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Futures Slide As Ukraine Fighting "Re-Escalates" Again

Tyler Durden's picture




 

If you like your de-escalation, you can keep your de-escalation. To think that heading into, and following the Russia-Ukraine "summit" earlier this week there was so much hope that the tense Ukraine civil war "situation" would somehow fix itself. Oh how wrong that thinking was considering overnight, following rebel separatists gains in the southeast of Ukraine which included the strategic port of Novoazvosk and which is "threatening to open up a new front in the war" including setting up a land corridor to Russia controlled-Crimea, Ukraine's president Poroshenko for the first time came out and directly accused Russia of an "Invasion", or at least a first time in recent weeks, saying he has convened the security council on the recent Russian actions.

And while none of this is particularly new or unexpected, that it happens on a day in which Europe reported yet another batch of very adverse data, including a big drop in European confidence as well as Spain sliding again into outright deflation, is hardly supportive of risk especially following yesterday's Reuters comment that no ECB action is to be expected absent a dramatic slide in inflation. As a result bond yields have fallen to fresh record lows across the board, pushing US TSYs higher as well, while for the first time equities can't find solace in the hope that bad news out of Europe is really great news out of the ECB, and as a result have tumbled.

In the Asian session overnight, major bourses are mostly trading softer following the lackluster performance in US and European equities yesterday. The Nikkei and the Shanghai Composite are down -0.5% and -0.6%, respectively. Away from equities, Treasuries have firmed further following on from yesterday’s rally. As we go to print the 10yr and 30yr UST yield is around 2.35% and 3.10%, respectively. Indeed following the 4bp and 6bp decline in the 10yr and 30yr UST yield yesterday, the 10s30s curve is now around 75bps and the flattest as it has ever been since 30 Sept 2009. The 10s/30s was nearly as wide as 100bps in February but in reality it has been on a flattening trend throughout the course of this year. The flatter US rates curve is also providing support to longer dated USD sovereigns in Asia.* Asian stocks fall with the Sensex outperforming and the Hang Seng underperforming. MSCI Asia Pacific down 0.3% to 148.3, Nikkei 225 down 0.5%, Hang Seng down 0.7%, Kospi up 0%, Shanghai Composite down 0.6%, ASX down 0.5%, Sensex up 0.3%. 2 out of 10 sectors rise with telcos, health care outperforming and energy, utilities underperforming

European shares fall with the basic resources and financial services sectors underperforming and utilities, food & beverage outperforming. The Swedish and Italian markets are the worst-performing larger bourses, the Dutch the best. Spanish 2Q GDP in line with estimates. Italy’s top banks said to seek up to $36b from ECB. The euro is stronger against the dollar. Greek 10yr bond yields rise; Portuguese yields increase.   1 out of 19 Stoxx 600 sectors rise; utilities, food & beverage outperform, basic resources, financial services underperform; 20.2% of Stoxx 600 members gain, 77% decline.

Looking to the day ahead we have quite a busy day for data. In Europe we have Spanish August inflation data (expected -0.6% MoM) and the second read on Spanish Q2 GDP (expected unch at +0.6%), German August unemployment and inflation reads (expected at 6.7% and +0.0% MoM respectively), Italian June retail sales and business confidence (expected at -0.5% MoM and 99.2 respectively) and also Euro area August economic, industrial, consumer and services confidence which are expected to come in at 101.5, -4.5, -10 and 3.5 respectively). Over in the US we have August initial jobless claims (expected in at 300k), the second read on Q2 GDP (BBG consensus is for a read of +3.9% whilst DB expects it at +3.8%) and the second read on Q2 Core PCE (BBG consensus is for a read of +2%), July Pending Home Sales (expected +0.5% by the market and +1.5% by DB) and the Kansas City Fed manufacturing index (expected in at 7).

