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Hope Of Good News From Moscow Sees Return Of Overnight Futures Ramp

Tyler Durden's picture




 

The Cyprus finance minister Michael Sarris may or may not have submitted his resignation after the president formally declined to accept it, but now that he is back on the saddle he is back to spreading hope, cheer and goodwill. Those wondering why both the EURUSD, and its derivative, US stock futures have surged overnight and retraced all of yesterday's losses and then some, it is not due to any anachronistic events such as "good economic news" (especially since the Spanish PM said Spain will have to cut its economic outlook once again, or rather, as usual), but due to the following phrase uttered by Sarris a few hours ago: "We are hoping for a good outcome, but we cannot really predict" regarding his views on talks with Russia. That's right - the entire overnight ramp is based on the hope of one man, who thinks Russia can be blackmailed through deposit haircuts, into bailing out the tiny island which has now said nein to Europe and bet the ranch on a well-meaning Vladimir Putin. What can possibly go wrong: according to the GETCO algos all alone in levitating stocks, absolutely nothing. What is clear is that Cyprus is fully intent on seeing Europe "blink" whether due to Russia's involvement or just because it thinks (correctly) it has all the leverage as the alternative is a breakdown of the Eurozone.

Needless to say, there was no actual good news out of Russia. From Reuters:

Finance Minister Michael Sarris said he had reached no deal on financing with his Russian counterpart, Anton Siluanov, but talks were continuing.

 

Cypriot officials disclosed that the country's energy minister was also in Moscow, ostensibly for a tourism exhibition. Cyprus has found big gas reserves in its waters adjoining Israel but has yet to develop them.

 

"We had a very honest discussion, we've underscored how difficult the situation is," Sarris told reporters after talks with Siluanov. "We'll now continue our discussion to find the solution by which we hope we will be getting some support.

 

"There were no offers, nothing concrete," he said.

Elsewhere, Nicholas Papadopoulos, a member of Cyprus’s democratic party Diko discussed the parliament’s rejection of a levy on bank deposits with Bloomberg TV, saying Cyprus would propose a new package to the EU. That's great. The only problem is that the math is simple: either a massive haircut on Russians sparing everyone else, or nothing, and if the Russians get whacked, there will be no deal with Russia, while parliament has already made it clear any deposit haircut would not fly. So back to square one even as Frau Merkel reiterated the Shaeuble talking points, saying she regrets the decision by the Cypriot parliament.

However, reality is irrelevant - all that matters to the vacuum tubes is that there is some hope out of Europe, and with no POMO today, the algos are very hopeful that Bernanke will not hint at any more rate cuts today in today's 2 pm FOMC minutes, as he has in the past two times, as that would surely kill any no volume levitation party.

More overnight highlights from Bloomberg:

  • Treasuries fall for first time in four days as yen resumes decline vs U.S. dollar. Fed meeting concludes today; rate decision and eco projections at 2pm in Washington, Bernanke press conference at 2:30pm.
  • Troika officials are in Cyprus discussing further capital controls and the possible extension of a bank holiday through the end of the week, according to a European official who spoke on conditions on anonymity
  • Germany and its euro-area allies maintained pressure on the island’s politicians today to raise a planned EU5.8b via a levy on deposits; Austria finance minister Fekter raised the threat of a ECB funding cutoff while Germany’s Schaeuble said the nation’s “business model is no longer tenable”
  • Russia and Cyprus are continuing loan talks, with Cypriot finance minister Sarris pledging to continue discussions “as long as it takes”
  • BoE’s King was defeated for a second month in a vote to expand stimulus as the majority of policy makers said more bond purchases may erode their credibility and push the pound lower, minutes of the MPC’s March meeting showed
  • GBP/USD rises 0.3% to 1.5138; Chancellor of the Exchequer Osborne presents his 2013 budget at 1:30pm in London
  • U.K. jobless claims fell less than forecast in February while a wider measure of unemployment rose for the first time in a year
  • Japan closed for holiday. Shanghai Composite +2.7%. European equity markets, U.S. index futures higher. Peripheral yields fall, spreads to Germany  narrow  Energy, precious metals rise

