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Warren Buffett’s BofA Dump-A-Thon Tops $10 Billion, Nears Key 10% Non-Reporting Level

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Warren Buffett’s BofA Dump-A-Thon Tops $10 Billion, Nears Key 10% Non-Reporting Level

94-year-old Warren Buffett’s Berkshire Hathaway has been on a multi-month dump-a-thon of Bank of America shares. The reason for the abrupt selling, which began in mid-July, has yet to be officially disclosed but should be viewed as an ominous sign that the ‘Oracle of Omaha’ foresees economic trouble ahead. 

The latest Bloomberg data shows that Berkshire’s total proceeds from selling BofA shares have now topped a whopping $10bln.

Traders at Berkshire began paring down the massive investment in mid-July, pressuring the bank’s shares ever since. In the last three trading days, Berkshire sold $383mln worth of shares. 

The latest selling is the first round of Berkshire selling BofA shares since right before the pandemic.

Even with all the selling, Berkshire’s BofA position is still massive, totaling $31.35bln. 

Berkshire is still the largest shareholder of the bank.

Buffett’s stake in BofA has now dwindled to 10.1%, meaning just a bit more selling would drop it below the 10% regulatory threshold. Once that threshold is reached, Berkshire will no longer be required to report additional sales to the SEC.

We offered some theories about possible motives behind Buffett’s BofA dumping, including an overvalued market, recession risk, consumer downturn, and the possibility that a US regulatory probe into anti-money laundering surrounding fentanyl cash laundering could expand to major US banks. 

Buffett’s cash pile has also soared to record highs. 

Hmm.

Buffett also dumped half its Apple shares. 

The bottom line is that unlike in October 2008, Buffett led the call to “Buy American“…

… this time, he is selling American at a worrisome pace. 

Tyler Durden
Tue, 10/08/2024 – 09:05

Milton Downgraded To Dangerous Cat. 4 As Crosshairs Locked On Florida’s Gulf Coast

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Milton Downgraded To Dangerous Cat. 4 As Crosshairs Locked On Florida’s Gulf Coast

Milton weakened overnight to a Category 4 hurricane. The storm is an “extremely dangerous” threat as it churns near the Yucatan Peninsula, barreling toward Florida’s Gulf Coast this AM, with landfall impacts expected on Wednseday night or early Thursday morning. 

According to the National Hurricane Center’s 0500 ET update, Milton was downgraded from a Cat. 5 to Cat. 4, with maximum winds up to 155 mph while traversing the warm waters of the Gulf of Mexico at 12 mph with an east-northeast heading.  

The latest storm data shows Milton is completing an eyewall replacement cycle. This means the strongest winds extend further out from the center as the eye grows in size. 

The Weather Channel’s Jim Cantore warned on X, “Focus on the surge NOT the category!”

NHC’s peak storm surge forecast shows Milton could generate a wall of water as high as 15 feet across Tampa Bay, Sarasota, and Venice. 

Computer models are shifting south with landfall impacts from Sarasota to Port Charlotte instead of the initial forecasts for Tampa. 

More trajectory models. 

On Sunday, Florida launched the largest evacuation since Hurricane Irma in 2017. Hurricane warnings have been posted for the region. 

Tyler Durden
Tue, 10/08/2024 – 06:55

The German Auto Industry Suffers Another Smackdown Blow

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The German Auto Industry Suffers Another Smackdown Blow

Authored by Mike Shedlock via MishTalk.com,

Unlike US auto manufacturers, Germany’s counterparts did not want tariffs on China’s EV. Germany lost the vote in the European Council…

EU Votes for Tariffs on Chinese EVs

This story may seem counteractive but Germany does not want the EU to place tariffs on Chinese EVs.

This is because Germany is still dependent on its internal combustion engines for exports and China will undoubtedly retaliate.

TheDriven reports EU Votes for China EV Tariffs Despite Protests from Germany and Others.

Euronews reported that just under half (12) of the members states abstained from the vote, with 10 voting in favour and five voting against including Germany, Hungary, Malta, Slovenia and Slovakia.

Despite the vote, EU-China negotiations can continue until October 30 with the possibility of finding an agreement to prevent the tariffs. China attacked the probe from the very outset, labelling it a “naked protectionist act,” an denying the existence of any subsidies, wrote Euronews.

