Having panciked briefly on Friday night on news of a Turkish coup, which has since not only failed but been cast away as speculation rises that it was staged and designed to give Erdogan even more authoritarian power, markets have moved on and are now focusing on the main overnight event which was the surprising $32 billion bid by Japan's SoftBank for U.K.’s semiconductor giant ARM which has sent comparable semis higher in European trading and pushing the Stoxx Europe 600 Index up by 0.6%, after surging 3.2% last week. After sliding sharply on Friday, US equity futures are up 0.1% in early trading.
At the height of the attempt to overthrow Turkish President Tayyip Erdogan, the rebel pilots of two F-16 fighter jets had Erdogan's plane in their sights. And yet he was able to fly on. "At least two F-16s harassed Erdogan's plane while it was in the air and en route to Istanbul. They locked their radars on his plane and on two other F-16s protecting him. Why they didn't fire is a mystery."
Normally, when the head of the FBI under one President says something like "no reasonable prosecutor would bring such a case" as the FBI reported regarding Hillary Clinton's emails, that would be the end of the matter; but Clinton actually still isn’t off the prosecutorial hook of this criminal case, unless and until she becomes President herself.
The 29 year old ex-marine, Gavin Eugene Long, who ambushed and killed three unsuspecting Baton Rouge police officers on Sunday morning, hated those who did not share his skin-tone and harbored a particular hatred for the police. As revealed in the hours after the shootings, a Youtube account operated by Long under the handle I Am Cosmo where the alleged killer posted dozens of clips, provides insight into what motivated the young man to kill three police officers and wound three more on his 29th birthday.
Three police officers were shot to death and three others wounded in Baton Rouge on Sunday, after officers in Baton Rouge responded to a call of shots fired when they were attacked by at least one gunman. Baton Rouge Mayor Kip Holden said three officers had died in what he described as "an ambush-style deal." One suspect is dead and police said they are seeking more than one suspect.
Territorial disputes are a delicate thing… and potentially deadly as well. That’s why the U.S. is backing up its positions with an ever-increasing presence of warships in the South China Sea. China is very touchy about these territories, and unwilling to give up what they perceive as their waters, even as a UN tribunal just denied their claims and strengthened the U.S. hand. Indeed, the entire situation is combustible and very dangerous.
Norges Bank continues to hold rates at .5%, signaling an upward bias but willing to cut if needed, depending on unforeseen external shocks like BREXIT. In my opinion, they really don’t know what to do while the country heads for stagflation (simultaneous rising unemployment and inflation). They are in a “damned if they do and damned if they don’t situation.”
President Obama's "most transparent administration ever" is being accused of "failure by design" in the DoJ’s protocols for responding to public requests. The FOIA law states that agencies must "make reasonable efforts to search for the records in electronic form or format," but as The Guardian reports, a new lawsuit alleges DoJ intentionally conducts inadequate searches of its records using a decades-old computer system when queried by citizens looking for records that should be available to the public.
Moments ago, a Turkish government official said the commander of the critical Incirlik airbase, used by U.S.-led coalition jets to conduct bombing runs against the Islamic State, has been arrested. Meanwhile, Erdogan's "counter-coup" this time with the implicit blessing of all western powers, is picking up speed as some 6,000 people have been detained in a government crackdown on alleged coup plotters and government opponents.
Helicopter policies are not advocated in ‘a normal world’. They are however almost inevitable in the next recession. "Japan will be the flag bearer of fiscal stimulus.” Which will be sufficient to breath some inflationary spirit into the system. “But this is all febrile and can get over-turned by the slightest change in wind direction,” he said, tentative. “This will be the little inflation before the big helicopter-driven inflation.” But that will first require a crisis.
"It's absolutely insane that we have a president of the United States and a governor of Minnesota making the statements they made less than one day after the police-involved shootings," said an emotional Cleveland Detective Steve Loomis. "How the hell did we ever become the bad guys in this country? I cannot imagine how we got here. It's the irresponsible reporting of the media. And the irresponsible statements of people that are credible like the president of the United States."
JPMorgan has been appointed by the Italian government to work on plans to set up a bank to buy troubled loans from the country’s lenders at approximately 20% of face value. The gross notional size of Italy's Bad Bank #2 would be €50 billion. As part of JPM's plan, the government would acquire some of the bad loans at a price of 20 cents in the euro.
"Through life, behavior is reinforced by consequences. And since 2008, everything possible has been done to avoid the consequences... and now we've got a bunch of people now who are essentially paid to believe central banks...we will see all the unintended consequences of these actions come out when people want to hit a bid and there's not a bid there. It could get ugly."
Just hours after the latest deadly police shooting in the US claimed another 3 lives, and moments after the president of the Cleveland Police Patrolmen's Association, Steve Loomis, accused Obama of having blood on his hands, wondering "how the hell did we ever become the bad guys in this country? I cannot imagine how we got here. It's the irresponsible reporting of the media", Obama is about to do what he does best: deliver another statement.
The last few weeks have seen Hillary Clinton's lead over Donald Trump reduced notably from over 8pts to below 3pts as her poll numbers tumbled post-Comey. While variance (discussed here) across the polls remains yuuge, Clinton remains the clear winner among African-Americans and younger Americans while Trump leads among whites and men; but as one pollster noted with regard the unfavorables, "Let me summarize the poll into four little words: 'They hate them both'."
Status quo, as our generation know it, established in 1945 has plodded along ever since. It is true that it have had near death experiences several times, especially in August 1971 when the world almost lost faith in the global reserve currency and in 2008 when the fractional reserve Ponzi nearly consumed itself. While the recent Brexit vote seem to be just another near death experience we believe it says something more fundamental about the world.