http://www.zerohedge.com/fullrss2.xml en Putin Speaks: Will Respond "Adequately" To Ongoing NATO Buildup; "Wont Tighten Screws" In Response To Threats http://www.zerohedge.com/news/2014-07-22/putin-speaks-will-respond-adequately-ongoing-nato-buildup-wont-tighten-screws-respon <p>Perhaps there were some concerns that Putin, following the Russian Security Council Meeting, may lash out at the west with some escalating retaliatory sanctions of his own. He did not which may explain why futures just saw an algo-driven buying wave moments ago. Still, what he did say is hardly justification to declare an "all clear" for risk as Putin being Putin, he merely reiterated for the nth time the Russian party line: Ukraine should facilitate a cease fire, Russia won't "blink" no matter how intense western sanctions are, and Russia will retaliate in kind to any ongoing NATO build up on its borders. Oh, and Crimea is now Russia's to do as it sees fit.</p> <p><em>Full comments from Bloomberg, Reuters and RIA</em></p> <ul> <li><strong>PUTIN: RUSSIA WON'T `TIGHTEN THE SCREWS' IN RESPONSE TO THREATS</strong></li> <li><strong>PUTIN SEES `DEFIANT' NATO BUILDUP IN EASTERN EUROPE</strong></li> <li><strong>PUTIN WANTS `ADEQUATE, PROPORTIONATE' RESPONSE TO BORDER THREAT</strong></li> <li>PUTIN: RUSSIA TO BOOST DEFENSE CAPABILITY AFTER NATO BUILDUP</li> <li>PUTIN: SAYS SEES INCREASE IN USE OF LANGUAGE OF "ULTIMATUMS AND SANCTIONS" TOWARD RUSSIA, CALLS FOR MORE DIALOGUE</li> <li>PUTIN SEES EFFORTS TO WEAKEN, DESTABILIZE RUSSIA</li> <li>PUTIN SAYS GOVT IN KIEV TOOK POWER USING UNCONSTITUTIONAL MEANS</li> <li>PUTIN URGES UKRAINE GOVT TO AGREE TO TRUCE, `HOWEVER BRIEF'</li> <li>PUTIN: RUSSIA CREATING ANEW MILITARY INFRASTRUCTURE IN CRIMEA</li> <li>PUTIN: U.S. MISSILE DEFENSE OFFENSIVE SYSTEM TARGETING RUSSIA</li> <li>PUTIN: RUSSIA NEEDS FURTHER SAFEGUARDS TO DEFEND ECONOMY</li> <li>PUTIN: RUSSIA TO USE CRIMEA AS IT BOOSTS DEFENSE CAPABILITY</li> </ul> <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="600" height="426" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/putin%20RIA.jpg?1406030468" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-22/putin-speaks-will-respond-adequately-ongoing-nato-buildup-wont-tighten-screws-respon#comments Reuters Ukraine Tue, 22 Jul 2014 12:01:15 +0000 Tyler Durden 491507 at http://www.zerohedge.com Frontrunning: July 22 http://www.zerohedge.com/news/2014-07-22/frontrunning-july-22 <ul> <li>EU Works to Punish Russia as MH17 Bodies Leave Rebel Area (<a href="http://www.bloomberg.com/news/2014-07-22/eu-labors-to-identify-russia-sanctions-targets-after-jet-downing.html">BBG</a>)</li> <li>Bodies From Malaysia Airlines Flight Begin Long Trip to Netherlands (<a href="http://online.wsj.com/articles/dutch-forensic-experts-make-their-way-to-crash-site-1405932367?mod=WSJ_hp_LEFTTopStories">WSJ</a>)</li> <li>Israel pounds Gaza as Kerry arrives (<a href="http://www.reuters.com/article/2014/07/22/us-palestinians-israel-idUSKBN0FP00U20140722">Reuters</a>)</li> <li>U.S. judge dismisses Republican lawsuit over Obamacare subsidy for Congress (<a href="http://www.reuters.com/article/2014/07/22/us-usa-healthcare-lawsuit-idUSKBN0FR0WB20140722">Reuters</a>)</li> <li>Israel Soldier Missing Amid Assault on Hamas in Gaza (<a href="http://online.wsj.com/articles/israel-soldier-missing-amid-assault-on-hamas-in-gaza-1406025178?mod=WSJ_hp_LEFTTopStories">WSJ</a>)</li> <li>Detroit Retirees Vote in Favor of Pension Cuts (<a href="http://online.wsj.com/articles/detroit-retirees-vote-in-favor-of-pension-cuts-1406004210?mod=WSJ_LatestHeadlines">WSJ</a>)</li> <li>Russia Axes 1st Bond Sale in 3 Months as Ukraine Drives Up Yield&nbsp; (<a href="http://www.bloomberg.com/news/2014-07-22/russia-axes-1st-bond-sale-in-3-months-as-ukraine-drives-up-yield.html">BBG</a>)</li> <li>Wall Street Cut From Guest List for Jackson Hole Fed Meeting (<a href="http://www.bloomberg.com/news/2014-07-22/wall-street-axed-from-guest-list-for-jackson-hole-fed-conference.html">BBG</a>)</li> <li>Credit Suisse to Exit Commodities, Posts Big Quarter Loss (<a href="http://www.bloomberg.com/news/2014-07-22/credit-suisse-posts-biggest-loss-since-2008-after-u-s-fine.html">BBG</a>)</li> <li>Draghi Cedes Euro Control to Yellen on Fed Rate Wagers (<a href="http://www.bloomberg.com/news/2014-07-22/draghi-cedes-euro-control-to-yellen-on-fed-rate-wagers.html">BBG</a>)</li> <li>Turkish Businesses Boycotting Israeli Products Because of Gaza (<a href="http://www.israelnationalnews.com/News/News.aspx/183185#.U85LU7Gs-sQ">INN</a>)</li> <li>Soros Chart Shows Euro-Yen Reaching 2008 High (<a href="http://www.bloomberg.com/news/2014-07-21/soros-chart-shows-euro-yen-reaching-2008-high-chart-of-the-day.html">BBG</a>)</li> <li>Next iPhone Will Offer Bigger Screens; Apple Tells Suppliers to Gear Up for 4.7-inch and 5.5-Inch Screen Sizes (<a href="http://online.wsj.com/articles/apple-suppliers-gear-up-for-large-screen-iphones-1405985788">WSJ</a>)</li> <li>Sterling Trust Could Face Default on Loans if Clippers Aren't Sold, CFO Says (<a href="http://online.wsj.com/articles/sterling-trust-could-face-default-on-loans-if-clippers-arent-sold-cfo-says-1405977518">WSJ</a>)</li> <li>Saudi to Open Up $531 Billion Stock Market to Foreigners (<a href="http://www.bloomberg.com/news/2014-07-22/saudi-to-open-up-531-billion-stock-market-to-foreigners.html">BBG</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>* Separatists in Ukraine released the bodies of victims in the downing of Malaysia Airlines Flight 17 and agreed to hand over the aircraft's data recorders, allowing the focus to tighten on establishing who brought the jetliner down. (<a href="http://on.wsj.com/Uoe1bR" title="http://on.wsj.com/Uoe1bR">http://on.wsj.com/Uoe1bR</a>)</p> <p>* Workers and retirees approved pension cuts in Detroit's bankruptcy, the city said Monday, a crucial step to emerging from the largest municipal insolvency in U.S. history. The city disclosed results from two months of balloting, which ended July 11. (<a href="http://on.wsj.com/1wTrViJ" title="http://on.wsj.com/1wTrViJ">http://on.wsj.com/1wTrViJ</a>)</p> <p>* European ministers are expected to approve sanctions that will target Russian oligarchs in response to the suspected downing of a Malaysian jetliner by Moscow-backed rebels in eastern Ukraine. (<a href="http://on.wsj.com/1nvUB1w" title="http://on.wsj.com/1nvUB1w">http://on.wsj.com/1nvUB1w</a>)</p> <p>* Apple Inc is preparing for its largest initial production run of iPhones this year, betting that larger-screen models will lure consumers now attracted to similar phones from Samsung Electronics Co. The company is asking suppliers to manufacture between 70 million and 80 million units, larger than the initial order last year of 50 million to 60 million versions of the iPhone 5S and 5C. (<a href="http://on.wsj.com/1qZBAm3" title="http://on.wsj.com/1qZBAm3">http://on.wsj.com/1qZBAm3</a>)</p> <p>* The U.S. owner of a meat supplier in Shanghai apologized and promised a swift response after McDonald's Corp and Yum Brands Inc suspended purchases in China in the wake of allegations it sold expired chicken and beef to restaurants. China's Food and Drug Administration halted on all business activities of Shanghai Husi and launched a nationwide investigation of the company. (<a href="http://on.wsj.com/1jSycdP" title="http://on.wsj.com/1jSycdP">http://on.wsj.com/1jSycdP</a>)</p> <p>* Washington's regulatory machine is altering Wall Street in fundamental ways, four years after the Dodd-Frank financial law became reality. Banks are selling off profitable business lines, pulling back from the short-term funding market, cutting ties with businesses that could attract extra regulatory scrutiny, and building up defenses to help weather future crises. (<a href="http://on.wsj.com/1ua2Eoi" title="http://on.wsj.com/1ua2Eoi">http://on.wsj.com/1ua2Eoi</a>)</p> <p>* Spending on mobile ads is expected to jump 83 percent this year, but given how much time Americans spend on their devices, mobile-ad spending could be much higher. (<a href="http://on.wsj.com/1loxQqs" title="http://on.wsj.com/1loxQqs">http://on.wsj.com/1loxQqs</a>)</p> <p>* The family trust that owns the Los Angeles Clippers is in danger of defaulting on loans if a planned sale of the NBA team doesn't go through, an executive testified Monday. (<a href="http://on.wsj.com/Wuj8sv" title="http://on.wsj.com/Wuj8sv">http://on.wsj.com/Wuj8sv</a>)</p> <p>* Allergan, which is trying to avoid being acquired by Valeant Pharmaceuticals International Inc, said it would cut 13 percent of its work force and reduce drug research, to boost its profits over the next six years. Valeant also had similar plans of restructuring, if it acquired Allergan. (<a href="http://on.wsj.com/WzRuuz" title="http://on.wsj.com/WzRuuz">http://on.wsj.com/WzRuuz</a>)</p> <p>* Netflix Inc said its second quarter earnings more than doubled as it added 1.7 million subscribers world-wide but cautioned that a more aggressive international expansion would hurt profits in third quarter. (<a href="http://on.wsj.com/1wTaZc1" title="http://on.wsj.com/1wTaZc1">http://on.wsj.com/1wTaZc1</a>)</p> <p>* Venezuela's auto industry, once the third largest in South America, is seizing up as manufacturers struggle to produce a few vehicles a day. Car makers like Ford Motor Co, Fiat Chrysler Automobiles, General Motors and Toyota Motor Corp, have cut output by more than 80 percent in the first six months of the year, due to lack of dollars to pay part suppliers. (<a href="http://on.wsj.com/1nv5BMM" title="http://on.wsj.com/1nv5BMM">http://on.wsj.com/1nv5BMM</a>)</p> <p>* Activist investor Jana Partners LLC has built a stake worth more than $1 billion in Apache Corp and is calling on the oil and gas producer to sell off its international holdings to drill exclusively on American soil. It also wants the company to exit some projects to free up cash flow. (<a href="http://on.wsj.com/UkTOUB" title="http://on.wsj.com/UkTOUB">http://on.wsj.com/UkTOUB</a>)</p> <p>* Crocs is trimming jobs and reducing the number of stores as the maker of colorful plastic clogs said it needs to get smaller to improve profitability. (<a href="http://on.wsj.com/1u9SQuJ" title="http://on.wsj.com/1u9SQuJ">http://on.wsj.com/1u9SQuJ</a>)</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">FT</span></em></p> <p>Time Warner Cable Inc, which owns cable networks TNT and CNN, scrapped a rule that allows investors to call a shareholder meeting in a bid to block a potential hostile takeover by Rupert Murdoch's Twenty-First Century Fox.</p> <p>Portugal's largest-listed lender, Banco Espirito Santo is to appoint a special financial adviser to help improve its balance sheet days after one of its holding companies filed for creditor protection.</p> <p>Barclays Plc U.S. dark pool slips from second to 12th place in terms of volumes traded as customers flee following a lawsuit that alleged the lender misled clients about frequency activity in its private trading venue.</p> <p>China's MMG Ltd shareholders approve purchase of the Las Bambas copper project in Peru from Glencore Plc for $5.85 billion.</p> <p>British engineering contractor Babcock International's order book for the coming year rose to 13.5 billion pounds ($23.1 billion), helped by recent contract wins and its acquisition of helicopter transport firm Avincis.