The full overnight narrative from DB's Jim Reid:

Cyprus looks set to continue to dominate the headlines in the near term although we do have Bernanke on show later and also the UK budget. As I'm sure you all know by now, the Cypriot Parliament rejected a reworked levy on deposits last night. The revised levy, which included an exemption on deposits below EUR20k, was rejected by 36 votes with 19 abstentions including the President's centreright DISY party abstaining from the vote. So a pretty categoric rejection. The 'no' led to immediate focus on Cyprus’ banking sector as we approach the ECB’s Emergency Liquidity Assistance (ELA) expiry today although our economists believe in practice some leeway for a few days exists. The provision of ELA funding is normally conditional on the receiving banks remaining intrinsically solvent but our economists noted that this condition hardly holds with the prospect of a bank run starting immediately after the expiry of the bank holiday.

After the no vote, the ECB released a vague statement saying that it "reaffirms its commitment to provide liquidity as needed within the existing rules". This helped the S&P500 (-0.24%) and EURUSD (-0.58%) close off the day’s lows. Reports suggest that Cyprus' banks could remain closed until next Tuesday March 26th with capital controls and transaction limits in place when banks eventually open (WSJ, Telegraph). The FT noted that Cyprus’ finance minister arrived in Moscow last night in an 11th hour attempt to request assistance from the Kremlin.

In many ways we're back to square one as the fact that the revised version of the bank levy was rejected by the Cypriot parliament suggests that the "reprofiling" of the levy, which was open to negotiations with the troika, was not the main issue. More likely, it is the very principle of a bank levy - and the adverse consequences it would have on the country's standing as an off-shore centre - which is being overwhelmingly rejected by Cyprus' political circles. It is obviously a setback for the EU, but as our Economists note, reaching a deal on the adjustment program at the first attempt has always been tough since the beginning of the crisis. Rationally they think the Cypriot government and parliament will have to accept the deal, at least the principle of a deposit levy,  even if some sweeteners may have to be found (e.g. on the austerity measures).

But with the deposit levy facing political opposition what are the other fund raising options potentially available to Cyprus? Overnight the ekathimerini reported that Cyprus will attempt to sell the troubled Popular Bank of Cyprus, known as Laiki, and possibly other local lenders. The same article noted that it is likely the Russians will seek some form of compensation for such an investment. A naval port in Cyprus for the Russian fleet and access to the country’s natural gas reserves are among the rewards Moscow might seek. The option of tapping the social security funds’ reserves (amounting to EU5bn) is said to also being considered. The other option being reported is to offer depositors with more than EUR100k a voluntary haircut in return for natural gas-indexed bonds. The NYT also reported that Gazprom may enter the fray with a private bailout plan. Rather than tax deposits, Cyprus could raise money to right its economy by selling Gazprom exploration rights to offshore gas deposits in the Mediterranean Sea. Given that Gazprom is 50.02% owned by the Russian government and with former PM Putin being the current company chairman – such a deal certainly adds geopolitical dimension to the current situation. If raising the EU5.8bn in funds via the deposit levy is the pre-requisite for the EU bailout for Cyprus, then Gazprom seems financially quite capable of mustering a deal of some sort given its current market capitalisation of about EU84bn and a cash balance of c.EUR12bn at the end of September 2012.

So the question is whether the EU will revise its terms, whether the Cypriots find a way of raising the money in an acceptable manner or whether Russia rides to the rescue. The market is still assuming the money will be found somehow and hasn't yet considered the 'nuclear' alternative. A fascinating few days still lie ahead.

