Now that Athens' Syntagma square has been put on indefinite hiatus since everyone has finally figured out the game between Greece and Athens (Greece grudgingly promises to reform but doesn't, at the same time Troika grudgingly threatens to cut off funding for Greece unless reforms are implemented but doesn't... even as the fate of the people gets worse), a new square has emerged as the focal point in the fight for (and against) Europe - Kiev's Independence Square.
Putin Announces Russia Not Involved In Ukraine Unrest, Says Local Events Are Not A "Revolution" - Live StreamSubmitted by Tyler Durden on 12/02/2013 12:27 -0500
While events in the Ukraine continue down a very slippery path, and just a few short minutes ago the Prime Minister Azarov fired the Kiev chief of Police who got into hot water over the weekend for various clips showing Police brutality in dealing with demonstrators, one specific party that is keeping a very close eye on the ongoing developments is Russian leader Vladimir Putin who scored a major victory over Europe when he managed to realign the Ukraine away from the EU and sign a trade pact with the "European bread basket" nation, an event which according to the prevailing narrative the main reason for the surge in civil discontent as hundreds of thousands took to the streets over the weekend. As such, it is important to keep track of news not only from Kiev but also from Moscow. One such update which came moments ago was the following:
- President Vladimir Putin has said Russia respects any choice made by Ukraine, Dmitry Peskov tells Bloomberg in Yerevan, Armenia.
- Russia not in talks with Ukraine on loans, bailout
- Russia not involved in current unrest in Ukraine: Peskov
This came just hours after Putin stated that events unfolding in Ukraine should not be described as a revolution, but were rather more reminiscent of a “pogrom.”
While moderate recovery in growth and inflation is BofAML's rates team's base case, there are numerous risks to that forecast. The risk of tapering is already quite well known and they suspect it may not result in the significant market-moving event many expect when it actually happens; however, the following downside and upside risks threaten BofAML's central scenarios for 2014 as well.
The following Top Ten Market Themes, represent the broad list of macro themes from Goldman Sachs' economic outlook that they think will dominate markets in 2014.
- Showtime for the US/DM Recovery
- Forward guidance harder in an above-trend world
- Earn the DM equity risk premium, hedge the risk
- Good carry, bad carry
- The race to the exit kicks off
- Decision time for the ‘high-flyers’
- Still not your older brother’s EM...
- ...but EM differentiation to continue
- Commodity downside risks grow
- Stable China may be good enough
They summarize their positive growth expectations: if and when the period of stability will give way to bigger directional moves largely depends on how re-accelerating growth forces the hands of central banks to move ahead of everybody else. And, in practice, that boils down to the question of whether the Fed will be able to prevent the short end from selling off; i.e. it's all about the Fed.
- J.P. Morgan, U.S. Reach Historic Settlement (WSJ)
- OECD cuts global growth forecast (AP)
- Guess the profit margin: Wal-Mart Touts $98 TV as Holiday Seen Weakest Since 2009 (BBG)
- Republicans defy threat, block another Obama judicial pick (Reuters)
- Fed Ponders How to Temper Tapering Without Rate Increase (BBG)
- Wall Street uses 'merchant' workaround to cling to commodity assets (Reuters)
- PBOC to ‘Basically’ End Normal Yuan Intervention, Zhou Says (BBG)
- Italy’s leader warns Germany of rise of anti-European sentiment (FT)
- Yellen Nomination for Fed Chairman to Get Vote This Week (BBG)
- As U.S. default threatened, banks took extraordinary steps (Reuters)
- NSA vowed repeatedly to fix its collection errors (AP)
Venezuela's relatively new government has adopted arguably the best and brightest socialist policy wielded by both Hollande and Obama, namely the "fairness doctrine." However, in this case it is not about what is a "fair" tax for the wealthy (as taxes in Venezuela's socialist paradise will hardly do much to build up the desperately needed foreign currency reserves), but what is a "fair" price for electronic appliances like flat screen TVs, toasters, and ACs. The result is that Maduro's government now determines what equilibrium pricing should be. The reason for this latest socialist victory over the tyranny of supply and demand is that overnight Venezuela's President Nicolas Maduro ordered the "occupation" of a chain of electronic goods stores in a crackdown on what the socialist government views as price-gouging hobbling the country's economy. Various managers of the five-store, 500-employee Daka chain have been arrested, and the company will now be forced to sell products at "fair prices," Maduro said late on Friday.
Following the slaying of two members of Greece's far-rght Golden-Dawn party (and wounding of a third) on Friday evening, the Greek government’s crackdown on the country’s 'extremist' party has revived a vexing question that seemed to have disappeared with the Cold War’s end: Is there a place within liberal democracies for apparently anti-democratic parties?