Germany sought to block the proposal to protect its car industry, which relied on China for a third of its sales last year, from any Chinese retaliatory measures. To block the proposal Germany, would have needed to win the support of another 14 member states for a so-called qualified majority, comprising 65 percent of the EU’s population.

Germany is not currently on track to meet its target of having 15 million electric cars on its roads by 2030, despite being the world’s second largest producer of electric cars in 2023.

Brussels Breaks Impasse

EuroNews reports Brussels Breaks Impasse after EU Countries Fail to Agree on Chinese EV Tariffs

European Union countries failed to agree on whether to slap China-made electric vehicles (EVs) with steeper tariffs during a closely watched vote that ended with too many abstentions, forcing the European Commission to overcome the political impasse and push its proposal over the finish line.

The outcome of Friday’s vote was not publicly available, although several diplomats told Euronews how each member state positioned itself:

  • 10 were in favour: Bulgaria, Denmark, Estonia, France, Ireland, Italy, Lithuania, Latvia, the Netherlands and Poland. (45.99% of the EU population)

  • 12 abstained: Belgium, the Czech Republic, Greece, Spain, Croatia, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden and Finland. (31.36%)

  • Five were against: Germany, Hungary, Malta, Slovenia and Slovakia. (22.65%)

The Commission “should not trigger a trade war. We need a negotiated solution,” Germany’s Finance Minister Christian Lindner said in reaction to the vote.

The dispute around Chinese EVs marked a rare moment where the [European Council] president, [Ursula von der Leyen] a German native, defended a position strenuously opposed by her home country.

The political fiasco could reverberate until the country holds its federal election in September 2025.

Only 45.99 percent of the EU was in favor of tariffs but the European Council rammed through the tariffs over Germany’s objection.

Tariffs are one of the areas where changes do not have to be unanimous. But 45.99 percent is quite the ramrod.

Of those voting for vs against it was 45.99 percent to 22.65 percent a 67 percent margin to enact.

EU Tariffs

  • Tesla: 7.8%

  • BYD: 17%

  • Geely: 18.8%

  • SAIC: 35.3%

  • Other EV producers in China that cooperated in the investigation but have not been individually sampled: 20.7%

  • Other EV producers in China that did not cooperate: 35.3%

Those are on top of existing tariffs.

As in the US

This is just as in the US. Those in charge not only mandate EVs, they set policy to ensure the cars are as expensive as possible.

Electric Big Rigs Don’t Make Sense Even With $40,000 in Tax Credits

This morning I noted Electric Big Rigs Don’t Make Sense Even With $40,000 in Tax Credits

Due to Biden’s regulations, truckers are driving older engines longer because they can’t afford newer diesel models. The result is more pollution.

Joe Biden’s Position on Tariffs

The Above Tweet was from June 11, 2019.

On May 14, 2024, Biden changed his tune.

On June 13, I noted The EU Taxes Vehicles from China that its Own Companies Make

Eurointelligence: The trickle-down profit margins that permeated through German industry will be a thing of the past. The new cars will have fewer components, and fewer German-made components. This is the reason why the decline in cars constitutes a decline in industry and in the economy – to the extent that countries depend on it. Germany is one of those.

On October 5, I noted Buy American Provisions Cost $125,000 Per Job Created

“Buy America” sounds great. But it’s costly and about to rise steeply.

One wonders how idiotic tariff policy can get. Competition is stiff between Biden, the EU, Harris, and Trump.

Tyler Durden
Tue, 10/08/2024 – 06:30

Housing Is A Global Problem

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Housing Is A Global Problem

Housing shortages and skyrocketing rental prices have become a major source of tension in many countries around the world.

As Statista’s Anna Fleck reports, according to data from a Statista Consumer Insights survey, the topic of housing is considered the most pressing issue right now in the Netherlands by Dutch respondents.

It is the second most pressing issue after the cost of living in Canada and Australia.

Infographic: Housing: A Global Problem | Statista

You will find more infographics at Statista

As the chart above also shows, in the United States too it is considered a pressing concern for around four in ten people.

Issues that ranked higher in the U.S. were inflation, crime, the economic situation and health and social security.

Respondents were asked to select which issues they thought were most dire in their country right now, with 18 options in total.