Market Wrap

  • S&P 500 futures down 0.4% to 1989.5
  • US 10Yr yield down 3bps to 2.327%
  • German 10Yr yield down to at 0.88%
  • MSCI Asia Pacific down 0.3% to 148.3
  • Gold spot up 0.5% to $1289.3/oz

Bulletin Headline Summary from RanSquawk and Bloomberg

  • European fixed income markets retreat from all-time highs as German and Spanish inflation data dampen the case for ECB action next Thursday
  • European equities slump on further evidence of Russian activity in eastern Ukraine and dwindling prospects of ECB action
  • Attention turns to US GDP (expected to be revised to 3.9% from 4.0%) and the final issue from the US Treasury (USD 29bln 7yr Notes)
  • Treasuries gain, 10Y notes near 2.339% support as ECB rally continues; 10Y bunds yield 0.89% as Ukraine warns of Russian invasion, Germany threatened Moscow with further sanctions.
  • Week’s auctions conclude with $29b 7Y notes, WI yield 2.032% vs 2.250% award in July
  • Pro-Russian rebels widened their attacks on government forces, taking several towns outside the strongholds of Donetsk and Luhansk, including near the Sea of Azov, opening a new front and supply channel, according to a Ukrainian official
  • Euro-area economic confidence fell more than forecast, Spanish consumer prices dropped the most in five years and German unemployment unexpectedly rose in a burst of data backing Draghi’s warning that more stimulus may be needed
  • Rising stress in China’s $6t shadow banking industry is testing central bank Governor Zhou Xiaochuan’s resolve to limit monetary easing as risks to the government’s growth target climb
  • Emmanuel Macron’s appointment as France’s  economy and industry minister in place of Arnaud Montebourg shows the gulf between rank-and-file members of Hollande’s Socialist Party and the competing visions of France’s economic future
  • A year after he threatened attacks on Syrian forces loyal to President Bashar al-Assad, Obama is weighing airstrikes against Islamic State extremists in Syria that could benefit Assad
  • More than 20,000 people may be infected with the Ebola virus before the outbreak in West Africa is controlled, the World Health Organization said as it sought $490m in funding
  • The IMF’s board will meet as early as this week to hear Managing Director Christine Lagarde explain her involvement in a French court decision that threatens to tarnish the lender’s reputation
  • Sovereign yields extend declines. Asian, European stocks, U.S. stock futures decline. WTI crude and copper lower, gold gains

US Econ Docket

  • 8:30am: GDP Annualized, 2Q revised, est. 3.9% (prior 4%);
  • Personal Consumption, 2Q revised, 2.4% (prior 2.5%)
  • GDP Price Index, 2Q revised, est. 2Q revised, est. 2% (prior 2%)
  • Core PCE, 2Q, est. 2% (prior 2%)
  • 8:30am: Initial Jobless Claims, Aug. 23, est. 300k (prior 298k)
  • Continuing Claims, Aug. 16, est. 2.51m (prior 2.5m)
  • 9:45am: Bloomberg Consumer Comfort, Aug. 24 (prior 36.6)
  • 10:00am: Pending Home Sales m/m, July, est. 0.5% (prior -1.1%); Pending Home Sales y/y, July, prior -4% (prior -4.5%)
  • 11:00am: Kansas City Fed Manufacturing Activity, Aug., est. 7 (prior 9)
  • 1:00pm: U.S. to sell $29b 7Y notes

 

FIXED INCOME

Bund futures softened from the open as markets pulled back their expectations of ECB easing as soon as next Thursday. Spanish and German CPI data continued to show a dire inflation picture across the Eurozone, however failed to provide what ECB sources referred to as an ‘inflation slump’ yesterday, in order to drive the ECB toward ABS purchases. Furthermore, ECB money supply data ticked higher than expected (1.5% vs. Exp. 1.3%), supporting the view that June’s easing measures could be sufficient to drive inflation expectations higher. As such, Eurozone spreads modestly widened against the German benchmark, with Italian underperforming as EUR 6.5bln of BTP issuance came onto the market at an unsurprisingly record low of 2.39% on 10yr debt.
Final Barclays month end extension for Pan-Euro Agg at +0.03y (Prev. 0.12yrs, 12m average +0.03yrs), Sterling Agg Tsy at +0.08y, US Treasuries +0.13yrs (Prelim. +0.12yrs, 12m average +0.09yrs)

