It was a week ago when we learned that in yet another diplomatic masterstroke, Russia's Vladimir Putin took advantage of the vacuum in relations between the US (which now wants its heretofore puppet prime minister in Iraq removed) and the Iraqi PM (who has been increasingly vocal against US allies in the region, namely Saudi Arabia, and US demands for a coalition government) and offered his "complete support" to the Iraqi leader. Today, the Iraqi leader has decided to take Putin up on his offer and has announced he has bought used Russian jets which he will use instead of US fighter planes in his war against ISIS. "I'll be frank and say that we were deluded when we signed the contract [with the US]," Maliki said. "We should have sought to buy other jet fighters like British, French and Russian to secure the air cover for our forces; if we had air cover we would have averted what had happened," he went on.
As the war in Iraq goes from bad to worse, and as the Obama administration is tired of being humiliated by a bunch of extremist Al Qaeda tribesman, the president is once again pivoting to the place where it all started. It is here where he intends on arming the local Al Qaeda jihadists once again, and will request half a billion dollars from Congress to achieve just that. The good news: Obama will only arm just the "moderate" al Qaeda forces. So there is nothing to fear.
Iraq Update: Air Force Runs Out Of Missiles, ISIS Controls The Border; Shiite Clerics Threaten US TroopsSubmitted by Tyler Durden on 06/22/2014 19:07 -0400
Now that the Iraq proxy war scene is set, and as we reported on Friday, Prime Minister Maliki has become a pawn in yet another middle-east war between the west and the petrodollar (with both Saudi Arabia and the US making it clear Maliki has to go) and Russia (with Putin expressing his full support for the prime minister), events will likely unfold at an even faster pace. Sure enough, even this otherwise quiet weekend, in which the world is supposed to put wars on the backburner and focus on the world cup, is chock-full of Iraq news upates. Let's begin.
- Millions of Tons of Metals Stashed in Shadow Warehouses (WSJ)
- Moguls Rent South Dakota Addresses to Dodge Taxes Forever (BBG)
- Fastest Japan Inflation Since ’08 Stokes Wage Pressure (BBG)
- Thai crisis deepens as army chief hints at intervention (Reuters)
- Anti-Assad Lebanese ex-minister killed in Beirut bomb (Reuters)
- Foreigners Unload Turkey Bonds as Probe Tarnishes Erdogan Growth (BBG)
- Small ISS Change Shakes Up Boards: Tweak to Influential Shareholder Adviser's Recommendations Has Directors Rethinking Proposals (WSJ)
- Japan’s Nishimura Calls for Quick Corporate Tax Cut to Under 30% (BBG)
- Japan's Abe bets U.S. alliance, ratings can weather shrine visit (Reuters)
Of the nine passengers aboard the small Makani Kai Air plane flight that crashed off the shore of Molokai Wednesday night, eight survived. The lone fatality was Loretta Fuddy, infamous for her "I have seen the original records" confirmation of the long-form birth certificate of the US President in 2011. Fuddy, who was 65 years old and had served as Hawaii's state health director since January 2011, is described as "selfless, utterly dedicated, and committed" is a "terrible loss for the state".
A dozen years have passed. Memory doesn't fade. In some ways, the events remain as vivid today as they were that September morning.
- Detroit ‘Gut Kick’ Poses New Test for Long Suffering City (BBG)
- Florida lawmakers urge overhaul of 'Stand Your Ground' law (Reuters)
- Investors pour huge sums into US equity funds (FT)
- Snowden Standoff Threatens Obama-Putin Moscow Summit (BBG)
- China, U.S. companies' great hope, now a drag (Reuters)
- Morgan Stanley stock traders rebuild burned bridges (Reuters)
- Huawei spied for China, claims ex-CIA head Michael Hayden (FT)
- Gorilla Flipping Homes as Rebound Revives Rapid Trades (BBG)
- BRICS joint action at G20 summit may be wishful thinking (Reuters)
- J.P. Morgan Knew of Risks: Warning Flags Raised Two Years Ago About CIO (WSJ)
- Cyprus Poised to Seek Bailout within Days (FT)
- U.S. Exempts India, South Korea From Iran Oil Sanctions (Bloomberg) - so those countries who need Iran crude?
- Barroso Pushes EU Banking Union (FT)
- Hollande Set for Poll Victory (FT)
- Fed Says U.S. Wealth Fell 38.8% in 2007-2010 on Housing (Bloomberg)
- Fed Officials Amplify Concerns over Europe (Reuters)
- Fed's Lockhart Says Lower Yields Bolster Case for No New Action (Bloomberg)
On September 2 Goldman upgraded Textron to Conviction Buy ($23 PT) and provided the following catalysts as key items to keep an eye on:
year ago, each of Textron’s businesses were going the wrong way:
Corporate profits and the Industrial economy were rolling over, which
had negative implications for Cessna and Industrial, Financials were
facing severe challenges which had negative implications for TFC, and a
leadership change was about to take place in Washington with negative
implications for Defense and therefore Bell and Systems. Today,
we see the exact opposite occurring.
Unfortunately for Goldman's pie in the sky/conviction buy thesis what we really are seeing today is the opposite of the opposite, which comes to us via the following press release from Textron:
The company has
been in discussions with a large customer concerning the cancellation of
about $1.1 billion of jets it had on order with Cessna.
Cessna maker Textron, whose stock has gotten bombed over the past year after the very public bashing of any and all private jet purchases, might be in more hot water. After briefly making the press in relation to speculation that it could be an acquisition target, which subsequently turned out to be a large insider trading leak that subsequently led to the suicide of the alleged perpetrator, Textron is now being sued by the City of Roseville Employees' Retirement System for business condition misrepresentations.