Putin Accuses Obama Of Leaking Flight Details To Turkey After Russia Releases Video Of S-400 SAM Deployment In Syria
by Zero Hedge - November 26th, 2015 8:25 pm
Submitted by Tyler Durden.
As reported two days ago, one of the first decisions a very angry Russia took in the aftermath of the shooting down of its Su-24 by a Turkish F-16 was to dispatch a Moskva guided-missile cruiser off the coast of Syria to provide air cover for its jets operating near Latakia, as well as send an unknown number of ultramodern S-400 (or SA-21 Growler in NATO designation) SAM batteries to Latakia to make sure that the tragic incident from Tuesday never repeats itself by sending Turkey a very clear message that the next time a Turkish warplane engages a Russian jet, Russia will immediate retaliate using ground forces.
Earlier today, Russia made a very explicit demonstration of the deployment of at least two S-400 batteries at Syria’s Khmeimim airbase, with the Russian Ministry of Defense promptly publicizing the arrival with the following clip.
With a range of 250 miles, the S-400 could easily strike Turkish targets, and as the map below shows, Russia could even take down targets over northern Israel. As cited by the Independent, Nick de Larrinaga, Europe editor of the defense magazine IHS Jane’s Defense Weekly, said it would be “a significant increase” in the reach of Russian air-defense capacities. “The message that the Russians are trying to send is that they’re capable of defending themselves in Syria, should the situation escalate.”
Needless to say, the US was not enthused and earlier today the US embassy in Moscow said that the “Russian deployment of the S-400 air-defense system to Syria won’t aid the fight against the Islamic State, with the US diplomat adding that the US is hopeful Russia won’t use the system to target planes flown by international coalition since Islamic State doesn’t have air force.” Clearly a warning to Putin not to dare use the rockets against Turkish (or other coalition) jets.
So what is Putin’s intention by escalating the military deployment of Russian weapons in Syria? Conveniently he explained his thinking just a few hours ago during his press conference with Francois Hollande. In answering a question by a reporter from French Le Monde, Putin said the following:
“The S-400 is an air defense system. The reason we didn’t have the system in Syria is because we thought our planes were flying at high
by ilene - November 26th, 2015 8:02 pm
The brutal tragedy of at least one KaloBios short seller was first documented a week ago when we noted the margin call massacre that befell "novice" trader Joe Campbell, who went to bed with a $35K short on Wednesday and woke up with a $106 margin call the next morning after it was revealed that a "consortium" led by Martin Shkreli had taken an unknown stake in heretofore insolvent KBIO.
However, the story did not end there because the very next day we got new information that Shkreli had not bought just any amount of KBIO shares but a whopping 70%, which got us thinking: Is the "most hated man in America" contemplating to unleash a Volkswagen scenario, in which he has acquired enough shares to leave more shorts outstanding than there is actual float, and then one day to simply pull all the borrow by no longer lending out shares to potential shorters.
This is what we said last Friday:
In other words, Shkreli's consortium had acquired 70% of the company, and should they decide to pull the borrow, on the odd chance that the short interest had soared to above 30%, KBIO – which until a few days ago – suddenly has the potential to become the next Volkswagen: a company which has more shares short than there is float available to cover them.
What happens if Shkreli's plan is indeed to rerun the "Volkswagen" scenario and unleash an epic short squeeze that sends the price of the company into the stratosphere, unlinked from any fundamentals, but merely soaring ever higher as desperate shorts pay any price just to get out.
We hope to find out as suddenly this until recently bankrupt company whose price has exploded in the past two days, has become not only a poster child for everything broken and manipulated with the market (think 2014's CYNK one year forward) but has the market following with morbid fascination to find out how the tragicomedy of "Shkreli vs the Shorters" concludes.
And then two days ago, when it was still unclear just what Shkreli's intentions are, but when the stock had already soared well into the $40-range, we…
by Zero Hedge - November 26th, 2015 7:55 pm
Russia's Sergey Lavrov is not one foreign minister known to mince his words. Just earlier today, 24 hours after a Russian plane was brought down by the country whose president three years ago said "a short-term border violation can never be a pretext for an attack", had this to say: "We have serious doubts this was an unintended incident and believe this is a planned provocation" by Turkey.
But even that was tame compared to what Lavrov said to his Turkish counterparty Mevlut Cavusoglu earlier today during a phone call between the two (Lavrov who was supposed to travel to Turkey has since canceled such plans).