EQUITIES

European equity markets trade softer, with underperformance in the benchmark DAX as dwindling expectations of ECB ABS purchases, or ‘private QE’, alongside further militarization in eastern Ukraine drags equities away from multi-month highs printed earlier in the week. The leader of the pro-Russian separatists Zakharchenko stated that serving Russian soldiers are among the rebel ranks, however are operating on leave from their posts in order to fight with the separatist military – further heightening concerns that Russia could fall under further sanctions pressure. Separately, UK miners sharply underperform, with Rio Tinto and Anglo-American falling as much as 2.5% after Chinese iron ore futures slumped as much as 3% to contract lows overnight as a clampdown on credit weighed on industrial metal purchases. US stock futures have been dragged down by their European counterparts, indicating a lower open on Wall Street.

FX

EUR/USD reclaimed 1.32 on the back of stronger than expected ECB money supply figures, and continues to trade in between large expiring option strikes at 1.3200 (USD 1.14bln) and 1.3250 (USD 2bln), due to roll off at the 1500BST NY cut. Elsewhere, AUD/USD broke above the 50DMA after Q2 Australian Private Capital Expenditure posted the first positive reading since September 2013 (1.1% vs. Exp. -0.9% (Prev. -4.2%, Rev. -2.5%), a result likely to be welcomed by the RBA ahead of their rate decision next week, especially given the recent poor data out of Australia.

COMMODITIES

Spot gold and silver have been supported from the open by the weaker USD and the tensions in eastern Ukraine. Silver sharply outperforms, lifting spot gold toward the 100DMA at USD 1,295.50. WTI and Brent crude futures trade lower after yesterday’s build in Cushing OK stockpiles, further pressured by expectations of Libyan production coming back online (expected to reach 1mln bpd by the end of September).

* * *

DB's Jim Reid concludes the overnight recap

Yesterday European government bond yields once again hit new all-time lows as the 10 year yields on Dutch, German, Spanish, Italian and French government bonds all shed around 2-4bps. The 10Y Bund has been trading sub-1% in yield since August 21st and reached an intraday low of 0.895% yesterday before closing at 0.91%. This all comes on the back of what has been a truly impressive month for the asset class which has seen 10 year government yields across Europe drop, including on Dutch (-28bps), German (-22bps), Spanish (-41bps), Italian (-37bps) and French (-26bps) govies. These moves have come on the back of a darkening picture for the euro area economy and a rise in the probabilities being attached to ECB QE (more on this later) but have also been part of a broader global downward trend in yields. UK and US 10Y government bond yields have also dropped 18bps and 12bps respectively this month. We have talked previously about the ongoing debate as to the destination of long-term bond yields in this cycle and in an interesting recent paper entitled, “The Revived Bretton Woods System’s First Decade” DB Group Chief Economist David Folkerts-Landau adds to this debate whilst discussing the current global macroeconomic system and the role China has played in it over the past decade. On the real rates issue the piece highlights how, “China’s … export-driven development strategy has depressed long-term real interest rates in industrial countries at every stage of the business cycle. This occurred because exchange rate undervaluation generated massive exports of capital via official intervention, absorbed principally by the US. Even as the China phase of the system gradually ends, long-term real rates are likely to stay unusually low because there is still a large pool of surplus labor for the global system to absorb.”

