhim said, &ldquo;Utilization of biometrics is perhaps the only means of balancing increased safety and security with passenger convenience. As a leading provider of such technologies, NEC is proud of the partnership with Delta and CBP in Atlanta, the progress made to date, and further potential in improving both safety and passenger convenience.&rdquo;</em></p> </blockquote> <p>If you fly Delta, you may want to make your opinions on this issue crystal clear.</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="713" height="349" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170622_flight.jpg?1498219043" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/us-airlines-are-testing-mandatory-facial-recognition-scans-americans-flying-abroad#comments Biometrics CBP Office of Field Operations Center on Privacy & Technology Congress Department of Homeland Security Department of State facial biometric technology facial recognition Facial recognition system facial recognition technology FBI Federal Bureau of Investigation JetBlue JetBlue John F. Kennedy International Airport Law enforcement Learning National security office of Field Operations Security Surveillance United States Department of Homeland Security Video surveillance Fri, 23 Jun 2017 13:10:37 +0000 Tyler Durden 598527 at http://www.zerohedge.com BofA: "Central Banks Are Now In A Desperate Dilemma"..."Start Buying Volatility" http://www.zerohedge.com/news/2017-06-23/bofa-central-banks-are-now-desperate-dilemmastart-buying-volatility <p>One week after the <a href="http://www.zerohedge.com/news/2017-06-16/blow-top-here-second-largest-weekly-inflows-wall-street-history">second biggest weekly inflow to Wall Street on record</a>, the "risk on" rotation ended abruptly in the ensuing five days, when as Bank of America writes overnight, it observed <em>"Inflows to structural "deflation", outflows from cyclical "inflation";</em> with oil the "<em>poster child" for this trend."</em></p> <p>Half a year after central bankers around the globe rejoiced that the Trump victory may finally spur the long-delayed period of global reflation, that hope is now dead and buried (even as the Fed keeps hiking into some imaginary inflation wave) which BofA's Michael Hartnett observes not only in asset prices, but also in fund flows. </p> <p>As the BofA strategist writes in a note aptly titled "<span><em><strong>Bubble, bubble, oil &amp; trouble", </strong></em>t</span>he big flow message "is structural "deflation" dominating cyclical "inflation" (oil price is the "poster child" for victory of deflation): <strong>outflows from TIPS; first outflows from bank loans in 32 weeks; outflows from US value funds in 8 of past the 9 weeks; 1st inflows to REITS in 11 weeks; biggest inflows to utilities in 51 weeks.</strong>"</p> <p>More importantly the tsunami of recent inflows, mostly into US equities, appears to finally be slowing: <strong>following sizable inflows to equities &amp; bonds last week ($33.5bn in aggregate), a week of modest flows: $5.0bn into bonds, $0.5bn into equities, $0.8bn outflows from gold</strong>. Additionally, after the recent "tech wreck", flows show confirm that contrarians - or simply stopped out algos - have flirted with sector rotation as <strong>inflows to energy ($0.4bn) were offset by outflows from tech ($0.2bn) &amp; growth funds ($2.1bn); </strong></p> <p>Looking at BofA's client base, <strong>Harnett notes that private clients were also sellers of tech past 4 weeks; </strong>and adds that despite the 20% YTD decline in oil price, energy funds ($2.8bn) and MLPs ($2.6bn) see inflows in 2017.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20ch5.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20ch5_0.jpg" width="500" height="409" /></a></p> <p>As we have extensively discussed, institutional bullishness remains restrained by the structural shift from active to passive courtesy of $3.1tn inflows to passive bond &amp; equity funds vs. $1.3tn outflows from active bond &amp; equity funds (since 2007 - Chart 2); Hartnett says that the <strong>"shift is deflationary for both active &amp; passive managers."</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20ch2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20ch2_0.jpg" width="500" height="275" /></a></p> <p>Those who claim that there is no bubble may find some enjoyment in the next observation by Hartnett: "you'll know it's the "big top" when Millennials start buying (new investors a classic late-cycle signal); <strong>recent survey by AMG shows millennials have just 30% in equities versus 46% for older age groups."