As Sputnik transcribes, according to a press release from Russia’s Ministry of Foreign Affairs, Lavrov pointed out that, "by shooting down a Russian plane on a counter-terrorist mission of the Russian Aerospace Force in Syria, and one that did not violate Turkey’s airspace, the Turkish government has in effect sided with ISIS."
It was in this context when Lavrov added that "Turkey’s actions appear premeditated, planned, and undertaken with a specific objective."
More importantly, Lavrov pointed to Turkey’s role in the propping up the terror network through the oil trade. Per the Russian statement:
"The Russian Minister reminded his counterpart about Turkey’s involvement in the ISIS’ illegal trade in oil, which is transported via the area where the Russian plane was shot down, and about the terrorist infrastructure, arms and munitions depots and control centers that are also located there."
Others reaffirmed Lavrov's stance, such as retired French General Dominique Trinquand, who said that "Turkey is either not fighting ISIL at all or very little, and does not interfere with different types of smuggling that takes place on its border, be it oil, phosphate, cotton or people," he said.
The reason we find this line of questioning fascinating is that just last week in the aftermath of the French terror attack but long before the Turkish downing of the Russian jet, we wrote about "The Most Important Question About ISIS That Nobody Is Asking" in which we asked who is the one "breaching every known law of funding terrorism when buying ISIS crude, almost certainly with the tacit approval by various…
by Zero Hedge - November 26th, 2015 7:15 pm
Submitted by Tyler Durden.
Hot on the heels of the biggest collapse in Australian Capex ever, and just as we predicted back in 2012, we thought it about time to once again re-visit – Godot-like – the never-ending wait for 'recovery' (or ongoing crash) in Capital Expenditure around the world.
Back in 2012 we accurately predicted that in the Brave New Normal World, where zero cost debt-issuance is used to immediately fund stock buybacks instead of being reinvested in growth and expansion, in the process boosting management pay through equity-performance linked option payout structures, that with every passing year CapEx spending would decline first in relative then in absolute terms, even as free cash flow use of funds is spent on other "here-and-now" shareholder-friendly activities such as buybacks and dividends would grow exponentially.
And yet companies which have no choice but to continue their existence, even if they are forced to pay out all incremental cash to their loud-mouthed shareholders simply because there really is no global economic growth which can soak up the incremental growth spending, they still spend money on (mostly) maintenance and (to a tiny extent) growth capital spending.
So for those curious where this spending ends up (because everyone knows where dividends and buybacks go), here is a global heatmap of all capex spending broken down by region and segment:
As Goldman so succinctly explains, this is not about to turn around anytime soon…
Our long-held bearish view on capex hinges on several overlapping factors:
- the aftermath of China’s huge investment phase and the resultant overcapacity;
- global growth becoming less capital-intensive;
- the ubiquity of technology (substituting hardware capex for software opex, digitisation of widgets, optimising utilising and rousing dormant capacity); and
- persistent uncertainty (around regulation, obsolescence risk and new competitors, both cross-border and cross-sector).
by Zero Hedge - November 26th, 2015 6:50 pm
Submitted by EconMatters.
One big news widely reported in Taiwan right now is that the national flag of the Republic of China (R.O.C. Taiwan) appears on ISIS web site video. Above is a screenshot of the video with Taiwan’s flag prominently displayed along side that of the U.S. and U.K. The flags are supposedly in alphabetical order by country name. The video was posted on ISIS web site on Wednesday, Nov. 25, 2015.
According to a partial video on a Taiwan TV news show, ISIS also sends this errie message:
Our number only increases with faith. And we are counting your banners, which our prophet says when it reaches 80, then the Blaze of War will find you.
You might wonder how ISIS came as far as seeing Taiwan as an equal threat as the U.S.? Taiwan’s news media linked ISIS’s sudden recognition of Taiwan to a statement made by U.S. President Obama at an Association of Southeast Asian Nations (ASEAN) summit in Malaysia last week. Obama said that Taiwan was one of the Asia-Pacific countries in a coalition against ISIS.
It is true that Taiwan’s military and Special Forces have heavy American military DNA. Due to the constant threat from China across a narrow straint, Taiwan has relatively heavy military defense (for a small island). A lot of Taiwan’s defense miliary technology is supplied by the U.S. companies. Taiwan regularly sends military personnel to train in the U.S. while Taiwan’s media reported U.S. Navy SEAL also sends trainers every so often to train one of the island’s elite special forces units.