Tyler Durden
Tue, 10/08/2024 – 05:45

Von Der Leyen’s New Budget Is A Huge Power-Grab From Brussels

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Von Der Leyen’s New Budget Is A Huge Power-Grab From Brussels

Via Remix news,

Poland’s Piotr Serafin will probably take over as EU commissioner for budget on Dec. 1, but the president of the European Commission is already organizing his most important task: the draft EU budget for 2028-34. The document, seen by Polish media outlet Rzeczpospolita shows that the German, Ursula von der Leyen, wants to dismantle regional policy across the EU, which will have a profound effect on Poland.

The money that is currently given to the regions, and largely managed by them (two-thirds of EU structural funds), would be given instead to the governments of the member states. These governments would then divide it as they saw fit, allowing for more centralization and control, a move that would better suit a Brussels looking to expand its control through a top-down approach.

Instead of the 530 currently operating programs (including 398 concerning cohesion policy), Ursula von der Leyen proposes 27 national operational programs. Each such program will include all expenditures that have so far made up cohesion policy and agricultural policy, including even subsidies for farmers. The programs will be divided into sectors, e.g., transport, energy, agriculture, or internal affairs and migration — all under the slogan of simplification. The second slogan repeated by von der Leyen is “flexibility.” She wants to introduce the principle of an “annual review” of the multiannual budget, which she argues will increase flexibility. Money allocated to one area could therefore be shifted to another purpose if necessary.

Experts who spoke to Rzeczpospolita unofficially have no doubt that this proposal means the elimination of regional policy, which von der Leyen clearly does not like, which is more control for rural areas on how funding is spent with these rural areas often leaning more conservative.

The end of EU regional policy

Why is this dangerous? In such a scenario, the liberal elite in Brussels could win every time. First, when the central government is of a different political color than the local government, the distribution of EU funds can be an element of rewarding its party allies.

Let’s imagine a situation where Poland’s Law and Justice (PiS) returns to power and does not transfer money to voivodeships or cities governed by PO. However, in such a scenario, Brussels could turn around and cut funding to Poland if it disagrees with PiS’ policies. In the event that a left-liberal government carries out such actions, it could simply look the other way and allow funds to continue to flow.

Von der Leyen also wants the payment of money to be on the condition of reforms at the central level, even if the regions have nothing to do with the lack of reforms. Finally, the transfer of competencies to the central level means that many regions will not have coherent investment programs.

For decades, the EU has been building a regional policy based on the principle of convergence, or raising the level of development of poorer areas. It had a developed methodology, instruments for negotiating programs with governments and regions, and criteria for granting money. The aim of such a policy was also to bring the EU closer to its citizens: local authorities were involved in writing operational programs and the effects of EU money were visible on the ground.

Now, von der Leyen proposes throwing this policy in the trash and introducing a transactional method: the government carries out reforms and, in return receives money and divides it between sectors.

Ursula von der Leyen’s revolution a problem for Poland. Local authorities fear centralization

“We urgently need new investments and solutions, and therefore funds, available quickly, easily and flexibly at the levels where they occur, i.e. at the level of municipalities and counties, to the extent adapted to their needs,” said Hanna Zdanowska, mayor of Łódź, member of the European Committee of the Regions, during an interview with Rzeczpospolita.

“Centralization or nationalization of cohesion policy in times of an ongoing global political crisis can become a very dangerous trap,” she added.

Many EU countries may like such a reform.

“We like it,” a diplomat from one of the net-contributor countries tells Rzeczpospolita. According to him, this limits Serafin’s scope of action.

“He is very competent, but he will have to move within the limits set by von der Leyen,” he adds.

Strict control over Polish commissioner Piotr Serafin

The new plan by the German EU commission president gives direct supervision over the draft budget to herself and the secretary-general of the European Commission, who is an official completely dependent on von der Leyen. In short, the new budget proposal would increase her power immensely.

The document provides for the creation of a steering committee, in which, in addition to Serafin, two people will be mentioned. 

Von der Leyen’s plan will certainly not appeal to several member states with a strong regional voice, such as Poland, Germany, Romania, or Belgium. It will also certainly be contested by many MEPs, who may demand commitments from the commissioners-designate (including the Italian Raffaele Fitto, responsible for cohesion policy) as early as November.

Read more here…

Tyler Durden
Tue, 10/08/2024 – 05:00

Olive Oil Supply Crunch Eases As World’s Top Producer Sees Harvest Jump 

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Olive Oil Supply Crunch Eases As World’s Top Producer Sees Harvest Jump 

A multi-year olive oil shortage in Spain, which accounts for about 40% of global production, pushed prices to record highs earlier this year amid sticky food inflation worldwide. Now, there is some good news, as Bloomberg reports olive oil production in the southern Europen country is set to rise, possibly alleviating the severe supply crunch. 