While the immediate focus is on the developments in Cyprus, we also have the FOMC statement (6.00pm London time) followed half an hour later by Bernanke’s press conference. For the record, DB’s US economists do not anticipate any major policy changes at today’s meeting - Chairman Bernanke and Vice Chair Yellen have been clear in recent commentary that the improvement in the labour market to date falls far short of what they will need to see before reducing monetary policy accommodation. In particular, Bernanke would like to see further rebound in the employment-population ratio, which has moved only slightly higher (58.6%) from its post-recession low (58.2%). For this reason, they anticipate a continuation of QE through at least mid-year, despite the improving tone in the economic data. In terms of the Fed’s latest economic projections, our economists expect that central tendency projections for 2013 real GDP growth (currently 2.3% to 3.0%) may be modestly upgraded while the year-end unemployment rate range of 7.4% to 7.7% may drift slightly lower.

Across the Atlantic, Chancellor George Osborne will be presenting the UK government budget for the next fiscal year today. News reports have suggested that government ministers have been ordered by the Chancellor to come up with GBP2.5bn of extra spending cuts. The extra cuts, equivalent to about 1%, over the next two years will apply to all departments apart from health, schools and hospitals, although police, defence and local government will also be granted some leniency. The savings are expected to be used to fund housing and other capital projects including a number of growth-oriented infrastructure items.

In addition to laying out the budget, some are expecting the Chancellor to use the opportunity to signal a change in the BoE’s mandate that would allow the central bank to loosen its 2% inflation target.

Turning to Asia, markets have been relatively quiet newsflow wise with Japanese markets closed for the Vernal Equinox public holiday. Chinese equities have posted strong gains overnight led by the Shanghai Composite (+2.5%) and Hang Seng (+0.8%) which is pulling other regional equity markets off the overnight lows. It is a similar story for the S&P500 futures (-0.05%) which has recovered from the overnight lows. In the currency space, the Australian dollar is marginally firmer against the USD. The CDS index roll has been the main focus for the Asian markets overnight and will likely be the main theme for  European and US markets ahead today.

Looking at the rest of the day ahead, we have the BoE minutes from its March meeting which will show how the nine members of the MPC voted with respect to further easing. The UK labour report is scheduled to be released at the same time. The above mentioned UK budget is expected at 12:30pm GMT today. In the Eurozone, Italian President Napolitano is expected to begin consultations with political leaders this morning London time in an effort to form a government. Datawise, the advance consumer confidence reading for March will be the main data point in the Eurozone. In the US the focus will be squarely on the FOMC and Chairman Bernanke’s press conference but expect markets to continue to gyrate around developments in Cyprus for now.

 

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Wed, 03/20/2013 - 07:12 | 3351428 GetZeeGold
GetZeeGold's picture

 

 

In Russia the futures ramp you.

Wed, 03/20/2013 - 07:21 | 3351444 Edward Fiatski
Edward Fiatski's picture

In Soviet Russia you have no future!!

Bad joke is bad, and I should feel bad... Killll meeh.

Wed, 03/20/2013 - 07:26 | 3351461 krispkritter
krispkritter's picture

Velcome to Cyprussia! 

Wed, 03/20/2013 - 07:43 | 3351496 Stoploss
Stoploss's picture

You now have an ECB that is now, just like the FED!!!

Merk says banks will have to contribute to the bailout.  With what??

Wed, 03/20/2013 - 09:20 | 3351802 Boris Alatovkrap
Boris Alatovkrap's picture

Control-P?

Wed, 03/20/2013 - 11:03 | 3352201 Prison Justice
Prison Justice's picture

Hey you, standing in the aisles with itching feet and fading smiles....can you BTFD?

Wed, 03/20/2013 - 07:17 | 3351432 stocktivity
stocktivity's picture

It's All Bullshit!!!!

Wed, 03/20/2013 - 07:42 | 3351495 max2205
max2205's picture

Well market watch made it official.  This is the end of the 16 year bear market

 

Huh? Thought it was 12 years.  