Moving back to yesterday’s moves, one of the big pieces of news was that the ECB has hired BlackRock to advise it on developing a program to buy asset-backed securities (Bloomberg News). Our main take-away from this news is that it is further evidence (if more were required) that the ECB is very much walking down the path to QE. As we noted in yesterday’s EMR, our European economists expect the ECB to announce private QE at their next meeting on September 4th. Yesterday’s weak confidence data probably increased the pressure on the ECB to act as French August business confidence fell to 91 (vs expectation it would hold at 93) and manufacturing confidence fell to 96 (from 97), the Italian August consumer confidence index read came in at 101.9 (vs 104.6 previously and 104 expected) and German September consumer confidence fell to 8.6 (from 9 previously and 8.9 expected). French July jobseekers data also disappointed, rising +26.1k vs expectation it would rise +14.5k. On the back of this data equity markets seemed in wait and see mode yesterday and were broadly flat in Europe and the US. European credit underperformed with iBoxx Main widening +0.5bps and Xover +3bps wider.

Turning to the Asian session overnight, major bourses are mostly trading softer following the lackluster performance in US and European equities yesterday. The Nikkei and the Shanghai Composite are down -0.5% and -0.3%, respectively. Although the Hang Seng (+0.2%) and KOSPI (+0.2%) are somewhat more resilient this morning. Away from equities, Treasuries have firmed further following on from yesterday’s rally. As we go to print the 10yr and 30yr UST yield is around 2.35% and 3.10%, respectively. Indeed following the 4bp and 6bp decline in the 10yr and 30yr UST yield yesterday, the 10s30s curve is now around 75bps and the flattest as it has ever been since 30 Sept 2009. The 10s/30s was nearly as wide as 100bps in February but in reality it has been on a flattening trend throughout the course of this year. The flatter US rates curve is also providing support to longer dated USD sovereigns in Asia.

Before we wrap up with the day ahead, there are fresh reports that Russian troops have launched an incursion into south-east of Ukraine (BBC). Ukraine said Russian forces had crossed the border and were supporting separatist attacks and the US State Department said it suspected a Russian directed counter-attack was underway. German Chancellor Merkel has demanded an explanation from Mr Putin. A rebel leader in Donetsk told reporters that Russia was not involved in the current offensive. Clearly this remains an ongoing story but geopolitics seems to have taken a backseat for now given the focus on ECB's upcoming policy moves.

Looking to the day ahead we have quite a busy day for data. In Europe we have Spanish August inflation data (expected -0.6% MoM) and the second read on Spanish Q2 GDP (expected unch at +0.6%), German August unemployment and inflation reads (expected at 6.7% and +0.0% MoM respectively), Italian June retail sales and business confidence (expected at -0.5% MoM and 99.2 respectively) and also Euro area August economic, industrial, consumer and services confidence which are expected to come in at 101.5, -4.5, -10 and 3.5 respectively). Over in the US we have August initial jobless claims (expected in at 300k), the second read on Q2 GDP (BBG consensus is for a read of +3.9% whilst DB expects it at +3.8%) and the second read on Q2 Core PCE (BBG consensus is for a read of +2%), July Pending Home Sales (expected +0.5% by the market and +1.5% by DB) and the Kansas City Fed manufacturing index (expected in at 7).

 

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Thu, 08/28/2014 - 07:06 | 5152950 Haus-Targaryen
Haus-Targaryen's picture

Ukraine says that Russian military now occupies Nowoasowsk. 

http://www.focus.de/politik/ausland/ukraine-im-news-ticker-putin-laesst-...

Thu, 08/28/2014 - 07:10 | 5152956 GetZeeGold
GetZeeGold's picture

 

 

I don't think this is going away anytime soon.....might want to factor it in going forward.

Thu, 08/28/2014 - 07:14 | 5152962 Haus-Targaryen
Haus-Targaryen's picture

I wish the Ruskies would go ahead and actually invade, and not stop until the 1913 German borders. 

 

But that's just me. 

 

EDIT - I was just thinking about this, and how this would be the ultimate way Putin could trolololol Germany.  Give the Germans the option -- either annex what used to be Ost-Preußen or it will be occupied by the Russians.  The Leftist and PC croud here in Germany would shit a live clucking chicken.  

Thu, 08/28/2014 - 07:16 | 5152975 GetZeeGold
GetZeeGold's picture

 

 

not stop until the 1913 German borders.

 

One could argue the 1752 borders was the sweet spot.