New data from the Spanish Ministry of Agriculture, Fishing and Food forecasts that the world’s top olive oil producer will record about 1.26 million tons this year, or about a 48% increase versus 2023. This would ensure Spain’s olive oil production returns to the long-term average. 

The skyrocketing price of olive oil, sometimes called “liquid gold,” has been primarily due to two years of poor harvests across the Mediterranean because of adverse weather conditions, such as widespread drought. This pushed prices to record highs of nearly 9,000 euros a ton at the start of 2024.

Spot prices for Spanish Olive Oil Extra Virgin peaked at 8,835 euros a ton in late January and have since tumbled into a bear market, sliding to around 7,000 euros a ton by fall.  

Here’s more from Bloomberg:

Signs of a better harvest have seen the commodity decline by more than a fifth from highs above €9,000 a ton. Shoppers will probably only benefit from lower prices later on, as supply contracts are usually negotiated months in advance. Weather conditions in the coming weeks could also impact on production as harvesting of the crop has only just begun, the Spanish government said.

The surge in olive oil prices due to adverse weather conditions has also affected other food crops, including cocoa, oranges, and other softs, as well as beef.

Last Friday, the Food and Agriculture Organization of the United Nations’ Food Price Index, which tracks the international prices of a basket of globally traded food, jumped the most in 18 months in September. 

This reacceleration in global food prices has ignited fears supermarket prices are set to surge again. 

Readers have been well informed about the rising risks of global food inflation re-accelerating. We said in June…

About a year ago, Sara Menker, founder and CEO of Gro Intelligence, warned in a Bloomberg interview that the current global food crisis is ‘much worse than 2008’. 

In the US, the Harris-Walz campaign’s only proposed solution to tackle rampant food inflation has been ‘communist price controls’… 

Food inflation is very sticky. Maybe it’s time to ditch de-growth ‘climate change’ policies to bring inflation lower.  

Tyler Durden
Tue, 10/08/2024 – 04:15

How Will Türkiye Respond To War In Lebanon (And Renewed Destabilization Of Syria)?

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How Will Türkiye Respond To War In Lebanon (And Renewed Destabilization Of Syria)?

Authored by Conor Gallagher via NakedCapitalism.com,

As Israel — with US support — continues its rampage across the Middle East, Türkiye is assessing the shifting landscape and weighing costs and opportunities, including economic and security concerns, ties with NATO on one hand and BRICS countries on the other, and its own regional aspirations.

Turkish Parliament Speaker Numan Kurtulmus emphasized the country’s position over the weekend, saying that Türkiye follows its own “national axis” in foreign policy and rejects the idea that it must align with any power or bloc. Where is that “national axis” going to take the country as the Middle East goes up in flames and Türkiye is positioned to play a key role?

One route it appears certain not to take is concrete position to Israel. Despite all Turkish President Recep Tayyip Erdogan’s rhetoric against Israeli Prime Minister Benjamin Netanyahu and company, goods from Türkiye continue to make their way to Israel. Oil continues to flow through the Baku-Tbilisi-Ceyhan pipeline from Azerbaijan to Türkiye’s Ceyhan port where it is shipped to Haifa — constituting roughly 40 percent of Israel’s supply.

In early May, Türkiye said it was halting exports to Israel due to the “worsening humanitarian tragedy” in the Palestinian territories. Yet goods, including critical minerals and chemicals used by the Israeli military get around the export ban by simply going through third countries, such as Greece. And the US is still using Incirlik Air Base in southern Türkiye to assist Israel.

This is unsurprising as In some ways the US/Israel current rampage through the Middle East fits with Turkish goals. Here are six issues confronting the Turkish government as it decides how to proceed:

1. There are suggestions that the US and Israel are after regime change in Lebanon. 

Here’s the executive director of the influential neocon Washington Institute for Near East Policy:

But this is also a moment for the Biden administration to shift focus from its Sisyphean pursuit of a Gaza cease-fire to taking advantage of the opportunities presented by Israel’s seismic shock to Hezbollah.

With assertive, engaged diplomacy, the Biden administration can help engineer a new security regime that allows civilians to return to their homes along the Israel-Lebanon border and work with local and international partners to help build a new political architecture for Lebanon.