</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">NYT</span></em></p> <p>* Netflix Inc reported its business grew in the second quarter thanks to international customers and little adverse effect from an announced price increase. The company said it surpassed 50 million total members for its streaming service, including free trial memberships, in the second quarter of this year. Netflix has announced plans to introduce its service to a number of European markets in September, including Austria, Belgium, France, Germany, Luxembourg and Switzerland. (<a href="http://nyti.ms/1lodcae" title="http://nyti.ms/1lodcae">http://nyti.ms/1lodcae</a>)</p> <p>* In response to an article about the political connections of some of its shareholders, Alibaba Group Holding Ltd &lt;IPO-BABA.N&gt; discounted the notion that their backgrounds helped drive its business. In a strongly worded statement on Monday in Chinese on its account on Weibo, a Twitter-like social media network, Alibaba said The Times article "mistakenly described" Alibaba's relationship with the investors. (<a href="http://nyti.ms/1n7qLzq" title="http://nyti.ms/1n7qLzq">http://nyti.ms/1n7qLzq</a>)</p> <p>* Yahoo Inc announced Monday that it had agreed to acquire Flurry, a mobile ad and analytics company. Flurry's advertising expertise could help Yahoo as it tries to build a meaningful mobile ad business. Although more than half of Yahoo's monthly audience visits come on mobile devices, revenue from mobile ads is still so small that the company does not break it out. (<a href="http://nyti.ms/Ul2utY" title="http://nyti.ms/Ul2utY">http://nyti.ms/Ul2utY</a>)</p> <p>* Time Warner Inc on Monday amended its corporate bylaws and removed a provision that allowed shareholders to call a special board meeting. In a filing with the Securities and Exchange Commission, Time Warner said the change was effective immediately. Without the ability to call a special meeting, shareholders supportive of a Twenty-First Century Fox offer would not be able to replace Time Warner's board of directors before the company's next annual meeting, which would likely come next June. (<a href="http://nyti.ms/UodPcn" title="http://nyti.ms/UodPcn">http://nyti.ms/UodPcn</a>)</p> <p>* Malaysia Airlines' two crashes in less than five months are sending tremors through the aviation insurance market - not least because the carrier's $2.25 billion overall liability policy is mysteriously missing a standard clause that usually limits insurers' payments for search-and-rescue costs. (<a href="http://nyti.ms/1wTlbS7" title="http://nyti.ms/1wTlbS7">http://nyti.ms/1wTlbS7</a>)</p> <p>* A Senate investigation has found that hedge funds - in particular, James Simons' Renaissance Technologies - used complex financial structures to claim billions of dollars in tax savings. Between 1998 and 2013, more than a dozen hedge funds conducted hundreds of billions of dollars in trades using hundreds of structures, known as "basket options," created by Barclays Plc and Deutsche Bank AG, the Senate Permanent Subcommittee on Investigations said in a report on Monday. (<a href="http://nyti.ms/1n7EsOT" title="http://nyti.ms/1n7EsOT">http://nyti.ms/1n7EsOT</a>)</p> <p>* Goodwill Industries International, a nonprofit agency that operates thrift stores around the country, said on Monday that it was investigating a potential security breach that may have led to the theft of customers' credit card data. (<a href="http://nyti.ms/1qZZ5vl" title="http://nyti.ms/1qZZ5vl">http://nyti.ms/1qZZ5vl</a>)</p> <p>* Hedge funds are not new to farmland. For nearly a decade they have scoured the corners of the globe for cheap land as food prices have soared, positioning themselves to profit from the growing demand. Hedge funds now have $14 billion invested in farmland, according to the data provider Preqin. With its steady income stream, farmland is proving to be a ripe offering for sophisticated investors. (<a href="http://nyti.ms/1nPkbc0" title="http://nyti.ms/1nPkbc0">http://nyti.ms/1nPkbc0</a>)</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">Canada</span></em></p> <p>THE GLOBE AND MAIL</p> <p>* A Chinese man accused of being the "directing mind" behind a corporate-espionage conspiracy to steal jet-fighter secrets from Pentagon contractors is a Canadian immigrant who is being stripped of his residency status. (<a href="http://bit.ly/1n8LvH3" title="http://bit.ly/1n8LvH3">http://bit.ly/1n8LvH3</a>)</p> <p>* The mysterious shooting death of a respected Florida law professor originally from Toronto took a sinister turn on Monday as investigators revealed that Dan Markel was the victim of a targeted attack. (<a href="http://bit.ly/1A0wwEi" title="http://bit.ly/1A0wwEi">http://bit.ly/1A0wwEi</a>)</p> <p>Reports in the business section:</p> <p>* Mark Brock has been growing corn near London, Ontario, for decades but he has never seen a market quite like this with prices plummeting so fast he may not even try to sell some of his crop this year. Like many farmers, Brock has been trying to protect his profits by forward selling as much of his corn as possible. (<a href="http://bit.ly/1uaPR4Z" title="http://bit.ly/1uaPR4Z">http://bit.ly/1uaPR4Z</a>)</p> <p>NATIONAL POST</p> <p>* The New Democratic Party is vigorously defending allegations it improperly put parliamentary staff in so-called satellite offices in Quebec before a meeting by the House of Commons panel that monitors spending by members of parliament. (<a href="http://bit.ly/WvqFqU" title="http://bit.ly/WvqFqU">http://bit.ly/WvqFqU</a>)</p> <p>* Senator Mike Duffy allegedly charged the Senate for personal travel to funerals, and disbursed money to three people for illegitimate expenses under the guise of a consulting contract. The allegations are contained in newly released court documents. The documents were made public on Monday, several days after the Royal Canadian Mounted Police announced that it was charging the suspended senator with 31 criminal counts. (<a href="http://bit.ly/1lppSgW" title="http://bit.ly/1lppSgW">http://bit.ly/1lppSgW</a>)</p> <p>FINANCIAL POST</p> <p>* Rogers Publishing announced a small shakeup to its magazine mastheads on Tuesday, with three top editors cut loose, as part of an effort to streamline its editorial structure. According to an internal staff memo, the position of editor-at-large, held by Dianne de Fenoyl, would be eliminated, and de Fenoyl would be leaving after nearly a decade with the company. (<a href="http://bit.ly/1n8QZ4q" title="http://bit.ly/1n8QZ4q">http://bit.ly/1n8QZ4q</a>)</p> <p>* Fashion industry veteran Mario Grauso has been promoted to president of Loblaw Companies Ltd's in-house apparel brand Joe Fresh. The move comes as part of a major management shuffle at the country's biggest grocery chain last week, which saw Galen Weston named president of the retailer and the exit of president Vicente Trius. (<a href="http://bit.ly/1kONJqg" title="http://bit.ly/1kONJqg">http://bit.ly/1kONJqg</a>) </p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">China</span></em></p> <p>SHANGHAI DAILY</p> <p>- New residential property sales remained sluggish in Shanghai, staying below the 150,000-sq. m. threshold for the second straight week. In the nearby city of Hangzhou, home buyers remain reluctant to buy property even though housing prices have started to fall, as they expect prices to decline further.</p> <p>CHINA DAILY</p> <p>- China Mobile Ltd, the world's No. 1 telecom carrier by subscriber numbers, said on Monday it was removing its premium customer lounges at the nation's airports in a bid to cut back on operating expenses. The firms also plans to close down the majority of its customer clubs, a type of value-added service introduced a few years ago to lure new subscribers.</p> <p>- China's railway track should total more than 200,000 km by 2030, in line with the nation's economic goals, and at least 10 percent of it will be for high-speed rail, the former chairman of China South Locomotive and Rolling Stock Co Ltd, and an adviser to the China Institute for Innovation and Development Strategy, said. China had 103,144 km of track, including 11,028 km for high-speed rail, the longest in the world.</p> <p>CHINA SECURITIES JOURNAL</p> <p>- China Financial Futures Exchange Board Chairman Zhang Shenfeng wrote an article advocating further reform and technical improvements to the market interest rate system.</p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">Hong Kong</span></em></p> <p>SOUTH CHINA MORNING POST</p> <p>-- Hong Kong does not need a controversial HK$30 billion ($3.87 billion) upgrade of its centralised wastewater treatment system as the water in the harbour is clean enough, at least for now, the city's environment officials say. (bit.ly/1rlh3uf)</p> <p>-- The chief executive of the Hong Kong Monetary Authority, Norman Chan Tak-lam, defended the city's strict banking rules as some of the best in the world, amid a flurry of recent international concern over the territory's banking system. (bit.ly/1jSmZKm)</p> <p>THE STANDARD</p> <p>-- Health and wellness products retailer OTO Holdings has been censured by the Hong Kong stock exchange for breaching the bourse's listing rules of twice failing to timely disclose its weaker results, along with its executive directors neglecting their undertaking to the bourse. (bit.ly/1rwQHHv)</p> <p>-- Electronic books could soon turn a page to greater popularity in Hong Kong, says an e-book provider. Sino United Electronic Publishing content director Ivan Tsoi Yiu-ming said he is optimistic about e-books due to the popularity of tablet computers and smartphones. (bit.ly/UnUCHM)</p> <p>-- Tissue paper firm Vinda International said net profit fell 21.8 percent in the first half to HK$222.18 ($28.66) million, from a year earlier, due to foreign exchange losses as the yuan weakened against the U.S. dollar. (bit.ly/1qZjEYT)</p> <p>HONG KONG ECONOMIC JOURNAL</p> <p>-- Morgan Stanley has raised its stake in Wing Hang Bank to 5.03 percent from 4.84 percent, according to data from the Hong Kong stock exchange.</p> <p>HONG KONG ECONOMIC TIMES</p> <p>-- HK Electric Investments Ltd posted a profit of HK$967 million ($124.75 million) for the first half of 2014 while distributable income amounted to HK$1.46 billion.</p> <p>MING PAO DAILY NEWS</p> <p>-- The average monthly rental of Hong Kong's 85 major residential developments stood at HK$23.2($2.99) per square foot in June, the highest monthly rental in 19 years, according to a report from property agent Centaline.</p> <p></p> <p><em><span style="text-decoration: underline;">Britain</span></em></p> <p>The Times</p> <p>RBS PAYS 900,000 POUNDS FINE FOR AUSTRALIAN RATE-RIGGING</p> <p>(<a href="http://thetim.es/1pxlC1F" title="http://thetim.es/1pxlC1F">http://thetim.es/1pxlC1F</a>) Australian regulators have fined Royal Bank of Scotland nearly 900,000 pounds after the bank admitted its role in attempts to manipulate the country's equivalent of the Libor benchmark borrowing rate.</p> <p>BANK OF ENGLAND'S COURT OPENS DOOR TO WOMEN CHIEFS</p> <p>(<a href="http://thetim.es/1p3Lpgp" title="http://thetim.es/1p3Lpgp">http://thetim.es/1p3Lpgp</a>)</p> <p>The female chief executives of the telecoms company TalkTalk and the Yorkshire-based power plant Drax are among the new appointees to the board of the Bank of England, which was heavily criticised for having insufficient women in senior positions.</p> <p>The Guardian</p> <p>HEDGE FUNDS USED 'DUBIOUS' MEANS TO BYPASS TAX RULES, SENATORS SAY</p> <p>(<a href="http://bit.ly/1sH5Wh8" title="http://bit.ly/1sH5Wh8">http://bit.ly/1sH5Wh8</a>)</p> <p>More than a dozen hedge funds, with assistance of Barclays and Deutsche Bank, used "dubious" financial products to claim billions in unjustified tax savings and circumvent rules meant to limit risky bets, a Senate subcommittee investigation has found.</p> <p>COMPETITION REGULATOR MUST FORCE BANKS TO IMPROVE SERVICE, MPS SAY</p> <p>(<a href="http://bit.ly/1ySroAs" title="http://bit.ly/1ySroAs">http://bit.ly/1ySroAs</a>)</p> <p>MPs have called on the competition watchdog to force high street banks to improve standards and the way they treat their customers after the Competition and Markets Authority signalled it would investigate the industry.</p> <p>The Telegraph</p> <p>ESPIRITO SANTO CRISIS COULD AFFECT PORTUGAL'S ECONOMY, WARNS PRESIDENT ANIBAL CAVACO SILVA</p> <p>(<a href="http://bit.ly/Wt84vU" title="http://bit.ly/Wt84vU">http://bit.ly/Wt84vU</a>)</p> <p>The president of Portugal has warned that the financial crisis gripping the Espirito Santo family could affect the country's economy.</p> <p>JUNCKER FACES POLITICAL TEST AS FINES LOOM ON ILLEGAL GERMAN TRADE SURPLUS</p> <p>(<a href="http://bit.ly/UnMual" title="http://bit.ly/UnMual">http://bit.ly/UnMual</a>)</p> <p>Germany's current account surplus is the largest ever recorded in proportional terms and far above the threshold for EU sanctions, posing a major political test for the incoming commission of Jean-Claude Juncker.</p> <p>Sky News</p> <p>GLENFIDDICH EYES 100 MLN STG DRAMBUIE SCOTCH MERGER</p> <p>(<a href="http://bit.ly/1p8mlrp" title="http://bit.ly/1p8mlrp">http://bit.ly/1p8mlrp</a>)</p> <p>The family-owned business behind Glenfiddich and Grant's is examining a 100 million pound takeover of Drambuie, the liqueur reputed to be made from a recipe concocted by Bonnie Prince Charlie.