As China builds its own multilateral institutions, Beijing has been keen to dispel the notion that it seeks to supplant the Bretton Woods order with its own brand of Eastern hegemony and although one can certainly question the degree to which China’s aims are rooted purely in an inclination to be benevolent towards nations in need of fixed asset investment, Beijing is making an effort to distance itself from the way the US governs the institutions under its control.
"Today, Europe is not independent… The US is drawing us [the EU] into a crusade against Russia, which contradicts the interests of Europe,” said the former French Prime Minister Fillon while the chief economist at Bremer Landesbank adds that as a result of US policies "unmeasurable damage lies in an elevated geopolitical risk situation for the people in the EU.”
As reported yesterday, in the latest escalation of the "war on ISIS", Obama - winner of the Nobel peace prize for pulling US soldiers out of Iraq - was said to be sending even more US soldiers, pardon military advisors, to Iraq to halt the inexplicable, constant expansion of ISIS, now deep in Syrian territory. Earlier today, this was confirmed when Reuters reported that, as expected, the US will announce on Wednesday plans for a new military base in Iraq's Anbar province and the deployment of around 400 additional U.S. trainers to help Iraqi forces in the fight against Islamic State, citing an unnamed U.S. official.
After a Chinese session which following the MSCI failure to include Chinese stocks in its EM index, if only for the time being, was largely a dud with Shanghai stocks actually dropping by 0.1% after a late day selloff, eyes turned to Europe, which once again did not disappoint and where the bond rout continued apace, with the 10Y Bund yield spiking just after the European open, and rising above 1.05%, the widest level since September 19, before recouping some losses and trading just around 1.00% at last check.
The Department of Education says it will forgive federal student loans made to Corinthian Colleges students who can prove they were victims of fraud. The potential cost to taxpayers: nearly $4 billion. With the precedent thus set, the question now is whether continued pressure on for-profit colleges will result in further closures and more petitions from hundreds of thousands of students with hundreds of billions of loans they now know can be legally discharged.
3 Hours and 47 Mins After Obama Says He’ll Sign Law BANNING Bulk Collection, DOJ Asks Secret Court to CONTINUE Bulk CollectionSubmitted by George Washington on 06/09/2015 14:13 -0400
Follow the Law?? US????
*WHITE HOUSE BRIEFING ROOM WAS EVACUATED ON BOMB THREAT: EARNEST
*WHITE HOUSE GIVES ALL CLEAR ON BRIEFING ROOM
*SECRET SERVICE QUICKLY MADE SURE ROOM WAS SAFE, EARNEST SAYS
*BOMB THREAT WAS PHONED IN, EARNEST SAYS
"U.S. President Barack Obama is weighing steps to bolster Iraq's battle against Islamic State," Reuters says, as senior military officials indicate an increase in the number of US "support personnel" may be necessary. Meanwhile, Congressional war hawks are beating the drum.
After a quiet Asian session, where not even the latest Chinese CPI miss was enough to push the SHCOMP to new multi-year highs, all eyes were on Europe where a few hours ago the European Commission announced it had received not one but two new proposals from Greece with the Greek government adding that it considers proposals submitted last week as remain basis for political negotiations. However, barely had Europe received the Greek addenda when it nein'ed all over them, with BBG citing an international official directly involved in talks saying that the "Greek government's revised proposal to unlock bailout funds is vague rehash of earlier plans, not considered credible."
Ex-US Intelligence Officials Confirm: Secret Pentagon Report Proves US Complicity In Creation Of ISISSubmitted by Tyler Durden on 06/08/2015 23:39 -0400
in a follow up piece to his stunning original investigative report, Nafeez Ahmed reveals that according to leading American and British intelligence experts, the previously declassified Pentagon report confirms that the West accelerated support to extremist rebels in Syria, despite knowing full well the strategy would pave the way for the emergence of the ‘Islamic State’ (ISIS). The experts who have spoken out include renowned government whistleblowers such as the Pentagon’s Daniel Ellsberg, the NSA’s Thomas Drake, and the FBI’s Coleen Rowley, among others. Their remarks demonstrate the fraudulent nature of claims by two other former officials, the CIA’s Michael Morell and the NSA’s John Schindler, both of whom attempt to absolve the Obama administration of responsibility for the policy failures exposed by the DIA documents.
Overnight it was none other than the White House itself which finally admitted that the entire brilliant idea of collapsing the Russian economy by way of sanctions across the western world, ended up hurting European nations (i.e., US partners) who had no choice but to "sacrifice their own economies."
As Republican presidential hopefuls ramp up their campaigns, GOP candidates will likely point to Vladimir Putin as the embodiment of everything that’s wrong with Democrats’ foreign policy and Clinton’s famous “reset” button ceremony in Geneva provides the perfect opportunity for the GOP to tie the presumed Democratic nominee to a failed attempt at reconciliation with America’s Cold War nemesis.
“A positive scenario requires almost everything to go right from now on,” BofAML says, adding that “Greece needs to receive new funding before the end of June, otherwise it will not be able to repay the IMF on June 30 … which would put ELA access of Greek banks at risk.”
- White House denies Obama said strong dollar a problem (Reuters)
- Lira Falls to Record Amid Stock Rout as AK Party Loses Majority (BBG)
- Bond-Market Game of Chicken With Fed Is Riskier Than Ever (BBG)
- Xetra Dax enters correction territory (FT)
- China trade shrinks amid slowing demand (FT)
- Greek government eyes compromise with lenders, rules out snap polls (Reuters)
- If You Think Greece’s Crisis Will End Soon, Think Again (BBG)
- China growth data ‘overstated’ due to data error (FT)
- Calpers to Cut External Money Managers by Half (WSJ)
Germany Enters Correction; EMs In Longest Losing Streak Since 1990 Routed By Turkey, Obama Turmoils DollarSubmitted by Tyler Durden on 06/08/2015 06:48 -0400
While there were key macroeconomic data out of Asia earlier in the session, with Japan revising its Q1 GDP up from 2.4% to 3.9% (due to an upward revision to capex) making some wonder if it simply didn't snow in Japan this winter, as well as Chinese trade data that was once again disappointing with the third consecutive drop in exports coupled with an 18.1% collapse in imports hinting that nothing is going well in China's economy (which once again sent stocks soaring this time up another 2.2% on certainty another PBOC rate cut is imminent, pushing the PBOC to a fresh 7-year high of 5,132), it was actually a leaked Obama comment on the strong USD that moved markets.