"Air Pocket" Over East Ukraine: Flight MH 17 News Wrap

Tyler Durden's picture

As expected following promises by virtually all carriers yesterday, today there is a literal "air pocket" above Ukraine, as seen in the most recent update of European air traffic via Flightradar24.com. Expect this pattern to remain well into the future as no airline will ever again, or certainly for the next several years, want to incur liability associated with having a plane shot down after the MH 17 tragedy.

So aside from air traffic patterns, here is a compilation of actions by Ukraine, Russia, U.S., EU, including effects on global markets, courtesy of Bloomberg

POLITICS:

  • Russian President Putin says jet crash shows need to resolve crisis; sends condolences to Dutch PM Mark Rutter
  • Blames Ukrainian government responsible on eastern fighting
  • Expected to attend Brisbane G20 meeting in Nov.: Australia
  • Ukrainian Foreign Minister Klimkin says “terrorist” calls on crash intercepted
  • Rosneft says “illegitimate” sanctions won’t deter investments

WHAT TO WATCH:

  • German Chancellor Merkel says destruction of MH17 won’t on its own cause additional sanctions against Russia
  • U.S. says Russian-made missile struck Boeing 777 jet
  • Russia Sees Evidence of Ukraine Anti-Aircraft Tracking Yday: RIA
  • Ukraine needs to prepare for full halt of Russian trade: IFX
  • European banks seen bowing to U.S. ban on Russia over fines
  • Separatists’ deleted posts suggest jet strike mistake: AFP

MARKETS:

  • Yield on 10-yr ruble bonds down 5bps to 8.87%
  • Ruble appreciates 0.5% vs euro-dollar basket
  • Micex -1.7% to 1,416.74, falling for fifth day in worst week since April
  • Hryvnia strengthens 0.8% to 11.63 per dollar

Source: BBG