02/11/2015 – 11:30
As Putin arrives at the Minsk Summit, his Deputy Foreign Minister makes the Russian position clear to Washington:
*U.S. ARMS SUPPLIES TO UKRAINE WILL HAVE DRAMATIC OUTCOME: IFX
*RUSSIA WILL NOT IGNORE U.S. ARMS SUPPLIES TO UKRAINE: IFX
Hardly what Merkel or Hollande wants to hear?
02/11/2015 – 08:59
As the WSJ noted, the “world’s top finance leaders on Tuesday in effect backed currency depreciation as a tool for promoting growth by signaling strong support for aggressive easy-money policies aimed at boosting the fragile global economy.” Spot the person who just realized it’s not going to work.
02/11/2015 – 13:15
As expected following yesterday’s scorching 3 Year bond auction in whichIndirect, aka official foreign, demand soared to the highest in 5 years, today the trend of relentless demand from abroad for US yields continued, when the Treasury sold $21 billion in 10 Year pa
per, which not only priced 1.4 bps though the When Issued 2.014%, hitting the high yield precisely at 2.000%, but saw the highest Indirect Bid, of 59.5%, since December of 2011.
Obama May Attack ISIS In Any Country He Chooses, Deploy Ground Troops On A Whim, Delay Afghanistan Pull Out
02/11/2015 – 13:03
The Nobel peace prize-winning president has been busy today: not only did he already petition Congress earlier to declare war on the Islamic State, a non-country which technically doesn’t exist, but now he plans to expands his “war powers” to any other place in the world. From Reuters:
- MILITARY AUTHORIZATION BILL WOULD PRESERVE PRESIDENT’S ABILITY TO ORDER OPERATIONS AGAINST ISLAMIC STATE IN COUNTRIES OTHER THAN IRAQ, SYRIA – WHITE HOUSE SPOKESMAN
- WHITE HOUSE SAYS COMBAT BOOTS ON THE GROUND MAY BE USED FOR HOSTAGE RESCUE OPERATIONS
- OBAMA NOT RULING OUT DEPLOYING COMBAT TROOPS ON GROUND TO ASSIST AIR STRIKES AGAINST ISLAMIC STATE, IF PENTAGON RECOMMENDS IT -WHITE HOUSE
And not only that: also according to Reuters ,Obama is considering a request from Afghan President Ashraf Ghani to slow the pace of the withdrawal of U.S. troops in Afghanistan, a senior administration official said on Wednesday.
02/11/2015 – 12:44
There have been ZERO times that the Federal Reserve has entered into a rate hiking campaign that did not have a negative consequence…
02/11/2015 – 12:26While US equities suggest all is well and Greece is contained, the less mainstream-news indicators of European stress are starting to flash orangey/red as the surge in spreads across European peripheral bonds since the Greek election suggests Q€ is being over-run.Italian, Spanish, and Portuguese bond spreads are all wider on the year now and up 25-30bps from ther Greek Election (fastest rise in months). Greek bank bonds and stocks remain near record lows and even broad European stock indices are struggling to hold gains post-election.
02/11/2015 – 12:16
We previously noted the extreme spike in S&P Energy sector stock valuations (and the fact that energy sector earnings will have to surge by 70% in order for this exuberant to be ‘discounted’ correctly). Now Deutsche Bank has run the numbers and warns that in order for S&P Energy to now be trading at what we would consider a fair ~15x normalized EPS, $70/bbl oil must return and be sustained by 2H15.
02/11/2015 – 11:37
A current Bank of America employee has made a number of whistleblower submissions to the U.S. Securities and Exchange Commission about the role played by the U.S. banking subsidiary in financing dividend-arbitrage trades: trades which used taxpayer-backed funds to allow hedge funds to avoid paying taxes. The employee’s submissions allege that Bank of America’s London-based Merrill Lynch International unit has extended “extreme levels of BANA leverage” to fund “increasingly aggressive and reckless” tax-avoidance trades. The submissions said the practices risked causing the bank “serious financial and reputational damage.”
02/11/2015 – 11:29
The so-called “Normandy Quartet” of Merkel, Hollande, Poroshenko, and Putin are arriving for the latest/final round of Ukraine peace talks… Poroshenko warns “things in east Ukraine will “go haywire” if Minsk talks fall through.”
02/11/2015 – 11:06There’s nothing good left from the initial idea that gave birth to the EU. It’s devolved into something utterly ugly, in which fat Germans driving their Mercs and Beamers down the autobahn can yell at their car stereos that those lazy Greeks must pay their due – which stems from Merkel et al. bailing out Deutsche Bank’s insanely outsized derivatives portfolios. The whole thing is so morally bankrupt, it’s really insane that we’re still trying to have a serious discussion about it. The whole thing, the entire global banking system, is as morally bankrupt as it is financially. So far, all the EU has (anyone notice how silent the IMF has been?) is hubris, bluster and chest-thumping. They play politicians, but Syriza plays real life.