</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20ch3.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20ch3_0.jpg" width="500" height="236" /></a></p> <p>And while Hartnett makes another case for the lack of irrational exuberance...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Thus far, limited irrational exuberance in flows/positioning; and important to note investor "greed" is much tougher to end than "fear"… Nasdaq fell &gt;10% on 6 separate occasions in 12 months leading to bubble peak in 2000 … and greed easier to pop if bond yields rising (Treasuries rose 200bps in '99, JGB yields rose 250bps in '89).</p> </blockquote> <p>... he concedes that there are <strong>plenty of signs of Wall St excess in 2017:</strong></p> <ul> <li>S&amp;P 500 at 2620 means US stock market cap as % of nominal GDP will hit an all-time high;</li> <li>In 2017, global issuance of High Yield bonds is annualizing $499bn, a record high;</li> <li>Argentina, a country that has spent 33% of the past 200 years in default and has defaulted 3 times in the past 23 years, has just announced a 100-year bond offering;</li> <li>Facebook's market cap now exceeds the market cap of MSCI India (FB has 18,800 employees, India has 1,280,000,000 people);</li> <li>Inflows to tech funds are rising in 2017 at their fastest annualized rate (21% of AUM) in 15 years;</li> <li>In a classic late-cycle signal, global investors are long the Eurozone (June FMS shows 3rd largest overweight on record);</li> <li>And finally, the MOVE index of US Treasury market volatility is almost at an all-time low; S&amp;P realized vol at 20-year lows.</li> </ul> <p>What does it all mean from the man who coined the "Icarus Trade" concept (and which will soon be replaced with the "Humpty Dumpty market: it means that we are now just months from the "big top":</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p> "Greed/Icarus take time to kill but peak liquidity (Fed now wants vol) &amp; peak profits (chart) = <strong>big top in autumn</strong>"</p> </blockquote> <p>Hartnett's conclusion is, as usual, both enlightening and chilling:&nbsp;</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p> <strong>Central banks, the reason behind high asset prices and low vol, are now in desperate dilemma:</strong> politically unacceptable for bubble on Wall St, but central banks will be tightening into deflation; <strong>inflection point for volatility is upon us and we recommend investors buy volatility; we stick with view the that Icarus followed by Humpty-Dumpty when peak liquidity &amp; peak profits (Chart 1) combine in the autumn; </strong>Fed tightening in 2017 could easily be followed by easing in 2018, in our view.</p> </blockquote> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/bofa%20ch1_0.jpg" width="500" height="290" /></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="3516" height="2251" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/central%20bankers%20teaser_4.jpg?1498222254" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/bofa-central-banks-are-now-desperate-dilemmastart-buying-volatility#comments Bank of America Bank of America Bond Bond Business Central Banks default Deflation Economic bubble Economy Eurozone Financial crises Fund Flows High Yield India Inflation Irrational Exuberance Macroeconomics MOVE NASDAQ Nominal GDP REITs S&P 500 U.S. Treasury US Federal Reserve Volatility Fri, 23 Jun 2017 12:52:46 +0000 Tyler Durden 598533 at http://www.zerohedge.com One "Data-Dependent" Trader Is "Looking At The Bounce In Gold As Sentiment Indicator" http://www.zerohedge.com/news/2017-06-23/one-data-dependent-trader-looking-bounce-gold-sentiment-indicator <p>As US (and global) economic data has disappointed at a rate not seen since Bernanke unleashed Operation Twist and QE3, so traders are shrugging off declining earnings expectations and weak macro data in favor of the continued belief that The Fed (or ECB or BoJ or BoE or PBOC or SNB) has their back. So, as former fund manager Richard Breslow notes below,<em><strong> it appears the &#39;data&#39; that everyone is &#39;dependent&#39; upon is very much in the eye of the beholder...