</p> <p>BBA IN TALKS ABOUT PAYMENTS COUNCIL MERGER</p> <p>(<a href="http://bit.ly/1wQFvUa" title="http://bit.ly/1wQFvUa">http://bit.ly/1wQFvUa</a>)</p> <p>The banking industry's main lobbying group, British Bankers' Association, is considering proposals to merge with at least two of its peers amid pressure from leading members to reduce costs levied by trade organisations.</p> <p>&nbsp;</p> <p><strong>Fly On The Wall Pre-Market Buzz</strong></p> <p>ANALYST RESEARCH</p> <p>Upgrades</p> <p>Allergan (AGN) upgraded to Buy from Neutral at UBS<br />American Axle (AXL) upgraded to Neutral from Underweight at JPMorgan<br />Diamondback Energy (FANG) upgraded to Buy from Neutral at Roth Capital<br />Digital Realty (DLR) upgraded to Buy from Hold at Deutsche Bank<br />Five Below (FIVE) upgraded to Outperform from Market Perform at Wells Fargo<br />Gas Natural (EGAS) upgraded to Buy from Hold at Wunderlich<br />Hasbro (HAS) upgraded to Overweight from Equal Weight at Barclays<br />Huntington Bancshares (HBAN) upgraded to Outperform at Keefe Bruyette<br />Realogy (RLGY) upgraded to Buy from Neutral at Citigroup<br />Sanmina (SANM) upgraded to Hold from Sell at Deutsche Bank<br />Trex Company (TREX) upgraded to Buy from Hold at Stifel<br />VCA Inc. (WOOF) upgraded to Hold from Sell at Stifel<br />Valspar (VAL) upgraded to Conviction Buy from Neutral at Goldman</p> <p>Downgrades</p> <p>Amazon.com (AMZN) downgraded to Neutral from Buy at Citigroup<br />Arcos Dorados (ARCO) downgraded to Underweight from Neutral at HSBC<br />Cadence Design (CDNS) downgraded to Neutral from Overweight at JPMorgan<br />Matador (MTDR) downgraded to Hold from Buy at Stifel<br />SunTrust (STI) downgraded to Equal-Weight from Overweight at Evercore</p> <p>Initiations</p> <p>Abengoa Yield (ABY) initiated with an Equal Weight at Morgan Stanley<br />Actinium Pharmaceuticals (ATNM) initiated with a Buy at Canaccord<br />Chambers Street Properties (CSG) initiated with a Neutral at SunTrust<br />Minerals Technologies (MTX) initiated with an Outperform at Wedbush<br />NextEra Energy Partners (NEP) initiated with a Buy at BofA/Merrill<br />NextEra Energy Partners (NEP) initiated with a Hold at Deutsche Bank<br />NextEra Energy Partners (NEP) initiated with a Hold at KeyBanc<br />NextEra Energy Partners (NEP) initiated with a Neutral at Goldman<br />NextEra Energy Partners (NEP) initiated with a Neutral at UBS<br />NextEra Energy Partners (NEP) initiated with an Equal Weight at Morgan Stanley<br />NextEra Energy Partners (NEP) initiated with an Outperform at BMO Capital<br />QIWI (QIWI) initiated with a Positive at Susquehanna<br />Quality Systems (QSII) initiated with a Buy at Topeka<br />Trinseo S.A. (TSE) initiated with a Buy at Deutsche Bank<br />Trinseo S.A. (TSE) initiated with a Buy at Goldman<br />Trinseo S.A. (TSE) initiated with a Buy at Jefferies<br />Trinseo S.A. (TSE) initiated with a Neutral at Citigroup<br />Trinseo S.A. (TSE) initiated with an Equal Weight at Morgan Stanley<br />Trinseo S.A. (TSE) initiated with an Outperform at Wells Fargo<br />Washington Prime Group (WPG) initiated with a Neutral at SunTrust</p> <p><strong>COMPANY NEWS</strong></p> <p>Johnson &amp; Johnson (JNJ) announced a $5B share repurchase program<br />Credit Suisse (CS) said it will exit commodities trading business<br />CIT Group (CIT) to acquire OneWest Bank for $3.4B in cash and stock<br />Time Warner (TWX) amended by-laws to block holders ability to call special meeting (FOXA)<br />TG Therapeutics announced preliminary clinical results from its ongoing Phase I study of TG-1101, and said 100% of CLL/SLL patients had significant nodal reduction with either a normalization of or greater than or equal to 80% reduction in Blood Lymphocyte Count.<br />Kindred Healthcare (KND) offered to acquire Gentiva Health (GTIV) for $17.25 per share. Kindred said it is willing to consider further increasing its offer for Gentiva<br />Netflix reported Q2 total streaming net additions of 1.69M. Said policy goal is for DOJ/FCC to block Comcast (CMCSA), TWC (TWC) deal</p> <p><strong>EARNINGS</strong></p> <p>Companies that beat consensus earnings expectations last night and today include:<br />Verizon (VZ), Polaris Industries (PII), Signature Bank (SBNY), New Oriental Education (EDU), PLX Technology (PLXT), Crocs (CROX), First Interstate (FIBK), First Defiance Financial (FDEF), Helix Energy (HLX), Crown Holdings (CCK), Ultra Clean (UCTT), Texas Instruments (TXN), Artisan Partners (APAM), Zions Bancorp (ZION), PolyOne (POL), Waste Connections (WCN), Woodward (WWD), Rambus (RMBS), Cadence Design (CDNS), Sanmina (SANM), Trustco Bank (TRST), Chipotle (CMG), MainSource Financial (MSFG)</p> <p>Companies that missed consensus earnings expectations include:<br />Carlisle (CSL), Del Frisco's (DFRG), Brown &amp; Brown (BRO), BBCN Bancorp, Inc. (BBCN), Old Line Bancshares (OLBK), AptarGroup (ATR), EMC Insurance (EMCI), TG Therapeutics (TGTX), Wilshire Bancorp (WIBC), Washington Trust Bancorp (WASH), Netflix (NFLX)</p> <p>Companies that matched consensus earnings expectations include:<br />Regions Financial (RF), DuPont (DD), BancorpSouth (BXS), Steel Dynamics (STLD), Consumer Portfolio (CPSS), Healthstream (HSTM), Rent-A-Center (RCII), Hexcel (HXL)</p> <p><strong>NEWSPAPERS/WEBSITES</strong></p> <p>Apple (AAPL) asking suppliers to produce 80M large-screen iPhones, WSJ reports<br />JANA investor letter discloses $1B position in Apache (APA), Bloomberg says<br />China food scandal spreads, drags in Starbucks (SBUX), Burger King (BKW) and McDonald's (MCD) products in Japan, Reuters reports<br />Yahoo (YHOO) paying over $200M for Flurry, TechCrunch reports<br />Viacom's (VIA) music group and Spotify form music streaming partnership, WSJ reports<br />Global notebook shipments to increase 4.3% in Q3, DigiTimes Research says<br />McDonald's (MCD) stock doesn't look ready for gains, Barron's says</p> <p><strong>SYNDICATE</strong></p> <p>Blue Hills Bank (BHBK) 27.8M share Secondary priced at $10.00<br />Diamondback Energy (FANG) 5M share Secondary priced at $87.00<br />FBR &amp; Co. (FBRC) announces self-tender offer to purchase up to 1M shares<br />Pretium Resources (PVG) files to sell $60M in common stock<br />Regency Energy Partners (RGP) files to sell 8.3M units for limited partners<br />Tallgrass Energy (TEP) files to sell 7M units representing limited partners</p> http://www.zerohedge.com/news/2014-07-22/frontrunning-july-22#comments American Axle Apple Bank of England Barclays Belgium Bond British Bankers' Association China Chrysler CIT Group Citigroup Comcast Copper Credit Suisse default Detroit Deutsche Bank Evercore Florida Ford France General Motors Germany Hong Kong Housing Prices Israel Jana Partners Japan Keefe LIBOR Merrill Morgan Stanley Netherlands Obamacare Portugal RBS Reality Regions Financial Renaissance Reuters Royal Bank of Scotland Securities and Exchange Commission SWIFT Switzerland Time Warner Toyota Ukraine Verizon Wells Fargo Yuan Tue, 22 Jul 2014 11:41:35 +0000 Tyler Durden 491506 at http://www.zerohedge.com Stocks Desperate To Put Ukraine In Rearview Mirror But More Russian Sanctions Loom http://www.zerohedge.com/news/2014-07-22/stocks-desperate-put-ukraine-rearview-mirror-more-russian-sanctions-loom <p>Following the overnight ramp in various JPY crosses (dragging equity futures higher, and the Nikkei up 0.8%) it is as if the market is desperate to put all of last week's geopolitical events in the rearview mirror, and while yesterday there were no economic events of note, today's CPI and existing home prints should provide at least some distraction from the relentless barrage of one-line updates on Ukraine and Gaza. Still, that is precisely where the biggest risk remains, with an emphasis on the possibility of more Russian sanctions, this time by Europe. </p> <p>Today will likely see more headlines on the situation as EU foreign ministers meet as well as the Russian Security Council. Watch out for headlines from all angles. Perhaps the most market-friendly outcome is that EU leaders talk very tough but do not agree on intensifying sanctions against Russia. Reuters thinks that despite all the tough talk, the EU is unlikely to punish Russia beyond the speeding up of the imposition of already agreed individual sanctions. A summit of EU leaders on July 16, the day before the airliner was downed, agreed the EU would punish Russian companies that help to destabilize Ukraine. According to Reuters, diplomats said Tuesday's meeting in Brussels was still not expected to go much further than agreeing on the people and possibly companies to be hit with asset freezes under the framework agreed last week. Previously, they had only said they would decide on the list by the end of July. Citing unnamed diplomats, Reuters said moving towards more sweeping economic sanctions could only be decided by heads of government. The next scheduled summit of EU leaders is on August 30, though EU members could call for another emergency meeting.</p> <p>An unknown element today will be the Dutch, who have previously advocated caution in imposing sanctions against Russia, but are likely going to be a large swing factor today. The Netherlands previous caution with respect to Russia was perhaps to due to its significant economic ties, but they will be forced into action given the loss of life they have experienced in the MH17 tragedy. In terms of the Russian Security Council meeting, not a lot has been reported on what to expect from this. Putin will chair the meeting to discuss "issues connected with safeguarding the sovereignty and territorial integrity of the Russian Federation," the Kremlin said in a statement on Monday. </p> <p>Turning to Asia, we’re seeing a tentative but positive tone to trading ahead of today's events which include the EU foreign ministers meeting, US CPI and a number of important corporate earnings. There are solid gains being recorded across the Hang Seng (+1.15%), HSCEI (+1.5%) and Japan has return from holidays with a 0.8% gain in the Nikkei. There is an interesting article on Bloomberg today, suggesting that there is a rift within the Bank of Japan’s board with respect to the ability of the central bank to meet its inflation target. According to the article, a majority of the nine members disagree with Kuroda’s view that the BoJ’s QQE program is sufficient to get 2% inflation, and most conclude it cannot be done without government steps to raise Japan’s growth potential, citing unnamed sources. USDJPY is broadly unchanged today. Elsewhere Indonesia remains a focus with official election results to be announced later today. IDR continues to rally and is a further 0.3% stronger today while Indonesian USD sovereign paper is trading stronger.&nbsp; MSCI Asia Pacific up 0.6% to 147.8; Nikkei 225 up 0.8%, Hang Seng up 1.7%, Kospi up 0.5%, Shanghai Composite up 1%, ASX up 0.1%, Sensex up 0.9%.</p> <p>Equity markets in Europe shrugged off the lower close on Wall Street as the strong performance from Asia-Pacific equities prompted a gap higher at the open, with the energy and materials sectors outperforming on a recent rebound in commodities prices. Earnings in Europe have been received favourably, with ARM Holdings (ARM LN), IG Group (IGG LN) and Actelion (ATLN VX) outweighing a poor update from Credit Suisse (CSGN VX), who have been forced to close their commodities trading unit in order to offset losses prompted by US tax fines. 17 out of 19 Stoxx 600 sectors rise; basic resources, oil &amp; gas outperform; retail, media underperform. 73.2% of Stoxx 600 members gain, 24.8% decline. Eurostoxx 50 +0.5%, FTSE 100 +0.6%, CAC 40 +0.3%, DAX +0.5%, IBEX +0.5%, FTSEMIB +0.6%, SMI +0.2%</p> <p>Today’s calendar looks more interesting than that of the last 24 hours. The EU foreign ministers’ meeting starts at 8:30am London time this morning. Ahead of that we have some European corporate earnings with Credit Suisse (which were a <a href="http://online.wsj.com/articles/credit-suisse-posts-loss-after-u-s-settlement-1406004025?mod=WSJ_hp_LEFTWhatsNewsCollection">bigger miss than expected</a>) and Norsk Hydro’s results. Today’s US earnings calendar today features results from a number of megacaps including the likes of <strong>McDonalds, Coca-cola Co, Verizon (before the open) and Apple and Microsoft (after-market</strong>). A major focus today is on US CPI. Consensus is +2.1% YoY and +2.0% in headline and core respectively. There is also existing home sales today. Both pieces of data have the capacity to move treasury markets. Hungary’s central bank also holds its rate meeting today.