Thu, 08/28/2014 - 07:19 | 5152979 Haus-Targaryen
Haus-Targaryen's picture

Counterpoint - 

Germany didn't exist at that time.  1752 never experienced the German industrial revolution.  

Thu, 08/28/2014 - 07:25 | 5152985 GetZeeGold
GetZeeGold's picture

 

 

Oh come on.....work with me here.

Thu, 08/28/2014 - 07:28 | 5152994 Haus-Targaryen
Haus-Targaryen's picture

I am trying to.  But for parts of "Europe" that never experienced the industrial revolution in the 16 and 17th centuries, they're 100 years behind the rest of Europe 100 years ago and before Communism.  Today they are an abject hellhole.  

Lets just get Preußen back, and thereafter we can spend the next 100 years rebuilding.   

Thu, 08/28/2014 - 07:32 | 5153003 GetZeeGold
GetZeeGold's picture

 

 

Lets just get Preußen back

 

If you think it would help....we'll give you the UN.

 

We'll even buy you a fancy new building......just let us know.

Thu, 08/28/2014 - 07:52 | 5153054 oudinot
oudinot's picture

But Prussia did.

Thu, 08/28/2014 - 07:25 | 5152987 Phat Stax
Phat Stax's picture

Oh Regional Indian predicted earlier this year that this would be around for a long time - he gave some sort of cosmic explanation that I didn't understand.  ORI... an update?

Thu, 08/28/2014 - 07:16 | 5152974 RisingSun
RisingSun's picture

http://echo.msk.ru/blog/novaya_gazeta/1387510-echo/

http://inforesist.org/unichtozhennaya-kolonna-boevikov-s-rf-foto-18/ (NSFW pics of dead Russian soldiers in Ukraine)

http://tvrain.ru/articles/komitet_soldatskih_materej_sostavil_spisok_iz_... (400 Russian dead soldiers and what they mothers are saying)

 

Here are some of the dead Russian "soldiers"/invaders. Their mothers can not understand how they ended up in Ukraine. Their vkontakte pages(Russian facebook) pages are suddenly deleted.  Echo Moscow along with Dozdj TV(????? TV) are the only 2 opposition(politicans that are against the fascist Medvedev/Putin duo for decades to come) news agencies to mainstream Kremlin control TV channels in Russia.

I hope they are burning in hell along with their buddies Stalin, Lenin if they went willingly to fight Ukrainian soldiers.

Thu, 08/28/2014 - 07:21 | 5152981 RisingSun
RisingSun's picture

In Kharkiv(largest Russian speaking city in Donbass) a provocator from Moscow raised Russian flag on Kharkov Administration building, but thats how far these bastards on got in Kharkov. No one is attacking Russians there, no banderas running wild, no bombings. Donetsk, Slovyansk and Lugansk were not as lucky and Russian citizens such as Strelkov, Babaj and others took over the city. How many banderas are now attacking Russians in Slovyansk or bombing their cities now that Russian citizen Strelkov and his buddies are gone? None. But Kremlin TV doesnt report on that, neither does Zerohedge...

Thu, 08/28/2014 - 10:23 | 5153552 ConfederateH
ConfederateH's picture

This isn't about Russia, Nuovorussia or Ukraine.  It is about Nato and the people who pull its strings and who pull Obama's and Merkels strings.  If the Ukrainians are so stupid that they are willing to become Zio-Nato serfs, then they deserve everything that comes their way.

The Rebels, besides having a cool flag a cool name and clearly being secessionists are the heroes here.  Ukrainian oligarchs who sold out their country and countrymen to Nuland and her Nato cronies are far sleazier than Putin, who for all his foibles is at least standing up to the evil empire and its zionist masters. 

Thu, 08/28/2014 - 07:24 | 5152983 Haus-Targaryen
Haus-Targaryen's picture

Yeah, they'll be there along with all the Maidan protestors who were killed -- shoving pineapple after pineapple up Stalin's ass.  