</strong></em></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow1.jpg"><img height="317" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow1_0.jpg" width="600" /></a></p> <p><em>Via Bloomberg,</em></p> <p><strong>We&rsquo;re all data-dependent. It&rsquo;s not just the central banks that hide behind that aphorism. </strong>Traders and investors operate that way too. It&rsquo;s just that data is a very poorly defined word and concept. The dictionary speaks of facts and specifics. <strong>But in reality it includes, biases, positions and a whole lot of other subjective factors. You and I can, quite properly, look at the same data and react differently.</strong></p> <p>So while it&rsquo;s a universally held <strong>concept that is proudly used to denote dispassionate rationality, it&rsquo;s in fact a meaningless one.</strong></p> <p><strong><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow3.jpg"><img height="344" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow3_0.jpg" width="600" /></a></strong></p> <p><strong>The European composite PMIs that were released this morning were all misses.</strong> Good numbers, but misses nevertheless. But the euro has been up versus the dollar all day. Why? Because while it&rsquo;s also trading near the bottom of its recent range, people are, for the moment, emotionally invested in desperately hoping the euro will go up and the dollar down.</p> <p><strong>European politics is now good and U.S. politics bad.</strong> Emmanuel is even better looking than Jared. There must be fire behind the smoke of the Treasury flatteners and the ECB&rsquo;s PSPP is what a healthy, growing economy just does. Whatever it is doesn&rsquo;t matter, just look at the data. Well, your data.</p> <p>I&rsquo;ll be the first one to admit that numbers have both probative and confirmation bias effects. It&rsquo;s also why a picture really is worth a thousand words. <strong>Technicals help us own up to reality. Or at least force us to explain ourselves.</strong></p> <p><strong>The 10-year Treasury yield hasn&rsquo;t moved in over a week and has had a two basis-point range so far today. </strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow2.jpg"><img height="309" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow2_0.jpg" width="600" /></a></p> <p>Yet, when it was at 2.165% I read that if it breaks 2.23% it could really motor. And at 2.145%, it was setting up for a retest of year-to-date lows.<strong> Same data, not meaningful, but sang to different people in widely different and visceral ways.</strong> Of course the response to both should be, &ldquo;sit down and be quiet.&rdquo;</p> <p><strong>So what&rsquo;s my &ldquo;data driven&rdquo; bias on a, so far, quiet Friday? I&rsquo;m looking at the bounce in gold as my sentiment indicator of what risk wants to do today. </strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow.jpg"><img height="346" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/06/22/20170623_breslow_0.jpg" width="600" /></a></p> <p>And I would trade accordingly. <em><strong>But, psst, I still like the dollar and hate bonds, regardless of your data.</strong></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="2348" height="1355" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170623_breslow.jpg?1498220397" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/one-data-dependent-trader-looking-bounce-gold-sentiment-indicator#comments BOE Central Banks Dollar European Central Bank Numismatics People's Bank of China Reality SNB US Federal Reserve Fri, 23 Jun 2017 12:29:43 +0000 Tyler Durden 598530 at http://www.zerohedge.com Frontrunning: June 23 http://www.zerohedge.com/news/2017-06-23/frontrunning-june-23 <ul> <li>One year after Brexit: Forget euro zone breakup, sterling now deemed riskier (<a href="http://www.reuters.com/article/us-britain-sterling-options-analysis-idUSKBN19E0WV">Reuters</a>)</li> <li>Senate Holdouts Seek Upper Hand in Perilous Health Bill Talks (<a href="https://www.bloomberg.com/politics/articles/2017-06-23/senate-holdouts-seek-upper-hand-in-perilous-health-bill-talks">BBG</a>)</li> <li>Senate Bill Poses Risks to Health-Care Companies (<a href="https://www.wsj.com/articles/senate-bill-poses-risks-to-health-care-companies-1498165128">WSJ</a>)</li> <li>Trump’s Tape Ruse Risks Fresh Legal Jeopardy in Russia Probe (<a