Wed, 03/20/2013 - 07:17 | 3351435 ziggy59
ziggy59's picture

Strange no MSM mention of Chase balances going to zero, and S Korea banking computers crashing...

Wed, 03/20/2013 - 07:19 | 3351438 GetZeeGold
GetZeeGold's picture

 

 

Be of good cheer.....haven't you heard a Russian gas company is going to save the entire world?

Wed, 03/20/2013 - 11:43 | 3352344 thisandthat
thisandthat's picture

Green shoots, delivered by red balloons.

Wed, 03/20/2013 - 07:21 | 3351449 Iocosus
Iocosus's picture

Hardly a mention of the attempted hit on a JPMorgan whistleblower.

Dimon is the modern-day Al Capone. Fortunately, he who lives by the sword, dies by the sword.

Wed, 03/20/2013 - 07:40 | 3351491 bank guy in Brussels
bank guy in Brussels's picture

And then there is the sudden 'suiciding' of the lawyer for the famous 'rogue trader' Jérôme Kerviel and defendants in other corporate scandals, lawyer Olivier Metzner, suddenly found dead:

«  His body was found floating off his private island in Brittany.

A note was found at his home and an investigation has been opened, with police treating the case as suicide.

He made his name in a series of high-profile cases, defending the rogue trader Jerome Kerviel, former Prime Minister Dominique de Villepin, and Vivendi chief Jean-Marie Messier. »

 http://www.bbc.co.uk/news/world-europe-21823506

Wed, 03/20/2013 - 07:45 | 3351498 Iocosus
Iocosus's picture

...and the Serbian ambassador to NATO who "leapt" to his death off a parking garage.

or

Phillip Marshall most recently, who, authorities claim, killed his whole family (including the dog), although neighbors did not report hearing any gunshots in the tight-knight community

 

Wed, 03/20/2013 - 11:52 | 3352391 thisandthat
thisandthat's picture

Again? Hope it wasn't the same guy. Anyway, twice in 3 years; too much for coincidence, no proof (yet) of consistence - maybe a coincistence?

Wed, 03/20/2013 - 07:22 | 3351452 fudge
fudge's picture

and still not mention of hillarys emails,WTF is going on with that ?? RT has some,and they sound like they might be juicy.

 

Wed, 03/20/2013 - 07:25 | 3351460 GetZeeGold
GetZeeGold's picture

 

 

Seems perjury runs in the Clinton family. Does she still even have a law license to lose anymore?

Wed, 03/20/2013 - 07:28 | 3351467 machineh
machineh's picture

She's got endorsements from four (4) Israeli politicians in her campaign video.

She don't need no stinkin' badges.

Wed, 03/20/2013 - 07:35 | 3351486 fudge
fudge's picture

that woman? is evil :(

Wed, 03/20/2013 - 07:27 | 3351465 Mitzibitzi
Mitzibitzi's picture

RBS online / phone banking has been on and off the past 48 hours, too. And transactions have been slow showing up on the account summary page for a few weeks now. Used to take about 2 minutes for a transactionto show up - recently it's been hours. Occasionally even a day or more.

Wed, 03/20/2013 - 07:19 | 3351437 fudge
fudge's picture

Give Russia the gas and a port and they can fuck EU from north and south .. and everyone be happy :))

 

Wed, 03/20/2013 - 07:19 | 3351439 Cassandra Syndrome
Cassandra Syndrome's picture

From Russia with Love, bitchez!

Wed, 03/20/2013 - 07:34 | 3351483 fudge
fudge's picture

'Gorky Park' if they don't get money or gas.

Wed, 03/20/2013 - 07:20 | 3351440 fonzannoon
fonzannoon's picture

I'd love to see the New account form for the gas linked bonds in exchange for confiscation

1) Was this transaction solicited or unsolicited?

2) please note that we have upped your risk tolerance from none to "off the charts"

.........