</p> <p><strong>Market Wrap</strong></p> <ul> <li>S&amp;P 500 futures up 0.1% to 1967.7</li> <li>Stoxx 600 up 0.5% to 339.7</li> <li>US 10Yr yield up 1bps to 2.48%</li> <li>German 10Yr yield up 1bps to 1.16%</li> <li>MSCI Asia Pacific up 0.6% to 147.8</li> <li>Gold spot down 0.4% to $1307.5/oz</li> </ul> <p><strong>Bulletin Headline Summary from RanSquawk and Bloomberg</strong></p> <ul> <li>EUR/USD approached YTD lows at 1.3477 this morning, after July’s support at 1.3491 was broken. Real money supply and strong demand for USD/CHF lifted the USD-index to six week highs as thin trade exacerbated price action </li> <li>All eyes on Brussels as the EU foreign affairs presser is expected to unveil further sanctions on the Russian arms and dual-use industrial goods sector </li> <li>US earnings calendar thick and fast today, with Apple, Microsoft, Verizon, Coca-Cola, McDonalds, Lockheed Martin and Altria all due today</li> <li>Treasuries decline, led by 7Y and 10Y notes as global stocks rally; 5/30 curve touches new 5-year tight in overnight trading.</li> <li>EU governments labored to identify more Russian businesspeople and companies to sanction and pressed Putin to speed a probe into the downing of Malaysian Air flight MH17 or face isolation</li> <li>54% of jobs in the EU are at risk of advances in computerization, according to a study by economist Jeremy Bowles published by Bruegel, a Brussels-based research organization.</li> <li>U.S. Secretary of State Kerry put the onus on the Gaza Strip’s Hamas rulers to halt two weeks of fighting with Israel that has killed more than 600 people, the overwhelming majority of them Palestinians</li> <li>Credit Suisse said it will exit commodities trading as a $2.6b fine to settle a U.S. tax investigation pushed the Swiss bank to its biggest quarterly loss since 2008</li> <li>Texas Governor Rick Perry said he will send as many as 1,000 National Guard troops to help secure the border with Mexico; about 57,000 unaccompanied minors have arrived at the border since October, double the total from fiscal 2013</li> <li>U.S. Senator Ron Johnson’s lawsuit challenging an Obamacare provision subsidizing health insurance for members of Congress and their aides was dismissed by a judge who found the lawmaker failed to show he’d been harmed</li> <li>Sovereign yields mostly higher. Euro Stoxx Banks +1.54%. Asian and European stocks equities gain, U.S. stock futures rise. WTI crude and copper higher, gold declines</li> </ul> <p><strong>US Event Calendar</strong></p> <ul> <li>8:30am: CPI m/m, June, est. 0.3% (prior 0.4%) <ul> <li>CPI Ex Food and Energy m/m, June, est. 0.2% (prior 0.3%)</li> <li>CPI y/y, June, est. 2.1% (prior 2.1%)</li> <li>CPI Ex Food and Energy y/y, June, est. 2% (prior 2%)</li> <li>CPI Core Index SA, June, est. 238.227 (prior 237.776)</li> <li>CPI Index NSA, June, est. 238.535 (prior 237.9)</li> </ul> </li> <li>9:00am: FHFA House Price Index m/m, May, est. 0.2% (prior 0.0%)</li> <li>10:00am: Richmond Fed Manufacturing Index, July, est. 5 (prior 3)</li> <li>10:00am: Existing Home Sales, June, est. 4.99m (prior 4.89m) <ul> <li>Existing Home Sales m/m, June, est. 2% (prior 4.9%) Supply</li> </ul> </li> </ul> <p><strong>ASIAN HEADLINES </strong></p> <p>The Nikkei 225 (+0.84%) managed to pull back the majority of Friday’s losses after yesterday’s market closure, with Chinese and Hong Kong markets (Shanghai Comp +1.02%, Hang Seng +1.69%) benefiting from the PBoC choosing not to drain liquidity overnight. </p> <p><strong>FIXED INCOME </strong></p> <p>Fixed income markets trade softer, with strong equity markets weighing, as Bund futures continue to retreat from contract highs at 148.49 printed on Friday. Furthermore, relatively poorly received (bid/cover 1.84 vs. prev. 2.04) Gilt supply (circa 30K Gilt futures contracts) has pressed prices lower. Italian and Spanish 10yr yield spreads trade slightly tighter, as markets take a favourable view on consolidation in the Italian banking sector, after Banca Carige unveiled plans to offload assets. Barclays Prelim Pan Euro Agg Month-end Extension +0.11y (Prev. month 0.09y, 12m ave. 0.08y), Prelim Treasury Month-end Extension +0.08y (Prev. month 0.08y, 12m ave. 0.09y) </p> <p><strong>EQUITIES </strong></p> <p>Equity markets in Europe shrugged off the lower close on Wall Street as the strong performance from Asia-Pacific equities prompted a gap higher at the open, with the energy and materials sectors outperforming on a recent rebound in commodities prices. Earnings in Europe have been received favourably, with ARM Holdings (ARM LN), IG Group (IGG LN) and Actelion (ATLN VX) outweighing a poor update from Credit Suisse (CSGN VX), who have been forced to close their commodities trading unit in order to offset losses prompted by US tax fines.</p> <p><strong>FX </strong></p> <p>EUR/USD tripped stops on the way through 1.35 to hit the lowest level since February at 1.3481, with real money supply weighing on the currency as USD/CHF buying lifted the USD-index by almost 0.2%. Traders now eye a base in EUR/USD at the yearly lows of 1.3477, with analysts at IFR noting talk of option barriers at 1.3475 and 1.3450.</p> <p><strong>COMMODITIES</strong></p> <p>Oil trades slightly higher ahead of the NYMEX open as continued instability in the Middle-east and eastern Europe keeps a floor under prices. Nonetheless, expectations of a resumption of shipping from Libya’s Brega oil port could keep a cap on Brent price action. Precious metals markets have fallen alongside fixed income, as EU sanctions on Russia are seen sparing the resources and commodities sectors. Near-term focus shifts to the API crude oil inventories due after market and the August WTI option expiries due at the pit close</p> <p>* * * </p> <p><strong>DB's Jim Reid Concludes the Overnight Summary</strong></p> <p>Ever since news broke that Thursday's tragic plane crash may have been caused by a missile fired by pro-Russia separatists I've felt that this story was an incredibly dangerous one for global stability and also the global economy. However most of these major geopolitical events do eventually pass even if concerns heighten so maybe the market is correct to be relatively sanguine. Will this be another such occasion? In my mind the market is not assigning a high enough probability of this situation escalating to uncomfortable levels but the reality is the most likely outcome is that it doesn't. Therein lies the dilemma of investing. Do you position for the most likely outcome along with the crowd or do you stand more alone and position for the lower probability but higher impact outcome. Over a career you'll probably get higher overall returns with the latter strategy but you may have more uncomfortable moments explaining and surviving frequent small under-performance. Also trading liquidity is shallow enough at the moment, especially in assets like cash credit, that it doesn't necessary pay to try to capture short-term moves. So we're not changing our recommendations at the moment but it’s fair to say we feel uneasy at developments over the past few days.</p> <p>Indeed the newsflow continues in this story with no signs of an imminent solution or escalation yet. However with Russia seemingly not keen on accepting the West's version of events, President Obama putting some pressure on them yesterday afternoon and EU foreign ministers meeting today there is a real possibility of a ratcheting up of sanctions on Russia later this week – including possibly more hard-hitting “level 3” sanctions. The US may find it economically easier to deal with this outcome than Europe though. On a client call yesterday (call replay details included at the end), DB’s Yaroslav Lissovolik, DB’s Head of Research (Russia) discussed Putin’s likely next actions and commented that opinion polls in Russia are suggesting war fatigue, with two thirds against continued support for the pro-Russian separatists. Given this there is a chance that Putin may wish to de-escalate the situation if possible, although Yaroslav noted that Putin may decide to escalate the situation further in the near-term in order to de-escalate at a later point. Also on the call was Frank Kelly, DB’s geopolitical go-to man, who gave his view on the US position. After watching Obama’s press conference yesterday he sees the White House’s position as giving Putin the opportunity to save face and help de-escalate the situation before the stepping up of sanctions. For example Frank thinks we need to see Putin call for a ceasefire and take actions to support it and/or help secure the MH17 crash site. If these actions aren’t forthcoming he believes the US will announce further sanctions on Russia.</p> <p>As we mentioned earlier, today will likely see more headlines on the situation as EU foreign ministers meet as well as the Russian Security Council. So watch out for headlines from all angles. Perhaps the most market-friendly outcome is that EU leaders talk very tough but do not agree on intensifying sanctions against Russia. Reuters thinks that despite all the tough talk, the EU is unlikely to punish Russia beyond the speeding up of the imposition of already agreed individual sanctions. A summit of EU leaders on July 16, the day before the airliner was downed, agreed the EU would punish Russian companies that help to destabilize Ukraine. According to Reuters, diplomats said Tuesday's meeting in Brussels was still not expected to go much further than agreeing on the people and possibly companies to be hit with asset freezes under the framework agreed last week. Previously, they had only said they would decide on the list by the end of July. Citing unnamed diplomats, Reuters said moving towards more sweeping economic sanctions could only be decided by heads of government. The next scheduled summit of EU leaders is on August 30, though EU members could call for another emergency meeting. </p> <p>An unknown element today will be the Dutch, who have previously advocated caution in imposing sanctions against Russia, but are likely going to be a large swing factor today. The Netherland’s previous caution with respect to Russia was perhaps to due to its significant economic ties, but they will be forced into action given the loss of life they have experienced in the MH17 tragedy. In terms of the Russian Security Council meeting, not a lot has been reported on what to expect from this. Putin will chair the meeting to discuss "issues connected with safeguarding the sovereignty and territorial integrity of the Russian Federation," the Kremlin said in a statement on Monday. </p> <p>So we may get a short term relief rally if the EU foreign ministers meeting ends today with no concrete steps towards further sanctions – but this doesn’t take away from the fact that we still face a potentially dangerous threat to global stability. Following yesterday’s speech from Obama, we saw a small relief rally as the US president said he still preferred a diplomatic resolution for Ukraine and did not announce any level 3 sanctions. Some also highlighted that Obama chose to discuss the situation in the Middle East first, before the Ukraine/Russia crisis, and was perhaps trying to play the situation down a touch. Either way, US equities bottomed just before Obama’s comments, and from there the S&amp;P500 recovered around 0.33% to close at -0.23% on the day. Rates closed marginally stronger (10yr yield at 2.47%, -1.5bp) although yields also bottomed shortly before Obama spoke and traded upwards towards the end of the NY session. However, this didn’t stop the US30yr yield (3.26%, -3bp) closing at its lowest level in more than a year. </p> <p>Turning to Asia, we’re seeing a tentative but positive tone to trading ahead of today's events which include the EU foreign ministers meeting, US CPI and a number of important corporate earnings. There are solid gains being recorded across the Hang Seng (+1.15%), HSCEI (+1.5%) and Japan has return from holidays with a 0.96% gain in the Nikkei. There is an interesting article on Bloomberg today, suggesting that there is a rift within the Bank of Japan’s board with respect to the ability of the central bank to meet its inflation target. According to the article, a majority of the nine members disagree with Kuroda’s view that the BoJ’s QQE program is sufficient to get 2% inflation, and most conclude it cannot be done without government steps to raise Japan’s growth potential, citing unnamed sources. USDJPY is broadly unchanged today. Elsewhere Indonesia remains a focus with official election results to be announced later today. IDR continues to rally and is a further 0.3% stronger today while Indonesian USD sovereign paper is trading stronger. </p> <p>As we noted in last Friday’s EMR, one corner of the fixed income market worth watching closely is US high yield. The Fedchair has warned repeatedly that she sees worrying signs in the HY market and last week’s flow data from Lipper suggested that perhaps US retail investors are beginning to take heed of those warnings. According to Lipper, retail-cash outflows from HY funds in the week ended July 16 were the single largest one-week redemption in 11 months. The latest EPFR data also confirmed the same, with their data showing that retail investors’ redemptions from US HY funds hit 57 week highs for the week ending July 16th. ETFs were the major contributing factor to that week’s outflows and yesterday we saw the major US high yield ETFs resume their downward moves in price. The iShares iBoxx High Yield ETF closed 0.17% lower (its 9th down day in the last 12 sessions). In addition, the ETF’s 10-day average premium to NAV is now in negative territory (i.e. trading at a discount to NAV), which last occurred last summer. So certainly some evidence of retail selling of the HY asset class. Something to watch over the next few weeks.