href="https://www.bloomberg.com/politics/articles/2017-06-22/trump-said-to-not-have-recordings-of-conversations-with-comey">BBG</a>)</li> <li>Arab states demand Qatar closes Jazeera, cuts back ties to Iran (<a href="http://www.reuters.com/article/us-gulf-qatar-demands-idUSKBN19E0BB">Reuters</a>)</li> <li>Qatar Seen Rejecting List of Severe Demands to End Gulf Crisis (<a href="https://www.bloomberg.com/politics/articles/2017-06-23/qatar-seen-rejecting-list-of-severe-demands-to-end-gulf-crisis-j49qd6l5?srnd=157392052">BBG</a>)</li> <li>Turkey rejects call to shut military base in Qatar (<a href="http://www.reuters.com/article/us-gulf-qatar-turkey-minister-idUSKBN19E0OL?il=0">Reuters</a>)</li> <li>From Music to Maps, How Apple’s iPhone Changed Business (<a href="https://www.wsj.com/articles/from-music-to-maps-how-apples-iphone-changed-business-1498210201">WSJ</a>)</li> <li>How Killing Obamacare Might Save Obamacare, For a While (<a href="https://www.bloomberg.com/politics/articles/2017-06-23/how-killing-obamacare-might-save-obamacare-for-a-while">BBG</a>)</li> <li>Baghdadi death near 100 percent certain: Interfax quotes Russian senator (<a href="http://www.reuters.com/article/us-mideast-crisis-syria-baghdadi-russia-idUSKBN19E0PI">Reuters</a>)</li> <li>Japanese warship takes Asian guests on cruise in defiance of China (<a href="http://www.reuters.com/article/us-japan-defence-carrier-idUSKBN19E138">Reuters</a>)</li> <li>FBI Director Nominee’s Client List Could Hinder Oversight of Investigations (<a href="https://www.wsj.com/articles/fbi-director-nominees-client-list-could-hinder-oversight-of-investigations-1498210203">WSJ</a>)</li> <li>Buffett’s Home Capital Bet Backs Turbulent Canada Housing Market (<a href="https://www.bloomberg.com/news/articles/2017-06-23/buffett-s-home-capital-bet-backs-turbulent-canada-housing-market">BBG</a>)</li> <li>China's authorities tighten noose around online video content (<a href="http://www.reuters.com/article/us-china-internet-idUSKBN19D1TY?il=0">Reuters</a>)</li> <li>Deadly London apartment blaze began in Hotpoint fridge freezer, police say (<a href="http://www.reuters.com/article/us-britain-fire-idUSKBN19E120">Reuters</a>)</li> <li>Trump’s Steel Tariff Threat Faces Resistance From Lawmakers (<a href="https://www.wsj.com/articles/trumps-steel-tariff-threat-faces-resistance-from-lawmakers-1498210202">WSJ</a>)</li> <li>'Fair' or 'vague'? EU sizes up May's Brexit rights offer (<a href="http://www.reuters.com/article/us-britain-eu-idUSKBN19E0SI">Reuters</a>)</li> <li>Canada Ponders an Unusual Drug Problem: a Shortage of Marijuana (<a href="https://www.bloomberg.com/politics/articles/2017-06-23/canada-ponders-an-unusual-drug-problem-a-shortage-of-marijuana">BBG</a>)</li> <li>North Korea tests rocket engine, possibly for ICBM: U.S. officials (<a href="http://www.reuters.com/article/us-usa-northkorea-missiles-engine-idUSKBN19D2RC">Reuters</a>)</li> <li>Venezuelan soldier shoots protester dead in airbase attack, minister says (<a href="http://www.reuters.com/article/us-venezuela-politics-idUSKBN19D2XF">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>- Qatar Airways said it aims to buy a significant stake in American Airlines Group Inc - a brash attempt by the fast-growing Middle East carrier to push into the U.S. amid political upheaval back home. on.wsj.com/2s1XafN</p> <p>- Mylan NV's board nominees were elected in full at the pharmaceutical company's annual meeting Thursday despite pressure from a group of institutional investors unhappy over high executive pay. on.wsj.com/2s1OoyH</p> <p>- Tesla Inc said it is exploring with government officials in Shanghai the possibility of opening a facility to build electric vehicles for the Chinese market. on.wsj.com/2s1Xn2I</p> <p>- The U.S. Department of Agriculture suspended imports of fresh beef from Brazil, citing recurring safety concerns. The USDA's move came after Brazil earlier Thursday suspended beef exports from five slaughterhouses to the U.S. on.wsj.com/2s1WZRN</p> <p>- Samsung Electronics Co is in late-stage discussions to invest about $300 million to expand its U.S. production facilities at a factory soon to be vacated by Caterpillar Inc according to people familiar with the matter, with an announcement expected as early as next week. on.wsj.com/2s1XoUj</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">FT</span></em></p> <p>Prime Minister Theresa May offered to allow EU citizens who had lived in Britain for five years to continue staying after Brexit, as she tried to regain the initiative on exit negotiations at a European summit in Brussels on Thursday.