This isn’t the Saudi-Israel peace and normalization accord that the Biden administration hoped to leave as a legacy — though there might be one last bite at this apple during the presidential transition — nor even the Gaza cease-fire for which the White House has labored for months. But after a year of tragedy and sadness, this would be real progress. At the same time, it is essential for Washington to warn Tehran about the high price it will suffer if it decides to make a dash for a nuclear-weapons capability. By building on Israel’s killing of Nasrallah, President Biden has the opportunity to leave the Middle East better today than it was on Oct. 8, which is no small achievement.

Türkiye would support such a goal as it is no fan of Hezbollah, and any weakening of the latter’s influence in Syria, could allow Türkiye to increase its footprint.

“If it translates into a longer-term weakening of Iran and allied Shiite groups, including Hezbollah, that will really pave the way for Türkiye to play a more dominant role” in Syria and Iraq, said Gönül Tol, Türkiye director for the Middle East Institute, a research center in Washington.

During the Syrian Civil War, Türkiye and Hezbollah fought on opposing sides. Hezbollah supports the Assad government, while Türkiye supported Syrian opposition groups like the Free Syrian Army seeking to overthrow Assad — although it now focuses primarily on fighting (US-backed) Kurdish groups in Syria and has sought to improve ties with Assad at the behest of Moscow and Tehran. Progress has been slow, however.

While the Turkish government offers statements of support for the Lebanese people, pro-government media in Türkiye lambast Hezbollah:

On a program aired by A Haber, retired Colonel and security pundit Coşkun Başbuğ claimed that Nasrallah was working for Mossad and that Hezbollah’s leadership was “sold out.” Başbuğ argued that Hezbollah could have turned the Israeli border into a “hell” but did not due to its compromised leadership. Başbuğ stated that Nasrallah and other Hezbollah leaders were discarded by those who used them. Additionally, he referred to Hezbollah’s missile attacks as mere “firework displays.”

Yeni Şafak columnist and a former Justice and Development Party (AKP) MP Aydın Ünal said the assassination of Nasrallah was met with joy and excitement by the oppressed Syrians. Ünal said that Nasrallah, following orders from Iran, had brutally and mercilessly carried out massacres of Muslims.

There are now growing calls in Türkiye for the country to abandon its more conciliatory approach of the past few years and return to one of trying to expand its influence by whatever means necessary. Those efforts mostly ended in disaster and left Türkiye more isolated, but memories are short when opportunity comes calling. Dr. Samir Salha, the founding dean of the Law Faculty at Gaziantep University in Türkiye and a professor of law and international relations there, argues that “the region’s escalating violence contradicts Ankara’s strategy of resolving disputes with neighboring countries.”

Not sure how that makes sense, but it is representative of a popular rationale among the more interventionist faction of the Turkish elite.

There are now reports (although not the most reliable) that Ankara is planning “limited” ground operations in Northwestern Syria. To what end is unclear. Türkiye’s military presence in Idlib is now mostly observation posts, support for the area’s Sunni Islamist group Hayat Tahrir al-Sham (HTS) and an entente with Russia. Any operation would likely be to close off borders or reinforce HTS — although the latter option could bring Türkiye into direct conflict with Russia.

The Erdogan government, however, is facing increasing calls to do something because of our next point.

2. Syrian and Now Lebanese Refugee Crisis.

Türkiye is already struggling with inflation and economic stagnation, and it could face additional economic shocks if the conflicts intensify disrupting energy supplies and trade routes.

Türkiye is also currently hosting millions of Syrian refugees. Many more are likely to be on the way soon.

Since Israel began its destruction of Lebanon in earnest, roughly 220,000 people have fled into Syria (many are Syrians who had left during the country’s conflicts). That number is expected to grow considerably should the bombing campaign continue and many will attempt to make their way to Türkiye.

The refugee situation along with the economy were the two biggest issues in the presidential and parliamentary elections last year — a vote Erdogan barely survived. Nationalists arguing for the expulsion of Syrian refugees were some of the biggest winners. A major influx of new refugees is going to be problematic for the Erdogan government, and he faces pressure to secure the country’s borders, particularly given the economic situation.

3. Conflict Spillover into Syria.

The Syrian War never officially ended. It’s just slowed to a simmer, but that looks to be changing. Israeli airstrikes in Syria, refugees from Lebanon, and Iran and Hezbollah’s focus on Israel, could all contribute to the destabilization of the fragile ceasefires in various parts of country. Here’s current lay of land:

Israel has carried out regular airstrikes on Syria in recent years, but they are now ratcheting up in frequency and severity — including two this week alone on Damascus.