</p> <p>On a separate but somewhat related theme, the US Securities and Exchange Commission is expected to vote tomorrow on a plan that may require some money market funds to float the value of their fund’s shares, rather than sticking to the norm of a fixed $1 per share. If the five-member commission on July 23 votes for the plan, institutional money market funds would float the value of their fund’s share price, thus creating a potentially sensitive situation where these perceived low-risk funds could “break the buck”, i.e. trade lower than $1/share. The SEC is also considering the introduction of withdrawal restrictions and exit fees on these funds. Similar to the HY situation described above, in a world accustomed to central bank liquidity, it’s difficult to understand how markets will behave if flows go the other way and perhaps the SEC’s proposals to introduce “gates” on redemptions is a reflection of that unknown. </p> <p>Today’s calendar looks more interesting than that of the last 24 hours. The EU foreign ministers’ meeting starts at 8:30am London time this morning. Ahead of that we have some European corporate earnings with Credit Suisse and Norsk Hydro’s results. CS is expected to report a negative headline earnings number following recent settlements with US regulators, but as is usually the case of late; markets will be more interested in the underlying earnings. Today’s US earnings calendar today features results from a number of megacaps including the likes of McDonalds, Coca-cola Co, Verizon (before the open) and Apple and Microsoft (after-market). A major focus today is on US CPI. Consensus is +2.1% YoY and +2.0% in headline and core respectively. There is also existing home sales today. Both pieces of data have the capacity to move treasury markets. Hungary’s central bank also holds its rate meeting today.</p> http://www.zerohedge.com/news/2014-07-22/stocks-desperate-put-ukraine-rearview-mirror-more-russian-sanctions-loom#comments Apple Barclays Copper CPI Credit Suisse Crude Crude Oil Eastern Europe Equity Markets fixed Global Economy headlines High Yield Hong Kong Israel Japan Jim Reid McDonalds Mexico Middle East Money Supply Netherlands Nikkei NYMEX Obamacare Precious Metals President Obama Price Action RANSquawk Reality Reuters Richmond Fed Securities and Exchange Commission Ukraine Verizon Tue, 22 Jul 2014 11:03:17 +0000 Tyler Durden 491505 at http://www.zerohedge.com Bank Of England Leads Push For Deposit Confiscation - Japan, China, Russia Against Bail-Ins http://www.zerohedge.com/news/2014-07-22/bank-england-leads-push-deposit-confiscation-japan-china-russia-against-bail-ins <p style="line-height: 1.2999999046325683; margin-top: 3pt; margin-bottom: 8pt;" 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;">Bank of England officials led by Mark Carney, the Bank of England governor, are attempting to bridge sharp differences among leading G20 countries as they prepare a landmark set of proposals aimed at tackling the problem of “too big to fail” banks according to the Financial Times today.</span></p> <p style="line-height: 1.2999999046325683; margin-top: 3pt; margin-bottom: 8pt;" 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;"><img src="http://www.zerohedge.com/sites/default/files/images/user44273/imageroot/2014/02/Bail%20In%20Infographic%20International%20Edition.JPG" style="color: #000000; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 1em; line-height: 1.3em;" /></span></p> <p>Talks under the auspices of the global Financial Stability Board (FSB) over the summer are approaching a key stage as officials aim to clinch an agreement on bail-ins and the bailing in of creditors including depositors of banks.</p> <p style="line-height: 1.2999999046325683; margin-top: 3pt; margin-bottom: 8pt;" 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;">Finance officials are hoping to pave the way for proposals to be tabled at the G20 leaders meeting at the Brisbane summit in November.</span></p> <p style="line-height: 1.2999999046325683; margin-top: 3pt; margin-bottom: 8pt;" 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;">The issue is of major consequence to globally systemic lenders such as Citigroup, Barclays and BNP Paribas, as some will have to issue billions of dollars of fresh bonds earmarked to carry losses.</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;"><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;">The issue is of major consequence also to depositors who could see their savings confiscated as happened in Cyprus.</span></p> <p style="line-height: 1.2999999046325683; margin-top: 3pt; margin-bottom: 8pt;" 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;">The complexity of the topic and differences between countries’ legal regimes and corporate structures are raising questions over how detailed any framework will be.</span></p> <p style="line-height: 1.2999999046325683; margin-top: 3pt; margin-bottom: 8pt;" 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;">Japan is one of the countries with problems with bail-in plans amid concerns that they are not easily compatible with the structure of its banking system. Its banks are heavily deposit-funded, and officials are uncomfortable about the idea of bail-ins.</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;"><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;">Japanese banks are already vulnerable and bail-ins could hurt consumer sentiment in the already struggling Japanese economy. Concerns in Tokyo are said to be sufficiently profound for it to push its case right up to the summit itself. </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;"><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;">China is also sceptical about the notion of private sector bail-ins given its banks are state-owned. “There are some very entrenched positions,” one official told the </span><a href="http://www.ft.com/intl/cms/s/0/3f2d6f04-0e9f-11e4-ae0e-00144feabdc0.html#axzz385WqhB1z" style="text-decoration: none;"><span style="font-size: 15px; font-family: Calibri; color: #1155cc; background-color: #ffffff; font-weight: normal; font-style: normal; font-variant: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">FT</span></a><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></p> <p style="line-height: 1.2999999046325683; margin-top: 3pt; margin-bottom: 8pt;" 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;">Russia is likely to oppose the coming bail-in regime as well as many other large creditor nations.</span></p> <p><span id="docs-internal-guid-1ed0323e-5d34-ecd1-42ec-dfd9d912e1d9"><span style="font-size: 15px; font-family: Calibri; color: #222222; vertical-align: baseline; white-space: pre-wrap;">Mr Carney, who also chairs the FSB, said in March he wanted to “break the back” of the too big to fail issue this year. He said regulators sought by Brisbane to have cracked two major issues – on the loss &nbsp;absorbing capacity that big banks have to hold and on contractual provisions in derivatives contracts.</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: #222222; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #222222; vertical-align: baseline; white-space: pre-wrap;">Bail-ins are coming to banks in the western world with consequences for depositors.</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: #222222; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><span style="font-size: 15px; font-family: Calibri; color: #222222; vertical-align: baseline; white-space: pre-wrap;">Must read guide to and research on deposit confiscation and banks that are vulnerable to deposit confiscation can be read here:</span><span style="font-size: 15px; font-family: Calibri; color: #222222; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span><a href="http://info.goldcore.com/what-savers-and-depositors-need-to-do-to-protect-their-savings-and-deposits-from-bank-bail-ins"><span style="font-size: 15px; font-family: Calibri; color: #0000ff; vertical-align: baseline; white-space: pre-wrap;">Protecting Your Savings In The Coming Bail-In Era</span><span style="font-size: 15px; font-family: Calibri; color: #222222; vertical-align: baseline; white-space: pre-wrap;"><br class="kix-line-break" /></span></a></span></p> http://www.zerohedge.com/news/2014-07-22/bank-england-leads-push-deposit-confiscation-japan-china-russia-against-bail-ins#comments Bank of England Barclays China Citigroup Consumer Sentiment Creditors Fail Japan Too Big To Fail Tue, 22 Jul 2014 08:38:52 +0000 GoldCore 491503 at http://www.zerohedge.com Russia Says Has Photos Of Ukraine Deploying BUK Missiles In East, Radar Proof Of Warplanes In MH17 Vicinity http://www.zerohedge.com/news/2014-07-21/russia-says-has-photos-ukraine-deploying-buk-missiles-east-rader-proof-warplanes-mh1 <p>Ukraine hasn’t said how it immediately knew rebels downed Malaysian plane, notes the Russian Foreign Ministry, as it unveils 10 awkward questions for Ukraine (and perhaps the US 'snap judgment') to answer about the MH17 disaster. However, what is perhaps more concerning for the hordes of finger-pointers is that:</p> <ul> <li><strong>RUSSIA HAS <span style="text-decoration: underline;">IMAGES OF UKRAINE DEPLOYING BUK ROCKETS IN EAST</span>: IFX</strong></li> <li><strong>RUSSIA: <span style="text-decoration: underline;">UKRAINE MOVED BUK NEAR REBELS IN DONETSK JULY 17</span>: IFX</strong></li> <li><strong>RUSSIA DETECTED <span style="text-decoration: underline;">UKRAINIAN FIGHTER JET PICK UP SPEED TOWARD MH17</span></strong></li> </ul> <p>Obviously, if there is proof that this is so, aside from CIA-created YouTube clips, these would deal another unpleasant blow to US foreign policy. </p> <p>The Russian defense ministry during its press conference which concluded minutes ago:</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/Russian%20defense%20ministry%20screen%20grab.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/Russian%20defense%20ministry%20screen%20grab_0.jpg" width="555" height="235" /></a></p> <p>&nbsp;</p> <p>Here is the full clip of the Russian ministry releasing its own forensic analysis of what happened to flight MH17 (with English translation).</p> <p><iframe src="//www.youtube.com/embed/KSpeo5RcQQo" width="560" height="315" frameborder="0"></iframe></p> <p>&nbsp;</p> <p>Russia wants to know why Ukraine moved its BUK missiles systems the day of the MH17 crash:</p> <ul> <li><strong>RUSSIAN GENERAL STAFF HAS SPACE IMAGES OF SECTORS OF UKRAINIAN FORCES' POSITIONS IN SOUTHEASTERN UKRAINE, INCLUDING BUK MISSILE LUNCH SITES 8 KILOMETERS FROM LUHANSK - RUSSIAN DEFENSE MINISTRY - interfax</strong></li> </ul> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The day the Malaysian airliner crashed, the Ukrainian forces deployed an air defense group of three or four Buk-M1 missile batteries near Donetsk, Lt. Gen. Andrei Kartapolov, head of the Russian General Staff's Main Operations Department, told reporters on Monday.