</p> <p>The UK's deal with EDF SA to build the Hinkley Point C nuclear plant could cost British electricity consumers 30 billion pounds ($38.03 billion) above market prices, the National Audit Office said in a report.</p> <p>Bank of England policymaker Kristin Forbes, whose three-year term on the bank's Monetary Policy Committee ends next week, said on Thursday that senior staff were too busy to take monetary policy decisions sufficiently seriously and worried too much about bad press and their public profiles.</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">NYT</span></em></p> <p>- Tesla Inc is in discussions to establish a factory in Shanghai, its first in China, a move that could bolster its efforts in one of its major markets even as it further lifts China's position as a builder of electric cars. nyti.ms/2swu9wo</p> <p>- The largest U.S. banks breezed through the first phase of their annual Federal Reserve stress tests, demonstrating that they have enough capital to withstand the type of financial shock that nearly ruined the industry and the world economy in 2008. nyti.ms/2sx12ZR</p> <p>- Berkshire Hathaway Inc, run by Warren Buffett, agreed to buy a stake in Home Capital Group Inc, which has struggled amid accusations of fraud. nyti.ms/2swtnzu</p> <p>- Akbar al-Baker, the chief executive of Qatar Airways, recently approached his counterpart at American Airlines Group Inc, a bitter rival, with some news: His state-owned company wanted to buy a 10 percent stake in American. nyti.ms/2sx3kZa</p> <p>- Martin Shkreli, former hedge fund manager, "pharma bro" and self-styled bad boy, sat in federal court for a hearing before his fraud trial begins next week. nyti.ms/2swFb4B</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">Britain</span></em></p> <p>The Times</p> <p>* A state-backed Chinese operator is among the companies shortlisted to run the new HS2 railway, the first bidder for a rail franchise from mainland China. bit.ly/2rXiuYL</p> <p>* Central banking may have become too political and policymakers too overstretched to manage interest rates properly, a leading Bank of England ratesetter, Kristin Forbes, suggested yesterday. bit.ly/2rWrxcJ</p> <p>The Guardian</p> <p>* Britain's vote to leave the EU has squeezed living standards, hit consumer spending and dampened the country's growth prospects, according to an analysis by Guardian of economic news over the year since the referendum shows. bit.ly/2rWSg8R</p> <p>* The price of British strawberries could rise by more than a third if the UK cannot ensure access to European workers after Brexit, The National Farmers' Union said. bit.ly/2rX92EJ</p> <p>The Telegraph</p> <p>* Peter Hambro has lost his bid to stop a major Russian investor from filleting the board of Petropavlovsk, the gold mining company he co-founded more than 20 years ago. bit.ly/2rXhHHv</p> <p>* Fears of a clampdown on China's swashbuckling corporate empire builders are mounting after authorities in Beijing began gathering financial intelligence on big-spending conglomerates. bit.ly/2rWDwqt</p> <p>Sky News</p> <p>* The new chief executive of GlaxoSmithKline, Emma Walmsley, is pursuing a sale of MaxiNutrition, which was bought in 2010 for 162 million pounds ($205.38 million) , according to Sky News. bit.ly/2rWRW9Y</p> <p>* Malcolm Barr, who works for JP Morgan, one of the world's largest banking institutions, said of the Brexit negotiations: "I'm not convinced that (the UK is) really very well prepared at all, to be perfectly blunt." bit.ly/2rX2VR0</p> <p>The Independent</p> <p>* The reckless rise of artificial intelligence is going to be much more disruptive for the London technology scene in the longer run than Britain's departure from the EU, according to musician, will.i.am. ind.pn/2rX1KB1</p> <p>* McDonald's has launched its long-awaited home delivery trial in the UK after teaming up with Uber's takeaway service across parts of London, Nottingham and Leeds. ind.pn/2rWHRtZ </p> <p>&nbsp;</p> http://www.zerohedge.com/news/2017-06-23/frontrunning-june-23#comments .ly artificial intelligence Automotive industry Bank of England Bank of England Berkshire Hathaway Bitly Brazil Brexit Business China Economy of California