Thu, 08/28/2014 - 07:07 | 5152951 JDFX
JDFX's picture

LOL, Ukrain now tweeting on own website, NO Russian Invasion ..... 

 

They're now long , again ! 

Thu, 08/28/2014 - 07:10 | 5152957 Haus-Targaryen
Haus-Targaryen's picture

So wait -- 

Last week the Ukies bombed and destroyed a Russian convoy, which turned out to be false.  

Then, earlier this week, the Ukies capture Russian troops in Ukraine, then it turns out the Russian military has no records of said "soldiers".

Now, today, according to the Ukies the Russians have invaded, and captured a town, just to say later "no invasion."

They truly must be the most incompetant people on the planet.  

Thu, 08/28/2014 - 07:15 | 5152973 i_call_you_my_base
i_call_you_my_base's picture

They may be incompetent, but go read the comments on any mainstream news article about this. The anti-russian propaganda has worked. Everyone views Russia as the cause and agressor.

Thu, 08/28/2014 - 07:20 | 5152980 Haus-Targaryen
Haus-Targaryen's picture

This is what is scary.  

Thu, 08/28/2014 - 07:06 | 5152952 ZippyBananaPants
ZippyBananaPants's picture

I just farted.

Thu, 08/28/2014 - 07:13 | 5152972 Oldwood
Oldwood's picture

Are we sure its not just the weather?

(which is of course evil corporations and the Koch bros fault)

People killing one another is never their own fault as they were either justifiably homicidal or simply tricked into it.

Thu, 08/28/2014 - 07:08 | 5152954 londoncalling
londoncalling's picture

i thought they only pulled this stunt on fridays?

Thu, 08/28/2014 - 07:14 | 5152968 GetZeeGold
GetZeeGold's picture

 

 

Bless'ed mother of acceleration......don't fail me now.

Thu, 08/28/2014 - 07:11 | 5152959 JustObserving
JustObserving's picture

British Bullshit Corporation propaganda out in full force:

http://www.bbc.com/news/world-europe-28966679

Kiev accuses Russia of 'bringing troops' to Ukraine, no proof offered

http://rt.com/news/183356-russia-poroshenko-invasion-ukraine/

Thu, 08/28/2014 - 07:24 | 5152984 RisingSun
RisingSun's picture

http://echo.msk.ru/blog/novaya_gazeta/1387510-echo/

 

http://inforesist.org/unichtozhennaya-kolonna-boevikov-s-rf-foto-18/ (NSFW pics of dead Russian soldiers in Ukraine)

 

http://tvrain.ru/articles/komitet_soldatskih_materej_sostavil_spisok_iz_... (400 Russian dead soldiers and what they mothers are saying)

 

Your proof, google translate it. Straight from the mouths of dead Russian(400+ of them) soldiers mothers...

Thu, 08/28/2014 - 11:50 | 5153992 Jano
Jano's picture

All your "russian" sources are linked to their western jewish masters. SO they are generally not trusted. give any other proof, but pls. not  " russian"  media in the hands of western bankers pls.

Thu, 08/28/2014 - 07:11 | 5152961 papaswamp
papaswamp's picture

Defense, oil ( good low price to get into) and gold might be the places to play today. As news filters in prices of everything is going to jerk around.

Thu, 08/28/2014 - 07:11 | 5152963 Millivanilli
Millivanilli's picture

Are the gas spickets still off and is Ukraine still bankrupt.   LOL

Thu, 08/28/2014 - 07:14 | 5152969 papaswamp
papaswamp's picture

Yea but dont forget....Hunter Biden wants to play in Ukraine with new shale gas fields. Must protect the oligarchy ( and their kids) investments.

Thu, 08/28/2014 - 07:20 | 5152978 GetZeeGold
GetZeeGold's picture

 

 

Send lawyers, guns, and money.......dad, get me out of this.

https://www.youtube.com/watch?v=QPlMmwOq7U8

Thu, 08/28/2014 - 07:11 | 5152965 Quinvarius
Quinvarius's picture

From what I can see in non-US news, The Western Nazi Junta is getting their asses handed to them.