</p> <p>&nbsp;</p> <p><strong>"These surface-to-air systems are capable of hitting targets at a distance of up to 35 kilometers at an altitude of 22 kilometers. For what purpose and against whom were these missile systems deployed? As is known, the militia has no aviation,"</strong> he said.</p> </blockquote> <p>Russia has the flight paths of the Ukrainian fighters and MH17. Furthermore, it is asking the same question we asked last Thurday: </p> <ul> <li><strong>RUSSIA SAYS MH17 DIVERGED 14 KM FROM FLIGHT PATH NEAR DONETSK</strong></li> </ul> <p>And wants to know why. The image (as seen in the presentation above) allegedly shows Ukraine fighter jets near MH17:</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/Russia%20press%20conference%20screengrab.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/Russia%20press%20conference%20screengrab_0.jpg" width="563" height="316" /></a></p> <p>Here is a screengrab of a Su-25 fighter jet detected close to MH17 before crash.<a href="http://rt.com/news/174412-malaysia-plane-russia-ukraine/"></a></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/Su%2025%20vs%20MH%2017.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/Su%2025%20vs%20MH%2017.png" width="562" height="235" /></a></p> <p><a href="http://rt.com/news/174412-malaysia-plane-russia-ukraine/">As RT reports,</a></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>“A Ukraine Air Force military jet was detected gaining height, it’s distance from the Malaysian Boeing was 3 to 5km,” </strong>said the head of the Main Operations Directorate of the HQ of Russia’s military forces, Lieutenant-General Andrey Kartopolov speaking at a media conference in Moscow on Monday.</p> <p>&nbsp;</p> <p><strong>“[We] would like to get an explanation as to why the military jet was flying along a civil aviation corridor at almost the same time and at the same level as a passenger plane,” </strong>he stated.</p> <p>&nbsp;</p> <p>“The SU-25 fighter jet can gain an altitude of 10km, according to its specification,” he added. “It’s equipped with air-to-air R-60 missiles that can hit a target at a distance up to 12km, up to 5km for sure.”</p> <p>&nbsp;</p> <p><strong>The presence of the Ukrainian military jet can be confirmed by video shots made by the Rostov monitoring center, Kartopolov stated.</strong></p> </blockquote> <p>And asks for US proof of their accusations:</p> <ul> <li><strong>RUSSIA SAYS U.S. SATELLITE FLEW OVER MH17 AT TIME IT WAS DOWNED...</strong> which would provide all the proof needed to show who is responsible&nbsp; - so why hasn't the US explained this or shown it?<strong>&nbsp;</strong></li> <li><strong>RUSSIA ASKS U.S. FOR EVIDENCE ROCKET FIRED FROM REBEL-HELD AREA</strong></li> <li><strong>RUSSIA: NO U.S. PROOF THAT MISSILE FIRED FROM REBEL-HELD AREA</strong></li> <li><strong>DEFENCE MINISTRY SAYS RUSSIA DID NOT DELIVER ANY SA-11 BUK MISSILE SYSTEMS TO SEPARATISTS IN EASTERN UKRAINE "OR ANY OTHER WEAPONS"</strong></li> </ul> <p>And went on to rebuke all the Twitter photos created by Maidan to 'prove' the BUKs were moving in Russian hands.</p> <p>Additionally, as Russia noted using what appears to be legitimate photographic evidence (something the west has so far failed to provide in any capacity) MH17 crashed within the operating zone of the Ukrainian army’s self-propelled, medium-range surface-to-air ‘Buk’ missile systems, the Russian general said.</p> <p><em>“We have space images of certain places where the Ukraine’s air defense was located in the southeast of the country,” Kartapolov noted. </em></p> <p>The first three shots that were shown by the general are dated July 14. The images show Buk missile launch systems in about 8km northwest of the city of Lugansk – a TELAR and two TELs, according to the military official. </p> <p>Another image shows a radar station near Donetsk.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.11.30.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.11.30_0.png" width="600" height="375" /></a></p> <p><em>Radar stations of the air defense in Donetsk Region, 5km north of Donetsk city, on July 14, 2014.Photo courtesy of the Russian Defense MinistryRadar stations of the air defense in Donetsk Region, 5km north of Donetsk city, on July 14, 2014.Photo courtesy of the Russian Defense Ministry</em></p> <p>&nbsp;</p> <p>While the third picture shows the location of the air defense systems near Donetsk, he explained. In particular, one can clearly see a TELAR launcher and about 60 military and auxiliary vehicles, tents for vehicles and other structures, he elaborated.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.11.52.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.11.52_0.png" width="600" height="378" /></a></p> <p><em>Buk missile defense units in Donetsk Region, 5km north of Donetsk city, on July 14, 2014.Photo courtesy of the Russian Defense MinistryBuk missile defense units in Donetsk Region, 5km north of Donetsk city, on July 14, 2014.Photo courtesy of the Russian Defense Ministry</em></p> <p>&nbsp;</p> <p><em>“Images from this area were also made on July 17. One should notice that the missile launcher is absent [from the scene]. Image number five shows the Buk missile system in the morning of the same day in the area of settlement Zaroschinskoe – 50km south of Donetsk and 8km south of Shakhtyorsk," the Kartapolov said.</em></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.12.16.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.12.16_0.png" width="600" height="377" /></a></p> <p><em>No Buk missile defense units in Donetsk Region, 5km north of Donetsk city, on July 17, 2014.Photo courtesy of the Russian Defense MinistryNo Buk missile defense units in Donetsk Region, 5km north of Donetsk city, on July 17, 2014.Photo courtesy of the Russian Defense Ministry</em></p> <p><em><br /></em></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.47.57.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/snimok_ekrana_2014-07-21_v_18.47.57_0.png" width="600" height="355" /></a></p> <p><em>Buk missile defense units in Zaroschinskoe, 50km south of Donetsk city and 8km south of Shakhtyorsk, on July 17, 2014.Photo courtesy of the Russian Defense MinistryBuk missile defense units in Zaroschinskoe, 50km south of Donetsk city and 8km south of Shakhtyorsk, on July 17, 2014.Photo courtesy of the Russian Defense Ministry</em></p> <p>The question that has to be answered is why the missile system appeared in the area controlled by the local militia forces shortly before the catastrophe, he stated. </p> <p>* * *</p> <p>Summing it all up, the Russian Ministry of Foreign Affairs, <strong><a href="http://www.mid.ru/bdomp/brp_4.nsf/sps/26477D378C0E55A444257D1C00442BF0">has 10 questions for Ukraine </a></strong><em>(google translated)</em><strong><a href="http://www.mid.ru/bdomp/brp_4.nsf/sps/26477D378C0E55A444257D1C00442BF0"><br /></a></strong></p> <p>The global public expects a speedy and independent investigation into the causes of the disaster Malaysian aircraft in the airspace of Ukraine.</p> <p>In order to conduct an objective investigation of possible leadership of the Ministry of Defense of the Russian Federation has ased ten questions to the Ukrainian side.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>1. <strong>Ukrainian authorities immediately identified the militia as the perpetrators of the tragedy. What is the basis of such findings?</strong></p> <p>&nbsp;</p> <p>2. <span style="text-decoration: underline;"><strong>Could official Kiev to report all the details of using [BUKs] in a war zone? Most importantly - why these systems are deployed there, as the militia no planes?</strong></span></p> <p>&nbsp;</p> <p>3. What are the causes of inactivity of Ukrainian authorities on the formation of an international commission? When such a committee will work?</p> <p>&nbsp;</p> <p>4. Are the armed forces of Ukraine international experts to present papers on accounting for missiles, air-to-air and ground-to-air ammo and anti-aircraft missiles?</p> <p>&nbsp;</p> <p>5. Whether these funds objective control on the movement of the Ukrainian Air Force aircraft on the day of the tragedy brought international commission?</p> <p>&nbsp;</p> <p>6. <span style="text-decoration: underline;"><strong>Why Ukrainian air traffic controllers allowed deviation of the route of the aircraft to the north side of the "anti-terrorist operation zone"?</strong></span></p> <p>&nbsp;</p> <p>7. Why was not completely closed to civilian aircraft airspace over the combat zone, especially because in this area there was no solid field of radar navigation?</p> <p>&nbsp;</p> <p>8. <span style="text-decoration: underline;"><strong>Could official Kiev to comment on reports in the net, ostensibly on behalf of the Spanish air traffic controllers working in Ukraine, which shot down over the territory of Ukraine "Boeing" was accompanied by two Ukrainian military aircraft?</strong></span></p> <p>&nbsp;</p> <p>9. Why Security Service of Ukraine has begun without international representatives work with recordings of talks with Ukrainian crew dispatchers "Boeing" and Ukrainian radar data?</p> <p>&nbsp;</p> <p>10. <span style="text-decoration: underline;"><strong>How were the lessons from previous similar disasters Russian Tu-154 in 2001 in the Black Sea? Then the leaders of Ukraine until the last minute denied any involvement of the Armed Forces of the country to the tragedy until irrefutable evidence showed no guilt official Kiev.</strong></span></p> </blockquote> <p>Unfortunately, there has been no response by the Ukraine side to these questions so far. We expect that there will be some answers.</p> <p>*&nbsp; *&nbsp; *</p> <p>Needless to say, this places Ukraine and The US (as main protagonist of "finger pointer") in an awkward position as finally someone, somewhere will have to present some actual facts instead of merely continuing the "emotional appeals" propaganda. </p> <p>We expect many of these questions to be answered once the contents of flight MH17's black box are revealed and/or when Ukraine finally releases an undoctored version of the Air Traffic control recording with the doomed flight.</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="741" height="416" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/Russia%20press%20conference%20screengrab.jpg?1405947962" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-21/russia-says-has-photos-ukraine-deploying-buk-missiles-east-rader-proof-warplanes-mh1#comments Boeing Google Twitter Twitter Ukraine Tue, 22 Jul 2014 02:45:42 +0000 Tyler Durden 491469 at http://www.zerohedge.com The Ambitious Plan To Break California Into 6 States – A Model For The Future? http://www.zerohedge.com/news/2014-07-21/ambitious-plan-break-california-6-states-%E2%80%93-model-future <p><em>Submitted by <a href="http://libertyblitzkrieg.com/2014/07/21/the-ambitious-plan-to-break-california-into-6-states-a-model-for-the-future/">Michael Krieger of Liberty Blitzkrieg blog</a>,</em></p> <p>The more I&rsquo;ve thought about potential solutions to the gigantic mess we have found ourselves in as a species, the more I have come to believe we need to break apart into a vast multitude of city-states.<strong> The revolutionary&nbsp;concept of America in the first place was this&nbsp;idea of &ldquo;self-governance,&rdquo; something we do not posses an iota of in this day and age. </strong>As was noted recently in an <strong><a href="http://libertyblitzkrieg.com/2014/04/16/new-report-from-princeton-and-northwestern-proves-it-the-u-s-is-an-oligarchy/">academic paper published by Princeton and Northwestern</a></strong>, these United States have mutated into nothing short of an oligarchy. In fact, the study demonstrated that the will of the people has essentially zero impact on legislation whatsoever.</p> <p><strong>In centuries prior, the idea of &ldquo;representative-democracy&rdquo; in which people elect people to represent their interests in a far off&nbsp;capital seemed like a reasonable solution to a very real problem.