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 [4]. 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