Now the US/Israel is saying they’re trying to stop the flow of weapons from Iran through Syria to Lebanon.

Then they bombed the alleged smuggling tunnel. The damage now means refugees now must largely trek into Syria on foot.

According to some reports, Hezbollah has withdrawn many of its fighters from Syria in order to join the conflict in Lebanon. A reduced Iranian and Hezbollah presence potentially opens the door for Sunni extremist groups in the region, which Türkiye and the US often support in an effort to bring down Assad.

4. ISIS Being Prepped for a Comeback Tour?

Here’s the Middle East Institute on the group’s resurgence:

In an unusual public statement late on July 16, United States Armed Forces’ Central Command (CENTCOM) announced that after six months of 2024, “ISIS is on pace to more than double” the number of attacks in Syria and Iraq it claimed in 2023. According to CENTCOM, ISIS has so far conducted 153 attacks across both countries from January through June, noting that “the increase in attacks indicates ISIS is attempting to reconstitute following several years of decreased capability.” CENTCOM’s commander, Gen. Michael E. Kurilla, insisted that achieving an enduring defeat of ISIS still relies on the “combined efforts of the Coalition and partners”

5. Multiple US Proxies Versus Russia in Syria?

Among recent Israeli airstrikes in Syria was likely one that targeted an ammunition warehouse near the largest Russian air base in Syria.

Russia successfully protected Syria during the Western-instigated “civil war” led by its jihadist fanatics. Are we about to get another round with additional players? The US’s favorite neo-Nazis from Ukraine mixing it up with Turkish-backed Islamisists with support from the genocidal Israel Defense Forces ? What could go wrong?

Here’s where things get interesting regarding Türkiye. Moscow is alleging that Kiev and Washington are training militants from Hay’at Tahrir al-Sham (HTS – the group in Idlib along Türkiye’s border with Turkish support). Here’s Russian Foreign Minister Sergey Lavrov last week:

“Vladimir Zelensky’s regime, in coordination with the Americans, is training terrorists from Hay’at Tahrir al-Sham in Syria, using new UAV production technologies for combat operations against Russian forces in the republic.”

A September 9 report in the Turkish newspaper Aydinlik backs up Lavrov’s claim. It reported that Ukraine is offering drones and training in return for individuals in HTS prisons to fight Russia. Earlier in September Ukrainian special forces allegedly launched an attack on a Russian military facility on the outskirts of Aleppo. From Military Watch:

 According to Western sources, the attack saw powerful explosion followed by secondary detonations causing serious damage to the site. Aleppo has long been on the frontier of attacks from jihadist groups due to its close proximity to the Turkish border, with Türkiye being the primary state sponsor of Islamist anti government militants in the country and placing the Syrian governate of Idlib, currently run by the Al Qaeda affiliated Al Nusra Front, under its protection. Ukraine has escalated efforts to provide armaments and training to Islamist groups targeting Russian forces, and alongside Türkiye has for several months deployed special forces to northwestern Syria specifically to support militant groups based there.

Moscow is also now warning that the US and UK are planning to use Ukraine to unleash a chemical weapons false flag provocation in Syria — although this could also be being released by Russia in order to justify coming operations in Northwestern Syria to root out Ukrainian and HTS operations there.

What role will Türkiye play?

6. The US and the Kurds

In many areas, Türkiye and Russia have been increasingly cooperating in Syria while Türkiye and the US frequently come close to direct conflict. Importantly, Turkish and Iranian interests have also aligned:

Iranian and Turkish interests seem to be increasingly aligning, particularly in their united front against Israel’s actions toward Hamas and in opposing the resurgence of a U.S.-led regional order. However, their historical competition for strategic dominance in areas like Iraq and Syria, coupled with the distinct forms of revisionism that the AKP and Iranian leadership champion on the global stage, suggests that any emerging alliance between them might remain tenuous and susceptible to strains in the mid to long term.

The question is if Türkiye’s calculus changes due to the potential weakening of Hezbollah and Iranian positions in Syria. There exists the possibility that Türkiye might trade its support for Islamists in Northwestern Syria for a green light from Russia to go on the offensive against Kurds in Northeastern Syria, but we’ll see.