Wed, 03/20/2013 - 07:22 | 3351451 machineh
machineh's picture

3) please note that selling these bonds before the two-year lockup expires is a felony offense.

Wed, 03/20/2013 - 07:20 | 3351443 machineh
machineh's picture

The other option being reported is to offer depositors with more than EUR100k a voluntary haircut in return for natural gas-indexed bonds.

I sleep better at night, knowing that when JPM and BofA go down, lucky depositors will receive Bakken Shale and Eagle Ford frack-gas bonds.

We're cookin with gas!

Wed, 03/20/2013 - 07:24 | 3351456 Iocosus
Iocosus's picture

...when JPM and BofA go down.

Schadenfreude!

Wed, 03/20/2013 - 07:24 | 3351458 firstdivision
firstdivision's picture

No, you receive shares in Adultfriend Finder and Ricks Cabaret

Wed, 03/20/2013 - 07:21 | 3351445 jubber
jubber's picture

Totally overlooked yestrday was the failure of Italy to form a Government, they are having another go today, if they fail this week then new elections will be announced causing further chaos in the markets  IMHO

Wed, 03/20/2013 - 07:27 | 3351464 samcontrol
samcontrol's picture

"further caos"

maybe in miners and a few really bad stock picks..

" future caos "

fixed it for you!

Wed, 03/20/2013 - 07:48 | 3351502 Non Passaran
Non Passaran's picture

The fixer can't spell. Get lost.

Wed, 03/20/2013 - 07:29 | 3351471 disabledvet
disabledvet's picture

BIG deal. "Greece had China. Cyprus has Russia." all "bullshitski" as they say in those parts. I'd believe the authorities there more if they said "we're going to Ankara" actually...but their drinking so much from the Kool-aid "only Wall Street believes them." ah, potential investment banking clientele. is there no lie big enough? (no.) i do find it interesting that it is China and East Asia that has gotten crushed due to Cyprus...can't say i understand the connection...if there even is one. something tells me "the sudden appearance of a Germany with a d-mark scares the shit out of 'em" though.

Wed, 03/20/2013 - 07:22 | 3351450 Cdad
Cdad's picture

In other words, the criminal syndicate known as Wall Street is bullish because banks in Cyprus are still closed.

Wed, 03/20/2013 - 07:24 | 3351457 machineh
machineh's picture

Same way the Devil loves Wednesdays cuz the churches are closed.

Wed, 03/20/2013 - 07:23 | 3351455 firstdivision
firstdivision's picture

The option of tapping the social security funds’ reserves (amounting to EU5bn)

 

So wait let me get this straight, Russian Mafia gives Cyprus ~5B and the Mafioso gets access to raid 5B from the SS fund, all the while Cyprus will be stay solvent.  Sure that makes perfect sense.

Wed, 03/20/2013 - 07:26 | 3351462 rodocostarica
rodocostarica's picture

An easy choice for the Russians. A cheap base on Cyprus and lock up the gas. And look good.

Bend over Sarris and take it like a man.

Wed, 03/20/2013 - 07:32 | 3351480 Mitzibitzi
Mitzibitzi's picture

Thing is, the Russians may well be a Mafia syndicate masquerading as a country, but..

If you pay protection money to the Mafia, you do generally get protection. Simple pragmatism; they don't like anyone muscling in on a steady income stream. Compare and contrast with the EU, who are no less keen on getting their grubby paws on your money but aren't willing to break any heads.

Wed, 03/20/2013 - 07:28 | 3351463 JustObserving
JustObserving's picture

Bernanke will speak at 2:30 pm and all will be well with this world - you can take that to the bank. He will be printing $120 billion a month until further notice.

Wed, 03/20/2013 - 07:28 | 3351468 sharky2003
sharky2003's picture

So I have no idea if this is another DDOS attack or somethign more but the CapitalOne website has been down for me since at least 330 am EST. At first I could get to the regular home page but timed out when I went to log in, and now I can't even get to the homepage. If anything, now I know how the Cypriots feel!!!