Economy of the United States European Union FBI Federal Bureau of Investigation Federal Reserve Housing Market Institutional Investors Iran Middle East Middle East Monetary Policy National Audit Office National Farmers' Union North Korea Obamacare Reuters Reuters Tesla, Inc. Turkey U.S. Department of Agriculture US Federal Reserve Warren Buffett Fri, 23 Jun 2017 12:01:21 +0000 Tyler Durden 598528 at http://www.zerohedge.com Caught On Video: Russian Ships, Sub Fire Cruise Missiles At ISIS Targets In Syria http://www.zerohedge.com/news/2017-06-23/russian-navy-launches-6-cruise-missiles-isis <p>A little more than a week after launching the strike that reportedly killed ISIS leader Abu Bakr Al Baghdadi, Russian navy ships and a submarine launched six cruise missiles at ISIS targets in Syria&rsquo;s Hama province, <strong>destroying an ISIS command center and ammunition depot,</strong> <a href="https://www.rt.com/news/393667-russian-navy-isis-cruise-missiles/">according to Russia Today.</a> The missiles<strong> were launched from the eastern Mediterranean by Russian Navy frigates the Admiral Essen and the Admiral Grigorovich,</strong> the Defense Ministry said.</p> <p><img alt="" height="322" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/06/23/palmyra%20strike_0.jpg" width="556" /></p> <p>The cruise missile strike follows a similar attack by Russian forces on May 31, when a nearly identical arrangement of Russian warships and a submarine also struck ISIS targets near Palmyra.</p> <p>And, like three weeks ago, today the missiles were launched from Russian Navy frigates: the Admiral Essen and the Admiral Grigorovich, as well as a submarine, the Krasnodar, from the eastern Mediterranean, the Defense Ministry said in a Friday statement. The submarine fired its missiles while submerged.</p> <p>The strikes targeted Islamic State command and control centers, as well as ammunition depots in the Syrian province of Hama, and hit a large ammunition depot near the town of Aqerbat, which detonated after being hit. Russia had warned Israel and Turkey in advance about the strikes via a military-to-military hotline.</p> <p>But, apparently, <strong>not the US.</strong></p> <p>The strike was launched after a large Islamic State convoy, comprising 39 vehicles and 120 militants, was spotted outside the city of Raqqa.</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/FEiUR6MNOIo" width="560"></iframe></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;The terrorist convoy of 39 pickup trucks was detected and destroyed by the air force on its way to Palmyra,&rdquo;</strong> a military source <a href="https://www.rt.com/news/393667-russian-navy-isis-cruise-missiles/">told RT.</a> The trucks had been equipped with large-caliber machine guns.</p> </blockquote> <p>Over the past week, Islamic State militants made numerous attempts to escape the besieged city of Raqqa and head towards Palmyra using a &ldquo;southern corridor,&rdquo; RT reported, citing sources in the Russian military. <strong>The terrorists were moving forces through rugged terrain to the Hama province during the night and setting up command posts and ammunition depots in large buildings there,</strong> it added.</p> <p>The movements of IS militants in the area are being monitored by Russian surveillance, the military said, adding that any potential targets detected will be hit with precision strikes by the Air Force. As noted above, on the last day of May the same warships fired four cruise missiles that hit combat vehicles and militants outside the Syrian city of Palmyra.&nbsp;Back in August of last year, the Russian Black Sea Fleet also fired Kalibr cruise missiles over unpopulated areas to destroy a command post and munitions production site of another terrorist group operating in Syria, the Al-Nusra Front.