Elsewhere Turkish ties with both Russia and China have been steadily improving, which is helping Erdogan slowly rebuild the Turkish economy. Would he potentially throw away that progress on another chance to increase Turkish influence in Syria? At the same time, Turkiye’s economic ties with the West — primarily the EU of which it is a member of the customs union —  still dwarf those of Russia and China. And we know loads of economic pressure is constantly on Ankara to toe the NATO line, as evidenced by the increasing number of US sanctions on Turkish entities.

One last consideration for Ankara is the prospect of an increasingly powerful Russian-Iranian presence surrounding Türkiye should the US/Israel be soundly defeated in the current conflicts and the Americans booted from many of their Middle East outposts.

While Türkiye is wholeheartedly opposed to US support for Kurdish groups in Iraq and Syria, it has also long tried to balance Russia and the US off one another in the region. Either one with an overwhelming advantage is cause for concern in Ankara, which might help explain the recent talk of Türkiye potentially handing over its Russian S-400s to the US and assisting US/Israel efforts in the region.

Tyler Durden
Tue, 10/08/2024 – 03:30

Which Nation Is The World’s Happiest? (The Answer May Surprise You…)

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Which Nation Is The World’s Happiest? (The Answer May Surprise You…)

A collective measure of happiness is incredibly difficult to define.

While economic opportunity and education can certainly enhance people’s well-being, happiness is often assessed through different lenses. These include ‘inner’ factors like personal harmony and ‘outer’ factors such as social interactions, as well as a ‘task’ focus, such as finding fulfillment in work.

This graphic, via Visual Capitalist’s Dorothy Neufeld, shows the happiest countries among the world’s major economies, based on analysis from Ray Dalio’s Great Powers Index 2024.

Methodology

To analyze the happiness of leading nations, Dalio looked at the following metrics:

  • Share of Population Reported Happy

  • Reported Life Satisfaction (1-10)

  • Share of Population Reported Daily Enjoyment

  • Share of Population Reports Having Good Social Support Network

  • Suicide Rate (Per 100,000 People)

For the rankings, countries were analyzed using z-scores, which represent the amount of standard deviations they are from the dataset’s mean.

The Happiest Countries Across Major World Economies

Below, we show the happiest countries across 24 major nations in 2024:

Perhaps surprisingly, the UK ranks as the happiest country overall.

This ranking is bolstered by high levels of happiness among older generations, although it contrasts with the World Happiness Report, which places the UK 20th out of 143 nations in 2024. Other global indexes, including those from the UN, show the UK in a similar position.

In Indonesia, 79% of citizens consider themselves happy, outpacing the global average of 73%.

Meanwhile, the U.S. ranks 10th, demonstrating that economic strength doesn’t always correlate with happiness. In fact, over the past two decades, self-reported happiness in America has been declining, especially among younger generations.

India ranks last, likely due to widespread distrust in institutions, income inequality, and limited social mobility. South Korea, despite being the world’s 10th largest economy, also ranks near the bottom, with 74% of the population dissatisfied with the country’s social and political climate.

To learn more about this topic from a health perspective, check out this graphic on the healthiest countries across leading world economies.

Tyler Durden
Tue, 10/08/2024 – 02:45

Slovak PM Robert Fico Opposes Ukraine’s NATO Membership, Warns Against ‘Russophobia’

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Slovak PM Robert Fico Opposes Ukraine’s NATO Membership, Warns Against ‘Russophobia’

Authored by Thomas Brooke via Remix News,

Slovak Prime Minister Robert Fico has reaffirmed his opposition to Ukraine’s potential NATO membership, warning that such a move could lead to broader conflict.

In an interview with STVR on Sunday, Fico claimed that the ongoing war in Ukraine is being prolonged by Western support with the goal of “bringing the Russians to their knees,” a position he believes is futile.

“There is a military conflict going on in a country that is Slovakia’s neighbor, where Slavs are really being killed and where Europe is significantly supporting this killing,” Fico said, as cited by the Pravda news outlet.

He emphasized that the conflict cannot be resolved militarily and warned against further Western involvement in Ukraine.

While he expressed support for Ukraine’s eventual membership in the European Union, the Slovak leader clarified that NATO membership is a step too far.

“As long as I am the prime minister of the Slovak Republic, as long as I lead the deputies, whom I, as the party chairman, have under political control, I will never agree to Ukraine’s membership in NATO,” he declared.

Fico further cautioned that Ukraine joining NATO could pave the way for a “third world war.”