Wed, 03/20/2013 - 07:28 | 3351469 put_peter
put_peter's picture

This has got to be the best financial porn ever!

Wed, 03/20/2013 - 08:05 | 3351519 GrinandBearit
GrinandBearit's picture

Nah...

2008/09 was much better IMO.  The volatility was incredible.  Some days the DOW would move over 1000 points up and down in one day.

Wed, 03/20/2013 - 07:34 | 3351472 Roandavid
Roandavid's picture

I don't think blackmail is the approach here.

As Churchill noticed, the key to Russia is it's interests, and Russia has some powerful interest in both Cyprus and Greece.

Just for starters as noted here at ZH, another naval base in the western Meditteranean might be fun, and maybe another one in Greece as well.  And then just for some big fun, how about a mighty Fuck You for newly minted NATO member not to mention Muslim to boot, Turkey.

All of this is the stuff of Russian dreams.

I guarantee you that Putin's dick is so hard the table gets up with him.

Wed, 03/20/2013 - 08:12 | 3351503 Monedas
Monedas's picture

You give the Russians way too much credit .... they are hicks .... peasants .... maybe they'll lose their naval base at tartar sauce syria ! I'm trying to suggest to China, the Koreas and Japan .... take back Vladivostok .... it was stolen ! All the oil and natural gas of Siberia are belong to you .... your heritage slice of the polar pie .... who dealt you out ? You built the Great Wall only to forfeit Siberia ?

Wed, 03/20/2013 - 08:20 | 3351559 Sandmann
Sandmann's picture

Hicks who have kept the United States in check for years......look what happens when the USA goes rogue - it goes bust

Wed, 03/20/2013 - 08:22 | 3351564 Proofreder
Proofreder's picture

Yes, big, ugly dumb-looking peasants with really big sticks - careful whom you treat as hicks!  

For more info, check out this short list of dates - http://en.wikipedia.org/wiki/List_of_peasant_revolts

Some hicks were doubtless also involved in the Roman episode in 

Wed, 03/20/2013 - 08:41 | 3351622 negative rates
negative rates's picture

Yea but those hicks, they can stop on a dime, and still give YOU 9 cents change.

Wed, 03/20/2013 - 07:32 | 3351479 myptofvu
myptofvu's picture

I find it interesting that they are trying to find a solution to bailout a Bank they just executed. At this point isn't the wisest course just to let it go? Once the Bank reopens the deposits will flee. Sure they will limit withdrawls but that will only slow the process not stop it. 

Wed, 03/20/2013 - 07:34 | 3351484 q99x2
q99x2's picture

Maybe Obama will let a NK Nuke through to distract things a little.

Wed, 03/20/2013 - 07:37 | 3351487 GrinandBearit
GrinandBearit's picture

Typical 3am futures ramp. 

Think about it... There was a bank holiday declared.  Millions of depositors cannot access their money, yet the futures market is up like nothing has happened.  PMs should be skyrocketing.  None of this makes any fucking sense... it's absurd. 

Are there anymore sellers in this market?  How about humans? 

IMO, 90% of ALL the stock market moves are due to HFT algos.

Wed, 03/20/2013 - 08:02 | 3351515 ekm
ekm's picture

Primary dealers and major euro banks selling the same batch of stocks to each other over and over and over.

 

It's been like that since DOW 12k I'd say. In theory, like this is can go 50k or even 100k.

 

If I sell something to you and you sell the same thing back to me infinitely only the sky is the limit to the price. It's what you and I decide since nobody else is trading.

Wed, 03/20/2013 - 08:05 | 3351524 magpie
magpie's picture

Maybe one should be grateful that the unwind is so 'civilised'. IMHO the meltup is only to give the players who missed the Cyprus crisis a better shorting position, the real trigger could be a sell the Bernank...