Thu, 08/28/2014 - 07:12 | 5152966 christiangustafson
christiangustafson's picture

"a land corridor to Russia controlled-Crimea"

Not "controlled", Crimea is Russia.

Someone call Rand-McNally.

Thu, 08/28/2014 - 07:13 | 5152971 WOAR
WOAR's picture

None of this matters anymore.

http://www.youtube.com/watch?v=7Pq-S557XQU

The machines have won. We have become horses.

When was the last time you've seen an employed horse?

Thu, 08/28/2014 - 07:32 | 5153002 Oldwood
Oldwood's picture

Thank god MY job is safe!

Thu, 08/28/2014 - 08:13 | 5153113 WOAR
WOAR's picture

If it involves transportation at all, the Google car owns it...

If you're a pharmacist, Watson has got your number...

If you're run of the mill labor, Baxter is already at your job...

The only thing left is to write data processing programs to make more Watsons for different fields...and even that can be automated!

So, what do you do that is so safe?

Thu, 08/28/2014 - 07:16 | 5152976 craus
craus's picture

I think Poroshenko sold out to Putin.
Feds won't let this manipulated market crash this year so stop dreaming of it, like me.

Thu, 08/28/2014 - 07:29 | 5152997 anonum
anonum's picture

Here in teeny-weeny Finland, a russian aircraft has offended country's airspace for third time in the same week already. The frequency of these airspace offensions has increased rapidly lately. Latest incident coincides with Finland's defence minister (who is of swedish origin by name) signing a NATO partnership contract.

Thu, 08/28/2014 - 07:33 | 5153004 GetZeeGold
GetZeeGold's picture

 

 

After Ukraine comes Finland......keep your head down Amigo.

Thu, 08/28/2014 - 07:33 | 5153005 Oldwood
Oldwood's picture

Why are you so resistant to Russia's expanding region of protection? Feel the warm embrace.

Thu, 08/28/2014 - 07:37 | 5153012 tonyw
tonyw's picture

a question might be, have they "offended" or "strayed" into Finnish airspace or is this just more propaganda to demonise russia?

 

Thu, 08/28/2014 - 07:41 | 5153020 anonum
anonum's picture

I would choose to use the term "knowingly ignored". Just stating out observations.

Thu, 08/28/2014 - 07:48 | 5153036 tonyw
tonyw's picture

Maybe, it's difficult to know what is really happening on the ground or air.

IMHO, the US/NATO wants to open up a second front against Russia in Finland, another region that could be used as a NATO first-strike base against Russia.

Russia clearly sees the risks from Nato and China knows if Russia falls they are next in line for the exceptional nation's treatment.

 

Thu, 08/28/2014 - 11:45 | 5153979 Jano
Jano's picture

DO you belive, that this is a surprise?

You threaten them with NATO, so do not worry, FInland will be amog first places turned into nuclear ashes.

Thu, 08/28/2014 - 07:37 | 5153014 olle
olle's picture

Ukranie has a background (soon 100 years) of having one of the most corrupt and lying government in the history. How can that cange by joining EU..... it will take generations.

Ukraine is toasted, but the last one to realize it are themself, they don´t belong in a modern society.

Remeber... they are all brought up and teached how to fool the reports to the central planning goals..... this ground of thinking doesn´t dissapear over a few years of being free.

There are real stories that are so crazy that it´s unbelivable..

Thu, 08/28/2014 - 07:56 | 5153046 Squid Viscous
Squid Viscous's picture

don't worry. we'll be close to green by the open, don't want to disturb those last few blissful days in the hampsteins

Thu, 08/28/2014 - 08:09 | 5153106 Dead Man Walking
Dead Man Walking's picture

fuck it, lets bomb both sides

Thu, 08/28/2014 - 08:32 | 5153176 GetZeeGold
GetZeeGold's picture

 

 

Who told you? That was suppose to be a secret dammit!

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