In response to Obama’s latest ‘recognition’, Taiwan governmnet simply said its current focus is on providing humanitarian assistance (i.e., We are NOT involved with Obama’s ‘Coalition’). Indeed, Taiwan’s involvemetn with the chaos in the Middle East has been humanitarian aid to the region such as donating 300 prefabricated houses and nearly US$10 million in medical supplies to the refugees.
This stance is understandable as Taiwan had a ISIS panic attack when in February 2015, ISIS official Twitter channel twitted a picture of what looks like Taipei 101 Building (never confirmed) under atack. This out-of-nowhere recognition by ISIS has prompted the Taiwan government to step…
by Zero Hedge - November 26th, 2015 6:30 pm
Submitted by Tyler Durden.
When I was a boy, a carnival would come through town annually, with a Ferris wheel, a merry-go-round and, of course, a midway: rows of makeshift stalls where fairgoers might win a prize by throwing a ball at weighted milk bottles, shooting a rifle at metal ducks, or pitching pennies at small glass bowls.
If you were to succeed in any of the above, the standard prize was a small stuffed bear (Although many large bears were displayed, generally, the few actual penny-pitch winners only succeeded in winning one of the smaller bears). Still, to a child’s mind, even this was cause for celebration, as you went home a winner.
I was one of the lucky ones. I actually did take home a prize on one occasion. I had been going to the fair faithfully every year and would save up my pennies for weeks in advance, so I’d have plenty to invest in bear futures on the midway.
It was only a day or two after I brought home my prize that I realised that I had spent several dollars in pennies winning a stuffed bear that probably (back then, in the 1950’s) only cost fifty cents to produce and, after I possessed it, actually had zero value to me…I had no use for a cheap stuffed bear.
So, here’s the penny-pitch progression:
- Promise of significant benefits for what seems a minimal initial investment.
- Excitement builds with continued investment.
- Elation when a prize is actually won.
- Realisation that the prize is of less actual value than anticipated.
- Realisation that the aggregate cost of the prize was so high that the money would have been better spent on something else.
In 1993, Europeans were invited to the new EU Carnival. In addition to the rides, there would be a midway: a variety of benefits such as open borders, a common currency and the opportunity to work in other countries more easily than before. Most European countries joined, even though, in most cases, only a minority of registered voters actually declared their desire for membership. The midway organisers (the political leaders) were all in favour and virtually everyone joined.
by Zero Hedge - November 26th, 2015 5:45 pm
Submitted by Tyler Durden.
With geologists having confirmed the link between fracking and earthquakes in Oklahoma (and energy executives trying to get those geologists fired), the news this week that The Sooner State leads the world in seismic activity will likely see more uproar from residents.. and more lobbying dollars spent to 'calm' the politicians. As KFOR reports, this year, more than 5,000 earthquakes have been recorded and experts say earthquakes in Oklahoma will likely increase in magnitude over time warning that it's only a matter of time before the state gets a big one that will change life for those of living there.
"It's unclear exactly how high we might go, and the predictions are upper 5-6 range for most things that I've seen," Todd Halihan, a researcher from OSU, told KFOR NewsChannel4,
Halihan studies these quakes; his expertise is hydrogeophysics.
"Underneath any of these urban areas, whether it's Stillwater, Cushing, Oklahoma City, Guthrie, these cities are not built to seismic standards. They're not in L.A." Halihan said.
"We have a lot of buildings that were built with earthquakes not even on the radar screen, so we would expect probably a fair bit of damage," Halihan said.
"We're not out ahead of it yet, we still have fires burning, and we're trying to get ahead of those fires, but we're not there yet," Matt Skinner, spokesperson for the Oklahoma Corporation Commission, said.
"The changing point I think was the Prague quake, because as a result of that, we had a hearing as to how we should proceed in the Prague area for oil and gas exploration," Skinner says.
Many people believe the commission is sitting back and watching the quakes happen, but they say that's not the case.
And now this year…
NewsChannel cameras were given a rare look at the work of the commission.
"March of this year, we issued a directive that applied to over 300 disposal wells that dispose into the Arbuckle formation that said prove that you are not in the basement, in other words, you haven't drilled too deep," Skinner says. "So the idea was to dial back the total volume for the area that's going down to a pre-seismicity level."