</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="794" height="460" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/palmyra%20strike.jpg?1498217754" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/russian-navy-launches-6-cruise-missiles-isis#comments 3M-54 Klub Abu Bakr al-Baghdadi Air Force American-led intervention in Syria Defense Ministry eastern Mediterranean Foreign policy of the Barack Obama administration Grigorovich International relations Islam Islamic State of Iraq and the Levant Israel Military Missile Naval warfare Operation Inherent Resolve Politics Politics Politics of Syria Proxy wars Responsibility to protect Russian military Russian military intervention in the Syrian Civil War Russian Navy Surface-to-surface missiles Syrian Civil War Terrorism Turkey War Fri, 23 Jun 2017 11:37:47 +0000 Tyler Durden 598523 at http://www.zerohedge.com Arab States Issue 13-Point Ultimatum To Qatar: Cut Ties With Iran, Close Al-Jazeera, Shutter Turkish Base http://www.zerohedge.com/news/2017-06-23/arab-states-issue-13-point-ultimatum-qatar-include-unfriend-iran-shut-down-al-jazeer <p><em>By ZeroPointNow, originally published at <a href="http://ibankcoin.com/">iBankCoin</a></em></p> <p>Two days after a confused US State Department <strong><a href="http://ibankcoin.com/zeropointnow/2017/06/20/u-s-state-department-mystified-by-continued-qatar-embargo-questions-motives/#sthash.SWjy2rZP.dpbs" target="_blank" rel="noopener noreferrer"><span style="text-decoration: underline;"><span style="color: #0066cc;">formally inquired</span></span></a></strong> about what is going on between Arab States and Qatar,&nbsp;the countries of Egypt, Saudi Arabia, Baahrain, and the&nbsp;UAE&nbsp;sent a list of 13&nbsp;demands to the tiny&nbsp;Gulf nation to be met <strong>within 10 days</strong> in order to lift their total blockade of the country. </p> <p>Among them - reducing diplomatic relations with Iran, shutting down broadcaster Al Jazeera (and affiliates), and immediately cease working to open a Turkish military base announced in <a href="https://www.voanews.com/a/turkey-opens-first-middle-east-military-base-in-qatar/3323653.html" target="_blank" rel="noopener noreferrer"><span style="text-decoration: underline;"><span style="color: #0066cc;">May of 2016</span></span></a> and halt military co-operation with Ankara. Also interesting is the demand that Qatar give up their intel on terrorist groups they have supported and&nbsp;"<strong>provide all databases related to oppositionists...</strong>" (Scroll down for full list of demands)</p> <p><img src="https://ibankcoin.com/zeropointnow/files/2017/06/NCS_modified20170605164125MaxW640imageVersiondefaultAR-170609671.jpg" width="500" height="334" /></p> <p>This formal list comes on the heels of a&nbsp;June 6th rumor that&nbsp;Arab States issued a&nbsp;<a href="http://ibankcoin.com/zeropointnow/2017/06/06/qatar-given-24-hour-ultimatum-by-saudi-arabia-to-meet-10-conditions-or-else/" target="_blank" rel="noopener noreferrer"><span style="text-decoration: underline;"><span style="color: #0066cc;">list of 10 demands</span></span></a> to be fulfilled within 24 hours, however Qatar said they never received them according to <a href="http://www.aljazeera.com/news/2017/06/qatar-list-grievances-saudi-arabia-170618044036581.html" target="_blank" rel="noopener noreferrer"><span style="text-decoration: underline;"><span style="color: #0066cc;">Al Jazeera journalists</span></span></a> who are now dusting off their resumes.</p> <p>The list of demands encompasses other accusations that have already been denied by Qatari officials, raising the prospect of deadlock in the worst crisis to hit the Gulf in decades. Qatar’s foreign minister previously said any demand to close Al Jazeera would be rejected, describing the channel as an “internal affair” linked to Qatar’s sovereignty that should not be the subject of external interference. Arab states have long complained that Al Jazeera’s Arabic language channel is a propaganda tool that stokes tensions in the region. Al Jazeera insists it has editorial independence</p> <p>The list specifies that Doha sever ties to radical jihadist groups such as Isis, al-Qaeda and its branch in Syria, as well as Lebanon’s Shia group Hizbollah. Qatar, the world’s top exporter of liquefied natural gas, admits that it supports Islamist groups, but denies backing or financing terrorism.</p> <p><strong>“These requirements must be met within 10 days from the date of delivery or they will be considered void,” </strong>the Arab states said in their list of demands. Their document added that compliance would be heavily monitored — once a month for the first year, every three months the second year and once a year for 10 years after that.</p> <p><strong>Embargo</strong></p> <p>On June 5th, news broke that Bahrain, the UAE, Saudi Arabia, and Egypt had cut off diplomatic ties with Qatar over accusations of 'spreading chaos' by 'funding terrorism and supporting Iran' - shutting&nbsp;down all land, sea, and air crossings&nbsp;with the tiny energy-rich nation that has the highest per capita income in the world.