</strong> Information took a very long time to get from one place to another, so you had to trust someone else to essentially negotiate for you on issues of national significance. Moreover, in such a disconnected world, centralization was not only more efficient, it seemed like the only way. As such, things became highly centralized, so much so that things have&nbsp;now morphed into&nbsp;a global oligarchy that wields almost total power. Meanwhile, the billions of plebs have no say whatsoever in the affairs that govern their lives; including whether they will be financially secure, posses any&nbsp;civil liberties at all or end up in jail for a wide litany of non-violent &ldquo;crimes.&rdquo;</p> <p><strong>With the incredible tools we now possess, thanks primarily to the Internet, we no longer need centralization of government. </strong>Nor do we really need representatives to vote for us on the issues that most greatly affect out lives. As any American understands, the diversity of cultural, economic, and political sentiments vary greatly throughout the land. It&rsquo;s not just the obvious ones, such as the differences between&nbsp;&ldquo;northerners&rdquo; and &ldquo;southerners,&rdquo; but wide discrepancies exists within states themselves. For example, Austin is nothing like much of the rest of Texas, and the Denver/Boulder area where I live is very distinct from much of the rest of Colorado. The examples&nbsp;are simply too many to list, but I am of the belief that people are capable of, and should be&nbsp;free&nbsp;to, decide&nbsp;the most important things that affect their lives at a&nbsp;local level (with the exception of obvious things such as violence or aggression toward one another).</p> <p><strong>The founding fathers&rsquo; original idea of many &ldquo;United States&rdquo; allowed for different ideals to be expressed in a wide variety of ways, and is in my opinion one of the most advantageous attributes of our&nbsp;nation. But why stop there? Why not allow different areas and municipalities break off even further into far more autonomous type structures than we have today?</strong></p> <p>Of course many people will answer, what about slavery? The truth of the matter is that this abomination in the United States seemingly had to be resolved through a bloody conflict given the economic interests in the south at the time. The founders decided one war &nbsp;was enough, and let this horrible practice be tackled almost a hundred years later through violent conflict. I hope that we have advanced enough as a species that we can come to a global consensus that certain things are illegal everywhere. Slavery, murder, rape, etc. Other than these (and other) obvious evils we can all agree on, decentralized legislation seems to make sense to me in this day and age. While I strongly disagree with &ldquo;global government&rdquo; a global consensus on certain things we can all agree upon as reprehensible anywhere on earth seems completely reasonable.</p> <p>With that in mind, the man who recently purchased the entire 30,000 Silk Road Bitcoins from the feds has proposed to break California into six separate parts. The measure has already collected <strong>&ldquo;</strong><em><strong>far more than the 800,000 signatures&rdquo;</strong> </em>needed to to get it on the state ballot.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140721_6.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140721_6.jpg" style="width: 448px; height: 477px;" /></a></p> <p><a href="http://www.wired.com/2014/07/silicon-valleys-plan-to-split-california-into-6-states-just-might-work/?mbid=social_twitter">From <em>Wired</em></a>:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>Like Hollywood or Manhattan, Silicon Valley occupies a singular place on the American cultural and economic landscape. Unlike those other locales, however, the Valley&rsquo;s more idiosyncratic political leanings have led to&nbsp;<a href="http://www.wired.com/2013/12/balaji-srinivasan-joins-a16z/">murmurings</a>&nbsp;of secession more typical of&nbsp;<a href="http://www.jeffersonstate.com/">rural hinterlands</a>&nbsp;that already feel cut off through sheer physical isolation. <strong>That chatter has culminated in a&nbsp;<a href="http://www.sixcalifornias.com/">measure</a>&nbsp;that appears&nbsp;<a href="http://www.sfgate.com/politics/article/Six-Californias-backers-say-it-s-heading-for-5621377.php">headed for the statewide ballot</a>&nbsp;to split California into six separate states, of which Silicon Valley would be one.</strong></em></p> <p>&nbsp;</p> <p><em>While ostensibly a plan to make the entire state of 38 million people more governable, the six-state initiative is being led and funded by a member of the Silicon Valley elite, many of whom would no doubt welcome the increased political clout that would likely come from carving out their own statehood. In the hands of most, the six-state initiative would look like a pure stunt. But with Silicon Valley behind it, this effort&rsquo;s chances at the ballot box can&rsquo;t be dismissed out of hand. <strong>Unlike most other would-be revolutionaries, Silicon Valley has a long record of taking ideas that sound outlandish at the time&mdash;affordable computers in every home, private rocket ships&mdash;and managing to make them real.</strong> It also has a seemingly endless stream of money that, combined with heavy doses of ingenuity and shamelessness, give its goofball ideas the fuel they need to take off.</em></p> <p>&nbsp;</p> <p><em><strong>Leading the six-state push is Tim Draper,</strong> a wealthy third-generation venture capitalist known for his theatrics. He hosts the superhero-themed&nbsp;<a href="http://nymag.com/news/features/draper-university-silicon-valley-2013-8/">Draper University of Heroes</a>, a kind of motivational cram session for would-be startup entrepreneurs, and once&nbsp;<a href="http://www.zdnet.com/media-hungry-silicon-valley-vcs-7000001430/">wore a Captain America costume</a>&nbsp;himself on a magazine cover. <strong>Last month, he&nbsp;<a href="http://www.wired.com/2014/07/vaurum/">bought nearly 30,000 bitcoins</a>&nbsp;auctioned off by the U.S. Marshals Service after authorities had seized them from online black market Silk Road. In short, he&rsquo;s exactly the kind of guy with the time, money, and temperament to push a wacky-sounding ballot measure.</strong></em></p> <p>&nbsp;</p> <p><em>&ldquo;Our gift to California is this&mdash;it&rsquo;s one of opportunity and choice,&rdquo;&nbsp;<a href="http://www.sfgate.com/news/article/6-Californias-plan-is-no-stunt-Riskmaster-5264104.php">Draper said</a>&nbsp;at a press conference yesterday where he announced<strong> the campaign had collected far more than 800,000 signatures needed to get the measure on the ballot. &ldquo;</strong>We&rsquo;re saying, make one failing government into six great states.&rdquo;</em></p> <p>&nbsp;</p> <p><em><strong>The campaign in favor of the measure argue that six states will mean six state governments more responsive to local concerns</strong>, rather than the unwieldy process of orchestrating the state&rsquo;s 158,000 square miles entirely from Sacramento.</em></p> <p>&nbsp;</p> <p><em>With the six-state proposal, the Californian Ideology appears to be seeking out its final, fullest, most ironic realization by underwriting Silicon Valley&rsquo;s emancipation from California itself.</em></p> <p>&nbsp;</p> <p><em>And why wouldn&rsquo;t Silicon Valley seek to be free? Through the lens of its own sensibility, at least, California looks like the worst kind of incumbent, an ancient and inefficient institution mired in old ways of doing business, a monopolist that holds onto power through manipulation, not innovation. To six-state supporters, holding onto the idea of a single California represents, at best, an irrational sentimentality, a commitment to the past grounded in lazy logic and unexamined assumptions.<strong> Breaking up California is exactly the kind of &ldquo;disruption&rdquo; that titillates the venture capitalist imagination.</strong> In the process, the new state of Silicon Valley&mdash;which would stretch from San Francisco to Monterey&ndash;would also, conveniently, separate its great and greatly concentrated wealth from the poorer parts of the state.</em></p> <p>&nbsp;</p> <p><em>The Valley&rsquo;s &ldquo;hacker way&rdquo; has so far proven a clumsy fit for the strategic complexity of the political process, which relies more on realism than idealism. <strong>Before California would officially break up,&nbsp;<a href="http://www.annenbergclassroom.org/pages.aspx?name=article-iv-section-3&amp;AspxAutoDetectCookieSupport=1">per the U.S. Constitution</a>, the existing state legislature would still have to sign off, which it&rsquo;s unlikely to do for a host of reasons, not least being the tax revenue lost to Silicon Valley seceding.</strong> Congress would also have to approve what would amount to the dilution of its own power by granting California twelve senators instead of the current two.</em></p> </blockquote> <p>At this point, I&rsquo;d like to make it clear<strong> I don&rsquo;t think this will become a reality in the near-term</strong>. In fact, it is likely that decentralization will first occur in the economic and technological areas of human society way before it happens on the political level. The reasons for this should be obvious. <em>&nbsp;</em></p> <p>We are already seeing decentralization take over in all sorts of economic areas. Information flow in general and alternative media specifically, currency (Bitcoin), transportation (Uber, Lyft), and manufacturing (3D-printing).&nbsp;When the political process fully implodes in the West, we&rsquo;ll look to decentralized successes in other areas and apply them to politics.</p> <p><u><strong>I believe the current overly centralized paradigm parasitically engulfing the planet will experience a series of spectacular collapses in the years ahead that will make 2008 look like practice. As&nbsp;the centralized beast episodically&nbsp;implodes upon itself, we will have a historic chance to remake our world in a new way that will better serve humanity. That new paradigm will consist of freedom through decentralization, and I can&rsquo;t wait to see it.</strong></u></p> <p><u><strong>In fact, it&rsquo;s already started.</strong></u></p> <p>For recent articles on our generation&rsquo;s most significant battle; Centralization vs. Decentralization, check&nbsp;out the following articles:</p> <p><em><strong><a href="http://libertyblitzkrieg.com/2014/06/25/ex-cia-officer-claims-that-open-source-revolution-is-about-to-overthrow-global-oligarchy/" rel="bookmark" title="Permanent Link to Ex-CIA Officer Claims that Open Source Revolution is About to Overthrow Global Oligarchy">Ex-CIA Officer Claims that Open Source Revolution is About to Overthrow Global Oligarchy</a></strong></em></p> <p><em><strong><a href="http://libertyblitzkrieg.com/2014/06/22/networks-vs-hierarchies-which-will-win-niall-furguson-weighs-in/">Networks vs. Hierarchies: Which Will Win? Niall Furguson Weighs In</a></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="448" height="477" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140721_6.jpg?1405982066" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-21/ambitious-plan-break-california-6-states-%E2%80%93-model-future#comments Bitcoin ETC Reality Tax Revenue Tue, 22 Jul 2014 02:35:48 +0000 Tyler Durden 491502 at http://www.zerohedge.com The New Scariest Chart In America http://www.zerohedge.com/news/2014-07-21/new-scariest-chart-america <p>For the last few years, the 'scariest' chart for Europeans has been the unending surge in youth unemployment. However, amid all the sound and fury of mainstream US media discussions of the 'recovery' in America and the President's employment track record, <a href="http://trueeconomics.blogspot.com/2014/07/2072014-new-scariest-chart-in-economics.html">Constantin Gurdgiev</a> notes another <strong>'scariest chart of the US recovery' that remains in full 'crisis mode'</strong>...</p> <p>&nbsp;</p> <p><span style="text-decoration: underline;"><strong>The Duration of Unemployment In The US...