Fico also used the interview to criticize what he described as “Russophobia” in Western discourse, reminding listeners that “Freedom came to Slovakia from the east,” in reference to the Soviet Union’s contribution to the defeat of Nazi Germany.

He announced his intention to visit Moscow next year on the 80th anniversary of the end of World War II to honor Russia’s role in liberating Slovakia despite the current geopolitical landscape.

“Let’s not automatically assume that when we speak positively about the Red Army or the former Soviet Union, we are agents of Putin,” Fico stressed, urging for more balanced views on Russia and its historical role.

Fico reaffirmed Slovakia’s commitment to meeting its NATO obligations by spending 2 percent of GDP on defense. However, he voiced opposition to further increases in defense spending, proposing instead that part of these funds be allocated to civilian projects, such as building a hospital in Prešov and reconstructing infrastructure.

“The Ministry of Defense is ready to provide an additional €300 million for objectives that are on the one hand military, but at the same time can serve civilian purposes well,” Fico said, outlining his vision for a balanced approach to national defense and public investment.

Read more here…

Tyler Durden
Tue, 10/08/2024 – 02:00

Hong Kong Crashes As China’s Stimulus Frenzy Ends With A Bang

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Hong Kong Crashes As China’s Stimulus Frenzy Ends With A Bang

There is some good news and some bad news for China bulls this morning (local time).

First the good news: since mainland China (aka A-shares) were closed for the past week, mainland Indexes such as the Shanghai Shenzhen CSI 300 are up – just barely – because after opening up almost 11% to catch up with the frenzied rally in offshore markets and ETFs, the index has erased almost all gains since it closed for trading on Sept 30.

For the real action, one has to go to neighboring Hong Kong, which was open while China was closed, and which proceeded to soar as much as 30% since the China stimulus bazooka was fired on Sept 23 (just two days after we said it would be). It’s also were the bad news is because one look at what the local Hang Seng China Enterprises Index is doing, and HK longs will want to throw up: as shown below, not only are HK stocks down as much as 11% after the open, but they have somehow managed to wipe out almost half the gains since the bazooka was launched in less than two hours!

What sparked this liquidation? Well, yesterday China unveiled yet another “emergency” stimulus meeting, this time held by the National Development and Reform Commission (i.e., China’s central planning bureau). Expectations were high that just like the emergency Sept 26 Politburo meeting which was led by president Xi himself, today China would unveil even more sweet, sweet stimmies.

Alas it was not meant to be, and the press conference led by Zheng Shanjie, chairman of China’s top economic planner, the National Development and Reform Commission was an epic dud: in it, Shanjie said that while external risks and downward economic pressures were increasing, they remained confident of achieving the full-year GDP growth target. He said new policy measures will focus on expanding domestic demand, increasing support and the property and capital markets.

In short, nothing new, and certainly nothing even remotely close to the Rmb 10 trillion in fiscal stimmies that many were expecting. As UBS writes, “the NDRC press conference has released no details on fiscal stimulus so far, with the Q&A session ongoing. Zheng Shanjie along with deputy heads Liu Sushe, Zhao Chenxin, Li Chunlin and Zheng Bei, were widely expected to announce an action plan at the press conference. As a result, USDCNH is coming up, while iron ore and copper are declining. Shenzhen’s ChiNext has narrowed gains to 13% from more than 18% earlier as China returned from the Golden Week holiday.“

What is the take home message here? First, that Jim Cramer was – as usual – a fade.

The second, and far more important message, is that the half life of Beijing’s latest attempt to goose markets, at just around 10 days is the shortest of all…

… and it means that with the market having called Beijing’s bluff, Xi has two options:

  • Do another half-assed attempt to stimulate the economy with the very limited measures already unveiled, which he knows – and more importantly the market knows – will achieve nothing, and spark another market crash and economic meltdown, or
  • Do what Goldman trader Borislav Vladimirov laid out yesterday, when he said that China Must Do QE Now, “Or It Will End Up In A Bigger Hole In 12 Months.”

And since for Xi the time for half-measures is now over, especially if he wants to avoid a deflationary spiral, social insurrection and political mutiny, this only leaves one option open: the truly nuclear one. The only question is when, because while the market may have peaked at +30% the first time China tried to goose markets, the next time we are talking triple digits, not to mention $3K gold and $100K+ bitcoin.

 

 

Tyler Durden
Mon, 10/07/2024 – 23:28