&nbsp;Qatari visitors and residents&nbsp;were given&nbsp;two weeks to leave&nbsp;- while&nbsp;diplomats had just&nbsp;48 hours.</p> <p>While&nbsp;Qatar has been friendly with Iran for years,&nbsp;the prelude to the embargo began after&nbsp;a<strong> broadcast </strong>which showed Qatari Emir Tamim bin Hamad Al Thani&nbsp;speaking with no audio - and scrolling text at the bottom of the screen&nbsp;which stated his support for Iran and terrorist groups. <strong>Qatar claims the broadcast was 'hacked.'</strong></p> <p>After the broadcast, Saudi Arabia and the UAE blocked Qatari news organization <strong>Al-Jazeera</strong>.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Amid Qatar’s denials, Saudi-owned satellite television networks immediately began airing repeated stories about the disputed comments. <strong>By early Wednesday morning, those living in the UAE and subscribers to local cable providers couldn’t access the channels of Al-Jazeera</strong>, the pan-Arab satellite broadcaster based in the Qatari capital, Doha.</p> <p>&nbsp;</p> <p>Attempts to reach its websites brought up a warning from the UAE’s Telecommunications Regulatory Authority saying the site <strong>“contains content that is prohibited.”</strong></p> <p>&nbsp;</p> <p>In Saudi Arabia, <strong>internet users also found Al-Jazeera websites blocked </strong>with a warning from the kingdom’s Culture and Information Ministry.</p> <p>-<em>WaPo</em></p> </blockquote> <p>Full List of demands (translated by <a href="https://twitter.com/hxhassan" target="_blank" rel="noopener noreferrer"><span style="text-decoration: underline;"><span style="color: #0066cc;">@hxhassan</span></span></a>)</p> <ol> <li>Qatar must reduce diplomatic representation with Iran</li> <li>Qatar must immoderately shut down the Turkish military base that is being established</li> <li>Qatar must announce severance of ties with terrorist, ideological &amp; sectarian orgs: MB, ISIS, AQ, HTS, Hizbollah</li> <li>Qatar must cease any funding activities to extremist and terrorist individuals</li> <li>Qatar must hand over all designated terrorists</li> <li>Qatar must shut down Al Jazeera and all affiliated channels</li> <li>Qatar must stop interference in these countries' domestic andforeign affairs; stop naturalisation of their citizens; extradite such citizens</li> <li>Qatar must provide <strong>reparations to these countries for any opportunity costs incurred over the past few years because of Qatari policies. </strong>(How do they even begin to comply with this in 10 days?)</li> <li>Qatar must become in sync with its Gulf and Arab neighbourhood on all levels, and to activate Riyadh Agreement 2013/2014</li> <li>Qatar must provide all databases related to oppositionists that it provided support to &amp; clarify what help was provided.</li> <li>Qatar must all media outlets backed by it directly or indirectly, like Arabi21, Rasd, New Arab, Middle East Eye, Mkamlin, Sharq etc</li> <li>These demands must be agreed within 10 days, otherwise they would be invalidated.</li> <li>Agreement will involve clear goals and mechanism, monthly reports in the first year, every three months the next &amp; annually for 10 years</li> </ol> <p>If these&nbsp;demands are not met, and they likely won't be -&nbsp;it may only be a&nbsp;matter of time before Qatar catches a case of regime change now that the Saudi alliance will have a "pretext" demonstrating Qatari non-compliance with a "goodwill" offer. </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="1241" height="690" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/qatar%20ruler%20teaser_2.jpg?1498216782" /> </div> </div> </div> http://www.zerohedge.com/news/2017-06-23/arab-states-issue-13-point-ultimatum-qatar-include-unfriend-iran-shut-down-al-jazeer#comments Al Jazeera al-Qaeda Asia Culture and Information Ministry Doha Foreign relations of Qatar Geography of Asia Hizbollah Iran Islamism Middle East Middle East Natural Gas Politics Politics of Qatar Qatar Qatar diplomatic crisis satellite television Saudi Arabia State media Tamim bin Hamad Al Thani UAE’s Telecommunications Regulatory Authority US State Department Fri, 23 Jun 2017 11:23:34 +0000 Tyler Durden 598526 at http://www.zerohedge.com