</strong></span></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140721_oops1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140721_oops1_0.jpg" width="600" height="369" /></a></p> <p>&nbsp;</p> <p><a href="http://trueeconomics.blogspot.com/2014/07/2072014-new-scariest-chart-in-economics.html"><em>h/t True Economics blog</em></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="1034" height="636" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140721_oops1.jpg?1405955226" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-21/new-scariest-chart-america#comments Unemployment Tue, 22 Jul 2014 02:29:45 +0000 Tyler Durden 491487 at http://www.zerohedge.com With ISIS Now Controlling 35% Of Syria And Most Of Its Oil Fields, Iraq Issues An Ultimatum To The US http://www.zerohedge.com/news/2014-07-21/isis-now-controlling-35-syria-and-most-its-oil-fields-iraq-issues-ultimatum-us <p>Remember when the extremist Al Qaeda spinoff ISIS (or, now known as Islamic State following the formation of its own caliphate in the middle of Iraq and Syria) was still a "thing" two weeks ago? In this case <em>out of sight does not mean out of mind</em>, and while the world has found a new story line to follow in the middle east with the war between Israel and Gaza, now in its 14th day - whenever it is not busy responding to emotional appeals about the MH 17 crash - ISIS has continued to expand and as <a href="http://english.alarabiya.net/en/News/middle-east/2014/07/19/270-Syrian-fighters-killed-in-biggest-ISIS-operation-.html">Al Arabiya reports </a>it <strong>"is now in control of 35 percent of the Syrian territory following a string of victories, the London-based Syrian Observatory for Human Rights said Friday.</strong>"</p> <p>What's more troubling is that <strong>ISIS holdings now include nearly all of Syria’s oil and gas fields</strong>. While these are hardly significant on a global scale, they certainly allow ISIS to preserve its self-sustaining and self-funding status.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>One of the latest gains of the self-proclaimed “caliphate” was the seizure of the country’s biggest oil fields, in Deir el-Zour in eastern Syria, earlier in the week.</strong></p> <p>&nbsp;</p> <p>Deir Ezzor borders Homs province as well as Iraq, where the jihadist group has spearheaded a major Sunni militant offensive that has seen large swathes of territory fall out of the Baghdad government’s control.</p> <p>&nbsp;</p> <p><strong>Meanwhile, jihadists have killed 270 Syrian regime fighters, civilian security guards and employees since seizing a gas field in Homs province</strong>, the Observatory added, according to Agence France-Presse.</p> <p>&nbsp;</p> <p>The London-based group described Thursday’s takeover of the Shaar field as “the biggest” anti-regime operation by the ISIS since it emerged in the Syrian conflict a year ago.</p> <p>&nbsp;</p> <p>“Eleven of the dead were civilian employees, while the rest were security guards and National Defence Forces members,” he added.</p> <p>&nbsp;</p> <p>A counter-attack by Bashar al-Assad’s forces on Friday left 40 ISIS militants dead, Abdel Rahman said.</p> <p>&nbsp;</p> <p>The Syrian government did not officially confirm the deaths, but supporters of Assad posted photographs of the dead, and described their killings as a “massacre”.</p> </blockquote> <p>Ironically, it only took ISIS a little over a month to take over Syria's energy infrastructure and cripple the Assad regime, something the US forces were unable to do last summer.&nbsp; Perhaps it is time for the Pentagon to retain them, i.e., al-Qaeda 2.0, as mercenaries?</p> <p>As for ISIS <em><strong>in Iraq</strong></em>, things continue to escalate and as the <a href="http://3.bp.blogspot.com/-yHbq4kauDjI/U8xMvD3MZDI/AAAAAAAABag/91d8mSEzRyA/s1600/2014-07-20+Situation+Report.png">Institute for the Study of War reports</a>, ISIS has placed IEDs in places such as Mada'in, Yusifiyah, and Mahmudiyah in the southern belts of Baghdad. Iraqi Shi'a militia executions inside Baghdad may increase in response to the VBIED wave in Shi'a neighborhoods on July 19. The deployment of volunteers from southern Iraq to Kirkuk province signifies the spread of their role to protect shrines in areas where ISIS is making advances. The reallocation of Iraqi security forces from Baghdad to Dhuluiya signals the real challenge that ISIS poses there. </p> <p>ISW's conclusion is that ISIS may try to draw the ISF out of Baghdad in advance of more robust attackes there.</p> <p>Visually, here are the latest areas of conflict in Iraq.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/2014-07-%2021%20Control%20Zone%20Map-01.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/2014-07-%2021%20Control%20Zone%20Map-01_0.png" width="659" height="702" /></a></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/ISIS%207.20.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07/ISIS%207.20_0.png" width="600" height="775" /></a></p> <p>Perhaps sensing the fact that the tide of war may be shifting for the worse, Iraq has become increasingly more vocal in demanding US assistance <strong>and a few hours ago went as far as to issue an ultimatum on the US -&nbsp;<em>help us now or we will find another bigger borther</em>, one who will actually help us. </strong></p> <p>Bloomberg reports that earlier today, speaking at the Atlantic Council, the Iraqi Ambassador to U.S. Lukman Faily called for US air strikes warning that Iraqis are skeptical about U.S. intent to support Iraq in its fight against Sunni terrorist groups, <strong>and implicitly threatening that "other countries will step in to fill the vacuum if greater American support isn’t forthcoming</strong>."</p> <p>Faily calls for U.S. air strikes to stop influx of terrorists from Syria, to target “terrorist camps,” and precision air strikes in urban areas “occupied by ISIL terrorists”</p> <p>He also said that Iraq has chosen the U.S. as its preferred strategic partner, has bought &gt;$10b in U.S. military equipment and plans "to buy billions more." </p> <p>"If Iraqis do not believe meaningful U.S. assistance is forthcoming, they will not have enough incentives to adopt political reforms. Now more than ever the United States needs to be careful not to send mixed signals about its intentions. These mixed signals will create vacuum that will be filled by others."</p> <p>Such as Russia?</p> <p>As for Iraq, in the future pick better "<em>preferred strategic partners.</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="628" height="430" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/ISIS%20fighters.jpg?1405967581" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-21/isis-now-controlling-35-syria-and-most-its-oil-fields-iraq-issues-ultimatum-us#comments Iraq Israel Middle East Tue, 22 Jul 2014 02:25:38 +0000 Tyler Durden 491484 at http://www.zerohedge.com Vietnam Says China Backing Down In Oil Rig Dispute http://www.zerohedge.com/news/2014-07-21/vietnam-says-china-backing-down-oil-rig-dispute <p><em>Submitted by <a href="http://oilprice.com/Energy/Energy-General/Vietnam-Says-China-Backing-Down-In-Oil-Rig-Dispute.html">Andy Tully via OilPrice.com</a>,</em></p> <p><strong>A leading Vietnamese military officer said July 16 that China&rsquo;s decision to remove a huge oil rig from waters claimed by both countries shows that it is backing down in a dispute that has raged since May.</strong></p> <p>Maj. Gen. Le Ma Luong told PetroTimes, a Vietnamese news outlet, that China was <a href="http://www.nytimes.com/2014/07/16/world/asia/chinese-oil-rig-near-vietnam-to-be-moved.html">moving the rig</a> because of Vietnam&rsquo;s &ldquo;strong reactions&rdquo; to its presence in the South China Sea near the Paracel Islands. The region is near the Vietnamese coast but Beijing considers it Chinese territory.</p> <p>In the interview, Luong dismissed a suggestion by the Voice of Vietnam, a state run news agency, that <strong>the rig was being moved to protect it from the approaching Typhoon Rammasun</strong>. <strong>The general called that &ldquo;just an excuse.&rdquo;</strong></p> <p>The China National Petroleum Corp. said the operation was ending now that the <strong>rig had found &ldquo;signs of oil and gas.&rdquo; </strong>It said the company would assess the findings before deciding on its next steps.</p> <p>Meanwhile, it said, the rig was being moved to undisputed waters near the Qiongdongnan basin.<br />In Beijing, the Chinese Foreign Ministry said moving the rig should not be interpreted as a retreat from inclement weather or from Vietnam, but simply that it had completed its work of exploring for oil in the area. It also reiterated the assertion that the Paracel Islands are Chinese territory.</p> <p>Still, China may be motivated by a desire to improve relations with neighboring Vietnam, according to Bonnie Glaser, who specializes in Asian affairs at the Center for Strategic and International Affairs, a Washington think tank. <strong>&ldquo;It could be a face-saving way to end the over two-month-long standoff with Vietnam,&rdquo; she said.</strong></p> <p>Beijing <a href="http://oilprice.com/Latest-Energy-News/World-News/Vietnamese-Protests-Against-Chinese-Oil-Rig-Turn-Violent.html">set up the oil rig</a>, the $1 billion Haiyang Shiyou 981, on May 1 in the disputed waters, triggering violent and often deadly demonstrations in Vietnam. There also were daily confrontations at sea between Vietnamese boats that tried to approach the rig and Chinese coast guard vessels sent to protect it.</p> <p>Regardless of why China withdrew the rig, <strong>the move is likely to ease fears harbored by&nbsp;<a href="http://online.wsj.com/articles/asian-nations-fears-of-war-elevated-as-china-flexes-muscle-study-finds-1405361047">arge majorities</a> of Asians that Beijing&rsquo;s overall territorial claims could lead to war,</strong> according to a survey by the Pew Research Center in Washington.</p> <p>The poll was conducted in 11 Asian countries from March &ndash; even before China moved the oil rig off Vietnam&rsquo;s coast &ndash; to June. In the Philippines, 93 percent of respondents feared war, 85 percent in Japan shared that concern, and 84 percent in Vietnam felt the same.</p> <p>Fully 83 percent of those surveyed in South Korea, which enjoys warm commercial relations with China, expressed concern for peace in the region, and that worry was shared by 62 percent of respondents in China itself.</p> <p><strong>All told, Pew reports, majorities in nine of the 11 countries feared military conflict.</strong></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="565" height="390" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140721_viet.jpg?1405974517" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-21/vietnam-says-china-backing-down-oil-rig-dispute#comments China Japan Tue, 22 Jul 2014 02:15:20 +0000 Tyler Durden 491501 at http://www.zerohedge.com Spot The China Liquidity Crisis http://www.zerohedge.com/news/2014-07-21/spot-china-liquidity-crisis <p>Presented with little comment aside to ask, if everything's so hunky-dory over in China then why, on the first day in a while that the PBOC decides not to conduct repo operations (i.e. inject a bucketload of cheap money), does the <strong>7-day repo rate (the cost of borrowing money) spike to 6-month highs</strong>? <em>(Hint: it's a rhetorical question)</em></p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140721_china2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140721_china2_0.jpg" width="600" height="318" /></a></p> <p>&nbsp;</p> <p>Simply put - you can kiss goodbye any hopes of China ceasing its exuberant credit creation... (especially now that the CCFD ponzi scheme has been exposed via Qingdao -and drastically reduced that channel). Reforms are all talk and the bubble will just grow bigger with fewer and fewer attractive outlets for that hot money <a href="http://www.zerohedge.com/news/2014-07-10/did-china-just-crush-us-housing-market">(now that the US real estate transmission channel has been identified and likely closed)... cue real inflation.</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="954" height="505" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140721_china2.jpg?1405994332" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-21/spot-china-liquidity-crisis#comments China Real estate Tue, 22 Jul 2014 02:01:12 +0000 Tyler Durden 491500 at http://www.zerohedge.com