Wed, 03/20/2013 - 08:11 | 3351537 ekm
ekm's picture

I'd say if you long and leveraged which is ALL THE PRIMARY DEALERS AND MAJOR EURO BANKS, the only option is to use Fed money to keep the price up or sell the same batch of stocks to each other to keep the price up until...............the Fed refuses to provide money to pay for CDS losses.

It will happen. Then.....Lehman Tripple.

Wed, 03/20/2013 - 08:03 | 3351516 ekm
ekm's picture

HFT flourishes when there are a lot of stocks floating. Like this they are suffering.

Wed, 03/20/2013 - 07:43 | 3351488 Monedas
Monedas's picture

" .... back ON the saddle again .... "  ?  Home in the range ?  Back in saddle ? She's IN the rag ? When you bang your balls on the saddle horn .... you'll understand that you're IN the saddle ! Leave the word jokes to me ! Now, I must get back to Piers Morgan and Michael Moore sucking each other's "mikes" !

Wed, 03/20/2013 - 07:40 | 3351492 Downtoolong
Downtoolong's picture

the entire overnight ramp is based on the hope of one man, .... and bet the ranch on a well-meaning Vladimir Putin.

Those overnight buyers may want to check their selling counterparty. It's probably Vladimir Putin getting short.

And don't think for a second that Putin isn't smart enough to use his leverage in this situation to squeeze something out of the EU in the process. Of course, that part of the deal, which we all will pay for eventually, and which Goldman is probably structuring derivatives for as we speak, will be under the table, behind the curtain, and never disclosed.

 

 

Wed, 03/20/2013 - 07:53 | 3351506 negative rates
negative rates's picture

And I heard a tale of russian frogs jumping over the rainbow. If they can do that, well anything is possible.

Wed, 03/20/2013 - 07:55 | 3351511 magpie
magpie's picture

The Bernank better say something undovish to keep gold under control

Wed, 03/20/2013 - 08:04 | 3351521 negative rates
negative rates's picture

You don't think he can pull off a hat trick though, do ya?

Wed, 03/20/2013 - 08:07 | 3351528 magpie
magpie's picture

it is diffult to use a force meld on him, but he is concentrating on his mission 'Save treasuries' before all else.

Wed, 03/20/2013 - 08:38 | 3351609 negative rates
negative rates's picture

The future for them, does not look bright, at best.

Wed, 03/20/2013 - 08:10 | 3351535 flapdoodle
flapdoodle's picture

Looks like the Russians are hanging tough (who would have thunk...). Here's a report from Chile's El Mercurio that the talks (first round at least) have failed...

http://www.emol.com/noticias/economia/2013/03/20/589328/chipre-fracasa-e...

Of course, this will never make it to MSNBC

 

Wed, 03/20/2013 - 08:13 | 3351540 thismarketisrigged
thismarketisrigged's picture

i really believe i can go to sleep at night with the dow futures down say 400 pts, and id wake up and they would be green, or really close to.

 

how the mother fucking shit r the futures up 71 fucking pts, on absolutley nothing!!!

 

itd be one thing if this market had sold off like 800 pts due to cyprus and now with rumors, there is a ramp, but fact is we did not sell off and there is no good news about cyprus, which should= down market.

 

im so sick of this shit, how r these fed members not in fucking jail by manipulating stock prices.

Wed, 03/20/2013 - 08:44 | 3351631 negative rates
negative rates's picture

Welcome to the land of two wrongs makes a right, in addition to 3 lefts makes a right. 

Wed, 03/20/2013 - 09:00 | 3351678 falak pema
falak pema's picture

On the geopolitical picture of Merkel/Putin stand off or collaboration; in the context of Cyprus banking stress testing in real time mode :

1° The Schroeder legacy and tie in to Putin/Gazprom gas is a major axis of long term German Russian collaboration. No russian Czar or German Chancellor can walk away from that.