We wondered why
by Zero Hedge - November 26th, 2015 5:00 pm
Submitted by Tyler Durden.
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
The deplorable state of America’s college campuses, overrun by intolerant, censorship happy cry bullies, has been a key topic of discussion here as of late.
The following video is an excellent lecture on the topic by Jonathan Haidt, Professor of Ethical Leadership at New York University’s Stern School of Business.
Take the 30 minutes in between mouthfuls of turkey and share with your families.
For related articles, see:
by Zero Hedge - November 26th, 2015 4:40 pm
Submitted by Tyler Durden.
In the nearly six months since summer elections saw AKP lose its absolute parliamentary majority in Turkey after a strong showing at the ballot box by the pro-Kurdish HDP, it’s been interesting to watch how the central bank has reacted (or, more appropriately, “not” reacted) to periods of weakness in the lira.
Back in August, when things were falling apart in earnest, the cental bank attempted to explain how Turkey planned to deal with the normalization of DM monetary policy by releasing a “road map.” No one was impressed as the “plan” was decidedly short on specifics. As Citi noted at the time, “the so-called road map lacks a well-defined timetable and analytical discussion.”
Ultimately, Ankara decided to just lay it out there when, on August 19, the central bank said it would not be hiking rates until the Fed liftoff. “Now that the CBT has left rates unchanged and announced that it will largely rely on selling more FX to tame volatility in FX market while waiting Fed to hike first, TRY still remains a fair game,” BofAML said, adding that “CBT has announced its long-awaited road-map for the normalisation of the monetary policy and we believe it’s likely to disappoint the markets because it’s too gradual.”
Yes, “too gradual” which is why we said the following just two weeks ago:
One important thing to note about this particular situation, is that Turkey has been reluctant to hike in order to arrest the lira’s decline. In fact, the central bank has on any number of occasions explicitly stated that it will follow the Fed. But when, back in August, Turkey attempted to release a “roadmap” of how its central bank intended to respond to policy normalization by DM central banks, the market wasn’t buying it, suggesting that if the Fed hikes, it may not be as simple as simpy saying “oh, ok, we’ll hike too.” That is, they may find themselves unable to catch up, portending still more lira weakness.”
Now that Turkey is apparently trying to start a global conflict by becoming the first NATO member to shoot down a Russian jet since the Cold War, you can expect further lira weakness. Of course we predicted that too. From earlier this month:
And for anyone who
by Zero Hedge - November 26th, 2015 4:03 pm
Submitted by Tyler Durden.
Any time there is a war and countless people in one, two or more nations die for some ideological, religious, ethnic, cultural or nationalistic “reason”, two entities benefit: those who supply the weapons and those who supply the loans to buy the weapons.
And when it comes to supplying weapons to the world, in both absolute dollar and relative (as a % of GDP) terms, nobody even comes close to that paragon of democratic values, the United States of America.
To be sure, back in May we wrote “How You “Boost” GDP: US Sells Over $4 Billion In Weapons To Israel, Iran And Saudi Arabia” when, as the title suggested, we explained how the Great US “democracy” was spreading not only the greatest virtues of democracy to the middle-east, but every possible caliber of weapons to go with it. For a hefty price of course.
But not even we had any idea just how massive the “bumper” 2015 would be for the US military-industrial complex.
As it turns out, with many suggesting the world, already gripped in a global terrorism frenzy courtesy of the CIA-created “Islamic State”, is on the verge of World War III (and with a NATO power bringing down a Russian fighter jet for the first time in over 60 years one can see where they get that idea) the result has been an unprecedented surge in demand for modern weapons of all shapes and sizes… made in the US.
Demand so high, in fact, that the US simply can’t keep up.
According to Reuters, the U.S. government is working hard to ensure quicker processing of U.S. foreign arms sales, which surged 36 percent to $46.6 billion in fiscal 2015 and look set to remain strong in coming years, a top Pentagon official said.
Well of course demand will remain strong: after all that’s what the CIA is for – to destabilize the world, to install puppet governments and to assure that the shareholders of Lockheed, Raytheon, Boeing and General Dynamics have year after record year.
Here is why the US loves a “contained” world war:
“Projections are still strong,” Vice Admiral Joe Rixey, who heads the Pentagon’s Defense Security Cooperation Agency (DSCA), told Reuters in an interview late on Monday.