- Republican Civil War Erupts: Business Groups v. Tea Party (BBG)
- Budget fight leaves Boehner 'damaged' but still standing (Reuters)
- Madoff Was Like a God, Wizard of Oz, Lawyers Tell Jury (BBG) - just like Bernanke
- Republicans press U.S. officials over Obamacare snags (Reuters)
- Brilliant: Fed Unlikely to Trim Bond Buying in October (Hilsenrath)
- More brilliant: Fed could taper as early as December (FT)
- Russia Roofing Billionaires Seen Among Country’s Youngest (BBG)
- Ford's Mulally won't dismiss Boeing, Microsoft speculation (Reuters)
- China reverses first-half slowdown (FT)
- NY Fed’s Fired Goldman Examiner Makes Weird Case (BBG)
Lies, Damn Lies and the EU Confiscation Of Greek Sovereignty Masked As The Bailout That Never HappenedSubmitted by Reggie Middleton on 10/10/2013 09:25 -0500
Two bailouts, a default and a half later, it should be obvious that Greece was stripped of its sovereignty for nothing. Should I say "I told you so"???
The rise of Tomahawk force began in 1983 during the Reagan buildup, but the demise of the Evil Empire did not slow down its development one bit. By the end of the century the United States had about 150 surface ships and attack submarines that could launch these deadly cruise missiles and an inventory of nearly 5,000 missiles. Tomahawks have a range of seven hundred miles. This means that from their offshore platforms they can reach three-fourths of the world’s population. And during the last two decades they have been used in just this “stand-off” manner against targets in Iraq, Bosnia, Afghanistan, Sudan, Libya, and others—teaching presidents that they could meddle freely without getting bloodied.
Obama cancels meeting with Putin in Moscow amid tensions over NSA leaker Edward Snowden. http://t.co/Wdy2SYXvSt
— WSJ Breaking News (@WSJbreakingnews) August 7, 2013
Plunging Chinese manufacturing and an 11 month low PMI got you down? Don't worry: there's a Europe for that, which overnight reported that manufacturing and service PMI in Germany and, don't laugh, France soared far above expectations (German Mfg and Services PMIs of 50.3 and 52.5, up from 48.6 and 50.4, and above expectations of 49.2 and 50.8; French Mfg and Services PMIs of 48.3 and 49.8, up from 47.2 and 48.4 and an 11 and 17 month high, respectively, blowing away expectations of 47.6 and 48.8). The result was a composite Eurozone Manufacturing PMI of 50.1, above 50 for the first time since February of 2012, up from 48.8 and at a 24 month high - reporting the largest monthly increase in output sunce June 2011, as well as a composite Services PMI of 49.6, up from 48.3, and an 18 month high. In other words, European Composite PMI is expanding (above 50) for the first time since January 2012.
In an effort to soften the blow to our American readers, here is an analogy: You know when you move out of your parents’ house and live on your own, how you start hanging out with your friends’ families and you realize that actually, your family was a little screwed up? Stuff you always assumed was normal your entire childhood, it turns out was pretty weird and may have actually screwed you up a little bit. The point is we don’t really get perspective on what’s close to us until we spend time away from it. Just like you didn’t realize the weird quirks and nuances of your family until you left and spent time with others, the same is true for country and culture. You often don’t see what’s messed up about your country and culture until you step outside of it. And to our foreign readers, get your necks ready, because this is going to be a nod-a-thon.
"I am so old that I can remember when most of the people promoting race hate were white;" Thomas Sowell begins in this poignant essay amid the protests across the nation this evening. Apparently other Americans also recognize that the sources of racism are different today from what they were in the past. According to a recent Rasmussen poll, 31 percent of blacks think that most blacks are racists, while 24 percent of blacks think that most whites are racist. The time is long overdue to stop looking for progress through racial or ethnic leaders. Such leaders have too many incentives to promote polarizing attitudes and actions that are counterproductive for minorities and disastrous for the country.
Back in 2010 we started an annual series looking at the (re)distribution in the wealth of nations and social classes. What we found then (and what the media keeps rediscovering year after year to its great surprise) is that as a result of global central bank policy, the rich got richer, and the poor kept on getting poorer, even though as we predicted the global political powers would, at least superficially, seek to enforce policies that aimed to reverse this wealth redistribution from the poor to the rich (a doomed policy as the world's legislative powers are largely in the lobby pocket of the world's wealthiest who needless to say are less then willing to enact laws that reduce their wealth and leverage). Now that the topic of wealth distribution (or rather concentration) is once again in vogue, below we present the latest such update looking at a global portrait of household wealth. The bottom line: 29 million, or 0.6% of those with any actual assets under their name, own $87.4 trillion, or 39.3% of all global assets.