2° Merkel, because of her E German culture and quarter polish origins, apparently, does not LIKE Putin. Also she does not like the Russian Mafia style Oligarchy influence in Eurozone and more so in City zone, where their non dom accounts fuel up Cameron's economy as it does in Cyprus. Merkel, alike other EU nations, does have a deep problem with the City Anglo Saxon capitalist culture of USD hegemonial empire.

SO there is a deep divide in the ongoing functionings of Putin type power and Merkel/EU power in terms of hot oil/gas/commodity money line integration and capitalist mindset. Russian Oligarchs are buccaneers on the high seas, not like Eurocrats and Kaiser's children.

They don't have the same methods and same agenda vis a vis functionings of EUrozone's own sphere of influence; inspite of the huge strategic LT link of 1°.

3° On the ME scene, in the context of Pax Americana Saud-Oil-Petrodollar play, this gets more complicated. Germany as surrogate of America since WW2 and thru its Nato dependency, is aligned behind USA. Putin is in the other camp, and we see this cauldron bubble hot in Syria and warming dangerously in Iran, as in ex-USSR peripheral oil oligopolies which are in Putin's normal sphere of influence where America treads very overtly in MIC + oil oligarchy plays.

The Cyprus misdeal spinning around Ruski hot money now complicates this further as there are Putin/Russian Oligarchy money and Gas + naval base strategic interests hinging around CYprus. Something that rankles Eurocrats as possibly the USA.

Merkel/EU have no DIRECT interest in Cyprus assets but its collateral impact could be ominous in an East/West standoff over all this.

4°  All the more so that Turkey rising, a new and strategic partner for Germany, Russia and Nato/Usa, has ambitions which could complicate the German/Russian dialogue even further. Turkey will control the gateway into Asia as its economy now surges on 80 million consumers, with access to Iraqi oil beckoning bigtime.

5° Chindia rising will be tugging on Russian gas/oil and ME oil too, making the fight for fossil export access even more steep.

This is a thorn in the Schroeder legacy as Putin has both directions to run his pipelines.

We are really moving back to the Renaissance age, with neo-feudal money verticality rampant and general peasantry status now going viral in Medit region.

All the clash of civilization ingredients around black gold, that reigned in those days around Aztec gold and silver from new world spilling into warring Europe, silk and spice from East, sugar and coffee, guns and god's glory; all melting into ongoing bloody pot pourri for a hundred plus years, are there once again.

So the Russian German axis will see turbulent times; especially in this eastern Mare Nostrum of old!

Our fights now are more financial than military in the post nuclear age, so economia and money rule the debate.

In case push comes to shove this could change bigtime...butterfly wings flutterings.

Kaiser helmets, Ottoman sabres, Russian cossaks, American cavalry and french hussars; the arabs are going to the barber's shop more often these days. Anyone for Cyprus souvlaki grilled on the charcoal fire?

Meanwhile fucked up duck derivatives soup cooks deep in City and WS ovens...hmmm. 

Wed, 03/20/2013 - 09:32 | 3351831 WallowaMountainMan
WallowaMountainMan's picture

"So back to square one even as Frau Merkel reiterated the Shaeuble talking points, saying she regrets the decision by the Cypriot parliament."

ya think?

:)

 

"Austria finance minister Fekter raised the threat of a ECB funding cutoff while Germany’s Schaeuble said the nation’s “business model is no longer tenable”

there's nothing wrong with their business model. if their gov spent in accordance with revenue all other banks on the planet would have to compete with the cypriots' banks.

Wed, 03/20/2013 - 09:30 | 3351861 Downtoolong
Downtoolong's picture

Finance Minister Michael Sarris said he had reached no deal on financing with his Russian counterpart, Anton Siluanov, but talks were continuing.

And once again we see it's the money men and not the elected heads of state who really set foreign policy.

Wed, 03/20/2013 - 10:07 | 3351996 Dan The Man
Dan The Man's picture

Cyprus and Iceland should be talking  

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